Mgt-Ch. 7

Indicate which three assumptions are prevalent in the rational decision-making model.

-Choice of best decision for the organization and not the individual -Complete information, no uncertainty -Logical, unemotional analysis

Identify some of Hodgson's Magnificent Seven General Moral Principles for managers.

-Fairness -Loyalty -Autonomy -Honesty

Identify the three (3) criteria questions a manager should use to evaluate alternatives in a decision.

-Is it ultimately effective? -Is it feasible? -Is it ethical?

Which of the following are characteristics of all groups that can influence decision making?

-The knowledge of group members -The amount of time available to make the decision -The size of the group

Which two of the following are examples of the Delphi technique?

-a group of specialists submit anonymous reports about a subject -the expert opinion is compiled and consensus is reached

Which two of the following are appropriate reactions for a manager when unintended consequences occur as a result of an implemented decision?

-alter the plan slightly -give the plan more time

Indicate the three ways that can help you in "deciding whether to decide" that are listed below:

-credibility: "How believeable is the information about the situation?" -importance: "How high priority is this situation?" -urgency: "How quickly must I act on the information about the situation?"

Which two of the following are considered ineffective reactions to challenges?

-defensive avoidance -panic

Delphi group problem-solving involves:

-experts are physically dispersed -anonymous questionnaires are utilized -consensus of expert opinion is achieved

Identify the tree key attributes that the Babson College's Working Knowledge Research Center found among analytics competitors.

-having multiple applications -use of modeling -support from the top

Which of the following are ways that you can use the knowledge of decision-making styles?

-identification of your personal strengths and weaknesses -understanding of differences can improve you ability to manage conflicts with others

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

-rely on intuition -find creative solutions -take risks

Disadvantages of using a group decision:

-satisficing is more likely to occur -group think is likely to develop -a few people my dominate -goal displacement can occur

Successful implementation of major decisions requires which two (2) of the following to occur?

-sensitivity to those affected by the decision -careful planning

Seven Rules for Brainstorming

1. Defer judgement on the ideas 2. Use the ideas of others/build off of 3. encourage wild ideas 4. stay focused on the topic 5. be visual 6. 7.

4 steps in Rational decision making model:

1. Identify the problem or opportunity. 2. Think up an alternative solutions 3. Evaluate alternatives and select a solution. 4. Implement and evaluate te solution chosen.

7 ways guidelines for developing intuitive awareness:

1. Open up the closet 2. Don't mix up your I's 3.Elicit good feedback 4. Get a feel for your batting avg 5. Use imagery 6. Play devil's advocate 7. Capture and validate your intuitions

Which one of the following reflects the value orientation of a person that is focused on people and/or social concerns?

A manager schedules work based on the interests and preferences of employees.

Which one of the following best describes the basis of the tree nonrational models of decision making?

A model that describes how managers actually make decisions

_______ _______ is a concept that suggest decision makers are limited by many constraints such as complexity, time and money, cognitive capacity, values, skills, ect.

Bounded rationality

Is a face-to-face technique used to help groups generate multiple ideas and alternatives for solving problems.

Brainstorming

________ is reached when ALL group members are able to express their opinions and reach agreement to support the final decision and are willing to work toward its success.

Consensus

_______ making is the process of identifying and choosing alternative courses of action.

Decision

People with this decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problem and making decision. Which style do they use?

Directive

________ __________, also called brainwriting, is a common term often used to describe a technique used to help members of a group come together over a computer network to generate ideas and alternatives for solving problems.

Electronic brainstorming

When decision makers increase their commitment to a project despite negative information about it, they are experiencing which type of bias?

Escalation of commitment

TRUE/FALSE: Predictive modeling is a group think technique.

FALSE, data-mining technique

TRUE/FALSE: During a brainstorming session, participants should criticize the initial ideas as much as possible to eliminate impractical suggestions.

FALSE, judgement should be deferred as long as possible in order to illicit new and novel suggestions.

This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation.

Group Think

When positive team spirit and striving for unanimity is most likely to lead to poor decision making

Group Think

Satisficing Model

Looks for what is the minimum acceptable alternative

Sue's work group was given a choice of three ways to introduce a new product to existing customers. The work group met and discussed the pros and cons of each method and reached a decision on which one they felt would be most beneficial for the company and work well with members of the work group. Sue's manager let the work group use their choice in this matter. What decision-making technique did the manager use in this situation?

Participative management

TRUE/FALSE: One example of business analytics is a portfolio analysis in which an investment adviser evaluates the risks of various stocks and bonds an individuals owns.

TRUE

TRUE/FALSE: The incremental model of decision making concentrates more on short-term results than long-term solutions.

TRUE

TRUE/FALSE: The sunk cost bias is sometimes called the "Concorde" effect, referring to the fact that the French and British governments continued to invest in the supersonic jetliner even when it was evident there was no economic justification for the aircraft.

TRUE

TRUE/FALSE: By setting an abnormally high selling price because of an anchoring and adjustment bias, many people overvalue their home when it comes to placing it on the real estate market.

TRUE---ex. 5% raise for employees even though it pushes company's salaries significantly above what is normally paid in the industry.

Hindsight bias

The tendency of people to view events as being more predicable than they really are.

In the ________ bias, managers use information readily available from memory to make judgements.

availability

People with this style work well with others and enjoy social interaction in which opinions are openly exchanged. They are supportive of others, receptive to suggestions, show warmth and affection to others, and prefer verbal communications to written information. They are the most people-oriented decision makers. They use the __________ style.

behavioral

The term used for sophisticated forms of business data evaluations is:

business analytics

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

carefully considers lots information and alternatives

The ________ bias is when people seek information to support their point of view and discount data that do not.

confirmation

When it comes to decision making, what is an employer's greatest competitive resource?

creative employees

A(n) _________ is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal.

decision tree

In _________ _________, managers can't find a good solution to the problem so they "pass the buck" to someone else.

defensive avoidance

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--are efficient, logical, and practical

Participative management does not work without

employee trust

Following can help make participative management work

employees trust management, PM is implemented with TQM, employees are properly trained, prepared, and interested in it, and top managers is continuously involved.

Someone who is trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas, is called a(n):

ethics officer

Computer-aided decision making

has been found to produce better quality and a greater quantity of ideas for larger groups of people than traditional face-to-face brainstorming.

Sam is an experienced firefighter who must act quickly and decisively to do his job. He frequently relies on his ________ to make decisions when there isn't time for rational analysis.

intuition

Framing bias

is the tendency of decision makers to be influenced by the way a situation or a problem is presented to them.

All of the following are characteristics of the Delphi group problem-solving technique EXCEPT:

it is meant solely for technological forecasting

In relaxed avoidance, a manager decides to take _________ because he feels there will be no great adverse or negative consequences for him.

no action

________ are situations that present possibilities for exceeding existing goals.

opportunities

In ________, managers are so frantic to get rid of the problem that they can't deal with the situation realistically.

panic

Tolerance for Ambiguity

personality dimension indicated the extent to which a person has high need for structure control in their life

The _________ model of decision making explains how managers should make decisions based on logic that will be the optimum in furthering the organization's best interest.

rational

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

Heuristics are strategies that ________ the process of making decisions.

simplify

The _______ bias is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

sunk cost

Overconfidence Bias

the bias in which people's positive feelings about their own decision making ability is greater than their objective accuracy.

Prospect

theory that suggests that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain.

The four different decision-making styles are based on a combination of:

tolerance for ambiguity and value orientation

Goal Displacement

when primary goal is replaced with a lesser second goal. happens when a manager loses control of a meeting and they have called for a specific agenda.