Chapter 4

Question 1

What are the Assumptions of the Rational Model?

Answer 1

• Complete Information: Obtain complete, error-free information about all alternative courses of action and the accompanying consequences
• Objective Analysis: Logical evaluations and ranking alternatives from best to worst according without subjectivity
• In Interest of the Organisation: Best future course of action that benefits the company the most

Question 2

What is the 1st stage of the 4 Stages of Rational Decision Making?

Answer 2

Stage 1: Identify the Problem or Opportunity

• Determining the Actual vs the Desirable

Question 3

What is the 2nd stage of the 4 Stages of Rational Decision Making?

Answer 3

Stage 2: Think up Alternative Solutions

• Lists all possible Obvious and Creative Solutions
• Requires brainstorming

Question 4

What is the 3rd stage of the 4 Stages of Rational Decision Making?

Answer 4

Evaluate Alternatives & Select a Solution

• Ethical, feasible, effective
• Most time-consuming stage

Question 5

What is the 4th stage of the 4 Stages of Rational Decision Making?

Answer 5

Stage 4: Implement & Evaluate Chosen Solution

• Plan carefully, being sensitive to those affected
• Give time and if necessary, change, try other solutions or start over

Question 6

What are the Advantages to Group Decision Making?

Answer 6

1. Greater Pool of Knowledge
2. Different Perspectives
3. Intellectual Stimulation
4. Better Understanding of Decision Rationale
5. Deeper Commitment to Decision

Question 7

What are the Disadvantages to Group Decision Making?

Answer 7

1. Dominating/Intimidating Members
2. Groupthink
3. Satisficing
4. Goal Displacement

Question 8

In relation to the Disadvantages of Group Decision Making,

Define Groupthink

Answer 8

• When group members strive to agree for the sake of unanimity instead of accurately assessing the situaiton
• Group harmony occurs at the expense of sound judgement
• Can happen when the team is cohesive, leading to self-censorship or mindguards

Question 9

In relation to the Disadvantages of Group Decision Making,

Define Satisficing

Answer 9

• Making a ‘good enough’ (satisfactory but not optimal) decision quickly
• Avoidance of an in-depth discussion, in order to cut the meeting short

Question 10

In relation to the Disadvantages of Group Decision Making,

Give an example of Groupthink

Answer 10

• Challenger explosion was caused by:
  
  • Hardware failure of a SRB O-ring
  • Flawed decision by NASA
• The day prior, NASA received a warning from Thiokol - the subcontractor responsible for the development of the O-rings
• The abnormally cold temperatures on the launch date could threaten their performance
• NASA had already delayed the launch for weather once and thus, were reluctant
• NASA chose to rely on test results on the O-rings despite Thiokol’s warning that the system was also unreliable
• Pressures were put on Thiokol engineers to conform to NASA’s desire to launch, so they asked to hold a private meeting
• Within five minutes, Thiokol agreed, without any further objections, to proceed with the launch