1. Improving Decision Making through Knowledge Management
1.1. Storing information that employees have = organization share collective wisdom
1.2. Develop computer databases
1.3. Create a culture promoting values
1.4. Mechanisms for valuable employees to share with others
2. Group Decision Making
2.1. Time consuming, lead to conformity pressures, dominated by one or few members, ambiguous responsiblity
2.2. STRENGHTS
2.2.1. More knowledge Diversity in views Higher-quality decisions Increased acceptance to a solution
2.3. WEAKNESSES
2.3.1. Time consuming Conformity pressure Discussion dominated by few members Ambiguous responsibility
2.4. Groupthink
2.4.1. Norm of consensus overrides realistic appraisal of alternative courses of action
2.4.2. Symptoms of Groupthink
2.4.2.1. Illusion of invulnerability Assumption of morality Rationalized resistance Peer pressure Minimized doubts Illusion of unanimity
2.4.3. Minimize it
2.4.3.1. Monitor size (bigger isn't better hehehe) Group leaders - impartial role Devil's advocate discuss diverse alternatives
2.5. Groupshift
2.5.1. Initial positions of individual members of a group are exaggerated toward a more extreme position
2.5.2. What Causes Groupshift?
2.5.2.1. Discussion creates familiarization among group
2.5.2.2. Motivates individuals to take risks (discussion)
2.5.2.3. Group diffuses responsibility
2.6. Group Decision-Making Techniques
2.6.1. Interacting Groups Brainstorming Nominal Group Technique Electronic Meetings
3. Measures of Effectiveness
3.1. Accuracy
3.2. Speed
3.3. Creativity
3.4. Acceptance
3.5. Efficiency: groups take longer than individuals
4. How can we get more creative decisions?
4.1. Employees more creative with intrinsic interest, challenge, task satisfaction, self-set goals
4.2. Greatest creative Potential intelligent, openness to experience, independent, risk takers, no need for structure, positive self-evaluation, tolerant of ambiguity
4.3. Three-component Model of Creativity
4.3.1. Expertise (abilities, expertise)
4.3.2. Creative-thinking skills (use analogies, see different light)
4.3.3. Intrinsic task motivation (work on something that's interesting)
4.4. Anger and happiness enhance creativity
4.5. Creativity Blocks
4.5.1. Expected evaluation
4.5.2. Surveillance
4.5.3. External Motivators
4.5.4. Competition
4.5.5. Constrained choice
5. What is Corporate Resonsibility
5.1. Organization's responsibility to consider impact of its decision on society
6. How Should Decisions be made?
6.1. Rational Decision making model: (consistent value-maximizing choices with constraints
6.1.1. Define the Problem
6.1.2. Identify the criteria
6.1.3. Allocate weights to the criteria
6.1.4. Develop alternatives
6.1.5. Evaluate alternatives
6.1.6. Select the best alternative
6.1.7. Assumptions
6.1.7.1. Problem Clarity (problem is clear)
6.1.7.2. Known options (decision maker identifies all relevant criteria and viable alternatives
6.1.7.3. Clear preferences (criteria and alternatives can be ranked)
6.1.7.4. Constant Preference (criteria is constant)
6.1.7.5. No time/cost constraints
6.1.7.6. Maximum payoff (will achieve highest perceived value)
7. how do individuals actually make decisions?
7.1. Decision makers rely on bounded rationality, satisficing, intuition (shortcuts too)
7.1.1. Bound Rationality (limitation on one's ability to interpret, process and act on information)
7.1.2. Intuition (non-conscious process, relies on holistic associations and affectively charged-engaging the emotions
7.1.3. Satisficing (good enough solution = not optimal (first available))
7.1.4. Judgement Shortcuts
7.1.4.1. Overconfidence Bias You think you know but you don't know
7.1.4.2. Anchoring Bias Use early information to make decisions
7.1.4.3. Confirmation Bias Using facts that support our decision only
7.1.4.4. Availability Bias Most ready information at hand
7.1.4.5. Escalation of Commitment commiting to a decision even if evidence against it
7.1.4.6. Randomness Error Superstitions bitches
7.1.4.7. Risk Aversion prefer sure thing over risky outcome
7.1.4.8. Hindsight Bias after knowing outcome, you should have predicted beforehand
8. What's ethics and how can it be used for better decision makin
8.1. Ethics is study of moral value guiding our behaviour and inform us of whats right or wrong
8.2. 4 criterion for making ethical choices
8.2.1. Utilitarian Criterion (Outcomes or consequences emphasizing greatest good for the most people)
8.2.2. Rights Criterion (Fundamental liberties and privileges in documents like the Canadian Charter of Rights
8.2.3. Justice Criterion (Decisions impose and enforce rules fairly and impartially (equitable distribution of benefits and cost)
8.2.4. Care Criterion (Decisions expresses care in protecting special relationships ppl have
8.3. Ethical Decision making Behaviour
8.3.1. Stage of moral development
8.3.1.1. Preconventional (Follow rules in your immediate interest) (STicking to rules to avoid physical punishment)
8.3.1.2. Conventional 1. Fulfill obligations 2. Live up to what is expected by ppl close to you
8.3.1.3. Principled 1. Self-chosen ethical principle 2. Majority's opinion, value other's rights
8.3.2. Locus of control
8.3.3. Organizational environment
8.3.4. Is decision Ethical?
8.3.4.1. Is motivated by self-serving interest?
8.3.4.1.1. yes
8.3.4.1.2. No
8.3.5. Culture affects this alot
8.3.5.1. Importance of rationality, belief in ability of people to solve problems