MGT 240 Chapter 7 Tomlinson

According to Harvard Business Review, increasingly stringent regulations and the 24/7 news cycle are driving reasons for the increase in a. donations to the ACLU. b. closing of stores on small town squares. c. CEO firings due to ethical lapses. d. job applicants relocating from other cities.

CEO firings due to ethical lapses.

As the manager of a consumer electronics retailer, Dominique understands that evidence-based management is not just for senior executives. Which of these is probably the way that Dominique assigns her employees' schedules? a. Dominique knows that her employees are happy because she lets them set their own schedules, even though she has to cover several shifts each week. b. Each quarter, Dominique awaits directives from her regional supervisor before setting employee schedules. c. Dominique places her newest employees at the customer service desk so they will learn more quickly. d. Dominique uses survey results to ensure her sales staff who score highest on customer satisfaction are scheduled in the times and departments with the most shoppers.

Dominique uses survey results to ensure her sales staff who score highest on customer satisfaction are scheduled in the times and departments with the most shoppers.

Which of the following is an appropriate measure to prevent groupthink? a. Rely only on the experts that are members of the group. b. Encourage each group member to vocalize doubts and criticisms. c. Limit individual reflection outside of the group. d. Question the loyalty of anyone who disagrees.

Encourage each group member to vocalize doubts and criticisms.

Akio is evaluating the alternatives that might solve his company's problem. One alternative would be an excellent outcome, but Akio is considering if he has enough time and resources to achieve it. Akio is asking himself: a. Is it efficient? b. Is it ethical? c. Is it feasible? d. Is it profitable?

Is it feasible?

What is a sign that a group is suffering from groupthink? a. Peer pressure makes members agree with the ideas of the other people in the group. b. Minority dissent is allowed, even encouraged. c. All ideas and conclusions must be backed up with data. d. The group would rather take the time to come to the right decision rather than agree too quickly on what may be the wrong decision.

Peer pressure makes members agree with the ideas of the other people in the group.

Which of the following reasons makes it hard to be evidence-based? a. Downplay risks and continue on a path. b. Share results with others. c. Try to not be trapped by preconceived notions. d. The evidence doesn't quite apply.

The evidence doesn't quite apply.

Despite your best intentions, it's hard to bring the best evidence to bear on your decisions. Why? a. It is too expensive and it's not ethical and there's not enough good evidence. b. It will hurt diversity and synergy within your organization. c. There's no competition or there's too much competition. d. There's too much evidence and there's not enough good evidence.

There's too much evidence and there's not enough good evidence.

Greta, the quality control inspector at a baby food copacking factory, has discarded fourof the previous nine batches of baby food for trace levels of contamination. Great needs to turn this problem around and find a way to improve the situation, so she should probably perform a. a minority dissent. b. a diagnosis. c. project post-mortemd. d. a feasibility analysis.

a diagnosis.

Luana is the owner of a small business that sells smoked meats and cheeses. The trendiest restaurant in a nearby city approached Luana about serving her products on its menu. Luana knows that seizing this opportunity could a. inhibit her goal achievement. b. allow her to grow her business much faster than she expected. c. fully align her tactical and corporate strategic goals. d. decrease brand awareness for her business.

allow her to grow her business much faster than she expected.

Ichiro is an on-site coordinator for the International Olympics Committee. Ichiro is good at his job because he regularly seeks new ideas and contrary opinions. He tolerates ambiguity well while being quite task-focused. Ichiro's decision-making style is best described as a. analytical. b. conceptual. c. valuable. d. behavioral.

analytical

James and En-Chi are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to reduce the price to reflect what the market shows their home is really worth. James and En-Chi are participants in ________ bias. a. ego b. confirmation c. sunk-cost d. anchoring adjustment

anchoring adjustment

As his business grows, Kirvo knows his most important business needs are automated business process, data analysis, and customer engagement. What would you recommend to Kirvo to help him? a. electronic brainstorming b. escalation of commitment c. big data d. artificial intelligence

artificial intelligence

Saburo, a server in a downtown café, is very popular with customers and employees. He has a warm personality and will always lend a hand when needed. Saburo has a supportive nature that leads people to confide in him. He does have a tendency to avoid conflict and finds it difficult to say no when he might hurt someone's feelings. Saburo likely has a(n) ________ decision-making style. a. directive b. conceptual c. behavioral d. analytical

behavioral

Predictive Health, a fast-growing medical research firm, has accumulated so much patient information that conventional database management systems cannot handle its needs. Therefore, Predictive Health purchased very sophisticated analysis software and supercomputing-level hardware to leverage the power of a. cyber-age databases. b. mega IT. c. super data. d. big data.

big data.

Santiago is the vice president of operations for a company that manufactures floor cleaning robots. The company's largest factory recently burned down, though thankfully no one was harmed. Now Santiago must decide the best course forward to replace that manufacturing capacity. He is considering rebuilding in the same location, moving to another city or state, or even another continent. In making this decision, Santiago will likely encounter ________ due to the countless locations, timelines, contractors, and demand pressures he must consider. a. an ethical dilemma b. bounded rationality c. groupthink d. a bounded dilemma

bounded rationality

In the Management in Action case, it is apparent that Juul's CEO is unable to make a rational decision because of imperfect information, conflicting goals, and the complexity of the problem. There barriers are associated with a. hubris. b. intuition. c. bounded rationality. d. ethical dilemmas.

bounded rationality.

Which of the following lists represent ways to improve group problem solving as identified by decision-making experts? a. consensus, groupthink, dialectic method b. devil's advocacy, minority dissent, goal displacement c. brainstorming, dialectic method, post-mortems d. peer pressure, brainwriting, bullying

brainstorming, dialectic method, post-mortems

Which of the following is an approach that increases creativity by limiting social cues and encouraging an uninterrupted flow of ideas? a. brainstorming b. brainwriting c. groupthink d. electronic visualization

brainwriting

Delfina has set up a booth at a food and wine trade show. Delfina is giving away samples of her restaurant's most popular dish, but she wants to only give free samples to people who might buy her food. Thus, Delfina looks at everyone who passes by and employs the ________ bias to decide which people might be customers. a. hindsight b. categorical thinking c. escalation of commitment d. anchoring and adjustment

categorical thinking

Based on what you read in the Management in Action case, assume Juul's leadership needs a high tolerance for ambiguity and a high level of people and social concerns. With this in mind, what decision-making style should its CEO utilize? a. behavioral b. directive c. analytical d. conceptual

conceptual

Angelina owns a small interior decorating firm. She loves the social aspects of the job, such as meeting potential clients and browsing for new furniture and fabrics, and she loves to take risks. Angelina relies on intuition and discussions with others to acquire information. Angelina utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Angelina's decision-making style is best described as a. directive. b. conceptual. c. ambiguous. d. analytical.

conceptual.

Based on what you read in the Management in Action case, assume law enforcement only sought to seek data that affirms their position that Juul is breaking the law, and discounted information showing the company was not doing so. This means that law enforcement is most likely suffering from the ________ bias. a. confirmation b. sunk-cost c. availability d. anchoring and adjustment

confirmation

Reggie's Records uses time-series forecasts, such as past holiday sales and the strength of store sales this year, to predict future sales based on patterns of historical data. Reggie's is using a. data analytics. b. groupthink. c. sunk-cost bias. d. big data.

data analytics.

Ronin feels that the best decisions result when his team members present conflicting proposals before choosing one. Ronin believes the ________ method saves time by exploring opposing options up front. a. brainstorm b. dialectic c. project post-mortem d. Big Data

dialectic

Max was recently promoted to production manager at a busy boat factory. As a department manager, Max had proven himself to be very efficient, and he had a logical and practical approach to solving problems. Max has a reputation for being decisive and getting things done. Most of the factory's employees like Max, but they feel he exercises too much control over them. Max most often uses a(n) ________ decision-making style. a. directive b. conceptual c. ambiguous d. behavioral

directive

Nikos, the office manager of a large optometrist clinic, recently purchased a used copier. It seems as if Nikos becomes more committed to the copier every time it jams, even though employees are having many troubles with it. Nikos is likely struggling with the ________ bias. a. framing b. hindsight c. anchoring and adjustment d. escalation of commitment

escalation of commitment

Warrick has a Bachelor's degree in ethics and human resources, and he has extensive experience working with employees and managers regarding ethics, especially in the area of ethical dilemmas. In his current position he has assisted extensively in determining if the company's decisions are both ethical and lawful. Based on his background, Warrick would probably be ideally suited for the position of a. chairman of the board. b. values specialist. c. decision tree manager. d. ethics officer.

ethics officer.

Audrey owns The Daily Dispatch, a small city newspaper, which was started by her great-grandfather and has been passed down through her family. Audrey loves journalism and being a small-business owner, but because so much news is now available online, she has seen the demand for her paper drop steadily. Audrey made a decision to change the original direction of the company and focus more on an Internet news service. Audrey is relying on ________ by demonstrating that managers need to think and act as if their company is an unfinished prototype, and by seeing her business as outsiders do. a. a decision tree b. a knowledge dilemma c. the knee-jerk reaction theory d. evidence-based decision making

evidence-based decision making

Seamus, the manager of a kitchen supply store, is stressed that his store may soon be closed by corporate. Seamus has not been sleeping well, and his anxiety and irritability are quite severe. On several occasions this month, Seamus has missed important details in his job. Today the district manager is coming to Seamus's store to perform a quarterly review. Seamus is worried the district manager may show an availability bias by a. focusing on performance data from only the last few weeks. b. saying she knew all along that Seamus was a poor manager. c. focusing on the excellent employee retention numbers for Seamus's store. d. being sure she is the best person to evaluate Seamus's performance.

focusing on performance data from only the last few weeks.

Republican advertisements about Representative Charlie Williams, the Democratic candidate, portray him as lazy, dishonest, and poor at his job. At the same time, the Democratic ads for Charlie Williams describe him as a caring, honest, hard worker. The sponsors of these advertisements know that ads can affect whom voters choose on Election Day. The tendency of voters to be influenced by how a situation or problem is presented to them is an example of a. framing bias. b. stirring the waters. c. goal displacement. d. overconfidence bias.

framing bias.

Carson Contractors specialize in ecofriendly construction of large, industrial buildings such as schools, hospitals, and factories. In response to the recent Coronavirus pandemic, Carson Contractors began to focus on construction techniques that minimize the spread of germs, such as improved ventilation, handwashing stations, and spaces with moveable furniture. The germ minimization goal now outweighs the ecofriendly goal, which is an example of a. goal bumping. b. secondary placement. c. satisficing. d. goal displacement.

goal displacement.

A team of HR professionals is reviewing options for the new benefits package. During their first meeting, Evona suggested offering the contract to HealthPlus HMO, and the others agreed with Evona for the sake of unanimity, without ever researching or analyzing the decision. Evona and her team are engaged in a. groupthink. b. heuristics. c. minority dissent. d. goal displacement.

groupthink.

Jordan likes working in as an insurance underwriter because it has structure and certainty, and the daily work is routine. Jordan probably a. has a high tolerance for ambiguity. b. has a large need for ambiguity. c. has a low tolerance for ambiguity. d. is in the middle ambiguity range.

has a low tolerance for ambiguity.

Tova, a general manager, was explaining to her assistant manager that, "When I make a decision on which employees will do a project, I use three simple factors. I consider their attitude, knowledge, and how hard they work." Tova uses ________ when making a decision. a. biases b. decision steps c. planning model d. heuristics

heuristics

Isaiah knows that what his boss has asked him to do is not in the best interest of the company. He also knows that if he does not do what he was asked to do, he will be written up and put on disciplinary action. He decides instead to do what his boss wants, just slower than his boss may have liked. Isaiah is using the principle of a. no brag, just the facts. b. evidence-based management is not just for senior executives. c. if all else fails, slow the spread of bad practice. d. treat your organization as an unfinished prototype.

if all else fails, slow the spread of bad practice.

Sara was telling her girlfriend about her new job. Sara explained, "We work in groups all the time and everyone gets along so well. I don't even have to speak up because my group just knows that I agree." Sara's group may be experiencing a. the wisdom of crowds. b. sense of invulnerability. c. illusion of unanimity and peer pressure. d. greater pool of knowledge.

illusion of unanimity and peer pressure.

Milena, the vice president of human resources, is working on the problem of restructuring the firm's compensation plan by using the rational model of decision making. In the first step, she identified the problem of pay and incentives not keeping up with market rates. In the second, step she thought of alternative solutions; and, in the third step, she evaluated alternatives and selected a solution. In the fourth and final, step Milena needs to a. do more research to look at types of compensation plans. b. select a contingency plan. c. implement and evaluate the compensation plan chosen. d. determine how costly the solution will be.

implement and evaluate the compensation plan chosen.

After three summers working for a local landscaping business, Scott suggested that his boss add snow removal as an extra service. With this holistic hunch, Scott was acting on ________ that snow removal might be a good addition to the service offerings. a. hindsight bias b. minority dissent c. a knee-jerk reaction d. intuition

intuition

Nonrational decision-making models, such as ________, describe how managers sometimes make decisions. a. complexity b. intuition c. competing values d. information overload

intuition

Zoe, a department manager at Furniture Square, is considering whether to use a group to develop a plan to incentivize employees to sell extended warranties and auxiliary services. Zoe should consider having the group make this decision if a. time is of the essence. b. it will increase acceptance of the plan. c. group members are not knowledgeable and need to learn more. d. group members are overly confident about decision making.

it will increase acceptance of the plan.

Ellis is overseeing the development of a huge greenspace in an urban city center. He knows this project will affect millions of people, and he wants all key groups represented. As he considers who to add to the development team, he lists many civic and private organizations, education and environmental advocates, leaders of commerce and industry, as well as political officials and municipal agencies, that must all be involved. As Ellis reviews his list, with over 40 people on it, he decides that is a good enough number, and he is about to start sending out the invitations to the first meeting. Ellis's partner passes by and reminds him that, in general, the larger the group, the a. lower the quality of their decisions. b. higher the quality of their decisions. c. faster they make decisions. d. faster they come to consensus.

lower the quality of their decisions.

With the community interested in eating healthy, Karima thought a restaurant centered on her grandmother's Mediterranean-style recipes would be popular. Her decision was uncertain, but it felt "right" to honor her grandmother by opening this restaurant. Karima is enacting a. rational decision making. b. MBO. c. nonrational decision making. d. analytics.

nonrational decision making.

Alonso is preparing for the grand opening of his wild animal sanctuary. He has wants to invite local politicians, animal rights activists, journalists, and his investors to the event. Because of all the important tasks that need done before the grand opening, Alonso cannot spend too much time searching for the best invitation, so he follows the satisficing model by a. ordering high-quality paper and handwriting each invitation. b. reviewing every possible invitation available online and at the local store. c. deciding not to send invitations after all. d. ordering some that seem fairly nice and have animals on them.

ordering some that seem fairly nice and have animals on them.

Fatma is certain her new business idea is going to be a success. She is so certain that she ignored the advice of her business professor to conduct a focus group and she invested her life savings to get her business started. Fatma may be experiencing ________ bias. a. overconfidence b. hindsight c. framing d. escalation of commitment

overconfidence

To improve your likelihood of making ethical decisions and having more positive interpersonal relationships, you could a. review the steps you took to arrive at your decision. b. practice mindfulness. c. identify the weak spot in your process. d. load up on new facts and information.

practice mindfulness.

LaShawn and his partner, Nathan, have decided to update their firm's computer network, although they have no expertise in this area. Recently, they discussed the many constraints on their decision, such as the complexity of technology, limited time and money, imperfect information, and our conflicting goals. These limitations are hindrances to a. satisficing. b. rational decision making. c. intuitive decision making. d. an ethical dilemma.

rational decision making.

Kade, who manages a hotel, was recently explaining to Deja, a regional manager, his quandary about whether to fire a front desk employee about whom several guests had complained. Kade described, "I first identified the problem as poor customer service, and then I brainstormed several solutions. I evaluated each alternative, and then I implemented my decision not to fire the employee. Instead I provided him with additional training. Finally, I followed up with an evaluation to see if his customer service skills had improved." Kade is applying the a. employee relations model of evaluations. b. nonrational model of decision making. c. strategic-planning model of leadership. d. rational model of decision making.

rational model of decision making.

Based on what you read in the Management in Action case, which of the following most directly portrays Juul's attempt at exercising evidence-based management? a. suspending all broadcast, print, and digital product advertising in the United States b. cutting ties with the VTA c. relying on more than 110 scientific studies supporting its products d. using AI to modify its vaporizer

relying on more than 110 scientific studies supporting its products

Last week, Nalani had to fire Logan from his entry-level logistics analyst position. Nalani felt that Logan did not receive proper training at Northernmost University. When Laila, also a graduate of Northernmost University, applied for Logan's old position, Nalani did not want to consider hiring her, feeling Laila also probably did not receive the proper training. Nalani was affected by ________ bias. a. blind b. training c. confirmation d. representativeness

representativeness

Rural Regional Hospital uses ________, so it is using robotic codes on its servers to route phone calls, track medical billing, and maintain patient records a. big data b. robotic process automation c. autonomous devices d. electronic brainstorming

robotic process automation

When acting upon the advice to organize your decisions into three categories, which type will require the most time and attention? a. quick decisions b. ethical decisions c. strategic decisions d. significant decisions

strategic decisions

As the director of human resources, Azhar convinced the company to spend a large sum of money on a new training program. After spending thousands of dollars implementing the training and almost four months of employee work time, they feel that there has been little improvement. The training is scheduled to continue for two more months, and Azhar feels that too much money has been spent to simply abandon the training. Azhar is experiencing a. blind bias. b. a training trap. c. confirmation bias. d. sunk-cost bias.

sunk-cost bias.

Trevon, owner of a hotel in Miami, is negotiating an executive lodging agreement with a major corporation that would keep his hotel at 70% occupancy at all times. To land the deal, Trevon's hotel needs lots of updates to its furnishings and amenities within the next six weeks. Given the time constraints and the many decisions to be made, Trevon will likely employ a. predictive analytics. b. the satisficing model. c. automated experience. d. hindsight bias.

the satisficing model.

Haya operates a car dealership, and she has been working to come up with ways to overcome the incredibly high competition her business faces. There are six other dealerships within a one-mile radius. So far, Haya has thought of doing a car giveaway event, adding extended warranties on every new car that is sold, or running advertisements through the mail. Haya is at which stage of the decision-making process? a. identifying the problem b. implementing the solution c. evaluating the solution d. thinking up alternative solutions

thinking up alternative solutions