chapter 7 organization and management

Which of the following is an accurate description of decision making?

The process of identifying and choosing alternative courses of action

what are the assumptions of the rational model? - __________ info, no uncertainty - ____________, unemotional analysis - manager chooses the _________ decision for the organization

complete, logical, best

Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?

conceptual

Individuals trained in matters of ethics in the workplace, particularly about resolving ethical dilemmas

ethical officers

The primary goal is subsumed to a secondary goal

Goal displacement

______ are strategies such as "rules of thumb" that simplify decision making.

heuristics

Making a choice without the use of conscious thought or logical inference

intuition

Evidence-based decision relies on ______

observations about what actually works

Difficulties that inhibit the achievement of goals

problems

what are the two nonrational models?

satisficing and intuition

Kendall is frustrated with her co-worker Jill. She feels that Jill doesn't care that their manager seems to be showing favoritism toward the two other members of their team. Jill just focuses on the work she is supposed to do, which demonstrates her ______.

value orientation

Which questions should you ask when developing ready-made solutions based on past experiences? (Choose every correct answer.) 1. What was the solution? 2. Who was most responsible for the problem? 3. What was the problem? 4. What lessons can you derive from this experience?

1, 3, 4

People with a conceptual decision-making style are likely to do which of the following? (Choose every correct answer.) 1. Take risks 2. Act autocratically 3. Rely on intuition 4. Focus on the facts 5. Find creative solutions

1, 3, 5

The first stage in the rational decision-making process involves ______.

identifying the problem

What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart?

Brainstorming

Process of examining data sets in order to draw conclusions about the information they contain

Data analytics

The process of identifying and choosing alternative courses of action

Decision making

a common decision-making bias; When decision makers increase their commitment to a project despite negative information about it

Escalation of commitment bias

Situations that present possibilities for exceeding existing goals

opportunities

When making decisions for her department, Ellie tends to take a long time because she takes into consideration a large amount of information. What type of decision-making style does Ellie demonstrate?

Analytical

In the fourth stage of rational decision making, managers will ______.

implement and evaluate the chosen solution

what is the 4th stage in rational decision making?

implement and evaluate the solution chosen

a common decision-making bias; Way of thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon it; also called the sunk-cost fallacy ex. buying tickets for a show that are really expensive; person quickly notices show is a disaster, but stays bc tickets were really expensive

sunk-cost bias

All of the following are advantages to group decision making except ______. 1. superiors dominating or intimidating the group 2. deeper commitment to the decision 3. greater pool of knowledge 4. different perspectives

1

All the following are characteristics of group decision making except ______. 1. groups make decisions quickly 2. their knowledge counts 3. their size affects their decision quality 4. they may be too confident

1

Which of the following is an advantage of group decision making? 1. Intellectual stimulation 2. Goal displacement 3. Groupthink 4. Satisficing

1

Which steps are recommended for establishing a process or method for making decisions? (Choose every correct answer.) 1. Consider whether the decision is consistent with your values. 2. Conduct a cost-benefit analysis. 3. Ignore feedback or opinions from others and go with your gut instinct. 4. Analyze the situation.

1, 2, 4

Which of these describe how knowledge of decision-making styles affects managers' work? (Choose every correct answer.) 1. It allows managers to better identify personal strengths and weaknesses. 2. It enables managers to more accurately blame others for problems. 3. It gives managers an understanding of how different people reach different conclusions. 4. It reduces managers' ability to predict future challenges.

1, 3,

What are common results of groupthink? (Choose every correct answer.) 1. Infighting and conflict 2. Failure to consider new information 3. Loss of new ideas 4. Ideas that are too ambitious or unorthodox

2, 3

What are three characteristics that affect decision making by a group? (Choose every correct answer.) 1. The gender differences present in the group 2. The knowledge of group members 3. The efficiency of the group 4. The fact that groups tend to make bad decisions 5. The size of the group

2, 3, 5

Analyzing the underlying causes

Diagnosis

Jackson likes to hear the facts of a situation and make a quick decision based on these facts. His employees say he likes to focus on the here and now and doesn't consider future repercussions of his decisions. What type of decision-making style does Jackson use?

Directive

Technique in which members of a group come together over a computer network to generate ideas and alternatives

Electronic brainstorming

Jai is a member of a tight-knit team at work that avoids any kind of disagreement. Team members, therefore, avoid considering new ideas. What behavior is Jai's team exhibiting?

Groupthink

a common decision-making bias; the i-knew-it-all-along effect; The tendency of people to view events as being more predictable than they really are

Hindsight bias

What is the best way to develop a ready-made solution?

Identify best practices and turn them into standard operating procedure.

Dissent that occurs when a minority in a group publicly opposes the beliefs, attitudes, ideas, procedures, or policies assumed by the majority of the group

Minority dissent

What is the recommended step you should take after making a decision?

Observe the results, then conduct a post-mortem.

Category of data analysis that makes predictions about future outcomes based on historical data and analytics techniques

Predictive analytics

A review of recent decisions in order to identify possible future improvements

Project post-mortem

Occurs when powerless, but useful individuals are selected by leaders to rubber stamp decisions and work hard to implement them

Sham participation

Which of the following is a primary use of AI among U.S. companies? Multiple choice question.

To gain competitive advantage

A consensus is reached when all members are able to express their opinions ______.

and reach agreement to support the final decision

what is the most common type of AI?

automated business processes

Rather than holding formal meetings in the board room, Kevin prefers meeting with his group over lunch at a restaurant. He feels that his group opens up more during these lunches and opinions are openly exchanged. Which style of decision making does Kevin use?

behavioral

Michelle met with her five employees around a table and asked each of them to take five minutes to write down what they personally thought their new facility should include. She then collected the information and wrote it on the white board for all of them to view and decide upon. Michelle is using the ______ technique.

brainstorming

more group problem-solving techniques 1. brainstorming: for increasing ______________ 2. __________ advocacy 3. the ___________ method: structured dialogue or debate of opposing viewpoints prior to making a decision 4. project post-__________ evaluate project results after the fact, noting what could be done differently and better, and then record those insights to inform future decisions

creativity, devil's, dialectic, mortems

which type of business need supported by AI is the least common type of AI and its still a work in progress?

engaging customers and employees

True or false: Overconfidence bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them.

false

True or false: Soft skills do not have a role in evidence-based decision making.

false

they are less efficient their size affects decision quality they may be too confident knowledge counts area ll characteristics of what?

groups

A cohesive group's blind unwillingness to consider alternatives. This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation

groupthink

The top challenges of AI are: i_______________ ________ issues _c_______

implementation, data, costs

Disadvantages of Group Decision Making - A few people dominate or __________ Groupthink Satisficing Goal ____________

intimidate, displacement

advantages of group decision thinking: - greater pool of __________ - different _____________ -intellect _____________ - better understanding of decision ______________ - deeper __________ to the decision

knowledge, perspectives, stimulation, rationale, commitment

The ______ bias occurs when people's positive feelings about their own decision-making ability is greater than their objective accuracy.

overconfidence

Even though not everyone in the meeting agreed with the final decision, the group decided to proceed and replace all existing machine parts in the warehouse. In this situation, the group had ______.

reached a consensus

Heuristics are strategies that ______ the process of making decisions.

simplify

When Kendra's manager asked the team to come up with new ideas for attracting people to their trade show booth, Kendra suggested installing a video game in the booth. Which part of the rational decision-making process does Kendra's idea exemplify?

think up alternative solutions

_________ for ___________ reflects to the extent to which a person has a high need for structure or control in his or her life

tolerance for ambiguity

Which of the following are examples of what can function as the first stage in rational decision making by managers? (Choose every correct answer.) 1. Poor product quality 2. Sales shortfalls 3. Customer complaints 4. Low staff turnover

1, 2, 3

Successful implementation (of solution) of major decisions requires which of the following? (Choose every correct answer.) 1. Reliance on the easy way out of the problem 2. Ignoring ethical dilemmas 3. Sensitivity to those affected by the decision 4. Careful planning

3, 4

Successful implementation of major decisions requires which of the following? (Choose every correct answer.) 1. Reliance on the easy way out of the problem 2. Ignoring ethical dilemmas 3. Sensitivity to those affected by the decision 4. Careful planning

3, 4

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making? (Choose every correct answer.) 1. Is it creative? 2. Is it profitable? 3. Is it ethical? 4. Is it feasible? 5. Is it ultimately effective?

3, 4, 5

List the steps of the rational model of decision making in the correct order, with the first step listed at the top and the last step listed at the bottom. 1. evaluate alternatives and select a solution 2. implement and evaluate the solution chosen 3. think of alternative solutions 4. identify the problem or opportunity

4, 3, 1, 2

The ability of a computer system to perform tasks that normally require human intelligence

Artificial intelligence (AI)

What is the fundamental concern shared among all critics of artificial intelligence?

Artificial intelligence has the capacity to become smarter than humans, threatening their very existence.

What is the most common type of AI used today?

Automated business processes

Which one of the following best describes the decisions made by a person with an analytical style?

Carefully considers lots information and alternatives

a common decision-making bias; Biased way of thinking in which people seek information to support their point of view and discount data that do not support it

Confirmation bias

Styles that reflect the combination of how an individual perceives and responds to information

Decision-making styles

Knowledge of decision-making styles can assist managers in many ways except for which one of the following?

It increases the biases of the manager toward their favorite style.

An extension of predictive analytics, occurs when systems or algorithms automatically improve themselves based on data patterns, experiences, and observations

Machine learning

When robots act like a human inputing and extracting information

Robotic process automation (RPA)

Extreme and inflated sense of pride, certainty, and confidence another characteristic that can influence bounded rationality

hubris

managers with this type of decision-making style like to consider more info and alternatives than those adopting the directive style; they are careful decision makers who take longer to make decisions, but they also tend to overanalyze a situation

analytical style

An online retailer uses complex data-mining software to evaluate the preferences and buying habits of its customers and makes decisions based on these findings. This is an example of the use of ______ in the decision-making process.

analytics

a common decision-making bias; The tendency to make decisions based on an initial figure ex. negotiating based on initial price of car

anchoring and adjustment bias

Home depot app having voice technology, which alllos customer to search through more than one million items online and in the company's more than 2200 stores by talking into their phone is an example of which important business need that AI supports?

automated business processes

AI supports three important business needs: __________ business processes ___________ data ____________ customers and employees

automating, analyzing, engaging

Collect data from situations to make calculations, define probabilities, and make reason-based decisions according to programmed goals

autonomous devices

what is the 1st stage in rational decision making?

identify the problem or opportunity

Which decision-making style is the most people oriented of the four styles?

behavioral

people with this type of decision-making style work well with others, encourage exchanging opinions, are supportive

behavioral style

Stores of data so vast that conventional database management systems cannot handle them

big data

Stores of data that are so large or complex that it is difficult to process them using traditional database management applications are known as ______.

big data

One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints such as complexity time, money, and cognitive capacity, values, skills, habits

bounded rationality

a common decision-making bias; Tendency of decision makers to classify people or information based on observed or inferred characteristics

categorial thinking bias

people with this type of decision-making style like to rely on intuition and have a long-term perspective; they take a broad perspective to problem solving and like to consider many options and future possibilities

conceptual style

what are the five applications of big data? - meeting ___________ needs (data on consumer behavior--Netflix recommendations) - improving human resource _____________ practices - enhancing production ____________ - advancing health and _____________ (ex. using genomic data to more accurately predict illnesses) aiding ________ policy ex. using data-driven tools to identify mentally ill prisoners

customer, management, efficiency, medicine, public

Home Depot being able to track data from all its in-store registers and online transactions to identify behavior anomalies (fraud, erroneous pricing, employee behavior) based on past data is an example of which important business need that AI supports?

data analysis

A _____ is a choice made from available alternatives.

decision

A choice made from among available alternatives is a ____.

decision

A graph of decisions and their possible consequences used to create a plan is known as a(n) ______.

decision tree

Graph of decisions and their possible consequences, used to create a plan to reach a goal

decision trees

People with a(n) ______ decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problems and making decisions. Which style do they use?

directive

people with this decision-making style are efficient, logical, practical, and systematic in their approach to solving problems, and they are action oriented and decisive and like to focus on facts.

directive style

A person's decision-making style is a combination of how a person perceives something as well as ______.

how they respond to it

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?

employees with ideas

Home Depot having a #D augmented reality tool that answers the question "but how will this look in my home" (takes picture of room and places virtual product) is an example of which important business need that AI supports?

engaging customers and employees

one needs to evaluate each alternative not only according to cost and quality, but also according to the following questions: is it _______? is it ___________? (possible to do) is it ultimately _____________? (good in the long run?)

ethical, feasible, effective

what is the 3rd stage in rational decision making?

evaluate alternatives and select solution

customer complaints, staff turnover, sales shortfalls, competitor innovations, low employee motivation, and poor product quality are problems that inhibit the achievement of what?

goals

Bagley's decision tree is specifically designed for use when ______.

making ethical choices

As a manager, Colin realizes that there is no single formula for making easy decisions. In reality, business decisions he has to make involve uncertainty and risk. This describes the ______ model of decision making.

nonrational

Models of decision-making style that explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum

nonrational models of decision making

a common decision-making bias; Bias in which people's subjective confidence in their decision making is greater than their objective accuracy

overconfidence bias

The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them.

prescriptive

Also called the classical model; the style of decision making that explains how managers should make decisions; it assumes that managers will make logical decisions that are the optimal means of furthering the organization's best interests

rational model of decision making

Evidence-based management attempts to introduce which factor into the decision-making process?

rationality

a common decision-making bias; The tendency to generalize from a small sample or a single event ex. people buying lottery tickets after reading/hearing about a handful of fellow citizens winning the lottery

representative bias

One type of nonrational decision-making model; managers seek alternatives until they find one that is satisfactory, not optimal

satisficing model

a common decision-making bias; The use of information readily available from memory to make judgments

the availability bias

Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?

the nonrational model

Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests?

the rational model

what is the 2nd stage in rational decision making?

think up alternative solutions both the obvious and creative

what should you do if the action or solution chosen is not working? - give it more ________ - __________ it slightly - try another ___________ -start _________

time, change, alternative, over

True or false: CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.

true

Seven Implementation Principles of Evidence-Based Management: 1. Treat your organization as an ______________ prototype (won't be ruined by dangerous new ideas or impossible to change because of employee resistance 2. No brag, just _________ (ex. casino researching which games bring in the most revenue) 3. see yourself and your organizations as _____________ do. (get blunt perspective from someone) 4. evidence-based management is not just for __________ ______________ 5. like everything else, you still need to _________ it. 6. if all else fails, _____ the spread of bad practice 7. the best diagnostic question: What happens when people ________. (forgive and move one; failure is the best teacher).

unfinished, facts, outsiders, senior executives, sell, slow, fail

Which of the following are the top challenges associated with AI? (Choose every correct answer.) 1. Cost 2. Implementation 3. Data issues 4. Enhanced decision making

1, 2, 3

Which of the following career-readiness competencies relate to evidence-based decision making? (Choose every correct answer.) 1. Information technology application 2. Computational thinking 3. Critical thinking and problem solving 4. Self-motivation 5. Social intelligence

1, 2, 3

Which of the following business needs are typically supported by artificial intelligence? (Choose every correct answer.) 1. Engaging customers and employees 2. Analyzing data 3. Interviewing potential job candidates 4. Automating business processes

1, 2, 4

Which of these are reasons for the increase in ethical violations among business leaders in the 21st century? (Choose every correct answer.) 1. Globalization allows businesses to operate in regions where ethical risks are greater. 2. Digital communications are more susceptible to hackers and whistleblowers. 3. It has become customary for business leaders to self-report unethical behavior. 4. The 24/7 news cycle places more scrutiny on unethical behavior.

1, 2, 4

Which of these assumptions are made in the rational model of decision making? (Choose every correct answer.) 1. Managers will always select the course of action that they know will most benefit the organization. 2. Managers have complete, error-free information about alternative courses of action and their consequences. 3. Managers will not be limited by time or money constraints when implementing the chosen solution. 4. Managers will be influenced by their own self-interest when choosing among alternative courses of action. 5. Managers are able to make logical decisions without prejudice or emotional blind spots.

1, 2, 5

A recent survey of U.S. companies showed that most companies use AI to do which of the following? 1. Make more effective decisions 2. Replace employees 3. Enhance current offerings 4. Optimize internal processes

1, 3, 4

Which of the following are examples of big data? (Choose every correct answer.) 1. Web-browsing data trails 2. Unrecorded customer interactions 3. Social network communications 4. Data in corporate databases 5. Surveillance data

1, 3, 4, 5

Which of these are examples of business analytics? (Choose every correct answer.) 1. Groupthink 2. Time-series forecast 3. Advertising campaigns 4. Portfolio analysis 5. Marketing plans

2, 4

Decision-making styles vary along which two dimensions? (Choose every correct answer.) 1. Defensive avoidance 2. Risk multiplication 3. Tolerance for ambiguity 4. Value orientation

3, 4

a common decision-making bias; The tendency of decision makers to be influenced by the way a situation or problem is presented to them

Framing bias

Value orientation reflects the extent to which an individual focuses on which of the following dimensions?

technical concerns or social concerns