Questions and Answers
Which of the following is an accurate description of decision making?
According to Kahneman, which of the following characteristics describe System 2 thinking?
Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests?
What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?
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Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?
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According to Kahneman, System 1 thinking is _____.
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In the fourth stage of rational decision making, managers will _____.
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Which of the following are examples of what can function as the first stage in rational decision making by managers?
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The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them.
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Which of the following are true regarding the second stage in the rational model of decision making?
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Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?
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What is the third stage of the rational model of decision making?
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Which of these are reasons for chief executive officers (CEOs) getting increasingly ousted for ethical violations in the 21st century?
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Successful implementation of major decisions requires which of the following?
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Which of these assumptions are made in the rational model of decision making?
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Constance Bagley's decision tree is specifically designed for use when _____.
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Evidence-based management attempts to introduce which factor into the decision-making process?
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Which of these are examples of business analytics?
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Which of the following are examples of Big Data?
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A person's decision-making style is a combination of how a person perceives something as well as _____.
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Evidence-based decision relies on ______.
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Sophisticated forms of business data analysis are known as business _________.
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_____________ reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions.
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People with the ______ style of decision making are action-oriented and like to focus on facts.
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Analytical decision makers:
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Decision-making styles vary along which two dimensions?
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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?
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Value orientation reflects the extent to which an individual focuses on which of the following dimensions?
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Which decision-making style is the most people-oriented of the four styles?
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People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task oriented.
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Which one of the following best describes the decisions made by a person with an analytical style?
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People with a conceptual decision-making style are likely to do which of the following?
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Heuristics are strategies that ______ the process of making decisions.
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The _____ bias occurs when people's positive feelings about their own decision-making ability is greater than their objective accuracy.
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Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect?
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What are common results of groupthink?
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Which of these are areas in which experts believe AI can be applied to decision making?
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What are three characteristics that affect decision making by a group?
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A consensus is reached when all members are able to express their opinions _____.
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One thing groupthink teaches us is that cohesiveness:
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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?
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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?
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Which of the following are aspects of critical thinking?
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Which questions should you ask when developing ready-made solutions based on past experiences?
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Which steps are recommended for establishing a process or method for making decisions?
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What is the best way to develop a ready-made solution?
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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.