MHR 405 Lecture Notes - Lecture 6: Mental Models, Decision-Making, Prospect Theory
15 Mar 2015
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Document Summary
Decision making de ned: decision making is a conscious process of making choice among one or more alternatives with the intention of moving toward some desired state of affairs. Rational choice decision process: identify problem/opportunity, symptom vs. Problem: choose decision process, e. g. (non) programmed, discover/develop alternatives, search, then develop, choose best alternative, subjective expected utility, implement choice, evaluate choice. Problem identi cation challenges: problems and opportunities are constructed from ambiguous information, not given to us, in uenced by cognitive and emotional biases, five problem identi cation challenges, stakeholder framing, mental models, decisive leadership, solution-focused problems, perceptual defence (stereotypes, etc. Identifying problems effectively: be aware of perceptual and diagnostic limitations, fight against pressure to look decisive (producing a de nite result, maintain divine discontent (aversion to complacency) *complacency - a feeling of smug or uncritical satisfaction with oneself or one"s achievements: discuss the situation with colleagues - see different perspectives. People are able to calculate all alternatives and their outcomes.
