chapter 7 exam
The rational model of decision making is also called the ____ model. logical analytical focused decision classical
classical The rational model of decision making is also called the classical model.
Goal displacement, satisficing, and groupthink are ____. disadvantages of group decision making a normal aspect of all groups disadvantages of individual decision making advantages of group decision making problems with synergy
disadvantages of group decision making Disadvantages of group decision making include (1) groupthink, (2) satisficing, and (3) goal displacement.
ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional database management systems cannot handle its customer needs. Therefore, it purchased very sophisticated analysis software and supercomputing-level hardware. For the company's work with hospitals and university medical schools, ABC has been noted in publications as "real pioneers for innovation and productivity." This vast amount of data is known as ____. super data cyber-age databases mega IT Big Data new age computing
Big Data Big Data refers to stores of data so vast that conventional database management systems cannot handle them and so very sophisticated analysis software and supercomputing-level hardware are required. Attracting a lot of attention in science, business, medicine, and technology, the concept of big data has been dubbed "the next frontier for innovation, competition, and productivity."
In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____ Is it feasible, effective, and efficient? Is it feasible and profitable? Is it efficient and how will it affect our marketing strategy? Is it ethical and will it hurt diversity? Is it ethical, feasible, and effective?
Is it ethical, feasible, and effective? In the third step of rational decision making (evaluating alternatives and selecting a solution), you need to evaluate each alternative not only according to cost and quality but also according to these questions: (1) Is it ethical? (2) Is it feasible? (3) Is it effective?
Doug, a new manager, commented to a friend, "I am excited about different aspects of my new job. The company computers have entered the field of decision making. The network not only collects information more quickly, but the system also reduces the roadblocks when I need a group consensus." Doug is referring to _____. the Delphi technique brainwriting a computer-aided decision-making system collaborative management brainstorming
a computer-aided decision-making system As in nearly every other aspect of business life, computers have entered the area of decision making, where they are useful not only in collecting information more quickly but also in reducing roadblocks to group consensus.
A decision tree is ____. a graph of decisions and their possible consequences the hierarchy that must be followed when getting decisions approved a structure of problem-solving ideas, with its roots based on the organization's mission an organization's decision network a location used by Chinese philosopher Confucius in times of intense pressure
a graph of decisions and their possible consequences A decision tree is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal. Decision trees are used to aid in making decisions.
Dave is a salesperson who takes a long time to make decisions. He loves sales because he responds well to the pressure he faces in the many new or uncertain situations as a salesperson. Like most successful salespeople, he is high in his tolerance for ambiguity. Dave represents a person with a(n) _____ style. conceptual behavioral analytical ambiguous directive
analytical A person with an analytical style has a much higher tolerance for ambiguity than someone with a directive style, and tends to focus on tasks and technical concerns in the workplace. People with this style like to consider more information and alternatives than those following the directive style. Analytic individuals are careful decision makers who take longer to make decisions but who also respond well to new or uncertain situations.
Style Mart uses time-series forecasts, such as past holiday sales and the strength of store sales this year to predict future sales based on patterns of historical data. This is an application of ___. decisions by trends the synergy trend focused trend Big Data analytics
analytics Analytics, or business analytics, is the term used for sophisticated forms of business data analysis. In one example of analytics in gambling, data-mining software was used to analyze vast amounts of casino customer data to target profitable patrons.
The Delphi technique is a group process that uses physically dispersed experts who fill out questionnaires to ____. generate sales form a diversity plan develop a synergy agenda anonymously generate ideas cut costs and increase efficiency
anonymously generate ideas The Delphi technique is a group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect averaged to achieve a consensus of expert opinion.
When Dave, the sales manager, is deciding on who will train the new sales trainee, he tries not to look at just the recent sales numbers but also checks past sales reports to determine who is the most productive. This way he is not affected by the ______ bias. escalation of commitment adjustment availability sunk-cost representativeness
availability Availability bias comes from managers using information readily available from memory to make judgments. Dave is reviewing past sales reports, not relying on his memory, to avoid availability bias.
Readily available information may not present a complete picture of a situation due to ____. anchoring and adjustment bias information bias the representativeness effect confirmation bias availability bias
availability bias Availability bias—managers use information readily available from memory to make judgments. Managers tend to give more weight to more recent behavior. This is because of the availability bias, whereby managers use information readily available from memory to make judgments.
Mandy, a server in a popular family restaurant, is the most popular employee with both customers and employees, and as a result, she usually receives the most tips. She is always ready to lend a hand when asked, and with her warm personality and supportive nature, people confide in her. Mandy does have a problem telling people no, and has a tendency to avoid conflict, concerned about hurting others or getting people mad. Mandy represents a person with a(n) _____ style. behavioral analytical directive conceptual ambiguous
behavioral People with a behavioral style have a low tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. The behavioral style is the most people oriented of the four styles. People with this style work well with others and enjoy social interactions in which opinions are openly exchanged. Behavioral types are supportive, receptive to suggestions, warm, and prefer verbal to written information. Although they like to hold meetings, people with this style have a tendency to avoid conflict and to be concerned about others. This can lead behavioral types to adopt a wishy-washy approach to decision making and to have a hard time saying no.
Alex is the R&D manager with Digital Copier. The company is having a problem with one of its most popular copiers jamming. The vice president of marketing told Alex that "we need to quickly discover how to make this a desirable situation. You need to determine the underlying cause of the problem and perhaps even make improvements to the copier." This is an example of ____. synergy feasibility analytics diagnosis MBO
diagnosis Whether you're confronted with a problem or an opportunity in the first stage of the model, the decision you're called on to make is how to make improvements, or how to change conditions from the present to the desirable. This is a matter of diagnosis, which is analyzing the underlying causes.
Doug is using rational decision making, and the chosen alternative that was implemented does not appear to be working. To correct the situation, the possibilities Doug should consider include _____. giving it more time or not changing anything giving it more time, changing it slightly, trying another alternative, or starting over doing nothing or starting over giving it more time, cutting costs, or increasing organization synergy doing nothing
giving it more time, changing it slightly, trying another alternative, or starting over Some possibilities to try using rational decision making if the action is not working include giving it more time, changing it slightly, trying another alternative, or starting over.
Regarding decision making, research has found that ____. neither individuals acting alone nor groups make better-quality decisions groups tend to be less productive than the best individuals working on projects groups make better decisions than most individuals acting alone individuals acting alone make better decisions than groups group decisions seldom are of the quality of individual decisions
groups make better decisions than most individuals acting alone Although groups don't make as high-quality decisions as the best individual acting alone, research suggests that groups make better decisions than most individuals acting alone.
Greg, Donna, and Paul are on the five-member Benefits Task Force that is researching options for the new benefits package. Over lunch, Greg, Donna, and Paul decided that adding Choice Health Club is a good idea, and that they plan on voting to agree to add it without ever researching and accurately assessing the decision. This is an example of ____. groupthink group marketing the Delphi technique goal displacement heuristics
groupthink Groupthink occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation. Here the positive team spirit of the group actually works against sound judgment.
How high priority is this situation? How believable is the information about the situation? How quickly must I act on the information about the situation? These are three questions concerning ways to evaluate _____. analytics, heuristics, and credibility outcomes, credibility, and ethics importance, credibility, and urgency profitability, reliability, and efficiency priorities, reliability, and service
importance, credibility, and urgency Three ways to help you decide whether to decide are to evaluate the following: (1) Importance: "How high priority is this situation?" (2) Credibility: "How believable is the information about the situation?" (3) Urgency: "How quickly must I act on the information about the situation?"
Sal has been in the landscaping business for over 40 years, and when Donovan, his business partner, suggested adding snow removal as an extra service, Sal responded with "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successfully and not." Sal's response to Donovan is known as _____. intuition a knowledge dilemma a knee-jerk reaction unbounded rationality a business reaction
intuition Intuition is making a choice without the use of conscious thought or logical inference. It may be based on expertise or feelings.
Patricia is the owner of a floral shop. A successful global candle company approached her about selling its products in her shop. Patricia knows this product and company can help her exceed her existing goals. This defines a(n) ____. diagnosis opportunity synergy problem ethical dilemma
opportunity Opportunities are situations that present possibilities for exceeding existing goals.
A data-mining technique used to predict future behavior and anticipate the consequences of change is known as ___. the decision tree data digging predictive modeling decisions by trends GIGO
predictive modeling Predictive modeling is a data-mining technique used to predict future behavior and anticipate the consequences of change. Companies such as Capital One look well beyond basic statistics, using data mining and predictive modeling to identify potential and most profitable customers. Thus, Capital One conducts more than 30,000 experiments a year, with different interest rates, incentives, direct-mail packaging, and other variables to evaluate which customers are most apt to sign up for credit cards and will pay back their debt.
When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false. This is known as ____. prior-hypothesis bias narrow-minded perception tunnel vision bias the curse of knowledge single-vision stereotyping
prior-hypothesis bias When confronted with a choice, decision makers with strong prior beliefs tend to make their decision based on their beliefs, even if evidence shows those beliefs are wrong.
Difficulties that inhibit the achievement of goals are known as _____. synergies problems alternatives values objectives
problems Difficulties that inhibit the achievement of goals are known as problems.
Chad and his partner, John, have decided to update their computer network, although they have no expertise in this area. During a meeting with John, Chad commented that "Our decision is limited by numerous constraints, such as our understanding of the complexity of technology, time and money, imperfect information, and our conflicting goals." These limitations are hindrances to _____. satisficing intuitive decision making rational decision making nonrational decisions MBO
rational decision making The ability of decision makers to be rational is limited by numerous constraints, such as complexity, time and money, imperfect or too much information, conflicting goals, and their cognitive capacity, values, skills, habits, and unconscious reflexes (see Figure 7.2).
Paula, the controller of Tasty Pizza, is purchasing several new delivery vehicles. Paula has numerous work responsibilities, so she has limited time to shop for cars. Because of the time constraints, she cannot make an extensive search for the best alternative but instead needs to look for cars until she finds one that is satisfactory. Paula is following the _____ model. limited focus satisficing limited scope rational dilemma
satisficing Because of constraints (here, a time constraint), managers don't make an exhaustive search for the best alternative. Instead, they follow the satisficing model in which managers seek alternatives until they find one that is satisfactory, not optimal.
Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that with all the money already spent on the project, it is too costly to simply abandon it. This is known as ______. a training trap a catch-22 effect confirmation bias blind bias sunk-cost bias
sunk-cost bias The sunk-cost bias, or sunk-cost fallacy, is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it. Most people have an aversion to "wasting" money. Especially if large sums have already been spent, they may continue to push on with an iffy-looking project to justify the money already sunk into it.