unit 5: Decision Making & communication

Question 1

what are the 2 types of decisions?

Answer 1

Programmed: easy, daily decisions, require little effort & use information from previous decisions to guide

Non-programmed: difficult, creative decisions. No previous information available to guide the DM

Question 2

What are the 3 types of cognitive biases?

Answer 2

Escalating commitment
Loss aversion
Groupthink

Question 3

what is escalating commitment?

Answer 3

A cognitive bias

when you invest time/money into explicitly ineffective endeavor

Usually when managers are trying to recoup losses, ignore important info due to avoid responsibility, remain consistent (for respect)

Question 4

what is loss aversion?

Answer 4

When a decision is driven by the fear of what you could lose over the possibility of what you could gain

Question 5

what is groupthink

Answer 5

When you suppress contrary opinions to the majority to maintain harmony
self-censorship & reluctant to criticise

Question 6

what are the assumptions of classic/rational model of individual DM?

Answer 6

a normative, ideal view that assumes ALL alternatives, consequences are known
that there are no cog, time, economic restraints

Question 7

what are the 8 steps of the classical/rational model of individual DM?

Answer 7

1. Monitor D env
2. Monitor D problem
3. Specify objectives
4. diagnose problem
5. develop altrnative solutions
6. evaluate alternatives
7. choose best
8. implement

Question 8

Who proposed the 2 info-processing systems and what are they?

Answer 8

Kahneman

S1: Autonomous (fast, automatic, involuntary)
S2: Conscious (high effort, complex)

Question 9

what is a criticism of the classic model of individual DM?

Answer 9

Humans only make satisfactory decisiosn due to restrictions in cognitive, time & economic capabalities.

Question 10

what are the 3 models of org DM

Answer 10

Scientific Management
Carnegie Model
Garbage can model

Question 11

what is the scientific management model of org DM?

Answer 11

structure, favours tech & stats, removes human element

Question 12

what is the scientific management model of org DM good for?

Answer 12

Decisions involving identifiable & measurable variables

Question 13

What is the carnegie model/process of DM?

Answer 13

more realistic, states theres ambiguity in DM (due to lack of time & mental resources)

PROCESS
uncertainty > coalition formations > feasible solution > satisfactory decision

Question 14

what is the garbage can model of DM?

Answer 14

states that DM is complex & unpredictable

4 independent streams
1. Identify org. problems
2. solutions available
3. who participates in DM?
4. Moment of choice ; choice opportunities

Question 15

what is communication

Answer 15

a 2 way stream of sharing info (feedback)

Question 16

what is the sender, message, receiver process?

Answer 16

Sender: encodes message (language, signals, codes)
Message: impact by noise
Receiver: decode idea (verbal & nonverbal)

Question 17

what constitutes effective communication?

Answer 17

when the message recieved (interpreted) is the same as intended by the sender

Question 18

what is a verbal message

Answer 18

an encoded message (written, verbal)

Question 19

what are the types of non-verbal messages

Answer 19

proxemics (use of space)
Kinesics (body language)
Paralinguistic (vocal; tone, pitch, speed, volume)

Question 20

what are the 4 barriers to effective communication?

Answer 20

Physical
semantic (encode/decode process)
phsyiological
Psychological (MH, values, experiences)

Question 21

how can you reduce barriers of communication?

Answer 21

redundancy (repeating)
feedback
active listening
transmitting info skills

Question 22

what are the characteristics of high velocity DM

Answer 22

data-driven
develop multiple solutions to implement
seek advice from eveyron
involve everyone in DM -aim for consensus, if not - manager makes decision