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