Chapter 9 (289-316)

Question 1

programmed decisions

Answer 1

routine decisions that result in relatively structured solutions

Question 2

non-programmed decisions

Answer 2

novel decisions that require unique solutions

Question 3

strategic decisions

Answer 3

address the long-term direction and focus of the organization

Question 4

operational decisions

Answer 4

focus on the day-to-day running of the company

Question 5

top-down decisions

Answer 5

directive decisions made solely by managers then pass them down

Question 6

decentralized decisions

Answer 6

employees make decisions about their own work

Question 7

rational decision-making process (definition)

Answer 7

assumes that we make decisions systematically to maximize our expected utility

Question 8

expected utility

Answer 8

all the outcomes associated with a decision

Question 9

the rational decision-making process steps

Answer 9

define the problem
set goals
identify alternatives
evaluate alternatives
choose the best alternative
implement the decision and monitor results

Question 10

status quo bias

Answer 10

our tendency to not change what we are doing unless the incentive to change is compelling

Question 11

escalation of commitment

Answer 11

persisting with a failing course of action

Question 12

loss aversion

Answer 12

tendency to experience losses more strongly than gains

Question 13

availability bias

Answer 13

when we can readily remember past instances of an event we think the same thing is more likely to occur

Question 14

representativeness bias

Answer 14

when we overestimate what we are familiar with and underestimate things we aren’t familiar with

Question 15

anchoring and adjustment

Answer 15

making assessments by starting with a familiar starting value then adjusting it based on other elements of the problem

Question 16

halo effect

Answer 16

drawing a general impression about something or someone based on a single characteristic

Question 17

post-decisional decisions

Answer 17

remembering our decisions better than they actually were

Question 18

hindsight bias

Answer 18

how our impression of how we acted changes when we learn the outcome

Question 19

bounded rationality

Answer 19

our rationality is limited by the amount of information we have

Question 20

satisficing

Answer 20

making a satisfactory rather than an optimal decision

Question 21

intuition

Answer 21

knowing something instinctively based on expertise and experience

Question 22

autocratic leadership style

Answer 22

centralizing authority

Question 23

democratic leadership

Answer 23

sharing decision making

Question 24

consultative

Answer 24

seeking input from others but making the final decision alone

Question 25

participative

Answer 25

giving employees a say in the decision

Question 26

group polarization

Answer 26

the tendency of people to make more extreme decisions in a group

Question 27

risky shift

Answer 27

people who tend to make more risky decisions as individuals will make riskier ones in a group

Question 28

groupthink

Answer 28

people start to think more similarly to relate to other;s in the group

Question 29

nominal group technique

Answer 29

a structured variation of a small-group discussion to reach consensus

Question 30

delphi method

Answer 30

shows that group judgments are more important than individual judgments