Deck 10: Decision Making by Individuals and Groups

Question 1

What is used to brainstorm alternative solutions in the Z model of problem solving?

A) sensing
B) thinking
C) intuiting
D) feeling

Answer 1

C

Question 2

You are ready to select your courses for your final year before graduation.All but two of your courses are electives.Which model will you most likely use for your selections?

A) the garbage can model
B) the irrational model
C) the random model
D) the bounded rationality model

Answer 2

D

Question 3

Cirque du Soleil has consistently made effective decisions,as reflected by its continued success. What is the best explanation for Cirque du Soleil's good decision making?

A) finding a good fit between type of decision and choice of decision-making model
B) making consistent use of the bounded rationality model of decision making
C) understanding the skill sets of the founders and letting each founder make decisions in his area of expertise
D) applying the blue ocean approach and not backing down from their original decisions

Answer 3

D

Question 4

According to the textbook,which of the following is an example of escalation of commitment?

A) Cirque du Soleil
B) Holland American Cruise Line vs.Carnival Cruise line
C) British Airways and Air France's Concorde operations
D) Ford vs.General Motors

Question 5

What is the final step in the Z model of problem solving?

A) collect data and examine
B) objective analysis of all alternatives
C) diagnosis several options
D) impact analysis on how the people involved will be affected

Question 6

What is the final step in the decision-making process?

A) gathering feedback
B) implementing a course of action
C) follow up
D) exploring alternatives

Question 7

Which of the following best summarizes heuristics,as found in the bounded rationality model?

A) an algorithm based on complex decision making
B) a complex decision rule used in complex situations
C) a shortcut in decision making that saves mental activity
D) a mathematical approach to decision making

Question 8

Which statement best summarizes the bounded rationality model of problem solving and decision making?

A) Managers critically view the world as complex and multivariate.
B) Managers generate a wide array of decision options and select the one that meets all decision criteria.
C) Managers are comfortable making decisions without identifying all options.
D) Managers follow statistical rules for decision making.

Question 9

Which response indicates a key principle of the normative decision model?

A) the manager must apply the blue ocean approach
B) the manager must optimize through solution selection
C) the manager must satisfice
D) the manager should use the decision method most appropriate for a given decision situation

Question 10

What does the decision maker strive to do in the rational model?

A) select the most feasible alternative
B) select the first alternative that is satisfactory
C) select the best possible alternative
D) select the alternative agreeable to the majority

Question 11

What is the initial step in a problem-solving decision situation?

A) data analysis
B) alternatives generation
C) problem recognition
D) feedback

Question 12

How can you effectively manage decisions in order to avoid escalation of commitment?

A) Don't have individuals making initial investment decisions.
B) Don't reward people who admit to poor decisions.
C) Don't allow graceful exits from poor decisions.
D) Don't split the responsibility for decisions about projects.

Question 13

Which of the following is an example of a programmed decision situation?

A) purchasing a new mainframe computer
B) reordering raw materials from an established supplier
C) arranging financing for construction of a new office building
D) considering purchase of a parts manufacturer

Question 14

Which idea indicates an assumption that is based on the rational model of decision making?

A) the decision maker can calculate the probability of success for each alternative
B) all possible alternatives can't be known to decision makers
C) outcomes can't be optimized to their maximum
D) the preferences of the decision maker are inconsistent

Question 15

Cara believes in her solution to the problem.At this point,500 hours and several thousand dollars have gone into implementing the solution,even though the business is still declining.What is most likely occurring?

A) sunk cost loss
B) escalation of commitment
C) failure to analyze the alternatives objectively
D) conflicted reason theory

Question 16

What are the characteristics of an effective decision?

A) timely,acceptable,and efficient
B) timely,acceptable,and specific
C) timely,acceptable,and achievable
D) timely,acceptable,and meets the desired objective

Question 17

Who first proposed the model of bounded rationality?

A) Victor Vroom
B) Carl Jung
C) Herbert Simon
D) Phillip Yetton

Question 18

What can result in firing people,exiting a business,or admitting wrong?

A) gathering information
B) identifying a problem
C) reaching breakeven point
D) making a decision

Question 19

What is a key principle of the bounded rationality model?

A) certainty
B) satisficing
C) optimizing
D) researching

Question 20

What best corresponds to the cognitive style in the first step of the Z model?

A) feeling
B) sensing
C) intuiting
D) thinking

Question 21

What does research indicate about women's risk taking in comparison to men's?

A) Gender has no effect on risk taking behaviour; it is the environment.
B) The occurrence of risk taking behaviour is similar for men and women.
C) Women are greater risk takers than men.
D) Women are more averse to risk than men.

Question 22

What is the difference between the left side and right side of the brain?

A) left side is for detail and planning while right side is for mental maps
B) left side is for creativity while right side is for logic
C) left side is for logic while right side is for creativity
D) left side is for cognitive limits while right side is for creativity

Question 23

In what stage of creativity does the individual sense an insight for solving the problem?

A) preparation
B) illumination
C) verification
D) incubation

Question 24

What does Mintzberg's research suggest about intuition and managerial roles?

A) Intuition has not been shown to be very effective as an antidote to over analysis.
B) Managers rarely use intuition.
C) Managers make judgments based on hunches.
D) In most cases managers use a systematic step-by-step approach to decision making.

Question 25

Your manager's approach to creativity involves searching for the "right" answers and avoiding problems outside her own area of expertise.What is she experiencing?

A) inflexible maps
B) structured thinking
C) mental locks
D) cognitive structure

Question 26

Which assumption applies to creativity in making decisions?

A) It is fast or leads to quick decisions.
B) It may lead to more ethical decisions.
C) It involves learned patterns of information.
D) It is as elusive a concept as intuition in decision making.

Question 27

When is a group approach to decision making appropriate?

A) when the problem is highly structured
B) when employees are in conflict over the preferred solution
C) when employees are indifferent to the outcome
D) when technical accuracy is not important

Question 28

In what stage of creativity does one engage in other activities while the mind considers a problem?

A) preparation
B) illumination
C) verification
D) incubation

Question 29

Which of the following influences the diminishment of creative activity?

A) avoiding ambiguity and fearing failure
B) implementing open and flexible structure
C) providing supportive supervision
D) allowing participative decision making

Question 30

According to Agor,what must organizations do to maximize performance?

A) analyze data for decision making
B) rely on patterns of learned information
C) acquire intuitive and analytical minds
D) provide empowerment

Question 31

What is an example of right-side brain activity?

A) designing flowchart work processes
B) preparing tax submissions
C) developing visions and strategic plans
D) managing day-to-day operations

Question 32

What type of brain function is ideal for decision making?

A) right-brain domination
B) left-brain domination
C) brain-neutralization
D) brain-lateralization

Question 33

You are a manager in an organization that wants to encourage employee creativity.What should you avoid?

A) close supervision
B) participative decision making
C) flexible organizational structure
D) peer support

Question 34

According to research discussed in your text,which statement applies to women?

A) They are less averse to risk than men .
B) They are very set in their ways.
C) They are the same as men regarding risk aversion.
D) They are more averse to risk than men.

Question 35

According to research,what should an organization do to achieve the highest creative performance?

A) provide a supportive environment
B) implement flexible structures
C) place individuals as part of a team with diverse skills
D) identify a match between individual and organizational influences

Question 36

You own and operate a small pizza shop that has been profitable but is in need of a renovation.After you begin the renovation you discover that a pizza chain has bought a vacant building two blocks away and plans to open a shop within 120 days.Undoubtedly,competition will intensify.You decide to accelerate the renovation work.What are you trying to do?

A) avoid risk
B) minimize risk
C) escalate risk
D) manage risk

Question 37

Your text discusses research on the impact of moods on tasks that involve considerable cognitive demands.What does the research suggest?

A) Mood doesn't really make a difference.
B) The relationship between mood and tasks requiring high cognitive demands is curvilinear.
C) Positive moods result in better performance.
D) Negative moods result in better performance of tasks involving cognitive demands.

Question 38

What is a key finding about intuition and managers?

A) Intuition appears to have a negative effect on managerial decision making.
B) Managers can be trained to rely more fully on their intuition.
C) Intuition does not appear to be related to ethical decision making.
D) Intuition can be taught to low-performing managers

Question 39

What could an organization do to increase creativity?

A) provide specific or identifiable rewards
B) give all workers private offices
C) rotation through different jobs and exposure to different projects
D) emphasize competition for creative ideas and increase in money

Question 40

What are the three reasons managers may hang on to a losing course of action or escalate their commitment?

A) external locus of control,overly optimistic,and cognitive dissonance
B) cognitive dissonance,overly optimistic,and illusion of control
C) internal locus of control,cognitive dissonance,and illusion of control
D) internal locus of control,cognitive dissonance,and overly optimistic

Question 41

Which of the following indicates an outcome of group polarization?

A) group members move toward becoming significantly less cautious
B) group discussion produces shifts toward more extreme attitudes among members
C) group members move from extreme attitudes toward more moderate attitudes
D) group members drive decisions toward consensus

Question 42

Your text discusses recent research examining the effects of cultural diversity on decision making.What is the outcome when individuals in a group are racially dissimilar?

A) They engage in behaviour that discourages dissenting perspectives.
B) They engage in less open information sharing.
C) They arrive at better decisions than racially similar groups.
D) They tend to become less committed to decisions.

Question 43

Which combination will result in the highest payoff when employees can't participate in all stages of the decision-making process?

A) identifying problems,generating alternatives,and selecting solutions
B) generating alternatives,planning implementations,and evaluating results
C) generating alternatives,selecting solutions,and evaluating results
D) identifying problems,planning implementations,and evaluating results

Question 44

What action should Vanda take to minimize groupthink?

A) denigrate the opposition
B) encourage rationalization
C) manipulate group members in order to increase peer pressure
D) re-examine the preferred solution

Question 45

Which response could be summarized as a deterioration of mental efficiency,reality testing,and moral judgment resulting from in-group pressures?

A) groupthink
B) the risky shift
C) group polarization
D) the recency effect

Question 46

Which of the following terms could be described as shifts between risk taking and caution,sometimes adopting extreme attitudes?

A) group polarization
B) satisficing
C) poor group decisions
D) groupthink

Question 47

As a project group leader,you have recognized the benefits of conflict and some disagreement among project members in solving difficult problems.Accordingly,what are you likely to use with your group?

A) devil's advocacy
B) brainstorming
C) nominal group techniques
D) dialectical inquiry

Question 48

Which technique is valuable in its ability to come up with potential problems?

A) brainstorming
B) the nominal group
C) dialectical inquiry
D) devil's advocacy

Question 49

What is an antidote to groupthink in self-managed teams?

A) the use of dialectical inquiry
B) welcoming dissent
C) the use of nominal groups
D) brainstorming

Question 50

Which statement is characteristic of quality teams?

A) They make data-based decisions about improving product and service quality.
B) They operate in parallel fashion to the organization's structure.
C) They provide advice to managers who still retain decision-making authority.
D) They emphasize the generation of ideas.

Question 51

Fatima's objective is to maximize the number of alternatives in addressing the project's problem? Which approach should she use with the group?

A) brainstorming
B) nominal grouping
C) the Delphi technique
D) dialectical inquiry

Question 52

What do the social comparison approach and the persuasive arguments view have in common as a source of explanation?

A) group polarization
B) cognitive dissonance
C) groupthink
D) bounded rationality

Question 53

Which of the following best explains the concept of responsive creativity?

A) responding to problems presented to you because you want to be creative
B) discovering problems because you want to be creative
C) discovering problems because you are expected to by the organization
D) responding to problems presented to you because it is part of your job

Question 54

Electronic brainstorming overcomes two common problems that can produce verbal group brainstorming failure.What are the problems?

A) bounded rationality and evaluation apprehension
B) information overload and evaluation apprehension
C) evaluation apprehension and production blocking
D) production blocking and information overload

Question 55

What is considered a characteristic of groupthink?

A) individuality
B) illusion of invulnerability
C) illusion of unanimity
D) devil's advocate

Question 56

Which of the following terms could be described as generating as many ideas as possible and suspending judgement until all ideas have been suggested?

A) quality circle
B) nominal group technique
C) dialectical inquiry
D) brain storming

Question 57

Your text discusses a recent review of the decision situation in the Challenger incident.What two variables did the review identify as being important to the groupthink phenomenon?

A) leadership style and time constraints
B) decision consequence and time constraints
C) decision consequence and leadership style
D) group insulation and time constraints

Question 58

Which structured approach to decision making could be summarized as generating alternatives silently,preventing criticism of alternatives,and using a voting process to identify group choices?

A) dialectical inquiry
B) devil's advocacy
C) group polarization
D) the nominal group

Question 59

A group decision involves a matter of preference or opinion.What type of social decision scheme is this?

A) the majority-wins rule
B) the two-thirds majority rule
C) the truth-wins rule
D) the consensus rule

Question 60

What is the majority-wins rule?

A) a group heuristic
B) groupthink
C) the nominal group technique
D) a social decision scheme

Question 61

Given the assumptions of the rational model,it is unrealistic.

Question 62

Problem finding and recognition is an important early step in decision making.

Question 63

The tendency to continue to support a failing course of action is known as consistency theory.

Question 64

After giving intuition tests to more than 10,000 executives,Agor has concluded that in most cases higher management positions were not held by individuals with higher levels of intuition.

Question 65

The garbage can model asserts that decision making is organizational anarchy.

Question 66

Research shows that creativity is something you either have or you do not.

Question 67

Creativity is not widespread in the population but it can be easily learned through systematic training.

Question 68

Manager generally react the same to risk situations due to their education,training and experience.

Question 69

A review of the research on intuition suggests that while intuition cannot be taught,managers can be trained to rely more fully on the prompting of their intuition.

Question 70

According to Henry Mintzberg,managers are predisposed to use a more systematic approach to decision making that is consistent with the rational model.

Question 71

Formulating a set of decision rules for making inventory re-ordering decisions is an example of programmed decision making.

Question 72

What is a key organizational requirement for participation and empowerment?

A) a clear group goal
B) a supportive culture
C) a team with individual motivation
D) an instrumental reward system

Question 73

In a decisional situation where the decision maker can calculate the probability of success for each alternative,conditions are uncertain.

Question 74

What is a characteristic of participative decision making?

A) higher levels of employee job satisfaction
B) rapid decision making
C) less creativity among employees
D) interpersonal rivalry within a group

Question 75

A recent research study found a strong link between cognitive moral development and intuition.

Question 76

Research suggests that individuals may be more prone to escalation of commitment than groups.

Question 77

Satisficing is the practice of adopting an acceptable solution.

Question 78

According to the text,what characteristic is necessary for empowerment to be realized in the work environment?

A) supportive
B) directive
C) goal oriented
D) autonomous

Question 79

Women tend to be more averse to risk taking,while men are prone to escalation of commitment.

Question 80

Heuristics are shortcuts in decision making that save mental activity.