Ch.9 Decision, Creativity, & Ethics Flashcards Preview

OBHR 317 MEURS > Ch.9 Decision, Creativity, & Ethics > Flashcards

Flashcards in Ch.9 Decision, Creativity, & Ethics Deck (17):
1

How should a decision be made?
Define Rational Decision Making

Makes consistent, value-maximizing choices with specific constraints.

2

Name the six steps in the decision-making process

1) Highlight the underlying issue
2) Identify goals (criteria)
3) Identify which goals you value more
4) Choose alternatives
5) Make sure alternatives do not aid symptom but rather solve underlying issue
6) Choose the best alternative

3

What are the assumptions of the rational decision-making model:

use KS riddle

1) Problem clarity - The problem is clear & unambiguious
2) Known option - The decision maker can indentify all revelant criteria & viable alternatives
3) Clear preference - Ratinally assumes that the criteria & alternatives can be ranked & weight
4) Constant preference - Specific decesion criteria are constant & weights are stable over time.
5) No time or cost contraints - FULL information is disclosed because there are no time or cost contraints.
6) Maximize payoff - The choice alternatives will yield the highest perceived value

4

How do individuals actually make decisions?

1) Bounded rationally
2) Satisficing
3) intuitive

5

Judgement Shortcuts: Common Biases in Decision Making (7)

1) OVERCOMING BIAS - too confident in abilities that as a result become harmful
2) ANCHORING BIAS -When you associate initial information and perpetuate someone based on that initial association.
3) CONFIRMATION BIAS - The fact that we tend to seek out beliefs that confirm our own
4) Escalation of Commitment - When you keep doing things the same, regardless, of negative reproccusions.
5) Randomness Error - When you take something random & develop a superstition surrounding that
6) Risk aversion - Introduce a bias individual, they will not make a proper decision when introduced to a pressure
7) Hindsight Bias - When we look at past mistakes and deemed them obvious or easy to avoid presently

6

Group Decision Making Techniques

Interacting Groups: In person meeting. Verbal/non-verbal

-Electronic Meetings- Facetime. Potential for
anonymous

Brainstorming - Generating a large number of ideas without critically evaluating any of them. (Public evaluation)

Nominal Group Technique- Advance way of brainstorming
1) Ideas are written down without discussion
2) Ideas are presented systematically
3) Ask clarifying questions about ideas
4) Members take a silent vote ranking the alternatives
and eventually reaching a conclusion

7

Group Decision-Making Techniques - Interacting Groups

In person meeting. Verbal/non-verbal
-Electronic Meetings- Facetime. Potential for anonymous

8

Group Decision Making Techniques - Brainstorming

Brainstorming - Generating a large number of ideas without critically evaluating any of them. (Public evaluation)

9

Group Decision Making Techniques - Nominal Group Technique

Advance way of brainstorming
1) Ideas are written down without discussion
2) Ideas are presented systematically
3) Ask clarifying questions about ideas
4) Members take a silent vote ranking the alternatives
and eventually reaching a conclusion

10

Individual Vs. Group Decision Making (6) pros/cons notable

1) Time: Groups consume time
2) Cost: Groups cost more
3) Who/ how many are affected - Groups represent a large variety of people (cross-functional committe)
4) Nature of problem: Groups can solve more complex problems
5) Satisfaction/Commitment: Of people have a voice or input, they're more likely yo ne satisfied/commited
6) Personal Growth - If an individual person can benefit by making a decision that give that decison to that individual

11

What Are The Four Criteria For Making Ethical Choices

1) Utilitarian Decision
2) Right Criterion
3) Justice Criterion
4) Care Criterion

12

Define a Utilitarian decision from the Criteria For Making Ethical Choices

A decision that focuses on the outcome that does the most good to the greatest number of people

13

Define a Right Criterion decision from the Criteria For Making Ethical Choices

A decision consistent with fundamental liberties & privileges as set forth in a document like the Charter of Rights and Freedom

14

Define a Justice Criterion decision from the Criteria For Making Ethical Choices

Decision that imposes & enforces rules fairly & impartially so there in equitable distribution of benefit & cost

15

Define a Care Criterion decision from the Criteria For Making Ethical Choices

Expresses care in the protection of special relationships that individuals have for each other

16

The Social Responsibility of Businesses - Describe The Efficiency Perspective

The obligation of the business to maximize profit for their shareholder

17

The Social Responsibility of Businesses - Describe The Social Responsibility Perspective

Managers bear the fiduciary 9 (good faith and trust) relationship to stakeholders.