Podcast
Questions and Answers
What is the first step in the Rational Decision-Making Model?
What is the first step in the Rational Decision-Making Model?
Which of the following describes 'bounded rationality'?
Which of the following describes 'bounded rationality'?
What assumption is NOT part of the Rational Decision-Making Model?
What assumption is NOT part of the Rational Decision-Making Model?
In decision-making, what does the term 'satisfice' refer to?
In decision-making, what does the term 'satisfice' refer to?
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What is the last step in the Rational Decision-Making Model?
What is the last step in the Rational Decision-Making Model?
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What is the fundamental attribution error?
What is the fundamental attribution error?
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Which statement best describes self-serving bias?
Which statement best describes self-serving bias?
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What is selective perception?
What is selective perception?
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How does the halo effect influence judgment?
How does the halo effect influence judgment?
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In the context of the human mind's processing ability, what is emphasized?
In the context of the human mind's processing ability, what is emphasized?
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Study Notes
Rational Decision-Making Model
- Steps include defining the problem, identifying criteria, allocating weights, developing alternatives, evaluating alternatives, and selecting the best option.
- Assumes decision makers have complete information, can identify all options without bias, and choose the option with the highest utility.
Bounded Rationality
- Individuals simplify complex problems into manageable parts for better understanding.
- "Satisficing" means seeking satisfactory solutions rather than optimal ones.
- Decisions are made with a limited set of conspicuous options.
Attribution Theory
- Fundamental attribution error leads to underestimating external influences while overestimating personal ones.
- Self-serving bias causes individuals to attribute successes to internal factors.
Common Shortcuts in Judging Others
- Selective perception increases focus on characteristics that stand out, filtering out irrelevant information.
- Halo effect occurs when a general impression is formed based on a single characteristic.
Intuition in Decision Making
- Intuitive decisions engage emotions and rely on holistic associations rather than conscious thought.
- Effective decision-making combines intuition with evidence and sound judgment.
Reducing Biases and Errors
- Clear goals help facilitate rational decision-making and filter irrelevant information.
- Actively seek information that contradicts personal beliefs to counteract biases like overconfidence and confirmation bias.
- Recognize that not all random events have meaningful connections; avoid creating false narratives.
Common Biases and Errors
- Overconfidence bias leads individuals, particularly those less capable, to overestimate their abilities.
- Anchoring bias occurs when initial information disproportionately influences decisions.
- Availability bias is based on readily accessible information.
- Escalation of commitment involves sticking to a decision despite evidence that it’s wrong, often due to a sense of responsibility.
- Risk aversion may lead to preferring certain outcomes over uncertain ones, with behavior influenced by stress.
- Hindsight bias falsely convinces individuals that they accurately predicted outcomes after the fact.
Individual Differences Influencing Decisions
- Factors include personality traits (e.g., conscientiousness), self-esteem levels, gender differences in rumination, mental ability, and cultural influences.
Organizational Constraints
- Constraints come from performance evaluation systems, reward systems, regulations, time pressures, and historical precedents.
Ethical Decision-Making Criteria
- Utilitarianism emphasizes outcomes and consequences of decisions.
- "Focus on rights" upholds fundamental liberties, protecting whistle-blowers and ensuring fair rule enforcement.
- Behavioral ethics studies actual behavior in ethical dilemmas, revealing discrepancies between established standards and real-life actions.
Unethical Behavior
- Lying is prevalent and undermines effective decision-making processes, contributing to ethical dilemmas in organizations.
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Description
Test your understanding of organizational behavior and perception concepts. This quiz will cover key principles and theories relevant to how individuals and groups behave in a workplace setting. Challenge yourself and see how well you grasp the subject matter.
