MNGT 360 Chapter 8

Groupthink

-A mode of thinking that occurs when members of a group are deeply involved in a cohesive in-group and the desire for unanimity offsets their motivation to appraise alternative courses of action

Evidence-Based Decision Making

-facing the hard facts -avoid decisions based on untested belief

4 steps of the creative process

1. Preparation : a period of education, formal training, and on the job experiences 2. Incubation: a period of less intense conscious concentration 3. Insight: a spontaneous breakthrough to achieve a new understanding 4. Verification: a test of the validity or truthfulness of the insight

Practical Approach

Bases decisions on prevailing standards, society, and all stakeholders (makes the most sense, relativism)

_________ is the ability of an individual to generate new ideas. -Cognitive ability -Self-efficacy -Empowerment -Creativity

Creativity

The Business Case for ethics and Social Responsibility:

Customers would switch brands to do business with a compnay that is ethical and socially responsible

__________ is the act of persisting with a failing course of action. -Overconfidence -Halo bias -Availability bias -Escalation of commitment

Escalation of commitment

A solution to a problem that borrows components from a solution to a different problem is not creative. -True -False

False

The concept of bounded rationality asserts that managers are typically able to process all available information and arrive at the single best solution. -True -False

False

Which of the following statements is most associated with emotion-based decision making? -I make decisions based on facts. -I plan my life based on how I feel. -I base my goals on logic. -I listen to my brain more than my heart.

I plan my life based on how I feel

Utilitarian Approch

Moral behavior produces the greatest good for the greatest number

Justice Approach

Moral decisions must be based on standards of equity, fairness, and impartialtiy (Due Process Clause, 5th and 14th ammendments)

Condition of Risk

Outcome is unknown, but enough info to estimate outcomes

Rational Approach

Systematic, step by step process for decision making: 1. State the situational goal 2. identify the problem 3. Determine the decision type 4. Generate Alternatives 5. Evaluate Alternatives 6. Choose an Alternative 7. Implement the plan 8. Control: measure and adjust

Group Polarization

The tendency for a group's average post-discussion attitudes to be more extreme than its average pre- discussion attitudes ("risky shift")

Some experts believe that groupthink contributed to the failure of NASA's Challenger mission. If this is correct, then which of the following was NOT likely true about the Challenger team members? -they fought constantly and couldn't agree on anything -they ignored the ethical implications of their decisions -they were insulated against outside information that might have challenged their beliefs -they believed that they couldn't possibly fail

Thy fought constantly and couldn't agree on anything

Decision-making skills are what enable employees to effectively resolve situations that require them to choose one alternative from among several. -True -False

True

Most creative people are also intelligent. -True -False

True

Enhancing Creativity in Organizations

Using explicit goals to make creativity a part of the organizational culture

Criteria for Ethical Decision Making: (Kohlbergs 5 approaches)

Utilitarian, Individualism, Moral-Rights, Justice, Practical

A nonprogrammed decision is appropriate when __________ -a situation requires exceptional problem solving skills. -decision rules can be applied. -the particular problem has frequently been encountered before. -the procedures have been previously tested.

a situation requires exceptional problem solving skills

sub-optimizing

accepting less than best outcome

Individualism Approach

acts are moral if they promote the individual's long-term interst (if it feels good, do it), (yolo)

Increased employee-centered decision making is related to increases in which of the following? -motivation -decision quality -morale -all of these

all of these

Which of the following is/are impacted by decision making? -business strategy -[roduct design -customer interaction -all of these

all of these

satisficing

choosing first encountered alternative that solves the problem

Ethics

code of moral principles and value that govern the behaviors of right or wrong

Which of the following affects creativity? -cognitive ability -gender -age -professional experience

cognitive ability

When there is no known information regarding the outcome of a decision, but enough information exists to estimate the probabilities of several outcomes, a ___________________ exists. -condition of uncertainty -condition of certainty -condition of risk -programmed decision

condition of risk

Nonprogrammed decisions require managers to use ____________ rather than ___________. -decision rules, creativity -things, people -creativity, decision rules -people, things

creativity, decision rules

Bounded Rationality

decision making based upon a meaningful subset of relevant information

The second step in the rational decision making process is to ________________ -generate alternatives. -state the situational goal. -define the problem. -measure and adjust.

define the problem

The third step in the rational decision making process is to ________________ -generate alternatives. -define the problem. -state the situational goal. -determine the decision type.

determine the decision type

Divergent thinking is a skill that allows people to see __________ situations, phenomena, or events. -benefits of -similarities among -limits of -differences among

differences among

Which of the following is a way that an individual in a group can fight against the onset of groupthink? -refrain from voicing contrary opinions too strongly -act as a "mind guard" to prevent outside information from affecting the group's discussions -discuss the issue with someone outside the group -all of these

discuss the issue with someone outside the group

Post-decision dissonance is _________ a choice that was already made. -doubt about -resentment toward -satisfaction with -denial of

doubt about

The fourth step in the rational decision making process is to ________________ -generate alternatives. -define the problem. -state the situational goal. -determine the decision type.

generate alternatives

Moral-Rights Approach

humans have funadmanetal rights and liberties that cannot be taken away by an individual's decision

Conditions of Uncertainty

insufficient info to estimate outcomes

Which of the following is/are true about intuition? -it's the same as guessing -it evolves over time -it's the opposite of rationality -all of these

it evolves over time

Satisficing refers to making a _________ rather than _________ decision. -logical, emotional -satisfactory, optimal -equitable, fair -short-term, long-term

logical, emotional

The final step in the rational decision making process is to ________________ -generate alternatives. -state the situational goal. -define the problem. -measure and adjust.

measure and adjust

Group polarization is the phenomenon that members' opinions tend to be _______ extreme before a discussion _______ they are after a discussion. -less, than -more, than -just as, as -no more, than

more, than

Condition of Certainty

outcomes of each alternative are known

According to prospect theory, people are more strongly motivated by ________ than by ________. -potential losses, potential gains -potential gains, potential losses -personal gains, ethics -ethics, personal gains

potential losses, potential gains

What type of decisions are routine, address specific problems, and result in relatively structured solutions? -programmed -nonprogrammed -strategic -long-term

programmed

Convergent thinking is a skill that allows people to see __________ situations, phenomena, or events. -benefits of -similarities among -limits of -differences among

similarities among

Which of the following is NOT a way that a group leader can fight against the onset of groupthink? -make one group member play devil's advocate -state her view to get the discussion started -encourage dissenting points of view -challenge the group with outside experts

state her view to get the discussion started

A contingency plan specifies what will be done if ___________ -the primary plan is disrupted. -the primary plan is successful. -nobody can agree on a primary plan. -the decision maker experiences post-decision dissonance.

the primary plan is disrupted

When groupthink occurs, group members are more interested in __________ than in __________. -ethics, money -considering alternatives, unanimity -money, ethics -unanimity, considering alternatives

unamity, considering alternatives