Podcast
Questions and Answers
In general, what happens as the group size increases?
In general, what happens as the group size increases?
- Lower the quality of their decisions. (correct)
- Faster they make decisions.
- Faster they come to consensus.
- Higher the quality of their decisions.
According to Harvard Business Review, what is driving the increase in CEO firings due to ethical lapses?
According to Harvard Business Review, what is driving the increase in CEO firings due to ethical lapses?
- CEO firings due to ethical lapses. (correct)
- Job applicants relocating from other cities.
- Closing of stores on small town squares.
- Donations to the ACLU.
Between 2008 and 2018, the ________ quadrupled.
Between 2008 and 2018, the ________ quadrupled.
number of CEOs fired for ethical lapses
Concerns about ethical behavior have led many companies to appoint a(n) ________.
Concerns about ethical behavior have led many companies to appoint a(n) ________.
To make picking orders more efficient, Amazon uses ________.
To make picking orders more efficient, Amazon uses ________.
How is artificial intelligence defined?
How is artificial intelligence defined?
"All birds lay eggs. A swan is a bird. Therefore, a swan lays eggs." This passage is an example of:
"All birds lay eggs. A swan is a bird. Therefore, a swan lays eggs." This passage is an example of:
What would you recommend to Kirvo to help with his business needs?
What would you recommend to Kirvo to help with his business needs?
Rural Regional Hospital uses ________.
Rural Regional Hospital uses ________.
Which statement truthfully explains how AI benefits businesses?
Which statement truthfully explains how AI benefits businesses?
What is the greatest challenge of implementing AI in businesses?
What is the greatest challenge of implementing AI in businesses?
What dangers did Stephen Hawking warn about?
What dangers did Stephen Hawking warn about?
In which scenario do firms see the greatest performance increases?
In which scenario do firms see the greatest performance increases?
Delfina employs the ________ bias to decide which people might be customers.
Delfina employs the ________ bias to decide which people might be customers.
Which of the following portrays Juul's attempt at exercising evidence-based management?
Which of the following portrays Juul's attempt at exercising evidence-based management?
What decision-making style should Juul's CEO utilize?
What decision-making style should Juul's CEO utilize?
What bias does law enforcement likely suffer from regarding Juul?
What bias does law enforcement likely suffer from regarding Juul?
What barriers affect Juul's CEO's ability to make a rational decision?
What barriers affect Juul's CEO's ability to make a rational decision?
What question should Ryan be most prepared to respond to in his interview?
What question should Ryan be most prepared to respond to in his interview?
If Ming-Na surveys 25 customers to determine if they like the coffee, she will most likely suffer from confirmation bias.
If Ming-Na surveys 25 customers to determine if they like the coffee, she will most likely suffer from confirmation bias.
Decision making is the process of identifying and choosing alternative courses of action.
Decision making is the process of identifying and choosing alternative courses of action.
When evaluating the alternatives of a decision, managers need to base decisions strictly on cost, quality, and feasibility.
When evaluating the alternatives of a decision, managers need to base decisions strictly on cost, quality, and feasibility.
With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal.
With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal.
Managers with a low tolerance for ambiguity and an orientation toward task and technical concerns have a behavioral decision-making style.
Managers with a low tolerance for ambiguity and an orientation toward task and technical concerns have a behavioral decision-making style.
What would you advise Annie to do first in her decision-making process?
What would you advise Annie to do first in her decision-making process?
What is a decision?
What is a decision?
What model is Kade applying in his decision-making process?
What model is Kade applying in his decision-making process?
Haya is at which stage of the decision-making process?
Haya is at which stage of the decision-making process?
What should Greta probably perform to turn the problem around at the factory?
What should Greta probably perform to turn the problem around at the factory?
To improve the likelihood of making ethical decisions, you could:
To improve the likelihood of making ethical decisions, you could:
What question is Akio asking himself regarding his alternatives?
What question is Akio asking himself regarding his alternatives?
In the fourth and final step, what does Milena need to do?
In the fourth and final step, what does Milena need to do?
The ________ model assumes managers will make logical decisions that are the optimal means of furthering the organization's best interests.
The ________ model assumes managers will make logical decisions that are the optimal means of furthering the organization's best interests.
When organizing decisions into categories, which type requires the most time and attention?
When organizing decisions into categories, which type requires the most time and attention?
________ are difficulties that inhibit the achievement of goals.
________ are difficulties that inhibit the achievement of goals.
Seizing the opportunity to partner with a trendy restaurant could:
Seizing the opportunity to partner with a trendy restaurant could:
Karima's decision to open a restaurant feels 'right' and is uncertain. She is enacting:
Karima's decision to open a restaurant feels 'right' and is uncertain. She is enacting:
The idea that decision makers' ability to be rational is limited by constraints is called ________.
The idea that decision makers' ability to be rational is limited by constraints is called ________.
Santiago will likely encounter ________ due to his decision-making context.
Santiago will likely encounter ________ due to his decision-making context.
Alonso follows the satisficing model by:
Alonso follows the satisficing model by:
The limitations affecting LaShawn and Nathan's decision are hindrances to:
The limitations affecting LaShawn and Nathan's decision are hindrances to:
Scott was acting on ________ that snow removal might be a good addition to the service offerings.
Scott was acting on ________ that snow removal might be a good addition to the service offerings.
After a week as an executive assistant, Christopher was dismayed at the ________ shown by his boss.
After a week as an executive assistant, Christopher was dismayed at the ________ shown by his boss.
Nonrational decision-making models, such as ________, describe how managers sometimes make decisions.
Nonrational decision-making models, such as ________, describe how managers sometimes make decisions.
Audrey is relying on ________ to demonstrate that managers need to think and act responsively.
Audrey is relying on ________ to demonstrate that managers need to think and act responsively.
Why is it hard to bring the best evidence to bear on decisions?
Why is it hard to bring the best evidence to bear on decisions?
Reggie's Records uses time-series forecasts to predict future sales. What is it using?
Reggie's Records uses time-series forecasts to predict future sales. What is it using?
________ is a technique used to predict future outcomes based on historical data.
________ is a technique used to predict future outcomes based on historical data.
Predictive Health purchased sophisticated analysis software to leverage the power of:
Predictive Health purchased sophisticated analysis software to leverage the power of:
How does Dominique assign her employees' schedules?
How does Dominique assign her employees' schedules?
A person's ________ reflects the combination of how he or she perceives and responds to information.
A person's ________ reflects the combination of how he or she perceives and responds to information.
________ is the process of examining data sets in order to draw conclusions about the information they contain.
________ is the process of examining data sets in order to draw conclusions about the information they contain.
Jordan probably has a ________ tolerance for ambiguity.
Jordan probably has a ________ tolerance for ambiguity.
DeAndre probably has a decision-making style that indicates he:
DeAndre probably has a decision-making style that indicates he:
Angelina's decision-making style is best described as:
Angelina's decision-making style is best described as:
Saburo likely has a(n) ________ decision-making style.
Saburo likely has a(n) ________ decision-making style.
Max most often uses a(n) ________ decision-making style.
Max most often uses a(n) ________ decision-making style.
Warrick would probably be ideally suited for the position of:
Warrick would probably be ideally suited for the position of:
What is a decision tree?
What is a decision tree?
Managers should utilize ________ when confronted with a decision.
Managers should utilize ________ when confronted with a decision.
When Zion wrote the football coach's contract for over two million dollars and included targets for conference wins and bowl appearances, he was trying to avoid what type of bias?
When Zion wrote the football coach's contract for over two million dollars and included targets for conference wins and bowl appearances, he was trying to avoid what type of bias?
Trevon's hotel needs updates to secure a corporate lodging agreement. Given the time constraints, which decision-making model will he likely employ?
Trevon's hotel needs updates to secure a corporate lodging agreement. Given the time constraints, which decision-making model will he likely employ?
Isaiah is doing what his boss wants but at a slower pace. What principle is he applying?
Isaiah is doing what his boss wants but at a slower pace. What principle is he applying?
Fatma is convinced her business idea will succeed to the point of ignoring caution. What type of bias might she be experiencing?
Fatma is convinced her business idea will succeed to the point of ignoring caution. What type of bias might she be experiencing?
Seamus is experiencing stress and anxiety, which causes him to miss important details. Concerned about his review, what might the district manager show as a bias?
Seamus is experiencing stress and anxiety, which causes him to miss important details. Concerned about his review, what might the district manager show as a bias?
Ichiro, an on-site coordinator, tolerates ambiguity and seeks new ideas. How is his decision-making style best described?
Ichiro, an on-site coordinator, tolerates ambiguity and seeks new ideas. How is his decision-making style best described?
Tova uses three factors when deciding which employees will take on a project. What is she using?
Tova uses three factors when deciding which employees will take on a project. What is she using?
What bias causes decisions to be influenced by initial figures?
What bias causes decisions to be influenced by initial figures?
If Byron is experiencing confirmation bias, which of the following is true?
If Byron is experiencing confirmation bias, which of the following is true?
Nalani experienced bias when she didn't want to hire Laila, thinking she lacked training like Logan. What type of bias is this?
Nalani experienced bias when she didn't want to hire Laila, thinking she lacked training like Logan. What type of bias is this?
People who seek information to support their views while discounting contradictory data suffer from which bias?
People who seek information to support their views while discounting contradictory data suffer from which bias?
Azhar feels too much money has been spent to abandon a training program. What bias does he experience?
Azhar feels too much money has been spent to abandon a training program. What bias does he experience?
James and En-Chi do not want to reduce their house's selling price after listing it. What bias are they experiencing?
James and En-Chi do not want to reduce their house's selling price after listing it. What bias are they experiencing?
Julieta believes she is an exceptional singer. If she has overconfidence bias, what is likely to occur?
Julieta believes she is an exceptional singer. If she has overconfidence bias, what is likely to occur?
Republican and Democratic advertisements represent competing portrayals of Charlie Williams. This is an example of what bias?
Republican and Democratic advertisements represent competing portrayals of Charlie Williams. This is an example of what bias?
Nikos becomes more committed to a problematic used copier. What bias is he likely facing?
Nikos becomes more committed to a problematic used copier. What bias is he likely facing?
Which bias causes people to see events as more predictable than they actually are?
Which bias causes people to see events as more predictable than they actually are?
The advantages of __________ include greater knowledge, different perspectives, and deeper commitment.
The advantages of __________ include greater knowledge, different perspectives, and deeper commitment.
What is a disadvantage of group decision-making?
What is a disadvantage of group decision-making?
Evona's team agreed with her without research. What practice are they engaging in?
Evona's team agreed with her without research. What practice are they engaging in?
Satisficing is characterized by a group's ability to settle for decisions that are what?
Satisficing is characterized by a group's ability to settle for decisions that are what?
Carson Contractors focuses on construction techniques that minimize germ spread as a response to which goal?
Carson Contractors focuses on construction techniques that minimize germ spread as a response to which goal?
Which statement reflects research findings about group decision-making?
Which statement reflects research findings about group decision-making?
Which of the following lists shows ways to improve group problem-solving?
Which of the following lists shows ways to improve group problem-solving?
Zoe should consider using a group to develop a plan if it will what?
Zoe should consider using a group to develop a plan if it will what?
Which technique helps groups generate multiple ideas for solving problems?
Which technique helps groups generate multiple ideas for solving problems?
What is Elijah expected to do as the devil's advocate in the group?
What is Elijah expected to do as the devil's advocate in the group?
Ronin believes the ________ method saves time by exploring opposing options up front.
Ronin believes the ________ method saves time by exploring opposing options up front.
During a job interview, how can you show your decision-making skills?
During a job interview, how can you show your decision-making skills?
Reflecting on past decisions prepares you for future decisions by doing what?
Reflecting on past decisions prepares you for future decisions by doing what?
Is Jenna, the owner of Terrific Tots Preschool, considering families' feelings by deciding to open later?
Is Jenna, the owner of Terrific Tots Preschool, considering families' feelings by deciding to open later?
What decision-making style does Raven use, given her problem-solving process?
What decision-making style does Raven use, given her problem-solving process?
Sakura feels constrained by her limited budget for a marketing campaign. What is she affected by?
Sakura feels constrained by her limited budget for a marketing campaign. What is she affected by?
Hunter continues to invest in a problematic project. What type of bias might he be suffering from?
Hunter continues to invest in a problematic project. What type of bias might he be suffering from?
Study Notes
Decision-Making Processes
- Annie should first list the decisions she needs to make to establish a clear path forward.
- A decision is defined as a choice made from among available alternatives.
- Kade follows the rational model of decision making by identifying problems, brainstorming solutions, evaluating options, and implementing his decision.
- Haya is generating alternative solutions to combat competition in the car dealership market.
Problem Diagnosis and Ethical Considerations
- Greta, as a quality control inspector, should perform a diagnosis to tackle issues of contamination in baby food batches.
- Practicing mindfulness can enhance the likelihood of making ethical decisions and improving interpersonal relationships.
- Akio assesses the feasibility of each alternative to solve his company's problems.
Decision-Making Models
- Milena exemplifies the rational decision-making process by identifying problems, developing alternatives, evaluating solutions, and implementing a chosen compensation plan.
- The classical model assumes managers will make logical, optimal decisions for the organization's well-being.
- Strategic decisions require the most time and attention compared to quick or ethical decisions.
Challenges in Decision-Making
- Problems inhibit goal achievement, like lack of parking hurting a restaurant's success.
- Luana's opportunity with a trendy restaurant could significantly accelerate her business growth.
- Decisions can be driven by nonrational models, where emotional judgement plays a larger role.
Bounded Rationality and Intuition
- Bounded rationality suggests that decision-making is constrained by various limitations, like complexity and cognitive capacity.
- Santiago's complex decision about the factory's future is hindered by bounded rationality, considering multiple factors like location and demand.
- Following the satisficing model, Alonso chooses invitations without extensive research to balance quality and efficiency.
Decision-Making Style and Role Suitability
- Insight into an individual's decision-making style enhances understanding of how they process information and react to challenges.
- Individuals like Jordan may exhibit a low tolerance for ambiguity, preferring structured environments.
- Angelina's conceptual decision-making style allows her to engage creatively and consider broad options.
Ethics in Decision-Making
- An ethics officer is suited for ensuring that company decisions are ethical and lawful, particularly during dilemmas.
- Bagley's ethical decision tree assists in assessing the legality and ethics of actions within a company to uphold shareholder value.
Bias Awareness
- Zion's structuring of a coach's contract helps avoid escalation of commitment bias by linking bonuses to measurable outcomes.
- Trevon utilizes the satisficing model due to time constraints, which emphasizes finding satisfactory solutions rather than optimal ones.
Focus on Data and Analytics
- Data analytics involves analyzing data sets to draw conclusions and forecast future trends.
- Predictive analytics utilizes historical data patterns to make informed decisions about future outcomes.
- Big data is essential for organizations, like Predictive Health, that exceed conventional data management capabilities.
Overconfidence in Decision-Making
- Fatma illustrates overconfidence bias by disregarding professional advice and investing heavily in her business idea without sufficient research.### Overconfidence and Cognitive Biases
- Overconfidence: A tendency to overestimate one's own abilities or performance.
- Example: Julieta, believing she is an outstanding singer, auditions but fails to secure a role.
Hindsight Bias
- Hindsight Bias: The inclination to see events as having been predictable after they have already happened.
- Impacts decision-making by causing individuals to believe they could have foreseen outcomes.
Framing Bias
- Framing: The way information is presented affects decision-making.
- Political advertisements illustrate this by portraying candidates in contrasting lights to sway voter opinions.
Escalation of Commitment
- Escalation of Commitment: Continued investment in a failing strategy due to previous investments.
- Example: Nikos continues to support a malfunctioning copier due to prior commitments.
Managerial Decision-Making
- Analytical Decision-Making Style: Ichiro's approach of seeking contradictory opinions and tolerating ambiguity to make informed decisions.
- Heuristics: Tova simplifies decision-making by using key factors like employee attitude and knowledge.
Cognitive Biases in Decision-Making
- Anchoring and Adjustment Bias: Initial figures influence decision-making; e.g., sellers setting a high price based on arbitrary values.
- Confirmation Bias: Seeking information that aligns with existing beliefs, such as Byron underestimating traffic issues after a schedule change.
Representativeness Bias
- Representativeness Bias: Judging individuals based on stereotypes or past experiences.
- Nalani's reluctance to hire Laila due to perceived inadequate training exemplifies this bias.
Group Dynamics in Decision-Making
- Advantages of Group Decision-Making: Increased knowledge pool and diverse perspectives lead to better decisions.
- Disadvantages: Groupthink, goal displacement, and satisficing hinder effective problem-solving.
- Groupthink: Evona’s team exhibits groupthink by agreeing with her without critical analysis.
Creativity and Problem-Solving Techniques
- Brainstorming: A technique for generating various ideas during group problem-solving.
- Brainwriting: Encourages uninterrupted idea flow, limiting social cues to foster creativity.
Ethical Considerations in Business
- Ethics Officer: An appointed individual responsible for guiding ethical practices within organizations.
- Increase in CEO Firings: A notable rise in the number of CEOs dismissed for ethical breaches from 2008 to 2018.
Technological Integration in Business
- Artificial Intelligence (AI): Defined as the ability of machines to perform tasks usually requiring human intelligence.
- Robotic Process Automation: Employed by Rural Regional Hospital for efficient routing and record maintenance.
Recommendations for Businesses
- AI enhances decision-making capabilities and improves business efficiencies.
Important Terms
- Sunk-Cost Bias: Maintaining commitment to a failing project due to prior investments.
- Bounded Rationality: Decision-making affected by limited resources and time constraints.
- Dialectic Method: Advocating conflicting ideas to examine multiple perspectives before arriving at a decision.### Advertising and AI
- Implementation poses the largest challenge in AI integration within advertising sectors.
- Predictive analytics utilizes algorithms to analyze past sales trends for improvement.
Concerns Regarding AI
- Stephen Hawking highlighted risks posed by weaponized AI, including autonomous weapons and deep fake technology.
Performance and Workforce Dynamics
- The most significant performance improvements occur when humans use leadership and teamwork, enhanced by machines for speed.
Decision-Making Biases
- Delfina employs categorical thinking to identify potential customers at trade shows by analyzing appearance and behavior.
- Confirmation bias affects law enforcement, as they selectively gather data that supports their predetermined beliefs about Juul's legality.
Evidence-Based Management
- Juul demonstrates evidence-based management by referencing over 110 scientific studies in support of its products.
CEO Decision-Making Style
- A conceptual decision-making style is necessary for Juul's CEO, considering the need for tolerance towards ambiguity and social concerns.
Barriers to Rational Decision-Making
- Juul's CEO faces bounded rationality due to imperfect information and conflicting objectives impacting decision-making processes.
Career-Related Decision-Making
- Candidates should be prepared to explain their decision-making processes during job interviews, highlighting experiences and methodologies.
Confirmation Bias and Survey Results
- A survey of only 25 customers from a larger pool does not inherently indicate confirmation bias if conducted properly.
General Decision-Making Principles
- Decision-making encompasses identifying and selecting from various alternative actions.
- Evaluating alternatives requires considering broader criteria beyond just cost, quality, and feasibility, emphasizing a more nuanced approach.
- Satisficing involves searching for satisfactory options rather than the absolute best, reflecting a practical decision-making strategy.
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Description
Explore key decision-making strategies with Annie as she navigates post-college life choices. This chapter focuses on organizing, evaluating, and prioritizing decisions to make informed choices for her future.
