Exam 2: Decision Making

According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.

The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________.

It hasn't rained in several days; therefore it is unlikely to rain today. This is an example of the ________.

"Smoking and the consumption of alcohol are strictly prohibited inside the work Premises." This is most likely an example of a(n) ________.

A(n) ________ is an explicit statement that tells a manager what can or cannot be done.

A procedure is ________.

In the decision-making process, while ________, the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it.

Discuss structured problems, programmed decisions, unstructured problems, and nonprogrammed decisions.

"There are no coincidences. If something bad has happened to you, you must have done something to deserve it." This statement might be made by someone with the ________.

It is time for Jane to order laminated plywood again. She typically orders from one of three vendors. She knows the price, delivery time, and quality of each vendor. In this situation, Jane has ________.

Ridership on the city's public transportation buses has fallen for three weeks in a row. This is ________.

To determine the ________, a manager must determine what is relevant or important to resolving a problem.

Ian is a plant manager in a multi-site corporation. He frequently deals with situations involving new customers and new products. These are often ________.

Marty had arranged for a high-profile speaker to deliver the keynote address at her college's annual function. However, due to unforeseen circumstances, the speaker was forced to drop out at the last moment. Marty reacts to this news by saying, "I knew all along that this would happen." This is an example of the ________.

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

"We expect to maintain the highest standards of quality in our workmanship." This is an example of ________.

List and discuss the eight steps in the decision-making process.

Briefly, discuss the assumptions of rationality and the validity of those assumptions.

When the overhead cranes crashed into each other for the third time, Joe formed a team to look into ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of which might work. The team has completed which step in the decision-making process?

The sunk costs error occurs when decision makers forget that current choices cannot correct the past.