MHR 405 Lecture Notes - Lecture 5: Availability Heuristic, Prospect Theory, Interaction Design

• School: Ryerson University
• Department: Human Resources
• Course: MHR 405
• Professor: David Chalmers

Document Summary

Flawed decision making in the bp gulf of mexico disaster: reports blame bad decision making by bp and its contractors for the disaster on the deepwater. Horizon drilling platform in the gulf of mexico. Decision making defined: decision making is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs. Identify problem/opportunity: symptom vs problem, choose decision process, e. g. (non)programmed, discover/develop alternatives, search, then develop, choose best alternative, subjective expected utility. Problem identification challenges: pro(cid:271)le(cid:373)s a(cid:374)d opportu(cid:374)ities are (cid:272)o(cid:374)stru(cid:272)ted fro(cid:373) a(cid:373)(cid:271)iguous i(cid:374)for(cid:373)atio(cid:374), (cid:374)ot (cid:862)give(cid:374)(cid:863) to us. Five problem identification challenges: stakeholder framing, mental models, decisive leadership, solution-focused problems, perceptual defence. Identifying problems effectively: be aware of perceptual and diagnostic limitations, fight against pressure to look decisive, mai(cid:374)tai(cid:374) (cid:862)divi(cid:374)e dis(cid:272)o(cid:374)te(cid:374)t(cid:863) (aversio(cid:374) to complacency, discuss the situation with colleagues -- see different perspectives.