Learning and Decision Making

1. Learning andDecision Making • Chapter 8

3. Learning Defined • Permanent changes in an employee’s knowledge or skill that result from experience • Employees learn two types of knowledge: • Explicit - easy to communicate and teach • Tacit - more difficult to communicate; gained with experience

4. Methods of Learning • How do employees learn? • Reinforcement

5. Methods of Learning

6. Methods of Learning

7. Methods of Learning • How do employees learn? • Reinforcement • Observation

8. Methods of Learning

9. Methods of Learning • Some people learn differently, as a function of the goals and activities that they prioritize • Goal orientation • Learning • Performance-prove • Performance-avoid

10. Decision Making • The process of generating and choosing from a set of alternatives to solve a problem. • Learning has a significant impact on decision making

11. Decision Making Identify the problem Is the problem recognized? Has it been dealt with before? Yes No Programmed Decisions Nonprogrammed Decisions (Rational decision making model) (Intuition, “Gut feeling”)

12. Decision Making • Nonprogrammed decisions • Rational decision-making model

13. Decision Making Problems • Common reasons for making bad decisions • Limited information • Faulty perceptions • Faulty attributions • Escalation of commitment

14. Limited Information

15. Faulty Perceptions • Heuristics and decision-making biases • Availability • Anchoring • Framing • Representativeness • Contract • Recency • Ratio Bias

16. Faulty Attributions

17. Escalation of Commitment • The decision to continue to follow a failing course of action • Throwing good money after bad

18. How Important is Learning?

19. Application • Training • Behavior modeling • Communities of practice • Transfer of training • Climate for transfer