management ch 7

Style Mart uses time-series forecasts, such as past holiday sales and the strength of store sales this year to predict future sales based on patterns of historical data. This is an application of ___.

A. analytics

Readily available information may not present a complete picture of a situation due to ____.

A. availability bias

Sam is the production manager of a busy shoe factory. He was chosen because prior to his promotion he had proven himself to be very efficient, and as a department manager he had a logical and practical approach to solving problems. Sam has a reputation for being decisive and getting things done. Most of the employees like Sam, but they feel his style is autocratic, as he likes to do things by the book. Sam represents a person with a(n) ______ style.

A. directive

Doug is using rational decision making, and the chosen alternative that was implemented does not appear to be working. To correct the situation, the possibilities Doug should consider _____.

A. give it more time, change it slightly, try another alternative, or start over

Orlando, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot sleep well at night and he is dealing with severe anxiety, irritability, and has been ill several times this month. Several times Orlando has missed important details in his job, and he almost got in an automobile accident this morning. Orlando is experiencing ____.

A. panic

oberta, the computer department manager at IT Mart, is considering if she should use a group to develop a plan to help employees sell extended warranties on technology sales. Roberta should consider having the group make this decision if ______.

B. it will increase acceptance of the plan

The predisposition in which people's subjective confidence in their decision making is greater than their objective accuracy is ____.

B. overconfidence bias

Patty, the CEO of an oil drilling company, and her top management team recently discovered that their facilities are damaging an Asian beach and the local wildlife. They understand that they need to decide if temporarily closing or not closing the facility is unethical. They then consider the four questions: Is not temporarily closing the facility legal? If yes, does this proposed action maximize shareholder value? If yes, is not temporarily closing the facility ethical? If no, would it be ethical not to take the proposed action? These are suggested questions according to _____.

Bagley's ethical decision tree

the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical not to take the proposed action? These are four questions that managers of all organizations should ask when confronted with a decision on an action according to _____.

Bagley's ethical decision tree

ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional database management systems cannot handle its customer needs. Therefore, it purchased very sophisticated analysis software and supercomputing-level hardware. For the company's work with hospitals and university medical schools, ABC has been noted in publications as "real pioneers for innovation and productivity." This vast amount of data is known as ____.

Big Data

The process of studying large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information is known as ____.

Big Data analytics

decision tree is ____.

C. a graph of decisions and their possible consequences

In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____

D. Is it ethical, feasible, and effective?

When Dave, the sales manager, is deciding on who will train the new sales trainee, he tries not to look at just the recent sales numbers but also checks past sales reports to determine who is the most productive. This way he is not affected by the ______ bias

D. availability

Regarding decision making, research has found that ____.

D. groups make better decisions than most individuals acting alone

Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that with all the money already spent on the project, it is too costly to simply abandon it. This is known as ______.

D. sunk-cost bias

The prospect theory suggests that ____.

E. decision makers find the notion of an actual loss more painful than giving up the possibility of a gain

Sal has been in the landscaping business for over 40 years, and when Donovan, his business partner, suggested adding snow removal as an extra service, Sal responded with "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successfully and not." Sal's response to Donovan is known as _____.

E. intuition

Doug, a new manager, commented to a friend, "I am excited about different aspects of my new job. The company computers have entered the field of decision making. The network not only collects information more quickly, but the system also reduces the roadblocks when I need a group consensus." Doug is referring to _____.

a computer-aided decision-making system

Satisficing is the tendency of ____.

a group to settle on a decision that is "good enough"

Dave is a salesperson who takes a long time to make decisions. He loves sales because he responds well to the pressure he faces in the many new or uncertain situations as a salesperson. Like most successful salespeople, he is high in his tolerance for ambiguity. Dave represents a person with a(n) _____ style.

analytical

Phillip and Meg are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to come down on their price to reflect what the marketplace shows their home is really worth. This is an example of ______.anchoring and adjustment bias

anchoring and adjustment bias

The Delphi technique is a group process that uses physically dispersed experts who fill out questionnaires to ____.

anonymously generate ideas

Mandy, a server in a popular family restaurant, is the most popular employee with both customers and employees, and as a result, she usually receives the most tips. She is always ready to lend a hand when asked, and with her warm personality and supportive nature, people confide in her. Mandy does have a problem telling people no, and has a tendency to avoid conflict, concerned about hurting others or getting people mad. Mandy represents a person with a(n) _____ style.

behavioral

Susanne, the CEO of national IT manufacturer, was approached by Simple Phones, a new company that is marketing a new type of phone, to partner with the company on a project. The partnership is uncertain since the company and technology are new. Susanne is uncertain what to do because she is limited by numerous constraints, such as the uncertainty and complexity of the technology, the management success of Simple Phones, and time, since other companies are interested in the partnership. This is an example of _____.

bounded rationality

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____.

bounded rationality

A technique used to help groups generate multiple ideas and alternatives for solving problems is known as _____.

brainstorming

The rational model of decision making is also called the ____ model

classical

Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—the social aspect of her job. Marie relies on intuition and discussions with others to acquire information. As an interior decorator, Marie utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Marie represents a person with a(n) _____ style.

conceptual

When people seek information to support their point of view and discount data that do not, this is ______ bias.

confirmation

A choice made from among available alternatives is a

decision

A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future is known as a(n) _____.

decision support system

The combination of how an individual perceives and responds to information reflects his or her ____.

decision-making style

Ace Manufacturing has high turnover continually due to issues with the corporate office. Paul, the plant manager, is frustrated and cannot find a solution to stop it. At first he offered raises to many of the good employees who were leaving, but after a while, Paul started blaming those who were leaving, saying, "they are poor-quality employees and they are to blame for leaving." Paul is engaged in ____.

defensive avoidance

Alex is the R&D manager with Digital Copier. The company is having a problem with one of its most popular copiers jamming. The vice president of marketing told Alex that "we need to quickly discover how to make this a desirable situation. You need to determine the underlying cause of the problem and perhaps even make improvements to the copier." This is an example of ____.

diagnosis

Goal displacement, satisficing, and groupthink are ____.

disadvantages of group decision making

Leon is an investment portfolio manager. While sitting in a training workshop, the facilitator mentioned that "your female investors make trades much less often than men because they ____."

do more research, and tend to base their investment decisions on considerations other than just numbers

Scott has a bachelor's degree in ethics and human resources, and has extensive experience working with employees and managers regarding ethics, especially in the area of ethical dilemmas. With his background of dealing with legal issues, he has assisted extensively in determining if decisions are both ethical and lawful. With Scott's background, he is a top candidate for the company's new _____.

ethics officer

Olivia, the owner of a small city newspaper, started her business two years ago, believing that there was still enough demand for her product. However, because people are busy and with the availability of news online, she has seen the demand for her paper drop steadily. Olivia made a decision to change the original direction of the company and focus more on an Internet news service. By demonstrating that managers need to think and act as if their company is an unfinished prototype, won't be ruined by new ideas and focusing on facts, Olivia is relying on _____.

evidence-based decision making

In the political ads for Representative Joe Smith, the Democratic candidate, he is portrayed by the Republican-sponsored ads as being dishonest and poor at his job. Yet, the ads for Joe Smith, which are paid for by the Democratic supporters, describe him as being caring, honest, and a hard worker. The sponsors of these advertisements know that ads can affect whom voters choose on Election Day. This tendency of decision makers, the voters in this case, to be influenced by how a situation or problem is presented to them is known as ____.

framing bias

The Safety Committee at Office Supply Mart was formed to help make the stores a safer place, and some of the suggestions were going to be costly. However, when the vice president of accounting announced the recent report on company profits were much lower than expected, a new secondary goal was established to meet new profit expectations. Having to consider this new goal as a committee is an example of ____.

goal displacement

Having a greater pool of knowledge, gaining different perspectives, gaining intellectual stimulation, having a better understanding of decision rationale, and having a deeper commitment to the decision are advantages of

group decision making

Greg, Donna, and Paul are on the five-member Benefits Task Force that is researching options for the new benefits package. Over lunch, Greg, Donna, and Paul decided that adding Choice Health Club is a good idea, and that they plan on voting to agree to add it without ever researching and accurately assessing the decision. This is an example of ____.

groupthink

Debbie likes working in the banking industry because there is a lot of structure and certainty, and the daily work is routine. Debbie probably _____.

has a low tolerance for ambiguity

When it comes to decision making, it is accurate to say that groups _____.

have higher decision-making accuracy when group members know a good deal about the relevant issues

Gregory was talking with Tom, his assistant manager, saying, "When I make a decision on which employee to pick to do a project, I use three simple factors, which I call my decision making "rules of thumb." I consider their attitude and knowledge, and how hard they work." Gregory's rules of thumb, which he uses in decision making, are known as _____.

heuristics

The tendency of people to view events as being more predictable than they really are known as _____.

hindsight bias

Jose, the sales manager, is working on the problem of increasing sales by using the rational model of decision making. In the first step he identified the problem of his employees needing more training. In the second step he thought of alternative solutions; and in step three he evaluated alternatives and selected a solution. In the fourth step, Jose needs to _____.

implement and evaluate the training program chosen

How high priority is this situation? How believable is the information about the situation? How quickly must I act on the information about the situation? These are three questions concerning ways to evaluate _____.

importance, credibility, urgency

With the community interested in eating healthy, Sue Ellen, a restaurant owner, is considering adding more vegetarian dishes to her menu. This decision is uncertain and risky, and she finally decides to goes with her gut feelings. This is an example of _______.

nonrational decision making

Patricia is the owner of a floral shop. A successful global candle company approached her about selling its products in her shop. Patricia knows this product and company can help her exceed her existing goals. This defines a(n) ____.

opportunity

A data-mining technique used to predict future behavior and anticipate the consequences of change is known as

predictive modeling

Difficulties that inhibit the achievement of goals are known as _____.

problems

With defensive avoidance, a manager can't find a good solution and follows by ____.

procrastinating, passing the buck, or denying the risk of any negative consequences

Chad and his partner, John, have decided to update their computer network, although they have no expertise in this area. During a meeting with John, Chad commented that "Our decision is limited by numerous constraints, such as our understanding of the complexity of technology, time and money, imperfect information, and our conflicting goals." These limitations are hindrances to _____.

rational decision making

George, a longtime hotel manager, was meeting with Sally, a new manager, and telling her about a recent decision related to whether or not to fire a front desk employee who has had customer service issues. George discussed the four stages of the decision process. He said, "I first identified the problem, and then, I gathered alternative solutions. I then evaluated each choice and selected a solution. I then implemented my decision to add training. Finally, I followed up with an evaluation of what I set in place." With this decision, George is using the ______.

rational decision-making model

The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the

rational decision-making model

The decision was made by BP and Halliburton executives regarding not taking action with the oil well blowout preventer that experts believe would have prevented the Deepwater Horizon oil rig explosion and fire off the coast of Louisiana, since company management believed that there would be no great negative consequences as a result of their decision. This is an example of ___.

relaxed avoidance

Dwight, a hotel general manager, is having serious problems—a substance abuse issue—with one of his housekeeping employees. He knows that because of the seriousness of the issue he needs to talk with the employee. However, his assistant manager asks Dwight if he would like him to deal with it. Dwight knows this is not the best option, but agrees, knowing it is the easy way out. This is an example of _____.

relaxed change

Paul, the store manager, recently had to fire Sue, an employee who graduated from North College. He felt that Sue was not well trained at her school. So when Steven, also a graduate from North College, applied for Sue's old position, he did not want to consider hiring him, feeling Steven also probably did not receive the proper training. Paul was affected by _____ bias.

representativeness

Paula, the controller of Tasty Pizza, is purchasing several new delivery vehicles. Paula has numerous work responsibilities, so she has limited time to shop for cars. Because of the time constraints, she cannot make an extensive search for the best alternative but instead needs to look for cars until she finds one that is satisfactory. Paula is following the _____ model.

satisficing

Peter, the owner, is even more committed to making the used copier, which he recently purchased, work even though it keeps jamming and people have been telling him about other problems they have been having with it. Peter is affected by ______.

the escalation of commitment bias

Despite your best intentions, it's hard to bring the best evidence to bear on your decisions because of such reasons as ____.

there's too much evidence; there's not enough good evidence and the side effects outweigh the cure