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1. Decision-making and problem solving (Connect) Match each situation with the decisionmaking or problem solving term that best describes it. Answer Key Terms Descriptions Problem solving A. You need to decide which job candidate to hire as your new account representative. Decisionmaking B. You are about to meet with Mary to discuss her ideas about why the extruder machine keeps breaking. Condition of risk C. You are trying to decide whether or not to expand your manufacturing facility, but it is impossible to know whether or not the increased demand for your products will be permanent. Condition of uncertainty D. If you invest more in marketing your new product line it may increase sales, but it is not guaranteed to do so. Use your knowledge of decision-making and problem solving to select the term that best completes the sentence. Many V were made after a tornado devastated the small town with little warning. Use your knowledge of decisionmaking and problem solving to determine which term best represents the given example. Example of Managerial Work Decision-making Problem Solving You have to choose which car to buy. 0 Q You need to figure out the best way to set up your quality control process. 0 Q 2. Rational approach to decision making (Connect, Perform) Identify the stage of the rational decision-making process illustrated by the situation. You define a goal of improving your profit margin by at least 15% within one year. 0 Generate alternatives 0 State the situational goal 0 Identify the problem Read this brief case study and answer the question that follows. V CASE STUDY 1' Your candy making company is at a crossroads. You have maxed out your current production capacity, but think that there may be a new opportunity in custom fruity nut caramel clusters that could be very profitable to the company. You think through your options, and decide that you would like to expand your company to include this high potential new product. You identify your financing choices as taking out a bank loan, lending the company your personal funds, or financing the expansion out of current cash in reserve. 0 Choose an alternative 0 Generate alternatives 0 Evaluate alternatives Please match this description with the term or concept that best describes it. Although you thought that paying high performers significantly more than low performers best motivated your employees, when you looked at the data you found that wide disparities in pay actually weakened trust among team members and the social connectivity that contributes to strong team- based decision-making. 0 Choose an alternative 0 Evidencebased management 0 Alternative generation 3. Behavioral aspects of decision-making (Connect, Perform) Use these terms to best complete the following sentences. Use each term no more than once. Administrative model of decision-making Bounded rationality Suboptimizing Satisficing A coalition Intuition Escalation of commitment Risk propensity Prospect theory Simple personal preferences According to we are more motivated to avoid losses than to seek gains. A manager's influences how aggressive the manager is and how much the manager is willing to gamble when making decisions. When you make a decision about an answer on a test without thinking much about it you have probably relied on in making your decision. Use your knowledge of decisionmaking to pick the term which describes the following situation. Not long after you make your decision to hire Ted you think you've made a mistake and question both his job skills and his fit with your team. You really liked him during his interview, though, and decide to coach him for a while instead of ring him. O Escalation of commitment O A coalition 0 Simple personal preferences 0 Bounded rationality Read this brief case study and answer the question that follows. v CASE STUDY c' The time has come to hire a new director for your local grade school's afterschool care program. The town is proud of its schools, and although they do not want to overpay, residents are willing to pay a reasonable salary in hiring and retaining the best staff. You have been put in charge of managing the hiring and training process for the new hire. You identify Mike as the best candidate, but he wants a salary 20% higher than you are willing to pay based on parent feedback and what the previous person in the position was paid. Instead of hiring Mike, you decide to hire Alex instead because he will accept the current salary for the position. 0 Escalation of commitment O Satisficing O Suboptimizing Select the correct labels for the missing spaces in this illustration. Preparation A Incubation A period of less intense conscious concentration B A spontaneous breakthrough to achieve a new understanding Verification A test of the validity or truthfulness of the insightUse your knowledge of the creative process to answer the following question. After thinking about some ideas for a while you decide to go for a walk and think about something else to help the creative process along. 0 Insight O Incubation 0 Preparation Use your knowledge of the creative process to select the word or phrase that best completes the sentence. Many people say that they do their best thinking and come up with their best ideas when exercising. This is an example of Use your knowledge of the creative process to answer the following question. After thinking about some ideas for a while you decide to go for a walk and think about something else to help the creative process along. 0 Insight O Incubation 0 Preparation incubation validation Use your knowledge of the creative process to select the word or phrase that best completes the sentence. preparation Many people say that they do their best thinking and come up with their best ideas when exercising. This is an example of V