Decision-Making and creativities Flashcards
Decision-making
Process of choosing a course action for dealing with a problem or an opportunity
Rational Decision model
- Recognize and define the problem or opportunity
- Identify and analyze alternative courses of action
- Choose a preferred course of action
- Implement the preferred course of action
- Evaluate results and follow up as necessary
Ethics
Philosophical study of morality or standards regarding good character and conduct
Moral Problem
Poses major ethical consequences for the decision making process
Moral dilemmas
Choose between alternatives that have both potential benefits and harm
Ethics Double-Checks
- DM isn’t only a process for the good of ORG
- Outcome should be anticipated
Criteria questions
- Utility
- Rights
- Justice
- Caring
Spotlight questions
Exposing a decision to the scrutiny of the public
Certain environment
Provide sufficient information on the expected results for decision making alternatives
Programmed decisions
- Implement solutions that have already beed determined by past experience
- Still have to tailor it
Uncertain environment
Provide no information on expected results for a decision making alternative
Nonprogrammed decision
Specifically crafted or tailored to fit a unique solution
Risk environment
Provide probabilities on expected results for a decision making alternatives
Classical Decision Model
View the manager or team as acting rationally and in a fully informed manner
Optimizing decision
Give the absolute best solution to the problem
Behavioral Decision Model
Decision makers make decisions only on term of what they perceive about a given situation
Cognitive limitations
What we’re able to know at any point in time
Bounded rationality
Where things are interpreted and made sense of as perception and only in context
Satisficing decisions
Choose the first alternative that’s satisfactory and seem to make sense
Heuristics
Simplified solution or ‘rule of thumb’
Availability Heuristic
Assess a current event based on past occurrences that are easily available in one’s memory
Reprensatativeness Heuristic
Assess the likelihood that an event will occur based on its similarity to one’s stereotypes of similar occurences
Anchoring and Adjustement Heuristic
Assess and event by taking the initial value by past event and then incrementally adjusting its value to make a current assessment
Decision Biases
- Confirmation error
- Hindsight trap
- Framing error
Escalated commitment
Continuing and renewing efforts on a previously chosen course of action, even if it’s not working.
- limits
- why
- cost
- own decision
