Book Notes Test 2

Book Notes Test 2 - T EST 2 Chapter 7- Individual and Group...

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TEST 2 Chapter 7- Individual and Group Decision Making Risk propensity-willingness to gamble or to undertake risk for the possibility of reward Rational (classical) model for decision making: explains how managers should make decisions (1)ID problem 2)think of solutions 3)evaluate/select 4)implement & evaluate) <how they SHOULD make decis. Non-rational models of decision making: explains how managers make decisions. (Satisfying (satisfying but not optimal), incremental (small steps), or intuition (no thought or inference)) Seven implemental strategies (evidence based management): unfinished prototype, no brag; just facts, see it from the outside, not just for senior execs, sell it, slow the spread of bad practice, what happens when people fail? Analytics: data analysis Predictive modeling: data mining used to predict future behavior and anticipate consequences of change. Decision tree: graph of decisions and their possible consequences; it is used to create a plan to reach a goal. Groupthink: when a group strives to agree for the sake of humanity and avoid accurately assessing. Participative management: process of involving employees in setting goals, decisions, solving problems, and changes. Chauffeur-driven systems: anonymously answer questions Relaxed avoidance: manager decides to take no action in the belief that there will be no great negative consequences. Relaxed change: going for the first available decision because no decision would be negative Defensive avoidance: no good decision so you procrastinate, passes the buck, or denies the risk.
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Heuristics: strategies that simplify the process of making decisions Representative bias: small group represents whole Anchoring bias: deals with money and initial figures Escalation of commitment bias: increase committeemen to a project despite negative info about it. Organizational culture: corporate culture- system of shared beliefs and values within an organization that guide behavior. 4 types of organizational culture Clan: internal focus and values flexibility (employee focused) Adhocracy: external focus and values flexibility (risk-taking culture) Market: external focus and values stability and control (competitive) Hierarchy: internal focus and values stability and control (structured culture) 3 levels of organizational culture Observable artifacts: physical manifestatstions such as manner of dress,
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This note was uploaded on 09/01/2011 for the course MGT 3304 at Virginia Tech.

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Book Notes Test 2 - T EST 2 Chapter 7- Individual and Group...

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