OS chapter 12 Flashcards
Organizational decision making
The process of addressing a problem by identifying and selecting a solution or course of action that adds value for organizational stakeholders
programmed decisions
Decisions that are repetitive and routine
Satisficing
Limited information searches to identify problems and alternative solutions
Bounded rationality
A limited capacity to process information
Nonprogrammed decisions
Decisions that are novel and unstructured
Organizational learning
The process through which managers enhance the ability of organization members to understand and navigate the organization and its environment, enabling them to make decisions that boost organizational effectiveness
Exploration
The search and experimentation by organizational members with new types or forms of activities and procedures
Exploitation
The process by which organizational members learn to refine and improve existing activities and procedures
Learning organization
An organization that intentionally designs its structure, culture, and strategy to enhance and maximize opportunities for organizational learning
Adaptive cultures
Cultures that prioritize innovation and encourage experimentation and risk-taking among middle and lower-level managers
Inert cultures
Cultures that are cautious and conservative, lacking encouragement for risk-taking among middle and lower-level managers
Cognitive structures
The interconnected system of beliefs, preferences, expectations, and values that a person uses to understand and define problems and events
Knowledge management
An IT-enabled organizational approach that enhances both organizational learning and decision-making processes
Cognitive biases
Factors that consistently distort cognitive structures, influencing organizational learning and decision-making
Cognitive dissonance
The discomfort or anxiety experienced when there is a conflict between a person’s beliefs and their actions
Illusion of control
A cognitive bias that leads managers to overestimate their ability to control the outcomes of their actions
Frequency
A cognitive bias that causes individuals to mistakenly believe that extreme instances of a phenomenon are more common than they actually are
Representativeness
A cognitive bias that results in managers making judgments based on small, unrepresentative samples rather than on comprehensive data
Projection
A cognitive bias that enables managers to justify their own preferences and values by attributing them to others
Ego-defensiveness
A cognitive bias that causes managers to interpret events in a way that portrays their actions in the most positive light.
Escalation of commitment
A cognitive bias that compels managers to persist with a failing course of action and refuse to acknowledge their mistakes
Groupthink
A phenomenon where like-minded individuals reinforce each other’s tendencies to interpret events and information in the same way, leading to conformity
Devil’s advocate
A person designated to challenge and critique ongoing organizational learning and decisions to ensure thorough evaluation and consideration of alternative viewpoints
