Chapter 7: Decision Making and Creativity

Question 1

Decision Making

Answer 1

Process of making choices among alternatives with the intention of moving toward some desired state of affairs

Question 2

rational choice decision

Answer 2

assigning probability and choosing the choice

Question 3

problem

Answer 3

a deviation between the current and the desired situation. The gap between what is and what ought to be.

Question 4

anchoring and adjustment heuristic

Answer 4

a natural tendency for people to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new information is provided

Question 5

availability heuristic

Answer 5

a natural tendency to assign higher probabilities to object or event that are easier to recall from memory, even though ease of recall is also by non-probability factors(e.g. emotional response, recent events)

Question 6

bounded rationality

Answer 6

the view of that 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

Question 7

cognitive dissonance

Answer 7

an emotional experience caused by a perception that our beliefs, feelings, and behaviors are incongruent with one another

Question 8

confirmation bias

Answer 8

the processing of screening out information that is contrary to our value and assumptions, and to more readily accept confirming information

Question 9

creativity

Answer 9

the development of original ideas that make a socially recognized contribution

Question 10

design thinking

Answer 10

a human-centered, solution focused creative process that applies both intuition and analytical to clarify problems and generate innovative solutions

Question 11

divergent thinking

Answer 11

reframing a problem in a unique way and generating different approaches to the issue

Question 12

escalation of commitment

Answer 12

the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action

Question 13

implicit favorite

Answer 13

a preferred alternative that the decision maker uses repeatedly as a comparison with other choices

Question 14

intuition

Answer 14

the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning

Question 15

learning orientation

Answer 15

a set of beliefs and norms in which people are encouraged to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process

Question 16

mental models

Answer 16

knowledge structures that we develop to describe, explain, and predict the work around us

Question 17

prospect theory

Answer 17

an innate tendency to feel stronger negative emotion from losing a particular amount than positive emotion from gaining an equal amount

Question 18

representativeness heuristic

Answer 18

a natural tendency to evaluate probabilities of events or objects by the degree to which the resemble(and are representative of) other events or objects rather than on objective probability information

Question 19

satisficing

Answer 19

selecting an alternative that is satisfactory (good enough), rather than the alternative with the highest value(maximization)

Question 20

scenario planning

Answer 20

a systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those environments

Question 21

self-enhancement

Answer 21

a person’s inherent motivation to have a positive self-concept (and to have others perceive him or her favorably) such as being competent, attractive, ethical, and important.