Chapter 7 Flashcards

1
Q

A ______ is a choice made from available alternatives.

A

Decision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization’s best interests?

A

Rational Model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Picking a solution is which step in the rational decision-making process?

A

Third

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The first stage in the rational decision-making process involves

A

Identifying the problem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Situations that present possibilities for exceeding existing goals are known as

A

Opportunities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which of the following is an accurate description of decision making?

A

The process of identifying and choosing among alternative courses of action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Conducting a ______ involves identifying and analyzing the underlying causes of a problem or an opportunity.

A

Diagnosis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The rational model of decision making emerged from Adam Smith’s theory, assuming people make rational decisions based on:

A

Analysis of all potential outcomes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which of the following are examples of what can function as the first stage in rational decision making by managers?

Sales shortfalls

Poor product quality

Customer complaints

Low staff turnover

A

Sales Shortfalls, Poor Product quality, Customer complaints

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

When Kendra’s manager asked the team to develop new ideas for attracting people to their trade show booth, Kendra suggested installing a video game. Which part of the rational decision-making process does Kendra’s idea exemplify?

A

Think up alternative situations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Ryan learns that distribution problems caused a competitor’s sales to fall in his region. He decides to take advantage of the situation by adding a salesperson to capture some of the competitor’s lost business. Ryan is demonstrating how a(n) ______ affects decision making

A

Opportunity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making? (More than one answer may be correct.)

Multiple select question.

Is it ultimately effective?

Is it feasible?

Is it profitable?

Is it creative?

Is it ethical?

A

Ultimately effective, feasible, ethical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Ronnie’s company uses large numbers of snow blowers. After several failed, Ronnie determined that the failures were due to defective motors and decided that the company would use a different vendor for future purchases. In this situation, Ronnie is making a

A

Diagnosis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In the fourth stage of rational decision making, managers will

A

implement and evaluate the chosen solution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The results of rational decision making should be evaluated because things may occur that were not foreseen, a “law” in economics known as the Law of ______ Consequences.

A

Unintended

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

List the four steps in the rational decision making model with the first step in the process at the top and the last step on the bottom.

A

1.Identify the issue
2.Come up with potential solutions
3.Evaluate the possibilities and select a solution
4.Put the solution into practice and evaluate it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which scenario describes behaviors that occur in stage two of the rational decision-making process?

Bar staff have a brainstorming session to generate ideas for attracting customers; the suggestions get crazy.

The middle manager knew the management team decided to follow a hotly debated decision; she did not think it would work because the customers would soundly reject it.

The food delivery truck is late; when it arrives, everyone helps unload, including the manager.

When a small business owner discovers a location they covet is going on the market, they ignore everything and start crunching numbers to see if they can make an offer.

A

Bar staff have a brainstorming session to generate ideas for attracting customers; the suggestions get crazy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Successful implementation of major decisions requires which of the following? (Choose every correct answer.)

Multiple select question.

Ignoring ethical dilemmas

Reliance on the easy way out of the problem

Sensitivity to those affected by the decision

Careful planning

A

Sensitivty to those affected by the decision
Careful Planning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Which of these assumptions are made in the rational model of decision making? (More than one answer may be correct.)

Managers will always select the course of action that they know will most benefit the organization.

Managers can make logical decisions without prejudice or emotional bias.

Managers will not be limited by time or money constraints when implementing the chosen solution.

Managers will be influenced by their own self-interest when choosing among alternative courses of action.

Managers have complete, error-free information about alternative courses of action and their consequences.

A

Managers will always select the course of action that they know will most benefit the organization.

Managers can make logical decisions without prejudice or emotional bias.

Managers have complete, error-free information about alternative courses of action and their consequences.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are appropriate actions for a manager to take if a decision is not working as intended? (Choose every correct answer.)
Deny there is anything wrong.

Try another alternative.

Change it slightly.

Blame others.

Start over.

Give it more time.

A

Try another alternative.

Change it slightly.

Start over.

Give it more time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the first two steps in the rational decision making model?

A

generating alternative solutions

determining the issue at hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?

A

Nonrational Model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them.

A

Prescriptive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The concept that suggests that the ability of decision makers to be rational is limited by constraints such as complexity, skills, time, and money is known as
_______________ rationality.

A

Bounded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Picking a solution is which step in the rational decision-making process?

A

Third

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

As a manager, Colin realizes that there is no single formula for making easy decisions. In reality, business decisions he has to make involve uncertainty and risk. This describes the ______ model of decision making.

A

Nonrational

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

“Close enough is good enough” best characterizes which model of decision making?

A

Satisficing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the third stage of the rational model of decision making?

A

Evaluate alternatives and select a solution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Hubris is an extreme sense of which of the following?

Uncertainty

Justice

Confidence

Pride

A

Confidence
Pride

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Tonya decided to purchase a piece of equipment from a domestic company instead of an overseas company despite the domestic company’s higher cost and lower quality. Her decision was based on uncertainty that the foreign shipment would not be able to meet her production deadline. According to Herbert Simon, Tonya was feeling the effects of:

A

Bounded Rationality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Making a choice without the use of conscious thought or logical inference is known as using __________

A

Intuition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the name for an intuitive decision based on a person’s years of experience with similar situations?

A

Holistic Hunch

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Which models are characteristic nonrational models of decision making?

Models that train managers how to make ethical decisions

Models that describe how managers actually make decisions

Models that try to predict future behaviors and consequences

Models that describe how managers should make decisions

A

Models that describe how managers actually make decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is defined as an extreme and inflated sense of pride, certainty, and confidence?

A

Hubris

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which model of decision making emphasizes choosing the first solution that meets the criteria rather than the optimal choice?

A

Satisficing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Choose a key benefit of using intuition in decision making.

A

It speeds up the process when deadlines are tight.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Going with your gut,” or ______, is making a choice without the use of conscious thought or logical inference.

A

Intuition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Someone who is trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas, is called a(n) ______.

A

Ethics officer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

When are directors, managers, and employees most likely to engage in unethical behavior?

A

When they feel compelled to put company interests ahead of their own sense of right and wrong

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

When one of Serena’s employees raises the concern that some of the bakery’s products may have been contaminated during a cleaning product spill, Serena is overcome with a feeling of worry that customers could become ill if they consume her pastries. Based on these feelings, Serena makes a snap decision to close the store for several hours to allow time for baking a new batch of pastries. Which type of intuition does this represent?

A

Automated experience

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Bagley’s decision tree is specifically designed for use when

A

Making ethical choices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Identify the benefits of using intuition in the decision-making process. (Choose every correct answer.)

A

It can be helpful to managers when resources are limited.
It can speed up decision making.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Which of the following questions is NOT one of the questions used in Bagley’s ethical decision tree?

Multiple choice question.
Is the proposed action ethical?
Is the proposed action legal?
Would it be ethical not to take the proposed action?
Does the proposed action maximize shareholder value?
Is the proposed action a benefit to our competitors?

A

Is the proposed action a benefit to our competitors?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

When it designs and implements ethical principles, a company is attempting to:

A

Guide employee’s day to day ethical behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Which of the following career-readiness competencies relate to evidence-based decision making?
Multiple select question.

Critical thinking and problem solving

Self-motivation

Information technology application

Social intelligence

Computational thinking

A

Critical thinking and problem solving

Information technology application

Computational thinking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

A graph of decisions and their possible consequences used to create a plan is known as a

A

Decision Tree

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

While big data provides organizations access to information, ______ generates insights to inform decisions.

A

AI
Analytics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

When using the ethical decision tree, management should consider whether a proposed action is both legal and ______.

A

Ethical

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Which scenario lends itself to descriptive analytics?

A

Kristy ran an online store with paid advertising links on several other websites. Her own online platform seemed to work as well as the paid links in drawing customers. Kristy wondered if she could skip renewing these links as they came due.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

The practice ground for computers to learn, improve, and make accurate decisions is:

A

Big data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

According to Bagley, what should businesspeople use as a guide for making good ethical decisions?

A

Their own sense of right and wrong

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Which scenario lends itself to predictive analytics?

Lisa needed to analyze how much of her sales were generated by carry-out; maybe she needed to add a delivery driver.

Maurice wanted to know the most common item found in abandoned carts on his website.

Phoebe had a stack of applicants but wanted to hire the right person; she desired to know their production potential.

Kyle wondered how many customers in the store’s loyalty program used the services.

A

Phoebe had a stack of applicants but wanted to hire the right person; she desired to know their production potential.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Soft skills do not have a role in evidence-based decision making.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Which of these are examples of business analytics?

A

Portfolio analysis
Time-series forecast

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Which evaluation tool combines historical data with statistical models and machine learning to make predictions?

A

Predictive Analytics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Which statement illustrates the volume characteristic of big data?

Multiple choice question.

Amazon uses AI and human moderators to remove fraudulent product reviews.

Big data continuously mines our smartphone usage data, social media presence, online shopping habits, etc.

Google completes so many searches it produces a daily ‘trending’ topic.

People send nearly 300 billion emails daily and upload three-quarters of a million hours of new content on YouTube, mostly stored in the cloud.

A

People send nearly 300 billion emails daily and upload three-quarters of a million hours of new content on YouTube, mostly stored in the cloud.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

The process of gathering and analyzing high-quality data to develop and implement a plan of action is called:

A

evidence-based decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Which choice defines computers using algorithms and statistical models to detect data patterns without being explicitly programmed?

A

Machine learning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Data collected from your smartphone, online gaming sessions, internet searches, and smart appliances best illustrate which feature of big data?

A

Variety

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

An online retailer uses complex data-mining software to evaluate the preferences and buying habits of its customers and makes decisions based on these findings. This is an example of the use of ______ in the decision-making process.

A

Analytics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Which big data characteristic refers to the quantity of data and the storage capacity required to house it?

A

Volume

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

A business uses a high velocity of data to:

A

Run reports real time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

The term veracity, as it applies to big data, means:

A

Source Credibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

When referring to a dimension of big data, the term value means:

A

Data’s insight yield

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

The variety element of big data represents:

A

the different sources created by humans and machines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Which application of big data is typically used by employees at the top managerial level of an organization?

A

Influencing others to support data-driven decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

In terms of big data, what does velocity mean?

A

the speed of data generation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

How does missing, fake, or inaccurate data create problems?

A

It skews the data patterns, making the determination of meaningful results difficult.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Lower-level managers often focus on analyzing and safeguarding data, which require the ______ career readiness competencies of computational thinking and information technology application.

A

Hard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Which of these tools identifies trends and relationships within big data?

A

Descriptive Analytics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Research shows an organization’s data and analytics capabilities improve its ______.

A

Productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Which of the following applications of big data are typically used by employees at the lower managerial level of an organization? (Choose every correct answer.)

Multiple select question.
Analyzing data

Making data-driven decisions and strategizing

Presenting data to executives

Safeguarding data

A

Analyzing data

Safeguarding data

62
Q

Which choice correctly describes an autonomous device?

A

It is a machine that uses programming goals to arrive at decisions.

63
Q

A factory manager notices a decline in production output over the last quarter. While attempting to analyze the underlying causes of the production decline, the manager is engaged in?

A

diagnosis.

64
Q

Which models of decision making describe how managers actually make decisions?

A

nonrational

65
Q

Zahra earned a law degree and is a member of her state’s bar association. She was recently promoted to human resources manager and is relied upon by the executives of her company to guide them through legal issues and ethical dilemmas. These qualifications suggest that Zahra would likely make a good

A

ethics officer.

66
Q

A ________ is a graph of decisions and their possible consequences.

A

decision tree

67
Q

To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and statistical probabilities, to predict risk levels.

A

data analytics

68
Q

A person’s decision-making style is a combination of how a person perceives something as well as

A

How they respond to it

69
Q

Colin is a paralegal for a powerful Manhattan-based corporate law firm. He likes the fast pace of his work and the fact that things are always changing there. Colin can be said to

A

have a high tolerance for ambiguity.

70
Q

Value orientation reflects the extent to which a person is unethical.

A

False

71
Q

Which of the following is a primary use of AI among U.S. companies?

A

To gain competitive advantage

72
Q

Which personality dimension indicates the extent to which a person has a high need for structure or control?

ethical foundation

tolerance for ambiguity

value orientation

bounded rationality

A

tolerance for ambiguity

73
Q

What are the four general styles of decision making associated with a person’s value orientation and tolerance for ambiguity? (Choose every correct answer.)

Choices: Behavioral, Conceptual, Collaborative, Directive, Formative, Analytical

A

Behavioral

Conceptual

Directive

Analytical

73
Q

Which of the following are the top challenges associated with AI? (Choose every correct answer.)

Multiple select question.

Cost

Data issues

Implementation

Enhanced decision making

A

Cost

Data issues

Implementation

73
Q

Decision-making styles vary along which two dimensions? (Choose every correct answer.)

A

Tolerance for ambiguity

Value orientation

74
Q

Jackson likes to hear the facts of a situation and make a quick decision based on these facts. His employees say he likes to focus on the here and now and doesn’t consider future repercussions of his decisions. What type of decision-making style does Jackson use?

A

Directive

75
Q

Value orientation reflects the extent to which an individual focuses on which of the following dimensions?

A

Technical concerns or social concerns

76
Q

Which of these characteristics are associated with someone with a high tolerance for ambiguity? (Choose every correct answer.)

A

Thriving in uncertain situations

Lacking a strong need for control

76
Q

When making decisions for her department, Ellie tends to take a long time because she takes into consideration a large amount of information. What type of decision-making style does Ellie demonstrate?

A

Analytical

77
Q

Which decision-making style is the most people oriented of the four styles?

A

Behavioral

78
Q

Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?

A

Conceptual

79
Q

The most cited challenge to artificial intelligence (AI) is:

A

Implementation

80
Q

Which of these describe how knowledge of decision-making styles affects managers’ work? (Choose every correct answer.)

A

It allows managers to better identify personal strengths and weaknesses.

It gives managers an understanding of how different people reach different conclusions.

81
Q

An individual with a high tolerance for ambiguity would most likely be attracted to which style of decision making?

A

Analytical

82
Q

People with the ______ style of decision making are action-oriented and like to focus on facts. They also tend to be autocratic-type managers.

A

Directive

83
Q

______ are strategies such as “rules of thumb” that simplify decision making.

A

Heuristic

84
Q

Which one of the following best describes the decisions made by a person with an analytical style?

A

Carefully considers lots information and alternatives

85
Q

Eileen had provided the weekly inventory report to the management team every Friday for the past four months, but she wasn’t able to generate the report last week because she was attending a seminar learning how to use the new inventory software. Her boss sent her an e-mail reminding her of the importance of the report and asking her to be sure and submit it every Friday. This is an example of ______.

A

availability bias

86
Q

People with a conceptual decision-making style are likely to do which of the following? (Choose every correct answer.)

A

Take risks

Find creative solutions

Rely on intuition

87
Q

A manager who hires all applicants who have graduated from a certain college because a particularly good employee came from that same college is an example of ______.

A

Representativeness bias

88
Q

Rather than holding formal meetings in the board room, Kevin prefers meeting with his group over lunch at a restaurant. He feels that his group opens up more during these lunches and opinions are openly exchanged. Which style of decision making does Kevin use?

A

Behavioral

89
Q

The ______ bias occurs when people seek data to support their point of view and disregard information that does not support it.

A

Confirmation

90
Q

Knowledge of decision-making styles can assist managers in many ways except for which one of the following?

A

It increases the biases of the manager toward their favorite style.

91
Q

Rosa hired Luis from Cajun College. He was an amazing employee and exceeded all her expectations. The next year, Rosa received an application for a job opening from another graduate from Cajun College. She was very excited to hire another outstanding candidate. Rosa has ________ bias.

A

representativeness

92
Q

Which of these is accurate regarding using groups to make decisions?

A

Groups have a greater pool of knowledge.

93
Q

Terrence’s team is very close and tends to agree on most decisions with little discussion. Terrence should be concerned about

A

groupthink.

94
Q

The toughest challenges to overcome with artificial intelligence are

A

implementation, data issues, and cost.

95
Q

How is critical thinking different from moment-to-moment thinking?

A

Critical thinking requires conscious processing, while moment-to-moment thinking is automatic and can be biased.

96
Q

Apex Enterprises spent a large amount of money to customize a pumping system it bought many years ago. A supplier is now offering a new pumping system that will save the company money in the long term. However, Apex decides to keep the older system because it has already spent so much money on the older system. What type of bias is this an example of?

A

Sunk-Cost

97
Q

Heuristics are strategies that ______ the process of making decisions.

A

Simplify

98
Q

What type of bias refers to the tendency to make decisions based on an initial figure that may or may not be in line with market realities?

A

Anchoring and adjustment

98
Q

True or false: The availability bias means that your manager may give more weight to your most recent work rather than everything you have done over the course of year.

A

True

99
Q

You fall prey to the overconfidence bias when you ______ your knowledge or expertise in a decision situation.

A

Overestimate

100
Q

Which of these is another term for hindsight bias?

A

the “I-knew-it-all-along” effect

101
Q

“Don’t tell me the truth; just tell me what I want to hear” is an example of the _______ bias.

A

Confirmation

102
Q

The tendency of decision makers to be influenced by the way a situation or problem is presented to them is referred to as the ______ bias.

A

Framing

103
Q

You go to the movie theater to see the latest release by your favorite actor. You quickly realize the movie is not very good, but instead of walking out, you stay to watch the rest of the movie, figuring that you’ve already spent $9.50 for a movie ticket and $6 for popcorn. This is an example of the _______ bias.

A

sunk-cost

104
Q

“Throwing good money after bad” characterizes the ______ bias.

A

escalation of commitment

105
Q

Samantha had never traveled to New York City before, but she had been on a recent business trip to Houston. When she learned that the hotel room she wanted in New York City cost $300 per night, she was shocked because she thought the hotel rooms would be priced similarly to those in Houston. This is an example of the ______ bias.

A

anchoring and adjustment

106
Q

Which techniques are effective ways to reduce the escalation of commitment? (Choose every correct answer.)
Rotate managers in key positions during a project.

Encourage managers to become ego-involved with their projects.

Set a date or budget for when you should withdraw from a project.

A

Rotate managers in key positions during a project.

Make decision makers aware of the costs of persistence.

107
Q

Overconfidence bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them.

A

False

108
Q

Identify the drawbacks to using intuition in the decision-making process. (Choose every correct answer.)

It is subject to the same decision-making biases as rational decision making.

It can be difficult to convince others about the validity of your hunch.

It is ineffectual when decision-making deadlines are tight.

It generally takes longer than rational decision making.

A

It is subject to the same decision-making biases as rational decision making.

It can be difficult to convince others about the validity of your hunch.

109
Q

Which model of decision making emphasizes choosing the first solution that meets the criteria rather than the optimal choice?

A

Satisficing

110
Q

Which of these are reasons for the increase in ethical violations among business leaders in the 21st century?

More flexible regulations.

Digital communications increase exposure to risk from both hackers and whistle-blowers.

Companies are expanding operations into developing countries where ethical risks may be higher and laws less protective.

It has become customary for business leaders to self-report unethical behavior.

A

Digital communications increase exposure to risk from both hackers and whistle-blowers.

Companies are expanding operations into developing countries where ethical risks may be higher and laws less protective.

111
Q

Sam is an experienced firefighter who must act quickly and decisively to do his job. He frequently relies on his ______ to make decisions when there is no time for rational analysis.

A

intuition

112
Q

A decision tree is an analytical tool that can help managers understand the possible consequences of their decisions and to create a plan to reach a goal.

A

True

113
Q

How is machine learning tied to AI?

A

Machine learning is the “intelligence” part of AI.

114
Q

Which of these are autonomous devices? More than one answer may be correct.

self-driving cars

electric bicycles

chatbots

hobby drones

A

Self-driving
Chatbots

115
Q

Match the AI function with the appropriate type of AI in the other column.

functions: automate, analyze, advise, and anticipate.

type of AI: Algorithmic AI, Conversational AI, Biometric AI, and Robotic AI.

A

automate – robotic AI
analyze – biometric AI
advise – conversational AI
anticipate – algorithmic AI

116
Q

A recent survey of U.S. companies showed that most companies use AI to do which of the following? (choose every correct answer.)

Replace employees

Enhance current offerings

Optimize internal processes

Make more effective decisions

A

Enhance current offerings

Optimize internal processes

Make more effective decisions

117
Q

Which of the following applications of big data are typically used by employees at the lower managerial level of an organization? (Choose every correct answer.)

Multiple select question.

Analyzing data

Safeguarding data

Making data-driven decisions and strategizing

Presenting data to executives

A

Analyzing data

Safeguarding data

118
Q

Which of the following career readiness competencies are typically exhibited by middle managers? (Choose every correct answer.)
Multiple select question.

Decision making

Oral/written communication

Leadership

Understanding the business

Information technology application

A

Decision making

Oral/written communication

Understanding the business

119
Q

Which type of AI meets the ‘advise’ function of artificial intelligence?

biometric AI

robotic AI

conversational AI

algorithmic AI

A

conversational AI

120
Q

People with a(n) ______ decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problems and making decisions. Which style do they use?

A

directive

121
Q

People with the ______ style of decision making are action oriented and like to focus on facts. They also tend to be autocratic-type managers.

A

directive

122
Q

In the ______ bias, managers use information readily available from memory to make judgments.

A

availability

123
Q

The ______ bias reflects our tendency to generalize from a small sample or single event.

A

representativeness

124
Q

Bob was unsure how his boss was going to react to his proposal, so he was careful to put an upbeat “spin” on the situation to emphasize the positive aspects rather than the negative aspects. Bob’s method of presenting the situation demonstrates the ______ bias.

A

Framing

125
Q

The ______ bias is demonstrated when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

A

sunk-cost

126
Q

Ramona is bidding on an auction item against several other people. She knows the bid is already too high, but she doesn’t want to give up, so she continues bidding. This is an example of the ______ bias.

A

escalation of commitment

127
Q

The ______ bias occurs when people’s positive feelings about their own decision-making ability is greater than their objective accuracy.

A

Overconfidence

128
Q

The tendency of people to view events as being more predictable than they really are is referred to as ______ bias.

A

hind sight

129
Q

The tendency of decision makers to be influenced by the way a situation or problem is presented to them is referred to as the _____ bias.

A

framing

130
Q

One method of reducing the escalation of commitment is to ______.

A

rotate decision-makers

131
Q

When decision makers increase their commitment to a project despite negative information about it, they are experiencing which type of bias?

A

Escalation of commitment

132
Q

Which type of bias is described by the tendency of decision makers to classify people or information based on observed or inferred characteristics?

A

Categorical thinking

133
Q

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

satisficing

goal displacement

groupthink

information accumulation

A

information accumulation

134
Q

Which of the following are disadvantages associated with group-aided decision making? (Choose every correct answer.)

The final decision will be based on a small pool of knowledge and a single, narrow viewpoint.

A few people may influence or intimidate the rest of the group.

Group members may engage in satisficing to avoid prolonged debate.

The group may fall into groupthink.

A

A few people may influence or intimidate the rest of the group.

Group members may engage in satisficing to avoid prolonged debate.

The group may fall into groupthink.

135
Q

Goal ______ occurs when the primary goal is subsumed by a secondary goal.

A

displacement

136
Q

Sam follows Fox News Channel on Facebook so she can occasionally see news from a viewpoint that contrasts with the posts on her regular Newsfeed. As a result, Facebook mislabels Sam as “conservative.” What is this an example of?

A

Categorical thinking bias

137
Q

Jai is a member of a tight-knit team at work that avoids any kind of disagreement. Team members, therefore, avoid considering new ideas. What behavior is Jai’s team exhibiting?

A

Groupthink

138
Q

The following are advantages to group decision making except ______.

A

superiors dominating or intimidating the group

139
Q

What are three characteristics that affect decision making by a group? (Choose every correct answer.)

The efficiency of the group

The fact that groups tend to make bad decisions

The knowledge of group members

The size of the group

A

The efficiency of the group

The knowledge of group members

The size of the group

140
Q

During which of the following is positive team spirit and striving for unanimity most likely to lead to poor decision making?

A

Groupthink

141
Q

When rivals are focused on winning an argument rather than the goal of a meeting and the topics of the meeting are not discussed, it is an example of ______.

A

goal displacement

142
Q

Minority occurs when a minority in a group publicly opposes the beliefs, attitudes, ideas, procedures, or policies assumed by the majority of the group.

A

dissent

143
Q

A consensus is reached when all members are able to express their opinions ______.

A

and reach agreement to support the final decision

144
Q

What are common results of groupthink?

A

Failure to consider new information

Loss of new ideas

145
Q

All the following are characteristics of group decision making except _____.

A

groups make decisions quickly

146
Q

What strategies are effective for achieving consensus in a group? (Choose every correct answer.)
Involve as many group members as possible.

Put questions to a vote.

Find ways to trade favors.

Use active listening.

A

Involve as many group members as possible.

Use active listening.

147
Q

When a few members of a group publicly oppose the beliefs, ideas, policies, or procedures assumed by the majority of the group, it is referred to as

A

minority dissent

148
Q

What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart?

A

Brainstorming

149
Q

Even though not everyone in the meeting agreed with the final decision, the group decided to proceed and replace all existing machine parts in the warehouse. In this situation, the group had ______.

A

reached a consensus

150
Q

Brainwriting is the process of brainstorming by using ______.

A

a computer network

151
Q

During meetings, Stacy likes to challenge new ideas, even those that she agrees with, in order to make sure that her team has considered every angle. What role is Stacy playing?

A

Devil’s advocate

152
Q

In a recent team meeting, Terry agreed to vote in favor of rearranging the office so long as his desk would be near a window. Which negative method of achieving consensus does this illustrate?

A

Log rolling

153
Q

Michelle met with her five employees around a table and asked each of them to take five minutes to write down what they personally thought their new facility should include. She then collected the information and wrote it on the white board for all of them to view and decide upon. Michelle is using the ______ technique.

A

brainstorming

154
Q

The managers of Coastal Imports are having a meeting to decide whether the company should raise prices on its best-selling products. During the meeting, the team engages in a debate in which one side argues that the company should lower its prices while the other side argues in favor of raising them. Which problem-solving technique is the group using?

A

Dialectic method

155
Q

Electronic brainstorming, also called ______, is a technique used to help members of a group come together over a computer network to generate ideas and alternatives for solving problems.

A

brainwriting

156
Q

In the devil’s advocacy technique, the group assigns one person to do which of the following?

A

Uncover all possible objections to a plan or an idea.

157
Q

After a major product launch, managers at McLaughlin Industries meet to evaluate outcomes and how those outcomes differ from what the group expected. This approach is part of which group problem-solving technique?

A

Project post-mortem

158
Q

Which strategies are recommended for conducting a successful project post-mortem? (Choose every correct answer.)
Have an agenda.

Encourage honest feedback from all participants.

Wait at least six months after the project concludes to conduct the post-mortem.

Prepare and circulate a written report at the end of the meeting.

A

Have an agenda.

Encourage honest feedback from all participants.

Prepare and circulate a written report at the end of the meeting.

159
Q

Which questions should you ask when developing ready-made solutions based on past experiences? (Choose every correct answer.)
Who was most responsible for the problem?

What was the solution?

What was the problem?

What lessons can you derive from this experience?

A

What was the solution?

What was the problem?

What lessons can you derive from this experience?

160
Q

In the ______ method, groups engage in a structured debate between opposing positions (thesis and antithesis) with the aim of reaching a consensus.

A

dialectic

161
Q

Which steps are recommended for establishing a process or method for making decisions? (Choose every correct answer.)
Consider whether the decision is consistent with your values.

Ignore feedback or opinions from others and go with your gut instinct.

Analyze the situation.

Conduct a cost-benefit analysis.

A

Consider whether the decision is consistent with your values.

Analyze the situation.

Conduct a cost-benefit analysis.

162
Q

What is the goal of conducting a project post-mortem?

A

To determine what could be done better and incorporate those insights into future decisions

163
Q

How does a project post-mortem boost team cohesiveness?

A

Members become closer and better understand others’ contributions.

164
Q

What is the best way to develop a ready-made solution?

A

Identify best practices and turn them into standard operating procedure.

165
Q

What is the recommended step you should take after making a decision?

A

Observe the results, then conduct a post-mortem.