MGT 301 - SB Reading - Chapter 7

True or false: CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.

True

Which steps are recommended for establishing a process or method for making decisions?

- Analyze the situation. - Conduct a cost-benefit analysis. - Consider whether the decision is consistent with your values.

Which of these are areas in which experts believe AI can be applied to decision making? - Autonomous intelligence - Operational intelligence - Augmented intelligence - Assisted intelligence - Strategic intelligence

- Autonomous intelligence - Augmented intelligence - Assisted intelligence

Which steps are recommended for establishing a process or method for making decisions?

- Conduct a cost-benefit analysis. - Consider whether the decision is consistent with your values. - Analyze the situation.

Which of the following are true regarding the second stage in the rational model of decision making?

- Creativity precedes innovation and has been described as the source of all intellectual property. - Once you have identified a problem or an opportunity and diagnosed its causes, you need to come up with both obvious and creative alternative solutions.

What are common results of groupthink?

- Failure to consider new information - Loss of new ideas

Which of these are reasons for chief executive officers (CEOs) getting increasingly ousted for ethical violations in the 21st century? - Globalization allows businesses to operate in regions where ethical risks are greater. - Digital communications are more susceptible to hackers and whistleblowers. - It has become customary for business leaders to self-report unethical behavior. - The 24/7 news cycle places more scrutiny on unethical behavior.

- Globalization allows businesses to operate in regions where ethical risks are greater. - Digital communications are more susceptible to hackers and whistleblowers. - The 24/7 news cycle places more scrutiny on unethical behavior.

Knowledge of decision-making styles can assist managers in many ways except for which one of the following? - It facilitates the potential for self-improvement in making decisions. - It increases the biases of the managers toward their favorite style. - It helps to identify a manager's own strengths and weaknesses in making decisions. - It increases their ability to influence others by catering to their style.

- It increases the biases of the managers toward their favorite style.

Which of these assumptions are made in the rational model of decision making?

- Managers will always select the course of action that they know will most benefit the organization. - Managers have complete, error-free information about alternative courses of action and their consequences. - Managers are able to make logical decisions without prejudice or emotional blind spots.

Which of the following function as the first stage in rational decision making by managers? (Select all that apply.) - Low staff turnover - Poor product quality - Customer complaints - Sales shortfalls

- Poor product quality - Customer complaints - Sales shortfalls

Which of these are examples of business analytics? - Portfolio analysis - Time-series forecast - Advertising campaigns - Groupthink - Marketing plans

- Portfolio analysis - Time-series forecast

Successful implementation of major decisions requires which of the following?

- Sensitivity to those affected by the decision - Careful planning

Which of the following are examples of Big Data? - Unrecorded customer interactions - Surveillance data - Web-browsing data trails - Social network communications - Data in corporate databases

- Surveillance data - Web-browsing data trails - Social network communications - Data in corporate databases

Which questions should you ask when developing ready-made solutions based on past experiences?

- What was the solution? - What was the problem? - What lessons can you derive from this experience?

All the following are characteristics of group decision-making EXCEPT _____. - groups make decisions quickly - their knowledge counts - their size affects their decision quality - they may be too confident

- groups make decisions quickly

People with a behavioral decision making style are more likely to:

- have a hard time saying no - avoid conflict

Analytical decision makers:

- may overanalyze a situation - take time to make decisions

All of the following are advantages to group decision making EXCEPT _____. - superiors can dominate or intimidate the group - greater pool of knowledge - deeper commitment to the decision - different perspectives

- superiors can dominate or intimidate the group

What are three characteristics that affect decision making by a group?

- the efficiency of the group - the size of the group - the knowledge of group members

List the steps of the rational model of decision making in the correct order, with the first step listed at the top and the last step listed at the bottom.

1. Identify the problem or opportunity. 2. Think of alternative solutions. 3. Evaluate alternatives and select a solution. 4. Implement and evaluate the solution chosen.

Turbine Manufacturing uses artificial intelligence in its factories to automate basic tasks, freeing human employees to perform more high-level finishing and quality assurance tasks. Which area of artificial intelligence does this illustrate?

Assisted intelligence

Which decision-making style is the most people-oriented of the four styles?

Behavioral

Stores of data that are so large or complex that it is difficult to process them using traditional data base management applications are known as _____.

Big Data

What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart?

Brainstorming

Which one of the following best describes the decisions made by a person with an analytical style?

Carefully considers lots of information and alternatives

Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?

Conceptual

According to Kahneman, which of the following characteristics describe System 2 thinking?

Conscious Deliberate Analytical

What is the main difference between critical thinking and the moment-to-moment thinking that we use in our everyday lives?

Critical thinking requires deliberate mental processes, whereas moment-to-moment thinking is automatic and prone to bias.

By 2035, artificial intelligence is expected to have what effect on labor productivity?

It will increase labor productivity by as much as 40%.

Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect?

Economic growth will double.

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?

Employees with ideas

______ are strategies such as "rules of thumb" that simplify decision making.

Heuristics

What is the best way to develop a ready-made solution?

Identify best practices and turn them into standard operating procedure.

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?

Is it ethical? Is it ultimately effective? Is it feasible?

Knowledge of decision-making styles can assist managers in many ways except for which one of the following?

It increases the biases of the managers toward their favorite style.

Which models are characteristic nonrational models of decision making?

Models that describe how managers actually make decisions

What is the recommended step you should take after making a decision?

Observe the results then conduct a post-mortem.

____________ are difficulties that inhibit the achievement of goals.

Problems

Evidence-based management attempts to introduce which factor into the decision-making process?

Rationality

People with a conceptual decision-making style are likely to do which of the following?

Rely on intuition Find creative solutions Take risks

Value orientation reflects the extent to which an individual focuses on which of the following dimensions?

Technical concerns or social concerns

Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?

The nonrational model

Which of the following is an accurate description of decision making?

The process of identifying and choosing alternative courses of action

Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests?

The rational model

Which of the following are aspects of critical thinking?

Using qualitative and quantitative information to solve problems creatively Using reason to analyze situations, make decisions, and solve problems

_____________ reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions.

Value orientation

Sophisticated forms of business data analysis are known as business _________.

analytics

An ____________ intelligence system learns from human inputs in order to assist humans in making better decisions.

argumented

Michelle met with her five employees around a table and asked each of them to take five minutes to write down what they personally thought their new facility should include. She then collected the information and wrote it on the white board for all of them to view and decide upon. Michelle is using the _____ technique.

brainstorming

A _____ is a choice made from available alternatives.

decision

A graph of decisions and their possible consequences used to create a plan is known as a(n) ______.

decision tree

People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problems and making decision. Which style do they use?

directive

People with the ______ style of decision making are action-oriented and like to focus on facts. They also tend to be autocratic-type managers.

directive

A person's decision-making style is a combination of how a person perceives something as well as _____.

how they respond to it

Which of the following is an advantage of group decision making?

intellectual stimulation

According to Kahneman, System 1 thinking is _____.

intuitive and largely unconscious

One thing groupthink teaches us is that cohesiveness:

isn't always a good thing.

Constance Bagley's decision tree is specifically designed for use when _____.

making ethical choices

Satisficing and intuition are two ____________ models of decision making

nonrational

Satisficing and intuition are two ____________ models of decision making.

nonrational

Evidence-based decision relies on ______.

observations about what actually works

The _____ bias occurs when people's positive feelings about their own decision-making ability is greater than their objective accuracy.

overconfidence

You fall prey to the overconfidence bias when you ______ your knowledge or expertise in a decision situation.

overestimate

The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them.

prescriptive

Even though not everyone in the meeting agreed with the final decision, the group decided to proceed and replace all existing machine parts in the warehouse. In this situation, the group had _____.

reached a consensus

Heuristics are strategies that ______ the process of making decisions.

simplify