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