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)
- develop/identify alternatives
- choose best alternative (subjective expected utility)
- implement choice
- evaluate choice
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
- avoid complacency
- 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?
- postdecisional justification: 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?
- self justification: saving face; high need to justify their decision
- prospect theory effect: losing someting is more dislike than winning the same amount
- perceptual blinders: perceptual defense/ screen out bad information
- closing costs: 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?
- decision structure: when problem is new and complex
- knowledge source: employees have relevant knowledge beyond leader
- decision commitment: employees would lack commitment unless involved
- rish of conflict: norms support firm's goals; employee with employee agreement is likely
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