Question 1

The best time to use a group is with complex decisions is when the group is heterogeneous and has a complementary mix of skills.

Accepted Answer

A group with diverse skills and perspectives can bring more ideas to the table and provide a more comprehensive approach to complex decisions. However, if the group is too homogeneous, it can lead to groupthink and a lack of innovative solutions.

Question 2

If Danny Poe is conducting a group interview for a management position at his firm, SencorTeck, and he chooses a candidate within the first 5 minutes of the interview, then Danny could be using an the explicit favorite option.

Accepted Answer

Choosing a candidate within the first 5 minutes likely indicates an implicit bias or a snap judgment rather than an explicit favorite option, which would involve a deliberate, pre-determined preference.

Question 3

Table 10.4
B.F.E., Inc. has to assign several problems to different groups. In the first case, the group consists of a number of experts who have offices across the country and have difficulty getting together. The problem they are working on is a problem that needs to be solved over the next six to nine months. In the second case, management is concerned that people might be intimidated by their leaders. The team is located in the same building as the corporate headquarters. Genuine consensus is important, and a trained facilitator is available to lead the group. In the third and final situation, management has observed that the people selected to participate seem hesitant to do so. Plus, the lengthy nature of the work to be done means new people will need to be added to the group periodically. Time is not an issue.
-Refer to Table 10.4. The best problem-solving technique in the third situation would be:

Accepted Answer

The stepladder technique is best suited for the third situation because it allows for the gradual integration of new members into an existing group, which is ideal given the need to periodically add new people to the group. This technique also encourages participation from all members, which can help overcome the hesitancy observed by management.

Question 4

Decision makers who use as much data as possible in considering complex solutions based on ambiguous information are using a directive decision-making style.

Accepted Answer

A directive decision-making style is characterized by quick, efficient, and logical decisions, often with a focus on short-term results and not necessarily involving extensive data analysis or consideration of complex solutions based on ambiguous information.

Question 5

Defensive avoidance is the individual decision error of sticking to the very first idea that comes up in the process of making a decision.

Accepted Answer

Defensive avoidance is actually the individual decision error of avoiding or rejecting ideas, options or alternatives that are different from the initial idea or approach. It is also known as the "sunk cost fallacy".

Question 6

Individuals outperform groups on creative tasks and when the tasks are poorly structured.

Accepted Answer

Research has shown that individuals tend to perform better than groups when it comes to creative tasks because individual brainstorming allows for more diverse and original ideas. Additionally, when the task is poorly structured, groups may struggle to find a clear direction or approach, while individuals can use their own intuition and creativity to come up with unique solutions.

Question 7

Breaking a group into subgroups and promoting open inquiry in decision-making are ways to avoid groupthink.

Accepted Answer

Breaking a group into subgroups and promoting open inquiry are strategies that are known to prevent groupthink, where individuals within a group conform to the same opinion or mindset without considering alternative viewpoints. These strategies encourage diversity of thought and keep group members from feeling pressured to conform to a dominant opinion or leader.

Question 8

A normative or prescriptive approach is one that describes how decision makers ideally ought to behave so as to make the best possible decisions.

Accepted Answer

A normative approach establishes norms or standards for ideal behavior, whereas a descriptive approach describes how decision makers actually behave.

Question 9

The risk element in decision-making is the probability that the desired outcome will result from the decision.

Accepted Answer

The risk element in decision-making involves assessing the likelihood that a particular decision will lead to the desired outcome, which is essentially the probability of success or failure.

Question 10

Programmed decisions are routine decisions that are made by lower personnel.

Accepted Answer

Programmed decisions are pre-planned decisions that are made in routine situations by lower-level personnel without the need to consult with higher authorities. They are standardized and can be automated based on predefined rules and procedures.

Question 11

The administrative model of decision-making is fundamentally an intuitive process.

Accepted Answer

The administrative model of decision-making, also known as the bounded rationality model, emphasizes a more realistic approach where decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. It contrasts with an intuitive process by relying on a systematic analysis of available information and constraints.

Question 12

Nancy is in the process of deciding which markets her company should pursue in the next five years. Nancy is making a nonprogrammed strategic decision.

Accepted Answer

A nonprogrammed decision is a unique and complex decision that requires a custom solution to a specific problem or situation. In this case, Nancy is deciding which markets to pursue, which is a nonprogrammed decision as it requires a custom solution based on multiple variables such as market trends, competition, and consumer behavior.

Question 13

In the rational-economic decision-making model, the decision maker makes a decision as soon as possible on as little information as possible.

Accepted Answer

In the rational-economic decision-making model, the decision maker is expected to gather all relevant information and weigh the pros and cons of various options before making a decision. This model emphasizes logical and objective decision-making based on complete information, rather than impulsive or intuitive decisions based on limited information.

Question 14

Whether groups perform better than individuals depends on the nature of the task performed and the expertise of the people involved.

Accepted Answer

There are certain tasks that require teamwork and collaboration to achieve success, whereas other tasks may be better suited for individual work. Additionally, if the individuals in a group possess diverse expertise and skills, the group may outperform individuals working alone. However, if the individuals in a group lack the necessary skills or have conflicting personalities, it may harm overall performance. Therefore, the assertion that the performance of groups compared to individuals depends on the nature of the task and expertise level of the people involved is true.

Question 15

In rational decision-making, a person seeks a prescriptive solution to a problem.

Accepted Answer

Rational decision-making involves identifying the problem, gathering information, identifying alternatives, evaluating those alternatives, and making a choice based on the most optimal or rational solution.

Question 16

Some techniques that can be used in making decisions in emergencies are to recognize your prime objectives, rely on experts, and encourage groupthink.

Accepted Answer

Encouraging groupthink can actually be detrimental to effective decision-making in emergencies, as it can stifle dissenting opinions and lead to a flawed consensus. Instead, it's important to encourage open communication and consider multiple perspectives before making a decision. Additionally, recognizing prime objectives and relying on experts are both effective techniques for making quick and effective decisions in emergency situations.

Question 17

The rational-economic model exemplifies how decision makers actually behave in most circumstances.

Accepted Answer

The rational-economic model assumes that decision makers always make rational decisions based on perfect information, which is not always the case in reality. Therefore, the model does not necessarily exemplify how decision makers actually behave in most circumstances.

Question 18

If Melba is more influenced by negative information than by positive information in her decision-making, then she is experiencing the attribute framing effect.

Accepted Answer

Melba is experiencing the negativity bias, not the attribute framing effect. The negativity bias refers to the tendency to give more weight to negative information than positive information in decision-making processes. The attribute framing effect involves how the same information is perceived differently depending on how it is presented (e.g., 90% fat-free vs. 10% fat).

Question 19

Escalation of commitment involves selecting one's preferred decision alternative before all options have been considered.

Accepted Answer

Escalation of commitment refers to the phenomenon where individuals or organizations continue to invest time, money, or effort into a failing decision, project, or course of action, even when it becomes clear that persisting with the decision is not beneficial. It does not relate to selecting a preferred decision alternative before all options are considered; that would more accurately describe a bias in decision-making processes such as confirmation bias or premature closure.

Question 20

The tendency for people to make decisions based on how the problem is presented is the framing effect.

Accepted Answer

The framing effect refers to the way that a problem or decision is presented, and how that presentation can influence the way that people respond or make choices. By framing things in different ways, or highlighting certain aspects of a decision over others, it is possible to change the way that people interpret the information and the conclusions that they reach. This phenomenon has been well-documented in social psychology and behavioral economics.

Quiz 10: Decisions Making in Organizations