Chapter 4: Managers as Decision Makers

Question 1

Define problem solving

Answer 1

involves identifying and taking action to resolve problems

Question 2

Define knowledge workers

Answer 2

add value to organizations through their intellectual capabilities

Question 3

Define information competency

Answer 3

the ability to gather and use information to solve problems

Question 4

Define performance threat

Answer 4

a situation where something is wrong or likely to be wrong

Question 5

Define performance opportunity

Answer 5

a situation that offers the possibility of a better future if the right steps are taken

Question 6

Define decision

Answer 6

a choice among possible alternative courses of action

Question 7

Define programmed decision

Answer 7

applies a solution from past experience to a routine problem

Question 8

Define nonprogrammed decision

Answer 8

applies a specific solution that has been crafted to address a unique problem

Question 9

Define systematic thinking

Answer 9

approaches problems in a rational and analytical fashion

Question 10

Define intuitive thinking

Answer 10

approaches problems in a flexible and spontaneous fashion

Question 11

Define cognitive style

Answer 11

the way an individual deals with information while making decisions

Question 12

Define certain environment

Answer 12

offers complete information on possible action alternatives and their consequences

Question 13

Define risk environment

Answer 13

lacks complete information but offers probabilities of the likely outcomes for possible action alternatives

Question 14

Define uncertain environment

Answer 14

lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives

Question 15

What are the 5 steps to the decision-making process

Answer 15

o Step 1 is to identify and define the problem
o Step 2 is to generate and evaluate alternative courses of action
o Step 3 is to decide on a preferred course of action
o Step 4 is to implement the decision
o Step 5 is to evaluate results

Question 16

Define decision-making process

Answer 16

begins with identification of a problem and ends with evaluation of implemented solutions

Question 17

Define cost-benefit analysis

Answer 17

involves comparing the costs and benefits of each potential course of action

Question 18

Define classic decision model

Answer 18

describes decision making with complete information

Question 19

Define optimizing decision

Answer 19

chooses the alternative providing the absolute best solution to a problem

Question 20

Define behavioral decision model

Answer 20

describes decision making with limited information and bounded rationality

Question 21

Define satisficing decision

Answer 21

chooses the first satisfactory alternative that presents itself

Question 22

Define lack of participation error

Answer 22

failure to include the right people in the decision-making process

Question 23

Define spotlight questioning

Answer 23

highlight the risks of public disclosure of one’s actions

Question 24

Define creativity

Answer 24

the generation of a novel idea or unique approach that solves a problem or crafts an opportunity

Question 25

Define availability heuristic

Answer 25

uses readily available information to assess a current situation

Question 26

Define representativeness heuristic

Answer 26

assesses the likelihood of an occurrence using a stereotyped set of similar events

Question 27

Define anchoring and adjustment heuristic

Answer 27

adjusts a previously existing value or starting point to make a decision

Question 28

Define framing error

Answer 28

solving a problem in the context perceived

Question 29

Define confirmation error

Answer 29

when we attend only to information that confirms a decision already made

Question 30

Define escalating commitment

Answer 30

the continuation of a course of action even though it is not working

Question 31

Define crisis

Answer 31

an unexpected problem that can lead to disaster if not resolved quickly and appropriately