MGT 301 Chapter 7 – Flashcards

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question
Scott has a bachelor's degree in ethics and human resources, and has extensive experience working with employees and managers regarding ethics, especially in the area of ethical dilemmas. With his background of dealing with legal issues, he has assisted extensively in determining if decisions are both ethical and lawful. With Scott's background, he is a top candidate for the company's new _____.
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ethics officer
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Dwight, a hotel general manager, is having serious problems—a substance abuse issue—with one of his housekeeping employees. He knows that because of the seriousness of the issue he needs to talk with the employee. However, his assistant manager asks Dwight if he would like him to deal with it. Dwight knows this is not the best option, but agrees, knowing it is the easy way out. This is an example of _____.
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relaxed change
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With the community interested in eating healthy, Sue Ellen, a restaurant owner, is considering adding more vegetarian dishes to her menu. This decision is uncertain and risky, and she finally decides to go with her gut feelings. This is an example of _______.
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nonrational decision making
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When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false. This is known as ____.
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prior-hypothesis bias
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Chad and his partner, John, have decided to update their computer network, although they have no expertise in this area. During a meeting with John, Chad commented that "Our decision is limited by numerous constraints, such as our understanding of the complexity of technology, time and money, imperfect information, and our conflicting goals." These limitations are hindrances to _____.
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rational decision making
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Sal has been in the landscaping business for over 40 years, and when Donovan, his business partner, suggested adding snow removal as an extra service, Sal responded with "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successfully and not." Sal's response to Donovan is known as _____.
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intuition
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Peter, the owner, is even more committed to making the used copier, which he recently purchased, work even though it keeps jamming and people have been telling him about other problems they have been having with it. Peter is affected by ______.
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the escalation of commitment bias
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Jose, the sales manager, is working on the problem of increasing sales by using the rational model of decision making. In the first step he identified the problem of his employees needing more training. In the second step he thought of alternative solutions; and in step three he evaluated alternatives and selected a solution. In the fourth step, Jose needs to _____.
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implement and evaluate the training program chosen
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Sam is the production manager of a busy shoe factory. He was chosen because prior to his promotion he had proven himself to be very efficient, and as a department manager he had a logical and practical approach to solving problems. Sam has a reputation for being decisive and getting things done. Most of the employees like Sam, but they feel his style is autocratic, as he likes to do things by the book. Sam represents a person with a(n) ______ style.
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directive
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George, a longtime hotel manager, was meeting with Sally, a new manager, and telling her about a recent decision related to whether or not to fire a front desk employee who has had customer service issues. George discussed the four stages of the decision process. He said, "I first identified the problem, and then, I gathered alternative solutions. I then evaluated each choice and selected a solution. I then implemented my decision to add training. Finally, I followed up with an evaluation of what I set in place." With this decision, George is using the ______.
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rational decision-making model
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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? These are four questions that managers of all organizations should ask when confronted with a decision on an action according to _____.
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Bagley's ethical decision tree
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Debbie likes working in the banking industry because there is a lot of structure and certainty, and the daily work is routine. Debbie probably _____.
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has a low tolerance for ambiguity
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Ace Manufacturing has high turnover continually due to issues with the corporate office. Paul, the plant manager, is frustrated and cannot find a solution to stop it. At first he offered raises to many of the good employees who were leaving, but after a while, Paul started blaming those who were leaving, saying, "they are poor-quality employees and they are to blame for leaving." Paul is engaged in ____.
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defensive avoidance
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Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that with all the money already spent on the project, it is too costly to simply abandon it. This is known as ______.
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sunk-cost bias
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ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional database management systems cannot handle its customer needs. Therefore, it purchased very sophisticated analysis software and supercomputing-level hardware. For the company's work with hospitals and university medical schools, ABC has been noted in publications as "real pioneers for innovation and productivity." This vast amount of data is known as ____.
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Big Data
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When it comes to decision making, it is accurate to say that groups _____.
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have higher decision-making accuracy when group members know a good deal about the relevant issues
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Doug is using rational decision making, and the chosen alternative that was implemented does not appear to be working. To correct the situation, the possibilities Doug should consider include _____.
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giving it more time, changing it slightly, trying another alternative, or starting over
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Olivia, the owner of a small city newspaper, started her business two years ago, believing that there was still enough demand for her product. However, because people are busy and with the availability of news online, she has seen the demand for her paper drop steadily. Olivia made a decision to change the original direction of the company and focus more on an Internet news service. By demonstrating that managers need to think and act as if their company is an unfinished prototype, won't be ruined by new ideas and focusing on facts, Olivia is relying on _____.
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evidence-based decision making
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Goal displacement, satisficing, and groupthink are ____.
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disadvantages of group decision making
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In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____
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Is it ethical, feasible, and effective?
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The decision was made by BP and Halliburton executives regarding not taking action with the oil well blowout preventer that experts believe would have prevented the Deepwater Horizon oil rig explosion and fire off the coast of Louisiana, since company management believed that there would be no great negative consequences as a result of their decision. This is an example of ___.
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relaxed avoidance
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Having a greater pool of knowledge, gaining different perspectives, gaining intellectual stimulation, having a better understanding of decision rationale, and having a deeper commitment to the decision are advantages of ____.
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group decision making
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Doug, a new manager, commented to a friend, "I am excited about different aspects of my new job. The company computers have entered the field of decision making. The network not only collects information more quickly, but the system also reduces the roadblocks when I need a group consensus." Doug is referring to _____.
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a computer-aided decision-making system
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Phillip and Meg are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to come down on their price to reflect what the marketplace shows their home is really worth. This is an example of ______.
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anchoring and adjustment bias
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Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—the social aspect of her job. Marie relies on intuition and discussions with others to acquire information. As an interior decorator, Marie utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Marie represents a person with a(n) _____ style.
answer
conceptual
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