Question 1

Describe the rational choice paradigm of decision making.

Accepted Answer

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Question 2

People with an inventive thinking style:
A) are generally less creative than people with an analytic thinking style.
B) have a strong tendency to follow fixed patterns of behaviour.
C) are persistent.
D) prefer spending their time improving existing things rather than creating new things.
E) are All of these.

Accepted Answer

People with an inventive thinking style are persistent in their pursuit of new and original ideas. Option A is incorrect because people with an inventive thinking style are generally more creative. Option B is incorrect because people with an inventive thinking style prefer to break away from fixed patterns of behavior. Option D is incorrect because people with an inventive thinking style prefer to create new things rather than just improving existing ones. Therefore, option E is incorrect.

Question 3

Executives at Switched Enterprises Ltd.want to partner with companies in other regions to distribute their Internet routers and electronic switching equipment.They want to make the decision systematically,but realize that it is not easy to determine whether a particular company will be able to provide effective distribution for this new product area.Discuss three (3)human limitations or problems that might make it difficult for Switched Enterprises executives to choose the best alternative.

Accepted Answer

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Question 4

In the late 1970s,the Premier of British Columbia announced that the province would host a transportation exhibition in 1986 with a modest budget of only $78 million.On at least two occasions,administrators recommended cancelling the exposition due to cost overruns and labour troubles,but the government decided to continue with the project.But by the end of Expo 86,the budget exceeded $1.5 billion with a deficit of $300 million.Using your knowledge of escalation of commitment,discuss four possible reasons why the government might have been motivated to continue with the project.
B. M. Staw, 'Expo 86: An Escalation Prototype', Administrative Science Quarterly, 31, 1986, pp. 379-91). Students may identify any three of the four causes of escalation described in the textbook and highlighted below.
Perceptual blinders. Government leaders may have had perceptual blinders; they may have unconsciously denied or neutralized negative information about the decision. (In fact, staff reports produced in the early stages of Expo 86 warned of project escalations, but they were either ignored or downplayed by the British Columbia government. Moreover, government leaders presented overoptimistic revenue expectations and they lightly dismissed criticisms of these estimates.)
Self-justification. Cancelling Expo 86 would have suggested that the Premier of British Columbia (who originally proposed the fair) made a bad decision, whereas continuing the fair would be a vote of confidence towards his leadership ability. The Premier also may have continued the project because he had repeatedly emphasized the value of the project and to reverse this position would convey an image of inconsistent leadership. Finally, the Premier's decision was face-saving for the entire province because cancellation would jeopardize British Columbia's image as a place where challenges are accomplished rather than abandoned.
Closing costs. Discontinuing Expo 86 would have had both economic and political closing costs. (In fact, it was estimated in 1984 that the purely economic price of cancelling Expo 86 was $80 million.) The government had hitched its reputation to the success of Expo 86, so the political costs of cancelling the project would have been very high.
Prospect theory. People have more aversion to losses than to gains, and they are more willing to risk taking losses than receiving gains. Thus, the Premier may have poured more money in because it would be more painful to stop the project. In other words, they may have had inflated expectations of their ability to overcome problems that faced the project.

Accepted Answer

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Question 5

The creative potential of a person tends to increase with his or her:
A) ability to synthesize information.
B) ability to analyze ideas.
C) ability to apply ideas.
D) ability to be persistent.
E) All of these statements are correct.

Accepted Answer

All of the statements are correct in relation to increasing someone's creative potential. Having the ability to synthesize information, analyze ideas, apply ideas, and be persistent are all important factors in enhancing one's creativity.

Question 6

You have just been assigned the task of developing an innovative new product,using people from engineering,marketing,purchasing and one or two other departments in the organization.To help the group to be as creative as possible,you would:
A) give the team a very tight deadline to come up with a creative idea.
B) threaten to fire any team member who suggests a silly idea that wastes time in the product-development process.
C) encourage competition among team members as to who has the best job performance.
D) move these employees out of their departments and into a common area where they can continuously communicate with each other.
E) apply all of these activities.

Accepted Answer

Moving employees out of their departments and into a common area where they can continuously communicate with each other is the best option to encourage creativity and collaboration among team members. A tight deadline and threatening to fire team members for suggesting silly ideas only adds unnecessary pressure and stifles creativity. Encouraging competition among team members can create a divisive atmosphere and may discourage sharing ideas. Providing a common area free from traditional departmental constraints allows for more open communication and the sharing of diverse perspectives and ideas, ultimately leading to more innovative solutions.

Question 7

Which of the following is a creative practice?
A) Asking people unfamiliar with the issue to explore the problem with you.
B) Looking through the notes and files of past projects.
C) Performing morphological analysis.
D) All of these statements improve creativity.
E) None of these statements improves creativity

Accepted Answer

All three options listed in the answer (A, B, and C) are creative practices that can improve creativity. Asking people unfamiliar with the issue to explore the problem with you can bring in new perspectives and ideas, looking through past projects can inspire new ideas or provide insights, and performing morphological analysis can help to break down a problem into its fundamental components and generate new solutions. Therefore, D is the best choice as it includes all correct options.

Question 8

You have just received seed money for a new e-commerce business and you want to hire a dozen people with a lot of creative potential.To hire the most creative people,you would select applicants who:
A) have no experience in this industry, have high analytic intelligence, and have a relatively low need for achievement.
B) value self-direction, have a high degree of nonconformity, and have a relatively low need for affiliation.
C) have strong mental models regarding their field of knowledge, have high synthetic intelligence, and have a relatively low need for social approval.
D) try to avoid taking risks, have a high need for achievement, and have a high need for social approval.
E) have none of these sets of characteristics.

Accepted Answer

Hiring individuals who value self-direction and have a high degree of nonconformity can lead to more creative solutions and out-of-the-box thinking. Additionally, a relatively low need for affiliation suggests that the individual may not be concerned with conforming to social norms or fitting in with a group, which can also lead to more innovative ideas. The other options, such as a high need for social approval or a low need for achievement, may not necessarily correlate with creativity or innovation in the same way.

Question 9

Associative play,morphological analysis,and cross-pollination are three strategies to:
A) increase group polarization.
B) apply brainstorming more exactly as originally described by Osborn.
C) increase conformity to peer pressure.
D) improve creativity.
E) make the problem-finding stage of decision making less emotional.

Accepted Answer

Associative play involves generating ideas by building on each other's contributions, morphological analysis involves breaking a problem down into its component parts and exploring different combinations, and cross-pollination involves bringing diverse perspectives and ideas together. These three strategies are all known to enhance creativity, making answer D the correct choice.

Question 10

Which of these statements about creativity is TRUE?
A) Creativity is found in only 15 per cent of the adult population in Canada.
B) Creative people have no knowledge of the fundamental issues on that decision problem.
C) Creativity is strongest when employees have formed strong mental models.
D) Creative people have a strong need for social approval.
E) Creative people possess sufficient knowledge and experience on the subject.

Accepted Answer

The statement that is true about creativity is that creative people possess sufficient knowledge and experience on the subject. This is because creativity involves combining existing knowledge and ideas in a new and innovative way, which requires a deep understanding of the subject matter. The other statements are false or inaccurate.

Question 11

A learning orientation is:
A) an important condition for creativity.
B) one of four causes of escalation of commitment.
C) one of the outcomes of the prospect theory effect.
D) a personal characteristic of someone who has low creative potential.
E) the label given to people who learn but are not creative in their learning.

Accepted Answer

A learning orientation refers to a personal motivation to learn and improve one's skills and knowledge. This is an important condition for creativity because it involves exploring and generating new ideas, and being open to different perspectives and approaches. Research has shown that individuals with a strong learning orientation are more likely to engage in creative activities and come up with innovative solutions to problems.

Question 12

An important resource for creativity is:
A) open communications.
B) programmed decision routines.
C) a job where you work alone.
D) a performance-based reward system.
E) a high level of pressure to perform.

Accepted Answer

Open communications allow for exchange of ideas and perspectives, which can stimulate creativity by exposing individuals to new information and insights.

Question 13

Need for stimulation,the ability to synthesize ideas,and low need for social approval are characteristics of:
A) people who tend to be more creative.
B) convergent thinkers.
C) employees with a high evaluation apprehension.
D) people who conform to peer pressure in decision making.
E) people who are anarchists and anti-social.

Accepted Answer

These characteristics are commonly associated with individuals who tend to be more creative. Need for stimulation suggests a desire for novelty and new experiences, synthesize ideas implies an ability to connect disparate concepts, and low need for social approval indicates a disregard for others' opinions and a willingness to think independently.

Question 14

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 the sliding fortunes.Describe three barriers that might cause the marketing executive to poorly identify the problem(s).An illustrative example in this context should be included for each barrier.

Accepted Answer

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Question 15

Organizations can improve creativity by:
A) discouraging employees from making mistakes.
B) giving employees the freedom to pursue novel ideas and accepting they will make reasonable mistakes.
C) giving employees tight deadlines to develop new ideas.
D) all of these statements are correct.
E) none of these actions improve creativity.

Accepted Answer

Giving employees the freedom to pursue new ideas and accepting that mistakes will happen encourages risk-taking and innovative thinking. Discouraging mistakes or giving tight deadlines can stifle creativity and lead to a fear of failure.

Question 16

After Crispy Foods Ltd.had poured millions of dollars into the development of a new machine-made potato chip,the Board of Directors of the food-processing firm fired the CEO who had proposed and championed the product's development.The new CEO's first task is to find out why this monumental waste of money had occurred and how it can be prevented in the future.Provide three possible explanations why this escalation of commitment occurred at Crispy Foods Ltd.

Accepted Answer

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Question 17

People tend to be more creative when:
A) they have a reasonable level of job security.
B) they are secluded from colleagues in other areas of the organization.
C) they risk losing their job if their ideas fail.
D) they lack personal freedom to try things out.
E) they have all of these conditions.

Accepted Answer

Having a reasonable level of job security allows individuals to feel more comfortable taking risks and thinking outside the box without the constant fear of losing their job. This sense of security can lead to increased creativity and innovation. The other options, such as being secluded from colleagues or lacking personal freedom, can actually hinder creativity. Risking job loss if ideas fail can be a motivator for some, but for many, it can create stress and anxiety that stifles creativity.

Question 18

Employees tend to be more creative when they:
A) avoid risk-taking.
B) enjoy abiding by rules and status.
C) have a high need for social approval.
D) have all of these characteristics.
E) have none of these characteristics.

Accepted Answer

None of the characteristics listed in the options promote creativity. Avoiding risk-taking and strictly following rules can limit creative thinking, and seeking constant social approval may lead to conformity and a reluctance to take unconventional approaches. Therefore, none of these characteristics are conducive to fostering creativity.

Question 19

Vijay doesn't like to abide by rules,is not bothered by ambiguous situations,is willing to take a chance by making mistakes and is less concerned about social approval than most other employees.Vijay probably has:
A) a highly convergent thinking style.
B) an inventive thinking style.
C) a strong aversion to risk.
D) a high risk of engaging in groupthink.
E) a deep respect for the rational choice paradigm.

Accepted Answer

The description of Vijay as someone who is not bothered by ambiguous situations, is willing to take a chance by making mistakes, and is less concerned about social approval suggests that he has an inventive thinking style. This type of thinking involves the generation of creative and unique ideas, often without being constrained by traditional norms or rules.

Question 20

What do impromptu storytelling,morphological analysis,and artwork have in common?
A) They are forms of cross-pollination.
B) They increase the risk of bounded rationality.
C) They are forms of associative play.
D) They significantly weaken the creative process.
E) They are mainly used to improve the rational choice process.

Accepted Answer

All three involve combining different elements or ideas in a spontaneous way to create something new. This is a form of associative play, which can help generate new ideas and promote creativity.

Quiz 7: Decision Making and Creativity

Describe the rational choice paradigm of decision making.

People with an inventive thinking style:

The creative potential of a person tends to increase with his or her:

You have just been assigned the task of developing an innovative new product,using people from engineering,marketing,purchasing and one or two other departments in the organization.To help the group to be as creative as possible,you would:

Which of the following is a creative practice?

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

Associative play,morphological analysis,and cross-pollination are three strategies to:

Which of these statements about creativity is TRUE?

A learning orientation is:

An important resource for creativity is:

Need for stimulation,the ability to synthesize ideas,and low need for social approval are characteristics of:

Organizations can improve creativity by:

People tend to be more creative when:

Employees tend to be more creative when they:

Vijay doesn't like to abide by rules,is not bothered by ambiguous situations,is willing to take a chance by making mistakes and is less concerned about social approval than most other employees.Vijay probably has:

What do impromptu storytelling,morphological analysis,and artwork have in common?