Chapter 7

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

Which of the following is an advantage of group decision making?

Intellectual stimulation

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

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

and reach agreement to support the final decision

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

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

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. Identify the problem or opportunity. 2. Think up alternative solutions. 3. Evaluate alternatives & select a solution. 4. Implement & evaluate the solution chosen.

All the following are characteristics of group decision making except ______.

groups make decisions quickly

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 fundamental concern shared among all critics of artificial intelligence?

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

Which of the following business needs are typically supported by artificial intelligence? (Choose every correct answer.)

Automated business procsses Data analysis Engaging customers and employees

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

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

Which of the following career-readiness competencies relate to evidence-based decision making? (Choose every correct answer.)

Critical thinking and problem solving Computational thinking Information technology application

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

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

Heuristics

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

Identify best practices and turn them into standard operating procedure.

Which of the following are the top challenges associated with AI? (Choose every correct answer.)

Implementation. Data issues. Cost.

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.)

Is it ethical? Is it feasible? Is it ultimately effective?

Which of these describe how knowledge of decision-making styles affects managers' work? (Choose every correct answer.)

It allows managers to better identify personal strengths and weaknesses. It gives managers an understanding of how different people reach different conclusions.

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.

What are common results of groupthink? (Choose every correct answer.)

Loss of new ideas Failure to consider new information

Which of these assumptions are made in the rational model of decision making? (Choose every correct answer.)

Managers have complete, error-free information about alternative courses of action and their consequences. Managers will always select the course of action that they know will most benefit the organization. Managers are able to make logical decisions without prejudice or emotional blind spots.

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

Rationality

Which of the following are examples of what can function as the first stage in rational decision making by managers? (Choose every correct answer.)

Sales shortfalls Customer complaints Poor product quality

Which of the following are examples of big data? (Choose every correct answer.

Surveillance data Web-browsing data trails Social network communications Data in corporate databases

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

Technical concerns or social concerns

Which of these is another term for hindsight bias?

The "I-knew-it-all-along" effect

Which of these are reasons for the increase in ethical violations among business leaders in the 21st century? (Choose every correct answer.)

The 24/7 news cycle places more scrutiny on unethical behavior. Globalization allows businesses to operate in regions where ethical risks are greater. Digital communications are more susceptible to hackers and whistleblowers.

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

The notational model

In the ______ bias, managers use information readily available from memory to make judgments.

availability

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

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

making ethical choices

Evidence-based decision relies on ______.

observations about what actually works

You fall prey to the overconfidence bias when you ______ your knowledge or expertise in a decision situation.

overestimate

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

Heuristics are strategies that ______ the process of making decisions.

simplify

All of the following are advantages to group decision making except ______.

superiors dominating or intimidating the group

True or false: A decision tree is an analytical tool that can help managers understand the possible consequences of their decisions and to create a plan to reach a goal.

true

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 steps are recommended for establishing a process or method for making decisions? (Choose every correct answer.)

Analyze the situation. Conduct a cost-benefit analysis. Consider whether the decision is consistent with your values.

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

Behavioral

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

Successful implementation of major decisions requires which of the following? (Choose every correct answer.)

Careful planning Sensitivity to those affected by the decision

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

Carefully considers lots of information and alternatives

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

Employees with ideas

What is the third stage of the rational model of decision making?

Evaluate alternatives and select a solution

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

False

People with a conceptual decision-making style are likely to do which of the following? (Choose every correct answer.)

Find creative solutions Rely on intuition Take risks

Which models are characteristic nonrational models of decision making?

Models that describe how managers actually make decisions

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

Observe the results, then conduct a post-mortem.

A recent survey of U.S. companies showed that most companies use AI to do which of the following? (Choose every correct answer.)

Optimize internal processes Make more effective decisions Enhance current offerings

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

The process of identifying and choosing alternative courses of action

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 are three characteristics that affect decision making by a group? (Choose every correct answer.)

The size of the group. The knowledge of group members. The efficiency of the group.

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

Which of these are examples of business analytics? (Choose every correct answer.)

Time-series forecast Portfolio analysis

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

To gain competitive advantage

Decision-making styles vary along which two dimensions? (Choose every correct answer.)

Tolerance of ambiguity Value orientation

True or false: The availability bias means that your manager may give more weight to your most recent work rather than everything you have done over the course of year.

True

Which questions should you ask when developing ready-made solutions based on past experiences? (Choose every correct answer.)

What was the problem? What was the solution? What lessons can you derive from this experience?

A _____ is a choice made from available alternatives.

decision

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

People with the ______ style of decision making are action oriented and like to focus on facts. They also tend to be autocratic-type managers.

directive

The tendency of people to view events as being more predictable than they really are is referred to _ as bias.

hindsight

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

how they respond to it

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

identifying the problem

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