Question 1

Which of the following organizations is most likely to use the incrementalist model for decision-making?

Accepted Answer

A)  a biotechnology company that operates in a dynamic environment 
B)  a dominant manufacturer of printing papers that operates in a stable environment 
C)  a software services company that operates in a very competitive environment 
D)  a pharmaceutical company that operates in a complex and highly uncertain environment because it has many groups of stakeholders 
A)  a biotechnology company that operates in a dynamic environment 
B)  a dominant manufacturer of printing papers that operates in a stable environment 
C)  a software services company that operates in a very competitive environment 
D)  a pharmaceutical company that operates in a complex and highly uncertain environment because it has many groups of stakeholders

Question 2

Top-management teams function most effectively when their membership is stable and there is not too much entry into or departure from the team.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is most likely to be true regarding an inert culture?

Accepted Answer

A)  According to Kotter and Heskett, organizational learning is higher in organizations with inert cultures than that in organizations with adaptive culture. 
B)  Inert cultures encourage and reward experimentation and risk taking by middle and lower-level managers. 
C)  Organizations with inert cultures are less likely to survive in a changing environment than organizations with adaptive cultures. 
D)  An inert culture is typically found in an organization with organic structure. 
A)  According to Kotter and Heskett, organizational learning is higher in organizations with inert cultures than that in organizations with adaptive culture. 
B)  Inert cultures encourage and reward experimentation and risk taking by middle and lower-level managers. 
C)  Organizations with inert cultures are less likely to survive in a changing environment than organizations with adaptive cultures. 
D)  An inert culture is typically found in an organization with organic structure.

Question 4

Typically, a codification approach to knowledge management is pursued when an organization needs to provide customized products or solutions to clients, when technology is changing rapidly, and when employees rely much more on know-how, insight, and judgment to make decisions.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true regarding nonprogrammed decision-making?

Accepted Answer

A)  Nonprogrammed decision-making is performed with the help of standard operating procedures. 
B)  Nonprogrammed decision-making involves selecting the most effective-easy, repetitive, and routine-operating procedures to handle an organization's ongoing value-creation activities. 
C)  Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems. 
D)  Nonprogrammed decision-making requires much less search for information to find solutions than does programmed decision-making. 
A)  Nonprogrammed decision-making is performed with the help of standard operating procedures. 
B)  Nonprogrammed decision-making involves selecting the most effective-easy, repetitive, and routine-operating procedures to handle an organization's ongoing value-creation activities. 
C)  Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems. 
D)  Nonprogrammed decision-making requires much less search for information to find solutions than does programmed decision-making.

Question 6

Which of the following organizational learning strategies, proposed by James March, involves organizational members learning ways to refine and improve existing organizational activities and procedures to increase effectiveness?

Accepted Answer

A)  exploration 
B)  association 
C)  exploitation 
D)  reciprocation 
A)  exploration 
B)  association 
C)  exploitation 
D)  reciprocation

Question 7

The creation of an organization's strategy is an example of programmed decision-making.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an example of organizational learning that involves exploration?

Accepted Answer

A)  a supplier implements a TQM program 
B)  a steel mill refines its production processes 
C)  an automobile manufacturer enters into a strategic alliance 
D)  a software services company modifies its existing leave policy 
A)  a supplier implements a TQM program 
B)  a steel mill refines its production processes 
C)  an automobile manufacturer enters into a strategic alliance 
D)  a software services company modifies its existing leave policy

Question 9

A fundamental premise of ________ theory is that when making decisions, managers need to think in two related ways. First, they need to look forward and anticipate how rivals will respond to their competitive moves and second, managers need to reason backward to determine which moves their company should pursue today given their assessment of how their rivals will respond to various future moves.

Accepted Answer

A)  transaction cost 
B)  game 
C)  population ecology 
D)  institutional 
A)  transaction cost 
B)  game 
C)  population ecology 
D)  institutional

Question 10

Explain the cognitive bias of illusion of control.

Accepted Answer

Illusion of control is a cognitive bias

Question 11

________ is a cognitive bias that leads managers to interpret events in such a way that their actions appear in the most favorable light.

Accepted Answer

A)  Representativeness 
B)  Self-concordance 
C)  Frequency 
D)  Ego-defensiveness 
A)  Representativeness 
B)  Self-concordance 
C)  Frequency 
D)  Ego-defensiveness

Question 12

Satisficing occurs when decision makers ________.

Accepted Answer

A)  evaluate all the possible courses of action and their consequences and select the optimal solution 
B)  try to minimize conflict and reach a consensus without critical evaluation of alternative ideas or viewpoints 
C)  view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately 
D)  conduct limited information searches to identify problems and alternative solutions 
A)  evaluate all the possible courses of action and their consequences and select the optimal solution 
B)  try to minimize conflict and reach a consensus without critical evaluation of alternative ideas or viewpoints 
C)  view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately 
D)  conduct limited information searches to identify problems and alternative solutions

Question 13

Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.

Accepted Answer

A) True 
 B)False

Question 14

According to the principle of systems thinking, to create a learning organization, ________.

Accepted Answer

A)  decision-making should be centralized 
B)  managers must recognize the effects of one level of learning on the others 
C)  span of control should be narrow 
D)  middle and lower-level managers should be discouraged from risk taking 
A)  decision-making should be centralized 
B)  managers must recognize the effects of one level of learning on the others 
C)  span of control should be narrow 
D)  middle and lower-level managers should be discouraged from risk taking

Question 15

Which of the following statements is true regarding the Carnegie model?

Accepted Answer

A)  The Carnegie model ignores the variation in managers' preferences and values and assumes different managers will evaluate different alternatives in the same way. 
B)  The Carnegie model offers a less accurate description of how decision-making takes place in an organization than does the rational model. 
C)  The Carnegie model recognizes that decision-making takes place in an uncertain environment where information is often incomplete and ambiguous. 
D)  The Carnegie model assumes that managers generate the full range of possible alternatives before making decisions. 
A)  The Carnegie model ignores the variation in managers' preferences and values and assumes different managers will evaluate different alternatives in the same way. 
B)  The Carnegie model offers a less accurate description of how decision-making takes place in an organization than does the rational model. 
C)  The Carnegie model recognizes that decision-making takes place in an uncertain environment where information is often incomplete and ambiguous. 
D)  The Carnegie model assumes that managers generate the full range of possible alternatives before making decisions.

Question 16

Explain the difference between adaptive cultures and inert cultures.

Accepted Answer

Adaptive cultures are those that value i

Question 17

The rational model of decision-making assumes that different managers use different preferences and values and will use different rules to decide on the best alternative.

Accepted Answer

A) True 
 B)False

Question 18

Game theory is particularly useful in analyzing situations where a company is competing against a limited number of rivals in its domain and they are highly interdependent.

Accepted Answer

A) True 
 B)False

Question 19

A cognitive bias that causes managers to overestimate the extent to which the outcomes of an action are under their personal control is referred to as the "halo effect."

Accepted Answer

A) True 
 B)False

Question 20

________ is a cognitive bias that leads managers to continue a losing course of action and to refuse to admit they have made a mistake.

Accepted Answer

A)  Escalation of commitment 
B)  Self-concordance 
C)  Frequency 
D)  Representativeness 
A)  Escalation of commitment 
B)  Self-concordance 
C)  Frequency 
D)  Representativeness

Which of the following organizations is most likely to use the incrementalist model for decision-making?

Top-management teams function most effectively when their membership is stable and there is not too much entry into or departure from the team.

Which of the following statements is most likely to be true regarding an inert culture?

Typically, a codification approach to knowledge management is pursued when an organization needs to provide customized products or solutions to clients, when technology is changing rapidly, and when employees rely much more on know-how, insight, and judgment to make decisions.

Which of the following statements is true regarding nonprogrammed decision-making?

Which of the following organizational learning strategies, proposed by James March, involves organizational members learning ways to refine and improve existing organizational activities and procedures to increase effectiveness?

The creation of an organization's strategy is an example of programmed decision-making.

Which of the following is an example of organizational learning that involves exploration?

Explain the cognitive bias of illusion of control.

________ is a cognitive bias that leads managers to interpret events in such a way that their actions appear in the most favorable light.

Satisficing occurs when decision makers ________.

Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.

According to the principle of systems thinking, to create a learning organization, ________.

Which of the following statements is true regarding the Carnegie model?

Explain the difference between adaptive cultures and inert cultures.

The rational model of decision-making assumes that different managers use different preferences and values and will use different rules to decide on the best alternative.

Game theory is particularly useful in analyzing situations where a company is competing against a limited number of rivals in its domain and they are highly interdependent.

A cognitive bias that causes managers to overestimate the extent to which the outcomes of an action are under their personal control is referred to as the "halo effect."

________ is a cognitive bias that leads managers to continue a losing course of action and to refuse to admit they have made a mistake.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Organizing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 12: Decision Making, Learning, Knowledge Management, and Information Technology

Which of the following organizations is most likely to use the incrementalist model for decision-making?

Top-management teams function most effectively when their membership is stable and there is not too much entry into or departure from the team.

Which of the following statements is most likely to be true regarding an inert culture?

Typically, a codification approach to knowledge management is pursued when an organization needs to provide customized products or solutions to clients, when technology is changing rapidly, and when employees rely much more on know-how, insight, and judgment to make decisions.

Which of the following statements is true regarding nonprogrammed decision-making?

Which of the following organizational learning strategies, proposed by James March, involves organizational members learning ways to refine and improve existing organizational activities and procedures to increase effectiveness?

The creation of an organization's strategy is an example of programmed decision-making.

Which of the following is an example of organizational learning that involves exploration?

Explain the cognitive bias of illusion of control.

________ is a cognitive bias that leads managers to interpret events in such a way that their actions appear in the most favorable light.

Satisficing occurs when decision makers ________.

Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.

According to the principle of systems thinking, to create a learning organization, ________.

Which of the following statements is true regarding the Carnegie model?

Explain the difference between adaptive cultures and inert cultures.

The rational model of decision-making assumes that different managers use different preferences and values and will use different rules to decide on the best alternative.

Game theory is particularly useful in analyzing situations where a company is competing against a limited number of rivals in its domain and they are highly interdependent.

A cognitive bias that causes managers to overestimate the extent to which the outcomes of an action are under their personal control is referred to as the "halo effect."

________ is a cognitive bias that leads managers to continue a losing course of action and to refuse to admit they have made a mistake.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Organizing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters