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

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

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.

With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal.

A technique used to help groups generate multiple ideas and alternatives for solving problems is known as _____.

Gregory was talking with Tom, his assistant manager, saying, "When I make a decision on which employee to pick to do a project, I use three simple factors, which I call my decision making "rules of thumb." I consider their attitude and knowledge, and how hard they work." Gregory's rules of thumb, which he uses in decision making, are known as _____.

Dwayne, the sales manager of IT Sales, mentioned to his assistant, Marla, "I just got off the phone with one of our best customers and he told me about quite a few customer service issues, and I'm glad he took the time to call. You know most people will not call companies when they have a problem; they just tell friends, family, and coworkers." This statement about who customers call when complaining about faulty customer service is accurate.

With the community interested in eating healthy, Sue Ellen, a restaurant owner, is considering adding more vegetarian dishes to her menu. This decision is uncertain and risky, and she finally decides to goes with her gut feelings. This is an example of _______.

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 ____.

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 _____.

Ace Manufacturing has high turnover continually due to issues with the corporate office. Paul, the plant manager, is frustrated and cannot find a solution to stop it. At first he offered raises to many of the good employees who were leaving, but after a while, Paul started blaming those who were leaving, saying, "they are poor-quality employees and they are to blame for leaving." Paul is engaged in ____.

Roberta, the HR manager, is considering if she should use a group to develop a plan to improve on the present diversity plan. The goal is to increase the diversity of their workforce. Summarize the advantages and disadvantages of using group decision making in this situation.

Last year, Paul's home of 50 years, which contained so many family, school, and career memories, was destroyed in a fire. It is normal for this event to have a negative impact on Paul's life and decision making abilities for at least three years.

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.

Research shows that most managers have characteristics that fall into one dominant decision-making style, and this varies little across occupations, job level, and countries.

In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____

Satisficing is the tendency of ____.

Going with your gut, or intuition, is using conscious thoughts or logical inference to make a choice.

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) ____.

In deciding to decide, a manager agrees that he or she will first research the problem before taking any further steps.

Jose, the sales manager, is working on the problem of increasing sales by using the rational model of decision making. In the first step he identified the problem of his employees needing more training. In the second step he thought of alternative solutions; and in step three he evaluated alternatives and selected a solution. In the fourth step, Jose needs to _____.