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In the confirmation bias, the decision maker tends to base decisions on information that is readily available in memory.

A) True
B) False

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Analyze the advantages and disadvantages of group decision making. For what types of decision should group decision making be used?

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The advantages to using groups include: (1) greater pool of knowledge, (2) different approaches to a problem, (3) greater commitment to a decision, (4) better understanding of decision rationale, and (5) more visible role modeling. The disadvantages to using groups include: (1) social pressure, (2) a few people dominate, (3) goal displacement, and (4) groupthink. You should use a contingency approach in deciding whether or not to include groups in the decision-making process. If the decision occurs frequently and is of a routine nature use groups because they tend to produce more consistent decisions than do individuals. Given time constraints, let the most competent individual rather than a group, make the decision. In the face of environmental threats such as time pressure and potential serious effects of a decision, groups use less information and fewer communication channels. This increases the probability of a bad decision. With complex tasks, managers should devise mechanisms to enhance communication effectiveness. The quality of communication strongly affects a group's productivity.

In informing a decision,


A) Evidence forms the basis of the decision.
B) Evidence is one of several inputs to the decision process.
C) Evidence is created to support a decision using other inputs.
D) Evidence should not be used.
E) Only quantitative evidence is used.

F) D) and E)
G) B) and D)

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B

Brainsourcing is a common technique used by individuals and groups to generate potential solutions.

A) True
B) False

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The final stage of the creative performance behavior process is:


A) Problem formulation
B) Problem definition
C) Preparation/information gathering
D) Idea generation
E) Idea evaluation/validation

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

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E

The dimensions that compose a person's decision-making style are:


A) Extraversion and agreeableness
B) Value orientation and tolerance for ambiguity
C) Locus of control and conscientiousness
D) Emotionality and individualism
E) Intuition and emotional intelligence

F) B) and C)
G) D) and E)

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Creativity involves a convergence between tacit and explicit knowledge.

A) True
B) False

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The rational model of decision making explains how managers should make decisions.

A) True
B) False

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__________ and ________ drive creative performance behaviors.


A) Task; person focus
B) Tolerance for ambiguity; locus of control
C) Heuristics; biases
D) Alternatives; solutions
E) Person factors; environmental characteristics

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

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In evaluating alternatives and selecting a solution, managers should evaluate the legality and efficiency of potential solutions and conduct a cost-benefit analysis.

A) True
B) False

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The tendency to experience groupthink decreases as a group becomes more cohesive.

A) True
B) False

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Information that can easily be put into words is known as:


A) Holistic
B) Bounded
C) Explicit knowledge
D) Normative
E) Heuristic

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

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A person with a high tolerance for ambiguity who is oriented toward task and technical concerns when making a decision has which style?


A) Analytical
B) Conceptual
C) Directive
D) Behavioral
E) Consultative

F) B) and E)
G) A) and B)

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

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Integrate rational and nonrational model...

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The stages of rational decision making, in order, are:


A) Identify the problem or opportunity; generate alternative solutions; evaluate alternatives; and implement and evaluate the solution.
B) Generate alternative solutions; identify the problem or opportunity; evaluate alternatives; and implement and evaluate the solution.
C) Evaluate alternatives; identify the problem or opportunity; generate alternative solutions; and implement and evaluate the solution.
D) Evaluate alternatives; generate alternative solutions; identify the problem or opportunity; and implement and evaluate the solution.
E) Identify the problem or opportunity; evaluate alternatives; generate alternative solutions; and implement and evaluate the solutions.

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

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People with a directive style have a low tolerance for ambiguity and are oriented toward people and social concerns.

A) True
B) False

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When Roger comes to work in the morning, the first thing he does is head to the employee lounge where he grabs a cup of coffee and talks to coworkers for several minutes. This implies that he probably has a:


A) Low tolerance for ambiguity
B) High tolerance for ambiguity
C) Task orientation
D) Low need for structure
E) Social orientation

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

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In the _________ bias, a decision maker tends to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed.


A) Confirmation
B) Availability
C) Escalation of commitment
D) Overconfidence
E) Framing

F) B) and C)
G) All of the above

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In groupthink, the "inherent morality" symptom is likely to:


A) Breed excessive optimism
B) Cause groups to underestimate opponents
C) Cause groups to interpret silence as assent
D) Question loyalty of dissenters
E) Cause the group to ignore ethical considerations

F) A) and D)
G) A) and C)

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People with a low tolerance for ambiguity thrive in uncertain situations.

A) True
B) False

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