BUS 272 Lecture Notes - Lecture 12: Subculture, Bounded Rationality, Confirmation Bias

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 272
• Professor: Christopher Zatzick

Document Summary

Judgement shortcuts in the decision-making process: use of intuition to make some decisions. Individuals make decisions by constructing simplified models that extract the essential features from problems w/o capturing all their complexity: limited by ability to interpret, process, act on information, sometimes we satisfice ide(cid:374)tif(cid:455) a solutio(cid:374) that is (cid:862)good e(cid:374)ough(cid:863) Intuitive decision making: non-conscious process created from distilled experience, occurs outside conscious thought, usually engages emotions, used (cid:449)he(cid:374) it"s hard to (cid:373)ake a(cid:374)(cid:455) ki(cid:374)d of ratio(cid:374)al a(cid:374)al(cid:455)sis of the i(cid:374)for(cid:373)atio(cid:374) or (cid:449)he(cid:374) there is ti(cid:373)e pressure. Groupthink: groupthink = when group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views, mental efficiency, reality testing, moral judgement deteriorates, happens due to: Illusion of unanimity = abstention is viewed as a yes vote. Ch 10 organizational culture: system of shared meaning held by members that distinguished organization from other organizations, 7 primary characteristics: