MGT-585 Flashcards
(24 cards)
Define decision making
Increasing effectiveness in decision making is…
An important part of maximizing effectiveness at work
What are the two basic types of decision?
Programmed and Nonprogrammed
What is decision rule?
The automated response that develops when programmed decisions are straight-forward and happened frequently.
What are the three categories of decisions?
Strategic decisions
Tactical decisions
Organizational decisions
Define strategic decisions
Decisions that are made to set the course of an organization; High-level-CEO
Define tactical decisions
Decisions about how things will get done; Manager-level
Define organizational decisions
Decisions employees make each day to make the organization function; Front-line employees
Name the ways of making decision models
Rational Decision-Making Model
Bounded Rationality Model
Intuitive Decision-Making Model
Making Creative Decisions
Define rational decision-making model
A series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice
Define bounded rationality model
Individuals knowingly limit their options to a manageable set and choose the first acceptable alternative
Define intuitive decision-making model
Decisions are based on past experiences and gut instincts
Define making creative decisions model
Using creativity to generate ideas that are original, fluent, and flexible
Name the steps to rational decision-making model
- Identify the problem
- Establish decision criteria
- Weigh decision criteria
- Generate alternatives
- Evaluate the alternatives
- Choose the best alternative
- Implement the decision
- Evaluate the decision
What is the formula for the bounded rationality model
Individuals knowingly limit their options and choose the best alternative without conducting an exhaustive search for alternatives
+
Satisficing may occur which refers to accepting the first alternative that meets minimum criteria
=
A “good enough” decision is made
Name 5 faulty decision making
Overconfidence bias
Hindsight bias
anchoring bias
Framing bias
Escalation of commitment
What are the two opposite biases and describe them
Overconfidence bias: Overestimating the ability to predict future events.
Hindsight bias: Looking backward in time, mistakes made seem obvious after they have already occurred. May cause an individual to incorrectly believe in their ability to predict events.
Escalation of commitment
Continuing on a failing course of action after information reveals this may be a poor path to follow (Sunken Costs Fallacy)
It is driven by an individual’s desire for consistency and the belief one has already “invested” in this course of action.
The intention is to avoid admitting a mistake and recover perceived losses.
Steps for assessing ethical concerns
- Is this decision fair?
- Will I fell better or worse about myself after I make this decision?
3.Does this decision break any organizational rules? - Does this decision break any laws?
- How would I feel if this decision was broadcast on the news?
Define leadership
Leadership is the act of influencing others to work toward a goal
Define formal leaders
Formal leaders hold a position of authority and may utilize the power that comes from their position, as well as their personal power to influence others.
Define informal leaders
Informal leaders are without a formal position of authority within the organization but demonstrate leadership by influencing others through personal forms of power.
Trait approaches to leadership
Researchers tried to identify a set of traits that distinguished leaders from non-leaders.
The traits could be associated with personality, physical attributes, and psychological attributes
Big 5 Personality Traits
Openness - being curious, original, intellectual, creative, and open to new ideas.
Conscientiousness - Being organized, systematic, punctual, achievement oriented, and dependable
Extraversion - Being outgoing, talkative, sociable, and enjoying social situations - Related to leaders emergence and effectiveness
Agreeableness - Being affable, tolerant, sensitive, trusting, king, and warm - less likely to be perceived as leaders
Neuroticism - Being anxious, irritable, temperamental, and moody
