Deck 10: Decision Making by Individuals and Groups

Question 1

Alex, the CEO of WizzWare Inc., is in charge of making the decision about merging WizzWare Inc. with another company. This decision is a _____.

A)programmed decision
B)simple decision
C)routine decision
D)nonprogrammed decision

Answer 1

D

Question 2

Which of the following is true of nonprogrammed decisions?

A)They are routine decisions.
B)They have an established procedure.
C)They are new and complex decisions.
D)They are the decisions that a manager has taken in the past.

Answer 2

C

Question 3

Which of the following is an assumption of the rational model of decision making?

A)The outcome will be feasible only in theory.
B)The decision maker is aware of all the possible alternatives.
C)The decision maker cannot calculate the probability of success for each alternative.
D)The decision maker has an inconsistent system of preferences, which is used to choose alternatives.

Answer 3

B

Question 4

Identify an assumption of the bounded rationality model of decision making.

A)Managers make decisions by rules of thumb, or heuristics.
B)Managers are aware of all the possible alternatives.
C)Managers recognize that their conception of the world is complex.
D)Managers choose the best alternative after thorough analysis.

Question 5

_____ refers to a logical, step-by-step approach to decision making with a thorough analysis of alternatives and their consequences.

A)Instrumentality
B)Rationality
C)Proportionality
D)Conventionality

Question 6

Which of the following is true of the rational model of decision making?

A)It assumes that there are limits on how rational can a decision maker be.
B)It suggests that it is impossible to calculate the probability of success.
C)In this model, the decision maker strives to select the best possible alternative.
D)In this model, the decision maker selects the first alternative that is good enough.

Question 7

_____ is the first step in the decision-making process.

A)Identifying the objective of a decision
B)Recognizing the real problem
C)Gathering information relevant to a problem
D)Evaluating different courses of action

Question 8

Which of the following is an assumption of the bounded rationality model?

A)Managers are aware of all the possible alternatives.
B)Managers select the first alternative that is satisfactory.
C)Managers can calculate the probability of success for each alternative.
D)Managers have a consistent system of preferences, which is used to choose the best alternative.

Question 9

The bounded rationality model assumes that managers:

A)select the alternative that is completely rational.
B)always select the best possible alternative.
C)recognize that their conception of the world is complex.
D)are comfortable making decisions without determining all the alternatives.

Question 10

The bounded rationality model assumes that managers _____ because the costs of optimizing in terms of time and effort are too great.

A)satisfice
B)rationalize
C)examine facts and details
D)reject heuristics

Question 11

Which of the following is true of programmed decisions?

A)They are new and complex decisions.
B)They require creative solutions.
C)They have an established decision rule.
D)They require detailed judgment.

Question 12

Identify a true statement about the rational model of decision making.

A)It fails to reflect the reality of managerial decision making.
B)It assumes that a decision maker is not aware of all the possible alternatives.
C)It considers time constraints and limits to human knowledge in decision making.
D)It captures the realistic way of decision making.

Question 13

Identify an assumption of the rational model of decision making.

A)The decision maker has a consistent system of preferences.
B)The decision maker is not aware of all the possible alternatives.
C)The decision maker cannot determine the probability of success for each alternative.
D)There are time constraints and limits to human knowledge and information-processing capabilities.

Question 14

Which of the following is a nonprogrammed decision?

A)Scheduling shifts for a group of workers.
B)Buying a new car.
C)Following a standard operating procedure.
D)Conducting routine servicing of a machine.

Question 15

In the context of the decision-making process, after a solution is implemented, the next step is to:

A)monitor the situation.
B)calculate the probability of success.
C)evaluate alternative courses of action.
D)recognize the need for a decision.

Question 16

Which of the following is a programmed decision?

A)Scheduling shifts for a group of workers.
B)Buying a company.
C)Purchasing a cell phone of a new brand.
D)Visiting an unfamiliar restaurant.

Question 17

The second step of decision making involves:

A)determining what is to be accomplished by a decision.
B)gathering information relevant to a problem.
C)selecting the best course of action.
D)recognizing the need for a decision.

Question 18

The _____ of decision making rests on the idea that there are constraints that force a decision maker to be less than completely rational.

A)rational model
B)truth-wins rule
C)bounded rationality model
D)two-thirds majority rule

Question 19

The rational model of decision making assumes that:

A)the decision maker has an inconsistent system of preferences.
B)there are limits on how rational a decision maker can be.
C)decision makers make decisions by rules of thumb.
D)the decision maker can calculate the probability of success for each alternative.

Question 20

In the rational model of decision making, the decision maker strives to:

A)satisfice.
B)optimize.
C)support a failing course of action.
D)develop shortcuts.

Question 21

In situations characterized by _____, individuals who make decisions that turn out to be poor choices tend to hold fast to those choices, even when substantial costs are incurred.

A)escalation of commitment
B)path dependency
C)group polarization
D)participative decision making

Question 22

Jake, the CEO of WinWest Inc., launches a new product. Despite the product's persistent failure, he is unwilling to withdraw it from the market because he believes that the product will be profitable in the long term. This scenario is an example of _____.

A)path dependency
B)risk aversion
C)escalation of commitment
D)participative decision making

Question 23

In the context of the Z problem-solving model, which of the following preferences is used to generate alternatives?

A)Feeling
B)Sensing
C)Intuiting
D)Thinking

Question 24

In the context of decision making, using the _____ can help an individual develop his or her nonpreferences.

A)truth-wins rule
B)two-thirds majority rule
C)bounded rationality model
D)Z problem-solving model

Question 25

_____ are shortcuts in decision making that save mental activity.

A)Mnemonics
B)Heuristics
C)Kinesics
D)Proxemics

Question 26

One of the reasons managers face limits to their rationality is that they:

A)are aware of all the possible alternatives.
B)must make decisions under risk and time pressure.
C)have a consistent system of preferences.
D)calculate the probability of success for each alternative.

Question 27

Which of the following preferences is used in the first step of the Z problem-solving model to gather information about a problem?

A)Feeling
B)Sensing
C)Intuiting
D)Thinking

Question 28

Which of the following is a method of reducing escalation of commitment?

A)Splitting the responsibility for project decisions
B)Increasing a decision maker's cognitive dissonance
C)Motivating decision makers to be highly optimistic about their decisions
D)Encouraging decision makers to not give up on their poor choices

Question 29

In the context of decision making, which of the following is true of Z problem-solving model?

A)It discards the role of emotion in decision making.
B)It assumes that the outcome will be completely rational.
C)It assumes that managers satisfice; that is, they select the first alternative that is "good enough."
D)It helps managers use both preferences and nonpreferences to make decisions more effectively.

Question 30

Two supermarkets getting involved in a price war and continuing it despite incurring heavy losses is an example of _____.

A)path dependency
B)risk aversion
C)escalation of commitment
D)participative decision making

Question 31

Escalation of commitment occurs when managers:

A)lack optimism.
B)stop supporting a poor decision.
C)recognize that they cannot control the future.
D)strive to reduce their cognitive dissonance.

Question 32

Continuing to support a failing course of action is known as _____.

A)path dependency
B)escalation of commitment
C)group polarization
D)participative decision making

Question 33

Which of the following is an assumption of the bounded rationality model?

A)Managers are aware of all the possible alternatives.
B)Managers have a consistent system of preferences, which is used to choose the best alternative.
C)Managers can calculate the probability of success for each alternative.
D)Managers develop shortcuts, called heuristics, to make decisions in order to save mental activity.

Question 34

Which of the following is true of heuristics?

A)They help managers make decisions based on what has worked in past experiences.
B)They are assumptions in the rational model of decision making.
C)They are the risks and challenges involved in decision making.
D)They help managers to form a consistent system of preferences, which is used to choose the best alternative.

Question 35

In the context of decision making, which of the following is a limitation that is shared by the rational model, the bounded rationality model, and the Z problem-solving model?

A)The lack of acknowledgement of time constraints and limits to human knowledge.
B)A decision maker's unwillingness to abandon a bad decision.
C)The failure to consider the role of emotion in decision making.
D)A decision maker's failure to use nonpreferences to make effective decisions.

Question 36

Which of the following preferences is used in the final step of the Z problem-solving model to determine how the people involved will be affected?

A)Feeling
B)Sensing
C)Intuiting
D)Thinking

Question 37

One of the reasons that escalation of commitment occurs is the:

A)lack of optimism in managers.
B)illusion of having control on the future.
C)willingness to abandon bad decisions.
D)continuous effort to increase cognitive dissonance.

Question 38

In the context of the preferences in the Z problem-solving model, _____ is used to analyze the alternatives objectively.

A)Feeling
B)Sensing
C)Intuiting
D)Thinking

Question 39

Cognitive style is defined as an individual's:

A)preferred method for gathering information and evaluating alternatives.
B)tendency to choose options that entail fewer risks and less uncertainty.
C)tendency to continue to support a failing course of action.
D)preferred method for interacting with and responding to a learning material.

Question 40

_____ is the tendency to choose options that entail fewer risks and less uncertainty.

A)Risk monitoring
B)Risk aversion
C)Risk rationalization
D)Risk optimization

Question 41

One social decision scheme is the _____, in which a group supports whatever position is taken by most of its members.

A)majority-wins rule
B)truth-wins rule
C)two-thirds majority rule
D)first-shift rule

Question 42

_____ is a fast, positive force in decision making that is utilized at a level below consciousness and involves learned patterns of information.

A)Intuition
B)Logical reasoning
C)Imagination
D)Analytic thinking

Question 43

To develop the left half of the brain, one can:

A)ask what-if questions.
B)engage in play.
C)follow one's intuition.
D)set goals to complete a task.

Question 44

In the context of social decision schemes, the _____ predicts that the correct decision will emerge as an increasing number of members realize its appropriateness.

A)majority-wins rule
B)truth-wins rule
C)two-thirds majority rule
D)first-shift rule

Question 45

Which of the following statements is true of group decision making?

A)There is no pressure within a group to conform and fit in.
B)It brings more knowledge through the pooling of group member resources.
C)It requires considerably less amount of time as compared with individual decision making.
D)There is a decreased acceptance of and commitment to the decision made by a group.

Question 46

_____ are simple rules used to determine final group decisions.

A)Heuristics
B)Social decision schemes
C)Nominal group techniques
D)Mindguards

Question 47

_____ is a positive force that occurs in groups when group members are stimulated to produce new solutions to problems through the process of mutual influence and encouragement within the group.

A)Creativity
B)Synergy
C)Intuition
D)Cognitive consonance

Question 48

Identify an assumption of intuition involved in decision making.

A)It is slow.
B)It is used at a level below consciousness.
C)It is an extension of logical reasoning.
D)It is mainly controlled by the left hemisphere of the brain.

Question 49

The left half of the brain is the center for _____.

A)creative functions
B)planning
C)intuition
D)left-hand control

Question 50

According to research findings, _____.

A)men are more risk averse than women
B)more experienced managers are more risk averse than younger managers
C)successful managers are more risk averse than unsuccessful managers
D)younger managers take fewer risks than more experienced managers

Question 51

An assumption of intuition involved in the decision-making process is that:

A)it is slow.
B)it focuses on rational thinking.
C)it is used at a level above consciousness.
D)it appears to be a positive force in decision making.

Question 52

In the context of creativity, _____ occurs when an individual senses an insight for solving a problem.

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

Question 53

Which of the following diminishes creativity in decision making?

A)Trying to be logical
B)Divergent thinking
C)Increasing intrinsic motivation
D)Analyzing ambiguity

Question 54

_____ is a process influenced by individual and organizational factors that results in the production of novel and useful ideas, products, or both.

A)Creativity
B)Rationalization
C)Receptivity
D)Objectification

Question 55

In the context of decision making, _____ has been described as the ability to know or recognize quickly and readily the possibilities of a situation.

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

Question 56

Research indicates that _____.

A)women are more risk averse than men
B)younger managers are more risk averse than more experienced managers
C)successful managers are more risk averse than unsuccessful managers
D)men are more risk averse than women

Question 57

Which of the following techniques can be used to develop the right half of the brain?

A)Setting goals for completing tasks.
B)Solving logical reasoning questions.
C)Asking what-if questions.
D)Working on number skills.

Question 58

The right half of the brain is the center for _____.

A)creativity
B)logic
C)language
D)planning

Question 59

In the context of decision making, which of the following is an assumption of intuition?

A)It involves learned patterns of information.
B)It is used at a level above consciousness.
C)It is a negative force in decision making.
D)It is slow.

Question 60

In the context of creativity, _____ is a process of reflective thought and is often conducted subconsciously.

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

Question 61

Managers seldom use their intuition to make decisions.

Question 62

According to research results, individuals with higher self-esteem and those who are given an opportunity to affirm an important value are more likely to deescalate.

Question 63

To guard against groupthink, devil's advocacy or dialectical inquiry would be effective.

Question 64

Participative decision making is associated with:

A)the ability to know the possibilities of a situation.
B)less creativity among employees.
C)reduced productivity.
D)employee job satisfaction.

Question 65

Excessive optimism is one of the reasons for escalation of commitment.

Question 66

Research indicates that men are more risk averse than women and that younger, less experienced managers are more risk averse than older managers.

Question 67

By using the Z problem-solving model, managers can focus only on their preferences and avoid their nonpreferences to make decisions effectively.

Question 68

Which of the following is true of quality circles?

A)They extend participative decision making into teams.
B)They are included in total quality management.
C)They are empowered to act on their own recommendations.
D)They are generated from the top down.

Question 69

Recent research examining the effects of cultural diversity on decision making has found that when individuals in a group are racially dissimilar, _____.

A)they are reluctant to engage in open information sharing
B)they discourage dissenting perspectives
C)they arrive at better decisions than racially similar groups
D)they tend to engage in smaller debate in decision making than racially similar groups.

Question 70

Which of the following encourages groupthink?

A)Low group cohesiveness
B)Diversity among group members
C)Domination of the group by one forceful member
D)Time constraints

Question 71

Those prone to making risky decisions are more likely to take the lead in group discussions.

Question 72

A _____ is a small group of employees who work voluntarily on company time, typically one hour per week, to address work-related problems such as quality control, cost reduction, production planning and techniques, and even product design.

A)quality circle
B)quality team
C)social group
D)self-managed team

Question 73

Which of the following is a symptom of groupthink?

A)Illusions of group immorality
B)Illusions of vulnerability
C)Low group cohesiveness
D)Peer pressure

Question 74

The organizational foundations include a _____ that is essential because of the uncertainty within an organization.

A)nominal group technique
B)social organizational scheme
C)supportive organizational culture
D)social comparison approach

Question 75

According to the Z problem-solving model, Intuiting is used to gather information about a problem.

Question 76

Incubation means seeking out new experiences and opportunities to learn because creativity grows from a base of knowledge.

Question 77

In the creative process, illumination involves determining if a solution or idea is valid.

Question 78

The disadvantages of group decision making include:

A)reduced commitment to a decision.
B)reduced understanding of a decision.
C)domination of a group by one forceful member.
D)convoluted knowledge due to the pooling of group members.

Question 79

Which of the following is true of quality teams?

A)They emphasize the generation of ideas.
B)They operate in parallel fashion to an organization's structure.
C)They extend participative decision making into teams.
D)They make data-based decisions about improving product and service quality.

Question 80

Which of the following is an individual prerequisite for participative decision making?

A)The capability to prevent critical analysis of decisions
B)The motivation to act autonomously
C)The tendency to protect a group from negative feedback
D)The ability to become psychologically detached in participative activities