Exam 4: Foundations of Decision Making

Jill has just been given the assignment of developing the marketing strategy for the company's new product to be released at Christmas. What type of decision making will be required of Jill?

Escalation of commitment occurs when decisions must be made with limited information because decision makers do not have full knowledge and cannot determine even a reasonable probability of alternative outcomes.

The decision- making model assumes individuals differ along two dimensions: the way they think and their tolerance for ambiguity.

The decision- making process concludes with

_________is when a manager evaluates alternatives until she comes to one that meets some minimum standard of sufficiency, selects it, and then goes on to other problems without considering the remaining rational alternatives.

_________implies that the outcome of every alternative is known.

_________requires managers to select the best alternative from multiple criteria or alternative solutions.

Bounded rationality refers to the fact that most managers make consistent, value- maximizing choices within specified constraints.

The tendency for people to base their judgments on information that is readily available is known as

Most managers possess only the characteristics of one decision- making style.

When the petty cash in Elaine's drawer falls to less than $25, she places a request for additional funds to bring the total back to $100. This is an example of a(n)_________decision.

_________occurred when Georgia- Pacific made a decision to spin off its holdings in Texas and Louisiana into the Louisiana- Pacific Corporation.

Compare and contrast the types of problems and the differing types of decisions that are required at the three levels of management.

Mavis Barton Enterprises is in the process of deciding which one of two small successful companies to buy out. This acquisition will increase its number of employees by 22% and its sales revenue by 38%. Mavis Barton is making a programmed decision.

Because bounded rationality affects most managers, decisions made are strongly influenced by all of the following except

Harvey Jones made a decision when he was uncertain of the outcome. The decision he made is likely to be

According to the concept of bounded rationality, decision makers are limited by _________.

The major advantages of electronic meetings are anonymity, honesty, and exchange of information.

_________is a term used to describe a home owner who is selling her house, when she makes a decision to sell her house to the first person who comes along, after getting the initial offer.

Problem identification is a key component of effective decision making.