Chapter 7
Consensus
General agreement; group solidarity
Evaluation
Give it more time, change it slightly, Try Another Alternative, Start Over
Decision trees
Graph of decisions and their possible consequences, used to create a plan to reach a goal
Advantages of Group Decision Making
Greater pool of knowledge, Different Prospectives, Intullectual Stimulation, Better understanding of decision rationale, Deeper commitment to the decision
Ethics officers
Individuals trained in matters of ethics in the workplace, particularly about resolving ethical dilemmas
Value orientation
person focuses on either task and technical concerns or people and social concerns when making decisions.
The Dialect method
process of having two people or groups play opposing roles in a debate in order to better understand a proposal
Decision
A choice made from among available alternatives
Group think
A cohesive group's blind unwillingness to consider alternatives.
Disadvantages of Group Desison Making
A few people dominate or intimidate, Groupthink, Satisfacting, Goal Displacement
Project post-mortem
A review of recent decisions in order to identify possible future improvements
Preventing Groupthink
Allow Criticism, Allow other prospective, Reflect before entering a group decision
Machine learning
An extension of predictive analytics, occurs when systems or algorithms automatically improve themselves based on data patterns, experiences, and observations
Diagnosis
Analyzing the underlying causes
Know Thyself
Awareness of your style assists you in identifying your strengths and weaknesses as a decision maker and facilitates the potential for self-improvement.
Overconfidence bias
Bias in which people's subjective confidence in their decision making is greater than their objective accuracy
Confirmation bias
Biased way of thinking in which people seek information to support their point of view and discount data that do not support it
The Analytical Style
Careful Decision Makers Who Like Lots of Information and Alternative Choices
Predictive analytics
Category of data analysis that makes predictions about future outcomes based on historical data and analytics techniques
Autonomous devices
Collect data from situations to make calculations, define probabilities, and make reason-based decisions according to programmed goals
Cost.
Companies pay between $6,000 and more than $300,000 for custom AI software
The Conceptual Style
Decision Makers Who Rely on Intuition and Have a Long-Term Perspective
Problems
Difficulties that inhibit the achievement of goals
Minority dissent
Dissent that occurs when a minority in a group publicly opposes the beliefs, attitudes, ideas, procedures, or policies assumed by the majority of the group
Hubris
Extreme and inflated sense of pride, certainty, and confidence
Deal with Conflict
Knowledge of styles gives you an awareness of how people can take the same information yet arrive at different decisions by using a variety of decision-making strategies
Intuition
Making a choice without the use of conscious thought or logical inference
Sham participation
Occurs when powerless, but useful individuals are selected by leaders to rubber stamp decisions and work hard to implement them
Bounded rationality
One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints
Opportunities
Situations that present possibilities for exceeding existing goals
Heuristics
Strategies that simplify the process of making decisions
Decision-Making Style
Styles that reflect the combination of how an individual perceives and responds to information
Electronic brainstorming
Technique in which members of a group come together over a computer network to generate ideas and alternatives
Brainstorming
Technique used to help groups generate multiple ideas and alternatives for solving problems
Categorical thinking bias
Tendency of decision makers to classify people or information based on observed or inferred characteristics
The Behavioral Style
The Most People-Oriented Decision Makers
Artificial intelligence (AI)
The ability of a computer system to perform tasks that normally require human intelligence
AI Implementation
The most cited challenge to AI is implementation. Experts believe this is due to the newness of the technology and the low levels of experience and on-the-job learning.
Goal displacement
The primary goal is subsumed to a secondary goal
Decision making
The process of identifying and choosing alternative courses of action
Framing bias
The tendency of decision makers to be influenced by the way a situation or problem is presented to them
Hindsight bias
The tendency of people to view events as being more predictable than they really are
Representative bias
The tendency to generalize from a small sample or a single event
Anchoring and adjustment bias
The tendency to make decisions based on an initial figure
Availability bias
The use of information readily available from memory to make judgments
Data Issues
These challenges include access and integration.
Characteristics of group desison making
They are less efficient, Their size affects desison quality, They may be too confident, Knowledge counts
Sunk-cost bias
Way of thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon it; also called the sunk-cost fallacy
Escalation of commitment bias
When decision makers increase their commitment to a project despite negative information about it
Robotic process automation (RPA)
When robots act like a human inputting and extracting information
Influence Others
You can increase your ability to influence others by being aware of decision-making styles
The Directive Style
ction-Oriented Decision Makers Who Focus on Facts
Nonrational models of decision making
they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum