Management 300 Week 7 Notes
Management 300 Week 7 Notes Management 300
verified elite notetaker
Popular in Department
This 5 page Class Notes was uploaded by Danielle Grek on Tuesday March 3, 2015. The Class Notes belongs to Management 300 at Arizona State University taught by in Spring2015. Since its upload, it has received 84 views.
Reviews for Management 300 Week 7 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/03/15
Management 300 Week 7 Notes Decision a choice made from among available alternatives Decision making the process of identifying and choosing alternative courses of ac on The curse of knowledge when some people design something and cannot imagine what it is like for other less experienced people The rational model of decision making classical model explains how managers should make decisions it assumes managers will make logical decisions that will be the optimum in furthering the organization39s best interests Based on rationality It is prescriptive telling how managers should make decisions 4 stages 1 Identifv the problem or Opportunitv Problem dif culty that inhibits the achievement of goals Opportunity situations that present possibilities for exceeding existing goals Diagnosis analyzing the underlying causes 2 Think up alternative solutions 3 Evaluate alternatives amp select a solution 4 Implement amp evaluate the solution chosen For implementation to be successful you need to plan carefully and be sensitive to those affected If the action is not working you can do 4 things give it more time change it slightly try another alternative or start over Nonrational models of decision making explains how managers make decisions they assume that decision making is nearly always uncertain and risky making it dif cult for managers to make optimal decisions It is descriptive describing how managers actually make decisions Bounded rationality the concept suggests that the ability of decision makers to be rational is limited by numerous constraints Simon 3 nonrational modes 1 Satis cing managers seek alternatives until they nd one that is satisfactory not optimal 2 Incremental managers take small shortterm steps to alleviate a problem 3 Intuition making a choice without the use of conscious thought or logical inference Seven Implementation Principles Pfeffer amp Sutton Treat your organization as an un nished prototype No brag just facts See yourself and your organization as outsiders do Evidencebased management is not just for senior executives Like everything else you still need to sell it If all else fails slow the spread of bad practice The best diagnostic question What happens when people fail Analytics the term used for sophisticated forms of business data analysis 3 key attributes 1 Use of modeling going beyond simple descriptive statistics Predictive modeling a datamining technique used to predict future behavior and anticipate the consequences of change 2 Having multiple applications notjust one 3 Support from the too Risk propensity the willingness to gamble or to undertake risk for the possibility of gaining an increased payoff Decisionmaking style re ects the combination of how an individual perceives and responds to information 2 dimensions Vaue orientation re ects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions Toerance for ambiduitv indicates the extent to which a person has a high need for structure or control in his or her life A lot of structure low tolerance for ambiguity 4 stvles of decision makino based on tolerance for ambiguity and value orientation 1 Directive a low tolerance for ambiguity and are oriented toward task and technical concerns in making decisions They are ef cient logical practical and systematic Action oriented and decisive 2 Analytical much higher tolerance for ambiguity and are characterized by the tendency to overanalyze a situation They like to consider more information and alternatives than those following the directive style Careful decision makers who take longer to make decisions but respond well to uncertain situations 3 Conceptual high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation They have a longterm perspective and rely on intuition and discussions with others to acquire information Creative risk takers who can be indecisive 4 Behavioral most people oriented Work well with others and enjoy social interactions They are supportive receptive and prefer verbal information Have a tendency to avoid con ict and are concerned about others saying no Ethics of cer someone trained about matters of ethics in the workplace particularly about resolving ethical dilemmas Decision tree Bagley a graph of decisions and their possible consequences it39s used to create a plan to reach a goal When confronted with a proposed action for a decision a manaqer should ask these questions 1 Is the proposed action legal 2 If quotYesquot does the proposed action maximize shareholder value 3 If quotYesquot is the proposed action ethical 4 If quotNoquot would it be ethical not to take the proposed action 4 ineffective reactions to a decision 1 Relaxed avoidance a manager decides to take no action in the belief that there will be no great negative consequences 2 Relaxed chanqe a manager realizes that complete inaction will have negative consequences but opts for the rst available alternative that involves low risk 3 Defensive avoidance a manager can39t nd a good solution and follows by procrastinating passing the buck or denying the risk of any negative consequences 4 Panic a manager is so frantic to get rid of the problem that they can39t deal with the situation realistically Deciding to decide a manager agrees that he or she must decide what to do about a problem or opportunity and take effective decisionmaking steps 3 effective reactions to a decision 1 Importance decide what priority the situation is 2 Credibility decide how believable the information about the situation is 3 Urgency decide how quickly you must act on the information 9 common decisionmakinq biases Heuristics strategies that simplify the process of making decisions 1 Availabilitv bias managers use information readily available from memory to make judgments 2 Representativeness bias the tendency to generalize from a small sample or a single event 3 Conformation bias when people seek information to support their point of view and discount data that do not 4 Sunkcost fallacy when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it quotConcorde effectquot 5 Anchoring and adjustment bias the tendency to make decisions based on an initial gure 6 Overcon dence bias when people39s subjective con dence in their decision making is greater than their objective accuracy 7 Hindsioht bias the tendency of people to view events as being more predictable than they really are 8 Framing bias the tendency of decision makers to be in uenced by the way a situation or problem is presented to them 9 Escalation of commitment bias when decision makers increase their commitment to a project despite negative information about it Advantaoes of oroub decision making Greater pool of knowledge Different perspectives nteectua stimulation Better understanding of decision rationale Deeper commitment to the decision Disadvantaoes of oroub decision making A few people dominate or intimidate Groupthink occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation Satis cing the tendency to seek a decision that is quotgood enoughquot Choosing the rst option that meets criteria Goa displacement occurs when the primary goal is subsumed by a secondary goa What managers need to know about groups and decision making 1 They are less ef cient 2 Their size affects decision quality 3 They may be too con dent 4 Knowledge counts Participative management the process of involving employees in setting goals making decisions solving problems and making changes in the organization Consensus which occurs when all members are able to express their opinions and reach agreement to support the nal decision 3 group problem solving techniques 1 Brainstorming a technique used to help groups generate multiple ideas and alternatives for solving problems Electronic brainstorming brainwriting when members of a group come together over a computer network to generate ideas and alternatives 2 Delphi technique a group process that uses physically dispersed experts who ll out questionnaires to anonymously generate ideas the judgments are combined and in effect averaged to achieve a consensus of expert opinion 3 Computeraided decision making 2 types Chaufferdriven systems for pushbutton consensus They ask participants to answer predetermined questions on an electronic keypad Groupdriven systems for anonymous networking Where participants gather in a room to express their ideas anonymously on a computer network The pr05pect theorv suggests that decision makers nd the notion of an actual loss more painful than giving up the possibility of a gain
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'