Organizational Structure Flashcards
A _____ is a choice made from available alternatives.
decision
According to Kahneman, System 1 thinking is _____.
intuitive and largely unconscious
List the steps of the rational model of decision making in the correct order, with the first step listed at the top and the last step listed at the bottom.
- Identify the problem/opportunity
- Think of alternative solutions
- Evaluate alternatives and select a solution
- Implement and evaluate the solution chosen
Select all that apply
Which of the following function as the first stage in rational decision making by managers?
customer complaints
poor product quality
sales shortfalls
Select all that apply
Which of the following are true regarding the second stage in the rational model of decision making?
Creativity precedes innovation and has been described as the source of all intellectual property.
Once you have identified a problem or an opportunity and diagnosed its causes, you need to come up with both obvious and creative alternative solutions.
Which of the following is an accurate description of decision making?
the process of identifying and choosing alternative courses of action
What is the third stage of the rational model of decision making?
Evaluate alternatives and select a solution
Select all that apply
According to Kahneman, which of the following characteristics describe System 2 thinking?
Deliberate, analytical, conscious
In the fourth stage of rational decision making, managers will _____.
implement and evaluate the chosen solution
Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization’s best interests?
the rational model
Select all that apply
Which of these assumptions are made in the rational model of decision making?
Managers will always select the course of action that they know will most benefit the organization.
Managers have complete, error-free information about alternative courses of action and their consequences.
Managers are able to make logical decisions without prejudice or emotional blind spots.
The first stage in the rational decision-making process involves _____.
identifying the problem
Which models are characteristic nonrational models of decision making?
Models that describe how managers actually make decisions rather than how they should
What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?
Employees with ideas
The concept that suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time and money, and their cognitive capacity, values, skills, habits, and unconscious reflexes, is known as ______________ rationality.
bounded
Select all that apply
Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?
Is it ethical?
Is it feasible?
Is it ultimately effective?
Which model of decision making emphasizes choosing the first solution that meets the criteria rather than the optimal choice?
satisficing
Select all that apply
Successful implementation of major decisions requires which of the following?
Careful planning and sensitivity to those affected by the decision
“Going with your gut,” or _____, is making a choice without the use of conscious thought or logical inference.
intuition
The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them.
prescriptive
Select all that apply
Which of these are reasons for chief executive officers (CEOs) getting increasingly ousted for ethical violations in the 21st century?
Globalization allows businesses to operate in regions where ethical risks are greater.
The 24/7 news cycle places more scrutiny on unethical behavior.
Digital communications are more susceptible to hackers and whistleblowers.
Satisficing and intuition are two ____________ models of decision making.
nonrational
A graph of decisions and their possible consequences used to create a plan is known as a(n) ______.
decision tree
Simon believed that managers can never act truly logically because of their __________.
bounded rationality
Evidence-based management attempts to introduce which factor into the decision-making process?
rationality
“Close enough is good enough” best characterizes which model of decision making?
satisficing
Making a choice without the use of conscious thought or logical inference is known as using ___.
intuition
Select all that apply
Which of these are examples of business analytics?
Time-series forecast
Portfolio analysis
True or False
CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.
True
True or False
CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.
True
Constance Bagley’s decision tree is specifically designed for use when _____.
making ethical choices
A data-mining technique used to predict future behavior and anticipate the consequences of change is known as _____ modeling.
predictive
Evidence-based decision relies on ______.
observations about what actually works
Select all that apply
Which of the following are examples of Big Data?
surveillance data
social network communications
data in corporate databases
web browsing data trails
A person’s decision-making style is a combination of how a person perceives something as well as _____.
how they respond to it
Sophisticated forms of business data analysis are known as business _________.
analytics
Value orientation reflects the extent to which an individual focuses on which of the following dimensions?
People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task-oriented. They are efficient, logical, and practical in their approach to solving problems and making decisions. Which style do they use?
directive
True or False
Predictive modeling is a groupthink technique.
False
Select all that apply
Analytical decision makers:
take time to make decisions
may overanalyze a situation
Stores of data that are so large or complex that it is difficult to process them using traditional database management applications are known as _____.
Big Data
Select all that apply
Decision-making styles vary along which two dimensions?
Tolerance for ambiguity
Value orientation
Select all that apply
People with a conceptual decision-making style are likely to do which of the following?
Rely on intuition, find creative solutions, and take risks
_____________ reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions.
value orientation
Select all that apply
People with a behavioral decision making style are more likely to:
have a hard time saying no and avoid conflict
People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problems and making decision. Which style do they use?
directive
Select all that apply
Which of these describe how knowledge of decision-making styles affects managers’ work?
It gives managers an understanding of how different people reach different conclusions.
It allows managers to better identify personal strengths and weaknesses.
Which one of the following best describes the decisions made by a person with an analytical style?
Carefully considers lots of information and alternatives.
______ are strategies such as “rules of thumb” that simplify decision-making.
heuristics
In the ______ bias, managers use information readily available from memory to make judgments.
availability
Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?
conceptual
Which decision-making style is the most people-oriented of the four styles?
behavioral
The _____ bias reflects our tendency to generalize from a small sample or single event.
representativeness
Knowledge of decision-making styles can assist managers in many ways except for which one of the following?
It increases the biases of the managers toward their favorite style.
Heuristics are strategies that ______ the process of making decisions.
simplify
“Don’t tell me the truth; just tell me what I want to hear” is an example of the _______ bias.
confirmation
True or False
The availability bias means that your manager may give more weight to your most recent work rather than everything you have done over the course of year.
True
Apex Enterprises spent a large amount of money to customize a pumping system it bought many years ago. A supplier is now offering a new pumping system that will save the company money in the long term. However, Apex decides to keep the older system because it has already spent so much money on the older system. What type of bias is this an example of?
sunk-cost
A manager that hires all applicants that have graduated from a certain college because a particularly good employee came from that same college is an example of _____.
representativeness bias
Sam gave employees a 5% raise last year and expects to give the same percentage raise this year, even though it will push his company’s salaries above what is normally paid in the industry. This is an example of the _____ bias.
anchoring and adjustment
The _____ bias occurs when people seek data to support their point of view and disregard information that does not support it.
confirmation
You fall prey to the overconfidence bias when you ______ your knowledge or expertise in a decision situation.
overestimate
In the ______ bias, managers use information readily available from memory to make judgments.
availability
Which of these is another term for hindsight bias?
the “I knew it all along” effect
The ______ bias is demonstrated when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.
sunk cost
The tendency of decision makers to be influenced by the way a situation or problem is presented to them is referred to as the ___ bias.
framing
Samantha had never traveled to New York City before, but she had been on a recent business trip to Houston. When she learned that the hotel room she wanted in New York City cost $300 per night, she was shocked, because she thought the hotel rooms would be priced similarly to those in Houston. This is an example of the _____ bias.
anchoring and adjustment
Artificial intelligence aids human decision making by exhibiting superior performance in which of the following activities?
Building and analyzing models and simulations to make predictions
True or False
Overconfidence bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them.
False
Select all that apply
Which of these are areas in which experts believe AI can be applied to decision making?
assisted intelligence, augmented intelligence, and autonomous intelligence
The tendency of people to view events as being more predictable than they really are is referred to as ___ bias.
hindsight
Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect?
economic growth will double
Bob was unsure how his boss was going to react to his proposal, so he was careful to put an upbeat “spin” on the situation to emphasize the positive aspects rather than the negative aspects. Bob’s method of presenting the situation demonstrates the ___ bias.
framing
In what way is artificial intelligence expected to make business and personal data safer?
By monitoring and deflecting the activities of hackers
What type of bias refers to the tendency to make decisions based on an initial figure that may or may not be in line with market realities?
anchoring and adjustment
Which of the following is an advantage of group decision making?
intellectual stimulation
Artificial intelligence lacks which key feature of human intelligence?
common sense
When rivals are focused on winning an argument rather than the goal of a meeting and the topics of the meeting are not discussed, it is an example of _____.
goal displacement
An __ intelligence system learns from human inputs in order to assist humans in making better decisions.
augmented
By 2035, artificial intelligence is expected to have what effect on labor productivity?
It will increase labor productivity by as much as 40%
One thing groupthink teaches us is that cohesiveness:
isn’t always a good thing
Select all that apply
Which of the following are ways in which artificial intelligence is expected to improve the interactions between businesses and employees or consumers?
Tailoring products to the personal needs and preferences of individual consumers.
Eliminating human bias from human resources decisions.
Reducing work demands and freeing up more time for family or leisure.
All of the following are advantages to group decision making EXCEPT _____.
superiors can dominate or intimidate the group
Match each symptom of groupthink with its explanation.
a. sense of invulnerability
b. rationalization
c. illusion of unanimity
d. the wisdom of crowds
a. sense of invulnerability - Group members have the illusion that nothing can go wrong, breeding excessive optimism and risk taking.
b. rationalization - Pet assumptions underlying the group’s decisions are protected from critical questions.
c. illusion of unanimity - A group member’s silence is interpreted as consent.
d. the wisdom of crowds - Groupthink’s pressure to conform can lead members with different ideas to censor themselves.
Goal _____ occurs when the primary goal is subsumed by a secondary goal.
displacement
Select all that apply
What are three characteristics that affect decision making by a group?
The knowledge, size, and efficiency of the group
Turbine Manufacturing uses artificial intelligence in its factories to automate basic tasks, freeing human employees to perform more high-level finishing and quality assurance tasks. Which area of artificial intelligence does this illustrate?
assisted intelligence
Even though not everyone in the meeting agreed with the final decision, the group decided to proceed and replace all existing machine parts in the warehouse. In this situation, the group had _____.
reached a consensus
Select all that apply
What are common results of groupthink?
Loss of new ideas
Failure to consider new information
What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart?
brainstorming
Select all that apply
What are symptoms of groupthink?
an illusion of unanimity
rationalization
a sense of invulnerability
Electronic brainstorming, also called _____, is a technique used to help members of a group come together over a computer network to generate ideas and alternatives for solving problems.
brainwriting
All the following are characteristics of group decision-making EXCEPT _____.
groups make decisions quickly
In the devil’s advocacy technique, the group assigns one person to do which of the following?
uncover all possible objections to a plan or idea
A consensus is reached when all members are able to express their opinions ______.
and reach agreement to support the final decision
The managers of Coastal Imports are having a meeting to decide whether the company should raise prices on its best-selling products. During the meeting, the team engages in a debate in which one side argues that the company should lower its prices while the other side argues in favor of raising them. Which problem-solving technique is the group using?
the dialectic method
After a major product launch, managers at McLaughlin Industries meet to evaluate outcomes and how those outcomes differ from what the group expected. This approach is part of which group problem-solving technique?
project post-mortem
Michelle met with her five employees around a table and asked each of them to take five minutes to write down what they personally thought their new facility should include. She then collected the information and wrote it on the white board for all of them to view and decide upon. Michelle is using the _____ technique.
brainstorming
Brainwriting is the process of brainstorming by using _____.
a computer network
During meetings, Stacy challenges new ideas, even those that she agrees with, in order to make sure that her team has considered every angle. What role is Stacy playing?
devil’s advocate
In the ______ method, groups engage in a structured debate between opposing positions (thesis and antithesis) with the aim of reaching a consensus.
dialectic
What is the goal of conducting a project post-mortem?
To determine what could be done better and incorporate those insights into future decisions
