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41 Cards in this Set

  • Front
  • Back
a gap between a desired state and an existing state
decision criteria
the standards used to guide judgments and decisions
absolute comparision
a process in which each cirterion is compared to a standard or ranked on its own merits
relative comparisons
a process in which each decision criterion is compared directly to every other criterion
bounded rationality
decision-making process restricted in the real world by limited resource, information and decision making capabilities
information overload
situation in which decision makers have too much information
choosing the best alternative
choosing a "good enough" alternative
conditionas of certainity
conditions in which decision makers have complet information and knowledge of all possible outcomes
conditions of ristk
conditions in which decison makers face a very real possiblity of making the wrong decisions
positive frame
couching a problem in term of a gain, influencing decisions makers toward becoming risk adverse
couching aproblem in terms of a loss, thus iinfluencing decisions makers toward becoming risk seeking
conditions of uncertainty
conditions in which decision makers don't know the odds of winning or losing
risk prpensity
a person's tendency to take or avoid risk
availability bias
unrecognized tendency of decision makers to giver preference to recent information, vivid images and specific acts that they have personally observed
representative bias
unrecognized tendency of decision makers to judge the likelihood of an event's occurence based on its similarity to previous events
anchoring and adjustment bias
unrecognized tendency of decision makers to use and inital value or experience as a basis of comparison through the process.
decision rule
set of criteria that alternative solutions must meet ot be acceptable
dictionary rule
decision rule that requires decision makers to rank criteria in order of importance and then test solutions agains those criteria in rank order.
minimum threshold rule
decision rule that required alternative solutions to meet all the established minimum decision criteria
MVT multi-variable testing
a systematic approach of experimentation used to analyze and evaluate potential solutions
escalation of commitment
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.
a barrier to good decision makeing caused by pressure within the group for members to agree
c-type conflict (cognative conflict)
disagreement that focuses on problem and issue related differences
a-type conflict (affective conflict)
disagreement that focuses on individual or personal oriented issues
devil's advocacy
decision-making method in which an individual or a subgroup is asigned the role of a critic
dialectical inquiry
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
nominal group technique
decision making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group
Delphi technique
decision making method in which a penel of experts responds to questions and to each other until reaching agreement of an issue
stepladder technique
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
a decision making method in which group members build on each other's ideas to generate as many alternative solutions as possible
electronic brainstorming
a decision making method in which group members use computers to build on each other's ideas and generate many alternative solutions
production blocking
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
evaluation apprehensioin
Fear of what others will think of your ideas
6 Steps to Rational Decision-Making
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
Limits to Rational Decision-Making
Bounded Rationality

Risk and Decision making under Risky Conditions

Common decision making mistakes
4 Common Decision Making Mistakes
Over reliance on intuition

Availability Bias

Representative Bias

Anchoring & Adjustment Bias
4 steps Improving Individual Decision Making
Decision Rules

Multi-variable testing


Avoid escalation of commitment
3 Advantages of Group Decisionmaking
differnet perspectives

ability to find and access more information

ability to generate more options
Pitfalls of Group Decision making


domineering members
5 Group techniques
structured conflict
nominal group technique
delphi technique
step ladder technique
electronic brainstorming