Deck 8: Making Decisions

Question 1

An organizational decision maker who is willing to steal ideas as necessary to make good decisions ________.

A)has a hoarding orientation
B)is a marketing-oriented decision maker
C)has an exploitative orientation
D)has a latent orientation
E)has an ideal decision-making orientation

Answer 1

C

Question 2

Which one of the following is an example of a nonprogrammed decision?

A)determining how products will be arranged on the shelves of a supermarket
B)deciding how to handle customer complaints and product returns
C)identifying and selecting a new supplier of raw materials
D)evaluating the performance of a job applicant on a job sample test
E)writing an email requesting one's senior for a few days off

Answer 2

C

Question 3

The ________ decision-making orientation emphasizes the realization of the organization's potential as well as that of the decision maker.Such decision makers try to use all of their talents when making decisions.

A)ideal
B)exploitative
C)receptive
D)marketing
E)tangible

Answer 3

A

Question 4

Decision makers with a(n)________ orientation of decision makers believe that the source of all good is outside themselves,and therefore they rely heavily on suggestions from other organization members.

A)receptive
B)exploitative
C)hoarding
D)ideal
E)marketing

Question 5

Programmed decisions are ________.

A)nonstructured
B)one-shot decisions
C)routine and repetitive
D)made by top management
E)made by computers

Question 6

Jack works at an advertising agency and leads a team of eight graphic designers.Whenever he has to make a decision,he does so by himself and rarely asks his team members for their suggestions or inputs.Which one of the following orientations does Jack have?

A)ideal
B)exploitative
C)receptive
D)hoarding
E)marketing-oriented

Question 7

A choice made between two or more available alternatives is a(n)________.

A)directive
B)consensus
C)decision
D)alternative
E)objective

Question 8

The proportion of the total management system that a decision will affect is called the ________.

A)scope of the decision
B)unity of command
C)span of control
D)level of management
E)discretionary area

Question 9

Marvin is late to work for the third time this month.His supervisor consults the employee handbook to read the policy regarding tardiness prior to his meeting with Marvin to discuss the consequences of excessive tardiness.Marvin will be making a ________ decision when determining how to handle the situation.

A)non-programmed
B)programmed
C)consensus
D)exploitative
E)marketing

Question 10

Which one of the following is true about decisions arrived at through consensus?

A)It occurs when the team members approve of an individual's decision.
B)It requires little involvement or assistance from the manager.
C)Its effectiveness can be hampered by poor interpersonal relations.
D)It is foolproof and successful at all times.
E)The decision group generally consists of only managers.

Question 11

All the English teachers at Springfield High School jointly developed and agreed on the standards that students must achieve in order to graduate to the next grade.This is an example of ________.

A)bounded rationality
B)consensus
C)rules of thumb
D)intuitive decision making
E)groupthink

Question 12

Decision makers who feel that they are only as valuable as the decisions they make and are highly conscious of what others think about their decisions would be classified as ________.

A)having a hoarding orientation
B)being receptive
C)being exploitative
D)having an ideal orientation
E)being marketing-oriented

Question 13

Even though Amy is the leader of a team,she finds it very hard to make decisions on her own.She often asks her colleagues for their opinions on matters that come up and relies on these inputs to make the final decision.Which one of the following decision-making orientations does Amy have?

A)marketing-oriented
B)hoarding
C)indecisive
D)exploitative
E)receptive

Question 14

Trendy Garb is a retail store that sells women's apparel.The store has comprehensive rules,policies,and procedures for matters related to customer complaints and product returns.Hence,when faced with either of these situations,the store manager simply needs to refer to these guidelines and accordingly proceed.This is an example of ________.

A)overlapping responsibility
B)nonprogrammed decision
C)rule of thumb
D)decision tree
E)programmed decision

Question 15

Peter often asks his colleagues for their ideas and suggestions to make a decision.However,he never gives credit to the individuals who give him the ideas and passes the ideas off as his own.Which of the following orientations does Peter have?

A)intuitive
B)exploitative
C)hoarding
D)marketing-oriented
E)ideal

Question 16

The main disadvantage of arriving at decisions through consensus is ________.

A)it results in very few practical solutions
B)it reduces employees' commitment to the decision
C)it involves time-consuming discussions
D)often the manager must make the decision
E)it focuses "several heads" on the decision

Question 17

The broader the scope of a decision,________.

A)the higher the level of the manager responsible for making it
B)the higher are the number of decision makers involved
C)the lesser are the number of management levels
D)the quicker a decision is made
E)the larger is the workforce responsible for making it

Question 18

Ideal decision makers ________.

A)preserve the status quo
B)allow others to make decisions for them
C)accept little outside help in making decisions
D)are characterized by reason and sound judgment
E)make decisions that will only enhance their value in the firm

Question 19

Barney is a new manager concerned about decision making.Which one of the following statements would you tell Barney is true about decisions and decision making?

A)Managers make decisions only when performing the controlling function.
B)In the process of deciding,all the alternatives are combined to form a final alternative which invariably is the choice made.
C)Organizations only have to consider significant decisions that have a major impact on business.
D)Decision making is the process of choosing the best alternative for reaching objectives.
E)All managerial decisions are of equal significance to the organization.

Question 20

The use of enterprise resource planning software can speed up the process of making ________ decisions.

A)non-programmed
B)programmed
C)purchasing
D)marketing
E)single-use

Question 21

Jared recently sent an email to all the members of his department asking them for their opinions about where the department should have its quarterly team lunch.The response was overwhelming as Jared received more than 40 suggestions.This is an example of ________.

A)paradox of choice
B)bandwagon effect
C)confirmation bias
D)confidence bias
E)loss aversion effect

Question 22

The first step in the decision-making process is to ________.

A)identify possible alternatives for solving an organizational problem
B)identify organizational objectives
C)identify an existing problem
D)gather feedback about an existing problem
E)implement the selected alternative

Question 23

A manager who desires to maintain the status quo and therefore doesn't take input from outside sources is said to have a(n)________ decision making orientation.

A)receptive
B)exploitative
C)hoarding
D)marketing-oriented
E)self-interest

Question 24

Which one of the following best describes the authority factors that limit the number of problem-solving alternatives available?

A)The orders issued by a manager's supervisor are unclear.
B)The level of organizational technology is inadequate for certain alternatives.
C)The physical facilities of an organization are inappropriate for certain alternatives.
D)A manager's superior tells the manager that a certain alternative is not feasible.
E)The chosen alternative is too costly for the organization.

Question 25

Which one of the following is the final step in the decision-making process?

A)identify organizational objectives
B)gather feedback to find out if the problem is solved
C)implement the selected alternative
D)select the most beneficial alternative
E)list alternative solutions

Question 26

After identifying an existing problem,the next step in the decision-making process is ________.

A)selecting the best among the alternative solutions
B)listing alternative solutions
C)identifying organizational objectives
D)gathering feedback on the implemented alternative
E)implementing the selected alternative

Question 27

Decisions which are made through consensus usually take less time than those made by a single individual.

Question 28

A manager who believes the source of good ideas is outside him/herself and therefore is willing to take the ideas of others as his/her own has a(n)________ decision making orientation.

A)receptive
B)exploitative
C)hoarding
D)marketing-oriented
E)self-interest

Question 29

Why is decision making such a difficult skill and role for all managers,but primarily difficult for new managers?

Question 30

Colin,a customer service manager,is making a decision that is routine and repetitive,and typically handled in a specific way.This could be said to be a nonprogrammed decision.

Question 31

A decision is a choice made between two or more available alternatives.

Question 32

What is a decision? Explain the difference between programmed and nonprogrammed decisions.

Question 33

Having too many alternatives may demotivate decision makers,which harms decision making.This is known as the ________.

A)bandwagon effect
B)confirmation bias
C)paradox of choice
D)loss aversion effect
E)overconfidence bias

Question 34

What are the orientations of weak decision makers?

Question 35

Managers know employees are more likely to be committed to a decision reached through consensus.

Question 36

A donation of $1 million has been made to the hospital where Joe is CEO.In determining how best to allocate and utilize the funds,Joe will be making a ________ decision.

A)programmed
B)nonprogrammed
C)routine
D)scheduled
E)unscheduled

Question 37

Decision makers characterized by the desire to preserve the status quo as much as possible are classified as having a hoarding orientation.

Question 38

The ________ of the decision refers to the proportion of the total management system that will be affected by the decision.

A)level
B)depth
C)scope
D)width
E)breadth

Question 39

While decisions arrived at through consensus are said to have an advantage of being better because they include the input of several individuals,which one of the following is a disadvantage of consensus decisions?

A)Commitment of those affected by the decision
B)Decreased input from others in the organization
C)Habits formed from past experiences
D)Increased judgment required on the part of the decision-maker
E)Time necessary to reach the consensus

Question 40

A programmed decision is typically a one-shot structured decision that is usually less structured than a nonprogrammed decision.

Question 41

Rita has a nonprogrammed decision to make so she has gathered input on alternatives from her staff,her management,and her coworkers.Now it's almost as if she has too many alternatives.Rita finds herself faced with a ________.

A)inclusion of choice
B)exclusion of choice
C)paradox of choice
D)alternative discretion
E)alternative paradox

Question 42

Implementation of the chosen alternative is the final step in the decision-making process.

Question 43

Which one of the following is true about the definition of bounded rationality?

A)Managers rely on their inborn ability to synthesize information quickly and effectively.
B)Managers have access to complete and accurate information for making a decision.
C)Managers adhere to rules of thumb when making decisions.
D)Statistical probabilities can be attributed to alternative potential outcomes.
E)Managers do not always have access to the resources required to make rational decisions.

Question 44

John wants to start his own pet shop and has run an ad for the post of shop assistant.He hired the first candidate he interviewed without reviewing the remaining applications because the first one fit the given criteria he had listed in the job ad.This is an example of ________.

A)confirmation bias
B)risk
C)bias
D)satisficing
E)heuristics

Question 45

________ refers to an individual's inborn ability to synthesize information quickly and effectively.

A)Bounded rationality
B)Satisficing
C)Bias
D)Intuition
E)Optimism

Question 46

The tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs is known as ________.

A)confirmation bias
B)loss aversion
C)the bandwagon effect
D)overconfidence
E)unrealistic optimism

Question 47

If Rita has too many alternatives to choose from based on the input she has received,she may find herself ________ by choosing a decision that is just "good enough" rather than optimal.

A)bounding
B)settling
C)generalizing
D)satisficing
E)rationality bounded

Question 48

The rational decision-making process offers an organized and systematic process,but can be thrown completely off and render a useless decision if which key step is incorrect?

A)problem identification
B)alternative generation
C)alternative selection
D)alternative implementation
E)alternative evaluation

Question 49

The bandwagon effect,a common decision-making bias,is ________.

A)the characteristic of an individual who prefers to avoid losses rather than acquire gains
B)the tendency to believe certain outcomes because others believe the same
C)the tendency to believe that our forecasts for future events are better than they truly are
D)the tendency to search for information that supports one's preconceived beliefs
E)an individual's tendency to believe that he/she is less susceptible to risky events

Question 50

________ refers to situations where the probability that a particular outcome will occur is not known in advance.

A)Uncertainty
B)Risk
C)Unrealistic optimism
D)Heuristics
E)Overconfidence

Question 51

Which one of the following biases refers to individuals who tend to strongly prefer avoiding losses rather than acquiring gains?

A)loss leaders
B)zero-risk bias
C)self-serving bias
D)loss aversion
E)money illusion

Question 52

Discuss briefly the steps in the decision-making process.

Question 53

________ occurs when an individual makes a decision that is not optimal,but is good enough.

A)Loss aversion
B)Satisficing
C)Intuition
D)Bias
E)Unrealistic optimism

Question 54

In the decision-making process,it is important to accurately identify an existing problem prior to listing the possible alternatives for solving the problem.

Question 55

Decision making is essentially a problem-solving process that involves eliminating barriers to organizational goal attainment.

Question 56

What is bounded rationality?

Question 57

An individual's tendency to believe they are less susceptible to risky events than others is referred to as ________.

A)the bandwagon effect
B)the confirmation bias
C)loss aversion
D)overconfidence
E)unrealistic optimism

Question 58

What factors might affect the quantity and quality of potential alternatives during the decision-making process?

Question 59

________ refers to the departure from rational theory that produces suboptimal decisions.

A)Uncertainty
B)Satisficing
C)Dogmatism
D)Bias
E)Bounded rationality

Question 60

Overconfidence is the tendency to ________.

A)believe certain outcomes because others believe the same
B)search for information that supports one's preconceived beliefs
C)believe that our forecasts for future events are better than they truly are
D)strongly prefer avoiding losses rather than acquiring gains
E)believe that one is less susceptible to risk than others

Question 61

Managers need to be cautious about biases that can encroach and therefore impact their decisions.Which one of the following biases results from believing certain outcomes because others believe the same?

A)confirmation
B)loss aversion
C)bandwagon
D)overconfidence
E)unrealistic optimism

Question 62

Which of the following is part of the first step in the process of brainstorming?

A)Members comment on ideas.
B)Group leader chooses members.
C)Ideas are evaluated.
D)Group members state ideas.
E)Ideas are recorded.

Question 63

Becky is leading her team in an open discussion on the possibilities of implementing flexible work hours for her department.One of the team members keeps interrupting with negative feedback on the suggested ideas.He is breaking the cardinal rule of ________.

A)scapegoating
B)brainstorming
C)crowdsourcing
D)groupthinking
E)the Delphi technique

Question 64

When decisions are reached using probability theory,the alternative normally chosen is the one with ________.

A)the lowest expected value
B)the highest expected value
C)the lowest cost/benefit ratio
D)the lowest risk
E)the highest risk

Question 65

A group decision-making process which forbids negative feedback on any suggested alternative by any group member until all members have presented alternatives is known as ________.

A)groupthinking
B)brainstorming
C)doublethink
D)mindmapping
E)scapegoating

Question 66

The formula for expected value (EV)is ________.

A)interest rate × probability
B)income × probability
C)cost of risk × probability
D)cost of risk / probability
E)income / probability

Question 67

The first step in the Delphi technique is ________.

A)asking group members to offer solutions
B)identifying a problem
C)allowing group members to meet face to face
D)preparing a questionnaire on the problem at hand
E)identifying experts on the matter being discussed

Question 68

In the nominal group technique of decision making,after all the members have discussed the ideas,they ________.

A)discuss their ideas one-to-one with the group leader
B)present their personal views on each of the ideas discussed
C)write down each idea on the board for all the other members to refer to
D)vote by a secret ballot to support their favorite idea
E)adopt and implement the most cost-effective idea

Question 69

What is the probability theory? Define probability and expected value.How are they related to each other?

Question 70

Naomi leads a team of software developers.Because of the sudden increase in the number of projects over the last few weeks,the team will need to work additional hours in order to meet the various deadlines.She asks her team members to write down their individual ideas on whether they should extend their daily work hours,or simply work on Saturday for the next two months.They are also encouraged to come up with other solutions that can help them solve the problem.Which one of the following methods of decision making is Naomi most likely using?

A)the Delphi technique
B)the nominal group technique
C)brainstorming
D)groupthinking
E)controlled creativity

Question 71

A graphic decision-making tool used to evaluate decisions containing a series of steps is known as a ________.

A)decision support system
B)decision theory
C)morphological box
D)decision tree
E)Delphi chart

Question 72

Management decision makers generally choose and implement an alternative with the ________ expected value.

A)lowest
B)highest
C)average
D)positive
E)negative

Question 73

________ is a decision-making tool used in risk situations - situations in which decision makers are not completely sure of the outcome of an implemented alternative but where some estimate of the likelihood of an event can be calculated.

A)Probability theory
B)Bandwagon effect
C)Loss aversion
D)Heuristics
E)Bounded rationality

Question 74

Discuss the relationship that exists between risk and uncertainty in management decision making.

Question 75

The group decision-making process that involves the circulation of questionnaires on a specific problem among group members is known as ________.

A)groupthink
B)brainstorming
C)the Delphi technique
D)the nominal group technique
E)the devil's advocate technique

Question 76

The nominal group technique of decision making begins with ________.

A)members presenting their individual ideas orally
B)the entire group discussing their ideas simultaneously
C)group members writing down individual ideas on the matter being discussed
D)members writing their ideas on a board for all other members to see
E)a secret ballot which allows members to support their favorite ideas without fear

Question 77

The more ________ and less ________ involved,the more confidence managers tend to have in their decision making.

A)certainty;time
B)risk;certainty
C)risk;uncertainty
D)uncertainty;risk
E)certainty;risk

Question 78

________ refers to the likelihood that an event or outcome will actually occur.

A)Surety
B)Ratio
C)Probability
D)Brainstorming
E)Bias

Question 79

The phenomenon of compromising the quality of a decision to maintain relationships within a team is referred to as ________.

A)doublethink
B)crowdsourcing
C)brainstorming
D)groupthink
E)scapegoating

Question 80

Which of the following is an advantage of group decision making?

A)Groups take less time than individuals to arrive at a decision because of the collective and diverse mentality of groups.
B)Group decisions do not cost the organization as much as individual decisions do.
C)Group decisions are of a higher quality than individual decisions because of the friendly relationships that exist within the group.
D)Group decisions can be effectively controlled and influenced by the dominant members of the group.
E)Members of the group tend to support the implementation of the decision more fervently than they would if the decision had been made by an individual.