Chapter 6 Flashcards
decision making
the process of making choices among alternatives with the intention of moving toward some desired state of affairs
rational choice decisions making process
identify problem or opportunity, choose the best decision process, discover or develop possible choices, select the choice with the highest value, implement the selected choice, evaluate the selected choice,
what the problem identification challenges
mental models, decisive leadership, stakeholder framing, perceptual defense, solution-Focused Problems
mental models
knowledge structures we develop to describe, explain, and predict the world around us; fill in information we dont immediately see, which helps us understand and navigate in our surrounding environment; blinds us from seeing unique problems or opportunities
decisive leadership
declare problems without sufficient time for logistical assessment; misguided effort to solve an ill-define problem or resources wasted on a poorly identified opportunity
stakeholder framing
employees, suppliers, customers, and other stakeholders provide (or hide) information in ways that make the decision maker see the situation as a problem, opportunity, or study sailing
perceptual defense
people sometime fail to become aware of problems because they block out bad news as a coping mechanism
solution focused problems
not a description of the problem; rephrased statement of a solution to a problem that has not been adequately diagnosed; can be due to reinforces from past successes.
how to identify problems effectively
be aware of problem identification biases, resist temptation of looking decisive, develop a norm of “divine discontent”, discuss the situation with colleagues
satisficing
selecting an alternative that is satisfactory or “good enough” rather than the alternative with the highest value (maximization)
when is satisficing necessary
decision makers lack enough information, time, and information processing capacity to figure out the best choice
what do people like in decisonss
to have choices; but making decisions when there are a lot can be cognitively and emotionally draining; people will satisfice to avoid this
why else does satisficing occur
alternatives present themselves over time, not all at once
escalation of commitment
the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action
what are the four things of escalation of commitment
self-justification effect, self enhancement, prospect theory, sunk costs
self justification effect
people try to convey a positive public image of themselves; typically involves appearing to be rational and competent; motivated to demonstrate that their choices will be successful; deliberate attempt to maintain a favorable public image
self enhancement effect
a person’s inherent motivation to have. positive self concept, such as being competent, attractive, lucky, ethical, and important; increases risk of escalation of commitment; p[erates almost unconsciously ,distorting information so we do not recognize the problem sooner
prospect theory
a natural tendency to feel more dissatisfaction from losing a particular amount than satisfaction from gaining an equal amount; motivates to take risk in continuing something is failing so you dont not succed
sunk costs effect
the value of resources already invested in the decision; time (already a lot, put in more)
evaluating decisions outcomes more effectively
separate decision choosers from evaluators, publicly establish a preset level at which the decision is abandoned or reevaluated, seek our sources of systematic and clear feedback for the decisions outcomes, involve several people in the decision evaluation process
what are four types of creativity building activities
redefining the problem, associative pay, cross-pollination, and design thinking
redefining the problem
revisit projects that have been set aside; could be seen in new ways or see problem in new persepctives
associative play
literally playing games, usually with twists to the original equipment or rules; helps creativity to emerge naturally
cross pollination
people from different areas of the organization exchange ideas or when new people are brought onto an already existing team
design thinking
a human-centered, solution focused creative process that applies both intuition and analytical thinking to clarify problems and generate innovative solutions
