chapter 7

Question 1

technological competency

Answer 1

ability to understand new
technologies and to use them to their best advantage

Question 2

Information competency

Answer 2

ability to locate, gather, organize,
and display information for decision-making and problem
solving

Question 3

Analytical competency

Answer 3

ability to evaluate and analyze
information to make actual decisions and solve real problems

Question 4

Data

Answer 4

raw facts and observations

Question 5

Information

Answer 5

data made useful and meaningful for decision-
making

Question 6

Characteristics of useful information:

Answer 6

• Timely
• High quality
• Complete
• Relevant
• Understandable

Question 7

Management Information System:

Answer 7

Using the latest technologies to collect, organize, and
distribute data

Question 8

data mining

Answer 8

is the process of analyzing data to produce
useful information for decision makers

Question 8

Big data

Answer 8

exists in huge quantities and is difficult to process
without sophisticated mathematical and analytical
techniques

Question 9

Management analytics

Answer 9

involves the systematic evaluation and analysis of data to make informed decisions.

Question 10

Business intelligence

Answer 10

taps information systems to extract and report data in organized ways that are useful to decision makers

Question 11

Executive dashboards:

Answer 11

visually update and display key performance metrics and information on a real-time basis

Question 12

Information exchanges with the external environment:

Answer 12

• Gather intelligence information
• Provide public information

Question 13

Information exchanges within the organization:

Answer 13

• Facilitate decision- making
• Facilitate problem- solving

Question 14

Managers as Information Processors

Answer 14

• Continually gather, share, and receive information
• Now as much electronic as it is face to face
• Always on, always connected

Question 15

problem solving

Answer 15

process of identifying a discrepancy between
actual and desired performance and taking action to resolve it

Question 16

Decision

Answer 16

a choice among possible alternative courses of action

Question 17

Performance threat

Answer 17

something is wrong or has the potential to gowrong - when actual performance is less than desired or is moving
in an unfavourable direction.

Question 18

Performance opportunity

Answer 18

situation offers the chance for a better future if the right steps are taken, for e.g. it turns out better then
anticipated

Question 19

Problem avoiders

Answer 19

inactive in information gathering and solving
problems

Question 20

Problem solvers

Answer 20

reactive in gathering information and solving
problems

Question 21

Problem seekers

Answer 21

proactive in anticipating problems and
opportunities and taking appropriate action to gain an advantage

Question 22

Systematic thinking

Answer 22

approaches problems in a rational, step-
by-step, and analytical fashion

Question 23

Intuitive thinking

Answer 23

approaches problems in a flexible and
spontaneous fashion

Question 24

Multidimensional thinking

Answer 24

applies both intuitive and systematic thinking

Question 25

Structured problems

Answer 25

are ones that are familiar, straightforward, and clear with respect to information needs Programmed decisions apply solutions that are readily available from past experiences to solve structured problems

Question 26

Unstructured problems

Answer 26

are ones that are full of ambiguities and information deficiencies Nonprogrammed decisions apply a specific solution to meet the demands of a unique problem - commonly faced by higher-level management

Question 27

Crisis decision making

Answer 27

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

Question 28

Rules for crisis management:

Answer 28

- Figure out what is going on * Remember that speed matters * Remember that slow counts, too * Respect the danger of the unfamiliar * Value the skeptic * Be ready to “fight fire with fire ”

Question 29

Certain environment

Answer 29

offers complete information on possible action alternatives and their consequences

Question 30

Risk environment

Answer 30

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

Question 31

Uncertain environment

Answer 31

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

Question 32

The Decision-Making Process step 1 Identify and define the problem

Answer 32

Focuses on information gathering, information processing, and deliberation * Decision objectives should be established

Question 33

Common mistakes in defining problems:

Answer 33

- Defining the problem too broadly or too narrowly * Focusing on symptoms instead of causes * Choosing the wrong problem to deal with

Question 34

Common mistakes in defining problems:

Answer 34

- Defining the problem too broadly or too narrowly * Focusing on symptoms instead of causes * Choosing the wrong problem to deal with

Question 35

step 2;Generate and Evaluate Alternative Courses of Action

Answer 35

Potential solutions are formulated and more information is gathered, data are analyzed, the advantages and disadvantages of alternative solutions are identified

Question 36

Approaches for evaluating alternatives:

Answer 36

- Stakeholder analysis * Cost-benefit analysis

Question 37

Criteria for evaluating alternatives

Answer 37

Benefits | Costs | Timeliness | Acceptability | Ethical soundness

Question 38

Step 3 — Decide on a Preferred Course of Action

Answer 38

Two different approaches * Behavioural model leads to satisficing decisions * Classical model leads to optimizing decisions

Question 39

Step 4 — Implement the Decision

Answer 39

- involves taking action to make sure the solution decided upon becomes a reality * Managers need to have willingness and ability to implement action plans * Lack-of-participation error should be avoided

Question 40

Step 5 — Evaluate Results

Answer 40

* Involves comparing actual and desired results * Positive and negative consequences of chosen course of action should be examined * If actual results fall short of desired results, the manager returns to earlier steps in the decision-making process

Question 41

At all steps, check ethical reasoning! Ask these spotlight questions:

Answer 41

* Utility: Does the decision satisfy all constituents or stakeholders? * Rights: Does the decision respect the rights and duties of everyone? * Justice: Is the decision consistent with the canons of justice? * Caring: Is the decision consistent with my responsibilities to care?

Question 42

Issues in decision making

Answer 42

* How do decision errors happen? * Heuristics are strategies for simplifying decision making (practical methods

Question 43

Availability bias

Answer 43

bases a decision on recent information or events

Question 44

Representativeness bias

Answer 44

bases a decision on similarity to other situations

Question 45

Anchoring and adjustment bias

Answer 45

bases a decision on incremental adjustment from a prior decision point

Question 46

Framing Error

Answer 46

trying to solve a problem in the context perceived, positive or negative

Question 47

Confirmation Error

Answer 47

focusing on information that confirms a decision already made

Question 48

Escalating Commitment

Answer 48

continuing a course of action even though it is not working

Question 49

Creativity

Answer 49

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

Question 50

Big-C creativity occurs when

Answer 50

extraordinary things are done by exceptional people

Question 51

Little-C creativity occurs when

Answer 51

average people come up with unique ways to deal with daily events and situations