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Which of the following explain when managerial conceit occurs? (Select all that apply.)

A. It happens when decision makers adopt a more innovative approach and give lower-level employees more power.
B. It happens when managers become too invested in projects and analytical tools.
C. It happens when decision makers who have made successful choices in the past believe they have superior expertise for managing uncertainty.
D. It happens when managers pay less attention to small decisions because they assume real options will alert them to any potential problems.

1 Answer

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Final answer:

Managerial conceit occurs when decision-makers are overconfident about their expertise (Option C) or become too fixated on their projects (Option B), and when they neglect minor decisions due to assumptions about their frameworks (Option D).

Step-by-step explanation:

Managerial conceit occurs under specific circumstances, often related to cognitive biases and the psychological state of decision-makers within an organization. Option C describes a scenario where decision makers who have had success in the past may develop overconfidence and believe they have special expertise in managing uncertainty. This belief can overshadow their analysis and lead to poor decision-making. It reflects a cognitive bias known as the Dunning-Kruger effect, where individuals with limited knowledge overestimate their own abilities. Option B is also correct, as it pinpoints an issue where managers become excessively invested in their projects or analytical tools, potentially leading to tunnel vision and a disregard for alternative perspectives or new information.

Option D denotes another aspect of managerial conceit, where managers neglect minute but potentially significant details, assuming that their established protocols or decision-making frameworks will automatically flag any concerns. This can be due to the availability heuristic, where individuals rely on immediate examples that come to mind when evaluating a situation, rather than considering all relevant information. While Option A might indicate innovative management, it does not inherently imply managerial conceit, making it an incorrect choice in this context.

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