bus ch 11
Characteristics of the rational decision-making model include the assumption that managers:
1. possess all information needed to make the best decision 2. are objective
Which of the following are characteristic of people with the conceptual decision making style?
A broad perspective They rely on intuition A long-term perspective
In order to be successful decision makers, what should managers do?
Identify decision-making styles and build on strengths. Spark creativity among employees. Train employees to conduct effective brainstorming.
Daniel Kahneman describes two types of thinking in his book Thinking, Fast and Slow. Why is System 1 "fast"?
It is automatic.It is instinctive.It relies on mental shortcuts.
Expertise is the combination of which of the following?
Tacit knowledge Explicit knowledge
People who have a high tolerance for ambiguity and focus on tasks and technical concerns have the _____ decision-making style.
analytical
When decision makers are influenced by the first information they receive even if it is irrelevant, it is:
anchoring bias
What is a form of computing that allows machines to perform cognitive functions similar to the way humans do?
artificial intelligence (AI)
According to the model of intuition, one of the processes of intuition is controlled, voluntary, and effortful and the other is _____.
automatic, involuntary, and mostly effortless
People who prefer to avoid conflict and focus strongly on people and the social aspects of a work situation have the ______ style of decision making.
behavioral
Which of the following is most likely to spark creativity?
being bored
Deciding to choose a solution that meets enough minimum qualifications is:
satisficing
Deciding to select a solution that meets some minimum, adequate qualifications is
satisficing
The least effective way to use evidence-based decision making is to:
support a decision made intuitively
Knowledge gained through experience that is hard to explain is ______ knowledge.
tacit
The extent to which a person has a high need for structure and control in his or her life is known as:
tolerance for ambiguity
True or false: Consensus does not require unanimous agreement.
true
Automated experiences are based on:
well-known situations a partly subconscious applying of information that was previously learned
What practical consideration might result in an individual rather than the whole group making a decision?
when there is limited time to make the decision
What is one thing managers can do to improve their decision making?
Avoid decision-making biases by becoming aware of them.
People who are receptive to suggestions and focus strongly on people and the social aspects of a work situation have which of the following decision-making styles?
Behavioral
What can an individual do to make better decisions?
Develop critical thinking skills. Assess decision-making styles. Examine past decisions for the influence of biases.
The tendency to base decisions on information that is recent and easily recalled from memory is:
availability bias
How do the news media influence availability bias?
by emphasizing unusual events
How can an individual or group avoid making mistakes in the decision-making process?
by reviewing past biases and influences by examining past decisions by understanding judgmental heuristics
the Delphi technique is useful when:
certain individuals may dominate the group face-to-face discussions are impractical conflicts will impair communications
Which two activities are included in the decision-making process?
determining alternative solutions choosing from among alternative solutions
People who have a low tolerance for ambiguity and are task oriented when making decisions have which decision-making style?
directive
A form of ______ brainstorming known as brainwriting allows participants to submit their ideas over a computer network
electronic
What type of problem-solving technique, also called brainwriting, allows participants to submit their ideas over the Internet?
electronic brainstorming
the process of conscientiously using the best available data when making managerial decisions is:
evidence-based decision making
Information that can be easily described is ______ knowledge.
explicit
true or false: An assumption of the nonrational decision making models is that managers possess all of the information needed to make optimal decisions.
false
How can artificial intelligence (AI) help managers enhance business operations?
gaining insight through data analysis automating processes managing customer communications
Brainstorming is a technique used to help groups generate multiple ______ and alternatives for solving ______
ideas, problems
The group process that anonymously generates ideas or judgments from physically dispersed experts is:
the Delphi technique
Picking a solution is which step in the rational decision making process?
third
Criteria that should be used in evaluating alternatives are
whether it is ethical whether it will solve the problem what it will cost
True or false: The goal of decision making is to find a solution that leads to a desired state of affairs
true
If the chosen solution fails to solve the problem, what should managers do?
try an alternative solution
What can managers do if the chosen alternative fails to eliminate the gap between the desired and actual situation?
try implementing a different alternative Return to the problem identification step in the model Keep trying all alternatives that are feasible
The extent to which an individual focuses on either task and technical concerns or people and social concerns in making decisions is:
value orientation
the assumptions behind nonrational models of decision making are that
1. Decision makers lack competence information 2. Decision making lacks certainty 3. Managers struggle to make the best decisions
Confirmation bias has which of the following components?
1. Information is sought that confirms the already made decision and discounts information that does not 2. A decisions is made before investigating it
Research has found that key decision-making errors include:
1. Making a quick decision without looking at all available information 2. Selecting a solution without considering alternatives 3. Allocating resources poorly to study alternatives
When you rely on intuition, which of the following are lacking?
1. The conscious awareness of the evoking cues 2. The evaluation of the effectiveness of the evoking cues
Which of the following decision making styles is associated with a high tolerance for ambiguity and focus on tasks and technical concerns?
Analytical
Which of the following should be considered in assessing the feasibility of an alternative?
Are customers resistant? Does time permit?
According to the model of intuition, which of the following influence intuitive processes? (Check all that apply.)
Expertise and bounded rationality Expertise and feelings
Bagley's ethical decision tree shows a series of questions with appropriate actions based on the user's response. Which of the following is the first question to be asked?
Is the proposed action legal?
When you can possibly produce results that surpass goals, it is a(n):
Opportunity
What type of thinking is described by Daniel Kahneman as intuitive and unconscious thought?
System 1
A holistic hunch can be described as:
a decision that just feels right, a judgment based on subconscious synthesis of memories
A choice that is made based on a familiar situation and a partially subconscious application of related information that had been previously acquired is a(n ______ ______
automated experience
A choice that is made based on a well-known situation and a partly subconscious application of previously learned information is a(n):
automated experience
The idea that decision makers are limited by various constraints during the decision-making process is the nonrational model known as _____ _______
bounded rationality
The nonrational model in which decision makers are limited by various constraints when making decisions is known as:
bounded rationality
A technique used by groups to generate solutions during the decision making process is
brainstorming
A technique used for solving problems, generating creative ideas for new products, and removing performance roadblocks is:
brainstorming
The sense of "we-ness" that overrides individual differences and motives in a group is .
cohesiveness
People who have a high tolerance for ambiguity and focus on people and the social aspects of a work situation have which of the following decision making styles?
conceptual
What is it called when a decision maker recognizes information that supports a decision, while ignoring contracting information?
confirmation bias
Analytical decision makers are those who:
consider as many facts as possible respond well to new situations tolerate ambiguity well
The joint novelty and usefulness of a product or service as judged by others is:
creative outcome effectiveness
The process of producing new and useful ideas concerning products, services, processes, and procedures is:
creativity
the process of producing new and useful ideas concerning products, services, processes, and procedures is .
creativity
What are the disadvantages of big data?
cybersecurity breaches leaked private information
the way an individual perceives stimuli and the general manner in which he or she responds to it is a(n) _____-______ style.
decision making
People with a ______ decision-making style have a low tolerance for ambiguity and are oriented toward tasks.
directive
What are some tips for sparking creativity?
doing "nothing" lying on the beach taking a walk
Brainstorming can be used by which of the following to devise potential solutions?
groups individuals
The phenomenon that occurs when people who are members of a cohesive in-group so strive for unanimity that they fail to realistically appraise alternative courses of action is called
groupthink
When people who are members of a cohesive in-group so strive for unanimity that they fail to realistically appraise alternative courses of action it is:
groupthink
What are the disadvantages of hindsight bias?
having overconfidence in foresight, which leads to bad decisions
The bias that occurs when knowledge of previous outcomes influences decisions about the probability of future occurrences is:
hindsight bias
Choosing to make a decision because it just feels right is using a(n) _____ hunch.
holistic
Evidence-based decision making holds the promise of:
improving performance avoiding decision-making biases
What are three practical things to consider in the decision-making process?
information and communication routine and frequency time constraints
Decisions that come to mind on their own and are not evaluated for validity are known as
intuition
The cognitive biases we use to facilitate the decision-making process are:
judgmental heuristics
What are the cognitive shortcuts used to simplify the decision making process called?
judgmental heuristics
Groupthink can result in decisions that:
lack moral judgment maintain the cohesiveness of the group fail to realistically evaluate alternative options
Big data, the vast quantity of data available to decision makers, can
make information more transparent and usable. enhance productivity. be used to develop new products and services.
Research indicates that most managers have multiple decision-making styles and that those styles are based on:
nationality. gender. age.
What models of decision making explain how managers really come to decisions?
nonrational
A(n) ______ is a situation in which it is possible to do something that eclipses expectations.
opportunity
Costs and quality are criteria that are crucial in evaluating
options
The bias that takes place because we are optimistic based on overestimates of what we are able to do is:
overconfidence bias
What is it called when decision makers overestimate their skills relative to those of other participants?
overconfidence bias
A ______ is the divide between an actual and a desired situation.
problem
When there is a difference between what is desired and the actual situation, it is a(n):
problem
The decision-making model that assumes managers are fully objective and have all information they need to make a decision is the ______ decision model.
rational
When all members of a group either agree with a decision or are able to support it, they have:
reached consensus
What is it called when decisions are based on past or similar information or situations?
representative bias
The decision-making heuristic used when people estimate the probability of an event occurring based on impressions about similar occurrences is:
representativeness bias
the decision-making heuristic used when people estimate the probability of an event occurring based on impressions about similar occurrences is:
representativeness bias
A decision tree can be described as:
showing the process underlying decisions showing the consequences of making decisions
Suggestions for ways to make better decisions include:
slowing down when making decisions considering a broader set of alternatives investigating a greater number of potential solutions
Which of the following elements influence decision makers falling into the trap of anchoring bias?
stereotypes feedback impressions
What are the three ways managers use evidence or data in the decision-making process?
to make a decision to inform a decision to support a decision
The model of decision-making styles is based on which of the following dimensions?
tolerance for ambiguity value orientation