MGT 300: Chapter 7

What strategies are effective for achieving consensus in a group?

Use active listening. and Involve as many group members as possible.

Which of the following are aspects of critical thinking?

Using qualitative and quantitative information to solve problems creatively and Using reason to analyze situations, make decisions, and solve problems

Which questions should you ask when developing ready-made solutions based on past experiences?

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

The rise of artificial intelligence in the 21st century is expected to ______ the need for human decision makers.

enhance

"Throwing good money after bad" characterizes the _____ bias.

escalation of commitment

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

hindsight

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

identifying the problem

Making a choice without the use of conscious thought or logical inference is known as using _____. (Use only one word.)

intuition

Sam is an experienced firefighter who must act quickly and decisively to do his job. He frequently relies on his ______ to make decisions when there isn't time for rational analysis.

intuition

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

Carefully considers lots information and alternatives

An AI application that learns from human inputs in order to assist humans in making better decisions is known as _____ intelligence.

augmented

Goal _____ occurs when the primary goal is subsumed by a secondary goal.

displacement

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

how they respond to it

Brainwriting is the process of brainstorming by using _____.

a computer network

What is the fundamental concern shared among all critics of artificial intelligence?

Artificial intelligence has the capacity to exceed human capabilities, leaving us under its control.

"Don't tell me the truth; just tell me what I want to hear" is an example of the _______ bias.

confirmation

The _____ bias occurs when people seek data to support their point of view and disregard information that does not support it.

confirmation

Conducting a(n) _____ involves analyzing the underlying causes of a problem or opportunity.

diagnosis

A data-mining technique used to predict future behavior and anticipate the consequences of change is known as _____ modeling.

predictive

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

True

The results of rational decision making should be evaluated because things may occur that were not foreseen, a "law" in economics known as the Law of _____ Consequences.

Unintended

The ______ bias is demonstrated when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

sunk cost

Artificial intelligence lacks which key feature of human intelligence?

Common sense

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

What are the four general styles of decision making associated with a person's value orientation and tolerance for ambiguity?

Conceptual, Analytical, Behavioral and Directive

Tyler has never gotten along with his employee Marcus. Although Marcus has been a top performer during his three years with the company, Tyler tends to fixate on the one quarter when Marcus performed poorly. Tyler uses that quarter as an example of Marcus being a "poor fit" with the company. What type of bias is this an example of?

Confirmation

Which of the following are potential threats associated with artificial intelligence?

Generating false but convincing images and sounds, Expanding surveillance in authoritarian ways and Producing automated weapons that could end up in the wrong hands

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

Heuristics

What is the name for an intuitive decision based on a person's years of experience with similar situations?

Holistic hunch

In a study done at Babson College's Working Knowledge Research Center, researchers identified what three key attributes of organizations committed to quantitative, fact-based analysis?

Multiple applications, Use of modeling and Support from top management

Which of these are examples of business analytics?

Portfolio analysis and Time-series forecast

After a major product launch, managers at McLaughlin Industries meet to evaluate outcomes and how those outcomes differ from what the group expected. This approach is part of which group problem-solving technique?

Project post-mortem

A _____ is a choice made from available alternatives.

decision

A graph of decisions and their possible consequences used to create a plan is known as a(n) ______.

decision tree

One obstacle to making evidence-based decisions is that stories are often more ______ than evidence.

persuasive

Heuristics are strategies that ______ the process of making decisions.

simplify

What are three characteristics that affect decision making by a group?

the size of the group, the knowledge of group members and the efficiency of the group

Which of the following are ways in which artificial intelligence is expected to improve the interactions between businesses and employees or consumers?

Eliminating human bias from human resources decisions, Reducing work demands and freeing up more time for family or leisure and Tailoring products to the personal needs and preferences of individual consumers

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

Evaluate alternatives and select a solution.

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

Which of the following is the best diagnostic question for an organization practicing evidence-based decision according to Jeffrey Pfeffer and Robert Sutton?

What happens when people fail?

Which steps are recommended for establishing a process or method for making decisions?

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

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.

Which of these are examples of the "curse of knowledge"?

Professional bankers taking excessive risks and Engineers designing remotes with too many buttons

Which of the following are examples of what can function as the first stage in rational decision making by managers?

Sales shortfalls, Poor product quality, and Customer complaints

When a few members of a group publicly oppose the beliefs, ideas, policies or procedures assumed by the majority of the group, it is referred to as _____.

minority dissent

In the devil's advocacy technique, the group assigns one person to do which of the following?

Uncover all possible objections to a plan or idea.

According to Ed Catmull of Pixar and Disney Animation, what is the absolute minimum that should be accomplished in a project post-mortem?

Write down five things you would do again and five things you wouldn't.

Successful implementation of major decisions requires which of the following?

Careful planning and Sensitivity to those affected by the decision

During meetings, Stacy likes to challenge new ideas, even those that she agrees with, in order to make sure that her team has considered every angle. What role is Stacy playing?

Devil's advocate

As businesses continue to incorporate artificial intelligence into the decision-making process, what will become even more important for humans to do?

Display good judgment

Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect?

Economic growth will double.

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

Employees with ideas

True or false: Value orientation reflects the extent to which a person is unethical.

False

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making.

Is it ultimately effective?, Is it feasible?, and Is it ethical?

Which of these describe how knowledge of decision-making styles affects managers' work?

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

Which examples illustrate prosocial lying?

Martin inflates the sales figures on a quarterly report to make his boss look better. and Jody approves a loan for a couple even though they are unlikely to be able to afford their payments.

Which of the following are disadvantages associated with group-aided decision making?

The group may fall into groupthink., A few people may influence or intimidate the rest of the group. and Group members may engage in satisficing to avoid prolonged debate.

Sam gave employees a 5% raise last year and expects to give the same percentage raise this year, even though it will push his company's salaries above what is normally paid in the industry. This is an example of the _____ bias.

anchoring and adjustment

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

and reach agreement to support the final decision

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

Ramona is bidding on an auction item against several other people. She knows the bid is already too high, but she doesn't want to give up, so she continues bidding. This is an example of the _____ bias.

escalation of commitment

When decision makers increase their commitment to a project despite negative information about it, they are experiencing which type of bias?

escalation of commitment

When using the ethical decision tree, management should consider whether a proposed action is both legal and _____.

ethical

When rivals are focused on winning an argument rather than the goal of a meeting and the topics of the meeting are not discussed, it is an example of _____.

goal displacement

In the fourth stage of rational decision making, managers will _____.

implement and evaluate the chosen solution

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

intellectual stimulation

The _______ bias reflects our tendency to generalize from a small sample or single event.

representativeness

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

According to psychologist Daniel Kahneman, System 1 thinking is _____.

intuitive and largely unconscious

As expertise grows, experts can be less able to see their products from an outsider's view and may make decisions that are no longer intuitive to users. This process has been called the curse of _____.

knowledge

All of the following are advantages to group decision making EXCEPT _____.

superiors can dominate or intimidate the group

The process of examining large amounts of data in a variety of types to uncover hidden patterns, unknown correlations, and other useful information is known as _____.

Big Data analytics

True or false: The increased focus on business ethics that followed the business scandals of the early 2000s, including the Enron collapse and civilian contractor abuses in Iraq, also lead to the growing use of ethics officers.

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

Samantha had never traveled to New York City before, but she had been on a recent business trip to Houston. When she learned that the hotel room she wanted in New York City cost $300 per night, she was shocked, because she thought the hotel rooms would be priced similarly to those in Houston. This is an example of the _____ bias.

anchoring and adjustment

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

availability

Someone who is trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas, is called a(n) _____.

ethics officer

Situations that present possibilities for exceeding existing goals are known as _____.

opportunities

Which two of these options are important in combating groupthink?

allowing other perspectives and allowing criticism

In a recent team meeting, Terry agreed to vote in favor of rearranging the office so long as his desk would be near a window. Which negative method of achieving consensus does this illustrate?

Log rolling

An individual with a high tolerance for ambiguity would most likely be attracted to which style of decision making?

Analytical

According to psychologist Daniel Kahneman, which of the following characteristics describe System 2 thinking?

Analytical, Deliberate and Conscious

What type of bias refers to the tendency to make decisions based on an initial figure that may or may not be in line with market realities?

Anchoring and adjustment

What is the main difference between critical thinking and the moment-to-moment thinking that we use in our everyday lives?

Critical thinking requires deliberate mental processes, whereas moment-to-moment thinking is automatic and prone to bias.

During which of the following is positive team spirit and striving for unanimity most likely to lead to poor decision making?

Groupthink

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

Which strategies are recommended for conducting a successful project post-mortem?

Have an agenda., Encourage honest feedback from all participants. and Prepare and circulate a written report at the end of the meeting.

One method of reducing the escalation of commitment is to measure performance against which metric?

Minimum performance targets

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

Rationality

"Close enough is good enough" best characterizes which model of decision making?

Satisficing

Which model of decision making emphasizes choosing the first solution that meets the criteria, rather than the optimal choice?

Satisficing

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

What is the goal of conducting a project post-mortem?

To determine what could be done better and incorporate those insights into future decisions

Which personality dimension indicates the extent to which a person has a high need for structure or control in his or her life?

Tolerance for ambiguity

Decision-making styles vary along which two dimensions?

Tolerance for ambiguity and Value orientation

Artificial intelligence aids human decision making by exhibiting superior performance in which of the following activities?

Building and analyzing models and simulations to make predictions

In what way is artificial intelligence expected to make business and personal data safer?

By monitoring and deflecting the activities of hackers

By 2035, artificial intelligence is expected to have what effect on labor productivity?

It will increase labor productivity by as much as 40%.

Turbine Manufacturing uses artificial intelligence in its factories to automate basic tasks, freeing human employees to perform more high-level finishing and quality assurance tasks. Which area of artificial intelligence does this illustrate?

Assisted intelligence

Andi has recently joined her company's new product development team. She has a number of innovative ideas, but because the group is so unified in its support for more traditional ideas, Andi decides to keep her ideas to herself and go along the group. Which symptom of groupthink does this situation illustrate?

Belief in "the wisdom of crowds"

Stores of data that are so large or complex that it is difficult to process them using traditional data base management applications are known as ______.

Big Data

In order to optimize the newest promotion for a Hollywood movie company, Carli analyzes large amounts of data from social media, industry forecasts, and customer records to find buying patterns within her customer base. What is Carli using to make her decision?

Big Data analytics

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

Observe the results then conduct a post-mortem.

In general, managers are most likely to tolerate unethical behavior among which of the following groups of employees?

High-performing salespeople

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

Identify best practices and turn them into standard operating procedure.

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.

Identify the problem or opportunity., Think of alternative solutions., Evaluate alternatives and select a solution., and Implement and evaluate the solution chosen.

Which of the following questions is NOT one of the questions used in Bagley's ethical decision tree?

Is the proposed action a benefit to our competitors?

Identify the drawbacks to using intuition in the decision-making process. Check all that apply.

It is subject to the same decision-making biases as rational decision making. and It can be difficult to convince others about the validity of your hunch.

Choose a key benefit of using intuition in decision making.

It speeds up the process when deadlines are tight.

Which of these characteristics are associated with someone with a high tolerance for ambiguity?

Lacking a strong need for control and Thriving in uncertain situations

What are common results of groupthink?

Loss of new ideas and Failure to consider new information

Which techniques are effective ways to reduce the escalation of commitment?

Make decision makers aware of the costs of persistence., Set minimum performance targets and compare performance results. and Rotate managers in key positions during a project.

Which of these assumptions are made in the rational model of decision making?

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., and Managers are able to make logical decisions without prejudice or emotional blind spots.

Which models are characteristic nonrational models of decision making?

Models that describe how managers actually make decisions

People with a conceptual decision-making style are likely to do which of the following?

Take risks, Rely on intuition and Find creative solutions

Which of these are reasons for the increase in ethical violations among business leaders in the 21st century?

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

The managers of Coastal Imports are having a meeting to decide whether the company should raise prices on its best-selling products. During the meeting, the team engages in a debate in which one side argues that the company should lower its prices while the other side argues in favor of raising them. Which problem-solving technique is the group using?

The dialectic method

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

According to Bagley, what should businesspeople use as a guide for making good ethical decisions?

Their own sense of right and wrong

Select the reasons it can be difficult to make evidence based decisions.

There is too much evidence., People are trying to mislead you. and There is not enough good evidence.

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.

In order to prevent groupthink, it is important to do which of the following?

allow criticism

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

The concept that suggests that the ability of decision makers to be rational is limited by constraints such as complexity, skills, time and money is known as _____ rationality.

bounded

Tonya decided to purchase a piece of equipment from a domestic company instead of an overseas company despite the domestic company's higher cost and lower quality. Her decision was based on uncertainty that the foreign shipment would meet her production deadline. According to Herbert Simon, Tonya was feeling the effects of _____.

bounded rationality

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

Electronic brainstorming, also called _____, is a technique used to help members of a group come together over a computer network to generate ideas and alternatives for solving problems.

brainwriting

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

Minority _____ occurs when a minority in a group publicly opposes the beliefs, attitudes, ideas, procedures or policies assumed by the majority of the group.

dissent

Ronnie's company uses large numbers of snow blowers. After several failed, Ronnie determined that the failures were due to defective motors and decided that the company would use a different vendor for future purchases. In this situation, Ronnie is making a(n) _____.

diagnosis

In the ______ method, groups engage in a structured debate between opposing positions (thesis and antithesis) with the aim of reaching a consensus.

dialectic

Bob was unsure how his boss was going to react to his proposal, so he was careful to put an upbeat "spin" on the situation to emphasize the positive aspects rather than the negative aspects. Bob's method of presenting the situation demonstrates the ___ bias.

framing

The tendency of decision makers to be influenced by the way a situation or problem is presented to them is referred to as the _____ bias.

framing

All the following are characteristics of group decision-making EXCEPT _____.

groups make decisions quickly

Analytics are best used to help companies track _____ applications.

multiple

As a manager, Colin realizes that there is no single formula for making easy decisions. In reality, business decisions he has to make involve uncertainty and risk. This describes the _____ model of decision making.

nonrational

Evidence-based decision relies on ______.

observations about what actually works

Ryan learns that distribution problems caused a competitor's sales to fall in his region. He decides to take advantage of the situation by adding a salesperson to capture some of the competitor's lost business. Ryan is demonstrating how a(n) ______ affects decision making.

opportunity

The _____ bias occurs when people's positive feelings about their own decision-making ability is greater than their objective accuracy.

overconfidence

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

overestimate

In order to develop the best customer base it can, Harrison's Gourmet Foods sends out different types of promotional items to see which one garners the best response in terms of customers who will buy once and come back to order again. The information Harrison's receives provides the basis for _____ modeling.

predictive

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

What are symptoms of groupthink?

rationalization, an illusion of unanimity and a sense of invulnerability

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

A manager that hires all applicants that have graduated from a certain college because a particularly good employee came from that same college is an example of _____.

representativeness bias

You go to the movie theater to see the latest release by your favorite actor. You quickly realize the movie is not very good, but instead of walking out, you stay to watch the rest of the movie, figuring that you've already spent $9.50 for a movie ticket and $6 for popcorn. This is an example of the _______ bias.

sunk-cost

Research shows that one of the key characteristics of companies that have successfully implemented analytics into the decision-making process, is support from ______.

top management

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

Behavioral

For who of the following would Big Data analytics be the most useful?

A market researcher who is studying consumer behavior

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

When one of Serena's employees raises the concern that some of the bakery's products may have been contaminated during a cleaning product spill, Serena is overcome with a feeling of worry that customers could become ill if they consume her pastries. Based on these feelings, Serena makes a snap decision to close the store for several hours to allow time for baking a new batch of pastries. Which type of intuition does this represent?

Automated experience

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

The nonrational model

Which of these are part of the seven implementation principles of evidence-based decision making?

Treat your organization as an unfinished prototype., Like everything else, you still have to sell it. and If all else fails, slow the spread of bad practice.

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

When are directors, managers, and employees most likely to engage in unethical behavior?

When they feel compelled to put company interests ahead of their own sense of right and wrong

What are appropriate actions for a manager to take if a decision is not working as intended?

Try another alternative., Start over., Change it slightly. and Give it more time.

Which are examples of the application of Big Data analytics?

Using information about current employees to sort through large volumes of job applications, Reviewing social media posts to predict the revenue a new movie will generate and Studying nationwide medical information to inform health policy decisions

Which of the following approaches to using analytics is most likely to create a competitive advantage?

Using multiple applications to support multiple parts of the business

Which of the following are examples of Big Data?

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

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

making ethical choices