question

Managers often ignore problems.

answer

TRUE

question

Managers typically face ill-structured problems, leaving the decision maker uncertain about how to proceed.

answer

TRUE

question

Jake Smith is the manager of a small auto repair shop and must decide how much money he owes his suppliers. This is an example of a non-programmed decision.

answer

FALSE

question

Programmed decisions are useful when there is no predetermined structure on which to rely.

answer

FALSE

question

Important, difficult decisions tend to be nonprogrammed, and they demand creative approaches.

answer

TRUE

question

During and after Hurricane Katrina, which destroyed so much of the city of New Orleans, the decisions made by government officials were mostly programmed.

answer

FALSE

question

Risk is a fact of life in nonprogrammed management decisions.

answer

TRUE

question

Managers prefer uncertainty to certainty because it makes the job more challenging and interesting.

answer

FALSE

question

Another way of referring to "risk" is "taking a risk."

answer

FALSE

question

Conflict exists when the manager must consider opposing pressures from different sources.

answer

TRUE

question

Two opposing pressures that can lead to conflict include psychological and interpersonal.

answer

TRUE

question

The first stage of decision making requires the decision maker to generate alternatives.

answer

FALSE

question

The "problem" in decision making may actually be an opportunity that needs to be exploited.

answer

TRUE

question

The first stage of decision making requires the decision maker to generate alternatives.

answer

FALSE

question

The "problem" in decision making may actually be an opportunity that needs to be exploited.

answer

TRUE

question

Choosing a ready-made alternative will likely take less time than designing a custom-made solution.

answer

TRUE

question

Ready-made solutions are ideas that have been seen or tried before.

answer

TRUE

question

Fundamental to choosing an alternative is to predict the consequences that will occur if the various options are put into effect.

answer

TRUE

question

Contingency plans are best developed after the decision is made. FALSE

answer

FALSE

question

Satisficing is achieving the best possible outcome. FALSE

answer

FALSE

question

When you satisfice, you compare your choice against your goal, not against other options. TRUE

answer

TRUE

question

Optimizing means that you achieve the best possible balance among several goals.

answer

TRUE

question

Decision makers should presume that things will go smoothly during implementation. FALSE

answer

FALSE

question

Evaluating the decision is useful whether the conclusion is positive or negative. TRUE

answer

TRUE

question

Vigilance means that the decision maker evaluates every decision he or she makes. FALSE

answer

FALSE

question

Following all six stages of the decision making process guarantees successful decisions. FALSE

answer

FALSE

question

Decisions are influenced by subjective psychological biases, time pressures, and social realities. TRUE

answer

TRUE

question

The illusion of control is a belief that one can influence events even when one has no control over what will happen.

answer

TRUE

question

Framing effects refer to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented. TRUE

answer

TRUE

question

Discounting the future is said to partly explain governmental budget deficits, environmental destruction, and decaying urban infrastructure.

answer

TRUE

question

The most conscientiously made business decisions can become irrelevant and even disastrous if managers take too long to make them.

answer

TRUE

question

Many organizational decisions are the result of intensive social interactions, bargaining, and politicking.

answer

TRUE

question

Some experts advise that in today's complex business environment, significant problems should always be tackled by groups.

answer

TRUE

question

One advantage of using a group for decision making is that one person dominates.

answer

FALSE

question

One potential advantage of a group for decision making is that people understand the decision.

answer

TRUE

question

A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges is called groupthink.

answer

FALSE

question

Effectively managing group decision making requires an appropriate leadership style, the constructive use of disagreement and conflict, and the enhancement of creativity.

answer

TRUE

question

The most constructive type of conflict is cognitive conflict.

answer

TRUE

question

The job of a "devil's advocate" is to create destructive conflict.

answer

FALSE

question

Affective conflict is differences in perspectives or judgments about issues, whereas cognitive conflict is emotional and directed at other people.

answer

FALSE

question

Creativity is more than just an option; it is essential to a firm's survival.

answer

TRUE

question

In brainstorming, group members generate as many ideas about a problem as they can.

answer

TRUE

question

Brainstorming isn't necessarily as effective as some people think.

answer

TRUE

question

Incremental rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed.

answer

FALSE

question

Incremental decision making occurs when managers make small decisions and move cautiously toward a bigger solution.

answer

TRUE

question

The confrontational model of decision making arises when people disagree on goals or compete with one another for resources.

answer

FALSE

question

The garbage can model of decision making occurs when people aren't sure of their goals, or disagree about the goals, and likewise are unsure of or in disagreement about what to do.

answer

TRUE

question

Decision making under crisis conditions will inevitably result in poor decisions and negative publicity.

answer

FALSE

question

Characteristics of managerial decisions include which of the following?

answer

D. Lack of structure

question

Managers often ignore problems for which of the following reasons?

answer

E. Managers cannot be sure how much time, energy, or trouble lie ahead once they start working on the problem.

question

__________ are those decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations.

answer

E. Programmed decisions

question

Decisions encountered and made before, having objectively correct answers and solvable by using simple rules, policies or numerical computations are

answer

B. programmed decisions.

question

New, novel, complex decisions having no proven answers are

answer

A. nonprogrammed decisions.

question

The state that exists when decision makers have accurate and comprehensive information is

answer

C. certainty.

question

The state that exists when decision makers have insufficient information is

answer

A. uncertainty.

question

Sally, the owner of Learn English! educational salons is contemplating whether to open the company's first international branch in Europe or in Asia. She is facing a _______ decision.

answer

D. nonprogrammed

question

Quan works for a large contractor. Company policy requires that in hiring subcontractors, at least three bids must be received and that the lowest bid which meets specifications will be accepted. Quan's decisions regarding the hiring of subcontractors would be classified as

answer

B. programmed.

question

Uncertainty exists when the manager

answer

D. has insufficient information to make the decision.

question

The state that exists when the probability of success is less than 100 percent and losses may occur is

answer

E. risk.

question

Opposing pressures from different sources is called

answer

A. conflict.

question

Jonathan has received two job offers. One is from a firm in New York City, where Jonathan would like to live but the other offer in Kansas City would pay more. Jonathan is having a difficult time making a decision due to experiencing

answer

D. psychological conflict.

question

The initial step in the decision making process is to

answer

E. identify the problem.

question

A manager may discover that a problem exists with current company performance by comparing it with

answer

A. past performance. B. the performance of other organizations. C. future performance forecasts. D. the business plan for the year. E. all of the above.

question

Once a problem is identified and properly diagnosed, the next stage in the decision making process involves

answer

E. generating alternative solutions.

question

When a solution is specifically designed for a particular problem or set of problems, it is called a

answer

E. custom-made solution.

question

Custom-made decisions most often require

answer

D. creativity.

question

Alternative courses of action that can be implemented based on how the future unfolds are called

answer

E. shadow plans.

question

Making a decision by accepting the first option that meets your goal is referred to as

answer

B. satisficing.

question

Managers who optimize their decisions will attempt to choose

answer

E. an alternative that achieves the best possible balance among several goals.

question

To maximize is to

answer

C. achieve the best possible outcome.

question

Implementing a decision must be planned carefully. Adequate planning most often requires which of the following steps?

answer

B. Order the steps necessary to achieve a fully operational decision.

question

The final stage in the decision-making process is

answer

E. evaluating the decision.

question

Negative feedback received during the final evaluation of the decision best indicates

answer

D. the decision was a bad one.

question

Vigilance in decision making means

answer

B. the manager has carefully and conscientiously completed all stages in the decision making process.

question

Managers' faulty thought processes that can lead companies to failure include

answer

D. I must weigh short-term costs and benefits more heavily than long-term costs and benefits.

question

Which of the following is an example of subjective bias that many corporate executives exhibit?

answer

D. Framing effects

question

Psychological bias in decision making refers to

answer

D. the inability to be objective when gathering, evaluating and applying information for decision making.

question

The psychological bias known as "illusion of control" refers to a

answer

B. belief that you can influence events even when you have no control over what will happen.

question

Gambling is an example of which of the following psychological biases?

answer

A. Illusion of control

question

Illusion of control, discounting the future and framing effects are all examples of

answer

B. psychological biases.

question

The way in which the alternatives to a decision are stated or phrased may have an impact on which alternative is chosen. Varying alternatives can be presented in a more favorable or less favorable way, affecting the decision. This is referred to as

answer

A. framing effects.

question

Discounting the future refers to

answer

D. valuing short-term benefits and costs more heavily than longer-term benefits and costs.

question

Students who don't study, dieters who sneak dessert and working people who take the afternoon off when they really need to work are all examples of which psychological bias?

answer

C. Discounting the future

question

Tactics that are used to make decisions quickly while maintaining the high quality of such decisions include

answer

A. taking a realistic view of the conflict. B. involving people in the decision who are experts and can be trusted. C. focusing on real-time information. D. involving people more effectively and efficiently. E. doing all of the above.

question

Real-time information is information that

answer

A. is obtained with little or no delay.

question

The basic philosophy behind group decision making is that "two heads are better than one." But does this statement hold true in an organizational setting?

answer

B. Yes, potentially

question

Advantages in using a group for decision making include

answer

A. intellectual stimulation

question

A potential disadvantage of group decisions include which of the following?

answer

A. Goal displacement

question

Which of the following statements about group decision making improves the chances that the decision will be implemented successfully?

answer

C. People who participate in a group discussion are more likely to understand why the decision was made.

question

Allowing one person to control a discussion or decision is referred to as

answer

C. domination

question

A phenomenon that occurs in decision-making when group members avoid disagreement as they strive for consensus is

answer

D. groupthink.

question

A condition that occurs when a decision-making group loses sight of its original goal and a new, possibly less important, goal emerges is

answer

A. goal displacement.

question

Shannon left the meeting, frustrated as usual. The group really needed to make some decisions regarding next year's marketing campaign. Tony rammed all his ideas through; they were good, but nobody else dared to speak up or contribute. This group experienced

answer

B. domination.

question

When a group accepts an alternative that seems to please the members of the group, but the group has not taken the time or effort to explore many options, the group has

answer

C. satisficed.

question

Groupthink is

answer

A. avoiding disagreement while striving for consensus.

question

Groups that operate under a condition known as groupthink are most likely

answer

D. concerned with maintaining a positive team spirit.

question

When new goals emerge in the process of a group making a decision and the original goal is forgotten or replaced, __________ has occurred.

answer

B. goal displacement

question

Leaders of decision-making groups should

answer

D. pay close attention to the group process.

question

Issue-based differences in perspectives or judgments are

answer

E. dialectic conflicts.

question

Emotional disagreements directed toward other people are known as

answer

B. affective conflicts.

question

Of the suggestions below, the most constructive type of conflict is ______________ conflict.

answer

C. cognitive

question

In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Tiffani to the task of criticizing ideas throughout the meeting. In this example, Tiffani was playing the role of

answer

B. devil's advocate.

question

Two of your employees consistently disagree with each other to the point of developing anger and bitterness, which impacts the work group. This situation is best described as

answer

B. affective conflict.

question

Which of the following best describes the requirements of the dialectic method?

answer

B. A debate between two conflicting courses of action is held.

question

In an attempt to make a conflict between two employees less personal and emotional, their manager assigns each of them to approach a problem from a different viewpoint than their original one. This is an example of using the ____________ approach.

answer

A. cognitive conflict

question

Which of the following statements about encouraging creativity is true?

answer

B. You are being creative if you join two previously unrelated things.

question

A process in which group members generate as many ideas about a problem as they can; and criticism is withheld until all ideas have been proposed is called

answer

A. brainstorming.

question

In order to be creative, a brainstorming session must

answer

A. be free of criticism.

question

____________ is the concept that decision makers cannot be truly rational because decisions are complex and complete information is unavailable.

answer

A. Bounded rationality

question

The ______________ model of decision making arises when people disagree on goals or compete with one another for resources.

answer

D. coalitional

question

The _______ model of decision making occurs when decision makers make small decisions and move in piece-meal fashion toward a bigger solution.

answer

B. incremental

question

Which of the following statements about decision making in a crisis is true?

answer

D. An effective plan for crisis management is essential for the management agenda.

question

Which of the following is an element of an effective plan for crisis management?

answer

C. Psychological and cultural actions

question

The decisions in Scenario A can best be classified as either

answer

B. programmed or nonprogrammed.

question

Decision 4 is an example of which type of decision?

answer

B. Nonprogrammed

question

If, in decision 3, the manager takes the first candidate they see that meets the minimum requirements, without going through every candidate's file to see if anyone else is better, they are

answer

B. satisficing.

question

The owner's belief that he should make every decision himself by diagnosing the problem as he sees it and then immediately implementing a solution is

answer

B. a mistake that often leads to suboptimal decisions.

question

Suppose the owner tells you that the reason he makes every decision himself is because he believes that he can control what happens in the business. This unrealistic view is called

answer

B. discounting the future.

question

The Vice President of Production tells the group that in his area of the company, many managers don't even agree about what their goals are and certainly cannot agree on what action to take. His managers are using which model of decision making?

answer

C. Garbage can model

question

The Vice President of Marketing declares that her people disagree on goals and have now formed groups to advocate for their own interests. Her managers are using

answer

D. coalitional model

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