Chapter 14 – Decision Making (Organizational Behavior in Health Care)

Vocabulary flashcards that review major terms, models, and biases from Chapter 14 on Decision Making.

Rational Approach

A systematic, logical, step-by-step analysis of a problem followed by selection and implementation of a solution.

Bounded Rationality Approach

Decision making that is limited by cognitive constraints and an incomplete search for information; individuals rely mainly on what they already know.

Intuition (in decision making)

Using professional judgment and past experience rather than explicit reasoning or sequential logic to choose a course of action.

Heuristics or Biases Approach

Simplifying decisions through mental shortcuts or ‘rules of thumb’ that can systematically distort judgment.

Availability Bias

Over-estimating the likelihood of events that are easily recalled or recently experienced.

Representativeness Bias

Judging the probability of an event by how much it resembles existing stereotypes rather than statistical reality.

Anchoring/Adjustment Bias

Relying too heavily on an initial piece of information (anchor) and making insufficient adjustments away from it.

Framing Heuristic

The tendency for the way information is presented (framed) to influence choices and risk perception.

Escalation of Commitment

Continuing to invest resources in a losing course of action due to inability to admit error or because of framing effects.

Avoiding Escalation of Commitment

Recognizing potential bias, defining failure clearly, and evaluating the decision from an outsider’s perspective to prevent overcommitment.

Decision-Style Model

A framework that categorizes how individuals prefer to process information and make choices (e.g., directive, analytical, conceptual, behavioral).

Vroom-Yetton Decision-Making Model

A contingency model specifying which level of leader and group participation is optimal for different decision situations.

Autocratic I (AI)

Leader makes the decision alone with available information—completely autocratic.

Autocratic II (AII)

Leader gathers specific information from subordinates but makes the decision independently.

Consultative I (CI)

Leader consults individually with subordinates, then decides alone.

Consultative II (CII)

Leader consults with subordinates as a group, then decides alone.

Group (GII)

Leader and subordinates make the decision together, seeking consensus.

Difference: Rational vs. Bounded Rationality

Rational approach assumes complete information and unlimited processing; bounded rationality acknowledges limited information, time, and cognitive capacity.