Management Exam Ii Ch. 7

Front 1

Decision
pg. 196

Back 1

a choice made from among available alternatives

Front 2

Decision making
pg. 196

Back 2

is the process of identifying and choosing alternative courses of action.

Front 3

Rational model of decision making
pg. 197

Back 3

also called the "classical model", explains how managers should make decisions; it assumes managers will make logical decisions that will be the optimum in furthering the organizations best interests.

Front 4

four stages of rational decision making

Back 4

1.) identify the problem or opportunity
2.) think up alternative solutions
3.) evaluate alternatives and select a solution
4.) implement and evaluate the solution chosen

Front 5

Problems
pg. 197

Back 5

difficulties that inhibit the achievement of goals.
example: customer complaints, supplier breakdowns, staff turnover, sales shortfalls, and competitor innovations.

Front 6

Opportunities
pg. 197

Back 6

situations that present possibilities for exceeding existing goals.

Front 7

Diagnosis
pg. 198

Back 7

analyzing the underlying causes
-"how to change conditions from the present to the desirable."

Front 8

for successful implementation you need what 2 things?

Back 8

1.) plan carefully
2.) be sensitive to those affected

Front 9

Nonrational models of decision making
pg. 201

Back 9

explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.

Front 10

3 nonrational models

Back 10

1.) satisficing
2.) incremental
3.) intuition

Front 11

Satisficing model
pg. 202

Back 11

Managers seek alternatives until they find one that is satisfactory, not optimal

Front 12

Bounded rationality
pg. 201

Back 12

the concept suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, money, and their cognitive capacity

Front 13

Incremental model
pg. 202

Back 13

managers take small, short term steps to alleviate a problem.

Front 14

Intuition model
pg. 203

Back 14

"going with your gut" -making a choice without the use of conscious thought or logical inference.

Front 15

Business analytics
pg. 207

Back 15

the term used for sophisticated forms of business data analysis.
example: portfolio analysis, in which an investment adviser evaluates the risks of various stocks.

Front 16

Predictive modeling
pg. 208

Back 16

a data-mining technique used to predict future behavior and anticipate the consequences of change.

Front 17

Risk propensity
pg. 209

Back 17

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

Front 18

Decision making style
pg. 209

Back 18

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

Front 19

four styles of decision making

Back 19

1.) directive
2.) analytical
3.) conceptual
4.) behavioral

Front 20

Ethics officer
pg. 212

Back 20

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

Front 21

Decision tree
pg. 213

Back 21

a graph of decisions and their possible consequences; it is used to create a plan to reach a goal.

Front 22

Relaxed avoidance
pg. 215

Back 22

"Theres no point in doing anything; nothing bads going to happen"
a manager decides to take no action in the belief that there will be no great negative consequences.

Front 23

Relaxed change
pg. 216

Back 23

"Why no just take the easiest way out?"
a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk.
-form of satisficing

Front 24

Defensive avoidance
pg. 216

Back 24

"Theres no reason for me to explore other solution alternatives"
a manager cant find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk of any negative consequences.
-occurs in firms with high turnover

Front 25

Panic
pg. 216

Back 25

"This is so stressful, ive got to do somehting-anything-to get rid of the problem!"
a manager is so frantic to get rid of the problem that he cant deal with the situation realistically.

Front 26

Deciding to decide
pg. 216

Back 26

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

Front 27

3 ways to help you decide whether to decide are to evaluate the following

Back 27

1.) importance
2.) credibility
3.) urgency

Front 28

Heuristics
pg. 217

Back 28

strategies that simplify the process of making decisions.

Front 29

Availability bias
pg. 218

Back 29

managers use information readily available from memory to make judgments.
example: more coverage given to aids or breast cancer than to heart disease, leading ppl to think they are bigger killers.

Front 30

confirmation bias
pg. 218

Back 30

when people seek information to support their point of view and discount data that do not.

Front 31

Representativeness bias
pg. 218

Back 31

the tendency to generalize from a small sample or a single event.
example: just bc you hired a great sales rep from a particular university doesnt mean the next will be great.

Front 32

Anchoring and adjustment bias
pg. 218

Back 32

the tendency to make decisions based on an initial figure.

Front 33

Escalation of commitment bias
pg. 219

Back 33

whereby decision makers increase their commitment to a project despite negative information about it.
example: War

Front 34

Groupthink
pg. 221

Back 34

occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation.

Front 35

Goal displacement
pg. 221

Back 35

occurs when the primary goal is subsumed by a secondary goal.

Front 36

What managers need to know about groups and decision making.

Back 36

1.) they are less efficient
2.) their size affects decision quality
3.) they may be too confident
4.) knowledge counts.

Front 37

Participative management (PM)
pg. 222

Back 37

the process of involving employees in (a) setting goals, (b) making decisions, (c) solving problems and (d) making changes in the organization

Front 38

Consensus
pg. 222

Back 38

occurs when members are able to express their opinions and reach agreement to support the final decision.

Front 39

Brainstorming
pg. 223

Back 39

a technique used to help groups generate multiple ideas and alternatives for solving problems.

Front 40

Electronic brainstorming
pg. 224

Back 40

sometimes called "brainwriting", in which members of a group come together over a computer network to generate ideas and alternatives.

Front 41

Delphi technique
pg. 224

Back 41

is a group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect averaged to achieve a consensus of expert opinion.
-useful in face to face discussions are impractical.