Chapter 7 Flashcards
A ______ is a choice made from available alternatives.
Decision
Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization’s best interests?
Rational Model
Picking a solution is which step in the rational decision-making process?
Third
The first stage in the rational decision-making process involves
Identifying the problem
Situations that present possibilities for exceeding existing goals are known as
Opportunities
Which of the following is an accurate description of decision making?
The process of identifying and choosing among alternative courses of action
Conducting a ______ involves identifying and analyzing the underlying causes of a problem or an opportunity.
Diagnosis
The rational model of decision making emerged from Adam Smith’s theory, assuming people make rational decisions based on:
Analysis of all potential outcomes
Which of the following are examples of what can function as the first stage in rational decision making by managers?
Sales shortfalls
Poor product quality
Customer complaints
Low staff turnover
Sales Shortfalls, Poor Product quality, Customer complaints
When Kendra’s manager asked the team to develop new ideas for attracting people to their trade show booth, Kendra suggested installing a video game. Which part of the rational decision-making process does Kendra’s idea exemplify?
Think up alternative situations
Ryan learns that distribution problems caused a competitor’s sales to fall in his region. He decides to take advantage of the situation by adding a salesperson to capture some of the competitor’s lost business. Ryan is demonstrating how a(n) ______ affects decision making
Opportunity
Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making? (More than one answer may be correct.)
Multiple select question.
Is it ultimately effective?
Is it feasible?
Is it profitable?
Is it creative?
Is it ethical?
Ultimately effective, feasible, ethical
Ronnie’s company uses large numbers of snow blowers. After several failed, Ronnie determined that the failures were due to defective motors and decided that the company would use a different vendor for future purchases. In this situation, Ronnie is making a
Diagnosis
In the fourth stage of rational decision making, managers will
implement and evaluate the chosen solution
The results of rational decision making should be evaluated because things may occur that were not foreseen, a “law” in economics known as the Law of ______ Consequences.
Unintended
List the four steps in the rational decision making model with the first step in the process at the top and the last step on the bottom.
1.Identify the issue
2.Come up with potential solutions
3.Evaluate the possibilities and select a solution
4.Put the solution into practice and evaluate it.
Which scenario describes behaviors that occur in stage two of the rational decision-making process?
Bar staff have a brainstorming session to generate ideas for attracting customers; the suggestions get crazy.
The middle manager knew the management team decided to follow a hotly debated decision; she did not think it would work because the customers would soundly reject it.
The food delivery truck is late; when it arrives, everyone helps unload, including the manager.
When a small business owner discovers a location they covet is going on the market, they ignore everything and start crunching numbers to see if they can make an offer.
Bar staff have a brainstorming session to generate ideas for attracting customers; the suggestions get crazy.
Successful implementation of major decisions requires which of the following? (Choose every correct answer.)
Multiple select question.
Ignoring ethical dilemmas
Reliance on the easy way out of the problem
Sensitivity to those affected by the decision
Careful planning
Sensitivty to those affected by the decision
Careful Planning
Which of these assumptions are made in the rational model of decision making? (More than one answer may be correct.)
Managers will always select the course of action that they know will most benefit the organization.
Managers can make logical decisions without prejudice or emotional bias.
Managers will not be limited by time or money constraints when implementing the chosen solution.
Managers will be influenced by their own self-interest when choosing among alternative courses of action.
Managers have complete, error-free information about alternative courses of action and their consequences.
Managers will always select the course of action that they know will most benefit the organization.
Managers can make logical decisions without prejudice or emotional bias.
Managers have complete, error-free information about alternative courses of action and their consequences.
What are appropriate actions for a manager to take if a decision is not working as intended? (Choose every correct answer.)
Deny there is anything wrong.
Try another alternative.
Change it slightly.
Blame others.
Start over.
Give it more time.
Try another alternative.
Change it slightly.
Start over.
Give it more time.
What are the first two steps in the rational decision making model?
generating alternative solutions
determining the issue at hand
Which model of decision making acknowledges that uncertainty and risk make it difficult for managers to make optimal decisions?
Nonrational Model
The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them.
Prescriptive
The concept that suggests that the ability of decision makers to be rational is limited by constraints such as complexity, skills, time, and money is known as
_______________ rationality.
Bounded