5 BA 3361 Decision Making, Groups, Teams

5 BA 3361 Decision Making, Groups, Teams - #5 Individual...

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#5 Individual Decision Making Decision Making A conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs Two factors often interfere with identifying problems Perceptual Bias- people define problems or opportunities based upon personal perceptions, values, and assumptions Improper Diagnosis Things happen too quickly People don’t have enough information Organizations are very complex Defining a problem in terms of a possible solution All individuals in every organization engage in Decision Making How decisions may actually be made Bounded Rationality - similar to Rational Model except the list of criteria and alternatives will not be exhaustive You Satisfice - seek satisfactory solutions within your resources Intuition (gut feeling), an unconscious process based upon your past experiences Heuristics - judgmental shortcuts Availability Heuristics- based upon information available to you Representative Heuristic- assessing the likelihood of an occurrence by trying to match it with a pre-existing category Unstructured Decision Making Model - Unstructured events defy orderly decision making The decision maker assesses many alternatives simultaneously One emerges as a favored choice The decision maker then moves to confirm their choice (convince themselves it is right) Problems with decision outcomes Post-decisional justification - a perceptual distortion, Decision makers tend to inflate the quality of their decision and deflate the alternatives They ignore negative supporting data and emphasize positive supporting information Escalation of Commitment– tendency to repeat a bad decision or allocate more resources to sustain it, Why? Self-justification- to save face, sometimes great cultural implications Gamblers fallacy- they believe luck is on their side
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Perceptual blinders- decision makers unconsciously screen out negative information Closing costs - the costs of ending a project may be high or unknown To avoid P/D Justification and Escalation of Commitment Separate decision makers from the decision evaluators Establish pre-set levels for abandoning a decision Establish a source of clear and systematic feedback before the decision is made The more people you involve, the less chance of escalation Three Criteria for Ethical Decision Making Utilitarianism - the greatest good for the greatest number, consistent with goals of efficiency, productivity, and high profits Focus on Rights - make decisions consistent with fundamental rights and privileges Focus on Justice - impose and enforce rules fairly and impartially, Suggestions for Managers (Robbins) Analyze the situation as thoroughly as possible Be aware of biases Combine rational analysis with intuition Don’t assume that your decision making style is the best for the particular situation Try to enhance your creativity
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This note was uploaded on 09/16/2009 for the course BA 3361 taught by Professor Davidritchey during the Spring '08 term at University of Texas at Dallas, Richardson.

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5 BA 3361 Decision Making, Groups, Teams - #5 Individual...

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