What is Decision Making?
Decision making is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired goal or end product.
Rational Decision Making Model (Diagram)
What is Bounded Rationality?
processing limited/imperfect information and selecting a decision that's good enough (satisficing)) rather than optimal.
What is Implicit Favorite?
The decision maker's preferred alternative against which all other alternatives are judge.
What is Satisficing?
Selecting a solution that is satisfactory, or "good enough" rather than optimal or "the best".
What is Intuition?
Ability to "just know" when a problem or opportunity exists and select the best course of action without conscious reasoning.
- Intuition as emotional experience
- - Gut feelings are emotional signals
- Intuition as rapid unconscious analysis
- - Uses action scripts
What is Scenario Planning?
A systematic process of thinking about alternative futures, and what the organization should do to anticipate and react to those environments.
Developing different alternatives to a problem needing solution; asking, "What if?'
However, sometimes planning becomes a substitute for action!
What is Postdecisional Justification?
The tendency to support the decision we made rather than other alternatives we considered through rationalizing or upgrading the quality of the decision made.
What is Escalation of Commitment?
The tendency to repeat an apparently bad decision or allocate more resources to a failing course of action.
When we put more effect and resources into a failing decision or course of action, e.g., continuing to buy a stock on its way down.
What is Employee Involvement?
The degree to which employees influence how their work is organized and carried out.
- - Level of control over decision making
- - Different levels and forms of involvement, e.g., Can ask an employee her opinion in passing or can have formal labor-mang partnership, or Codetermination.
- - Group decision-making is a slower process but yields a greater acceptance of the decision made.
What are the benefits of employee involvement?
- - Better problem identification
- - More/better solutions generated
- - Most likely to select the best alternative
- - Stronger commitment to the decision
Creative Process Model (Diagram)
What are the Characteristics of Creative People?
- - Above average intelligence
- - Persistence
- - Relevant knowledge and experience
- - Inventive thinking style: Divergent Thinking & Convergent Thinking
What is Divergent Thinking?
Thinking that goes away from normative/usual thinking.
What is Convergent Thinking?
Thinking that is consistent with normative/usual thinking.
What are Creative Work Environments?
- Learning orientation
- - Encourage experimentation
- - Tolerate mistakes
- Intrinsically motivating work
- - Task significance, autonomy, feedback
Open Communication and sufficient resources
Team competition and time pressure have complex effect on creativity.