Evidence Based Decision Making Flashcards Preview

MGMT2003 > Evidence Based Decision Making > Flashcards

Flashcards in Evidence Based Decision Making Deck (24)
Loading flashcards...

What are the decision making models?

* Economic Choice (Rational Choice)
* Bounded Rationality


What is the rational choice decision making model?

- Decision maker is economic person whose preferences are aligned with organisational objectives
- Decision maker will make the optimal choice that will maximise their utility
- Perfect information about all alternative and corresponding outcomes
- Decision maker has the capacity to estimate the expected value of each alternative


What is the bounded rationality decision making model?

- It is not possible for a decision maker to exploit all alternative in achieving organisational objectives given cognitive limitations
- It is necessary to make the act of choice a rational one based on the object and an alternative that promises to meet the objective, a satisfying decision


What is Hambrick and Mason's model of strategic choice under conditions of bounded rationality

Managerial perceptions that determine strategic choices are outcomes of selective perception, interpretation and a limited field of vision which become combined with the cognitive base and values of the decision maker


What are the perceptual/judgement errors?

* Recency/availabilty heuristic
* Hindsight
- Over-generalisation
* Attribution
- Correlation vs Causation
* Halo
- Stereotyping
* Sunk cost
- Illusion of manageability


What is the recency/availability heuristic perceptual/judgement error?

- Not looking back far enough
- Easier to get the latest info
- Opposite - latency


What is the hindsight perceptual/judgement error?

Seeing past events as having been predictable when they were not


What is the attribution perceptual/judgement error?

Only certain factors considered - others ignored


What is the halo perceptual/judgement error?

Positive feelings in one area cause ambiguous or neutral traits to be viewed positively


How are perceptual/judgement errors best avoided?

- Awareness of cognitive limitations and bias
- Ongoing education in the scientific method - on reliability and validity


In general what is reliability?

- The consistency of measurement from one test/instrument to another
- Reliability is a function of methods
- More applied to quantitative research
- Qualitative research instead attempts to establish the rigour of the research; focus on soundness and dependability


In general what is validity and what are the different types?

- The appropriateness of our definition and measure
- Face validity
- Content validity
- Criterion validity
- Concurent validity
- Predictive validity
- Convergent validity
- Discriminant validity
- Construct validity


What is face validity?

Face validity - A scale’s content logically appears to reflect what was intended to be measured


What is content validity?

Content validity - The degree to which a measure covers the bredth of the domain of interest


What is criterion validity?

- Criterion validity - The ability of a measure to correlate with other standard measures of similar constructs or established criteria i.e. the practicality of the measure, does it work in practice

- Concurent validity - if the new measure is taken at the same time as the criterion measure and is shown to be valid
- Predictive validity - if the new measure predicts a future event


What is convergent validity?

Convergent validity - Concepts that should be related to one another are in fact related; highly reliable scales contain convergent validity


What is discriminant validity?

Discriminant validity - Represents the uniqueness or distinctiveness of a measure; a scale should not correlate too highly with a measure of a different construct


What is construct validity?

Construct validity - Exists when a measure reliably measures and trigly represents a unique concept; consists of all other validity


How do reliability and validity affect our understanding of a phenomenon?

- Without ascertaining the validity and reliability, hypothesis cannot be tested
- Without hypothesis testing, the theory cannot be verified or validated
- Without a theory we cannot understand or explain a phenomenon


What is triangulation?

- Studying phenomenon under investigation from more than one perspective
- Theoretical or methodical


What is EBM?

The conscientious, explicit and judicious use of valid and reliable evidence or knowledge in making managerial decisions


How is EBM practiced?

- Demand validate and verifiable empirical evidence
- Interrogate logic and assumptions
- Interrogate sampling
- Continous learning
- Experimentation & pilot studies
- Decisions have to be carefully implemented


What are Rousseau's types of evidence?

- Big E evidence
- Generalisable and nomothetic and derived from the scientific method
- Derived predominantly from quantitative research methods such as experiments and surveys

- Little e evidence
- Organisation specific
- Idiographic
- Derived from small samples of data including qualitative data from interviews


What are the main challenges of EBM?

- Social networks and organisational culture are critical to the practice of EBM
- Only as good as its implementation and calibration (feedback process and allowance for redesign)
- Managers need access to information-sharing community of experts