Question 1

According to the evidence-based management approach, managers must _____.

Accepted Answer

A)  discourage employees from telling the unpleasant truth 
B)  be committed to fact-based decision making 
C)  avoid experimentation 
D)  completely rely on the recommendations made by others 
E)  base decisions on untested but strongly held beliefs 
A)  discourage employees from telling the unpleasant truth 
B)  be committed to fact-based decision making 
C)  avoid experimentation 
D)  completely rely on the recommendations made by others 
E)  base decisions on untested but strongly held beliefs B

Question 2

William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____.

Accepted Answer

A)  evidence-based management 
B)  rational decision making 
C)  escalation of commitment 
D)  rationality 
E)  satisficing 
A)  evidence-based management 
B)  rational decision making 
C)  escalation of commitment 
D)  rationality 
E)  satisficing C

Question 3

When managers are aware of all the alternatives in a decision-making situation and the conditions associated with each alternative, they are said to be making the decision under a state of _____.

Accepted Answer

certainty
When the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative, a state of certainty exists.

Question 4

When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision.

Accepted Answer

A)  programmed 
B)  unstructured 
C)  intuitive 
D)  irrational 
E)  strategic 
A)  programmed 
B)  unstructured 
C)  intuitive 
D)  irrational 
E)  strategic

Question 5

Match the following numbered items with the most correct response letter.
A response may be used once, more than once, or not at all.
-More alternatives are generated

Accepted Answer

A) Advantage of individual decision making 
B) Disadvantage of individual decision making 
C) Advantage of group decision making 
D) Disadvantage of group decision making 
A) Advantage of individual decision making 
B) Disadvantage of individual decision making 
C) Advantage of group decision making 
D) Disadvantage of group decision making

Question 6

In general, while identifying alternatives, the more important the decision, _____.

Accepted Answer

A)  the more alternatives should be generated 
B)  the lesser the time needed to make the decision 
C)  the lesser the chances of managers making the right decision 
D)  the more the tendency of managers to ignore intuitions 
E)  the lesser the chances of managers using expert opinion to make the decision 
A)  the more alternatives should be generated 
B)  the lesser the time needed to make the decision 
C)  the lesser the chances of managers making the right decision 
D)  the more the tendency of managers to ignore intuitions 
E)  the lesser the chances of managers using expert opinion to make the decision

Question 7

When the prices of oil came down, the demand for sport utility vehicles (SUVs) increased. Automakers chose to increase production of full-size SUVs as the profit from large vehicles is greater than that from small vehicles. Which step in the rational decision-making model is illustrated in the scenario?

Accepted Answer

A)  Developing a set of rational alternatives 
B)  Evaluating the possible alternatives 
C)  Selecting the best alternative and implementing it 
D)  Recognizing and defining the decision situation 
E)  Evaluating decision effectiveness 
A)  Developing a set of rational alternatives 
B)  Evaluating the possible alternatives 
C)  Selecting the best alternative and implementing it 
D)  Recognizing and defining the decision situation 
E)  Evaluating decision effectiveness

Question 8

In the rational decision-making model, once the alternatives have been evaluated, the next step is to _____.

Accepted Answer

A)  select the best alternative 
B)  implement the chosen alternative 
C)  evaluate the results of the chosen alternative 
D)  identify the available alternatives 
E)  define the decision situation 
A)  select the best alternative 
B)  implement the chosen alternative 
C)  evaluate the results of the chosen alternative 
D)  identify the available alternatives 
E)  define the decision situation

Question 9

Which of the following helps a manager avoid groupthink during group decision making?

Accepted Answer

A)  Assigning one person to act as devil's advocate 
B)  Making his or her preferences known to the group as early as possible 
C)  Instructing members to avoid expressing divergent viewpoints 
D)  Giving the group as much time as they need to make a decision, without enforcing a deadline 
E)  Encouraging group cohesiveness 
A)  Assigning one person to act as devil's advocate 
B)  Making his or her preferences known to the group as early as possible 
C)  Instructing members to avoid expressing divergent viewpoints 
D)  Giving the group as much time as they need to make a decision, without enforcing a deadline 
E)  Encouraging group cohesiveness

Question 10

Match the following numbered items with the most accurate options.
A response may be used once, more than once, or not at all.
-An alternative with minimum standard of sufficiency

Accepted Answer

A) Coalition 
B) Intuition 
C) Escalation of commitment 
D) Risk propensity 
E) Satisficing 
A) Coalition 
B) Intuition 
C) Escalation of commitment 
D) Risk propensity 
E) Satisficing

Question 11

Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, implementing it, and evaluating the results constitute the _____ process.

Accepted Answer

decision-making
Steps in rational decisi

Question 12

One advantage of group decision making is:

Accepted Answer

A)  groupthink. 
B)  saved time. 
C)  more acceptance of the final decision. 
D)  lowered cost of decision making. 
E)  elimination of political forces. 
A)  groupthink. 
B)  saved time. 
C)  more acceptance of the final decision. 
D)  lowered cost of decision making. 
E)  elimination of political forces.

Question 13

Tim is the production manager at a steel factory. One of the steel processing machines in the factory has broken down and has to be replaced. Tim decides to buy a new machine from a company that he has read reviews of in industry magazines, even though there are other companies offering a discount on machines with better functionality. This is an example of how managers are constrained by _____.

Accepted Answer

A)  bounded rationality 
B)  escalation of commitment 
C)  risk propensity 
D)  groupthink 
E)  political forces 
A)  bounded rationality 
B)  escalation of commitment 
C)  risk propensity 
D)  groupthink 
E)  political forces

Question 14

Bounded rationality is assumed in the _____ model of decision making.

Accepted Answer

A)  administrative 
B)  rational 
C)  classical 
D)  groupthink 
E)  irrational 
A)  administrative 
B)  rational 
C)  classical 
D)  groupthink 
E)  irrational

Question 15

Define interacting groups. State one advantage and disadvantage of using these groups in decision making.

Accepted Answer

An interacting group is a decision-makin

Question 16

Match the following numbered items with the most correct response letter.
A response may be used once, more than once, or not at all.
-Groupthink

Accepted Answer

A) Advantage of individual decision making 
B) Disadvantage of individual decision making 
C) Advantage of group decision making 
D) Disadvantage of group decision making 
A) Advantage of individual decision making 
B) Disadvantage of individual decision making 
C) Advantage of group decision making 
D) Disadvantage of group decision making

Question 17

Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____.

Accepted Answer

A)  decision making 
B)  optimizing 
C)  rationalizing 
D)  brainstorming 
E)  social loafing 
A)  decision making 
B)  optimizing 
C)  rationalizing 
D)  brainstorming 
E)  social loafing

Question 18

Peter was looking for alternatives to double his plant's production capacity, and he considered acquiring the production plant of a rival company. The engineers in Peter's company advised him against it because acquiring the new plant would only increase their company's production by 15 percent. Therefore, Peter's idea failed the test for _____ in the context of the rational decision-making process.

Accepted Answer

A)  feasibility 
B)  satisfactoriness 
C)  bounded rationality 
D)  satisficing 
E)  escalation of commitment 
A)  feasibility 
B)  satisfactoriness 
C)  bounded rationality 
D)  satisficing 
E)  escalation of commitment

Question 19

Professor Campbell needs to recommend a biology textbook for his senior class. Only two well-known publishers, Educate and WordTree, publish biology textbooks in the state, and both publishers are known for the clarity and extensiveness of their content. When Campbell chooses a textbook from one of the two publishers, he is making a decision in a state of _____.

Accepted Answer

A)  certainty 
B)  irrationality 
C)  risk 
D)  imperfect information 
E)  ambiguity 
A)  certainty 
B)  irrationality 
C)  risk 
D)  imperfect information 
E)  ambiguity

Question 20

A(n) _____ is a decision-making group or team in which members openly discuss, argue about, and agree on the best alternative.

Accepted Answer

interacting group
An interacti

According to the evidence-based management approach, managers must _____.

William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____.

When managers are aware of all the alternatives in a decision-making situation and the conditions associated with each alternative, they are said to be making the decision under a state of _____.

When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision.

Match the following numbered items with the most correct response letter. A response may be used once, more than once, or not at all. -More alternatives are generated

In general, while identifying alternatives, the more important the decision, _____.

In the rational decision-making model, once the alternatives have been evaluated, the next step is to _____.

Which of the following helps a manager avoid groupthink during group decision making?

Match the following numbered items with the most accurate options. A response may be used once, more than once, or not at all. -An alternative with minimum standard of sufficiency

Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, implementing it, and evaluating the results constitute the _____ process.

One advantage of group decision making is:

Bounded rationality is assumed in the _____ model of decision making.

Define interacting groups. State one advantage and disadvantage of using these groups in decision making.

Match the following numbered items with the most correct response letter. A response may be used once, more than once, or not at all. -Groupthink

Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____.

A(n) _____ is a decision-making group or team in which members openly discuss, argue about, and agree on the best alternative.

Understanding the Managers Job

The Environment of Organizations and Managers

Planning and Strategic Management

Entrepreneurship and New Venture Management

Organization Structure and Design

Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Leadership and Influence Processes

Communication in Organizations

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Filters

Exam 4: Managing Decision Making

According to the evidence-based management approach, managers must _____.

William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____.

When managers are aware of all the alternatives in a decision-making situation and the conditions associated with each alternative, they are said to be making the decision under a state of _____.

When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision.

Match the following numbered items with the most correct response letter. A response may be used once, more than once, or not at all. -More alternatives are generated

In general, while identifying alternatives, the more important the decision, _____.

In the rational decision-making model, once the alternatives have been evaluated, the next step is to _____.

Which of the following helps a manager avoid groupthink during group decision making?

Match the following numbered items with the most accurate options. A response may be used once, more than once, or not at all. -An alternative with minimum standard of sufficiency

Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, implementing it, and evaluating the results constitute the _____ process.

One advantage of group decision making is:

Bounded rationality is assumed in the _____ model of decision making.

Define interacting groups. State one advantage and disadvantage of using these groups in decision making.

Match the following numbered items with the most correct response letter. A response may be used once, more than once, or not at all. -Groupthink

Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____.

A(n) _____ is a decision-making group or team in which members openly discuss, argue about, and agree on the best alternative.

Understanding the Managers Job

The Environment of Organizations and Managers

Planning and Strategic Management

Entrepreneurship and New Venture Management

Organization Structure and Design

Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Leadership and Influence Processes

Communication in Organizations

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Filters