MGMT1001 Study Guide - Quiz Guide: Satisficing, Groupthink, Peer Pressure
31 May 2018
School
Department
Course
Professor
Nine common decision-making biases
Escalation of commitment
-
Motorola --> dominant in industry --> skipped digital age --> market share
dropped as the weren't keeping up with customer need
◊
Overcoming:
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Separate choosers from evaluators
1.
Several people in evaluation
2.
Establish point to abandon
3.
Availability bias
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Representative bias
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Confirmation bias
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Sunk cost bias
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Anchoring and adjustment bias
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Overconfidence bias
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Hindsight bias
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Framing bias
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Four ineffective reasons to decision-making
Relaxed avoidance: taking no action in the belief that there will be no great
negative consequences
1.
Relaxed change: realising that complete inaction will have negative
consequences but opting for the first available alternative.
2.
Defensive avoidance: can't find a good solution and followed by (a)
procrastinating, (b) passing the buck or © denying the risk
3.
Panic: so frantic to get rid of the problem that one can't deal with the
situation realistically
4.
Three effective reactions to decision-making
Importance: How high priority is the situation?
1.
Credibility: How believable is the information about the situation?
2.
Urgency: How quickly must I act on the information about the situation?
3.
8 step model
Identification of the problem --> Identification of criteria --> Allocation of weights to
the criteria --> Development of alternatives --> Analysis of alternatives --> Selection
of alternatives --> Implementation of alternatives --> Evaluation of decision
effectiveness.
Disadvantages of group decision making
They are less efficient1.
Satisficing2.
Goal displacement3.
Dominant or intimidating members4.
Groupthink5.
Group polarisation6.
Symptoms of groupthink
Sense of invulnerability1.
Rationalisation2.
Illusion of unanimity and peer pressure3.
The wisdom of crowds4.
Tools to improve group problem-solving
Work as an individual, then as a team1.
Those with status speak last, or not be present2.
How to overcome barriers to decision-making
Friday, 9 March 2018
10:53 am
