Chapter 5

Identify the steps involved in decision making.

Assess alternatives Generate alternatives Choose among alternatives Recognize the need for a decision

Which of the following are factors upon which the administrative model is based?

Bounded rationality, Incomplete information and satisficing

Which of the following is a basic part of every function of management?

Decision making

Which of the following are group decision making techniques?

Delphi technique Brainstorming Nominal group technique

What is the result of a manager that chooses a course of action but fails to act on it?

It is the same result as not making a decision at all.

Which of the following characterizes programmed decision making?

It is used for routine matters. It is a virtually automatic process.

_______ occurs when top managers empower employees and allow them to experiment, create and explore what they want.

Personal mastery

What is the main reason for loss of productivity in a brainstorming session?

Production blocking

What is the first step in the decision making process?

Recognize the need for a decision

True or false: The process of decision making involves programmed or nonprogrammed decisions.

True

To draw attention to all possible problems associated with the chosen alternative by critiquing and challenging the way the group evaluated the alternatives and arrived at a decision is the goal of _______.

a devil's advocate

Bounded rationality, incomplete information, and satisficing is the basis for the _______ model of decision making.

administrative

The _______ model of decision making addresses the notion that because decision making is inherently uncertain and risky, it leads managers to make satisfactory, rather than optimum, decisions.

administrative

To explain why decision making is always an inherently uncertain and risky process, James March and Herbert Simon developed the _______ model.

administrative

Diverse groups sometimes are not as prone to groupthink because group members _______.

already differ from each other are less subject to pressures for uniformity

Once managers have generated a set of _______, the third step in the decision making process is to evaluate the advantages and disadvantages of each one.

alternatives

The third step in decision making is to _______.

asses alternatives

The fourth step in decision-making is to rank the various alternatives and choose one, but only after the set of alternatives has _______.

been carefully evaluated

Janice is faced with a decision. However, there are so many possible alternatives and so much information that she doesn't feel she can even begin to evaluate it all. This describes what March and Simon term _______.

bounded rationality

A prescriptive approach, based on the assumption that the person making the decision can identify and evaluate all possible alternatives and their consequences, defines the _______ decision making model.

classical

The concept of bounded rationality states that _______ limitations hinder one's ability to interpret, process, and act on information.

cognitive

In group decision making, managers can draw upon the group's _______ to generate feasible alternatives and make good decisions.

competencies, combined skills, and accumulated knowledge

By giving employees the opportunity and freedom to put forth new ideas and solutions to company problems, managers can encourage _______.

creativity

Managers must realize that _______ is a basic part of every management function they undertake whether it be planning, organizing, directing or controlling.

decision making

Recognize the need, generate alternatives, assess alternatives, choose among alternatives, implement the chosen alternative, and learn from feedback are the six steps of _______.

decision making

To encourage creativity at the group level, a manager can use a combination of the brainstorming, the nominal group, or the Delphi techniques. These are examples of group _______ techniques.

decision making

The group decides to analyze the preferred alternative more critically after Tonya raised challenges, defending unpopular alternatives for the sake of argument. This is an example of _______.

devil's advocacy

The classical decision making model is based on the assumption that the decision maker can identify and evaluate _______.

every possible alternative and each consequence

The final step in the decision making process is learning from _______.

feedback

In the decision-making process, recognizing the need for a decision is the _______ step.

first

Once managers recognize the need to make a decision in response to the opportunity or threat, they must _______.

generate a list of feasible alternatives

Shashir is part of a work group trying to decide on a promotional campaign for the company's new product. He notices that the members of the group are more concerned with reaching an agreement than with accurately assessing information. This situation is known as _______.

groupthink

When small groups begin to think as one, tolerate no dissension, and strive to remain cordial with each other, _______ occurs.

groupthink

Yolanda has made a decision and has chosen an alternative. Her next step will be to _______ the chosen course of action.

implement

The fifth step in decision making is to _______.

implement the decision

A manager, scientist, or researcher who works inside an organization and notices opportunities to develop new or improved products and better ways to make them is a(n) _______.

intrapreneur

Steve is a product manager at a large manufacturing company. In his job, he is able to consistently notice opportunities to improve on existing products. Steve is a(n) _______.

intrapreneur

Ed is in the process of making a decision. He has carefully evaluated his alternatives. The next step will be for Ed to rank the various alternatives and _______.

make a decision

Creativity results when employees have an opportunity to _______.

make mistakes experiment take risks learn from mistakes

The administrative model of decision making explains why _______.

managers usually make satisfactory, rather than optimum, decisions

According to Peter Senge, by empowering employees and allowing them to experiment, create, and explore what they want, managers can encourage employees to develop personal _______.

mastery

Every decision that a manager makes is either _______ or _______.

nonprogrammed; programmed

A group is in the process of brainstorming. However, there are so many ideas being presented that group members find it hard to make sense of it all and wind up having a hard time coming up with additional ideas. This situation is referred to as ______.

production blocking

Geraldine has developed a protocol that office supplies are reordered when existing levels drop to a certain point. This is a type of _______ decision.

programmed

Routine, virtually automatic, decision making that follows established rules or guidelines is referred to as _______ decision making.

programmed

Group decision making can be improved by _______.

promoting diversity in groups

Hiromi continually tries to get his employees to willingly understand and manage the organization and its task environment. In doing so, Hiromi feels his employees will be able to make decisions that will continually _______.

raise organizational effectiveness

Karen has explored a limited number of all the possible alternatives in order to make her decision. She is choosing an acceptable decision, rather than trying to make the optimal decision. This approach is called _______.

satisficing

Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision is a strategy called _______.

satisficing

Generating a set of feasible alternative courses of action is the _______ step in decision making.

second

In the last step in the decision making process, effective managers always conduct a retrospective analysis. Failure to do so results in _______.

stagnation making the same mistakes repeatedly

As a result of group decision making, it is more likely that _______.

the decision will be successfully implemented

Organizational learning occurs when managers _______.

try to increase organizational effectiveness by improving employees' understanding and management of the firm and its task environment