Question 1

The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

Accepted Answer

A) True 
 B)False

Question 2

A policy is an explicit statement that tells a manager what can or cannot be done.

Accepted Answer

A) True 
 B)False

Question 3

Nonprogrammed decisions ________.

Accepted Answer

A)  involve standardized solutions 
B)  are usually made by lower-level managers 
C)  are associated with clear and specific goals 
D)  are unique and nonrecurring 
A)  involve standardized solutions 
B)  are usually made by lower-level managers 
C)  are associated with clear and specific goals 
D)  are unique and nonrecurring

Question 4

The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

Accepted Answer

A) True 
 B)False

Question 5

Pat is the manager of a large project that has been underway for the last eight months.It has now become apparent that, due to various external factors, the project is unlikely to succeed.Even though the best option would be to withdraw from the project, Pat continues to pump money and resources into it in the hope that the project's prospects will change.He reasons that he doesn't want all those months of hard work to go to waste.This is an example of the ________.

Accepted Answer

A)  availability bias 
B)  hindsight bias 
C)  sunk costs error 
D)  self-serving bias 
A)  availability bias 
B)  hindsight bias 
C)  sunk costs error 
D)  self-serving bias

Question 6

The availability bias describes the actions of decision makers who try to create meaning out of random events.

Accepted Answer

A) True 
 B)False

Question 7

Escalation of commitment refers to ________.

Accepted Answer

A)  commitment to a faulty decision due to an unwillingness to go against the opinion of the majority 
B)  an increased commitment to a previous decision despite evidence that it may have been wrong 
C)  the strengthening of commitment to a particular course of action due to greater motivation by others 
D)  greater commitment to a decision because of ones belief that it is "the right thing to do" 
A)  commitment to a faulty decision due to an unwillingness to go against the opinion of the majority 
B)  an increased commitment to a previous decision despite evidence that it may have been wrong 
C)  the strengthening of commitment to a particular course of action due to greater motivation by others 
D)  greater commitment to a decision because of ones belief that it is "the right thing to do"

Question 8

A decision criterion defines what is important or relevant to resolving a problem.

Accepted Answer

A) True 
 B)False

Question 9

Managers cannot possibly analyze all information on all alternatives, they tend to ________, rather than ________.

Accepted Answer

A)  maximize; satisfice 
B)  neutralize; satisfice 
C)  satisfice; neutralize 
D)  satisfice; maximize 
A)  maximize; satisfice 
B)  neutralize; satisfice 
C)  satisfice; neutralize 
D)  satisfice; maximize

Question 10

Martie had arranged for a high-profile speaker to deliver the keynote address at her college's annual function.However, due to unforeseen circumstances, the speaker was forced to drop out at the last moment.Martie reacts to this news by saying, "I knew all along that this would happen." This is an example of the ________.

Accepted Answer

A)  anchoring bias 
B)  randomness bias 
C)  self-serving bias 
D)  hindsight bias 
A)  anchoring bias 
B)  randomness bias 
C)  self-serving bias 
D)  hindsight bias

Question 11

When a customer calls and requests a refund for a partial month's usage of the cable service, the fact that such situations are routine and most likely have a standard response would make the response a(n) ________ decision.

Accepted Answer

A)  unstructured 
B)  nonprogrammed 
C)  speculative 
D)  programmed 
A)  unstructured 
B)  nonprogrammed 
C)  speculative 
D)  programmed

Question 12

Lower-level managers typically confront ________.

Accepted Answer

A)  unstructured problems 
B)  new and unusual problems 
C)  programmed decisions 
D)  nonprogrammed decisions 
A)  unstructured problems 
B)  new and unusual problems 
C)  programmed decisions 
D)  nonprogrammed decisions

Question 13

Nonprogrammed decision making relies on procedures, rules, and policies.

Accepted Answer

A) True 
 B)False

Question 14

Max is planning on going away to college next year and is currently trying to figure out which colleges he should apply to.He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid.In terms of the decision-making process, these represent Max's ________.

Accepted Answer

A)  problems 
B)  alternatives 
C)  decision criteria 
D)  heuristics 
A)  problems 
B)  alternatives 
C)  decision criteria 
D)  heuristics

Question 15

List and discuss the eight steps in the decision-making process.

Accepted Answer

Step 1: Identifying a problem - The deci

Question 16

The decision-making process begins by identifying decision criteria.

Accepted Answer

A) True 
 B)False

Question 17

Rules of thumb that managers use to simplify decision making are known as ________.

Accepted Answer

A)  heuristics 
B)  folksonomies 
C)  algorithms 
D)  sophisms 
A)  heuristics 
B)  folksonomies 
C)  algorithms 
D)  sophisms

Question 18

Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.

Accepted Answer

A)  unveiling a rational approach to address the situation 
B)  analyzing the situation with deductive reasoning 
C)  developing solutions which somehow seem inevitable 
D)  gaining a deep understanding of the situation 
A)  unveiling a rational approach to address the situation 
B)  analyzing the situation with deductive reasoning 
C)  developing solutions which somehow seem inevitable 
D)  gaining a deep understanding of the situation

Question 19

The ________ happens when decisions makers tend to remember events that are the most recent and vivid in their memory.

Accepted Answer

A)  self-serving bias 
B)  availability bias 
C)  representation bias 
D)  randomness bias 
A)  self-serving bias 
B)  availability bias 
C)  representation bias 
D)  randomness bias

Question 20

After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

Accepted Answer

A)  allocating weights to the criteria 
B)  analyzing the alternatives to solving the problem 
C)  reducing the number of criteria through the process of elimination 
D)  implementing the alternative 
A)  allocating weights to the criteria 
B)  analyzing the alternatives to solving the problem 
C)  reducing the number of criteria through the process of elimination 
D)  implementing the alternative

The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

A policy is an explicit statement that tells a manager what can or cannot be done.

Nonprogrammed decisions ________.

The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

The availability bias describes the actions of decision makers who try to create meaning out of random events.

Escalation of commitment refers to ________.

A decision criterion defines what is important or relevant to resolving a problem.

Managers cannot possibly analyze all information on all alternatives, they tend to , rather than .

When a customer calls and requests a refund for a partial month's usage of the cable service, the fact that such situations are routine and most likely have a standard response would make the response a(n) ________ decision.

Lower-level managers typically confront ________.

Nonprogrammed decision making relies on procedures, rules, and policies.

List and discuss the eight steps in the decision-making process.

The decision-making process begins by identifying decision criteria.

Rules of thumb that managers use to simplify decision making are known as ________.

Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.

The ________ happens when decisions makers tend to remember events that are the most recent and vivid in their memory.

After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

Management and Organizations

Understanding Management: Constraints and Challenges

Managing in a Global Environment

Managing Diversity

Managing Social Responsibility and Ethics

Managing Change and Innovation

Foundations of Planning

Strategic Management

Managerial Controls

Basic Organizational Design

Adaptive Organizational Design

Managing Human Resources

Managing Teams

Understanding Individual Behavior

Managers and Communication

Motivating Employees

Managers As Leaders

Filters

Exam 6: Managers As Decision Makers

The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

A policy is an explicit statement that tells a manager what can or cannot be done.

Nonprogrammed decisions ________.

The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

The availability bias describes the actions of decision makers who try to create meaning out of random events.

Escalation of commitment refers to ________.

A decision criterion defines what is important or relevant to resolving a problem.

Managers cannot possibly analyze all information on all alternatives, they tend to ________, rather than ________.

When a customer calls and requests a refund for a partial month's usage of the cable service, the fact that such situations are routine and most likely have a standard response would make the response a(n) ________ decision.

Lower-level managers typically confront ________.

Nonprogrammed decision making relies on procedures, rules, and policies.

List and discuss the eight steps in the decision-making process.

The decision-making process begins by identifying decision criteria.

Rules of thumb that managers use to simplify decision making are known as ________.

Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.

The ________ happens when decisions makers tend to remember events that are the most recent and vivid in their memory.

After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

Management and Organizations

Understanding Management: Constraints and Challenges

Managing in a Global Environment

Managing Diversity

Managing Social Responsibility and Ethics

Managing Change and Innovation

Foundations of Planning

Strategic Management

Managerial Controls

Basic Organizational Design

Adaptive Organizational Design

Managing Human Resources

Managing Teams

Understanding Individual Behavior

Managers and Communication

Motivating Employees

Managers As Leaders

Filters

Managers cannot possibly analyze all information on all alternatives, they tend to , rather than .