Study Guide - Exam 2

Page 5: Diversity

• Definition of Diversity

  • Identity-based differences among individuals affecting their roles as applicants, employees, and customers.

• Types of Diversity

  1. Surface Level

     • Visible characteristics (e.g., race, ethnicity, gender).

  2. Deep Level

     • Non-observable characteristics (e.g., stress, motivation, culture, abilities).

  3. Hidden Diversity

     • Characteristics not immediately visible (e.g., sexual orientation).

• Example of Diversity

  • Halle's team showcases surface-level diversity with varied ages, ethnicities, and a balanced gender mix.

• Advantages of Diversity (Ch 5.3)

  • Cost Advantage

    • Reduces discrimination lawsuits.

  • Resource Acquisition

    • Women and minorities show higher job pursuit intentions.

  • Marketing

    • Insights from diverse demographics enhance product/service feedback.

  • System Flexibility

    • Improves interaction with diverse attitudes and beliefs.

  • Creativity

    • Diverse perspectives lead to more problem-solving options.

  • Problem Solving

    • Helps prevent groupthink.

• Definition of Groupthink

  • Dysfunctional decision-making in homogeneous groups due to conformity pressures.

Page 6: Decision Making

• Definition of Decision Making

  • The process of evaluating options and selecting one.

• Types of Decisions

  • Programmed Decisions

    • Repeated decisions guided by established rules.

  • Nonprogrammed Decisions

    • Novel, unstructured decisions based on poorly defined criteria.

• Six Steps in the Decision-Making Process

  1. Recognize the need for a decision.

  2. Generate alternatives.

  3. Analyze alternatives.

  4. Select an alternative.

  5. Implement the selected alternative.

  6. Evaluate its effectiveness.

Page 7: Core Elements of Great Decisions

• Eight Core Elements

  • Consideration of diverse viewpoints.

  • Accountability of decision-makers.

  • Proximity to action.

  • Addressing root causes.

  • Holistic impact consideration.

  • Balancing short-term and long-term values.

  • Effective communication with stakeholders.

  • Timeliness of decisions.

Page 8: Reasons for Bad Decisions

• Common Reasons

  • Bounded Rationality

    • Limited understanding of alternatives and implications.

  • Escalation of Commitment

    • Sticking to poor decisions despite negative outcomes.

  • Faulty Perceptions

    • Biases in information processing.

  • Faulty Attribution

    • Misinterpretation of actions and events.

• Seven Strategies for Better Group Decision Making

  • Keep groups small for important decisions.

  • Favor heterogeneous groups.

  • Appoint a strategic dissenter.

  • Collect independent opinions.

  • Create a safe space for expression.

  • Avoid over-reliance on experts.

  • Share collective responsibility.

• Perception Biases Examples

  • Selective Perception

    • Noticing only consistent information (e.g., assuming older people are bad at technology).

  • Projection Bias

    • Assuming others share the same preferences (e.g., everyone prefers organic food).

  • Social Identity Theory

    • Grouping based on shared characteristics (e.g., same majors).

  • Stereotyping

    • Generalizing based on group membership (e.g., Asians are good at math).

  • Framing

    • Influencing perception through phrasing.

Page 9: Attribution Biases

• Fundamental Attribution Error

  • Attributing others' behaviors to internal factors.

• Self-Serving Bias

  • Attributing personal failures to external factors and successes to internal factors.

Page 11: Teams

• Definition of Group

  • A collection of individuals sharing common norms and roles.

• Five Aspects of Group Structure

  • Work roles, group norms, social cohesiveness, status systems, and psychological safety.

• Psychological Safety

  • A shared belief that it’s safe to express ideas and concerns without fear of negative consequences.

Page 12: Great Decisions

• Key Elements of Great Decisions

  • Accountability, holistic impact, balance of values, effective communication, and timeliness.

• Reasons for Bad Decisions

  • Bounded rationality, escalation of commitment, faulty perceptions, and faulty attribution.

• Strategies for Better Group Decision Making

  • Keep groups small, choose diverse groups, appoint dissenters, collect independent opinions, ensure a safe space, avoid over-reliance on experts, and share responsibility.

Page 13: Additional Biases

• Perception Biases

  • Selective Perception

    • Noticing only what aligns with expectations.

  • Projection Bias

    • Assuming others think and feel the same way.

  • Social Identity Theory

    • Grouping based on shared identities.

  • Stereotyping

    • Making assumptions based on group membership.

  • Framing

    • The impact of phrasing on perception.

• Attribution Biases

  • Fundamental Attribution Error

    • Misjudging others' behaviors.

  • Self-Serving Bias

    • Misat