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Organizational Behaviour > Decision Making > Flashcards

Flashcards in Decision Making Deck (22)
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1

Rational Decision

Refers to choices that are consistent and value-maximizing within specified constraints.

2

Bounded Rationality

Limitations on one's ability to interpret, process and act on information.

3

Satisficing

To provide a solution that is both satisfactory and sufficient. It is also the identification of a good enough solution or the first acceptable solution rather than the optimal one.

4

Intuition or intuitive decision making

An unconscious process created out of a person's many experiences

5

Overconfidence Bias

An error in jugement that arises from being far too optimistic about one's own performance.

6

Anchoring Bias

A tendency to fixate on initial information from which one then fails to adequately adjust for subsequent information.

7

Confirmation bias

The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgements.

8

Availability bias

The tendency for people to base their judgements on information that is readily available to them rather than complete data.

9

Escalation of commitment

An increased commitment to a previous decision despite negative information.

10

Randomness error

The tendency for individuals to believe that they can predict the outcome of random events

11

Risk aversion

The tendency to prefer a sure gain of a moderate amount of risk over a riskier outcome, even if the riskier outcome might have a higher expected payoff.

12

Hindsight bias

The tendency to believe falsely, after an outcome of an event is actually known, that one could have accurately predicted that outcome.

13

Groupthink

A phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views.

14

Group shift

A phenomenon in which the initial positions of individual group members become exaggerated because of the interactions of the group.

15

Three-stage model of creativity

The proposition that creativity involves three stages : causes (creative potential and creative environement), creative behaviour, and creative outcomes
(innovation--> novelty and usefulness)

16

Innovation

Innovation brings about the novelty and the usefulness of a creative outcome.

17

Ethics

The study of moral values or principles that guide our behaviour and inform us wether actions are right or wrong.

18

Utilitarian criterion

A decision focused on outcomes or consequences that emphasizes the greatest good for the greatest number

19

Rights criterion

Any action against fundamental rights is not good.

20

Justice criterion

Any action against the law is not good. People in organizations are mainly focused with that criterion.

21

Care criterion

In a group people care for one another and have interpersonal relationships, which should be preserved at all costs. It is important for this criterion that people understand the value of a group.

22

Corporate social responsibility

An organization's responsibility to consider the impact of its decisions on society.