BMGT 2200 - CHP #11

Quality

Decisions follow more logically from available knowledge

According to the model of intuition, which of the following influence intuitive processes? (Check all that apply.)

Expertise and bounded rationality Expertise and feelings

Responsibility

It discourages decisions based on personal or bureaucratic considerations

Daniel Kahneman describes two types of thinking in his book Thinking, Fast and Slow. Why is System 2 "slow"?

It helps override wrong intuition. It is logical. It is deliberate.

Daniel Kahneman describes two types of thinking in his book Thinking, Fast and Slow. Why is System 1 "fast"?

It is instinctive. It relies on mental shortcuts. It is automatic.

What type of thinking is described by Daniel Kahneman as intuitive and unconscious thought?

System 1

What type of thinking is described by Daniel Kahneman as analytical and conscious thought?

System 2

Transparency

The reasoning behind a decision is available for scrutiny

Which of the following are characteristic of people with the conceptual decision making style?

They rely on intuition A long-term perspective A broad perspective

Confirmation bias has which of the following components?

a decision is made before investigating it information is sought that confirms the already made decision and discounts information that does not

A holistic hunch can be described as:

a judgment based on subconscious synthesis of memories a decision that just feels right

Automated experiences are based on:

a partly subconscious applying of information that was previously learned well-known situations

A problem occurs when there is a gap between a(n) _____ and a(n) _____ situation

actual desired

Research has found that key decision-making errors include:

allocating resources poorly to study alternatives making a quick decision without looking at all available information selecting a solution without considering alternatives

When decision makers are influenced by the first information they receive even if it is irrelevant, it is:

anchoring bias

Characteristics of the rational decision-making model include the assumption that managers:

are objective possess all information needed to make the best decision

A choice that is made based on a familiar situation and a partially subconscious application of related information that had been previously acquired is a(n) _____ _____

automated experience

A choice that is made based on a well-known situation and a partly subconscious application of previously learned information is a(n):

automated experience

According to the model of intuition, one of the processes of intuition is controlled, voluntary, and effortful and the other is _____.

automatic, involuntary, and mostly effortless

The tendency to base decisions on information that is recent and easily recalled from memory is:

availability bias

People who are receptive to suggestions and focus strongly on people and the social aspects of a work situation have which of the following decision-making styles?

behavioral

During the decision-making process, a means of coming up with potential ways to solve a problem is:

brainstorming

Which two activities are included in the decision-making process?

choosing from among alternative solutions determining alternative solutions

People who have a high tolerance for ambiguity and focus on people and the social aspects of a work situation have which of the following decision making styles?

conceptual

What is it called when a decision maker recognizes information that supports a decision, while ignoring contracting information?

confirmation bias

The Delphi technique is useful when:

conflicts will impair communications certain individuals may dominate the group face-to-face discussions are impractical

The way an individual perceives stimuli and the general manner in which he or she responds to it is a(n) _____ - _____ style. (Enter one word in each blank.)

decision making

When you pinpoint and pick a solution that best solves a problem, this is:

decision making

The first two steps in the rational decision making model are:

determining the issue at hand generating alternative solutions

The tendency to stick to an ineffective course of action when it is unlikely that a bad situation can be reversed is:

escalation of commitment bias

Information that can be easily described is ______ knowledge

explicit

Bounded rationality is the idea that decision makers:

face various restrictions when making decisions

What type of bias relates to the manner in which a question is posed?

framing bias

When winning an argument with a rival overshadows the primary goal of trying to solve the problem, it is known as _____ _____

goal displacement

When people who are members of a cohesive in-group so strive for unanimity that they fail to realistically appraise alternative courses of action it is:

groupthink

What are the disadvantages of hindsight bias?

having overconfidence in foresight, which leads to bad decisions

Cognitive shortcuts or biases we use to simplify the making of decisions are judgmental_____

heuristics

The bias that occurs when knowledge of previous outcomes influences decisions about the probability of future occurrences is:

hindsight bias

Which of the following elements influence decision makers falling into the trap of anchoring bias?

impressions feedback stereotypes

The limitations under which managers make decisions result in acquiring manageable rather than optimal amounts of

information

Decisions that come to mind on their own and are not evaluated for validity are known as

intuition

What are the disadvantages to Kahneman's System 1 thinking?

jumping to conclusions poor follow-through

The assumptions behind nonrational models of decision making are that:

managers struggle to make the best decisions decision makers lack complete information decision making lacks certainty

What are the disadvantages to Kahneman's System 2 thinking?

mental energy requirement time consumption

The extent to which group members feel comfortable disagreeing with other group members is

minority dissent

What models of decision making explain how managers really come to decisions?

nonrational

A(n) _____ is a situation in which it is possible to do something that eclipses expectations.

oppurtunity

When you can possibly produce results that surpass goals, it is a(n):

oppurtunity

What can managers do if the chosen alternative fails to eliminate the gap between the desired and actual situation?

optimizing

What is it called when decision makers overestimate their skills relative to those of other participants?

overconfidence bias

A _____ is the divide between an actual and a desired situation.

problem

If a chosen solution fails to solve the problem, managers can return to the _____ _____ stage of the model.

problem identification

The decision-making model that assumes managers are fully objective and have all information they need to make a decision is the _____ decision model.

rational

The decision-making model that assumes managers are fully objective and have all the data needed is the:

rational decision model

The decision-making heuristic used when people estimate the probability of an event occurring based on impressions about similar occurrences is:

representativeness bias

Deciding to choose a solution that meets enough minimum qualifications is:

satisficing

Deciding to select a solution that meets some minimum, adequate qualifications is

satisficing

Which of the symptoms of groupthink stifles critical debate?

self censorship

Managers can reduce the likelihood of escalation of commitment bias if they:

set minimum targets for performance and compare results to targets make decision makers aware of the costs of persistence

Knowledge gained through experience that is hard to explain is knowledge

tacit

Which of the following are discouraged by the rational model?

taking action for personal benefit taking action to avoid bureaucratic problems

Examples of internal resources that constrain decision making process in the nonrational model include

technology and financial capital human and social capital

When you rely on intuition, which of the following are lacking?

the conscious awareness of the evoking cues the evaluation of the effectiveness of the evoking cues

Picking a solution is which step in the rational decision making process?

third

What are the three ways managers use evidence or data in the decision-making process?

to support a decision to make a decision to inform a decision

The extent to which a person has a high need for structure and control in his or her life is known as:

tolerance for ambiguity

The model of decision-making styles is based on which of the following dimensions?

tolerance for ambiguity value orientation

What practical consideration might result in an individual rather than the whole group making a decision?

when there is limited time

Criteria that should be used in evaluating alternatives are:

whether it is ethical what it will cost whether it will solve the problem