Podcast
Questions and Answers
Which type of decision is concerned with daily operations in an organization?
Which type of decision is concerned with daily operations in an organization?
Programmed decisions are unique and rare, requiring careful consideration.
Programmed decisions are unique and rare, requiring careful consideration.
False
What is the first step in the Rational Decision-Making Model?
What is the first step in the Rational Decision-Making Model?
Identify the decision to be made
The approach that involves limiting options to a manageable set is known as ____.
The approach that involves limiting options to a manageable set is known as ____.
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Match the decision-making models to their descriptions:
Match the decision-making models to their descriptions:
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Which type of decisions require conscious thinking and careful consideration?
Which type of decisions require conscious thinking and careful consideration?
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Intuitive Decision-Making relies on conscious reasoning to make decisions.
Intuitive Decision-Making relies on conscious reasoning to make decisions.
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What does the term 'satisfice' refer to in decision making?
What does the term 'satisfice' refer to in decision making?
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What is the first step in the creative decision-making process?
What is the first step in the creative decision-making process?
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Hindsight bias helps individuals make more rational judgments about past decisions.
Hindsight bias helps individuals make more rational judgments about past decisions.
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What is the term used to describe the moment when a solution to a problem becomes obvious?
What is the term used to describe the moment when a solution to a problem becomes obvious?
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The tendency to rely too heavily on one piece of information during decision-making is known as _____
The tendency to rely too heavily on one piece of information during decision-making is known as _____
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What is a common result of the overconfidence bias?
What is a common result of the overconfidence bias?
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Framing bias can affect consumer choices by altering the presentation of information.
Framing bias can affect consumer choices by altering the presentation of information.
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Match the type of bias with its description:
Match the type of bias with its description:
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What happens during the incubation step of the creative decision-making process?
What happens during the incubation step of the creative decision-making process?
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What is the main purpose of having a rotating devil's advocate in a group?
What is the main purpose of having a rotating devil's advocate in a group?
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Self-censorship occurs when group members express their doubts and counter-arguments openly.
Self-censorship occurs when group members express their doubts and counter-arguments openly.
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What technique involves all members independently writing down ideas before discussing them?
What technique involves all members independently writing down ideas before discussing them?
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Illusions of __________ occur when the absence of dissent is misinterpreted as unanimous agreement.
Illusions of __________ occur when the absence of dissent is misinterpreted as unanimous agreement.
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Match the following group decision-making techniques with their descriptions:
Match the following group decision-making techniques with their descriptions:
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Which of the following is NOT a recommendation for avoiding groupthink?
Which of the following is NOT a recommendation for avoiding groupthink?
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Self-appointed mindguards protect the group from information that supports the group's assumptions.
Self-appointed mindguards protect the group from information that supports the group's assumptions.
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What is one recommended behavior that individuals should monitor to avoid groupthink?
What is one recommended behavior that individuals should monitor to avoid groupthink?
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What is a common reason for escalation of commitment?
What is a common reason for escalation of commitment?
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Escalation of commitment can occur when individuals feel it is acceptable to admit they were wrong.
Escalation of commitment can occur when individuals feel it is acceptable to admit they were wrong.
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What is one of the eight characteristics of groupthink?
What is one of the eight characteristics of groupthink?
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Groups are more effective when they can draw from a larger number of individual __________.
Groups are more effective when they can draw from a larger number of individual __________.
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Match the group decision-making disadvantages with their descriptions:
Match the group decision-making disadvantages with their descriptions:
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Which of the following is a strategy to avoid escalation of commitment?
Which of the following is a strategy to avoid escalation of commitment?
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A diverse group is likely to make worse decisions due to conflicting ideas.
A diverse group is likely to make worse decisions due to conflicting ideas.
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What phenomenon can lead to poor decision-making in groups?
What phenomenon can lead to poor decision-making in groups?
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Study Notes
Decision Making
- Decision-making involves choosing from various courses of action, including inaction.
- Decisions can be categorized as strategic, tactical, or operational.
- Strategic decisions guide organizational direction.
- Tactical decisions detail how tasks are performed.
- Operational decisions are daily tasks.
- Two types of decisions exist:
- Programmed decisions are routine, with automated responses (decision rules).
- Non-programmed decisions are unique, requiring careful consideration and thought.
Decision-Making Approaches
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Rational Decision-Making Model: A systematic approach that aims to maximize decision quality. Steps include:
- Identifying the decision.
- Defining criteria.
- Weighing criteria.
- Generating options.
- Evaluating alternatives.
- Choosing the best option.
- Implementing the decision.
- Evaluating the outcome.
- Bounded Rationality Decision-Making Model: Acknowledges that decision-makers are often limited in their ability to gather complete information and consider every possible option. They tend to "satisfice," accepting the first option that meets minimum requirements.
- Intuitive Decision-Making Model: Decision-making based on unconscious patterns and prior experience. Experts recognize cues to evaluate potential outcomes.
Faulty Decision-Making
- Overconfidence Bias: Overestimating one's ability to predict future events.
- Hindsight Bias: Mistaking past mistakes as obvious after they've occurred.
- Anchoring Bias: Overreliance on an initial piece of information.
- Framing Bias: Decisions being influenced by how information is presented.
- Escalation of Commitment: Continuing a failing course of action despite negative outcomes.
Creative Decision-Making
- Creative decision-making uses imaginative ideas to solve problems.
- Five steps involve:
- Problem identification.
- Immersion.
- Incubation.
- Illumination.
- Verification and application.
Group Decision-Making
- Advantages: Drawing on diverse perspectives, enhancing creativity, and deeper member investment in implementation.
- Disadvantages: Can be slower, prone to process losses (coordination difficulties, social loafing), and susceptible to flaws like groupthink (where pressure to conform stifles independent thinking).
- Techniques for better group decision-making include:
- Nominal group technique.
- Delphi technique.
- Majority rule.
- Consensus.
- Group decision support systems (GDSS).
Project Premortem
- A method to anticipate potential problems for a project by simulating a failed project and exploring the causes.
Decision-Making Methods
- Decision Trees: Visual diagrams to guide step-by-step decision-making.
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Description
This quiz explores the mechanics of decision making, including strategic, tactical, and operational decisions. It also outlines various decision-making models such as the Rational Decision-Making Model and Bounded Rationality. Test your understanding of how to make effective choices in different scenarios.
