Chapter 8- Management
According to the evidence-based management approach, managers must ____.
be committed to fact-based decision making
The administrative model of decision making ____.
describes how decisions are actually made
One advantage of group decision making is ____.
more acceptance of the final decision
When managers want to generate innovative and creative ideas, they will often create a(n) ____ group.
nominal
Decisions made by top managers involving strategy, such as mergers and acquisitions, are examples of ____ decisions.
nonprogrammed
Each summer, the local running club hosts a marathon and looks for sponsors to support the event. This year, they contacted the local water bottling plant. The manager of the plant can see the benefits of this event, but the company has never participated in something like this. Which type of decision needs to be made about the potential sponsorship of the local marathon?
nonprogrammed
Jinhoon owns and manages a franchise sandwich shop and pays his employees minimum wage. Recently, his employees have met to discuss how difficult it is to live on minimum wage and to ask Jinhoon to increase the wages for all workers. Which type of decision-making element must Jinhoon now respond to?
political forces
A(n) ____ decision is a decision that is relatively structured or recurs with some frequency (or both).
programmed
Decisions regarding standard organizational transactions are most likely to be ____ decisions.
programmed
Nutrimax Inc. sponsors a football championship in Oriel in August every year. The Oriel regional manager of Nutrimax sends a check to the Oriel Football Association in July of each year in order for them to prepare for the championship. The regional manager's decision about when to send the check to OFA is a(n) ____ decision.
programmed
As the most common form of decision-making groups, which of the following includes members who openly discuss, argue about, and agree on the best alternative?
team
A(n) _____ is a form of group decision making in which a group arrives at a consensus of expert opinion.
Delphi group
What can managers use to promote effective group decision making and avoid groupthink?
Insist that a group evaluate all alternatives.
Which of the following is true of interacting groups?
They can be regular work teams.
Rather than prescribing how decisions should be made, the ____ model describes how they are made.
administrative
A disadvantage of group decision making is that ____.
groupthink may occur
What is an innate belief about something without conscious consideration?
intuition
What refers to a condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates?
state of risk
Which of the following best explains what occurs at the step of selecting the best alternative when completing the rational decision-making process?
Consider all situational factors and choose the alternative that best fits the situation.
General Motors has asked industry leaders, research scientists, environmental experts, and design engineers to consider the impact of global warming on the automobile industry, particularly how it will impact fossil fuel, electric, battery, and other types of vehicles. Which type of group is General Motors using in shaping the future of their vehicles?
Delphi group
Evidence-based management practices (EBM) suggests treating the organization as an unfinished prototype, which means what?
Encourage experimentation and learning by doing.
Who was one of the first experts to recognize decisions are not always made rationally, and developed the administrative model to describe how decisions are often made?
Herbert Simon
Aisha is putting together a task force, but she is concerned that one key member may become dominant and not allow others to offer input. Unfortunately, that person is important to the ability of the group to understand the background of the problem. What can Aisha do to manage this?
Include other strong-willed people on the task force.
Which of the following statements is true about the process of decision making?
It includes putting the chosen alternative to practice.
Which of the following statements is true about the decision-making process?
It requires that the nature of a particular situation be defined.
Which of the following statements is true about the administrative model of decision making?
It suggests that managers tend to satisfice when making decisions.
____ is one of the factors that makes an alternative infeasible.
Legal barriers
Which of the following is true of nominal groups?
Members of nominal groups are brought together in a face-to-face setting.
Which of the following is an advantage of group decision making when compared to individual decision making?
More alternatives are likely to be generated.
As the head of human resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees (single, married, single parents, and older workers) on the team. Which of the following advantages will this team provide?
More alternatives can be identified and evaluated.
In which way is crowdsourcing a solution different than using the Delphi technique?
Not everyone is an expert.
The Pour House coffee shop wants to increase sales and local foot traffic. The owner has considered daily specials, loyalty programs, and expanding his menu selection. Ultimately, he decided to implement a loyalty program because it stimulates repeat business and customer loyalty. Which step has the manager of the Pour House reached in his rational decision-making process?
Step 4: Selecting the best alternative
Which of the following statements is true in the context of decision making under a state of risk?
The decision maker uses probability estimates to assess alternatives.
How do managers with a high level of risk propensity compare with their more conservative counterparts?
They are more likely to achieve big successes with their decisions and to incur greater losses.
Rico's Tools Company just acquired Coney Tools. The purchase came about because the employees in both the research and development and the production departments at Rico's Tools joined forces to lobby for the purchase of Coney Tools as opposed to other companies. Both departments wanted Coney Tools because of its state-of-the-art research and production facilities. This is an example of ____.
a coalition
Nonprogrammed decisions ____.
are less structured than programmed decisions
When using the administrative model of decision making, decision makers ____.
are limited by unconscious reflexes
Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most familiar. This is an example of ____.
bounded rationality
Lucia bought a particular brand of laptop even though it does not support the software that is required for her business. She did this because all her family members have used that same brand and like it. This is an example of how decision makers are constrained by ____.
bounded rationality
Tam is the production manager at a steel factory and needs to replace one of the processing machines. Tam decides to buy a new machine from a company that he has read reviews of in industry magazines, even though there are other companies offering a discount on machines with better functionality. Tam is constrained by ____.
bounded rationality
Which concept can be used by managers to develop a better understanding of their inherent biases and limitations?
bounded rationality
Which concept suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits?
bounded rationality
In decision making, a condition of ____ exists when a decision maker knows what the alternatives are and what conditions are associated with each alternative.
certainty
Professor Chavez needs to choose a biology textbook for her class. Both textbooks under consideration are known for the clarity and extensiveness of their content. When Chavez chooses a textbook she is making a decision in a state of ____.
certainty
When Ozlem buys new laptops for her department, with preinstalled software used by her company, she's making a decision under a condition of ____.
certainty
In the rational decision-making process, optimization means ____.
choosing the alternative with the best overall expected outcomes
The process of choosing one alternative from among a set of alternatives is called ____.
decision making
Dorian is using a new process for screening potential employees in his department, but he is unsure if it is efficient and helps recruiters find the best candidates. However, Dorian continues to require the process because it was so expensive to set up the initial system. Which of the following concepts is illustrated in the scenario?
escalation of commitment
Which is a behavioral process in which a decision maker stays with a decision even when it appears to be wrong?
escalation of commitment
William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies ____.
escalation of commitment
In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of alternatives before choosing one?
evaluating alternatives
A plant manager had taken measures to try to reduce worker turnover. For four months, they monitored the implementation of the measures. They now find that the turnover rate has been reduced by 10 percent. Which step of the rational decision-making model is illustrated in the scenario?
evaluating the results
It was recently announced that Libra Inc. settled a lawsuit for $75 million. In the context of the rational decision-making model, when executives of the company announced that the settlement proved to be "typical and fair" as compared to similar cases, they were ____.
evaluating the results of a chosen alternative
What is a commitment to finding and using the best theory and data available at the time, to make a decision?
evidence-based management
What is defined as a commitment to finding and using the best theory and data available at the time to make decisions?
evidence-based management
Which of the following disadvantages of group decisions typically occurs when the desire for cohesiveness overwhelms the goals of the group?
groupthink
According to the classical decision model, decision makers ____.
have complete information about the decision situation
After winning a large contract, Aisha needs to decide how to staff the project. She is currently calculating the costs of hiring new employees, using overtime, and adding a second shift. At which stage of the decision-making process is Aisha in?
identifying alternatives
Christof noticed that the performances of his students on class tests have been declining. While attempting to find a solution to the problem, he thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly on the tests. Which step of the rational decision-making process is Christof in?
identifying alternatives
Delta Corp. introduced a new set of policies, giving its employees more flexibility in work hours. This decision was made in response to complaints from employees about fatigue. Which step of the rational decision-making process is illustrated in the scenario?
implementing an alternative
Dajhia has assembled a task force to consider ways to respond to the threat of unionization by some hourly employees. This task force is an example of a(n) ____.
interacting team
Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using ____ in decision making.
intuition
The nominal group decision-making technique ____.
is used to generate creative and innovative ideas
A disadvantage of using interacting groups, instead of Delphi or nominal groups, to make decisions is that ____.
it might allow political processes to play too big a role
What is one of the five principles of evidence-based management (EBM) when considering recommendations?
look for risks and drawbacks
A manager who has a high level of risk propensity is likely to ____.
make decisions quickly
Bhavik needs to address overcapacity at his plant, but he wants to avoid inappropriate assumptions and common pitfalls associated with making decisions. He wants his approach to be based on logic and sound reasoning. He also expects that his strongly held belief in benchmarking will enhance the quality of his decision. Which decision-making model should Bhavik use in this situation?
rational
Eli wants to buy a red convertible, and he notices the local dealership is offering rebates. Eli decided to buy the car without comparing the model to others. Eli's decision is an example of ____.
rational
The first step in rational decision making is ____.
recognizing and defining the decision situation
What is the extent to which a decision maker is willing to gamble when making a decision?
risk propensity
Petra was looking for ways to double her plant's production capacity, and she considered acquiring the production plant of a rival company. The engineers in Petra's company advised her against it because acquiring the new plant would only increase their company's production by 15 percent. Petra's idea failed the test for ____ in the context of the rational decision-making process.
satisfactoriness
In general, while identifying alternatives, the more important the decision, ____
the more alternatives should be generated
The Delphi group technique is a group decision-making technique in which ____.
the opinions of group member are combined and averaged
What must a decision maker understand in order to make the most effective decision possible?
the situation driving the decision
Amina, the senior marketing manager, has estimated costs and has forecasted sales for the company's new product. However, there are many unknowns in both the new product development and market conditions that she cannot predict. Amina is making new product launch decisions under a condition of ____.
uncertainty
The classical decision model is a prescriptive approach, meaning that it ____.
tells managers how they should make decisions
Which of the following statements is true in the context of decision making under a condition of uncertainty?
A decision maker greatly relies on intuition, judgment, and experience.
Which of the following statements is true in the context of selecting the best alternative?
A decision maker greatly relies on intuition, judgment, and experience.
Pallavi's organization makes decisions using evidence-based management. What can Pallavi do to support a culture where facts are encouraged?
Allow people to tell the truth, even if it is unpleasant.
What is a coalition?
An informal alliance of individuals or groups formed to achieve a common goal.
Which of the following helps a manager avoid groupthink during group decision making?
Assigning one person to act as devil's advocate.
Groupthink ____.
often leads to choosing a wrong alternative
Managers are most prone to error in a condition of ____.
uncertainty
Which aspect of decision making using the administrative model better reflects subjective considerations.
behavioral
What is one major element of organizational politics that is especially relevant to decision making because of the alliance to achieve a common goal of the group?
coalitions
Tariq is determining which supplier is most likely to meet his supply needs at the most reasonable cost. As he identifies feasible alternatives, Tariq is engaging in ____.
decision making
R&D at Venus Electronics Inc. has created an innovative new device. Management now needs to decide if Venus should launch this device as its next new product. This is an example of a(n) ____ decision.
nonprogrammed
Zereth is looking for ways to increase foot traffic into her brick-and-mortar locations. She has decided to open up a small coffee shop with free Wi-Fi in her store. This is an example of which type of decision?
nonprogrammed
One of the four coffee machines at Jolanta's coffee shop has broken down three times in two weeks. Jolanta is trying to decide if the problem is a bad machine or if people are just using the machine wrong. Jolanta is currently ____.
recognizing and defining the decision situation
Managers with higher levels of risk propensity are more likely than their conservative counterparts to: ____.
rely heavily on intuition and gamble big investments on their decisions
A nonprogrammed decision ____.
requires more time and resources than programmed decisions
Mikel has just received a counteroffer from the property management company on the lease of a new office. Mikel must decide if he wants to make a counteroffer, with the potential of losing the deal, or accept the offer. The negotiator is making this decision in a condition of ____.
risk
Eli wants to buy a red convertible, and he notices the local dealership is offering rebates. Eli decided to buy the car without comparing the model to others. Eli's decision is an example of ____.
satisficing
Ramon is in a hurry to appoint a personal assistant to help him. He posts an advertisement on a job website and then picks the first person who sends in their resume. He only checks for the candidate's qualifications and does not consider their work experience. This is an example of ____.
satisficing
What is the tendency to search for alternatives only, until one is found that meets some minimum standard of sufficiency?
satisficing
In the rational decision-making model, once the alternatives have been evaluated, the next step is to ____.
select the best alternative
When decision makers do not know all the risks associated with each alternative or the likely consequences of each one, they are making decisions in a condition of ____.
uncertainty
According to the administrative model, decision makers ____.
use incomplete and imperfect information
When budget cuts were announced at the organization, Destanti considered layoffs, salary freezes, and cutting benefits of her employees to manage the new, lower budget. Because of a large project deadline, Destani did not feel she could lay off employees. Her rationale was that layoffs at this time ____.
were not feasible
