Problem Solving & Decision Making Flashcards

A manager uses 'satisficing' when making a decision. What does this mean?

Answer: Choosing the first option that meets a minimum acceptable threshold

Satisficing, coined by Herbert Simon, means selecting the first solution that is 'good enough' rather than searching for the optimal one.

Which analytical tool maps the probability and financial impact of different decision outcomes in a tree-like structure?

Answer: Decision tree

A decision tree visually represents choices, chance events, and their associated probabilities and payoffs to guide complex decisions.

A cross-functional team consistently avoids challenging the group's consensus to maintain harmony. This is an example of:

Answer: Groupthink

Groupthink occurs when the desire for cohesion overrides critical evaluation, leading to poor decision quality.

In force field analysis, 'restraining forces' are best described as:

Answer: Barriers that resist or hinder change

Restraining forces in Lewin's force field analysis are the obstacles and resistances that work against a proposed change.

Which problem-solving approach involves generating a large number of ideas without immediate judgment or criticism?

Answer: Brainstorming

Brainstorming defers judgment to maximize the quantity and diversity of ideas generated before evaluation begins.

A company continues investing in a failing project because of money already spent. This is an example of:

Answer: Sunk cost fallacy

The sunk cost fallacy causes decision-makers to irrationally factor in past unrecoverable costs when evaluating future actions.

What is the primary purpose of conducting a post-decision audit in management?

Answer: To evaluate decision quality and learn for future improvement

Post-decision audits compare actual outcomes to expected results, enabling organizational learning and improved future decision-making.