Chapter 7 Notes

Question 1

What are the two systems of decision making?

Answer 1

System 1 and 2

Question 2

System 1

Answer 2

Intuitive and largely unconscious , fast automatic and largely unconscious mode

Question 3

System 2

Answer 3

Slow, deliberate, analytical and arrive at explicit beliefs and reasoned choices

Question 4

Classical/ Rational model

Answer 4

How managers should make decisions, and assumes managers to make logical decisions the organizations best interest

Question 5

Steps of the classical model/ rational model

Answer 5

Identify the problem or opportunity, think up alternative solutions, evaluate and select a solution, implement the solution chosen

Question 6

What are some issues with the rational model?

Answer 6

It describes how managers should make decisions but not how they actually do it

Question 7

Non-rational model

Answer 7

Explains how managers make decisions , more descriptive than prescriptive

Question 8

Two types of non-rational model

Answer 8

Satisficing, and bounded rationality

Question 9

Satisficing

Answer 9

Herbert Simon studied how managers actually make decisions

Question 10

Bounded Rationality

Answer 10

Concept that suggest that the ability of decision makers to be rational is limited by time, complexity ,etc

Question 11

Decision Tree

Answer 11

A graph of decision and their possible consequences

Question 12

Evidence- Based Management

Answer 12

The translation of principles based on best evidence into organizational practice

Question 13

Predicitve Modeling

Answer 13

data mining techniques used to predict future behavior

Question 14

Big Data

Answer 14

Includes not only data in corporate databases but surveillance, network communications

Question 15

Big Data Analytics

Answer 15

The process of examining large amounts of data a variety of types to uncover

Question 16

What are the 4 ineffective reactions to how individuals respond to a decision situation

Answer 16

Relaxed Avoidance, Relaxed Charge, Defensive Avoidance, and Panic

Question 17

Relaxed avoidance

Answer 17

manager decides to take no action in the belief that there will be no negative consequences

Question 18

relaxed change

Answer 18

manager realizes that complete inaction will have negative consequences but opts for the first available alternative

Question 19

Defensive Avoidance

Answer 19

managers can’t find good solutions and procrastinates, passes the buck

Question 20

Panic

Answer 20

managers are so frantic to get rid of the problem that he or she can’t deal

Question 21

3 effective reactions

Answer 21

Importance, Credibility and Urgency

Question 22

What is the Delphi Technique?

Answer 22

A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas.