Decision Making Flashcards
difficulties with decision making (5)
- self-doubt
- indecisiveness
- avoidance
- decidophobia
- cognitive limitations
what are the characteristics of indecisiveness (7)
- stress, depression, illness
- fear of the unknown
- procrastination
- fear of making a wrong decision
- fear of acting on one’s own and over-dependency on the opinions of others
- lack of good judgement
- fear of taking responsibility/standing alone on an issue
when may cognitive limitations arise (2)
at any point when:
- recognizing need for a decision
- identifying available resources that can be used
decision-making style definition (2)
- characteristic way person makes decisions or strategizes
- affected by values, knowledge, ability, motivation, personality traits, socialization
what are decision-making styles comprised of (3)
- types of decisions made
- speed
- amount of information gathered
decisions (4)
- process of making choice between 2+ alternatives
- values influence decisions and goals provide direction
- part of transformation process in systems
- integral part of the management process
what are the ways that we can make decisions (3)
- decision process
- intuition
- heuristics
decision process (6)
DECIDE:
- define the decision
- estimate resources
- consider alternatives
- imagine consequences of alternative actions
- develop action plan and implement it
- evaluate the decision
decision process:
1. define the decision (4)
- purpose of needed behaviour
- relevant or needed background information and how it will be used
decision process:
2. estimate resources (3)
- decide what resources are needed
- # of alternatives decided by the resources possessed anticipated
decision process:
3. consider alternatives (3)
- due to limitations on resources, usually cannot consider all alternatives
- must narrow down to 1-2 alternatives (increasing criteria if needed)
decision process:
4. imagine consequences, alternative courses of action
- think of most likely alternative
- prepurchase expectation
prepurchase expectation
- consumer belief about anticipated performance of a good or service
what factors can help in choosing alternatives
- experience of yourself and others
- experimentation
- search for information
decision tree
- model shows that people select alternatives based on their goals and perception of available resources and that values underlie decisions
decision tree flow (4)
- values determine goals and are the root of all decisions
- consider goals 1 and 2
- consider resources for goals 1 and 2
- consider alternatives to make a decision
decision process:
5. develop action plan/implement (3)
- select one alternative and put decision into action/implementation:
- -> monitor progress
- -> evaluate progress and make adjustments
decision process:
6. evaluate decision (2)
- judge success of decision
- reduce doubt or anxiety through assurance; reduce post-purchase dissonance in consumer decision making
central-satellite model (2)
- show how one central decision can give rise to many other decisions in other areas
- for larger, more complication systems
chain model (2)
- each decision builds on the previous one, forming a sequence of decisions
- for smaller, systematic decisions
reference groups (2)
- groups we turn to for advice, information, feedback and experience
- helpful in information gathering stage and for support before decision
when is intuition okay for decision making (4)
- high level of uncertainty
- little precedent for decision
- limited information and time for decision
- several plausible/relatively equal alternatives
decision rules (2)
- principles guiding decision making
- vary by situation and culture
what are examples of decision rules (6)
- economizing: the cheapest option
- optimizing: the best option
- satisfying: good enough option
- price equals quality
- once good, always good
- always seek the best outcome or waste as little time as possible
