Decision Basics
What is the process of choosing from among several alternatives called?
Decision making
Which decision-making approach uses a systematic, step-by-step process and aims for logical choices?
Rational decision-making approach
What another subject teacher tought us?
Principles of Marketing
A manager makes a decision based on a gut feeling without conscious analysis. What is this called?
Intuition
What group idea-generation technique encourages producing many possible solutions before evaluating them?
Brainstorming
A store manager follows a written rule for routine refunds. Is this a programmed or nonprogrammed decision?
Programmed decision
A manager reviews options only until finding one that meets the minimum requirements. What is this called?
Satisficing
A CEO keeps investing in a failing product even after negative evidence appears. What behavior does this illustrate?
Escalation of commitment
After a group discussion, members hold more extreme views than before. What is this called?
Group polarization
A manager knows the possible outcomes and can estimate their probabilities, but cannot predict which one will happen. Which condition is this?
Risk
Why does a manager consider only a meaningful subset of all the available information and alternatives? Name the concept.
Bounded rationality
Mr. Bhatti earned his MBA in Karachi. Which country is Karachi in?
An executive is more motivated to avoid losing $20,000 than to seek an equivalent $20,000 gain. Which theory helps explain this?
Prospect theory
A very cohesive team ignores warnings because everyone wants agreement. Which group decision-making problem is occurring?
Groupthink
A startup enters a completely new market. There is not enough information to estimate the probabilities of success or failure. Which condition applies?
Uncertainty
A company writes an alternative action plan in case its main launch strategy is disrupted. What is this backup plan called?
Contingency plan
How many years has Mr. Bhatti been teaching ?
5
Two managers have the same information, but one is much more willing to gamble on a risky choice. Which individual trait differs?
Risk propensity
A company gathers expert judgments through several rounds of structured consultation to develop a forecast. Which technique is this?
Delphi technique
A CEO faces a one-time strategic decision with no existing rule and too little information to estimate outcome probabilities. Name BOTH its decision type and condition.
Nonprogrammed decision + Uncertainty
Name BOTH concepts: (1) choosing the first acceptable solution; (2) accepting a weaker outcome in one area to avoid harm elsewhere in the organization.
(1) Satisficing; (2) Suboptimizing
What was the first subjects teacher tought?
Logistics and Transportation Management
A manager first doubts a choice AFTER making it, then continues funding it despite evidence of failure. Identify BOTH decision-making phenomena.
Post-decision dissonance + Escalation of commitment
Your team is showing groupthink. Name TWO specific actions from the lecture that could reduce it
Any two: appoint a devil's advocate; stay impartial as leader; invite outside experts; welcome dissent; use independent groups