foundations of decision making Flashcards
What are the steps for decision making?
- identifying a problem
- identifying decision criteria
- weighting criteria
- developing and analysing alternatives
- selecting the best alternative
- implementing and evaluating the decision
what are the 12 common errors in decision making?
- anchoring effect
- selective perception bias
- confirmation bias
- framing bias
- availability bias
- representation bias
- randomness bias
- sunk coats error
- self- serving
- hindsight bias
- overconfidence bias
- immediate gratification bias
what is immediate gratification bias?
implementing something because it is available sooner than the best choice.
what is hindsight bias?
choosing something that you aren’t positive is the best decision and then in the long run deciding that it was a good decision “I always knew she was going to turn out to be the best choice for team leader”
what is the self-serving error?
The self-serving bias is people’s tendency to attribute positive events to their own character but attribute negative events to external factors
what is the sunk-cost error?
“that IT system is more user friendly than ours but we spent a lot of money on our system so well keep using it.
what is the randomness bias?
relating two completely different things to assist in the decision making process
what is the representation bias?
Representational Bias is when someone thinks that their experience is representational of everyone s (or a majority s) experience
what is the availability bias?
Availability Bias is the tendency to let an example that comes to mind easily affect decision-making or reasoning
what is the framing bias?
‘The important thing to consider is that option A will improve morale.
what is the confirmation bias?
tend to accept at face value information that confirms
what is the selective perception bias?
I thought this task would be difficult and now that I see what’s involved
what is rational decision making?
Choices that are consistent and value maximising within specified constraints
what are the aspects of intuitive decision making?
- affect-initiated decisions
- cognitive-based decisions
- subconscious mental processing
- values or ethics-based decisions
- experience-based decisions
Group decisions
decisions are often made by groups representing the people who will be most affected by those decisions
- committees
- task forces
- review panels
- work teams
