EM Extra

Question 1

A key to success in management and in your career is

Answer 1

knowing how to be an effective decision maker

Question 2

—a choice among two or more alternatives

Answer 2

decision

Question 3

an obstacle that makes it difficult to achieve a desired goal or purpose.

Answer 3

problem

Question 4

are factors that are important to resolving the problem

Answer 4

decision criteria

Question 5

choices that are logical and consistent and maximize value

Answer 5

Rational Decision Making

Question 6

decision making that’s rational, but limited by an individual’s ability to process information

Answer 6

Bounded rationality

Question 7

accepting solutions that are “good enough

Answer 7

satisfice

Question 8

making decisions on the basis of experience, feelings, and accumulated judgment

Answer 8

Intuitive Decision Making

Question 9

the systematic use of the best available evidence to improve management practice.

Answer 9

Evidence-based management (EBMgt)

Question 10

a decision-making approach where you solicit ideas and input from a network of people outside of the traditional set of decision makers.

Answer 10

Crowdsourcing

Question 11

straightforward, familiar, and easily defined problems

Answer 11

Structured problems

Question 12

repetitive decisions that can be handled by a routine approach

Answer 12

Programmed decisions

Question 13

a series of sequential steps used to respond to a well-structured problem

Answer 13

Procedure

Question 14

an explicit statement that tells managers what can or cannot be done

Answer 14

rule

Question 15

a guideline for making decisions

Answer 15

policy

Question 16

problems that are new or unusual and for which information is ambiguous or incomplete

Answer 16

Unstructured problems

Question 17

unique and nonrecurring and involve custom-made solutions

Answer 17

Nonprogrammed decisions

Question 18

low tolerance for ambiguity and seek rationality

Answer 18

Directive style

Question 19

seek rationality but have a higher tolerance for ambiguity

Answer 19

Analytic style

Question 20

intuitive decision makers with a high tolerance for ambiguity

Answer 20

Conceptual style

Question 21

intuitive decision makers with a low tolerance for ambiguity

Answer 21

Behavioral style

Question 22

or “rules of thumb” can help make sense of complex, uncertain, or ambiguous information.

Answer 22

Heuristics

Question 23

holding unrealistically positive
views of oneself and one’s performance

Answer 23

Overconfidence Bias

Question 24

choosing alternatives that offer immediate rewards and avoid immediate costs

Answer 24

Immediate Gratification Bias

Question 25

fixating on initial information and ignoring subsequent information

Answer 25

Anchoring Effect

Question 26

selecting, organizing and interpreting events based on the decision maker’s biased perceptions

Answer 26

Selective Perception Bias

Question 27

seeking out information that reaffirms past choices while discounting contradictory information

Answer 27

Confirmation Bias

Question 28

selecting and highlighting certain aspects of a situation while ignoring other aspects

Answer 28

Framing Bias

Question 29

losing decision-making objectivity by focusing on the most recent events

Answer 29

Availability Bias

Question 30

drawing analogies and seeing identical situations when none exist

Answer 30

Representation Bias

Question 31

creating unfounded meaning out of random events

Answer 31

randomness bias

Question 32

forgetting that current actions cannot influence past events and relate only to future consequences

Answer 32

Sunk Costs Errors

Question 33

taking quick credit for successes and blaming outside factors for failures

Answer 33

Self-serving Bias

Question 34

mistakenly believing that an event could have been predicted once the actual outcome is known (after-the-fact)

Answer 34

Hindsight Bias

Question 35

the vast amount of quantifiable data that can be analyzed by highly sophisticated data processing

Answer 35

big data

Question 36

uses computing power to solve complex problems

Answer 36

Artificial Intelligence (AI)

Question 37

A method of data analysis that automates analytical model building.

Answer 37

Machine Learning

Question 38

A subset of machine learning that use algorithms to create a hierarchical level of artificial neural networks that simulate the function of the human brain.

Answer 38

deep learning

Question 39

The use of mathematics, statistics, predictive modeling, and machine learning to find meaningful patterns in a data set.

Answer 39

analytics