Podcast
Questions and Answers
Which of the following is NOT an assumption of rationality in decision-making?
Which of the following is NOT an assumption of rationality in decision-making?
What does the term 'satisficing' refer to in decision-making?
What does the term 'satisficing' refer to in decision-making?
Which decision-making technique involves encouraging divergent opinions to enhance decision-making quality?
Which decision-making technique involves encouraging divergent opinions to enhance decision-making quality?
What is a key characteristic of intuitive decision-making?
What is a key characteristic of intuitive decision-making?
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What is a common risk of groupthink in decision-making processes?
What is a common risk of groupthink in decision-making processes?
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Which principle is NOT part of effective brainstorming sessions?
Which principle is NOT part of effective brainstorming sessions?
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What defines 'bounded rationality' in the context of decision-making?
What defines 'bounded rationality' in the context of decision-making?
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In evidence-based decision-making, what is emphasized as crucial?
In evidence-based decision-making, what is emphasized as crucial?
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Study Notes
Rational Decision-Making
- Rational decision-making involves choices that are logical, consistent, and maximize value.
- Assumes a fully objective and logical decision-maker.
- Assumes an unambiguous problem.
- Assumes a clear, specific goal and knowledge of all alternatives and consequences.
- Assumes decisions consistently maximize goal achievement likelihood.
- Assumes decisions are in the best organizational interest.
Bounded Rationality
- Bounded rationality is a rational, yet limited, approach.
- Information processing limits managers' ability to see all alternatives.
- Managers often "satisfice" instead of maximizing.
- Satisficing involves accepting a satisfactory, sufficient, or "good enough" solution.
- Satisficing is a choice of the first solution meeting satisfactory criteria; further information pursuit isn't justified.
Intuitive Decision-Making
- Intuitive decision-making relies on experience, feelings, and judgments.
- Intuition is a quick apprehension based on experience without conscious thought.
- Intuitive decision-making is not arbitrary, relying on years of practice and experience.
Innovative Decision-Making Techniques
- Brainstorming: a face-to-face group process to generate a wide range of alternatives.
- Evidence-based decision-making: using the best available facts and evidence.
- Rigorous debate: employing constructive conflict based on different perspectives.
- Avoiding groupthink: recognizing and combating groupthink (suppression of dissenting opinions).
Brainstorming Principles
- Stay focused on the topic.
- Encourage wild ideas.
- Defer judgment.
- Build on others' ideas.
- Hold one conversation at a time.
- Aim for quantity.
- Use visuals.
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Description
Explore the various theories of decision-making, including rational decision-making, bounded rationality, and intuitive decision-making. This quiz delves into the assumptions and characteristics of each approach to help you understand how decisions can be made effectively in a managerial context.
