Chapter Questions
How is utility theory useful as a framework for making decisions? Why must considerations of utility always be tied to the overall strategy of an organization?
Describe three examples of open systems. Can you think of a closed system? Why are organizations open systems?
Why is it useful to view the employment process as a network of sequential, interdependent decisions?
What is the difference between an erroneous acceptance and an erroneous rejection? Describe situations where one or the other is more serious.
Suppose you had to choose between "making" competent employees through training, or "buying" them through selection. Which would you choose? Why?