Exam 7: Decision Making, Learning, Creativity, and Entrepreneurship

Individuals who notice opportunities and decide how to mobilize the resources necessary to produce new and improved goods and services are called _____.

Which of the following is a reason for incomplete information?

Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. What type of decision is this?

Two separate groups of managers are given a problem to solve, and then each group presents its proposed solution to top management in an attempt to determine the best course of action. This process is called:

_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Which of the following is an accurate description of satisficing?

_____ are rules of thumb that simplify the decision-making process.

Discuss March and Simon's administrative model of decision making and explain the three concepts on which the model is based.

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision-making is known as creativity.

_____ is the decision-making method in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

Scott finds information that counters the claims of the production team. However, Scott decides to ignore the new-found evidence in support of the team's decision. Scott is being adversely influenced by:

The classical model specifies how decisions should be made. In other words it is:

The likelihood of a manager making an error in judgment is much greater in programmed decision-making than in nonprogrammed decision-making.

The final step in the decision-making process is learning from feedback.

Discuss the four criteria to evaluate the pros and cons of alternative courses of action.

According to the administrative model of decision making, why wouldn't managers be able to arrive at the optimum decision even if they had unlimited ability to evaluate information?

Nonroutine decisions made in response to novel situations in business are known as:

Managers must rely on their ______ to make the best decision when faced with uncertainty and ambiguity.

Which of the following is true of choosing among alternative solutions?

Programmed decision making is a(n) ______ process.