MGT Chapter 7

When a manager makes a decision based on the strong beliefs she already has, she is guilty of a prior-hypothesis bias

TRUE

You have surveyed all of your close friends, and they all prefer ice cream to frozen yogurt. Thus you should be confident that everyone prefers ice cream; that is, this is a representative sample of adequate size

FALSE

The process of identifying and choosing between alternative courses of action is known as option evaluation

FALSE

Politics has provided evidence that appeals to emotion are more effective than appeals to logic in decision making

TRUE

Experts may make irrational decisions because they are unable to see things from an outsider’s perspective

TRUE

The rational model of decision making assumes that managers will choose the available alternative that best supports their existing beliefs

FALSE

The first step in the rational decision making process is to think up alternative solutions

FALSE

The final step in the rational decision-making process is to implement and evaluate the chosen solution

TRUE

Opportunities should be identified in the alternative evaluation stage of the decision-making process

FALSE

Analyzing the underlying causes of a problem or an opportunity is called diagnosis

TRUE

Women investors make trades much less often than men, do a lot more research, and have better returns on average

TRUE

When evaluating alternatives in decision making, you must assess cost and quality and also ask the question, "Is it simple?

FALSE

For implementation of a chosen solution in decision making to be successful, you need to plan carefully and be sensitive to those affected

TRUE

Customers who experience poor customer service are more likely to tell the company about it than to tell family or friends

FALSE

If a chosen alternative is implemented and it does not appear to be working, you may need to give it more time

TRUE

The rational model works well even with the incomplete information and uncertainty about consequences that managers often face

FALSE

Nonrational models of decision making describe how managers should make decisions rather than how they actually do

FALSE

The incremental model is a nonrational model of decision making

TRUE

Sandra did an Internet search for Jamaican hotels when she was setting up her vacation, but found over 7 million results, of which she could only handle looking at about two pages. Sandra is operating under conditions of bounded rationality

TRUE

Satisficing occurs when a manager takes small, short-term steps to alleviate a problem.

FALSE

In time-critical situations, satisficing may be a good approach to decision making

TRUE

One problem with the incremental model is that temporary steps may actually impede a beneficial long-term solution

TRUE

When then-president of Chrysler Bob Lutz ordered the development of the Dodge Viper without supporting research but because it "just felt right," he was using the incremental model of decision making

FALSE

Intuition based on feelings rather than expertise, or the involuntary emotional response to those feelings, is known as automated experience

TRUE

The drawback of using the intuition model of decision making is that it can be difficult to convince others that your decision makes sense

TRUE

When QVC experiments with which products it will sell on its television shopping network and follows this up with analysis of why some sell and others don’t, it is using evidence-based management

TRUE

Understanding how to use failure is an important implementation principle for evidence-based management

TRUE

To effectively use evidence-based management, the more evidence you can gather, the better

FALSE

Evidence shows that firms that announce layoffs have higher stock prices than their peers, both in the near term and over time

FALSE

Portfolio analysis is an example of the incremental model of decision making

FALSE

Analytics have been used in baseball and basketball to find undervalued players that could help teams that had limited resources to pay superstars

TRUE

Capital One uses predictive modeling by conducting experiments to evaluate which customers will sign up for credit cards and pay back their debt

TRUE

A recent study says that the world’s information is doubling every seven years

FALSE

Risk propensity is the willingness to gamble or to undertake risk for the possibility of getting an increased payoff

TRUE

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

FALSE

A person with a directive decision style is efficient, logical, practical, and systematic in her approach to solving problems

TRUE

A directive individual takes longer to make a decision than an analytical one

FALSE

The conceptual style of decision making is the most people oriented of the styles

FALSE

Most managers have just one dominant decision-making style

FALSE

You can increase your ability to influence others by being aware of decision-making styles

TRUE

To be compliant with current federal legislation, all for-profit companies are required to have an ethics officer

FALSE

A cost-benefit matrix is a graph of decisions and their possible consequences and is used to create a plan to reach a goal

FALSE

Studies show that even severe life events have a negative impact on one’s sense of well-being for no more than about three months

TRUE

Relaxed change is one type of effective response for a manager to take when confronted with a challenge

FALSE

Yichao, a manager of a downtown hair salon, has been procrastinating about a problem. Over the past year, his company has seen a high rate of customer defections, and even the loss of some of its best stylists. Still, he hasn’t even begun to investigate the issue. This is an indicator of relaxed avoidance.

FALSE

Importance of the situation, the credibility of the information about it, and the urgency of it should be considered in the decision about whether to decide

TRUE

Heuristics are strategies that simplify the process of making decisions

TRUE

When managers use information that is readily available from memory to make judgments, it is known as a confirmation bias

FALSE

Being "loss adverse" and hating to admit you’re wrong can contribute to the escalation of commitment bias.

TRUE

Groups make better decisions than most individuals acting alone

TRUE

A disadvantage of group-aided decision making is that groups tend to suppress an individual’s intellectual stimulation and creativity

FALSE

The tendency for group members to agree for the sake of unanimity and thus avoid accurately assessing the decision situation is called satisficing

FALSE

Where time is of the essence, in most cases an individual should make the decision rather than a group

TRUE

Smaller-sized groups make higher-quality decisions

TRUE

Fawaz is contemplating a couple of new options for the order takers that he manages. There is no great urgency in the situation; he just needs to have a procedure in place within a couple of months. Fawaz would be wise to make this decision by himself

FALSE

Participative management has a large effect on job performance and job satisfaction

FALSE

Consensus occurs when group members are able to express their opinions and reach agreement to support the final decision

TRUE

Middle and supervisory managers may be a source of resistance in participatory management

TRUE

Keep in mind the importance of maintaining group relations; don’t stand in the way of a group trying to reach consensus

FALSE

Putting questions to a vote is a good method to help a group reach consensus

FALSE

Brainstorming is a technique used to help groups generate multiple ideas and alternatives for solving problems.

TRUE

Heuristics is a technique in which members of a group come together over a computer network to generate ideas and alternatives

FALSE

Group-driven computer-aided decision systems ask participants to answer predetermined questions on electronic keypads or dials

FALSE

Which of the following statements about biased decision making is true?

A. Hindsight helps you correctly assess what you should have known beforehand.

B. When you are making a decision and you have considerable experience in that area, you are then most likely to be overconfident.

C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false.

D. Sometimes a single event can allow you to determine the trend.

E. You could confidently make a decision about something by asking 20 of your friends and deciding based on their preferences.

C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false.

Which of the following is a step in the rational decision-making model?

A. Seek consensus among leadership.

B. Identify the problem or opportunity.

C. Improve the chosen solution.

D. Test solutions on a small scale.

E. Implement a holding pattern.

B. Identify the problem or opportunity.

The rational model of decision making is also called the ______ model.

A. Balanced

B. satisficing

C. Incremental

D. classical

E. intuitional

D. classical

Diagnosis is used in which stage of the rational decision-making model?

A. Identify the problem or opportunity

B. Think up alternative solutions

C. Evaluate alternatives

D. Select a solution

E. Implement a solution

A. Identify the problem or opportunity

Which of the following is true about women investors?

A. They tend to trade more often than men.

B. They do less research before investing than men.

C. Their portfolios have a higher average gain than men’s.

D. They are increasingly being drawn to careers in finance.

E. They tend to chase "hot tips."

C. Their portfolios have a higher average gain than men’s.

When evaluating a solution in decision making, answering yes to which of the following questions should cause you to reconsider choosing it?

A. Is there enough time?

B. Are the costs reasonable?

C. Is it ethical?

D. Is the technology available?

E. Do you consider it merely "good enough"?

E. Do you consider it merely "good enough"?

In the final stage of the rational model of decision making, you should

A. provide justification for the choice.

B. select a solution.

C. seek high-level support.

D. evaluate the results.

E. identify the winners and losers.

D. evaluate the results.

Which of the following is NOT a recommended option when you discover that an action is not working after a decision?

A. Give the chosen solution more time.

B. Abandon the solution in favor of the status quo.

C. Try another alternative.

D. Go back to the beginning of the decision-making process.

E. Change the chosen solution slightly.

B. Abandon the solution in favor of the status quo.

Which of the following is an assumption upon which the rational model of decision making rests?

A. Decision makers can logically evaluate the alternatives.

B. Consequences of any actions cannot be known.

C. Decision makers typically have emotional blind spots.

D. A decision maker will choose the option that is most ethical.

E. Decision makers are unable to process all of the available information.

A. Decision makers can logically evaluate the alternatives.

Which of the following is one of the nonrational models of decision making?

A. Boundary

B. Classical

C. Goal displacement

D. Satisficing

E. Attitudinal

D. Satisficing

The concept of "bounded rationality" is most closely related to the _________ model of decision making.

A. classical

B. rational

C. Satisficing

D. Incremental

E. intuition

C. Satisficing

Nicole and other managers in her firm have some ties to Europe and are investigating opportunities for global expansion. They are struggling to understand the risks, given the complexity of world markets today and recent global instabilities. The difficulty Nicole’s team is facing prevents perfectly rational decision making, and is an example of

A. risk aversion.

B. bounded rationality.

C. groupthink.

D. defensive avoidance.

E. anchoring and adjustment.

B. bounded rationality.

Alexis manages a clothing store in the mall. They were understaffed, and she thought she would have to work all day and help close the store that evening until a young man came in for an application around noon. Alexis told him he could have the job if he could come back at 4 p.m. to begin work. Here, Alexis was engaged in

A. relaxed avoidance.

B. confirmation bias.

C. satisficing.

D. heuristics.

E. analytics.

C. satisficing.

Which of the following is NOT a hindrance to perfectly rational decision making?

A. Conflicting goals

B. Imperfect information

C. Information overload

D. Limited cognitive capacity

E. Lack of intuition

E. Lack of intuition

The incremental model of decision making suggests that managers make decisions by

A. using processes that have worked in past experience.

B. experimenting with alternatives in a controlled setting, one by one.

C. choosing something that is "good enough."

D. taking small steps to alleviate a problem.

E. involving several lower-level employees.

D. taking small steps to alleviate a problem.

Jerome’s accounts payable department is behind schedule as the month-end close is approaching. This has been happening every month, but he hasn’t found time to provide additional training. Instead he asks all of his employees to work eight hours of overtime that week and reassigns some tasks. This is an example of using the ________ model.

A. rational

B. predictive

C. intuition

D. Incremental

E. coalition

D. Incremental

Jenna manages a retail store and she has been noticing long lines at checkout lately. She is unsure about increasing staffing levels right now, so she chooses to reconfigure the physical orientation of the checkout space to alleviate the problem for the time being. Jenna is using the ________ model.

A. Incremental

B. coalition

C. rational

D. predictive

E. intuition

A. Incremental

Making a choice without the use of conscious thought or logical interference is called

A. reactive decision.

B. irrational insight.

C. intuition.

D. instinctual choice.

E. heuristics.

C. intuition.

Which of the following is an implementation principle for evidence-based management described by Pfeffer and Sutton?

A. See yourself as outsiders do.

B. If all else fails, speed the spread of good practices.

C. Reserve evidence-based management for top executives.

D. Treat your organization as a trophy.

E. Understand what happens when people succeed.

A. See yourself as outsiders do

Which of the following is NOT a reason why it is hard to bring the best evidence to bear on your decisions?

A. Stories are more persuasive than evidence.

B. People are trying to mislead you.

C. The evidence leads to an unethical solution.

D. The evidence doesn’t quite apply.

E. There’s too much evidence.

C. The evidence leads to an unethical solution.

Redbox uses the large amount of data that it collects at its video and game rental kiosks to determine ways to improve customer retention and to encourage multiple rentals at the same time. The chain is using

A. quantitative decision making.

B. data correlation.

C. heuristics.

D. business analytics.

E. the Delphi technique.

D. business analytics.

Which of the following is characteristic of companies that use analytics?

A. Use of predictive modeling

B. Having a single, focused application for its use

C. Information overload

D. Use of competitive intelligence

E. Making decisions intuitively

A. Use of predictive modeling

The stores of data so vast that conventional database management systems cannot handle them and which instead require very sophisticated analysis software and supercomputing-level hardware are known as

A. big data.

B. heuristics.

C. information escalation.

D. incremental diagnostics.

E. boundless resources.

A. big data.

Amanda was asked by her boss to create a handbook for new hires because several employees had recently complained, saying they felt lost when they first started because procedures didn’t seem to be formalized. Amanda herself had not felt that way, perhaps because she has a

A. high tolerance for ambiguity.

B. value orientation focused on people.

C. conceptual decision style.

D. high propensity for risk.

E. low value orientation.

A. high tolerance for ambiguity.

A person with high tolerance for ambiguity has

A. a high need for structure or control.

B. a strong people orientation.

C. an analytical mind.

D. defensive avoidance tendencies.

E. comfort with uncertain situations.

E. comfort with uncertain situations.

Which of the following is a decision-making style based on the dimensions of value orientation and tolerance for ambiguity?

A. professional

B. personal

C. technological

D. Behavioral

E. Mechanical

D. Behavioral

An analytical decision-making style reflects a person who is ______ in his value orientation and ______ in his tolerance for ambiguity.

A. task/technical; high

B. task/technical; low

C. people/social; high

D. people/social; low

E. managerial; low

A. task/technical; high

A person with a conceptual decision-making style is __________ in her value orientation and __________ in her tolerance for ambiguity.

A. managerial; high

B. task/technical; low

C. people/social; high

D. people/social; low

E. managerial; low

C. people/social; high

A person who is oriented toward people and social concerns and has a low tolerance for ambiguity is ______ in her decision-making style.

A. analytical

B. relaxed

C. Conceptual

D. directive

E. Behavioral

E. Behavioral

A person who is oriented toward task and technical concerns and has a low tolerance for ambiguity is ______ in his decision-making style.

A. analytical

B. Behavioral

C. Conceptual

D. directive

E. heuristic

D. directive

Ryan is an efficient manager who is very good at meeting his deadlines and quite decisive. Still, his employees find him to be too controlling at times and unable to see the long-term consequences of his actions. Ryan is most likely ______ in his decision-making style.

A. analytical

B. autocratic

C. Behavioral

D. Conceptual

E. directive

E. directive

Charlie has a reputation for being slow to reach a final decision but being able to decide a reasoned course of action regardless of the uncertainty. He is very thorough in collecting information and evaluating more alternatives than other managers are. Charlie is most likely ______ in his decision-making style.

A. analytical

B. Behavioral

C. Conceptual

D. directive

E. relaxed

A. analytical

Karl is very creative and prefers to look at the long-term issues when making a decision. He considers a wide variety of possible actions based on an open mind about the possibilities. Sometimes his coworkers find him indecisive because of these tendencies. Karl is probably ______ in his decision-making style.

A. analytical

B. Behavioral

C. Conceptual

D. directive

E. relaxed

C. Conceptual

Savannah is a warm and likeable manager who is extremely supportive of her employees, but she sometimes doesn’t say no when she needs to and is somewhat passive in enforcing her decisions. Her decision-making style is most likely

A. analytical.

B. heuristic.

C. behavioral.

D. conceptual.

E. directive.

C. behavioral.

Scott has received training in resolving ethical dilemmas and currently oversees the development of an ethical code for his workplace. Scott is a(n)

A. member of the principles board.

B. morality team member.

C. social responsibility chief.

D. ethics officer.

E. chief executive officer.

…

A graph of decisions and their possible consequences is known as a(n)

A. decision tree.

B. Gantt chart.

C. results chart.

D. outcome matrix.

E. fishbone diagram.

A. decision tree.

According to Harvard professor Constance Bagley, ethical decisions can be facilitated with a(n)

A. goal statement.

B. improved legal department.

C. cross-department task force.

D. decision tree.

E. brainstorming session.

D. decision tree.

Which of the following questions about a proposed action is NOT a key question in Bagley’s ethical decision tree?

A. Is it legal?

B. Does it maximize shareholder value?

C. Is it ethical?

D. Would it be ethical not to do it?

E. Should the effect of it be disclosed to shareholders?

E. Should the effect of it be disclosed to shareholders?

It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing to another country where costs are somewhat higher but workplace standards are more tightly controlled. In using Bagley’s ethical decision tree, you determine it would be unethical NOT to relocate, so you should

A. relocate the facility, but don’t tell shareholders about potentially smaller profits.

B. warn the manufacturer that you will relocate should a violation occur again.

C. continue to use the facility, despite your objections, because this will maximize shareholder value.

D. relocate the facility, and tell the shareholders how this will affect their returns.

E. continue to use the facility, because it is benefitting your company, and all workers, even underage ones.

D. relocate the facility, and tell the shareholders how this will affect their returns.

When a manager decides to take no action in the belief that there will be no great negative consequences, she is engaged in

A. limited reaction.

B. relaxed avoidance.

C. relaxed change.

D. decreased involvement.

E. defensive avoidance.

B. relaxed avoidance.

Carla heard from a client that a product similar to a popular one at her retail store was now at Walmart, imported from China, and costing just over half of her sales price. But Carla isn’t really worried because she believes in her customers’ loyalty, so she has no plans to make changes. Carla is practicing

A. relaxed change.

B. defensive avoidance.

C. postponed action.

D. relaxed avoidance.

E. delayed decision.

D. relaxed avoidance.

Which of the following responses to a challenge would be considered most like satisficing?

A. Panic

B. Relaxed avoidance

C. Relaxed change

D. Decreased involvement

E. Defensive avoidance

C. Relaxed change

When a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk, it is called

A. relaxed change.

B. defensive avoidance.

C. postponed action.

D. relaxed avoidance.

E. delayed decision.

A. relaxed change.

Passing the buck or procrastinating about a decision are examples of which type of reaction to a challenge?

A. Panic

B. Relaxed avoidance

C. Relaxed change

D. Decreased involvement

E. Defensive avoidance

E. Defensive avoidance

Erik has been putting off a decision about firing several workers who have been ignoring safety regulations on the factory floor. After all, he thinks, his boss will eventually notice and take action. Erik is experiencing a(n) ______ reaction.

A. relaxed change

B. relaxed avoidance

C. defensive avoidance

D. unresponsive

E. delayed change

C. defensive avoidance

Robin is very worried about potentially having to lay off several of her staff. She can’t sleep well, her stomach is bothering her, and she snaps at her employees. She doesn’t know what to do but won’t talk with anyone about it. Robin is experiencing a ______ reaction to a challenge.

A. relaxed change

B. defensive avoidance

C. panic

D. deciding to decide

E. heuristic

C. panic

In deciding to decide about a problem or opportunity, a manager should evaluate the importance of the situation, the credibility of the information, and

A. the equitability of the outcomes.

B. the availability of heuristics.

C. the urgency of the situation.

D. the cost of the solution.

E. the ethics of making no change.

C. the urgency of the situation.

Casey has a simple rule that he follows when it comes to new hiring; if four or more of his staff are working 20% or more overtime, he hires another employee. Casey is using

A. relaxed change.

B. heuristics.

C. the Delphi technique.

D. rational models.

E. brainwriting.

B. heuristics.

Managers tend to give more weight to more recent behavior. This is due to the

A. heuristic bias.

B. halo effect.

C. recency effect.

D. availability bias.

E. representativeness bias.

D. availability bias.

As Janine prepares to perform Ian’s performance review, she carefully reviews notes she made throughout the year, rather than relying just on what she remembers. Janine is attempting to avoid the ______ bias.

A. sunk-cost

B. adjustment

C. representativeness

D. availability

E. escalation of commitment

D. availability

Meg hired a great candidate from UCLA who has a big career ahead, and every year since Meg insists on going on a recruiting visit to that campus. Meg is convinced that hiring from UCLA in the future will produce the same level of success. This is an example of a(n)

A. heuristic bias.

B. professional effect.

C. anchoring effect.

D. availability bias.

E. representativeness bias.

E. representativeness bias.

Angelina is interviewing for an open position since she recently let go an employee for excessive absenteeism. Though she thinks that Ivy is the best candidate for the job, she has small children, which seemed to be the source of the last employee’s absenteeism. Angelina is reluctant to hire Ivy, which is a(n) ______ bias.

A. anchoring and adjustment

B. confirmation

C. availability

D. representativeness

E. escalation of commitment

D. representativeness

When managers add up all the money already spent on a project and conclude it is too costly to simply abandon it, it is known as a(n) ________ bias.

A. anchoring and adjustment

B. confirmation

C. availability

D. representativeness

E. sunk cost

E. sunk cost

Managers at Thomas Canyon Credit Union have given employees raises year after year based on what they had given the year before, even though now their employees were quite underpaid compared to similar positions with other credit unions. This is an example of a(n)

A. anchoring and adjustment bias.

B. escalation of commitment bias.

C. sunk-cost bias.

D. availability bias.

E. representativeness bias.

A. anchoring and adjustment bias.

Many investment advisors attribute their successful outcomes to skill, even when it is more likely luck, which is an example of which bias?

A. Overconfidence.

B. Escalation of commitment bias.

C. Hindsight.

D. Availability.

E. Framing.

A. Overconfidence.

The tendency for decision-makers to be influenced by the way a situation or problem is presented to them is known as the ________ bias.

A. overconfidence.

B. escalation of commitment bias.

C. hindsight.

D. availability.

E. framing.

E. framing

Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs to be replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________ bias.

A. anchoring and adjustment

B. confirmation

C. availability

D. representativeness

E. escalation of commitment

E. escalation of commitment

The idea that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain is called

A. a heuristic.

B. an availability bias.

C. a representativeness bias.

D. the prospect theory.

E. satisficing.

D. the prospect theory.

Which of the following is an advantage of group decision making?

A. Groupthink

B. Deeper commitment to the decision

C. Less thought required

D. A quicker decision

E. More flexibility in the final decision

B. Deeper commitment to the decision

Which of the following is a disadvantage of group decision making?

A. Lower commitment to the decision

B. Lower levels of confidence in judgments

C. Different perspectives

D. Greater discomfort with the final decision

E. Satisficing

E. Satisficing

Spencer talked with Allie after their task force meeting, and they discovered that neither of them had been in favor of dropping some items from next year’s budget, yet neither spoke up. Both wanted to be supportive of the group instead. This is an example of

A. goal displacement.

B. satisficing.

C. groupthink.

D. heuristics.

E. self-selection.

C. groupthink

The tendency of a group to settle on a decision that is "good enough" is called

A. goal displacement.

B. satisficing.

C. groupthink.

D. heuristics.

E. pseudo-optimization.

B. satisficing.

Because Greg and Karen were having an argument about the order of their respective projects on the website, they were unable to work with the rest of the management team to come up with a staffing schedule. This is an example of what potential problem that occurs in groups?

A. Goal displacement

B. Satisficing

C. Groupthink

D. Heuristics

E. Availability bias

A. Goal displacement

The ______ a group is, the ______ the quality of the decision.

A. more diverse; lower

B. larger; lower

C. more confident; higher

D. more knowledgeable; lower

E. more creative, lower

B. larger; lower

Which of the following characteristics of groups may lead to groupthink?

A. Too little information available to the group

B. Errors in the information available to the group

C. Overconfidence

D. Disagreements among the members

E. Diversity in the group
\

C. Overconfidence

Anders has assembled a task force that is composed of people who don’t know each other well. He should expect this group to make better decisions if

A. it is a large group.

B. the members have common knowledge.

C. the group is very confident.

D. time pressure is high.

E. individuals have unique, specialized knowledge.

B. the members have common knowledge.

Which of the following statements about group decision making is true?

A. Individuals are always better than groups in decision making.

B. Groups are always better than individuals in decision making.

C. Groups minimize satisficing.

D. Groups are faster at making decisions.

E. Managers should utilize groups for decision making on a selective basis.

E. Managers should utilize groups for decision making on a selective basis.

Which of the following is a practical guideline in determining whether to use group decision making?

A. When it can encourage satisficing

B. When it can increase speed

C. When it can produce groupthink

D. When it can increase development

E. When a decision occurs infrequently

D. When it can increase development

The process of involving employees in setting goals, making decisions, solving problems, and making changes is called

A. conjoint management.

B. escalation of commitment.

C. satisficing.

D. goal displacement.

E. participative management.

E. participative management.

Research on the effects of participative management (PM) on employees’ performance and satisfaction indicates that

A. PM has no effect on either.

B. PM has a small positive effect on both.

C. PM has a large effect on satisfaction, but a small effect on performance.

D. PM has a large positive effect on both.

E. PM has a large effect on performance, but no significant effect on satisfaction.

B. PM has a small positive effect on both.

Which of the following is a factor that helps participative management work?

A. Top management is occasionally involved.

B. Employees trust managers.

C. PM is implemented without interference from TQM.

D. Employees work in interdependent jobs.

E. Employees need more training.

B. Employees trust managers.

Which of the following is NOT a rule for brainstorming suggested by IDEO?

A. Go for quality over quantity.

B. Defer judgment.

C. Stay focused on the topic.

D. Encourage wild ideas.

E. Be visual.

A. Go for quality over quantity.

_________ uses physically dispersed experts who fill out questionnaires to generate ideas and the judgments are combined into an expert consensus.

A. Brainstorming

B. PM

C. TQM

D. Brainwriting

E. The Delphi technique

E. The Delphi technique

Cara was enthusiastic about the new decision technique being used at her office. Everyone gathered in a room with their computers and typed responses anonymously. These appeared on the screen in the front of the room. Cara felt comfortable participating fully even though she was new to the company, and by the great number of comments, it seemed that everyone else did, too. Cara participated in

A. the Delphi technique.

B. collaborative management.

C. a group-driven computer-aided system.

D. a chauffeur-driven computer aided system.

E. brainstorming.

C. a group-driven computer-aided system.

Which of the following is NOT one of the suggestions for decision making recommended by management consultant Odette Pollar?

A. Decide in a timely fashion.

B. Don’t agonize over minor decisions.

C. Separate outcome from process.

D. Never stop gathering facts.

E. When overwhelmed, narrow your choices.

D. Never stop gathering facts.

Identify the steps of rational decision making

The steps are: Identify the problem/opportunity. Think up alternative solutions. Evaluate the alternatives and make a decision. Implement and evaluate the solution chosen.

Identify the assumptions of the rational decision-making model. Do these hold true in most situations?

The assumptions are: 1. There is complete information and no uncertainty. 2. Logical and unemotional analysis is possible. 3. The best decision for the organization will be chosen. The assumptions may not hold true in most situations. According to the research by Herbert Simon, managers cannot truly act logically because of bounded rationality. Constraints include complexity, time, cognitive capacity, and imperfect or too much information, among others

What are a manager’s options if the action she decided to take isn’t working? Why should a manager resist the urge to "stick it out" when feedback is negative?

If the action is not working, a manager should consider giving it more time, changing the decision or its implementation slightly, trying another alternative, or starting over. But a manager should recognize that "sticking it out" may reflect a sunk-cost or escalation of commitment bias.

Explain evidence-based decision making. Name at least four of the seven implementation principles identified by Pfeffer and Sutton to help companies that are committed to evidence-based management

Evidence-based decision making means managers make decisions based on what actually works. They face the hard facts and use the best evidence to help navigate the competitive environment. Pfeffer and Sutton identify seven implementation principles to help companies that are committed to using evidence-based management: 1. Treat your organization as an unfinished prototype. 2. No brag, just facts. 3. See yourself and your organization as outsiders do. 4. Evidence-based management is not just for senior executives. 5. Like everything else, you still need to sell it. 6. If all else fails, slow the spread of bad practice. 7. The best diagnostic question: what happens when people fail?

Give at least four reasons that it is difficult to use evidence-based decision making

Despite your best intentions, it’s hard to bring the best evidence to bear on your decisions. Among the reasons: (1) There’s too much evidence. (2) There’s not enough good evidence. (3) The evidence doesn’t quite apply. (4) People are trying to mislead you. (5) You are trying to mislead you. (6) The side effects outweigh the cure. (7) Stories are more persuasive, anyway

Identify the four general decision making styles. Explain the two primary characteristics which define each.

1. Directive: People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns in making decisions. 2. Analytical: People with an analytical style have a high tolerance for ambiguity and are oriented toward task and technical concerns in making decisions. 3. Conceptual: People with a conceptual style have a high tolerance for ambiguity and are oriented toward people and social concerns in making decisions. 4. Behavioral: People with a behavioral style have a low tolerance for ambiguity and are oriented toward people and social concerns in making decisions.

In making decisions, ethical concerns need to be considered. Identify and explain how a decision tree would assist the manager in making ethical decisions

decision tree is a graph of decisions and their possible consequences, and is used to help with ethical decision making. The manager would ask several questions: Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical NOT to take the proposed action?