Exam 7: Decision Making and Creativity

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Decisions tend to have a higher failure rate when leaders are:

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After Crispy Foods Ltd had poured millions of dollars into the development of a new machine-made potato chip,the Board of Directors of the food-processing firm fired the CEO who had proposed and championed the product's development.The new CEO's first task is to find out why this monumental waste of money had occurred and how it can be prevented in the future.Describe two possible ways that the new CEO at Crispy Foods Ltd can prevent or minimise this escalation of commitment in the future.Your answer must refer to this specific incident.

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A committee of employees developed a process whereby they would choose a new office-cleaning firm from the six companies that tendered proposals for the contract.The process involved carefully assessing each firm on the four factors that were most important (e.g.cost),weighting the importance of each factor and then choosing the firm with the highest score.This decision-making activity potentially minimises problems with:

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Escalation of commitment can be minimised by ensuring that:

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Which of the following decision-making activities tends to make the most use of tacit knowledge?

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When evaluating decisions,confirmation bias involves:

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Decision makers can discover blind spots in problem identification by discussing the situation with other people.

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Divergent thinking mainly contributes to which of the following?

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Studies have found that people like to have choices,but when exposed to many alternatives they become:

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A large financial institution is losing market share to savvy upstart companies and it has asked its top marketing executive to identify the main reasons for their sliding performance.Describe three barriers that might cause the marketing executive to poorly identify the problem(s)and include an illustrative example for each barrier.

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Employees should not make the final decision alone when conflict is likely among employees.

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People tend to be more creative when:

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Satisficing refers to:

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Which of these statements about human decision making is FALSE?

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Non-programmed decisions require:

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A non-programmed decision is:

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Incubation and verification are:

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The textbook mainly identifies post-decisional justification as a problem with which stage of decision making?

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Bounded rationality adopts the main assumptions of the rational choice paradigm of decision making.

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Escalation of commitment is more likely to occur when:

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