Principles of Management Exam 2 Ch.7-8
Machines guided by A.I. are faster and more powerful than humans when building and evaluating models and simulations to make predictions.
benefit of AI
Sometimes other issues will arise and take precedence.
disadvantage of group decision making
Kaitlyn received some constructive criticism from her boss during her annual performance review. She didn't hear anything else her boss told her during the review because she was busy explaining the reasons that her coworkers had prevented her from doing a better job.
take ownership and accept responsibility
Despite your best intentions, it's hard to bring the best evidence to bear on your decisions. Why?
There's too much evidence and there's not enough good evidence.
Organizations using a matrix structure
contain two command structures, in which some people report to two bosses.
Daveed works for a real estate company with a culture that values employees' ability to focus on the customer, react quickly, and deliver quality work on time.
market
The evacuation decision had ethical implications. Which of the following is not one of those ethical implications?
proper use of meteorological instruments
Instead of saying "but", try using "and."
build on the ideas of others
In this stage, the problem or opportunity is identified.
stage 1
This is related to who makes important decisions in the organization
Centralization vs. decentralization
Elision is tracking the number of hours of ethics education its employees earn.
Measurable and controllable activities
Patients complete online health profiles that inform massive health databases. This information is analyzed for patterns that help better predict disease.
Advancing Health and Medicine
A large metropolitan area uses transportation data to determine where new subway routes are needed in order to relieve commuter congestion.
Aiding Public Policy
There is a greater pool of knowledge to draw from.
advantage of group decision making
Assume that prosecutors allege that 20 percent of youth were exposed to vaping because of Juul's actions, and Juul counters that 80 percent of them were not exposed because of their actions. What decision-making bias would be presented by these statements?
framing
In the Management in Action case, it is apparent that Juul's CEO is unable to make a rational decision because of imperfect information, conflicting goals, and the complexity of the problem. There barriers are associated with
bounded rationality.
The ___________ bias promotes the use of stereotypes.
representative
People bring different perspectives
advantage of group decision making
Avoid immediately reacting to a suggestion with "that will never work."
defer judgment
The leadership team of Popso Soda Company includes a president and vice presidents of operations, marketing, human resources, and finance. Popso seems to utilize which type of organizational structure?
functional
This has to do with having the rights associated with managerial tasks
Authority, responsibility, and delegation
________ is a technique used to help groups generate multiple ideas and alternatives for solving problems.
Brainstorming
What was the problem with Boeing's strategic planning?
It did not match up with the company's values.
A group may bring greater intellectual stimulation.
advantage of group decision making
Uses a critic whose job is to explore all possible problems and counterarguments.
devils advocacy
Luc was recently honored at his company's annual awards ceremony with a "one year" plaque to symbolize his completion of his first year working for the company.
change and acquisition phase
Joseph works for a telecommunications company whose culture devotes considerable resources to hiring and developing employees.
clan
Victoria likes to work with others and enjoys social interactions with people at and outside of work. She likes to keep up with the latest trends, and she finds networking especially helpful for staying on top of new developments in the marketplace.
clan and adhocracy
Thomas just found out he was passed over for a promotion yet again. This is his third time going up for the job. He's now asking himself, "What did I say wrong in my interview?"
expand your perspective by asking different questions
Looking side to side along the line of an organizational chart, you can determine
the various departments or specializations of work.
Ms. Khurana has made public apologies on behalf of the company, instituted thorough internal investigations, and spends a few days each month meeting with small groups of Elision employees at multiple locations to explain how she's working to resolve ethical problems.
Leader reactions to crises
Try to focus on extending the ideas of other people.
build on the ideas of others
A small group of people may talk the longest and the loudest.
disadvantage of group decision making
Group members will strive for unanimity.
disadvantage of group decision making
Tariq has the chance to absorb some of his coworker's job duties while his coworker is on leave. Tariq is excited about the opportunity because it will give him a chance to learn a new role and expand his skill set.
display a proactive learning orientation
Aniyah has an entrepreneurial spirit and enjoys taking risks. She also believes in delivering work in an efficient and timely manner.
adhocracy and hierarchy
Each year, the Red Lobster restaurant chain awards the Lighthouse Award to store managers who demonstrate outstanding leadership and live the firm's core values. The Lighthouse Award is an example of
a celebration of important occasions and accomplishments in the organization's life.
Artificial intelligence is defined as
the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent human beings.
Which of the following is not a way for Scharf to inspire change at Wells Fargo?
stock price
Wallace works for an advertising agency whose corporate culture encourages employees to take risks and experiment with new ways of getting things done.
adhocracy
Alani accepted a job offer from Twitter and is currently taking part in their "Yes to Desk" onboarding program, which aims to get new employees ready to hit the ground running in their jobs.
encounter phase
This happens once an employee is hired and begins working, figures out what the organization is actually like, and adjusts his/her expectations accordingly.
encounter phase
The police chief mentions that unionized emergency personnel had already been deployed, so pulling them back would not be worth it. What type of decision-making bias does this represent?
sunk-cost
After finally deciding on what new car to buy, Declan told his friends and colleagues about it, but disregarded the things said by friends who didn't like the model he chose.
Confirmation Bias
Lavonna is a finance professor who is choosing a new PhD student as her mentee. She has GMAT scores and three recommendation letters for each person. Lavonna pays more attention to the letters mentioning work ethic than she does to formal scores - she believes hard work can make up for a lack of sheer cognitive prowess.
Different priorities
What is a sign that a group is suffering from groupthink?
Peer pressure makes members agree with the ideas of the other people in the group.
Elision employees now spend 4 hours of paid time each month engaging in continuing education that teaches them about ethics and social responsibility.
Role modeling, training, and coaching
Leaders should configure their firms' ________ to support firm strategies.
culture, structure, and HR practices
Which of the following is most likely a reason Ava is satisficing?
limited time
Without this, the organization begins to drift and become disorganized
Common purpose
Individuals do make a difference, but they cannot do everything themselves
Coordinated effort
This results in greater efficiency
Division of labor
Julieta believes she is a world-class singer. If Julieta has overconfidence bias, which of these is likely to happen?
Julieta will audition for a Broadway show, but will not get the part.
Assistant to the President: Ms. Fineberg has low work specialization and few rules in her position.
Simple Structure
Why weren't Boeing's goals SMART?
They were not realistic or attainable.
Lorah is reluctant to adopt AI for her business because her employees might worry about their job security. Which of the following statements is a truthful explanation about how AI benefits businesses?
AI enhances strategic and day-to-day decision making.
A national package delivery company relies heavily on a hierarchy culture to manage its vast and complex shipping processes. ________ are part of a hierarchy culture.
An internal focus and valuing stability and control
Pei is very people-oriented. When making decisions, he enjoys social interactions in which opinions are openly exchanged. He is receptive to suggestions and tends to avoid conflict.
Behavioral
Which of the following shows that operational planners could not keep up with strategic ones?
Boeing designers pushed out MAX blueprints at twice the normal rate, causing them to be incorrect or incomplete.
________ is the process of assigning managerial authority and responsibility to lower-level managers and employees.
Delegation
During a job interview, how can you demonstrate your decision-making skills?
Describe a time in which you used intuition.
Jarrod wants to hire a female assistant, even though several males have applied who are objectively more qualified. Jarrod just thinks women do a better job at this type of work than men.
Different cognitive capacity, values, skills, habits, and unconscious reflexes
_____________ contribute(s) to intuitive processes.
Feelings and experiences
Elision's values statement now begins with "Committed To Making Things Right" to signify that Elision wants to correct its past mistakes, and also operate in the "right" way in all its future endeavors.
Formal statements
When she was looking at leasing a new car, Rosa noticed that the car salesman focused more on the monthly payment than on the overall cost of the lease versus buying it outright.
Framing Bias
Harrison is retiring from a local bakery that has been in his family for four generations. Because he does not have an heir to whom he can pass the bakery, he is selling it to a young couple. When they meet to discuss the transfer of the business, what are some things that Harrison should share with the new owners about the success of his business?
Harrison should share the culture of the company through stories, rites, and rituals.
Without the right to direct the work of others, there is no coordination of effort
Hierarchy of authority
_______ bias occurs when someone uses information from the outcome of a decision, often a negative outcome, and retrospectively realizes what they should have done.
Hindsight
In which scenario do firms see the greatest performance increases?
Humans leverage leadership and teamwork alongside machines that enhance speed.
An organization uses sophisticated software and network analysis to identify, retain, and promote key influencers, knowledge-brokers, and talent across the company.
Improving Human Resource Management Practices
Elision has built thorough and validated integrity testing into its selection system for new employees.
Organizational goals and performance criteria
The walls at Elision were once covered with news stories, photos, and awards representing conquests and profits. The company is slowly removing these items, replacing them with reminders of the company's social impacts, as well as those of other organizations that have exemplified social responsibility.
Physical design
Trinity tried a new sales technique with a new client. It worked! She now assumes that this technique will also work with all of her current clients.
Representativeness Bias
Shuaifu wants to reorganize his beverage bottling company. Currently, there are HR, R&D, and purchasing units at each facility. Shuaifu feels that by bringing all of those key functions together in one location and deploying them to the facilities only when needed, he will save money and also create consistency. Is Shuaifu correct?
Yes, because the company will need fewer employees overall, saving money and allowing for consistency in processes.
Boeing's evaluation of the competitive environment after Airbus introduced the A320neo to the market portrays which step in the strategic-management process?
assess the current reality
Saburo, a server in a downtown café, is very popular with customers and employees. He has a warm personality and will always lend a hand when needed. Saburo has a supportive nature that leads people to confide in him. He does have a tendency to avoid conflict and finds it difficult to say no when he might hurt someone's feelings. Saburo likely has a(n) ________ decision-making style.
behavioral
Remember to avoid criticizing ideas during the initial idea-generating phase.
defer judgment
Attempts to identify a truth or best solution by exploring two opposite positions, called antithesis.
dialectic method
A.I. has the potential to replace many humans in the workplace.
drawback of AI
Tomas just started working for Facebook. He's currently taking part in their six-week boot camp to help new employees learn about their roles and the company's culture simultaneously.
encounter phase
Get excited about outrageous ideas.
encourage wild ideas
Madison and her colleague can't seem to agree on anything for their current work project and their disputes are holding up team decisions. Madison asks herself, "What am I forgetting to consider about my coworker's ideas that may help me to see their perspective and understand why they feel so strongly about it?"
expand your perspective by asking different questions
Patrick recommends that Julia implement culture change by utilizing which of the following?
formal statements
Freshii's organizational structure most closely resembles which of the following designs?
horizontal
Which of the following should be the first consideration when facing an ethical dilemma?
legality of action
Based on the Management in Action case and the competing values framework, what type of organizational culture did Wells Fargo have under CEO Kovacevich?
market
Make it clear that no one may interrupt another person who is sharing an idea.
one conversation at a time
Set ground rules such as "no disrespecting coworkers" before you begin brainstorming.
one conversation at a time
When acting upon the advice to organize your decisions into three categories, which type will require the most time and attention?
strategic decisions
Which of the following presented a barrier to rationale decision-making at Boeing?
time
After a crisis, Bagel Bank hired Caitlin as its new CEO. Caitlin's interactions and behaviors as the new CEO will signal whether she intends to change the organizational culture.
true
Based on what you've learned about the flow of organizational culture, all of the following contributed to problematic group and social processes at Wells Fargo, except
work attitudes and behaviors.
After you start a new job, how can you assess whether you are a fit?
Ask yourself, "Do my values align with the organization's values?"
V.P., Television Division: Mr. Hernandez oversees the television division.
Product Division
Elision is working to reduce its ecological footprint. The company has instituted a program where employees can receive bonuses based on their ridesharing, recycling, and waste reduction efforts.
Rewards, titles, promotions, and bonuses
One of the parents at the school is an expert on pay equity. Shaima sets up a meeting with him to discuss the situation and ask for guidance.
Seek advice or feedback
Dean brings up the ambiguity branch managers at First National Bank face. He believes senior leadership needs to make it clear what managers' most important priorities are. This thinking most closely resembles which of the following principles?
There needs to be a link among strategy, culture, and structure.
Miranda works for a new entrepreneurial company that is characterized as being creative, making innovative products, and being adaptable in the marketplace.
adhocracy
When she traveled to Australia on business recently, Cori assumed the weather would be the same as her home in New York. She soon found out it was winter in Australia.
Availability Bias
According to Harvard Business Review, increasingly stringent regulations and the 24/7 news cycle are driving reasons for the increase in
CEO firings due to ethical lapses.
One possible solution is to increase tuition in the coming year in order to be able to raise the pay rates of the other teachers to be more in line with the potential new hire. Shaima wonders if it's worthwhile to possibly upset parents with a tuition hike if the students are exposed to more qualified teachers in the long term.
Conduct a cost-benefit analysis
V.P., Commercial Accounts: Ms. Nguyen is the head of commercial accounts.
Customer Division
Elision is adopting new software that will allow its compliance division to better track employee transactions.
Organizational systems and procedures
After a couple of weeks in his class in corporate finance, Milo decided he should be able to do just as good of a job at making investment decisions as his broker.
Overconfidence Bias
Predictive Health, a fast-growing medical research firm, has accumulated so much patient information that conventional database management systems cannot handle its needs. Therefore, Predictive Health purchased very sophisticated analysis software and supercomputing-level hardware to leverage the power of
big data.
Based on the case, before Scharf took over at Wells Fargo, decision making at the bank was more
centralized.
Francisco's subordinates are clashing over the fact that Dean believes in ________ authority while Charlotte is advocating for ________ authority.
centralized; decentralized
Henley has been with her current company for about six months and is no longer feeling like a "newbie." She's setting short- and long-term performance goals with her supervisor for her primary work projects.
change and aquisition phase
Based on what you've learned about Freshii, what type of culture does it have?
clan
Caprice works for a regional airline whose corporate culture encourages employees to collaborate and become involved to increase their job satisfaction.
clan
You work best when your tasks are highly structured. You also enjoy learning and want to continue to develop as a professional.
clan and hierarchy
The tutoring service, Prep2Learn, organizes based on its customer divisions. Which of these divisions would you expect for the Prep2Learn?
elementary, high school, college, adult learners
Charlotte complains that a lot of turnover is coming from branches that used to be First American before the merger. She claims that the employees there were not used to so much oversight and had more authority. Based on this information, First American highly valued
delegation.
Gets its title from a practice used by the Roman Catholic Church.
devils advocacy
One person presents his or her critique to the key decision makers.
devils advocacy
Decisions may be made quicker using satisficing.
disadvantage of group decision making
If Julia releases a formal statement, which level of organizational culture is she affecting?
espoused values
The Hot Topic corporate headquarters is home to ________ that include open plan offices, a sophisticated gym, colorful murals, and many creative touches by employees who are encouraged to personalize their work spaces.
observable artifacts
Leadership is an example of __________ knowledge.
tacit
Nishka was looking at buying a new car. After seeing the sticker prices on really expensive models, the lower cost models looked even more attractive!
Anchoring and Adjustment Bias
Ursula has a high tolerance for ambiguity but focuses on technical aspects more than social aspects. She is a careful decision maker, taking longer to make decisions but acting well in new situations.
Analytical
When analyzing the ethical implications of a proposed action, one should weigh the effects of the decision on shareholders versus the effect on
All of these choices are correct.
Grace has a high tolerance for ambiguity and tends to focus on the social aspects of a situation. She is willing to take risks and is good at finding creative solutions to problems.
Conceptual
Shaima compares the positives of attracting a highly qualified candidate by paying them well above the normal rate, with the negatives of not hiring this candidate.
Conduct a cost-benefit analysis
Ellis has a low tolerance for ambiguity. He is efficient, logical, practical, and systematic in his approach to solving problems.
Directive
A food processing company tracks environmental conditions in its warehouses and uses the real-time data to adjust for any factors that may impact the quality of production.
Enhancing Production Efficiency
Broderick, as head of company benefits, is choosing a new healthcare plan for all of the company's employees. He has stacks of thick policy manuals on his desk reaching up to the ceiling. There is no way he can get through all of it alone. But he decides to do the best he can because he'd rather not take other benefits workers off of their already busy workloads.
Information overload
At the monthly board meeting, Shaima seeks feedback from the school's board members on her pay dilemma.
Seek advice or feedback
Participating in making a decision helps promote commitment to it.
advantage of group decision making
What decision-making style most likely requires the most amount of data analysis?
analytical
Shaima considers whether she should put the hiring process on hold. It's possible that other teachers will apply for the job who would be more likely to sign on at the school's regular base pay rate.
analyze the situation
Shaima pulls historical salary data on all of her staff to assess everyone's current level of hourly pay, based on their years of service. She wants to assess how much of a problem it may cause if she started this new teacher out at $23.00 per hour.
analyze the situation
People may be able to spend less time on the unenjoyable parts of their work and more time doing things they enjoy.
benefit of A.I
A.I. has the potential to aid in human decision making.
benefit of AI
A.I. sensors have the potential to make commuting safer and easier.
benefit of AI
In thinking through the situation, Shaima wonders what Tayna, her mentor and the school's former director, would have done in this situation.
consider what others would think
Shaima has always used the transparent compensation system because she believes strongly in being fair with her staff. They may not make as much as teachers at some other schools, but they are happy and are all treated equally. She wonders if hiring someone at an above-normal rate would change this.
consider your values
After the candidate declines her offer, Shaima sits down with her staff at a meeting and discusses the situation. She lets them know her thought process and that she ultimately decided it was more important to maintain equity and culture than to pay more for someone with higher credentials. They all discuss the outcomes of this situation together.
decide, observe consequences, post-mortem
Managers structure decision dialogue in a group around two opposing viewpoints.
dialectic method
Originated in ancient Greece and is used by the modern U.S. court system.
dialectic method
Juul's CEO was forced to quickly respond to the increased scrutiny the company was facing. Which decision-making style allows senior leaders to quickly act?
directive
There is the potential for A.I. to be put to malicious use.
drawback of AI
If an organization uses customer data, as described in the video, to predict future behavior and anticipate the consequences of change, it would be engaging in which of the following?
predictive analytics
Juul's use of evidence-based decision making is most evident in which of the following actions?
sending scientific studies to the FDA
Look for difficulties that inhibit goal achievement. These include things like high staff turnover, competitor innovations, and sales shortfalls.
stage 1
Search for possibilities to exceed existing goals. This requires looking past the barrage of daily problems and figuring out what you can do better than expected.
stage 1
Thinking of alternative solutions takes place in this stage.
stage 2
Use techniques like brainstorming to generate alternative solutions to solving your current problems.
stage 2
Take time to carefully plan out your chosen solution.
stage 4
Based upon what you know about SWOT analysis, Boeing would view the Airbus A320neo as a(n)
threat.
Assume that as part of Scharf's reorganization of Wells Fargo many managers now report to both functional and divisional supervisors. What type of organizational structure does this portray?
matrix
Managers are encouraged to email one subordinate each week who they've noticed is doing the right thing, even when it's difficult, and congratulate them. Managers copy Khurana on the email so that she is aware of the employees' choices and able to congratulate them herself.
Rites and rituals
Learning about an organization that takes place before an employee joins the organization. Information can come from web searches, current employee contacts, advisors, etc.
anticipatory phase
Praise people for thinking totally outside of the box.
encourage wild ideas
Ben recommends that Julia implement culture change by utilizing which of the following?
role modeling, training, and coaching
Ashton, a graphic designer, enjoys working for Eleanor Advertising because of the flexibility of its management and its culture which encourages risk taking, innovation, and creativity. Ashton gets quick answers from his boss, allowing him and Eleanor Advertising to quickly respond to changes in the marketplace. Eleanor Advertising is an example of an adhocracy culture.
true
Freshii emphasizes a lean management structure. This means that span of control at Freshii is generally
wide.
LaShawn and his partner, Nathan, have decided to update their firm's computer network, although they have no expertise in this area. Recently, they discussed the many constraints on their decision, such as the complexity of technology, limited time and money, imperfect information, and our conflicting goals. These limitations are hindrances to
rational decision making.
Kade, who manages a hotel, was recently explaining to Deja, a regional manager, his quandary about whether to fire a front desk employee about whom several guests had complained. Kade described, "I first identified the problem as poor customer service, and then I brainstormed several solutions. I evaluated each alternative, and then I implemented my decision not to fire the employee. Instead I provided him with additional training. Finally, I followed up with an evaluation to see if his customer service skills had improved." Kade is applying the
rational model of decision making.
Consider how those affected by your solution will feel about any changes, and give them the necessary latitude.
stage 4
If the FDA rejects Juul's application, CEO Crosthwaite will be back to which stage of the rational decision-making model?
think up alternative solutions
Annice, as CIO, is taking her company's training fully digital. She is being courted by four different learning technology companies and has to choose a platform from one of them. She has never used any of the platforms and knows that she couldn't possibly foresee all of the things that will annoy her employees about each platform until she chooses one and they start using it.
Imperfect information
Lowe's uses the data it collects from customers' MyLowe's accounts in order to better target advertising and sales campaigns to specific customers.
Meeting Customer Needs
Which of the following is an example of tacit knowledge?
managing an angry customer
In this stage, alternatives are evaluated and a solution is selected.
stage 3
Which of the following was Mandy most focused on in the video?
Churnout's espoused and enacted values match.
The company's compliance division is making suggestions for delayering and reconfiguring that will help employees know where to go when they have questions and concerns.
Organizational structure
A company's rites and rituals might include
an annual employee-family picnic.
Daniel is searching for a job and finds an organization he's interested in working for. He reads through current employee reviews of the company online and peruses the company website.
anticipatory phase
Savannah is in her third round of interviews at ABC corporation and thinks she may like working there but would like more information. A former classmate already works for the company, so Savannah reaches out to her to find out more information about the organization's culture.
anticipatory phase
This occurs once an employee has been with the organization for a while and has a good understanding of his/her work role. Focus shifts to mastery of skills and adjusting to work group's values and norms.
change and acquisition phase
Wren's company has instituted a new once-per-month continuing education requirement for all employees. Wren is a high performer and doesn't want to waste her time at training. She's confident she already knows everything she needs to know to do her job well.
display a proactive learning orientation
Based on the competing values framework, Wells Fargo's strong sales-based environment between 2006 to 2015 portrays a ________ culture.
market
The organizational structure of Sunset Lawncare, a sole proprietorship that uses contract labor, is centered on the owner who makes all the decisions, sets the few rules, and assigns tasks as needed to the workers. Sunset Lawncare's structure is best described as
simple.
Think creatively about what you can do to solve problems you've identified.
stage 2
Ethan let his team down today when he showed up to a client presentation completely unprepared. He apologized to his team members for his mistake and told them he had no excuse. He made a commitment to not let them down again.
take ownership and accept responsibility
Phoebe's department at work has gotten out of control. Everyone is fighting for resources, factions are forming, and no one is getting any real work done because of all of the interpersonal problems. She decides it's time to hire some new blood, even though the issues are so complicated that no one really has a good idea of what the department needs.
Complexity
Nickole is ready to fire one of her employees. He is a terrible manager, unkind to his subordinates, and performs fairly poorly year after year. Nickole brings the issue to her supervisor who asks her to hold off on firing the worker because he has connections that the company wants to continue to use.
Conflicting goals
Smiles Academy sends out a quarterly newsletter to its staff and parents. Shaima wonders how she would feel if a decision to pay a new teacher at $6.00 per hour over the standard new teacher rate were posted in the upcoming newsletter.
Consider what others would think
Much to the dismay of her friends and colleagues, Amara decided to change cellphone carriers. She wasn't happy with the new service, but continued to use them rather than switch back to the carrier all of her friends wanted her to use.
Escalation of Commitment Bias
Zion took his older car to a mechanic and had his transmission rebuilt (a somewhat costly repair). The next week, his brakes quit working. Instead of trading the car in, he put in new brakes as well, since he had already fixed the transmission.
Sunk-Cost Bias
Participating in making a decision helps in understanding the rationale for it.
advantage of group decision making
When applying for jobs, job seekers often focus on a desired salary while ignoring other aspects of the job offer such as benefits, fit with the job, and working environment. In many cases, the salary may be good, but there are other, negative features of the job not being considered. This is an example of
anchoring bias.
Lottery organizers heavily promote the jackpot winners so that people are continually hearing about those who've won big. By contrast, players hear almost nothing about the vast majority of people who haven't won a single dollar. This tactic draws upon which type of bias?
availability bias
What the staff and parents love most about Smiles Academy is the family-like atmosphere at the school. This has always taken precedence over things like being the highest paying pre-school for teachers.
consider your values
If a proposed action does not _____ shareholder value we should refrain from doing it.
maximize
Decide whether a solution you've generated is the right thing to do. In other words, is this an ethical solution to a problem?
stage 3
Evaluate a solution based on whether it's actually feasible. Do you have the time, resources, etc. to make this work?
stage 3
Paige, a business executive, uses data to inform her on the best advertising decisions to make. Based on what you've read in the chapter, Paige most likely engages in
evidence-based decision making.
V.P., Human Resources: Mr. Allen is the top human resources executive.
Functional Structure
V.P., European Market: Ms. Orlov is in charge of the company's European markets.
Geographic Division
Ming-Na, a marketing data analyst with Robust Brews Coffee, was tasked with determining if customers liked the new blond roast blend. According to Robust Brews' sales data, over 4,000 customers purchased the new coffee last month. If Ming-Na surveys 25 of those customers to determine if they like the coffee or not, she will most likely suffer from confirmation bias.
false
A new company offering office supplies opened up and Sai decided to try the new vendor, not knowing if their service would be any good. After a few months of good service, Sai looked back and felt he knew he had picked a winner all along.
Hindsight Bias
Brianna's new supervisor is changing quite a few of her division's routines and procedures. Brianna is looking forward to seeing how these changes might positively impact her workgroup and knows that pretty soon, the changes will feel normal.
focus on being optimistic
Morgan is frustrated by his company's new performance incentive program because he doesn't think it accurately captures his high level of performance. He wants to go back to the old system and has been expressing his displeasure to his coworkers several times a week for the past two months.
focus on being optimistic
Seamus, the manager of a kitchen supply store, is stressed that his store may soon be closed by corporate. Seamus has not been sleeping well, and his anxiety and irritability are quite severe. On several occasions this month, Seamus has missed important details in his job. Today the district manager is coming to Seamus's store to perform a quarterly review. Seamus is worried the district manager may show an availability bias by
focusing on performance data from only the last few weeks.
Global IT has designed its corporate structure with divisions based on their location. For example, there are the Southern and Northern Divisions, and globally there are the European Division and the Asian Division. Global IT is an example of a structure with
geographic divisions.
Get people to move beyond their one or two favorite ideas by requiring ten or more ideas from each person.
go for quantity over quality
A team of HR professionals is reviewing options for the new benefits package. During their first meeting, Evona suggested offering the contract to HealthPlus HMO, and the others agreed with Evona for the sake of unanimity, without ever researching or analyzing the decision. Evona and her team are engaged in
groupthink.
DeAndre loves sales because he responds well to the pressure he faces in the many new or uncertain situations he encounters as a salesperson. Because DeAndre has an analytical decision-making style, he probably
has a high tolerance for ambiguity but struggles to make decisions quickly.
Aaron works for a computer company whose corporate culture is characterized by a formalized, structured work environment aimed at achieving effectiveness.
hierarchy
Leslie works for a pharmaceutical company with a corporate culture that institutes a variety of control mechanisms to measure efficiency, timeliness, and reliability in the creation and delivery of products.
hierarchy
The Safety Committee, a temporary team at Quantum Mechanics, was established to make the factory floor a safer place. Members of the committee still work in their departments full-time, but they meet twice a month for a few hours as a committee. The Safety Committee is an example of a ________ within an organization.
horizontal design
Olivia works for an investment firm with a culture that focuses on productivity and profits over employee development and satisfaction.
market
Brandon prefers the chance to perfect the job he's currently doing, rather than being pressured to constantly change the way he does things. He also works well under pressure and is driven by success.
market and hierarchy
Branch managers at First National Bank report to both a retail banking manager and a central operations officer. One of the managers is focused on sales and the other on control measures. What type of organizational structure does this most closely resemble?
matrix
Alonso is preparing for the grand opening of his wild animal sanctuary. He has wants to invite local politicians, animal rights activists, journalists, and his investors to the event. Because of all the important tasks that need done before the grand opening, Alonso cannot spend too much time searching for the best invitation, so he follows the satisficing model by
ordering some that seem fairly nice and have animals on them.
At the beginning of the video, Ava does not properly follow the third step of the rational decision-making process. What did she do wrong?
She quickly jumped to the solution of ordering an evacuation.
At the end of all meetings at Elision, attendees have started saying "We Stand UP" in unison. This reminds employees that the company wants to be upstanding in its endeavors as they go forth to tackle their jobs.
Slogans and sayings
This is linked with whether the structure is taller or flatter
Span of control
Word about Khurana is spreading among employees after many have found news articles outlining her reputation for integrity, personal philanthropy, and willingness to turn down profitable opportunities when an ethical problem exists.
Stories, Legends, and Myths
Data hunters review large amounts of data and discover what people may be interested in. This is known as
data analytics.
Freshii headquarters uses a flat organization, which means decision making is more
decentralized.
Shaima extends an offer to the candidate at the regular $18.00 per hour base pay rate. He respectfully declines the offer and instead takes a higher paying job at another pre-school.
decide, observe consequences, post-mortem
It is costly and difficult to train and implement machine learning systems.
drawback of AI
Based upon the 737's safety history, Boeing felt was impossible for them to do wrong, even as they tinkered with the aircraft's design. What type of bias did this represent?
overconfidence
Tech giant, TimeHop, was concerned about creating a workspace that was inviting and encouraged collaboration. Knowing that most of its employees would work odd hours, there was care taken to lighting choices and types of furniture. TimeHop was concerned with
physical design.
Mario, the owner of Shear Delight Salon, has asked you to consult on his business. Shear Delight employs five stylists, two shampoo techs, a massage therapist, and a receptionist. Mario asks for your advice on whether he should hire a manager. What advice would you give him?
The salon is small enough in size that it can be maintained as a flat organization without a middle manager.
Tony needs to decide on a new copy machine for his office. This is a several thousand dollar decision and he wants to be sure he buys a machine that has the best features for all of the employees. But he limits himself to 8 hours for his search, because time spent finding a copier is time lost on important work.
Time and money constraints
Henry is proposing to change the manufacturing process at his organization's cement production plant in order to reduce carbon emissions. This change will cause additional expenses for the organization but will make the plant more environmentally friendly. Which of the following questions is Henry analyzing?
Would it be ethical not to take action?
Which of the following is not an advantage to including the Mayor and Police Chief in the decision-making process?
authority to make the decision
Avery's work team just found out they've gone way over budget while working on a new initiative. Upon this realization, Avery asked the group to conduct a brainstorming session around the causes of exceeding the budget. The group then brainstormed solutions to the top three causes.
be more resourceful
Isla's virtual team is researching new software programs that they hope will allow them to work simultaneously on projects. After spending a few days trying one they hoped would work, they've realized it's not the right fit for their needs and they've wasted days on it. They spend the rest of the week venting over email about their frustrations.
be more resourceful
Set up poster boards and use different colors for different types of ideas.
be visual
Use multi-colored markers on your brainstorming whiteboard to get people to think more creatively.
be visual
Indra, a loan officer with First Star Bank, was asked by a customer if First Star would join the Chamber of Commerce to meet potential customers and become more embedded in the local community. Believing this is a great idea, Indra approaches her manager, Deondre, about joining the Chamber. Deondre said to Indra, "Because the cost of membership is over $1,000 and you will have to leave the office to attend meetings, I will have to get approval from the vice president above me." First Star Bank is an example of an organization with
centralized authority.
Frank likes to work in a fun atmosphere where there's a good amount of healthy competition between employees and where everyone is highly involved with the organization.
clan and market
Julia and Ben have different views of company culture. Julia believes in more of a ________ culture, while Ben is a supporter of ________ culture.
clan; market
The ________ model assumes managers will make logical decisions that are the optimal means of furthering the organization's best interests.
classical
Encourage your team to each come up with as many ideas as they can in three minutes.
go for quantity over quality
If Juul simply settled on suspending all broadcast, print, and digital product advertising in the United States instead of finding other, more creative solutions to the youth vaping epidemic, they would be exercising
satisficing.
Haya operates a car dealership, and she has been working to come up with ways to overcome the incredibly high competition her business faces. There are six other dealerships within a one-mile radius. So far, Haya has thought of doing a car giveaway event, adding extended warranties on every new car that is sold, or running advertisements through the mail. Haya is at which stage of the decision-making process?
thinking up alternative solutions
Byron has noticed that, lately, there is less traffic congestion on his commute and that his commute time is shorter. If Byron suffers from confirmation bias, which of these is true?
Byron recently started working the overnight shift, and traffic is always lighter at night and in the early morning hours.
Samuel has been working for Lyft for three months. He expected that his job would be to respond to requests on the app for a ride, pick up fares and drop them off at their desired locations, but he is realizing that the job entails much more. Which of these is most characteristic of the encounter phase of organizational socialization?
Samuel learns that he must keep his car clean and neat, and some days he will be assigned to complete only airport pick-ups and drop-offs.
To make picking orders more efficient, Amazon uses ________ to bring items from all over the warehouse to the packing area and then return the bins to storage.
autonomous devices
Jayden is very comfortable taking initiative and doesn't require a lot of direction on work projects. She is also goal-oriented and enjoys competition.
market and adhocracy