Rational Choice Decision Making

These flashcards cover key concepts and steps from the rational choice decision-making process outlined in the lecture notes.

Why would a rational choice decision maker choose Supplier A over Supplier B?

Because Supplier A would produce the highest expected satisfaction based on the composite valence calculation.

What is the composite valence calculation based on?

It is calculated by multiplying the valence of each outcome by the probability of that outcome occurring, then adding those results across all outcomes.

What is the first step in the rational choice decision process?

To identify the problem or recognize an opportunity.

What does the 'ought to be' refer to in decision making?

It refers to goals or performance expectations that help evaluate the success of the selected choice.

What is the difference between a problem and an opportunity in decision making?

A problem is a deviation from the current situation to the desired situation, while an opportunity is the discovery that some choices could yield better results than current expectations.

What is a meta-decision in the decision-making process?

It is the decision regarding how to decide among different decision processes and approaches.

What characterizes routine problems in decision making?

Routine problems apply programmed decisions because previous encounters would provide ready-made solutions.

What is the fifth step in the rational choice decision-making process?

To implement the selected alternative.

Why is problem identification considered the most important step?

Because forming an accurate understanding of the problem is essential for deriving meaningful solutions.

What is a common error made during problem identification?

Jumping to a solution before fully understanding the problem, known as solution-focused problem identification.

What role do emotions play in decision making?

Emotions can influence how we appraise alternatives and can provide intuitive guidance for choices.

What is scenario planning?

A disciplined method for imagining possible futures and planning for potential environmental changes without the pressure of real emergencies.