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Organizational Behaviour > Decision Making > Flashcards

Flashcards in Decision Making Deck (22)
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1
Q

Rational Decision

A

Refers to choices that are consistent and value-maximizing within specified constraints.

2
Q

Bounded Rationality

A

Limitations on one’s ability to interpret, process and act on information.

3
Q

Satisficing

A

To provide a solution that is both satisfactory and sufficient. It is also the identification of a good enough solution or the first acceptable solution rather than the optimal one.

4
Q

Intuition or intuitive decision making

A

An unconscious process created out of a person’s many experiences

5
Q

Overconfidence Bias

A

An error in jugement that arises from being far too optimistic about one’s own performance.

6
Q

Anchoring Bias

A

A tendency to fixate on initial information from which one then fails to adequately adjust for subsequent information.

7
Q

Confirmation bias

A

The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgements.

8
Q

Availability bias

A

The tendency for people to base their judgements on information that is readily available to them rather than complete data.

9
Q

Escalation of commitment

A

An increased commitment to a previous decision despite negative information.

10
Q

Randomness error

A

The tendency for individuals to believe that they can predict the outcome of random events

11
Q

Risk aversion

A

The tendency to prefer a sure gain of a moderate amount of risk over a riskier outcome, even if the riskier outcome might have a higher expected payoff.

12
Q

Hindsight bias

A

The tendency to believe falsely, after an outcome of an event is actually known, that one could have accurately predicted that outcome.

13
Q

Groupthink

A

A phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views.

14
Q

Group shift

A

A phenomenon in which the initial positions of individual group members become exaggerated because of the interactions of the group.

15
Q

Three-stage model of creativity

A

The proposition that creativity involves three stages : causes (creative potential and creative environement), creative behaviour, and creative outcomes
(innovation–> novelty and usefulness)

16
Q

Innovation

A

Innovation brings about the novelty and the usefulness of a creative outcome.

17
Q

Ethics

A

The study of moral values or principles that guide our behaviour and inform us wether actions are right or wrong.

18
Q

Utilitarian criterion

A

A decision focused on outcomes or consequences that emphasizes the greatest good for the greatest number

19
Q

Rights criterion

A

Any action against fundamental rights is not good.

20
Q

Justice criterion

A

Any action against the law is not good. People in organizations are mainly focused with that criterion.

21
Q

Care criterion

A

In a group people care for one another and have interpersonal relationships, which should be preserved at all costs. It is important for this criterion that people understand the value of a group.

22
Q

Corporate social responsibility

A

An organization’s responsibility to consider the impact of its decisions on society.