Decision
The choice made from 2 or more alternatives
Problem
Discrepancy between some current state of affairs and some desired state, requiring consideration of alternative courses of action
Oppurtunity
occurs when something unplanned happens, giving rise to new thoughts about new ways of proceeding
Rational Decision Making
Makes consistent, value-maximizing choices within specified constraints
Six Steps of rational decision-making model
- Define Problem
- Identify Criteria
- Allocate weights to criteria
- Develop alternatives
- Evaluate alternatives
- select the best alternative
What are the assumptions of the rational decision making model?
- problem clear and unambigious
- decision maker can identify all relevant criteria and available options
- criteria and alternatives can be ranked and weighted
- specific decision criteria is constant and assigned weights are stable
- no time or cost constraints so full info is available
- Choice alternative will yield the highest perceived value
How do individuals actually make decisions?
- bounded rationality
- satisficing
- intuition
What are some judgment shortcuts?
- Overconfidence Bias
- Anchoring Bias
- Confirmation Bias
- Availability Bias
- Escalation of Commitment
- Randomness Error
- Risk Aversion
- Hindsight Bias
What are the strengths of group decision making?
- more complete knowledge/info
- increased diversity of views
- generates higher quality decisions
- leads to increased acceptance of solution
What are the weaknesses of group decision making?
- time consuming
- conformity pressures in group
- discussion can be dominated by one/ few members
- decisions suffer from ambiguous responsibility
what are the 4 measures of effectiveness?
- Accuracy
- Speed
- Creativity
- Acceptance
Groupthink
Phenomenon in which the norm for consensus overrides the realistic appraisal for the alternative course of action
Groupshift
Phenomenon in which the initial positions of individual members of a group are exaggerated towards a more extreme position
Symptoms of groupthink
- illusion of invulnerability
- assumption of morality
- rationalized resistance
- peer pressure
- minimized doubt
- illusion of unanimity
How to minimize groupthink?
- monitor group size
- Encourage group leaders to play an impartial role
- appoint one member to play devil’s advocate
- stimulate active discussion of diverse views to encourage dissenting discussion and more objective evaluations
What causes groupshift?
- Discussion which creates familiarity among group members
- group discussion motivates individuals to take risk
- group diffuses responsibility
Group Decision making techniques
- interacting groups
- brainstorming
- nominal group technique
- electronic meetings
What is creativity?
process of creating products, ideas or procedures that are novel or original and are potentially relevant or useful to an organization
Who has the greatest creative potential?
intelligent, openness to experience, independent, self confidence, risk-taking, positive core self evaluation, low need for structure, persevere, tolerant of ambiguity
How does mood influence creativity?
positive mood helps
avoidance- oriented and active negative moods hinder
What organizational factors affect creativity?
Challenge, Freedom, Resources, Work-group features, Supervisory encouragement, Organizational support
What can hinder creativity?
expected evaluation, surveillance, External Motivators, Competition and constrained choice
What are the 4 criterion for making ethical decisions?
Utilitarian - greatest good for greatest number of people
Rights - consistent with fundamental liberties and freedoms (i.e those protected by charter of rights and freedoms) protects whistleblowers
Justice - impose and enforce rules fairly and impartially so there is an equitable distribution of benefits and costs
Care - decision that express care for protecting special relationships and individual has with others
What is entailed in the pre-conventional stage of moral development?
- following rules only when doing so is in your immediate interest
- sticking to rules to avoid physical punishment
