Quiz on Decision Making and Cognitive Biases in the Workplace

What is the primary focus of the chapter?

• The importance of teamwork in decision making

• The role of decision making and cognitive biases in organizations

• The impact of technology on decision making

• The history of management theories

Which model serves as the foundation of traditional decision-making approaches?

• Bounded Rationality Model

• Rational Decision-Making Model

• Behavioral Economics Model

• Heuristic Decision-Making Model

What does Herbert Simon's concept of bounded rationality emphasize?

• The role of intuition in decision making

• The ability to make perfect decisions

• The limitations of human decision-making capabilities

• The importance of emotional intelligence

What is loss aversion in the context of Prospect Theory?

• The tendency to overestimate potential losses

• The tendency to prefer gains over losses

• The tendency to feel losses more acutely than equivalent gains

• The tendency to avoid making decisions

Which cognitive bias involves favoring information that confirms existing beliefs?

• Status Quo Bias

• Overconfidence Bias

• Anchoring Bias

• Confirmation Bias

What is the primary effect of overconfidence bias in the workplace?

• Encouraging collaboration among team members

• Leading to unrealistic expectations and risky decisions

• Enhancing employee engagement

• Promoting thorough analysis of data

What does the status quo bias refer to?

• The preference for innovative solutions

• The tendency to favor familiar situations over change

• The inclination to take risks in decision making

• The desire to seek out new information

Which heuristic involves judging the likelihood of events based on how easily examples come to mind?

• Representativeness Heuristic

• Availability Heuristic

• Anchoring Heuristic

• Framing Heuristic

What is a practical strategy to mitigate cognitive biases in decision making?

• Encouraging groupthink

• Implementing structured decision-making processes

• Relying solely on intuition

• Avoiding feedback from team members

What is the purpose of a pre-mortem analysis?

• To gather employee feedback

• To celebrate successful projects

• To identify potential reasons for failure before a project begins

• To evaluate past decisions