Chapter 6 - Perception and Managerial Decision Making Flashcards
what kinds of things can go wrong if lower level managers are making poor decisions?
reduced productivity –> too few workers or supplies
increased expenses –> if too many workers/ supplies
frustration –> leads to reduced morale and increased turnover
is there always a “best” decision for manages to make?
no. will sometimes just have to choose the best of many bad
what are some things managers should consider when making decisions
ethics and morals (important to maximize shareholder wealth, but still need to make sure we are making ethical choices)
reflective system
logical, analytical, deliberate, and methodical
prefrontal cortex
reactive system
quick, impulsive, intuitive –> relies on emotions/ habits
basal ganglia and amygdala (more primitive)
role of emotions
powerful signals –> especially when involving ethical implications and also quick decision making
emotional intelligence –> so important for managers
4 aspects of emotional intelligence
- self-awareness
- empathy
- social skills
- self-regulation
programmed vs non-programmed decisions
programmed
- decisions that are repeated over time
set of rules can be developed to guide the process (heuristics)
- like reactive thinking
non-programmed
- like reflective thinking
- generally based on criteria that is not well defined
6 steps in decision making process
- recognize decision needs to be made
- generate multiple alternatives
- analyze the alternatives
- select the alternatives
- implement selected alternative
- evaluate effectiveness
what are some barriers to effective decision-making
- bounded reality
- time constraints
- escalation of commitment
- uncertainty
- personal biases
- conflict
–> can be extremely difficult to overcome –> push our brains more towards reactive system preventing logical thoughts
what is bounded reality? and how it relates to decision making barriers?
our brains have limitations on processing
or often we simply do not have enough time to think through all possibilities
escalation of commitment? and how it relates to decision making barriers?
tendency of decision makers to remain committed to poor decisions, even when doing so leads to increasingly negative outcomes
personal biases? and how it relates to decision making barriers?
we tend to be more comfortable with ideas and things that are familiar or similar to us
–> could mean hiring less qualified people because they’re similar to us
–> choosing a familiar technology when the other is better
confirmation bias? and how it relates to decision making barriers?
we tend to pay more attention to information that confirms our existing beliefs
what are process conflict and relationship conflict?
process
= conflict about the best way to do something
= can actually lead to improved performance as individuals explore various options together in order to identify best solution
relationship
= conflict between individuals that is more personal and involves attacks on a person rather than an idea
= generally harmful and should be quelled if possible
** effective managers need to be aware of the possibility of relationship conflict when giving feedback and keep it focused on behaviours and activities rather than the individual
