Cap Notes Chapter 1

Front 1

____________ is the most important and difficult task that all managers confront.

Back 1

Decision making

Front 2

Most decisions are made in an atmosphere in which there is _______, _______, _______, _______, and _______ as to responses.

Back 2

- uncertainty
- risk
- time pressure
- imperfect information
- a lack of knowledge

Front 3

__________ is a part of all the management functions: planning, organizing, leading, and controlling

Back 3

Decision making

Front 4

The use or misuse of _________ and ________ helps one identify those managers who are effective as well as those who are ineffective.

Back 4

- communications
- risk

Front 5

The ______ and _______ concern for the competence and social responsibility exhibited by managers when decision-making processes are used in the performance of their managerial functions.

Back 5

- legal
- social

Front 6

_________ is the process through which he or she identifies and solves problems creatively, a process that involves making appropriate and rational decisions.

Back 6

Decision making

Front 7

____________ represents an ideal model of decision making, with maximizing outcomes as a primary goal.

Back 7

Classical theory of decision making

Front 8

________ is the process of making a decision that is aimed at realizing the best possible outcome on one dimension - seeking the best answer.

Back 8

Maximizing

Front 9

Managers known for maximizing their decisions typically are in the __________ management levels.

Back 9

middle hierarchical

Front 10

Maximizing is most often used with __________ decisions, but some managers try to maximize with ________ decision making as well

Back 10

- nonprogrammed
- programmed

Front 11

Satisficing is almost the extreme opposite of ___________.

Back 11

maximizing

Front 12

List three decision making strategies

Back 12

- Maximizing
- Satisficing
- Optimizing

Front 13

In _________, the manager adopts the solution that minimally meets the objectives, often found in the first acceptable option that arises.

Back 13

Satisficing

Front 14

Satisficing is very commonly used and appropriate with _________ and ________ decisions.

Back 14

- programmed
- recurring

Front 15

__________ involves the use of the classical decision-making model more than the other two types of strategies.

Back 15

Optimizing

Front 16

Managers who are _________ tend to arrive at logical and analytical decisions and perhaps are stronger advocates of ________ theory.

Back 16

- "left-brain thinkers"
- classical

Front 17

Four steps in the classical theory of decision making

Back 17

1. Identification of the problem
2. Presence of CERTAINTY
3. Information about alternatives
4. MAXIMIZATION of outcomes

Front 18

Classical theory - Identification of the problem - A definite problem is _________ and _________, with objectives for solving that problem fully developed.

Back 18

- clearly stated
- defined

Front 19

Classical theory - Presence of CERTAINTY - The amount of risk is ________ and __________. The manager is _______ of the amount of risk involved in the decision to be made.

Back 19

- clearly evident
- easily determined
- certain

Front 20

Classical theory - Information about alternatives - Gathering ________ information about the problem is paramount. A _______ of information about each alternative becomes available, and the expected outcomes for each alternative are _______. The manager spends considerable time and effort ________ the problem and ________ complete information about the problem and alternatives.

Back 20

- complete
- full set
- determined
- researching
- compiling

Front 21

Classical theory - MAXIMIZATION of outcomes - The manager's goal is to attempt to make the _______ decision.

Back 21

ideal

Front 22

The classical model is considered the _____ model because it defines _____ a particular decision maker should make decision. The value of applying this model is shown best when __________ is available, _________ can be calculated, and decisions can be made with known _______ and _______.

Back 22

- normative
- how
- relevant information
- probabilities
- certainty
- risk

Front 23

The behavioral (administrative) model, based on the work of _________, describes how managers ________ make decisions in business situations. This model incorporates two basic concepts, _________ and _________, and is based on assumptions that are different from those pertaining to classical theory

Back 23

- Herbert A. Simon
- actually
- bounded rationality
- satisficing

Front 24

Managers who are _________ tend to rely on more intuitive and creative pursuits in their decision-making processes and may be more apt to follow a _________ model.

Back 24

- "right-brain thinkers"
- behavioral (administrative) model

Front 25

Four steps in the behavioral (administrative) theory of decision making

Back 25

1. Identification of the problem
2. Presence of UNCERTAINTY and INTUITION
3. Information about alternatives
4. SATISFICING decision making

Front 26

Behavioral (administrative) theory of decision making - Identification of the problem - A problem exists and is identified, but there is __________ what the problem is and defining it. _______ engulfs the objectives as well.

Back 26

- difficulty in determining clearly
- Vagueness

Front 27

Behavioral (administrative) theory of decision making - Presence of UNCERTAINTY and INTUITION - This theory appears to be more ______ than the classical model for more _____ decisions that are nonprogrammable. Uncertainty about the outcome exists because there is only ________ information available for the manager to consider in making a decision. Sometimes the manager must use ________, based on personal experience, without conscious knowledge of possible outcomes.

Back 27

- realistic
- complex
- incomplete
- intuition

Front 28

Behavioral (administrative) theory of decision making - Information about alternatives - Only _______ information is available about alternative solutions and the expected outcomes of each alternative. Therefore, managers are limited on how __________ their decisions can be.

Back 28

- limited
- rational

Front 29

Managers functioning within bounded rationality, recognizing that decisions must be made as ___________ as possible with only ________ information available.

Back 29

- rationally
- limited

Front 30

Behavioral (administrative) theory of decision making - SATISFICING decision making - Managers select the alternative solution that satisfies __________ decision criteria and seems _______, although certainly not _____ or ______. _________ plays an important part, too, in the manager's decision-making process.

Back 30

- minimal
- "good enough"
- perfect
- ideal
- Intuition

Front 31

The behavioral (administrative) theory of decision making recognizes _________ and _________ limitations affecting a manager's ability to make rational business decisions.

Back 31

- human
- environmental

Front 32

Behavioral (administrative) procedures have been associated with high performance in _________ environments where decisions must be made under _______ and _______ conditions and within a _________ period of time.

Back 32

- unstable
- more complex
- difficult
- short

Front 33

Classic procedures, based on rational managerial decisions, to be associated with high performance for organizations in _______ environments.

Back 33

stable

Front 34

In making personal decisions, one may choose to behave _________ or ______ in making personal decisions.

Back 34

- rationally
- irrationally

Front 35

When making business decisions, managers and other organization leaders are expected to act in a _________, ________ notwithstanding.

Back 35

- totally rational manner
- emotions

Front 36

__________ and ___________ also enter in the making of business decisions.

Back 36

- Emotions
- intuition

Front 37

The higher up the hierarchical ladder that managers go, the _____ they rely on intuition and _______ on systematic processes in their decision making. This intuition may incorporate a __________ of the systematic process as well as ___________ and previously acquired ______.

Back 37

- more
- less
- "nanosecond version"
- experience
- feelings

Front 38

Managers are also expected to know and to use _________ and appropriate aids to decision making, such as ________ and _____.

Back 38

- computers
- statistics
- decision trees

Front 39

Rational decision making requires ________.

Back 39

critical thinking

Front 40

The belief in the power of _________ is so deeply held by some people that they assume good decisions will result if the prescribed process is followed.

Back 40

rationality

Front 41

The steps in the scientific process are _________ in number and title. The application of these steps, however, can be _______.

Back 41

- deceptively simple
- incredibly complex

Front 42

List the 7 steps in the Scientific Process

Back 42

1. Identifying and defining the problem.
2. Gathering information about the problem
3. Developing alternative solutions
4. Evaluating alternatives
5. Choosing an alternative
6. Implementing the decision
7. Monitoring the decision

Front 43

The most important step in the scientific method of decision making is ________. Sometimes this step seems easy because the problem is _________.

Back 43

- identifying and defining the problem
- obvious

Front 44

The deceptive simplicity of identifying and defining the problem can cause one of the major failures in decision making: _________________, then "solving" the ___________.

Back 44

- confusing the symptom with cause
- symptom

Front 45

A major reason for failing to identify the real causes of problems is _________. Sometimes the person who perceives and defines the problem is pressured into _______ by an _________. Aside from work pressure, there is in all of us a discomfort with _____, _______, and ________ situations.

Back 45

- haste
- haste
- overload of work
- ambiguous
- vague
- ill-defined

Front 46

List 5 results of failure to identify real causes.

Back 46

1. The real cause is neither addressed nor removed.
2. The decision maker who believes the problem to be solved relaxes her or his guard against a recurrence and thus becomes more vulnerable to its recurrence.
3. Some person or thing is addressed in the solution of the symptom (the incorrectly defined problem).
4. Persons who are directly or indirectly affected by the incorrect action are likely to feel proper indignation and to respond with some form of resentful and retaliatory behavior.
5. Unless the causal factor disappears on its own, it will recreate the same problem at a later date.

Front 47

Great care should be taken to investigate ______ the circumstances surrounding the event that is __________ the problem. This is the time for challenging all prior _______ and __________ about the problematic event.

Back 47

- fully
- perceived to be
- assumptions
- beliefs

Front 48

Most decision situations provide far greater latitude for the decision maker to follow individual desires in setting the objectives to be achieved. Clear acknowledgement of what one _________ rarely gives the answer to what one ______. Any decision to change opens one to the questions of changing to _____ to ________.

Back 48

- does not want
- does want
- what?
- where?

Front 49

To develop alternative solutions, a clear statement of the _________, which any alternative action is expected to meet, with more or less appropriate information, must be developed.

Back 49

objective

Front 50

The _________ should have been explicit in the first step, as the problem is defined, in order to _______ the collection of appropriate information. The ______ the objective before the information gatherers, the ______ opportunity they have to _______ the possible outcomes through the types of information they ___ or ______ collect.

Back 50

- objective
- guide
- less clear
- more
- affect
- do
- do not

Front 51

Brainstorming has been designed to help individuals become ____________. Brainstorming is used to _____________. The expectation is that persons who are provided with _______ and ________ will direct their psychic energies into producing new ideas.

Back 51

- freer in exercising their creativity
- generate ideas in the decision process
- encouragement
- facilitating circumstances

Front 52

A major use of brainstorming is in the development of ____ in ______ situations.

Back 52

- alternatives
- decision

Front 53

List two techniques to increase creativity.

Back 53

1. Brainstorming
2. Brainwriting

Front 54

List 5 requirements for brainstorming.

Back 54

1. Persons who are expected to be motivated to find a solution to the problem are brought together for the purpose of naming as many alternatives as possible in a short period of time.
2. The rules require that the idea be given by one who thinks of it.
3. Neither the one making the suggestion nor any other group member may offer any criticism or other discussion of the idea during the brainstorming session's idea-generation stage.
4. A group leader functions to steer the process back into the spontaneous flow of positive ideas if digression into criticism or discussion begins.
5. A recorder captures the ideas as they are presented.

Front 55

Brainwriting is used to get _______ to write down their ideas _______ before the group's ideas are compiled. The collective list that results is the culmination of every group member's _________. Once the composite list is formed, the entire group can ______ and ________ each of the ideas.

Back 55

- individuals
- independently
- individual creativity
- review
- critique

Front 56

An analytical method that is gaining widespread popularity for futuristic planning is the develpment of ______ or _______ scenarios. Several alternatives are developed, each one based on a _______. The primary advantage of this method is the ability of the manager to examine _______.

Back 56

- alternative
- contingent
- different set of assumptions
- a number of possibilities rather than selecting only one path to follow

Front 57

Computerized tools such as _________ make the use of alternative scenarios a relatively easy and commonplace process.

Back 57

spreadsheets

Front 58

The process of decision making is improved when the problem and possible alternative solutions are presented for ________. The test of logic requires that each alternative, although based on a different set of assumptions, be evaluated according to the _______. The _________ for each alternative must be reviewed as well.

Back 58

- evaluation
- same set of standards
- logical sequence

Front 59

Because the purpose of the decision-making process is aimed at achieving the objective, it is at the stage of ___________ that the objective must be made clear and unambiguous in order to derive clear standards for measuring ________.

Back 59

- evaluating alternatives
- alternatives

Front 60

The standards used for measuring alternatives, generally called _________, may be stated in ______ and/or ______ terms.

Back 60

- decision criteria
- quantitative
- qualitative

Front 61

Where a number of decision criteria must be met, it is usually necessary to ______ them to clarify the relative _______ of each.

Back 61

- prioritize
- significance

Front 62

The term ________ is used generally to mean data (characteristics) for a sample (a subset) of a population. The technical meaning of the data is related to ________.

Back 62

- statistics
- the problem being studied

Front 63

________ is a set of methods or techniques for collecting, organizing, and interpreting the data.

Back 63

Statistical analysis

Front 64

The way data are _________ can aid the reader to derive meanings from the data.

Back 64

displayed

Front 65

Data may be organized and presented in terms of two characteristics: the _______ or the ______ per time period.

Back 65

- most common plot
- total volume

Front 66

Data are organized into arrays by ________, _____, ______, or some other characteristics in a table.

Back 66

- chronology
- size
- location

Front 67

Statisticians have developed rules by which ________ and ________ about future occurrences can be drawn once a frequency distribution has been developed. Essentially, the rules are derived from ________ about what occurrences _______ would account for.

Back 67

- inferences
- predictions
- assumptions
- random chance

Front 68

Inferential statistics provide techniques for ________, or _______, that certain events will happen.

Back 68

- calculating the odds
- probabilities

Front 69

The results of a comparison of different alternatives can be shown in a _____ or ____. This arranges information so that comparisons of all ______ of a problem can be examined __________. The reliability of this strategy depends on the ______ of the values used and the ________ assigned to the variables identified.

Back 69

- payoff table
- matrix
- possible outcomes
- simultaneously
- accuracy
- probabilities

Front 70

________ includes a wide range of mathematical formulas and techniques for analyzing complex decision problems.

Back 70

Operations research (OR)

Front 71

Operations researchers develop ________ to represent each major factor in the situation, then solve the ________ according to the objective which has been established.

Back 71

- mathematical expressions
- resulting formula

Front 72

________ is used to find the best (or optimum) answer to situations where many known elements may be put together in different combinations that may yield different profits.

Back 72

Linear programming

Front 73

________ are those which cannot be measured directly in quantitative terms. Situations or problems can be described in terms of the _______ or ______ of the information one has or can get about the situation as well as the ____ to be taken when alternatives are considered.

Back 73

- Qualitative factors
- certainty
- uncertainty
- risk

Front 74

For the decision maker to be certain, ______ alternatives must be ______, _____ and ______ methods of comparing the effects of each alternative must be available, and all possible ________ must be known. ______ and _______ in decision making are simple in these circumstances.

Back 74

- all possible
- known
- direct
- predictable
- outcomes
- Analysis
- choice

Front 75

In the extreme _______ condition, we have little or no information about possible alternatives or outcomes

Back 75

uncertain

Front 76

More frequently, the decision maker has _____ knowledge about _____ alternatives but has little information about _______ or their ________.

Back 76

- some
- some
- outcomes
- likelihoods

Front 77

Where alternatives, the possible outcomes, and the probabilities of those outcomes occurring are known, the problem can be converted to one of _______ or _________.

Back 77

- "gambling"
- risk

Front 78

It is exactly in the condition of __________ that most significant decisions must be made. __________ factor analysis becomes doubly important in these conditions. _______ and ________ of persons who can affect the outcomes are important and can frequently be measured in some fashion.

Back 78

- uncertainty
- Qualitative
- Attitudes
- preferences

Front 79

A _________ is a powerful method of graphing complex decision problems, particularly those in which one is considering a ________ to be made across a _______.

Back 79

- decision tree
- sequence of decisions
- period of time

Front 80

The first decision commits one to follow A or B paths; following either has a different impact on the next decision's outcomes. These combined effects get too complex to visualize mentally, so decision trees are used to provide _______.

Back 80

systematic visualization

Front 81

The most common decision-making tree was developed by _____ and _______. Referred to as the _______, this model helps determine the optimal amount of subordinate participation desired in the decision-making process. It has been modified by ____ and ______.

Back 81

- Vroom
- Yetton
- Vroom model
- Vroom
- Jago

Front 82

The manager's judgment in making appropriate decisions can be improved through the use of _______. Such aids break problems into _____ parts and help the manager process ________ about the problem and about the decision aids being used to examine the problem.

Back 82

- computerized decision aids
- understandable
- additional information

Front 83

A _____________ is an interactive computer-based system that aids decision makers in solving problems that are not structured clearly.

Back 83

decision support system (DDS)

Front 84

DDS

Back 84

decision support system

Front 85

Three parts of a DDS that are most helpful to a manager in the decision-making process are:

Back 85

1. The use of a human-machine interface (a dialog)
2. decision aids (models)
3. Data provided by the manager (a database)

Front 86

Decision support systems provide help to manager in five ways:

Back 86

1. retrieving data items
2. obtaining summary information
3. estimating the consequences of specific decisions
4. proposing decisions
5. making routine decisions

Front 87

Since decisions in organizations almost always require the use of resources for implementation, the chosen alternative is performed by the managers who have _____________. The manager may choose to perform this function _______ or ______, but the final responsibility will be the _______.

Back 87

- authority over those resources
- alone
- through a committee
- manager's

Front 88

_________ is almost always needed in addition to the use of quantitative data in making a decision.

Back 88

Judgment

Front 89

In comparing alternatives, _________ of each alternative should be taken into account, along with the more obvious positive possible outcomes. Sometimes the alternative with the highest possible payoff also has the __________.

Back 89

- possible negative consequences
- highest possible risk of adverse consequences

Front 90

There is really no way to exclude ______ from decision making.

Back 90

personal values

Front 91

The more uncertain the decision situation, the more difficult it is for managers to _________________.

Back 91

avoid the temptation to follow the dictates of their personal agendas rather than to choose in favor of the organization's objectives

Front 92

Parties interested in the decision may be consulted prior to making the choice, ad the choice will be constrained to those alternative that are feasible in light of _______.

Back 92

the group's willingness to support them

Front 93

The decision maker may frankly acknowledge the power of influential organization members and include them in a ______, which makes the choice on a ________.

Back 93

- committee
- consensus basis

Front 94

______, ______, ________, _______ - all the typical techniques made familiar by governmental decision making - are involved in the process of making important decisions.

Back 94

- Compromise
- trading votes
- filibustering
- coalition-building

Front 95

Once a decision has been made, steps for appropriate ______ need to be developed.

Back 95

implementation

Front 96

The manager's responsibility in implementing the decision to solve an identified problem includes what 8 tasks.

Back 96

1. Acquiring resources needed for implementation
2. Allocating resources to individuals, departments, or other groups.
3. Establishing schedules and budgets for the implementation to take place
4. Assigning specific task responsibilities to individuals or groups
5. Identifying potential risks during the early stages of implementation
6. Developing detailed plans for dealing with any risks or uncertainties that may develop
7. Establishing procedures and schedules for receiving progress reports from individuals or groups involved
8. Preparing to correct the implementation process if additional problems arise

Front 97

A manager needs to take time to __________ the decision at any point during the _______ phase. A decision is no better than the actions taken to _______ that decision and make it a reality.

Back 97

- reexamine
- implementation
- implement

Front 98

Once the decision is implemented, information must be gathered on _______. Any actions taken to implement a decision need to be _________.

Back 98

- how well the changed process is working
- monitored closely

Front 99

Monitoring allows managers to examine the ______ and ____ environments carefully to determine what is happening as a result of the decision that has been made. _____, managers need to find out exactly what _________ have been doing and generally _________. _____, the organization needs to be aware of how ________ are reacting to the decision.

Back 99

- internal
- external
- Internally
- subordinates
- what the results of implementing the decision are
- Externally
- competing organizations

Front 100

If the decision appears to have been an appropriate one to make, the process can continue to the _________. If the decision seems to have been a poor one, the problem may need to be _________ and the _________ to the first step so that the ________ begins again. This process is also referred to as __________.

Back 100

- final outcome
- redefined
- process cycled back
- decision process
- evaluation of decision-making outcomes

Front 101

List 4 logical thinking patterns

Back 101

1. Inductive reasoning
2. Deductive reasoning
3. Comparison
4. Causation

Front 102

Logical reasoning results in patterns of thinking that add ______ by increasing the number of _______ available that may affect ______. Most people regard a logical mind as a _________.

Back 102

- value to information
- facts
- decisions
- positive attribute

Front 103

__________ first of all defines the problem and then moves to identify factors or variables inherent in the problems. In _________, thinking moves from specific to general, from known to unknown.

Back 103

- Inductive reasoning
- inductive reasoning

Front 104

In _______, though processes move from a general premise toward specific conclusion. The process moves from general to specific, from unknown to known, until _______.

Back 104

- deductive reasoning
- one or more specific conclusions can be drawn

Front 105

Similar objects or attributes can be _____ using a set of criteria established for the observations. The key is to use the ______ for _______ all objects or attributes being investigated. Otherwise, _____ results in the application of the criteria to the entire sample of objects or attributes.

Back 105

- compared
- same procedure
- comparing
- bias

Front 106

Perhaps the most difficult thought process is one that tries to establish _______ and ______. "If A occurs, then [something] happens to B." Specific facts about A and B are obtained through __________. The problem sometimes is to have ____ about the relationship of A and B for the _______ to be accurate.

Back 106

- cause
- effect
- inference
- enough facts
- inference

Front 107

List 5 traits of highly creative people

Back 107

1. More original in thought and ideas generated than less creative individuals
2. Willing to shift from one approach to another when trying to solve a problem
3. More flexible and less rigid with regard to time, resources, and effort devoted to the problem
4. More independent in their pursuit of solutions to a problem
5. More apt to disobey orders that make little or no sense to them

Front 108

Highly creative people are often _____ to manage because they _______ authority, are not ______ people, but also need little _________ and prefer tackling _______.

Back 108

- more difficult
- question
- "yes"
- supervision
- complex problems

Front 109

List 4 steps in the creative process in organizations

Back 109

1. Idea generation
2. Idea development or problem solving
3. Implementation of creative ideas
4. Monitor of innovation

Front 110

Innovation must be introduced ________, ___________, and for an __________.

Back 110

- on time
- within budget
- identified market

Front 111

___________ among individuals and groups involved in the implementation relates positively to the rate at which ________ may occur.

Back 111

- Frequent communication
- innovation change

Front 112

As with any other business decision, _________ of the implementation of a creative idea is absolutely necessary to ensure that the _________ are met.

Back 112

- close monitoring
- goals of the organization

Front 113

Monitoring enables the organization to examine the results to see if ________ is needed, the number of units being produced needs to be _________, a process needs to be _________, or whether the new idea will generate _________.

Back 113

- further research
- increased
- revised
- sufficient profit

Front 114

The creative decision-making process in organizations requires a more _______ atmosphere to encourage the exploration of _______ and _______ of doing things. Managers have the capability of either _________ the entrepreneurial spirit among employees through ________ creative efforts or _______ the innovative efforts of subordinates who have creative ideas that would benefit the organization greatly.

Back 114

- permissive
- new ideas
- new ways
- fostering
- encouraging
- stifling