MGMT 3013- CH 7 SMARTBOOK

All of the following are advantages to group decision making except ______. A: deeper commitment to the decision B: greater pool of knowledge C: superiors dominating or intimidating the group D: different perspectives

C: superiors dominating or intimidating the group

True or false: Soft skills do not have a role in evidence-based decision making. True False

False

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

True

Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests? A: The rational model B: The analytical model C: The limited model D: The optimal model

A: The rational model

A _____ is a choice made from available alternatives. A: rationale B: decision C: consensus D: feasibility

B: decision

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? A: Conceptual B: Directive C: Analytical D: Behavioral

C: Analytical

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? A: Analytical B: Conceptual C: Behavioral D: Directive

C: Behavioral

Value orientation reflects the extent to which an individual focuses on which of the following dimensions? A: Ambiguity or certainty B: Consumer or seller concerns C: Technical concerns or social concerns D: Rational decision making or nonrational decision making

C: Technical concerns or social concerns

Which of these is another term for hindsight bias? A: The "Easy-come-easy-go" principle B: The "I-never-would-have-guessed-that" effect C: The "I-knew-it-all-along" effect D: The "Any-time-any-day" principle

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

People with a(n) ______ decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problems and making decisions. Which style do they use? A: conceptual B: analytical C: directive D: incremental E: behavioral

C: directive

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? A: A decision support system B: Benchmarking C: The Delphi technique D: Brainstorming

D: Brainstorming

Which of the following is an advantage of group decision making? A: Goal displacement B: Groupthink C: Satisficing D: Intellectual stimulation

D: Intellectual stimulation

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

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

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. A: sunk-cost B: representativeness C: anchoring D: confirmation

A: sunk-cost

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 ______. A: the availability bias B: the Delphi technique C: the sunk-cost bias D: predictive modeling

A: the availability bias

What is the fundamental concern shared among all critics of artificial intelligence? A: Artificial intelligence has the capacity to become smarter than humans, threatening their very existence. B: Artificial intelligence will make us less likely to interact with each other on a personal level. C: Artificial intelligence threatens to eliminate the incentive for humans to work hard. D: Artificial intelligence will amplify the negative effects of climate change.

A: Artificial intelligence has the capacity to become smarter than humans, threatening their very existence.

What is the most common type of AI used today? A: Automated business processes B: Data analysis C: Customer engagement D: Human resource management

A: Automated business processes

Which decision-making style is the most people oriented of the four styles? A: Behavioral B: Opinion C: Directive D: Analytical

A: Behavioral

Which steps are recommended for establishing a process or method for making decisions? (Choose every correct answer.) A: Conduct a cost-benefit analysis. B: Consider whether the decision is consistent with your values. C: Ignore feedback or opinions from others and go with your gut instinct. D: Analyze the situation.

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

Which of the following are the top challenges associated with AI? (Choose every correct answer.) A: Cost B: Enhanced decision making C: Data issues D: Implementation

A: Cost C: Data issues D: Implementation

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? A: Devil's advocate B: Silent observer C: Tireless champion D: Diplomat

A: Devil's advocate

Which of these are reasons for the increase in ethical violations among business leaders in the 21st century? (Choose every correct answer.) A: Digital communications are more susceptible to hackers and whistleblowers. B: Globalization allows businesses to operate in regions where ethical risks are greater. C: It has become customary for business leaders to self-report unethical behavior. D: The 24/7 news cycle places more scrutiny on unethical behavior.

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

What is the third stage of the rational model of decision making? A: Evaluate alternatives and select a solution. B: Identify the problem or opportunity. C: Develop alternative solutions. D: Implement and evaluate the chosen solution.

A: Evaluate alternatives and select a solution.

What are common results of groupthink? (Choose every correct answer.) A: Failure to consider new information B: Infighting and conflict C: Ideas that are too ambitious or unorthodox D: Loss of new ideas

A: Failure to consider new information D: Loss of new ideas

What is the best way to develop a ready-made solution? A: Identify best practices and turn them into standard operating procedure. B: Conduct a survey of preferred approaches to a problem and implement the most common responses. C: Borrow the approaches that worked best for other individuals or organizations you admire. D: Conduct a cost-benefit analysis and pursue the cheapest options.

A: Identify best practices and turn them into standard operating procedure.

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making? (Choose every correct answer.) A: Is it ultimately effective? B: Is it feasible? C: Is it creative? D: Is it ethical? E: Is it profitable?

A: Is it ultimately effective? B: Is it feasible? D: Is it ethical?

Which of these describe how knowledge of decision-making styles affects managers' work? (Choose every correct answer.) A: It allows managers to better identify personal strengths and weaknesses. B: It gives managers an understanding of how different people reach different conclusions. C: It reduces managers' ability to predict future challenges. D: It enables managers to more accurately blame others for problems.

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

A recent survey of U.S. companies showed that most companies use AI to do which of the following? (Choose every correct answer.) A: Optimize internal processes B: Make more effective decisions C: Replace employees D: Enhance current offerings

A: Optimize internal processes B: Make more effective decisions D: Enhance current offerings

Which of the following are examples of what can function as the first stage in rational decision making by managers? (Choose every correct answer.) A: Poor product quality B: Low staff turnover C: Sales shortfalls D: Customer complaints

A: Poor product quality C: Sales shortfalls D: Customer complaints

Which of these are examples of business analytics? (Choose every correct answer.) A: Portfolio analysis B: Time-series forecast C: Marketing plans D: Groupthink E: Advertising campaigns

A: Portfolio analysis B: Time-series forecast

Evidence-based management attempts to introduce which factor into the decision-making process? A: Rationality B: Idealism C: Self-interest D: Speed

A: Rationality

Select all that apply Successful implementation of major decisions requires which of the following? A: Sensitivity to those affected by the decision B: Ignoring ethical dilemmas C: Careful planning D: Reliance on the easy way out of the problem

A: Sensitivity to those affected by the decision C: Careful planning

Which of the following are examples of big data? (Choose every correct answer.) A: Surveillance data B: Web-browsing data trails C: Social network communications D: Data in corporate databases E: Unrecorded customer interactions

A: Surveillance data B: Web-browsing data trails C: Social network communications D: Data in corporate databases

Which of the following is an accurate description of decision making? A: The process of identifying and choosing alternative courses of action B: The act of implementing a plan that has already been conceived C: The procedure of explaining a choice that has been made D: The process of analyzing the underlying causes of a situation

A: The process of identifying and choosing alternative courses of action

Which of the following is a primary use of AI among U.S. companies? A: To gain competitive advantage B: To downsize staff C: To gain a human element D: To avoid having to make decisions

A: To gain competitive advantage

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. A: analytics B: ethics C: satisficing D: intuition

A: analytics

A consensus is reached when all members are able to express their opinions ______. A: and reach agreement to support the final decision B: and decide on a date to make a final decision C: and vote on a final decision D: but are unable to make a final decision

A: and reach agreement to support the final decision

The first stage in the rational decision-making process involves ______. A: identifying the problem B: evaluating alternative solutions C: coming up with possible solutions D: implementing the solution

A: identifying the problem

In the fourth stage of rational decision making, managers will ______. A: implement and evaluate the chosen solution B: develop alternative solutions to the problem or opportunity C: evaluate the alternatives and select a solution D: identify the problem or opportunity

A: implement and evaluate the chosen solution

"Going with your gut," or ______, is making a choice without the use of conscious thought or logical inference. A: intuition B: risk propensity C: analytics D: satisficing

A: intuition

Heuristics are strategies that ______ the process of making decisions. A: simplify B: initiate C: categorize D: complicate

A: simplify

Which one of the following best describes the decisions made by a person with an analytical style? A: Supportive of others and receptive to suggestions B: Carefully considers lots information and alternatives C: Frequently relies on intuition and good at finding creative solutions D: Autocratic, action oriented, and decisive

B: Carefully considers lots information and alternatives

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? A: Anchoring and adjustment B: Confirmation C: Hindsight D: Availability

B: Confirmation

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem? A: Money from investors B: Employees with ideas C: Facilities with open space D: Customers of competitors

B: Employees with ideas

Which of the following business needs are typically supported by artificial intelligence? (Choose every correct answer.) A: Interviewing potential job candidates B: Engaging customers and employees C: Analyzing data D: Automating business processes

B: Engaging customers and employees C: Analyzing data D: Automating business processes

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? A: Overconfidence B: Groupthink C: Goal displacement D: Burnout

B: Groupthink

Which of the following career-readiness competencies relate to evidence-based decision making? (Choose every correct answer.) A: Social intelligence B: Information technology application C: Critical thinking and problem solving D: Self-motivation E: Computational thinking

B: Information technology application C: Critical thinking and problem solving E: Computational thinking

People with a conceptual decision-making style are likely to do which of the following? (Choose every correct answer.) A: Focus on the facts B: Take risks C: Find creative solutions D: Act autocratically E: Rely on intuition

B: Take risks C: Find creative solutions E: Rely on intuition

What are three characteristics that affect decision making by a group? (Choose every correct answer.) A: The fact that groups tend to make bad decisions B: The efficiency of the group C: The size of the group D: The knowledge of group members E: The gender differences present in the group

B: The efficiency of the group C: The size of the group D: The knowledge of group members

In the devil's advocacy technique, the group assigns one person to do which of the following? A: Brainstorm a list of new ideas. B: Uncover all possible objections to a plan or an idea. C: Forfeit his or her vote to ensure unanimity. D: Make a decision for the entire group.

B: Uncover all possible objections to a plan or an idea.

Decision-making styles vary along which two dimensions? (Choose every correct answer.) A: Defensive avoidance B: Value orientation C: Tolerance for ambiguity D: Risk multiplication

B: Value orientation C: Tolerance for ambiguity

Select all that apply Which questions should you ask when developing ready-made solutions based on past experiences? (Choose every correct answer.) A: Who was most responsible for the problem? B: What was the problem? C: What was the solution? D: What lessons can you derive from this experience?

B: What was the problem? C: What was the solution? D: What lessons can you derive from this experience?

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. A: executive-decision B: brainstorming C: Delphi

B: brainstorming

The ______ bias occurs when people seek data to support their point of view and disregard information that does not support it. A: representativeness B: confirmation C: sunk-cost D: anchoring

B: confirmation

A graph of decisions and their possible consequences used to create a plan is known as a(n) ______. A: incremental model B: decision tree C: rational model D: business analytic

B: decision tree

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. A: rational B: nonrational C: complacent D: prescriptive

B: nonrational

You fall prey to the overconfidence bias when you ______ your knowledge or expertise in a decision situation. A: accurately estimate B: overestimate C: ignore D: underestimate

B: overestimate

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 ______. A: brainstormed successfully B: reached a consensus C: met a benchmark D: voted unanimously

B: reached a consensus

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

Blank 1: hindsight or hind sight

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

Blank 1: intuition

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? A: Directive B: Behavioral C: Conceptual D: Analytical

C: Conceptual

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? A: Analytical B: Behavioral C: Directive D: Conceptual

C: Directive

______ are strategies such as "rules of thumb" that simplify decision making. A: Biases B: Data-mining practices C: Heuristics D: Rationalizations

C: Heuristics

Which of these assumptions are made in the rational model of decision making? (Choose every correct answer.) A: Managers will be influenced by their own self-interest when choosing among alternative courses of action. B: Managers will not be limited by time or money constraints when implementing the chosen solution. C: Managers have complete, error-free information about alternative courses of action and their consequences. D: Managers will always select the course of action that they know will most benefit the organization. E: Managers are able to make logical decisions without prejudice or emotional blind spots.

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

Which models are characteristic nonrational models of decision making? A: Models that try to predict future behaviors and consequences B: Models that describe how managers should make decisions C: Models that describe how managers actually make decisions D: Models that train managers how to make ethical decisions

C: Models that describe how managers actually make decisions

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? A: Implement the solution. B: Identify the problem. C: Think up alternative solutions. D: Evaluate alternatives.

C: Think up alternative solutions.

All the following are characteristics of group decision making except ______. A: they may be too confident B: their knowledge counts C: groups make decisions quickly D: their size affects their decision quality

C: groups make decisions quickly

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. A: complacent B: prescriptive C: nonrational D: rational

C: nonrational

Evidence-based decision relies on ______. A: personal beliefs about what should work B: a leader's authority to make a final choice C: observations about what actually works D: polls to determine the most popular approach

C: observations about what actually works

The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them. A: unethical B: predictive C: prescriptive D: unconventional

C: prescriptive

The ______ bias reflects our tendency to generalize from a small sample or single event. A: availability B: confirmation C: representativeness D: sunk-cost

C: representativeness

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. A: representative B: anchoring and adjustment C: sunk-cost D: confirmation

C: sunk-cost

Knowledge of decision-making styles can assist managers in many ways except for which one of the following? A: It helps to identify a manager's own strengths and weaknesses in making decisions. B: It facilitates the potential for self-improvement in making decisions. C: It increases their ability to influence others by catering to their style. D: It increases the biases of the manager toward their favorite style.

D: It increases the biases of the manager toward their favorite style.

What is the recommended step you should take after making a decision? A: Seek input from trusted friends and colleagues. B: Ignore the results and focus on your next decisions. C: Analyze the political issues involved with your decision. D: Observe the results, then conduct a post-mortem.

D: Observe the results, then conduct a post-mortem.

Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions? A: The statistical model B: The rational model C: The brainstorming model D: The nonrational model

D: The nonrational model

Stores of data that are so large or complex that it is difficult to process them using traditional database management applications are known as ______. A: cloud computing B: data mining C: proscriptive analytics D: big data

D: big data

All the following are characteristics of group decision making except ______. A: their size affects their decision quality B: they may be too confident C: their knowledge counts D: groups make decisions quickly

D: groups make decisions quickly

A person's decision-making style is a combination of how a person perceives something as well as ______. A: when they verbalize it B: the time it takes to reach a perception C: a reflection of how others feel D: how they respond to it

D: how they respond to it

The ______ bias reflects our tendency to generalize from a small sample or single event. A: sunk-cost B: confirmation C: availability D: representativeness

D: representativeness

A manager who hires all applicants who have graduated from a certain college because a particularly good employee came from that same college is an example of ______. A: confirmation bias B: anchoring and adjustment bias C: escalation of commitment bias D: representativeness bias

D: representativeness bias

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 ______. A: benchmarking B: people concerns C: SWOT analysis D: value orientation

D: value orientation

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. True False

False

True or false: Framing bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them. True False

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 False

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 False

True Reason: One of the reasons that CEOs are more likely than ever to be ousted for ethical violations is that the public is less forgiving of poor behavior by executives.