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

As a manager evaluates alternative solutions to a problem,that is the time to identify opportunities.

Paula,the controller of Tasty Pizza,is purchasing several new delivery vehicles.Paula has numerous work responsibilities,so she has limited time to shop for cars.Because of the time constraints,she cannot make an extensive search for the best alternative but instead needs to look for cars until she finds one that is satisfactory.Paula is following the _____ model.

Research has found that groups tend to make higher-quality decisions than when any individual acts alone.

The model of decision making that explains how managers should make decisions,assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests,is known as the ____.

The prospect theory suggests that ____.

Difficulties that inhibit the achievement of goals are known as _____.

Patty,the CEO of an oil drilling company,and her top management team recently discovered that their facilities are damaging an Asian beach and the local wildlife.They understand that they need to decide if temporarily closing or not closing the facility is unethical.They then consider the four questions: Is not temporarily closing the facility legal? If yes,does this proposed action maximize shareholder value? If yes,is not temporarily closing the facility ethical? If no,would it be ethical not to take the proposed action? These are suggested questions according to _____.

Patricia is the owner of a floral shop.A successful global candle company approached her about selling its products in her shop.Patricia knows this product and company can help her exceed her existing goals.This defines a(n)____.

Paul,who is the CEO of a shoe retailer,needs to make a tough decision on if he should close 3 of the 200 stores that are unprofitable.Identify and explain how the decision tree will assist Paul in making this ethical decision.

Nonrational models of decision making assume that managers have complete information and are able to make the best decision for the organization,describing how managers ought to make decisions.It doesn't describe how managers actually make decisions.

Steve,an owner of IT Services,realized that because customers have so many low- or no-cost options available for training,offering training for Microsoft applications was not in huge demand.Therefore,Steve and his partner made a decision to change the original direction of the company and focus more on computer sales and repair.Steve is an example of how managers need to think and act as if their organization is an unfinished prototype that won't be ruined by dangerous new ideas or is impossible to change.

Microsoft studies correlations between its successful workers and the schools and companies they arrived from,an application of business analytics.

Dwight,a hotel general manager,is having serious problems-a substance abuse issue-with one of his housekeeping employees.He knows that because of the seriousness of the issue he needs to talk with the employee.However,his assistant manager asks Dwight if he would like him to deal with it.Dwight knows this is not the best option,but agrees,knowing it is the easy way out.This is an example of _____.

The Safety Committee at Office Supply Mart was formed to help make the stores a safer place,and some of the suggestions were going to be costly.However,when the vice president of accounting announced the recent report on company profits were much lower than expected,a new secondary goal was established to meet new profit expectations.Having to consider this new goal as a committee is an example of ____.

Doug,a new manager,commented to a friend,"I am excited about different aspects of my new job.The company computers have entered the field of decision making.The network not only collects information more quickly,but the system also reduces the roadblocks when I need a group consensus." Doug is referring to _____.

With an escalation of commitment bias,decision makers increase their commitment to a project despite negative information about it.

Alex is the R&D manager with Digital Copier.The company is having a problem with one of its most popular copiers jamming.The vice president of marketing told Alex that "we need to quickly discover how to make this a desirable situation.You need to determine the underlying cause of the problem and perhaps even make improvements to the copier." This is an example of ____.

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints,such as complexity,time,cognitive capacity,values,skills,habits,and unconscious reflexes,is known as _____.

Harvard Business School Professor Constance Bagley suggests that organizations should never use a decision tree to help with ethical decisions.

George,a longtime hotel manager,was meeting with Sally,a new manager,and telling her about a recent decision related to whether or not to fire a front desk employee who has had customer service issues.George discussed the four stages of the decision process.He said,"I first identified the problem,and then,I gathered alternative solutions.I then evaluated each choice and selected a solution.I then implemented my decision to add training.Finally,I followed up with an evaluation of what I set in place." With this decision,George is using the ______.