MGHB02H3 Lecture Notes - Lecture 9: Group Decision-Making, Representativeness Heuristic, Confirmation Bias
Document Summary
Decision making: process of developing a commitment to some course of action; takes time and resources; involves a choice, process, and what kind of resources. Problem: exists when a gap is perceived between some existing state and some desired state; Well structured problem: existing state is clear, desired state is clear and how to get from one state to the other is obvious; ex. Ill structured problem: existing and desired states are unclear and getting to the desired state is unknown; cannot be solved with programmed decisions, rather, decision makers must resort to non-programmed decision making. Rational decision making model a. 1. identify the problem a. 2. establish decision criteria a. 3. weigh decision criteria a. 4. generate alternatives; brainstorm potential options a. 5. evaluate the alternatives a. 6. choose the best alternative a. 7. implement the decision a. 8. evaluate the decision. Perfect rationality: a decision strategy that is completely informed, perfectly logical and oriented toward economic gain; perfect world.
