Exam 2 Business Management (Chapter Decision making and creativity)

Group think

"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

Anchoring Bias

The anchoring bias occurs when decision makers are influenced by the first information received about a decision, even if it is irrelevant.

Availability Bias

The availability heuristic represents a decision maker's tendency to base decisions on information that is readily available in memory.

Representativeness Bias

The representativeness heuristic is used when people estimate the probability of an event occurring.

To reduce groupthink, someone should be given the role of devil's advocate.

True

Decision tree

a graphical representation of the process underlying decisions

Satisifcing

consists of choosing a solution that meets some minimum qualifications, one that is "good enough.

Intuition

represents 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

Bounded Rationality

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

cohesiveness

sense of "we-ness" that overrides individual differences and motives

evidence-based decision making

which is defined as a process of conscientiously using the best available data and evidence when making managerial decisions

Four Stages of Rational Decision Making

Identify Problem, Solutions, Evaluate Solutions, Implement solutions

Confirmation

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

Simple

A decision environment in which the context is stable, with clear cause-and-effect relationships, is categorized as:

In groupthink, the illusion of unanimity is likely to:

Cause groups to interpret silence as assent

Decision making

entails identifying and choosing alternative solutions that lead to a desired state of affairs

Rational model of decision making

explains how managers should make decisions.

Big Data

reflects the vast quantity of data available for decision making

Holistic hunch

represents a judgment that is based on a subconscious integration of information stored in memory.