Chapter 8 Flashcards
Decision Making & Problem Solving
What are the 2 types of decisions? (Explain them)
Programmed decisions: they occur often and follow decision rules.
Nonprogrammed decisions: unique situations that require creativity.
What are the 3 decision making conditions?
-Certainty: Straignt forward and predictable outcomes.
-Risk: less information is available. probabilities of outcomes are known. educated guess.
-Uncertainty: unpredictable with no information at all.
What is the rational approach to decision making?
A structured and logical process to make decisions based on objective facts. (Requires a plan B).
What are 2 pros and cons to the rational approach to decision making?
Pros:
-Clear and logical.
-Decisions are based on facts, not emotions.
Cons:
-Assumes information is perfect which is unrealistic.
-The future is unpredictable.
What is evidence-based management (EBM)? and what are it’s 5 principles?
EBM is making decisions based on the best evidince available, and relying on data rather than feelings.
The 5 principles are:
-Telling the truth no matter what.
-Only fact-based decision making.
-Always learning.
-Knowing the risks of decisions.
-Avoiding decisions based on untested beliefs.
What is the administrative model in decision making? mention 3 characteristics of it.
It describes how decisions are often made.
3 characteristics:
-Bounded rationality: decision makes that handle all the information.
-Sub-optimizing: accepting a less optimal solution to avoid potential negatives.
-Satisficing: not seeking the best possible solution, but getting the one that fulfils the minimum requirements.
What are 4 behavioral forces can influence decision making?
-Intuition.
-Commitment to decisions even when they appear to be wrong.
-How much risk a decision making is willing to take.
-Ethics.
What is group polarization?
when group opinions become more extreme as they are being discussed, due to members reinforcing each others beliefs.
What is groupthink?
when group members prioritize agreeing with each other than making the best decision.
What are 2 symptoms of groupthink?
-group thinks they can’t be wrong.
-peer pressure.
What is the creative process? (4 steps)
1- Preparation: gathering information.
2- Incubation: forming ideas.
3- Insight: realization of a clear idea.
4- Verification: testing the idea.
What are 3 ways to enhance creativity in organizations:
-Make creativity part of the culture.
-Reward creative successes.
-Not punishing creative failures.
