Chapter 7 Flashcards
A ______ is a choice made from available alternatives.
Decision
Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization’s best interests?
Rational Model
Picking a solution is which step in the rational decision-making process?
Third
The first stage in the rational decision-making process involves
Identifying the problem
Situations that present possibilities for exceeding existing goals are known as
Opportunities
Which of the following is an accurate description of decision making?
The process of identifying and choosing among alternative courses of action
Conducting a ______ involves identifying and analyzing the underlying causes of a problem or an opportunity.
Diagnosis
The rational model of decision making emerged from Adam Smith’s theory, assuming people make rational decisions based on:
Analysis of all potential outcomes
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
Sales Shortfalls, Poor Product quality, Customer complaints
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?
Think up alternative situations
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
Opportunity
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?
Ultimately effective, feasible, ethical
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
Diagnosis
In the fourth stage of rational decision making, managers will
implement and evaluate the chosen solution
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.
Unintended
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.
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.
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.
Bar staff have a brainstorming session to generate ideas for attracting customers; the suggestions get crazy.
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
Sensitivty to those affected by the decision
Careful Planning
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.
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.
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.
Try another alternative.
Change it slightly.
Start over.
Give it more time.
What are the first two steps in the rational decision making model?
generating alternative solutions
determining the issue at hand
Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?
Nonrational Model
The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them.
Prescriptive
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.
Bounded
Picking a solution is which step in the rational decision-making process?
Third
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.
Nonrational
“Close enough is good enough” best characterizes which model of decision making?
Satisficing
What is the third stage of the rational model of decision making?
Evaluate alternatives and select a solution.
Hubris is an extreme sense of which of the following?
Uncertainty
Justice
Confidence
Pride
Confidence
Pride
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:
Bounded Rationality
Making a choice without the use of conscious thought or logical inference is known as using __________
Intuition
What is the name for an intuitive decision based on a person’s years of experience with similar situations?
Holistic Hunch
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
Models that describe how managers actually make decisions
What is defined as an extreme and inflated sense of pride, certainty, and confidence?
Hubris
Which model of decision making emphasizes choosing the first solution that meets the criteria rather than the optimal choice?
Satisficing
Choose a key benefit of using intuition in decision making.
It speeds up the process when deadlines are tight.
Going with your gut,” or ______, is making a choice without the use of conscious thought or logical inference.
Intuition
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.
True
Someone who is trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas, is called a(n) ______.
Ethics officer
When are directors, managers, and employees most likely to engage in unethical behavior?
When they feel compelled to put company interests ahead of their own sense of right and wrong
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?
Automated experience
Bagley’s decision tree is specifically designed for use when
Making ethical choices
Identify the benefits of using intuition in the decision-making process. (Choose every correct answer.)
It can be helpful to managers when resources are limited.
It can speed up decision making.
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?
Is the proposed action a benefit to our competitors?
When it designs and implements ethical principles, a company is attempting to:
Guide employee’s day to day ethical behavior
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
Critical thinking and problem solving
Information technology application
Computational thinking
A graph of decisions and their possible consequences used to create a plan is known as a
Decision Tree
While big data provides organizations access to information, ______ generates insights to inform decisions.
AI
Analytics
When using the ethical decision tree, management should consider whether a proposed action is both legal and ______.
Ethical
Which scenario lends itself to descriptive analytics?
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.
The practice ground for computers to learn, improve, and make accurate decisions is:
Big data
According to Bagley, what should businesspeople use as a guide for making good ethical decisions?
Their own sense of right and wrong
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.
Phoebe had a stack of applicants but wanted to hire the right person; she desired to know their production potential.
Soft skills do not have a role in evidence-based decision making.
False
Which of these are examples of business analytics?
Portfolio analysis
Time-series forecast
Which evaluation tool combines historical data with statistical models and machine learning to make predictions?
Predictive Analytics
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.
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.
The process of gathering and analyzing high-quality data to develop and implement a plan of action is called:
evidence-based decision making
Which choice defines computers using algorithms and statistical models to detect data patterns without being explicitly programmed?
Machine learning
Data collected from your smartphone, online gaming sessions, internet searches, and smart appliances best illustrate which feature of big data?
Variety
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.
Analytics
Which big data characteristic refers to the quantity of data and the storage capacity required to house it?
Volume
A business uses a high velocity of data to:
Run reports real time
The term veracity, as it applies to big data, means:
Source Credibility
When referring to a dimension of big data, the term value means:
Data’s insight yield
The variety element of big data represents:
the different sources created by humans and machines
Which application of big data is typically used by employees at the top managerial level of an organization?
Influencing others to support data-driven decisions
In terms of big data, what does velocity mean?
the speed of data generation
How does missing, fake, or inaccurate data create problems?
It skews the data patterns, making the determination of meaningful results difficult.
Lower-level managers often focus on analyzing and safeguarding data, which require the ______ career readiness competencies of computational thinking and information technology application.
Hard
Which of these tools identifies trends and relationships within big data?
Descriptive Analytics
Research shows an organization’s data and analytics capabilities improve its ______.
Productivity