management ch 8

While Liz likes the structure provided by the rational decision-making process, you caution her that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations?

-Managers do not always evaluate situations rationally. -Managers cannot always obtain complete and accurate information. -Managers are limited by their values and unconscious beliefs

Advantages of Group Decision Making

-More information and knowledge are available. -More alternatives are likely to be generated. -More acceptance of the final decision is likely. -Enhanced communication of the decision may result. -Better decisions generally emerge.

Disadvantages of Group Decision Making

-The process takes longer than individual decision making, so it is costlier. -Compromise decisions resulting from indecisiveness may emerge. -One person may dominate the group -Groupthink may occur.

decision making steps

1) Define the decision. 2)Identify the alternatives. 3)Evaluate the alternatives. 4)Select the best alternative. 5)Implement the chosen alternative 6)Evaluate the results.

Astute managers can use simple tactics to minimize the potential for groupthink to influence team decision outcomes. Which of the following tactics is best for minimizing the chance for groupthink to occur?

Assign at least one member to play the role of devil's advocate.

After you review the six steps with Liz, she asks for an example of how to identify alternatives as she decides whether VoxSigns should lay off employees. Which of the following is the correct example to give to Liz?

Liz would make a list of ways the company might address its financial concerns, such as laying off employees, increasing customer prices, moving to a less expensive office space, or a combination of these ideas.

Noah works at a coffee shop that offers a special limited edition drink during the month of June. It is always a hassle to get his colleagues to agree on the special drink, so he started providing them with a different sample each morning starting well before June. One day, every employee agreed that the daily sample would be a good choice to use as the limited edition beverage in June, so they chose that drink as the special and didn't taste any more samples.

Satisficing -This is an example of satisficing because the coworkers sampled coffee drinks only until they found one that met their criteria (a good beverage to feature as the June limited edition drink). They did not consider every possible option

Mick's coffee shop and three other mom-and-pop stores formed----- to oppose plans for opening a large chain store on their street.

a coalition - A coalition is an informal alliance of individuals or groups formed to achieve a common goal. Here, the small shops are uniting in their goal to oppose the entry of a chain store that may negatively impact their businesses.

The------- of decision making recognizes that people (a) often use incomplete and imperfect information, (b) are constrained by bounded rationality, and (c) tend to satisfice.

administrative model -An administrative model is a decision-making model based on the premise that decision makers (a) use incomplete and imperfect information, (b) are constrained by bounded rationality, and (c) tend to satisfice when making decisions.

Last month, the Pilots Association held a meeting to discuss its plans for next year. Last year, the group spent more than $50,000 to develop plans for a new airport hub. The hub was criticized by airport officials, who suggested that they would not be interested in the project at any time. The group decided to continue developing their plans, because they had already invested so much in the project. Escalation

escalation -The Pilots Association is having a problem with escalation of commitment, because they are spending additional money on a project that has already shown that it is not feasible

Brody is an experienced manager who needs to hire a new financial analyst. There are five people who might be right for the job. When Brody meets the first applicant, he knows instantly that he doesn't like her and doesn't want her working for him. As a result, he cuts short his interview with her and moves on to the next candidate.

intuition -Brody is using his intuition to determine whether to hire a financial analyst candidate.

Imagine that you are on the new business development team in your company. The team has been tasked with identifying a prospect list in a new sector. Which team decision-making approach will be best given the need for the team to be innovative in the generation of ideas?

nominal group technique -The nominal group technique is a face-to-face technique that is useful for generating creative and innovative ideas

Congratulations! You were accepted at four colleges and now must decide which to attend. Each school is located in a different part of the country, has different tuition costs, and offers some degrees that are unavailable at the other schools. Your decision about which school to choose is a:

non programmed

Univision Communications Inc., a Spanish-language entertainment giant, hired Jessica Rodriquez as its chief marketing officer and president of entertainment. The decision executives at Univision made about whom to pick for this position is a:

non programmed

The front office staff at Marriott Hotels has a preshift meeting at 7:00 every morning. As general manager, you are expected to attend these meetings. The decision you make every day about what time you will arrive at work is a:

programmed

You and Greg go to several movies each month, and never see the same one twice. Both of you enjoy almost any type of movie, although Greg refuses to see horror films because they give him nightmares. You want to buy tickets for tonight's movie in advance, but cannot reach Greg to ask which one to choose. However, the only new movies are a comedy and a horror film. Your decision to choose the comedy is a:

programmed

Your company's events committee learned that there is a 20% chance of rain on the day of the company picnic. That also means an 80% chance of dry weather. Renting an indoor facility would require a nonrefundable payment of $1,000. The events committee is operating under a_________ as it decides whether to keep the outside location or to move the event indoors.

state of risk