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MGT 3023 > Decision Making > Flashcards

Decision Making Flashcards

1
Q

Define decision making

A

-choosing one alternative from several

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2
Q

What are some example of decisions in organizations?

A
  • employee selection
  • performance appraisal
  • leave vs. stay
  • layovers
  • strategic planning
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3
Q

What is a programmed decision?

A
  • decision that occurs often enough for a decision rule to be developed
  • provide guidelines regarding which alternative to choose based on the situation
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4
Q

What is a non programmed decision?

A

-decision that does not occur frequently and for which there is no established rule

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5
Q

What are the three approaches to explaining how people make decisions?

A

-rational, behavioral, integrated

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6
Q

Describe the rational approach to DM.

A
  • always follow a systematic, step-by-step process when making decisions
  • are dedicated to making logical choices that make most sense economically
  • always have complete information
  • are entirely objective
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7
Q

Describe the steps in rational DM.

A

-state the goal, identify the problem, deterimine the decision type, implement the plan, measure the outcomes.

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8
Q

Describe the behavioral approach to DM

A
  • decision making is not always rational
  • not a prescriptive approach
  • describes how decisions are actually made rather than recommends how they should be made.
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9
Q

Describe the administrative model in behavioral approach

A

-decisions are typically made with bounded rationality rather than perfect rationality.

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10
Q

What is used when making decisions with bounded rationality?

A

rules of them

  • suboptimizing
  • satisficing
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11
Q

what is risk aversion?

A

-decision makers are risk-averse if they prefer a sure thing to an uncertain outcome.

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12
Q

What is subjective utilitie?

A

1k to 2k subjective utility is greater than 100k to 101k.

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13
Q

Describe escalation of commitment.

A
  • also known as sunk costs effects

- persisting in a failing activity because of previously invested time, effort or money.

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14
Q

Describe other behaviorla tendenceies in DM

A

-some expressions of probability are more attractive.

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15
Q

What is drawing from a bowl of more beans an example of ?

A

-ambiguity aversion.

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16
Q

Why does amibuity aversion occur

A

-people tend to avoid ambiguities.

17
Q

Why doe it occur?

A
  • people tend to verestimate the probabilities of undesired outcomes.
  • don’t have missing info in your job application
18
Q

Describe temporal discounting.

A

-people tend to devalue consequences of the outcomes that are delayed as opposed to proximal outcomes.

19
Q

Show an example between temporal discounting.

A

-tend to discount both future gains and losses.

20
Q

What is a heuristic?

A

-cognitive shortcut that allow making faster decisions.

21
Q

Describe representativeness heuristic.

A
  • making judgements based on the degree to which a siuation resembles another situation.
  • hire applicant that has similar life history.
22
Q

Describe availability heuristic.

A

-making decisions using information that is easily available in memory.

23
Q

What is fundamental attribution error?

A

-attribute other’s poor performance to internal causes and their own poor performance to external causes.

24
Q

What is confirmation bias?

A

-taking into account information confirming their expectations and ignoring disconfirming evidence.

25
Q

Describe the integrated approach to DM.

A

-Decisions makers use a conbination of rational and behavioral approacehs because they do gather and analyze information but are not always methodical.

26
Q

Describe Evidence based managment.

A

-EBM: decisions in organizations should be made based on the best theory and data available instead of “untested but strongly-held beliefs”.

27
Q

Describe EBM.

A

-rational, prescriptive.

28
Q

EBM guidelines for effective DM

A
  • build culture where people are encourage to tell the turth and challenge the accepted practices.
  • be committed to “fact-based” decisions
  • treat organization as an unfinished prototype
  • look for risks and drawbacks in what people recommend.
  • avoid basing decisions on untested beliefs.
29
Q

What are attributions?

A

-people make inferences about causes of others’ behaviors.

30
Q

What is consensus?

A

-across people: is employee’s behavior the same as his or her peer’s behavior.

31
Q

What is distinctiveness?

A

-across tasks or situations: does this employee behave the same way in other siutaitons.

32
Q

What is consistency?

A

-across time: has this employee behaved the same way in similar situations in past.

33
Q

What information cues lead to internal attributions?

A

low consensus, low distintiveness, high consistency.

34
Q

What information cues lead to external attributions?

A

-high consensus, high distintiveness, low consistency.

MGT 3023 (11 decks)

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