Exam 7: Decision Making, Learning, Creativity, and Entrepreneurship

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Compare and contrast programmed and nonprogrammed decision making in organizations.

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Explanation:Programmed decision making is a routine, virtually automatic process. These are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur. Nonprogrammed decision making is required for nonroutine decisions. These decisions are made in response to unusual or novel opportunities and threats. It occurs when there are no ready-made decision rules that managers can apply to a situation.

Identifying all relevant information for a decision means the manager has complete information.

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To avoid production blocking that occurs during brainstorming, the nominal group technique is often used.

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Discuss the perils of groupthink.

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The optimum decision is the most appropriate decision possible in light of what managers believe to be the most desirable consequences for the organization.

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Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?

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_____ occurs when individuals in a team strive for agreement among themselves rather than assessing information accurately.

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An organization in which managers enable subordinates to think creatively in order to maximize the potential for organizational learning is called a(n):

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Scott finds information that counters the claims of the production team. However, Scott decides to ignore the new-found evidence in support of the team's decision. Scott is being adversely influenced by:

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Corey has been looking at several alternative locations for his new facility and performs a cost-benefit analysis in order to determine the net financial payoff of each location. Which criterion of decision making is Corey focusing on?

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Escalating commitment is the tendency of decision makers to overestimate their ability to control activities and events.

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Individual decision making is superior to group decision making in several respects.

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Two separate groups of managers are given a problem to solve, and then each group presents its proposed solution to top management in an attempt to determine the best course of action. This process is called:

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_____ refers to the loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.

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Managers with limited expertise are more likely to make better intuitive judgments than those with greater expertise.

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Cognitive biases enable managers to make good decisions.

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Define entrepreneurship and explain three ways that organizations can promote intrapreneurship.

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The administrative model developed by March and Simon fails to explain why decision making is always an inherently uncertain and risky process.

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Dan, the president of Bank Missouri, is attempting to determine whether the bank has both the capability and the resources to open a branch facility in a new location. Which criterion of decision making is Dan focusing on?

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Brainstorming is a group problem-solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.

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