Key Terms
Decision-making
Process of evaluating options and selecting one
Stakeholders
All individuals and groups affected by the organization
Emotional intelligence
Ability to recognize, understand, and manage emotions in self and others
Heuristics
Mental shortcuts that reach good decisions efficiently; built from experience
Satisficing
Selecting the first acceptable solution rather than optimizing
Programmed decisions
Routine decisions with established criteria and repeatable structure
Confirmation bias
Favoring information that confirms existing beliefs; ignoring contradictory evidence
Ethical Decision-Making
James Rest's Four Components
Brainstorming
Generating as many alternatives as possible, typically in groups
Groupthink
Group converges on agreement quickly without substantive discussion
Suppression of dissent
Powerful group member silences differing views
Bounded rationality
Inability to be fully rational due to cognitive limits and incomplete information
Creativity
Generating new or original ideas using imagination; stepping back from conventional thinking
Critical thinking
Disciplined evaluation of information quality; identifying logical fallacies
Escalation of commitment
Staying committed to a failing decision despite mounting negative outcomes