GMS 200 Chapter Notes - Chapter 13: Sunk Costs, Psychology Today, Organizational Culture

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Deborah De Lange

Document Summary

Heuristics (rule of thumb): availability bias: information readily available from memory, representation bias: similar to stereotype (same school, anchoring and adjustment bias: allegiance to a starting point (incremental change is not valid. Confirmation error (selective perception): justification by seeking our confirmatory evidence and ignoring contradictory information; focus on problem only from our vantage point--> ignoring other possibly valid points of view (conveniently). Escalating commitment: continue on a cause of action without regard to evidence that suggests a change is needed; apply more resources to something that is not working--> sunk costs lead to continue rather than abandon. For example, the video with the guy and the bill and people bidding on it. Creativity: the generation of a novel idea or unique approach to solve problems or exploit opportunities. Situational creativity drivers: group creativity skills, management support, organizational culture. Make innovation a way of life in an organization!