Management Chapter 7 Answers – Flashcards
Unlock all answers in this set
Unlock answersquestion
choice made from among available alternatives
answer
Decision
question
process of identifying and choosing alternative courses of action.
answer
Decision making
question
Stage 1. identify the problem or opportunity Stage 2. Think up alternative solutions. Stage 3. evaluate alternatives and select a solution. Stage 4. Implement and evaluate the solution chosen.
answer
The stages of Rational Decision Making
question
explains how managers should make decisions, assumes manager will make logical decisions that will be optimum in furthering the organization's interest. also called the classical model.
answer
Rational Model of Decision Making
question
plan carefully be sensitive to those affected.
answer
Successful implementation
question
what should you do if action is not working? give it more time, change it slightly, try another alternative, start over.
answer
Evaluation
question
Complete information, no uncertainty; logical, unemotional analysis; best decision for the organization.
answer
Assumptions of the rational model
question
assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.
answer
Non rational models of decision making
question
suggests that the ability of decision makers to be rational is limited by numerous constraints, complexity time and money, cognitive capacity.
answer
Bounded rationality
question
managers seek alternative until they find one that is satisfactory, not optimal
answer
Satisficing model
question
managers take small, short-term steps to alleviate a problem.
answer
incremental model
question
making a choice without the use of conscious thought or logical inference, sources are expertise and feelings.
answer
Intuition
question
Treat your organization as an unfinished prototype, no brag, just facts, see yourself and your organization as outsiders do, evidence-based management is not just for senior executives. like everything else, you still need to sell it. If all else fails, slow the spread of bad practice. The best diagnostic question: What happens when people fail?
answer
Implementation Principles of Evidence-Based Decision making
question
1. there is too much evidence. 2. there's not enough good evidence. 3. the evidence doesn't quite apply. 4. People are trying to mislead you. 5. you are trying to mislead you. 6. the side effect outweigh the cure. 7. Stories are more persuasive anyway.
answer
What makes it hard to be evidence based?
question
sophisticated forms of business data analysis portfolio analysis, time-series forecast also called business analytics.
answer
Analytics
question
Use of modeling: going beyond simple descriptive statistics Having multiple applications, not just one Support from the top.
answer
Key attributes among analytics competitors.
question
the willingness to gamble or to undertake risk for the possibility of gaining an increased payoff
answer
Risk propensity
question
reflects the combination of how an individual perceives and responds to information value orientation tolerance for ambiguity
answer
Decision-making style
question
people are efficient, logical, practical, and systematic in their approach to solving problems. action-oriented, decisive and likes to focus on facts.
answer
Directive decision making style
question
considers more information and alternatives.
answer
Analytical
question
takes a broad perspective to problem solving like to consider many options and future possibilities
answer
conceptual
question
supportive, receptive to suggestions, show warmth, perfer verbal to written information.
answer
behavioral
question
helps you of you understand yourself, can increase your ability to influence others, gives you an awareness of how people can take the same information and yet arrive at different decisions.
answer
Knowledge of your decision making style
question
Is the Proposed action legal? if yes, does the proposed action maximize shareholder value? if yes is the proposed action ethical? if no would it be ethical not to take the proposed action.
answer
Road map to Ethical decision making: A decision tree
question
relaxed avoidance, relaxed change, defensive change, panic.
answer
Ineffective responses to decision situation
question
- manager decides to take no action in the belief there will be no great negative consequences
answer
Relaxed avoidance
question
manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk
answer
Relaxed change
question
- manager can't find a good solution and follows by procrastinating, passing the buck, or denying the risk of any negative consequences
answer
Defensive avoidance
question
- manager is frantic to get rid of the problem that he can't deal with the situation realistically
answer
Panic
question
Importance "How high priority is this situation?" Credibility "How believable is the information about the situation?" Urgency "How quickly must I act on the information about the situation?"
answer
Three Effective reactions: Deciding to decide
question
Availability bias Confirmation bias Representativeness bias Sunk cost bias Anchoring and adjustment bias Escalation of commitment bias
answer
Common Decision-Making Biases
question
Greater pool of knowledge Different perspectives Intellectual stimulation Better understanding of decision rationale Deeper commitment to the decision
answer
Advantages of Group Decision Making
question
A few people dominate or intimidate Groupthink Satisficing Goal displacement
answer
Disadvantages of Group Decision Making
question
occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation
answer
Groupthink
question
They are less efficient. Their size affects decision quality. They may be too confident. Knowledge counts.
answer
What managers need to know about Groups and decision making
question
process of involving employees in setting goals, making decisions, solving problems, and making changes in the organization.
answer
Participative management
question
occurs when members are able to express their opinions and reach agreement to support the final decision
answer
Consensus
question
technique used to help groups generate multiple ideas and alternatives for solving problems.
answer
Brainstorming
question
ask participants to answer predetermined questions on electronic keypads or dials.
answer
Chauffeur-driven systems
question
involves a meeting within a room of participants who expresses their ideas anonymously on a computer network, for anonymous networking.
answer
group-driven systems
