MGMT 320 chapter 6

Cassie likes to make decisions after considering many alternatives and looking at as much objective data as possible.

Analytical Style

A technique adopted from the U.S. Army, the __________ is a disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better.

after-action review

Lionel enjoys solving complex problems using rational, objective data to weigh many alternatives.

analytical style

Managers with an ___________ like to consider complex solutions based on as much data as they can gather. These individuals carefully consider alternatives and often base their decisions on objective, rational data from management control systems and other sources. They search for the best possible decision based on the information available.

analytical style

When managers engage in rigorous debate to solve a problem, one technique they might use is to __________ to ensure the group's assumptions are challenged. Another is _________ , in which the group breaks into two subgroups that work separately and then exchange proposals

appoint a devil's advocate, point-counterpoint

People who tend toward a ___________ also like to consider a broad amount of information. However, they are more socially oriented than those with an analytical style and like to talk to others about the problem and possible alternatives for solving it. Managers using a conceptual style consider many broad alternatives, rely on information from both people and systems, and like to solve problems creatively.

conceptual style

Steve likes to discuss a number of different alternatives with his team before choosing one.

conceptual style

The administrative model is

descriptive, an approach that describes how managers actually make decisions, rather than how they should make decisions according to a theoretical mode

Marcus likes to make decisions efficiently, only considering one or two alternatives.

directive style

Managers at Lenovo apply a technique called _____, which means "replaying the chessboard," reviewing every move to improve the next one.

fu pan

The tendency for decision makers to conform rather than express contrary opinions is _______ . When this occurs, managers prioritize ______ over the quality of the decision

groupthink , harmony

A devil's advocate

is a person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensus.

Point-counterpoint

is a way to encourage constructive conflict by breaking a decision-making group into two subgroups and assigns them different, often competing, responsibilities

The classical model of decision making

is based on rational economic assumptions and manager beliefs about what ideal decision making should be.

Evidence-based decision making

is founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence.

Coalition building

is the process of forming alliances among managers.

Escalating commitment

is the tendency for managers and organizations to invest time and money in a solution even when there is strong evidence that it is not appropriate.

Helena needs to decide whether she can afford to make her bikinis in two additional colors that are trending for the coming season. She knows exactly how much credit she has with suppliers but not exactly how many swimsuits will sell. This is a __________ decision. If Helena bases her decision partly on past sales data and partly on her intuition from years in the fashion industry, the ____________ model would best describe her decision-making process

nonprogrammed , administrative

Larry's company has decided to no longer lease office space and instead have all employees work from home. Larry needs to make a __________ as he figures out how the newly dispersed workforce can cost-effectively order office supplies.

nonprogrammed decision

The classical model of decision making is considered to be _______, which means it defines how a decision maker should make decisions.

normative

The behavioral style is

often the style adopted by managers having a deep concern for others as individuals. Managers using this style like to talk to people one on one, understand their feelings about the problem, and consider the effect of a given decision on them. People with a behavioral style usually are concerned with the personal development of others and may make decisions that help others achieve their goals.

A nonprogrammed decision is

one made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization.

The directive style is used by

people who prefer simple, clear-cut solutions to problems. Managers who use this style often make decisions quickly because they do not like to deal with a lot of information and may consider only one or two alternatives. People who prefer the directive style generally are efficient and rational and prefer to rely on existing rules or procedures for making decisions.

Groupthink

refers to the tendency of people in groups to suppress contrary opinions.

Aaron is a pipeline welder at the MidAmerican Energy Company. Recently, he had to make a decision about which torch to order for his job. Based on past experience, Aaron knew that if he selected a discount torch, there was a 95% chance that his manager would authorize the expenditure, but that if he selected a more expensive, brand-name torch, there was only a 50% chance that his manager would authorize the purchase. Aaron's decision about which torch to purchase is being made under conditions of _________, because:

risk, The probabilities of the decision's outcomes are known

You and your coworkers are very hungry and have decided to go out to lunch. You engage in __________ by going to the first restaurant no one objects to.

satisficing

Risk means

that a decision has clear-cut goals and good information is available, but the future outcomes associated with each alternative are subject to chance.

Certainty means

that all the information the decision maker needs is fully available.

Satisficing means

that decision makers choose the first solution alternative that satisfies minimal decision criteria. Rather than pursuing all alternatives to identify the single solution that will maximize economic returns, managers will opt for the first solution that appears to solve the problem, even if better solutions are presumed to exist.

Uncertainty means

that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete.

Bounded rationality means

that people have limits, or boundaries, on how rational they can be.

Ambiguity means

that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable

Decision making is

the process of identifying problems and opportunities and then resolving them.

Diagnosis is

the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation.

Risk propensity is

the willingness to undertake risk with the opportunity of gaining an increased payoff.

The IT manager knows she wants to improve the company's email system. However, the situation is one of ___________ because she does not know the costs and potential benefits of the various options, and she is unsure how the company will be using the email system in a few years

uncertainty

Brainstorming

uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making.

Implementation involves

using managerial, administrative, and persuasive abilities to translate the chosen alternative into action.

An opportunity exists

when managers see potential accomplishment that exceeds specified current goals.

A problem occurs

when organizational accomplishment is less than established goals.

During the diagnosis step of the decision-making process, managers might use the ______________ to uncover the root cause of a problem.

5 Whys method

You have recently been promoted, and your decisions will have a greater impact on your organization than before. Even if you try hard to make good decisions, what factors may contribute to poor outcomes? Check all that apply. Colleagues may have different opinions about how to solve the problem or even what the problem is. Information may be incomplete or contradictory, requiring some guesswork. Conditions change, so the future environment may not be the same as the current one. Correct When you need to make a decision quickly, with similar problems will allow you to do so.

A B C

Tom tends to consider the personal development of others when making decisions.

Behavioral Style

Bob is a manager at Motorola who has lost five of his employees during the last year. Now he has to make a decision about how to retain the employees on his team. Having recently taken a class on decision making, Bob decides to follow the six-step process for deciding what to do. What problem is Bob most likely to face during the evaluation and feedback step in the decision-making process? Satisficing, or choosing the first solution that works, not the best solution Neglecting to gather information on whether or not the plan was successful Considering only "tried and true" solutions without creating new possibilities Jumping to solutions before understanding the problem

B

When the administrative and political models of decision making are said to be descriptive, this means: The model is most useful for programmed decisions The model defines how people actually make decisions, under less than ideal conditions The model is best suited for highly certain conditions The model defines how people should ideally make decisions

B

Which of the following is not an assumption of the classical model of decision making? Managers determine all possible alternatives and the potential outcomes of each choice they could make. Managers will use intuition rather than rational analysis to make sound decisions when information is incomplete. Managers use logic to evaluate options and maximize the attainment of organizational goals. Managers seek to achieve agreed-upon goals and solve precisely defined problems.

B

Following are several actions managers commonly take when confronted with turnover. Which of these actions are supported by evidence? Check all that apply. When employees indicate that they are thinking about leaving the company, offer them a raise before doing anything else. Discuss employee goals and objectives with them on a regular basis. Monitor LinkedIn and other social networking sites to determine if employees are looking for work elsewhere. Increase employee salaries annually as a primary strategy for reducing turnover throughout the organization.

B C

Which of the following statements is consistent with evidence-based decision making? Check all that apply. Evidence-based decision making uses opinions and intuition to provide a rationale for decisions. Evidence-based decision making encourages questioning assumptions. Managers should make choices that support past decisions. Knowing what you don't know is as important as knowing what you do know.

B D

"I want to expand our social media presence, engaging our customers on their preferred platforms in a cost-effective manner. If I use a rational decision-making process, what can I expect the outcome to be?" "The chances are high that your decision will be biased, especially because the current problem is complex and past patterns will be an inaccurate guide." "You will make a decision that is about 80 percent accurate, which is good enough to meet your objectives given the time and information at your disposal." "You will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization." "Your decision will be based primarily on your preconceptions about social media, what you learn about social media as you begin your research, and Mi Ola's past experiences engaging with customers online."

C

What could Mike do to overcome this bias? Listen to the reference that stated Dan was late to work and rude and do not hire Dan Ask Dan to come in for a second interview to get a better impression of how he would perform in this job Ask Dan for additional references and follow up with those employers to reach a better conclusion about Dan's previous work performance Think back to his initial impressions of employees he has previously hired and compare that to how well they perform now

C

quasirationality

Combining intuitive and analytical thought.

Kyle prefers to base decisions on lots of data, both objective data from information systems and qualitative data from people.

Conceptual Style

Mike interviewed Dan for a sales clerk position, and Mike really liked Dan. They got along great in the interview, and they are both fans of the Green Bay Packers football team. Mike wanted to hire Dan on the spot, but per company policy, he checked Dan's references. One of Dan's previous employers said he was constantly late to work and was sometimes rude to customers. However, another previous manager said Dan only worked for her for six weeks but was satisfactory during that time. Mike decided that the second manager's opinion was worth more than the first one's and hired Dan. Overconfidence Justifying past decisions Perpetuating the status quo Seeing what you want to see

D

decision styles

Differences among people with respect to how they perceive problems and make choices

A decision is

a choice made from available alternatives.

Intuition represents

a quick apprehension of a decision situation based on past experience but without conscious thought. Intuitive decision making is not arbitrary or irrational because it is based on years of practice and hands-on experience.