Chapter 23 Flashcards
(93 cards)
What is cognitive bias
The influence of factors that shape how we interpret informant, weigh its relevance and ultimately decide upon a course of action or inaction
Cognitive bias plays a role in the ___- thinking and decisions making process
Critical
What term do psychologists use to describe the actual operating state of the human mind
Bounded rationality
Cognitive bias in the decision making process results in eight common traps. Four of them are 1. overconfidence bias, 2. sunk cost effect, 3. availability bias, 4. confirmation bias, name the other four
Anchoring bias
Illusory bias
Hindsight bias
Egocentrism
In terms of cognitive bias, what does sunk cost effect mean
Escalating the commitment to a course of action simply because of the cost of resource already invested, despite poorer performance
In terms of cognitive bias, what does availability bias mean
Placing too much emphasis on information already available versus information needed
Which cognitive bias is most prevalent
Confirmation bias
Which cognitive bias allows an initial reference point to distort estimates, even when the initial reference point is completely arbitrary
Anchoring bias
Which cognitive bias tends to jump to conclusions about the relationship between two variable when no correlation exists
Illusionary bias
What is hindsight bias
the tendency to judge past events as easily predictable when they weren’t foreseeable
Which cognitive bias occurs when we attribute e more credit to ourselves for the group or collaborative outcome than an outside unbiased party would
Egocentrism
As decision makers, what three techniques may airmen use to counter cognitive biases
After action reviews
Seeking unbiased outside expert input
Creating a decision environment that encourages candid dialogue and vigorous debate
Which of the three techniques AMN use to counter cognitive biases is thought to be the most effective method
Creating a decision environment that encourages candid dialogue and vigorous debate
How do mental frameworks and shortcut help simplify our understanding of a complex world
They help us process information quickly and efficiently
Mental frameworks contribute to cognitive bias T/F
True
Mental frameworks consist of our ___ about how things are related and work
Assumptions
How we frame a problem influences the decision we make. When is this effect particularly noticeable
When we frame a challenge as either a risk or an opportunity
What is the Prospect theory
The belief that framing a situation as a potential gain causes decision makers to act differently than framing the same situation as a potential loss
According to the Prospect theory, are people willing to take greater risks when faced with potential losses or when faced with potential gains
When faced with potential loses
At the org level, how are threats to our comfortable framework of assumptions often met
With rigid resistance
At the organizational level, how are changes seen as opportunities usually met
With flexible and adaptable approaches
When confronting change at the Org level, AMN are subject to their initial frameworks. How do those frameworks limit them
They Limit the information taken in, the willingness to assess information fairly and without bias, and ultimately restrict the solution sets that are created
What is the drawback when decision makers choose a course of actin based on intuition alone
It often means a whole series of alternatives are not considered or objectively analyzed
In decision making, what is intuition based upon
Previous experience and matching patterns from those experiences to cues picked up in the current environment