Chapter 9 Flashcards
1
Q
Define rational decision making model (1)
A
- six step decision model that describe how individuals behave in order to maximize some outcome
2
Q
What are the six decision model (6)
A
- define the problem
- develop the criteria
- weigh the criteria
- seek for alternatives
- evaluate the alternatives
- select the best alternative
3
Q
Assumption of the model (5)
A
- problem clarity
- known option
- no time or time constraint
- clear preference
- maximizing pay off
4
Q
How do people actually make decisions (3)
A
- rationality
- intuition
- judgement shortcut
5
Q
Define bounded rationality (2)
A
- weigh the alternatives
- limitation of a person ability to interpret, process, and act on information
6
Q
Define satisfice (1)
A
- solution on both satisfactory and sufficient
7
Q
Define intuitive (1)
A
- nonconscious decision making process created by person experience
8
Q
Define judgement shortcut (1)
A
- systematic bias and avoid difficult tradeoff, people tend to rely heavily on gut feeling and experience
9
Q
Define overconfidence bias (1)
A
- tendency arise when individuals are overly optimistic on one’s own performance
10
Q
Define anchoring bias (1)
A
- tendency that is fixate on initial information and failure to adequately adjust subsequent information
11
Q
Define confirmation bias (1)
A
- tendency to seek out information to reaffirm past choice and discount information that contradicts past judgement
12
Q
Define availability bias (1)
A
- tendency that person base their judgement on the information that is readily available rather than compete data
13
Q
Define escalation of commitment (1)
A
- increase commitment on previous decision despite clear evidence that suggest decisions may have been incorrect
14
Q
Define randomness error (1)
A
- tendency that people believe that they can predict the outcome of random events (superstition)
15
Q
Define risk aversion (1)
A
- tendency to prefer a sure gin of moderate outcome rather than riskier outcome, even if the riskier outcome has highly expected pay off
16
Q
Define hindsight bias (1)
A
- tendency likely to believe falsely, after the outcome of event is known, that individuals could have have accurately predicted the outcome
17
Q
The strength of group making decision (3)
A
- complete skills and knowledge
- increase the acceptance of solution
- increase the diversity of views
18
Q
The weakness of group making decision (4)
A
- conformity pressure
- dominant of one or more members
- ambiguous responsibility
- time consuming
19
Q
Define groupthink (2)
A
- group agree above everything and shutdown individuals with ideas
- illusion of invulnerability, acceptance of morality, rationalized resistance, peer pressure, minimize doubt, illusion of unanimity
20
Q
How managers to minimize groupthink (4)
A
- monitor group size
- make leaders play an impartial role
- make one member play the devil advocate
- stimulate active discussion of diverse interaction to emphasize dissenting views
21
Q
Define groupshit (1)
A
- group take on either extreme risk or conservative that an individual would have liked
22
Q
Group decision techniques (4)
A
- nominal group technique
- interactive group
- electronic meeting
- brainstorming
23
Q
Define the three component model (1)
A
- individual has creativity when the requirement of expertise, creative thinking skills, and intrinsic task motivators
24
Q
Factor affect creativity (6)
A
- freedom
- challenge
- resources
- work group feature
- organization support
- supervisory encouragement
25
Five features that block creativity (5)
- expected evaluation
- surveillance
- time
- competition
- external motivators : tangible rewards
26
Four ethical decision criteria (5)
- utilitarianism: decisions are based on outcome or consequences that emphasize the greater good for the greatest number
- justice
- right
- care
- whistle blower: individual who reports unethical practices of employers to outsider
27
Factor that influence ethical decision making behaviour (3)
- stage of moral development
- locus of control
- organization environment
28
Define stage of moral development (4)
- development stages on a person capacity to make judgement that are morally right
- preconventional: follow the rules
- conventional: fufill obligation and what is expected
- principles: do what self thing is morally right
29
Define locus of control (1)
- believe that outside influence has control over them
30
Define organization environment (1)
- code of ethics
31
How do you make ethical decisions (3)
- is the decision motivated by self serving interest
- does the decision respect the right of individual affected
- is the decision fair and equitable
32
Define corporate social responsibility (1)
- organization responsibility to consider the impact on society
