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Organizational Behavior Week 6 of notes

by: Nicole Rossi

Organizational Behavior Week 6 of notes MGT 06300 - 6

Marketplace > Rowan University > Business, management > MGT 06300 - 6 > Organizational Behavior Week 6 of notes
Nicole Rossi
GPA 3.9

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About this Document

Hey guys! Here is Week 6 of notes. They incorporate Chapters 13, 14, and 15. (:
Organizational Behavior
Yang Yang
Class Notes
Org Behavior
25 ?




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This 3 page Class Notes was uploaded by Nicole Rossi on Thursday February 25, 2016. The Class Notes belongs to MGT 06300 - 6 at Rowan University taught by Yang Yang in Spring 2016. Since its upload, it has received 12 views. For similar materials see Organizational Behavior in Business, management at Rowan University.


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Date Created: 02/25/16
Notes for the Week of 2/25/16: Decision Making: a choice made from two or more alternatives The decision making process includes the following steps:  identifying problems  generating alternatives  choosing an alternative  implementing the decision  evaluate our decision making Identifying Problems Rational Model Assumptions: We use all received information to recognize opportunities and identify problems Generating Alternatives RMA: We explore all alternatives and explore Making Choices RMA: We evaluate all alternative simultaneously and choose the one with the highest payout. Perceptual Defense: block out “bad news” Solution Focused Problems: Defining problems as solutions Framing Heuristic (Prospect Theory): is the tendency to evaluate risk differently depending on how a decision is presented (or framed). We evaluate options against a “neutral” point. Implications of the Framing Heuristic: Figure out what is the “neutral” point that is embedded in the framing of the question. A sure gain= risk-averse A sure loss= risk-seeking Correcting for framing bias: Use multiple frames (gains and losses), assign individuals to gain or loss frames (devils advocate), consult uninvolved third parties Generating Alternatives: anchoring: o estimates made in the presence of an anchor are too close to that anchor. (first impression is a lasting impression) availability: o the tendency to estimate the probability of something occurring by how easily we can recall those events To correct this: use documentation and evidence over recall, make salient key pieces of less available evidence representativeness: o We estimate probabilities by how much they are similar to something else Maximizers vs. Satifisicers in the Job Search Objectively, maximizers are more successful Subjectively, maximizers are less successful Escalation of Commitment: Resources committed to initial course of action. Does not produce desired return. Commit more resources to “turn things around” and recover initial investment. Cost of failure increased. More resources are invested. Also called the “sunk cost bias” Why Escalation Happens? Project completion, and ego and image. Reducing Escalation of Commitment: Separate initial decision-makers from decision evaluators; shift focus of attention; give positive feedback properly; hold people accountable for decision processes (not outcomes) PART TWO Emotions, intuition and mindlessness in decision making Intuitive (System 1): fast, automatic, emotional, simplifying Deliberate (System 2): slow, cognitive, more complete/integrating, abstract knowledge matters System 1: The “Feeling” Mind: System 1= a feeling of knowing or a feeling of preference. This feeling serves as information that we use to make a decision. Investment Decisions: Markets appreciate more on sunny days. Stock prices fall when the local team loses. People make 17% more unplanned purchases when they feeling hungry than when they feel sated. Intuition: a feeling or belief with an unknown origin. Mindlessness: decisions are shaped by factors outside of our conscious awareness. Creativity and Decision Making: Creativity: Developing an original idea that makes a socially recognized contribution. Applies to all aspects of the decision process-identify problems, generate alternatives, choose solutions. Creative Process Model: Preparationincubationilluminationverification Creative Work Environments: learning orientation; Intrinsically motivating work; open communication and sufficient resources Brainstorming: in a team, participants try to think up as many ideas as possible. Four specific rules to follow:speak freely, don’t criticize, provide as many ideas as possible, build on others’ ideas.


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