OB Chapter 7: Definition Match-Up

1. escalation of commitment 2. creativity

3. programmed decision 4. satisficing
5. mental models 6. subjective expected utility
7. bounded rationality 8. anchoring and adjustment heuristic
9. scenario planning 10. implicit favourite
11. intuition 12. availability heuristic

8 A natural tendency for people to be influenced by an initial anchor point such that they
do not sufficiently move away from that point as new information is provided.

7 The view that people are bounded in their decision-making capabilities, including access
to limited information, limited information processing, and tendency toward satisficing
rather than maximizing when making choices.

2 The development of original ideas that make a socially recognized contribution.

12 A natural tendency to assign higher probabilities to objects or events that are easier to
recall from memory, even though ease of recall is also affected by nonprobability factors
(e.g., emotional response, recent events).

1 The tendency to repeat an apparently bad decision or allocate more resources to a

failing course of action.

10 A preferred alternative that the decision maker uses repeatedly as a comparison with
other choices

11 The ability to know when a problem or opportunity exists and to select the best course
of action without conscious reasoning

4 Selecting an alternative that is satisfactory or "good enough" rather than the alternative
with the higher value (maximization).

9 A systematic process of thinking about alternative futures and what the organization
should do to anticipate and react to those environments.

3 A choice of action that follows standard operating procedures; they have been resolved
in the past, so the optimal solution has already been identified and documented.

6 The probability of satisfaction resulting from choosing a specific alternative in a decision.

5 visual or relational images in our mind of the external world - it represents how things
should be

OB – Chapter 7 – Decision Making and CreativityPage 1