Exam 3: Managerial Decision Making

The most constructive type of conflict is affective conflict.

Define psychological biases and explain how they relate to managerial decision making.

_____ is an advantage of using a group for decision making.

Alexia is the manager of Classy Clutches, a store that sells designer purses. Alexia knows that the economy greatly affects her business. Therefore, she is developing alternative courses of action for each of the four possible economic outcomes that may occur over the next four to six years. In this scenario, Alexia is _____.

Which of the following decisions is likely to be a programmed decision?

Everett believes that as long as he pays good wages and treats his workers fairly, he can keep employee turnover to a minimum even though his store is located in a community that is known for having a transient population. Everett's belief is an example of which of the following psychological biases?

Suppose Brett tells Trung that the reason he makes every decision himself is because he believes that he will be able to influence everything that happens in the business. This unrealistic view is called _____.

Risk exists when the probability of an action being successful is less than _____ percent and losses may be higher than gains.

Brett's belief that he should make every decision himself by diagnosing the problem as he sees it and then immediately implementing a solution is a(n) _____.

Explain the four disadvantages of using a group to make decisions.

Alphonso opened the meeting by suggesting to the group that he had put a lot of thought into the problem and that perhaps they should use his ideas to solve the problem. He spent the meeting explaining why this should occur and went on to dismiss any alternatives. Alphonso was practicing _____.

In trying to make a conflict between two employees less personal and emotional, their manager asks each of them to approach the problem from a different viewpoint than their original one. This is an example of encouraging the use of _____.

What is the usual state of affairs in managerial decision making?

Managers who optimize their decisions will attempt to

Since the first meeting didn't go well, Alphonso read several management books on working with groups and thought perhaps a longer meeting would allow time to explore several points of view. He chose a Friday afternoon so everyone could go home afterward and not have to rush off to other work appointments. To his surprise, the first idea he suggested was accepted by the group, and the meeting was over in no time. The group was most likely engaging in _____ so they could end the meeting and go home early.

When Luke words his suggestions as positively as possible, his managers are more likely to be interested in them because of the bias known as the framing effect.

Contingency plans should be developed only after a decision has been made and implemented.

Discuss the various ways to identify and diagnose problems in a decision-making process.

Which of the following statements about brainstorming is true?

A condition that occurs when a decision-making group loses sight of its original goal and a new, possibly less important, goal emerges is known as _____.