Fichas
Chapter 11- Decision Making
Fichas del conjunto (66)
- 1What is individual decision making?The process of developing a commitment to some course of action
Also referred to as problem solving - 2What are the two different types of problems?1. Well-structured
2. Ill-structured - 3What is a problem?The difference between current and desired state of affairs
- 4What is a well-structured problem?The existing state is clear, the desired state is clear and how to get from one state to the other is fairly obvious
- 5What is an ill-structured problem?One in which the existing and desired states are unclear and the method of getting to the desired state is unknown
- 6What are the 2 different types of rationality?1. Bounded Rationality
2. Perfect Rationality - 7What is considered to be bounded rationality?A decision strategy that relies on limited INFORMATION and that reflects TIME CONTRAINTS and POLITICAL CONSIDERATIONS
- 8What is considered to be perfect rationality?A decision strategy that is COMPLETELY INFORMED, PERFECTLY LOGICAL, and orientated towards ECONOMIC GAIN
- 9What are the 7 steps that perfect rationality assumes will happen during problem solving?1. Identify problem
2. Search for relevant information
3. Develop alternative solutions to the problem
4. Evaluate alternate solutions
5. Choose best solution
6. Implement chosen solution
7. Monitor and evaluate chosen solution - 10Do the requirements of perfectly rational individuals actually occur in real-life decision makers?No they do not
- 11What are the 2 reasons that bounded rationality occur?1. Framing
2. Cognitive biases - 12What is framing and why does it happen?Framing is aspects of the presentation of information about a problem that are assumed by decision makers
It happens because we are human - 13What are cognitive biases and why does it happen?Cognitive biases are the tendencies to acquire and process information in an error-prone way
It happens because we are human - 14At what stage of problem solving is framing and cognitive biases bound to happen?The stage of identifying the problem
- 15What are 4 other problems that can occur when identifying a problem?1. Perceptual defense
2. Defined in terms of functional speciality
3. Defined in terms of solutions
4. Diagnosed in terms of symptoms - 16What happens in perceptual defense?Not wanting to see the signals of problems
- 17What happens when a problem is defined in terms of functional speciality?Depends on who the decision maker is and what they are good at
- 18What happens when a problem is defined in terms of solutions?Jumping to conclusion
- 19What happens when a problem is diagnosed in terms of symptoms?Overlooking the cause
- 20What are two issues that can arise when the problem is in the searching for relevant information stage?1. Too little information
2. Too much information - 21What happens when you receive too little information?You remember vivid recent info
- 22What kind of bias is receiving too little information?Confirmation bias
- 23What happens when you receive too much information? (3 factors)1. Information overload
2. Relying on low quality info
3. Advice one has paid for is of more value than free advice - 24Confirmation biases occur during what stage of problem solving according to perfect rationality?Searching for relevant information
- 25What issues can arise out of the developing alternative solutions to the problem stage of problem solving?Satisficing instead of maximization
- 26What occurs during satisficing instead of maximization issue? (4 factors)1. Ignoring existing data
2. Over confidence with a small sample
3. Over estimation of odds of complex events
4. Anchoring effect - 27What is the anchoring effect?Relying on initial piece of information and using it like an anchor
- 28What is one of the most important biases in decision making?Framing
- 29What are the 2 types of framing?1. Gain Frame
2. Loss Frame - 30What is a gain frame?When something is framed POSITIVELY, we want to GAURENTEE A GOOD OUTCOME so we tend to be less risky
- 31What is a loss frame?When something is framed NEGATIVELY, we figure we have NOTHING LEFT TO LOSE and MIGHT AS WELL TAKE THE CHANCE
- 32What is the Gambler's Fallacy?"chance is commonly viewed as a SELF CORRECTING PROCESS in which a deviation in one direction induces a deviation in the opposite direction to restore the equilibrium"
- 33What 3 issues can arise during the evaluating the solution stage?1. Justification
2. Escalation of commitment
3. Hindsight - 34What is justification?Overconfidence
- 35What is escalation of commitment?Tendency to invest additional resources in an apparently failing course of action
Permanent losses (sunk costs) are ignored - 36What is hindsight?Evaluation of the process after we know the results
- 37What are sunk costs?Permanent losses of resources incurred as the result of a decision
*Since these resources have been lost due to a past decision, they should not enter into future decisions* - 38Why does escalation of commitment happen? (3 outcomes)1. Dissonance reduction
2. Social norms that favours consistent behaviour
3. Current decision maker was not responsible for sunk costs - 39Are groups or individuals more prone to escalate commitment?Groups because they are sharing responsibility
- 40What 2 personality dimensions are more sensitive to risk? Are they beneficial in a group?1. Neuroticism
2. Negative affectivity
People with these personality traits can be beneficial in groups - 41How does a persons negative mood effect decision making?People in a negative mood are more prone to approach decisions in a more deliberate, systematic, detailed way
- 42How does a persons positive mood effect decision making?People with a positive mood promote a more creative, intuitive decision making style
- 43What is a major issue in the problem solving stages of perfect rationality during the implementation of chosen solution stage?Perfectly rational decision makers have anticipated every potential problem in implementation
In real life, it is difficult to anticipate ability, motivation and potential reactions of decisions - 44According to NASA's space shuttle challenger case, what was one of NASA's biggest issues?Missing data was overlooked and the risks were not properly assessed
- 45What were the 6 decision making biases in NASA's case?1. Confirmation Bias
2. Overconfidence
3. Escalation of Commitment
4. Groupthink
5. Framing
6. Gambler's Fallacy - 46Decision making in groups: do groups make better decisions than individuals?It depends!
- 47What are the advantages of group decision making? (2 outcomes)1. Decision acceptance and commitment
2. Decision quality - 48What are the disadvantages of group decision making? (4 outcomes)1. Time
2. Conflict
3. Domination
4. Groupthink - 49What is evidence-based decision making?A process for MAKING DECISIONS about a program, practice or policy that is grounded in the best available research EVIDENCE and informed by experiential EVIDENCE from the field and relevant contextual EVIDENCE
- 50What are the 3 levels of evidence analysis?1. Descriptive
2. Predictive
3. Prescriptive - 51What happens during the descriptive stage of analysis?1. Identify problem
2. Develop current state of affairs - 52What happens during the predictive stage of analysis?1. If we don't do anything what would our future state?
2. What will happen if we don't do anything (path to our desired state) - 53What happens during the prescriptive stage of analysis?1. What action should we take to get to our desired state?
- 54What links the descriptive, predictive and prescriptive stages?Research links the descriptive, predictive and prescriptive stages.
- 55What is the main concept behind the evidence-based decision making model?The better the quality of evidence, the better the decision
- 56In the evidence-based decision making model, what is considered evidence ?Scientific research
1. Contextual data (depends of demand)
2. Decision makers' judgement and expertise - 57What are the 3 influences that effect the link between evidence and decision options?1. Decision makers' preferences and values
2. Stakeholders' preferences and values
3. Ethical and legal constraints - 58What is the one thing that we should acknowledge between the decision makers; preferences and values and the stakeholders' preferences and values?One thing that we should acknowledge is that there is an INTERACTION between the decision makers' preferences and values and the stakeholders' preferences and values
- 59Research should always be ___________ for good quality decisionsAppraised
- 60In the hierarchy of evidence in medicine, where is the best available evidence located?At the top of the pyramid
- 61In the case of the hierarchy of evidence of medicine, what is considered to be the 1st best and 2nd best available evidence?1. Systematic reviews of randomized control trials
2. Random control trials - 62What is a similar theory that can be related to management?Theory of evidence in management
- 63Where is the best available evidence located in the theory of evidence in management?Since the theory of evidence in management is not in a pyramid, but rather a circle, one can tell the best available evidence based on the size of overlap of the circles
- 64What are the 5 components in the theory of evidence in management?1. Methodological fit
2. Contextuality
3. Transparency
4. Replicability
5. Consensus - 65Which one of the 5 components in the theory of evidence in management is used to appraise evidence in management?Replicability
- 66What is a practice that one can do to make sure that they have the best available evidence?Have the most updated information of the best available evidence at this point in time
Therefore, be engaged in learning
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- Organizational Behaviour Fichas sobre Chapter 11- Decision Making , creado por Mariah Kampman el 10/04/2019.
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