MGT 110 exam #2 flashcards

Question 1

What is FAE?

Answer 1

Fundamental Attribution Error, people place an undue emphasis on internal characteristics of the agent in explaining other peoples behavior
- “The tendency to believe that what people do reflects who they are”

Question 2

Four Steps to Remember a Person Name?

Answer 2

Focus, Ask, Comment, Employ
1. Focus: Lock in on the person’s face, lean forward and turn your head slightly to one side
2. Ask: inquire about his name, ask or clarify that you heard the name correctly, genuinely pay attention
3. Comment: say something about the name and cross-references it in your head
4. Employ: put name to use right away, a great aid to memory is to teach material to someone else, you can introduce them to someone else, don’t forget to end the conversation using their name, its a pleasure to meet you

Question 3

Solving Problems

Answer 3

Most important step in decision making,
deviation between the current and desired situation

Question 4

Self Serving Bias

Answer 4

the tendency for people to take personal credit for success but blame failure on external factors

Question 5

We make bad decisions because intuition?

Answer 5

Intuition*The ability to immediately understand something without conscious reasoning or evident rational thought
- can lead to cognitive biases: FAE & self-serving bias

Question 6

Heurtics

Answer 6

mental shortcut that saves time when making problem and make judgements quickly and efficiently but at the cost of occassionally sending us off course

Question 7

Judgement Errors

Answer 7

1. Availability
2. Representativeness
3. Anchoring and adjustment
4. Confirmation
5. Overconfidence
6. Escalation of commitment

Question 8

Availability

Answer 8

tendency to estimate the probability of something occurring by how easily we can recall those events
- easily remember emotional events therefore overestimate traumatic events
-ex. 16 shark attacks per yr in US but are more likely to die from a plane crash or hit by lightning

Question 9

Representatives

Answer 9

Judge the probability of something occurring based on how well it fits our mental model of similar situations,events, or people

Question 10

Anchoring and Adjustment

Answer 10

influenced by an individual anchor point an do not sufficiently move away from that point as new information is provided
Ex. selling a car , adjust what we’re willing to pay based on anchor

Question 11

Confirmation

Answer 11

Tendency to search for, interpret, favor and recall information in a way that confirms one’s pre-existing beliefs or hypotheses

Jon’s Tesla Bias

Question 12

Overconfidence

Answer 12

Tendency to be more confident in our judgement than is objectively reasonable
Ex. People are more sure that they are correct than they should be
Ex. Leader
-overconfidence is one example of miscalibration of subjective probabilities

Question 13

Escalation of Commitment

Answer 13

when we continue to dedicate resources, including time and money, to a failing course of action
ex. sunk costs, not wanting to give up and admit a mistake
Ex. Project in NY calculated to be $75 million built in 1973, it actually cost $6 billion and was done at 1986

Question 14

Tactics to reduce Bias

Answer 14

1. Confidence estimates
   - Develop a probability of range or confidence of something occuring
2. Trial-and-error Calibration
   - use prior data to calibrate your estimates
3. Healthy Skepticism
   - be prepared to question yourself and others
   -seek out negative or disconfirming evidence

Question 15

Decision Making

Answer 15

process of making choices among alternatives with the intention of moving toward some desired state of affairs

Question 16

Rational Critical Decision Making

Answer 16

rely primarily on two piece of information
- Probability that each outcomes will occur
- Valence or experienced satisfaction of each outcome

Question 17

Effective Problem Solving

Answer 17

There is a difference between good decisions and good outcomes
- cannot fully control the outcomes of our decisions
There is no such thing as a perfect decision process
- bounded rationality
-satisficing
- people rely on logic to evaluate and choose alternatives

Question 18

Prospect Theory

Answer 18

is a behavioral model that shows how people decide between alternatives that involve risk and uncertainty (e.g. % likelihood of gains or losses).
It tells us that people are risk averse when it comes to potential gains but risk seeking when it comes to avoiding loss.

Question 19

Bounded Rationality and Prospect Theory

Answer 19

*Choice A: You have a 50% chance of gaining $2,500 and a 50% chance of no gain.

*Choice B: You have a 100% chance of gaining $1,000.

Question 20

Risk Aversion vs Risk Seeking

Answer 20

Losses weigh more heavily emotionally in decision making than an equivalent gain

we are willing to engage in risk-seeking behavior where we can limit our losses

people will take more risk to avoid a loss

Question 21

Framing

Answer 21

to whether questions are presented as gain or losses
- people are more risk averse when decisions are framed in terms of loss

People put more emphasis on gains rather than losses, make decisions that increase their gains and avoid loss

Question 22

Despite our limitations, adhering to a problem-solving model has been shown to improve decision quality

Answer 22

The model consists of five major steps that we abbreviate into acronym PADIL: Decision Making Framework
Problem
Alternatives
Decide
Implement
Learn

Question 23

Problem:

Answer 23

Define and structure the problem , focus on the root cause, not the outcome

Question 24

Affinity Diagram

Answer 24

an idea generation method that allows your to sort aspects of the problem into themes or categories
Typical situations are
-after brainstorming exercise
analyzing verbal data
collecting large data sets

Question 25

Alternatives:

Answer 25

-Brainstorming vs brainwriting
- Diversify participants
use metaphors and analogies
- set high performance standards
Benchmark: compare possible solutions against industry best practices

Characteristics of good alternative
*Postponed evaluations
*Stakeholder involvement
*Organizational focus (consistent with organizational goals)
*Time implications (Focus on short and long-term solutions)
*Effective (the solutions addresses the root cause)

Question 26

PADIL(What is the D)

Answer 26

Decide:
*Is it feasible and effective?
*Alternatives table (list important decision criteria on one side and alternatives along the top; then compare)
*Devil’s advocate method (use for your favored solution)
*Don’t forget about the confidence and optimism biases! (e.g., attractiveness, intelligence, performance, positive/negative life events, etc.)

list your most important decisions first

Question 27

PADIL: Implement

Answer 27

*General recommendations
*Revisit key stakeholders (get approval before implementation)
*Implementation doesn’t need to happen all at once (e.g., small wins)
*Readjust if necessary

Question 28

padil: Learn

Answer 28

Determine whether the decisions and implementation was successful

Question 29

Team are most appropriate when

Answer 29

*When no individual expert exists who can handle the problem
*When innovation or creativity is necessary
*When you want to create a context where people feel connected
*When interdependency is required

Question 30

Classification of Team : Teams that recommend things

Answer 30

include task forces and project groups asked to study and solve particular problems

Characteristices
- Predetermined completion data
Cleat charter/purpose
Expertise
Ability to influence and implement recommendations

Question 31

Teams that make or do things

Answer 31

*People on or near the frontlines who are responsible for doing the basic value adding activities of a business (e.g., operations, sales, service, etc.).
*Focused on solving critical delivery issues

Characteristics:
- No set completion dates, ongoing activities
-focused on solving critical delivery issues

Question 32

Teams that run things

Answer 32

oversee a business, ongoing program, or significant functional activity

Characteristics
- No set completion dates
Focused on solving critical delivery issues

Question 33

High-performing teams

Answer 33

oversee a business, ongoing program, or significant functional activity

Characteristics
- No set completion dates
Focused on solving critical delivery issues

Question 34

HPT : Small size

Answer 34

-teams of 5-8 tend to work best
-smaller groups work harder, engage in a wider variety of tasks, take more ownership and feel more involved with the team

Question 35

HPT: Capable and complementary members

Answer 35

-capable of resolving conflict, solving problems, communicating well, settings goals, planning and coordinating tasks
- complimentary skills

Question 36

HPT: Shared purpose and performance objectives

Answer 36

clear understanding of what it is that we’re trying to achieve
-believe that the goal is worth pursuing
-team should know how we define sucess and specific necessary to achieve that outcome

Question 37

HPT: Productive norms and working approach

Answer 37

generally unwritten rules or standards of behavior that apply to team members

Question 38

HPT: Mutual accountability

Answer 38

-we must be able to trust that a team member will abide by norms and work toward the common goal
-we encourage this by cooperative vs competitive rewards

Question 39

Five Key Dynamics from Google study

Answer 39

Productive norms: psychological study
Mutual accountability: dependability
shared purpose and objectives :
structure & clarity
meaning
impact

Question 40

Team norms at Google

Answer 40

Team norms: informal and interpersonal rules that team members are expected to follow
These standards may be explicit and formally stated by the leader or members of the team