Management Skills Final Exam, Rutgers Business School (Markert) – Flashcards

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collaborating (conflict styles)
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when one party desires to fully satisfy the concerns of all parties (i.e. search for mutually beneficial outcome)
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accommodating (conflict styles)
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when one party seeks to appease an opponent and may be willing to place the opponent's interests above his/her own (i.e. sacrificing to maintain the relationship)
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competing (conflict styles)
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when one person seeks to satisfy his/her own interests regardless of impact on other party
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compromising (conflict styles)
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when there is no clear winner or loser; rather, a willingness to accept a solution that provides incomplete satisfaction for both parties involved
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avoiding (conflict styles)
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when one person seeks to withdraw from or suppress the conflict (such as ignoring the other party)
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distributive bargaining (negotiation as value claiming)
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negotiation that seeks to divide up a fixed amount of resources; interests of parties fundamentally opposed; parties tend to adopt competitive orientation and short term focus
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negotiation
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A decision-making process whereby two or more parties agree how to allocate scarce resources
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Why negotiate?
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1. Interdependence 2. Dynamic nature of business 3. An increasingly diverse set of customers/clients/partners 4. Increased inter/intra-organizational competition
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primary tactics (distributive bargaining)
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1. Heavy reliance on strategies aimed at maximizing one's personal outcome/utility (or claiming the most value for self) 2. Extreme first offers/anchoring 3. Tiny concessions 4. Guarded information sharing 5. Persuasion, aimed at influencing other parties' perceptions of what is possible
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integrative bargaining (primary tactics)
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1. Problem solving aimed at creating joint value or maximizing joint outcomes/utility 2. Joint search for additional issues, compatible interests, potential tradeoffs, and creative ways of satisfying both parties' underlying interests
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Turning distributive into integrative
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1. Build trust -Reciprocate voluntarily -Make credible commitments -Find third party endorsers (build coalitions) 2. Uncover other side's interests -Ask diagnostic questions aimed at uncovering this 3. Share information or resources -Focus on exchange vs use value -Do not make concessions, make tradeoffs (i.e. activate norm of reciprocity) 4. Look for multiple issues and differing interests 5. Create "packages": turn one resource into multiple -Focus on underlying interests (i.e. time and risk preferences) -Real world job negotiations: compensation (salary, moving expenses, pay off student loans, mortgage financing) 6. Stake your claim -Make an aggressive first offer (package, if possible), accompanied by some rationale. Leave room for concessions. -Make strategic concessions: consider making multiple simultaneous offers
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integrative signs
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1. Is the negotiation just about price, or are there multiple issues? If the former, can other issues be added? 2. Do we have different priorities among issues? 3. Might we have congruent interests on some issues? 4. Do we have different expectations about future/likely outcome? 5. Is a long term relationship desired?
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integrative advantages
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1. Prevent impasses 2. Leave no value on table (i.e. efficient) 3. Allow both parties to capture at least as much value as, although generally more than, they would have otherwise (i.e. improve outcomes) 4. Leave both parties feeling more satisfied, thereby strengthening parties' relationship and building foundation for amicable future negotiations 5. Contribute to welfare of broader community 6. More likely to "stick"
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What goes wrong in negotiations?
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1. Fixed pie bias: tendency to assume that negotiators' interests must be diametrically opposed when this is not necessarily so. Leads to myopic focus on value claiming. Miss compatible issues. 2. Asymmetrical information: one party often has more information. Makes "winner's curse" more likely 3. Escalation of commitment: become too invested to walk away, even when it is clearly in our self interest to do so 4. Overconfidence: leads us to behave stubbornly 5. Framing effects: affect how we/counterparts evaluate options as presented across the bargaining table
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integrative bargaining (negotiation vs value creation)
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Negotiation that seeks one or more settlements that can create a win-win solution; interests of parties at least partially congruent/convergent; parties tend to adopt cooperative orientation and long term focus; multiple issues exist
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bases of power
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1. Personal: source of expertise/liability, administration, and desire to please 2. Positional (formal): fear of negative (threats-coercive), hope for positive rewards; legitimate
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procedural (tactics of influence)
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1. Influencing the way that the group as a whole makes decisions or gets things done (group) 2. Techniques for influencing the rules or procedures used to exchange information and aggregate individual preferences; that is, for managing the group as a whole
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interpersonal (tactics of influence)
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1. Influencing other group members (individuals) 2. Technique for communicating your message persuasively and for managing your impact on and relations with other individuals in a group 3. What do you say, and to who?
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influence
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1. Central to other key managerial skills, including teamwork, networking, conflict, resolution, and negotiations Examples: -Getting buy-in for ideas/initiatives/proposed change -Inducing others to comply with work related requests (additional resources or deadlines) -Resolving work-related disagreements (conflict) -Guding others (superiors, colleagues, and teammates) toward preferred or optimal decisions
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social validation proof (persuasion)
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People feel obligated to comply with a request for behavior if it is consistent with what similar others are thinking or doing Ex: The list technique (request after showing a list to others who have complied), social labeling (being labeled as "charitable")
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friendship/liking (persuasion)
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Individuals are more willing to comply with the requests of friends or other liked individuals Ex: Similarity (dress), compliments/praise, cooperation
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reciprocity (persuasion)
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People feel obligated to give back the form of behavior they received Ex: The "free" (and unsolicited) gift, the "free" home inspection, an extreme followed by a moderate request ("door-in-the-face" technique)
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authority (persuasion)
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Individuals are more likely to follow the suggestions of someone who is a legitimate authority Ex: Authority with regard to a specific situation (doctors/business), authority that generalizes outside of a specific situation (security guard/jay walker)
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scarcity (persuasion)
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Individuals should try to secure most opportunities that are scarce or dwindling Ex: Limited number tactic, deadline technique
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commitment/consistency (persuasion)
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After committing to a position, one is more willing to comply with requests for behaviors that are consistent with that position Ex: foot-in-the-door technique (initial compliance to a small favor is followed up with a larger, related favor), "even a penny would help" (legitimizing of small favors)
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1. Interpersonal Influence: Protect Your Credibility
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1. Make yourself seem more trustworthy than others 2. Do not display your personal agenda 3. Use your anger rarely; direct it at the issue and not the person. Remain collected and appear impartial 4. Do not make absolute statements (easy to discredit) 5. Maintain a consistent position. Be wary of appearing hypocritical
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2. Interpersonal Influence: Undermine Your Opponent's Credibility
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1. Highlight their personal agenda 2. Inflame their emotional outbursts 3. Lead the toward absolute statements to discredit them 4. Lead them towards and highlight their inconsistencies and potential hypocrisy
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3. Interpersonal Influence: Frame Arguments Carefully and Provide Evidence Strategically
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1. Provide not only data, but also vivid examples, stories, and analogies to support your view 2. Be careful of putting all your cards on the table right away 3. Ask questions instead of asserting positions so opponents can "discover" your insights 4. Frame points in the interest of others 5. Do not attack their deductions directly; focus on the information underlying the deductions 6. Respond to your opponent's good points
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4. Connect emotionally with group members (interpersonal influence)
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1. Do not be too emotional but appeal to the audience's emotions 2. Reciprocity: create norms through your behavior (norm of asking questions) 3. Liking/scarcity 4. Refer to super-ordinate goals, commonalities (liking), and use social proof
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Influence vs Power
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1. Power: the potential to influence others 2. Influence: exercising power to change others' behaviors, attitudes, and/or values 3. Power is a function of dependency 4. A has power over B to the extent that B is dependent on A for resources -B believes A has valuable resources -B has few alternatives to A 5. Power is based on importance of resources, scarcity, and lack of substitutes
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conversation conflict
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1. Honor thy partner: begin with an admission of regret and some responsibility for contribution to shared problem 2. Disarm by restating your intentions: clarification by aligning words with intentions. Do not argue over opposition's perceptions 3. Fight tactics, not people: openly identify opposition's tactic (i.e. name-calling)
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conflict paradigms
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1. Traditional view: all conflict is bad 2. Interactionist view: minimal conflict level helps group but not all conflicts are good
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task conflict
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1. Refers to disagreement about tasks/ideas Examples include: -"I hate your idea" -Different ideas of opinions when completing assignments -Discussion of evidence for alternative solutions when formulating team recommendations -Consideration of pros and cons of each other's opinions when discussing work -Debating merits of different ideas when analyzing information or making decisions
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helpful vs harmful conflict
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1. C-type conflict: "cognitive conflict" or "task conflict" is conflict about task-related issues -Ensures the most influential person does not determine the course of action -Enables people to learn from each other and consider each other's views -Increases likelihood that people will accept the final decisions -Teams more focused, creative, integrative, and open 2. A-type conflict: "affective conflict" or "relational conflict" is about individual issues -Blocks communication and draws the focus from the team to the individuals -Limits conversation to a few people and decreases the quality of work -Decreases the likelihood that people will accept final decisions and work together well in the long-term -Teams less focused, creative, integrative, and open
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relationship conflict
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-Refers to interpersonal incompatibilities such as feelings of frustration, annoyance, and irritation Examples: -emotional disagreement -personal friction -tension amongst team members -*at high levels, task conflict becomes relationship conflict
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Conflict Processes Stage 1: Potential opposition or incompatibilty
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1. Refers to the appearance of conditions that create opportunities for conflict to arise Examples: -Communication (i.e. misunderstandings) -Structure (i.e. group size, leadership, reward) -Personal factors (i.e. personality, emotions, and values)
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Conflict Processes Stage 2: Cognition and personalization
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Where conflict issues tend to be realized and defined (i.e. when parties decide what conflict is about)
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Conflict Processes Stage 3: Intentions
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Decisions to act in a given way, which intervene between people's perceptions and emotions and their overt behavior
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Conflict Processes Stage 4: Behavior
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1. The stage where conflict becomes most visible (i.e. statements, actions, and reactions as overt attempts to implement their own intentions) 2. Dynamic process of interaction
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Conflict Processes Stage 5: Outcomes
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1. The action-reaction interplay between conflict parties resulting in consequences 2. Functional and dysfunctional outcomes
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Abilene Paradox (Symptoms)
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1. When group members adopt a position because they feel other members desire it 2. Team members do not challenge one another because they want to avoid conflict or achieve consensus
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Prevention
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1. Confront issue in a team setting 2. Conduct a private vote 3. Minimize status differences
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Prevention
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Depends on: 1. Stimulation of constructive, intellectual conflict 2. Reduction of concerns about how the group is viewed by others Tactics Include: 1. Monitor team size 2. Provide a face-saving mechanism for fears 3. Invite different prospectives 4. Appoint devil's advocate
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Group Polarization: Symptoms
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1. Need to be right: looking to the group for reality and the more people who hold a particular opinion, the more right an answer appears 2. Need to be liked (and not ostracized): one way to gain immediate acceptance is to express attitudes consistent with those of the group members
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Pitfall: Group Polarization
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Tendency for group discussion to intensify group opinion (can be "risky" or "cautious")
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Pitfall: Abilene Paradox
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Group members adopt a position out of desire to avoid conflict and reach consensus at all costs; is a form of "pluralistic ignorance" or a widely held belief that everyone else knows or believes something that we do not
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Pitfall: Group Think
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When members place consensus above all priorities including using good judgement when the consensus reflects poor judgement or actions that are improper or immoral
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Approaches to Decision-Making: Group Technique
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1. Democratic: group votes and majority rules 2. Pros: quick way of including members' opinions and can produce high-quality decisions 3. Cons: voting can prematurely close discussion and lead to lack of commitment or resentment from losing minority (creating "winners" and "losers")
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Approaches to Decision-Making: Full Participation
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1. Consensus: group reaches consensus 2. Pros: best way to fully utilize the team's resources and decisions made with this approach have a greater likelihood of implementation by the team 3. Cons: time-consuming and takes greater skills and energy to reach consensus
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Approaches to Decision-Making: Leader-oriented
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1. Consultative leader: consults with group members 2. Pros: very efficient, takes little time and may provide leader with crucial information to help make a decision 3. Cons: uses only some of team's resources, may not fully develop member commitment or resolve conflict, and may encourage competition among members to influence the leader
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Decision-Making in Organizations: Devil's Advocate
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1. After planning group has developed alternative solutions, one or more members receive it and are instructed to find fault with it 2. Antidote for groupthink
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Decision-Making in Organizations: Delphi Technique
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Participants do not engage in face-to-face discussions 1. Organization identifies panel of experts 2. Each panel member receives basic problem 3. Each expert independently and anonymously writes comments, suggestions, and solutions to a problem 4. Central location reproduces experts' comments 5. Each panelist receives copy of experts' comments/solution 6. Each expert provides feedback on others' comments, writes new ideas and forwards to central location 7. Repeat 5 and 6 until decision is made
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Decision-Making in Organizations: Nominal Group Technique
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-Individuals are brought together to develop a solution to a problem -Concerned with both generation and evaluation of ideas 1. Silent generation of ideas 2. Round-robin recording of ideas (each group) 3. Discussion of ideas 4. Preliminary vote on item importance (ranked secretly) 5. Additional discussion 6. Final vote
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Decision-Making in Organizations: Brain-storming
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-Technique for creatively generating alternative solutions to a problem 1. Do not evaluate or discuss alternatives: evaluation comes later. Avoid criticism of your own or others' ideas 2. Encourage "free wheeling": do not consider any idea outlandish; may lead to truly creative decision 3. Encourage and welcome quantities of ideas: the greater number, the greater ideas will remain after evaluation 4. Encourage "piggybacking": group members should try to combine, embellish, or improve on an idea
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Decision-Making in Organizations: Dialectical Inquiry
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1. Formation of two or more divergent groups to represent full range of views. Groups are internally homogeneous 2. Each group meets separately and presents a "for" and "against" position to the other groups 3. Each group debates other groups' position and defends its own. Goal to confirm what each group expresses as position 4. Information gaps and establishes guidelines for more research 5. Attempt to achieve consensus. Permits further refinement of information
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1. Procedural Influence: Who Sits Where
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1. Seating position determines leadership 2. Table configuration determines level of collaboration
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2. Procedural Influence: Who Speaks When
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1. Speak early to frame discussion 2. Choose an ally to speak first 3. Have allies use non-verbal cues to show agreement
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3. Procedural Influence: Timing of Vote
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Preliminary vote when you have initial support
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4. Procedural Influence: Voting Format
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1. Public vs private 2. For public votes, frame questions to get your vote out first
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5. Procedural Influence: Decision Rule
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1. Open vs secret ballot 2. Majority vs super majority vs unanimity 3. Avoid majority rule when you are in the minority
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6. Procedural Influence: Controlling What Goes on the Agenda
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1. Which issues to consider 2. Amount of time spent on each topic
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7. Procedural Influence: Influence Group Norms
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1. Allow criticism 2. Limit talking time
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Group Decision-Making Disadvantages: Information Under-Utilization
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1. Group discussions are not always good at eliciting information Example: Groups do not pool all knowledge available; instead focusing on commonly held information
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Group Decision-Making Disadvantages: Communication Problems
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1. Decisions can get bogged down in emotional conflicts that waste time and damage morale Ex: Power team members who talk too much can dominate discussion or group gets sidetracked
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Group Decision-Making Disadvantages: Inefficient
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Groups suffer from "process loss" due to "wasted" discussion which prevents groups a sole focus the tasks Ex: Discussions about coordination and social issues
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Group Decision-Making Advantages: Motivational Effects
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Being part of a group encourages members to try to make good decisions and perform better Ex: Members are more committed to a decision in which they have participated, so are more likely to support its implementation
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Group Decision-Making Advantages: Resources
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Group members combine different skills and knowledge to make higher-quality decisions Ex: Member interactions lead to new ideas that no single member would have developed (called "process again")
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Decision Biases: Escalation of Commitment
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1. Once having made an investment, we do not want to admit that we may have been wrong in the first place 2. Also known as "throwing good money after bad"
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Decision Biases: Framing
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1. The way a situation is described can determine our reactions as we tend to adopt the "frame" presented rather than restating the problem in our own words 2. People tend to be "risk averse" when the situation is described in terms of gains but "risk seeking" when the situation is described in terms of avoiding losses
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Decision Biases: Anchoring
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1. Giving disproportionate weight to the first piece of information you receive 2. Even when you recognize the irrelevance of the anchor, you are influenced by it and fail to adjust appropriately
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Decision Biases: Representativeness
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People tend to make judgements on the basis of stereotypical cues or information rather than by using more deliberate information processing
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Decision Biases: Availability
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1. Tendency to base judgements on information that is readily available 2. Events that evoke emotions are particularly vivid and/or more recent tend to be more available in our memory, leading us to underestimate the chances of unlikely events (i.e. airplane crashes)
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Decision Biases: Confirmation
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1. We tend to seek out information that confirms rather than challenges what we think 2. In time of uncertainty, we fail to appreciate how much we really do not know 3. Also called the "estimating" trap
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Decision Biases: Overconfidence
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1. When given factual questions and asked to judge the probability that our answers are correct, we tend to be far too optimistic 2. Research shows individuals whose individual and interpersonal abilities are weakest and most likely to overestimate their performance and ability
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Attributional Biases: Self-Serving Bias
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Tendency to take credit for successes and avoid blame for failures
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Attribution Biases: Fundamental Attribution Error
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Tendency to over-attribute others' behavior to internal rather than external causes (i.e. personality, ability, effort)
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Bounded Rationality: Assumptions
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1. Select first alternative that is satisfactory 2. Recognize their conception of the world is simple 3. Comfortable making decisions without determining all alternatives 4. Make decisions by rule of thumb (called "heuristics")
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Models of Decision-Making: Bounded Rationality
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1. Constructing simplified models that extract essential features from problems without capturing entire complexity 2. We can then behave rationally within the limits of the simple model
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Models of Decision-Making: Rational (Normative)
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1. Define decision to be made 2. Establish important criteria for both processes and result 3. Consider all possible solutions and alternatives 4. Calculate consequences of solutions vs likelihood of satisfying criteria for each alternative 5. Choose best option
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Rational (Normative): Assumptions (Highly Unrealistic)
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1. Outcome will be completely rational 2. Decision-maker has a consistent system of preferences which is used to choose best alternative 3. Decision-maker is aware of all possible alternatives 4. Decision-maker can calculate probability of success for each alternative
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Groupthink: Symptoms
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1. Overestimation by the group: invulnerable, morally correct, and exempt from standards 2. Close-mindedness: collective rationalization and stereotyping our group members 3. Pressure towards uniformity: intolerance or diverse opinions and dissenters subject to social pressure, resulting in suppression of their reservation
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