Exam 11: Decision Making

Which of the following is a cognitive bias that contributes to the failure of decision makers to acquire enough information to make a good decision?

When Thelma's boss said,"What we have here is a morale problem," what was she doing?

Crowdsourcing can be used to choose the best solution.

Non-programmed decision making

What is escalation of commitment and what are the reasons why it occurs?

What did Nobel Prize winner Herbert Simon recognize?

When is crowdsourcing best employed?

________ and Facebook are two companies that have profited greatly from applying sophisticated analytics to big data to facilitate decisions about targeted advertising.

The fashion business relies heavily on crowdsourcing to guide its choice of designs for production.

Appointing a devil's advocate might be a way to prevent groupthink from occurring in a decision making group.

If a large collection of diverse individuals is likely to contain either a single superior solution to a problem,or on average,the collection will be correct,what would be an appropriate approach to decision making?

A rule is an example of a program for making a decision.

One company strongly identified with the use of ________ is General Electric.

When crowdsourcing is used the crowd in question is usually outside of the organization.

Which of the following problems would most likely be solved with a program (that is,using programmed decision making)?

________ refers to the tendency to seek out information that conforms to one's own definition of or solution to a problem.

Social science research is much appreciated by managers.

Although information overload damages decisions,decision-makers are usually eager to collect a large amount of information.

If group pressure leads to reduced mental efficiency,poor reality testing,and lax moral judgments,________ has probably occurred.

Suzie Desouza,the Manager of Industrial Relations at Zeta Manufacturing,has just come from a ten hour marathon meeting with the union negotiators who represent the workers in the assembly plant.The union leaders have tabled their final offer and are threatening to call a strike if management does not accept it.Suzie now has to meet with her boss,Gordon Wong,and brief him on the union's final offer.Suzie is hopeful that Gordon will accept the union's terms,but she is not sure how to frame the cost arguments in order to achieve this objective.In her meeting with Gordon the next morning she summarizes the impact of the union's offer as follows: "If we accept their offer,it will cost us an extra $10 million over the next three years.However,if we reject their offer,there's a 50 percent chance that it will cost us more than $10 million,perhaps as much as $20 million; but also a 50 percent chance that it will cost us less,perhaps much less." Do you think Gordon will accept or reject the union's offer? Use your knowledge of framing bias to explain why.