Chapter 9 Flashcards
decision
The choice made from two or more alternatives.
problem
A discrepancy between some current state of affairs and some desired state.
opportunity
An occasion that gives rise to thoughts about new ways of proceeding.
rational
Refers to choices that are consistent and value-maximizing within specified constraints.
rational decision-making model
A six-step decision-making model that describes how individuals should behave in order to maximize some outcome.
bounded rationality
Limitations on a person’s ability to interpret, process, and act on information.
satisfice
To provide a solution that is both satisfactory and sufficient.
intuitive decision making
A nonconscious decision-making process created out of a person’s many experiences.
overconfidence bias
Error in judgement that arises from being far too optimistic about own’s own performance.
anchoring bias
A tendency to fixate on initial information and fail to adequately adjust for subsequent information.
confirmation bias
The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments.
availability bias
The tendency for people to base their judgements on information that is readily available to them rather than on complete data.
escalation of commitment
An increased commitment to a previous decision despite clear evidence suggesting that decision may have been incorrect.
randomness error
The tendency of individuals to believe that they can predict the outcome of random events.
risk aversion
The tendency to prefer a sure gain of a moderate amount over a riskier outcome, event if the riskier outcome might have a higher expected payoff.
hindsight bias
The tendency to believe falsely, after the outcome of an event is actually known, that one could have accurately predicted that outcome.
groupthink
A phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views.
groupshift
A phenomenon in which the initial positions of individual group members become exaggerated because of the interactions of the group.
interacting groups
Typical groups, in which members interact with each other face to face.
brainstorming
An idea-generation process that specifically encourages any and all alternatives while withholding any criticism of those alternatives.
nominal group technique
A group decision-making method in which individual members meet face to face to pool their judgments in a systematic but independent fashion.
electronic meeting
A meeting in which members interact on computers, allowing for anonymity of comments and aggregation of votes.
creativity
The ability to produce novel and useful ideas.
three-component model of creativity
The proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation.
ethics
the study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong.
utilitarianism
A decision focused on outcomes or consequences that emphasizes the greatest good for the greatest number.
whistle-blowers
Individuals who report unethical practices by their employers to outsiders.
stages of moral development
The developmental stages that explain a person’s capacity to judge what is morally right.
corporate social responsibility
An organization’s responsibility to consider the impact of its decisions on society.
