Question 1

Prospect theory and self-justification are the main causes of satisficing.

Accepted Answer

A) True 
 B)False  False

Question 2

In decision making,creativity is used:

Accepted Answer

A) to find problems. 
B) to identify alternatives. 
C) to implement solutions more effectively. 
D) to assist all stages of decision making. 
E) Creativity is not part of the decision-making process. 
A) to find problems. 
B) to identify alternatives. 
C) to implement solutions more effectively. 
D) to assist all stages of decision making. 
E) Creativity is not part of the decision-making process. D

Question 3

Creative ideas can emerge when asking people unfamiliar with the problem to explore the problem with you.

Accepted Answer

A) True 
 B)False  True

Question 4

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 how self-justification and prospect theory effect help explain 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.
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.
Prospect theory effect.People have more aversion to losses than to gains,and they are more willing to risk taking losses than receiving gains.Thus,the Premier may have poured more money in because it would be more painful to stop the project.In other words,they may have had inflated expectations of their ability to overcome problems that faced the project.
Difficulty: Medium
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
McShane - Chapter 07 #165
Topic: 07-18 Escalation of Commitment

Accepted Answer

(Note:This incident is described in J.Ro

Question 5

Decision makers tend not to evaluate various alternatives when they find an opportunity.

Accepted Answer

A) True 
 B)False

Question 6

Millions of dollars were wasted on the development of a new machine-made potato chip,at Fancy Chips Ltd.As a result,the Board of Directors of the food-processing firm fired the CEO who had proposed and championed the product's development.The new CEO's first task is to find out why this monumental waste of money had occurred and how it can be prevented in the future.Provide three possible explanations why this escalation of commitment occurred at Fancy Chips Ltd.

Accepted Answer

Students may identify any three of the f

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

The creative process includes,in order,the following stages:

Accepted Answer

A) incubation-verification-escalation-satisficing 
B) verification-satisficing-preparation-insight 
C) insight-verification-escalation-incubation 
D) preparation-incubation-insight-verification 
E) preparation-verification-escalation-satisficing 
A) incubation-verification-escalation-satisficing 
B) verification-satisficing-preparation-insight 
C) insight-verification-escalation-incubation 
D) preparation-incubation-insight-verification 
E) preparation-verification-escalation-satisficing

Question 9

____________ utility is the probability (expectancy)of satisfaction (utility)for each alternative.

Accepted Answer

A) Evaluative alternative 
B) Subjective expected 
C) Anticipated 
D) Rational expected 
E) None of the answers apply. 
A) Evaluative alternative 
B) Subjective expected 
C) Anticipated 
D) Rational expected 
E) None of the answers apply.

Question 10

Satisficing occurs when people continue on a failing course of action.

Accepted Answer

A) True 
 B)False

Question 11

Employees tend to be more creative when they:

Accepted Answer

A) avoid risk-taking. 
B) enjoy abiding by rules and status. 
C) have a high need for social approval. 
D) value obedience to their bosses. 
E) have none of these characteristics. 
A) avoid risk-taking. 
B) enjoy abiding by rules and status. 
C) have a high need for social approval. 
D) value obedience to their bosses. 
E) have none of these characteristics.

Question 12

Creative people have a high degree of nonconformity and have less concern about social approval.

Accepted Answer

A) True 
 B)False

Question 13

The most accurate view of intuition is that it:

Accepted Answer

A) is a trait that people acquire mainly through heredity. 
B) is more likely to be found in men than women. 
C) is acquired more quickly by people whose careers span several unrelated industries. 
D) is the ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning. 
E) does not really exist. 
A) is a trait that people acquire mainly through heredity. 
B) is more likely to be found in men than women. 
C) is acquired more quickly by people whose careers span several unrelated industries. 
D) is the ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning. 
E) does not really exist.

Question 14

The decision maker's emotions play an important role in his or her identification of a problem or opportunity.

Accepted Answer

A) True 
 B)False

Question 15

Recent studies of human decision making conclude that which of the following ultimately energizes us to select the preferred choice?

Accepted Answer

A) Logic 
B) Emotions 
C) An implicit favourite 
D) Creativity 
E) Intuition 
A) Logic 
B) Emotions 
C) An implicit favourite 
D) Creativity 
E) Intuition

Question 16

Escalation of commitment is more likely to occur when:

Accepted Answer

A) the decision maker has a strong need to justify their decision. 
B) the costs of ending the project are high or unknown. 
C) the decision maker screens out negative information about the decision due to perceptual defence. 
D) The decision maker dislikes losing a particular amount more than he/she likes gaining the same amount. 
E) all of these conditions exist. 
A) the decision maker has a strong need to justify their decision. 
B) the costs of ending the project are high or unknown. 
C) the decision maker screens out negative information about the decision due to perceptual defence. 
D) The decision maker dislikes losing a particular amount more than he/she likes gaining the same amount. 
E) all of these conditions exist.

Question 17

Incubation is a unique activity in organizational settings for increasing creativity.Describe this stage of creativity and explain what employees need to do to improve the incubation process.

Accepted Answer

Incubation is the stage of reflective th

Question 18

An executive was trying to think of ways to increase sales of ballpoint pens among young people.While walking down a street with lots of neon signs,the executive got the idea that young people would want to buy pens with ink in bright neon colours and with pen containers that glow in the dark.This situation is an example of:

Accepted Answer

A) divergent thinking. 
B) escalation of commitment. 
C) devil's advocacy. 
D) bounded rationality. 
E) programmed decision making. 
A) divergent thinking. 
B) escalation of commitment. 
C) devil's advocacy. 
D) bounded rationality. 
E) programmed decision making.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Escalation of commitment may be corrected by ensuring that those involved in choosing decision alternatives are also responsible for evaluating the implemented solution.

Accepted Answer

A) True 
 B)False

Prospect theory and self-justification are the main causes of satisficing.

In decision making,creativity is used:

Creative ideas can emerge when asking people unfamiliar with the problem to explore the problem with you.

Decision makers tend not to evaluate various alternatives when they find an opportunity.

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.

The creative process includes,in order,the following stages:

____________ utility is the probability (expectancy)of satisfaction (utility)for each alternative.

Satisficing occurs when people continue on a failing course of action.

Employees tend to be more creative when they:

Creative people have a high degree of nonconformity and have less concern about social approval.

The most accurate view of intuition is that it:

The decision maker's emotions play an important role in his or her identification of a problem or opportunity.

Recent studies of human decision making conclude that which of the following ultimately energizes us to select the preferred choice?

Escalation of commitment is more likely to occur when:

Incubation is a unique activity in organizational settings for increasing creativity.Describe this stage of creativity and explain what employees need to do to improve the incubation process.

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

Escalation of commitment may be corrected by ensuring that those involved in choosing decision alternatives are also responsible for evaluating the implemented solution.

Introduction to the Field of Organizational Behaviour

Individual Behaviour, Personality, and Values

Perceiving Ourselves and Others in Organizations

Workplace Emotions, Attitudes, and Stress

Foundations of Employee Motivation

Applied Performance Practices

Team Dynamics

Communicating in Organizations Revised

Power and Influence in the Workplace

Conflict and Negotiation in the Workplace Revised

Leadership in Organizational Settings

Designing Organizational Structures

Organizational Culture

Organizational Change

Filters

Exam 7: Decision Making and Creativity

Prospect theory and self-justification are the main causes of satisficing.

In decision making,creativity is used:

Creative ideas can emerge when asking people unfamiliar with the problem to explore the problem with you.

Decision makers tend not to evaluate various alternatives when they find an opportunity.

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.

The creative process includes,in order,the following stages:

____________ utility is the probability (expectancy)of satisfaction (utility)for each alternative.

Satisficing occurs when people continue on a failing course of action.

Employees tend to be more creative when they:

Creative people have a high degree of nonconformity and have less concern about social approval.

The most accurate view of intuition is that it:

The decision maker's emotions play an important role in his or her identification of a problem or opportunity.

Recent studies of human decision making conclude that which of the following ultimately energizes us to select the preferred choice?

Escalation of commitment is more likely to occur when:

Incubation is a unique activity in organizational settings for increasing creativity.Describe this stage of creativity and explain what employees need to do to improve the incubation process.

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

Escalation of commitment may be corrected by ensuring that those involved in choosing decision alternatives are also responsible for evaluating the implemented solution.

Introduction to the Field of Organizational Behaviour

Individual Behaviour, Personality, and Values

Perceiving Ourselves and Others in Organizations

Workplace Emotions, Attitudes, and Stress

Foundations of Employee Motivation

Applied Performance Practices

Team Dynamics

Communicating in Organizations Revised

Power and Influence in the Workplace

Conflict and Negotiation in the Workplace Revised

Leadership in Organizational Settings

Designing Organizational Structures

Organizational Culture

Organizational Change

Filters