Exam 6: Managers As Decision Makers

'Hindsight' bias makes the decision makers falsely believe that they would have accurately predicted the outcome of an event, once that outcome is actually known.

Managers regularly use their intuition in decision making.

Is the Picture Clear? Sharon was the state manager of a pay television company.Daily, she faced many problems and decisions such as how to price different advertising time slots, who to hire, how to prepare for the advent of new technology and how she should handle increasing viewer and sponsor complaints.She needed some help sorting these issues out. -Refer to Is the Picture Clear? (Scenario).Unfortunately, Sharon also faces issues that have information that is ambiguous or incomplete, such as what kind of technology to prepare for.These are known as ________ problems.

Rational managerial decision-making includes choices that maximise value based on ________.

A policy is an explicit statement that tells a manager what he or she ought or ought not to do.

Programmed decisions tend to be repetitive and routine.

The First Job Upon graduation, you search for a job with the university's job placement centre.Although you have studied and prepared to work in an advertising agency, the first job that you are offered is a supervisor in a manufacturing company working the afternoon shift from 3:00 pm until 11:00 pm. -Refer to The First Job (Scenario).If you had made a larger search using the internet and other employment search processes, you might have been able to find more employment opportunities.This would have been a more ________ decision-making process.

Decisions, Decisions Sandra needed help.Her insurance company's rapid growth required making some changes, but what changes? Should they add to the existing system? Buy a new system? She was given the responsibility of analysing the company's information system and deciding what the company should do that would give them plenty of room.She was confused and needed help in making the correct decision. -Refer to Decisions, Decisions (Scenario).When Sandra is conveying her decision to those affected and getting their commitment to it, she is performing which step in the decision-making process?

Decisions, Decisions Sandra needed help.Her insurance company's rapid growth required making some changes, but what changes? Should they add to the existing system? Buy a new system? She was given the responsibility of analysing the company's information system and deciding what the company should do that would give them plenty of room.She was confused and needed help in making the correct decision. -Refer to Decisions, Decisions (Scenario).According to the decision-making process, the second step Sandra should take would be to ________.

The use of 'rules of thumb' in decision-making is known as heuristics.

Decision-making Conditions Helen is the manager for TrucksRUs, a medium-sized hauling service located in Victoria.She is responsible for scheduling trucks, initiating new routes and staffing both existing and new routes.She is currently struggling with existing information about the profitability of existing and future truck routes. -Refer to Decision-making Conditions (Scenario).Ted, Helen's best driver, tells her that he believes that he can estimate there is a 75 per cent probability that they can get the business of Pork Butchers Ltd if they initiate a truck route through rural Warrnambool rather than Horsham.Ted is operating under a condition of ________.

A process of making decisions on the basis of experience and accumulated judgment is ________ decision making.

________ includes conveying a decision to those affected and getting their commitment to it.

What type of decision making is frequently made?

Decisions, Decisions Sandra needed help.Her insurance company's rapid growth required making some changes, but what changes? Should they add to the existing system? Buy a new system? She was given the responsibility of analysing the company's information system and deciding what the company should do that would give them plenty of room.She was confused and needed help in making the correct decision. -Refer to Decisions, Decisions (Scenario).The very last step Sandra should take, according to the decision-making process, would be to ________.

The First Job Upon graduation, you search for a job with the university's job placement centre.Although you have studied and prepared to work in an advertising agency, the first job that you are offered is a supervisor in a manufacturing company working the afternoon shift from 3:00 pm until 11:00 pm. -Refer to The First Job (Scenario).Under bounded rationality, you would be expected to search for a job by ________.

Which of the following factors contrasts the difference between a policy and a rule?

Decision-making Conditions Helen is the manager for TrucksRUs, a medium-sized hauling service located in Victoria.She is responsible for scheduling trucks, initiating new routes and staffing both existing and new routes.She is currently struggling with existing information about the profitability of existing and future truck routes. -Refer to Decision-making Conditions (Scenario).Helen knows that she is operating in an uncertain environment.She is basically a pessimist and we would, therefore, expect her to follow a ________ strategy.

Which of the following is important in effectively implementing the chosen alternative in the decision-making process?

An increased commitment to a previous decision despite evidence that it may have been wrong is referred to as ________.