Decision Making Flashcards
a decision is….
a judgement that considers (ethical implications)
- cognitive thoughts
- moral process
- social process
A theory in decision making
Incentive contribution theory
- your costs should be lower than the benfits you get (appreciation)
rejection: when the benefit you get is lower than the contribution
three ways of heuristic decision makings
a) availability heuristics (all the given information can be used)
b) representative heuristics: (Deputy decision making based on familiar things or facts, decision are often made as before)
c) escalation of committment ( rely on old decisions)
Three ways of organisational decisions
a) quasi - conflict resolution: negotiations + compromises (typical within democratic organisations)
b) avoiding uncertainity (focus on urgent problems)
c) problem-oriented search:
- only when a problem occurs we start to change things
- but this may not be the best way to develop the organisational goals
- orientation towards known and proven solutions
8 steps of the decision making process:
- identification of problem
- establish decision criteria
- weighting decision criteria
- development of alternatives
- analysis of alternatives
- choice of best alternative
- implementation of alternative
- Evaluation of effectiveness of the decision
three criteria to judge
(a) utility- does it optimize benefits?
(b) rights – does it respect the rights of those involved?
(c) Justice - is the action fair?
four levels of expectations in terms of ethical rights that can be expected of an organisation
- not directly harm people
- not engage in activities that are socially or environmentally unsustainable
- not lie or otherwise misrepresent the activities of the cooperation
- engage in activities that are socially desirable
Four ways how to mitigate conflict of interests:
(a) Removal
(b) Recusal (Selbstablehnung) (outstand, retirement)
(c) Third party evaluation
(d) Code of ethics
styles of decision makings
Autocratic = makes own decision
Autocratic II = needs information and then makes own decision
Consultative I = shares problem to individual members and takes their input into account
Consultative II = shares problem to all members and takes their input into account
Group II = shares problem with group and find a decision together (the most democratic one)
Advantages of group decisions
- To plan, generate ideas, solve problems, make decisions, create regulations, to lead
Advantages of group decisions:
- more ideas
- more comprehensive solutions
- more alternatives
- higher acceptance of the decision made
- greater legality
Disadvantages of group decisions:
- time and resources consuming
- harmony can be affected
- distribution of the responsbility is too many
- danger of conflicts
- danger to be dominated by minority
- pressure of opinion accommodation
Symptoms of group-thinking include:
- Illusion of invulnerability
- Collective rationalization
- Pressure for conformity
- Self-censorship
- Illusion of unanimity
- Stereotyping
Decision can be made:
- Independently and with the information currently available
- Independently but with information from others
- Independently but with collection of suggestions and information of others
- Be made by the group
Group thinking biases:
Brandwagon effect: The tendency of members of the group to beleive or agree to something because it seems that many others also sees it that way.
Bolstering: a group decision is made without carefully thinking it through
Procastination: the group dicplaces very important decisions (high priority) with tasks that have a lower prority to avoid the effort and stress to make the most difficult decision
Satisficing: people accept the first proposed soultion viewed as satisfactory rather than searching for the best possible solution.
undesirable compromises: groups often choose actions that are simply compromises (that often result in a lower quality)
