Deck 9: Managerial Decision Making

Question 1

The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes.

Answer 1

True

Question 2

Gerald's Groceries and Mary's Market decided to merge their operations,something neither company has tried before.This would be considered a nonprogrammed decision.

Answer 2

True

Question 3

According to the classical model of decision making,managers' searches for alternatives are limited because of human,information and resource constraints.

Answer 3

False

Question 4

Satisficing behaviour occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.

Question 5

The administrative model of decision making describes how managers actually make decisions in difficult situations.

Question 6

Two employees in Stacey's department quit which is normal for her department.She is faced with the decision to fill these positions.This would be considered a nonprogrammed decision.

Question 7

A situation where the goals to be achieved or the problem to be solved is unclear,alternatives are difficult to define and information about outcomes is unavailable refers to ambiguity.

Question 8

The classical decision making model assumes that the decision-maker is rational and makes the optimal decision each time.

Question 9

Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

Question 10

In the real world,few decisions are certain.

Question 11

Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions.

Question 12

Making a choice is the most significant part of the decision-making process.

Question 13

Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought.

Question 14

A decision is a choice made from available alternatives.

Question 15

The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.

Question 16

Uncertainty means that a decision has clear-cut goals,and that good information is available,but the future outcomes associated with each alternative are subject to chance.

Question 17

According to both research and managerial experience,intuitive decisions are best and always work out.

Question 18

The classical model of decision-making works best in organizations that are made up of groups with diverse interests,goals and values.

Question 19

The approach that managers use to make decisions usually falls into one of three types - the classical model,the administrative model and the political model.

Question 20

According to the administrative model of decision making,managers' searches for alternatives are limited because of human,information and resource constraints.

Question 21

Managers confront a decision requirement in the form of either a problem or an opportunity.

Question 22

The behavioural style is often adopted by managers who like to consider complex solutions based on as much data as they can gather.

Question 23

Nonprogrammed decisions require six steps,however,programmed decisions being structured and well understood require only one step.

Question 24

The best alternative is the one in which the solution best fits the overall goals and values of the organization and achieves the desired results using the fewest resources.

Question 25

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.

Question 26

People who prefer simple,clear-cut solutions to problems use the directive style.

Question 27

Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager.

Question 28

Feedback is the part of monitoring that assesses whether a new decision needs to made.

Question 29

The process of forming alliances among managers is called coalition building.

Question 30

Good intuitive decision making is based on an ability to recognize patterns at lightning speed.

Question 31

For a non-programmed decision,feasible alternatives are hard to identify and in fact are already available within the organization's rules and procedures.

Question 32

Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.

Question 33

Step one in the managerial decision-making process is recognition of decision requirement.

Question 34

The political model consists of vague problems and goals,limited information about alternatives and their outcomes and a satisficing choice for resolving problems using intuition.

Question 35

Managers with an analytical decision style like to consider complex solutions based on as much data as they can gather.

Question 36

The formulation stage involves the use of managerial,administrative and persuasive abilities to ensure that the chosen alternative is carried out.

Question 37

Justifying past decisions is a common bias of managers.

Question 38

Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style.

Question 39

In the implementation stage,decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

Question 40

The most effective managers are consistent in using their own decision style rather than shifting among styles.

Question 41

Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view.

Question 42

Nonprogrammed decisions are made in response to situations that are:

A) Unique.
B) Unstructured.
C) Exceptionally important to the organization.
D) All of these
E) Only unique and important to the organization.

Question 43

Programmed decisions are made in response to _____ organizational problems.

A) unusual
B) recurring
C) significant
D) minor
E) unique

Question 44

Managers are often referred to as:

A) decision makers.
B) peace makers.
C) conflict creators.
D) an unnecessary layer of employees.
E) profit suppressor.

Question 45

A company has a rule that states that more than three absences in a six-month period shall result in a suspension.A manager has just decided to suspend a shift employee for violating this policy.This is an example of:

A) a programmed decision.
B) a nonprogrammed decision.
C) an insignificant decision.
D) poor management.
E) personal grudge.

Question 46

Which of the following is a choice made from available alternatives

A) Decision
B) Plan
C) Goal
D) Tactic
E) Strategy

Question 47

Devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group member's assumptions.

Question 48

Groupthink refers to the tendency of people in groups to suppress contrary opinions.

Question 49

_____ is a vital part of good management because decisions determine how the organization solves its problems,allocates resources and accomplishes its goals.

A) Reorganizing
B) Competitive visioning
C) Proper alignment
D) Bad decision making
E) Leadership

Question 50

_____ decision making are associated with decision rules.

A) Nonprogrammed
B) Unique
C) Programmed
D) Ill-structured
E) Novel

Question 51

Examples of nonprogrammed decisions would include the decision to:

A) reorder supplies.
B) develop a new product or service.
C) perform routine maintenance on one of the machines in manufacturing.
D) terminate an employee for violation of company rules.
E) fill a position.

Question 52

A school has an attendance rule that states that more than three absences in a semester shall result in a detention.An instructor has just decided to invite a student to detention for violating this policy.This is an example of:

A) programmed decision.
B) unique approach.
C) condition of ambiguity.
D) nonprogrammed decision.
E) none of these.

Question 53

Good examples of _____ decisions are new strategic decisions.

A) nonprogrammed
B) programmed
C) insignificant
D) recurring
E) structured

Question 54

_____ refers to the process of identifying problems and then resolving them.

A) Organizing
B) Controlling
C) Decision-making
D) Planning
E) Leading

Question 55

A retailer has a no-questions asked return policy.The policy is an example of a(n):

A) programmed decision.
B) nonprogrammed decision.
C) novel decision.
D) poor management.
E) unstructured decision.

Question 56

Most people underestimate their ability to predict uncertain outcomes.

Question 57

Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making.

Question 58

Managers will frequently look for new information that contradicts their instincts or original point of view.

Question 59

A manager recently decided to ask employees to work overtime.The alternative was to hire additional workers.He is now monitoring the consequences of his decision.This is an example of _____.

A) planning
B) decision-making
C) organizing
D) controlling
E) leading

Question 60

Brainwriting refers to the tendency of people in groups to suppress contrary opinions.

Question 61

The condition under which ambiguity occurs is when:

A) alternatives are difficult to define.
B) objectives are well defined.
C) information about outcomes is readily available.
D) all the alternatives are known.
E) decisions are already made.

Question 62

Which of the following means that even though a manager may have clearly defined targets based on the available information,the future results associated with each alternative are subject to chance

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming

Question 63

Which of the following means that each and every piece of information is fully available to a decision maker

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) None of these

Question 64

During the fallout of the global financial crisis of 2008,governments had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as what type of decision

A) Bounded
B) Programmed
C) Conventional
D) Wicked decision problem
E) Irrational decision

Question 65

Which of the following means that goals are not clear and the problems are not defined,and likewise the alternatives cannot be found and the outcomes are not visible

A) Certainty
B) Low Risk
C) Some uncertainty
D) Ambiguity
E) Brainstorming

Question 66

Under conditions of _____,statistical analyses of marketing data are often useful.

A) certainty
B) ambiguity
C) risk
D) uncertainty
E) conflict

Question 67

Associated with the condition of _____ is the lowest possibility of failure.

A) ambiguity
B) uncertainty
C) certainty
D) risk
E) all of these

Question 68

Which approach defines how a decision-maker should make decisions

A) Normative
B) Scientific
C) Descriptive
D) Reflective
E) Humanistic

Question 69

A manager is expected to make decisions that are in the organization's best economic interests.The decisions would be based on which of the following

A) The administrative model of decision making
B) The garbage can model of decision making
C) The scientific management model of decision making
D) The classical model of decision making
E) The humanistic model of decision making

Question 70

A company CEO decided to acquire a rival company.This is an example of a:

A) programmed decision.
B) nonprogrammed decision.
C) decision rule.
D) structured decision.
E) bad community decision.

Question 71

When a hospital decides to add a radiation therapy unit,it is considered a:

A) programmed decision.
B) structured decision.
C) nonprogrammed decision.
D) poor management decision.
E) certainty decision.

Question 72

The classical model of decision making is based on _____ assumptions.

A) philosophical
B) irrational
C) economic
D) uncertainty
E) technological

Question 73

A product manager wants to increase the market share of a product,but does not know which factor in the marketing mix is most important to achieving this goal.The manager is operating under a condition of _____.

A) risk
B) ambiguity
C) certainty
D) uncertainty
E) brainstorming

Question 74

Which of these assumptions are included in the classical model of decision making

A) Problems are unstructured and ill defined.
B) The decision-maker strives for conditions of certainty.
C) Criteria for evaluating alternatives are unknown.
D) The decision-maker selects the alternatives that will minimize the economic return to the organization.
E) The situation is always uncertain.

Question 75

_____ are almost always associated with conflicts between managers over goals and decision alternatives,rapidly changing circumstances,fuzzy information and unclear links among decision elements.

A) Nonprogrammed
B) Programmed
C) Wicked decision problems
D) Conventional
E) Good

Question 76

_____ is by far the most difficult situation for a decision-maker.

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming for hours and hours

Question 77

At the start of every shift,a truck driver plans out a route based on the addresses that he will be visiting to drop off packages.This can best be described as what kind of decision

A) Programmed
B) Nonprogrammed
C) Wicked
D) Administrative
E) Intuitive

Question 78

Which of the following has the highest possibility of failure

A) The condition of certainty
B) The condition of total ambiguity
C) The condition of slight uncertainty
D) The condition of low risk
E) All of these

Question 79

The four positions on the possibility of failure scale include certainty,risk,ambiguity and _____.

A) uncertainty
B) conflict
C) necessity
D) indecision
E) possibility

Question 80

_____ means that managers might know the goals they want to achieve,but the information about alternatives and future events are incomplete.

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Advocacy