Exam 12: Decision Making Processes

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Management science works best for decisions when problems:

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Describe the difference between programmed decisions and nonprogrammed decisions and provide an example of each.

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Apply the principles of escalating commitment to the following situation to carry it forward in time, imagining what would happen next: You are a marketing manager at PrintCards where you have for ten years had the most successful software for creation of all types of cards in the home or office environment. However, PrintCards is finally faced with competition from a more powerful software package, new to the marketplace, that came in at a price of half that of PrintCards. PrintCards quickly began to lose market share, but initially made no adaptation. New product could not be delivered for months into the future because of the timing of the product development cycle. You made a decision not to change the pricing structure of PrintCards because of your department's analysis that the old higher pricing structure was fitting for a product with such high name recognition. Market share continued to decline.

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_____ refers to the tendency of people in groups to suppress contrary opinions.

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Intuitive decision processes would work best when which of the following factors were dominant:

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Why would managers in high-velocity environments worry more about the present than the future? Discuss.

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The rational approach to decision making is fully achieveable in today's management world.

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A decision interrupt occurs when an organization must cycle back through a previous decision and try something new.

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In the garbage can model of decision making:

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Which of the following is not true regarding decision-making in today's environment?

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The garbage can model shows:

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The bounded rationality approach is often associated with programmed decision processes.

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Discuss the consequences of the garbage can decision process for organizational decision making.

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Intuition is arbitrary and irrational.

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Intuition should not be used in organizational decision making.

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The point of the rational approach is that managers use systematic procedures to arrive at good decisions.

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____ are repetitive and well-defined, and procedures exist for resolving the problem.

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When eighteenth-century politician and diplomat Benjamin Franklin was faced with a difficult problem, he would divide a sheet of paper into two columns labeled "Pro" and "Con" and write down various reasons for or against a particular decision. Over several days Franklin would narrow down the list based on a system of weighing the value of each pro or con until he reached a determination of the best decision. Franklin's approach can best be described as a _____ approach.

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The Carnegie model and the incremental model disagree with each other on how decisions are made--the former claiming that they are made through a political process and the latter claiming that they emerge over time following careful objective analysis.

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Which of the following are characteristics of organized anarchies?

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