Chapter 4

Question 1

optimizing decision

Answer 1

a type of decision in which one chooses the alternative providing the absolute best solution to a problem

Question 2

creativity

Answer 2

the generation of a novel idea or unique approach that solves a problem or crafts an opportunity

Question 3

cost-benefit analysis

Answer 3

the process of comparing the costs and benefits of each potential course of action

Question 4

classical decision model

Answer 4

a decision-making model that describes decision making w complete information

Question 5

programmed decisions

Answer 5

a type of decision that applies a solution from past experience to a routine problem

Question 6

spotlight questions

Answer 6

a set of questions that highlight the risks of public disclosure of one’s actions

Question 7

nonprogrammed decisions

Answer 7

a type of decision that applies a specific solution that has been crafted to address a unique problem

Question 8

information technology

Answer 8

the ability to gather and use information to solve problems

Question 9

confirmation error

Answer 9

a decision-making error that occurs when we attend only to information that confirms a decision already made

Question 10

uncertain environment

Answer 10

a business environment that lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives

Question 11

intuitive thinking

Answer 11

the process of approaching problems in a flexible and spontaneous fashion

Question 12

certain environment

Answer 12

a business environment that offers complete information on possible action alternatives and their consequences

Question 13

anchoring and adjustment heuristic

Answer 13

a decision-making technique that adjusts a previously existing value or starting point to make a decision

Question 14

availability heuristic

Answer 14

a decision-making technique that uses readily available information to assess a current situation

Question 15

cognitive styles

Answer 15

the different ways individuals deal with information while making decision

Question 16

behavioral decision model

Answer 16

a decision-making model that describes decision making w limited information and bounded rationality

Question 17

framing error

Answer 17

a decision-making error in which a problem is solved in the context perceived

Question 18

satisficing decisions

Answer 18

a type of decision in which one chooses the first satisfactory alternative that presents itself

Question 19

decision-making process

Answer 19

a process that begins w identification of a problem and ends w evaluation of implemented solutions

Question 20

systematic thinking

Answer 20

the process of approaching problems in a rational and analytical fashion

Question 21

representativeness heuristic

Answer 21

a decision-making technique that assesses the likelihood of an occurrence using a stereotyped set of similar events

Question 22

knowledge workers

Answer 22

employees who add value to organizations through their intellectual capabilities

Question 23

lack-of-participation error

Answer 23

the failure to include the right ppl in the decision-making process

Question 24

performance threat

Answer 24

a situation where something is wrong or likely to be wrong

Question 25

crisis

Answer 25

an unexpected problem that can lead to disaster if not resolved quickly and appropriately

Question 26

risk environments

Answer 26

a business environment that lacks complete information but offers probabilities of the likely outcomes for possible action alternatives

Question 27

escalating commitment

Answer 27

the continuation of a course of action even though it is not working

Question 28

problem solving

Answer 28

identifying and taking action to resolve problems

Question 29

performance opportunity

Answer 29

a situation that offers the possibility of a better future if the right steps are taken

Question 30

decision

Answer 30

a choice among possible alternative courses of action