Chapter 11 Homework
True or false: An assumption of the non rational decision making models is that mangers possess all of the information needed to make optimal decisions
False
True or False: The goal of decision making is to find a solution that leads to a desired state of affairs
True
Bounded rationality is the idea that decision makers
Face various restrictions when making decisions
A holistic hunch can be described as
1. A judgment based on subconscious synthesis of memories 2. A decision that just feels right
Which of the assumptions of the rational decision-making model are faulty?
1. Managers have complete information 2. Managers leave emotion out of their decision 3. Managers have all of the resources needed to make rational decisions
A problem occurs when there is a gap between _____ and a _______ situation
Actual Desired
People who have a high tolerance for ambiguity and focus on people and the social aspects of a work situation have the _________ decision making style
Conceptual
A form of __________ brainstorming known as brain writing allows participants to submit their ideas over a computer network
Electronic
Judgmental heuristics are the ____________ shortcuts we use to simplify the decision making process
cognitive
Brainstorming is a technique used to help groups generate multiple _____ and alternatives for solving _________
ideas problems
Decisions that come to mind on their own and are not evaluated for validity are known as ________
intuition
A ______ is the divide between an actual and a desired situation
problem
If a chosen solution fails to solve the problem, managers can return to the __________ _____________ stage of the model
problem identification
Which of the following activities ar included in the decision making process?
1. Determining alternative solutions 2. Picking alternative solutions
A decision tree can be described as
1. Showing the process underlying decisions 2. Showing the consequences of making decisions
The bias that occurs when knowledge of previous outcomes influences decisions about the probability of future consequences
Hindsight bias
Breeds excessive optimism and risk taking
Invulnerability
Loyalty of dissenters is questioned
Peer pressure
Stifles critical debate
Self-censorship
Person factors that drive creative performance include
1. Motivation to apply relevant knowledge 2. Domain relevant knowledge 3. Willingness to tolerate ambiguity
List the creative performance behaviors in sequence with the first one at the top
1. Problem formulation/definition 2. Preparation/information gathering 3. Idea generation 4. Idea evaluation/validation
Criteria that should be used in evaluating alternatives are
1. whether it will solve the problem 2. what it will cost 3. Whether it is ethical
If the chosen ________ fails to solve the problem, managers can try another solution
Alternative
People who have a high tolerance for ambiguity and focus on tasks and technical concerns have which of the following decision making styles?
Analytical
The idea that decision makers are limited by various constraints during the decision-making process in the non rational model known as ______ __________
Bounded rationality
A technique used for solving problems, generating creative ideas for new products, and removing performance roadblocks is
Brainstorming
Ask for feedback
Confirm your intuitive judgments by seeking feedback from your reliable individuals
When you pinpoint and pick a solution that best solves a problem, this is
Decision making
Computer-based interactive systems that help decision makers use data and models to solve problems are __________ __________ systems
Decision support
Computer-based interactive systems that help decision makers use data and models to solve problems are
Decision support systems
A graphical representation of the process underlying decisions that shows the consequences of making various choices
Decision tree
People who have a low tolerance for ambiguity and are task oriented when making decisions have which decision-making style?
Directive
When managers are using the rational model and optimizing as they make decisions, they are doing which of the following?
Finding the idea solution
Evidence is used to ________ a decision whenever the decision process combines hard, objective facts with qualitative inputs
Inform
Ignores ethical implications
Inherent morality
Protect themselves against adverse information
Mindguards
Underestimates opponents
Stereotyped views of the opposition
Evidence-based decision making holds the promise of
1. Avoiding decision-making biases 2. Improving performance
Satisficing means that managers
1. Make a decision that is good enough 2. Make a decision that is satisfactory, but not optimal
The tendency to stick to an ineffective course of action when it is unlikely that a bad situation can be reversed is
Escalation of commitment bias
The process of conscientiously using the best available data when making managerial decisions
Evidence-based decision making
Which of the following are characteristics of people with the conceptual decision making style?
1. A long term perspective 2. A broad perspective 3. They rely on intuition
Automated experiences are based on
1. A partly subconscious applying of information that was previously learned 2. Well known situations
Research has found that key decision-making errors include
1. Allocating resources poorly to study alternatives 2. Making a quick decision without looking at all available information 3. Selecting a solution without considering alternatives
People who have a directive decision style
1. Are decisive and action oriented 2. Like to focus on facts
Characteristics of the rational decision-making model include the assumption that mangers
1. Are objective 2. Possess all information needed to make the best decision
People who have the behavioral style of decision making can be characterized as
1. Avoiding conflict 2. Having a hard time saying not to others 3. Working well with others
Factors that have led to decision support systems include
1. Big data 2. Advances in information technology 3. Globalization of organizations
Which of the following are techniques for preventing groupthink
1. Bring in outside experts 2. Appoint a devils advocate 3. Encourage subgroup debates
Some tips for sparking creativity include
1. Daydreaming 2. Solving problems when you're groggy 3. Putting effort into it
The assumptions behind non rational models of decision making are that
1. Decision makers lack competence information 2. Decision making lacks certainty 3. Managers struggle to make the best decisions
Which of the following should be considered in asserting the feasibility of an alternative?
1. Does the time permit? 2. Are customers resistant?
A group that is comfortable with minority dissent is more likely to
1. Experience job satisfaction 2. Relative positively to group participation
Advantages of group decision making include
1. Greater commitment to a decision 2. Better understanding of the reasons for a decision 3. A greater pool of knowledge
Examples of internal resources that constrain decision making process in the non rational model include
1. Human and social capital 2. Technology and financial capital
List the four steps in the rational decision making model with the first step in the process at the top and last step on the bottom
1. Identify the issue 2. Come up with potential solutions 3. Evaluate the possibilities and select a solution 4. Put the solution into practice and evaluate it
Confirmation bias has which of the following components?
1. Information is sought that confirms the already made decision and discounts information that does not 2. A decisions is made before investigating it
Suggestions for ways to make better decisions include
1. Investigating a greater number of potential solutions 2. Slowing down when making decisions 3. Considering a borader set of alternatives
List the steps in Bagley's ethical decision tree with the first question on the top and the last question on the bottom
1. Is the proposed action legal? 2. Does it maximize shareholder value? 3. Is it ethical to take this action? 4. Would it be ethical to not take this action?
What can managers do if the chosen alternative fails to eliminate the gap between the desired and actual situation?
1. Keep trying all alternatives that are feasible 2. Return to the problem identification step in the model 3. Try implementing a different alternative
Managerscan reduce the likelihood of escalation of commitment bias if they
1. Make decision makers aware of the costs of persistence 2. Set minimum targets for performance and compare results to targets
Research has found certain situational characteristics that drive creativity include
1. Positive relationships with coworkers 2. Mutual accountability 3. Interpersonal diversity
The disadvantages of group decision making include
1. Social pressure reduces creativity 2. Goal displacement 3. A few people dominate
Expertise is the combination of which of the following?
1. Tactic knowledge 2. Explicit knowledge
When you rely on intuition, which of the following are lacking?
1. The conscious awareness of the evoking cues 2. The evaluation of the effectiveness of the evoking cues
The model of decision-making styles is based on which of the following dimensions?
1. Tolerance for ambiguity 2. Value orientation
Analytical decision makers are those who
1. Tolerate ambiguity well 2. Respond well to new situations 3. Consider as many facts as possible
Big data, the vast quantity of data available to decision makers, can
1. allow for more narrow segmentation of customers 2. Enhance productivity 3. Make information more transparent and usable
When decision makers are influenced by the first information they receive even if it is irrelevant, it is
Anchoring bias
People who prefer to avoid conflict and focus strongly on people and the social aspects of a work situation have the ________ style of decision making
Behavioral
The joint novelty and usefulness of a product or service as judged by others is
Creative outcome effectiveness
People with a ______ decision-making style have a low tolerance for ambiguity and are oriented toward tasks
Directive
When winning an argument with a rival overshadows the primary goal of trying to solve the problem, it is known as _________ ___________
Goal displacement
When people who are members of a cohesive in-group so strive for unanimity that they fall to realistically appraise alternative courses of action it is
Groupthink
The bias that occurs when knowledge of previous outcomes influences decisions about the probability of future concurrence is
Hindsight bias
When you make a decision that comes to mind without clear awareness or evaluation of the evoking cues, this is
Intuition
The intuition model is based on two distinct processes: an _________ and one a __________ one that is its opposite
Involuntary Voluntary
Test your intuitive success rate
Look at the times you relied on your intuition, calculate your success rate, and assess the reasons why your intuition was wrong at times
The ___ ______ models of decision making explain how managers really come to decisions
Non rational
An __________ is a situation in which it is possible to do something that eclipses expectations
Opportunity
The bias that takes place because we are optimistic based on overestimates of what we are able to do is
Overconfidence bias
If a chosen solution fails to solve the problem, mangers can return to the __________ ____________ stage of the model
Problem identification
Decision follow more logically from available knowledge
Quality
Protects "pet" ideas and assumptions
Rationalization
When all members of a group either agree with a decision or are able to support it, they have
Reached consensus
Trust judgements based on intuition
Rely on your feelings including your gut feel
The decision-making heuristic used when people estimate the probability of an event occurring based on impressions about similar occurrences is
Representative bias
It discourages decisions based on personal or bureaucratic considerations
Responsibility
Deciding to choose a solution that meets enough minimum qualifications is
Satisficing
Deciding to select a solution that meets some minimum, adequate qualifications is __________
Satisficing
Challenge your intuition
Test your intuition and hunches by forming counterarguments
The group process that anonymously generates ideas or judgments from physically dispersed experts is
The Delphi technique
The extent to which a person has a high need for structure and control in his or her life is known as
Tolerance for ambiguity
The reasoning behind a decision is available for scrutiny
Transparency
The extent to which an individual focuses on either task and technical concerns or people and social concerns in making decisions is
Value orientation
A decision tree is a graphical representation of the process underlying decisions that shows the __________ of making various choices
consequences
The process of producing new and useful ideas concerning products, services, processes, and procedures is
creativity
The way an individual perceives stimuli and the general manner in which he or she responds to it is a __________-_______ style
decision-making
When you can possibly produce results that surpass goals, it is an
opportunity
The decision making model that assumes managers are fully objective and have all information they need to make a decision is the ______ decision model
rational
