MGMT 2103 EXAMS COMPREHENSIVE ANSWERS
AND QUESTIONS SET A+
✔✔Tacit Knowledge - ✔✔Knowledge that is difficult to transfer to another person by
means of writing it down or verbalizing it
✔✔Holistic Hunch - ✔✔A judgement that is based on a subconscious integration stored
in memory
✔✔Automated Experiences - ✔✔Represents a choice that is based on a subconscious
application of previously learned information related to the situation
✔✔Insight - ✔✔Gained knowledge that you can analyze and make inferences
✔✔Instinct - ✔✔Inborn pattern of behavior often responsive to stimuli
✔✔Pros of Non-Rational Decision Making - ✔✔- Useful with limited resources
- Quicker decision making
✔✔Cons of Non-Rational Decision Making - ✔✔- Good ideas may be ignored
- Subject to bias
✔✔Judgmental Heuristics (Rules of Thumb) - ✔✔Cognitive shortcuts or biases that are
used to simplify the process of making decisions
✔✔Confirmation Bias - ✔✔The decision maker subconsciously decides something
before investigating if it is the right decision. Seeks info that supports decision and
ignores info that does not.
✔✔Overconfidence Bias - ✔✔Being overconfident about estimates or forecasts
✔✔Availability Bias - ✔✔Basing decisions only on readily available information
, ✔✔Representative Bias - ✔✔Estimating the probability of an event occurring based on
one's impressions of similar situations
✔✔Anchoring Bias - ✔✔Being influenced by the first information that is received, even if
its irrelevant
✔✔Hindsight Bias - ✔✔Occurs when knowledge of an outcome influences your belief
about the probability that we could have predicted the outcome earlier
✔✔Framing Bias - ✔✔Relates to the manner in which a question is posed or framed
✔✔Escalation of Commitment Bias - ✔✔The tendency to stick to an ineffective course
of action when it is unlikely that the bad situation can be reversed
✔✔Evidence Based Decision Making - ✔✔Process of conscientiously using the best
available data and evidence when making managerial decisions
✔✔Big Data - ✔✔Reflects the vast quantity of data available for decision making used
to create a competitive advantage
✔✔Advantages of Group Decision Making - ✔✔- Greater pool of knowledge
- Different approaches to a problem
- Greater commitment to a decision
- Better understanding of a decision rationale
- More visible role modeling
✔✔Disadvantages of Group Decision Making - ✔✔- Social pressure
- Few people dominate
- Goal displacement
- Groupthink
✔✔Groupthink - ✔✔A mode of thinking people engage in when they are deeply involved
in a cohesive group and striving for unanimity which overlooks alternative courses of
action.
✔✔Symptoms of Groupthink - ✔✔Invulnerability
Inherent Morality
Rationalization
Stereotypes
Self-censorship
Illusion of unanimity
Peer Pressure
Mindguards
✔✔Invulnerability - ✔✔Illusion that breeds excessive optimism and risk taking
AND QUESTIONS SET A+
✔✔Tacit Knowledge - ✔✔Knowledge that is difficult to transfer to another person by
means of writing it down or verbalizing it
✔✔Holistic Hunch - ✔✔A judgement that is based on a subconscious integration stored
in memory
✔✔Automated Experiences - ✔✔Represents a choice that is based on a subconscious
application of previously learned information related to the situation
✔✔Insight - ✔✔Gained knowledge that you can analyze and make inferences
✔✔Instinct - ✔✔Inborn pattern of behavior often responsive to stimuli
✔✔Pros of Non-Rational Decision Making - ✔✔- Useful with limited resources
- Quicker decision making
✔✔Cons of Non-Rational Decision Making - ✔✔- Good ideas may be ignored
- Subject to bias
✔✔Judgmental Heuristics (Rules of Thumb) - ✔✔Cognitive shortcuts or biases that are
used to simplify the process of making decisions
✔✔Confirmation Bias - ✔✔The decision maker subconsciously decides something
before investigating if it is the right decision. Seeks info that supports decision and
ignores info that does not.
✔✔Overconfidence Bias - ✔✔Being overconfident about estimates or forecasts
✔✔Availability Bias - ✔✔Basing decisions only on readily available information
, ✔✔Representative Bias - ✔✔Estimating the probability of an event occurring based on
one's impressions of similar situations
✔✔Anchoring Bias - ✔✔Being influenced by the first information that is received, even if
its irrelevant
✔✔Hindsight Bias - ✔✔Occurs when knowledge of an outcome influences your belief
about the probability that we could have predicted the outcome earlier
✔✔Framing Bias - ✔✔Relates to the manner in which a question is posed or framed
✔✔Escalation of Commitment Bias - ✔✔The tendency to stick to an ineffective course
of action when it is unlikely that the bad situation can be reversed
✔✔Evidence Based Decision Making - ✔✔Process of conscientiously using the best
available data and evidence when making managerial decisions
✔✔Big Data - ✔✔Reflects the vast quantity of data available for decision making used
to create a competitive advantage
✔✔Advantages of Group Decision Making - ✔✔- Greater pool of knowledge
- Different approaches to a problem
- Greater commitment to a decision
- Better understanding of a decision rationale
- More visible role modeling
✔✔Disadvantages of Group Decision Making - ✔✔- Social pressure
- Few people dominate
- Goal displacement
- Groupthink
✔✔Groupthink - ✔✔A mode of thinking people engage in when they are deeply involved
in a cohesive group and striving for unanimity which overlooks alternative courses of
action.
✔✔Symptoms of Groupthink - ✔✔Invulnerability
Inherent Morality
Rationalization
Stereotypes
Self-censorship
Illusion of unanimity
Peer Pressure
Mindguards
✔✔Invulnerability - ✔✔Illusion that breeds excessive optimism and risk taking
