Application of Decision Making: a Contingency Approach

question 168

Multiple Choice

Application of Decision Making: A Contingency Approach
It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues.
-After talking to Dave's boss, it appears that Dave decided to repair rather than replace the old fax machine in the past because he thought it would be cheaper to fix it than replace it. As it turns out, it has cost Dave three times as much to fix the machine or buy a new machine over the past two years than it would have cost to purchase a new one. Yet, Dave still persists in wanting to repair the old machine. This is an example of_________ .

• A)bounded rationality
• B)a programmed decision
• C)ineffective decision- making
• D)escalation of commitment

Understand the dynamics of the leader-follower relationship and its impact on leadership effectiveness.

Learn about the mechanisms through which followers contribute to the leadership process.

Understand the norm of reciprocity and its dimensions in leadership contexts.

Identify and describe preconceived notions about followership behaviors.

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Definitions:

Demand (D)

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Supply (S)

The total amount of a good or service that is available for purchase at any given price level in a market.

Equilibrium Price (P)

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to market balance.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.