Question 1

After Crispy Foods Ltd. had poured millions of dollars into the development of a new

Accepted Answer

There are several ways to minimize the risk of escalation of commitment. Four common strate found in the textbook are described below. Students can describe any two of these or may sugg solutions that logically minimize the escalation problem.
Separate decision evaluator from decision maker. The CEO decided to start the project and wa main person to decide when the project should be abandoned. Due to the problem of saving face, these roles should be assigned to different people. In this respect, it is risky to have the CEO directly involved with a corporate project. Instead, the CEO should support product ideas, but remain sufficiently neutral to be able to terminate these projects.
Stop-loss order. To reduce the risk of high expenditures, the company might try to introduce a system in which the CEO and others are prevented from spending money on a project beyond a amount or a certain percentage of expected revenue from the product. In effect, the project wou abandoned if it reaches maximum development expenditures.
Use a source of systemic and clear feedback. This strategy helps in estimating the true cost of p and reduces ambiguous information that contributes to escalation of commitment.
Involve others. Escalation of commitment is less likely to occur when other people are involve decision process because they monitor the key decision maker and see the issue from different perspectives.

Question 2

Utility is the probability (expectancy) of satisfaction (utility) for each alternative.

Accepted Answer

A) Implicit 
B) Rational expected 
C) Anticipated 
D) Evaluative alternative 
E) Subjective expected 
A) Implicit 
B) Rational expected 
C) Anticipated 
D) Evaluative alternative 
E) Subjective expected E

Question 3

When making important decisions, emotional markers guide our preference among the decision alternatives.

Accepted Answer

A) True 
 B)False  True

Question 4

Prospect theory and sunk costs effect are two reasons why people

Accepted Answer

A) engage in escalation of commitment. 
B) make nonprogrammed decisions rather than programmed decisions. 
C) encourage employee involvement. 
D) engage in satisficing. 
E) define problems in terms of preferred solutions. 
A) engage in escalation of commitment. 
B) make nonprogrammed decisions rather than programmed decisions. 
C) encourage employee involvement. 
D) engage in satisficing. 
E) define problems in terms of preferred solutions.

Question 5

When employees are individually asked for specific information but the problem is not described to them, this is an example of a(n)level of employee involvement.

Accepted Answer

A) low 
B) high 
C) sufficient 
D) empowered 
E) medium 
A) low 
B) high 
C) sufficient 
D) empowered 
E) medium

Question 6

Which of the following would be considered employee involvement?

Accepted Answer

A) A legally mandated union-management health and safety committee. 
B) A supervisor casually asking an employee whether the company should adopt a new type of work schedule. 
C) An arrangement whereby employees elect two colleagues to the company's Board of Directors. 
D) A computer program that allows employees to submit information and ideas. 
E) All of these statements are considered employee involvement. 
A) A legally mandated union-management health and safety committee. 
B) A supervisor casually asking an employee whether the company should adopt a new type of work schedule. 
C) An arrangement whereby employees elect two colleagues to the company's Board of Directors. 
D) A computer program that allows employees to submit information and ideas. 
E) All of these statements are considered employee involvement.

Question 7

Employees probably should not make the decision alone (without the manager's involvement) when:

Accepted Answer

A) they possess more knowledge than the manager. 
B) employees are likely to disagree with each other regarding the preferred solution. 
C) they lack commitment to decisions made by the boss alone. 
D) their goals and norms conflict with the organization's objectives. 
E) the problem calls for a nonprogrammed decision. 
A) they possess more knowledge than the manager. 
B) employees are likely to disagree with each other regarding the preferred solution. 
C) they lack commitment to decisions made by the boss alone. 
D) their goals and norms conflict with the organization's objectives. 
E) the problem calls for a nonprogrammed decision.

Question 8

In the late 1970s, the Premier of British Columbia announced that the province would host a transportation exhibition in 1986 with a modest budget of only $78 million. On at least two occasions, administrators recommended cancelling the exposition due to cost overruns and labour troubles, but the government decided to continue with the project. But by the end of Expo 86, the budget exceeded $1

Accepted Answer

(Note: This incident is described in J.

Question 9

The first stage of the creative process is

Accepted Answer

A) divergent thinking. 
B) preparation. 
C) experimentation. 
D) intuition. 
E) insight. 
A) divergent thinking. 
B) preparation. 
C) experimentation. 
D) intuition. 
E) insight.

Question 10

A potentially useful creative practice is to list different dimensions of a system and the elements of each dimension, then think through the potential commercial usefulness of each combination.

Accepted Answer

A) True 
 B)False

Question 11

Employees tend to be less creative in organizations that punish failure.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT explicitly identified as a contingency of employee involvement?

Accepted Answer

A) Risk of conflict 
B) Divergent thinking 
C) Source of decision knowledge 
D) Decision structure 
E) Decision commitment 
A) Risk of conflict 
B) Divergent thinking 
C) Source of decision knowledge 
D) Decision structure 
E) Decision commitment

Question 13

People tend to be more creative when

Accepted Answer

A) they lack personal freedom to try things out. 
B) they have a reasonable level of job security. 
C) they risk losing their job if their ideas fail. 
D) they are secluded from colleagues in other areas of the organization. 
E) they have all of these conditions. 
A) they lack personal freedom to try things out. 
B) they have a reasonable level of job security. 
C) they risk losing their job if their ideas fail. 
D) they are secluded from colleagues in other areas of the organization. 
E) they have all of these conditions.

Question 14

The creative process includes, in order, the following stages

Accepted Answer

A) preparation-incubation-insight-verification 
B) insight-verification-escalation-incubation 
C) preparation-verification-escalation-satisficing 
D) incubation-verification-escalation-satisficing 
E) verification-satisficing-preparation-insight 
A) preparation-incubation-insight-verification 
B) insight-verification-escalation-incubation 
C) preparation-verification-escalation-satisficing 
D) incubation-verification-escalation-satisficing 
E) verification-satisficing-preparation-insight

Question 15

If a decision maker encounters the same problem several times, he or she can increasingly rely on nonprogrammed decision routines to solve the problem.

Accepted Answer

A) True 
 B)False

Question 16

Decision making is an unconscious process of moving toward a desirable state of affairs.

Accepted Answer

A) True 
 B)False

Question 17

A decision maker's need to justify their decision tends to cause

Accepted Answer

A) creative decisions. 
B) the decision maker to look for more alternatives. 
C) more ethical decisions. 
D) confirmation bias. 
E) escalation of commitment. 
A) creative decisions. 
B) the decision maker to look for more alternatives. 
C) more ethical decisions. 
D) confirmation bias. 
E) escalation of commitment.

Question 18

Divergent thinking increases the level of

Accepted Answer

A) escalation of commitment. 
B) programmed decision making. 
C) conflict. 
D) creativity. 
E) bounded rationality. 
A) escalation of commitment. 
B) programmed decision making. 
C) conflict. 
D) creativity. 
E) bounded rationality.

Question 19

Escalation of commitment can be minimized by ensuring that

Accepted Answer

A) those who choose the decision are different from those who implement and evaluate it. 
B) there are ready-made alternatives to resolve the problem. 
C) the team leader has strong opinions about the preferred options. 
D) organizational goals are relatively ambiguous. 
E) the person who makes the decision is also responsible for terminating the project. 
A) those who choose the decision are different from those who implement and evaluate it. 
B) there are ready-made alternatives to resolve the problem. 
C) the team leader has strong opinions about the preferred options. 
D) organizational goals are relatively ambiguous. 
E) the person who makes the decision is also responsible for terminating the project.

Question 20

Describe the rational choice paradigm of decision making.

Accepted Answer

Problem identification marks the first s

After Crispy Foods Ltd. had poured millions of dollars into the development of a new

Utility is the probability (expectancy) of satisfaction (utility) for each alternative.

When making important decisions, emotional markers guide our preference among the decision alternatives.

Prospect theory and sunk costs effect are two reasons why people

When employees are individually asked for specific information but the problem is not described to them, this is an example of a(n)level of employee involvement.

Which of the following would be considered employee involvement?

Employees probably should not make the decision alone (without the manager's involvement) when:

The first stage of the creative process is

A potentially useful creative practice is to list different dimensions of a system and the elements of each dimension, then think through the potential commercial usefulness of each combination.

Employees tend to be less creative in organizations that punish failure.

Which of the following is NOT explicitly identified as a contingency of employee involvement?

People tend to be more creative when

The creative process includes, in order, the following stages

If a decision maker encounters the same problem several times, he or she can increasingly rely on nonprogrammed decision routines to solve the problem.

Decision making is an unconscious process of moving toward a desirable state of affairs.

A decision maker's need to justify their decision tends to cause

Divergent thinking increases the level of

Escalation of commitment can be minimized by ensuring that

Describe the rational choice paradigm of decision making.

Introduction to the Field of Organizational Behaviour

Individual Behaviour

Perceiving Ourselves and Others in Organizations

Workplace Emotions

Foundations of Employee Motivation

Applied Performance Practices

Team Dynamics

Communicating in Organizations

Power and Influence in the Workplace

Conflict and Negotiation in the Workplace

Leadership in Organizational Settings

Designing Organizational Structures

Organizational Culture

Organizational Change

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Exam 7: Decision Making and Creativity

After Crispy Foods Ltd. had poured millions of dollars into the development of a new

Utility is the probability (expectancy) of satisfaction (utility) for each alternative.

When making important decisions, emotional markers guide our preference among the decision alternatives.

Prospect theory and sunk costs effect are two reasons why people

When employees are individually asked for specific information but the problem is not described to them, this is an example of a(n)level of employee involvement.

Which of the following would be considered employee involvement?

Employees probably should not make the decision alone (without the manager's involvement) when:

The first stage of the creative process is

A potentially useful creative practice is to list different dimensions of a system and the elements of each dimension, then think through the potential commercial usefulness of each combination.

Employees tend to be less creative in organizations that punish failure.

Which of the following is NOT explicitly identified as a contingency of employee involvement?

People tend to be more creative when

The creative process includes, in order, the following stages

If a decision maker encounters the same problem several times, he or she can increasingly rely on nonprogrammed decision routines to solve the problem.

Decision making is an unconscious process of moving toward a desirable state of affairs.

A decision maker's need to justify their decision tends to cause

Divergent thinking increases the level of

Escalation of commitment can be minimized by ensuring that

Describe the rational choice paradigm of decision making.

Introduction to the Field of Organizational Behaviour

Individual Behaviour

Perceiving Ourselves and Others in Organizations

Workplace Emotions

Foundations of Employee Motivation

Applied Performance Practices

Team Dynamics

Communicating in Organizations

Power and Influence in the Workplace

Conflict and Negotiation in the Workplace

Leadership in Organizational Settings

Designing Organizational Structures

Organizational Culture

Organizational Change

Filters