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

____ occurs when people's subjective confidence in their decision making is greater than their objective accuracy.For example,Sara thinks she is a superb writer and editor,but her reports are always filled with typos,grammatical errors,and sentence fragments.

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.Selling candles is a(n)_____ for Patricia.

The advantages of _______ are having a greater pool of knowledge,gaining different perspectives,gaining intellectual stimulation,having a better understanding of decision rationale,and having a deeper commitment to the decision.

Which of the following is NOT recognized as a key implementation principle of evidence-based management?

The overconfidence bias-people's subjective confidence in their decision making is greater than their objective accuracy.For instance,with experienced investment advisors whose financial outcomes simply depended on luck,"the illusion of skill is not only an individual aberration;it is deeply ingrained in the culture of the industry."

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

Luis,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 a company 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.

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

Readily available information may not present a complete picture of a situation due to

"Is the proposed action legal? If yes,does the proposed action maximize shareholder value? If yes,is the proposed action ethical? If no,would it be ethical to take the proposed action?" These four questions,which managers of all organizations should ask when confronted with a decision on an action,form the basis of

Felipe and Meg are selling their home.They listed their house three months ago at an extremely high selling price,a price they randomly chose.They do not want to reduce the price to reflect what the marketplace shows their home is really worth.Felipe and Meg are participants in _____ bias.

There are two parts to this question;be sure to answer both.Explain four of the hindrances to perfectly rational decision making,and explain how each might apply to a manager who is trying to decide whether to start sourcing some of its products from overseas markets.

Satisficing is the tendency 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 ____.For example,a manager who uses this model may be personally opposed to outsourcing jobs overseas,but she nonetheless decides to outsource customer-service operations to India because doing so is in the company's best interests.

ABC Medical Technology,a fast-growing global research firm,has accumulated so much client information that conventional database management systems cannot handle its customers' needs.Therefore,ABC 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 The Wall Street Journal as a "real pioneer in innovation and productivity." ABC Medical Technology is tapping the power of

A ____ is a choice made from among available alternatives.

Representativeness bias-faulty generalization from a small sample or single event.For example,if you hired an extraordinary sales representative from a particular university,that doesn't mean that same university will provide an equally qualified candidate next time.

When evaluating the alternatives of a decision,managers need to base decisions strictly on cost,quality,and feasibility.

How do you know that a group in which you're taking part is suffering from groupthink?

Elvira is using the rational model of decision making.The alternative that she chose and implemented does not appear to be working.To correct the situation,Elvira should consider