Exam 7: Individual and Group Decision Making: How Managers Make Things Happen

Greg,Donna,and Paul are on the five-member Benefits Task Force that is researching options for the new benefits package.Over lunch,Greg,Donna,and Paul decided that adding Choice Health Club is a good idea,and that they plan on voting to agree to add it without ever researching and accurately assessing the decision.This is an example of ____.

People with a low tolerance for ambiguity and an orientation toward task and technical concerns in making decisions have an analytical decision-making style.

Malik and his managers spent a large sum of money on the new training program,and they feel that there has been little improvement as a result of the investment.The training is scheduled to continue for two more months,and Malik feels that with all the money already spent on the project,it is too costly to simply abandon it.This is known as ______.

How high priority is this situation? How believable is the information about the situation? How quickly must I act on the information about the situation? These are three questions concerning ways to evaluate _____.

There is usually one best decision-making style that applies to any situation.

Summarize the two things needed for the successful implementation of a decision when using the rational model of decision making.Give examples.

Psychologist Daniel Kahneman describes two kinds of thinking: System 1,which is intuitive and largely unconscious,and System 2,which is analytical and conscious.

George,a restaurant manager,has to make a decision on firing a server who has had customer service issues.Identify the steps of rational decision making,and summarize how George would use each step in the process to handle this situation.

Define the concept of deciding to decide.Give an example with each of the three ways to help you make this decision.

Style Mart uses time-series forecasts,such as past holiday sales and the strength of store sales this year to predict future sales based on patterns of historical data.This is an application of ___.

The rational model assumes that managers have complete information,and they are able to make an unemotional analysis,and make the best decision for the organization.

Goal displacement,satisficing,and groupthink are ____.

Having a greater pool of knowledge,gaining different perspectives,gaining intellectual stimulation,having a better understanding of decision rationale,and having a deeper commitment to the decision are advantages of ____.

Groupthink occurs when group members strive to disagree simply due to issues related to either not believing in the group leader or personal differences.

Doug,the CEO of an auto dealership,has to significantly reduce the hours of many employees due to the high costs from the Affordable Care Act.Doug knows that he is typically successful in implementing the correct alternative in decisions,even with sensitive issues like this,because he carefully plans how he will execute decisions and he is sensitive toward those who are affected.Careful planning and being sensitive typically will result in successful implementation.

In business,the use of time-series forecasts,which predict future data based on patterns of historical data,is an application of evidence-based management.

Says one expert in decision making,consensus is reached "when all members can say they either agree with the decision or had their 'day in court" and were unable to convince the others of their viewpoint.In the final analysis,everyone agrees to support the outcome."

Summarize at least five of the nine common decision-making biases,and give an example of each.

When two customers hit their heads on a new store display,Jim,the manager,decides to just take it down instead of bringing up the issue at the next district sales meeting.This way,Jim avoids the negative aspects involved with group decision making.

When the alternative chosen in a decision does not look like it is working,do not change things.You should always give it more time to work correctly.