Decision making

visual illusions

misperceptions of visual stimuli

Moral Imagination

When one is facing an ethical decision, the ability to envision various alternative choices, consequences, resolutions, benefits, harms.

bounded rationality

a process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity

Hoefstede's dimensions

describes the effects of a society's culture on the values of its members, and how these values relate to behavior

moral intensity and framing

how important is the issue to us personally, and to our employer (e.g. climate change vs. global warming)

availability bias

items that are more readily available in memory are judged as having occurred more frequently

Organisational culture

The values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external stakeholder groups

Moral Muteness

when people do not recognizably communicate their moral concerns in settings where such communicating would be fitting

Ethical Decision Making Process

1. Identify the ethical dilemma 2. Discover alternative actions 3. Decide who might be affected 4. List the probable effects of the alternatives 5. Select the best alternative

recognition-primed decision model

A decision-making model in which experience and recognition of similar situations one has already experienced play a large role in decision-making and actions; also one of the explanations for the experience of intuition.

Rational decision-making model

A decision-making model that describes how individuals should behave in order to maximise some outcome

Naturalistic Decision Making

Behavioral model - how people make decisions in complex, real-world setting

integrity

Consistency in our values and actions

sunk costs/escalation of commitment

Make choices in a way that justifies past choices, even when the past choices no longer seem valid (A type of Self-serving bias - don't want to admit we were wrong)

intuitive decision making

Making decisions on the basis of experience, feelings, and accumulated judgment.

Rational decision-making model assumptions

The model assumes that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility Most decisions don't follow the rational model; people are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one People are remarkably unaware of making suboptimal decisions

ethical decisions

Those concerned with judgments about right or wrong

Values

We are all guided by consistent values about right and wrong, but are also swayed by unconscious biases

Future discounting

rewards are worth less the further away in time they are

heurestic

shortcut strategies or guidelines that suggest a solution to a problem but do not guarantee an answer

Risk/Loss Aversion

tendency to prefer a sure gain of a moderate amount over a risker outcome, even if the riskier outcome might have a higher expected payoff

overconfidence bias

the bias in which people's subjective confidence in their decision making is greater than their objective accuracy

Decision performance framework

the degree of conscious control exercised by the individual over his or her activities, depending on the degree of familiarity with the task and the environment either by skill, rule or knowledge

status quo bias

the preference to keep things the way they are rather than change

decision making

the process of making a choice or finding a solution

attribution bias

the tendency to attribute one's own negative behavior to external causes and one's positive actions to internal states

hindsight bias

the tendency to believe, after learning an outcome, that one would have foreseen it (view the innovations of the past as less inventive and more obvious e.g. electricity)

Anchoring

the tendency, in making judgments, to rely on the first piece of information encountered or information that comes most quickly to mind

Rationalisation (cognitive dissonance)

the theory that we act to reduce the discomfort we feel when two of our thoughts are inconsistent