Chapter 23 Flashcards
What is cognitive bias
The influence of factors that shape how we interpret informant, weigh its relevance and ultimately decide upon a course of action or inaction
Cognitive bias plays a role in the ___- thinking and decisions making process
Critical
What term do psychologists use to describe the actual operating state of the human mind
Bounded rationality
Cognitive bias in the decision making process results in eight common traps. Four of them are 1. overconfidence bias, 2. sunk cost effect, 3. availability bias, 4. confirmation bias, name the other four
Anchoring bias
Illusory bias
Hindsight bias
Egocentrism
In terms of cognitive bias, what does sunk cost effect mean
Escalating the commitment to a course of action simply because of the cost of resource already invested, despite poorer performance
In terms of cognitive bias, what does availability bias mean
Placing too much emphasis on information already available versus information needed
Which cognitive bias is most prevalent
Confirmation bias
Which cognitive bias allows an initial reference point to distort estimates, even when the initial reference point is completely arbitrary
Anchoring bias
Which cognitive bias tends to jump to conclusions about the relationship between two variable when no correlation exists
Illusionary bias
What is hindsight bias
the tendency to judge past events as easily predictable when they weren’t foreseeable
Which cognitive bias occurs when we attribute e more credit to ourselves for the group or collaborative outcome than an outside unbiased party would
Egocentrism
As decision makers, what three techniques may airmen use to counter cognitive biases
After action reviews
Seeking unbiased outside expert input
Creating a decision environment that encourages candid dialogue and vigorous debate
Which of the three techniques AMN use to counter cognitive biases is thought to be the most effective method
Creating a decision environment that encourages candid dialogue and vigorous debate
How do mental frameworks and shortcut help simplify our understanding of a complex world
They help us process information quickly and efficiently
Mental frameworks contribute to cognitive bias T/F
True
Mental frameworks consist of our ___ about how things are related and work
Assumptions
How we frame a problem influences the decision we make. When is this effect particularly noticeable
When we frame a challenge as either a risk or an opportunity
What is the Prospect theory
The belief that framing a situation as a potential gain causes decision makers to act differently than framing the same situation as a potential loss
According to the Prospect theory, are people willing to take greater risks when faced with potential losses or when faced with potential gains
When faced with potential loses
At the org level, how are threats to our comfortable framework of assumptions often met
With rigid resistance
At the organizational level, how are changes seen as opportunities usually met
With flexible and adaptable approaches
When confronting change at the Org level, AMN are subject to their initial frameworks. How do those frameworks limit them
They Limit the information taken in, the willingness to assess information fairly and without bias, and ultimately restrict the solution sets that are created
What is the drawback when decision makers choose a course of actin based on intuition alone
It often means a whole series of alternatives are not considered or objectively analyzed
In decision making, what is intuition based upon
Previous experience and matching patterns from those experiences to cues picked up in the current environment
For decision makers intuition is both a powerful guide and a potential decision trap T/F
True
In challenging or ambiguous situations why is the intuition of even highly experience professionals risky
The complexity involved can obscure pattern recognitions that are relied on with intuition. As a result even eeriness AMN can mistakenly apply incorrect or outdated models that result in poorer decision making
Why should AMN especially leaders within an org hold back personal opinions and avoid imposing mental frames on themselves and their team
To create an environment where critical thinking can be exercised. This will widen the range of advice and alternatives that will be offered
There is a natural tendency to view change as threating T/F
True
Name on way Amn in a position of responsibility can avoid the human tendency to continue a course of action due to sunk costs
By properly using a commination of intuitive judgment and formal analysis
Formal ____ can check intuition and ensure you challenge your intuitive judgment rather than confirm it
Analysis
Which is more critical: recognizing the value of intuition or guarding against a lack of analysis in the decision making process
Both are equally critical
Intuition can be replace with rules and procedures T/F
False
When communication intuitive decision, seeing feedback and conveying intent, what five step process should you sue to address decision teams
Step 1 - Hers what I think we face
Step 2 - Here’s what I think we should do
Step 3 - Hers why
Step 4 - Here’s what we should keep our eye on
Step 5 - Now talk to me
In critical thinking when does reasoning by analogy occur
When we assess a situation and match it to similar experiences we have encountered assuming that they are alike
At the conscious level, AMN can deliberately us analogies to frame a decision making process. What purpose does this serve
It saves time and provides clues about possible courses of action and implications
at an unconscious level, analogies play a large role in intuition T/F
True
What critical thinking trap is inherent in the use of analogies
They can lead us to focus on similarities between events and downplay important differences