Compare and contrast the rational model of decision making, Simon's normative model, and the garbage can model. The rational decision-making model consists of identifying the problem, generating alternative solutions, evaluating and selecting a solution, and implementing and evaluating the solution. Research indicates that decision makers do not follow the series of steps outlined in the rational model. Simon's normative model is guided by a decision maker's bounded rationality. Bounded rationality means that decision makers are bounded or restricted by a variety of constraints when making decisions. The normative model suggests that decision making is characterized by (a) limited information processing, (b) the use of judgmental heuristics, and (c) satisficing. The garbage can model is based on the assumption that decision making is sloppy and haphazard. Decisions result from an interaction between four independent streams of events: problems, solutions, participants, and choice opportunities.
Discuss eight decision-making biases. Decision-making bias occurs as the result of using judgmental heuristics. The eight biases that affect decision making include: (1) availability, (2) representativeness, (3) confirmation, (4) anchoring, (5) overconfidence, (6) hindsight, (7) framing, and (8) escalation of commitment.
Discuss knowledge management and techniques used by companies to increase knowledge sharing. Knowledge management involves the implementation of systems and practices that increase the sharing of knowledge and information throughout an organization. There are two types of knowledge that impact the quality of decisions: tacit knowledge and explicit knowledge. Organizations use computer systems to share explicit knowledge. Tacit knowledge is shared by observing, participating, or working with experts or coaches. Mentoring, informal networking, meetings, and design of office space also influence knowledge sharing.
Explain the model of decision-making styles. The model of decision-making styles is based on the idea that styles vary along two different dimensions: value orientation and tolerance for ambiguity. When these two dimensions are combined, they form four styles of decision making: directive, analytical, conceptual, and behavioral. People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns. Analytics have a higher tolerance for ambiguity and are characterized by a tendency to overanalyze a situation. People with a conceptual style have a high threshold for ambiguity and tend to focus on people or social aspects of a work situation. This behavioral style is the most people oriented of the four styles.
Explain the model of intuition and the ethical decision tree. Intuition consists of insight or knowledge that is obtained without the use of rational thought or logical inference. There are two types of intuition: holistic hunches and automated experiences. In turn, there are two sources of intuition: expertise, which consists of an individual's combined explicit and tacit knowledge regarding an object, person, situation, or decision opportunity; and feelings. Intuition is based on the interaction between one's expertise and feelings in a given situation. The ethical decision tree presents a structured approach for making ethical decisions. Managers work through the tree by answering a series of questions and the process leads to a recommended decision.
Summarize the pros and cons of involving groups in the decision-making process. There are both pros and cons to involving groups in the decision-making process. Although research shows that groups typically outperform the average individual, there are five important issues to consider when using groups to make decisions. (a) Groups are less efficient than individuals. (b) A group's overconfidence can fuel groupthink. (c) Decision quality is negatively related to group size. (d) Groups are more accurate when they know a great deal about the issues at hand and when the leader possesses the ability to effectively evaluate the group members' opinions and judgments. (e) The composition of a group affects its decision-making processes and performance. In the final analysis, managers are encouraged to use a contingency approach when determining whether to include others in the decision-making process.
Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making. Group problem-solving techniques facilitate better decision making within groups. Brainstorming is used to help groups generate multiple ideas and alternatives for solving problems. The nominal group technique assists groups both to generate ideas and to evaluate and select solutions. The Delphi technique is a group process that anonymously generates ideas or judgments from physically dispersed experts. The purpose of computer-aided decision making is to reduce consensus roadblocks while collecting more information in a shorter period of time.
Describe the stages of the creative process. Creativity is defined as the process of using imagination and skill to develop a new or unique product, object, process, or thought. There are five stages of the creative process: preparation, concentration, incubation, illumination, and verification.
Explain the model of organizational creativity and innovation. Organizational creativity is directly influenced by organizational characteristics and the creative behavior that occurs within work groups. In turn, a group's creative behavior is influenced by group characteristics and the individual creative behavior/performance of its members. Individual creative behavior is directly affected by a variety of individual characteristics. Finally, individual, group, and organizational characteristics all influence each other within this process.
