Decision Making Flashcards
(20 cards)
What is decision-making?
The process of making choices from among several options.
What does decision-making theory suggest about decision makers?
Decision makers are objective, have complete information, and consider all possible alternatives and their consequences.
What is the rational economic model in decision-making?
A model that assumes decision-making is a rational process consisting of steps to enhance the probability of attaining a desired outcome.
What are prescriptive models in decision-making?
Models that recommend how individuals should behave to achieve a desired outcome.
Name three labels for prescriptive models of decision-making.
- Decision trees
- Program evaluation and review technique (PERT)
- Critical path method
What are the five decision styles in Vroom & Yetton’s model?
- Autocratic I
- Autocratic II
- Consultative I
- Consultative II
- Group
What factors determine the level of subordinate participation in Vroom & Yetton’s model?
- Decision significance
- Importance of commitment
- Leader expertise
- Likelihood of commitment
- Group support for goals
- Group expertise
What do explanatory models of decision-making focus on?
They look at what decisions were made and aim to provide an explanation of how they occurred.
What is the Heuristics & Biases model in decision-making?
It involves choice and thought, suggesting excessive information can overload and delay decision-making.
What are the three most common biases in decision-making?
- The representative bias
- The anchor and adjustment bias
- The availability bias
What is group decision-making often assumed to be better than?
Individual decision-making.
List advantages of group decision-making.
- Greater pool of knowledge and information
- Can generate more alternatives
- Can use multiple perspectives
- Permit the specialisation of labour
- Generate a feeling of ownership and support of the decision through participation
What are the disadvantages of group decision-making?
- Groups work more slowly
- Disagreements can create conflict
- Some participants may feel intimidated resulting in pseudo involvement
What is group polarisation?
Occurs when individuals in a group take a more extreme decision than their average stance after discussion.
What psychological theories explain group polarisation?
- Social comparison theory
- Persuasive arguments theory
What is ‘escalation of commitment’?
An increased commitment to a previously made decision despite negative information suggesting otherwise.
What does research suggest about groups and escalation of commitment?
Groups escalate in commitment much more than individuals.
What is the purpose of brainstorming in group decision-making?
To produce creative new ideas.
What are some obstacles to effective brainstorming?
- Listening to others’ ideas may lead to one track thinking
- Allows only one person to speak at a time
- Competing verbal contributions may cause individuals to hold back ideas
- Time limits may affect productivity
True or False: Brainstorming consistently improves group decision-making performance.
False.
