Chapter 9

Question 1

When a person makes a decision using a previous decision as a reference point

Answer 1

Anchoring & Adjustment Heuristic

Question 2

When a person makes a decision primarily based on recent events and readily available information

Answer 2

availability heuristics

Question 3

An assumption that humans are limited in their ability to be perfectly rational and unbiased in their decision making; information is incomlplete and there is an unstructured problem, making decision-making challenging

Answer 3

behavioral decision model

Question 4

Making decisions in situations with incomplete information and a restricted amount of alternatives

Answer 4

bounded rationality

Question 5

An environment that has all necessary information regarding each choice of action and its predicted outcome

Answer 5

certain environment

Question 6

A situation in which the manager has all necessary information and makes decisions rationally, without bias

Answer 6

classical decision model

Question 7

After making a decision, a person only listens to information that confirms his/her chosen course of action

Answer 7

confirmation error

Question 8

An unanticipated situation that must be solved quickly in order to prevent a large-scale calamity

Answer 8

crisis

Question 9

Courses designed to prepare managers for crises that could compromise an organization’s well-being

Answer 9

crisis management programs

Question 10

Statistics and other individual facts and observations

Answer 10

data

Question 11

When a person is reluctant to abandon a decision despite the fact that the current course of action is not working because he/she has made a large investment of time or money into that course of action

Answer 11

escalating commitment

Question 12

A misunderstanding of information due to the context in which it is perceived

Answer 12

framing error

Question 13

Common ways of simplifying the decision-making process

Answer 13

heuristics

Question 14

When you alter the criteria and assessment of the alternatives to confirm that your favorite is the most rational choice

Answer 14

implicit favorite decision-making

Question 15

Data presented in a meaningful way that assists decision-making

Answer 15

information

Question 16

A structure that utilizes information to gather, systemize, and disseminate data in order to make decisions

Answer 16

information systems

Question 17

Uses computers to assist people in gathering, storing, and processing information

Answer 17

information technology

Question 18

Spontaneous style of solving problems, making decisions based on a quick and broad assessment

Answer 18

intuitive thinking

Question 19

Neglecting to involve the people needed in the implementation of an alternative during the planning phase of decision making

Answer 19

lack of participation error

Question 20

Systems that use computerized information-processing systems to assist managers in decision making

Answer 20

management information systems

Question 21

The ability to recognize and evaluate many problems at once and how they relate to each other

Answer 21

multidimensional thinking

Question 22

Special solutions created for uncommon situations

Answer 22

non-programmed decisions

Question 23

Choosing the highest quality alternative possible

Answer 23

optimizing decision

Question 24

Recognizing and finding solutions to problems

Answer 24

problem solving

Question 25

Decisions that a person has already successfully implemented in the past

Answer 25

programmed decisions

Question 26

A person has access to all relevant information and can accurately rate each factor and choose the alternative that maximizes his or her utility

Answer 26

rational model

Question 27

If a person makes a decision heavily rooted in assumptions that come from other situations that appear similar

Answer 27

representation heuristics

Question 28

The setting for a high number of management problems where not all necessary information is available to make a decision; there are probabilities of different outcomes for each possible decision

Answer 28

risk environment

Question 29

When we look for alternatives only long enough to find one that satisfies our needs

Answer 29

satisficing

Question 30

The first acceptable solution that one can think of

Answer 30

satisficing decision

Question 31

The ability to resolve long-term issues while prioritizing and resolving the everyday problems at a job

Answer 31

strategic opportunism

Question 32

Problems that can be solved by employing a clear sequence of activities with information that is readily available

Answer 32

structured problems

Question 33

Using rational methods of solving problems

Answer 33

systematic thinking

Question 34

An environment where there is so little information that a manager cannot even assign probabilities of various outcomes occurring

Answer 34

uncertain environment

Question 35

Situations that are characterized by incomplete information

Answer 35

unstructured problem

Question 36

Method of budget formulation that recognizes our tendency to assume that the base anchor is a valid number

Answer 36

zero based budgeting