Chapter 7 Smartbook

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

availability

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

Carefully considers lots information and alternatives

Which of these are examples of business analytics?

Time-series forecast Portfolio analysis

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

Which of these is another term for hindsight bias?

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

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.

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

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

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

hindsight bias

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

how they respond to it

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

intuitive and largely unconscious

Heuristics are strategies that ______ the process of making decisions.

simplify

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

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

False

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

Find creative solutions Rely on intuition Take risks

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

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

representativeness

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

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

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

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

Poor product quality Sales shortfalls Customer complaints

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

The nonrational model

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

Which of the following are aspects of critical thinking?

Using qualitative and quantitative information to solve problems creatively 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 was the problem? What lessons can you derive from this experience? What was the solution?

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

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

A _____ is a choice made from available alternatives.

decision

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

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

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

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.

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

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

Decision-making styles vary along which two dimensions?

Tolerance for ambiguity Value orientation

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

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

confirmation

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

1. Is it ethical? 2. Is it feasible? 3. It is ultimately effective?

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 of alternative solutions 3. evaluate alternatives and select a solution 4. implement and evaluate the solution chosen

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

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

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

Deliberate Analytical Conscious

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

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

Employees with ideas

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

Observe the results then conduct a post-mortem.

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

Rationality

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

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

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

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

implement and evaluate the chosen solution

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

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

confirmation

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

decision tree

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

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

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

identifying the problem

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

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

1.Managers will always select the course of action that they know will most benefit the organization. 2.Managers are able to make logical decisions without prejudice or emotional blind spots. 3.Managers have complete, error-free information about alternative courses of action and their consequences.

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

Economic growth will double.

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

Evaluate alternatives and select a solution.

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

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

What are common results of groupthink?

Loss of new ideas Failure to consider new information

Successful implementation of major decisions requires which of the following?

Careful planning Sensitivity to those affected by the decision

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.

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

and reach agreement to support the final decision

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

augmented

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 the most people-oriented of the four styles?

behavorial

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

Eileen had provided the weekly inventory report to the management team every Friday for the past four months, but she wasn't able to generate the report last week because she was attending a seminar learning how to use the new inventory software. Her boss sent her an e-mail reminding her of the importance of the report and asking her to be sure and submit it every Friday. This is an example of _____.

the availability bias

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

the efficiency of the group the knowledge of group members the size of the group