ANSWERS - Novella



ANSWERS

LEARNING THE LANGUAGE

|1. Problem solving |13. Decision making |

|2. Optimizing approach |14. Maximax approach |

|3. Situation of certainty |15. Innovation |

|4. Creativity |16. Gordon technique |

|5. Brainstorming |17. Management information system |

|6. Intuitive approach |18. Transaction-processing systems |

|7. Principle of bounded rationality |19. Brainwriting |

|8. Level of aspiration |20. Data processing |

|9. Situation of risk |21. Situation of uncertainty |

|10. Decision process |22. Maximin approach |

|11. Satisficing |23. Rational approach |

|12. Optimizing |24. Risk-averting approach |

ASSESSMENT CHECK

1. Herbert Simon, a Nobel Prize winner, has described the manager’s decision process in three stages: 1) intelligence, 2) design, and 3) choice.

2. Decision making is the process of choosing from among various alternatives. Problem solving is the process of determining the appropriate responses or actions necessary to alleviate a problem.

3. There are five emotional attachments that George Odiorne believes can hurt a decision maker:

1) Fastening on unsubstantiated facts and sticking with them.

2) Being attracted to scandalous issues and heightening their significance.

3) Pressing every fact into a moral pattern.

4) Overlooking everything except what is immediately useful.

5) Having a preference for romantic stories and finding such information more significant than any other kind, including hard evidence.

4. The first suggestion is to become aware of biases and allow for them. The second is to seek independent opinions.

5. 1) Recognize the need for a decision.

2) Establish, rank, and weigh the decision criteria.

3) Gather available information and data.

4) Identify possible alternatives.

5) Evaluate each alternative with respect to all criteria.

6) Select the best alternative.

6. The principle of bounded rationality states, “The capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior – or even for a reasonable approximation to such objective rationality.” It is simply stating that human rationality has definite limits.

7. Refer to Figure 4.2. There are organizational groups such as advisory committees, labor unions, and informal groups. There are individuals within the organization such as subordinates and superiors. Personality traits such as personality, background, and experience affect decisions as well. The organization itself has an affect too. The position, structure, purpose, and the traditions of the organization have an impact on the decisions that are made.

8. A situation of certainty is knowing exactly what will happen. A situation of risk occurs when if certain reliable but incomplete information is available. A situation of uncertainty is when there is very little or no reliable information on which to evaluate different possible outcomes.

9. A manager who makes quick decisions is taking a risk of making bad decisions because they have not gathered and evaluated the available data, considered people’s feelings, and anticipated the impact of the decision which can result in a quick but poor decision.

10. There are two reasons why group performance is generally superior to that of the average group member. First, the sum total of the group’s knowledge is greater. Second, the group has a much wider range of alternatives in the decision process.

11. The first barrier is complacency. The second is called defensive avoidance and the third is panic. The last barrier is deciding to decide.

12. Creativity is coming up with an idea that is new, original, useful, or satisfying to its creator or to someone else. Innovation is the process of applying a new and creative idea to a product, service, or method of operation.

13. Managers must instill trust and eliminate the fear of failure. They must develop effective internal and external communication. Also, they must seek a mix of talent within the organization. This will blend different personality types and interactions which encourages creative problem solving. Managers should reward useful ideas and solutions. Lastly, they should allow for some flexibility in the existing organizational structure so that new ideas and creative solutions will not be eliminated by tradition.

14. Data processing is the capture, processing, and storage of data, whereas an MIS uses those data to produce information for management in making decisions to solve problems. Data processing provides the database of the MIS.

15. Transaction-processing systems substitute computer processing for manual record-keeping procedures. They require routine and highly structured decisions. Some examples include payroll, billing, and inventory record systems.

CRITICAL THINKING EXERCISES

1. Students will have varying answers. When in charge of security, one must deal with people that are “causing a scene” or belligerent individuals. They also have problems of theft, securing the property and people, and must make decisions regarding how to deal with these issues.

2. Students may offer different answers. The optimizing approach would be the obvious answer because all factors must be researched and considered, not chosen solely on feelings. Also, satisficing is never the best approach because patience will allow for a better alternative when time is not critical.

3. Students answers will vary. Many factors would affect the decisions that are made. These include superiors, employees, purpose of the company, tradition, structure, experience in the industry, etc.

4. Students answers will vary. Groups are almost always the better way to go, unless time is of the essence.

5. Students answers will vary. Innovation and creativity can be created through a variety of techniques. Brainstorming, brainwriting, and the Gordon technique are all techniques discussed in the chapter. For example, 3M, manufacturer of Scotch Tapes and Post-It Note Pads, gives its employees time in their workday strictly for creating new products.

PRACTICE TEST

MULTIPLE CHOICE TRUE FALSE

1. A 10. D 1. True 10. True

2. C 11. C 2. False 11. True

3. B 12. B 3. True 12. False

4. B 13. A 4. False 13. True

5. D 14. D 5. False 14. False

6. C 15. D 6. True 15. True

7. A 16. C 7. True 16. False

8. B 17. B 8. False 17. True

9. C 9. False 18. True

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