TMGT 1160 Quiz 2

List the seven steps in the decision-making process

List the seven steps in the decision-making process

1.Identify the problem.

2.Collect relevant information.

3.Develop alternatives.

4..Evaluate each alternative.

5.Select the best alternative.

6. Implement the decision.

7. Follow up and evaluate.

decision-making process

A seven-step process that provides a rational and analytical way of looking at decisions. The steps include identification of the problem, collection of relevant information, development of alternatives, evaluation of alternatives, selection of the best alternative, implementation of the decision, and follow-up and evaluation.

problem

A discrepancy between an existing and a desired state of affairs.

expected value analysis

A procedure that permits decision makers to place a monetary value on various consequences likely to result from the selection of a particular course of action.

Decision trees

A diagram that analyzes hiring, marketing, investment, equipment purchases, pricing, and similar decisions that involve a progression of decisions. Decision trees assign probabilities to each possible outcome and calculate payoffs for each decision path.

Marginal analysis

A method that helps decision makers optimize returns or minimize costs by dealing with the additional cost in a particular decision, rather than the average cost.

What are the 4 types of decision making styles?

directive, analytic, conceptual, and behavioral.

Directive Style

People using the directive style have low tolerance for ambiguity and seek rationality. Efficient and logical, their efficiency concerns may result in their making decisions with minimal information and after assessing few alternatives. Directive types make decisions quickly and focus on the short run.

Analytic Style

Analytic types have a greater tolerance for ambiguity than do directive managers. They desire more information and will consider more alternatives than directive types. Analytic supervisors are characterized as careful decision makers with the ability to adapt or cope with new situations.

Conceptual Styles

Individuals with a conceptual style have a broad outlook and consider many alternatives. Their focus is long range, and they are good at finding creative solutions to problems.

Behavioural Style

Decision makers with the behavioral style work well with others and are concerned with the achievement of their employees. Receptive to suggestions from others and relying on meetings for communicating, this type of decision maker tries to avoid conflict and seek acceptance.

Availability heuristic

The tendency of people to base their judgments on information that is readily available to them.

representative heuristic

The tendency of people to match the likelihood of an occurrence with something they are familiar with.

escalation of commitment

An increased commitment to a previous decision despite negative information.

ringisei

An increased commitment to a previous decision despite negative information.

Well structured problem

Straightforward, familiar, easily defined problems

Ill structured problems

New problems about which information is ambiguous or incomplete.

programmed decision

A repetitive decision that can be handled by a routine approach

nonprogrammed decision

A decision that must be custom-made to solve a unique and nonrecurring problem

what are the advantages of group decisions?

Provides more complete information. A group brings a diversity of experience and perspective to the decision process that an individual, acting alone, cannot.

Generates more alternatives. Because groups have a greater quantity and diversity of information, they can identify more alternatives than can an individual.

Increases acceptance of a solution. If the people who will be affected by a certain solution and who will help implement it get to participate in the decision making itself, they will be more likely to accept the decision and to encourage others to accept it.

Increases legitimacy. The group decision-making process is consistent with democratic ideals and may be perceived as more legitimate than decisions made by a single person

what are the disadvantages to group decisions?

Time-consuming. It takes time to assemble a group and the group interaction is frequently inefficient. The result is that groups almost always take more time to reach a solution than an individual making the decision alone.

Minority domination. Members of a group are never equal, often differing in terms of rank in the organization, experience, knowledge about the problem, influence with other members, verbal skills, assertiveness, and the like. This creates the opportunity for members to use their advantages to dominate others in the group and impose undue influence on the final decision.7

7 See C. K. W. De Drue and M. A. West, “Minority Dissent and Team Innovation: The Importance of Participation in Decision Making,”Journal of Applied Psychology 86, no. 6 (December 2001), 1191–1201.

Pressure to conform. There are social pressures in groups. The desire of members to be accepted and considered assets can quash any overt disagreement and encourage conformity among viewpoints. The withholding of different views to appear in agreement is called groupthink. Ambiguous responsibility. Group members share responsibility, but who is actually responsible for the final outcome? In an individual decision, it is clear who is responsible, but in a group decision the responsibility of any single member is watered down.

groupthink

Withholding of differing views by group members to appear to be in agreement.

brainstorming

A technique for overcoming pressures for conformity that regards the development of creative alternatives; an idea-generating process that specifically encourages alternatives while withholding criticism of those alternatives.

nominal group technique

A technique that restricts discussion during the decision-making process.

Electronic meeting

A group decision-making technique in which participants are positioned in front of computer terminals as issues are presented. Participants type responses onto computer screens as their anonymous comments and aggregate votes are displayed on a projection screen in the room.

design thinking

Approaching management problems as designers approach design problems.

Big Data

The vast amount of quantifiable information that can be analyzed by highly sophisticated data processing.

utilitarian view of ethics

A view in which decisions are made solely on the basis of their outcomes or consequences.

rights view of ethics

A view that calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights.

Justice view of ethics

A view that requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs.

Utilitarian view of ethics

A view in which decisions are made solely on the basis of their outcomes or consequences.

rights view of ethics

A view that calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights.

Justice view of ethics

A view that requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs.

Motivation

The willingness to do something conditioned on the action’s ability to satisfy some need for the individual.

Need

A physiological or psychological deficiency that makes certain outcomes seem attractive.

locus of control

The source of control over an individual’s behavior.

machiavellianism

Manipulative behavior based on the belief that the ends can justify the means.

Self -esteem

The degree to which an individual likes or dislikes themselves

Self - monitoring

The ability to adjust behavior to external situational factors. High self-monitors adapt easily and are capable of presenting striking contradictions between public personas and private selves; low self-monitors tend to display their true feelings and beliefs in almost every situation.

Risk propensity

A willingness to take chances, characterized by rapid decision making with the use of less information.

What are the dimensions of social intelligence?

Self-awareness. An awareness of what or how you are feeling

Self-management. The ability to manage your emotions and impulses

Self-motivation. The ability to persist in the face of setbacks and failures

Empathy. The ability to sense how others are feeling

Social skills. The ability to handle the emotions of others

hierarchy-of-needs theory

A theory of Abraham Maslow that states that a satisfied need no longer creates tension and therefore doesn’t motivate. Maslow believed that the key to motivation is to determine where an individual is along the needs hierarchy and to focus motivation efforts at the point where needs become essentially unfulfilled.

What are the 5 needs Maslow proposed exists in every human hierarchy

Physiological. Includes hunger, thirst, shelter, sex, and other bodily needs

Safety. Includes security and protection from physical and emotional harm

Social. Includes affection, a sense of belonging, acceptance, and friendship

Esteem. Includes internal factors such as self-respect, autonomy, and achievement, and external factors such as status, recognition, and attention

Self-actualization. The drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment

Theory X–Theory Y

A theory of Douglas McGregor that a supervisor’s view of human nature is based on a certain grouping of assumptions and that he or she tends to mold behavior toward subordinates according to those assumptions.

What are the 4 assumptions held under theory X??

Employees inherently dislike work, and whenever possible, will attempt to avoid it.

Because employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve desired goals.

Employees will shirk responsibilities and seek formal direction whenever possible.

Most workers place security above all other factors associated with work and will display little ambition.

What are the 4 assumptions under theory Y

Employees view work as being as natural as rest or play.

A person will exercise self-direction and self-control if they are committed to the objectives.

The average person can learn to accept, even seek, responsibility.

The ability to make good decisions is widely dispersed throughout the population and is not necessarily the sole province of supervisors.

motivation-hygiene theory

A theory of Frederick Herzberg that the opposite of satisfaction is not “dissatisfaction” but “no satisfaction” and the opposite of dissatisfaction is not “satisfaction” but “no dissatisfaction.”

hygiene factors

Frederick Herzberg’s term for factors, such as working conditions and salary, that, when adequate, may eliminate job dissatisfaction but do not necessarily increase job satisfaction

need for achievement

A compelling drive to succeed; an intrinsic motivation to do something better or more efficiently than it has been done before.

equity theory

The concept that employees perceive what they can get from a job situation (outcomes) in relation to what they put into it (inputs), and then compare their input–outcome ratio with the input–outcome ratio of others.

expectancy theory

A theory that individuals analyze effort–performance, performance–rewards, and rewards–personal goals relationships, and their level of effort depends on the strengths of their expectations that these relationships can be achieved.

Organizing

Organizing is arranging and grouping jobs, allocating resources, and assigning work in a department so that activities can be accomplished as planned.

work specialization

The process of breaking down a job into a number of steps, with each step being completed by a different individual.

span of control

The number of employees a supervisor can efficiently and effectively direct.

chain of command

The continuous line of authority in an organization.

unity of command

A principle that states that an employee should have one and only one supervisor to whom he or she is directly responsible.

authority

Rights inherent in a supervisory position to give orders and expect those orders to be obeyed.

line authority

The authority that entitles a supervisor to direct the work of his or her employees and to make certain decisions without consulting others.

staff authority

A limited authority that supports line authority by advising, servicing, and assisting.

functional authority

Control over individuals outside one’s own direct areas of responsibility.

responsibility

Supervisory obligations such as achieving a unit’s goals, keeping costs within budget, following organizational policies, and motivating employees.

centralization

Decision-making responsibility in the hands of top management.

decentralization

The pushing down of decision-making authority to those closest to the problems.

departmentalization

Grouping departments based on work functions, product or service, target customer or client, geographic territory, or the process used to turn inputs into outputs.

functional departmentalization

Grouping activities into independent units based on functions performed.

product departmentalization

Grouping activities into independent units based on problems or issues relating to a product

customer departmentalization

Grouping activities around common customer categories.

geographic departmentalization

Grouping activities into independent units based on geography or territory.

process departmentalization

Grouping activities around a process; this method provides a basis for the homogeneous categorizing of activities.

simple structure

A nonelaborate structure, low in complexity, with little formalization, and with authority centralized in a single person; a “flat” organization with only two or three levels.

functional structure

An organization in which similar and related occupational specialties are grouped together.

divisional structure

An organization made up of self-contained units.

matrix

A structure that weaves together elements of functional and product departmentalization, creating a dual chain of command.

team-based structure

An organization that consists entirely of workgroups, or teams

boundaryless organization

An organization that is not defined or limited by boundaries or categories imposed by traditional structures.

virtual organization

Consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects.

network organization

Uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes.

learning organization

An organization that has developed the capacity to adapt and change continuously.

job description

A written statement of job duties, working conditions, and operating responsibilities.

empowerment

An increase in the decision-making discretion of workers.

delegation

Allocation of duties, assignment of authority, assignment of responsibility, and creation of accountability.

Describe why work specialization should increase economic efficiency.

Work specialization increases economic efficiency by allocating the most difficult and complex tasks to the employees with the highest skill level and paying people less to do the less difficult and less skilled tasks.

Explain how the span of control affects an organization’s structure

The narrower the span of control, the more supervisory levels are necessary to directly oversee activities. Wider spans create fewer managerial levels and flatter organizational structures.

Contrast line and staff authority

Line authority refers to the right to direct the work of employees. Staff authority, on the other hand, advises, services, and assists line authority in accomplishing its job. Only line authority allows individuals to make decisions independently and without consulting others.

Explain why organizations are becoming increasingly decentralized.

Organizations are becoming increasingly decentralized to meet competitive challenges through knowledgeable and rapid decision making.

Describe how flatter organizational structures can be beneficial to the organization.

Flatter organizational structures mean that job-related activities cut across all parts of the organization. Rather than having employees perform specialized jobs and work in departments with people who do similar tasks, the organization groups them with other employees who have different skills, forming a work team. Flatter organizational structures can be beneficial because they are flexible and more adaptable to conditions external to the organization.

Explain the concept of a learning organization and how it influences organizational designs and supervisors.

A learning organization is an organization that has developed the capacity to continuously adapt and change because all members take an active role in making decisions or performing their work. It influences organizational designs because an organization’s ability to learn is enhanced (or hindered) by its structural boundaries and the amount of collaborative work. Supervisors in a learning organization also play a different role. Rather than being the “boss,” supervisors become facilitators, supporters, and advocates for their employees.

Discuss the value of job descriptions.

Job descriptions (a) provide supervisors with a formal document describing what the employee is supposed to be doing, (b) help employees learn their job duties, and (c) clarify the results that management expects.

Identify the four-step process of delegation.

Delegation consists of (1) allocation of duties, (2) delegation of authority, (3) assignment of responsibility, and (4) creation of accountability.

Describe expected value analysis.

Expected value analysis calculates the expected value of a particular alternative by weighting its possible outcomes by the probability of achieving the alternative, and then summing up the totals derived from the weighting process.

Explain the four types of decision styles.

The four types of decision-making styles are directive, analytic, conceptual, and behavioral. The directive type is efficient and logical. The analytic type is careful, with the ability to adapt to or cope with new situations. The conceptual type considers many alternatives and is good at coming up with creative solutions. The behavioral type emphasizes suggestions from others and conflict avoidance.

Identify and explain the common decision-making errors.

The common errors in decision making are called heuristics. Heuristics are shortcuts supervisors may take to speed up the decision-making process. Heuristics commonly exist in two forms—availability and representative. Both types can create biases in a supervisor’s judgment. A third common error, called escalation of commitment, reflects an increased commitment to a previous decision despite negative information.

Describe the two types of decision problems and the two types of decisions that are used to solve them.

Supervisors face well- and ill-structured problems. Well-structured problems are straightforward, familiar, easily defined, and solved using programmed decisions—repetitive decisions that can be handled by a routine approach, such as a policy, procedure, or rule. Ill-structured problems are new or unusual problems, involve ambiguous or incomplete information, and are solved using nonprogrammed decisions—decisions that must be custom-made to solve the unique and nonrecurring problem.

Compare and contrast group decision making and individual decision making.

Group and individual decisions can be evaluated on the basis of accuracy, speed, creativity, and acceptance. The advantages of group decisions are that they have more complete information, generate more alternatives, and have an increased acceptance of a solution, which increases legitimacy (accuracy, creativity, and acceptance). Individual decision making, on the other hand, is typically faster (speed). Accordingly, when speed alone is the primary factor, individual decisions should be made. If speed alone is not the primary factor, group decisions are better.

List and describe three techniques for improving group decision making.

Three techniques for improving group decision making are brainstorming, the nominal group technique, and electronic meetings. Brainstorming is a technique used for overcoming pressures to conform that regard development of creative alternatives. This idea-generating process specifically encourages alternatives while withholding criticism of those alternatives. The nominal group technique restricts discussion during the decision-making process. In electronic meetings, participants are positioned at computer terminals as issues are presented. Participants type anonymous responses into the computer, and aggregate votes are displayed on a projection system in the same room.

Explain three different ethical viewpoints.

The three different viewpoints of ethical decisions are the utilitarian view, the rights view, and the justice view. The utilitarian view of ethics makes decisions based on the greatest good for the greatest number. The rights view of ethics makes decisions consistent with fundamental liberties and privileges. The justice view of ethics seeks fairness and impartiality.

Identify and define five personality characteristics relevant to understanding the behavior of employees at work.

Five personality characteristics are (1) locus of control—the degree to which people believe they are masters of their own fate, (2) Machiavellianism—the degree to which an individual is manipulative and believes that ends can justify means, (3) self-esteem—an individual’s degree of liking or disliking himself or herself, (4) self-monitoring—an individual’s ability to adjust his or her behavior to external, situational factors, and (5) risk propensity—the degree of an individual’s willingness to take chances.

Explain the elements and the focus of the three early theories of motivation.

Maslow focused on the self. Maslow’s hierarchy of needs proposes that there are five needs—physiological, safety, social, esteem, and self-actualization—and as each need is sequentially satisfied, the next need becomes dominant. McGregor focused on management’s perception of the self. Theory X–Theory Y proposes two views of human nature and then argues that employees are essentially hardworking, committed, and responsible. Therefore, to maximize motivation, employees should be allowed to participate in decision making and should be given responsible and challenging jobs, and supervisors should strive to achieve good group relations among employees. Herzberg focused on the organization’s effect on the self. According to motivation-hygiene theory, if you want to motivate employees, you have to emphasize achievement, recognition, the work itself, responsibility, and growth. These are the characteristics that people find intrinsically rewarding.

Identify the characteristics that stimulate the achievement drive in high achievers.

High achievers prefer jobs that give them personal responsibility for finding solutions to problems, where they can receive rapid and unambiguous feedback on their performance, and where they can set moderately challenging goals.

Identify the three relationships in expectancy theory that determine an individual’s level of effort.

The three relationships in expectancy theory that determine an individual’s level of effort are effort–performance, performance–rewards, and rewards–personal goals. The effort–performance linkage implies that an employee who puts forth the effort has a greater likelihood that he or she will successfully perform the job. The performance–rewards linkage implies that if the performance is successful, the employee will receive a reward. Finally, the rewards–personal goals linkage implies that the rewards received are something the employee wants and finds value in—it helps fulfill an individual need.