Chapter 8

Question 1

Decision Making

Answer 1

The process of choosing from among several alternatives

Question 2

Problem Solving

Answer 2

Finding the answer to a question; it is also a form of decision making in which the issue is unique and alternatives must be developed and evaluated without the aid of a programmed decision rule

Question 3

Programmed Decision

Answer 3

A decision that recurs often enough for a decision rule to be developed

Question 4

Decision Rule

Answer 4

A statement that tells a decision make which alternative to choose based on the characteristics of the decision situation

Question 5

Non-programmed Decision

Answer 5

A decision that recurs infrequently and for which there is no previously established decision rule

Question 6

Condition of Certainty

Answer 6

Under this condition, the manager knows what the outcomes of each alternative of a given action will be but has enough information to estimate the probabilities of various outcomes

Question 7

Condition of Risk

Answer 7

Under this condition, the decision maker can’t know with certainty what the outcome of a given action will be but has enough information to estimate the probabilities of various outcomes

Question 8

Condition of Uncertainty

Answer 8

Under this condition, the decision maker lacks enough information to estimate the probability of possible outcomes

Question 9

Rational Decision-Making Approach

Answer 9

A systematic, step-by-step process for making decisions

Question 10

Contingency Plans

Answer 10

Alternative actions to take if the primary course of action is unexpectedly disrupted or rendered inappropriate

Question 11

Cognitive Dissonance

Answer 11

Doubt about a choice that has already been made

Question 12

Evidence-Based Management (EBM)

Answer 12

The commitment to identify and utilize the best theory and data available to make decisions

Question 13

Administrative Model

Answer 13

This model of decision making argues that managers use bounded rationality, rules of thumb, sub-optimizing, and satisficing in making decisions

Question 14

Bounded Rationality

Answer 14

The idea that decision makers cannot deal with information about all the aspects and alternatives pertaining to a problem and therefore choose to tackle some meaningful subset of it

Question 15

Suboptimizing

Answer 15

Knowingly accepting less than the best possible outcome to avoid unintended negative effects on other aspects of the organization

Question 16

Satisficing

Answer 16

Examining alternatives only until a solution that meets minimal requirements is found

Question 17

Coalition

Answer 17

An informal alliance of individuals or groups formed to achieve a common goal

Question 18

Intuition

Answer 18

Innate belief about something without conscious consideration

Question 19

Escalation of Commitment

Answer 19

Occurs when a decision maker stays with a decision even when it appears to be wrong

Question 20

Risk Propensity

Answer 20

The extent to which a decision maker is willing to gamble in making a decision

Question 21

Ethics

Answer 21

A person’s beliefs about what constitutes right and wrong behavior

Question 22

Prospect Theory

Answer 22

Theory that argues what when people make decisions under a condition of risk they are more motivated to avoid losses than they are to seek gains

Question 23

IIntegrated Approach

Answer 23

This approach to decision making combines the steps of the rational approach with the conditions in the behavioral approach to create a more realistic approach for making decisions in organizations

Question 24

Creativity

Answer 24

A person’s ability to generate new ideas or to conceive of new perspectives on existing ideas

Question 25

Preparation

Answer 25

Usually the first stage in the creative process, includes education and formal training

Question 26

Incubation

Answer 26

The stage of less intense conscious concentration during which a creative person lets the knowledge and ideas acquired during preparation mature and develop

Question 27

Insight

Answer 27

The stage in the creative process in which all the scattered thoughts and ideas that were maturing during incubation come together to produce a breakthrough

Question 28

Verification

Answer 28

The final stage of the creative process, the validity or truthfulness of the insight is determined