CCT324H5 Chapter Notes - Chapter 12: Decision-Making, Confirmation Bias, Bounded Rationality
31 Mar 2018
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Chapter 12 decision making, creativity, and ethics. How should decisions be made: decision the choice made from 2 or more alternatives, decision making happens at all levels of an organization. The rational decision-making process: rational choices that are consistent and value-maximizing within specified constraints, rational decision-making model a 6-step decision-making model that describes how individuals should behave in order to maximize some outcome. How do individuals actually make decisions: most significant decisions are made by judgment, rather than a defined prescriptive model. Intuition: the least rational way of making decisions, intuitive decision making an unconscious process created out of a person"s many experiences, relies on holistic associations, links between disparate pieces of information, engages the emotions. Overconfidence bias: we tend to be overconfident about our abilities and about the abilities of others, overconfidence bias error in judgment that arises from being far too optimistic about one"s own performance.
