Decision Making

Question 1

gut decision making

Answer 1

Buchanan & O’Connell

• gut decision making has be viewed as courageous, and legends form around making courageous decisions,, however these decisions are less effective than rational decisions
• Rationality implies a mathematically derived solution to a problem

Question 2

cognitive heuristics

Answer 2

Hammond et al. (2006)

• Heuristics - Decision making is so complex that the brain uses unconscious routes
• Anchor trap
• Status Quo bias
• Sunk cost Trap
• Confirming evidence trap
• Framing Trap

Question 3

Bounded Awareness

Answer 3

Bazeman & Chugh (2006)

“bounded awareness” when cognitive blinders will prevent agents from seeing, using, or sharing relevant information when decision making.

• People are often fallible to the path of least resistance.
• People will often restrict their field of view in order to make a decision easier

Question 4

Choice Models & Power determinants

Answer 4

Pfeffer (1981)

• Power arises though conflict, and cannot exist outside of a relationship between two people.
• Power is determined by:
  (1) The importance of what they do in an organisation
  (2) their skill at doing it
• Power derives from having something somebody needs or wants

1) Rational choice model
2) Bureaucratic choice model

Question 5

Rational Decision Making & hierarchal decisions.

Answer 5

Robbins (2000)

Decisions are made under 3 circumstances:

(1) Certainty
(2) Risk
(3) Uncertainty

One’s managerial position will determine the types of decision they have to make
Low level - routine & programmed decisions
Mid Level - Coordination decisions
top Level - Unique and complex decisions

Question 6

Emotional Intelligence

Answer 6

Goleman