Tim Is the Production Manager at a Steel Factory

question 13

Multiple Choice

Tim is the production manager at a steel factory. One of the steel processing machines in the factory has broken down and has to be replaced. Tim decides to buy a new machine from a company that he has read reviews of in industry magazines, even though there are other companies offering a discount on machines with better functionality. This is an example of how managers are constrained by _____.

• A) bounded rationality
• B) escalation of commitment
• C) risk propensity
• D) groupthink
• E) political forces

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Definitions:

Bargaining Zone

The range within which parties are willing to negotiate and find an agreement in negotiations or bargaining scenarios.

Reservation Point

The lowest acceptable value or outcome an individual is willing to accept in a negotiation.

Conflict Management Styles

The approaches and techniques used by individuals or groups to handle disagreements, confrontations, or disputes effectively.

Conflict Situations

Circumstances that arise when the interests, needs, goals, or values of involved parties interfere with one another.