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Questions and Answers
What characterizes nonprogrammed decision making?
What characterizes nonprogrammed decision making?
Which step is NOT part of the six steps managers should take to make decisions?
Which step is NOT part of the six steps managers should take to make decisions?
Which of the following is a disadvantage of group decision making?
Which of the following is a disadvantage of group decision making?
Which of the following plays a critical role in improving managerial decisions?
Which of the following plays a critical role in improving managerial decisions?
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What distinguishes an entrepreneur from an intrapreneur?
What distinguishes an entrepreneur from an intrapreneur?
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What type of decision is characterized by following established rules?
What type of decision is characterized by following established rules?
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In the context of decision making, cognitive biases primarily affect which aspect?
In the context of decision making, cognitive biases primarily affect which aspect?
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What is a primary goal of making decisions in response to threats?
What is a primary goal of making decisions in response to threats?
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What is a characteristic of nonprogrammed decisions?
What is a characteristic of nonprogrammed decisions?
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What distinguishes intuition from reasoned judgment in decision making?
What distinguishes intuition from reasoned judgment in decision making?
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Which model of decision making assumes the decision maker can identify all consequences?
Which model of decision making assumes the decision maker can identify all consequences?
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What is meant by the term 'bounded rationality' in decision making?
What is meant by the term 'bounded rationality' in decision making?
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What does 'satisficing' imply about managerial decisions?
What does 'satisficing' imply about managerial decisions?
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Which term describes a decision made spontaneously with little effort?
Which term describes a decision made spontaneously with little effort?
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What is an 'optimum decision'?
What is an 'optimum decision'?
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What does the administrative model highlight about decision making?
What does the administrative model highlight about decision making?
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What is confirmation bias?
What is confirmation bias?
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Which cognitive bias involves making assumptions based on insufficient data?
Which cognitive bias involves making assumptions based on insufficient data?
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What is a key advantage of group decision making compared to individual decision making?
What is a key advantage of group decision making compared to individual decision making?
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What is groupthink?
What is groupthink?
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What is the primary disadvantage of group decision making?
What is the primary disadvantage of group decision making?
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What does the illusion of control refer to?
What does the illusion of control refer to?
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What effect does escalating commitment have on decision-making?
What effect does escalating commitment have on decision-making?
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What is meant by organizational learning?
What is meant by organizational learning?
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What is bounded rationality primarily concerned with?
What is bounded rationality primarily concerned with?
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Which situation best describes ambiguity in information?
Which situation best describes ambiguity in information?
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What does 'satisficing' imply in decision making?
What does 'satisficing' imply in decision making?
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What does risk quantify in decision making?
What does risk quantify in decision making?
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What is a primary cause of incomplete information?
What is a primary cause of incomplete information?
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Which of the following describes heuristics in decision making?
Which of the following describes heuristics in decision making?
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What is one key step in the feedback procedure after a decision has been made?
What is one key step in the feedback procedure after a decision has been made?
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What is considered a primary characteristic of systematic errors in decision making?
What is considered a primary characteristic of systematic errors in decision making?
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What is considered a characteristic of a learning organization?
What is considered a characteristic of a learning organization?
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Which of the following describes creativity in decision-making?
Which of the following describes creativity in decision-making?
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What can be a drawback of brainstorming sessions?
What can be a drawback of brainstorming sessions?
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What is the nominal group technique used for?
What is the nominal group technique used for?
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Which technique involves group members responding in writing rather than meeting face-to-face?
Which technique involves group members responding in writing rather than meeting face-to-face?
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How do social entrepreneurs differ from traditional entrepreneurs?
How do social entrepreneurs differ from traditional entrepreneurs?
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Which statement best defines the term 'entrepreneur'?
Which statement best defines the term 'entrepreneur'?
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What is the primary focus of the Delphi technique?
What is the primary focus of the Delphi technique?
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What term is used to describe managers or researchers who identify opportunities for product development within an organization?
What term is used to describe managers or researchers who identify opportunities for product development within an organization?
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Which characteristic is NOT typically associated with entrepreneurs?
Which characteristic is NOT typically associated with entrepreneurs?
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What is a 'product champion' in the context of intrapreneurship?
What is a 'product champion' in the context of intrapreneurship?
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Which of the following best describes skunkworks?
Which of the following best describes skunkworks?
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What is one challenge often faced by founding entrepreneurs regarding management?
What is one challenge often faced by founding entrepreneurs regarding management?
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Xerox PARC is known for which of the following innovations?
Xerox PARC is known for which of the following innovations?
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What aspect differentiates entrepreneurship from management?
What aspect differentiates entrepreneurship from management?
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What is a common characteristic of intrapreneurs?
What is a common characteristic of intrapreneurs?
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Study Notes
Contemporary Management - Chapter 7
- Decision Making: The process where managers respond to opportunities and threats by analyzing options and determining organizational goals and courses of action. This involves responding to opportunities to improve performance, or threats that adversely affect performance.
- Programmed Decisions: Routine decisions based on established rules or guidelines. These decisions have been made repeatedly in the past and managers have rules/guidelines to follow.
- Example of Programmed Decision: A manufacturing supervisor hiring new workers when existing workers work overtime more than 10%
- Nonprogrammed Decisions: Non-routine decisions made in response to unusual or unpredictable opportunities and threats. No pre-existing rules or guidelines apply, as the situation is unexpected or uncertain.
- Intuition: Feelings, beliefs, hunches, that lead to on-the-spot decisions, requiring only minimal information gathering.
- Reasoned Judgment: Decisions requiring time and effort for information gathering, generating alternatives, and evaluating alternatives.
- Classical Decision-Making Model: A prescriptive approach assuming the decision-maker can identify all possibilities and rationally choose the best possible course of action.
- Optimum Decision: The most appropriate decision in light of what managers believe are the most desirable consequences for the organization.
- Administrative Model: An approach that explains why decision-making is uncertain & risky and why managers often choose satisfactory instead of optimum decisions. It is based on bounded rationality, incomplete information, and satisficing.
- Bounded Rationality: Cognitive limitations that constrain one's ability to interpret, process, and act on information.
- Incomplete Information: A result of risk, uncertainty, ambiguity, and time constraints.
- Risk: The degree of probability that the possible outcomes of a particular course of action will occur.
- Uncertainty: The situation where the probabilities of alternative outcomes cannot be determined and future outcomes are unknown.
- Ambiguous Information: Information that can be interpreted in multiple and often conflicting ways.
- Satisficing: Choosing a satisfactory response rather than the best possible response to problems or opportunities.
- Six Steps in Decision Making: Recognizing the need for a decision, generating alternatives, assessing alternatives, choosing among alternatives, implementing the chosen alternative, and learning from feedback.
- Criteria for Evaluating Possible Courses of Action: Legal, ethical, economical, and practical considerations.
- Feedback Procedures: Compare actual results to expected outcomes, explore why expectations were not met, and derive guidelines for future decision-making.
- Cognitive Biases: Systematic errors that lead to poor decision making.
- Heuristics: Rules of thumb used to simplify decision-making.
Group Decision Making
- Superior to Individual Decisions: Groups offer diverse perspectives and skills, reducing the risk of falling victim to bias compared to single individuals.
- Groupthink: A pattern of faulty and biased decision making where group members prioritize agreement over accurately assessing information about a decision.
- Potential Disadvantages: Group decision-making can be time-consuming, difficult to reach consensus, and potentially swayed by group biases.
- Devil's Advocacy: A decision-making technique where one member is assigned to critically evaluate the favored alternative. This process helps to find weaknesses and consider alternatives.
- Dialectical Inquiry: A decision-making technique where opposing viewpoints about an issue are presented and debated.
Organizational Learning and Creativity
- Organizational Learning: Managers improve an employee's desire and ability to understand and manage organizational and task environments, maximizing the potential for organizational learning to take place.
- Learning Organization: An organization where managers maximize individuals' and groups' capacity for creative thinking and behavior. This promotes organizational learning.
- Creativity: A decision-maker's ability to discover original and novel ideas.
- Brainstorming: A group meeting to generate and debate many possible alternatives.
- Production Blocking: Potential loss of productivity in brainstorming due to the unstructured nature of brainstorming.
- Nominal Group Technique: A decision-making technique where group members write suggestions, the group collectively discusses, and then alternatives are ranked.
- Delphi Technique: A decision-making process where members do not meet face-to-face, but rather respond in writing to questions posed by the group leader.
Entrepreneurship
- Entrepreneurs: Individuals who identify opportunities and mobilize resources to produce new, improved goods and services.
- Social Entrepreneurs: Individuals pursuing initiatives to address social problems and improve society.
- Intrapreneurs: Managers, scientists, or researchers who identify opportunities to develop new or improved products/improve production methods within an organization.
- Characteristics of Entrepreneurs: Open to experience, internal locus of control, high self-esteem, high need for achievement.
- Entrepreneurship vs Management: Entrepreneurship is not the same as management; founding entrepreneurs may lack the necessary management skills and experience.
- Product Champion: A manager who takes ownership of a project and guides it from idea to final customer.
- Skunkworks: A group of intrapreneurs separated from the normal operations of an organization to focus on developing new products.
- Xerox PARC: Research division of Xerox that led to innovations, such as the laser printer, personal workstation, WYSIWYG printing, and GUI.
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Description
Test your knowledge on the principles of decision making in management. This quiz covers various aspects such as nonprogrammed decisions, cognitive biases, and the roles of entrepreneurs and intrapreneurs. Challenge yourself with questions that delve into decision-making processes and models.