Topic 12: Decision Making & Creativity Flashcards Preview

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Flashcards in Topic 12: Decision Making & Creativity Deck (25):

What is decision making?

A conscious process of making choices among alternatives with the intention of moving towards some desired state of affairs.


What does it mean for a decision to be programmed?

  • When there is a standard procedure to follow to select a solution
  • No alternatives are considered


How can we categorize decisions?

  • Choice: choose between well defined alternatives.
  • Evaluation: decision maker focuses on each alternative to determine it's specific value
  • Construction: decision maker assembles components of alternatives -> i.e. makes their own solution.


What is the rational model of decision making?

  • Made by herbet simon.


What are the assumptions of the Rational Model?

  • All availiable alternatives are known.
  • All possible consequences are known.
  • Information required costs nothing to gather.
  • Decision maker is totally rational.


What is the behavioral model?

  1. Problem recognition.
  2. Criteria for satisficing alternative.
  3. Evaluate alternatives as they arise.
  4. Choose first satisfactory alternative.
  5. Implement chosen alternative.


What is Satisficing?

  • Accepting a solution that is 'good enoough'
  • A heuristic used for decision making.



What are the assumptions of the behavioral model?

Real decision makers constrained by "Bounded Rationality"

They cope with it by "Satisficing"


What are the implications of bounded rationality?

  • All possibile alternatives and consequences cannot be generated.
  • The definition of the situation, and the avaliable information ar eincomplete and inadequate.
  • The decision may be based on criteria other then outcome maximisation. e.g. Moral considerations.


Show the Rational Choice Decision Process.

A wheel around:

  1. Identify problem or opportunity.
  2. Choose the best decision process.
  3. Discover or develop possible choices.
  4. Select the choice with the highest value.
  5. Implement the selected choice.
  6. Evaluate the selected choice.


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Why do we miss problems and opportunities?

  • Stakeholder framing: Constructed realities.
  • Mental models: e.g. cognitive biases.
  • Decisive leadership: leaders are too decisive.
  • Solution-focused problems: defining problem in terms of solution.
  • Perceptual defense: ignoring information that threatens self-image.


Why do we have trouble choosing solutions?

  • Problems with goals
  • Problems with information processing
  • Problems with maximising


What problems with our goals can cause us to choose solutions incorrectly?

  • They can be too ambiguous, subjective or confusing
  • Our decisions can be influenced by our own personal goals.


What about information processing can cause us trouble when we must choose between solutions?

  • Selective attention: Screens out important information.
  • Liminted information processing capacity: Limited search for alternatives and information about them.
  • Sequential evaluation of alternatives against implicit favourate.
  • Judgement heuristics that bias judgement: e.g. Anchoring and adjustement, avaliability, representativeness


What problems can there be with our 'maximisation' that give us trouble with we must pick between solutions?

  • Satisficing: Selecting good enough instead of maximising.


What is escalation of commitment?

The tendency to repeat an apparently bad decision or allocate more resources to a failing course of action.


What are the causes of escalating commitment?

  • Self justification:
    • Persistance shows confidence in their decisions
    • Saving face
  • Prospect Theory: losses are more important then gains, more willing to take risks to avoid losses.
  • Perceptual blinders: Perceptual defense screening out negative information to protect self-esteem.
  • Closing costs: High or unkown costs of ending a project.


How can the escalation of commitment be reduced?

  • Set targets and milestones with plans of action for failure.
  • Reduce ego-involvement of decisions makers. e.g. reduced penalities for mid-term failure.
  • Different people make initial and continuance decisions.
  • Frequent feedback of costs, target completion dates and chagnes to outcome projections.


How can managers fail at implementing decisions? How can this be fixed?

  • Fail to ensrure people understand what needs to be done.
    • Involve implementors in decision making.
  • Fail to ensure acceptance and motivation for action.
    • Involve implementors in decision making and clearly link pay-offs to implementation.
  • Fail to provite all resources for action
    • Include accountability of management for successful implementation.


How can imployees be involved in firm decisions?

  • Formal: 
    • High involvement work systems (SDWT)
    • Work councils and committees.
  • Informal:
    • ​Walk around management.
    • Open book management.
    • Open door policy.
  • Contingent:
    • ​Vroom - Yetton - Jago Model.


What are Vroom and Yetton's leadership and decision making methods?

  • AI: Autocratic, no input from subordinates
  • AII: Autocratic, but gathers information from subordinates.
  • CI: Consultative, discusses individually with subordinates.
  • CII: Consultative, discusses with subordinates as groups
  • GII: Dicision made by group and accepted by leader. (e.g. self directed work teams.)


What is the garbage can model?

Four streams of events;

  • Problems
  • Solutions
  • Participants
  • Choice opportunites

The interactions between them are random.


What is the creative process model?

  1. Preperation
  2. Incubation
  3. Insight
  4. Verification


What personal characteristics feed into the Creative Process Model?

  • Persistance.
  • Relevant knowledge and experience.
  • Inventive thinking style.
  • Intellectual ability.


What are the characteristics of a creative work environment in the Creative Process Model?

  • Intelligence gathering.
  • Time.
  • Resources.
  • Making associations.
  • Cross-pollination.
  • Redefining problem
  • Autonomy to test and try.
  • Freedom to make mistakes.

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