Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Management
Q:
Scott finds information that counters the claims of the production team. However, Scott decides to ignore the new-found evidence in support of the team's decision. Scott is being adversely influenced by:
A. the illusion of control.
B. organizational learning.
C. groupthink.
D. devil's advocacy.
E. representative bias.
Q:
Which of the following is an advantage of group decision making?
A. Managers can draw on the combined skills, competencies, and accumulated knowledge of group members.
B. Managers can embark on a course of action without wasting time in evaluating its merits.
C. Groups can rally around a central manager and the course of action that he supports.
D. Groupthink can lead to better productivity.
E. Group members commit to a decision without understanding its consequences.
Q:
_____ occurs when individuals in a team strive for agreement among themselves rather than assessing information accurately.
A. Groupthink
B. Intuition
C. Bounded rationality
D. Escalating commitment
E. Representativeness bias
Q:
Which of the following is a guideline for managers to avoid the negative effects of cognitive biases?
A. Concentrate on planning for the future instead of conducting a retrospective analysis.
B. Reward middle managers irrespective of whether they fail or succeed to implement a decision.
C. Rank various alternatives even when all relevant information is not available.
D. List the criteria that are being used to assess and evaluate alternatives.
E. Persist with economically superior alternatives despite the threat of cannibalization.
Q:
Having committed large amounts of manpower and money to his landscaping business, Tony continues to keep the business running despite incurring heavy losses. What is the source of Tony's cognitive bias?
A. Escalating commitment
B. Illusion of control
C. Prior hypothesis bias
D. Representativeness bias
E. Dialectical inquiry
Q:
_____ results from overestimating one's own ability to influence actions and events.
A. Escalating commitment
B. Illusion of control
C. Prior hypothesis bias
D. Representativeness bias
E. Dialectical inquiry
Q:
_____ results from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode.
A. Prior hypothesis
B. Dialectical inquiry
C. Escalating commitment
D. Representativeness bias
E. The illusion of control
Q:
_____ results from the tendency to make decisions based on preexisting beliefs even though evidence suggests that those beliefs are wrong.
A. Prior hypothesis bias
B. Dialectical inquiry
C. Escalating commitment
D. Representativeness bias
E. The illusion of control
Q:
Which of the following is a source of bias that can adversely affect the way managers make decisions?
A. Reasoned judgments
B. Bounded rationality
C. Economic feasibility
D. Escalating commitment
E. Dialectical inquiry
Q:
Mistakes in decision making that some managers make repeatedly are known as:
A. dialectical errors.
B. programmed decisions.
C. nonprogrammed decisions.
D. intuitive judgments.
E. systematic errors.
Q:
_____ are rules of thumb that simplify the decision-making process.
A. Dialectical inquires
B. Cognitive biases
C. Heuristics
D. Intuitions
E. Reasoned judgments
Q:
The last step in the managerial decision-making process is:
A. generating alternatives.
B. learning from feedback.
C. recognizing the need for a decision.
D. implementing the chosen alternative.
E. choosing between alternatives.
Q:
Which of the following is true of decision making?
A. Making a decision and not acting on it is better than not making a decision at all.
B. Identifying relevant information means that the manager has complete information.
C. In order to implement the chosen alternative, many subsequent and related decisions must be made.
D. Effective managers prefer planning for the future rather than conducting a retrospective analysis.
E. If the advantages of an alternative are significantly high, its disadvantages need not be evaluated.
Q:
Which of the following is true of choosing among alternative solutions?
A. The alternative solutions are ranked in the order that they were developed or created.
B. Identifying all relevant information doesn't mean that a manager has complete information.
C. Existence of incomplete information is more serious than ignoring critical information.
D. Once alternatives are chosen and ranked, they must be evaluated.
E. The final step in the decision-making process is choosing among alternative solutions.
Q:
Corey has been looking at several alternative locations for his new facility and performs a cost-benefit analysis in order to determine the net financial payoff of each location. Which criterion of decision making is Corey focusing on?
A. Economic feasibility
B. Practicality
C. Ethicalness
D. Legality
E. Functionality
Q:
Dale, a manager, is assessing possible alternative solutions of a problem. Dale attempts to determine whether a possible alternative will threaten other company projects. Which criterion of decision making is Dale focusing on?
A. Economic feasibility
B. Practicality
C. Legality
D. Ethicalness
E. Functionality
Q:
Dan, the president of Bank Missouri, is attempting to determine whether the bank has both the capability and the resources to open a branch facility in a new location. Which criterion of decision making is Dan focusing on?
A. Practicality
B. Ethicalness
C. Legality
D. Economic feasibility
E. Functionality
Q:
John, an operations manager, has chosen an alternative way to solve a problem he is faced with. Now John must decide whether the company has the capabilities and resources required to implement the alternative. Which criterion of decision making is he focusing on?
A. Legality
B. Ethicality
C. Economic feasibility
D. Practicality
E. Product sustainability
Q:
Steven, a marketing manager, wants to budget the advertising for a new product launch. He is trying to determine the amount of money that the company can afford to spend on advertising. Which criterion of decision making is he focusing on?
A. Legality
B. Ethicality
C. Economic feasibility
D. Practicality
E. Product sustainability
Q:
Which of the following is a reason why managers fail to generate creative solutions?
A. They find it difficult to view problems from a fresh perspective.
B. They often fail to specify the criteria that are important in reaching a decision.
C. They violate domestic or international laws or government regulations.
D. They fail to perform a cost-benefit analysis of the various alternatives.
E. They do not have complete information in most cases.
Q:
The first step in the managerial decision-making process is to:
A. choose between alternatives.
B. assess alternatives.
C. implement the chosen alternative.
D. recognize the need for a decision.
E. conduct a retrospective analysis.
Q:
Which of the following is an accurate description of satisficing?
A. Viewing problems from a fresh perspective to come up with creative alternative solutions to specific problems
B. Generating creative alternatives to solve problems and taking advantage of opportunities by abandoning existing mind-sets
C. Conducting a retrospective analysis to see what can be learned from past successes or failures
D. Searching for and choosing acceptable or satisfactory ways to respond to problems and opportunities rather than trying to make the optimal decision
E. Seeking and using information that is consistent with prior beliefs and ignoring information that contradicts those beliefs
Q:
Managers must rely on their ______ to make the best decision when faced with uncertainty and ambiguity.
A. intuition and judgment
B. cognitive biases
C. bounded rationality
D. escalating commitment
E. illusion of control
Q:
Eileen, a college professor, has to pick a textbook for an upcoming course. She has just enough time to review a few books from the many choices available. She settles for one of the books, even though the best book might be a book that she hasn't yet reviewed. What is this process called?
A. Optimizing
B. Brainstorming
C. Rationality binding
D. Satisficing
E. Cognitive biasing
Q:
Which of the following is a reason for incomplete information?
A. Ambiguity
B. Complexity
C. Specificity
D. Heuristic ability
E. Satisficing ability
Q:
When the probabilities of alternative outcomes cannot be determined and future outcomes are unknown, there exists:
A. satisficing ambiguity.
B. systematic error.
C. prior-hypothesis bias.
D. uncertainty.
E. blocking.
Q:
_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.
A. Uncertainty
B. Incomplete information
C. Risk
D. Ambiguity
E. Cognitive limitation
Q:
According to the administrative model of decision making, why wouldn't managers be able to arrive at the optimum decision even if they had unlimited ability to evaluate information?
A. Managers would not have complete information.
B. Managers would not have bounded rationality.
C. Managers would have no decision-making ability.
D. Managers would have varying perspectives.
E. Managers would have too many alternatives.
Q:
A situation in which the number of suitable alternatives are greater than what a manager can evaluate is called _____.
A. prior-hypothesis
B. bounded rationality
C. productive blocking
D. illusion of control
E. satisficing ambiguity
Q:
Which of the following is an assumption made by the classical model?
A. There is no optimum decision.
B. There is more than one alternative.
C. There is only one alternative.
D. Managers have access to all the information they need.
E. Managers are not capable of making the right decisions.
Q:
In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ____________ decision.
A. intuitive
B. creative
C. heuristic
D. subjective
E. optimum
Q:
The classical model specifies how decisions should be made. In other words it is:
A. heuristic.
B. prescriptive.
C. optimizing.
D. intuitive.
E. satisficing.
Q:
WashUrCar, which operates five car washes, has to decide whether or not it should invest in the latest drying equipment. What type of decision does this represent for the organization?
A. Automatic
B. Intuitive
C. Bounded
D. Nonprogrammed
E. Rule-based
Q:
Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously. What type of decision would this represent?
A. Automatic
B. Rule-based
C. Predetermined
D. Nonprogrammed
E. Inconsequential
Q:
Which of the following would be considered a programmed decision by James Calloway, CEO of FSE Inc.?
A. Launching a new promotional campaign
B. Hiring additional staff
C. Entering a new market
D. Expanding operations internationally
E. Developing a new product line
Q:
Nonroutine decisions made in response to novel situations in business are known as:
A. rule-based decisions.
B. automatic decisions.
C. guideline-based decisions.
D. predetermined decisions.
E. nonprogrammed decisions.
Q:
Programmed decision making is a(n) ______ process.
A. novel
B. routine
C. intuitive
D. unusual
E. creative
Q:
Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts. What type of decision does this represent?
A. Programmed
B. Bounded
C. Intuitive
D. Groupthink
E. Creative
Q:
Peggy, a foreman at a petrochemical plant, 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. What type of decision is this?
A. Intuitive
B. Groupthink
C. Satisficing
D. Programmed
E. Bounded
Q:
Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35. This can be classified as a(n) _____ decision.
A. programmed
B. heuristic
C. brainstormed
D. intuitive
E. creative
Q:
When paper supplies reaches a minimum level, Ethan makes a call to the supplier to order more paper. What type of decision does this represent?
A. Brainstormed decision
B. Heuristic decision
C. Programmed decision
D. Intuitive decision
E. Creative decision
Q:
Decisions that are based on rules and guidelines are known as:
A. brainstormed decisions.
B. heuristic decisions.
C. programmed decisions.
D. intuitive decisions.
E. creative decisions.
Q:
To deal with opportunities and threats, managers must select one solution from a set of alternatives. This process is known as _____.
A. groupthink
B. intuition
C. decision making
D. bounded rationality
E. heuristics
Q:
The higher the level of entrepreneurship in a firm, the higher the level of learning and innovation.
A. True
B. False
Q:
A skunkworks is a group of intrapreneurs who are deliberately separated from the normal operation of an organization to encourage them to devote all their attention to developing new products.
A. True
B. False
Q:
Entrepreneurship is noticing an opportunity to satisfy a customer need and then deciding how to find and use resources to make a product that satisfies that need.
A. True
B. False
Q:
Entrepreneurship is the same as management.
A. True
B. False
Q:
Entrepreneurs have an external locus of control and believe that they are not responsible for what happens to them.
A. True
B. False
Q:
To avoid production blocking that occurs during brainstorming, the nominal group technique is often used.
A. True
B. False
Q:
Brainstorming is a group problem-solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.
A. True
B. False
Q:
Developing a learning organization is a quick and easy process.
A. True
B. False
Q:
Team learning is less important than individual learning when increasing organizational learning.
A. True
B. False
Q:
Allowing individuals to develop a sense of personal mastery is detrimental to organizational learning.
A. True
B. False
Q:
The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.
A. True
B. False
Q:
Dialectical inquiry is easier to implement than devil's advocacy to blunt the effects of groupthink in group decision making.
A. True
B. False
Q:
Groupthink causes the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.
A. True
B. False
Q:
When a group of managers makes a decision, the probability that the decision will be implemented successfully decreases.
A. True
B. False
Q:
Individual decision making is superior to group decision making in several respects.
A. True
B. False
Q:
The illusion of control causes managers to overestimate the odds of a favorable outcome and, consequently, to make inappropriate decisions.
A. True
B. False
Q:
Escalating commitment is the tendency of decision makers to overestimate their ability to control activities and events.
A. True
B. False
Q:
Prior-hypothesis bias implies that managers tend to seek and use information that is consistent with their prior beliefs.
A. True
B. False
Q:
Cognitive biases enable managers to make good decisions.
A. True
B. False
Q:
The final step in the decision-making process is learning from feedback.
A. True
B. False
Q:
The tendency of managers to ignore critical information is not as serious as the existence of incomplete information.
A. True
B. False
Q:
Identifying all relevant information for a decision means the manager has complete information.
A. True
B. False
Q:
The key to a good assessment of the alternatives is to define the opportunity or threat exactly.
A. True
B. False
Q:
Once managers have generated a set of alternatives, the next task is to implement these alternatives.
A. True
B. False
Q:
Generating creative alternatives to solve problems may require managers to abandon their existing mind-sets.
A. True
B. False
Q:
The first step in the decision-making process is to recognize the need for a decision.
A. True
B. False
Q:
When uncertainty exists, the probabilities of alternative outcomes cannot be determined and future outcomes are unknown.
A. True
B. False
Q:
The administrative model suggests that human decision-making capabilities are free of cognitive limitations.
A. True
B. False
Q:
The administrative model is based on three important concepts: bounded rationality, incomplete information, and satisficing.
A. True
B. False
Q:
The administrative model developed by March and Simon fails to explain why decision making is always an inherently uncertain and risky process.
A. True
B. False
Q:
The optimum decision is the most appropriate decision possible in light of what managers believe to be the most desirable consequences for the organization.
A. True
B. False
Q:
The classical decision-making model assumes that managers require very little or no information in order to make an optimum decision.
A. True
B. False
Q:
Managers with limited expertise are more likely to make better intuitive judgments than those with greater expertise.
A. True
B. False
Q:
The likelihood of a manager making an error in judgment is much greater in programmed decision making than in nonprogrammed decision making.
A. True
B. False
Q:
Decisions that require time and effort and result from careful information gathering are called intuitive decisions.
A. True
B. False
Q:
5. A manager who makes a programmed decision relies on established rules and guidelines.
A. True
B. False
Q:
Nonprogrammed decision making is a routine, virtually automatic process.
A. True
B. False