Della Kidz Decision Making Coping with Uncertainty Creative Problem Solving

Explain what a condition of risk is and what managers can do to cope with it When a decision must be made on the basis of incomplete, but reliable information Inferential statistical techniques can help managers objectively cope with risks

Explain the need for a contingency approach to group-aided decision making Nature of Task Insights from research Individuals are faster, but groups tend to produce better results Problem-solving task Best results achieved by polling the contributions of individuals working alone Complex task Brainstorming task Same as for complex task Learning task Groups consistently outperform individuals Contributions from average-ability group members tend to improve when they are teamed with high-ability group members Concept mastery/ creative task

Challenges for Decision Makers Dealing with Complex Streams of Decisions 7 intertwined factors of decision complexity Multiple Criteria Intangibles Risk and Uncertainty Long-term Implications Interdisciplinary Input Pooled Decision Making Value Judgments

Challenges for Decision Makers Coping with Uncertainty Certainty Risk Uncertainty Information-Processing Styles Thinking Style Intuitive Style

Challenges for Decision Makers Avoiding Perceptual and Behavioral Decision Traps Framing Errors Escalation of Commitment Overconfidence

The Global Manager Citizens Bank of Canada Goal is to make social responsibility a part of everyday practices, not a part of after-profit “giving back” exercise. Bank’s new Ethical Policy Belief that they are “…stewards of the funds we hold” “Demonstrate our leadership by being responsible and conscientious about where our money comes from and what we do with it.” New socially responsible investment strategy.

Mental Locks to Creativity Looking for the “right” answer Always trying to be logical Strictly following the rules Insisting on being practical Avoiding Ambiguity

Mental Locks Con't Fearing and Avoiding Failure Forgetting how to play Becoming too specialized Not wanting to look foolish Saying “I’m not creative”