Decision-Making Basics
What is decision-making?
Choosing the best option
What are programmed decisions?
Routine, repetitive decisions
What does a decision model do?
Helps guide decisions
What is confirmation bias?
Favoring information that supports beliefs
What is the utilitarian approach?
Choosing the option that benefits the most people
Why do managers need good Decision-Making Skills?
Drives success, efficiency, and morale
What are non-programmed decisions?
Unique, complex decisions
What are the three simplified steps in the decision-making process?
Identify problem, analyze options, choose and evaluate
What is availability bias?
Relying on immediate memories
What is the individualism approach?
Acting in one's long-term self-interest
What is a common challenge managers face in decision-making?
Incomplete information, Conflicting Goals, Biases
What is ambiguity in decision-making?
Unclear or incomplete information
What is the difference between rational and intuitive decision-making?
Data-driven vs instinct-based
What is hindsight bias?
Believing outcomes were predictable after they occur
What is the justice approach?
Ensuring fairness and equality
What distinguishes strategic decisions from tactical decisions?
Long-term vs short-term impact
What is an uncertain decision?
A decision with unknown outcomes
Which model/Style works best in a crisis?
Intuitive decision-making
What is anchoring bias?
Focusing too heavily on the first piece of information
What is the practical approach?
Based on prevailing societal norms
What is bounded rationality?
When our brains can only handle a limited amount of information when making decisions
How do managers handle uncertainty?
Rely on experience and intuition
What is rational decision-making?
Using facts and data to make decisions
What is overconfidence bias?
Believing you know more than you actually do
How can managers maintain ethical decision-making?
Clear principles, ethical training