mgmt ch 7

_____ can be interpreted in multiple and often conflicting ways.

Ambiguous information

_____ is a critical analysis of a preferred alternative, defending unpopular or opposing alternatives for the sake of argument.

Devil's advocacy

_______ are individuals who notice opportunities and decide how to mobilize the resources necessary to produce new and improved goods and services.

Entrepreneurs

_____ are rules of thumb that simplify the decision-making process.

Heuristics

Which of the following is true about choosing among alternative solutions?

Identifying all relevant information doesn't mean that a manager has complete information.

_____ results from overestimating one's own ability to influence actions and events.

Illusion of control

Which of the following is true about decision making?

In order to implement the chosen alternative, many subsequent and related decisions must be made.

Which of the following is a reason why managers fail to generate creative solutions?

They find it difficult to view problems from a fresh perspective.

Two separate groups of managers are given a problem to solve, and then each group presents its proposed solution to top management in an attempt to determine the best course of action. This process is called

dialectical inquiry.

The last step in the managerial decision-making process is

learning from feedback

Building a(n) _____ is not easy and it requires that managers change their management assumptions radically.

learning organization

In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ____________ decision.

optimum

In his five principles for creating a learning organization, Peter Senge says managers should empower their employees and allow them to experiment, create, and explore what they want. Peter refers to this as

personal mastery

The classical model specifies how decisions should be made. In other words it is

prescriptive

The first step in the managerial decision-making process is to

recognize the need for a decision.

Li sees that several of his employees have creative talent. Which of the following should Li do to promote individual creativity?

reward the employees who come up with creative ideas

Heuristics are

rules of thumb that simplify decision making.

Ronda noticed some opportunities to increase literacy in her community so she pursued an innovative idea and started an education program. This is an example of

social entrepreneurship.

When _____ exists, managers are working blind.

uncertainty

________ is an organization in which managers enable subordinates to think creatively in order to maximize the potential for organizational learning.

A learning organization

_______ can be part of a decision-making process in which a face-to-face meeting occurs, generating discussions and debates over a wide variety of alternatives from which to make the decision.

Brainstorming

Which of the following is a guideline to promoting individual creativity in an organization?

Creativity results when employees have an opportunity to experiment.

_____ is a critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt.

Dialectical inquiry

Which of the following is true about a nominal group technique?

Group members write down their ideas then share their thoughts with the group.

_____ occurs when individuals in a team strive for agreement among themselves rather than assessing information accurately.

Groupthink

Which of the following is a guideline for managers to improve their decision-making abilities?

List the criteria that are being used to assess and evaluate alternatives and evaluate if the factors are appropriate

Which of the following is an advantage of group decision making?

Managers can draw on the combined skills, competencies, and accumulated knowledge of group members.

Which of the following is an assumption made by the classical model?

Managers have access to all the information they need.

_____ is the process through which managers seek to improve employees' desire and ability to make decisions that raise organizational effectiveness.

Organizational learning

Which of the following is true about a learning organization?

Organizations need to encourage employees to develop and use complex mental models.

_____ results from the tendency to make decisions based on preexisting beliefs even though evidence suggests that those beliefs are wrong.

Prior hypothesis bias

_____ results from the tendency to have an incorrect view because of a bad experience with a single event or episode.

Representativeness bias

_____ are individuals who pursue causes such as reducing poverty, increasing literacy, protecting the natural environment, or reducing substance abuse.

Social entrepreneurs

Which of the following is a reason for incomplete information?

ambiguity

_____ is a decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action.

creativity

Having committed large amounts of manpower and money to his landscaping business, Tony continues to keep the business running despite incurring heavy losses. What is the source of Tony's cognitive bias?

escalating commitment

Which of the following is a source of bias that can adversely affect the way managers make decisions?

escalating commitment

Scott is part of a production team that has researched and chosen a new process to improve the quality of a product. Scott finds information that counters the claims of the production team. However, Scott decides to ignore the new-found evidence and support the team's decision. Scott is being adversely influenced by

groupthink

Wash Ur Car, which operates five car washes, has to decide whether or not it should invest in the latest drying equipment. What type of decision does this represent for the organization?

nonprogrammed

John, an operations manager, has chosen an alternative way to solve a problem he is faced with. Now John must decide whether the company has the capabilities and resources required to implement the alternative. Which criterion of decision making is he focusing on?

practicality

Raul, the president of Bank Missouri, is attempting to determine whether the bank has both the capability and the resources to open a branch facility in a new location. Which criterion of decision making is Raul focusing on?

practicality

Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35. This can be classified as a(n) _____ decision.

programmed

Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?

programmed

Maria, a supervisor at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. What type of decision is this?

programmed

When paper supplies reach a minimum level, Ethan makes a call to the supplier to order more paper. What type of decision does this represent?

programmed decision

During the last several months at FSE Inc., workers' overtime hours have increased by more than 15%. Based on managers' decisions in the past, James Calloway, a top manager at FSE Inc. decided to hire additional staff. This is an example of

programmed decision making.

Eileen, a college professor, has to pick a textbook for an upcoming course. She has just enough time to review a few books from the many choices available. She settles for one of the books, even though the best book might be a book that she hasn't yet reviewed. What is this process called?

satisficing