HROB 2100 Lecture Notes - Lecture 6: Groupthink, Peer Pressure, Confirmation Bias

• School: University of Guelph
• Department: Human Resources and Organizational Behaviour
• Course: HROB 2100
• Professor: Saad Hossain

Document Summary

Decision: choice made from two or more alternatives. Rational: choices that are consistent and value maximizing within specific constraints. Rational decision making: six step decision making process, describes how individuals should behave in order to maximize some outcome. Bounded rationality: li(cid:373)itatio(cid:374)s o(cid:374) o(cid:374)e s a(cid:271)ility to i(cid:374)terpret, pro(cid:272)ess a(cid:374)d a(cid:272)t o(cid:374) information. Satisficing: ide(cid:374)tifyi(cid:374)g a solutio(cid:374) that is (cid:862)a good o(cid:374)e(cid:863: the first acceptable option rather than the optimal one. Intuition: non-conscious process created from distilled experience that results in quick decisions: relies on holistic associations, affectively charged- engaging the emotions. Overconfidence bias: believing too much in our own ability to make good decisions- especially when outside of own expertise. Anchoring bias: using early, first received information as the basis for making subsequent judgements. Confirmation bias: selecting and using only facts that support our decision. Availability bias: emphasizing information that is most readily at hand: recent, vivid.