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DECISION MAKING
DEFINITIONS
34
Management
Undergraduate 3
04/01/2010

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Term
GROUPTHINK
Definition
A group pressure phenomenon that increases the risk of the group making flawed decisions by allowing
reductions in mental efficiency, reality testing, and moral judgment.
Term
DECISION MAKING
Definition
refers to making choices among alternative courses of action, including inaction.
Term
FLEXIBILITY
Definition
How different the ideas are from one another
Term
ANCHORING
Definition
The tendency for individuals to rely too heavily on a single piece of information.
Term
OVERCONFIDENCE
Definition
This type of bias occurs when individuals overestimate their ability to predict future events.
Term
HINDSIGHT
Definition
This type of bias is the opposite of overconfidence bias as it occurs when a person, looking at the past, judges
that a mistake made should have been recognized as a mistake at the time
Term
SATISFICING
Definition
Accepting the first alternative that meets minimum criteria
Term
CREATIVITY
Definition
The generation of new ideas.
Term
BOUNDED
Definition
This rationality model recognizes the limitations of decision-making processes. According to this model,
individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search for alternatives
Term
ILLUMINATION
Definition
The insight moment, when the solution to the problem becomes apparent.
Term
ANALYSIS PARALYSIS
Definition
refers to the decision-making process where more and more time is spent on gathering
information and thinking about it but no decisions actually get made.
Term
PROGRAMMED
Definition
decisions refers to those decisions that occur frequently enough that we develop an automated response to them.
Term
INTUITIVE
Definition
This decision-making model refers to arriving at decisions without conscious reasoning. The model argues that
in a given situation, experts making decisions scan the environment for cues to recognize patterns.
Term
FRAMING
Definition
This type of bias refers to the tendency of decision makers to be influenced by the way that problems are
framed.
Term
SOCIAL LOAFING
Definition
refers to the tendency of individuals to put in less effort when working in a group context
Term
ORIGINALITY
Definition
How unique a person’s ideas are.
Term
WILDSTORMING
Definition
A variation of brainstorming where the group focuses on ideas that are impossible and then imagines what
would need to happen to make them possible
Term
DECISION RULES
Definition
refers to our automated responses
Term
NONPROGRAMMED
Definition
decisions are unique, nonroutine, and important. These decisions require conscious thinking,
information gathering, and careful consideration of alternatives
Term
ESCALATION
Definition
This type of commitment occurs when individuals continue on a failing course of action after information
reveals this may be a poor path to follow.
Term
MAJORITY
Definition
This rule is a decision-making rule where each member of the group is given a single vote and the option that
receives the greatest number of votes is selected.
Term
CONSENSUS
Definition
A decision-making rule that groups may use when the goal is to gain support for an idea or plan of action. This
decision-making rule is inclusive, participatory, cooperative, and democratic.
Term
BRAINSTORMING
Definition
A process of generating ideas that follows a set of guidelines, which includes no criticism of ideas during the
process, the idea that no suggestion is too crazy, and building on other ideas.
Term
DELPHI
Definition
This technique is a group process that uses written responses to a series of questionnaires instead of physically
brining individuals together to make a decision
Term
VERIFICATION AND APPLICATION
Definition
refers to the stage when the decision maker consciously verifies the feasibility of the solution and implements the decision
Term
GROUP
Definition
This form of decision support system is an interactive computer-based system that is able to combine
communication and decision technologies to help groups make better decisions.
Term
INCUBATION
Definition
The step when the decision maker sets the problem aside and does not think about it for awhile
Term
PROBLEM
Definition
This form of identification is the step in which the need for problem solving becomes apparent
Term
IMMERSION
Definition
The step where the decision maker thinks about the problem consciously and gathers information
Term
KNOWLEDGE
Definition
This type of management system is used for managing knowledge in organizations, supporting creation,
capture, storage, and dissemination of information.
Term
IDEA QUOTA
Definition
a set number of ideas a group must reach before they are done with brainstorming.
Term
DECISION TREES
Definition
diagrams where answers to yes and no questions lead decision makers to address additional
questions until they reach the end of the tree
Term
FLUENCY
Definition
The number of ideas a person is able to generate
Term
NOMINAL
Definition
This form of group technique is designed to help with group decision making by ensuring that all members
participate fully
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