Lesson 2

Question 1

Managers must have….

Answer 1

1. Technological competency
2. Information competency
3. Analytical competency

Question 2

Technological competency:

Answer 2

Ability to understand new technologies and to use them to their best advantage

Question 3

Information competency:

Answer 3

Ability to locate, gather, organize, and display information for decision-making and problem solving

Question 4

Analytical competency:

Answer 4

Ability to evaluate and analyze information to make actual decisions and solve real problems

Question 5

What is useful information?

Answer 5

1. Data (raw facts)
2. Information (data made useful)

Information drives management decision-making

Question 6

Characteristics of useful information:

Answer 6

1. Timely
2. High quality
3. Complete
4. Relevant
5. Understandable

Question 7

Management Information System:

Answer 7

Using the latest technologies to collect, organize, and distribute data

Question 8

Data mining:

Answer 8

The process of analyzing data to produce useful information for decision-makers

Question 9

Big data:

Answer 9

Exists in huge quantities and is difficult to process without sophisticated mathematical and analytical techniques

Question 10

Management analytics:

Answer 10

Involves the systematic evaluation
and analysis of data to make informed decisions

Question 11

Business Intelligence:

Answer 11

Taps information systems to extract and report data in organized ways that are useful to decision-makers

Question 12

Data Visualization:

Answer 12

Visually update and display key performance metrics and information on a real-time basis through executive dashboards

Question 13

Information exchanges with the external environment:

Answer 13

1. Gather intelligence information
2. Provide public information

Question 14

Information exchanges within the organization:

Answer 14

1. Facilitate decision- making
2. Facilitate problem- solving

Question 15

The 5 V’s of Data:

Answer 15

1. Volume
2. Variety
3. Veracity
4. Velocity
5. Value

Question 16

Volume:

Answer 16

Data has to exist in large, like google searches

Question 17

Variety:

Answer 17

Data from social media, news

Question 18

Veracity:

Answer 18

Should be believable and not misleading

Question 19

Velocity:

Answer 19

Should represent what really is happening

Question 20

Value:

Answer 20

Big data have to be worth time/effort

Question 21

Managers as Information Processors:

Answer 21

Continually gather, share, and receive information

Question 22

Internal and external information needs in organizations:

Answer 22

1. External environment - gather intelligence info, provide public info
2. Gather intensive information
3. Provide public information

Question 23

Problem solving:

Answer 23

The process of identifying a discrepancy between actual and desired performance and taking action to resolve it

Question 24

Decision:

Answer 24

A choice among possible alternative courses of action

Question 25

Performance threat:

Answer 25

Something is wrong or has the potential to go wrong

Question 26

Performance opportunity:

Answer 26

Situation offers the chance for a better future if the right steps are taken

Question 27

Problem avoiders:

Answer 27

Inactive in information gathering and solving problems

Question 28

Problem solvers:

Answer 28

Reactive in gathering information and solving problems

Question 29

Problem seekers:

Answer 29

Proactive in anticipating problems and opportunities and taking appropriate action to gain an advantage

Question 30

Systematic thinking:

Answer 30

Approaches problems in a rational, step-by-step, and analytical fashion

Question 31

Intuitive thinking:

Answer 31

Approaches problems in a flexible and spontaneous fashion

Question 32

Multi-dimensional thinking:

Answer 32

Applies both intuitive and systematic thinking (View many problems at once, focused on long-term objectives, flexible to resolve short-term problems)

Question 33

Effective multi-dimensional thinking requires skill at __________

Answer 33

strategic opportunism

Question 34

Structured problems:

Answer 34

Ones that are familiar, straightforward, and clear with respect to information needs

Question 35

Programmed decisions:

Answer 35

Apply solutions that are readily available from past experiences to solve structured problems

Question 36

Unstructured problems:

Answer 36

Ones that are full of ambiguities and information deficiencies

Question 37

Non-programmed decisions apply a specific solution to ________

Answer 37

meet the demands of a unique problem

Question 38

A crisis:

Answer 38

Involves an unexpected problem that can lead to disaster if not resolved quickly and appropriately

Question 39

Rules for crisis management:

Answer 39

1. Figure out what is going on - take time to understand 2. Remember that speed matters - attack it quickly 3. Remember that slow counts too - know when to back off 4. Respect the danger of the unfamiliar - understand the danger 5. Value the sceptic - don't get too comfortable w/agreement 6. Be ready to “fight fire with fire ” - when things go wrong, get creative

Question 40

Certain environment:

Answer 40

Offers complete factual information on possible action alternatives and their consequences

Question 41

Risk environment:

Answer 41

Lacks complete information but offers probabilities of the likely outcomes for possible action alternatives

Question 42

Uncertain environment:

Answer 42

Lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives

Question 43

The Decision-Making Processes:

Answer 43

1. Identify and Define the problem 2. Generate and Evaluate alternative solutions 3. Choose a preferred course of action 4. Implement the decision 5. Evaluate the results

Question 44

What happens in the "Identify and Define the problem" stage:

Answer 44

Focuses on information gathering, information processing, and deliberation

Question 45

What happens in the "Generate and Evaluate alternative courses of action" stage:

Answer 45

Potential solutions are formulated and more information is gathered, data are analyzed, the advantages and disadvantages of alternative solutions are identified

Question 46

What happens in the "Decide on a preferred course of action" stage"

Answer 46

Two different approaches 1. Classical model leads to optimizing decisions 2. Behavioral model leads to satisficing decisions

Question 47

What happens in the "Implement the decision" stage:

Answer 47

Involves taking action to make sure the solution decided upon becomes a reality

Question 48

________________ should be avoided

Answer 48

Lack-of-participation error

Question 49

What happens in the "Evaluate results" stage:

Answer 49

Involves comparing actual and desired results (Positive and negative consequences of chosen course of action should be examined)

Question 50

Availability Bias:

Answer 50

Bases a decision on recent information or events

Question 51

Representativeness Bias:

Answer 51

Bases a decision on similarity to other situations

Question 52

Anchoring and Adjustment Bias:

Answer 52

Bases a decision on incremental adjustment from a prior decision point

Question 53

Framing Error:

Answer 53

Trying to solve a problem in the context perceived, positive or negative

Question 54

Confirmation Error:

Answer 54

Focusing on information that confirms a decision already made

Question 55

Escalating Commitment:

Answer 55

Continuing a course of action even though it is not working