Chapter06

Essentials of Organizational Behavior, 14e (Robbins/Judge)Chapter 6
Perception and Individual Decision Making1) ________ is the process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.A) Cognitive dissonanceB) Environmental analysisC) Social verificationD) Emotional laborE) PerceptionAnswer:  EExplanation:  E) Perception is defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. People’s behavior is based on their perception of what reality is, not on reality itself. What we perceive can be substantially different from objective reality.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.2) Two people see the same thing at the same time yet interpret it differently. In this situation, factors that operate to shape their dissimilar perceptions reside in the ________.A) perceiversB) targetC) timingD) contextE) situationAnswer:  AExplanation:  A) Because the target and the situation are the same, the difference in perception must be in the perceivers themselves. Characteristics that can affect perception include perceiver attitudes, personality, motives, interests, past experiences, and expectations.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.3) When neither the perceiver nor the target has changed, which of the following factors influences perception?A) self-serving biasB) stereotypingC) satisficingD) selective perceptionE) situationAnswer:  EExplanation:  E) The factors that influence perception reside in the perceiver, the target, and the situation. The time at which we see an object or event can influence our attention, as can location, light, heat, or any number of situational factors.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.4) Which of the following statements is true regarding perception?A) Our perception of reality is independent of our personality.B) The context of the situation in which the perception is made has little effect on our perception of reality.C) Our perception of reality can be different from the objective reality.D) Our perception of reality is independent of our past experiences.E) We form a perception of a target by looking at it in isolation.Answer:  CExplanation:  C) Our perception of reality can be different from the objective reality. Our perception of reality is affected by our personality, past experiences and the context of the situation in which the perception is made. We do not look at targets in isolation.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.5) Sarah and Holly started working at a Human Resources firm as recruiters on the same day and have the same position. Both women have been meeting their placement goals and are both very well liked within the organization. Because Holly lives almost 60 miles away, she sometimes works 9-6 to avoid traffic rather than the 8-5 that Sarah works. Johnson, their supervisor, awarded Sarah the “Employee of the Month” award for her outstanding work. Which influence of perception is at work in this situation?A) perceiver: Johnson thinks because Holly arrives at 9 that she must not be working a full dayB) perceiver: Holly thinks she is entitled to special privilege because she is meeting her goalsC) target: Sarah arrives on time so people think she is doing her job better than HollyD) situation: Since the office opens at 8, Sarah is more conscientious than HollyE) situation: Since Holly travels the farthest, she is actually more dedicated than SarahAnswer:  AExplanation:  A) Even though both women are doing their job the same, Johnson, the perceiver, sees that Sarah is at work at 8 and thus perceives that she is more dedicated than Holly.Diff: 3AACSB:  Application of knowledgeQuest. Category:  AnalyticalLO:  6.1 Explain the factors that influence perception.6) On the first day of class, you came dressed in a business suit while the remainder of your classmates came dressed in casual clothing or their workout clothes. All semester you have noticed that your professor always seems to talk to you before or after class and that you always seem to get a little more feedback on your papers than your classmates. Why is this?A) Your professor is hitting on you.B) Your professor thinks you are a more serious student.C) Your professor feels sorry for you because you are a social outcast.D) You are sucking up to your professor.E) There is no theoretical explanation for this.Answer:  BExplanation:  B) Sometimes differences can work in our favor, though, such as when we are drawn to targets that are different from what we expect. In this case, a student who dresses nicely is perceived to be more serious about their education.Diff: 2AACSB:  Reflective thinkingQuest. Category:  AnalyticalLO:  6.1 Explain the factors that influence perception.7) Our perception of reality can be substantially different from objective reality.Answer:  TRUEExplanation:  Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. However, what we perceive can be substantially different from objective reality.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.8) Our perception of a target is affected by the characteristics of the target and not by our personality and past experiences.Answer:  FALSEExplanation:  Our perception of a target is affected by the characteristics of the target, by our personality and past experiences, and by the situation.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.9) People are not that perceptive about their own abilities.Answer:  TRUEExplanation:  People are usually not aware of the factors that influence their view of reality.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.10) What factors that operate to shape and sometimes distort perception reside in the perceiver, what factors reside in the target being perceived, and what factors reside in the context of the situation in which the perception is made?Answer:  A number of factors operate to shape and sometimes distort perception. These factors can reside in the perceiver, in the object or target being perceived, or in the context of the situation in which the perception is made. When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily influenced by personal characteristics of the individual perceiver. Personal characteristics affecting perception include his or her attitudes, personality, motives, interests, past experiences, and expectations. Characteristics of the target being observed can affect what is perceived. The relationship of a target to its background influences perception, as does our tendency to group close things and similar things together. The context in which we see objects or events is also important. The time at which an object or event is seen can influence attention, as can location, light, heat, or any number of other factors.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.1 Explain the factors that influence perception.11) David is of the opinion that people who drive SUVs are dangerous drivers. He often thinks that people driving SUVs are driving rashly, even when other observers can see nothing wrong with the behavior of the SUV drivers. What factor is affecting his perception in this case?A) his interestsB) his personalityC) his expectationsD) his motivesE) his attitudeAnswer:  CExplanation:  C) David expects all SUV drivers to be dangerous. His expectations are what color his perception. The example doesn’t explain why he expects this, although it could be from a previous bad experience.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.12) Loud people are more likely to be noticed in a group than quiet ones. So, too, are extremely attractive or unattractive individuals. Which of the following statements best explains the reason behind this fact?A) Our perception of reality depends on our past experiences.B) Our perception of reality depends on our personality.C) The relationship of a target to its background influences our perception of the target.D) The time at which we see an object can influence our perception of the object.E) Our motives and expectations affect our perception of a target.Answer:  CExplanation:  C) Characteristics of the target we observe can affect what we perceive. Because we don’t look at targets in isolation, the relationship of a target to its background influences our perception of the target.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.13) Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. That determination, however, depends largely on three factors. Which of the following is one of these three factors?A) stereotypingB) consistencyC) anchoringD) rationalityE) intuitionAnswer:  BExplanation:  B) Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. That determination, however, depends largely on three factors. These three factors are (1) distinctiveness, (2) consensus, and (3) consistency.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.14) ________ theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior.A) ERGB) Hierarchy of needsC) Acquired needsD) AttributionE) Two factorAnswer:  DExplanation:  D) Attribution theory is an attempt to determine whether an individual’s behavior is internally or externally caused. We judge people differently, depending on the meaning we attribute to a given behavior. Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.15) Which of the following is an example of externally caused behavior?A) An employee is late to work because he was partying late and overslept.B) An employee is late because of a flat tire.C) An employee was fired because he violated a company policy.D) An employee was promoted because he was hard working.E) An employee died from lung cancer after excessive tobacco use.Answer:  BExplanation:  B) Externally caused behavior is what we imagine the situation forced the individual to do. If an employee is late for work, and you attribute his arriving late to an automobile accident or a flat tire, then you are making an external attribution.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.16) With reference to the attribution theory, which of the following terms indicates the extent to which an individual displays different behaviors in different situations?A) continuityB) integrityC) stabilityD) flexibilityE) distinctivenessAnswer:  EExplanation:  E) Distinctiveness is one of three determining factors that contribute to attribution theory perceptions. Distinctiveness refers to whether or not an individual displays different behaviors in different situations.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.17) According to the attribution theory, if a behavior scores ________, we tend to attribute it to external causes.A) low on distinctivenessB) high on adaptabilityC) low on consistencyD) high on stabilityE) low on consensusAnswer:  CExplanation:  C) Consistency indicates if the person responds the same way over time. The less consistent the behavior over time, the more we are inclined to attribute it to external causes.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.18) Attribution theory uses three factors to determine if a person’s behavior is caused internally or externally. One of these three factors is consensus. It indicates if ________.A) the person has high propensity to defer to othersB) the individual displays different behaviors in different situationsC) everyone who faces a similar situation responds in the same wayD) the individual responds the same way over timeE) the person scores high on conscientiousnessAnswer:  CExplanation:  C) If everyone who faces a similar situation responds in the same way, we can say the behavior shows consensus. If consensus for a behavior is high, we tend to consider it as an externally caused behavior.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.19) Randy always turns in reports with punctuation errors. The reports of the three other employees on the QA report writing team always produce grammatically clean reports. Randy is about to turn in another report, and his manager has already noticed errors. Randy demonstrates ________. His sloppy reports can be attributed to an ________ cause.A) low distinctiveness, low consensus, and high consistency; internalB) high distinctiveness, low consensus, and high consistency; externalC) low distinctiveness, high consensus, and high consistency; internalD) low distinctiveness, low consensus, and high consistency; externalE) high distinctiveness, high consensus, and high consistency; internalAnswer:  AExplanation:  A) Randy’s behavior is not different from previous behavior, demonstrating low distinctiveness. His reports are different from the other reports of the team, showing low consensus. His next report is the same as his previous work, showing high consistency of poor work quality. Therefore, Randy’s poor work could be perceived as coming from an internal cause, probably his own carelessness and lack of conscientious work ethic.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.20) Janice is late for work each day by about ten minutes. How would the attribution theory describe this behavior?A) It shows consensus.B) It shows similarity.C) It shows reliability.D) It shows consistency.E) It shows distinctiveness.Answer:  DExplanation:  D) Consistency in a person’s actions means that the person responds the same way over time to the same situation. An employee who hasn’t been late for several months is perceived differently than an employee who is late two or three times a week. Janice demonstrates high consistency in tardiness.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.21) According to the attribution theory, if a behavior scores ________, we tend to attribute it to internal causes.A) low on consistencyB) high on traceabilityC) low on distinctivenessD) high on consensusE) low on flexibilityAnswer:  CExplanation:  C) Distinctiveness refers to whether an individual displays different behaviors in different situations. According to the attribution theory, if a behavior scores low on distinctiveness, we tend to attribute it to internal causes. The attribution theory does not take into consideration traceability and flexibility.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.22) Which of the following terms best describes the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others?A) fundamental attribution errorB) halo effectC) selective perceptionD) overconfidenceE) randomness errorAnswer:  AExplanation:  A) Errors and biases distort attributions. When a person makes judgments about the behavior of other people, he tends to underestimate the influence of external factors and overestimate the influence of internal or personal factors. This is called the fundamental attribution error.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.23) ________ indicates the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors.A) Fundamental attribution errorB) Self-serving biasC) Distinction biasD) Selective perceptionE) StereotypingAnswer:  BExplanation:  B) Individuals and organizations tend to attribute their own successes to internal factors such as ability or effort, and place the blame for failure on external factors such as bad luck or unproductive coworkers. This is called a self-serving bias.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.24) Whenever Jane is successful she takes full credit for her success, but whenever she is unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guilty of the ________.A) fundamental attribution errorB) attribution biasC) confirmation biasD) distinction biasE) self-serving biasAnswer:  EExplanation:  E) Individuals and organizations tend to attribute their own successes to internal factors such as ability or effort, and place the blame for failure on external factors such as bad luck or unproductive coworkers. This is called a self-serving bias.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.25) We use a number of shortcuts when we judge others. All of the following are shortcuts that we use to judge others except ________.A) stereotypingB) the halo effectC) the contrast effectD) the self-serving biasE) selective perceptionAnswer:  DExplanation:  D) Self-serving bias, the tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors, is not included in the shortcuts for judging people.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.26) Because it is impossible for us to assimilate everything we see, we engage in ________.A) selective perceptionB) cognitive dissonanceC) self-serving biasD) emotional laborE) fundamental attribution errorAnswer:  AExplanation:  A) Selective perception occurs because it is impossible for a person to assimilate everything he sees; he can take in only certain stimuli. Any characteristic that makes a person, an object, or an event stand out will increase the probability we will perceive it.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.27) Your boss never gives you the benefit of the doubt. When you arrived late from lunch, he assumed that you had simply taken too much time. He never considered that the elevators were not working that day and the fact that you had to walk up 10 flights of stairs. Your boss is guilty of ________.A) a self-serving biasB) selective perceptionC) the fundamental attribution errorD) inconsistencyE) stereotypingAnswer:  CExplanation:  C) Your boss has underestimated the influence of external factors and overestimated the influence of internal or personal factors. He is sure that your late arrival is caused by your own efforts, or lack thereof. This is called the fundamental attribution error.Diff: 3AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.28) William believes Ronnie is a hardworking individual because Ronnie always dresses nicely and wears well-tailored suits. Which short-cut is William using to judge Ronnie?A) contrast effectB) self-serving biasC) framing effectD) halo effectE) impact biasAnswer:  DExplanation:  D) When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.29) Allison has just presented her paper and has done a really good job. Why should you not want to present your own paper directly after she does?A) to avoid the stereotyping effectB) to avoid the halo effectC) to avoid the contrast effectD) to avoid the projection effectE) to avoid the fundamental attribution errorAnswer:  CExplanation:  C) With the contrast effect, evaluation of a person’s characteristics is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Since Allison has just presented a very good paper, the next person would need to be as good as her, or he would be more negatively judged than if he had presented after someone presenting an average paper.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.30) You have heard that the teacher believes that men perform better in oral presentations than women. What shortcut has the teacher used in this case?A) the halo effectB) the contrast effectC) the hindsight biasD) stereotypingE) the self-serving biasAnswer:  DExplanation:  D) When a person engages in stereotyping, they are judging someone on the basis of one’s perception of the group to which that person belongs. The teacher is judging all the presenters by their gender group.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.31) Jennifer has already presented two excellent reports. The third report she has just presented is clearly not as good as the first two reports, yet she is given the same high grade as before. What shortcut has the teacher used in this case?A) the contrast effectB) the halo effectC) stereotypingD) the framing effectE) the hindsight biasAnswer:  BExplanation:  B) When a person draws a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating. Jennifer’s teacher has already determined that she is intelligent, and even though her report isn’t as good, the teacher’s perception is skewed.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.32) It was Marisol’s first day at work. At first she was very nervous, but when she was introduced to her cubicle neighbor, Hanna, she was reassured by Hanna’s soothing smile. Marisol thought that a person with such a beautiful smile could not be bad, and that she would enjoy having her in such close proximity. Which of the following concepts best describes this example?A) contrast effectB) fundamental attribution errorC) halo effectD) selective perceptionE) self-serving biasAnswer:  CExplanation:  C) The halo effect is the tendency to draw a general impression about an individual on the basis of a single characteristic. Marisol is judging Hanna based only on her smile, without getting to know any other details.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.33) We don’t evaluate a person in isolation. Our reaction to a person is influenced by other persons we have recently encountered. This is known as the ________.A) halo effectB) contrast effectC) confirmation biasD) framing effectE) impact biasAnswer:  BExplanation:  B) Contrast effect is the evaluation of a person’s characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.34) You are more likely to notice cars like your own due to ________.A) stereotypingB) self-serving biasC) selective perceptionD) halo effectE) contrast effectAnswer:  CExplanation:  C) Because it is impossible for us to assimilate everything we see; we can take in only certain stimuli, and because we can’t observe everything going on about us, we engage in selective perception. Due to selective perception, we are more likely to notice cars like our own.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.35) When we judge someone on the basis of our perception of the group to which he/she belongs, it is called ________.A) confirmation biasB) stereotypingC) framing effectD) distinction biasE) bandwagon effectAnswer:  BExplanation:  B) Stereotyping is defined as judging someone on the basis of one’s perception of the group to which that person belongs. Relying on this type of generalization helps a person make decisions quickly. They are a means of simplifying a complex world.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.36) Many of our perceptions are formed by ________ and small ________ that have little supporting evidence.A) directives; targetsB) targets; first impressionsC) first impressions; cuesD) cues; stereotypesE) stereotypes; directivesAnswer:  CExplanation:  C) Person perceptions are the perceptions people form about each other.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.37) Which of the following statements is not an example of stereotyping?A) There is no need to offer child care to him; men aren’t interested in child care.B) Don’t hire an older worker; they can’t learn new skills.C) She was good at her last job, so she will be good at this one.D) She won’t relocate for a promotion, since women don’t relocate.E) The new hire will be emotionally insensitive, since he is a man.Answer:  CExplanation:  C) Stereotyping is judging someone on the basis of one’s perception of the group to which that person belongs. Judging a person by her last job is judging her experience. In each of the other examples, the speaker judges based on a collective group.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.38) Arian dresses very nicely, has great hair, and a winning smile. According to the Halo Effect, which of the following are we most likely to ascribe to Arian?A) he is a good studentB) he gets a lot of datesC) he is a nice personD) he is highly narcissisticE) he has low self-esteemAnswer:  CExplanation:  C) Within the Halo Effect, we draw on one or two characteristics and then apply those feelings to other aspects about the person. In this case, we are influenced by Arian’s “nice” characteristics to determine that he is also a nice person.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  Critical ThinkingLO:  6.2 Describe attribution theory.39) Samantha’s rating in a job interview is high in contrast to the candidate who was interviewed directly before her, who was rated extremely low. In this case, Samantha’s high rating can be partially attributed to the ________.A) confirmation biasB) contrast effectC) fundamental attribution errorD) self-serving biasE) bandwagon effectAnswer:  BExplanation:  B) Contrast effect is the evaluation of a person’s characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Samantha’s high score in the interview may be attributed to this effect.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.2 Describe attribution theory.40) Which of the following statements is true regarding a contrast effect?A) Our tendency to attribute our success to internal factors and blame our failure on external factors is called the contrast effect.B) The contrast effect states that we tend to judge someone on the basis of our perception of the group to which he or she belongs.C) A person appears more appealing than normal when compared with a person of less appeal due to the contrast effect.D) If we think that women won’t relocate for a promotion, we are using a shortcut to judge all women and it is called the contrast effect.E) The contrast effect indicates a tendency to fixate on initial information and fail to adequately adjust for subsequent information.Answer:  CExplanation:  C) We don’t evaluate a person in isolation. Our reaction to a person is influenced by other persons we have recently encountered. This is known as the contrast effect. Thus, due to the contrast effect, a person appears more appealing than normal when compared with a person of less appeal.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.41) Which of the following is an example of a shortcut used in judging others?A) hindsight biasB) confirmation biasC) stereotypingD) randomness errorE) availability bias Answer:  CExplanation:  C) When we judge someone on the basis of our perception of the group to which he or she belongs, we are using the shortcut called stereotyping. Hindsight bias, confirmation bias, availability bias, and randomness error are types of biases that affect decision making.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.42) Which of the following statements best represents a halo effect?A) We tend to attribute our own successes to internal factors but we tend to put the blame for our failure on external factors.B) We tend to judge someone on the basis of our perception of the group to which he or she belongs.C) Our reaction to a person is influenced by other persons we have recently encountered.D) We tend to draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance.E) When we make judgments about the behavior of other people, we tend to underestimate the influence of external factors and overestimate the influence of internal or personal factors.Answer:  DExplanation:  D) We tend to draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance. This is known as halo effect.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.43) According to the attribution theory, if a behavior scores high on consensus and distinctiveness, we tend to consider it as an internally caused behavior.Answer:  FALSEExplanation:  According to the attribution theory, if a behavior scores high on consensus and distinctiveness, we tend to consider it as an externally caused behavior.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.44) When we make judgments about the behavior of other people, we tend to overestimate the influence of external factors and underestimate the influence of internal or personal factors.Answer:  FALSEExplanation:  When we make judgments about the behavior of other people, we tend to underestimate the influence of external factors and overestimate the influence of internal or personal factors. This is called the fundamental attribution error.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.45) When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance we are using a shortcut called the contrast effect.Answer:  FALSEExplanation:  When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance we are using a shortcut called the halo effect.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.46) The halo effect occurs because it is impossible for us to assimilate everything we see.Answer:  FALSEExplanation:  The halo effect refers to the tendency to draw a general impression about an individual on the basis of a single characteristic. Selective perception occurs because it is impossible for us to assimilate everything we see.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.47) Discuss the attribution theory.Answer:  The attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. That determination, however, depends largely on three factors: (1) distinctiveness, (2) consensus, and (3) consistency.(1) Distinctiveness: Distinctiveness refers to whether an individual displays different behaviors in different situations. A behavior high in distinctiveness is more likely to be considered an externally caused behavior.(2) Consensus: If everyone who faces a similar situation responds in the same way, we can say the behavior shows consensus. A behavior high in consensus is more likely to be considered an externally caused behavior.(3) Consistency: The more consistent the behavior, the more we are inclined to attribute it to internal causes.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.48) Contrast the fundamental attribution error and the self-serving bias.Answer:  When we make judgments about the behavior of other people, we have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. This is called the fundamental attribution error. There is also a tendency for individuals to attribute their own successes to internal factors, such as ability or effort, while putting the blame for failure on external factors, such as bad luck or unproductive coworkers. This is called the self-serving bias.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.49) Discuss four shortcuts used in judging others.Answer:  a) Selective Perception. Because it is impossible for us to assimilate everything we see, only certain stimuli can be taken in. Since we cannot observe everything going on about us, we engage in selective perception. This allows us to “speed-read” others.b) The Halo Effect. When we draw a general impression about an individual on the basis of a single characteristic, a halo effect is operating.c) Contrast effects. Contrast effects occur when we don’t evaluate a person in isolation; our reaction to one person is influenced by other people we have recently encountered.d) Stereotyping. When we judge someone on the basis of our perception of the group to which he or she belongs, we are using the shortcut called stereotyping.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.2 Describe attribution theory.50) Ideally, ________ would be an objective process; however, it is largely influenced by one’s ________.A) judging; perceptionsB) perceiving; decision makingC) decision making; biasesD) decision making, perceptionsE) perceiving; biasesAnswer:  DExplanation:  D) Regardless of how objective one tried to be, perceptions play a major role in the decision making process.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.3 Explain the link between perception and decision making.51) Robbie and Brent are both coaches for a city youth baseball league which has recently experienced a five game losing streak. Robbie is concerned that the team is not practicing enough while Brent thinks that it is just a slump. The discrepancy within their thoughts is explained by ________.A) bounded rationalityB) Halo EffectC) perceptual issueD) intuitionE) escalation of commitmentAnswer:  CExplanation:  C) Awareness that a problem actually exists is related to one’s perception of the situation.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.3 Explain the link between perception and decision making.52) People in general are comfortable telling other people “No.”Answer:  FALSEExplanation:  People are so uncomfortable saying no that they may agree to unethical acts. When student participants in a study asked 108 strangers to write “pickle” in library books, half of them did it!Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.3 Explain the link between perception and decision making.53) Business schools generally train students to follow ________ decision-making models.A) intuitiveB) convolutionalC) rationalD) bounded rationalityE) sequentialAnswer:  CExplanation:  C) Business schools generally train students to follow rational decision-making models.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.54) With reference to decision making, satisficing involves ________.A) identifying all possible alternative decisionsB) seeking solutions that are satisfactory and sufficientC) evaluating all possible alternatives objectivelyD) selecting the best option with the highest utilityE) using an unconscious decision-making process created from distilled experienceAnswer:  BExplanation:  B) The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. Also many problems likely don’t have an optimal solution because they are too complicated to be broken down into the parameters of the rational decision-making model. So people satisfice; that is, they seek solutions that are satisfactory and sufficient.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.55) What is the first step in the rational decision-making model?A) developing alternativesB) defining the problemC) identifying the decision criteriaD) weighing the decision criteriaE) collecting relevant dataAnswer:  BExplanation:  B) The rational decision-making model follows a six-step process. The steps are: 1) Define the problem; 2) Identify the decision criteria; 3) Allocate weights to the criteria; 4) Develop the alternatives; 5) Evaluate the alternatives; 6) Select the best alternative.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.56) Meg has exceeded her budget by at least $200 every month for the last three months. After recognizing that this is a problem, she decides to use the rational decision-making model to decide what to do. What should be the next step she should take, if she follows this model?A) determine what criteria she needs to take into account when making her decisionB) choose a method to cut her expensesC) implement some other method of budgetingD) come up with different ways that would either reduce her expenses or increase her incomeE) evaluate different ways that she could use to either reduce her expenses or increase her incomeAnswer:  AExplanation:  A) The rational decision-making model follows a six-step process. The steps are: 1) Define the problem; 2) Identify the decision criteria; 3) Allocate weights to the criteria; 4) Develop the alternatives; 5) Evaluate the alternatives; 6) Select the best alternative. Meg needs to apply step two by determining the decision criteria, or what she needs to take into account.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.57) Which is not one of the steps in the rational decision-making model?A) defining the problem B) identifying the decision criteria C) evaluating the alternativesD) finding a reasonable solutionE) selecting the best alternativeAnswer:  DExplanation:  D) The rational decision-making model follows a six-step process. The steps are: 1) Define the problem; 2) Identify the decision criteria; 3) Allocate weights to the criteria; 4) Develop the alternatives; 5) Evaluate the alternatives; 6) Select the best alternative. Computing the decision perceptions is not a step in the model. It assumes that the decision maker has complete information and is able to identify all the relevant options in an unbiased manner. As you might imagine, most decisions in the real world don’t follow the rational model. People are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.58) In the real world, what do people typically do when making a decision about a problem?A) follow the rational decision-making modelB) seek the optimal decisionC) obtain complete information about all possible alternatives before making a decisionD) evaluate all the possible options in an unbiased and objective mannerE) find a satisfactory and sufficient solutionAnswer:  EExplanation:  E) Most decisions in the real world don’t follow the rational model. People are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.59) Decision makers construct simplified models that extract the essential features from problems without capturing all their complexity. That is, they operate within the confines of ________.A) optimal decision makingB) intuitive decision makingC) bounded rationalityD) rationalityE) common senseAnswer:  CExplanation:  C) The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. So most people respond to a complex problem by reducing it to a level at which they can readily understand it. This simplified level is called bounded rationality.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.60) Which of the following statements is true regarding the rational decision-making model?A) The rational decision-making model takes into consideration the limited information-processing capability of individuals.B) Rational decision-making models involve constructing simplified models that extract the essential features from problems without capturing all their complexity.C) The rational decision-making model involves satisficing; seek solutions that are satisfactory and sufficient.D) The rational decision-making model assumes that an individual is able to identify all the relevant options in an unbiased manner.E) The rational decision-making process is an unconscious one created from distilled experience.Answer:  DExplanation:  D) The rational decision-making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility. Most decisions in the real world don’t follow the rational model. People are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one. This is known as satisficing.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.61) ________ is a highly complex and highly developed form of reasoning that is based on years of experience and learning.A) Contrast effectB) Halo effectC) IntuitionD) Selective perceptionE) Emotional intelligenceAnswer:  CExplanation:  C) Intuition is a highly complex and highly developed form of reasoning that is based on years of experience and learning. Intuitive decision making is an unconscious process created from distilled experience.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.62) You are part of a group, making a decision about whether it is appropriate to discontinue research on a new drug. This new drug would save lives, but it is uncertain whether you can develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent a small fortune on this drug. You have gathered so much information in preparation to making the decision that you are unable to sort the good information from the superfluous data. You just feel that this project has merit. What form of decision making are you using if you decide to continue the project because you feel that the project has merit?A) optimizationB) intuitiveC) rationalD) satisficingE) bounded rationalityAnswer:  BExplanation:  B) Intuitive decision making is an unconscious process created from distilled experience. Its defining qualities are that it occurs outside conscious thought; it relies on holistic associations, or links between disparate pieces of information. In the example, the speaker just “feels” that the project is good, relying on intuition.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.63) The ________ bias can explain why managers doing performance appraisals give more weight to recent employee behaviors than to behaviors of 6 or 9 months earlier.A) self-servingB) availabilityC) distinctionD) confirmationE) hindsightAnswer:  BExplanation:  B) The availability bias can explain why managers doing performance appraisals give more weight to recent employee behaviors than to behaviors of 6 or 9 months earlier.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.64) We tend to accept at face value information that is consistent with our preconceived views, while we are critical and skeptical of information that challenges these views. This represents the ________ bias.A) distinctionB) impactC) hindsightD) confirmationE) self-servingAnswer:  DExplanation:  D) The confirmation bias represents a specific case of selective perception: we seek out information that reaffirms our past choices, and we discount information that contradicts them. We also tend to accept at face value information that confirms our preconceived views, while we are critical and skeptical of information that challenges these views.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.65) The ________ bias is typically associated with negotiation.A) confirmationB) distinctionC) anchoringD) hindsightE) availabilityAnswer:  CExplanation:  C) The anchoring bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information. Anchors are widely used by people in professions in which persuasion skills are important—such as advertising, management, politics, real estate, and law. Anytime a negotiation takes place, so does anchoring.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.66) While negotiating salary with your prospective employer, if you suggest an initial target salary of $55,000, your employer will consider $50,000 to $60,000 a reasonable range for negotiation, but if you mention $55,650, your employer is more likely to consider $55,000 to $56,000 the range of likely values for negotiation. In this example your employer is exhibiting the ________ bias.A) availabilityB) anchoringC) hindsightD) confirmationE) impactAnswer:  BExplanation:  B) The anchoring bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information. When a prospective employer asks how much you made in your prior job, your answer typically anchors the employer’s offer.Diff: 3AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.67) One of the core problems that created the financial meltdown of 2008 was that large loans were made to individuals who could not repay them, and the finance companies purchased these bad debts without realizing how poor the prospects of repayment were. Which of the following decision-making errors was made by the lenders and borrowers?A) hindsight biasB) availability biasC) overconfidence biasD) confirmation biasE) anchoring biasAnswer:  CExplanation:  C) When we are given factual questions and asked to judge the probability that our answers are correct, we tend to be far too optimistic. During the financial meltdown of 2008, the lenders and borrowers were overconfident about the ability to pay back loans. This overconfidence bias was clearly a major factor that created the financial crisis.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.68) The more optimistic the entrepreneurs, the less successful the performance of their new ventures. Which of the following systematic biases and errors creep into their judgments?A) hindsight biasB) anchoring biasC) confirmation biasD) availability biasE) overconfidence biasAnswer:  EExplanation:  E) The overconfidence bias represents a negative relationship between entrepreneurs’ optimism and the performance of their new ventures: the more optimistic, the less successful.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.69) Our tendency to believe we have some control over our world and our destiny and that we can predict the outcome of random events is the ________.A) overconfidence biasB) randomness errorC) bounded rationalityD) intuitive decision makingE) selective perceptionAnswer:  BExplanation:  B) Most of us like to think we have some control over our world and our destiny. Our tendency to believe we can predict the outcome of random events is the randomness error.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.70) ________ refers to staying with a decision even when there is clear evidence it’s wrong.A) Escalation of commitmentB) Hindsight biasC) SatisficingD) Selective perceptionE) Availability biasAnswer:  AExplanation:  A) Escalation of commitment refers to staying with a decision even when there is clear evidence it’s wrong.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.71) People who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in which of the following decision-making errors?A) escalation of commitmentB) randomness errorC) availability biasD) performance evaluationE) reward systemsAnswer:  AExplanation:  A) Escalation of commitment refers to staying with a decision even when there is clear evidence it is wrong. People who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in escalation of commitment than those who spend less time thinking about their choices.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.72) Which of the following types of biases in decision making represents the tendency of decision makers to prefer a sure thing?A) hindsight biasB) bounded rationalityC) escalation of commitmentD) selective perceptionE) risk aversionAnswer:  EExplanation:  E) Risk aversion is the tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.73) Tom knows that the title insurance company made a mistake on his property title. Because of their mistake, his neighbor now has access to an easement road through the 25 acres located at the back of his property. He can’t use the acreage for pasture, because his neighbor insists that the gates remain open. The title company has offered a $40,000 settlement. Tom has decided to take the settlement rather than possibly lose in court if he were to sue the title company for more money. Tom’s decision is based on ________.A) hindsight biasB) availability biasC) risk aversionD) randomness errorE) escalation of commitmentAnswer:  CExplanation:  C) Risk aversion is the tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff. Tom does not want to risk losing the $40,000 for a possible, but uncertain, higher payoff.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.74) Which of the following statements is true regarding the hindsight bias?A) It indicates a tendency to fixate on initial information and fail to adequately adjust for subsequent information.B) It indicates that we seek out information that reaffirms our past choices, and we discount information that contradicts them.C) It indicates our tendency to base judgments on information readily available.D) It indicates our tendency to believe falsely, after the outcome is known, that we would have accurately predicted it.E) It indicates our tendency to draw a general impression about an individual on the basis of a single characteristic, such as intelligence.Answer:  DExplanation:  D) The hindsight bias is the tendency to believe falsely, after the outcome is known, that we’d have accurately predicted it.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.75) For many people, a 50-50 flip of a coin for $100 might not be worth as much as a sure promise of $50, even though the gamble is mathematically worth twice as much as the sure thing. This is an example of ________.A) selective perceptionB) self-serving biasC) risk aversionD) availability biasE) confirmation biasAnswer:  CExplanation:  C) Risk aversion represents a tendency to prefer a sure thing over a risky outcome. Thus preferring a sure promise of $50 represents the tendency to prefer a sure thing over a risky outcome.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.76) What are the three generally accepted constructs of decision making each of us employs to make determinations?A) rational decision making, bounded rationality, and intuitionB) escalation of commitment, risk aversion, and hindsight biasC) utilitarianism, rights, and justiceD) expertise, creative-thinking skills, and intrinsic task motivationE) distinctiveness, consensus, and consistencyAnswer:  AExplanation:  A) In OB, there are three generally accepted constructs of decision making each of us employs to make determinations: Rational Decision Making, Bounded Rationality, and Intuition.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.77) A common tendency related to the overconfidence bias is that as managers and employees become more knowledgeable about an issue, they become more likely to display overconfidence.Answer:  FALSEExplanation:  Individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. As managers and employees become more knowledgeable about an issue, they become less likely to display overconfidence.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.78) We tend to accept at face value information that confirms our preconceived views, while we are critical and skeptical of information that challenges these views.Answer:  TRUEExplanation:  We tend to accept at face value information that confirms our preconceived views, while we are critical and skeptical of information that challenges these views. This represents the confirmation bias.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.79) An individual’s place in the interview schedule may affect the interviewer’s evaluation of the applicant. This is an example of confirmation bias.Answer:  FALSEExplanation:  If an individual’s place in the interview schedule affects the interviewer’s evaluation of the applicant, it is most likely to be the result of contrast effect. The confirmation bias represents a specific case of selective perception: we seek out information that reaffirms our past choices, and we discount information that contradicts them.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.80) People who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in escalation of commitment than those who spend less time thinking about their choices.Answer:  TRUEExplanation:  People who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in escalation of commitment than those who spend less time thinking about their choices. Perhaps they have invested so much time and energy into making their decisions that they have convinced themselves they’re taking the right course of action and don’t update their knowledge in the face of new information.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.81) The rational decision-making model takes into consideration the fact that all the information pertaining to the problem might not be available to the decision maker.Answer:  FALSEExplanation:  The rational decision-making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.82) What is bounded rationality? How is it related to decision making?Answer:  Since the capacity of the human mind for formulating and solving complex problems is far too small to meet the requirements for full rationality, individuals operate within the confines of bounded rationality. They construct simplified models that extract the essential features from problems without capturing all their complexity. Individuals can then behave rationally within the limits of the simple model. Once the limited set of alternatives is identified, the decision maker will begin reviewing it. But the review will not be comprehensive. Instead, the decision maker will begin with alternatives that differ only in a relatively small degree from the choice currently in effect. Following along familiar and well-worn paths, the decision maker proceeds to review alternatives only until he or she identifies an alternative that is “good enough.” The first alternative that meets the “good enough” criterion ends the search. So the final solution represents a satisficing choice rather than an optimum one.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.83) What is escalation of commitment?Answer:  Escalation of commitment refers to staying with a decision even when there is clear evidence it’s wrong. Individuals escalate commitment to a failing course of action when they view themselves as responsible for the failure. In fact, people who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in escalation of commitment than those who spend less time thinking about their choices. Perhaps they have invested so much time and energy into making their decisions that they have convinced themselves they’re taking the right course of action and don’t update their knowledge in the face of new information.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.84) Discuss some of the errors in perceptual judgment made by interviewers in job interviews.Answer:  Interviewers make perceptual judgments that may be inaccurate. They generally draw early impressions that very quickly become entrenched. Research shows that we form impressions of others within a tenth of a second, based on our first glance at them. This is the halo effect. Interviewers might draw conclusions about a candidate based on the group (such as religion, ethnicity) to which the candidate belongs. This is known as stereotyping. If these first impressions are negative, they tend to be more heavily weighted in the interview than if that same information came out later. Most interviewers’ decisions change very little after the first 4 or 5 minutes of the interview. This represents anchoring bias. Also, candidates are generally evaluated by comparing them with the previous candidates. This is known as the contrast effect.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.85) List and explain any three decision biases or errors.Answer:  a) Overconfidence Bias. When we’re given factual questions and asked to judge the probability that our answers are correct, we tend to be far too optimistic.b) Anchoring Bias. The anchoring bias is a tendency to fixate on initial information as a starting point. Once set, we then fail to adequately adjust for subsequent information. The anchoring bias occurs because our mind appears to give a disproportionate amount of emphasis to the first information it receives. So initial impressions, ideas, prices, and estimates carry undue weight relative to information received later.c) Confirmation Bias. The rational decision-making process assumes that we objectively gather information. But we don’t. We selectively gather information. The confirmation bias represents a specific case of selective perception. We seek out information that reaffirms our past choices, and we discount information that contradicts past judgments.d) Availability Bias. This is the tendency for people to base their judgments on information that is readily available to them. Events that evoke emotions, that are particularly vivid, or that have occurred more recently tend to be more available in our memory. As a result, we tend to be prone to overestimating unlikely events like an airplane crash. The availability bias can also explain why managers, when doing annual performance appraisals, tend to give more weight to recent behaviors of an employee than those behaviors of six or nine months ago.e) Escalation of Commitment Error. This refers to staying with a decision even when there is clear evidence that it’s wrong. Individuals escalate commitment to a failing course of action when they view themselves as responsible for the failure. Escalation of commitment is also congruent with evidence that people try to appear consistent in what they say and do. Increasing commitment to previous actions conveys consistency.f) Hindsight bias. The hindsight bias is the tendency for us to believe falsely that we’d have accurately predicted the outcome of an event, after that outcome is actually known. When something happens and we have accurate feedback on the outcome, we seem to be pretty good at concluding that this outcome was relatively obvious.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.86) Explain how stereotyping can cause problems for some managers when making ethical decisions. Provide an example.Answer:  Because one of the criteria of ethical decision making is to focus on individual rights, the use of stereotyping would affect the ethical decision-making process. The focus on rights calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents like the Bill of Rights. An emphasis on rights in decision making means respecting and protecting the basic rights of individuals. If a manager engages in stereotyping, for example, believing that all women are less productive than men, he may be inclined to base organizational decisions on this stereotype. When an important project or promotion comes up, he would always be inclined to reward men over women.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  SynthesisLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.87) You are in your senior year and, unfortunately, your GPS is awful, you hate going to class, and your internship makes you want to purposely catch food poisoning just so you can miss work. During a visit with your academic advisor, they suggest you might want to change your major. Why do you not change your major?Answer:  Responses to this question will vary but should feature a discussion regarding escalation of commitment. The student should discuss elements of the money that has been spent, the time that has been used, and the effort which has been expended on earning their current degree.Diff: 3AACSB:  Reflective thinkingQuest. Category:  Critical ThinkingLO:  6.4 Contrast the rational model of decision making with bounded rationality and intuition.88) From the 1930s through the mid-1980s, General Motors consistently gave promotions and bonuses to managers who kept a low profile and avoided controversy. This is an example of which of the following organizational constraints?A) performance evaluationB) reward systemsC) formal regulationsD) system-imposed time constraintsE) historical precedentsAnswer:  BExplanation:  B) The organization’s reward system influences decision makers by suggesting which choices have better personal payoffs. If the organization rewards risk aversion, managers are more likely to make conservative decisions.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.5 Explain how individual differences and organizational constraints affect decision making.89) Vance recently took over the role of director of an academic unit at a large university. While Vance has a Type A personality and is very organized and direct, his predecessor was very Type B and liked to roll with the flow. Due to his predecessor’s personality, it is likely Vance will experience a long period of difficult change due to which phenomena?A) utilitarianismB) formal regulationC) ethicsD) historical precedentE) anchoring biasAnswer:  DExplanation:  D) The decisions made by the predecessor will likely affect the daily operations for the unit for many months or even years to come. It will take time before Vance’s decisions can overtake these precedents.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.5 Explain how individual differences and organizational constraints affect decision making.90) Of the five constraints of decision making, which is most likely to be affected by risk aversion?A) performance evaluationsB) reward systemC) formal regulationD) time constraintsE) historical precedentsAnswer:  BExplanation:  B) If an organization rewards risk aversion, decision makers will most likely be rewarded for conservative decisions; while if the organization rewards risk taking, conservative decisions will not be rewarded.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.5 Explain how individual differences and organizational constraints affect decision making.91) You are responsible for the annual holiday toy drive at your workplace. Every few days, you send out an email of how many items have been collected and post a picture of one of your coworkers putting a toy in the box. What influence tactic are you trying?A) peer pressureB) forceC) escalation of commitmentD) nudgingE) reward systemAnswer:  DExplanation:  D) Just like commercials try to “nudge” us into buying an item, you’re sending the email with the coworker doing what you want them to do is an attempt to nudge the others into donating.Diff: 2AACSB:  Reflective thinkingQuest. Category:  AnalyticalLO:  6.5 Explain how individual differences and organizational constraints affect decision making.92) Under times of stress, gender affects the decision making process.Answer:  TRUEExplanation:  In stressful situations, it appears that men become more egocentric and make more risky decisions, while women become more empathetic and their decision making improves.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.5 Explain how individual differences and organizational constraints affect decision making.93) In the ethical yardstick of ________, decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number.A) utilitarianismB) self-serving biasC) bounded rationalityD) selective perceptionE) anchoring biasAnswer:  AExplanation:  A) The first ethical yardstick is utilitarianism, in which decisions are made to provide the greatest good for the greatest number. Decisions are made solely on the basis of their outcomes.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.6 Contrast the three ethical decision criteria.94) Which of the following statements is true regarding utilitarianism?A) It protects the interests of the underrepresented and less powerful.B) It reduces productivity and efficiency.C) It promotes decision making that is consistent with fundamental liberties and privileges, as set forth in documents such as the Bill of Rights.D) The utilitarianism view dominates business decision making.E) It imposes and enforces rules fairly and impartially.Answer:  DExplanation:  D) A focus on utilitarianism promotes efficiency and productivity, but it can sideline the rights of some individuals, particularly those with minority representation. This view dominates business decision making as decision makers, particularly in for-profit organizations, feel comfortable with utilitarianism.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.6 Contrast the three ethical decision criteria.95) The three criteria for making ethical decisions are ________.A) utilitarianism, creativity, and rightsB) historical precedents, rights, and utilitarianismC) rewards, regulations, and time orientationD) utilitarianism, rights, and justiceE) historical precedents, reward, and justiceAnswer:  DExplanation:  D) There are three ways to frame decisions ethically. The first ethical yardstick is utilitarianism, in which decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number. Another ethical criterion is to make decisions consistent with fundamental rights. A third criterion is to impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.6 Contrast the three ethical decision criteria.96) You are the manager of a development group in a large computer software company. You have decided that it is important for your group to understand the many ways that ethical decisions can be made and you are designing a training program on the subject of ethics. If you wish to emphasize the importance of making decisions consistent with fundamental liberties and privileges, the focus of your teaching will be on ________.A) utilitarianismB) justiceC) rightsD) privilegeE) serviceAnswer:  CExplanation:  C) Another ethical criterion is to make decisions consistent with fundamental liberties and privileges, as set forth in documents such as the Bill of Rights. An emphasis on rights in decision making means respecting and protecting the basic rights of individuals, such as the right to privacy, free speech, and due process.Diff: 3AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  6.6 Contrast the three ethical decision criteria.97) Martha submitted a formal complaint to OSHA about unsafe work conditions in her company’s warehouse. Martha is a ________.A) utilitarian thinkerB) judgeC) creative thinkerD) whistle-blowerE) humanitarianAnswer:  DExplanation:  D) Whistle-blowers are individuals who reveal an organization’s unethical practices to the press or government agencies, using their right to free speech.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.6 Contrast the three ethical decision criteria.98) The first ethical yardstick is utilitarianism, in which decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number.Answer:  TRUEExplanation:  Utilitarianism ideally provides the greatest good for the greatest number. This view dominates business decision making. It is consistent with goals such as efficiency, productivity, and high profits.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.6 Contrast the three ethical decision criteria.99) A focus on utilitarianism promotes the rights of minorities.Answer:  FALSEExplanation:  A focus on utilitarianism promotes efficiency and productivity, but it can sideline the rights of some individuals, particularly those with minority representation.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.6 Contrast the three ethical decision criteria.100) It is possible to reduce the number of lies that people tell within an organization without using punishments such as terminations.Answer:  TRUEExplanation:  Through the use of organizational behavior theory, we can prevent lying by working with our natural propensities to create environments non-conducive to lying.Diff: 1AACSB:  Ethical understanding and reasoningQuest. Category:  Critical ThinkingLO:  6.6 Contrast the three ethical decision criteria.101) Which of the following is a component of the three-component model that is considered as the foundation for all creative work?A) expertiseB) creative thinking skillsC) intrinsic task motivation D) intuitionE) analytical skillsAnswer:  AExplanation:  A) Expertise is the foundation for all creative work. The potential for creativity is enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise in their field of endeavor.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.7 Describe the three-stage model of creativity.102) Which of the following traits does a decision maker need to have if they are to fully appraise a problem and even see problems that others are not aware of?A) creativityB) rationalityC) conceptual styleD) intuitionE) individualityAnswer:  AExplanation:  A) A rational decision maker also needs creativity, the ability to produce novel and useful ideas, to appraise problems and find original solutions. Creativity allows the decision maker to more fully appraise and understand the problem, including seeing problems others can’t see.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.7 Describe the three-stage model of creativity.103) Gene is regarded by his peers as an extremely creative designer of watercraft. He attributes much of his success to his family: he was raised by a traditional boat builder and from a very early age was surrounded by boats and the people who made them. To what element of creativity does Gene attribute his success?A) intuitivenessB) external locus of controlC) task motivationD) expertiseE) creative thinking skillsAnswer:  DExplanation:  D) Expertise is the foundation for all creative work. The potential for creativity is enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise in their field of endeavor.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  6.7 Describe the three-stage model of creativity.104) Which of the following is a component of creativity that encompasses certain personality characteristics of an individual such as the ability to use analogies?A) expertiseB) creative thinking skillsC) intrinsic task motivationD) intuitionE) selective perceptionAnswer:  BExplanation:  B) The second component is creative thinking skills. This encompasses personality characteristics associated with creativity, the ability to use analogies, and the talent to see the familiar in a different light.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.7 Describe the three-stage model of creativity.105) Creativity is positively linked to each of these traits except ________.A) intelligenceB) personalityC) risk-takingD) ethicsE) expertiseAnswer:  DExplanation:  D) Although creativity is linked to many desirable individual characteristics, it is not correlated with ethicality. People who cheat may actually be more creative than those who behave ethically, according to recent research.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.7 Describe the three-stage model of creativity.106) Passive positive moods, such as calm, are more conducive to creativity than moods such as happiness that encourage interaction with the world.Answer:  FALSEExplanation:  Moods such as happiness that encourage interaction with the world are more conducive to creativity than passive moods such as calm.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.7 Describe the three-stage model of creativity.107) Those who spend extensive periods of time in other cultures generate more innovative solutions to problems.Answer:  TRUEExplanation:  Exposure to a variety of cultures can also improve creativity. Those who spend extensive periods of time in other cultures generate more innovative solutions to problems.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  6.7 Describe the three-stage model of creativity.