MGMT Chap 7 Quiz EXAM 2

diagnosis Diagnosis is analyzing the underlying causes.

the curse of knowledge As our knowledge and expertise grow, we may be less and less able to see things from an outsider's perspective. Hence, we are often apt to make irrational decisions. Why do some engineers design electronic products (such as DVD remote controls) with so many buttons, devices ultimately useful only to other engineers? Why are some professional investors and bankers prone to taking excess risks? Why are some employees so reluctant to adopt new processes? The answer may be what's known as the curse of knowledge.

ethics officer An ethics officer is someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.

decision tree A decision tree is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal. Decision trees are used to aid in making decisions.

analytics Analytics, or business analytics, is the term used for sophisticated forms of business data analysis. In one example of analytics in gambling, data-mining software was used to analyze vast amounts of casino customer data to target profitable patrons.

Big Data Big Data refers to stores of data so vast that conventional database management systems cannot handle them and so very sophisticated analysis software and supercomputing-level hardware are required. Attracting a lot of attention in science, business, medicine, and technology, the concept of big data has been dubbed "the next frontier for innovation, competition, and productivity."

decision-making style Decision-making style reflects the combination of how an individual perceives and responds to information. A team of researchers developed a model of decision-making styles based on the idea that styles vary along two different dimensions: value orientation and tolerance for ambiguity.

have a high tolerance for ambiguity Some people desire a lot of structure in their lives (a low tolerance for ambiguity) and find ambiguous situations stressful and psychologically uncomfortable. In contrast, others do not have a high need for structure and can thrive in uncertain situations (a high tolerance for ambiguity, like Salvador).✓ have a high tolerance for ambiguity

procrastination, passing the buck, or denying the risk of any negative consequences In defensive avoidance, a manager can't find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk of any negative consequences.

panic In panic, a manager is so frantic to get rid of the problem that he or she can't deal with the situation realistically. Troubled by anxiety, irritability, sleeplessness, and even physical illness, if you're experiencing this reaction, your judgment may be so clouded that you won't be able to accept help in dealing with the problem or to realistically evaluate the alternatives.

True When confronted with a choice, decision makers with strong prior beliefs tend to make their decision based on their beliefs, even if evidence shows those beliefs are wrong. This is known as the prior-hypothesis bias. Although it's always more comforting to look for evidence to support your prior beliefs, you need to be tough-minded and weigh the evidence.

False Decision making is the process of identifying and choosing alternative courses of action.

False An ethics officer is someone trained about matters of ethics in the workplace.

False A decision tree is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal.

False Evidence-based management means translating principles based on best evidence into organizational practice.

True Treat your organization as an unfinished prototype. Leaders need to think and act as if their organization is an unfinished prototype that won't be ruined by dangerous new ideas or impossible to change because of employee or management resistance.

True Research shows that very few people have only one dominant decision-making style. Rather, most managers have characteristics that fall into two or three styles. Studies also show that decision-making styles vary across occupations, job level, and countries. There is not a best decision-making style that applies to all situations.

False Knowledge of styles helps you to understand yourself. Awareness of your style assists you in identifying your strengths and weaknesses as a decision maker and facilitates the potential for self-improvement.

True In deciding to decide, a manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps. Three ways to help you decide whether to decide are to evaluate the following: 1. Importance: "How High Priority Is This Situation?" 2. Credibility: "How Believable Is the Information About the Situation?" 3. Urgency: "How Quickly Must I Act on the Information About the Situation?"

True If someone asked you to explain the basis on which you make decisions, could you even say? Perhaps, after some thought, you might come up with some "rules of thumb." Scholars call them heuristics—strategies that simplify the process of making decisions.

The correct answer is "A" - intuition. See previous slide.

The correct answer is "B" - behavioral