Exam 7: Decision Making and Creativity

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According to bounded rationality theory,people make better decisions when their perceptions are "bounded" or framed by past experience.

(True/False)
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The creative process includes,in order,the following stages:

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People with a high need to 'save face' are more likely to:

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Which of the following best describes how we can improve our problem identification skills?

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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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Intuition includes any emotional signals we experience regarding a situation.

(True/False)
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After choosing among several computer server systems,the Director of Information Systems feels very positive about the choice made.However,some of this optimism is due to the fact that the Director forgot about some of the limitations of the chosen system and unconsciously downplays the importance of the positive features of the rejected systems.The Director of Information Systems is engaging in:

(Multiple Choice)
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Intuition is the main strategy to minimize escalation of commitment.

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The contingencies of employee involvement include all of the following EXCEPT:

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Divergent thinking occurs when the individual has a fleeting inspiration that is usually forgotten before it can be written down.

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

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Which of the following is NOT a consequence of post-decisional justification?

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For the past 2,500 years,scholars in most western countries have mainly followed the ____________ model of decision making.

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To choose the best solution,decision makers need clear organizational goals that do not conflict with each other.

(True/False)
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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 $1.5 billion with a deficit of $300 million.Using your knowledge of escalation of commitment,discuss four possible reasons why the government might have been motivated to continue with the project. B.M.Staw,'Expo 86: An Escalation Prototype',Administrative Science Quarterly,31,1986,pp.379-91).Students may identify any three of the four causes of escalation described in the textbook and highlighted below. Perceptual blinders.Government leaders may have had perceptual blinders; they may have unconsciously denied or neutralized negative information about the decision.(In fact,staff reports produced in the early stages of Expo 86 warned of project escalations,but they were either ignored or downplayed by the British Columbia government.Moreover,government leaders presented overoptimistic revenue expectations and they lightly dismissed criticisms of these estimates.) Self-justification.Cancelling Expo 86 would have suggested that the Premier of British Columbia (who originally proposed the fair)made a bad decision,whereas continuing the fair would be a vote of confidence towards his leadership ability.The Premier also may have continued the project because he had repeatedly emphasized the value of the project and to reverse this position would convey an image of inconsistent leadership.Finally,the Premier's decision was face-saving for the entire province because cancellation would jeopardize British Columbia's image as a place where challenges are accomplished rather than abandoned. Closing costs.Discontinuing Expo 86 would have had both economic and political closing costs.(In fact,it was estimated in 1984 that the purely economic price of cancelling Expo 86 was $80 million.)The government had hitched its reputation to the success of Expo 86,so the political costs of cancelling the project would have been very high.

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Which of these statements about creativity is FALSE?

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

(True/False)
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The last step in the rational decision-making model is to evaluate the decision outcomes.

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

(True/False)
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Creative people value self-direction,but also have a strong need to follow rules.

(True/False)
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