chapter 7 OB
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define decision making
conscious process of making choices among one or more alternatives with the intention fo moving toward some desired state of affairs
identify the stages of rational choice decision process
identify provlem (symptom vs. problem)
choose decision process (programmed or nonprogrammed)
choose best alternative (subjective expected utility)
what are some challenges to problem identification?
stakeholder framing (vested interest in an outcome)
perceptual defense (block out bad news)
mental models (automatically fil in blank info)
decisive leadership (makes decisions too quickly)
solution focused problems (defining problems to support your favorite solution)
how to identify problems effectively?
be aware of perceptual and diagnostic limitations
fight against pressure to look decisive
discuss situation with colleagues to get diff perspectives
how does emotions affect making choices?
emotions form preferences before we conscously evaluate the choices (emtional markers)
moods and emotions influence how we follow the decision process
we listen in on our emotions; use that as info
emotions affect all stages of decision process
what is intuitive decision making
ability to know when a problem or opportunity exists and select the best course without consious reasoning
not all emotional signals are intuitive; key is intuisition compares our observations with deeply held patterns through experience
can also use rapid unconscious analysis (action scripts) preprogrammed routines
what is one pattern of decision outcome evaluation?
: downplaying negative features of the selected alternative and emphasizing its postive features
escalation of commitment
: reapeat an apparently bad decision or allocating more resources to a failing course of action
what are the four main causes of escalation?
: saving face; high need to justify their decision
prospect theory effect
: losing someting is more dislike than winning the same amount
: perceptual defense/ screen out bad information
: costs of ending a project
how to evaluate decisions more effectively?
separate decision choosers from evaluators
est. preset level to abandon project
find sourcce of systematic and clear feedback
involve several people in the evaluation process
define employee involvement
degree to which employees influence how their work is organized and carried out
different levels and forms of involvement
what are potential involvement outcomes
better problem identification
synergy produces more/better solutions
bettwe at picking the best choice
higher decision commitment
when the higher employee motivation advised?
: when problem is new and complex
: employees have relevant knowledge beyond leader
: employees would lack commitment unless involved
rish of conflict
: norms support firm's goals; employee with employee agreement is likely
chapter 7 OB