Chapter 11 Organizational Behavior

delphi technique

A group process that generates anonymous ideas or judgments from physically dispersed experts in multiple rounds of brainstorming

holistic hunch

A judgment based on the subconscious integration of information stored in memory form of intuition in the intuitive process

groupthink

A mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when members' strivings for unanimity override their motivation to realistically appraise alternative courses of action

cohesiveness

A sense of "weness" that tends to override individual differences and motives; groupthink is often driven by high levels of cohesiveness

opportunity

A situation in which results that exceed goals and expectations are possible

True or false: According to Herbert Simon, perfect rationality is possible and regularly used by people when they have to make decisions in complex situations.

False

True or false: An assumption of the nonrational decision making models is that managers possess all of the information needed to make optimal decisions.

False

creative performance behaviors (4)

Four key behaviors that drive the production of creative outcomes 1. problem formulation/definition 2. preparation/information gathering 3. idea generation 4. Idea evaluation/validation Drivers of CPB - personal factors - situation factors

inherent morality

Ignores ethical implications

System 1

Intuitive and largely unconscious thought cons: may jump to conclusions that may or may not accurate; minimal consideration of long term implications of our decisions

True or False: It is suspected that judgmental heuristics are partly to blame for inaccurate diagnoses and treatment by physicians and other health care professionals because they don't have the time to consider all of a patient's symptoms

True

True or false: People's occupations and personality types influence their decision-making styles.

True

True or False: Evidence should never be used to make a decision, only to inform or support one

False

True or False: Experiencing boredom inhibits the creativity process

False

True or False: In the anchoring bias, the decision maker tends to assess the likelihood of an event based on impressions of similar events.

False

True or False: The rational model of decision making explains how managers actually make decisions

False

A group that is comfortable with minority dissent is more likely to:

- experience job satisfaction - relate positively to group participation

How can artificial intelligence (AI) help managers enhance business operations?

- gaining insight through data analysis - managing customer communications - automating processes

Research indicates that most managers have multiple decision-making styles and that those styles are based on:

- gender - age - nationality

What are the disadvantages of using intuition when making decisions?

- it has the same biases as rational decision making - it may be difficult to convince others of its feasibility

What are the advantages of using intuition when making decisions?

- it is useful when resources are limited - it accelerates the decision-making process

seven rules for brainstorming

1. Defer judgement 2. Build on the ideas of others 3. Encourage wild ideas 4. Go for quantity over quality 5. Be visual 6. Stay focused on the topic 7. One conversation at a time

techniques for preventing groupthink

1. Every member of the group should be assigned the role of critical evaluator. This role requires the active voicing of objections and doubts. 2. Top-level executives should not use policy committees to rubber-stamp decisions that have already been made. 3. Different groups with different leaders should explore the same policy questions. 4. Managers should encourage subgroup debates and bring in outside experts to introduce fresh perspectives. 5. Someone should be given the role of devil's advocate when discussing major alternatives. This person tries to uncover every conceivable negative factor. 6. Once a consensus has been reached, everyone should be encouraged to rethink his/her position to check for flaws.

4 stages of rational decision making

1. identify the problem or opportunity (determining actual vs desirable) 2. generate alternative solutions (both obvious and creative) 3. evaluate alternatives and select a solution (ethics, feasibility, and effectiveness) 4. implement and evaluate the solution chosen

8 symptoms of groupthink

1. illusions of invulnerability 2. illusions of group morality 3. illusions of unamity 4. rationalization 5. stereotyping the enemy (underestimation) 6. self-censorship 7. peer pressure 8. mind guards *These symptoms are often evident in student project teams*

practical considerations in decision making

1. routine and frequency 2. time constraints 3. information and communication

3 decision making blunders that research revealed managers struggled with during brainstorming

1. rushing to judgement 2. selecting readily available ideas or solutions 3. making poor allocation of resources to study alternate solutions

automated experience

A choice based on a familiar situation and a partially subconscious application of learned information related to it

artificial intelligence (AI)

A form of computing that allows machines to perform cognitive functions

expertise

An individual's combined explicit knowledge (Information that can easily be put into words) and tacit knowledge (Information we gain through experience that is difficult to express and formalize)

System 2

Analytical and conscious thought cons: gets involved only when there's something system 1 cant answer; time consuming

invulnerability

Breeds excessive optimism and risk taking

judgmental heuristics

Cognitive shortcuts or biases that are used to simplify the process of making decisions

decision support systems (DSS)

Computer-based interactive systems that help decision makers to use data and models to solve unstructured problems

satisficing

Consists of choosing a solution that meets some minimum qualifications and thus is "good enough,"

intuition

Consists of judgments, insights, or decisions that come to mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues

decision making

Entails identifying and choosing from among alternate solutions that lead to a desired state of affairs

nonrational models of decision making

Explain how managers actually make decisions

rational model of decision making and benefits

Explains how managers should make decisions. assumes managers are completely objective and possess all the information for their decisions. benefits of trying to follow a rational process: quality, transparency, and responsibility

representativeness bias

Leads us to look for information that supports previously formed stereotypes

anchoring bias

Occurs when decision makers are influenced by the first information they receive about a decision, even if it is irrelevant

minority dissent

Occurs when group members feel comfortable disagreeing with other group members

hindsight bias

Occurs when knowledge of an outcome influences our belief about the probability that we could have predicted the outcome earlier

goal displacement

Occurs when the primary goal is overridden by a secondary goal

What is it called when people solve problems by producing the best possible solution based on a set of highly desirable conditions, like having complete information and abundant resources?

Optimizing

confirmation bias

Pertains to how we selectively gather information - subconsciously decides something without investing why its right decision - only looks at sources supporting your decision not challenging it

Which of the following is one of the assumptions underlying nonrational models of decision making?

Rational decision making is a struggle.

framing bias

Relates to the manner in which a question is posed or framed. It leads us to change the way we interpret alternatives

high-commitment work systems

Rely on selective hiring, comprehensive training, comparatively high pay, pay contingent on performance, and good benefits

bounded rationality

Represents the notion that decision makers are "bounded" or restricted by a variety of constraints when making decisions

overconfidence bias

Results in overestimating our skills relative to those of others and overestimating the accuracy of our predictions

optimizing

Solving problems by producing the best possible solution based on a set of highly desirable conditions

creative outcome effectiveness

The joint novelty and usefulness (quality) of a product or service as judged by others

evidence-based decision making

The process of conscientiously using the best available data and evidence when making managerial decisions

creativity

The process of producing new and useful ideas concerning products, services, processes, and procedures

escalation of commitment bias + recommendations for reduction

The tendency to hold to an ineffective course of action even when it is unlikely the bad situation can be reversed recommendations for reduction: - set minimum targets for performance and have decision makers compare their performance against these targets - regularly rotate managers in key positions throughout a project - encourage decision makers to become less ego-involved with a project - make decision makers aware of the cost of persistence

big data

The vast quantity of data available for decision making

decision-making style

The way an individual perceives and comprehends stimuli and the general manner in which he or she chooses to respond to such information

consensus (in decision making)

When all members can say they either agree with the decision or have had their 'day in court' and were unable to convince the others of their viewpoint. In the final analysis, everyone agrees to support the outcome

directive style of decision making

action-oriented decision makers who focus on facts

advantages and disadvantages of group decision making

advantages: - greater pool of knowledge - different approaches to problems - greater commitment to decision - better understanding of decision rationale - more visible role modeling disadvantages - social pressure - a few dominant participants - goal displacement - group think

electronic brainstorming (brainwriting)

allows participants to submit their ideas and alternatives over the internet

The tendency to base decisions on information that is recent and easily recalled from memory is:

availability bias

An individual who enjoys working with others and enjoys social interactions in which opinions are openly exchanged exhibits which decision-making style?

behavioral

How do the news media influence availability bias?

by emphasizing unusual events

analytical style of decision making

careful decision makers who like lots of information and alternative choices

Julie takes a broad perspective to problem solving and likes to consider many options and future possibilities. She has a long-term perspective and relies heavily on intuition and discussions with others, and is good at finding creative solutions to problems. Julie has a(n) ________ style

conceptual

In the _________ bias, a decision maker subconsciously decides something even before investigating, and then seeks information that supports the decision.

confirmation

What is it called when a decision maker recognizes information that supports a decision, while ignoring contracting information?

confirmation bias

A(an) _______ tree is a graphical representation of the process underlying decisions

decision

availability heuristic

decision makers tendency to base decisions on information readily available in memory

Computer-based interactive systems that help decision makers use data and models to solve problems are:

decision support systems

In making a decision,

evidence forms the basis of the decision

Managers use ________ in three different ways: to make a decision, to inform a decision, and to support a decision

evidence or data

When winning an argument with a rival overshadows the primary goal of trying to solve the problem, it is known as

goal displacement

The phenomenon that occurs when people who are members of a cohesive in-group so strive for unanimity that they fail to realistically appraise alternative courses of action is called

groupthink

What are the disadvantages of hindsight bias?

having overconfidence in foresight, which leads to bad decisions

brainstorming

helps groups generate multiple ideas and alternatives for solving problems

behavioral style of decision making

highly people oriented decision makers

The bias that occurs when knowledge of previous outcomes influences decisions about the probability of future occurrences is:

hindsight bias

The making of new mental connections regarding the creative task or problem at hand is represented in the _________ stage of the creative performance process

idea generation

conceptual style of decision making

intuitive decision makers who involve others in long-term thinking

Daniel Kahneman describes two types of thinking in his book Thinking, Fast and Slow. Why is System 2 "slow"?

it is logical and deliberate it helps override wrong intuition

Which of the following is not an advantage of group decision making?

less pressure to conform

peer pressure

loyalty of dissenters is questioned

Which of the symptoms of groupthink protects against adverse information?

mindguards

What models of decision making explain how managers really come to decisions?

nonrational

The bias that takes place because we are optimistic based on overestimates of what we are able to do is:

overconfidence bias

Which of the following is not a symptom of groupthink?

overestimation of opponents

Pros and cons of using intuition

pro: - speed up decision making process - useful when there's limited resources con: - biases associated with type with rational decision making - may have difficult convincing others both intuition and rationality should be combined in managers decision making process

Rationalization

protects "pet" ideas and assumptions

mindguards

protects themselves against adverse information

The decision-making model that assumes managers are fully objective and have all the data needed is the:

rational decision model

The decision-making heuristic used when people estimate the probability of an event occurring based on impressions about similar occurrences is:

representativeness bias

Which of the symptoms of groupthink stifles critical debate? Multiple choice question.

self-censorship

self-censorship

stifles critical debate

What are the disadvantages to Kahneman's System 2 thinking?

time consumption mental energy requirement

stereotyped views of the opposition

underestimates opponents

What practical consideration might result in an individual rather than the whole group making a decision?

when there is limited time to make the decision