Ch. 7 Decision Making And Creativity

Front 1

Decision making

Back 1

The conscious process of making choices among alternative with the intention of moving toward some desired state of affairs

Front 2

Rational choice paradigm

Back 2

The view in decision making that people should, and typically do, use logic and all available info to choose the alternative with the higher value

Front 3

Subjective expected utility

Back 3

The probability(expectation) of satisfaction (utility) resulting from choosing a specific alternative in a decision

Front 4

Mental models

Back 4

Visual or relational images of the external world

Front 5

Bounded rationality

Back 5

The view that people are bounded in their decision making capabilities, including access to limited info, limited info processing, and tendency toward satisficing rather than maximizing when making choices

Front 6

Implicit favorite

Back 6

A preferred alternative that the decision maker used repeatedly as a comprising with other choices

Front 7

Anchoring and adjustment heuristic

Back 7

A natural tendency for people to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new info is provided

Front 8

Availability heuristic

Back 8

A natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by nonprobability factors (emotional response, recent events

Front 9

Representative heuristic

Back 9

A natural tendency to evaluate probabilities of events or objects by the degree to which they resemble other events or objects rather than in objective probability info

Front 10

Satisficing

Back 10

Selecting an alternative that is satisfactory or "good enough" rather than the alternative with the highest value

Front 11

Intuition

Back 11

The ability to know when a problem it opportunity exists and to select the best course of action without conscious reasoning

Front 12

Scenario planning

Back 12

A systematic process of thinking about alternative future and what the O should do to anticipate and react to those environments

Front 13

Escalation of commitment

Back 13

The tendency to repeat an apparently bad decision or allocate more resources to a failing course of action

Front 14

Causes of escalating commitment

Back 14

1. Self- justification
2. Prospect theory affect
3. Perceptual blinders
4. Closing costs

Front 15

Prospect theory affect

Back 15

A natural tendency to feel more dissatisfaction from losing a particular amount than satisfaction from gaining an equal amount

Front 16

Creativity

Back 16

The development of originally ideas that make a socially recognized contribution

Front 17

Divergent thinkjng

Back 17

Reframing a problem in a unique way and generating different approaches to the issue

Front 18

Employee involvement

Back 18

The degree to which employees influence how their work is organized and carried out

Front 19

Levels of involvement

Back 19

1. Decide alone
2. Receive info from individuals
3. Consult with individuals
4. Consult with the team
5. Facilitate the team s's decision