chapter 7 Flashcards
decision making
the conscious process of making choices among alternatives with the intention of reaching a goal.
rational choice decision making
calculating the best alternative
bounded rationality
people are bounded in their decision making capabilities, including access to limited information, limited information processing and tendency toward satisficing rather than maximizing when making choices
implicit favorite
a preferred alternative that the decision maker uses repeatedly as a comparision with other choices
confirmation bias
the process of screening out information that is contrary to our values and assumptions
cognitive dissonance
an emotional experience when beliefs/feelings and behavior are incongruent with one another
anchoring and adjustment heuristic
a natural tendency for people to be influenced by an inital anchor point such that they do not sufficiently move away from that point as new information is provided
satisficing
selecting an alternative that is good enough rather than the alternative with the highest value
availability heuristic
a natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by nonprobability factors
representativeness heuristic
a natural tendency to evaluate probabilities of events or objects by the degree to which they resemble other events or objects rather than on objective probability information
intuition
the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning
scenario planning
a systematic process of thinking about alternative futures and what the org should do to anticipate and react to those environments
escalation of commitment
repeat bad decisions or through good money after bad.
self-enhancement
a persons inherent motivation to have a positive self-concept
prospect theory effect
natural tendency to feel more dissatisfaction from losing an amount than satisfaction from gaining an equal amount
creativity
the development of original ideas that make a socially recognized contribution
the creative process
Prepare, incubate, illumination, verification
divergent thinking
reframing a problem in a unique way and generating different approaches to the issue
characteristics of creative people
cognitive and practical intelligence, persistence, knowledge and experience, independent imagination
learning orientation
beliefs and norms that support the acquisition, sharing and use of knowledge as well as work conditions that nurture these learning processes.
design thinking
a human-centered, solution-focused creative process that applies both intuition and analytical thinking to clarify problems and generate innovative solutions
design thinking rules
human rule, ambiguity rule, re-design rule, tangible rule
the human rule
design thinking is a team activity
ambiguity rule
keep the ambiguity in the problem and solutions
the re-design rule
NOTHING is completely original
the tangible rule
less time thinking, more time doing
employee involvement
the degree to which employees influence how their work is organized and carried out
emp. involve: decision structure
benefits go up with nonprogrammed problems
emp. involve: source of decision knowledge
get the employees when leader is uninformed
emp. involve: decision commitment
participation gets buy in
emp. involve: risk of conflict
ind risks and norms in conflict with orc, can employees agree
