OB Exam 2 Chapter 8

Which of the following statements is true about escalation of commitment? a. It is also known as the sunk cost fallacy. b. It outlines how a group escalates into a cycle of generate, discuss, and vote. c. It describes how people are quick to change incorrect decisions. d. It describes the tendency for a group's average post-discussion attitudes to be more extreme than its average pre-discussion attitudes.

a. It is also known as the sunk cost fallacy.

Which of the following is NOT true regarding the difference between decision making and problem solving? a. When solving a problem, you must choose from among various alternatives. b. When solving a problem, you must find the answer to a question. c. When making a decision, you must evaluate various outcomes in terms of a goal. d. When making a decision, you must choose from among various alternatives.

a. When solving a problem, you must choose from among various alternatives.

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? a. condition of certainty b. condition of risk c. condition of uncertainty d. condition of suboptimizing

a. condition of certainty

Nonprogrammed decisions require managers to use good judgment and __________. a. creativity b. decision rules c. procedures d. clear and specific goals

a. creativity

Which term refers to the ability of an individual to generate new ideas? a. creativity b. empowerment c. contingent thinking d. decision making

a. creativity

Which of the following identifies post-decision dissonance? a. doubt about a choice that has been made b. staying with a decision even when it appears wrong c. more extreme post-discussion attitudes d. an innate belief about something without conscious consideration

a. doubt about a choice that has been made

Divergent thinking is a skill that allows people to see __________ situations, phenomena, or events. a. a meaningful subset of information about b. differences among c. similarities among d. the limits and benefits of

b. differences among

According to prospect theory, people are more strongly motivated by __________ than by __________. a. personal gains, ethics b. potential losses, potential gains c. ethics, personal gains d. potential gains, potential losses

b. potential losses, potential gains

What is the goal of brainstorming? a. gather judgments from noted experts to help develop forecasts b. produce new ideas and solutions by stimulating group members' creativity c. identify "mindguards" who can protect the group from adverse information d. provide the resolution to a problem or a decision

b. produce new ideas and solutions by stimulating group members' creativity

A contingency plan specifies what will be done if __________. a. there is post-decision dissonance b. the primary plan is disrupted c. the primary plan is successful d. it is necessary to satisfice

b. the primary plan is disrupted

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? a. preparation b. insight c. incubation d. verification

c. incubation

The third step in the rational decision-making approach is to __________. a. state the situational goal b. generate alternatives c. identify the problem d. determine the decision type

d. determine the decision type

The Delphi technique is a method that allows people to __________. a. analyze the benefits of situations, phenomena, or events b. see differences among situations, phenomena, or events c. generate ideas and then discuss them and vote until reaching consensus d. systematically gather the judgments of experts to develop forecasts

d. systematically gather the judgments of experts to develop forecasts