MHR 405 Study Guide - Subjective Expected Utility, Mental Models, Pattern Matching

• School: Ryerson University
• Department: Human Resources
• Course: MHR 405
• Professor: Robin Church

Document Summary

Decision making: the conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs. Rational choice paradigm: 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. Subjective expected utility: the probability (expectation) of satisfaction (utility) resulting from choosing a specific alternative in a decision: identify problem/opportunity. Problems and opportunities are constructed from ambiguous information, not given to us. Five problem identification challenges: stakeholder framing - stakeholders often unintentionally filter information to amplify or supress seriousness of the situation of bad or good news. Consequently, eager to look effective, many leaders quickly announce problems or opportunities before having a change to logically assess the situation. Lec 6: solution-focused problems decision makers engage in solution-focused problem identification because it provides comforting closure to the otherwise ambiguous and uncertain nature of problems.