Organizational Decision-Making

Question 1

Organizational decisions are often classified as ______ or _____.

Answer 1

Programmed (repetitive, routine, policy-based, often low-level);
Nonprogrammed (non-repetitive, complex, require creative problem solving, usually upper level)

Question 2

Decision-making models include what three models:

Answer 2

1. Rational model
2. Bounded rationality model
3. Organizational process model

Question 3

The rational model (AKA classical model; rational-economic model) assumes decision makers choose solutions based on:

Answer 3

Identifying all options and alternatives in an orderly, rational manner.

Question 4

The bounded rationality model holds that, due to organizational factors which limit rationality, people will often ______ rather than optimize.

Answer 4

Satisfice - considering alternatives only until a minimally acceptable alternative is found.

Question 5

According to the Organizational Process model, organizational decisions are limited by an org’s routines and procedures, and decisions depend on:

Answer 5

incremental choices made in response to short-term conditions.

Question 6

Groups decisions making tends to outperform individuals when the task is _______ and group members’ skills are _____.

Answer 6

Complex; complimentary

Question 7

Individuals tend to outperform groups in decision making when a task is _____ structured and requires a high degree of _____.

Answer 7

Poorly; creativity.

Question 8

Groupthink risk is increased by:

Answer 8

1. High degrees of cohesiveness
2. A strong-directive leader
3. Isolation from outside opinions
4. Need for quick decisions

Question 9

5 Symptoms of groupthink:

Answer 9

1. Illusions of invulnerability and moral superiority
2. Collective rationalization
3. Excessive stereotyping
4. Self-censorship
5. People who shield group members from contradictory information.

Question 10

4 ways of combating groupthink

Answer 10

1. Group leaders remain neutral in beginning of discussion.
2. Encouraging expression of opinions
3. Appointing a designated devil’s advocate
4. Bringing in outside opinions

Question 11

Group (or response) polarization is defined as:

Answer 11

the tendency for groups to make more risky or cautious decisions than an individual would make alone. Sometimes known as risky shift.