Management Chapter 7 Learn Smart
diverse groups are sometimes less prone to groupthink because group members ________
-already differ from each other -are less subject to pressures for uniformity
which are factors upon which the administrative model is based?
-bounded rationality -satisficing -incomplete information
which of the following are examples of nonprogrammer decision making?
-developing a new product -investing in new technology -starting a new business -entering a new market
which of the following are techniques to counteract groupthink and cognitive biases?
-dialectical inquiry -devils advocacy
under which two of the following conditions is the nominal group technique most beneficial?
-different managers are expected to champion different courses of action -the issue is controversial
decision making in response to _________ occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholder groups
opportunities
a ________ decision is the most appropriate decision in light of what mangers believe to be the most desirable future consequences for the organization
optimum
tom wants to increase the ability of his management team to make decisions that will allow them to adapt to, modify, and even drastically alter their task environment. Tom should encourage _____, which is the process by which managers seek to improve employees desire/ability to understand and manage the organization and its task environment
organizational learning
sam has already committed a significant amount of time and money to a new project and feel personally responsible for the project even though it is failing. sam is ignoring evidence that the project is impractical. This is an example of?
escalating commitment
peter senge and edward de bono popularize the management techniques for _______
creative thinking and stimulating problem solving
by giving employees the opportunity and freedom to generate new ideas, managers can encourage ________
creativity
if barry wants to encourage group ______ he should use problem-solving techniques tailored to groups which help promote creative ideas and innovative solutions
creativity
__________ making is a basic part of every task managers perform
decision
when two groups assess alternatives, select one, and then critique the other group's position in order to find a new and better alternative, the _________ is occurring
dialectical inquiry
an individual who starts a business after noticing opportunities and deciding how to mobilize the resources necessary to produce new and improved goods and services is known as what?
entrepreneur
__________ the mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services
entrepreneurship
_________ is noticing an opportunity and to satisfy a customer need and then deciding how to find and use resources to make a product that satisfies that need, encompasses all the decisions involved in planning, organizing, leading, and controlling resources
entrepreneurship; management
sam continually commits organizational resources to personal projects even if evidence suggests that it is unwise. This is an example of ___________ commitment
escalating
a _________ organization is one in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximizing potential organizational learning
learning
organizational ________ is the process through which managers seek to improve the desire and ability of their employees to understand and manage the organization and its task environment
learning
john has been looking for a more structured way of generating alternatives in his team. For yesterday's meeting, the team wrote down their ideas and read them to the group. Then the group discussed and ranked the alternatives. John's team engaged in the __________ group technique
nominal
when a group uses the ______ group technique, group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives
nominal
both intuition and judgement are often flawed and can result in poor decision making. As a result, _______ decision making is more prone to error
nonprogrammed
sam frequently relies on his _______ to make decisions. He is a firefighter and must act quickly and decisively to do his job
intuition
reasoned _________ is a decision that takes time and effort to make. It is the result of careful information gathering, generation of alternatives, and evaluation of alternatives
judgment
the ______ step in the decision making process is to learn from feedback. Effective managers always conduct a retrospective analysis to learn from past mistakes. Failure to do so results ins stagnation and making the same mistakes repeatedly
last
the three steps of the classical model of the decision-making model from the first step to the third step
1. list the alternatives and consequences of each alternative 2. rank each alternative from least to most preferred 3. select the alternative that leads to desired future consequences
the _______- step is the decision making process is to rank the various alternatives and choose one after the set of alternatives has been carefully evaluated
4th
an approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions defines the _______ model
administrative
information that can be interpreted in multiple and often conflicting ways is ________ information
ambiguous
the final step in the decision making process is learning from ________
feedback
once managers recognize the need to make a decision in response to the opportunity or threat, they must _________
generate a list of feasible alternatives
jimmy has searched for and chose an acceptable solution to his problem rather than trying to make the best decision. This is an example of?
satisficing
managers create the need to make decisions by pursing opportunities to utilize the organization's _______
skills, competencies, knowledge resources
a group of entrepreneurs who are deliberately separated from the normal operation of a organization to encourage them to devote all of their attention to developing new products is known as?
skunkworks
a team that is isolated so that it can intensely focus on developing new and innovative products is known as what?
skunkworks
senge believes that since most learning occurs in subunits, _____ learning is more important than ________ learning
team;individual
managers must make decisions to deal with ________ that arise
threats and opportunities
decisions that are undermined by biases, difficulty getting multiple managers to agree on one solution, and an increase in the time necessary to make decisions are 3 problems associated with ________ decision making
group
a pattern of faulty and biased decision making that occurs in groups whose members are more concerned with agreement than with accurately assessing information is known as?
groupthink
when groupthink occurs, individuals within a group are discouraged from raising concerns that are contrary to the majority opinion due to pressure for _____ in the group
harmony and agreement
when groupthink occurs, individuals within a group are discouraged from raising concerns that are contrary to the majority opinion due to pressure for ______ in the group
harmony and agreement
___________ are rules of thumb that simplify the process of making decisions
heuristics
march and simon believed that limitations on the ability of people to interpret, process, and act on information constrains what?
human decision making capability
the classical decision making model is based on the assumption that the decision maker can ___________
identify and evaluate all possible alternatives and their consequences
the fifth step in decision making is to ________
implement the decision
with respect to decision making, ______ is incomplete because of risk and uncertainty, ambiguity, and time constraints
information
charlie is trying to make a decision but he does not have enough time or money to search for all possible alternatives or to evaluate each of those alternatives and their consequences. In this example, Charlie's information is incomplete due to:
information costs and time constraints
increased competition from small and agile businesses has made it increasingly important for large companies to promote and encourage higher levels of __________
intrapreneurship
programmed decision making is not always a viable option because sometimes the situation is uncertain or unexpected and managers lack the information they would need to develop rules to cover it. In these situations, __________ decision making occurs
nonprogrammed
rick is the CEO of a company that is acquiring another company. This is his first merger so he has no basic rules to govern his decisions. Rick will need to rely on _____________ decision making, which occurs in response to unusual, unpredictable opportunities or threats.
nonprogrammed
it is easier to implement devil's advocacy than dialectical inquiry because the former requires less managerial _______ and ______
time and effort
when _________ exists, the probabilities of alternative outcomes cannot be determined and future outcomes are unknown
uncertainty
which of the following are advantages of group decision making?
-draws on combined skills, competencies, and accumulated knowledge -greater probability that the decision will be implemented successfully -alternatives are less likely to fall victim to biases and errors -allows managers to process more information and correct one another's errors
peter senge, a learning theorist, identified which of the following as the 5 principles for creating a learning organization?
-encourage systems thinking -promote team learning -build a shared vision -encourage employees to develop and use complex mental models -allow employees to develop a sense of personal mastery
which of the following are among the 4 criteria that managers use to evaluate alternatives?
-ethicalness -legality -economic feasibility -practically
which of the following are part of the formal procedure managers use to avoid repeating past mistakes?
-explore why any expectations for the decision were not met -derive guidelines that will help in future decision making -compare what actually happened to what was expected to happen as a result of the decision
which of the following are potential disadvantages of group decision making?
-groups take longer to make decisions than individuals -it can be difficult to get multiple managers to agree on one solution
as small and agile businesses exert more pressure and competition on large companies, it has become increasingly important for large companies to promote and encourage entrepreneurship to raise the level of:
-innovation -organizational learning
what are the 4 characteristics of entrepreneurs?
-internal locus of control -high need for achievement -opennness to experience -high self esteem
which of the following are examples of situations in which it is appropriate to rely on intuition?
-it is an emergency situation entailing high risk and uncertainty, and rapidly changing conditions -there are no established rules to guide decisions
the administrative model is based upon which of the following beliefs?
-managers are incapable of absorbing and evaluating the vast amount of information, if its available -managers do not have all of the information available to make optimal decisions
the administrative model of decision making explains why?
-managers usually make satisfactory rather than optimum decisions -decision making is inherently uncertain and risky
which are group decision-making techniques
-nominal group technique -brainstorming -delphi technique
as small and agile businesses exert more pressure and competition on large companies, it has become increasingly important for large companies to promote and encourage intrapreneurship to raise the level of?
-organizational training -innovation
four sources of bias that can adversely affect the way managers make decision are?
-prior hypothesis -illusion of control -representativeness -escalating commitment
which of the following are examples of initiatives pursued by social entrepreneurs?
-reducing substance abuse -reducing poverty -protecting the natural environment -increasing literacy
which of the following are reasons why even good managers sometimes make poor decisions?
-risk and uncertainty -cost of information -time constraints -incomplete information
when a group experiences diminished productivity due to the unstructured of brainstorming, this is known as production _________
blocking
__________ rationality is the term coined by March and Simon to describe the cognitive limitations that constrain the ability of people to interpret, process, and act on information
bounded
march and simon believed that decision making ability inhibited by cognitive limitations, the ability to interpret, process, and act on information. What term did they use to describe these limitations?
bounded rationality
which group problem-solving technique requires managers to meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision?
brainstorming
the _______ decision making model assumes that managers have perfect knowledge of all the information they need to make an optimal decision
classical
the ________ decision-making model is a prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their consequences and rational choose the most appropriate course of action
classical
by being aware of their own personal style, managers improve their decision making and problem solving abilities while reducing the negative effects of ________
cognitive biases
what can managers use to signal the importance of coming up with creative ideas and encouraging employees to share them?
contests and rewards
illusion of ___________ is a source of cognitive bias resulting from the tendency to overestimate personal ability to be in charge of activities and events
control
regarding promotion of individual creativity, research suggests that when certain conditions are met, managers are more likely to be _______
creative
the ability of a decision maker to discover original and novel ideas that lead to feasible alternative courses of action is what?
creativity
managers periodically make ineffective decisions because they fail to specify the ______ for decision making
criteria
once managers have generated a set of alternatives, they must evaluate the advantages and disadvantages of each one. This is the third step in __________ making
decision
the process by which managers respond to opportunities and threats by analyzing options and making determination about specific organizational goals and courses of action is __________ making
decision
when a manager makes an effective _________, it is likely to result in the appropriate selection of goals and courses of action that increase organizational performance, whereas the opposite results in bad performance
decision
by revealing the assumptions, complexities, and pitfalls that affect _____, the classical and administrative models help reveal factors of which decision makers should be aware
decision making
managers can use ___________ to regulate all routine organizational activities, thus making them programmed decisions
decision rules
the _____ technique is a decision-making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader
delphi
the ______ technique has the distinct advantage of eliminating the need to meet in person because group members respond in writing to questions posed by the leader
delphi
the ________ technique is a decision-making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader
delphi
when a group is using the ____- technique, the leader outlines the problem and prepares a questionnaire for group members who are not located in the same place as the leader
delphi
which group decision-making technique allows group members in different locations to respond in writing to questions posed by the group leader?
delphi technique
when someone within the group defends unpopular or opposing alternatives for the sake of argument as a means of critical analysis of a preferred alternative, the group is engaging in what?
devil's advocacy
when individuals have strong beliefs even though evidence shows that their beliefs are wrong, this is ___________
prior-hypothesis bias
a ________ is a manager who takes ownership of a project and provides the leadership and vision that take a product from the idea stage to the final customer
product champion
the idea behind ______ is that employees who feel ownership for a project are more likely to act like entrepreneurs and go to great lengths to ensure its success
product champions
every decision that a manager makes is either _____ or ______
programmed and non programmed
the first step in the decision making process is to ________
recognize the need for a decision
when an individual attempts to inappropriately generalize using a small sample or a single event, this is known as ______________ bias
representativeness
to encourage managers to bear the uncertainty and risk associated with entrepreneurship, it is necessary to link performance to?
rewards
tom wants to encourage his management team to act more like entrepreneurs but they are reluctant to bear the uncertainty and risk associated with it. Tom should consider linking performance to _____-
rewards
__________ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to the
risk
