Organisational Behaviour Ch7

1508 Words Jan 11th, 2012 7 Pages
CHAPTER 7
DECISION MAKING AND CREATIVITY
Describe the six stages in the rational choice decision process

Decision making: the conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs.

Rational choice paradigm of decision making: the view in decision making that people should and typically do, use logic and all available information to choose the alternative with the highest value.
Decision making involves identifying, selecting and applying the best possible alternative. The best decision use pure logic and all available information to choose the alternative with the highest value
Such as highest expected profit, customer satisfaction, employee wellbeing or some combination
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Initial info influences evaluation of subsequent info
2. Availability heuristic: we estimate probabilities by how easily we can recall the event, even though other factors influence it.
3. Representativeness heuristic: we estimate probabilities by how much they are similar to something else, even when better information available.
Problem with maximisation: people engage in satisficing, selecting an alternative that is good enough rather than the alternative with the highest value. To choose the best alternative is also demand more info processing capacity than what they willing to apply.
Making the best choice among many, can be cognitively and emotionally draining.

Evaluating opportunities: opportunity is different from the process of problem solving. Decision makers not evaluate alternatives, after all, the opportunity is the solution, so why look further, they tend to have an emotional attachment to the opportunity.


EMOTIONS AND MAKING CHOICES:
Describe 3 ways in which emotions influences the selection of alternatives

1. Emotions from early preferences: emotions form preferences before we consciously evaluate those choices
2. Emotions change the decision evaluation process: moods and emotions influence how well we follow the decision process.
3. Emotions serve as info when we evaluate alternatives: we “listen in” on our emotions and use that info to make choices

Intuitive…