MGT 300: Managerial Decision-Making

One strategy that managers can use to counteract diffusion of responsibility is to ______.

make group members' responsibilities for decisions explicit and concrete

An important difference between programmed decisions and non-programmed decisions is that ______.

non-programmed decisions require a rational approach, while programmed decisions do not

In decision making, satisficing is ______.

a strategy in which a decision maker accepts an available option as satisfactory

Compared to the four other major styles of decision making, the autocratic style ______.

allows the manager to retain the most control

A key difference between the representativeness heuristic and the availability heuristic is that ______.

people using the representativeness heuristic make decisions in spite of good evidence to the contrary of an event, while people using the availability heuristic make decisions based on whatever information is most readily available to them

Complete the following sentence with all of the statements that describe the root cause of most barriers to individual decision making. When making decisions, human beings do not possess the brainpower for complete ______. (Select all that apply.) analysis of all relevant information rational and comprehensive examination information processing in a reasonable amount of time programmed decision making

analysis of all relevant information rational and comprehensive examination information processing in a reasonable amount of time

Complete the following sentence with the true statement about individual and team decision making. Individual and team decision making ______.

are related to each other

Human beings are unable to be completely rational and comprehensive and typically have neither the cognitive capacity nor the time to analyze all relevant information when making decisions. This sums up the root cause of most ______.

barriers to individual decision making

The Abilene Paradox is represented by ______.

behavior in which individuals act contrary to their own wishes and are likely to experience negative feelings about the outcome of the team's decision

The concept of bounded rationality is represented by the ______.

belief that a person's level of rationality in the decision making process is limited by the information she/he possesses

The tendency or inclination to make a certain type of decision making error when confronted with similar decision making stimuli is called ______.

bias

Complete the following sentence with all of the statements that describe the intuitive decision making process. The intuitive decision making process ______. (Select all that apply.) is simple to explain because it involves problems that are familiar to an individual can be used to make good decisions can allow experts to resolve complicated issues quickly

can be used to make good decisions can allow experts to resolve complicated issues quickly

The _____ decision making style involves a manager presenting a problem and seeking potential solutions from individual subordinates.

consult individually

The _____ decision making style involves a manager presenting a problem and seeking potential solutions from subordinates in a group setting.

consult the group

Which of these lists represents the steps in the rational decision making process?

Identify the problem, identify the decision criteria, develop a list of plausible solutions, evaluate the plausible solutions, implement solution and monitor.

How do the judgments of individual team members usually factor into a team's final decision? (Select all that apply.) Opinions and ideas of some individuals are often given more weight than others. The team considers thoughts and conclusions from individual members. Teams tend to adopt the decision of the most assertive team member, refining it if necessary. The team's final decision incorporates the judgments of various team members.

Opinions and ideas of some individuals are often given more weight than others. The team considers thoughts and conclusions from individual members. The team's final decision incorporates the judgments of various team members.

Which of the following statements are true about the similarities between the consult individually and consult the group decision making styles? (Select all that apply.) Managers maintain control of the decision making process when using both the consult individually and consult the group decision making styles. Managers seek input from subordinates in both the consult individually and consult the group decision making styles. In both the consult individually and consult the group decision making styles, the manager seeks solutions in a group setting.

Managers maintain control of the decision making process when using both the consult individually and consult the group decision making styles. Managers seek input from subordinates in both the consult individually and consult the group decision making styles.

Select all of the true statements about decision making in organizations. (Select all that apply.) Managers make decisions daily as a part of their jobs, and many of these decisions are actually ineffective. Decision making occurs when individuals or teams make choices or select courses of action to address specific organizational problems. Higher-level managers in organizations tend to make decisions with greater ease and more precision due to their levels of experience.

Managers make decisions daily as a part of their jobs, and many of these decisions are actually ineffective. Decision making occurs when individuals or teams make choices or select courses of action to address specific organizational problems.

Which of the following represent challenges when applying the VYJ model? (Select all that apply.) Managers may sometimes need to run through a situation with more than one answer to a question in mind. The more time a manager has to make a decision, the more difficult it becomes to use the model. In some situations, a manager's answers may be neutral as opposed to yes or no.

Managers may sometimes need to run through a situation with more than one answer to a question in mind. In some situations, a manager's answers may be neutral as opposed to yes or no.

Jean, a hiring manager, knows that research strongly supports the notion that structured interviews are much better selection devices than personal hunches. However, the last time Jean hired someone based on a hunch, the employee ended up being a star in the company. Therefore, Jean decides to go with a hunch again for the current hire. This scenario is most representative of which decision making heuristic/bias?

Representativeness heuristic

______ is a strategy in which a decision maker accepts an available option as satisfactory.

Satisficing

In regard to the challenges teams face as they make decisions, which statements are true? (Select all that apply.) Social influence can cause the team to give too much weight to the ideas of some members while discounting others, simply because of who they are. Diffusion of responsibility occurs when the entire team embarks in the wrong direction because all of the members mistakenly believe that the others want to go there. Groupthink occurs when individuals say they agree with the team instead of voicing their own concerns, objections, and creative ideas. The Abilene Paradox can cause the team to miss a deadline because each member is waiting for someone else to take the lead.

Social influence can cause the team to give too much weight to the ideas of some members while discounting others, simply because of who they are. Groupthink occurs when individuals say they agree with the team instead of voicing their own concerns, objections, and creative ideas.

Select all of the true statements regarding the challenges to team decision making. (Select all that apply.) Social influence results in a change in behavior, while diffusion of responsibility results in a lack of action. The Abilene Paradox involves assumptions about others' preferences, while groupthink involves the desire to maintain similar preferences with other group members. Diffusion of responsibility often causes people to passionately advocate for positions they don't necessarily believe in.

Social influence results in a change in behavior, while diffusion of responsibility results in a lack of action. The Abilene Paradox involves assumptions about others' preferences, while groupthink involves the desire to maintain similar preferences with other group members.

One strategy that managers can use to counteract social influence is to ______.

encourage leaders to try to separate themselves as much as possible from the team members when considering their recommendations and making final team decisions

A manager's subordinates feel that they're losing hours of productivity every week because of constant group meetings where their input is sought. Of which decision making style is this most likely to be the outcome?

facilitative

The VYJ model is often referred to as being time-driven because it ______.

focuses on the goal of making good decisions in a timely manner

One strategy that managers can use to counteract the Abilene Paradox is to ______.

have open conversations with teammates prior to making decisions, to be sure your assumptions about their preferences are correct

The purpose of the VYJ model is to ______.

help managers to make good decisions in a timely manner

Mental shortcuts that use past experiences to speed up the decision making process are called ______.

heuristics

Biases are ______.

inclinations to make certain types of decision making errors when confronted with similar decision making stimuli

Complete the following sentence with the statement that is the best example of diffusion of responsibility. You are part of a team project at work. The night before it's time to submit your team's work to your supervisor, you wonder if anyone on the team has proofread the report. You decide ______.

someone must have done it, since it's such an important project, and you decide you don't need to proofread it yourself before submitting

The VYJ model can sometimes be difficult to apply because ______. (Select all that apply.) the model looks somewhat complicated to apply in situations where time is extremely limited the success rate is very low, even when managers' decisions are consistent with the model's suggestions some situations are difficult to characterize with a simple yes or no

the model looks somewhat complicated to apply in situations where time is extremely limited some situations are difficult to characterize with a simple yes or no

Evidence-based management is ______.

the process of using current, concrete research when making decisions

Diffusion of responsibility is characterized by ______.

the tendency of individual team members to withhold taking action because they believe others have done so or will in the future

Which of the following decision making styles requires the least amount of subordinate involvement?

Autocratic

Select all of the metrics used to judge decision effectiveness. (Select all that apply.) Accuracy Consensus Complexity Acceptability

Accuracy Consensus Acceptability

Which of these lists represents the three metrics used to judge decision effectiveness?

Accuracy, consensus, acceptability

Your department is meeting to evaluate the three top candidates for an important job and to make a final selection. Department members spend hours sharing their opinions and concerns about each candidate. Which of the following exemplifies decision making effectiveness being judged based on consensus in this case?

After lengthy and careful discussion in which the pros and cons of each candidate are considered in tandem with the department's needs, everyone is able to agree that one particular candidate is best.

Rosie, a college student, is thinking of quitting her job and starting her own business, even though she has almost no money saved or entrepreneurial experience. She follows an Instagram account that features millennials who quit their day jobs, started their own companies with relatively little experience or money, and became millionaires. Looking through these posts gives her courage to take the risk and believe she will become a millionaire too. This scenario is most representative of which decision making heuristic/bias?

Availability heuristic

Rosita's team has been working on a project that is in danger of going over budget. She calls a meeting and has all of the team members think of numerous ways they could cut costs. Some ideas are much more realistic and helpful than others, but she writes them all down. Then the team evaluates the ideas and chooses what seem to be the best options. What problem solving technique is Rosita using?

Brainstorming

Which of the following scenarios is an example of social influence?

Chris is very outspoken and opinionated in meetings. Your new department head has become fast friends with Chris and doesn't realize that Chris' opinions are often without merit. Your department head seems to be overly reliant on Chris' feedback when making decisions.

Which of the following decision making styles requires the highest amount of subordinate involvement?

Delegative

After numerous meetings and discussions, Mae's team has finally reached a decision about the best way to market the company's new brand of pet food. Before the decision is finalized, Mae asks several team members to criticize the plan and point out any flaws in the team's assumptions. What problem solving technique is Mae using?

Devil's advocacy

______ is the tendency of individual team members to withhold taking action because they believe others have done so or will in the future.

Diffusion of responsibility

Which of the following are some of the questions managers should ask themselves when making decisions with the VYJ model? (Select all that apply.) Do the subordinates have expertise related to the problem? Does the organization have the resources necessary to solve the problem? Is it important that subordinates are committed to, or buy into, the decision? Will the manager be committed to the decision if made by the subordinates?

Do the subordinates have expertise related to the problem? Is it important that subordinates are committed to, or buy into, the decision?

Which of the following are some of the questions managers should ask themselves when making decisions with the VYJ model? (Select all that apply.) Does the organization have the resources necessary to solve the problem? Do the subordinates have expertise related to the problem? Is it important that subordinates are committed to, or buy into, the decision? Will the manager be committed to the decision if made by the subordinates?

Do the subordinates have expertise related to the problem? Is it important that subordinates are committed to, or buy into, the decision?

Samir, the company's chief marketing officer, hired a new marketing director about a year ago, about whom he was very enthusiastic. Samir personally recommended the candidate for the position and fought hard to get the other executives to support the hire. However, it became evident within a couple of months that the new hire wasn't working out. The new hire didn't fit well in the company, failed to make any noticeable improvements to the division, and did not get along well with others. Samir continued to support his hire despite the fact that he made a bad decision in bringing this person into the company. This scenario is most representative of which decision making heuristic/bias?

Escalation of commitment

______ management is the process of using current, concrete research when making decisions.

Evidence-based

Select all of the statements that describe challenges to team decision making. (Select all that apply.) Heuristics and biases cloud team members' judgments. Decision making involves the integration of team members' already-biased judgments into team decisions. Because of the individual element, problems such as groupthink and diffusion of responsibility may arise.

Heuristics and biases cloud team members' judgments. Decision making involves the integration of team members' already-biased judgments into team decisions.

Select all of the steps in the rational decision making process. (Select all that apply.) Implement solution and monitor. Evaluate the plausible solutions. Develop a list of plausible solutions. Identify the problem. Rank plausible solutions in order of preference. Identify the decision criteria.

Implement solution and monitor. Evaluate the plausible solutions. Develop a list of plausible solutions. Identify the problem. Identify the decision criteria.

Select all of the true statements regarding how decisions are evaluated for effectiveness. (Select all that apply.) Consensus applies to individual decision making, while accuracy only applies to team decisions. In some decision making situations, it is not absolutely crucial that an optimal solution is reached. Consensus, acceptability, and accuracy are three different metrics you can use to evaluate the effectiveness of your decisions.

In some decision making situations, it is not absolutely crucial that an optimal solution is reached. Consensus, acceptability, and accuracy are three different metrics you can use to evaluate the effectiveness of your decisions.

______ is characterized by nearly instantaneous judgments about a situation based on past experience and without conscious thought.

Intuition

Which statement accurately describes some of the challenges to team decision making?

Issues such as groupthink, The Abilene Paradox, diffusion of responsibility, and social influence may result in decision making errors on teams, due to the social element of team decisions.

Regarding the five major styles of decision making, which statements are true? (Select all that apply.) Managers and subordinates have an equal amount of control when managers use the "consult individually" style. Subordinates have the most control when managers use the delegative style. The amount of control varies widely, regardless of which style the manager uses. Managers retain the most control when they use the autocratic style.

Subordinates have the most control when managers use the delegative style. Managers retain the most control when they use the autocratic style.

______ is characterized by behavior in which individuals act contrary to their own wishes and are likely to experience negative feelings about the outcome of the team's decision.

The Abilene Paradox

Ryan is concerned that his team has been making decisions by simply agreeing with Janelle, who tends to have a strong opinion about things. Instead of asking the team to make a decision during a meeting where people could be influenced by Janelle, he passes out questionnaires to discover what each member of the team has to say. He tallies the results and keeps passing out more questionnaires until the team reaches consensus. What problem solving technique is Ryan using?

The Delphi method

Why is it important for a manager to put effort into developing decision-making skills? (Select all that apply.) The best decision is not always simple or obvious. Learning to be systematic and objective can make decisions easier. There is often more than one correct answer to the problem. Decision making is essentially an exercise in considering all information and options.

The best decision is not always simple or obvious. Learning to be systematic and objective can make decisions easier. There is often more than one correct answer to the problem.

Which of the following represent limitations of the intuitive decision making process? (Select all that apply.) The expertise on which intuitive decisions are based can become outdated. Intuition can be overly reliant on current research evidence. Experts may be unable to provide clear rationale or justification for specific decisions.

The expertise on which intuitive decisions are based can become outdated. Experts may be unable to provide clear rationale or justification for specific decisions.

Select all of the true statements regarding the five major decision making styles. (Select all that apply.) The five major decision making styles are autocratic, consult individually, consult the group, facilitative, and delegative. With the delegative decision making style, subordinates become accountable for the effectiveness of the decision. Managers who use a facilitative decision making style must be sure that their input is not weighted more than the input of their subordinates.

The five major decision making styles are autocratic, consult individually, consult the group, facilitative, and delegative. Managers who use a facilitative decision making style must be sure that their input is not weighted more than the input of their subordinates.

What is the root cause behind the fact that it is so often difficult for individuals to make rational, timely decisions based on an analysis of all relevant information?

The human brain is insufficient for the task.

A sick patient visits a physician, asking for diagnosis and treatment. Which example shows the physician making an effective, accurate decision regarding this patient?

The physician considers the patient's symptoms and history, makes a diagnosis based on this information along with her expertise, and prescribes a course of treatment that ultimately cures the patient's ailment.

Which of the following scenarios is an example of groupthink?

You disagree with the decision your team is making, but you keep this information to yourself because you feel the group's overall dynamic is more important than your opinion being heard.

The consult individually decision making style involves managers ______.

presenting a problem and seeking potential solutions from individual subordinates

The consult the group decision making style involves managers ______.

presenting a problem and seeking potential solutions from subordinates in a group setting

The concept of bounded ______ says that in the decision making process, a person's level of rationality is limited by the information he or she possesses.

rationality

A key difference between the confirmation bias and the escalation of commitment is that the confirmation bias ______.

relates to the tendency to seek information that supports our belief, while the escalation of commitment relates to the tendency to ignore information that proves we have been wrong

Complete the following sentence with the statement that is the best example of the Abilene Paradox. Your boss comments that she had dinner at a Cajun restaurant last week and ______.

when it's time for your monthly lunch together, you suggest the same restaurant, even though you don't like Cajun food and don't realize that she didn't enjoy her meal there

Managers can evaluate the effectiveness of decisions by determining ______. (Select all that apply.) whether the decisions were good enough to allow the team to achieve its goals how close their teams came to reaching consensus about the decisions whether the decisions were accurate how much optimism team members felt after the decisions were reached

whether the decisions were good enough to allow the team to achieve its goals how close their teams came to reaching consensus about the decisions whether the decisions were accurate