How are decisions actually made in how are decisions

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Unformatted text preview: d models that extract the essential features from problems without capturing all their complexity. How Are Decisions Actually Made in How Are Decisions Actually Made in Organizations? Organizations? How/Why problems are Identified – Visibility over importance of problem • Attention-catching, high profile problems • Desire to “solve problems” – Self-interest (if problem concerns decision maker) Alternative Development – Satisficing: seeking the first alternative that solves problem – Engaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect Common Biases and Errors Common Biases and Errors Common Overconfidence Bias Anchoring Bias Confirmation Bias Availability Bias Representative Bias Winner’s Curse Escalation of Commitment Randomness Error Hindsight Bias Common Biases and Errors Common Biases and Errors Common Overconfidence Bias – Believing too much in our own ability to make good decisions Anchoring Bias – Using early, first received information as the basis for making subsequent judgments Confirmation Bias – Using only the facts that support our decision Common Biases and Errors Common Biases and Errors Common Availability Bias – Using information that is most readily at hand • Recent • Vivid Representative Bias – “Mixing apples with oranges” – Assessing the likelihood of an occurrence by trying to match it with a preexisting category using...
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This document was uploaded on 01/29/2014.

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