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Exam 11: Decision Making and Creativity

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Question 21

Multiple Choice

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Norm and his creative team need to present an idea for marketing a new detergent to the head of their advertising agency.Diane,a member of the team,always resented Norm's promotion to team leader.She objects to every idea Norm suggests and spends the entire meeting selling her approach.Diane hopes that this will be a chance to show her skills to the head of the agency.This is known as

A) goal displacement.
B) social pressure.
C) groupthink.
D) role modeling.
E) decision rationale.

F) A) and D)
G) A) and E)

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Question 22

Multiple Choice

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Which of the following statements is ?

A) Evidence-based decision making should never be used in making decisions.
B) Evidence-based decision making should never be used in informing decisions.
C) Evidence-based decision making should never be used in supporting decisions.
D) Evidence-based decision making should always be used in supporting decisions.
E) Evidence-based decision making should sometimes be used in supporting decisions.

F) A) and B)
G) A) and C)

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Question 23

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The rational model of decision making explains how managers should make decisions.It assumes that managers are completely objective and possess all information for their decisions.In this model,decisions thus demonstrate excellent logic and promote the organization's best interests.

In what types of situations should a manager use rational and nonrational models of decision making? Explain,using specific examples.

Individuals who are directive in decision-making style

Individuals who are conceptual in decision-making style

One of the benefits of using intuition to make decisions is that it can

Rachel bought a table at a thrift store for 0.She had a feeling it might be valuable.When cleaned up and assessed,the table turned out to be an antique from the 1700s,worth $3,250.What was Rachel using to make her decision?

In a complex decision context,there is one right answer,but many unknowns obscure cause-and-effect relationships.In this kind of situation,the most effective decision making method is intuition.

The forms of intuition are

Despite the information available,Becky consistently uses her cell phone to text when driving down the highway.This is an example of ______ decision making.

_________ bias is especially evident in entrepreneurs who are deciding to start and sustain new ventures.

What is "groupthink"? What causes it? How would a manager be able to recognize that groupthink is occurring? Now describe a situation in which you experienced or viewed groupthink.

Norwood,South Carolina,had been a thriving community thanks to the Herndon Furniture Plant which provided jobs for almost half of the residents.To remain competitive,the plant eliminated about half of their furniture lines,outsourcing them to China.Norwood suffered a serious economic downturn. The local congressman set up a committee to try to address economic issues in the town and surrounding areas.One of the recommendations was to create an outdoor sports and entertainment destination by the Tentee River that runs through town.The state provided some funds for a recreation analyst to create a plan.This plan involved a study of the river,plans for overflow water in case of flooding,and a four-year program to build facilities. The plan was accepted by the committee,but to take full advantage of state funds,donations,and tax credits,the River Center had to be operational within two years.The committee was led by a local business person who was aggressive,overly optimistic,and more conceptual in his approach toward decision making.He believed that everything would work out just fine,and he convinced to committee to move forward without conducting the full range of studies.The committee was most concerned about starting the project as it would bring jobs to the areas and less concerned about doing feasibility studies.Despite some controversy,certain aspects,like the overflow plan,were put on hold until after the facility was operational.It's not clear that the committee had completed consensus about starting the work,but the leader pushed it through just the same. Three months before the River Center was to open,the river flooded.All of the docks and buildings were destroyed.Norwood was worse off than when the plan started. Apply the 3-Step Problem-Solving Approach and the Organizing Framework to suggest potential solutions for this problem. Apply the 3-Step Problem-Solving Approach to OB

We all use shortcuts or ________ when making decisions.

Oliver was known for his innovative promotional ideas.His boss loved listening to his presentations and trusted his ideas.Though Oliver's ideas started to get monotonous after a while,his boss took only his ideas and did not accept ideas from others.Which of the following was Oliver's boss using?

Describe the escalation of commitment bias,and give an example.What can managers do to reduce this bias?

Tucker Automotive enters into a $750 million dollar partnership with VQI Research.Management has decided that VQI could help them be on the cutting edge of self-driving cars.Tucker did no research and has no idea about the potential market or possible government and safety regulations that might be imposed.But Tucker knows that the personal transportation environment is changing quickly. What type of decision-making model does this reflect? Describe the process in detail as well as any potential constraints.

A person with a low tolerance for ambiguity who is oriented toward people and social concerns when making a decision portrays which style?

Marketing firms strive to ensure that people are aware of their products because people assume that if they have heard about certain products,the products will work well.Which of the following biases are the marketing firms trying to take advantage of?