Final Exam - Chapter 11

Question 1

strategicdecisions

Answer 1

decisions that set the course for an organization. Changing strategic direction or introducing a new product that requires years of development would represent this type of decision.

Question 2

tacticaldecisions

Answer 2

decisions about how things will get done. For example, issuing a coupon to increase sales would fall into this category.

Question 3

operationaldecisions

Answer 3

decisions that employees make each day to run the organization. Helping serve customer needs through routine interactions or order fulfillment would be an example of this type of decision.

Question 4

rationaldecision-makingmodel

Answer 4

a series of steps that decision makers should consider if their goal is to maximize the quality of their outcomes and make the best choice.

Question 5

analysisparalysis

Answer 5

The availability of too much information and too many choices. more and more time is spent on gathering information and thinking about it, but no decisions actually get made.

Question 6

satisfice

Answer 6

accepting the first alternative that meets your minimum criteria.

Question 7

problem identification

Answer 7

the step in which the need for problem solving becomes apparent.

Question 8

immersion

Answer 8

the step in which the decision maker thinks about the problem consciously and gathers information.

Question 9

incubation

Answer 9

the individual sets the problem aside and does not think about it for a while.

Question 10

illumination

Answer 10

the insight moment, when the solution to the problem becomes apparent to the person, usually when it is least expected.

Question 11

fluency

Answer 11

the number of ideas a person is able to generate.

Question 12

flexibility

Answer 12

how different the ideas are from one another.

Question 13

originality

Answer 13

how unique a person’s ideas are.

Question 14

SCAMPER

Answer 14

a checklist tool that helps you think of changes you can make to an existing marketplace to create a new one—a new product, a new service, or both.

Substitute
Combine
Adapt
Modify
Put to other uses
Eliminate
Rearrange

Question 15

brainstorming

Answer 15

a group process of generating ideas that follow a set of guidelines, including no criticism of ideas during the brainstorming process, the idea that no suggestion is too crazy, and building on other ideas (piggybacking).

Question 16

wildstorming

Answer 16

the group focuses on ideas that are impossible and then imagines what would need to happen to make them possible.

Question 17

anchoring and adjustment bias

Answer 17

the tendency for individuals to rely too heavily on arbitrary numbers, irrelevant traits, or facts when making decisions.

Question 18

availability bias

Answer 18

information that is more readily available is seen as more likely to occur.

Question 19

escalationofcommitmentbias

Answer 19

individuals continue on a failing course of action after information reveals this may be a poor path to follow.

Question 20

fundamentalattributionerror

Answer 20

a bias that exists when positive outcomes are seen as a function of personal characteristics while negative outcomes are attributed to external circumstances.

Question 21

correlationandcausality

Answer 21

confusing correlation with causality

Question 22

groupthink

Answer 22

a tendency to avoid a critical evaluation of ideas the group favors.

Question 23

delphiTechnique

Answer 23

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

Question 24

nominalgrouptechnique(NGT)

Answer 24

a technique designed to help with group decision making by ensuring that all members participate fully.