Ch. 11 - Decision Making & Creativity

Flashcards covering key concepts from the lecture on Decision Making & Creativity, including rational and nonrational decision making, decision biases, and creativity techniques.

The process for identifying and choosing solutions that lead to a desired state of affairs is called __.

Decision Making

__ decision making utilizes analytical and conscious thought, making it slow, logical, and requiring cognitive effort.

Rational

__ decision making relies on intuition and mental shortcuts, making it quick and requiring little cognitive effort.

Nonrational

Rational decision making assumes managers are completely objective and possess __ information.

complete

The first stage of rational decision making is to identify the __ or opportunity.

problem

A __ is defined as a gap between our current state and our desired outcome.

problem

Stage 2 of rational decision making involves generating __ solutions.

alternative

In Stage 3 of rational decision making, managers must evaluate alternatives and select a solution, considering ethics, feasibility, and whether it removes the __ of the problem.

causes

__ is choosing an option that is acceptable, although not perfect, by comparing the choice against the goal, not other options.

Satisficing

__ is producing the best possible solution and achieving the best possible balance among several goals.

Optimizing

Stage 4 of rational decision making involves __ the solution and evaluating its effectiveness.

implementing

A benefit of rational decision making is __ quality decisions and greater transparency around the process.

better

One issue with rational decision making is that conditions needed to optimize and make rational decisions are hard to meet due to constraints like cost, time, and __.

resources

Nonrational decision-making is built on the assumption that actual decisions in complex situations are often nonrational because we are guided by __.

bounded rationality

__ is our ability to make decisions being restricted by a series of constraints.

Bounded rationality

Nonrational decision-making often occurs when we use __ and mental shortcuts.

intuition

A benefit of intuitive decision making is its usefulness when a __ decision is required.

quick

A con of intuitive decision making is that it is susceptible to __ and can lead to lower-quality decisions.

bias

__ are cognitive shortcuts or biases that are used to simplify the process of making decisions, but can lead to bad decisions.

Judgmental heuristics

__ bias occurs when a decision-maker subconsciously makes up their mind about something and then seeks information that supports it while ignoring contradictory information.

Confirmation

The __ bias is the tendency to be overly confident in one's judgments or abilities.

overconfidence

__ bias is the tendency to estimate the likelihood or importance of something based on how easily we can think of an example.

Availability

The __ bias, also known as sunk costs, is the tendency to stick with a decision we've invested time, money, or energy into, even if current costs outweigh benefits.

escalation of commitment

__ is the process of producing new and useful ideas.

Creativity

One of the rules for brainstorming is to go for __ over quality.

quantity

To boost creativity, one suggestion is to __ your routine, such as your commute or lunch location.

change