Deck 7: Decision Making, Learning, Creativity, and Entrepreneurship

Question 1

Escalating commitment is the tendency of decision makers to overestimate their ability to control activities and events.

Answer 1

False

Question 2

The manager of the Dairy Barn must decide whether to introduce a new frozen dessert that has not been previously sold. What type of decision would this represent?

A)automatic
B)rule-based
C)predetermined
D)nonprogrammed
E)inconsequential

Answer 2

D

Question 3

A hurricane was approaching Miami, and although there was no evacuation order, the president of a local company decided to close the business and send his employees home. This is an example of a(n)________ decision.

A)satisficing
B)automatic
C)guideline-based
D)predetermined
E)nonprogrammed

Answer 3

E

Question 4

Aaron is a member of a group that meets weekly to discuss community issues. When the idea of changing recycling companies came up, Aaron knew the current company was doing a great job, but because everyone else wanted to change, he didn't say anything. This illustrates the concept of groupthink.

Question 5

Ayan is responsible for quality control for an automobile manufacturer and recently made the decision to suspend production when test results for completed cars fell below the manufacturer's standards. What type of decision is this?

A)intuitive
B)groupthink
C)satisficing
D)programmed
E)creative

Question 6

Juan is faced with multiple choices of suppliers who have the same product at virtually the same price. He also knows there are many more suppliers out there that would be comparable; however, he has a short amount of time to make up his mind, so he chooses Elrood Gasket's product. Why type of decision does this represent?

A)programmed
B)bounded
C)confirmation
D)groupthink
E)satisficing

Question 7

Vicky started a nonprofit company to help house and mentor the homeless in her community. Vicky is a social entrepreneur.

Question 8

Each month, Brian reviews sales data, analyzes market opportunities and threats, and determines organizational goals and actions for the coming month. This is an example of

A)groupthink.
B)intuition.
C)decision making.
D)bounded rationality.
E)brainstorming.

Question 9

Margot always takes her time, considering all available information before making a decision. Margot is an intuitive decision maker.

Question 10

During the last several months, workers' overtime hours have increased by more than 15%. Based on decisions made by plant managers in the past, the current plant manager has decided to hire additional staff. This is an example of

A)reasoned judgment.
B)programmed decision making.
C)nonprogrammed decision making.
D)intuition.
E)the classical model.

Question 11

The tendency of managers to ignore critical information is NOT as serious as the existence of incomplete information.

Question 12

________ decisions are routine and based on rules and guidelines.

A)Brainstormed
B)Nonprogrammed
C)Programmed
D)Intuitive
E)Creative

Question 13

Decision making is the process in which managers make determinations about organizational goals and courses of action by responding to opportunities and threats.

Question 14

Caryn, an administrator of a day care program monitors child enrollment and hires additional caregivers as needed to maintain the legal ratios required for each age group. This is an example of a(n)________ decision.

A)programmed
B)satisficing
C)brainstormed
D)intuitive
E)creative

Question 15

Allowing individuals to develop a sense of personal mastery is detrimental to organizational learning.

Question 16

Ten of 123 Corporation's employees met to brainstorm how to make the company run more smoothly. As each employee threw out an idea, the rest of the group would critique it, holding to the correct way to brainstorm.

Question 17

Decision making in response to threats occurs only when organizational performance adversely affects events inside the organization.

Question 18

Eleanor is responsible for monitoring the office supply closet and places an order when any item reaches a minimal level. What type of decision does this represent?

A)brainstormed decision
B)bounded decision
C)programmed decision
D)intuitive decision
E)creative decision

Question 19

The key to a good assessment of the alternatives is to define the opportunity or threat exactly.

Question 20

Programmed decision making is a(n)________ process.

A)novel
B)routine
C)intuitive
D)ambiguous
E)creative

Question 21

High Tech Corp decides to develop a product based on a completely new technology, with no existing information on the possible challenges and outcomes of bringing such a product to market. This decision illustrates

A)satisficing ambiguity.
B)systematic error.
C)confirmation bias.
D)uncertainty.
E)blocking.

Question 22

A local pet groomer is considering expanding his services to include cats and needs to decide whether to invest in the necessary equipment and supplies. What type of decision does this represent for the groomer?

A)automatic
B)intuitive
C)bounded
D)nonprogrammed
E)rule-based

Question 23

Elaine, a college professor, needs to select a textbook for an upcoming course. Her time is limited so she plans to review a few books from the many choices and pick an acceptable textbook even though she may not even be reviewing the best book available. What is this strategy called?

A)optimizing
B)brainstorming
C)devil's advocacy
D)satisficing
E)escalating commitment

Question 24

Jalen always strives to make optimum choices from the known alternatives but accepts that he will never have access to all available information and therefore must strive for the most satisfactory decisions. This realization is consistent with the ________ of decision making.

A)administrative model
B)representativeness bias
C)programmed form
D)classical model
E)illusion of control

Question 25

In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ________ decision.

A)intuitive
B)creative
C)heuristic
D)subjective
E)optimum

Question 26

When deciding on schedules, the construction manager takes into account probabilities related to delays in materials or the potential for bad weather that could impact progress. The manager is accounting for

A)uncertainty.
B)incomplete information.
C)risk.
D)ambiguity.
E)cognitive limitation.

Question 27

Jacob, a marketing manager, is determining if the company budget allows for advertising a new product. Which criterion of decision making is he addressing?

A)legality
B)ethicality
C)economic feasibility
D)practicality
E)product sustainability

Question 28

Managers for an organic grocery chain were deciding whether to open a new store in a neighborhood currently unserved by any competitors. One manager felt that the lack of competitive presence was an opportunity to capture the newest customers. Another manager viewed the lack of a competitor in the area as an indicator that the local community may not be interested in organic products. This difference in perspective illustrates the concept of

A)ambiguity.
B)satisficing.
C)confirmation bias.
D)groupthink.
E)illusion of control.

Question 29

When discussing solutions for increasing profitability of a new product, Dale raises a concern that one of the alternatives may negatively impact sales for other products. Dale's concern demonstrates a focus on the ________ of the alternative.

A)sustainability
B)practicality
C)legality
D)ethicalness
E)functionality

Question 30

Jill's coworkers describe her decision-making approach as satisficing, meaning that she

A)views problems from a fresh perspective and defines numerous alternative solutions to problems.
B)takes advantage of opportunities to abandon existing mind-sets and defines creative solutions to problems.
C)conducts a retrospective analysis to see what can be learned from past successes or failures.
D)searches for and chooses acceptable solutions rather than trying to make the optimal decision.
E)seeks and uses information consistent with prior beliefs and ignores information that contradicts those beliefs.

Question 31

Judy has thought of a novel solution to her company's recent challenges fulfilling customer orders on time. She must now determine whether the company has the capabilities and resources required to implement the solution. Which criterion of decision making is she addressing?

A)legality
B)ethicality
C)economic feasibility
D)practicality
E)product sustainability

Question 32

In the classical model of decision making, managers

A)create heuristics to simplify the process.
B)identify and evaluate all possible alternatives before choosing a course of action.
C)apply representativeness bias to identify alternatives.
D)use intuition to select the most satisfactory solution.
E)use satisficing to select the optimum solution.

Question 33

The marketing manager of ToyBiz indicated that due to manufacturing efficiencies and market buzz, a new toy they were about to launch was likely to generate revenue beyond original projections. The lead designer reported that lab tests showed a risk that the toy could malfunction, possibly injuring a user, but that the design met required industry standards. By deciding to launch the toy as designed, what criterion of decision making were company executives ignoring?

A)economic feasibility
B)practicality
C)ethicalness
D)legality
E)functionality

Question 34

When generating alternatives to specific problems, it is important for managers to

A)view problems from a fresh perspective to enable creativity.
B)define alternatives that are aligned with existing managerial mindsets.
C)give more weight to others' solutions to ensure personal biases do not come into play.
D)prioritize upper management perspectives to ensure buy-in.
E)wait until all possible alternatives are identified and fully researched before acting.

Question 35

The first step in the managerial decision-making process is to

A)choose between alternatives.
B)assess alternatives.
C)learn from feedback.
D)recognize the need for a decision.
E)conduct a retrospective analysis.

Question 36

In the classical model of decision making, it is assumed that

A)there is no optimum decision.
B)there is more than one alternative.
C)there is only one alternative.
D)managers have access to all the information they need.
E)managers will not apply their own preferences to make a decision.

Question 37

Cora has been looking at several alternative locations for a new facility and performed a cost-benefit analysis in order to determine the net financial payoff of each location. Which criterion of decision making is Cora addressing?

A)economic feasibility
B)practicality
C)ethicalness
D)legality
E)functionality

Question 38

The president of Bank Fortuna is attempting to determine whether the bank has both the capability and the resources to open a branch facility in a new location. Which criterion of decision making is the president addressing?

A)practicality
B)ethicalness
C)legality
D)economic feasibility
E)functionality

Question 39

A company's senior management team was discussing moving its operations to a new location; however, the number of variables that would affect the move were so great that they could not begin to evaluate them all. This situation illustrates the concept of

A)programmed decision making.
B)bounded rationality.
C)dialectical inquiry.
D)illusion of control.
E)representativeness bias.

Question 40

Managers must rely on their ________ to make the best decision when faced with uncertainty and ambiguity.

A)intuition and judgment
B)cognitive biases
C)bounded rationality
D)escalating commitment
E)illusion of control

Question 41

To improve decision-making abilities, managers should

A)concentrate on planning for the future instead of analyzing past decisions.
B)ignore biases and personal style for making decisions.
C)rank various alternatives even when all relevant information is not available.
D)list the criteria that are being used to assess and evaluate alternatives and evaluate if the factors are appropriate.
E)pursue the most economically superior alternatives despite the threat of cannibalization to other areas of the business.

Question 42

DeMarcus has been general manager of the Surf and Turf Club restaurant for many years and always schedules extra staff for the busy Friday night shift. Business has been consistently slow on Fridays in recent months, but DeMarcus decides to continue with the extra staffing. His decision demonstrates

A)confirmation bias.
B)dialectical inquiry.
C)groupthink.
D)representativeness bias.
E)illusion of control.

Question 43

Regan has identified alternatives to a work problem. After considering the pros and cons of each option, she has chosen and implemented a solution. What should Regan do next for an effective decision-making process?

A)reassess the need for the decision
B)evaluate the results of the solution
C)move on to the next decision
D)implement a second solution as a backup
E)brainstorm additional alternatives

Question 44

Julian decides to offer his marketing services at a tradeshow in order to acquire new customers. Due to bad weather in the area, not a lot of people showed up. Frustrated, Julian decides he will never offer his services at a tradeshow again. Julian's decision demonstrates

A)confirmation bias.
B)dialectical inquiry.
C)escalating commitment.
D)representativeness bias.
E)groupthink.

Question 45

Ashraf wants his company to become a learning organization. What would you advise Ashraf to do to help achieve his goal?

A)Create one-size-fits-all training to ensure every employee approaches learning the same way.
B)Encourage employees to explore personal mental models and challenge them to consider new approaches.
C)Create a singular focus on team learning rather than on personal mastery.
D)Establish clear boundaries between teams so decisions can be made without distractions across teams.
E)Define a rewards program that encourages speed over creativity.

Question 46

________ is a source of bias that causes managers to continue to pursue a course of action even when evidence may indicate the chosen alternative is not advised.

A)Illusion of control
B)Bounded rationality
C)Economic feasibility
D)Escalating commitment
E)Dialectical inquiry

Question 47

Stefan has been tasked with deciding how best to improve his company's manufacturing process. Why should Stefan assemble a team and approach the decision as a group rather than going it alone?

A)He will be able to draw on the combined skills, competencies, and accumulated knowledge of group members to make the best decision.
B)He can save time by pursuing the decision as a group.
C)He can rally the group around his chosen course of action to show upper management his ideas have support.
D)He can use the group to distribute responsibility for the final decision, especially if there are unintended consequences.
E)He can increase perceived importance of his efforts by aligning more resources with the decision-making process.

Question 48

When executing an effective decision-making process, it is

A)better to make a decision and not implement it than to not make a decision at all.
B)necessary to identify relevant information and assume it is complete.
C)necessary to make many subsequent and related decisions in order to implement a chosen alternative.
D)important to focus on the future after making a decision rather than revisiting the decision through retrospective analysis.
E)reasonable not to evaluate disadvantages if the advantages of an alternative are significantly high.

Question 49

The managers in Julio's company sponsor monthly brainstorming sessions and reward employees with gift cards and recognition when an out-of-the box idea leads to organizational improvements. Julio's company is an example of a(n)________ organization.

A)learning
B)dialectical
C)skunkworks
D)intuitive
E)heuristic

Question 50

Julia believes that it is important to find ways to motivate her employees to make decisions that raise effectiveness of the team and overall company. Julia is committed to

A)dialectical inquiry.
B)devil's advocacy.
C)escalating commitment.
D)organizational learning.
E)personal mastery.

Question 51

Two separate groups of managers are given a problem to solve, and each group then presents its proposed solution to top management in an attempt to determine the best course of action. This process is called

A)devil's advocacy.
B)groupthink.
C)dialectical inquiry.
D)classical decision making.
E)organizational learning.

Question 52

Steve is part of a production team that has researched and chosen a new manufacturing process to improve product quality. He has discovered data that disputes some of the claims of the production team but decides to ignore the information and support the team's original decision. Steve is being adversely influenced by

A)the illusion of control.
B)organizational learning.
C)groupthink.
D)devil's advocacy.
E)representative bias.

Question 53

________ results from overestimating one's own ability to influence actions and events.

A)Escalating commitment
B)Illusion of control
C)Confirmation bias
D)Representativeness bias
E)Dialectical inquiry

Question 54

________ is a decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action.

A)Groupthink
B)Dialectical inquiry
C)Intuition
D)Creativity
E)The illusion of control

Question 55

Susan often defends unpopular or opposing alternatives for the sake of argument when discussing an issue. Susan is demonstrating

A)dialectical inquiry.
B)devil's advocacy.
C)groupthink.
D)confirmation bias.
E)organizational learning.

Question 56

Alba is concerned that a proposed alternative may have unforeseen effects elsewhere in the organization. She suggests more time be spent evaluating the consequences, but everyone else on the team rallies behind the lead manager to quickly finalize the decision. Alba's team is experiencing

A)groupthink.
B)illusion of control.
C)bounded rationality.
D)escalating commitment.
E)representativeness bias.

Question 57

When deciding on the catering budget for her upcoming wedding, Kris was told that typically around 10% of invited guests usually decline. Kris is using a(n)________ to simplify her decision making.

A)dialectical inquiry
B)cognitive bias
C)heuristic
D)confirmation bias
E)illusion of control

Question 58

Capable managers who repeatedly make the same mistakes that lead to poor decisions are making

A)dialectical errors.
B)programmed decisions.
C)nonprogrammed decisions.
D)intuitive judgments.
E)systematic errors.

Question 59

Rafael, who has committed large amounts of time and money to his house-painting business, continues to keep his business running despite incurring heavy losses. What form of cognitive bias is Rafael demonstrating?

A)escalating commitment
B)illusion of control
C)confirmation bias
D)representativeness bias
E)dialectical inquiry

Question 60

Corey, a project manager, is responsible for tracking project issues. Each week, he provides details regarding the effectiveness of solutions and what experiences could be used to guide improved issue resolution in the future. Corey's reporting is an example of the ________ step of the decision-making process.

A)practicality
B)choosing an alternative
C)feedback
D)implementation
E)criteria selection

Question 61

Heuristics are

A)errors that people make over and over and that result in poor decision making.
B)rules of thumb that simplify decision making.
C)the tendency to base decisions on strong prior beliefs.
D)a pattern of biased decision making.
E)the tendency to overestimate one's own ability to control activities and events.

Question 62

________ are intrapreneurial managers who leave their current organizations because of a lack of opportunity and start their own companies.

A)Satisficing managers
B)Social entrepreneurs
C)Entrepreneurs
D)Product champions
E)Devil's advocates

Question 63

What could a manager do to promote individual creativity in an organization?

A)A manager could closely monitor all employee actions.
B)A manager should reward decision-making speed.
C)A manager can give employees space to experiment.
D)A manager must restrain from providing feedback on ideas.
E)A manager should set specific performance goals requiring employees to demonstrate creativity.

Question 64

Yin observes that several of his employees have valuable creative talent. What could Yin do to promote individual creativity?

A)Pressure employees to deliver creative solutions quickly.
B)Tone down the importance of vital issues.
C)Reward employees who come up with creative ideas.
D)Redirect employees who are wasting time on outlandish ideas.
E)Promptly rank all ideas to discourage thinking that is too far from norms.

Question 65

Building a(n)________ is NOT easy and requires that managers change their management assumptions radically.

A)learning organization
B)administrative model
C)intuitive organization
D)heuristic organization
E)classical model

Question 66

When making nonroutine decisions, how do managers tend to view their decision-making skills?

A)Managers tend to lack confidence in nonroutine decisions.
B)Managers usually learn from their mistakes
C)Managers tend to be overconfident about their intuition and judgments.
D)Most managers believe they are more prone to making bad decisions than others.
E)Managers tend to make programmed decisions and delegate nonroutine decisions.

Question 67

Rosa's Pizzeria recently learned its cheese supplier will be retiring within the month. To quickly identify a new supplier among the numerous options, Rosa plans to evaluate three companies and make the best decision based on that sample. Rosa is using a(n)________ strategy to make this decision.

A)entrepreneurial
B)ambiguous
C)programmed
D)groupthink
E)satisficing

Question 68

While home from college one summer, Jerome rallied his friends to make and deliver sandwiches to homeless individuals in their town. The one-time effort was so well-received, Jerome worked to solicit cash and grocery donations from local businesses so that the following summer his group was able to make deliveries weekly. Jerome could be considered a(n)

A)social entrepreneur.
B)intrapreneur.
C)product champion.
D)skunkworks specialist.
E)devil's advocate.

Question 69

When encouraging creativity via the nominal group technique,

A)a questionnaire is sent to the group members to gather ideas.
B)group members meet face-to-face and begin by vocalizing ideas without evaluation.
C)group members exchange ideas online.
D)group members critique each proposed alternative as it is presented.
E)group members write down their ideas before sharing them with the group.

Question 70

Rachel believes strongly that her alternative to a problem is the best solution. When lobbying for her solution with the team, she focuses only on aspects of the evaluation document consistent with her claims. What is Rachel demonstrating?

A)confirmation bias
B)representativeness bias
C)illusion of control
D)production blocking
E)devil's advocacy

Question 71

Li believes his destiny is in his own hands and is open to taking risks and trying new things. He is very confident in his abilities and has a strong drive to achieve success for himself. Li demonstrates characteristics of a(n)

A)intuitive decision maker.
B)entrepreneur.
C)social entrepreneur.
D)devil's advocate.
E)middle manager.

Question 72

Roberta noticed some opportunities to increase literacy in her community so she pursued volunteer support and a government grant to establish an education program. This is an example of

A)entrepreneurship.
B)social entrepreneurship.
C)intrapreneurship.
D)skunkworks.
E)personal mastery.

Question 73

While facilitating a brainstorming session, Raul noticed periods of confusion and silence during which participants seemed unable to process the many ideas being floated. The efficiency of Raul's decision-making process was thereby limited due to the effects of

A)production blocking.
B)satisficing.
C)groupthink.
D)systematic errors.
E)escalating commitment.

Question 74

During a performance review discussion, Simone stated that she "could not evaluate Bob too highly." Brenda interpreted Simone's comments as favorable, but Stan believed she was indicating low performance. Simone's statement illustrates the problem of

A)groupthink.
B)bounded rationality.
C)intuition.
D)ambiguous information.
E)uncertainty.

Question 75

Meghan is tasked with leading a project team to quickly prototype an innovative product idea and accelerate its time to market. The team will operate independently of other development groups and report directly to the CEO. Meghan's project is an example of

A)a dialectical inquiry.
B)production blocking.
C)entrepreneurship.
D)a skunkworks.
E)an escalating commitment.

Question 76

After realizing that members of his rural community regularly drove over 15 miles for a touchless car wash, Ethan took out a small business loan and partnered with a local gas station to provide the service locally. Ethan exhibited traits of a(n)

A)entrepreneur.
B)devil's advocate.
C)learning organization.
D)product champion.
E)intrapreneur.

Question 77

To avoid groupthink and minimize bias, an organization can use ________ to have separate groups of managers propose solutions to a problem before coming together to critique each solution and arrive at an even better option.

A)production blocking
B)devil's advocacy
C)skunkworks
D)dialectical inquiry
E)classical decision making

Question 78

Jaleel's work group meets face-to-face and generates numerous alternatives to a product issue, many of them radical and a few out of the box. After identifying all alternatives, the group discusses the pros and cons of each and agrees on a short list of the best solutions. Jaleel's group is using ________ as part of its decision-making process.

A)the Delphi technique
B)dialectical inquiry
C)brainstorming
D)a nominal group technique
E)devil's advocacy

Question 79

________ is a written approach to creative problem solving by a group.

A)The Delphi technique
B)Production blocking
C)Brainstorming
D)Nominal group technique
E)Devil's advocacy

Question 80

Alaina anticipated some controversy getting managers from different functional teams to agree on the best course of action. She convened the managers face-to-face, and after presenting the issue at hand, gave them each 30 minutes to jot down their ideas and solutions. After discussing each idea in turn, each manager ranked the solutions and the one with the highest ranking was selected. Alaina used ________ to facilitate the decision making.

A)the Delphi technique
B)production blocking
C)brainstorming
D)the nominal group technique
E)the illusion of control