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Exam 7: Individual and Group Decision Making: How Managers Make Things Happen

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Question 41

Multiple Choice

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_____ is the idea that proposes that the ability of decision makers to be rational is limited by numerous constraints,such as complexity,time,cognitive capacity,values,skills,habits,and unconscious reflexes.

A) Rational decision making
B) MBO
C) Nonrational decision making
D) Analytics
E) Bounded rationality

F) B) and D)
G) C) and D)

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Question 42

Multiple Choice

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Don,a new manager,commented to a friend,"I am excited about different aspects of my new job.The company computers have entered the field of decision making.The network not only collects information more quickly,but the system also reduces the roadblocks when I need a group consensus." Don is referring to

A) the Delphi technique.
B) collaborative management.
C) brainwriting.
D) a decision support system.
E) brainstorming.

F) B) and D)
G) B) and C)

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Question 43

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Sam was recently promoted to the production manager of a busy shoe factory.He was chosen because prior to his promotion he had proven himself to be very efficient,and as a department manager he had a logical and practical approach to solving problems.Sam has a reputation for being decisive and getting things done.Most of the factory's employees like Sam,but they feel his style is autocratic,because he likes to do things by the book.Sam has a(n) ______ style.

__________ is the tendency for people with strong prior beliefs,when confronted with a choice,to make their decisions based on their beliefs even if their beliefs are false.

Summarize the four decision-making styles.For each style,explain the extent to which a person has a high need for structure,control,and ambiguity in his or her life.Then,identify which decision-making style each of the following managers has:

José,the sales manager for a software development firm,is working on the problem of increasing sales by using the rational model of decision making.In the first step he identified the problem of his employees needing more training.In the second step he thought of alternative solutions;and in the third step he evaluated alternatives and selected a solution.José needs to _____ in the fourth and final step.

_____ is the process of studying large amounts of data of a variety of types to uncover hidden patterns,unknown correlations,and other useful information.

With defensive avoidance,a manager "acts" by _______ when he or she can't find a good solution to a problem.

BP and Halliburton executives made the decision not to invest in the oil well blowout preventer that experts believe would have prevented the Deepwater Horizon oil rig explosion and fire off the coast of Louisiana.The executives made their decision based on their belief that their decision would have no great negative consequences.Their decision is an example of

Peter,the owner of a local real estate agency,is even more committed to making the used copier,which he recently purchased,work even though it keeps jamming,and his employees have been telling him about other problems they have been having with the copier.The ______ affects Peter's decision making.

Which of the following is an example of the "curse of knowledge"?

Paula,the controller of Tasty Pizza,is purchasing several new delivery vehicles.Paula has numerous work responsibilities,so she has limited time to shop for cars.Because of the time constraints,she cannot make an extensive search for the best alternative,so she looks for cars until she finds a model that is satisfactory.Paula is following the _____ model.

_____ are difficulties that inhibit the achievement of goals.For example,the lack of parking may be the main reason why a new restaurant is failing.

______ is a data-mining technique used to predict future behavior and anticipate the consequences of change.

Phil,the store manager,recently had to fire Sue,an employee who graduated from North College.He felt that Sue was not well trained at her school.So when Steven,also a graduate from North College,applied for Sue's old position,he did not want to consider hiring him,feeling Steven also probably did not receive the proper training.Phil was affected by _____ bias.

The rational model assumes that managers have complete information,are able to make an unemotional analysis,and are able to make the best decision for the organization.

Debbie likes working in the banking industry because it has a lot of structure and certainty,and the daily work is routine.Debbie probably

Confirmation bias-seeking information to support one's point of view.For example,a manager looks only for data that supports his recent customer service strategy,rather than information that is counter to it.

Susanne,the CEO of a national IT manufacturer,was approached by Simple Phones,a new company that is marketing a new type of phone,to partner with the company on a project.The results of the partnership are uncertain because the company (Simple Phones) and its technology are new.Susanne is uncertain what to do because she is limited by numerous constraints,such as the uncertainty and complexity of the technology,the management success of Simple Phones,and time (because other companies are interested in the partnership) .Susanne is experiencing

Managers with a low tolerance for ambiguity and an orientation toward task and technical concerns when making decisions have an analytical decision-making style.