When People Face Complex Environments and Have Limited Information, They

question 261

Multiple Choice

When people face complex environments and have limited information, they often use simplifying strategies for decision making. These simplifying strategies are known as ___.

• A) uncertainty reduction
• B) heuristics
• C) optimizing
• D) rationalization
• E) work simplification

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Definitions:

Specialized Expertise

Specific, advanced knowledge or skills in a particular field or area of study.

Horizontal Division

The organizational structure that involves dividing a company based on different types of jobs or tasks, leading to departments that are on the same level.

Line Units

Core units or departments in an organization that are directly involved in its primary activities or objectives.

Decentralization

The degree to which the authority to make decisions is given to lower levels in an organization’s hierarchy.