Decision-Making by Individuals and Groups: Chapter 7 Flashcards
1
Q
programmed decision
A
simple decision for which a manager has an established rule
2
Q
unprogrammed decision
A
a new, complex decision that requires a new solution
3
Q
making an idealized decision
A
- recognize the problem
- identify the objective of the decision
- gathering information relevant to the decision
- listing and evaluating other courses of action
- selecting the best course of action
- implementing the solution
4
Q
managers and decision-making
A
- risky and stressful
- trust and rely on others
- ultimately responsible for the decision
- decisions can be painful
5
Q
effective decision
A
- timely decision that meets desired objective
- is acceptable to individuals affected by it
6
Q
models of decision making
A
- rational model
7
Q
rationality
A
- logical, step-by-step
- with a thorough analysis of alternatives and their consequences
8
Q
rational model elements
A
- the outcome will be completely rational
- decision maker has a consistent system of preferences, which is used to choose the best alternative
- decision maker is aware of all the possible alternatives
- emotionless & unbiased
- probabilities of success are known
9
Q
bounded rational model
A
- managers choose the first satisfactory option
- recognize conceptual limitations (world is simple)
- choose from alternatives (which are not all known)
- use heuristics
10
Q
blue ocean approach
A
companies = better off entering new spaces rather than competing with existing companies in the market.
11
Q
limitations of the rational model
A
- unrealistic
- time and knowledge constraints
- managers’ needs and preferences change
it is an ideal managers strive for
12
Q
limitations of the bounded rational model
A
- risk and time pressure
- the situation is highly uncertain
- the probability of success is not known
13
Q
vroom-yetton-jago normative model
A
- helps leaders and managers determine the appropriate level of employee participation in decision making
- decide
- consult individually
- consult group
- facilitate
- delegate
14
Q
limitations vroom-yetton-jago normative model
A
- utility is limited by decision-making tasks
15
Q
Z model benefits
A
- capitalizes on the strengths of separate preferences (sensing, intuiting, thinking, and feeling)
- can help individual develop their nonpreferences
16
Q
Z model
A
- examine facts and details
- use sensing to gather information about problem. - generate alternatives
- use intuiting to develop possibilities - analyze the alternatives objectively
- use logical thinking to determine effects of each alternative - weigh impact
17
Q
garbage can model
A
- decision-making is a process of organizational anarchy
- “can” has problems, solutions, participants with different preferences, choice opportunities
- used to understand UN peacekeeping
- refer to figure 7.1 in textbook
18
Q
garbage can model benefits
A
- helps understand why sometimes solutions drive problems
- why individuals with power can control the outcomes of decisions
- insight into the nonrational processes in decision-making
19
Q
escalation of commitment
A
- tendency to continue to support a failing course of action
- closer a project is to completion, more likely escalation will occur
20
Q
escalation of commitment: examples
A
- price war: airline example
- bumping up the costs: NASA space station
21
Q
why does escalation of commitment occur?
A
- cognitive dissonance theory
- optimism
- control
- already put so much effort, that it feels wrong to simply quit
22
Q
how to deal with escalation of commitment
A
- split responsibility for project decisions
- allows different people to make decisions at different stages - closely monitor decision-makers
- provide individuals with graceful exit from poor decisions so that their self-images are not threatened
23
Q
cognitive limits to decision making
A
- halo/horns effect
- recency effect
- primacy effect
- confirmation bias
- central tendency
24
Q
cognitive biases
A
arise from relying on heuristics
25
implicit bias
unconscious, subtle feelings toward others that influence our judgments about them
26
implicit bias characteristics
- we favour the in-group, though not golden rule
- implicit biases are malleable
- can be gradually unlearned through debiasing techniques
- do not necessarily abide by our beliefs/stances
27
connection between implicit and explicit biases
- not mutually exclusive
- distinct mental constructs
- may reinforce each other
28
individual differences in decision-making
- cognitive style
- comfort with risk
- creativity
- intuition
- personality
29
risk: job examples
- acquisitions and mergers
- delegation
- hiring decisions
- new product development
- overseas expansions
- promotions
30
risk aversion
tendency to choose options that entail fewer risks and less uncertainty
31
risk taking
1. influenced by:
- individual’s tendency
- organizational factors
2. managers should establish a consistent attitude toward risk-taking (not punish failure)
32
styfling risk-taking
- can limit creativity and innovation
33
cognitive preferences
- how we typically think, remember, and address problems
- influence attitudes, values, social interaction
- seen as bipolar variables
34
field independence/independence
- tendency to be affected by the environment
35
field dependents characteristics
- most affected by the environment
- tend to get "the whole idea"
36
field independent characteristics
- conduct an analytical procedure
- are more likely to break a model into different sections and details
- tend to depend on their inner knowledge
37
managers and cognitive preferences
- manager's cognitive style affects the strategies they choose
- managers select successors with similar cognitive styles
38
personality, attitudes and values: developing creative abilities
- ask "what-if" questions
- engage in play
- follow intuition
- see the big picture, create a vision
- plan strategically
39
personality, attitudes and values: developing logic abilities
- set goals and work towards them
- understand day-to-day operations
- understand flow chart work processes
40
intuition
- fast, positive force in decision-making that is utilized at the unconsciousness level
- learned patterns of information
- ability to know or recognize quickly and readily the possibilities of a situation.*
- simple analyses frozen into habit
41
managers and intuition
- most rely on intuition in decision-making, research shows
- used extensively, especially as a mechanism to evaluate decisions made more rationally
- especially relied upon in challenging and unfamiliar situations
42
is there a link between cognitive moral development and intuition?
what is the connection
yes, the connection is ____.
43
can intuition be taught?
not really, but managers can be taught on how to rely on the promptings of their intuition
44
creativity
- process influenced by individual and organizational factors
- results in the production of novel and useful ideas, products, or both
45
stages of creativity
1. preparation
2. incubation
3. illumination
4. verification
46
stages of creativity: preparation
- seeking out new experiences and opportunities to learn
- reason: creativity grows from a base of knowledge
47
stages of creativity:
- process of reflective thought
- often conducted subconsciously
- individual engages in other pursuits while the mind considers the problem and works on it
48
stages of creativity: illumination
occurs when the individual senses an insight for solving the problem
49
stages of creativity: verification
- conducted to determine if the solution or idea is valid
- accomplished by thinking through the implications of the decision
- accomplished by presenting the idea to another person, or trying out the decision
50
momentary quieting of the brain can ____
increase “coherence” or ability of different parts of the brain to work together
51
creativity and individual differences
- cognitive processes
- mood
- personality
52
creativity: cognitive processes
- divergent thinking
- associational abilities
- use of imagery
- unconscious processes
53
divergent thinking
ability to generate several potential solutions to a problem
54
creativity: personality
- artistic values
- breadth of interests
- concern with achievement
- creative self-image
- desire for recognition
- high energy
- independence of judgment
- intuition
- intrinsic motivation
- self-confidence
- tolerance of ambiguity,
- risk-taking
55
creativity: positive mood
- allows team members to explore new ways of thinking.
- broadens cognitive patterns and resources
- initiate thoughts and actions that are novel and unscripted
- cyclical process: thinking positively makes us more creative, and being more creative makes us think positively
56
creativity: negative mood
- perform better at tasks involving considerable cognitive demands
- leads to more attention and vigilance in cognitive activity
57
creativity and organizational influences
- environment
58
creativity killers
- thinking about how work will be evaluated
- being closely monitored
- competing with others in win-lose situation
59
creativity facilitators
- high-quality supportive relationships with supervisors
- high-quality social networks
- flexible organizational structure
- participative decision making
60
creativity: individual/organizational fit
- higher performance when there is a company-employee match
- creativity training can help destroy mental locks
61
creativity mental locks
- Avoiding ambiguity
- Avoiding problems outside our own expertise
- Being afraid to look foolish
- Believing we are not really creative
- Following the rules
- Fearing failure
- Not making play a part of work
- Searching for the “right” answer
- Striving for practicality
- Trying to be logical
62
facilitating creative decisions
- allowing employees to fail
- creativity training
- exposure to creative ideas
- encourage employees to be surrounded by stimuli
- make work fun
- new ideas through task rotation
- rewarding creativity
63
using groups to make decisions: synergy
when group members stimulate new solutions to problems through the process of mutual influence and encouragement within the group
64
using groups to make decisions: benefits
- gain commitment to a decision
- bring more knowledge and experience to problem-solving
- greater understanding of the decision
65
social decision schemes
simple rules used to determine final group decisions:
- majority-wins rule
- truth-wins rule
- 2/3-majority rule
- first-shift rule
66
majority-wins rule
- group supports whatever position is taken by the majority of its members
- most used in preference decisions
67
truth-wins rule
- correct decision will emerge as an increasing number of members realize its appropriateness
- most used in intellectual decisions
68
2/3 majority rule
decision favoured by two-thirds or more of the members is supported
69
first-shift rule
members support a decision represented by the first shift in opinion shown by a member
70
using groups to make decisions: disadvantages
- pressure within the group to conform and fit in
- domination of the group by one forceful member or a dominant clique
- amount of time required because a group makes decisions more slowly than an individual
71
limits to group decision-making
- groupthink
- group polarization
72
groupthink
- deterioration of mental efficiency, reality testing, and moral judgment
- results from pressures within the group
73
groupthink factors of influence
- high cohesiveness
- homogenous group
- having to make a highly consequential decision
- time constraints
74
groupthink symptoms
- illusions of invulnerability
- illusions of group morality
- illusions of unanimity
- rationalization
- stereotyping the enemy
- self-censorship
- peer pressure
- mindguards
75
preventing groupthink
- Ask each member to actively voices objections or doubts.
- Have leaders avoid stating their position on the issue prior to the group decision
- Create several groups that work on the decision simultaneously
- Bring in outside experts to evaluate the group process
- Appoint a devil’s advocate
- Evaluate different motivations and intentions
- Once consensus is reached, encourage reexamining the alternatives
76
group polarization
tendency for group discussion to produce shifts toward more extreme attitudes among members.
77
group polarization: potential causes
- social comparison approach
- persuasive arguments view
78
social comparison approach
- prior to group discussion, individuals believe they hold better views than the other members
- during group discussion, they see that their views are not so far from average
- they shift to more extreme positions
79
persuasive arguments view
- group discussion reinforces the initial views of the members
- they take a more extreme position
80
approaches to decision-making
- brainstorming
- devil’s advocacy
- dialectical inquiry,
- nominal group technique
- quality circles
- quality teams
- self-managed team
81
brainstorming
- good for generating alternatives + as many ideas as possible
- participants are encouraged to build upon the suggestions of others
- imagination is emphasized
82
brainstorming disadvantages
- less effective than a comparable number of individuals working alone
- participants can lose focus by getting off topic
83
nominal group technique
- generating alternatives and choosing one
- good for when members fear criticism from others
- steps:
1. individuals silently list their ideas
2. ideas are written on a chart one at a time until all ideas are listed
3. discussion is permitted but only to clarify the ideas No criticism is allowed
4. written vote is taken
84
devil's advocacy
- group or individual is given the role of critic
- task = coming up with the potential problems of a proposed decision
- avoid costly mistakes by identifying potential issues in advance
85
dialectical inquiry
- debate between two opposing sets of recommendations
- sets up a conflict
- brings out the benefits and limitations of both sets of ideas
86
quality circles
- small groups meet to provide input for solving quality or production problems
- managers often listen to recommendations from quality circles and implement the suggestions
- involvement in decision-making process is = primary reward.
- not empowered to implement their own recommendations
- operate in parallel fashion to the organization’s structure
87
quality teams
- included in total quality management and other quality improvement efforts as part of a change in the organization’s structure
- generated from the top down
- empowered to act on their own recommendations
- make data-based decisions about improving product and service quality
- various decision-making techniques are employed in quality teams.
88
self-managed teams
- more broadly-focused
- make decisions that were once reserved for managers
example: work scheduling, job assignments, staffing
89
selecting the right decision-making technique
-----
90
quality-oriented groups and self-managed teams have ___ levels of involvement and authority in group decision-making.
higher
91
evidence supporting self-managed teams
- increased productivity
- lower employee turnover rate
- flatter organization structure
92
hot trend: electronic brainstorming
- overcomes production blocking and evaluation apprehension
93
overcoming production blocking occurs when ...
- occurs when you forget what you wanted to contribute because you were concentrating on listening to others
- ideas are recorded electronically
- participants can focus on the ideas they want to share free from interruption
94
overcoming evaluation apprehension
- occurs when individuals fear that others might respond negatively to their ideas
- input is anonymous, so evaluation apprehension is reduced
- electronic brainstorming groups outperform face-to-face brainstorming groups in the number of ideas generated
95
dissent
- going against the grain
- breaks down complacency
- leads to process that results in better decisions
96
collectivistic cultures (Japan,) prefer ____
- collective decisions
- group decisions
97
individualistic cultures (Canada, United States) prefer ____
- individualistic decisions
98
time orientation will determine ___
- the frame of reference of the decision
- China: longterm oriented, decisions are made with the future in mind
- Canada: short-term oriented, decisions are made with the short-term in mind
99
masculine cultures' impact on decisions
- value quick, assertive decisions
- example: Latin American countries
100
feminine cultures' impact on decisions
- value decisions that reflect concern for others
- example: Scandinavian countries
101
racially different groups vs racially similar groups
racially different = engage in more open information sharing, encourage dissenting perspectives, arrive at better decisions than racially similar groups
102
how does diversity impact decision-making
- better financial performance
103
participative decision making
- decision-making in which individuals who are affected by decisions influence the making of those decisions
104
organizational foundations for empowerment
- participative, supportive organizational culture and a team-oriented work
- design of work
105
participative and supportive organizational culture
- lower-level organizational members be able to make decisions and take action on those decisions
- fear, anxiety, or even terror can be created among middle managers in the organization as people gain power
106
work design
- old factory design does not work anymore = inconsistent with participation
- teamwork designs work better, especially today
107
3 individual prerequisites for participation and empowerment
- capability to become psychologically involved in participative activities
- motivation to act autonomously
- capacity to see the relevance of participation for personal well-being
108
German authoritarian culture vs participative work design
___ p 142
109
dependent personalities
- naturally predisposed to expect to be told what to do
- rely on external motivation rather than internal, intrinsic motivation
- not effective contributors to decision making
110
employees involved of all stages of decision-making have ...
- higher satisfaction
- higher performance
