Chapter 9 Flashcards
What is decision-making?
Decision-Making: The process of choosing a course of action to deal with a problem/opportunity.
What is the classical/rational decision-making process?
Rational Decision Model:
- Recognize and define the problem/opportunity.
- Identify and analyze alternative courses of action.
- Choose a preferred course of action.
- Implement the preferred course of action.
- Evaluate results and follow-up as necessary.
What is lack-of-participation error?
Lack-of-Participation Error: The error committed when people central to the execution of a course of action are excluded from the decision-making process which arrived at said action.
What is the decision to decide? What questions are asked when making this decision?
Decision to Decide: Deciding whether something is worth the effort of analyzing and acting upon.
- What really matters?
- Might the problem resolve itself?
- Is this my or our problem?
- Will the time I spend make a difference?
What is ethics?
Ethics: The philosophical study of morality.
What is a moral problem?
Moral Problem: An issue which poses ethical consequences for the decision maker or others.
What is a moral dilemma?
Moral Dilemma: A situation in which one must choose between alternatives which all have ethical consequences.
What are Cavanagh’s Ethics Criteria Double Checks?
Ethics Criteria Questions/Double Checks (Gerald Cavanagh):
- Utility: Does the decision satisfy all stakeholders?
- Rights: Does the decision respect the rights and duties of everyone?
- Justice: Is the decision just?
- Caring: Is the decision consistent with my responsibilities to care?
What are some ethics spotlight questions?
Ethics Spotlight Questions:
- How would I feel if my family knew?
- How would I feel if it were posted online?
- What would a person I consider ethical do in my stead?
What is a decision environment? What are the types of decision environments?
Decision Environments: Describe the extent to which consequences of alternate courses of action can be known.
- Certain Environments: Consequences for all alternatives can be predicted perfectly when making a decision.
- Uncertain Environments: Consequences for all alternatives cannot be predicted, and no can probabilities be assigned.
- Risk Environments: Possible consequences for all alternatives can be predicted with corresponding probabilities. Theses predictions may be accurate or inaccurate.
What is the difference between programmed and non-programmed decisions?
Decision Types:
- Programmed Decisions: Implement solutions which have been determined through experience. They should be used to respond to standard, recurring, or well-known problems (certain environments or accurate probability risk environments).
- Non-Programmed Decisions: Implement innovative solutions to unique problems or opportunities (uncertain environment, imprecise risk environment).
What problems can occur from decision environment and type mismatches?
Decision Environment and Type Mismatches:
- Unprogrammed decisions in certain and risk environments may create inefficiency.
- Programmed decisions in uncertain environments may fail to solve the target problem.
What is risk management? What are the various types of risk?
Risk Management: Anticipating risks and factoring them into decision making.
- Strategic Risks: Threats to overall business success.
- Operational Risks: Threats inherent to the operations of the business in question.
- Reputation Risks: Threats to brand/reputation.
What is a crisis decision? How does one deal with these decisions?
Crisis Decision: A non-programmed decision to respond to extreme circumstances. Some tips for making these decisions:
- Take the time to understand the environment.
- Attack as quickly as possible.
- Know when to back off and wait for a better opportunity.
- Understand the danger brought by unexplored situations.
- Value the skeptics in the group.
- When things go wrong and no one seems to care, you may have to start a crisis to draw attention.
What are decision-making models? Describe the two put forth in organizational behaviour.
Decision-Making Models: Models which describe how decisions are made and implemented.
- Classical Decision-Making Model: A model emphasizing rationality. Assumes a clearly defined problem and the ability to analyze all alternatives and know their exact consequences. Yields an optimal decision.
- Behavioural Decision-Making Model: A model emphasizing bounded rationality. Assumes problems of varying clarity and limited knowledge of alternatives and consequences. Yield a satisficing decision.
