Exam 8: Decision Making

Amanda,a single parent,is looking for a new job.Considering that she has two school-age children,she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting.In terms of the decision-making process,these represent Amanda's ________.

In allocating weights to the decision criteria,which of the following is helpful to remember?

The Loaned Car (Scenario) Colleen is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it. -Colleen needs a vehicle,but she has to decide if the loaned car is worth repairing.She is facing a(n)________,a discrepancy between an existing and a desired state of affairs.

Relying on "gut feeling" over cognitive problem solving in decision making is a phenomenon called ________.

Because managers can't possibly analyze all information about all alternatives,they accept solutions that ________ rather than ________ payoff.

Management Decisions: Declining Income (Scenario) Net income has fallen for the second consecutive quarter, and Amanda is understandably worried. She knows there will be a lot of questions for her at the board of directors meeting Wednesday, and she will be expected to reveal her plan to avoid any third-quarter losses. Amanda begins to analyze the company's financial reports to try to determine the cause of the loss. After much consideration, it appears that expenses have risen dramatically over the last few months. Amanda wonders why. She decides a meeting of the department heads is in order first thing tomorrow morning. At the meeting, Amanda would like to generate several possible solutions to the increased expenses. She wonders how to effectively explore all the options. Next morning, the first option presented at the meeting is to downsize the research and development department, since it is not essential to current operations. Several managers believe the plan will help stem the losses and immediately move to approve it. However, Amanda suggests that they need to look further at the issue and explore other potential solutions. Several suggestions are made, many of which appear to be viable. Amanda wonders what to do next. -When several managers move to approve the plan to downsize the research and development department without first exploring other options,they are engaging in a type of decision making called ________.

The assumption that managers make consistent,value-maximizing choices within specified constraints is known as which of the following?

Arthur authorizes the expenditure of an additional $100,000 for the production of a new product despite mounting concerns that it will be unprofitable.The cost of the new product has already increased far beyond the initial plans and projections.Arthur's continuing support for this project illustrates the phenomenon of ________.

A policy ________.

Highly reliable organizations (HROs)tap into their complexity to help them adapt more effectively.

When the petty cash in Elaine's drawer falls to less than $25,she places a request for additional funds to bring the total back up to $100.This is an example of a(n)________ decision.

The Loaned Car (Scenario) Colleen is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she will feel comfortable driving it. -Colleen's brother has a different view of the repairs.He assumes that the mechanic is using the best information available,but there may be other unexpected repairs that surface once he begins the work.He warns Colleen not to be too surprised if the final bill exceeds the mechanic's original estimate.Her brother's observations are based on which assumptions?

Alanna has just been given the assignment of developing the marketing strategy for the company's new product to be released in November.What type of decision making will be required of Alanna?

Which of the following is a habit of successful highly reliable organizations (HROs)?

Highly reliable organizations (HROs)are easily tricked by their success.

Which of the following best describes "maximizing the minimum possible payoff"?

Which step in the decision-making process involves conveying the decision to those affected by it and getting their commitment to it?

An increased commitment to a previous decision despite evidence that it may have been wrong is a phenomenon called ________.

Rules of thumb that managers use to simplify decision making are called ________.

Nonprogrammed decisions are best described as ________.