Shared Flashcard Set

Details

MGMT 321 Decision Making
Decision Making for MGMT 321
56
Management
Undergraduate 3
05/17/2017

Additional Management Flashcards

 


 

Cards

Term
Classical Model of Decision Making
Definition

1. Identify decision situations

2. develop objectives and criteria

3. generate alternatives

4. analyze alternatives

5. select alternatives

Term
formulation
Definition
a process involving identifying a problem or opportunity, acquiring information, developing desired performance expectations, and diagnosing the causes and relationships among factors affecting the problem or opportunity.
Term
problem
Definition
manager detects a gap between the firm's existing and desired performance.
Term
opportunity
Definition
manager sees a way for the firm to achieve a more desirable state than the one it's currently in.
Term
solution
Definition
process involving generating alternatives, selecting the preferred solution, and implementing the decided course of action.
Term
rational model (classical model)
Definition
the seven-step model of decision making that represents the earliest attempt to model decision process.
Term
decision making
Definition
a process of specifying the nature of a particular problem or opportunity and selecting among available alternatives to solve a problem or capture an opportunity.
Term
Analyzing Alternatives
Definition
determine which alternatives produce minimally acceptable results, examine feasibility of remaining alternatives, evaluate remaining on "weight"
Term
subjectively expected utility model
Definition

a model of decision making that asserts that managers choose the alternative that they subjectively believe maximizes the desired outcome. 

two key components - expected outcome, and probability that it can be implemented.

Term
implementing the decision
Definition

1. assess sources and reasons for potential resistance to decision

2. determine chronology and sequence of actions designed to overcome resistance to ddecision and ensure effective implementation of decision.

3. assess the resources required to implement decision

 

 

Term
assumptions of the rational (classical) model
Definition

problem clear

objectives clear

agreement on criteria and weight used to make decision

alternatives are known

consquences anticipated

decision makers are rational

-not biased

-process all relevant info

-examine all consequences

-search for alternatives that maximize results desired

Term
bounded rationality model
Definition
a model that assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information-processing capabilities than they possess.
Term
heuristic
Definition

a rule that guides the search for alternatives into areas that have a high probability for yielding success. 

-"rule of thumb"

Term
satisficing
Definition
the tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results
Term
bounded rationalty model steps
Definition

1. set the goal or define problem

2. establish minimum performance, criterion level

3. employ heuristics to narrow solution to single alternativ

4. if cannot find alternative, lower aspiration and search

5. after identifying heuristic, determine its acceptability

6.if individual alternative unacceptable, initiate search

7. if acceptable, implement solution

8. evaluate the ease with which goal was attained, and raise or lower level of performance accordingly on future decisions.

Term
retrospective decision model (implicit favorite model)
Definition
a decision-making model that focuses on how decision makers attempt to rationalize their choices after they are made.
Term
perceptual distortion
Definition
highlighting positive features of implicit favorite over alternative.
Term
intuitive decision making
Definition
primarily subconscious process of identifying a decision and selecting a preferred alternative.
Term
programmed decision
Definition
a standard response to a simple or routine problem
Term
nonprogrammed decisions
Definition
a decision about a problem that is either poorly defined or novel.
Term
standard operating procedures
Definition
established procedure for action used for programmed decisions that specifies exactly what should be done.
Term
gresham's law of planning
Definition
the tendency for managers to make decisions that are routine and repetitive before focusing on those that are unique and require considerable thought and have more amibguity and uncertainty associated with their outcomes.
Term
what influences decision making
Definition

1. characteristic of decision maker

-knowledge, ability, motivation

2.nature of problem or opportunity itself

-unfamiliarity, ambiguity, complexity, instability

3. environment in which you make the decision

-irreversibility, significance, accountability, time and monetary constraints

4. importance of the decision

Term
group decision making
Definition

bring greater cumulative knowledge to problems, come to decisions slower

identifying alternatives - different, unique solutions

evaluating alternatives - wider, superior viewpoint

choosing alternatives - involving group members greater acceptance of outcome

implementing the choice - individual responsibility better than group responsibility. -- individuals perform better in carrying out the decision than groups do.

Term
groupthink
Definition
a mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action.
Term
information bias
Definition
reluctance to give or receive negative information
Term
uncertainty absorption
Definition
tendency for information to lose its certainty as it is passed along
Term
selective perception
Definition
tendency to ignore or avoid certain information, especially ambiguous information
Term
stereotyping
Definition
deciding about an alternative on the basis of characteristics ascribed by others
Term
cognitive complexity
Definition
limits on the amount of information people can process at one time.
Term
stress
Definition
reduction of people's ability to cope with informational demands
Term
groupthink
Definition
a mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action.
Term
liabilities of group
Definition
slow, compromise = not optimal, dominated by clique, overreliance on group decision making can inhibit management's ability to act quickly and decisively when necessary.
Term
assets of group
Definition
accumulate more knowledge, broader perspective - consider more alternatives, if participate, more satisfied with decision, more likely to support it, serve an important communication function, as well as useful political function.
Term
illusion of invulnerability
Definition
group members reassure themselves about obvious dangers, become overly optimistic, are willing to take extraordinary risks.
Term
collectively rationalize
Definition
discount warning signs that should lead them to resonsider earlier decisions
Term
collectively rationalize
Definition
discount warning signs that should lead them to resonsider earlier decisions
Term
illusion of morality
Definition
ignore obvious ethical or moral consequences of their decisions
Term
stereotyping
Definition
harsh terms, refuse to listen to their opinions or negotiate
Term
self-censorship
Definition
minimize the seriousness of doubts members raise and put tremendous pressure on them to agree to the group's consensus.
Term
illusion of unanimity
Definition
members assume that individuals who remain silent agree with them.
Term
mindguards
Definition
victims of groupthink that appoint themselves to protect the leader and other members of the group from adverse information that could cause conflict over the correctness of a course of action.
Term
consequences of groupthink
Definition

-limit search for solutions to one or two alternatives

-fail to reexamine chosen action aftern new information

-little time examining nonobvious advantages

-little or no attempt to seek experts' advice

-interest in facts that support alternative, ignore or disregard facts that fail to support it.

-ignore possible roadblocks to choice, don't develop contingency plans

Term
overcoming groupthink
Definition

devil's advocate

encourage critical evaluation

consider range of alternatives - open discussion

more suggestions

Term
escalating commitment
Definition

tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision, even after significant evidence emerges indicating that the original decision was incorrect.

-justify previous actions "forced compliance"

-norm for consistency

-probability of future outcomes

-positive value of expected outcomes

--prospective rationality - belief that future courses of action are rational and correct.

Term

overcoming escalation of commitment

 

Definition

- stress sunk costs

-create atmosphere in which consistency does not dominate

-encourage members to evaluate prospects of future outcomes critically, invite experts

-devil's advocate

Term
cross-functional team
Definition
work group composed of employees from different departments to work together on problem solving.
Term
high involvement by participants in which steps of decision-making process cause significantly higher work-group performance and satisfaction?
Definition
generating alternatives, planning implementation, and evaluating results.
Term
participative decision-making works because:
Definition

clarifies for employees what to expect relative to issue being decided

increases likelihood that employees will work for rewards and outcomes they value

heightens effects of social influence on behavior

enlarges amount of control employees have over their work activities

Term
high-velocity environments
Definition
rapid decision making by executives and their companies is closely related to good corporate performance
Term
fast decisions in high-velocity environments requires these 5 characteristics by manager
Definition

accelerated cognitive processing, smooth group processes, confidence to act - analysis paralysis

real-time information, multiple simultaneous alternatives, two-tiered advice process, consensus with qualification, decision integration

Term
structured debate
Definition
a process to improve problem formulation that includes the process of devil's advocate, multiple advocacy, and dialectical inquiry
Term
multiple advocacy
Definition
process to improve decision making by assigning several group members to represent the opinions of various constituencies that might have an interest in the decision.
Term
dialectical inquiry
Definition
a process to improve decision making by assigning a group member (or members) the role of questioning the underlying assumptions associated with the formulation of the problem - particularly good with groupthink, escalation
Term
brainstorming
Definition
process of generating many creative solutions without evaluating their merit
Term
nominal group technique
Definition
a process of having group members record their proposed solutions, summarize all proposed solutions, and independently ranksolutions until a clearly favored solution emerges.
Supporting users have an ad free experience!