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MANA 3318 Ch. 10
Test #3 fall 2010
27
Business
Undergraduate 1
11/15/2010

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Term
What is a programmed decision.
Definition
A simple, routine matter for which a manager has an established decision rule.
Term
What are the characteristics of a non-programmed decision.
Definition
Unique, unstructured situation and requires considerable judgment.
Term
Initial and final step in the decision making process is:
Definition
Initial Step - Recognize the problem and the need for a decision
Final Step - Follow up
Term
The rational model of decision is defined as:
Definition
A logical, step-by-step approach to decision making, with a thorough analysis of alternatives and their consequences
Term
The decision maker strives to do what in the rational model.
Definition
Strives to optimize, that is, to select the best possible alternative.
Term
Under the bounded rationality model of problem solving and decision making how do manager make decisions.
Definition
1. Managers select the first alternative that is satisfactory
2. Managers recognize that their conception of the world is simple.
3. Managers are comfortable making decisions without determining all the alternatives
4. Managers make decisions by rules of thumb or heuristics.
Term
An application question of bounded rationality model.
Definition
Does the bounded rationality model portray more realistically the managerial decision process?
Term
Heuristics is defined as:
Definition
Shortcuts in decision making that save mental activity.
Term
The three reasons why managers may hang on to a losing course of action or escalate their commitment?
Definition
Optimism and control. Some people are overly optimistic and overstate the likelihood that positive things will happen to them.
Other people operate under an illusion of control - that they have special skills to control the future that other people don’t have.
Some individuals "throw good money after bad" They think "well I've invested this much. . . What's a few dollars more"
Term
What are the explanations for escalation of commitment. Failure to notice a course of action is wrong is defined as:
Definition
Escalation of commitment
Term
Escalation of commitment
Definition
the tendency to continue to support a failing course of action.
Term
Research indicates that women are:
Definition
More averse to risk taking than men and that older, more experienced managers are more risk averse than younger managers
Term
Cognitive style
Definition
an individual's preference for gathering information and evaluating alternatives.
Term
The right side of the brain is best used for which type of activity or decision?
Definition
The right side is the center for creative functions.
Intuition - a fast, positive force in decision making that is utilized at a level below consciousness and involves learned patterns of information.
Term
The research by Henry Mitzberg regarding intuition and managerial roles suggest that
Definition
In many cases managers do not appear to use a systematic, step-by-step approach to decision making. Rather managers make judgments based on "hunches".
Term
Agor, a researcher on intuition, suggests techniques used by managers to tap into their intuition:
Definition
Agor suggests relaxation techniques, using images to guide the mind, and taking creative pauses before making a decision.
Term
The stage of creativity where one engages in other activities while the mind considers the problem is:
Definition
Incubation
Term
Ways to encourage employee creativity are:
Definition
Companies can encourage creativity by exposing employees to new ideas through job rotation.
Term
Research has indicated that creative performance is highest when:
Definition
There is a match, or fit, between the individual and organizational influences on creativity.
Term
What are Mental Locks.
Definition
Keeps us from generating creative alternatives to a decision or problem
Term
Responsive creativity is defined as:
Definition
Responding to a problem that is presented to you by others because it is part of your job.
Term
A shortcoming or liability of the group process in decision making is:
Definition
Groupthink - a deterioration of mental efficiency, reality testing, and moral judgment resulting from pressures within the group.
Term
Groupthink
Definition
a deterioration of mental efficiency, reality testing, and moral judgment resulting from pressures within the group.
Term
Group polarization results in:
Definition
The tendency for group discussion to produce shifts toward more extreme attitudes among members
Term
Dialectical injury
Definition
A debate between two opposing sets of recommendations
Term
When to apply dialectical injury?
Definition
Important to guard against a win-lose attitude and to concentrate on reaching the most effective solution for all concerned.
Term
What are characteristic of quality teams?
Definition
Quality teams are generated from the top down and are empowered to act on their own recommendations.
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