Chapter 7

Question 1

What is a decision-making?

Answer 1

The process of identifying and choosing alternative courses of ­action.

Question 2

What is the rational model of decision making?

Answer 2

Also called the classical model; the style of decision-making that explains how managers should make decisions; it assumes that managers will make logical decisions that are the optimal means of furthering the organization’s best interests.

Question 3

What are the four stages in rational decision-making?

Answer 3

1. Identify the problem of opportunity
2. Think up alternative solutions
3. Evaluate alternatives & select a solution.
4. Implement & evaluate the solution chosen

Question 4

What is the nonrational model of decision making?

Answer 4

Models of decision-making style that explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum

Question 5

Harvard Business Review suggests five reasons of the increase in CEO firings due to ethical lapses.

Answer 5

1. The public is less forgiving of poor behavior by executives
2. Regulations are more stringent
3. Companies are expanding operations into developing countries where ethical risks may be higher and laws less protective.
4. Digital communications increase exposure to risk from both hackers and whistle-blowers.
5. The 24/7 news cycle and the proliferation of media in the 21st century publicizes and amplifies negative information in real time.

Question 6

What is ethics officer?

Answer 6

Individuals trained in matters of ethics in the workplace, particularly in resolving ethical dilemmas.

Question 7

What is a decision tree?

Answer 7

Graph of decisions and their possible consequences, used to create a plan to reach a goal.

Question 8

What is big data?

Answer 8

Stores of data so vast that conventional database management systems cannot handle them.

Question 9

What are the four general decision-making styles?

Answer 9

1. The directive style
2. The analytical style
3. The conceptual style
4. The behavioral style