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

John, an operations manager, has chosen an alternative way to solve a problem he is faced with. Now John must decide whether the company has the capabilities and resources required to implement the alternative. Which criterion of decision-making is he focusing on?

Prior-hypothesis bias implies that managers tend to seek and use information that is consistent with their prior beliefs.

Brainstorming is a group problem-solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.

Corey has been looking at several alternative locations for his new facility and performs a cost-benefit analysis in order to determine the net financial payoff of each location. Which criterion of decision-making is Corey focusing on?

Mistakes in decision-making that some managers make repeatedly are known as:

Decisions that require time and effort and result from careful information gathering are called intuitive decisions.

The administrative model suggests that human decision-making capabilities are free of cognitive limitations.

Entrepreneurship is noticing an opportunity to satisfy a customer need and then deciding how to find and use resources to make a product that satisfies that need.

Which of the following is a source of bias that can adversely affect the way managers make decisions?

Team learning is less important than individual learning when increasing organizational learning.

_____ is the term given to employees who engage in entrepreneurial activity and who are an important source of organizational creativity.

Discuss the three important techniques that managers can use to promote creativity in group decision-making.

Groupthink causes the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.

_____ occurs when individuals in a team strive for agreement among themselves rather than assessing information accurately.

Developing a learning organization is a quick and easy process.

Decisions that are based on rules and guidelines are known as:

Discuss the two techniques used to counter groupthink and cognitive biases.

The classical decision-making model assumes that managers require very little or no information in order to make an optimum decision.

_____ is a critical analysis of a preferred alternative, defending unpopular or opposing alternatives for the sake of argument.

Dale, a manager, is assessing possible alternative solutions of a problem. Dale attempts to determine if a possible alternative will threaten other company projects. Which criterion of decision-making is Dale focusing on?