TEST 1 CHAPTER 5 PART 3 Flashcards
A group pressure phenomenon that increases the risk of the group making flawed decisions by leading to reduced mental efficiency, reality testing, and moral
judgment
EXAMPLE: Challenger exploded 73 seconds after liftoff, killing all seven astronauts aboard
Groupthink
Step 1 of rational decision making model?
Identify the problem
Step 2 of rational decision making model?
Establish decisions criteria
Step 3 of rational decision making model?
Weigh decision criteria
Step 4 of rational decision making model?
Generate alternatives
Step 5 of rational decision making model?
Evaluate the alternatives
Step 6 of rational decision making model?
Choose the best alternative
Step 7 of rational decision making model?
Implement the decision
Step 8 of rational decision making model?
Evaluate the decision
Firms creating the same economic value as
their rivals.
Competitive parity