MHR 405 Chapter Notes - Chapter 7: Subjective Expected Utility, Bounded Rationality, Mental Models
12 Dec 2017
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Document Summary
Employees, suppliers, customers, and other stakeholders present (or hide) information in ways that makes the decision maker see the situation as a problem, opportunity, or steady sailing: decisive leadership. Many leaders announce problems or opportunities before having a change to logically assess the situation: solution-focused problems. When decision makers do recognize that the situation requires a decision, they sometimes describe the problem as a veiled solution: perceptual defence. People sometimes fail to become aware of problems because they block out bad news as a coping mechanism: mental models. Decision makers are victims of their own problem framing due to existing mental models. Bounded rationality: the view that people are bounded in their decision-making capabilities, including access to limited information processing, and tendency towards satisficing rather than maximizing when making choices. Problems with goals: the rational choice paradigm assumes that organizational goals are clear and agreed on, organizational goals are often ambiguous or in conflict with each other.
