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Decision Making, Creativity, and Ethics (What About Ethics in Decision…
Decision Making, Creativity, and Ethics
How Do Individuals Actually Make Decisions?
Intuition
A non-conscious decision-making process created out of a person's many experiences
Judgment Shortcuts
Overconfidence Bias
Error in judgement that arises from being far too optimistic about one's own performance
Escalation of Commitment
An increased commitment to a previous decision despite clear evidence suggesting that decision may have been incorrect
Availability Bias
The tendency for people to base their judgments on information that is readily available to them rather than on complete data
Randomness Error
The tendency of individuals to believe that they can predict the outcome of random events
Confirmation Bias
The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments
Risk Aversion
The tendency to prefer a sure gain of a moderate amount over a riskier outcome even if the riskier outcome might have a higher expected payoff
Anchoring Bias
A tendency to fixate on initial Information and fail to adequately adjust for subsequent information
Hindsight Bias
The tendency to believe falsely, after the outcome of an event is actually known, that one could have accurately predicted that outcome
Bounded Rationality in Considering Alternatives
Bound Rationality refers to limitations on a person's ability to interpret, process, and act on information
Satisfice means to provide a solution that is both satisfactory and sufficient
Group Decision Making
Groupthink and Groupshift
Groupthink
Definition
A phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views
Symptoms of the groupthink phenomenon
Rationalized Resistance
Peer Pressure
Assumption of Morality
Minimized Doubts
Illusion of Invulnerability
Illusion of Unanimity
What can Managers Do to Minimize Groupthink?
Monitor Group Size
Encourage group leaders to play an impartial role
Appoint one group member to play the role of devil's advocate
Stimulate active discussion of diverse alternatives to encourage dissenting views and more objective evaluations
Groupshift
A phenomenon in which the initial positions of individual group members become exaggerated because of the interactions of the group
Group vs. the Individual
Strengths of Group Decision Making
Increased Diversity of Views
Increased Acceptance of a Solution
More Complete Information and Knowledge
Weaknesses of Group Decision Making
Conformity Pressures
Dominated by one or a few members
Time-Consuming
Ambiguous Responsibility
Effectiveness and Efficiency
Accurate
Creativity
Speed
Acceptance
Group Decision-Making Techniques
Interacting Groups
Typical groups in which members interact with each other face to face
Brainstorming
An idea-generation process that specifically encourages any and all alternatives while withholding any criticism of those alternatives
Electronic Meetings
A meeting in which members interact on computers, allowing for anonymity of comments and aggregation of votes
Nominal Group Technique
A group decision-making method in which individual members meet face to face to pool their judgments in a systematic but independent fashion
What About Ethics in Decision Making?
Factors That Influence Ethical Decision-Making Behaviour
Locus of Control
People who believe their lives are controlled by outside forces, such as luck or chance
Organizational Environment
Refers to an employee's perception of organizational expectations
Stage of Moral Development
The developmental stages that explain a person's capacity to judge what is morally right
Conventional
Preconventional
Principled
Making Ethical Decisions
Four Ethical Decision Criteria
Make Decisions Consistent with Fundamental Liberties and Privileges
Impose and enforce rules fairly and impartially to ensure justice
Utilitarianism
A decision focused on outcomes or consequences that emphasizes the greatest good for the greatest number
Care
Ethics is the study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong
Corporate Social Responsibility
An organization's responsibility to consider the impact of its decisions on society
Creativity in Organizational Decision Making
Organizational Factors That Affect Creativity
Resources
Work-Group Features
Freedom
Supervisory Encouragement
Challenge
Organizational Support
Five Organizational Factors That Block Your Creativity At Work
Expected Evaluation
External Motivators
Competition
Surveillance
Constrained Choice
Creative Potential
Creativity is the ability to produce novel and useful ideas
Three-Component Model of Creativity
Creativity Skills
Task Motivation
Expertise
How Should Decisions Be Made?
The Rational Decision-Making Process
The Rational Model
Develop Alternatives
Identify the Criteria
Evaluate the Alternatives
Define the Problem
Select the Best Alternative
Allocate weights to the criteria
Assumptions of the Model
Constant Preferences
No Time or Cost Constraints
Clear Preferences
Known Options
Maximum Payoff
Problem Clarity
Problem Is a discrepancy between some current state of affairs and some desired state
Decision is the choice made from two or more alternatives
Rational refers to choices that are consistent and value-maximizing within specifies constraints