Organizational Decision Making Flashcards
As described by Janis (1982), the symptoms of groupthink include all of the following except:
A. collective rationalization.
B. an illusion of moral superiority.
C. low group cohesiveness.
D. self-censorship.
Answer C is correct. According to Janis, the symptoms of groupthink include illusions of invulnerability and superior morality, use of collective rationalization, excessive stereotyping, self-censorship, and the presence of self-appointed mindguards. A high degree of group cohesiveness increases the risk for groupthink.
In organizations, decisions that rely on established rules and procedures are referred to as __________ decisions.
A. nonprogrammed
B. programmed
C. reactive
D. proactive
Answer B is correct. Programmed decisions are repetitive and routine decisions that are governed by rules, policies, and procedures, while nonprogrammed decisions are non-repetitive and complex, require unique or creative solutions, and rely on the decision-maker’s judgment and problem-solving skills.
According to Simon’s (1957) bounded rationality model, managers often “satisfice” when making decisions due to:
A. time restrictions and limited information.
B. their tendency to make decisions autocratically.
C. the lack of connection between their decisions and personal outcomes.
D. their tendency to make “middle-of-the-road” decisions.
Answer A is correct. The bounded rationality model proposes that rational decision-making is limited by time restrictions, insufficient information, and the cognitive limitations of the decision maker. As a result, decision makers often satisfice – i.e., consider alternatives only until a “good enough” alternative is found rather than identify and consider all possible alternatives before choosing one.
