Management- Chapter 7

When confronted with a decision, managers should utilize ________, which includes these four questions: "Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical to take the proposed action?"

Bagley's ethical decision tree

________ is 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.

Bounded rationality

________ is a technique used to help groups generate multiple ideas and alternatives for solving problems.

Brainstorming

________ is the process of examining data sets in order to draw conclusions about the information they contain.

Data analytics

During a job interview, how can you demonstrate your decision-making skills?

Describe a time in which you used intuition.

________ bias causes people to view events as being more predictable than they really are.

Hindsight

In which scenario do firms see the greatest performance increases?

Humans leverage leadership and teamwork alongside machines that enhance speed.

Greta, the quality control inspector at a baby food copacking factory, has discarded fourof the previous nine batches of baby food for trace levels of contamination. Great needs to turn this problem around and find a way to improve the situation, so she should probably perform

a diagnosis.

Ichiro is an on-site coordinator for the International Olympics Committee. Ichiro is good at his job because he regularly seeks new ideas and contrary opinions. He tolerates ambiguity well while being quite task-focused. Ichiro's decision-making style is best described as

analytical.

In the Management in Action case, it is apparent that Juul's CEO is unable to make a rational decision because of imperfect information, conflicting goals, and the complexity of the problem. There barriers are associated with

bounded rationality.

Which of the following lists represent ways to improve group problem solving as identified by decision-making experts?

brainstorming, dialectic method, post-mortems

Based on what you read in the Management in Action case, assume law enforcement only sought to seek data that affirms their position that Juul is breaking the law, and discounted information showing the company was not doing so. This means that law enforcement is most likely suffering from the ________ bias.

confirmation

Reggie's Records uses time-series forecasts, such as past holiday sales and the strength of store sales this year, to predict future sales based on patterns of historical data. Reggie's is using

data analytics.

Hunter is the R&D manager at a technology company. He started a project for a new operating system that has shown evidence of difficulties in implementation. However, Hunter can't admit that his project will not work, and continues to invest his team's time and budget to the project. Finally, the CEO calls Hunter to her office to ask him to ditch the project and to tell him he suffers from ________ bias.

escalation of commitment

Jordan likes working in as an insurance underwriter because it has structure and certainty, and the daily work is routine. Jordan probably

has a low tolerance for ambiguity.

Nonrational decision-making models, such as ________, describe how managers sometimes make decisions

intuition

Ellis is overseeing the development of a huge greenspace in an urban city center. He knows this project will affect millions of people, and he wants all key groups represented. As he considers who to add to the development team, he lists many civic and private organizations, education and environmental advocates, leaders of commerce and industry, as well as political officials and municipal agencies, that must all be involved. As Ellis reviews his list, with over 40 people on it, he decides that is a good enough number, and he is about to start sending out the invitations to the first meeting. Ellis's partner passes by and reminds him that, in general, the larger the group, the

lower the quality of their decisions.

Last week, Nalani had to fire Logan from his entry-level logistics analyst position. Nalani felt that Logan did not receive proper training at Northernmost University. When Laila, also a graduate of Northernmost University, applied for Logan's old position, Nalani did not want to consider hiring her, feeling Laila also probably did not receive the proper training. Nalani was affected by ________ bias.

representativeness

Rural Regional Hospital uses ________, so it is using robotic codes on its servers to route phone calls, track medical billing, and maintain patient records

robotic process automation

To ensure a quality group decision, the manager appointed Elijah to the role of devil's advocate in the decision-making process. What is expected of Elijah?

to be the critic