BM Block 3 Chp.2

What is the first step in the decision-making process?

• Observe the issue

• Identify a problem

• Consult your peers

• Create an experience

Match the following

• An increased commitment to a previous decision despite evidence that it may be wrong.

• Satisfice

• Accepting solutions that are, "good enough".

• Escalation of commitment

• Decision-making that is rational but limited by an individual's ability to process information.

• Bounded Rationality

Intuitive decision-making:

• Problems that are new or unusual and for which information is ambiguous or incomplete.

• The systematic use of the best available evidence to improve management practice.

• Making decisions on the basis of experience, feelings, and accumulated judgement.

• A repetitive decision that can be handled by a routine approach.

Match the following

• An explicit statement that tells managers what can or cannot be done.

• Rule

• A series of sequential steps used to respond to a well-structured problem.

• Procedure

• A guideline for making decisions.

• Policy

The systematic use of the best available evidence to improve management practice.

​ A ​ (a)   is a repetitive decision that can be handled by a routine approach.

• Programmed Decision
• Structured Problem

​​ (a)   is a situation in which a manager can make accurate decisions because all outcomes are known.

• Certainty
• Uncertainty
• Risk

If someone makes a decision based on logical reasoning or data and facts, they most likely have a...

• Non-linear thinking style

• Overconfidence bias

• Linear thinking style

• Heuristics

Which decision-making error involves seeking out information that reaffirms past choices while discounting contradictory information?

• Framing Bias

• Selective Perception Bias

• Anchoring Effect

• Conformation Bias

Match the bias/error with its definition

• Creating unfounded meaning out of random events.

• Randomness Bias

• Drawing analogies and seeing identical situations where none exist.

• Availability Bias

• Losing decision-making objectivity by focusing on the most recent events.

• Framing Bias

• Selecting and highlighting certain aspects of a situation while ignoring other aspects.

• Sunk Costs Error

• Forgetting that current actions cannot influence past events and relate only to future consequences.

• Representation Bias