Decision Making & Leadership (CF)

Question 1

How can decisions be improved?

Answer 1

Decisions can be improved through systematic thinking and an awareness of common bias.

Question 2

What are common bias/ judgement shortcuts when making a decision? (Exam question)

Answer 2

Overconfidence bias, anchoring bias, hindsight bias, randomness error, availability bias

Question 3

What are the two ways we make decisions? (Exam question for sure)

Answer 3

1. Rational Decision-Making - based on data, weigh pros and cons, rationality is BOUNDED because it’s limited by capacity. We simply don’t have the capacity to analyze a whole lot of data, that is when…
2. Intuitive Decision-Making (kicks in). - faster, unconscious, it is communicated to you via your gut feelings, can’t verbalize how you arrive at your feelings. Examples: Reading a Room but comes from previous experience. Practice your strength and observation skills

Best to have strength in both these areas

Question 4

An unconscious information processing system based on experience. Fast, unconscious, affectively charged.

-One way to become aware of Intuition is through your feelings
-Pattern recognition needs to be a match.
Want to be a clear state
-connects through experiences I.e signs, symbols and colours
-unconscious pick up question such as visuals we might miss
-if you want to strengthen your skills you have to be reflective.

Answer 4

Intuition

Question 5

Diversity of views, creativity, decision quality

Answer 5

Strength of group decision-making

Question 6

Group think / group shift - people
Change their mind
Group shift; regardless of if you think they’re wrong.

Answer 6

Weaknesses of group decision-making

Question 7

The ability to influence a group towards the achievement of a vision or set of goals

Answer 7

Leadership

Question 8

What traits predict leadership?

Answer 8

The big five personality model (strong and consistent relationships between leadership and extraversion, conscientiousness and openness to experience).

Question 9

Specific behaviours that differentiate leaders from non-leaders. Implies we can train people to be leaders.

Answer 9

Behavioural theories of leadership

Question 10

Consider situations. Leaderships success is more than isolating traits and behaviours.

Answer 10

Contingency Theories of Leadership

Question 11

Effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control. Assumption is that leadership style is fixed.

Answer 11

Fiedler’s Contingency Model

Question 12

What are Fiedler’s Contingency Dimensions that determine the situation that a leader faces?

Answer 12

-leader member relations - trust,
Respect, etc.
-Task structure - procedurized
-position power - degree of influence, hiring, firing, promotions, salary increases

*optimal - high in all three

Question 13

What are the Three very important leadership styles? :) (exam question)

Answer 13

1. Transformational
   4 Transactional
2. Contemporary

Question 14

Emphasis on initiating/ creating structure

Answer 14

Task-oriented

Question 15

Emphasis on relationships and considerations

Answer 15

People oriented

Question 16

Leaders as communicators who inspire others to act beyond their immediate self-interest.
Charismatic Leadership - leaders with heroic or extraordinary abilities (the way they influence you, their presence & light)
Vision and articulation, personal risks, sensitivity to followers needs, unconventional behaviour.
I.e. great with people, very charming,
OBAMA

Answer 16

Transformational leadership

Question 17

How do TRANSFORMATIONAL Leaders lead?

Answer 17

-Idealized influence
- vision, sense of mission
-Inspirational motivation
- high expectations, focused efforts,
important purpose
-intellectual stimulation
- intelligent, problem solvers
***individualized consideration - coach & advise

Question 18

Leaders that guide followers towards established goals by clarifying role and task requirements.

Answer 18

Transactional Leadership

Question 19

How do Transactional Leaders,

Lead?

Answer 19

• Contingent Reward - recognized accomplishments, rewards good performance
• Manages by exception - intervenes only when standards are not met.
• transactional ONLY comes in when there is a problem to be solved. Only happens when standards are NOT met.

Job type has an effect on the tendency you want to exhibit in terms of transformational vs transactional

** best leaders are those who are both transactional and transformational.

Question 20

What are contemporary leadership roles?

Answer 20

1. Mentoring
2. Self- leadership/ self management
3. Team leadership
4. Online leadership
5. Leading without authority.

Question 21

What are some contemporary topics in leadership?

Answer 21

Authentic
Ethical
Social charismatic
Servant leadership

Question 22

What is cognitive bias?

Answer 22

Short cuts I.e to make something shorter (availability bias- haven’t read too much info and saying you know something).

Question 23

You have an idea and based on that, that’s how you make all your decisions.

Answer 23

Anchoring Bias

Question 24

Difficulty admitting they are wrong about reality I.e I knew this would happen.

Answer 24

Hindsight error

Question 25

Trying to make connections (I.e every Wednesday it rains)

Answer 25

Randomness error

Question 26

Whatever is there, you just run with it, don’t give it a second thought.
This is bad - you need to dig deeper and keep an open mind when making decisions and not to side to anything. Always be aware of your self.

Answer 26

Availability bias

Question 27

more confidence in your decision than is reasonable given the facts of the situation

Answer 27

Over-confidence bias

Question 28

more confidence in your decision than is reasonable given the facts of the situation

Answer 28

Over-confidence bias