Individual & Group Decison Making Flashcards
what is decision
a choice made from among available alternatives
what is the decision making
Process of identifying and choosing alternative courses of action
stages in decision making
Stage one- identify the problem or opportunity
Stage 2- think up alternative Solutions
Stage 3- evaluate Alternatives and select a solution
Stage 4- Implement and evaluate the solution chosen
what does rational decision making explain and assume
explain how managers should make decisions
Assume managers will make logical decisions that will be the optimum in furthering the organization’s best interest
what does rational model also called
Classical model
what are the three assumptions of the rational model
- complete information, no uncertainty
- logical, unemotional analysis
- best decision for the organization
what does non-rational models assumes
Assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions
what does bounded rationality suggest
Suggest that the ability of decision-makers to be rational is limited by numerous constraints
what is the example of numerous constraints
Complexity, time, money, and cognitive capacity
what is satisficing model
Manager seek Alternatives until they find one that is satisfactory, not optimal
what is incremental model
Managers take small, short-term steps to elevate a problem
what are the benefit of intuition model
- it can spit up decision-making useful ,when that lines are tight
- it can be helpful to managers when resources are limited
what is prior hypothesis bias
Decision makers with strong prior beliefs tend to make their decision based on their beliefs- even if evidence shows that those beliefs are wrong
what are the 3 example of non-rational models
Satisficing,
Incremental,
Intuition
what is problems in terms of management
Difficulties that inhibit the achievement of goals
what is opportunities in management
Situations that present possibilities for exceeding existing goal
what does diagnosis mean
Analyzing the underlying causes
evaluate each alternative according to
Cost, quality
ethical,
Feasible ,
effective
what do we need to do t achieve successful implementation
- plan carefully
- be sensitive to those affected
what should you do if the action is not working
- give it more time
- change it slightly
- try it another alternative
- start over
what is holistic hunch
Intuition that stems from expertise
what is automated experience
Intuition based on feelings- the involuntary emotional response to those same matters
what are the drawbacks for intuition model
it can be difficult to convince others that your hunch makes sense
what does evidence-based decision making depends on
Depends on an “attitude of wisdom”
what is the principle of evidence-based decision making
- Treat your organization as an unfinished prototype.
- No brag, just facts
- Do yourself and your organization as Outsiders do
- Evidence-based management is not just for senior executives
- Like everything else, you still need to sell it
- If all else fails, slow the spread of bad practice
- The best diagnostic question: what happens when people feel?
what makes it hard to be evidence based
- There’s too much evidence
- There’s not enough good evidence
- The evidence doesn’t quite apply
- People are trying to mislead you
- You are trying to mislead you
- The side effects outweigh the Cure
- Stories are more persuasive anyway
what is analytics
- sophisticated forms of business data analysis
- also called business Analytics
what are the three key attributes among analytics competitors
- Use of modeling: going Beyond Simple descriptive statistics
- Having multiple applications, not just one
- Support from the top
what does decision making style reflect
Reflects the combination of how an individual perceives and responds to information
what are the two dimension of decision making style
- value orientation
- tolerence for ambiguity
questions to ask when making decision that is ethical
- Is the proposed action legal?
- If yes, does the proposed action maximize shareholder value?
- if yes, is the proposed action ethical?
- If no, would it be ethical not to take the proposed action
what are the general moral principles for managers (7)
- Dignity of human life
- autonomy
- honesty
- loyalty
- fairness
- humanness
- the common good
what are the ineffective responses to decision situation
- relaxed avoidance
- relaxed change
- defensive avoidance
- panic
what how to decide (three effective reactions)
Important- how high priority is this situation?
Credibility- how believable is the information about the situation?
Urgency- how quickly must I act on the information about the situation?
what is the example of analytics
Portfolio Analytics, time series forecast
what is predictive modeling
Data mining technique used to predict future Behavior and anticipate the consequences of change
what are the four general decision making style
Analytical- consider more information and alternatives
Directive- people are efficient, logical ,practical and systematic in their approach to solving problems, action-oriented, decisive and likes to focus on facts
Conceptual- takes a broad perspective problem solving, likes to consider many options and future possibilities
Behavioral- supportive, receptive to suggestions, show alarms, prefer verbal to written information
what does value orientation reflects
Reflects the extent to which a person focuses on either task and Technical concerns or people and social concerns when making decisions
how how can we use knowledge of decision making styles
- helps you to understand yourself
- can increase your ability to influence others
- gives you an awareness of how people can take the same information and yet arrived at different decisions
what is a ethics officer
someone trained about matter of ethics in the workplace, particularly about resolving ethical dilemmas
what is a decision tree
a graph of decision and their possible consequences, is used to create plan to reach goal
in relax avoidance a manager decides to what
manager decides to take no action in the belief that there will be no great negative consequences
relax change is a form of what
satisficing
what does scholars call rule of thumbs
heuristics
what is heuristics
strategies that simplify the process of making decision
what are the six common decision making bias
- availability bias
- sunk-cost bias
- confirmation bias
- representative bias
- anchoring and adjustments bias
- the escalation of commitment bias
what is availability bias
using only the information available
what is confirmation bias
seeking information to support’s one’s point of view and discount data that doest not support
what is representative bias
the tendency to generalized
from a small sample or a single event
what are the advantages of decision making
- greater pool of knowledge
- different perspectives
- intellectual stimulation
- better understanding of division rationale
- deeper commitment to the decision
what are the disadvantages of decision making
- a few people dominate or intimidate
- groupthink: when group members strive to agree for the sake of you unanimity and thus accurately assessing the decision situation
- satisficing
- goal displacement: occurs when the primary goal is subsumed by secondary goal
what managers need to know about groups and decision making
- They are less efficient
- They’re size affects decision quality
- They may be too confident
- Knowledge counts
what is participative management
Process of involving employees in setting goals, making decisions, solving problems, and making changes in the organization
what are the group problem solving techniques
- consensus
- brainstorming
what are the two types of computer aided decision making
- Chauffer-driven systems
2. Group-driven system
what is the meaning of consensus
Occurs when members are able to express their opinions n which agreement to support final decision
what are the do’s and don’ts in making consensus
Dos: use active listening skills. Involve as many members as possible.. Stick out the reason behind arguments. Dig for the facts
Don’ts: avoid log rolling and horse Trading (I’ll support your pet project if you’ll support mine) avoid making an agreement simply to keep relations amicable and not Rock the Boat
what is brainstorming
Technique used to help groups generate multiple ideas and alternatives 4 solving problems
what are the some rules of brainstorming
- Defer judgement
- Built on the ideas of others
- Encourage wild ideas
- Go for quantity over quality
- Be visual
- Stay focused on the topic
- One conversation at a time
what is the Delphi technique
A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect average to achieve a consensus of expert opinion
what is sunk cost bias
When managers at up all the money already spent on a project and conclude it is too costly to Simply abandon it
the song called bias is sometimes called what
Sunk cost fallacy
what is anchoring and adjustments bias
The tendency to make decisions based on an initial figure
what is prospect theory
Suggest that decision-makers find the notion of an actual loss more painful then giving up the possibility of a game
in group decision making the group must be made of what
Must be made up of diverse participants, not just people who all think the same
what is goal displacement
Occurs when the primary goal is subsumed by a secondary goal
what three practical guidelines that can help manager decide whether to include people in decision making process
- when it can increase quality
- when it can increase acceptance
- when it can increase the development
p.m. is predicted to increase what
To increase motivation, innovation, and performance because it helps employees to fill three basic needs
PM helps employee fulfill 3 basic needs what are they
Autonomy, meaningfulness of work an interpersonal contact
what is the meaning of interact constructively
Have the kind of relationship that Fosters Corporation and respect rather than competition and defensiveness
p.m. can be effective when what are present
Supportive managers an employee Trust
What is intuition model
Making choices without the use of conscious thought or logical inference
Sources are expertise and feelings
