Exam 3: Managerial Decision Making

When a solution is specifically designed for a particular problem or set of problems, it is referred to as

Contingency plans should be developed only after a decision has been made and implemented.

The final phase in the decision-making process is

Eva and Brendan disagree sharply about a proposed solution because their backgrounds have given them radically different perspectives. This is an example of

Meyer works for a new start-up technology firm, which has six highly opinionated but very committed employees. The owner of the firm, Zalman, strongly believes that he should make every decision since he is the boss. But Zalman often jumps to conclusions and does not even take time to diagnose the problem at hand because he does not like to ask any of the employees for suggestions. Moreover, Zalman's decisions are usually focused on short-term rather than long-term benefits and costs. At this point, most people in the firm agree that the decision making of the owner is going to destroy the young firm before it really gets started. Zalman's belief that he should make every decision himself by diagnosing the problem as he sees it and then immediately implementing a solution is a(n)

The manager of the Silver Sands Hotel noticed a tremendous decrease in the number of convention bookings. He promptly ordered the redecoration of the hotel's meeting rooms. Customer feedback later indicated that the problem had not been the meeting facilities but poor service from the cleaning staff. In this scenario, to try and solve the problem, the manager should have first tried to

________ is the concept that decision makers cannot be truly rational because decisions are complex and complete information is unavailable.

Discuss the steps that managers should use when implementing a decision.

Goshawk Investments discovers that their company software was hacked and that their clients' sensitive financial information may have been compromised. Jason, the head programmer, was able to quickly detect and shut down the malware that had infected their computer network. The media has already reported the story. However, Fawzia, the CEO, decides to delay making a public statement until the company has had a chance to run diagnostic tests and conduct interviews with senior IT staff about their security protocols. Several other members of the executive management team disagree with this decision. What is wrong with Fawzia's decision, as it relates to the crisis management process?

Important, difficult decisions that require creative approaches tend to be

Describe the elements of an effective crisis management plan.

Taryn, the manager of a graphic design firm, realizes that during meetings people feel strong inhibitions about disagreeing, but when conflicts arise, they become personal and emotional. Taryn has therefore assigned Boris, a colleague, the task of pointing out problems and criticizing ideas to ensure that their downsides are fully explored. Which of the following best describes the procedure used in this scenario?

Safa has identified a problem that consists of a gap between what her company is doing now and what it can do to create a more profitable future. The "problem" that Safa has identified is also a(n)

Which of the following involves weighting short-term costs and benefits more heavily than longer-term costs and benefits?

During a managers' meeting, there is difficulty reaching a decision on which project to fund in the upcoming year. In arguing for funding for her project, Valentina states that she has experience in making all projects succeed. She even states that she is immune to failure. Valentina is displaying

Sunrise Health Systems has hired a consultant to help with organizational decision making. The consultant's first meeting is set up to explain to the managers of Sunrise Health Systems various models of organizational decision processes. Each of the managers seems to prefer one of the models over the others.The chief financial officer (CFO)of Sunrise Health Systems responds most positively to the model that is the most cautious. She explains that the budget process is the easiest decision for her because she breaks it into smaller pieces and builds the decisions as she goes. Which of the following models does the CFO seem to prefer?

Ricardo is the lead on a new project at work, and it is essential that he make a good impression on top management. He recently had his first staff meeting to solve a fairly large problem with the project, and it did not go well. The whole staff of 10 was there, which he thought would lead to buy-in from the group. Instead the group did not get much done in that meeting. Since the first meeting did not go well, Ricardo read several management books on working with groups and thought perhaps a longer meeting would allow time to explore several points of view. He chose a Friday afternoon so everyone could go home afterward and not have to rush off to other work appointments. To his surprise, the first idea he suggested was accepted by the group, and the meeting was over in no time. The group was most likely engaging in ________ so they could end the meeting and go home early.

Discounting the future refers to

The retiring CEO told his successor CEO, "One of your frustrations will be that your people will expect you to make any business decision that you or they wish, since you are, after all, the CEO of this firm. Your people will fail to appreciate the many constraints on your decision making, such as

Groups that are excessively concerned with maintaining a positive team spirit are likely to experience