Chapter 15: Decision Making & Creativity
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Questions and Answers

What is meant by satisfice in decision-making?

  • Making quick decisions based on intuition
  • Evaluating all possible solutions thoroughly
  • Choosing a solution that is good enough due to bounded rationality (correct)
  • Relying solely on cognitive biases

    • Which of the following is NOT a component of the Model of Intuition mentioned in the text?

  • Judgmental heuristics (correct)
  • Automated experience
  • Holistic hunch
  • Expertise

    • Why is intuition considered useful in decision-making?

  • It relies on explicit evaluation of evoking cues
  • It speeds up the decision-making process (correct)
  • It always leads to the most optimal solution
  • It is based solely on conscious awareness

    • What role does experience play in intuitive-based decision making?

    <p>It contributes to automated experiences based on learned information</p> Signup and view all the answers

    Which internal/organizational resource is NOT mentioned in the text as influencing decision-making?

    <p>Physical infrastructure</p> Signup and view all the answers

    What characterizes judgmental heuristics in decision-making processes?

    <p>They are cognitive shortcuts used to simplify decision-making</p> Signup and view all the answers

    Which system of thinking involves mental shortcuts and can be thought of as nonrational decision-making?

    <p>System 1</p> Signup and view all the answers

    What is a key characteristic of the System 2 way of thinking?

    <p>Involves conscious and analytical thought</p> Signup and view all the answers

    In rational decision-making, what does the Four-Stage Model help managers to do?

    <p>Identify the problem or opportunity</p> Signup and view all the answers

    What does rationality assume about managers?

    <p>They are completely objective</p> Signup and view all the answers

    Which type of decision-making is described as slow, logical, and requiring cognitive effort?

    <p>Rational decision-making</p> Signup and view all the answers

    What is a characteristic of nonrational decision-making as mentioned in the text?

    <p>Involves mental shortcuts</p> Signup and view all the answers

    Which bias involves making decisions based on the readily available information?

    <p>Availability bias</p> Signup and view all the answers

    Which bias occurs when individuals look for information that confirms their stereotypes?

    <p>Representativeness bias</p> Signup and view all the answers

    In the context of decision-making styles, which style is characterized by focusing on people or social aspects and adopting a long-term view?

    <p>Conceptual style</p> Signup and view all the answers

    What is the key characteristic of groupthink?

    <p>Strives for unanimity</p> Signup and view all the answers

    Which bias occurs when individuals continue to invest in a failing course of action due to resources already committed?

    <p>Escalation of commitment bias</p> Signup and view all the answers

    What is a common characteristic of the analytical decision-making style?

    <p>Responds well to uncertainty</p> Signup and view all the answers

    What is the main focus during the stage of generating alternative solutions?

    <p>Studying a greater number of potential solutions</p> Signup and view all the answers

    What aspect should decision-makers consider during the evaluation of alternatives?

    <p>Ethics and feasibility</p> Signup and view all the answers

    What is contrary to fact when it comes to decision-making processes?

    <p>Perfect rationality</p> Signup and view all the answers

    What model by Herbert Simon acknowledges that decision-making is uncertain and with incomplete information?

    <p>Normative Model</p> Signup and view all the answers

    In the context of decision-making, what does 'bounded rationality' refer to?

    <p>Being bound by various constraints when making decisions</p> Signup and view all the answers

    During the implementation and evaluation stage, who evaluates how effectively the solution solves the problem?

    <p>Stakeholders</p> Signup and view all the answers

    What is the role of a 'devil's advocate' in preventing Groupthink?

    <p>Uncovering every conceivable negative factor</p> Signup and view all the answers

    Which symptom of Groupthink involves an illusion that leads to excessive optimism and risk-taking?

    <p>Symptoms Invulnerability</p> Signup and view all the answers

    What technique involves assigning each group member the role of critical evaluator or dissenter?

    <p>Devil's advocate role</p> Signup and view all the answers

    Which technique for preventing Groupthink involves encouraging everyone to rethink their position after a consensus is reached?

    <p>Encouraging rethinking after consensus</p> Signup and view all the answers

    Which symptom of Groupthink involves self-appointed protectors against adverse information?

    <p>Mindguards</p> Signup and view all the answers

    What technique for preventing Groupthink involves bringing in outside experts to introduce fresh perspectives?

    <p>Bringing in outside experts</p> Signup and view all the answers

    Confirmation bias refers to basing decisions on readily available information.

    <p>False</p> Signup and view all the answers

    Overconfidence bias leads to underestimating our skills and predictions.

    <p>False</p> Signup and view all the answers

    Availability bias involves looking for information that challenges our stereotypes.

    <p>False</p> Signup and view all the answers

    Escalation of commitment bias refers to easily reversing ineffective courses of action.

    <p>False</p> Signup and view all the answers

    Behavioral decision-making style is characterized by being least people-oriented.

    <p>False</p> Signup and view all the answers

    Groupthink occurs when members prioritize reality testing over striving for unanimity.

    <p>False</p> Signup and view all the answers

    Rational decision-making assumes managers are completely subjective and possess incomplete information.

    <p>False</p> Signup and view all the answers

    The System 1 way of thinking involves slow, logical, and requires cognitive effort.

    <p>False</p> Signup and view all the answers

    The Four-Stage Model of decision-making involves stages like identifying the problem, evaluating alternatives, implementing the solution, and evaluating the effectiveness of the solution.

    <p>True</p> Signup and view all the answers

    In decision-making, intuition is always considered a reliable and foolproof approach that leads to optimal outcomes.

    <p>False</p> Signup and view all the answers

    Group decision-making always leads to better outcomes compared to individual decision-making.

    <p>False</p> Signup and view all the answers

    Creativity plays a minimal role in decision-making processes according to the text.

    <p>False</p> Signup and view all the answers

    Intuition in decision-making always involves explicit evaluation of the validity of cues.

    <p>False</p> Signup and view all the answers

    Automated experience in the model of intuition is solely based on subconscious information.

    <p>False</p> Signup and view all the answers

    Holistic hunch in the model of intuition is exclusively based on conscious information processing.

    <p>False</p> Signup and view all the answers

    Expertise in intuitive-based decision making only involves explicit knowledge.

    <p>False</p> Signup and view all the answers

    Judgmental heuristics are used in decision-making to complicate the process.

    <p>False</p> Signup and view all the answers

    Satisfice implies evaluating all solutions to make the best decision.

    <p>False</p> Signup and view all the answers

    Bounded rationality suggests that decision-makers are not limited by constraints when making decisions.

    <p>False</p> Signup and view all the answers

    In the context of decision-making, normative approach implies that the decision made should be perfect and ideal.

    <p>False</p> Signup and view all the answers

    The Four-Stage Model helps managers implement and evaluate solutions effectively.

    <p>True</p> Signup and view all the answers

    Rationality assumes that human decision-making processes are perfectly rational in complex situations.

    <p>False</p> Signup and view all the answers

    Nonrational decision-making is characterized by having complete information and making optimal decisions effortlessly.

    <p>False</p> Signup and view all the answers

    In the context of decision-making, intuition is always considered unreliable and unnecessary.

    <p>False</p> Signup and view all the answers

    Symptoms of Groupthink include inherent morality which encourages the group to consider ethical implications.

    <p>False</p> Signup and view all the answers

    In Groupthink, rationalization helps challenge assumptions and bring different perspectives to the table.

    <p>False</p> Signup and view all the answers

    Groupthink involves promoting diverse viewpoints and avoiding self-censorship.

    <p>False</p> Signup and view all the answers

    One technique for preventing Groupthink is to assign each group member the role of critical evaluator or dissenter.

    <p>True</p> Signup and view all the answers

    Groupthink encourages subgroup debates and bringing in outside experts to introduce fresh perspectives.

    <p>False</p> Signup and view all the answers

    Mindguards in Groupthink act as self-appointed protectors against adverse information.

    <p>True</p> Signup and view all the answers

    Match the following decision-making models with their characteristics:

    <p>Rational Decision-Making = Assumes managers are completely objective and possess complete information Nonrational Decision-Making = Involves mental shortcuts and can be quick, requiring little cognitive effort</p> Signup and view all the answers

    Match the following decision-making biases with their descriptions:

    <p>Overconfidence Bias = Leads to underestimating skills and predictions Confirmation Bias = Involves making decisions based on readily available information</p> Signup and view all the answers

    Match the following decision-making styles with their characteristics:

    <p>Analytical Decision-Making Style = Described as slow, logical, and requiring cognitive effort Intuitive Decision-Making Style = Involves subconscious information processing</p> Signup and view all the answers

    Match the following decision-making stages with their descriptions:

    <p>Stage 1: Identify the problem or opportunity = First stage of the Four-Stage Model Stage 3: Implementing the solution = Third stage of the Four-Stage Model</p> Signup and view all the answers

    Match the following Groupthink prevention techniques with their descriptions:

    <p>Assigning a devil's advocate role = Challenges assumptions and brings different perspectives Bringing in outside experts for fresh perspectives = Involves introducing new viewpoints to prevent consensus</p> Signup and view all the answers

    Match the following decision-making concepts with their descriptions:

    <p>Judgmental Heuristics = Complicate decision-making processes Bounded Rationality = Refers to decision-makers not being completely objective</p> Signup and view all the answers

    Match the decision-making stage with its description:

    <p>Stage 2: Generating alternative solutions = Need to slow down to evaluate a broader set of alternatives Stage 4: Implement and evaluate = Stakeholders evaluate how effectively the solution solves the problem Normative Model = Satisfactory is good enough Bounded Rationality = Decision-makers are bounded by various constraints when making decisions</p> Signup and view all the answers

    Match the characteristics with the decision-making concepts:

    <p>Nonrational Decision-Making = Assumes decision-making is uncertain with incomplete information Herbert Simon's Normative &amp; Intuition Model = Acknowledges decision-making is uncertain and with incomplete information Holistic hunch in the model of intuition = Exclusively based on conscious information processing Automated experience in the model of intuition = Solely based on subconscious information</p> Signup and view all the answers

    Match the biases with their descriptions:

    <p>Confirmation bias = Basing decisions on readily available information Overconfidence bias = Leading to underestimating skills and predictions Availability bias = Involves looking for information that challenges stereotypes Escalation of commitment bias = Reversing ineffective courses of action due to committed resources</p> Signup and view all the answers

    Match the groupthink symptoms with their descriptions:

    <p>Illusion of invulnerability = Leads to excessive optimism and risk-taking Mindguards = Act as self-appointed protectors against adverse information Stereotyping of out-groups = Occurs when individuals look for information that confirms stereotypes Self-censorship = Avoiding expressing dissenting viewpoints</p> Signup and view all the answers

    Match the styles of decision-making with their characteristics:

    <p>Behavioral Decision-Making Style = Characterized by being least people-oriented Analytical Decision-Making Style = Commonly focuses on long-term views and social aspects Intuitive Decision-Making Style = Expertise involves explicit knowledge Judgmental heuristics in decision-making processes = Characterized by shortcuts in making judgments</p> Signup and view all the answers

    Match the rationality assumptions with their correct statements:

    <p>Perfect rationality assumptions = Contrary to fact in describing human decision-making processes Rationality assumes managers are completely subjective = Not a characteristic assumed in rational decision-making processes Satisfice in decision-making = 'Good enough' approach in decision-making processes Rationalization in Groupthink = Challenges assumptions and brings different perspectives to the table</p> Signup and view all the answers

    Match the following decision-making concepts with their descriptions:

    <p>Satisfice = Failure to evaluate all solutions due to bounded rationality Intuition = Consists of judgments, insights, or decisions that come to mind on their own Judgmental heuristics = Cognitive shortcuts or biases used to simplify decision-making processes Bounded rationality = Decision-makers doing the best they can by finding a solution that is good enough</p> Signup and view all the answers

    Match the following stages of the Four-Stage Model of decision-making with their descriptions:

    <p>Identifying the problem = Recognizing and defining the issue that needs to be addressed Evaluating alternatives = Assessing different options to solve the identified problem Implementing the solution = Putting the chosen solution into action Evaluating the effectiveness of the solution = Assessing how well the implemented solution solves the initial problem</p> Signup and view all the answers

    Match the following types of biases with their descriptions:

    <p>Availability bias = Involves looking for information that confirms stereotypes Escalation of commitment bias = Continuing to invest in a failing course of action due to prior resources committed Overconfidence bias = Leads to underestimating one's skills and predictions Confirmation bias = Making decisions based on readily available information</p> Signup and view all the answers

    Match the following components of Intuitive-Based Nonrational Decision Making with their descriptions:

    <p>Holistic hunch = Judgment based on subconscious information in memory Automated experience = Choice based on familiar situations and subconscious application of learned information Expertise = Combination of explicit and tacit knowledge Feelings = Emotional aspect influencing intuitive-based decision making</p> Signup and view all the answers

    Match the following symptoms of Groupthink with their descriptions:

    <p>Illusion of invulnerability = Leads to excessive optimism and risk-taking Self-appointed mindguards = Act as protectors against adverse information within the group Illusion of unanimity = False impression that everyone agrees with a decision Rationality assumption = 'Managers are completely subjective and possess incomplete information' assumption</p> Signup and view all the answers

    Match the following internal/organizational resources with their influences on decision-making:

    <p>Human and social capital = People's knowledge and relationships impacting decisions Financial resources = Money availability affecting choices Technology = Tools and systems influencing decision processes Organizational culture = Values and norms shaping decision-making within a company</p> Signup and view all the answers

    Match the bias with its description:

    <p>Confirmation bias = Basing decisions on readily available information Availability bias = Making decisions based on the readily available information Representativeness bias = Looking for information that supports stereotypes Anchoring bias = Being influenced by the first information received</p> Signup and view all the answers

    Match the decision-making style with its characteristics:

    <p>Directive style = Efficient, logical, practical, action-oriented Analytical style = Careful decision-makers, respond well to uncertainty Conceptual style = Focus on people, adopt long-term view, risk takers Behavioral style = Most people-oriented, works well with others, conflict avoidant</p> Signup and view all the answers

    Match the symptom of Groupthink with its description:

    <p>Striving for unanimity = Overrides motivation to appraise alternative actions realistically Cohesive ingroup = Members become deeply involved in a cohesive group Reality testing failure = Members fail to exercise sufficient reality testing and moral judgment Motivation override = Striving for unanimity overrides motivation for realistic appraisal</p> Signup and view all the answers

    Match the decision-making bias with its action:

    <p>Framing bias = Posing questions in a way that changes how alternatives are interpreted Hindsight bias = Belief that outcome could have been predicted earlier Escalation of commitment bias = Holding onto ineffective course of action despite unlikely reversibility Overconfidence bias = Overestimating skills and predictions</p> Signup and view all the answers

    Match the stage of decision-making with its description:

    <p>Identifying the problem = First stage in decision-making process Evaluating alternatives = Stage involving considering different options for solutions Implementing the solution = Putting the chosen solution into action Evaluating effectiveness = Assessing how well the solution solves the problem</p> Signup and view all the answers

    Match the characteristic of intuition with its role in decision-making:

    <p>Holistic hunch model = Based on conscious information processing Expertise in intuitive-based decision making = Involves explicit knowledge only Intuition usefulness = 'Devil's advocate' role in preventing Groupthink Rationality of intuition = Always considered unreliable and unnecessary</p> Signup and view all the answers

    Match the following symptoms of Groupthink with their descriptions:

    <p>Symptoms Invulnerability = Illusion leading to excessive optimism and risk taking Inherent morality = Belief that encourages the group to ignore ethical implications Rationalization = Protects pet assumptions Self-censorship = Stifles critical debate</p> Signup and view all the answers

    Match the following prevention techniques for Groupthink with their descriptions:

    <p>Assigning the role of critical evaluator or dissenter to each group member = Active voicing of objections and doubts Not using policy committees to rubberstamp decisions = Top-level executives should avoid this practice Encouraging subgroup debates and bringing in outside experts = Introducing fresh perspectives Having a devil's advocate when discussing major alternatives = Uncovering every conceivable negative factor</p> Signup and view all the answers

    Match the following characteristics of decision-making styles with their descriptions:

    <p>Behavioral decision-making style = Least people-oriented Analytical decision-making style = Characterized by being analytical and logical Intuitive decision-making style = Relies on gut feelings and instincts Judgmental heuristics in decision-making processes = Used to complicate the decision-making process</p> Signup and view all the answers

    Match the following biases in decision-making with their descriptions:

    <p>Availability bias = Looking for information that challenges stereotypes Overconfidence bias = Leads to underestimating skills and predictions Confirmation bias = Seeking information that confirms existing beliefs Escalation of commitment bias = Continuing a failing course of action due to past investments</p> Signup and view all the answers

    Match the following characteristics of decision-making systems with their descriptions:

    <p>System 1 way of thinking = Fast, intuitive, and automatic System 2 way of thinking = Slow, logical, requires cognitive effort Analytic decision-making system = Based on thorough analysis and logic Intuitive decision-making system = Relies on quick judgments and gut feelings</p> Signup and view all the answers

    Match the following aspects of the Four-Stage Model of decision-making with their descriptions:

    <p>Identifying the problem stage = Recognizing and defining the issue at hand Evaluating alternatives stage = Assessing different options for solving the problem Implementing the solution stage = Putting the chosen solution into action Evaluating effectiveness stage = Reviewing how well the solution solves the problem</p> Signup and view all the answers

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