MGT 310-Ch 3

If a decision appears inappropriate, which stage should be re-examined first?

Defining the problem

In the decision-making process, which action comes directly AFTER the act of generating alternative solutions?

Determining the respective suitability of each of the alternatives that were generated

Which are procedures for leaders to manage decision making in groups? (Choose all that apply.)

Encourage constructive conflict. Avoid groupthink and satisficing. Stay focused on the group's goals. Encourage people's input.

True or false: Creativity has no place in the workplace.

False

True or false: There are only a handful of ways an individual can be creative.

False

Which statement about using a group to make a decision is true?

Groups generally make higher-quality decisions than individuals.

Mason has considered all possible consequences of his options. Which action describes the behavior Mason would use to maximize his decision?

He would choose the option with the greatest positive consequences and fewest negative consequences.

Select the characteristics that describe System 2 information processing. (Select all that apply)

analytical reflective deliberative

Which are ways individuals can be creative? (Check all that apply.)

by joining two previously unrelated things by bringing something into creation by improving something or giving it a new application

How can a "problem" be turned into an opportunity?

by understanding what the organization is doing now and what it can do to create a more positive future

The condition in which managers have all necessary information and can precisely predict the consequences of actions is called _____.

certainty

Opposing pressures from different sources, occurring on the psychological level or between individuals or groups, is called ______.

conflict

When a CFO of an organization argues with the CEO over a stock split to finance an acquisition, ______ is occurring.

conflict

Alternative courses of action that can be implemented based on how the future unfolds are called ______ plans.

contingency

Plans that generate alternative courses of actions during times of uncertainty are called ______.

contingency plans

Some say that today we are in the midst of the next great business revolution where new ideas and innovation will be fundamental to our survival. Therefore, managers' most important and challenging responsibilities will be to foster _____ in their employees.

creativity

Tamika is a manager at a medical device firm. She has a specific problem that cannot be addressed by existing solutions. Tamika should consider a(n) ______ solution.

custom-made

When searching for solutions, there are times when what has been done before is not applicable. In these unique situations, managers search for ______ solutions, or those that must be designed for specific problems.

custom-made

What is a necessary and daily activity of all managers within organizations?

decision making

Both ready-made and custom-made solutions are worth considering when

developing alternative solutions

A person whose role is to criticize ideas to fully explore potential downsides of ideas is known as a ______.

devil's advocate

The form of constructive conflict in which a structured debate comparing two conflicting courses of action occurs is the ______.

dialectic

Management at Dungaree Denim acquired a factory at an incredibly low price. The factory came outfitted with necessary equipment, and it could discard the water involved in producing its high-end jeans into the neighboring river. Dungaree was aware that the river was undergoing an environmental survey due to talks of endangered fish, but Dungaree believed everything would work out fine. Which type of psychological bias did Dungaree's decision demonstrate?

discounting the future

When decision makers focus more attention on short-term costs and benefits than long-term costs and benefits they are demonstrating a psychological bias of ______.

discounting the future

Goal ______ is a condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.

displacement

One of the potential problems when using a group for decision making is a(n) _____ member or leader.

dominating

The fourth step in decision making, after all the possible consequences of the options have been evaluated, is to _______.

make the choice

The framing effect can have a disastrous effect on decision making when ______.

managers believe a current problem is similar to one they already experienced, so they don't look for alternatives

A decision resulting in the best possible outcome is called ______.

maximizing

When making a decision, the ideal decision-making process includes six stages. Which of the following is NOT one of those stages?

minimizing the ramifications of the decision

Miki needs to make a decision that is cost effective but also focused on quality. She decides to work with a vendor that is not the cheapest or fastest choice but that takes more quality-control measures than others. Miki is ______.

optimizing

Which are disadvantages of group decision making due to the phenomenon of groupthink? (Check all that apply.)

overconfidence complacency pressure to conform

Arvind is working on the payroll and making a list of invoices that need to be paid. He knows that he must pay the invoices for work that has been completed and hold the invoices that have not yet been completed. Which kind of decision is Arvind making?

programmed

The decision made from a set formula, such as when a manager needs to decide the amounts for an employee's paycheck, is an example of which type of decision?

programmed

A manager deciding which employee to lay off when all team members are essentially performing at identical levels produces what type of conflict in the manager?

psychological

Biases that interfere with objective rationality are called ______ biases.

psychological

Individual decision makers experience ______ conflict when several options are attractive or when none of the options are attractive.

psychological

When decision makers are biased in the way they gather, evaluate, and apply information in making their decisions, they are being influenced by ______ biases.

psychological

Ideas that have been seen or tried before are called ______ solutions.

ready-made

When managers follow the suggestions of others who have faced similar problems, they are applying ______ solutions.

ready-made

In order to make high-quality decisions while under time pressure, managers should rely on ______. (Check all that apply)

real-time information daily operating measures

Select the characteristics that describe System 1 information processing. (Select all that apply)

reflexive emotional automatic

What is the best strategy for managers to apply to avoid mistakes when making decisions under time pressures?

rely on real-time information

Choosing the first option that is minimally acceptable or adequate when making a decision is known as ________.

satisficing

Most people do not like having to attend meetings and may display negative behaviors, such as criticizing members who want to explore new options, as a way to end a meeting. This occurs more frequently in group decision making and may result in ______ rather than working to arrive at the best decision.

satisficing

Often, managers do not expend the time or energy to gather more information when needing to make a decision. Rather, in decision-making terminology, they opt for ______, making an expedient decision based on readily available information.

satisficing

When considering the effect of social realities on the decision-making process, it is important that managers take into account ______.

social interactions, bargaining, and politicking

Which are barriers to effective decision making? (Check all that apply.)

social realities psychological biases time pressures

Devil's advocacy and the dialectic are both techniques of constructive conflict. The dialectic approach goes further by requiring a(n) _____ debate between two conflicting courses of action.

structured

The belief that one can influence events even when one has no control over what will happen is referred to as ______.

the illusion of control

Cognitive conflict is ______.

the most constructive type of conflict

A shirt manufacturer based its entire marketing model on collaboration with customers. It involved its customers by having designers submit ideas to a website then asking customers to vote on their preferences. This was a way of minimizing which of the following conditions?

uncertainty

When a manager does not have adequate information to understand the consequences of different actions, this is known as ______.

uncertainty

How do social realities affect decision making? (Check all that apply.)

-A manager must consider the preferences and reactions of many people. -Important managerial decisions can be marked by conflict among interested parties. -Many decisions are the result of intensive social interactions, bargaining, and politicking.

Which are steps managers should take when planning an implementation? (Check all that apply.)

-Assign responsibility for each step. -Determine how things will look when the decision is fully operational. -Chronologically order the steps necessary to achieve a fully operational decision. -List the resources and activities required to implement each step.

Which are consistent with the use of a devil's advocate to create constructive conflict? (Check all that apply.)

-Criticize ideas and point out problems. -Make conflict less personal and emotional. -Lessen people's inhibitions about disagreeing with each other.

Which are ways that time pressures influence effective decision making? (Check all that apply.)

-Decision quality may be reduced when the decision is made too quickly. -Meeting the deadline becomes more important than content. -Business decisions made too slowly become irrelevant.

Which tactics are used by managers to develop alternative courses of action during the second stage of the decision-making process? (Check all that apply.)

-Generate custom-made solutions designed for a specific problem. -Follow the advice of others who have faced similar problems. -Search ready-made solutions to use ideas that have already been tried before.

When evaluating alternatives in decision making, what goal-related questions should managers consider when deciding among alternatives? (Check all that apply.)

-How does the solution relate to the defined goal? -Which alternatives are most acceptable? -Which alternatives can be implemented at the lowest cost or highest profit?

Rank the stages of decision making in order. NOTE the first step should be the top item in your list.

-Identify & diagnose the problem -Generate alternative solutions -Evaluate alternatives -Make the choice -Implement the decision -Evaluate the decision

Which statements regarding brainstorming are TRUE? (Check all that apply.)

-It is a common technique used to elicit creative ideas. -Group members generate as many ideas about a problem as they can in brainstorming.

Which statements about good managers and the decisions they make are TRUE? (Check all that apply.)

-Managers must make good decisions to be effective. -They make difficult, strategic decisions.

What are the potential advantages of using a group to make a decision? (Check all that apply.)

-Participants in the group discussions are more likely to understand why the decision was made. -A greater number of perspectives on the issues or different approaches to solving the problem are available. -More information is available. -Group discussion provides intellectual stimulation.

During brainstorming, when group members are not engaged due to inhibition or anxiety, what could help increase effectiveness? (Check all that apply.)

-Utilize electronic communication to reduce face-to-face communication. -Take time for members to silently write down ideas.

It is useful to take a little extra time to identify potential problems and potential opportunities associated with implementation. Which questions could be useful for managers to ask when planning for potential outcomes? (Check all that apply.)

-What problems could this action cause? -What unintended benefits or opportunities could arise? -What can we do to prevent problems?

When evaluating alternatives, which questions should a manager ask to aid in decision making? (Check all that apply.)

-What problems could we encounter if we implement the alternative? -Does the alternative meet our primary objectives? -Is the information we have about the alternative complete and current?

What are the three requirements for effectively managing group decisions?

-an appropriate leadership style -enhancement of creativity -the constructive use of disagreement and conflict

The difficulty and pressure faced by managers in making decisions is driven by which three factors?

-level of uncertainty -degree of risk -complexity of the problem

In the fourth step in decision making, the decision will differ according to the criteria and method used. What are the important methods managers should recognize when choosing from among the alternatives evaluated? (Check all that apply.)

-maximizing -satisficing -optimizing

Managers can encourage creativity in their employees by ______. (Check all that apply.)

-stimulating and challenging people intellectually -giving creative efforts the rewards they are due -listening to employee's ideas

Which statement about constructive conflict is TRUE?

A certain amount of constructive conflict should exist in a group.

What are ways that you can improve your potential to "get creative"? (Check all that apply.)

Assume you can be creative. Take a "break" to read, relax, or try something new. Talk to other people about your own ideas and issues.

Which statement about decision making is true?

Better decisions are made when managers use rational processes.

______ conflict is defined as differences in perspectives or judgments about issues.

Cognitive

How does constructive conflict improve group decision making?

It increases the knowledge and diverse viewpoints that individuals bring to the group.

Match the component of effective group decision making with its appropriate characteristics.

Leadership: Remember the goals, avoid domination Creativity: Brainstorm, avoid criticizing Constructive Conflict: Play devil's advocate, stay on task

Which statement about managerial decisions is TRUE?

Managers often avoid taking action on making decisions.

______ feedback suggests that the implementation will require more time, resources, effort, or thought; alternatively, the decision was a bad one.

Negative

______ occurs when you achieve the best possible balance among several goals.

Optimizing

Which statement about certainty is TRUE?

Perfect certainty is rare.

______ feedback suggests that the implemented decision is working and should be continued.

Positive

When assessing alternatives in decision making, which action is fundamental to the process?

Predict the possible consequences that will occur if the various options are put into effect.

What are ways that managers can encourage more creativity in their employees? (Check all that apply.)

Recognize creativity. Strive to be creative yourself. Stimulate and challenge people intellectually. Don't punish creative failures.

Which statement about decision makers is TRUE?

They face constraints that can inhibit certain actions.

A decision is more likely to be influenced by a framing effect when ______.

a current problem is viewed as similar to an issue experienced in the past

Pressuring others to make decisions quickly, creating a false sense of urgency to spur action, and focusing on meeting deadlines versus following a rational process are all examples of managers falling into what's known as ______.

a speed trap

When a group experiences conflict that leads to anger, bitterness, goal displacement, and lower-quality decisions, the group is experiencing ______ conflict.

affective

Some managers spend too much time analyzing decisions than making them. This can lead to a situation known as ______.

analysis paralysis

Affective conflict is ______.

emotional and directed at other people

To be an effective leader of a decision-making group, you should ______.

encourage input

What stage of decision making is information collected and compared to goals and plans to determine success or failure?

evaluating the decision

"Illusion of control" refers to pitfalls in decision making; this illusion may include ______. (Check all that apply.)

general optimism previous successes overconfidence

When two members of a team have different opinions and ideas and attempt to push their ideas onto the group, the group as a whole may lose sight of the original goal. This is known as ______.

goal displacement

A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus is known as ______.

groupthink

When group members don't want to break up a positive team spirit and wish to remain friendly by avoiding dissension, ______ may occur.

groupthink

Potential problems commonly associated with group decision making are ______. (Check all that apply.)

groupthink goal displacement satisficing

What is the first step in the ideal decision-making process?

identifying and diagnosing the problem

Ensuring that decisions turn into or translate into actions and changes is part of the ______ step in the decision-making process.

implementing

Once a choice is made in the decision-making process, managers must take action to actualize the choice. This step of decision making is called ______ the decision.

implementing

Especially for quantitatively inclined managers, too much analysis can lead to ______.

indecisiveness