Questions and Answers
What is the conscious process involved in making choices among alternatives called?
Which of the following is NOT a reason why people often fail to apply rational choice decision making?
What role do emotions and intuition play in decision making?
Which of the following factors does NOT support creativity in the workplace?
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What was one consequence of the decision making failures at Target Canada?
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Which of the following is a contingency that affects the optimal level of employee involvement?
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Which aspect is crucial for effective scenario planning in decision making?
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What type of decision making can be negatively affected by biases and self-concept?
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What behavior is associated with Prospect Theory when faced with losses?
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What is one recommended way to improve decision evaluation?
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Which of the following is a potential downside of employee involvement in decision-making?
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What should be avoided when evaluating a decision to ensure objectivity?
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Why might a stop-loss be created in decision-making?
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How does employee involvement contribute to better outcomes?
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Which of the following is NOT a benefit of involving several people in the decision evaluation process?
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What effect can sunk costs have on decision-making?
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What is a potential risk when decision-making processes become too complicated?
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What is the term used to describe the tendency to interpret information in a way that confirms existing beliefs?
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What strategy helps prevent escalating commitment to a bad decision?
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Which of the following is NOT one of the five challenges in problem identification?
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What does 'divine discontent' promote in decision-making?
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Which factor contributes to the escalation of commitment?
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What should be done to identify root causes of problems effectively?
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What is a common bias seen after a decision has been made?
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Which approach is recommended to make choices more effectively?
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Study Notes
Decision Making Overview
- Involves a conscious process of choosing among alternatives to achieve a desired outcome.
- Factors complicating decision making include limited information, cognitive ability, time constraints, and political influences.
Rational Choice Decision Making
- Consists of identifying problems, evaluating alternatives, and assessing outcomes.
- Emphasizes systematic evaluation against relevant factors rather than hasty decisions.
Decision Making Blunders: Target Canada Case
- Target Canada suffered major financial losses leading to layoffs and a tarnished reputation due to poor decision making.
Challenges in Problem Identification
- Problems often arise from ambiguous or conflicting information.
- Common challenges include:
- Solution-focused mindset
- Decisive leadership styles
- Stakeholder framing
- Perceptual defense
- Mental models
Effective Problem Identification Strategies
- Recognize and confront biases in problem identification.
- Encourage open discussions and resist the need for premature conclusions.
- Adopt a “divine discontent” norm to avoid complacency.
- Engage in iterative questioning to uncover root causes.
Effective Decision-Making Techniques
- Evaluate alternatives rigorously and avoid being overly decisive.
- Reassess decisions when emotional states fluctuate.
- Utilize scenario planning to foresee potential outcomes.
Decision Evaluation Problems
- Biases such as confirmation bias can lead to flawed evaluations.
- Common issues include:
- Underestimating negative outcomes of chosen options.
- Escalation of commitment, where individuals continue investing in poor decisions due to:
- Self-justification effects
- Self-enhancement effects
- Prospect theory effects
- Sunk cost effects
Managing Escalation of Commitment
- Self-justification: Ignoring problems to uphold initial decisions.
- Self-enhancement: Acknowledging issues while maintaining a favorable self-view.
- Prospect theory: Increased risk-taking when losses are evident.
- Sunk costs: Feeling reluctant to abandon efforts due to prior investments.
Improving Decision Evaluation
- Segregate decision makers from evaluators to ensure unbiased feedback.
- Involve multiple perspectives in the evaluation process.
- Implement stop-loss strategies to limit losses.
- Actively seek constructive feedback across social and factual domains.
Employee Involvement in Decision Making
- Enhances problem identification and alternative generation.
- Can, however, complicate decision-making processes, delay action, and create conflict if not managed properly.
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Description
This quiz explores the key concepts of decision making as outlined in Chapter 7 of MGMT 1500. Participants will delve into rational choice decision making, the impact of emotions and intuition, and various factors influencing decisions in the workplace. Enhance your understanding of how decision outcomes are evaluated and the common pitfalls of rational thinking.
