Decision Making, Learning, Creativity, and Entrepreneurship

These flashcards cover key concepts of decision-making, cognitive biases, and group dynamics within managerial contexts.

Managerial Decision Making

The process where managers respond to opportunities or threats by analyzing options and deciding on goals and actions.

Programmed Decisions

Structured decisions that have been made so frequently that managers apply established rules or guidelines.

Nonprogrammed Decisions

Unstructured decisions that require higher-level management and deal with unique or exceptional problems.

Classical Model of Decision Making

A rational approach that emphasizes logical procedures and assumes decision-makers have complete access to information.

Bounded Rationality

The concept that human decision-making is limited by cognitive capacity, time, and resources.

Satisficing

The practice of settling for a satisfactory solution rather than the optimal one due to constraints in time and information.

Cognitive Bias

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

Confirmation Bias

The tendency to favor information that confirms existing beliefs while ignoring contradictory evidence.

Representativeness Bias

Judging the probability of an event based on how similar it is to an existing stereotype rather than actual statistics.

Illusion of Control

The cognitive bias where individuals overestimate their ability to control outcomes that are largely determined by chance.

Escalation of Commitment

The tendency to continue investing in a failing course of action despite clear evidence of its ineffectiveness.

Group Decision Making

A process where two or more individuals collectively analyze information, discuss alternatives, and make collective decisions.

Devil’s Advocacy

A decision-making technique where an individual is assigned to challenge the majority view and point out weaknesses in proposed decisions.

Dialectical Inquiry

A structured debate where two opposing groups present contrasting alternatives or strategies to encourage balanced decision-making.