Chapter 7

Front 1

Term used for sophisticated forms of business data analysis, such as portfolio analysis or time series forecast.

Back 1

analytics
(business analytics)

Front 2

The tendency to make decisions based on an initial figure.

Back 2

anchoring and adjustment bias

Front 3

Tendency of managers to use information readily available from memory to make judgments; they tend to give more weight to recent events.

Back 3

availability bias

Front 4

One type of non-rational decision making; the ability of decision makers to be rational is limited by numerous constraints

Back 4

bounded rationality

Front 5

Technique used to help groups generate multiple ideas and alternatives for solving problems; individuals in a group meet and review a problem to be solved, then silently generate ideas, which are collected and later analyzed.

Back 5

brainstorming

Front 6

Biased way of thinking in which people seek out information to support their point of view and discount data that does not.

Back 6

confirmation bias

Front 7

General agreement, group solidarity

Back 7

consensus

Front 8

A manager agrees that he must decide what to do about a problem or opportunity and take effective decision-making steps.

Back 8

deciding to decide

Front 9

A choice made from among available alternatives.

Back 9

decision

Front 10

The process of identifying and choosing alternative courses of action.

Back 10

decision making

Front 11

A style that reflects the combination of how an individual perceives and responds to information.

Back 11

decision making style

Front 12

Graph of decisions and their possible consequences, used to create a plan to reach a goal.

Back 12

decision tree

Front 13

When a manager cannot find a good solution and follows by procrastinating, passing the buck, or denying the risk of any negative consequences.

Back 13

defensive avoidance

Front 14

Analysis of underlying causes.

Back 14

diagnosis

Front 15

Technique in which members of a group come together over a computer network to generate ideas and alternatives.

Back 15

electronic brainstorming
(brainwriting)

Front 16

When decision makers increase their commitment to a project despite negative information about it.

Back 16

escalation of commitment bias

Front 17

A person trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.

Back 17

ethics officer

Front 18

The primary goal is subsumed to a secondary goal.

Back 18

goal displacement

Front 19

A cohesive group's blind unwillingness to consider alternatives. This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation.

Back 19

groupthink

Front 20

Strategies that simplify the process of making decisions.

Back 20

heuristics

Front 21

Making a choice without the use of conscious thought or logical inference.

Back 21

intuition

Front 22

One type of nonrational model of decision making; managers take small, short-term steps to alleviate a problem.

Back 22

incremental model

Front 23

Model of decision making style that explains how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum decisions.

Back 23

nonrational models of decision making

Front 24

Situations that present possibilities for exceeding existing goals.

Back 24

opportunities

Front 25

Situation in which a manager reacts frantically to get rid of a problem that he or she cannot deal with realistically.

Back 25

panic

Front 26

Process of involving employees in setting goals, making decisions, solving problems, and making changes in the organization.

Back 26

participative management (PM)

Front 27

Data mining technique used to predict future behavior and anticipate the consequences of change.

Back 27

predictive modeling

Front 28

Difficulties that inhibit the achievement of goals.

Back 28

problems

Front 29

Style of decision making that explains how managers should make decisions; it assumes that managers will make logical decisions that will be the optimum in furthering the organization's best interests.

Back 29

rational model of decision making

Front 30

The situation in which a manager decides to take no action in the belief that there will be no great negative consequences.

Back 30

relaxed avoidance

Front 31

The situation in which a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk.

Back 31

relaxed change

Front 32

The tendency to generalize from a small sample or a single event.

Back 32

representativeness bias

Front 33

Willingness to gamble or to undertake risk for the possibility of gaining an increased payoff.

Back 33

risk propensity

Front 34

One type of nonrational decision-making model; managers seek alternatives until they find one that is satisfactory, not optimal.

Back 34

satisficing model

Front 35

Biased way of thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

Back 35

sunk cost bias