Chapter 9: Learning and Decision-Making

Question 1

Learning

Answer 1

A relatively permanent change in an employee’s knowledge or skill that results from experience

• key difference between novices and experts
• impact on decision-making

Question 2

Decision-making

Answer 2

Process of generating and choosing from a set of alternatives to solve a problem
- more knowledge and skills more accurate and sound decisions

Question 3

Why do some employees learn to make decisions better than others?

Answer 3

Expertise: knowledge and skills that distinguish experts from novices

Question 4

Types of knowledge

Answer 4

Explicit: easily communicated and available to everyone
E.g. taught during training sessions
Tacit: only learnt through experience
E.g. intuition, skills, practical intelligence, mental modes
- know how to do it but hard to explain

Question 5

What are the 3 methods of learning?

Answer 5

1. Reinforcement
2. Observation
3. Experience

Question 6

Reinforcement

Answer 6

Learn by observing link between voluntary behaviour and the consequences that follow it

Question 7

4 contingencies of reinforcement

Answer 7

1. Positive: positive outcome follows DESIRED behaviour
   E.g. praise for desired behaviour - increased pay, promotions, recognition
2. Negative: unwanted outcome follows DESIRED behaviour
   E.g. getting yelled at when you don’t get to work on time so now you go to work on time
3. Punishment: unwanted outcome follows UNWANTED behaviour
   E.g. suspending an employee for always showing up late
4. Extinction: removal of a positive outcome/consequence following UNWANTED behaviour
   E.g. Removing attention when a child acts childish

Question 8

Schedules of Reinforcement (5)

Answer 8

1. Continous
2. Fixed Interval
3. Variable Interval
4. Fixed Ratio
5. Variable Ratio

Question 9

Continuous

Answer 9

• simplest schedule
• new learning acquired most rapidly
• impractical for most jobs
• short-lived

Question 10

Fixed interval or variable interval

Answer 10

Interval = time
Fixed-interval: reinforcement occurs at fixed time periods (average performance)
Variable-interval: reinforcement occurs at random periods of time (moderately high performance)

Question 11

Fixed ratio or variable ratio

Answer 11

** based on number of actual behaviours**
Fixed ratio: reinforcement following fixed number of behaviours (high performance)
Variable ratio: behaviours reinforced after varying number of them have been exhibited (very high)

Question 12

Observation

Answer 12

Social learning theory: argues people in organizations learn by observing others

Question 13

Steps of behaviour modelling

Answer 13

1. Employees observe actions of others
2. Employees must remember actions of model after they’re not present
3. Employees must have appropriate skills to reproduce actions
4. Employee must view the model receiving reinforcement of behaviour and then receive it themselves

Question 14

Goal Orientation

Answer 14

The activities and goals that people prioritize

Question 15

After goal orientation: 2 options

Answer 15

A. Learning orientation: focus on building competence

B. Performance orientation: focus on demonstrating competence

Question 16

After performance orientation: 2 options

Answer 16

A. Performance prove: demonstrate competence so others think favourably of them
B. Performance avoid: demonstrate competence so others won’t think poorly of them

Question 17

Methods of decision-making

Answer 17

Programmed: somewhat automatic decisions because decision maker’s knowledge allows them to recognize situation and course of action to be taken
- Crisis situation: change that results in an urgent problem that must be addressed immediately
Non-programmed decisions: decisions made when problem is new, complex or not recognized
- rational-decision making model can be used

Question 18

Rational-decision making model

Answer 18

Step-by-step approach to making decisions that is designed to maximize outcomes by examining all available alternatives

1. Determine criteria
2. Generate list of alternatives
3. Evaluate alternatives against criteria
4. Choose solution that maximizes value and results in best outcome
5. Implement solution
6. Evaluate solution

Question 19

Common reasons for problems in decision-making (4)

Answer 19

1. Limited info
2. Faulty perceptions
3. Faulty attributions
4. Escalation of commitment

Question 20

Problem #1: Limited Information

Answer 20

• people subject to bounded rationality
  Bounded rationality: notion that people do not have ability or resources to process all available info and alternatives when making a decision
  E.g. tend to pick 1st acceptable alternative

Question 21

Problem #2 Faulty perceptions

Answer 21

Selective perception: tendency for people to see their environment only as it affects them and as it is consistent with their experience

1. Projection bias
2. Stereotypes
3. Availability bias
4. Anchoring effect
5. Framing
6. Representative bias
7. Contrast bias
8. Recency effect
9. Ratio effect

Question 22

Projection bias

Answer 22

Made by decision makers that other others think, feel and act as they do
Social identity theory: people identify themselves according to the various groups to which they belong and judge others according to the groups they associate with

Question 23

Stereotype and Availability bias

Answer 23

Stereotype: assumptions made about others based on their social group membership
E.g. females aren’t good leaders
Availability bias: tendency for people to base judgements on info that is easier to recall

Question 24

Anchoring effect and Framing

Answer 24

Anchoring effect: tendency to rely too heavily or anchor one piece of info
Framing: tendency to make different decision based on how a question or situation is phrased

Question 25

Representative bias and Contrast Effect

Answer 25

Representative bias: tendency to assess likelihood of an event by comparing it to similar events and assuming will be similar Contrast effect: tendency to judge things continuously based on a reference near to them

Question 26

Recency effect and Ratio effect

Answer 26

Recency effect: weigh recent events more than earlier events Ratio effect: to judge same possibility of an unlikely event as lower when probability is presented in form of a ratio of smaller vs larger numbers

Question 27

Problem #3: Faulty Attributions

Answer 27

Process by which causes or motives assigned to explain people's behaviour Internal: blame individual factors - ability, motivation External: blame environmental factors - bad weather or traffic

Question 28

Errors in attributions

Answer 28

Fundamental attribution error: tendency for people to judge others' behaviours as due to internal factors Self-serving bias: attributing one's failure to external factors and success to internal factors

Question 29

Attribution decision framework

Answer 29

Consensus: did others act the same way under similar situations? Distinctiveness: does the person tend to act different in other circumstances? Consistency: does the person always do this when performing this task? Internal att - low consensus, high distinctiveness, low consistency External att - high consensus, high distinctiveness, low consistency

Question 30

Problem #4: Escalation of commitment

Answer 30

Decision to continue to follow a failing course of action | - Why? may wish to avoid looking incompetent or admit they made a mistake

Question 31

Learning effect on job performance? | Learning effect on organizational commitment?

Answer 31

``` Job performance: - moderate (+) - employees with more knowledge and skill have higher TP Organizational commitment: - weak (+) - " " higher affective commitment ```

Question 32

Training

Answer 32

Systematic effort by organizations to facilitate learning of job-related knowledge and behaviour Knowledge transfer: exchange of knowledge between employees

Question 33

Types of Knowledge transfer

Answer 33

Behaviour modelling training: previous Communities of practice: groups of employees who learn from one another through collaboration over extended period of time Transfer of training: when employees retain and demonstrate knowledge, skills and behaviours required for their job after training ends Climate for transfer: an organizational environment that supports the use of new skills