Chapter 9

Question 1

Course of action from among two or more possible alternatives with the goal of arriving at a solution.

Answer 1

Decision-Making

Question 2

Habit, a rule, or a procedure already in place to help you make the decision.

Answer 2

Programmed decision

Question 3

An unusual or unique situation arises, where there is not a rule or policy in place to handle it.

Answer 3

Non-programmed decision

Question 4

Guide the direction of the business, and have long-term impacts.

Answer 4

Strategic Decision

Question 5

Whether or not to offer a new product line or relocate a factory.

Answer 5

Strategic Decision

Question 6

Help implement the strategic decisions that have been made.

Answer 6

Tactical Decision

Question 7

Day-to-day running of the business.

Answer 7

Operational Decision

Question 8

Rational Decision Making Model

Answer 8

Identify the problem
Identify the criteria
Weight the criteria
Identify alternatives
Analyze alternatives
Make the decision
Evaluate

Question 9

Our judgment being clouded by information already presented.

Answer 9

Anchoring

Question 10

You feel “trapped” in a decision you have made previously.

Answer 10

Sunk Decision

Question 11

Often occurs due to ego, as it can be hard to admit we made a wrong decision.

Answer 11

Sunk Decision

Question 12

Refers to the fact that change can be difficult, therefore it may seem easier to stick with what has already been done or stick with the current decision.

Answer 12

Status Quo

Question 13

Occurs when we believe our abilities, or our companies’ abilities to be better than they are, resulting in misleading of our own abilities or skills.

Answer 13

Overconfidence bias

Question 14

Occurs when a group of people make a decision that isn’t optimal and which is spawned by the urge to conform to what the person believes the group wants.

Answer 14

Groupthink

Question 15

People in the group feel they can’t be “wrong” and therefore may not think thoroughly about the courses of action.

Answer 15

Illusion of invulnerability

Question 16

This can lead people to ignore possible outcomes and moral problems in the decision they are making.

Answer 16

Unquestioned Beliefs

Question 17

Can cause “in-group” members to ignore “out-group” members who may challenge the ideas of the group.

Answer 17

Stereotyping

Question 18

Can cause people to avoid speaking out against what they believe to be the wishes of the group.

Answer 18

Self-censorship

Question 19

Illusions of unanimity

Answer 19

Can lead members to believing everyone is in agreement.

Question 20

This can be placed on members who pose questions and question the group. It can give a feeling that these individuals are unloyal to the group, which often leads to self-censorship.

Answer 20

Direct pressure to conform

Question 21

Helps with group decision making by ensuring that all members participate fully.

Answer 21

Nominal Group Technique
(NGT)

Question 22

A group process using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

Answer 22

The Delphi Technique

Question 23

A decision-making rule in which each member of the group is given a single vote and the option receiving the greatest number of votes is selected.

Answer 23

Majority rule

Question 24

Groups may use when the goal is to gain support for an idea or plan of action.

Answer 24

Consensus

Question 25

Upper level managers tend to make _________ decisions

Answer 25

Strategic

Question 26

Middle managers tend to make ________ decisions.

Answer 26

Tactical

Question 27

Supervisors or “leads” tend to make _________ decisions

Answer 27

Operational