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The tendency to define problems in terms of a preferred solution occurs because:


A) people form preferences for alternatives as soon as they are identified.
B) people want to quickly understand and resolve problems.
C) this avoids the escalation of commitment problem.
D) all of the above.
E) only 'A' and 'B'.

F) A) and E)
G) B) and C)

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Decision making is an unconscious process of moving toward a desirable state of affairs.

A) True
B) False

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Which of these is NOT a reason contributing to escalation of commitment?


A) Self justification
B) Prospect theory effect
C) Perceptual blinders
D) Closing costs
E) Implicit favorites

F) C) and D)
G) D) and E)

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Associative play, morphological analysis, and cross-pollination are three strategies to:


A) increase group polarization.
B) apply brainstorming more exactly as originally described by Osborn.
C) increase conformity to peer pressure.
D) improve creativity.
E) make the problem-finding stage of decision making less emotional.

F) None of the above
G) B) and E)

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If employee goals and norms conflict with the organization's goals, then:


A) employees should make most decisions in the organization.
B) employees should be invited to make recommendations on important ideas, which are almost always accepted by management.
C) employees should never be involved in organizational decisions.
D) employees should have a low level of employee involvement.
E) employees should belong to self-directed work teams.

F) A) and D)
G) C) and E)

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Post-decisional justification gives people an excessively optimistic evaluation of their decisions, until they receive very clear and undeniable information to the contrary.

A) True
B) False

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Intuition is based on mental templates or models representing tacit knowledge about a situation.

A) True
B) False

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The rational choice paradigm states that effective decision makers begin at any step in the model.

A) True
B) False

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After Crispy Foods Ltd.had poured millions of dollars into the development of a new machine-made potato chip (a product that appeared to be a failing endeavor early in the development process), the Board of Directors of the food-processing firm fired the CEO who had proposed and championed the product's continued development.The new CEO's first task is to find out why this monumental waste of money had occurred and how it can be prevented in the future.Describe two procedures that the new CEO at Crispy Foods Ltd.can implement that will prevent or minimize this type of escalation of commitment in the future.Be sure to write your referring to this specific incident.

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There are several ways to minimize the r...

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Incubation is a unique activity in organizational settings for increasing creativity.Describe this stage of creativity and explain what employees need to do to improve the incubation process.

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Incubation is the stage of reflective th...

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Establishing a preset level at which the decision is abandoned or re-evaluated is recommended mainly to:


A) minimize reliance on an implicit favorite.
B) avoid relying on mental models to recognize problems or opportunities.
C) minimize escalation of commitment.
D) minimize problem identification.
E) reduce the incidence of satisficing.

F) A) and B)
G) A) and D)

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People are creative because they work in creative environments, not because of any differences in their ability or personality.

A) True
B) False

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The concept of bounded rationality holds that:


A) our perception of a rational reality is bounded by non rationality.
B) decision makers process limited and imperfect information and therefore rarely select the best choice.
C) decision makers are "bounded" by organizational limitations.
D) decision makers are bound to project images of themselves as rational thinkers.
E) our realities are bounded by our own perceptions so that everyone's reality is different.

F) A) and B)
G) C) and D)

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Employee involvement is LESS valuable or successful when:


A) decisions are programmed.
B) employees are committed to decisions made by their bosses.
C) employees have the same information as their bosses.
D) employee norms conflict with organizational goals.
E) all of the above conditions exist.

F) A) and C)
G) D) and E)

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In the creative process, insight:


A) produces a well-developed and tested solution to problems.
B) follows the verification stage.
C) almost always occurs at night, rarely during the daytime.
D) is the opposite of divergent thinking.
E) None of these statements is correct.

F) B) and D)
G) All of the above

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Our mental models of the world can prevent us from recognizing emerging problems in the workplace.

A) True
B) False

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Mental models have what effect on the decision-making process?


A) They perpetuate assumptions that make it difficult to see new opportunities.
B) They cause production blocking in decision making.
C) They make it unnecessary to develop alternative solutions to the problem.
D) They cause decision makers to maximize rather than satisfice.
E) They help people to be more creative in decision making.

F) C) and E)
G) A) and B)

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Incubation is the stage of creativity in which the problem is simmering at the back of your mind while you are doing something else.

A) True
B) False

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Prospect theory and closing costs are two reasons why people:


A) engage in escalation of commitment.
B) define problems in terms of preferred solutions.
C) make non-programmed decisions rather than programmed decisions.
D) engage in satisficing.
E) encourage employee involvement.

F) A) and B)
G) B) and E)

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Creativity occurs by redefining the problem, not just by finding a unique solution to the existing problem.

A) True
B) False

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