Chapter 7: Individual And Group Decision Making Flashcards Preview

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Flashcards in Chapter 7: Individual And Group Decision Making Deck (37)
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1
Q

Decision

A

Choice made from among available alternatives

2
Q

Decision making

A

The process of identifying alternative courses of action

3
Q

System 1: intuitive and largely unconscious thinking

A

System 1 operated automatically and quickly

It is our fast, automatic, intuitive, and unconscious mode

4
Q

System 2: analytical and conscious thinking

A

System 2 is out slow, deliberate, analytical, and effortful mode of reasoning

5
Q

Rational model of decision making

A

Also known as the classical model

Style fo decision making that explains how managers should make decisions

It assume managers will make logical decisions that will be the optimum in furthering the organizations best interests

6
Q

4 steps to rational decision making

A

1) identify the problem or opportunity
2) think up alternative solutions
3) evaluate alternatives and select a solution
4) implement and evaluate the solution chosen

7
Q

Problems

A

Difficulties that inhibit the achievement of goals

8
Q

Opportunities

A

Situations that present possibilities for exceeding existing goals

9
Q

Diagnosis

A

Analyzing the underlying causes

10
Q

Non rational models of decisions making

A

Model that explains how managers make decisions

They assume that decision making it nearly always uncertain and risky, making it difficult for managers to make optimum decisions

11
Q

Bounded rationality

A

The ability of decision makers to be rational is limited by numerous constraints

12
Q

Satisficing models

A

Managers seek alternatives until they find one that is satisfactory, not optimal

13
Q

Intuition

A

Making a choice without the use of conscious thought or logical inference

14
Q

Decision tress

A

Graph of decisions and their possible consequences, used to create a plan to reach a goal

15
Q

Seven implementation principles

A

1) treat your organization as an unfinished prototype
2) no brag, just facts
3) see yourself and organizations as outsiders do
4) evidence base management is not just for senior executives
5) like everything else, you still need to sell it
6) if all else fails, slow the spread of bad practice
7) The best diagnostic question, “what happens when people fail”

16
Q

Analytics

A

Term used for sophisticated forms of business data analysis, such as portfolio analysis or time series forecast

17
Q

3 key contributors towards analytics

A

Use of modelling
Multiple applications
Support from top management

18
Q

Predictive modelling

A

Data mining technique used to predict future behavior and anticipate the consequences of change

19
Q

Heuristsics

A

Strategies that simplify the process of making decisions

20
Q

Availability bias

A

Tendency of managers to use information readily available from memory to make judgements; tending to give more weight to recent events

21
Q

Representative bias

A

The tendency to generalize from a small sample or a single event

(Just because something happens once doesn’t mean it will happen again)

22
Q

Confirmation bias

A

Biased way of thinking in which people seek information that supports their point of view and discount data that doesn’t

“Weed is bad”, 6 million results on google

23
Q

Sunk-cost bias

A

Way did thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon

24
Q

Anchoring and adjustment bias

A

The tendency to make decisions based on an initial figure

25
Q

Overconfidence bias

A

Bias in which people’s subjective confidence in their decision making is greater than their objective accuracy

26
Q

The hindsight bias

A

The tendency of people to view events as being more predictable than they really are

27
Q

Framing bias

A

The tendency of decision makers to be influenced by the way a situation or problem is presented to them

28
Q

Escalation of commitment bias

A

When decision makers increase their commitment to a project despite negative information about it

29
Q

Advantages to groups

A

1) greater pool of knowledge
2) different perspectives
3) intellectual stimulation
4) better understanding of decision rationale
5) deeper commitment to the decision

30
Q

Disadvantages to groups

A

A few people dominate or intimidate

Groupthink

31
Q

Groupthink

A

Groups blind unwillingness to consider alternatives

Strive for animity opposed to a good decision

32
Q

Goal displacement

A

The primary goal is subsumed to a secondary goal

33
Q

Minority dissent

A

Dissent that occurs when a minority in a group publicly opposed the belief. attitudes, ideas, procedures or policies assumed by the majority of the group

34
Q

Consensus

A

Group agreement

35
Q

Devils advocacy

A

Taking the side of an unpopular point of view for the sake of argument

36
Q

Project post mortem

A

A review of recent decisions in order to identify possible future improvements

37
Q

5 key stakeholders

A
Shareholders 
Employees 
Customers 
Suppliers
Communities