Exam 7: Decision Making and Creativity

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The highest level of employee involvement occurs when employees are asked to make recommendations to managers, who then decide whether to implement them.

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The rational choice paradigm states that effective decision makers begin at any step in the model.

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Heuristic is a natural tendency to evaluate probabilities of events or objects by the degree to which they resemble other events or objects rather than on objective probability information.

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Which of the following decision-making activities tends to make the most use of tacit knowledge?

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Mental models have what effect on the decision-making process?

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One reason why the rational choice model doesn't fit reality is that it focuses on logical thinking and completely ignores:

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The incubation stage of creativity is more effective when the decision maker sets aside all other activities and focuses attention on the issue or problem.

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Intuition relies on which of the following?

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The ideas that form during the insight stage of creativity need to be verified through conscious evaluation and experimentation.

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Executives at Switched Enterprises Ltd. want to partner with companies in other regions to distribute their Internet routers and electronic switching equipment. They want to make the decision systematically, but realize that it is not easy to determine whether a particular company will be able to provide effective distribution for this new product area. Discuss how the concepts of sequential evaluation and implicit favourite might make it difficult for Switched Enterprises executives to choose the best alternative.

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A learning orientation is

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Employees should not make the final decision alone when conflict is likely among employees.

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The view that since decision makers have limited information, limited information processing capabilities, and tend toward satisficing rather than maximization of outcomes when making decisions accords with:

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Which of these statements about intuition is TRUE?

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Escalation of commitment is more likely to occur when

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Typically, creative people possess less knowledge and experience on the subject than experts in the field.

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During a meeting, senior executives of a consumer products company tackled the problem that they were late in detecting several consumer trends, such as the trend towards using see-through plastics in kitchenware. While trying to determine the source of this problem, one executive said:

(Multiple Choice)
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The Director of Nursing is looking for a new work schedule for nurses throughout the hospital. She evaluates a schedule system as soon as she learns about it. Eventually, she finds a schedule that is 'good enough' for her needs, even though there may be better schedules available that she hasn't yet learned about. The Director of Nursing is engaging in:

(Multiple Choice)
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Representativeness heuristics is a natural tendency to pay less attention to whether something resembles something else than on more precise statistics about its probability.

(True/False)
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The rational choice paradigm assumes that people rely on logic to evaluate and choose alternatives.

(True/False)
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