Final Exam Flashcards
Carter Racing
Proves the faults of group decision making - there was a sense of comp and time pressure leading to a decision on inconclusive data
Groupthink
wanting unanimity overrides motivation to realistically appraise alternatives
Contributing Factors to Groupthink
Structural and procedural flaws (hire from the same place, no contribution processes), cohesiveness (unfamiliar = more reserved, high = open and honest), proactive situational context (high pressure and time)
Symptoms of Groupthink
- Illusion of invulnerability (overconfident, supporting each other)
- Assumption of morality ( group believes it is VERY right, owe it to others)
- Rationalization (counter arguments get explained away)
- Stereotyping outgroups (not seeking other experts)
- Self-censorship (awkward to disagree so no one speaks up)
- Illusion of unanimity
- MIndguarding - (protecting group from info/people/factors that goes against the decision-limit or filter access to information)
Pressuring dissenter (people who disagree)
Symptoms of bad decision making
incomplete assessment of alternatives or objectives, rail to examine risks or reexamine alt., poor info search, selective bias in processing info, falure to create a contingency plan
How to avoid groupthink
Devils advocate, outsiders (unbiased, no stake), avoid being directive (especially leaders), generate comprehensive alternatives, search for info to determine quality of decision, examine pros and cons of alt, examine costs/benefits/risks, monitor results and react if risks happen
Why use group decisions
- Higher decision quality (more people/knowledge/ideas/evaluation),
- decision acceptance and commitment (they want to be involved if it affects them, will understand/be committed to/support a decision they participated in)
- Diffusion of responsibility (for poor decisions)
When is group performance best
With varying skills and abilities, division of labour can occur, need lots of memory for facts, judgments acan be combined
Disadvantages of group decision making
time, cost, conflict, domination, groupthink
Risky Shift
tendency for groups to make riskier decisions than the individual average risk that was advocated by members
Conservative shift
tendency for more conservative decisions than on their own
How does groups affect individual opinions
polarize/exaggerate the initial positioning of members
Contempory Approach to Improving Decision Making
Evidence based management, crowdsourcing, analytics and big data
Evidence based management
using peer-reviewed research, experts, professionals
Crowdsourcing
outsourcing aspects of decision making to large collection of people (may not have all the info/knowledge)
Analytics and Big data
Analytics (patterns in data) and Big Data (lots of info from variety of sources)
Ex. moneyball, netflix recommendations
Negotiation preparation
Assessment of self, opponent, and the situation
Self assesment for negotiation
Target (have SMART goals), know BATNA, multiple offers (social proof phenomennon - must be a reason everyone wants you), reservation point (lowest value you will accept)
BATNA
Best Alternative To a Negotiated Agreement
Reservation point
lowest value you will accept before walking away
Negotiation Bargaining Zone
The opposing reservation points
Assessment of opponent for negotiation
Know their position (what they say want) and their interests (what they actually want), and their BATNA
Assess the situation for negotiation
Is it an ongoing relationship, is an agreement required or could you walk away
Distributive Negotiation
Less overall vallue (fixed pie - win/lose)