Question 1

To make effective decisions in today's fast-moving world, managers need to ________.

Accepted Answer

Knowing when to call it quits is important for effective decision making in order to avoid continued investment in a failing endeavor. Building organizations that shun complexity or rely solely on past successes can limit growth and innovation. Ignoring cultural differences can lead to misunderstandings and hinder collaboration.

Question 2

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

Accepted Answer

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Question 3

Michelle finds a company directive that specifically restricts her from taking certain actions.This is a(n) ________.

Accepted Answer

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Question 4

Pat is the manager of a large project that has been underway for the last eight months.It has now become apparent that, due to various external factors, the project is unlikely to succeed.Even though the best option would be to withdraw from the project, Pat continues to pump money and resources into it in the hope that the project's prospects will change.He reasons that he doesn't want all those months of hard work to go to waste.This is an example of the ________.

Accepted Answer

Pat's decision to continue investing resources into a project that is unlikely to succeed is an example of the sunk costs error. This is the tendency to persist with a course of action, even when it is clear that the costs outweigh the benefits, because of the time, effort, and resources that have already been invested in it. Pat is continuing to invest in the project because he does not want the time, effort, and resources already invested to go to waste, rather than making a rational decision based on the project's current prospects for success.

Question 5

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

Accepted Answer

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Question 6

Explain any six decision errors and biases that managers make.

Accepted Answer

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Question 7

Discuss the three types of programmed decisions that a manager depends on to resolve structured problems.

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Question 8

Usually Sharon follows a ________, a series of interrelated sequential steps for responding to a structured problem.

Accepted Answer

The best choice is procedure as it refers to a series of steps to be followed in a particular order to solve a specific problem or to carry out a certain task. Rules and codes are general guidelines or principles to be followed, while policies are broader statements of principles and objectives.

Question 9

What is meant by bounded rationality and satisficing?

Accepted Answer

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Question 10

Define intuitive decision making and identify the five different aspects of intuition.

Accepted Answer

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Question 11

Michelle eventually finds a problem that has no cut-and-dry solution.The problem is unique and is unlikely to occur again.This problem is ________ in nature.

Accepted Answer

Nonprogrammed problems are those that are unique, unstructured, and require custom solutions. As described in the scenario, the problem Michelle is facing is unique and unlikely to occur again, indicating that it cannot be solved by following a set program or routine. Thus, the best choice is nonprogrammed.

Question 12

What can a manager do to make effective decisions in today's fast-moving world?

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Question 13

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

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Question 14

Martie 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.Martie reacts to this news by saying, "I knew all along that this would happen." This is an example of the ________.

Accepted Answer

Martie's statement reflects the hindsight bias, also known as the "I-knew-it-all-along" bias, which refers to the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome beforehand. Martie is implying that she had a premonition or intuition that the speaker would drop out, even though there is no evidence to suggest that she actually had such knowledge before the fact.

Question 15

An effective decision-making process ________.

Accepted Answer

Focusing on matters of importance is crucial for an effective decision-making process. Consistency and reliability are also important, but logic cannot be sacrificed. Subjective and intuitive thinking may have their place in the decision-making process, but they should be balanced with objective analysis. Complexity is not necessarily a sign of effectiveness; simplicity can also be a virtue in decision-making.

Question 16

Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.

Accepted Answer

Design thinking emphasizes the importance of gaining a deep understanding of the situation before generating solutions. This is achieved through collaboration and integrative thinking, which involves considering multiple perspectives and engaging with stakeholders. The goal is not simply to come up with a rational approach or analyze the situation deductively, but rather to develop solutions that are human-centered and meet the needs of those affected by the problem.

Question 17

Discuss the three different decision-making conditions that managers usually face.

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Question 18

When a customer calls and requests a refund for a partial month's usage of the cable service, the fact that such situations are routine and most likely have a standard response would make the response a(n) ________ decision.

Accepted Answer

Programmed decisions are routine, repetitive, and well-structured decisions that can be made simply by following established guidelines and procedures. In this situation, the fact that such requests for refunds are routine suggests that the company has a standard protocol or set of guidelines for handling such requests, making it a programmed decision.

Question 19

Before talking to a repair person, Colleen needs to prioritize the repairs.Her first concern is safety of the vehicle.This step in the decision-making process is called ________.

Accepted Answer

Identifying the decision criteria involves recognizing and prioritizing the key factors to consider when making a decision. In this case, Colleen has identified that safety is her top priority, which is necessary before considering any alternatives or evaluating the effectiveness of the decision.

Question 20

Colleen needs a vehicle, but she has to decide if the vehicle is worth repairing.She is facing a(n) ________ that is a discrepancy between an existing and a desired state of affairs.

Accepted Answer

Colleen is facing a problem because she needs a vehicle but has to decide whether it is worth repairing. A problem is a situation where there is a discrepancy between an existing and a desired state of affairs. The other answer choices are not applicable in this scenario.

Quiz 6: Managers As Decision Makers