Exam 7: Decision Making and Creativity

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The clustering illusion is the tendency to see patterns from a small sample of events when those events are, in fact, random.

(True/False)
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Paragon Company Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors.He has several choices and has done research into which company provides the best services and products.One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available.According to the Rational Choice Paradigm of decision making, Alvin should select the vendor that offers the most:

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Describe the rational choice paradigm of decision making.

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A large financial institution is losing market share to savvy upstart companies and it has asked its top marketing executive to identify the main reasons for their sliding performance.Describe three barriers that might cause the marketing executive to poorly identify the problem(s) and include an illustrative example for each barrier.

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ABC Corporation Dora and Keith are managers at ABC Corporation.Keith is having problems in his department with a lack of innovation.In response, he consults the corporate procedures manual and speaks with his boss about the right way to solve the problem.Dora is also having a similar problem in her own department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to deal with the problem.Keith is an example of a(n) ________________ thinker.

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A higher level of employee involvement is preferable when:

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_____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value.

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Divergent thinking refers to calculating the conventionally accepted "right answer" to a logical problem.

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Employee involvement tends to weaken the decision-making process.

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Nonprogrammed decisions require all steps in the decision model because the problems they present are new, complex, or ill-defined.

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When making important decisions, we "listen in" on our emotions to guide our preference among the decision alternatives.

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Although the implicit favorite comparison process seems to be hardwired in human decision making, it often undermines effective decision making.

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A consumer products company wants more creativity in its research and development operations.The company has spent large amounts of money on creativity training sessions that have helped somewhat, but the VP of research and development believes that the fundamental conditions must be altered to foster more creativity.Describe three conditions (other than training) that this organization should establish to increase the level of creativity in its research and development operations.Briefly explain how each condition might improve creativity.

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The purely rational model of decision making is rarely practiced in reality because it:

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The benefits of employee involvement increase with:

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The most accurate view of intuition is that it is:

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Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches.These programmed decision routines are referred to as:

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In organizational settings, creativity usually occurs alone rather than with other people.

(True/False)
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You have just received seed money for a new e-commerce business and you want to hire a dozen people with a high level of creative potential.To hire the most creative people, you would select applicants who have:

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The tendency to define problems in terms of a preferred solution occurs because:

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