Chapter 11 - Terms & Quiz

Cons of using intuition

1) intuition is subject to the same types of biases associated with rational decision making

explicit knowledge

information that can easily be put into words

tips for improving your intuition

1) trust your intuitive judgements 2) seek feedback 3) test your intuitive success rate 4) try visualizing solutions 5) challenge your intuition

decision tree steps

1). is the proposed action legal 2) does it maximize shareholder value? 3) Is it ethical? 4) would it be ethical not to take the action.

brainstorming decision making blunders

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

groupthink

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

opportunity

a situation in which results that exceed goals and expectations are possible.

electronic brainstorming

sometimes called brainwriting, allows participants to submit their ideas and alternatives over a computer netword

Advantages of group decision making

* greater pool of knowledge *. different approaches to a problem * greater commitment to a decision * better understanding of decision rational * more visible role modeling

symptoms of groupthink

* invulnerability * inherent morality * rationalization * stereotyped views of opposition * self-censorship * illusion of unanimity * peer pressure * mindguards

Disadvantages of Group Decision Making

* social pressure * a few dominant participants * goal displacement * groupthink

Delhi technique useful when

*face to face discussion are impractical *When disagreements and conflict are likely to *impair communication

eight biases that commonly affect decision making

1) confirmation bias 2) overconfidence bias 3) availability bias 4) representative bias 5) anchoring bias 6) hindsight bias 7) framing bias 8) escalation of commitment bias

Rational Decision Making Steps

1) identify the problem or opportunity 2) generate alternative solutions 3) evaluate alternatives and select a solution 4) implement and evaluate the solution chosen.

three benefits of following rational process

1) quality 2) tranparency 3) responsibility

the sources of creative behaviors are both personal and environmental factors

true

big data creates value in the following ways:

1) it can make information more transparent and usable 2) it allows organizations to measure and collect all types of performance information 3) it allows more narrow segmentation of customers 4) it can be used to develop new products

Pros of using intuition

1) it can speed up the decision-making process 2) it is useful when resources are limited

Tips for sparking creativity

1) motivation 2) subconscious mind do its work 3) daydream 4) seek out the unusual 5) surround yourself with the color blue 6) think like a child 7) find time to laugh 8) try to solve problems when your groggy

decision support systems (DSS)

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

creativity involves only tacit, never explicit knowledge

False Experts suggest that creativity involves a convergence between tacit and explicit knowledge

The rational model of decision making explains how managers actually make decision.

False Explains how they Should make decision.

The last step in Bagley's decision tree is, "Does the proposed action maximize shareholder value?"

False The last step is "Would it be ethical to take the proposed action?"

The degree to which people focus on either task and technical concerns or people and social concerns when making decisions is known as their analytical preference.

False Value orientation reflects the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions.

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

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

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

Rational decision making is a struggle - correct ans Managers possess complete information. The context for managerial decisions is simple and stable Decisions can be made with certainty Managers do not face restrictions when making decisions.

Intuition is represented by two distinct processes - one automatic, involuntary, and mostly effortless; and the other being controlled, voluntary, and effortful

True

Often, decision makers select the most readily available ideas or solutions. Therefore, the are advised to evaluate a broader set of alternatives

True

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

True

Delhi technique

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

holistic hunch

a judgement based on the subconscious integration of information stored in memory

expertise

an individual's combined explicit knowledge and tacit knowledge

Grace takes a broad perspective to a 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. Grace has a(n) __________ style

analytical conceptual - correct ans. directive behavioral consultative

groupthink: illusion of unanimity is likely to

breed excessive optimism cause groups to underestimate opponents cause groups to interpret silence as assent - correct ans question loyalty of dissenters cause the group to ignore ethical considerations

judgmental heuristics

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

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

confirmation - correct ans availability representativeness overconfidence

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

confirmation bias the rational model holistic hunches evidence or data - correct ans. normative models

intuition

consist of judgement, 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 the cues"

satisficing

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

availability bias

decision maker's tendency to base decisions on information readily available in memory

decision making

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

In making a decision,

evidence forms the basis of the decision - correct ans. evidence is one of several inputs to the decision process evidence is created to support a decision using other inputs evidence should not be used only quantitative evidence is used.

nonrational models of decision making

explain how managers actually make descisions

rational model of decision making

explains how managers should make decisions

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

false

creative performance behaviors

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

decision tree

graphical representation of the process underlying decisions and it shows the resulting consequences of making various choices

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

greater commitment to a decision less pressure to conform - correct ans. better understanding of the decision rationale greater pool of knowledge more visible role modeling

conceptual style

have a high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation

directive style

have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions.

analytical style

have a much higher tolerance for ambiguity and tend to over analyze a situation

brainstorming

helps groups generate multiple ideas and alternatives for solving problems. a common technique that both individuals and groups use to generate potential solutions.

tolerance for ambiguity

indicates the extent to which a person has a high need for structure or control in his or her life

conensus

is reached 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.

representativeness bias

leads us to look for information that supports previously formed stereotypes

which of the following is not a symptom of groupthink

mindguards illusion of unanimity self-censorship illusion of invulnerability overestimation of opponents - correct ans.

behavioral style

most people-oriented of the four, people with this style work well with others and enjoy social interactions in which opinions are openly exchanged.

Person factors (drivers)

motivation domain-relevant knowledge self-efficacy national culture willingness to tolerate ambiguity proactive personality

anchoring bias

occurs when decision makers are influenced by the first information received 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

confirmation bias

pertains to how we selectively gather information

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

problem formulation/definition preparation/information gathering idea generation - correct ans ideal evaluation idea validation

creativity

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

bid data

reflects the vast quantity of data available for decision making

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

automated experience

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

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 (driving), and overestimating the accuracy of our predictions.

Individuals who are behavioral in decision-making style

risk being autocratic and focusing on the short term. sometimes overanalyze situations prefer written to verbal information are good at finding creative solutions to problems have a tendency to avoid conflict - correct ans.

cohesiveness

sense of "we-ness" tends to override individual differences and motives

Optimizing

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

value orientation

the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions

creative outcome effectiveness

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

evidenced-based decision making

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

escalation of commitment bias

the tendency to hold to an ineffective course of action even when it is unlikely the bad situation can be reversed

Situation factors

high-commitment work systems interpersonal diversity time pressure positive relationships with supervisors and coworkers mutual accountability among group members spatial configuration of work settings

tacit knowledge

information we gain trough experience that is difficult to express and formalize