Question 1

Herbert Simon referred to the decision maker as having:&#10;A) Bounded rationality&#10;B) Loose rationality&#10;C) Limited intelligence&#10;D) Full rationality

Accepted Answer

Herbert Simon believed that decision makers have bounded rationality, meaning that their ability to make rational decisions is limited by factors such as incomplete information, time constraints, and cognitive limitations. This is in contrast to the concept of full rationality, where decision makers always have access to complete information and unlimited cognitive abilities.

Question 2

A typology of cognitive biases in organizations includes which of the following?&#10;A) Pattern-recognition&#10;B) Pattern construction&#10;C) Route familiarity&#10;D) Path dependency

Accepted Answer

Pattern-recognition is a cognitive bias where individuals tend to see patterns in random data, which can influence decision-making in organizations.

Question 3

Action orientation bias involves:&#10;A) over optimism&#10;B) misaligned individual incentives&#10;C) confirmation&#10;D) anchoring and adjustment

Accepted Answer

Action orientation bias is the tendency to prioritize action over thoughtful analysis, and therefore involves over optimism and a focus on taking action rather than fully evaluating potential outcomes.

Question 4

Group decision making conflict is typically referred to as:&#10;A) Cognitive conflict&#10;B) Group conflict&#10;C) Decision conflict&#10;D) Collegiate conflict

Accepted Answer

Cognitive conflict specifically refers to conflicting ideas or perspectives within a group relating to a decision-making task. It is the most commonly used term to describe conflict in group decision making. The other options either do not specifically refer to conflict in group decision making (B and D) or are too broad to be accurate (C).

Question 5

In group decision making techniques, teams are used for:&#10;A) Dialectical enquiry&#10;B) Devils advocacy&#10;C) Delphi method&#10;D) Consensus making

Accepted Answer

The answer of In group decision making techniques, teams are...

Question 6

Groups tend to make riskier decisions than individuals because:&#10;A) Risk is perceived to be shared by the group&#10;B) Consensus is less accurate&#10;C) Resources are more readily available&#10;D) Individuals are constrained by their role

Accepted Answer

When individuals are part of a group, they may perceive that risks are shared among all members, leading to a diffusion of responsibility. This can lead to riskier decisions as individuals may feel less personally responsible for the consequences of their actions.

Question 7

According to Nutt and Wilson (2010) strategic decisions have the following characteristics:&#10;A) deal with complex problems which are hard to define&#10;B) rarely have one best solution, but rather a series of possible solutions&#10;C) follow a predictable path&#10;D) have logical and obvious outcomes

Accepted Answer

According to Nutt and Wilson (2010), strategic decisions deal with complex problems which are hard to define and rarely have one best solution, but rather a series of possible solutions. The other characteristics mentioned in the statement, follow a predictable path and have logical and obvious outcomes, are not aligned with strategic decision-making.

Question 8

Milliken 1987 identifies three types of uncertainty, these are:&#10;A) State uncertainty&#10;B) Effect uncertainty&#10;C) Response uncertainty&#10;D) Environmental uncertainty&#10;E) Strategic uncertainty

Accepted Answer

Milliken's three types of uncertainty are state uncertainty, effect uncertainty, and response uncertainty. Environmental and strategic uncertainty are not included in Milliken's framework.

Question 9

In managerial heuristics, managers will often have a tendency to assume that what we see or will see is typical of what can occur

Accepted Answer

This is a common cognitive bias known as the availability heuristic, where we rely on the most easily available information to make judgments or decisions, even if it may not represent a typical or accurate sample.

Question 10

Devils advocacy is a legitimate decision-making technique

Accepted Answer

Devil's advocacy involves intentionally raising opposing viewpoints and arguments in order to challenge and test a decision or proposal. It can help uncover potential issues and weaknesses, and ultimately lead to a more informed and robust decision. Therefore, it is a legitimate decision-making technique.

Deck 3: Strategic Decision Making in Organizations