Decision-Making in Organizations

Flashcards covering key concepts about decision-making in organizations, including definitions, decision types, approaches, and biases.

What is the process of identifying and solving problems within an organization called?

Organizational decision making.

What are the two stages of organizational decision making?

Problem identification stage and problem solution stage.

What type of decisions are repetitive and well-defined with procedures for resolving problems?

Programmed decisions.

What are non-programmed decisions characterized by?

They are novel, poorly defined, and no procedure exists for solving the problem.

What is the rational approach to decision making?

A systematic analysis of a problem followed by choice and implementation in a logical, step-by-step sequence.

What does the bounded rationality perspective highlight?

The limitations of the rational approach due to limited time, information, and resources.

What is intuitive decision making based on?

Experience and judgment rather than sequential logic or explicit reasoning.

What is the anchoring and adjustment bias in decision making?

The tendency for individuals to rely too heavily on a single piece of information.

What does availability bias refer to?

A situation in which information that is more readily available is viewed as more likely to occur.

What is escalation of commitment bias?

When individuals continue on a failing course of action despite information indicating it may be a poor path.

What is the fundamental attribution error?

Using personal characteristics for internal attribution and environmental characteristics for external attribution.

What does hindsight bias refer to?

Judging past mistakes as obvious and that they should have been recognized as mistakes at the time.

What is overconfidence bias?

When individuals overestimate their ability to predict future events.

What is satisficing in decision making?

Settling for the first acceptable alternative instead of seeking the best possible solution.