Decision Making and Biases in Management

The video explores managerial decision making, highlighting its complexity, time constraints, and ethical implications. It discusses the brain's reflective and reactive systems, differentiates between programmed and non-programmed decisions, and identifies barriers like biases and conflicts. Techniques to improve decision making, such as heuristics and evidence-based approaches, are covered. The video also examines group decision making, emphasizing diversity and the role of a devil's advocate to prevent group think.

What are some characteristics of managerial decision making?

• Simplicity and complete information

• Complexity and time constraints

• Predictability and uniformity

• Unlimited resources and time

Which system in the brain is better suited for quick, life-saving decisions?

• Deliberative system

• Analytical system

• Reactive system

• Reflective system

What distinguishes non-programmed decisions from programmed ones?

• They are novel and lack clear guidelines

• They are based on well-understood criteria

• They require no additional information

• They are routine and repetitive

What is a common bias that affects decision making?

• Pessimism bias

• Negativity bias

• Optimism bias

• Confirmation bias

How can managers improve their decision making?

• By relying solely on intuition

• By skipping steps in the decision-making process

• By engaging in evidence-based decision making

• By avoiding input from others

What is a benefit of group decision making?

• It eliminates all biases

• It always leads to faster decisions

• It guarantees consensus

• It brings more knowledge and diverse perspectives

What is a potential downside of group decision making?

• It eliminates conflicts

• It can lead to groupthink

• It always results in better decisions

• It ensures all opinions are heard

What should managers do to avoid groupthink?

• Encourage a single voice to dominate

• Assign a devil's advocate

• Avoid diverse perspectives

• Suppress dissent

What is the role of heuristics in decision making?

• They are only applicable to non-programmed decisions

• They complicate the decision-making process

• They eliminate the need for data

• They are useful for making quick programmed decisions

Why is it important to consider ethical implications in decision making?

• To avoid negative consequences

• To satisfy all stakeholders

• To ensure decisions are made quickly

• To guarantee positive outcomes