In the context of decision-making conditions, what does 'risk' mean?
Explanation
This question clarifies the distinction between the four conditions of decision making: certainty, risk, uncertainty, and ambiguity. 'Risk' specifically implies that while goals are clear, outcomes have a calculable probability of failure.
Other questions
What is the term for the process of identifying problems and opportunities and then resolving them, which involves effort both before and after an actual choice is made?
Decisions to reorder office supplies when inventories drop to a certain level are considered what type of decision?
Boeing's decision to invest 16 million dollars in building the world's first transatlantic commercial jetliner, the 707, is an example of what kind of decision?
A situation associated with conflicts over goals, rapidly changing circumstances, and fuzzy information, where there is often no 'right' answer, is known as a:
Which decision-making model is considered to be 'normative,' meaning it defines how a decision maker should ideally make decisions rather than how they are actually made?
The concepts of 'bounded rationality' and 'satisficing' are central to which decision-making model?
What does the term 'satisficing' mean in the context of the administrative model?
According to the political model of decision making, decisions are often the result of:
What is the first step in the six-step managerial decision-making process?
The question-asking method used to explore the root cause of a problem by repeatedly asking 'Why?' is known as:
A manager's willingness to undertake risk with the opportunity of gaining an increased payoff is defined as their:
What personal decision style is used by managers who prefer simple, clear-cut solutions, make decisions quickly, and often rely on existing rules and procedures?
A manager who likes to consider complex solutions based on objective, rational data from various sources and searches for the best possible decision based on the information available is using which decision style?
Which of the following is a decision-making bias where the mind gives disproportionate weight to the first information it receives, which then influences subsequent thoughts?
The tendency for a manager to continue to pour money into a failing project in the hope of turning it around is an example of which bias?
The bias of 'seeing what you want to see' involves people looking for information that supports their existing instinct and avoiding information that contradicts it. For example, managers at Tepco gave greater weight to information that supported delaying the use of seawater to cool nuclear reactors because they knew it would destroy them. What is another name for this bias?
An innovative decision-making technique that uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem is known as:
What is the term for the tendency of people in groups to suppress contrary opinions in a desire for harmony, which can lead to poor decision quality?
What is the term for continuing to invest time and money in a decision despite strong evidence that it is failing?
The disciplined procedure, adopted from the U.S. Army, where managers review the results of decisions to evaluate what worked and what did not, is called:
What term did Jerry Harvey coin to illustrate the hidden pressures for conformity in groups, based on a story of his family taking an unpleasant trip to Abilene, Texas?
The use of a devil's advocate and the point-counterpoint technique are ways to encourage what in a group decision-making process?
Which personal decision style is adopted by managers who have a deep concern for others as individuals and who like to talk to people one-on-one to understand their feelings about a problem?
According to a global survey by McKinsey and Company, what contributes to better financial and operational outcomes in decision making?
By what amount did Caterpillar managers write down the value of China's ERA Mining Machinery Ltd. less than a year after purchasing it?
The text describes how managers at the software firm 37signals gave all customers a free month of service after a technical problem was fixed. What was the outcome of this decision?
What is 'bounded rationality' as proposed by Herbert A. Simon?
What are the two essential stages of crisis planning as outlined in Exhibit 7.9?
The evaluation and feedback stage of the decision process is critical because:
A study found that electronic brainstorming can generate what percentage more ideas than regular face-to-face brainstorming groups?
Which condition affecting the possibility of decision failure is considered the most difficult for a manager?
The personal decision style that is more socially oriented, considers a broad amount of information, and likes to talk to others to solve problems creatively is the:
What is a key difference between the classical and administrative models of decision making?
An informal alliance among managers who support a specific goal, which is a key part of the political model, is known as a:
What did the maker of Maker's Mark bourbon decide to do in response to booming demand and a potential shortage?
The implementation stage of decision making involves using managerial, administrative, and persuasive abilities to:
Why do managers who use a directive decision style often make decisions quickly?
What is a potential negative consequence of a manager perpetuating the status quo?
According to the text, a commitment to make more informed and intelligent decisions based on the best available facts and evidence is known as:
In the decision-making step of diagnosis and analysis, when a manager identifies that organizational accomplishment is less than established goals, they have confronted a(n):
Which of the six decision-making biases is most directly related to loss aversion, the idea that people respond more strongly to potential loss than to expected gain?
The example of Goldcorp creating a challenge to have outsiders analyze its topographic data to find gold is an illustration of what approach to developing alternatives?
What does a study by Erik Brynjolfsson at MIT suggest about companies that adopt data-driven decision making?
The text highlights that an organization could never be fully 'prepared' for disasters like the Sandy Hook shooting or the BP oil spill. What does this illustrate about some decision-making situations?
What is the primary drawback of the directive decision style?
What is the key difference between uncertainty and ambiguity in decision making?
Why is the political model of decision making often reflective of the real environment in which managers operate?
The concept of 'quasirationality' in decision making refers to:
When Priceline's CEO Jeffery Boyd decided to acquire two European hotel reservation sites, it sent the company's growth soaring. Today, what percentage of Priceline's revenues come from overseas?