Make the Call
A theater automatically refunds tickets whenever it cancels a show. This type of decision follows an established procedure and is called...
programmed decision
An owner refuses to cancel an unsuccessful subscription service, saying, “We’ve already put $40,000 into it!” This bias is influencing the decision.
escalation of commitment (aka sunken cost fallacy)
A cashier now also stocks shelves and prepares online orders, but still needs approval for every decision. This job design change has occurred.
job enlargement
A bakery has loyal customers and excellent reviews, but its cramped kitchen limits production. In SWOT, the kitchen belongs in this category.
Weakness
Every marketing employee reports through marketing, and every accountant reports through accounting, regardless of which products they support. This is the company’s structure.
An experienced event manager senses that an entrance will become overcrowded before checking the attendance figures. This guides her initial judgment.
intuition
A boutique sells out of team-colored shirts on homecoming weekend. The owner assumes they’ll sell just as well year-round and places a huge order. This bias shapes her forecast.
representativeness bias
A supervisor lets experienced employees assign their own work and resolve routine customer problems. This job design change has occurred.
job enrichment
A streaming service’s new features are quickly copied by rivals, forcing it to keep finding ways to stand out. This intense, ongoing competition describes its market.
hypercompetition
A company gives its European, Asian, and North American divisions their own marketing, finance, and operations teams. This is its type of divisional structure.
geographic
A shop needs a delivery service by Monday. The owner chooses the first company that meets her budget and delivery requirements, then stops searching. This is known as
satisficing
Before approving a four-day workweek, a manager assigns someone to investigate why it might fail, even though that employee supports it. This is the technique being used.
devil's advocacy
A cabinetmaker switches from installing handles all day to building each cabinet from start to finish. This job characteristic increases.
task identity
Commuters start taking the train instead of paying to park downtown. In Porter’s model, the parking garages face pressure from these alternatives.
subsitutes
An engineer’s department manager assigns technical training, while her project manager sets deadlines for a new product. She reports to both because the company uses this structure.
matrix
Past records let a florist reasonably estimate a 20% chance of running out of roses. This decision condition involves estimated probabilities known as
risk
A manager has access to every applicant’s résumé, interview, and work sample. Still, she cannot mentally weigh every detail of all 300 applicants. This limits her decision making.
bounded rationality
A graphic designer’s manager specifies the deadline and required result, then lets her choose when and how to complete the work. This job characteristic is strong.
autonomy
A restaurant changes its menu and advertising for each country it enters, even though doing so increases costs. This is its international strategy.
multidomestic
Store managers must get headquarters’ approval even for small local promotions. Important decision authority remains concentrated through this arrangement.
centralization
Customers call a store “too expensive.” One manager wants lower prices; another thinks customers don’t understand the products’ value. Their different interpretations illustrate this.
ambiguity
A team’s loudest member usually gets his way. The manager introduces a process that begins with silent idea writing and ends with private rankings. This technique gives everyone’s ideas a chance.
nominal group technique
A hospital invites its cleaning staff to hear how their work helps prevent patient infections. The hospital is helping employees recognize this job characteristic.
task significance
A film studio’s movies generate demand for its theme park attractions, while the attractions renew interest in its movies. This benefit comes from the businesses working together.
synergy
A company replaces temporary project assignments with permanent teams of engineers, marketers, and finance employees. Each employee now reports only through the product team manager. This is the new structure.
product team structure