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

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 _____.

The basic reason female investors make trades much less often than men is that women do a lot more research, and tend to base their investment decisions on considerations other than just numbers.

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.

The confirmation bias is when people seek information to support their point of view and discount data that do not.

The steps in the rational decision-making process are (1) identify the problem or opportunity, (2) think up alternative solutions, (3) evaluate the solution chosen, (4) evaluate alternatives and select a solution, and (5) implement the solution chosen.

ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional database management systems cannot handle its customer needs. Therefore, it purchased very sophisticated analysis software and supercomputing-level hardware. For the company's work with hospitals and university medical schools, ABC has been noted in publications as "real pioneers for innovation and productivity." This vast amount of data is known as ____.

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

The tendency of people to view events as being more predictable than they really are known as _____.

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.

Summarize the four decision making styles. Discuss with each style the extent to which a person has a high need for structure, control, and ambiguity in his or her life.

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

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

David, the IT department chair at a community college, has been having problems with his students not coming to class, so their grades are suffering. If David were to use defensive avoidance to respond to this situation, he could respond with procrastinating, passing the buck, or denying the risk of any negative consequences.

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

A management expert suggests that to reach a consensus, groups should try to achieve consensus by putting questions to a vote.

Doug is using rational decision making, and the chosen alternative that was implemented does not appear to be working. To correct the situation, the possibilities Doug should consider _____.

Mandy, a server in a popular family restaurant, is the most popular employee with both customers and employees, and as a result, she usually receives the most tips. She is always ready to lend a hand when asked, and with her warm personality and supportive nature, people confide in her. Mandy does have a problem telling people no, and has a tendency to avoid conflict, concerned about hurting others or getting people mad. Mandy represents a person with a(n) _____ style.

A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future is known as a(n) _____.

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.

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.