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Individual Level
Perception
Motivation
Indivi
dual Decisio
n M Individual Learning
aking
Huma n Inpu t
Abilit y
Decisions:
A discrepancy between some current state of affairs and some desired state.
A decision-making model that describes how individuals should behave in order to maximize some outcome.
Rational: making consistent, value-
Define the problem. Identify the decision criteria. Allocate weights to the criteria. Develop the alternatives. Evaluate the alternatives.
Problem
clarity Known options Clear preferences Constant preferences Not time or cost constraints Maximum pay-off
Creativity:
Component Model of Creativity: The proposition that individual creativity requires expertise, creative thinking skills, and intrinsic task motivation.
Experti se
CREATIVITY
Task Motivatio n
Creativity Skills
Bounded
Rationality Common Biases and Errors Intuition Individual Differences Organizational Constraints Cultural Differences
Bounded
Rationality: Making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
Overconfidence
Bias Anchoring Bias: a tendency to fixate on initial information, from which we then fail to adequately adjust for subsequent information. Confirmation Bias: the tendency to seek out
information that reaffirms past choices and to discount information that contradicts past judgments.
Availability
people to base their judgments on information that is readily available to them. Representative Bias: assessing the likelihood of an occurrence by inappropriately considering the current situation as
Escalation
increased commitment to a previous decision in spite of negative information. Randomness Error: the tendency of individuals to believe that they can predict the outcome of random events. Winners Curse: a decision-making
of Commitment: an
dictum that argues that the winning participants in an auction typically pay too much for the winning item.
Hindsight
to believe falsely that wed have accurately predicted the outcome of an event, after that outcome is actually known.
Focus Look
on Goals
Dont
Increase
your options.
Personality:
Gender:
Evidence indicates that women analyze decisions more than men do, ruminating (reflecting at length) and overthinking about problems before making a decision,
Performance
Evaluation Reward Systems Formal Regulations (Programming Decisions) System-Imposed Time Constraints Historical Precedents
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