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26 Cards in this Set
- Front
- Back
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Rational Decision Making steps
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1 ID the problem
2 Establish decision Criteria 3 Weigh decision criteria 4 Generate alternatives 5 Evaluate the alternatives 6 Choos best alternative 7 implument the decision 8 Evaluate the decision |
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Making “Good Enough” Decisions
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The main difference is that rather than choosing the best option and maximizing the potential outcome, the decision maker saves cognitive time and effort by accepting the first alternative that meets the minimum threshold.
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intuitive decision-making model
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Managers makedecisions under challenging circumstances, including timepressures, constraints, a great deal of uncertainty,changing conditions, and highly visible and high-stakes outcomes. Works well when the perosn as a high knowledge about the situation type
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Making creative Decusions (Steps)
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Problem Recognition
Immersion Incubation illumination Verification and application |
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Overconfidence bias
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occurs when individuals overestimate
their ability to predict future events |
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Hindsight bias
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occurs when looking backward in time and mistakes seem obvious after they have already occurred
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Anchoring
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refers to the tendency for individuals to rely too
heavily on a single piece of information. |
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Framing bias
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refers to the tendency of decision makers to
be influenced by the way that a situation or problem is presented when making a purchase, customers find it easier to let go of a discount as opposed to accepting a surcharge, even though they both might cost the person the same amount of money |
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Escalation of commitment
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individuals continue on a failing course of action after information reveals it may be a poor path to follow. Making choices based on a sunken cost
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Individual decision Making Pros
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faster decision making
Best indidivual outperforms group Accountability is easier |
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Individual decision Making Cons
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fewer ideas
ID the best can be difficult procrastination |
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Group Decision Making Pro
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Diverisity in ideas
Greater commitment to ideas Interaction fun and team building |
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Group Decision Making Cons
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Takes longer
Gorup think socail loafing |
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Symtoms of group think
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Illusion of invulnerability
Collective rationalizations An unquestioned belief in the group’s inherent morality Stereotyped views of outgroups Direct pressure Self-censorship Illusions of unanimity The emergence of self-appointed mind guards |
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Illusion of invulnerability
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is shared by most or all of the
group members, which creates excessive optimism and encourages them to take extreme risks. |
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Collective rationalizations
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occur, in which members
downplay negative information or warnings that might cause them to reconsider their assumptions. |
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An unquestioned belief in the group’s inherent
morality |
occurs, which may incline members to ignore
ethical or moral consequences of their actions. |
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Stereotyped views of outgroups
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are seen when groups
discount rivals’ abilities to make effective responses. |
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Direct pressure
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is exerted on any members who express
strong arguments against any of the group’s stereotypes, illusions, or commitments. |
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Self-censorship
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occurs when members of the group
minimize their own doubts and counterarguments. |
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Illusions of unanimity
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occur, based on self-censorship and
direct pressure on the group. The lack of dissent is viewed as unanimity. |
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The emergence of self-appointed mindguards
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happens
when one or more members protect the group from information that runs counter to the group’s assumptions and course of action. |
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Avoiding Group Think (Groups)
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Assign someone to play devil’s advocate
Invite outside experts Value differences |
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Avoiding Group Think (Individuals)
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Check for self-censoring
Avoid putting pressure on others Avoid mindguard behaviors |
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Avoiding Group Think (Leaders)
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Remain impartial
Seek anonymous feedback Have multiple groups work on the same issue |
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Satisficing
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the decision
maker saves cognitive time and effort by accepting the first alternative that meets the minimum threshold |
