ORGB364 - Chapter 7 - Decision-Making and
Creativity Exam Questions With Verified
Answers
Define decision making
is the process of making choices among alternatives with the intention of moving toward some
desired state of affairs.
define rational choice decision making
the process of using pure logic and all available information about alternatives to choose the
alternative with the highest value.
How does rational decision making work?
a formula is used to determine the best alternative by calculating the probability that various
outcomes will occur from the choices and the expected satisfaction (valences) from each of those
outcomes.
What are the six steps in the rational choice decision process?
1. identify problem or opportunity
2. choose the best decision process
3. discover or develop possible choices
4. select the choice with the highest value
5. implement the selected choice
6. evaluate the selected choice
What are five of the concerns with problem identification?
1. solution-focused problems
2. decisive leadership
3. Stakeholder framing (stakeholders hiding information to influence decision maker to see as
problem opportunity, or nothing to worry about)
4. perceptual defense (decision makers either fail to recognize or quickly forget information that
threatens the situation)
5. mental models
What are three concerns with evaluating or choosing from alternatives?
1. problems with goals (rational choice view assumes that organizational goals are clear and agreed
upon, yet in reality, they are often ambiguous or in conflict with each other)
2. problems with information processing (people sequentially (not all at the same time) evaluate only
a few alternatives and only a handful of characteristics)
3. problems with maximization (rather than aiming for maximization, people engage in satisficing -
they choose the first alternative that exceeds a standard of acceptance for their needs and
preferences)
In what three ways do emotions affect the evaluation of alternatives?
1. emotions form early preferences (the emotional marker process described earlier in this book
shapes our preferences for alternatives before we consciously evaluate them)
2. emotions change the decision-evaluation process (moods and specific emotions influence the
process of evaluating alternatives)
3. emotions serve as information when we evaluate alternatives (this refers to the idea that we listen
in on our emotions to acquire guidance when making choices)
Creativity Exam Questions With Verified
Answers
Define decision making
is the process of making choices among alternatives with the intention of moving toward some
desired state of affairs.
define rational choice decision making
the process of using pure logic and all available information about alternatives to choose the
alternative with the highest value.
How does rational decision making work?
a formula is used to determine the best alternative by calculating the probability that various
outcomes will occur from the choices and the expected satisfaction (valences) from each of those
outcomes.
What are the six steps in the rational choice decision process?
1. identify problem or opportunity
2. choose the best decision process
3. discover or develop possible choices
4. select the choice with the highest value
5. implement the selected choice
6. evaluate the selected choice
What are five of the concerns with problem identification?
1. solution-focused problems
2. decisive leadership
3. Stakeholder framing (stakeholders hiding information to influence decision maker to see as
problem opportunity, or nothing to worry about)
4. perceptual defense (decision makers either fail to recognize or quickly forget information that
threatens the situation)
5. mental models
What are three concerns with evaluating or choosing from alternatives?
1. problems with goals (rational choice view assumes that organizational goals are clear and agreed
upon, yet in reality, they are often ambiguous or in conflict with each other)
2. problems with information processing (people sequentially (not all at the same time) evaluate only
a few alternatives and only a handful of characteristics)
3. problems with maximization (rather than aiming for maximization, people engage in satisficing -
they choose the first alternative that exceeds a standard of acceptance for their needs and
preferences)
In what three ways do emotions affect the evaluation of alternatives?
1. emotions form early preferences (the emotional marker process described earlier in this book
shapes our preferences for alternatives before we consciously evaluate them)
2. emotions change the decision-evaluation process (moods and specific emotions influence the
process of evaluating alternatives)
3. emotions serve as information when we evaluate alternatives (this refers to the idea that we listen
in on our emotions to acquire guidance when making choices)
