Exam 7: Decision Making and Creativity

Post-decisional justification gives people an excessively optimistic evaluation of their decisions, until they receive very clear and undeniable information to the contrary.

The rational choice paradigm assumes that obtaining all possible information about all possible alternatives and their outcomes when selecting the choice with the highest SEU is a complex and time-consuming procedure.

Which of the following is true at the highest level of employee involvement?

One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment.Which of the following practices is closely associated with this argument?

Which of the following is the lowest level of employee involvement?

Decision structure, risk of conflict, and decision commitment are the:

People tend to be more creative when they:

The view that people should and typically do use logic and all available information to choose the alternative with the highest value is known as:

Paragon Company Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors.He has several choices and has done research into which company provides the best services and products.One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available.According to the rational choice decision making process, the first step in solving this problem would be:

Which of the following involves listing different dimensions of a system and the elements of each dimension and then looking at each combination?

The rational choice paradigm selects the choice with the highest utility through the calculation of objective expected utility.

Intuition is based on mental templates or models representing tacit knowledge about a situation.

Incubation is the stage of creativity in which the problem is simmering at the back of your mind while you are doing something else.

Post-decisional justification causes decision makers to forget what decision they made.

Decision makers tend to rely on their implicit favorite when they:

Sarine's Dolls With funding from her family, Sarine is currently developing a new line of dolls for her business which she hopes will take her company to the next level.At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be like she envisioned.Unfortunately, she then found out that there was a patent protecting the way the dolls arms were connected, so she spent more money redesigning the dolls.After an unexpectedly uninterested response from the public in the dolls, she decided that they needed to be marketed differently in order to sell.So Sarine allocated more resources to marketing and had the packaging of the dolls redesigned and created new set of advertising materials.The cost of manufacturing these dolls has now exceeded four times the initial proposed cost, but she is determined to make it work.She is embarrassed by how this has gone, but continues to put on a brave front.What could Sarine have done differently in order to avoid this escalation of commitment with her decisions?

Creativity tends to suffer during times of downsizing and corporate restructuring.

Satisficing refers to:

Prospect theory and closing costs are two reasons why people:

Preconceived mental models formed by our cognitive structure help us make better and accurate decisions.