Ob 720 - Decision Making

Front 1

Rational Choice Paradigm

Back 1

Perspective that people make decisions based on pure logic and rationality

Front 2

Rational Choice Model

Back 2

1) Problem ID
2) Choose decision process
3) Develop alternative solutions
4) Choose
5) Implement
6) Evaluate

Front 3

Issues with Problem ID

Back 3

SSDPM
1) Stakeholder framing
2) Solution focused problem
3) Decisive leadership
4) Perceptual defense
5) Mental Models

Front 4

Solution Focused Problem

Back 4

Finding the solution at the time the problem is identified

Front 5

Mental Model

Back 5

Our mental model produce assumptions that prevent us from seeing unique problems

Front 6

Decisive Leadership

Back 6

To appear decisive, leaders may not fully evaluate problems

Front 7

Perceputual Defense

Back 7

Blocking out bad news

Front 8

Stakeholder framing

Back 8

Employees may try to frame issues to convince leaders there is no problem

Front 9

Problems with Evaluating and Choosing Alternatives

Back 9

BIS
1) Bounded rationality
2) Implicit favorite
3) Satisficing

Front 10

Bounded Rationality

Back 10

People rarely make the best choice because the have limited and imperfect information

Front 11

Implicit Favorite

Back 11

Picking a preferred alternative over and over. Distorting the info so this alternative comes out top

Front 12

Satisficing

Back 12

Picking the good enough solution

Front 13

Intuition

Back 13

Knowing when a problem or opportunity exists and to selecting the best action without actively thinking about it.

Front 14

4 Ways to Make Effective Choices

Back 14

1) Leaders should be contemplative
2) Systematically evaluate alternatives
3) Be aware of emotions
4) Revisit issues in different moods
5) Scenario planning

Front 15

Escalation of Commitment

Back 15

Tendency to repeat an apparently bad decision or continue the course

Front 16

4 Reasons for Escalation

Back 16

1) Self justification
2) Prospect theory
3) Perceptual blinders
4) Closing costs

Front 17

3 Ways to Improving Evaluation

Back 17

1) Separate decision makers and evaluators
2) Publicly establish a kill level
3) Involve multiple people

Front 18

Employee Involvement

Back 18

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

Front 19

3 Benefits of Employee Involvement

Back 19

- Improves problem identification
- Generates better solutions
- Pick better solutions in groups

Front 20

4 Contingencies of Employee Involvement

Back 20

- Complexity of problem/solution
- Who has the knowledge
- Commitment level needed
- Conflict generated

Front 21

Creative Process Model

Back 21

1) Preparation
2) Incubation
3) Insight
4) Verification

Front 22

Creativity

Back 22

Developing original ideas that make a social contribution

Front 23

Divergent Thinking

Back 23

Reframing the problem in a unique way and generating new approaches

Front 24

Creative Organization Conditions

Back 24

- Learning orientation
- Task significance
- Open communication
- Job security and resources

Front 25

Activities to Encourage Creativity

Back 25

- Redefine the problem
- Cross-pollination
- Free thinking