Management 3100 Chapter 7 Flashcards
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Which of the following is an accurate description of decision making?

  • Avoiding any course of action
  • The process of identifying and choosing alternative courses of action (correct)
  • A random selection of choices
  • Conforming to existing solutions

    • According to Kahneman, which of the following characteristics describe System 2 thinking?

  • Deliberate (correct)
  • Fast and automatic
  • Intuitive
  • Analytical (correct)

    • Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests?

  • The rational model (correct)
  • The nonrational model
  • The intuitive model
  • The incremental model

    • What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?

    <p>Employees with ideas</p> Signup and view all the answers

    Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?

    <p>Is it feasible?</p> Signup and view all the answers

    According to Kahneman, System 1 thinking is _____.

    <p>intuitive and largely unconscious</p> Signup and view all the answers

    In the fourth stage of rational decision making, managers will _____.

    <p>implement and evaluate the chosen solution</p> Signup and view all the answers

    Which of the following are examples of what can function as the first stage in rational decision making by managers?

    <p>Customer complaints</p> Signup and view all the answers

    The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them.

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

    Which of the following are true regarding the second stage in the rational model of decision making?

    <p>Once you have identified a problem, you need to come up with solutions</p> Signup and view all the answers

    Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?

    <p>The nonrational model</p> Signup and view all the answers

    What is the third stage of the rational model of decision making?

    <p>Evaluate alternatives and select a solution.</p> Signup and view all the answers

    Which of these are reasons for chief executive officers (CEOs) getting increasingly ousted for ethical violations in the 21st century?

    <p>Digital communications are more susceptible to hackers and whistleblowers</p> Signup and view all the answers

    Successful implementation of major decisions requires which of the following?

    <p>Sensitivity to those affected by the decision</p> Signup and view all the answers

    Which of these assumptions are made in the rational model of decision making?

    <p>Managers will make logical decisions without prejudice</p> Signup and view all the answers

    Constance Bagley's decision tree is specifically designed for use when _____.

    <p>making ethical choices</p> Signup and view all the answers

    Evidence-based management attempts to introduce which factor into the decision-making process?

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

    Which of these are examples of business analytics?

    <p>Portfolio analysis</p> Signup and view all the answers

    Which of the following are examples of Big Data?

    <p>Data in corporate databases</p> Signup and view all the answers

    A person's decision-making style is a combination of how a person perceives something as well as _____.

    <p>how they respond to it</p> Signup and view all the answers

    Evidence-based decision relies on ______.

    <p>observations about what actually works</p> Signup and view all the answers

    Sophisticated forms of business data analysis are known as business _________.

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

    _____________ reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions.

    <p>Value orientation</p> Signup and view all the answers

    People with the ______ style of decision making are action-oriented and like to focus on facts.

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

    Analytical decision makers:

    <p>Overanalyze a situation</p> Signup and view all the answers

    Decision-making styles vary along which two dimensions?

    <p>Tolerance for ambiguity</p> Signup and view all the answers

    Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?

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

    Value orientation reflects the extent to which an individual focuses on which of the following dimensions?

    <p>A and B</p> Signup and view all the answers

    Which decision-making style is the most people-oriented of the four styles?

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

    People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task oriented.

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

    Which one of the following best describes the decisions made by a person with an analytical style?

    <p>Carefully considers lots of information and alternatives</p> Signup and view all the answers

    People with a conceptual decision-making style are likely to do which of the following?

    <p>All of the above</p> Signup and view all the answers

    Heuristics are strategies that ______ the process of making decisions.

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

    The _____ bias occurs when people's positive feelings about their own decision-making ability is greater than their objective accuracy.

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

    Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect?

    <p>Economic growth will double.</p> Signup and view all the answers

    What are common results of groupthink?

    <p>Loss of new ideas</p> Signup and view all the answers

    Which of these are areas in which experts believe AI can be applied to decision making?

    <p>Autonomous intelligence</p> Signup and view all the answers

    What are three characteristics that affect decision making by a group?

    <p>The knowledge of group members, the efficiency of the group, the size of the group</p> Signup and view all the answers

    A consensus is reached when all members are able to express their opinions _____.

    <p>and reach agreement to support the final decision</p> Signup and view all the answers

    One thing groupthink teaches us is that cohesiveness:

    <p>isn't always a good thing</p> Signup and view all the answers

    Turbine Manufacturing uses artificial intelligence in its factories to automate basic tasks, freeing human employees to perform more high-level finishing and quality assurance tasks. Which area of artificial intelligence does this illustrate?

    <p>Assisted intelligence</p> Signup and view all the answers

    What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart?

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

    Which of the following are aspects of critical thinking?

    <p>A and B</p> Signup and view all the answers

    Which questions should you ask when developing ready-made solutions based on past experiences?

    <p>All of the above</p> Signup and view all the answers

    Which steps are recommended for establishing a process or method for making decisions?

    <p>Analyze the situation</p> Signup and view all the answers

    What is the best way to develop a ready-made solution?

    <p>Identify best practices and turn them into standard operating procedure.</p> Signup and view all the answers

    Study Notes

    Decision Making Overview

    • Decision making involves identifying and choosing between alternative courses of action.
    • The rational model prescribes logical steps for managers to determine optimal decisions in organizations.

    Types of Thinking

    • System 1 thinking is intuitive and largely unconscious.
    • System 2 thinking is analytical, deliberate, and conscious.

    Stages of Rational Decision Making

    • First stage: Identify signs of problems or opportunities (e.g., poor product quality, sales shortfalls).
    • Second stage: Generate both obvious and creative alternative solutions.
    • Third stage: Evaluate alternatives based on ethical, feasibility, and effectiveness criteria.
    • Fourth stage: Implement and evaluate the chosen solution.

    Decision Making Models

    • The rational model suggests ideal decision-making processes while the nonrational model acknowledges uncertainty and risks involved.
    • Constance Bagley's decision tree is useful for making ethical choices.

    Evidence-Based Management

    • Evidence-based management integrates rationality into decision-making by relying on observations of what effectively works.

    Business Analytics and Big Data

    • Business analytics includes practices such as time-series forecasting and portfolio analysis.
    • Big Data refers to extensive datasets including corporate databases, social media communications, web-browsing data, and surveillance data.

    Decision-Making Styles

    • Decision-making styles vary in two dimensions: tolerance for ambiguity and value orientation (task vs. people-focused).
    • Directive style: action-oriented, focuses on facts, and can be autocratic.
    • Analytical style: takes time to make decisions and may lead to over-analysis.
    • Conceptual style: embraces high ambiguity, considers multiple options, and is willing to take risks.
    • Behavioral style: the most people-oriented, prioritizing social concerns.

    Group Dynamics and Decision-Making

    • Groupthink can result in failure to consider new information and loss of innovation.
    • Consensus occurs when all group members express opinions and agree to support the final decision.
    • Cohesiveness can sometimes negatively impact decision-making.

    Critical Thinking and Problem Solving

    • Critical thinking involves analyzing situations with qualitative and quantitative data to solve problems.
    • Steps in making decisions include considering alignment with personal values, conducting cost-benefit analyses, and thorough situation analysis.

    Artificial Intelligence in Decision Making

    • AI impacts decision-making areas such as augmented, assisted, and autonomous intelligence.
    • Accenture predicts AI will double economic growth by 2035, leading to more efficient decision-making processes.

    Ready-Made Solutions

    • Developing ready-made solutions involves analyzing past experiences to extract lessons, define problems, and document solutions.
    • Best practices should be identified and formalized into standard operating procedures.

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    Description

    Test your knowledge on decision making concepts from Management 3100, Chapter 7. This quiz covers key terms and theories, including System 1 and System 2 thinking as posited by Kahneman. Prepare to enhance your decision-making skills with these flashcards.

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