The tendency to invest additional resources in an apparently failing course of

The tendency to invest additional resources in an

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- The tendency to invest additional resources in an apparently failing course of action buying more faulty computers to prove that they were a good idea Hindsight – The tendency to review the decision-making process to find what was done right or wrong knew-it-all-along effect; tendency to assume, after the fact, that we knew all along what the outcome of a decision would be Decision makers in a good mood can overestimate the likelihood of good events and use shortcut decision strategies People in a positive mood tend to remember positive information Those in a negative mood remember negative information Positive mood promotes more creative, intuitive decision making Perfectly rational decision making contrasted with bounded rationality: Why use groups to make organizational decisions? Groups are more vigilant than individuals are – more people are scanning the environment Groups can generate more ideas than individuals can Groups can evaluate ideas better than individuals can Diffusion of Responsibility – The ability of group members to share the burden of the negative consequences of a poor decision people aren’t singled out for punishment, and everyone shares part of the burden Disadvantages of Group Decision Making: Time – work slower than individuals Conflict Domination – meetings dominated by one person Groupthink Groupthink – The capacity for group pressure to damage the mental efficiency, reality testing, and moral judgement of decision-making groups Groupthink symptoms:
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- Illusion of invulnerability - overconfident - Rationalization - improbable excuses given - Illusion of Morality - perceive the decisions are being morally correct - Stereotypes of Outsiders - unfavourable stereotypes of outsiders - Pressure for Conformity - members pressured to conform to the group’s views - Self-Censorship - avoid voicing opinions against the group - Illusion of Unanimity - perceive unanimous support exists for their chosen course of action - Mindguards - some adopt role of “protecting” group from info that goes against decisions Risky Shift – The tendency for groups to make riskier decisions than the average risk initially advocated by their individual members Conservative Shift – The tendency for groups to make less risky decisions than the average risk initially advocated by their individual members The dynamics of risky and conservative shifts for two groups: Groups must stimulate and manage controversy: incorporate members with diverse ideas and backgrounds form subgroups to “tear the problem apart” establish norms that favour the open sharing of information These tactics must be managed careful to ensure that open conflict does not occur. A devil’ advocate can be used as well to stimulate controversy.
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  • Fall '10
  • L.Barclay

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