Ch. 7 Quiz Management

How high priority is this situation? How believable is the information about the situation? How quickly must I act on the information about the situation? Managers can use these questions to make decisions about (respectively)

Republic advertisements about Representative Joe Smith, the Democratic candidate, portray him as lazy, dishonest, and poor at his job. At the same time, the Democratic ads for Joe Smith describe him as a caring, honest, hard worker. The sponsors of these advertisements know that ads can affect whom voters choose on Election Day. The tendency of decision makers (the voters in this example) to be influenced by how a situation or problem is presented to them is an example of

Managers with a low tolerance for ambiguity and an orientation toward task and technical concerns when making decisions have an analytical decision-making style

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

Satisficing is the tendency of

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

The Safety Committee at Office Supply Mart was formed to help make the store a safer place, and some of the committee's suggestions are going to be costly. During the committee meeting, the vice president of accounting announced that company profits were much lower than expected, and she suggested that profits are more important than safety. The profit goal is now outweighing the committee's safety goal, which is an example of

Patty, the CEO of an oil drilling company, and her top management team recently discovered that their facilities are damaging an Asian beach and the local wildlife. They understand that they need to decide if temporarily closing or not closing the facility is unethical. To help them make their decision, they consider the following four questions: "Is not temporarily closing the facility legal? If yes, does this proposed action maximize shareholder value? If yes, is not temporarily closing the facility ethical? If no, would it be ethical not to take the proposed action?" Patty and her top managers are using ________ to help them make their decision.

_______ causes people to view events as being more predictable than they really are

_______ 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.

Which of the following is not a hindrance to perfectly rational 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, so she looks for cars until she finds a model that is satisfactory. Paula is following the ________ model.

A ________ is a choice made from among available alternatives

________ is 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

A decision tree, which is the hierarchy or chain of command used by many organizations when discussing alternatives, must be followed when getting decisions approved.

The rational model assumes that managers have complete information, are able to make an unemotional analysis, and are able to make the best decision for the organization.

Gregory was talking with Kareem, his assistant manager, saying, "When I make a decision on which employees will do a project, I use three simple factors, which I call my decision-making 'rules of thumb.' I consider their attitude and knowledge, and how hard they work." Gregory's rules of thumb, ________, is what he uses when making a decision.

Dwight, the general manager of a hotel, knows that one of his housekeeping employees has a serious substance-abuse issue. Dwight knows that because of the seriousness of the issue he needs to talk with the employee. However, his assistant manager asks Dwight if he would like her to deal with it. Dwight knows this is not the best option, but he agrees, knowing it is the easy way out. Dwight's decision is an example of

Despite your best intentions, it's hard to bring the best evidence to bear on your decisions. Why?

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 not 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