Chapter 9 Flashcards
Define rational decision making model (1)
- six step decision model that describe how individuals behave in order to maximize some outcome
What are the six decision model (6)
- define the problem
- develop the criteria
- weigh the criteria
- seek for alternatives
- evaluate the alternatives
- select the best alternative
Assumption of the model (5)
- problem clarity
- known option
- no time or time constraint
- clear preference
- maximizing pay off
How do people actually make decisions (3)
- rationality
- intuition
- judgement shortcut
Define bounded rationality (2)
- weigh the alternatives
- limitation of a person ability to interpret, process, and act on information
Define satisfice (1)
- solution on both satisfactory and sufficient
Define intuitive (1)
- nonconscious decision making process created by person experience
Define judgement shortcut (1)
- systematic bias and avoid difficult tradeoff, people tend to rely heavily on gut feeling and experience
Define overconfidence bias (1)
- tendency arise when individuals are overly optimistic on one’s own performance
Define anchoring bias (1)
- tendency that is fixate on initial information and failure to adequately adjust subsequent information
Define confirmation bias (1)
- tendency to seek out information to reaffirm past choice and discount information that contradicts past judgement
Define availability bias (1)
- tendency that person base their judgement on the information that is readily available rather than compete data
Define escalation of commitment (1)
- increase commitment on previous decision despite clear evidence that suggest decisions may have been incorrect
Define randomness error (1)
- tendency that people believe that they can predict the outcome of random events (superstition)
Define risk aversion (1)
- tendency to prefer a sure gin of moderate outcome rather than riskier outcome, even if the riskier outcome has highly expected pay off
Define hindsight bias (1)
- tendency likely to believe falsely, after the outcome of event is known, that individuals could have have accurately predicted the outcome
The strength of group making decision (3)
- complete skills and knowledge
- increase the acceptance of solution
- increase the diversity of views
The weakness of group making decision (4)
- conformity pressure
- dominant of one or more members
- ambiguous responsibility
- time consuming
Define groupthink (2)
- group agree above everything and shutdown individuals with ideas
- illusion of invulnerability, acceptance of morality, rationalized resistance, peer pressure, minimize doubt, illusion of unanimity
How managers to minimize groupthink (4)
- 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
Define groupshit (1)
- group take on either extreme risk or conservative that an individual would have liked
Group decision techniques (4)
- nominal group technique
- interactive group
- electronic meeting
- brainstorming
Define the three component model (1)
- individual has creativity when the requirement of expertise, creative thinking skills, and intrinsic task motivators
Factor affect creativity (6)
- freedom
- challenge
- resources
- work group feature
- organization support
- supervisory encouragement
Five features that block creativity (5)
- expected evaluation
- surveillance
- time
- competition
- external motivators : tangible rewards
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
Factor that influence ethical decision making behaviour (3)
- stage of moral development
- locus of control
- organization environment
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
Define locus of control (1)
- believe that outside influence has control over them
Define organization environment (1)
- code of ethics
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
Define corporate social responsibility (1)
- organization responsibility to consider the impact on society
