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Description
Flashcards by Michaela Juric-Donlan, updated more than 1 year ago
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Created by Michaela Juric-Donlan
about 7 years ago
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| Question | Answer |
| What are the 4 stages of rational decision making? | Identify the problem or opportunity Think up alternative solutions Evaluate alternatives and select a solution Implement and evaluate the solution chosen |
| Complete information, no uncertainty"" | You should obtain complete, error free information about all alternative courses of action and the consequences that would follow from each choice. |
| Logical, unemotional analysis"" | Having no prejudices or emotional blind spots, you are able to logically evaluate the alternatives, ranking them from best to worst according to your personal preferences. |
| Best decision for the organisation"" | Confident of the best future course of action, you coolly choose the alternative that you believe will most benefit the organisation |
| What is bounded rationality? | Suggests that the ability of decision makers to be rational is limited by numerous constraints such as complexity, time and money, and cognitive capacity. |
| What is the satisficing model? | Managers seek alternatives until they find one that is satisfactory, not optimal. |
| What is the Incremental Model? | Making short term decisions, step by step. |
| What is the Intuition model? | Making a choice without the use of conscious thought or logical inference. Sources are expertise and feelings. |
| What are the advantages of group decision making? | Greater pool of knowledge Different perspectives Intellectual stimulation Better understanding of decision rationale Deeper commitment to the decision |
| What are the disadvantages of group decision making? | A few people dominate or intimidate Groupthink Satisficing Goal displacement |
| What is Groupthink? | Occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation. |
| What are 4 key points to remember about group decision making? | They are less efficient Their size affects decision quality They may be too confident. Knowledge counts. |
| What is Participative management? | Process of involving employees in setting goals, making decisions, solving problems an making changes in the organisation. |
| What are 4 group problem solving techniques? | Consensus, Brainstorming, Delphi Technique and Computer aided decision making. |
| What is the Delphi Technique? | A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas. |
| What is Computeraided decision making? | Useful not only in collecting information more quickly but also in reducing roadblocks in group consensus. |
| What are Chauffeurdriven systems? (Computer aided decision making) | Ask participants to answer predetermined questions on electronic keypads or dials. |
| What are groupdriven systems? (Computer aided decision making) | Involves a meeting within a room of participants ho express their ideas anonymously on a computer network. |
| What are 4 ineffective responses to a decision situation? | Relaxed avoidance Relaxed change Defensive Avoidance Panic |
| What are 3 effective responses to a decision situation? | Importance (How high priority is this situation?) Credibility (How believable is the information about the situation?) Urgency ( How quickly must I act on the information about the situation) |
| What is Overconfidence Bias? | Decision makers trust rather than verify their facts and perceptions. |
| What is Immediate gratification bias? | Decision makers choose alternatives which provide quick payoffs and/or avoid immediate costs |
| What is the Anchoring effect? | Decision makers overemphasise information received early in the decision process. |
| What is Selective perception Bias? | Decision makers distort identification of problems, the development of alternatives and evaluation processes. |
| What is confirmation bias? | Decision makers seek out information that reaffirms their past choices and discounts information that contradicts past judgements. |
| What is Framing bias? | Decision makers distort what they see and create incorrect reference points. |
| What is availability bias? | Decision makers distort judgements and probability estimates. |
| What is Representation Bias? | Decision makers make decisions for the situation they perceive as similar rather than the actual situation. |
| What is Randomness? | Decisions are made based on assumptions of connections between events. |
| What are sunk costs? | Decision makers incorrectly fixate on past expenditures of time, money or effort in assessing choices rather than on future consequences. |
| What is self serving? | Decision makers choose alternatives which reflect well on them rather than those which are the best solutions. |
| What is Hindsight bias? | Decision makers incorrectly credit themselves with the ability to accurately predict outcomes. |
| What are the best ways to help your staff make decisions? | Program decisions (Policy making) Mindfulness Nudging (Positive reinforcement) |
| What makes it hard to be evidence based? | Too much evidence Not enough good evidence Evidence does not apply People try to mislead you You are misleading yourself The side effects outweigh the cure |
| What are analytics? | Sophisticated forms of business data analysis (I.e: portfolio analysis, time series forecast) |
| How do you make an ethical decision? | Is the proposed action legal? If yes, does the proposed action maximise shareholder value? If yes, is the proposed action ethical? If no, would be ethical not to take the proposed action? |
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