OBHR 3310 Lecture Notes - Lecture 12: Confirmation Bias, Selective Perception, Satisficing
26 Jun 2018
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What is Decision Making?
Identifying and choosing alternative solutions that lead to a desired state of affairs
Two models:
Rational
Nonrational
Rational Model of Decision Making
Explains how managers should make decisions
Assumes managers are completely objective and possess complete information
Stage 1: Identify the Problem or Opportunity
Stage 2: Generate Alternative Solutions
Stage 3: Evaluate Alternatives and Select a Solution
Stage 4: Implement and Evaluate the Solution
Rational Model of Decision Making – Stage 1
Identify the problem or opportunity
Determine the actual versus the desirable
What is the problem?
Stages 2:
Generate alternative solutions
Can use brainstorming
Need to slow down to evaluate a broader set of alternatives
Invest in studying a greater number of potential solutions
What are the options?
Stage 3:
Evaluate alternatives and select a solution with consideration for:
Ethics
Feasibility
Whether it removes the causes and solves the problem
Cost-benefit
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Identifying and choosing alternative solutions that lead to a desired state of affairs. Assumes managers are completely objective and possess complete information. Stage 1: identify the problem or opportunity. Stage 3: evaluate alternatives and select a solution. Stage 4: implement and evaluate the solution. Rational model of decision making stage 1. Need to slow down to evaluate a broader set of alternatives. Invest in studying a greater number of potential solutions. Evaluate alternatives and select a solution with consideration for: Whether it removes the causes and solves the problem. Stakeholders need to evaluate how effectively the solution solves the problem. Assumptions of the rational model; the decision maker . Is able to identify all the relevant options in an unbiased manner. Chooses the option with the highest utility. Most decisions in the real world don"t follow the rational model. Models of decision making that explain how managers actually make decisions.
