MGMT 3000 Chapter 9

Question 1

what are mintzbergs managerial roles?

Answer 1

• interpersonal
• informational
• decisional

Question 2

what type of managerial role has figurehead, leader and liaison characteristics?

Answer 2

interpersonal roles

Question 3

what type of managerial role has monitor, disseminator and spokesperson roles?

Answer 3

informational

Question 4

what type of managerial role has entrepreneur, disturbance handler, resource allocator and negotiator roles?

Answer 4

decisional

Question 5

who has one of only three roles of a manager?

Answer 5

decision maker

Question 6

what are the types of decision?

Answer 6

programmed and nonprogrammer

Question 7

what are programmed decisions?

Answer 7

Involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. Such decisions are made in response to recurring organizational problems

Question 8

what are nonprogrammed decisions?

Answer 8

Are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization

Question 9

what is the primary difference between programed and non programed decisions?

Answer 9

facing certainty and uncertainty

Question 10

what is certainty?

Answer 10

all available information the decision maker needs is fully available

Question 11

what is risk?

Answer 11

the decision has clear cut goals and that good information is available but the future outcomes associate with each alternative are subject to some chance of loss or failure

Question 12

what is uncertainty?

Answer 12

you know which goals you want to achieve but information about alternatives and future events is incomplete

Question 13

what is the most difficult decision situation?

Answer 13

ambiguity

Question 14

what is ambiguity?

Answer 14

the goals to be achieved or the problem to be solved is unclear and alternatives are difficult to define and information about outcomes is unavailable

Question 15

what can create wicked decision problems?

Answer 15

ambiguous situation

Question 16

true or false. for wicked problems there is often no right answer?

Answer 16

true

Question 17

what do the choice among the three main models of decision making depend on?

Answer 17

• managers personal preference
• whether the decision is programmed or non programmed
• the degree of uncertainty

Question 18

what is the classical model based on ?

Answer 18

based on rational economic assumptions and manager beliefs about what ideal decision making should be

Question 19

what does normative mean?

Answer 19

how a decision maker should make a decision

Question 20

what is the administrative model?

Answer 20

use of rational decision making process within the limits of human and environmental factors

Question 21

what does descriptive mean?

Answer 21

how managers actually make decisions in complex situations

Question 22

what is bounded rationality?

Answer 22

people have limited or boundaries on how rational they can be

Question 23

what is satisficing?

Answer 23

choosing the first solution that satisfies minimal decision criteria

Question 24

what is intuition ?

Answer 24

quick apprehension of decision situation based on experience

Question 25

what is the political model?

Answer 25

useful for nonprogrammed decisions when conditions are uncertain, information is limited and there is conflict about goals to pursue or action to take

Question 26

what are decisions the result of in a political model?

Answer 26

bargaining and discussion among coalition members

Question 27

what are the assumptions of the political model?

Answer 27

• organizations are made up of group with diverse interests
• information is ambiguous
• managers do not have time to identify all info regarding a problem

Question 28

what are the assumptions of the classical model?

Answer 28

• problems are defined
• results are calculated
• criteria for alternatives are known
• decision maker is rational and uses logic

Question 29

what is the managerial decision making process?

Answer 29

1. recognition of decision requirement
2. diagnosis and analysis of causes
3. development of alternatives
4. selection of desired alternative
5. implementation of chosen alternative
6. evaluation and feedback

Question 30

what is a problem?

Answer 30

organization has not met one of their goals

Question 31

what is an opportunity ?

Answer 31

managers see potential opportunity in their external environment

Question 32

what is the 5 why’s?

Answer 32

asking why over and over again to explore the root cause underlying a particular problem

Question 33

what is risk propensity ?

Answer 33

willingness to undertake risk in exchange for the opportunity of gaining an increased payoff

Question 34

what are the decision styles for personal decision framework?

Answer 34

• directive
• analytical
• conceptual
• behavioral

Question 35

what is directive style?

Answer 35

prefer simple, clear cut solutions to problems

Question 36

what is analytical style?

Answer 36

base decisions on all available rational data

Question 37

what is conceptual style?

Answer 37

use a broad amount of information to solve problems creatively

Question 38

what is behavioral style?

Answer 38

exhibit a deep concern regarding effect of decision on others

Question 39

why do managers make bad decisions?

Answer 39

• being influenced by initial impressions
• justifying past decisions
• seeing what you want to see

Question 40

what is anchoring bias?

Answer 40

cognitive bias that causes us to rely too heavily on the first piece of information we are given and therefore interpret newer information from the reference point of our anchor instead of seeing it objectively

Question 41

what is loss aversion?

Answer 41

place a higher value on avoiding losses than on potential gains

Question 42

what is confirmation bias?

Answer 42

occurs when the manager puts too much value on evidence that is consistent with a favored belief and discounts evidence that contradicts it