Making Biases in Management Essay

A finish criterion defines what is relevant in a decisiveness. (True tick p. 158) 4. The 4th step of the close-making work out requires the close maker to list viable alternatives that could resolve the fuss. (True easy p. 159) 5. Once the alternatives stupefy been identified, a decision maker must analyze each one. True moderate p. 159) 6. The step in the decision-making process that involves choosing a best alternative is termed implementation.Studies of the events leading up to the Challenger space shuttle disaster point to an escalation of commitment by decision makers. (True moderate p. 163) 12. Managers on a regular basis use their intuition in decision making. (True easy p. 164) 13. Rational analysis and intuitive decision making are complementary. (True moderate p. 164) 14. Programmed decisions track down to be continual and routine. (True easy p. 165) 15. Rules and policies are basically the same.A policy is an explicit statement that tells a manager what he or sh e 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 world are fully nonprogrammed. (False easy p. 167) 19. The ideal spotlight for making decisions is low risk. (False moderate p. 167) 20. Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes. (True easy p. 167) 21. Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates. (False difficult p. 168) 22.People who have a low valuation reserve for ambiguity and are rational in their way of thinking are said to have a directive behavior. (True moderate p. 171) 23. Decision makers with an uninflected style have a much lower tolerance for ambiguity than do directive types. (False moderate p. 171) 24. Individuals with a conceptual style tend to be very broad in their outlook and will look at many alternatives. (True moderate p. 171) 25. Behavioral-style decision makers work well with others. (True easy p. 171) 26. Most managers have characteristics of analytic decision makers. (False moderate p. 171) 27.According to the boxed feature, Managing Workforce Diversity, diverse employees tend to make decisions faster than a homogeneous group of employees. (False moderate p. 172 AACSB Diversity) The anchoring effect describes when decision makers desexualise on initial information as a starting point and then, once set, they fail to adequately adjust for subsequent information.Answer a. When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, theyre exhibiting the overconfidence bias. b. The immediate gratification bias describes decision makers who tend to want immediate rewards and to avoid immediate costs. For these individuals, decision choices that provide quick payoffs are more ap pealing than those in the future. c. The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.First impressions, ideas, prices, and estimates carry tempestuous weight relative to information received later. d. When decision makers selectively organize and interpret events base on their biased scholarships, theyre using 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 seek 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 value information that confirms their preconceived views and are critical and skeptical of information that challenges these views. f. The framing bias is when decision makers select and shine up certain aspects of a situation while excluding others. By drawing attention to specific aspects of a situation and highlighting them, while at the same sentence 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 acute 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 this because most decision makers have difficulty dealing with chance even though random events happen to ev eryone and theres nothing that arsehole be done to predict them. j. The sunk costs error is when decision makers forget that current choices backt 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 endeavor for decision makers to falsely 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 chop-chop to anything that does not fit with their expectations. Another characteristic of HROs is that they defer to the experts on the front line. Frontline workersthose who interact day in and day out with customers, products, suppliers, an so for thhave 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 ask why and keep asking why as they probe more deeply into the causes of the problem and possible solutions. Finally, HROs shout, but alto anticipate their limits. These organizations do try to anticipate as much as possible, but they recognize that they cant anticipate everything.