Chapter 11

Question 1

Making choices among
alternative courses of action,
including inaction.

Answer 1

Decision making

Question 2

Decisions that occur frequently
enough that we develop an
automated response to them.

Answer 2

programmed decisions

Question 3

Automated responses used to
make programmed decisions.

Answer 3

decision rule

Question 4

Unique, nonroutine, and important decisions that
require conscious thinking, information gathering, and
careful consideration of alternatives.

Answer 4

nonprogrammed decisions

Question 5

A decision making model which describes the series of
steps that decision makers should consider if their goal is
to maximize their outcome.

Answer 5

rational decision-making model

1. Identify the problem
2. Establish decision criteria
3. Weigh decision criteria
4. Generate alternatives
5. Evaluate the alternative
6. Choose the best alternative
7. Implement the decision
8. Evaluate the decision

Question 6

A decision-making process
where more and more time is
spent on gathering information
and thinking about it but no
decisions actually get made

Answer 6

analysis paralysis

Question 7

A model that recognizes the
limitations of decision-making processes. According to this
model, individuals knowingly limit their options to a
manageable set and choose the
best alternative without conducting an exhaustive search for alternatives.

Answer 7

bounded rationality model

Question 8

Accepting the first alternative
that meets minimum criteria

Answer 8

satisfice

Question 9

Arriving at decisions without conscious reasoning. The
model argues that in a given situation, experts making
decisions scan the
environment for cues to recognize patterns.

Answer 9

The intuitive decision-making model

Question 10

The generation of new ideas.

Answer 10

Creativity

Question 11

The step in which the need for
problem solving becomes
apparent.

Answer 11

problem
identification

Question 12

The step where the decision maker thinks about the problem consciously and
gathers information.

Answer 12

Immersion

Question 13

The step when the decision
maker sets the problem aside
and does not think about it for
a while.

Answer 13

incubation

Question 14

The insight moment, when the
solution to the problem
becomes apparent.

Answer 14

illumination

Question 15

The stage when the decision
maker consciously verifies the
feasibility of the solution and
implements the decision.

Answer 15

verification and application

Question 16

The number of ideas a person
is able to generate.

Answer 16

Fluency

Question 17

How different the ideas are
from one another. If decision
makers are able to generate
several unique solutions to a
problem, they are high on
flexibility.

Answer 17

Flexibility

Question 18

How unique a person’s ideas
are.

Answer 18

Originality

Question 19

A process of generating ideas
that follows a set of guidelines,
which includes no criticism of
ideas during the process, the
idea that no suggestion is too
crazy, and building on other
ideas (piggybacking).

Answer 19

Brainstorming

Question 20

A set number of ideas a group
must reach before they are
done with brainstorming.

Answer 20

idea quotas

Question 21

A variation of brainstorming
where the group focuses on
ideas that are impossible and
then imagines what would
need to happen to make them
possible.

Answer 21

wildstorming

Question 22

What are the four different decision-making models?

Answer 22

rational, bounded rationality, intuitive,
and creative

Question 23

KT 11.2

Answer 23

Decision making is choosing among alternative courses of action, including
inaction. There are different types of decisions, ranging from automatic,
programmed decisions to more intensive nonprogrammed decisions.
Structured decision-making processes include rational decision making,
bounded rationality, intuitive, and creative decision making. Each of these
can be useful, depending on the circumstances and the problem that needs
to be solved.

Question 24

When individuals overestimate
their ability to predict future
events.

Answer 24

Overconfidence bias

Question 25

The opposite of overconfidence bias as it occurs when a person, looking at the past, judges that a mistake that was made should have been recognized as a mistake at the time.

Answer 25

Hindsight bias

Question 26

The tendency for individuals to rely too heavily on a single piece of information.

Answer 26

Anchoring

Question 27

The tendency of decision makers to be influenced by the way that problems are framed.

Answer 27

Framing bias

Question 28

When individuals continue on a failing course of action after information reveals this may be a poor path to follow.

Answer 28

Escalation of commitment *** aka - sunk costs fallacy

Question 29

KT 11.3

Answer 29

Understanding decision-making traps can help you avoid and manage them. Overconfidence bias can cause you to ignore obvious information. Hindsight bias can similarly cause a person to incorrectly believe in their ability to predict events. Anchoring and framing biases show the importance of the way problems or alternatives are presented in influencing one’s decision. Escalation of commitment demonstrates how individuals’ desire for consistency, or to avoid admitting a mistake, can cause them to continue to invest in a decision that is not prudent.

Question 30

The tendency of individuals to put in less effort when working in a group context.

Answer 30

social loafing

Question 31

A group pressure phenomenon that increases the risk of the group making flawed decisions by allowing reductions in mental efficiency, reality testing, and moral judgment.

Answer 31

groupthink

Question 32

A technique designed to help with group decision making by ensuring that all members participate fully.

Answer 32

Nominal Group Technique (NGT)

Question 33

A group process that uses written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

Answer 33

Delphi Technique

Question 34

A decision-making rule where each member of the group is given a single vote and the option that receives the greatest number of votes is selected.

Answer 34

Majority rule

Question 35

A decision-making rule that groups may use when the goal is to gain support for an idea or plan of action. This decisionmaking rule is inclusive, participatory, cooperative, and democratic.

Answer 35

Consensus

Question 36

Interactive computer-based systems that are able to combine communication and decision technologies to help groups make better decisions.

Answer 36

Group decision support systems (GDSS)

Question 37

Systems for managing knowledge in organizations, supporting creation, capture, storage, and dissemination of information.

Answer 37

knowledge management systems

Question 38

Diagrams where answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree.

Answer 38

Decision trees

Question 39

KT 11.4

Answer 39

There are trade-offs between making decisions alone and within a group. Groups have greater diversity of experiences and ideas than individuals, but they also have potential process losses such as groupthink. Groupthink can be avoided by recognizing the eight symptoms discussed. Finally, there are a variety of tools and techniques available for helping to make more effective decisions in groups, including the Nominal Group Technique, Delphi Technique, majority rule, consensus, GDSS, and decision trees. Understanding the link between managing teams and making decisions is an important aspect of a manager’s leading function.

Question 40

KT 11.5

Answer 40

There are a number of ways to learn about decision making that can help make you more effective. If the decision is important, conduct a premortem to anticipate what might go wrong. When a decision is going to involve others, be proactive in getting them to buy in before the decision is made. Individuals and groups can suffer from decision-making traps and process losses. Understanding that you can spot and avoid these traps is important in helping to make you a more effective manager.