Term
| Classical Model of Decision Making |
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Definition
1. Identify decision situations
2. develop objectives and criteria
3. generate alternatives
4. analyze alternatives
5. select alternatives |
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Term
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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. |
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| manager detects a gap between the firm's existing and desired performance. |
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Definition
| manager sees a way for the firm to achieve a more desirable state than the one it's currently in. |
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Definition
| process involving generating alternatives, selecting the preferred solution, and implementing the decided course of action. |
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Term
| rational model (classical model) |
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Definition
| the seven-step model of decision making that represents the earliest attempt to model decision process. |
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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. |
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Definition
| determine which alternatives produce minimally acceptable results, examine feasibility of remaining alternatives, evaluate remaining on "weight" |
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Term
| subjectively expected utility model |
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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. |
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Term
| implementing the decision |
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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
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Term
| assumptions of the rational (classical) model |
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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 |
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Term
| bounded rationality model |
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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. |
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Term
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Definition
a rule that guides the search for alternatives into areas that have a high probability for yielding success.
-"rule of thumb" |
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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 |
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Term
| bounded rationalty model steps |
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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. |
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Term
| retrospective decision model (implicit favorite model) |
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Definition
| a decision-making model that focuses on how decision makers attempt to rationalize their choices after they are made. |
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Definition
| highlighting positive features of implicit favorite over alternative. |
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Term
| intuitive decision making |
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Definition
| primarily subconscious process of identifying a decision and selecting a preferred alternative. |
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Definition
| a standard response to a simple or routine problem |
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Definition
| a decision about a problem that is either poorly defined or novel. |
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Term
| standard operating procedures |
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Definition
| established procedure for action used for programmed decisions that specifies exactly what should be done. |
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Term
| gresham's law of planning |
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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. |
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Term
| what influences decision making |
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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 |
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Term
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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. |
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Term
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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. |
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Definition
| reluctance to give or receive negative information |
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Definition
| tendency for information to lose its certainty as it is passed along |
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Definition
| tendency to ignore or avoid certain information, especially ambiguous information |
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Definition
| deciding about an alternative on the basis of characteristics ascribed by others |
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Definition
| limits on the amount of information people can process at one time. |
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Definition
| reduction of people's ability to cope with informational demands |
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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. |
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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. |
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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. |
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Term
| illusion of invulnerability |
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Definition
| group members reassure themselves about obvious dangers, become overly optimistic, are willing to take extraordinary risks. |
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Definition
| discount warning signs that should lead them to resonsider earlier decisions |
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Definition
| discount warning signs that should lead them to resonsider earlier decisions |
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Definition
| ignore obvious ethical or moral consequences of their decisions |
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Definition
| harsh terms, refuse to listen to their opinions or negotiate |
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Definition
| minimize the seriousness of doubts members raise and put tremendous pressure on them to agree to the group's consensus. |
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Term
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Definition
| members assume that individuals who remain silent agree with them. |
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Term
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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. |
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Term
| consequences of groupthink |
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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 |
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Term
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Definition
devil's advocate
encourage critical evaluation
consider range of alternatives - open discussion
more suggestions |
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Term
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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. |
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Term
overcoming escalation of commitment
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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 |
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Term
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Definition
| work group composed of employees from different departments to work together on problem solving. |
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Term
| high involvement by participants in which steps of decision-making process cause significantly higher work-group performance and satisfaction? |
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Definition
| generating alternatives, planning implementation, and evaluating results. |
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Term
| participative decision-making works because: |
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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 |
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Term
| high-velocity environments |
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Definition
| rapid decision making by executives and their companies is closely related to good corporate performance |
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Term
| fast decisions in high-velocity environments requires these 5 characteristics by manager |
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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 |
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Term
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Definition
| a process to improve problem formulation that includes the process of devil's advocate, multiple advocacy, and dialectical inquiry |
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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. |
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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 |
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Definition
| process of generating many creative solutions without evaluating their merit |
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Term
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Definition
| a process of having group members record their proposed solutions, summarize all proposed solutions, and independently ranksolutions until a clearly favored solution emerges. |
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