BUAD 304 Organizational Behavior and Leadership - Decision Making

These flashcards cover key terms and concepts related to decision making in the context of organizational behavior and leadership as discussed in the lecture.

Decision Making

The process for identifying and choosing among alternative solutions that lead to a desired state of affairs.

System 1 Thinking

An intuitive and largely unconscious way of thinking; automatic, fast, and emotional.

System 2 Thinking

An analytical and conscious way of thinking; deliberate, slow, and logical.

Rational Decision Making

A decision-making model that is objective, orderly, and information-driven.

Nonrational Decision Making

A decision-making model that is subjective, intuitive, and partially informed.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, leading to illogical inferences.

Confirmation Bias

The tendency to selectively gather information that supports our existing beliefs.

Overconfidence Bias

The tendency to overestimate one's own abilities or judgments.

Anchoring Bias

The tendency to rely heavily on the first piece of information encountered when making decisions.

Hindsight Bias

The inclination to see events as having been predictable after they have already occurred.

Framing Bias

The influence on decision-making based on how information is presented or framed.

Escalation of Commitment

The tendency to continue investing in a failing course of action due to prior investments.

Availability Bias

The tendency to base decisions on information that is easily available in memory.

Representativeness Bias

The tendency to assess the probability of an event based on how similar it is to a known category or population.

Evidence-Based Decision Making

Using the best available data and information to inform decision-making processes.