MG 210 Study Guide - Quiz Guide: Confirmation Bias, Selective Perception, Operations Management
Document Summary
How do managers make decisions: identification of a problem, identification of decision criteria, allocation of weights to criteria, development of alternatives, analysis of alternatives, selection of an alternative, implementation of the alternative, evaluation go decision effectiveness. They have to make a caparison baton current reality and some standards: past performance, previously set goals, the performance of some other unit within the organization. Decision criteria: factors that are relevant in a decision. Decision implementation: putting a decision into action. Heuristics: judgment shortcuts or rules of thumb used to simplify decision making. When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance: immediate gratification bias. Describes decision makers who tend to want immediate rewards and to avoid immediate costs: anchoring effect. When decision makers fixate on initial information as a starting point and then once set fail to adequately adjust for subsequent information: selective perception bias.
