Deck 8: Making Decisions

Question 1

In the nominal group technique,group members never meet face to face.

Answer 1

False

Question 2

A relevant alternative is one that is both feasible for solving an existing problem and also feasible for implementation.

Answer 2

True

Question 3

The confirmation bias is the tendency to believe certain outcomes because others believe the same.

Answer 3

False

Question 4

According to the probability theory,the expected value for an alternative equals the income that alternative would produce,multiplied by its probability of producing that income.

Question 5

Decision makers who believe the source of all good is outside of themselves,and therefore rely heavily on suggestions from others,are classified as having an exploitative orientation.

Question 6

One of the disadvantages of group decision making is that they cost the organization more than individual decisions.

Question 7

The Delphi group decision-making technique is a process that involves circulating questionnaires on a specific problem among group members,sharing those results,and continuing to recirculate and refine responses until a consensus is reached.

Question 8

Employees are more likely to be committed to a decision reached through consensus.

Question 9

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

Question 10

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

Question 11

All decisions are categorized into programmed and nonprogrammed decisions.

Question 12

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 13

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

Question 14

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

Question 15

Generally,organizational decisions are made under conditions of complete certainty of future consequences.

Question 16

A decision that is routine and repetitive,and typically handled in a specific way,is called a nonprogrammed decision.

Question 17

During the decision-making process,organizational goals should be kept in mind when selecting the most beneficial alternative.

Question 18

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

Question 19

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

Question 20

Groupthink is a group decision-making process in which group decisions can be of higher quality than individual decisions thanks to the the group members' efforts to maintain friendly relationships among themselves.

Question 21

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 22

Which of the following 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 23

A ________ is an agreement on a decision by all the individuals involved in making that decision.

A)law
B)consensus
C)fiat
D)declaration
E)clause

Question 24

Jack works at an advertising agency and leads a team of 8 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 of the following orientations does Jack have?

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

Question 25

The ________ orientation of decision makers makes them believe that the source of all good is outside themselves,and therefore makes them rely heavily on suggestions from other organization members.

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

Question 26

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 27

Programmed decisions are ________.

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

Question 28

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 29

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 opinion on matters that come up and relies on these inputs to make the final decision.Which of the following decision-making orientations does Amy have?

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

Question 30

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 31

The ________ orientation is found in decision makers who desire to preserve the status quo as much as possible.

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

Question 32

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 33

Which 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

Question 34

Judgment,intuition,and creativity would most likely be classified as ________.

A)modern decision-making techniques appropriate for handling programmed decisions
B)traditional decision-making techniques appropriate for handling nonprogrammed decisions
C)traditional decision-making techniques appropriate for handling programmed decisions
D)modern decision-making techniques appropriate for handling nonprogrammed decisions
E)techniques that can be used for programmed as well as nonprogrammed decisions

Question 35

Nonprogrammed decisions are ________.

A)made by the workforce
B)one-shot decisions
C)routine and repetitive
D)less time-consuming
E)made by computers

Question 36

Which of the following is true about decisions taken 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 37

Which of the following is a traditional technique for handling a programmed decision?

A)judgment
B)rules of thumb
C)habit
D)intuition
E)training

Question 38

Peter often asks his colleagues for their ideas and suggestions in order 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 39

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

Question 40

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

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

Question 41

Which 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 42

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 43

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 44

Which 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 45

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 46

________ 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 47

________ refers to the fact that managers are constrained in terms of time,computational power,and knowledge when making decisions.

A)Intuition
B)Unrealistic optimism
C)Bounded rationality
D)Rational ignorance
E)Cognitive bias

Question 48

A(n)________ alternative is one that is considered feasible for solving an existing problem and for implementation.

A)relevant
B)unrelated
C)isolated
D)distinct
E)external

Question 49

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 50

________ 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 51

Which 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

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 53

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 54

Which 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 55

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 56

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

Question 57

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 58

________,also known as simple rules of thumb,are often used by individuals to make decisions.

A)Bounded rationality
B)Syntax
C)Folksonomies
D)Intuition
E)Heuristics

Question 59

John wants to start his own pet shop and has put out 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.This is an example of ________.

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

Question 60

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

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

Question 61

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 62

________ 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 63

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 64

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

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

Question 65

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.

Question 66

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 67

Lisa is trying to decide on the location of her entrepreneurial venture - Flower Power,a specialty wedding flower service.She has three possible locations (A,B,C)in mind.Lisa has projected that in the first year of operation,under ideal conditions,her company would generate $80,000 at Location A,$55,000 at Location B,and $45,000 at Location C.However,after further analysis,Lisa has determined that there is only a 20 percent chance of ideal conditions occurring during the first year of operation in Location A.Locations B and C have a .4 and a .8 probability,respectively,for ideal conditions during the first year of operations.Based on this information,the expected value for Location A is ________,while for Location B it is ________.

A)$400,000; $137,500
B)$16,000; $22,000
C)$64,000; $33,000
D)$96,000; $77,000
E)$320,000; $82,500

Question 68

________ 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.

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

Question 69

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 70

________ refers to situations in which statistical probabilities can be attributed to alternative potential outcomes.

A)Optimism
B)Surety
C)Uncertainty
D)Risk
E)Heuristics

Question 71

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 72

Lisa is trying to decide on the location of her entrepreneurial venture - Flower Power,a specialty wedding flower service.She has three possible locations (A,B,C)in mind.Lisa has projected that in the first year of operation,under ideal conditions,her company would generate $80,000 at Location A,$55,000 at Location B,and $45,000 at Location C.However,after further analysis,Lisa has determined that there is only a 20 percent chance of ideal conditions occurring during the first year of operation in Location A.Locations B and C have a .4 and a .8 probability,respectively,for ideal conditions during the first year of operations.Based on this information,which location should Lisa choose?

A)Lisa should choose location A.
B)Lisa should choose location B.
C)Lisa should choose location C.
D)Lisa should choose either Location A or B because both are viable.
E)Lisa should choose either Location A or C because both are viable.

Question 73

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 74

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 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 75

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 76

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 77

Individuals' tendency to believe that 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 78

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)take out a secret ballot to support their favorite idea
E)adopt and implement the most cost effective idea

Question 79

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 80

Which of the following is 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.