Week 7: Decision Making, Creativity, Learning from Action

Question 1

Decision Making

Answer 1

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

Question 2

Rational Choice Paradigm

Answer 2

A deeply held perspective of decision making that people should - and typically do - make decisions based on pure logic and rationality

Question 3

Rational Choice Decision-Making Process

Answer 3

1. Identify problem or opportunity
2. Choose the best decision process
3. Develop alternative solutions
4. Choose the best alternative
5. Implement the selected alternative
6. Evaluate decision outcomes

Question 4

Bounded Rationality

Answer 4

Processing limited and imperfect information and satisficing rather than maximizing when choosing between alternatives

Question 5

Implicit Favorite

Answer 5

A preferred alternative that the decision maker uses repeatedly as a comparison

Question 6

Satisficing

Answer 6

Selecting a solution that is satisfactory or “good enough” rather than optimal or “the best”

Question 7

Intuition

Answer 7

The ability to know when a problem or opportunity exists and to select tue best course of action without conscious reasoning

Question 8

Scenario Planning

Answer 8

A systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those environments

Question 9

Escalation of Commitment

Answer 9

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