Chapter 7: Decision Making Flashcards
Why shouldn’t you make emotional decisions as a manager?
If you decide things based on your emotions your biases will overshadow the facts.
Why is it important to be an active listener?
It tells whoever your talking to that their words matter.
Step 1 of Prioritized Decision Making
List decisions you need to make
Step 2 of Prioritized Decision Making
Organized each decision based on its complexities and importance
Step 3 of Prioritized Decision Making
Organize decisions into strategic decisions, significant decisions, and quick decision.
Step 4 of Prioritized Decision Making
Plan out how long it will take you the decision can be made.
Quick Decisions
Decisions that can be completed immediately. Examples include signing paperwork, and accepting an employees time off.
What do you do when you make mistake?
When you make a mistake forgive yourself and identify what caused the mistake to happen.
Questions to ask when you make a mistake
What information did you have when you made the decision?
Did you make a quick decision or a strategic decision?
What are the viewpoints at play?
According to research mindfulness can…
Mindfulness can promote innovation, self- determination, motivation, grow positive relationships, and reduce conflict.
Problems managers face
Customer Complaints
Supplier Breakdowns
Staff Turnover
Sales Shortfalls
Low Employee Motivation
Poor Quality
How many suppliers should you foster a relationship with?
Hicks recommends at least 3
Quality in management refers to both..
Quality of team behavior and quality of product
Step 1 (Rational Decision Model)
Identify the problem or opportunity
Step 2 (Rational Decision Model)
Find Alternative Solutions
Step 3 (Rational Decision Model)
Evaluate Alternative Solution
Step 4 ( Rational Decision Model)
Decide, Implement, and Evaluate the solutions outcome
Rational Decision Making increases when
Rational decision making increases when your responsible with your actions, diligent, humble, and open to new experiences.
Hubris
An inflated sense of pride, certainty and confidence that can taint your actions.
Nonrational Decision Making Model
A model describing how managers make decision.
Herbert Simon
Believed that managers could not be rational because their rationality was restricted.
Complexity, Time, Resources, Money, Cognitive Capacity and habits are examples of what..
Satisficing Model
Seeks alternative plans till a satisfactory one is found
Intuition Model
Going with your gut to make a decision
CEO’s are being fired (2024) because of what factors
Public is fed up with poor behavior, regulations are stricter, increased exposure of whistleblowers and hacker leaks, media broadcasts of behavior, unethical expansion.
Directive Style
Low Ambiguity
Task & Technical Oriented Concerns
Efficient
Practical
Systematic
Logical
Analytical Style
High Ambiguity
Responds well to new or uncertain situations
Diverse
Careful to make decisions
Overthink
Conceptual Style
High Ambiguity
People-oriented
Considers several perspectives
Takes Risks
Creatively Solves Problems
Creates Trust
Struggles with structured problems
Behavioral Style
Highly People Oriented
Supportive
Receptive to Suggestions
Tries to avoid conflict
“Could be Wishy-washy”
Prefers verbal communication
Describe the 10 Decision Making Biases / Rules of Thumb
Availability, Representitiveness, Confirmation, Sunk Cost, Anchoring and Adjustment, Overconfidence, Hindsight, Framing, Escalation of Commitment, and Categorical Thinking
Availability Bias
Using information that is recent or available at that very moment without using past data. Avoids seeing the full picture.
Representatives Bias
Generalizing things without taking nuance into account
Confirmation Bias
Seeking information that supports an idea while discounting data that doesn’t.
Sunk-Cost Bias
Believing that something can’t be abandoned because there has been too much effort put in
Anchoring & Adjustment Bias
Making decisions based on initial figures.
Overconfidence Bias
Confidence overshadows accuracy causing reckless risks
Hindsight Bias
Views events as predictable
Framing Bias
Framing a problem in such a way that influences others
Escalation of Commitment Bias
Feeling overly invested in a decision and refusing to admit to your failures.
Categorical Bias
Sorting information or people, based on observed or inferred characteristics
Decision
A choice made from available alternatives.
Problems
Difficulties holding people back from their goals
Opportunities
Situations that present possibilities to exceeding goals
Diagnosis
Identifying and analyzing underlying causes
To implement a decision you must
Plan carefully, and be sensitive to those affected.
Law of Unintended Consequences
Things will happen that were not predicted
Nonrational Models of Decision Making
Shows how managers make decisions when it’s assumed to be risky
Bounded Rationality
A concept that suggests that making a rational decision is limited by specific factors.
Intuition
Making gut choices
Ethics Officers
An employee trained to resolve ethical dilemmas
Decision Tree
A graph of decisions and their concequences
Evidence-based decison making
Gathering and analyzing data in order to develop and implement a action
Machine Learning is
a process where computers algorithmically detects patterns in data w/o programing
Predictive analytics
Mixes historical data, statistical models, and machine learning to predict future outcomes.
Volume, Variety, Velocity, Veracity, and Value are the 5 V’s of
Big Data
Volume
How much data there is and how much it takes to store it
Variety
A wide range of data sets created by humans and technology
Velocity
How fast data accumulates
Veracity
Is the data trustworthy and high quality
Value
The insight a piece of data has
Heuristics
Strategies that simplify making decisions
Sham Participation
Occurs when powerless but useful individuals are selected to approve decisions and implement them.
Groupthink
When group members agree on something for the sake of unanimity.
Goal Displacement
Primary goals are consumed by a secondary goal
Minority Dissent
A belief that a minority opposes the beliefs, attitudes, ideas, procedure or polices agreed upon on by the group.
Consensus
Expressing opinions and reaching agreements to support a decision
Brainstorming
Generating ideas and alternatives for solving problems
After action review
Reviews decisions in order to improve future ones
