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Organizational Behavior
Chapter 11
35
Management
04/19/2012

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Term
decision making
Definition
Making choices among alternative courses of action, including inaction.
Term
programmed decisions
Definition
Decisions that occur frequently enough that we develop an automated response to them.
Term
decision rule
Definition
Automated response to problems that occur routinely
Term
nonprogrammed decisions
Definition
Unique, nonroutine, and important. These decisions require conscious thinking, information gathering, and careful consideration of alternatives.
Term
strategic decisions
Definition
Decisions that are made to set the course of an organization.
Term
tactical decisions
Definition
Decisions about how things will get done
Term
operational decisions
Definition
Decisions employees make each day to make the organization function.
Term
rational decision-making model
Definition
A series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice.
Term
decision criteria
Definition
A set of parameters against which all of the potential options in decision making will be evaluated.
Term
alternatives
Definition
Other possible solutions to a problem in a decision-making process.
Term
analysis paralysis
Definition
A decision-making process in which more and more time is spent on gathering information and thinking about it, but no decisions actually get made.
Term
bounded rationality model
Definition
According to this model, individuals knowingly limit their options to a manageable set and choose the first acceptable alternative without conducting an exhaustive search for alternatives.
Term
satisfice
Definition
To accept the first alternative that meets minimum criteria.
Term
intuitive decision-making model
Definition
Arriving at decisions without conscious reasoning. The model argues that in a given situation, experts making decisions scan the environment for cues to recognize patterns.
Term
creativity
Definition
The generation of new ideas that are original, fluent, and flexible.
Term
fluency
Definition
The number of ideas a person is able to generate.
Term
flexibility
Definition
How different the ideas are from each other. If individuals are able to generate several unique solutions to a problem, they are high on flexibility.
Term
originality
Definition
How unique a person’s ideas are.
Term
brainstorming
Definition
A process of generating ideas that follows a set of guidelines, including not criticizing ideas during the process, the idea that no suggestion is too crazy, and building on other ideas (piggybacking).
Term
idea quotas
Definition
A set number of ideas a group must reach before they are done with brainstorming.
Term
wildstorming
Definition
A variation of brainstorming in which the group focuses on ideas that are impossible and then imagines what would need to happen to make them possible.
Term
overconfidence bias
Definition
What occurs when individuals overestimate their ability to predict future events.
Term
hindsight bias
Definition
The opposite of overconfidence bias, as it occurs when looking backward in time and mistakes seem obvious after they have already occurred.
Term
anchoring
Definition
The tendency for individuals to rely too heavily on a single piece of information.
Term
framing bias
Definition
The tendency of decision makers to be influenced by the way problems are presented.
Term
escalation of commitment
Definition
When individuals continue on a failing course of action after information reveals it may be a poor path to follow.
Term
groupthink
Definition
A tendency to avoid a critical evaluation of ideas the group favors.
Term
Nominal Group Technique (NGT)
Definition
A technique designed to help with group decision making by ensuring that all members participate fully.
Term
Delphi Technique
Definition
A group process that utilizes written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.
Term
majority rule
Definition
A decision-making rule in which each member of the group is given a single vote, and the option receiving the greatest number of votes is selected.
Term
consensus
Definition
A decision-making rule that groups may use when the goal is to gain support for an idea or plan of action. This decision-making rule is inclusive, participatory, cooperative, and democratic.
Term
premortem
Definition
A way to imagine what might go wrong and avoid it before spending a cent or having to change course along the way.
Term
Group Decision Support Systems (GDSS)
Definition
Interactive computer-based systems that are able to combine communication and decision technologies to help groups make better decisions.
Term
knowledge management systems
Definition
Systems for managing knowledge in organizations, supporting creation, capture, storage, and dissemination of information.
Term
decision trees
Definition
Diagrams where answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree.