MANA3335 MindTap Learn It: Chapter 04: Managing Decision Making

What is intuition?

*A belief that is based on a person's unconscious application of experience {Intuition is a belief that is not based on perceptible evidence. Instead, it is based on the individual's internal cognitive processes. When an intuitive hunch arises from the unconscious use of past experience, it can be an accurate guide to decision making}

Which of the following are steps in the decision-making process? Check all that apply.

*Choosing the alternative that is likely to be most effective *Developing a plan to put the decision into effect *Identifying alternative courses of action {The four steps of decision making are: 1.Recognizing and defining a decision situation 2.Identifying alternative actions 3.Choosing the most effective alternative 4.Putting the decision into effect Defining jobs to structure work is part of the organizing function of management}

Due to the relatively unstructured discussion among group members, political processes may have too much influence on the group's decision.

*Interacting Group {Because the give-and-take in an interacting group is relatively unstructured, political processes, such as coalition formation, can have an unhealthy influence on the group's decision}

The group discusses the issue freely until group members reach consensus.

*Interacting Group {In an interacting group or team, people freely discuss an issue until they reach consensus}

After group members read each other's proposals, they discuss them and then vote; the highest-ranked alternative after the vote is considered to represent the consensus opinion.

*Nominal Group {In a nominal group, members first write down their ideas and then reach every else's ideas; after some discussion, they vote}

Consider each alternative in terms of how feasible and satisfactory it is and what its likely consequences will be.

*Third {The third step in the classical decision model is to evaluate the alternatives identified in the second step. The manager rates the alternatives in terms of how effective they are likely to be. Considerations include how feasible they are, how satisfactory they are, and what consequences they will have}

Which of the following are principles of evidence-based management (EBM)? Check all that apply.

*Use the best information available to inform decisions *Analyze recommendations, looking for potential downsides *Promote experimentation with various alternatives to learn how well they work {According to Pfeffer and Sutton, five principles of EBM are: •Build an organizational culture in which people feel it is safe to tell the truth. •Commit to base decision making on the best evidence available. •Encourage a spirit of experimentation, in which people try out new ways of doing things to learn whether they work. •Critically examine recommendations for downsides. •Avoid relying on personal opinions, the organization's past practice, or the uncritical adoption of the practices of successful organizations. Managers should establish an organizational culture in which employees tell the truth as they see it, even if the ideas are "negative" in the sense of running counter to prevailing management thought or casting doubts on a committed course of action. An organization using EBM should be trying new approaches to learn what new results can be achieved, not automatically replicating what has been done before}

A decision that is routine because it is made frequently or is structured by clear rules is ___________ decision.

*a programmed {A decision in which the alternatives are clearly identified and choosing an alternative requires little judgment is a programmed decision. For example, if you have a porch light, you need to decide whether to turn the light on as you leave home: if you think it will be dark when you return, you turn on the light, but if if you'll likely return before sunset, you leave the light off; An unprogrammed decision deals with a new situation in which it's not clear how to choose the best alternative}

When a manager stops looking for alternatives as soon as she finds one that meets minimum criteria, the manager is ________ .

*satisficing {Managers may not look for all possible alternatives before making a decision. Instead, they may examine alternatives only until they find one that is good enough and then choose that one. When a manager satisfices in this way, she may fail to consider better options}

Group coordinators present the "average" opinion to the group members, who provide opinions in multiple rounds until they are in agreement.

*Delphi Group {In a Delphi group, coordinators collect the opinions of the expert group members, average them, and deliver that average to the group members, who then have an opportunity to revise their opinions. This occurs in rounds until the group has reached consensus}

Which of the following are common disadvantages of group or team decision making? Check all that apply.

*Decision making takes more time when done by a group than when done by a single person *Dominant group members exercise more influence than they should *To avoid conflict, group members pretend to agree with each other, and the group's decision does not reflect the true ideas of the group members {Following are three common disadvantages of group decision making: •The process takes longer, and thus costs more, than individual decision making. •One person may dominate the group, meaning that the group's decision reflects that person's ideas rather than a true consensus. •Groupthink may occur; that is, group members may express agreement because doing so is socially easier than disagreeing. Another potential disadvantage is that the group may have difficulty reaching true consensus and instead opt to meet halfway, even if most group members feel the resulting idea is not a very good one. It is easier for a group than for an individual to communicate a decision to stakeholders, and decisions made by groups tend to be better than decisions by individuals}

Group members contribute their opinions separately at first, without interacting with each other.

*Delphi Group {In a Delphi group, experts form their opinions independently at first and submit them to group coordinators without knowing what other group members have said}

Take action on the selected alternative.

*Fifth {The fifth step in the classical decision model is to turn the alternative chosen in step four into a reality. To take effective action, it's often helpful to make an operational plan, especially when a number of people and resources must be coordinated}

Define the decision that needs to be made.

*First {The first step in the classical decision model is to recognize, based on new information (a stimulus), that a decision needs to be made and to define what that decision is}

Choose the alternative most appropriate to the situation.

*Fourth {The fourth step in the classical decision model is to select one of the alternatives evaluated in step three. The best course of action in one situation will not be the best course of action in another situation}

Group members first brainstorm alternatives independently; then these ideas are posted where everyone can read them and share their reactions.

*Nominal Group {In a nominal group, the first activity is for each group member to write down alternatives; the second activity is for everyone to read all the alternatives and discuss them}

Determine possible courses of action.

*Second {The second step in the classical decision model is to identify what the various alternatives are. If a decision could have a large impact on the organization, the manager should discover as many alternatives as possible}

Determine whether the decision was correct and well executed.

*Sixth {The sixth step in the classical decision model is to evaluate the results of the process. The manager may be satisfied with the outcome. Alternatively, the manager may realize that a different alternative should have been chosen or that the implementation of the decision could have been better}

Which of the following are common advantages of group or team decision making? Check all that apply.

*The group's decision is more likely to be accepted by stakeholders than would a decision by an individual *There is more information available than if just one person made the decision *The group generates more alternatives than a single person would generate {Following are three common advantages of group decision making: •More information and knowledge are available. •More alternatives are generated. •The final decision is more readily accepted by stakeholders. Two other advantages are that group members can communicate their decision more effectively to all stakeholders and that, overall, better decisions tend to emerge. Decision making usually takes longer in groups than if a single person makes the decision, and political processes play a larger role in groups}

Managers make decisions under different types of conditions. Which of the following describes a state of certainty?

*The manager completely understands the available alternatives and the outcome of each {Under conditions of certainty, a manager knows all available alternatives and what will happen if each is chosen. A state of certainty is rare in the business world}

Managers make decisions under different types of conditions. Which of the following describes a state of uncertainty?

*The manager does not know what all the alternatives are, nor does the manager have complete information about their risks and outcomes {Under conditions of uncertainty, a manager has incomplete information about what actions might be taken and, for the alternatives that are known, what their risks and benefits are. Upper-level managers often must make decisions in a state of uncertainty}