BUS 272 Chapter Notes - Chapter 13: Confirmation Bias, Groupthink, Hindsight Bias

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 272
• Professor: Lieke Brummelhuis

Document Summary

Employee do not perform well because the current reward system does not motivate employees. Rate each alternative on the 4 weighted criteria e. g. 1, 2, 3 are met, b) 3 and 4 met, c) 4 met, d) 1, 4 met. Select the best alternative employee of the month award. Rationality: a rational decision making process for making logically sound and optimal decisions. Problem and options are clear, complete information. Preferences are clear and constant over time. Only the best" alternative should be chosen (optimal solution) Bounded rationality: form of decision-making which accepts that there are cognitive limits to an individual"s knowledge and capacity to act rationally. Do not have time to evaluate all alternatives. Do not know the exact outcomes of alternatives. We used simplified models to extract essential features of the problem without capturing all of its complexity. Satisficing: a process which searches for good enough or satisfactory option, rather than an optimum solution.