Chapter 08: Managing Decision Making and Problem Solving

A friend asked if you would like to open a deli near your school's campus, where there are very few inexpensive places to eat. Although a deli probably would be successful, you declined; even the possibility of losing money made you too nervous due to your low __________________. risk propensity state of uncertainty state of certainty

risk propensity

By not recognizing her ___________, Molly repeatedly took her 8-year-old laptop for repairs, even though the repair costs were greater than the price of a brand-new, faster laptop with much more memory. intuition risk propensity groupthink escalation of commitment

escalation of commitment

Groupthink occurs when a team desire for consensus overwhelms the desire to reach the best outcome. As a team leader, which tactic can you use to minimize the potential for groupthink in your team's decision making? Assign at least one member to play the role of devil's advocate. Make your own opinion clearly known. Refrain from setting a deadline. Ask for the team to unify behind one decision.

Assign at least one member to play the role of devil's advocate.

Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the following are advantages of group decision making? Check all that apply. The process may be costlier because it takes more time. Better communication of the decision may occur. More knowledge and information are considered. Participants may be indecisive and seek a compromise solution.

Better communication of the decision may occur. More knowledge and information are considered.

Lana is a marketing manager for Prika Software. Prika makes a product called "App Finder," which helps people find the apps they want to have on their cell phones. Last year, Prika sold only 4,000 copies of App Finder at $5.00 each, and projections for this year aren't much higher. This year, Lana wants to spend $75,000 to create a new home page for the product, because her company has already spent $100,000 in development. Escalation Satisficing Intuition

Escalation

You are working as part of a team tasked with identifying potential problems in the company's code of ethics. It's important that flaws in the code be discovered before it is finalized and that means the team should be willing to disagree with each other as the code is discussed. Which team decision-making approach will be best for ensuring the members can openly discuss, argue about, and agree on the best outcome? Nominal group technique Interacting group approach Delphi group technique Focus group technique

Interacting group approach

Nolan is the director of the Lycarta Society, an organization dedicated to identifying art forgeries throughout the world. Nolan has been doing his job for almost 20 years, and he is a particular expert in the works of Jackson Pollock, an American painter. Last week, Nolan simply glanced at a painting, and he was able to instantly say that it had not been created by Pollock, with virtually no information other than a quick visual scan of the piece. Intuition Escalation Satisficing

Intuition

After you review the six steps with Liz, she asks for an example of how to identify alternatives as she decides whether VoxSigns should lay off employees. Which of the following is the correct example to give to Liz?

Liz would make a list of ways the company might address its financial concerns, such as laying off employees, increasing customer prices, moving to a less expensive office space, or a combination of these ideas.

While Liz likes the structure provided by the rational decision-making process, you caution her that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations? Check all that apply. Managers are limited by their values and unconscious beliefs. Managers cannot always obtain complete and accurate information. Managers do not always evaluate situations rationally. Managers usually have the resources to consider numerous alternatives.

Managers are limited by their values and unconscious beliefs. Managers cannot always obtain complete and accurate information. Managers do not always evaluate situations rationally.

Congratulations! You were accepted at four colleges and now must decide which to attend. Each school is located in a different part of the country, has different tuition costs, and offers some degrees that are unavailable at the other schools. Your decision about which school to choose is a:

Nonprogrammed Decision

In 2020, Facebook announced plans to introduce a mobile gaming app designed for live gameplay. The app took several years to develop and was tested with users for 18 months before its release. The decision Facebook made to develop a mobile gaming app is a:

Nonprogrammed Decision

Every morning when you walk into Starbucks, you order the same thing: a venti green tea Frappuccino with extra whipped cream. You can't drink anything else at Starbucks because you don't like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. Your decision about what to order at Starbucks today is a:

Programmed Decision

Last spring, your spouse surprised you with a puppy (named Loki after the Norse god of mischief). Fortunately, the puppy gets along well with your 17 cats. The decision you make every day about whether to feed Loki is a:

Programmed Decision

Mara and her sorority sisters decided it would be fun to dress in matching outfits for an upcoming event. The sorority sisters met at a clothing boutique, where they began pulling items off the racks and got a variety of reactions. Mara showed everyone a short-sleeve Michael Kors dress with a scoop neckline and A-line silhouette. Every sorority sister thought it looked good. There happened to be enough in stock and, better yet, it was on sale! They decided that everyone would buy the Michael Kors dress. Satisficing Intuition Escalation

Satisficing

Decision-Making Steps

Select the best alternative: 4 Define the decision: 1 Identify the alternatives: 2 Implement the chosen alternative: 5 Evaluate the alternatives: 3 Evaluate the results: 6

Your company's events committee learned that there is a 20% chance of rain on the day of the company picnic. That also means an 80% chance of dry weather. Renting an indoor facility would require a nonrefundable payment of $1,000. The events committee is operating under a _____________________ as it decides whether to keep the outside location or to move the event indoors. state of uncertainty state of certainty risk propensity state of risk

state of risk