MGT 331 Ch. 8
Stephen needs to decide about whether or not to promote his firm's new sportswear line. He knows that his sportswear company's ad campaign will result in the firm earning profits of $575,000. He also knows that if he doesn't run the ad campaign, his company will earn only $100,000. What type of condition is he operating under?
Condition of certainty
Nonprogrammed decisions require managers to use good judgment and __________.
Creativity
Which term refers to the ability of an individual to generate new ideas?
Creativity
The third step in the rational decision-making approach is to __________.
Determine the decision type
Divergent thinking is a skill that allows people to see __________ situations, phenomena, or events.
Differences among
Which of the following identifies post-decision dissonance?
Doubt about a choice that has been made
If you decide to take a break and go for a hike in order to focus less consciously on the creative process, which stage in the creative process are you experiencing?
Incubation
Which of the following statements is true about escalation of commitment?
It is also known as the sunk cost fallacy
According to prospect theory, people are more strongly motivated by __________ than by __________.
Potential losses, potential gains
A contingency plan specifies what will be done if __________.
The primary plan is disrupted
Some experts believe that groupthink contributed to the failure of NASA's Challenger mission. If this is correct, then which of the following statements is NOT likely true about the Challenger team members?
They fought constantly and couldn't agree on anything
Which of the following is NOT true regarding the difference between decision making and problem solving?
When solving a problem, you must choose from among various alternatives.
What is the goal of brainstorming?
produce new ideas and solutions by stimulating group members' creativity
Carla and John disagree about production goals for their office furniture manufacturing company. Carla, the marketing manager, believes the company will be most profitable with a wide variety of desk and chair models that are produced in short runs. John, the production floor supervisor, argues that the production of one model at a time makes the most sense and is, therefore, most profitable. They end up agreeing to do longer runs of fewer models, while still maintaining a modest variety of models to offer their customers. What type of behavioral approach does this decision represent?
suboptimizing
The Delphi technique is a method that allows people to __________.
systematically gather the judgments of experts to develop forecasts
