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58 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall) CHAPTER 4: INDIVIDUAL AND GROUP DECISION MAKING Multiple Choice Questions 1. Which of the following is NOT a part of the solution phase of decision making? a. generating alternatives b. selecting the preferred solution c. implementing the chosen course of action d. identifying a problem or opportunity Answer: d (p. 85, easy, recall) 2. The formulation process includes of all of the following EXCEPT _____. a. identifying a problem or opportunity b. developing desired performance expectations c. diagnosing the factors affecting the problem or opportunity d. monitoring a solution to a problem after it has been implemented Answer: d (p. 85, difficult, integration) 3. A _____ exists when a manager detects a gap between existing and desired performance. a. problem b. situation c. vacuum d. taxonomy Answer: a (p. 85, easy, recall) 4. The process of decision making can be divided into which of the following distinct categories? a. formulation and solution b. discussion and analysis c. attention and interest d. solutions and methodology Answer: a (p. 85, moderate, recall) 5. Which of the following is the first step in the rational decision-making model? a. analyzing alternatives b. determining sources and reasons for resistance c. supporting intuitive decisions with scientific proof d. identifying decision situations Answer: d (p. 85, moderate, recall)
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58 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)

CHAPTER 4: INDIVIDUAL AND GROUP DECISION MAKING Multiple Choice Questions 1. Which of the following is NOT a part of the solution phase of decision making?

a. generating alternatives b. selecting the preferred solution c. implementing the chosen course of action d. identifying a problem or opportunity

Answer: d (p. 85, easy, recall) 2. The formulation process includes of all of the following EXCEPT _____.

a. identifying a problem or opportunity b. developing desired performance expectations c. diagnosing the factors affecting the problem or opportunity d. monitoring a solution to a problem after it has been implemented

Answer: d (p. 85, difficult, integration) 3. A _____ exists when a manager detects a gap between existing and desired

performance. a. problem b. situation c. vacuum d. taxonomy

Answer: a (p. 85, easy, recall) 4. The process of decision making can be divided into which of the following distinct

categories? a. formulation and solution b. discussion and analysis c. attention and interest d. solutions and methodology

Answer: a (p. 85, moderate, recall) 5. Which of the following is the first step in the rational decision-making model?

a. analyzing alternatives b. determining sources and reasons for resistance c. supporting intuitive decisions with scientific proof d. identifying decision situations

Answer: d (p. 85, moderate, recall)

59 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)

6. A manager at a local bookstore needs to hire a new employee. She has decided that the most important thing is for the potential employee to be well-read. Sales experience and an outgoing personality are secondary qualifications. The manager’s

decisions are an example of which stage of the classical decision making model? a. Step 1 – identifying problems and opportunities b. Step 2 – developing objectives and criteria c. Step 3 – generating alternatives d. Step 4 – analyzing alternatives

Answer: b (p. 86, moderate, application) 7. The subjectively expected utility (SEU) model asserts that managers _____.

a. attempt to rationalize their choices after they have been made b. pursue alternatives that have a high probability for yielding success c. use standard operating procedures to make programmed decisions d. choose the alternative they subjectively believe maximizes the desired outcome

Answer: d (p. 88, moderate, recall) 8. Why can monitoring and evaluating results be a difficult process?

a. Information that is easy to collect can obscure what is important. b. People are reluctant to give or receive negative information. c. Objectives and standards must be established during this phase. d. The subjectively expected utility model must be strictly applied.

Answer: a (p. 89, moderate, integration) 9. According to the classical model, which of the following is NOT a component of

implementing a decision? a. generating alternatives to achieve the desired results b. assessing sources and potential reasons for resistance to the decision c. assessing resources required to implement the decision effectively d. determining the chronology and sequence of actions to implement the decision

Answer: a (p. 89, difficult, recall) 10. The classical model is built on which of the following assumptions?

a. Decision makers are rational. b. Objectives can change at any time. c. There may be unknown alternatives. d. Decision makers seek minimally acceptable solutions.

Answer: a (pp. 89 – 90, easy, recall)

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11. _____ is the tendency to ignore or avoid certain information, especially if that information is ambiguous. a. Information bias b. Selective perception c. Cognitive complexity d. Uncertainty absorption

Answer: b (p. 90, moderate, recall) 12. Informational bias, uncertainty absorption, and selective perception are _____.

a. phases of the classical model b. phases of the reflexive model c. factors inhibiting accurate monitoring and evaluation d. factors inhibiting accurate problem identification and analysis

Answer: d (p. 90, difficult, recall) 13. When a young couple looked for a house to buy, they settled on the second place they

saw because the price was reasonable and the house had several features they wanted. This type of decision is best characterized as _____. a. satisficing b. rational decision making c. retrospective decision making d. interpersonal reflection

Answer: a (p. 91, moderate, application) 14. The bounded rationality model assumes that _____.

a. the problem or opportunity being considered is clear b. people have more than enough time to process information c. although people seek the best solution, they usually settle for much less d. decision makers have access to all the information they need to make a decision

Answer: c (p. 91, difficult, recall) 15. A plant manager needs to find a vendor who can reliably supply a chemical that is

needed for a new process established at the plant. She looks at the vendors that have proved reliable in the past. What is the manager doing in only looking at vendors she has used previously? a. She is making a programmed decision. b. She is applying Gresham’s law of planning. c. She is applying the retrospective decision model. d. She is applying a heuristic to limit her search.

Answer: d (p. 91, difficult, integration)

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16. The bounded rationality model asserts that the decision maker is a/an _____; the classical model asserts that the decision maker is a/an _____. a. satisficer; optimizer b. optimizer; satisficer c. entrepreneur; manager d. manager; entrepreneur

Answer: a (p. 91, moderate, recall) 17. A _____ is a rule that limits a search to areas that have high probabilities of yielding

success. a. heuristic b. structured incursion c. decision-making paradigm d. subjectively expected utility

Answer: a (p. 91, moderate, recall) 18. The _____ focuses on how decision makers attempt to rationalize their choices after

they are made. a. retrospective decision model b. nominal group technique c. rational model of decision making d. bounded rationality model

Answer: d (p. 91, moderate, recall) 19. _____ usually make non-programmed decisions; whereas, _____ usually make

programmed decisions. a. Top managers; lower-level managers b. Top managers; middle managers c. Lower-level managers; top managers d. Middle managers; top managers

Answer: a (p. 92, moderate, recall) 20. _____ is primarily a subconscious process, in which a decision is identified and a

preferred alternative is selected. a. Intuitive decision making b. Rational decision making c. Extra sensory perception d. Retrospective rationality

Answer: a (p. 92, easy, recall)

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21. A student wants to attend a Colorado university, primarily because he loves to ski, a sport for which Colorado is well known. He compares the Colorado school with schools in Louisiana, Alabama, and Texas; and then claims that the Colorado school is superior. The student’s decision is based on which of the following models? a. the classical model b. the bounded rationality model c. the retrospective decision model d. the rational model

Answer: c (p. 92, moderate, application) 22. _____ involve standard responses to simple or routine problems; in contrast, _____

require the use of conceptual skills to solve complex or novel problems. a. Nominal decisions; integrated decisions b. Real-time interventions; group processes c. Programmed decisions; nonprogrammed decisions d. Structured debates; dialectical inquiries

Answer: a (p. 92, moderate, integration) 23. In most organizations, whether an employee tends to make programmed or

nonprogrammed decisions usually depends on _____. a. the employee’s place in the organizational hierarchy b. the number of decisions the employee makes c. the capacity of the employee for intuitive decision making d. the dynamism of the employee’s workplace

Answer: a (pp. 92 – 93, easy, recall) 24. According to Gresham’s law of planning, managers tend to _____.

a. delegate programmed decisions so they can deal with nonprogrammed decisions b. allow programmed activities to overshadow nonprogrammed activities c. defer simple decisions so they can address more difficult decisions d. apply standard operating procedures to nonprogrammed decisions

Answer: b (p. 93, difficult, recall) 25. All of the following EXCEPT _____ are problem characteristics that influence the

effectiveness of a decision. a. unfamiliarity b. accountability c. complexity d. ambiguity

Answer: b (p. 94, difficult, recall)

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26. Which of the following is NOT true regarding group decision making? a. Groups tend to work more slowly than individuals. b. Groups are often dominated by an individual or clique. c. Groups tend to consider fewer alternatives than individuals. d. Group decision making can serve as a useful political function.

Answer: c (p. 94, difficult, integration) 27. What advantage do groups have over individuals when making decisions?

a. Groups have a narrower focus. b. Groups have far less bias than an individual has. c. Groups generally make decisions more quickly and authoritatively. d. Groups bring greater cumulative knowledge to problems.

Answer: d (p. 94, easy, recall) 28. A group would probably perform better than an individual would when _____.

a. hoping to come to a decision quickly b. looking for a wide range of alternative solutions to a problem c. evaluating the risks and dangers associated with a decision d. looking for the decision maker to take responsibility for the decision

Answer: b (p. 94, moderate, recall) 29. When a group’s decision-making process is controlled by groupthink, their decisions

are characterized by all of the following EXCEPT _____. a. limited search for information b. limited analysis of alternatives c. rejection of expert opinions d. extensive contingency plans

Answer: d (p. 95, difficult, integration) 30. _____ include illusions of morality, stereotyping, self-censorship, mindguards, and

illusions of unanimity. a. Structured debates b. Symptoms of groupthink c. Steps in rational decision making d. Factors of fast decision making

Answer: b (pp. 95 – 96, easy, recall)

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31. Which of the following can help a company to overcome groupthink? a. using outside experts to challenge the group b. assigning a devil’s advocate role to one member of the group c. establishing several independent groups to examine the same problem d. all of the above

Answer: d (p. 97, difficult, recall) 32. A university student realizes in her fourth year of school that she no longer likes

accounting and would rather pursue art history. Because she has already committed a significant amount of time and money to accounting, she decides to stick with her current degree. Her decision is an example of _____. a. groupthink b. escalating commitment c. Gresham’s law of planning d. the implicit favorite model

Answer: b (p. 98, easy, application) 33. All of the following EXCEPT _____ can minimize the effects of escalation of

commitment. a. appointing a devil’s advocate b. trying to “pull victory out of the jaws of defeat” c. creating an atmosphere that is not dominated by consistency d. recognizing that investments made in the past are “sunk” costs

Answer: b (p. 98, moderate, recall) 34. Which of the following is NOT one of the basic elements that lead to escalating

commitment? a. People remain committed to a course of action because of a need to justify

previous decisions to others. b. A norm for consistency deepens commitment to prior decisions. c. People have a tendency to commit to a course of action when they value the goal

a great deal. d. People usually treat investments made in the past as unrecoverable (sunk) costs.

Answer: d (p. 98, difficult, recall)

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35. As it pertains to escalation of commitment, _____ is simply a belief that future courses of action are rational and correct. a. prospective rationality b. selective perception c. intuitive decision making d. perceptual distortion

Answer: a (p. 98, moderate, recall) 36. A manager plans to form a group in which all of the members want to participate in

making an important decision. Which of the following actions would be the LEAST effective in helping the manager form the group? a. Choose group members with relevant content knowledge. b. Show them that the organization values their participation. c. Inform them that participation is expected from all employees. d. Assure them that their participation will lead to outcomes they value.

Answer: c (p. 99, moderate, application, AACSB: Communication) 37. Which of the following is the main benefit of using cross-functional teams to help

make decisions? a. It increases the homogeneity of the team. b. All team members have complementary knowledge, skills, and abilities. c. Each team member has unique knowledge that adds value to the decisions. d. None of the above

Answer: c (p. 99, difficult, recall, AACSB: Communication) 38. Which one of the following is NOT an advantage of participative decision making?

a. It clarifies for employees how the decision being made will affect them. b. It increases the likelihood that employees will work for rewards they value. c. It narrows the amount of control employees have over their work activities. d. It heightens the effects of social influence on behavior.

Answer: c (p. 100, moderate, application, AACSB: Communication) 39. Effective participative decision making requires that group members_____.

a. understand group dynamics b. scan the environment to identify problems c. exercise creativity when generating alternatives d. all of the above

Answer: d (p. 100, moderate, recall, AACSB: Communication)

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40. Which of the following is NOT a characteristic of a high-velocity industry? a. Mistakes are costly. b. Reliable information is plentiful. c. Recovering from missed opportunities is difficult. d. High-quality, rapid decision making is closely related to corporate performance.

Answer: b (p. 102, difficult, recall, AACSB: Communication) 41. Which one of the following is NOT a factor that influences a manager’s ability to

make fast decisions in high-velocity environments? a. self censorship b. real-time information c. two-tiered advice process d. consensus with qualification

Answer: a (p. 103, moderate, recall, AACSB: Communication) 42. How are devil’s advocacy, multiple advocacy, and dialectical inquiry similar?

a. They can all lead to groupthink. b. They all contribute to the structured-debate process. c. They expedite the problem-solution process. d. They challenge the assumptions of the rational decision-making model.

Answer: b (p. 103, easy, integration, AACSB: Communication) 43. If you are a decision maker, which one of the following questions pertains to the

characteristics of the environment in which you will be making a decision? a. Does the problem seem quite ambiguous? b. Does the problem seem stable or volatile? c. Are you under significant time pressures to make the decision? d. Do you feel overwhelmed by the amount of information you must process?

Answer: c (p. 104, difficult, recall, AACSB: Communication) 44. Which of the following techniques is NOT used in a structured debate?

a. devil’s advocate b. multiple advocacy c. dialectical inquiry d. nominal group technique

Answer: d (p. 103, moderate, recall, AACSB: Communication)

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45. How does dialectical inquiry enhance group decision making? a. by continuously refining proposed solutions, ensuring that the final solution is as

good as it can possibly be b. by questioning the underlying assumptions of problem formulation, forcing group

members to "think outside the box" c. by considering the positive and negative aspects of proposed solutions, then

combining those solutions so that the negative aspects are eliminated d. by coming to decisions within the group using secret ballots, so the actual

decisions of group members remain unknown to the group at large Answer: b (p. 104, moderate, recall, AACSB: Communication) 46. _____ improves decision making by assigning several group members to represent

the opinions of various constituencies that might have an interest in the decision. a. Brainstorming b. Devil’s advocacy c. Multiple advocacy d. Dialectical inquiry

Answer: c (p. 104, moderate, recall, AACSB: Communication) 47. Which of the following is NOT a technique for stimulating creativity in order to

improve decision making? a. brainstorming b. dialectical advocacy c. nominal group technique d. delphi technique

Answer: b (pp. 104 – 105, easy, recall, AACSB: Communication) 48. The delphi technique is a process in which group members_____.

a. meet face-to-face to debate the issues b. ignore the obvious ethical or moral consequences of their decisions c. provide potential solutions to a problem via carefully designed questionnaires d. rank potential solutions to a problem until a clearly favored solution emerges

Answer: c (p. 105, easy, recall, AACSB: Communication) 49. In the nominal group technique, group members do NOT _____.

a. meet face-to-face b. use a round-robin procedure to present their ideas c. generate creative solutions without evaluating their merits d. rank various ideas or solutions silently and independently

Answer: c (p. 105, difficult, recall, AACSB: Communication)

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50. Research has shown that groups using computer-mediated communication to

complete tasks take ____ to complete their work and members experience _____. a. less time; more satisfaction b. more time; less satisfaction c. more time; more satisfaction d. less time; less satisfaction

Answer: b (p. 106, moderate, recall, AACSB: Communication) True/False 51. The process of decision making can be divided into formulation and solution phases. Answer: True (p. 85, easy, recall) 52. An opportunity exists when a manager detects a gap between the firm’s existing and

desired performance. Answer: False (pp. 85 – 86, difficult, recall) 53. A person’s perception is not based on his or her experiences, needs, and personality. Answer: False (p. 86, moderate, recall) 54. According to the classical decision-making model, people use heuristics rather than

explicit criteria and weights to evaluate alternatives. Answer: False (p. 86, moderate, recall) 55. The SEU model asserts that managers choose the alternative that they objectively

believe maximizes the desired outcome. Answer: False (p. 88, easy, recall) 56. The rational model seeks an optimal solution; the bounded rationality model seeks an

acceptable solution. Answer: True (p. 91, easy, integration) 57. The bounded rationality model asserts that people examine feasible solutions to a

problem in batches, stopping only when the best solution is found. Answer: False (p. 91, difficult, recall)

69 Copyright © (2009) Pearson Education, Inc. Publishing as (Prentice Hall)

58. A heuristic is a rule that guides the search for alternatives into areas that are guaranteed to yield success.

Answer: False (p. 91, easy, recall) 59. According to Gresham's law of planning, managers spend too much time on complex

decisions, often ignoring the simpler decisions that may be just as important. Answer: False (p. 93, moderate, recall) 60. Groups often work more quickly than individuals when making decisions. Answer: False (p. 94, moderate, recall, AACSB: Communication) 61. Neither the classical model nor the bounded rationality model of decision making can

be used to illuminate aspects of group decision making. Answer: False (p. 94, moderate, recall) 62. One symptom of groupthink is stereotyping members of opposing groups; that is,

considering them in harsh terms and refusing to listen to or negotiate with them. Answer: True (p. 96, moderate, recall, AACSB: Communication) 63. Mindguards protect the leader and group members from adverse information that

could cause conflict within a group. Answer: True (p. 96, difficult, recall, AACSB: Communication) 64. The following consequence of groupthink is similar to retrospective decision making:

a decision is made and then data are selected that support the decision. Answer: True (p. 97, easy, integration) 65. A devil’s advocate is a group member whose role it is to convince the rest of the

group that none of their plans could possibly work. Answer: False (p. 97, easy, recall, AACSB: Communication) 66. Justification of previous decisions, norms for consistency, perceived probabilities,

and value of future outcomes contribute to escalating commitment to decisions. Answer: True (p. 98, moderate, recall)

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67. According to Professor Barry Staw, group members will likely remain committed to a course of action in order to justify previous decisions.

Answer: True (p. 98, difficult, recall) 68. Creating an environment in which consistency dominates is one way of overcoming

escalation of commitment. Answer: False (pp. 98 – 99, moderate, application) 69. Asking people to become involved in decisions outside their area of expertise is

conducive to participative decision making. Answer: False (p. 99, difficult, recall) 70. According to Hitt, Black, and Porter, the degree of involvement in the decision-

making process influences the number of alternatives generated. Answer: True (pp. 99 – 100, difficult, recall, AACSB: Communication) 71. Group members need to understand group dynamics for participative decision making

to be effective. Answer: True (p. 100, moderate, recall, AACSB: Communication) 72. In participative decision making, the ability of team members to communicate and

handle conflict can be as important as their knowledge and desire to participate. Answer: True (p. 100, moderate, recall, AACSB: Communication) 73. In high-velocity industries, rapid decision making by executives and their companies

is closely related to corporate performance. Answer: True (p. 102, moderate, recall) 74. The term “accelerated cognitive processing” refers to the ability to process and

analyze great amounts of information quickly and efficiently. Answer: True (p. 102, difficult, recall) 75. Real-time information refers to information on contemporary occurrences, meaning

any developments within the last year. Answer: False (p. 103, moderate, recall, AACSB: Communication)

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76. Cogitation is a process of generating many creative solutions but not immediately evaluating the merits of any of them.

Answer: False (p. 104, difficult, recall, AACSB: Communication) 77. Stimulating creativity can improve the problem-solution process by expanding the

search for and analysis of possible alternatives. Answer: True (p. 104, moderate, recall) 78. The nominal group technique (NGT) allows group members to meet informally,

thereby promoting free discussion of ideas. Answer: False (p. 105, difficult, recall, AACSB: Communication) 79. The delphi technique never allows decision participants to meet face to face. Answer: True (p. 105, easy, recall, AACSB: Communication) 80. A recent study found that computer-mediated communication decreases the

effectiveness of groups. Answer: True (p. 106, moderate, recall: AACSB: Communication) Short Essay Questions 81. What are the two fundamental stages of decision making? (p. 85, AACSB:

Analytic Skills) The decision-making process can be divided into two distinct categories. Formulation involves identifying a problem or opportunity, acquiring information, developing desired performance expectations, and diagnosing the causes and relationships among factors affecting the problem or opportunity. Solution involves generating alternatives, selecting the preferred solution, and implementing the decided course of action. 82. What is the rational (classical) model of decision making? (pp. 85 – 89, AACSB:

Analytic Skills) The rational model assumes that the decision maker goes through a series of rational steps – identifying decision situations, developing objectives and criteria, generating alternative solutions, analyzing alternatives, selecting alternatives, implementing the decision, and monitoring the results.

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83. What is selective perception? (p. 90, AACSB: Analytic Skills) Selective perception is a tendency to ignore or avoid certain information, especially if that information is ambiguous. As such, it inhibits a person’s ability to identify and

analyze problems. 84. Explain the role of satisficing in the bounded rationality model. (p. 91, AACSB:

Analytic Skills) Satisficing is the tendency for a decision maker to accept the first alternative that meets his or her minimally acceptable requirements, instead of pushing on to find an alternative that produces the best results. With satisficing, the decision maker is “settling for less.” 85. Contrast programmed and nonprogrammed decisions. (p. 92, AACSB: Analytic

Skills) A programmed decision is a standard response to a single or routine problem. The nature of the problem and the possible solutions are well defined and clearly understood by the decision maker. A nonprogrammed decision is a response to a problem that is poorly defined or novel. No alternative is clearly correct, and past decisions are of little help. 86. What is Gresham’s law of planning? (p. 93, AACSB: Analytic Skills) Gresham’s law of planning states that there is a tendency for managers to let programmed

activities overshadow nonprogrammed activities. As a result, managers sometimes do not get to the more difficult and perhaps important decisions they must make. 87. What are the advantages of group decision making? (p. 94, AACSB:

Communication) Groups can accumulate more knowledge and facts; groups have a broader perspective and consider more alternatives; participation in group decisions boosts satisfaction with and support for decisions; and group decision processes serve important communication and political functions. 88. What is groupthink? (p. 95, AACSB: Communication) Groupthink is a mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action. 89. What is escalation of commitment? (p. 98, AACSB: Analytic Skills) Escalation of commitment is the tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision, even after significant evidence emerges to indicate that the original decision was incorrect.

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90. How can creativity be stimulated during the problem-solution process? (p. 105) Brainstorming, the nominal group technique, and the delphi method can be used to stimulate creativity Note: The remaining questions in this section will be based on the following scenario: Six employees called themselves the “morale committee” at Apex, Inc. Because so many

employees had expressed concerns over the company’s employee evaluation form, Joe Bloom, the HR director, asked the six employees to come up with a better evaluation system. Though each of the six represented a different department within Apex, they all agreed that the current evaluation form had too many weaknesses. Alice Grayson, the director of quality control, said, “I look at my employees’ previous evaluations, and they don’t tell me a thing about their performance!” After much deliberation and several meetings, the “morale committee” decided that

supervisors were completing the evaluation forms incorrectly. “People get disgruntled,”

said one committee member, “when their overall score is higher than last year’s score

but their pay raise is less!” Gabe Sanchez, another committee member, said, “Yes! And

no one from management wants to explain those kinds of things to us!” The committee decided to recommend to Joe Bloom that Apex should keep the current form. However, they noted that supervisors must complete the form more thoroughly and communicate their recommendations more effectively. “Well, in order to be consistent,”

Bloom stated, “we may need to do some training.” 91. In their planning process, did the “morale committee” identify a problem or an

opportunity? (pp. 85 – 86, AACSB: Analytic Skills) The problem was the perception that the employee evaluation system was flawed. Based on negative feedback from employees, Bloom decided to amend the evaluation process. The opportunity was the chance for managers to improve the evaluation process by communicating more clearly on the form. 92. What kind of solution did the moral committee make? (p. 88, AACSB: Analytic

Skills) When they first approached this task, the members of the group agreed that the “current

evaluation form had too many weaknesses.” After some time-consuming deliberation, their point of view changed. The form was no longer to blame. Instead, the problem involved those who were using the form—the supervisors were not completing them correctly. Members of management were also faulted because they would not “explain

those kinds of things to us.”

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It appears that an optimal solution would involve improvements (1) to the employee evaluation system and (2) to the communication climate with management. Significant amounts of time and information processing would be required to evaluate, select, and implement either of the improvements. Therefore, the morale committee decided to keep the current system, with the stipulation that “supervisors must complete the form more

thoroughly and communicate their recommendations more effectively.” The committee

started out seeking the best (optimal) solution; however, they “satisficed” by settling for less; that is, a solution that was minimally acceptable. 93. How could selective perception have influenced the decision formulation in this

scenario? (p. 90, AACSB: Analytic Skills) Selective perception is the tendency to ignore or avoid certain information, especially if that information is ambiguous. Some committee members may have ignored or avoided discussing certain criticisms, knowing that changing the current system could make the evaluation process more difficult for themselves or their employees. 94. Is there any indication in this scenario that Gresham’s law of planning may have

prevailed? (p. 93, AACSB: Analytic Skills) One point to make is that Mr. Bloom assigned this difficult task to a six-member group. With Gresham’s law of planning, there is a tendency for managers to let programmed activities overshadow nonprogrammed activities. It is difficult to determine if this may have occurred in this scenario. 95. What group liabilities could this “morale committee” have faced? (p. 94,

AACSB: Communication) Groups often work more slowly than individuals. In addition, group decisions involve considerable compromise, which may lead to less than optimal decisions. Groups can be dominated by one individual or a small clique, thereby negating many of the virtues of the group process. Moreover, overreliance on group decision making can inhibit management’s ability to act quickly and decisively when necessary. 96. Why might Mr. Bloom have asked the six-member committee to work on this

project rather than devise a plan himself? (p. 94, AACSB: Communication) Groups can accumulate more knowledge and facts. Groups have a broader perspective and consider more alternatives. In addition, individuals who participate in making a group decision are more satisfied with the decision and are more likely to support it.

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97. Was groupthink evident in this scenario? (p. 95 – 97, AACSB: Communication) Agreeing that the morale problem among employees was the result of the perceived weaknesses in the evaluation tool was not difficult; the concerns appear to be company-wide. In weighing the alternatives and coming up with their recommendation, the group members probably did not suffer from groupthink since the group was not cohesive, they were not insulated from outside input, and the outcome would impact each of them while using the evaluation tool. 98. If Mr. Bloom were to play the role of the devil’s advocate, what might he say or

do? (p. 97, AACSB: Communication) Mr. Bloom would likely suggest to the “morale committee” that it might be impossible to achieve high consistency among all of Apex’s managers in filling out the forms. Instead of stating that some training may be necessary to follow the group’s recommendation,

Mr. Bloom may have suggested that the six-member group devise a plan in which all managers can be better prepared to fill out the evaluation forms. 99. Why might Mr. Bloom have compiled a cross-functional team, rather than just

picking group members to work on this project? (p. 99, AACSB: Communication)

Members of a cross-functional team, each coming from within a different area of the organization, have unique knowledge that adds value to the overall decision. The decision would impact all of Apex’s employees, including the six-member committee. 100. What contingency factors for effective participative decision making did Mr.

Bloom likely recognize among the committee? (p. 99, AACSB: Communication) Group members had sufficient content knowledge and a desire to participate. They believed their participation would result in change, and that the change would be of value to them. Moreover, their participation in this process would be valuable to the entire organization and would fit into its overall goals and objectives.


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