Bus232 Unit 5 Decision Making

Front 1

problem

Back 1

a gap between a desired state and an existing state

Front 2

decision criteria

Back 2

the standards used to guide judgments and decisions

Front 3

absolute comparision

Back 3

a process in which each cirterion is compared to a standard or ranked on its own merits

Front 4

relative comparisons

Back 4

a process in which each decision criterion is compared directly to every other criterion

Front 5

bounded rationality

Back 5

decision-making process restricted in the real world by limited resource, information and decision making capabilities

Front 6

information overload

Back 6

situation in which decision makers have too much information

Front 7

maximizing

Back 7

choosing the best alternative

Front 8

satisficing

Back 8

choosing a "good enough" alternative

Front 9

conditionas of certainity

Back 9

conditions in which decision makers have complet information and knowledge of all possible outcomes

Front 10

conditions of ristk

Back 10

conditions in which decison makers face a very real possiblity of making the wrong decisions

Front 11

positive frame

Back 11

couching a problem in term of a gain, influencing decisions makers toward becoming risk adverse

Front 12

negative

Back 12

couching aproblem in terms of a loss, thus iinfluencing decisions makers toward becoming risk seeking

Front 13

conditions of uncertainty

Back 13

conditions in which decision makers don't know the odds of winning or losing

Front 14

risk prpensity

Back 14

a person's tendency to take or avoid risk

Front 15

availability bias

Back 15

unrecognized tendency of decision makers to giver preference to recent information, vivid images and specific acts that they have personally observed

Front 16

representative bias

Back 16

unrecognized tendency of decision makers to judge the likelihood of an event's occurence based on its similarity to previous events

Front 17

anchoring and adjustment bias

Back 17

unrecognized tendency of decision makers to use and inital value or experience as a basis of comparison through the process.

Front 18

decision rule

Back 18

set of criteria that alternative solutions must meet ot be acceptable

Front 19

dictionary rule

Back 19

decision rule that requires decision makers to rank criteria in order of importance and then test solutions agains those criteria in rank order.

Front 20

minimum threshold rule

Back 20

decision rule that required alternative solutions to meet all the established minimum decision criteria

Front 21

MVT multi-variable testing

Back 21

a systematic approach of experimentation used to analyze and evaluate potential solutions

Front 22

escalation of commitment

Back 22

tendency for a person who has already made a decision to more strongly support that original decision despite negative information that clearly indicates it was wrong.

Front 23

groupthink

Back 23

a barrier to good decision makeing caused by pressure within the group for members to agree

Front 24

c-type conflict (cognative conflict)

Back 24

disagreement that focuses on problem and issue related differences

Front 25

a-type conflict (affective conflict)

Back 25

disagreement that focuses on individual or personal oriented issues

Front 26

devil's advocacy

Back 26

decision-making method in which an individual or a subgroup is asigned the role of a critic

Front 27

dialectical inquiry

Back 27

a decision making model in which decision makers state the assumptions of a proposed solutions and generate a solution that this the antithesis of that solution

Front 28

nominal group technique

Back 28

decision making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group

Front 29

Delphi technique

Back 29

decision making method in which a penel of experts responds to questions and to each other until reaching agreement of an issue

Front 30

stepladder technique

Back 30

when group members are added to a group discussion one at a time, the existing group members first take the time to listen to each new member's thoughts ideas and recommendations and then the group in turns shares the ideas and suggestions already considered and makes and new decision

Front 31

brainstorming

Back 31

a decision making method in which group members build on each other's ideas to generate as many alternative solutions as possible

Front 32

electronic brainstorming

Back 32

a decision making method in which group members use computers to build on each other's ideas and generate many alternative solutions

Front 33

production blocking

Back 33

a disadvantage of Face to face brainstorming in which a group member must wait to share an idea because another member is presenting an idea

Front 34

evaluation apprehensioin

Back 34

Fear of what others will think of your ideas

Front 35

6 Steps to Rational Decision-Making

Back 35

1 Define the Problem
2 Identify Decision Criteria
3 Weight the Criteria
4 Gernerate Alternative
Courses of Action
5 Evaluate Each Alternative
6 Compute the Optimal decision

Front 36

Limits to Rational Decision-Making

Back 36

Bounded Rationality

Risk and Decision making under Risky Conditions

Common decision making mistakes

Front 37

4 Common Decision Making Mistakes

Back 37

Over reliance on intuition

Availability Bias

Representative Bias

Anchoring & Adjustment Bias

Front 38

4 steps Improving Individual Decision Making

Back 38

Decision Rules

Multi-variable testing

Software

Avoid escalation of commitment

Front 39

3 Advantages of Group Decisionmaking

Back 39

differnet perspectives

ability to find and access more information

ability to generate more options

Front 40

Pitfalls of Group Decision making

Back 40

Groupthink

time

domineering members

Front 41

5 Group techniques

Back 41

structured conflict
nominal group technique
delphi technique
step ladder technique
electronic brainstorming