OG RC #102

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OG RC #102

by mundasingh123 » Fri Jun 03, 2011 6:36 am
The majority of successful senior managers do
not closely follow the classical rational model of first
clarifying goals, assessing the problem, formulating
options, estimating likelihoods of success, making a
decision, and only then taking action to implement
the decision. Rather, in their day-by-day tactical
maneuvers, these senior executives rely on what is
vaguely termed "intuition" to manage a network of
interrelated problems that require them to deal with
ambiguity, inconsistency, novelty, and surprise; and
to integrate action into the process of thinking.
Generations of writers on management have
recognized that some practicing managers rely
heavily on intuition. In general, however, such
writers display a poor grasp of what intuition is.
Some see it as the opposite of rationality; others
view it as an excuse for capriciousness.

Isenberg's recent research on the cognitive
processes of senior managers reveals that
managers' intuition is neither of these. Rather,
senior managers use intuition in at least five distinct
ways. First, they intuitively sense when a problem
exists. Second, managers rely on intuition to
perform well-learned behavior patterns rapidly. This
intuition is not arbitrary or irrational, but is based
on years of painstaking practice and hands-on
experience that build skills. A third function of
intuition is to synthesize isolated bits of data and
practice into an integrated picture, often in
an "Aha!" experience. Fourth, some managers use
intuition as a check on the results of more rational
analysis. Most senior executives are familiar with
the formal decision analysis models and tools,
and those who use such systematic methods
for reaching decisions are occasionally leery of
solutions suggested by these methods which run
counter to their sense of the correct course of
action. Finally, managers can use intuition to bypass
in-depth analysis and move rapidly to engender a
plausible solution. Used in this way, intuition is an
almost instantaneous cognitive process in which a
manager recognizes familiar patterns.

One of the implications of the intuitive style
of executive management is that "thinking" is
inseparable from acting. Since managers often "know"
what is right before they can analyze and explain it,
they frequently act first and explain later. Analysis is
inextricably tied to action in thinking/acting cycles,
in which managers develop thoughts about their
companies and organizations not by analyzing a
problematic situation and then acting, but by acting
and analyzing in close concert. Given the great
uncertainty of many of the management issues that
they face, senior managers often instigate a course
of action simply to learn more about an issue.
They then use the results of the action to develop
a more complete understanding of the issue. One
implication of thinking/acting cycles is that action
is often part of defining the problem, not just of
implementing the solution.
102. The passage provides support for which of the
following statements?
(A) Managers who rely on intuition are more
successful than those who rely on formal
decision analysis.
(B) Managers cannot justify their intuitive decisions.
(C) Managers' intuition works contrary to their
rational and analytical skills.
(D) Logical analysis of a problem increases the
number of possible solutions.
(E) Intuition enables managers to employ their
practical experience more efficiently.

How to eliminate A ? OG Explanation too pithy
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by Ashley@VeritasPrep » Fri Jun 03, 2011 6:30 pm
Good question. I'd say there are a couple reasons (A) is not well supported.

(A) says "managers who rely on intuition are more successful than those who rely on formal decision analysis," but

(1) this is not the same as the passage's intro statement that "the majority of successful managers do not closely follow the classical rational model of first clarifying goals... and only then taking action." We glean from this information that the majority of successful managers do not happen to rely exclusively on formal decision making, but we're not given any sort of comparison that tells us that those managers who do rely on formal decision making are any less successful for their approach or that those who rely on intuition would be less successful if they switched to relying on formal decision analysis -- we're just told what the trends are in terms of what most successful managers happen to do. It's still entirely possible that ones who rely on formal decision making instead are even more successful.

and

(2) We get the sentence

"Fourth, some managers use
intuition as a check on the results of more rational
analysis. Most senior executives are familiar with
the formal decision analysis models and tools,
and those who use such systematic methods
for reaching decisions are occasionally leery of
solutions suggested by these methods which run
counter to their sense of the correct course of
action."

But this sentence doesn't mean that the managers it talks about do not rely on formal decision analysis -- rather, it seems to suggest that they still do heavily employ formal decision analysis methods ("those who use such systematic methods for reaching decisions") and only let their intuition override the "solutions suggested by these methods" "occasionally...when [these solutions] run counter to their [intuition]." So it's not as though these people throw formal decision analysis out the window; they just let their intuition have its say, too.

Does that help?
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by mundasingh123 » Fri Jun 03, 2011 11:50 pm
Hi Ashley , I found your second point very convincing . However, did u deduce the following info
We glean from this information that the majority of successful managers do not happen to rely exclusively on formal decision making,
from "Fourth, some managers use
intuition as a check on the results of more rational
analysis. Most senior executives are familiar with
the formal decision analysis models and tools,
and those who use such systematic methods
for reaching decisions are occasionally leery of
solutions suggested by these methods which run
counter to their sense of the correct course of
action."

Could You give an example of the kind of info you are looking for to substantiate the following .
but we're not given any sort of comparison that tells us that those managers who do rely on formal decision making are any less successful for their approach
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by vikram4689 » Sat Jun 04, 2011 3:03 am
A is nowhere mentioned in the passage. I would like to know what made you stuck on this point.....
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by mundasingh123 » Sat Jun 04, 2011 3:13 am
vikram4689 wrote:A is nowhere mentioned in the passage. I would like to know what made you stuck on this point.....
The majority of successful senior managers do
not closely follow the classical rational model of first
clarifying goals,
The 1st Line of the para .
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by vikram4689 » Sat Jun 04, 2011 3:36 am
Ya, It only states that "majority of successful managers ...." but nowhere it is mentioned that these managers are MORE successful than those who rely on formal decision analysis.

Kind of CR in RC.;)
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by Ashley@VeritasPrep » Wed Jun 08, 2011 9:56 am
mundasingh123 wrote:Hi Ashley , I found your second point very convincing . However, did u deduce the following info
We glean from this information that the majority of successful managers do not happen to rely exclusively on formal decision making,
from "Fourth, some managers use
intuition as a check on the results of more rational
analysis. Most senior executives are familiar with
the formal decision analysis models and tools,
and those who use such systematic methods
for reaching decisions are occasionally leery of
solutions suggested by these methods which run
counter to their sense of the correct course of
action."
No, I mostly deduced it from the first sentence of the passage, the one you cite in your more recent post:

"The majority of successful senior managers do
not closely follow the classical rational model of first
clarifying goals, assessing the problem, formulating
options, estimating likelihoods of success, making a
decision, and only then taking action to implement
the decision."

... though I guess I minimally used the later bit you mention insofar as it allowed me to apply the name "formal decision analysis" to the process described in the opening sentence.
mundasingh123 wrote:Could You give an example of the kind of info you are looking for to substantiate the following .
but we're not given any sort of comparison that tells us that those managers who do rely on formal decision making are any less successful for their approach
As vikram4689 addresses in his post above, we only know what the habits of successful managers tend to be -- not whether the managers who exhibit those usual habits are actually more successful that the ones who don't. If we wanted to conclude that these "most" managers were actually MORE successful than their counterparts who rely on formal decision analysis, we'd need the first sentence to say something more along the lines of "To be successful, a manager must not follow closely the rational model..."

For instance, I could say that most successful international businessmen do not speak more than four languages fluently. This is almost certainly a true statement. However, it does NOT mean at all that those businessmen are more successful than the businessmen who speak fifteen languages fluently... in fact, quite likely the ones who speak fifteen languages fluently are more successful -- they're just a minority within the group of successful businessmen.

Make sense?
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by mundasingh123 » Wed Jun 08, 2011 10:05 am
So Ashley , But the example that you gace of businessmen doesnt fit in with the case in point . Here , the managers who rely exclusively on formal decision making are not a minority of "Most successful managers that do not rely exclusively on formal decision making .

When you said that Managers who rely exclusively on formal decision making could be more successful than managers who dont rely exclusively on formal decision making . Could we gauge success here in terms of designation or salary ?
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by Ashley@VeritasPrep » Wed Jun 08, 2011 10:20 am
The managers who rely exclusively on formal decision making must indeed be a minority in the group of successful managers, given that we are told that the majority of successful managers do not rely exclusively on formal decision making. Once I've used up the majority, all I've got left is a minority. Right?

I don't know how we would gauge success, and to be clear, I wasn't trying to argue that there is any evidence in the passage to suggest that managers who DO rely exclusively on formal decision making actually ARE any more successful than those managers who don't... the important thing is that there's NO EVIDENCE given one way or the other as to whether they're more or less successful. The fact that they easily could be, then, means I can't choose option (A), since option (A) says that the ones who rely on intuition are more successful (and the ones who rely on formal decision making therefore less successful), and in the absence of any evidence, we can't make that claim.
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by GMATMadeEasy » Thu Jun 09, 2011 12:33 am
To be honest, this question had troubled me as well before. I did go through explanations twice and ponder even after for a while. I see where they are playing.

Thanks Ashley for so detailed explanation. The problem is sometimes you don't get it unless it is explained in a way the person asking cold understand.

My take away in abstract terms: we are given from a group of SUCSESSFULL people (let's say 10), MAJORITY(7)follows intuitive approach and the rest (3) follows formal analysis.

Putting CR hat on, I will infer this and ONLY this:
1. There are more successfull people in group following intuitive thinking than formal analysis.
BUT i can NOT infer that people following intuitive thinking are MORE successfull than people following formal decision making.This provides comparison in terms of success. I beleive this is diffuclt for us because whole passage creates a halo effect as if people with intutive thinking are more successfull comparitively. But the point is that he is discussing successfull people ONLY and trying to figure out what approach makes them successfull. Am i right in my reasoning?

Question: Could we also remove the anser choice A by saying that it says managers instead of senior managers? Scope of the passage is senior successfull manager .

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by Ashley@VeritasPrep » Sun Jun 12, 2011 6:48 am
Your reasoning is exactly right and very well phrased, as well... an especially good point about how the halo effect makes the trap answer seem the more tempting.

I think your second suggestion,
Question: Could we also remove the anser choice A by saying that it says managers instead of senior managers? Scope of the passage is senior successfull manager.
is quite good, too, and I had not even noticed that wording distinction. Great catch!
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by ArpanaAmishi » Sun Jun 12, 2011 11:41 pm
someone please post correct answer explanation .... I think It should be 'C'

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by mundasingh123 » Sun Jun 12, 2011 11:51 pm
ArpanaAmishi wrote:someone please post correct answer explanation .... I think It should be 'C'
OA E
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