Deck 7: Information and Decision Making

Question 1

Which of the following statements accurately describes the impact of information technology on organisations?

A) To compete successfully in an unforgiving business environment, companies must find new and faster ways of sharing critical information and leveraging knowledge resources.
B) More information about more things is being made available to more people in organisations more quickly than ever before.
C) Since knowledge is an irreplaceable resource, organisations should always seek to grow and create intellectual capital.
D) None of the options listed
E) All of the options listed

Answer 1

E

Question 2

The combination of computer hardware, software, networks and databases that allow information to be shared, stored and manipulated is known as:

A) computer competency.
B) information technology.
C) information competency.
D) intellectual capital.
E) the electronic office.

Answer 2

B

Question 3

All but one of the following statements provides an accurate description of decision support systems. Which statement does NOT provide an accurate description?

A) A decision support system uses special software to allow users to interact directly with a computer to help make decisions for solving complex and sometimes unstructured problems.
B) A fast growing form of decision support systems utilises groupware to facilitate the interaction and work of team members who are on different shifts or are spread over large geographic distances.
C) Decision support systems are available to assist managers in such business decisions as mergers and acquisitions, plant expansions, new product development and stock portfolio management.
D) A decision support system is the work team that assists a manager is evaluating decision alternatives.
E) Continuing developments in the use of groupware are expanding the opportunities for use of virtual teams in organisations.

Answer 3

D

Question 4

Which of the following sequence of stages accurately describes the stages of development in e-commerce?

A) Secure an online identity, establish a web presence, enable e-commerce, provide e-commerce and customer relationship management, and utilise a service application model.
B) Establish a web presence, enable e-commerce, secure an online identity, utilise a service application model, and provide e-commerce and customer relationship management.
C) Secure an online identity, utilise a service application model, enable e-commerce, establish a web presence, and provide e-commerce and customer relationship management.
D) Establish a web presence, secure an online identity, enable e-commerce, utilise a service application model, and provide e-commerce and customer relationship management.
E) Utilise a service application model, secure an online identity, establish a web presence, provide e-commerce and customer relationship management, and enable e-commerce.

Question 5

The increasing use of information technology (IT) can help organisations better manage relationships with their environments in which of the following ways?

A) IT helps build and manage relationships with strategic partners.
B) IT helps organisations take care of their customers.
C) IT helps organisations work well with their resource suppliers.
D) None of the options listed is a way that IT can help organisations manage relationships with their environments.
E) All of the options listed are ways that IT can help organisations manage relationships with their environments.

Question 6

Which of the following statements accurately describes the advantages of groupware?

A) Groupware facilitates work by team members who work different shifts or are dispersed geographically.
B) Groupware facilitates information exchange, group decision making and work scheduling.
C) Groupware facilitates group activities without the requirement of face-to-face meetings.
D) All of these statements accurately describe the advantages of groupware.
E) Groupware facilitates the opportunity to create and use virtual teams.

Question 7

__________ uses information technology (IT) to meet the information needs of managers as they make decisions on a daily basis.

A) An intranet
B) An extranet
C) An inter-organisational information system
D) An enterprise-wide network
E) A management information system

Question 8

A good information system provides managers with 'intelligence information' concerning the:

A) scores of job applicants on aptitude tests.
B) activities of key subunits within the organisation.
C) activities of a variety of outside parties in the organisation's external environment.
D) activities of non-managerial personnel.
E) historical record of the organisation's performance accomplishments.

Question 9

The advantages of appropriate MIS utilisation include all of the following EXCEPT:

A) MIS utilisation allows for more ongoing and informed communication among all parts of the organisation, helping ensure better coordination and integration.
B) MIS utilisation allows for better and more frequent communication with all organisation members and key environmental stakeholders.
C) MIS utilisation allows for greater reliance on computer and information technology in addressing the challenges faced by an organisation.
D) MIS utilisation allows for better and timelier access to useful information, as well as for the involvement of many people in the planning process.
E) MIS utilisation allows for more immediate and complete measurement of performance results and real-time solutions to performance problems.

Question 10

Common information systems mistakes include all of the following EXCEPT which one?

A) Don't assume that the newest technology is always best.
B) Don't assume that everyone understands computer etiquette.
C) Don't assume that more information is always better.
D) Don't assume that the computer can replace human judgement.
E) Don't assume that everyone understands how an information system works.

Question 11

The use of computers that allow sophisticated voice, image, text and other data handling is known as:

A) a virtual office.
B) a 'smart' station.
C) the modern office.
D) an information office.
E) the office of the future.

Question 12

Which of the following is NOT one of the activities influenced or enabled by extranets?

A) Extranets provide the basic foundations for the fast-paced developments that are occurring in electronic commerce or e-business.
B) Extranets promote more integration within an organisation, thereby improving operational effectiveness and efficiency.
C) Extranets are major components in an organisation's linkages with suppliers and/or customers.
D) Extranets are increasingly used to allow information transfers between two or more organisations.
E) Extranets enable companies to communicate electronically with one another in order to move and share documents such as purchase orders, bills, receipt confirmations, and even payments for services rendered.

Question 13

Companies that invest in information technology in the quest for competitive advantage can expect to benefit through:

A) lower costs.
B) improved customer services.
C) better quality.
D) None of the options listed
E) All of the options listed

Question 14

Information systems are becoming increasingly important to organisations for the purpose of image building. Which of the following describes the type of information that is useful for image building?

A) Marketing information
B) Public information
C) Sales information
D) Customer feedback
E) Intelligence information

Question 15

The goal of integrating computer systems and software into intranets is to:

A) minimise data entry problems.
B) enable more information to be stored in the systems.
C) promote more integration across the organisation and improve operational effectiveness and efficiency.
D) None of the options listed
E) All of the options listed

Question 16

__________ is the process of buying and selling goods electronically through the use of the Internet and related information technologies.

A) Information management
B) The electronic office
C) Robotics
D) Electronic commerce
E) Information management

Question 17

An interactive computer-based information system that facilitates the efforts of several people working together in solving complex and unstructured problems is a:

A) collective support system.
B) group decision support system.
C) problem-solving system.
D) communal information system.
E) brainstorming support system.

Question 18

Intellectual capital can be defined as:

A) the concentration of wealth in technologically advanced countries.
B) the use of new ideas to create a competitive advantage by producing high quality products.
C) the development of an organisational training program to increase information learning.
D) the shared knowledge of a workforce that can be used to create wealth.
E) a plan to promote higher education through annual fund raising events.

Question 19

The type of group decision support system that allows several people to simultaneously work on a file or database and work together on computer networks is called:

A) a team network.
B) an interactive system.
C) a dynamic system.
D) an informational link.
E) groupware.

Question 20

A(n) __________ is someone whose knowledge is an important asset to employers.

A) intellectual capitalist
B) decision support manager
C) knowledge manager
D) computer analyst
E) knowledge worker

Question 21

A(n) __________ is a choice among alternative possible courses of action.

A) performance deficiency
B) decision
C) performance opportunity
D) problem
E) action plan

Question 22

__________ is the ability to remain focused on long-term objectives while being flexible in dealing with short-term problems and opportunities in a timely manner.

A) System opportunism
B) Individual opportunism
C) Intuitive opportunism
D) Competitive opportunism
E) Strategic opportunism

Question 23

Which of the following statements does NOT accurately describe an aspect of how managers should deal with a crisis?

A) A crisis may be made worse if critical decisions are made with poor or inadequate information and from a limited perspective.
B) Proactive managers try to identify those situations that are likely to be susceptible to a crisis, and then develop basic contingency plans for crisis management.
C) Most managers react to crisis situations by readily involving others in solving the problem.
D) Information and teamwork are especially crucial in solving a crisis situation.
E) The ability to handle a crisis may be the ultimate test of a manager's problem-solving capabilities.

Question 24

Which level of management uses information to formulate strategies, objectives and long-term plans; to develop policies; and to make strategic decisions?

A) Top managers
B) All levels of management
C) Top and middle managers
D) Middle managers
E) First-level managers

Question 25

Useful information has the characteristics of:

A) timeliness, quality, completeness, relevance and acceptance.
B) timeliness, quantity, completeness, relevance and understandability.
C) timeliness, quality, completeness, relevance and understandability.
D) timeliness, completeness, relevance, applicability and acceptance.
E) timeliness, quantity, quality, completeness and acceptance.

Question 26

Information technology has numerous important effects on the manager's job. Which one of the following is NOT one of these effects?

A) Only the informational managerial role identified by Henry Mintzberg involves communication and information processing.
B) Any manager must act as a nerve centre of information flows, interacting with many sources in gathering, giving and receiving information.
C) Managers use information to make decisions in fulfilling the management functions of planning, organising, leading and controlling.
D) Managers should be devoted to implementing and maintaining the very best available information systems.
E) Managers must have a personal commitment to computer and information competency, and a willingness to utilise developments in information technology to best advantage.

Question 27

Most higher-level managerial decision situations can be classified as:

A) classical and unexpected.
B) routine and administrative.
C) intuitive and functional.
D) systematic and behavioural.
E) non-routine and unstructured.

Question 28

Managers should use __________ in high uncertainty situations where limited facts and few decision precedents exist.

A) the nominal group technique
B) systematic thinking
C) intuitive thinking
D) decision tree analysis
E) the brainstorming technique

Question 29

A good example of a programmed decision is to:

A) place poor performing students on probation at a pre-established minimum grade average.
B) initiate an external audit when charitable deductions reported on the tax form exceed a certain limit.
C) reorder inventory automatically when it falls to a certain level.
D) None of the options listed
E) All of the options listed

Question 30

Which of the following is NOT a good example of a non-programmed decision situation?

A) Consideration of an employee's request for tuition reimbursement for a job-related course taken at the local community college.
B) Assessing environmental changes and adjusting corporate strategy accordingly.
C) Evaluating different locations for setting up an overseas manufacturing facility.
D) Dealing with a massive equipment breakdown.
E) Dealing with an incident of workplace rage by a former employee.

Question 31

Problem solving and decision making are dependent on quality __________ being available to the right people at the right time.

A) information
B) services
C) products
D) goals
E) control

Question 32

A company purchases a new computer system for the purpose of streamlining the processing of customer orders. The company's objective is to decrease processing time so that 98% of all orders are shipped within 24 hours of being received. After operating with the new system for three months, the company was shipping 92% of all orders within 24 hours. This situation is an example of a(n):

A) ethical situation.
B) work process weakness.
C) performance deficiency.
D) performance opportunity.
E) planning weakness.

Question 33

Which of the following is not a characteristic of useful information?

A) The information is accurate and reliable.
B) The information is appropriate for the task at hand.
C) The information is complete and sufficient for the task at hand.
D) The information is available when needed.
E) The information will enable the user to be involved in making decisions and increase the likelihood of his/her commitment to those decisions.

Question 34

__________ are managers who try to solve problems but only when forced to by the situation.

A) Problem solvers
B) Active managers
C) Problem avoiders
D) Problem followers
E) Problem seekers

Question 35

Computer programs that arise out of the field of artificial intelligence and help managers analyse and solve problems at a highly skilled or proficient level that mimics the thinking of human experts are called:

A) expert systems.
B) superior management software.
C) skilled programs.
D) artificial systems.
E) virtual reality systems.

Question 36

An unexpected problem that can lead to disaster if not resolved quickly and appropriately is known as:

A) an unstructured problem.
B) a crisis.
C) a non-programmed decision.
D) a structured problem.
E) a programmed decision.

Question 37

An airline company uses a computer-based system to assist in scheduling maintenance for planes. The system combines the knowledge and insights associated with aircraft landing schedules of approximately three dozen aircraft routing specialists. It uses about 500 decision rules to 'reason' on behalf of the users. This system is an example of:

A) an old-fashioned idea in the computer field.
B) likely to replace the judgements of new managers.
C) not likely to work efficiently and effectively.
D) an expert system.
E) designed to handle programmed decisions.

Question 38

A __________ occurs when an actual situation turns out either better than anticipated or offers the potential to be so.

A) performance deficiency
B) performance issue
C) management challenge
D) decision situation
E) performance opportunity

Question 39

A problem exists when there is a difference between __________ and __________.

A) a past situation; the current situation
B) an actual situation; a potential situation
C) goals; objectives
D) an actual situation; a desired situation
E) the financial bottom line in one quarter; the financial bottom line in the next quarter

Question 40

Stating a problem as the need to 'build a better mousetrap' instead of the need to 'get rid of mice' is an example of which type of error in identifying and defining a problem?

A) Doing the routine rather than the unexpected
B) Selective perception
C) Focusing on symptoms instead of causes
D) Defining a problem too narrowly
E) Defining a problem too broadly

Question 41

The most difficult decision environment for any manager to deal with is:

A) certainty.
B) risk.
C) uncertainty.
D) innovation.
E) probability.

Question 42

Systematic thinkers are likely to:

A) broadly and quickly evaluate the problem situation and the possible alternative course of action.
B) make a plan for solving a problem but explore and abandon alternatives very quickly.
C) deal with many aspects of a problem simultaneously, consider hunches and jump quickly from one issue to another.
D) break a complex problem into smaller components, make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion.
E) rely on nonverbal cues and hunches to solve problems.

Question 43

Suppose retail sales are steadily dropping. Executive A says it is probably a seasonal drop and should be ignored. Executive B suggests convening a task force to analyse the situation before a decision is made. Executive C says the answer to the drop in sales is to conduct market research and possibly develop a new image for the store or revamp the marketing campaign to make the store more appealing to the consumer. Which of the following statements accurately describes the three executives' different styles for dealing with problems?

A) A is a problem avoider; B is a problem avoider; C is problem solver.
B) A is a problem avoider; B is a problem seeker; C is a problem seeker.
C) A is a problem avoider; B is a problem solver; C is a problem seeker.
D) A is a problem avoider; B is problem seeker; C is a problem solver.
E) None of the options listed is accurate

Question 44

The ideal, but seldom achieved, condition for managerial problem solving is characterised by:

A) low risk, because managers seek a little stimulation.
B) certainty, because the manager simply has to locate the alternative offering the best solution.
C) high risk, because that is when high profits are possible.
D) uncertainty, because that offers the greatest chance for creativity.
E) normality, because that is the condition under which all the business principles work.

Question 45

Decision making is a _________ process that begins with __________ and ends with __________.

A) five-step; identifying and defining the problem; implementing the solution
B) five-step; identifying and defining the problem; evaluating the results of the implemented solution
C) four-step; identifying and defining the problem; implementing the solution
D) six-step; generating alternative solutions; implementing the solution
E) six-step; generating alternative solutions; evaluating the results

Question 46

The failure to adequately involve the people whose support is necessary to ensure a plan's complete implementation is a major reason for difficulties in the __________ stage of decision making.

A) implementation
B) solution generation and evaluation
C) solution selection and 'ethics double check'
D) identification and problem definition
E) evaluation

Question 47

A person who approaches problems in a rational, step-by-step, and analytical fashion is engaging in:

A) systematic thinking.
B) uncertainty analysis.
C) risk analysis.
D) strategic opportunism.
E) intuitive thinking.

Question 48

Which of the following statements is/are TRUE?

A) Problem seekers try to solve problems as they arise.
B) Problem avoiders ignore information that would otherwise signal the presence of a problem.
C) Problem solvers actively process information and look for problems to solve or opportunities to explore.
D) None of the options listed
E) All of the options listed

Question 49

__________ is the capacity to view many problems at once, in relationship to one another, and across long and short time horizons.

A) Alternative thinking
B) Multidimensional thinking
C) Expert thinking
D) Strategic thinking
E) Intuitive thinking

Question 50

The first step in the decision making process involves:

A) gathering information, processing information and deliberating.
B) selecting a preferred solution.
C) implementing the preferred solution.
D) generating alternative solutions and evaluating them.
E) evaluating the results.

Question 51

When managers are unable to even assign probabilities to the outcomes attached to various problem-solving alternatives:

A) managers cannot rely on creativity.
B) a state of crisis exists.
C) the planning system must rely on managers' intuition.
D) no solutions are possible.
E) uncertainty exists.

Question 52

Intuitive thinkers are likely to do all of the following EXCEPT:

A) solve problems in a step-by-step fashion.
B) consider hunches and jump quickly from one issue to another.
C) explore and abandon alternatives very quickly.
D) consider a number of alternatives and options simultaneously.
E) broadly and quickly evaluate a problem situation.

Question 53

__________ involves asking questions such as: What is the actual situation? What is the desired situation?

A) Implementation of solutions
B) Evaluation of solutions
C) Identification and definition
D) Choosing a preferred solution
E) Generation of solutions

Question 54

When decision-makers lack complete information but have some knowledge of the probabilities associated with the outcomes of various courses of action, they are operating in an environment of:

A) subjectivity.
B) uncertainty.
C) certainty.
D) risk.
E) None of the options listed

Question 55

Tips on how to avoid the escalation of commitment trap in decision making include all of the following EXCEPT:

A) determining why the particular course of action is right.
B) setting advance limits on involvement.
C) not letting others influence your decision.
D) guarding yourself against the tendency to quit too soon.
E) keeping in mind the costs involved.

Question 56

Suppose a work process is changed with the intent of increasing output by 5 per cent. After the first month of operation with the new work process, an output increase of 7 per cent is reported. This is an example of a(n):

A) planning strength.
B) work process strength.
C) ethical situation.
D) performance deficiency.
E) performance opportunity.

Question 57

Which of the following statements does NOT accurately characterise the nature of problems?

A) A performance opportunity occurs when an actual situation turns out either better than anticipated or offers the potential to be so.
B) A problem refers to any difference between an uncertain situation and a perceived situation.
C) A performance deficiency occurs when actual performance is less than desired performance.
D) A problem refers to any difference between an actual situation and a desired situation.
E) The challenge in dealing with any problem is to proceed with effective problem solving.

Question 58

A(n) __________ is made when a new and unfamiliar problem arises and a novel solution is crafted to meet the demands of the unique situation at hand.

A) structured decision
B) programmed decision
C) non-programmed decision
D) difficult decision
E) unstructured decision

Question 59

Which of the following statements does NOT accurately describe an attribute or feature of ethical decision making?

A) The 'ethics double check' should address the question: 'How would I feel if this decision were published in the local newspaper?'
B) Only major managerial decisions need to meet the criteria of the 'ethics double check.'
C) Any discomfort in answering the 'ethics double check' questions signifies that the decision may have ethical shortcomings.
D) The 'ethics double check' should be done during step 3 of the decision making process.
E) The 'ethics double check' should address the question: 'How would I feel if my family finds out about this decision?'

Question 60

The president of a company anticipated the need for a new product line to replace other products that were reaching their maximum sales potential. This president could be described as a:

A) problem definer.
B) problem solver.
C) problem finder.
D) problem avoider.
E) problem seeker.

Question 61

The potential disadvantages of group decision making include which of the following?

A) Individual team members may feel pressure to conform to the wishes of others.
B) Minority domination may occur.
C) Decision making takes longer.
D) None of the options listed
E) All of the options listed

Question 62

Which question(s) arise(s) in the third step of the decision-making process?

A) How will the course of action be chosen?
B) Who will choose the course of action to pursue?
C) Which course of action will be chosen?
D) None of the options listed
E) All of the options listed

Question 63

The third step of the decision making process involves:

A) gathering information, processing information and deliberating.
B) selecting a preferred course of action.
C) implementing the solution.
D) generating alternative solutions and evaluating them.
E) evaluating the results.

Question 64

Which one of the following statements regarding decision making models is CORRECT?

A) The behavioural decision model describes how managers act in situations of limited information and bounded rationality.
B) The classical decision model predicts that managers will make optimising decisions.
C) The classical decision model views managers as acting in a certain world.
D) The behavioural decision model predicts that managers will make satisficing decisions.
E) All of the options listed

Question 65

Which one of the following statements provides an INCORRECT description of the behavioural decision model?

A) Because of bounded rationality managers make satisficing decisions, especially in dealing with ambiguous problems in risky and uncertain conditions.
B) Even with cognitive limitations, competent managers can make perfectly rational decisions in highly ambiguous situations.
C) Managerial decisions are rational only within the boundaries defined by available information.
D) Cognitive limitations make it difficult for managers to become fully informed.
E) Limits exist regarding human information-processing capabilities.

Question 66

Typical criteria for evaluating alternative solutions include all of the following EXCEPT:

A) timeliness.
B) ease of implementation.
C) acceptability.
D) benefits and costs.
E) ethical soundness.

Question 67

The best managers and team leaders use both ___________ decision making, employing the one that best fits the problem at hand.

A) classical and group
B) individual and group
C) behavioural and group
D) behavioural and individual
E) classical and individual

Question 68

Examining the __________ a proposed decision may result in both better decisions and the prevention of costly litigation.

A) expected results of
B) implementation strategy for
C) top management support for
D) ethics of
E) required resources for

Question 69

Comparing the costs of implementing an alternative with its expected benefits is called a(n):

A) chart of probabilities.
B) payoff table.
C) cost-benefit analysis.
D) decision matrix.
E) inventory of alternatives.

Question 70

The __________ describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences.

A) administrative decision model
B) behavioural decision model
C) political decision model
D) classical decision model
E) bounded rationality decision model

Question 71

A manager who chooses the alternative giving the absolute best solution to a problem is making a(n):

A) managerial decision.
B) wise decision.
C) optimising decision.
D) systematic decision.
E) rational and limiting decision.

Question 72

The potential advantages of group decision making include all of the following EXCEPT:

A) minority domination may occur.
B) it makes greater amounts of information, knowledge and expertise available to solve problems.
C) it increases the commitment of team members to the final plans.
D) it increases the understanding and acceptance of outcomes by members.
E) it increases the number of action alternatives that are examined.

Question 73

The tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working is known as:

A) heuristics.
B) cost-benefit impact.
C) satisficing.
D) escalating cost impact.
E) escalating commitment.

Question 74

The __________ describes decision making with limited information and bounded rationality where people are assumed to act only in terms of what they perceive about a given situation is called.

A) behavioural decision model
B) personal decision model
C) biased decision model
D) executive decision model
E) descriptive decision model

Question 75

Which statement about heuristics is correct?

A) The availability heuristic occurs when people use information from memory as a basis for assessing a situation or event.
B) The representativeness heuristic occurs when people assess the likelihood of something occurring based on its similarity to some stereotyped set of occurrences.
C) The anchoring and adjustment heuristic involves making decisions based on alterations to a previously existing value or starting point.
D) None of the options listed
E) All of the options listed

Question 76

When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision making process, ______________ has occurred.

A) satisficing
B) intuition
C) rationalisation
D) suboptimisation
E) optimisation

Question 77

Which of the following does NOT accurately describe the evaluation of results in the decision making process?

A) The process must be renewed when results are not achieved.
B) A modified or new solution may need to be generated if the original solution appears to be inadequate.
C) Evaluation is made easier if the solution involves clear objectives with measurable targets and timetables.
D) Only negative consequences of the chosen course of action need to be examined.
E) The decision making process is not complete until results are evaluated.

Question 78

The __________ is particularly useful in describing how people make decisions under conditions of risk and uncertainty.

A) classical decision model
B) political decision model
C) descriptive decision model
D) executive decision model
E) behavioural decision model

Question 79

The __________ refers to the failure to adequately involve those persons whose support is necessary to ensure a decision's complete implementation.

A) employee-limitation error
B) lack-of-participation error
C) satisficing error
D) bounded-rationality error
E) person-perception error

Question 80

Which of the following features are important for the second step of the decision-making process to be effective?

A) The pros and cons of possible alternative courses of action should be identified.
B) Others should be involved in order to maximise information and build commitment.
C) Plans are only as good as the pool of alternatives.
D) None of the options listed
E) All of the options listed