Exam 8: Fundamentals of Decision Making

Alternative solutions range from the known and well defined to the untried and ambiguous.

Grant Rollo is an engineer in the R&D department of Purina Foods. During the ten years he has worked for the company, he has made a series of small, interrelated decisions as part of the development of novel new pet stores. Rollo's decision making at Purina illustrates __________.

Dunkin' Donuts, one of the largest coffee and baked goods chains in the world, recently made a(n) _________ decision when they decided to partially imitate Starbucks and other firms.

Decisions may be classified as routine, innovative, and adaptive.

The __________ decision-making model is described in terms of the self-interests and goals of powerful internal and external stakeholders.

Which of the following may be types of crises that create uncertainty and risk?

The __________ model of decision making may be especially useful for resolving conflicts among stakeholders with divergent goals and/or divergent preferences for actions to be taken.

__________ involves bringing new stakeholder representatives into the strategic decision-making process as a way of averting threats to an organization's stability or existence.

A person who easily recalls specific instances of an event may overestimate how frequently the event occurs. This is an example of __________ bias.

Shoes for Crews, headquartered in West Palm Beach, Florida, developed a unique warranty as a way to reduce customers' sense of _____________ regarding the company's shoes.

The considerations of certainty, risk, and uncertainty provide an underpinning to the basic types of decisions-routine, adaptive, and innovative.

Every day, managers typically make decisions using a process that includes all of the following basic elements except __________.

If an individual is able to influence or control individual, departmental, team or organizational decisions and goals, the individual has __________.

Steven Trevino has been asked to schedule 10 of his employees for overtime. Trevino can determine the cost of the overtime in an environment of __________.

Erika Bhately works for a large toy manufacturing company. Her first supervisor, Amanda Carter, was unfair, unsupportive, and often used Bhately's ideas without giving her credit. Bhately's current supervisor, Erin Phillips, is supportive and friendly, but Bhately is unwilling to trust Phillips. Bhately appears to be applying the _________ bias.

The __________ decision-making model prescribes a set of phases that individuals or teams should follow to increase the likelihood that decisions will be logical and optimal.

__________ bias means that vivid, direct experience usually prevails over abstract information.

Ali and Ana Hakeem are on vacation in New York City. They would like to go to a good Italian restaurant for lunch. There are at least 200 Italian restaurants in Little Italy. Ali and Ana will probably use the __________ model of decision making to select a restaurant.

Roberto Olvera is a city manager. Morale at the new water treatment plant is at an all time low due to a succession of incompetent facility managers. As Olvera is called into the hiring process, it is essential that a successful job search take place this time. He is making a __________ decision.

Liesl Lemmond is president of McFadden Industries. She needs to choose a marketing plan. Lemmond knows all about the problem, alternative plans are obvious, and the results of each plan are clear. Lemmond will make her decisions under a condition of __________.