MGT Quiz 5

Going with your gut, or intuition, is using conscious thoughts or logical inference to make a choice.

false

Groupthink occurs when group members strive to disagree simply due to issues related to either not believing in the group leader or personal differences.

false

In deciding to decide, a manager agrees that he or she will first research the problem before taking any further steps.

false

Nonrational models of decision making assume that managers have complete information and are able to make the best decision for the organization, describing how managers ought to make decisions. It doesn't describe how managers actually make decisions.

false

Satisficing is a weak method of decision making because the advantages gained by just making a quick decision to have an answer and not delaying a decision until all information is in and all alternatives are weighed, usually results in major problems.

false

The larger and more diverse the group, the higher the quality of the decision.

false

The rational model of decision making is also called the logical model.

false

The predisposition in which people's subjective confidence in their decision making is greater than their objective accuracy is ____.

overconfidence bias

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

Decision making is the process of identifying and choosing alternative courses of action.

true

One management expert advises that to achieve a consensus, groups should use active listening skills, involving as many members as possible.

true

Psychologist Daniel Kahneman describes two kinds of thinking: System 1, which is intuitive and largely unconscious, and System 2, which is analytical and conscious.

true

As a manager evaluates alternative solutions to a problem, that is the time to identify opportunities.

false

The steps in the rational decision-making process are (1) identify the problem or opportunity, (2) think up alternative solutions, (3) evaluate the solution chosen, (4) evaluate alternatives and select a solution, and (5) implement the solution chosen.

false

When evaluating the alternatives of a decision, people need to base decisions strictly on cost, quality and feasibility.

false

When the alternative chosen in a decision does not look like it is working, do not change things. You should always give it more time to work correctly.

false

With groups, a consensus is not usually required with decisions.

false

Regarding decision making, research has found that ____.

groups make better decisions than most individuals acting alone

When it comes to decision making, it is accurate to say that groups _____.

have higher decision-making accuracy when group members know a good deal about the relevant issues

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

hindsight bias

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 _____.

importance, credibility, and urgency

Difficulties that inhibit the achievement of goals are known as _____.

problems

With defensive avoidance, a manager can't find a good solution and follows by ____.

procrastinating, passing the buck, or denying the risk of any negative consequences

The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ____.

rational decision-making model

Says one expert in decision making, consensus is reached "when all members can say they either agree with the decision or had their 'day in court' and were unable to convince the others of their viewpoint. In the final analysis, everyone agrees to support the outcome."

true

Readily available information may not present a complete picture of a situation due to ____.

availability bias

Satisficing is the tendency of ____.

a group to settle on a decision that is "good enough"

The Delphi technique is a group process that uses physically dispersed experts who fill out questionnaires to ____.

anonymously generate ideas

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____.

bounded rationality

A technique used to help groups generate multiple ideas and alternatives for solving problems is known as _____.

brainstorming

The rational model of decision making is also called the ____ model.

classical

A choice made from among available alternatives is a ____.

decision

The prospect theory suggests that ____.

decision makers find the notion of an actual loss more painful than giving up the possibility of a gain

A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future is known as a(n) _____.

decision support system

Goal displacement, satisficing, and groupthink are ____.

disadvantages of group decision making

A benefit of the intuition model for making decisions is that it can slow decisions, which is useful when decisions involve many details.

false

A management expert suggests that to reach a consensus, groups should try to achieve consensus by putting questions to a vote.

false

Some engineers design electronic products, such as DVD remote controls, with so many buttons that these devices are ultimately useful only to other engineers. As one writer noted, "People who design products are experts cursed by their knowledge, and they can't imagine what it's like to be as ignorant as the rest of us." This is known as the curse of knowledge.

true

The basic reason female investors make trades much less often than men is that women do a lot more research, and tend to base their investment decisions on considerations other than just numbers.

true

The confirmation bias is when people seek information to support their point of view and discount data that do not.

true

The rational model assumes that managers have complete information, and they are able to make an unemotional analysis, and make the best decision for the organization.

true

Two disadvantages that can occur with group-aided decision making is that either a few people dominate or satisficing occurs.

true

Utilizing a group to make a decision has the advantages of having a greater pool of knowledge, gaining different perspectives, providing intellectual stimulation, having a better understanding of decision rationale, and having a deeper commitment to the decision.

true

When confronted with a problem, the decision to be made is how to make improvements. This is known as diagnosis or analyzing the underlying causes.

true

With an escalation of commitment bias, decision makers increase their commitment to a project despite negative information about it.

true

With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal.

true