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Psych338 Textbook Notes for Midterm 2.docx

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University of Waterloo
Dan Brown

Chapter 11: Decision Making - Process of developing a commitment to some course of action o Involves making a choice among several action alternatives o A process that involves more than simply the final choice among alternatives o The commitment usually involves resources (time, money, etc) - A problem exists when a gap is perceived between an existing and a desired state - Well-structured problems  existing state is clear, desired state is clear, and how to get from one state to the other is fairly obvious - Program  a standardized way of solving a problem - Ill-structured problem  existing and desired states are unclear and method of getting to desired state is unknown - Perfect rationality  a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain - Bounded rationality  a decision strategy that relies on limited information and reflects time constraints and political considerations - Framing  aspects of presentation of information about a problem that are assumed by decision makers - Cognitive biases  tendencies to acquire and process information in an error-prone way - Perceptual defense  perceptual system may act to defend the perceiver against unpleasant perceptions - Problem defined in terms of functional specialty  selective perception can cause decision makers to view a problem as being in the domain of their own specialty even when some other perspective might be warranted - Problem defined in terms of solution  form f jumping to conclusions; short-circuits the rational decision-making process - Problem diagnosed in terms of symptoms  a concentration on surface symptoms will provide decision maker with few clues about an adequate solution - Confirmation bias  tendency to seek out information that conforms to one’s own definition of or solution to a problem - Information overload  reception of more information than is necessary to make effective decisions - Decision makers may fear of being “kept in the dark”  Managers often gather information that has little decision relevance; use information that they collected and gathered after a decision to justify that decision; request information they do not use; request more information no matter what; complain there is not enough information to make a decision - Maximization  the choice of the decision alternative with the greatest expected value - Anchoring effect  inadequate adjustment of subsequent estimates from an initial estimate that serves as an anchor - Satisficing  establishing an adequate level of acceptability for a solution to a problem and then screening solutions until one that exceeds this level is found - Sunk costs  permanent losses of resources incurred as the result of a decision - Escalation of commitment  tendency to invest additional resources in an apparently failing course of action - Hindsight  tendency to review the decision-making process to find what was done right or wrong - Strong emotions can hinder decision-making o People in good moods remember positive information, and vice versa o People in a good mood tend to evaluate things more positively o People in a good mood overestimate likelihood of good events occurring and underestimate occurrence of bad events o People in a good mood adopt simplified shortcut decision-making strategies, more likely violating the rational model o Positive mood promotes more creative, intuitive decision making - Diffusion of responsibility  the ability of group members to share the burden of the negative consequences of a poor decision - Disadvantages of group decision making  time, conflict, domination, groupthink o Groupthink  the capacity for group pressure to damage the mental efficiency, reality testing, and moral judgment of decision-making groups (symptoms of groupthink below) o Illusion of invulnerability  overconfident members; ignore danger signals o Rationalization  problems are ignored through bad excuses o Illusion of morality  decisions of the group are thought to be morally right o Stereotypes of outsides  group constructs unfavourable stereotypes of outsiders that will be affected by the group’s decisions o Pressure for conformity  members pressure each other to fall in line and conform with the group’s views o Self-censorship  members convince themselves to avoid voicing opinions contrary to the group o Illusion of unanimity  members perceive that unanimous support exists for their chosen course of action o Mindguards  some group members may adopt the role of “protecting” the group from information that goes against its decisions - Risky shift  tendency for groups to make riskier decisions than the average risk initially advocated by their individual members - Conservative shift  tendency for groups to make less risky decisions than the average risk initially advocated by their individual members - Devil’s advocate  a person appointed to identify and challenge the weaknesses of a proposed plan or strategy - Brainstorming  an attempt to increase the number of creative solution alternatives to problems by focusing on idea generation rather than evaluation - Nominal group technique  a structured group decision-making technique in which ideas are generated without group interaction and then systematically evaluated by the group - Delphi technique  a method of pooling a large number of expert judgments by using a series of increasingly refined questionnaires Chapter 5: Theories of Work Motivation - Motivation  extent to which persistent effort is directed towards a goal - Intrinsic motivation  motivation that stems from the direct relationship between the worker and the task; self-applied - Extrinsic motivation  stems from work environment external to task; applied by others - Self-determination theory  a theory of motivation that considers whether people’s motivation is autonomous or controlled - Autonomous motivation  when people are self-motivated by intrinsic factors - Controlled motivation  when people are motivated to obtain a desired consequence or extrinsic reward - Performance  extent to which an organizational member contributes to achieving the objectives of the organization - General cognitive ability  a person’s basic information-processing capacities and cognitive resources - Emotional intelligence  ability to understand and manage one’s own and other’s feelings and emotions - Need theories  motivation theories that specify the kinds of needs people have and the conditions under which they will be motivated to satisfy these needs in a way that contributes to performance o Needs  behaviour  incentives and goals o Maslow’s hierarchy of needs  a five-level need theory of motivation that specifies that the lowest-level unsatisfied need has the greatest motivating potential (Physiological, safety, belonging, esteem, and self-actualization) - ERG Theory  a three-level hierarchical need theory of motivation (existence, relatedness, growth) that allows for movement up and down the hierarchy o Existence  satisfied by some material substance or condition o Relatedness  satisfied by open communication and exchange of thoughts and feelings with other organizational members o Growth  fulfilled by strong personal involvement in the work setting o The more lower-level needs are gratified, the more higher-level need satisfaction is desired; the less higher-level needs are gratified, the more lower-level need satisfaction is desired - McClelland’s theory of needs  a nonhierarchical need theory of motivation that outlines the conditions under which certain needs result in particular patterns of motivation o Need for achievement  a strong desire to perform challenging tasks well o Need for affiliation  a strong desire to establish and maintain friendly, compatible interpersonal relationships o Need for power  a strong desire to influence others, making a significant impact or impression o Managerial implications of need theories  appreciate diversity, appreciate intrinsic motivation - Process theories  motivation theories that specify the details of how motivation occurs - Expectancy theory  a process theory stating that motivation is determined by the outcomes that people expect to occur as a result of their actions on the job o Outcomes  consequences that follow work behaviour o Instrumentality  probability that a particular first-level outcome will be followed by a particular second-level outcome o Valence  expected value of work outcomes; extent to which they are attractive or unattractive to the individual nd  Valence of a first-level outcome = ∑(instrumentalities x 2 -level valences) o Second-level outcome  consequences that follow the attainment of a particular first-level outcome; more personal to the individual o Expectancy  the probability that a particular first-level outcome can be achieved o Force  the effort directed toward a first-level outcome  Force = first level valence x expectancy o Managerial implications of expectancy theories  boost expectancies, clarify reward contingencies, appreciate diverse needs - Equity theory  a process theory stating that motivation stems from a comparison of the inputs one invests in a job and the outcomes one received in comparison with the inputs and outcomes of another person or group o Individuals are motivated to maintain an equitable exchange relationship  perceptually distort one’s own inputs or outcomes or those of the other group; choose another comparison person/group; alter one’s inputs or
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