Principles of Mgmt. - Chapter 4

_____ is an idea-generating process that specifically encourages all alternatives while withholding criticism.

brainstorming

Which of the following steps of the rational decision-making model occurs after establishing the decision criteria? Select all that apply.

- generate alternatives - weigh decision criteria - evaluate alternatives

Which of the following is a decision-making concept that recognizes that human knowledge is limited and imperfect?

Bounded rationality

Which of the following means an individual's assigned role is that of a critic?

Devil's advocacy

X Corp. realizes the market trends are changing and it needs to come up with a new product. Managers at X Corp. are using the rational decision-making process. What is the next step after identifying the problem?

Establishing decision criteria

Which of the following is based on actual experimentation to demonstrate that a plan does indeed provide a likelihood of success?

Evidence-based decision making

Which of the following is a function of descriptive analytics?

Focuses on information revealed by data sets

Which of the following is a method to simplify a complex situation and allows the decision maker to focus only on the most important information?

Heuristics

Which of the following is a disadvantage of electronic brainstorming?

Reduction in group cohesiveness

Which of the following is not a component of evidence-based decision making?

Prospect gathering

Which of the following is a function of predictive analytics?

Reveals a degree of likelihood of an outcome

What is the last step of the rational decision-making process?

Select best alternative

Which step of the decision-making process should go before generate alternatives?

Weigh decision criteria

In a decision tree, a _____ is created for each of the alternative choices under consideration.

branch

Which of the following barriers to decision making is a faulty way of thinking during the analysis stage?

cognitive bias

Which of the following barriers to decision making is the tendency to seek out or prefer information that agrees with our own opinion?

confirmation bias

Your friend Dave and his spouse Sandra are deciding where to vacation next summer. Sandra's choice is Spain, but Dave would rather go to Morocco. Sandra has been showing Dave articles on how dangerous Morocco is. What type of decision-making bias is Sandra using?

confirmation bias

To make calculations with a decision tree, a decision usually involves which of the following?

costs

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

creative ideas

Which of the following is a component of evidence-based decision making?

data collection

A retailer is interesting in entering an international market. Which of the following processes should it go through to determine how best to expand into this market?

decision making

Which of the following is the process of choosing a solution from available alternatives?

decision making

_____ are tools to compare the costs and likely values of decision pathways.

decision trees

Which of the following techniques is in which an individual is selected to become the critic in the proposed decision?

devil's advocacy

In the _____ stage of the rational decision-making model, Mary has to select among the choices to solve the staffing problem she is facing.

evaluating each alternative

A decision tree is a useful tool for situations without much data and the outcomes are unstable.

false

All decision making by management is rational.

false

Both absolute comparisons and relative comparisons are methods for identifying decision criteria.

false

The evidenced-based decision making is good for predicting human emotions as they are highly irrational.

false

The six steps in the rational decision-making process are as follows: (1) frame the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision.

false

Which of the following barriers to decision making is the tendency of decision makers to be influenced by the way a situation is presented?

framing bias

Which of the following is a disadvantage of group decision making?

groupthink

Dave is a loyal reader of a certain travel blog because he believes this blogger is reputable. He is impressed by this blogger's knowledge and he doesn't trust other opinions. What type of decision-making bias is Dave facing?

halo effect

Which of the following barriers to decision making concerns the preferential attitude that we have toward certain individuals or groups?

halo effect

The first stage of the decision-making process should be _____.

identify the problem

Which of the following barriers to decision making is the tendency to believe falsely that we would have accurately predicted the outcome of an event?

hindsight bias

Groupthink occurs in which of the following scenarios?

in highly cohesive groups where there is a great deal of pressure to agree with each other

A decision _____ signifies that a decision must be made.

node

A decision tree is a branched flowchart showing multiple _____ for potential decisions.

pathways

A retailer has begun a _____ process by first identifying the problem associated with its international expansion.

rational decision making

Mary is a sales executive at X Corp. She found out X Corp.'s direct competitor is actively recruiting her sales staff. Mary recognizes losing her staff to the competitor is a _____.

problem

Which of the following is a gap between a desired state and an existing state?

problem

Which of the following was developed by Daniel Kahneman and Amos Tversky?

prospect theory

Which of the following is a systematic process of defining a problem, evaluating alternatives, and choosing optimal solutions?

rational decision making

The role of a _____ is to separate participant and leadership roles with opposing ideas.

referee

One method of weighing decision criteria uses _____, which is a process in which each decision is compared directly to every other criterion.

relative comparisions

Managers can calculate the likely _____ for each decision pathway.

return value

Which of the following is a type of decision that will work in light of numerous uncertainties?

robust

Which of the following is not a factor for conducting effective brainstorming?

selecting an inexperienced group leader

Groupthink is more likely to occur in a highly cohesive group that is insulated from others and has no established procedure for systematically defining problems and exploring alternatives.

true

The process of rational decision making emphasizes the use of systematic procedures to arrive at optimal solutions.

true

The term decision making is used to refer to the process of choosing a solution from available alternatives.

true

The two types of analytics in evidenced-based decision making are descriptive and predictive.

true

Which of the following is one of the six steps in the rational decision-making process?

weigh the criteria