SMO310 Chapter Notes - Chapter 11: Sunk Costs, Delphi Method, Hindsight Bias

• School: University of Alberta
• Department: Strategic Management and Organization
• Course: SMO310
• Professor: Richard Field

Document Summary

No(cid:374)progra(cid:373)(cid:373)ed rule: so(cid:373)ethi(cid:374)g that is(cid:374)"t (cid:374)or(cid:373)ally (cid:373)ade eg. m(cid:272)do(cid:374)alds. Operational: decisions employees make day to day running the business. Let people decide how to achieve goals. Overconfidence bias: when someone overestimates ability to predict future events. Hindsight bias: mistakes seem obvious after they occurred. Anchoring: individuals rely on one piece of info too much. Framing bias: tendency of decision makers to be influenced by the way a situation is presented. Escalation of commitment: continuing on a failing course of action after they realize it may be a poor path to follow, sunk costs fallacy. Nominal group technique: (ngt) developed to help with group decision making by ensuring all members participate fully: engage each member in independently and silently brainstorming, gather ideas, discussion on each idea, vote for favorite idea. Group decision support systems: (gdss) interactive computer based systems that combine communication and decision technology.