Class 6 - Decision-Making and Emotions Posting Flashcards
Improving Reward Effectiveness
- Link reward to performance
- Ensure rewards are relevant and valued
- Team rewards for interdependent jobs
- Beware of unintended consequences
- Make things fair (org justice and the components)
Habit and Identity
identity based: easier to keep, harder to break, habits become identity based through time through repetition
Decision making
The process of developing a commitment to some course of action/choice
Choice
Process
Commitment
The process of problem solving
Problem = gap between a current state and desired state
Rational Decision Making
How decisions “Should” be made
Consistent, value-maximizing choices
Problems with the 6-step Rational Thinking Method
- Lack of problem clarity
- Known options
- Clear preferences
- Constant preferences: problematic as they tend to change over time
- No time or cost constraints
- Max payoff
Actual Decision Making
Bounded rationality
Satisficing
Intuition
Judgement shortcuts
Bounded rationality
limitation on person’s ability to interpet, process and act on info
That could include: political, resource, satisficing, intuition, cognitive biases, emotions
Satisficing
identifying a solution isn’t good enough
first acceptable one NOT the optimal one
Intuition
Not rational but often not wrong
Quick decisions, distilled from experience
NOT guessing
Judgement Shortcuts
cognitive biases
dunning-kruger effect
sunk cost
prospect theory
framing
Cognitive Biases
perception vs reality
Dunning-Kruger Effect
low ability individuals think they are better than they are
need a certain level of expertise to then know how truly bad you are at something (at a level where you recognize you’re bad)
Sunk Costs
Pattern of behavior, continue to rationalize into an existing cost that gives out increasingly negative outcomes
Prospect Theory
Positive outcome: prefer a sure thing over a risk
Negative outcome: take a chance to prevent negative outcome
Framing
- about something is communicated in terms of gains earned (positive framing) or loss inferred (negative framing)
- informs how comfortable risk seeking/avoiding we are, whether we are willing to take a chance
Positive framing
Negative framing
Ethics
Broadly applied social standards for what is right or wrong in a particular situation, or a process for setting those standards
socially constructed, many situations are ethically grey
Moral Disengagement
Behave unethically without experiencing cognitive distress
8 types of Moral Disagreement
- Moral Justification: reframe as ethical
- Euphemistic labelling: sanitized with language -> appears benign
- Advantageous comparison: take a more difficult situation to compare to show “advantage”
- Displacement of responsibility: the attribution responsibility for one’s actions to authority figures who may have tacitly condoned or explicitly directed behaviour
- Diffusion of responsibility: disperse it AMONG A GROUP, in a social setting
- Distortion of consequences: minimizing the seriousness of the consequence “it’s not that bad”
- Dehumanization: framing victim as undeserving of essential human consideration
- Attribution of blame: blaming victims
Emotions
Short term, rapid changing, intense, discrete (targeted at something)
Mood
Medium-term, lasting, less extreme, not tied to a specific incident
Trait affect
Long-term, stable, general lens, PERSONALITY TRAIT
2 Affective traits
Positive affectivity: positive emotions, sees the world in a positive light
Negative affectivity: vice versa
Affective Traits at work
(+) : higher job satisfaction and performance, creativity, engage in more
Organizational citizenship behaviours (OCBs)
(-): vice versa, more CWB’s counterproductive work behavior
Affective Events Theory
Work Environment -> Work Events -> Personal Dispositions -> Emotional Reactions -> Job Satisfaction/ Performance
