Foundations of Decision Making Flashcards
Describe the Deciosion-making process.
- Identification of the problem
- Identificatiion of the relevant factors- What can change the problem?; Why is that a problem?
- Allocate weights to the relevant factors
- Find what can solve the problem
- Allocate weights to what can solve the problems
- Implement the solution
- Analyze whether the solution solve the problem or not
Name the common errors committed in the decision-making process.
Overconfidence Bias
Immediate Gratification Bias
Anchoring Effect
Selective Perception Bias
Confirmation Bias
Framing Bias
Representation Bias
Randomness Bias
Sunk Costs Error
Self-Serving Bias
Hindsight Bias
What’s intuitive decision making?
It’s when you make decisions based on feelings, experience and accumulated judgment.
Explain the difference between structured and unstructured problems.
Structured problems are normally clear and easier to solve since the problem is familiar and the information about the problem is easily defined and complete. Unstructured problems are harder to solve because they are new/unusual problems with information much ambiguous and normally incomplete.
Explain the difference between programmed and nonprogrammed decisions.
Programmed decisions are repetitive that can be handled using a routine approach. This type of decision has three guides: procedures, rules and policies. Nonprogrammed decisions are unique and nonrecurring and normally require a custom made solutions.
Do groups make decisions? Are there any benefits in group decision-making?
In organizations important decisions are typically made in groups. Group decision-making are advantageous since groups have different experiences and prespectives, bring more complete information to the table and increase the acceptance and legitimancy of a solution because its thinking process is always consistent with democratic ideals.
Are there any disadvantages in group decision-making?
Group decision-making has some disadvantadges like its time-consuming nature, minority domination of some memebers of the group, ambiguous responsability of the group and pressures to conform like groupthink.
What’s groupthink? How can it be minimized?
Groupthink is a form of conformity in which group members withhold deviant, minority, or unpopular views in order to give the appearance of agreement. Encouraging cohesiveness, fostering open discussion and having an impartial leader can minimize groupthink.
What’s brainstorming?
Brainstorming is an idea-generating process that encourages any and all alternatives while withholding any criticism of those alternatives.
Explain the nominal group technique.
This technique restricts discussion during the decision-making process and makes the group members present potential solutions secretly permitting and encouraging independent thinking.
What are the contemporary issues in managerial decion-making?
National culture, the way decisions are made, the degree of risk a decision-maker is willing to take, the decision-maker creativity and it’s design thinking and big data.
