mgmt chap 7 – Flashcards
Unlock all answers in this set
Unlock answersquestion
The process by which managers respond to opportunities and threats facing their organization by analyzing options and taking actions is known as:
answer
Decision making
question
Managers make decisions when they are involved in which managerial function(s)?
answer
Planning, organizing, leading, and controlling
question
Decisions that have been made many times in the past and for which managers have rules and guidelines as to how to make similar decisions in the future are known as:
answer
Programmed decisions
question
Peggy, a plant foreman, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. This is an example of which type of decision?
answer
Programmed
question
Nonroutine decisions made in response to novel situations in business are known as:
answer
Nonprogrammed decisions
question
When a manager makes a good decision based on a "gut feeling", this is known as:
answer
An intuitive decision
question
What would NOT be considered a nonprogrammed decision of Jochen Zeitz, CEO of Puma?
answer
Hiring additional staff
question
Jordan, the manager of JT's Tasty Treats, is trying to decide whether to introduce a new frozen dessert that has never been sold previously. This represents which type of decision for Jordan?
answer
Nonprogrammed
question
WashUrCar, which operates five car washes, is attempting to decide whether or not it should purchase a new type of drying equipment. This represents which type of decision for the organization?
answer
Nonprogrammed
question
With sales lagging due to poor economic conditions, Abby, the manager of Photography by Abby, has decided to launch a large-scale advertising campaign to promote her services. This represents which type of decision for the organization?
answer
Nonprogrammed
question
In the classical model of decision-making, the most appropriate decision given the likely future consequences to the organization is known as the _______ decision.
answer
Optimum
question
What assumption is made by the classical model?
answer
Managers have access to all the information they need
question
Which of the following does NOT contribute to incomplete information?
answer
Egoism
question
In 1993, when Apple Computer introduced the Newton, its personal digital assistant (PDA), managers had no idea what the probability of a successful product launch for a PDA might be. This condition is called:
answer
Uncertainty
question
A reason why information is incomplete is that much of the information managers have at their disposal is _______ information.
answer
Ambiguous
question
According to the administrative model, in the real world, managers must rely on their _______ to make what seems to them to be the best decision in the face of uncertainty and ambiguity.
answer
Intuition
question
Because the radio station's special rate program was about to expire, Tim proceeded with his promotional campaign even though he didn't have all the information he needed. Tim's information was incomplete because of:
answer
A time constraint
question
When Jerry, a purchasing agent, was looking for ice cream suppliers for JT's Frozen Treats, he got bids from the top two dairies in the area as opposed to all the available suppliers. What type of a decision does he have to make?
answer
Satisficing
question
Paramount Kitchen Countertops decided to ask three advertising agencies to pitch a proposal to handle to organization's business, instead of asking all of the advertising agencies in the city where this organization's headquarters are located to pitch the account. What type of decision does this represent?
answer
Satisficing
question
The purchasing manager for Ford Motor Co. decides to call three suppliers of automobile windshields to ask for bids on an order for windshields for a new Ford car, instead of calling fifty possible windshield suppliers for such a bid. What type of decision does this represent for the purchasing manager?
answer
Satisficing
question
Which of the following is NOT a reason for managers to pursue a satisficing strategy?
answer
Unquantifiable risks
question
A marketing manager wants to budget the advertising for a new product launch. She is trying to determine the amount of money that her company can afford to spend on advertising this new product. On which criterion of decision-making is this marketing manager focusing?
answer
Economic feasibility
question
Dale, a manager, is assessing possible alternatives for the solution of a problem. As Dale does so, he attempts to determine if a possible alternative will threaten other company projects. On which criterion for decision-making is Dale focusing?
answer
Practicality
question
Corey has been looking at several alternative locations for his new facility location. Corey performs a cost-benefit analysis of several alternative locations in order to determine the net financial payoff of each location. On which criterion for decision-making is Corey focusing?
answer
Economic feasibility
question
When managers responsible for the decision to launch the Challenger space shuttle were attempting to balance the conflicting demands for ensuring the safety of the astronauts with the desire to obtain future funding for the U.S. space program, on which decision-making criterion were these managers focusing?
answer
Economic feasibility
question
The explosion of the space shuttle Challenger is an example of poor managerial decision-making where managers neglected the criterion of:
answer
Ethicalness
question
Mistakes in decision-making that some managers make over and over again without learning from their mistakes are known as:
answer
Systematic errors
question
What cognitive bias results from the tendency to generalize inappropriately from a small sample of from a single event or episode?
answer
Representative bias
question
What cognitive bias results from overestimating one's own ability to influence actions and events?
answer
Illusion of control
question
Having committed large amounts of manpower and money to his landscaping business, Tony continues to keep the business running even though financial reports show that the business is failing. What is the source of Tony's cognitive bias?
answer
Escalating commitment
question
Which of the following is NOT an advantage of group decision-making?
answer
Groupthink can occur
question
A member of a group challenges the decision toward which the group is leaning so that the group carefully considers all of the unacceptable possible outcomes of the alternative that the group is considering. This is known as:
answer
Devil's advocacy
question
What is the process used by managers to improve the ability of subordinates to understand and to manage the organization?
answer
Organizational learning
question
In managerial decision-making, the ability of a manager to discover novel ideas as possible alternative courses of action for the organization to use in solving a particular problem is known as:
answer
Creativity
question
A group decision-making method that can by done by email is:
answer
The Delphi technique
