What is rational choice decision-making?
A process that uses logic and full information to choose the alternative with the highest expected value
What are two key elements of rational choice?
- Rational choice formula
- Systematic decision process.
What are the basic steps in rational decision process?
- Identify problem.
- Identify alternatives.
- Evaluate alternatives.
- Choose
- Implement.
- Evaluate.
What are five problem, identification challenges
- solution focus problems.
- Decisive leadership pressure.
- Stakeholder farming.
4 perceptual defence - Mental models.
What is anchoring an adjustment bias?
Reign too, heavily on an initial piece of information (anchor)
What is availability heuristic
Estimating probability based on how easily something comes to mind
What is the representatives heuristic?
Judging probability based on similarity rather than statistical accuracy
What is satisficing?
Choosing the first “good enough”alternative instead of the best one
What happens when too many choices are present
People may avoid making a decision
How do emotions affect decision-making?
They say preferences before conscious reasoning, and influence evaluations
What does intuitive decision-making?
Knowing what to do without conscious reasoning based on emotional signals or experience
What is escalation of commitment?
Continuing to invest in a failing decision
What causes escalation of commitment?
Self justification
Self-enhancement
Prospect theory
Sunk costs
How can we improve decision evaluation?
Change decision maker
Create stop loss rules
Seek feedback
Adjust mindset
What are the four stages of the creative process?
Preparation
Incubation
Illumination
Verification
What workplace conditions support creativity
Autonomy, learning orientation resources, communication, supportive leadership
What is designed thinking?
A human centred solution, focused, creative process, using empathy and experimentation
What are the four design thinking rules?
Human rule
Ambiguity rule
Redesign rule
Tangible rule
What is employee involvement?
4 levels
Employees participating in influencing workplace decisions
(Low, medium low, medium high, high)
What are four contingencies affecting involvement level?
Decision structure
Source of knowledge
Need for commitment
Risk of conflict
