MGMT 2103 LATEST FINALS ANSWERS AND
QUESTIONS SET A+
✔✔Distributive bargining - ✔✔Win-lose. Any gain on one side is at the expense of the
other
✔✔Interactive bargining - ✔✔Win-win. Operates under assumption that there are more
than one ways to create a win-win solution. Preferable because it makes long-term
relationships, usually in teams
✔✔Five steps of the added-value negotiation process - ✔✔1) Clarify interests
2) Identify options
3) Design alternative deal packages
4) Select a deal
5) Perfect the deal
✔✔Ideal emotions - ✔✔How do you want to feel going into the negotiation
✔✔Managing emotions - ✔✔What can you do in advance to put yourself in the ideal
emotional state
✔✔Hot buttons - ✔✔What can throw you off balance
✔✔Keeping Balance - ✔✔How will you regain balance if lost
✔✔Emotions after - ✔✔How do you want to feel when you're finished
✔✔Decision making - ✔✔Identifying and choosing alternative solutions that lead to a
desired state of affairs
✔✔The rational decision making process - ✔✔Stage 1: identify the problem or
opportunity
Stage 2: generate alternative solutions
,Stage 3: evaluate alternatives and select a solution
Stage 4: implement and evaluate the solution
✔✔Normative model - ✔✔decision makers have constraints
i. Personal characteristics and lack of internal or external resources
ii. Result in tendency to acquire manageable rather than optimal amounts of information
iii. Leads to satisfying a solution that is good enough
✔✔Intuition model - ✔✔judgments, incite, and decisions that come to mind on their own
i. Foundations
1. Expertise: tacit and explicit knowledge
2. Feelings
ii. Process
1. Intuitive processes:
a. Expertise is automatic, involuntary, and effortless
b. Feelings are controlled, voluntary, and effortful
✔✔Bounded rationality - ✔✔Decisions are bounded or restricted by a variety of
constraints when making decisions
✔✔Intuition - ✔✔Judgments, insights, or decisions that come to mind on their own,
without explicit awareness of the evoking cues and without explicit evaluation of the
validity of these cues
✔✔Tacit knowledge - ✔✔Information gained through experience that is difficult to
express and formalize
✔✔Explicit Knowledge - ✔✔Information that can easily be put into words
✔✔Conformation bias - ✔✔Decision maker subconsciously decided something; seeks
information that supports that decision and discounts info that doesn't
✔✔Overconfidence bias - ✔✔When you are given factual questions and asked to judge
the probability that our answers are correct, we tend to be too optimistic
✔✔Availability bias - ✔✔Tendency to base decisions on information readily available in
memory
✔✔Representativeness bias - ✔✔Reflects tendency to assess the likelihood of an event
occurring based on one's impressions about similar occurrences
✔✔Anchoring bias - ✔✔Occurs when decision makers are influenced by the first info
received about a decision, even if it's not relevant; effects everyone
, ✔✔Hindsight bias - ✔✔Happens when we know the outcome and that makes us think
that we could have predicted an outcome earlier
✔✔Framing bias - ✔✔Related to the way the question/message is said
✔✔Escalation of commitment bias - ✔✔Tendency to stick to an ineffective course of
action when it's unlikely the bad situation can be reversed
✔✔Evidence-based decision making - ✔✔Process of conscientiously using the best
available data and evidence when making managerial decisions (make decision, inform
decision, support decision)
✔✔Big data - ✔✔Reflects the large quantity of data available for decision making used
to create a competitive advantage
✔✔Group decision making - ✔✔a. Advantages: greater pool of knowledge, different
approaches to a problem, greater commitment to a decision, better understanding of
decision rationale, more visible role modeling
b. Disadvantages: social pressure, few people dominate, goal displacement, Groupthink
✔✔Groupthink - ✔✔Mode of thinking when people are in a cohesive in-group; want
unanimity so overlook other possibly better ways of doing things
✔✔Symptoms of Groupthink - ✔✔Invulnerability. Inherent morality. Rationalization.
Stereotyped views of opposition. Self-censorship. Illusion of unanimity. Peer pressure.
Mindguards.
✔✔Brainstorming - ✔✔Used to help generate multiple ideas and alternatives for solving
problems; defer judgment, build on ideas of others, encourage wild ideas, go for
quantity or quality, be visual, stay focused, one conversation at a time
✔✔Delphi technique - ✔✔Anonymously generates ideas or judgments from physically
dispersed experts
✔✔Decision support systems (DSS) - ✔✔Computer-based interactive systems that help
decision makers use data and models to solve unstructured problems
✔✔Position power - ✔✔Legitimate, reward, coercive
✔✔Legitimate power - ✔✔Power is derived from a position of authority inside the
organization and is sometimes referred to as a formal authority
✔✔Reward power - ✔✔Exists when someone has control over the resources or rewards
another person wants; obtains compliance by promising/granting rewards
QUESTIONS SET A+
✔✔Distributive bargining - ✔✔Win-lose. Any gain on one side is at the expense of the
other
✔✔Interactive bargining - ✔✔Win-win. Operates under assumption that there are more
than one ways to create a win-win solution. Preferable because it makes long-term
relationships, usually in teams
✔✔Five steps of the added-value negotiation process - ✔✔1) Clarify interests
2) Identify options
3) Design alternative deal packages
4) Select a deal
5) Perfect the deal
✔✔Ideal emotions - ✔✔How do you want to feel going into the negotiation
✔✔Managing emotions - ✔✔What can you do in advance to put yourself in the ideal
emotional state
✔✔Hot buttons - ✔✔What can throw you off balance
✔✔Keeping Balance - ✔✔How will you regain balance if lost
✔✔Emotions after - ✔✔How do you want to feel when you're finished
✔✔Decision making - ✔✔Identifying and choosing alternative solutions that lead to a
desired state of affairs
✔✔The rational decision making process - ✔✔Stage 1: identify the problem or
opportunity
Stage 2: generate alternative solutions
,Stage 3: evaluate alternatives and select a solution
Stage 4: implement and evaluate the solution
✔✔Normative model - ✔✔decision makers have constraints
i. Personal characteristics and lack of internal or external resources
ii. Result in tendency to acquire manageable rather than optimal amounts of information
iii. Leads to satisfying a solution that is good enough
✔✔Intuition model - ✔✔judgments, incite, and decisions that come to mind on their own
i. Foundations
1. Expertise: tacit and explicit knowledge
2. Feelings
ii. Process
1. Intuitive processes:
a. Expertise is automatic, involuntary, and effortless
b. Feelings are controlled, voluntary, and effortful
✔✔Bounded rationality - ✔✔Decisions are bounded or restricted by a variety of
constraints when making decisions
✔✔Intuition - ✔✔Judgments, insights, or decisions that come to mind on their own,
without explicit awareness of the evoking cues and without explicit evaluation of the
validity of these cues
✔✔Tacit knowledge - ✔✔Information gained through experience that is difficult to
express and formalize
✔✔Explicit Knowledge - ✔✔Information that can easily be put into words
✔✔Conformation bias - ✔✔Decision maker subconsciously decided something; seeks
information that supports that decision and discounts info that doesn't
✔✔Overconfidence bias - ✔✔When you are given factual questions and asked to judge
the probability that our answers are correct, we tend to be too optimistic
✔✔Availability bias - ✔✔Tendency to base decisions on information readily available in
memory
✔✔Representativeness bias - ✔✔Reflects tendency to assess the likelihood of an event
occurring based on one's impressions about similar occurrences
✔✔Anchoring bias - ✔✔Occurs when decision makers are influenced by the first info
received about a decision, even if it's not relevant; effects everyone
, ✔✔Hindsight bias - ✔✔Happens when we know the outcome and that makes us think
that we could have predicted an outcome earlier
✔✔Framing bias - ✔✔Related to the way the question/message is said
✔✔Escalation of commitment bias - ✔✔Tendency to stick to an ineffective course of
action when it's unlikely the bad situation can be reversed
✔✔Evidence-based decision making - ✔✔Process of conscientiously using the best
available data and evidence when making managerial decisions (make decision, inform
decision, support decision)
✔✔Big data - ✔✔Reflects the large quantity of data available for decision making used
to create a competitive advantage
✔✔Group decision making - ✔✔a. Advantages: greater pool of knowledge, different
approaches to a problem, greater commitment to a decision, better understanding of
decision rationale, more visible role modeling
b. Disadvantages: social pressure, few people dominate, goal displacement, Groupthink
✔✔Groupthink - ✔✔Mode of thinking when people are in a cohesive in-group; want
unanimity so overlook other possibly better ways of doing things
✔✔Symptoms of Groupthink - ✔✔Invulnerability. Inherent morality. Rationalization.
Stereotyped views of opposition. Self-censorship. Illusion of unanimity. Peer pressure.
Mindguards.
✔✔Brainstorming - ✔✔Used to help generate multiple ideas and alternatives for solving
problems; defer judgment, build on ideas of others, encourage wild ideas, go for
quantity or quality, be visual, stay focused, one conversation at a time
✔✔Delphi technique - ✔✔Anonymously generates ideas or judgments from physically
dispersed experts
✔✔Decision support systems (DSS) - ✔✔Computer-based interactive systems that help
decision makers use data and models to solve unstructured problems
✔✔Position power - ✔✔Legitimate, reward, coercive
✔✔Legitimate power - ✔✔Power is derived from a position of authority inside the
organization and is sometimes referred to as a formal authority
✔✔Reward power - ✔✔Exists when someone has control over the resources or rewards
another person wants; obtains compliance by promising/granting rewards
