Which of the following is a source of bias that can adversely affect the way managers make decisions?Multiple Choicedialectical inquiryescalating commitmentbounded rationalityeconomic feasibilityreasoned judgments
Question
Which of the following is a source of bias that can adversely affect the way managers make decisions?Multiple Choicedialectical inquiryescalating commitmentbounded rationalityeconomic feasibilityreasoned judgments
Solution
The source of bias that can adversely affect the way managers make decisions from the options provided is "escalating commitment".
Here's why:
-
Dialectical Inquiry: This is a method of decision making that requires opposing solutions to a problem to be generated and then debated on their merits. It's not a source of bias.
-
Escalating Commitment: This is a pattern of behavior where an individual or group will continue to rationalize their decisions, actions, and investments when faced with increasingly negative outcomes rather than alter their course. This is a source of bias as it can lead to poor decision making.
-
Bounded Rationality: This is the idea that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. It's not a source of bias, but a limitation.
-
Economic Feasibility: This is a cost and benefit analysis to see if a decision is financially sound. It's not a source of bias.
-
Reasoned Judgments: This is the act of making a decision or forming an opinion through reasoning, understanding and fairness. It's not a source of bias.
Similar Questions
Managers must rely on their ______ to make the best decision when faced with uncertainty and ambiguity.Multiple Choiceescalating commitmentcognitive biasesintuition and judgmentillusion of controlbounded rationality
Which of the following is NOT a common decision-making bias that can affect choice activities?Question 28Answera.Availability biasb.Unanimity biasc.Confirmation biasd.Anchoring bias
_____ are rules of thumb that simplify the decision-making process.Multiple ChoiceCognitive biasesDialectical inquiresIntuitionsHeuristicsReasoned judgments
According to Lovallo and Sibony, which one of the following statements best describes the cognitive bias likely to be exhibited by management when making large and unique decisions: Select one: a. Errors resulting in gains and losses can be expected to cancel out making decisions based on the probability weighted expected outcome optimal. b. Rules of thumb can be learned through repeated experience causing decisions based on a rule of thumb to be unreliable. c. Excessive profit aversion causes individual managers to reject projects otherwise desirable to the organisation as a whole. d. Excessive optimism causes management to overestimate forecasted benefits and underestimate challenges when choosing a strategy.
Which bias occurs when individuals place too much importance on the first piece of information they receive when making decisions?Choices:- Confirmation bias Anchoring bias Overconfidence bias Framing bias
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.