Making Biases in Management Essay

A determination criterion defines what is relevant in a decision. (True relent p. 158) 4. The fourth step of the decision- devising process requires the decision shaper to list work fit alternatives that could resolve the problem. (True swooning p. 159) 5. Once the alternatives attain been identified, a decision maker must analyze each one. True train p. 159) 6. The step in the decision-making process that involves choosing a best alternative is termed implementation.Studies of the so farts leading up to the competitor space shuttle disaster insinuate to an escalation of commitment by decision makers. (True moderate p. 163) 12. Managers regularly use their intuition in decision making. (True low-cal p. 164) 13. Rational analysis and intuitive decision making are complementary. (True moderate p. 164) 14. Programmed decisions fly the coop to be repetitive and routine. (True easy p. 165) 15. Rules and policies are basically the same.A policy is an explicit statement that te lls a manager what he or she ought or ought not to do. False moderate p. 166) 17. The solution to nonprogrammed decision making relies on procedures, rules, and policies. (False moderate p. 166) 18. Most managerial decisions in the real foundation are fully nonprogrammed. (False easy p. 167) 19. The ideal spatial relation for making decisions is woeful risk. (False moderate p. 167) 20. Risk is the condition in which the decision maker is able to estimate the likelihood of certain consequences. (True easy p. 167) 21. Risk is a incident in which a decision maker has neither certainty nor well-founded probability estimates. (False difficult p. 168) 22.People who have a low margin for equivocalness and are rational in their way of regaining are said to have a directive style. (True moderate p. 171) 23. conclusion makers with an analytical style have a much lower tolerance for ambiguity than do directive types. (False moderate p. 171) 24. Individuals with a conceptual style run for to be very broad in their out purport and will look at many alternatives. (True moderate p. 171) 25. Behavioral-style decision makers work well with new(prenominal)s. (True easy p. 171) 26. Most managers have characteristics of analytic decision makers. (False moderate p. 171) 27.According to the case feature, Managing Workforce Diversity, diverse employees tend to make decisions faster than a like group of employees. (False moderate p. 172 AACSB Diversity) The anchoring effect describes when decision makers settle on on sign information as a starting point and then, once set, they choke to adequately adjust for subsequent information.Answer a. When decision makers tend to think they know more(prenominal) than they do or hold unrealistically corroborative views of themselves and their performance, theyre promenadeing the overconfidence twist. b. The immediate gratification deviate describes decision makers who tend to want immediate rewards and to avoid immediate cost s. For these individuals, decision choices that cater officious payoffs are more appealing than those in the future. c. The anchoring effect describes when decision makers situate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.First impressions, ideas, prices, and estimates displace unwarranted weight relative to information received later. d. When decision makers selectively organize and interpret events found on their biased perceptions, theyre utilize the selective perception bias. This influences the information they pay attention to, the problems they identify, and the alternatives they develop. e. Decision makers who examine out information that reaffirms their past choices and discount information that contradicts past judgments exhibit the confirmation bias.These people tend to accept at face pass judgment information that confirms their preconceived views and are critical and skeptical of informat ion that challenges these views. f. The physique bias is when decision makers select and highlight certain aspects of a perspective while excluding others. By drawing attention to specific aspects of a situation and highlighting them, while at the same time downplaying or omitting other aspects, they distort what they see and create incorrect reference points. g. The availability bias is when decisions makers tend to remember events that are the most recent and vivid in their memory.The result is that it distorts their ability to recall events in an objective manner and results in distorted judgments and probability estimates. h. When decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events, thats the representation bias. Managers exhibiting this bias draw analogies and see identical situations where they dont exist. i. The randomness bias describes when decision makers try to create meaning out of random events.They do thi s because most decision makers have difficulty dealing with chance even though random events happen to everyone and theres nothing that send word be done to predict them. j. The sunk costs error is when decision makers forget that current choices cant correct the past. They incorrectly fixate on past expenditures of time, money, or effort in assessing choices rather than on future consequences. Instead of ignoring sunk costs, they cant forget them. k. Decision makers who are quick to take credit for their successes and to blame failure on outside factors are exhibiting the self-serving bias. . Finally, the hindsight bias is the tendency for decision makers to wrong believe that they would have accurately predicted the outcome of an event once that outcome is actually known.They are alert to the smallest deviations and react early and quickly to anything that does not fit with their expectations. Another characteristic of HROs is that they defer to the experts on the front line. Fr ontline workersthose who move day in and day out with customers, products, suppliers, an so forthhave firsthand knowledge of what can and cannot be done, what will and will not work. Get their input. Let them make decisions. Next, HROs let unexpected circumstances provide the solution. The fourth habit of HROs is that they embrace complexity.Because business is complex, these organizations aim for deeper understanding of the situation. They subscribe to why and keep asking why as they probe more deeply into the causes of the problem and possible solutions. Finally, HROs anticipate, but alto anticipate their limits. These organizations do try to anticipate as much as possible, but they take in that they cant anticipate everything.