Exam 4: Foundations of Decision Making

The cultural environment affects decisions made by managers. Which of the following is not correct?

The analytic decision- making style is characterized by low tolerance for ambiguity and a rational way of thinking.

When decision makers construct simplified models that extract the essential features from a problem without capturing all the complexities of a problem, they are acting under which of the following?

Application of Decision Making: A Contingency Approach It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues. -According to Herbert Simon, having the copy machine repaired at 3 times the cost of having it replaced would be an example of

Putting a decision into action and conveying the decision to the persons who will be affected by it is known as

A variation of the electronic meeting that links together media from different locations is

Application of Decision Making: A Contingency Approach It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues. -Situations that are well- structured problems align closely with the assumptions underlying

How do managers know when they have a disparity or discrepancy in the decision- making process? The best way is to compare their current state and some standard. Which of the following would not be a relevant standard?

_________is a situation in which a manager who is deciding how to invest excess cash gets information from the bank that can describes various options available for type of investment, each of which have a guaranteed rate of return.

Explain groupthink.

According to the economist Herbert Simon, satisficing is the most effective approach to management decision- making.

List the steps in the decision- making process.

Nominal group technique allows individuals to operate independently.

The concept of bounded rationality differs from the rational decision- making model in that decision makers tend to select the first reasonable choices that are available or are easy to find.

Lon authorizes an additional $100,000 for the production of the new product. The cost of the new product seems to be increasing far beyond what was planned or even forecast. However, Lon continues to support the project. Lon is engaging in

The rational decision- making process is the basis for all creative work.

Jane just conducted the performance appraisals of five of her employees. Her appraisal was heavily influenced by the performance of the individuals during the last month. Jane's bias is an example of

Intrinsic task motivation is the desire to work on a task or problem because it is interesting, challenging stimulating, and financially rewarding.

When a Little League baseball player dreams of becoming a professional baseball player, he is using a representative heuristic.

Which of the following is not a disadvantage of group decision making?