Deck 8: Fundamentals of Decision Making

Question 1

Intel's CEO illustrates the planning and administration competency in the comment: "Occasionally it is more important to get the decision made than it is to collect more data."

Answer 1

False

Question 2

Adaptive decisions are choices made in response to fairly common and routine problems.

Answer 2

False

Question 3

There are seven phases in the rational decision making model.

Answer 3

True

Question 4

In the Preview Case, Craig Barrett of Intel considers three big steps in his decision-making process which include all of the following except __________.

A) free discussion among participants
B) determination of risks
C) clear decision from the discussion
D) everyone must "buy in"

Question 5

Before Craig Barrett, CEO of Intel finalizes a decision, he finds it important to __________.

A) understand all of the data
B) collect any missing data
C) make sure there are no major blind spots
D) All of the above are steps in Barrett's decision-making process.

Question 6

Nancy Barnes decided to become a flight attendant when she graduates from college in two years. She liked the regular hours and substantial benefits. Recently, the news has reported that benefits will no longer be offered to flight attendants, and that they will have to work standby hours. Barnes decides to become a teacher. Barnes has changed her decision in part because __________.

A) the conditions under which she made her initial decision changed
B) she is certain that the employment conditions will not improve
C) she did not have information about the job when she made her initial decision
D) she did not know how to make decisions

Question 7

All of the following are listed in the text as types of crises that may be sources of uncertainty and risk except __________.

A) criminal crises
B) economic crises
C) management crises
D) reputation crises

Question 8

Hyundai experienced a business crisis in 1998 as a result of its __________.

A) import restrictions
B) product quality
C) harassment scandals
D) unattractive styling

Question 9

In responding to Hyundai's business crisis, CEO Finbarr O'Neill identified __________ as the company's biggest problem.

A) worried customers
B) lack of profits
C) dealers shutting down
D) none of the above

Question 10

In general, the decision maker should begin by defining the problem and then ________.

A) compare it to existing problems
B) move on to generating and evaluating alternative solutions
C) collect all available information
D) immediately choose a satisfactory solution

Question 11

VisaNet engages in a continuous effort to __________.

A) reduce system down time
B) increase reliability to 100%
C) meet new demands and threats
D) create satisfied customers

Question 12

Visa's processing system requires enough capacity to handle __________ merchant and bank transactions per day.

A) 2 million
B) 20 million
C) 50 million
D) 100 million

Question 13

__________ involves individuals or organizations who change the bases for industry competition or change the economic efficiency of an industry.

A) Convergence strategy
B) Adaptive decision making
C) Radical innovation
D) Transformational leadership

Question 14

__________ is an example of radical innovation.

A) Akami Technologies
B) AmeriScan
C) Phillips Consumer Electronics
D) Xerox Corporation

Question 15

Microsoft has the goal of becoming the world's leading developer of computer software applications. This is an example of a(n) __________ goal.

A) operational
B) general
C) tactical
D) long-term

Question 16

Microsoft has the goal of increasing sales of its Windows 2000 software packages by 40% over the next three years. This is an example of a(n) _________ goal.

A) operational
B) general
C) strategic
D) long-term

Question 17

After individuals or teams have defined a problem, they __________.

A) are stuck unless they have complete information
B) can move directly to a solution
C) have completed the rational decision-making model
D) can set goals that are intended to lead its elimination

Question 18

John Mayberry, CEO of Dofasco, says he has placed decision-making accountability right where it belongs: at the __________ level.

A) individual
B) executive
C) manager
D) team

Question 19

Dofasco's decision making process has resulted in a team decision to install new steel furnaces that do all of the following except __________.

A) consume less energy
B) reduce air pollution
C) produce higher volumes
D) produce higher quality

Question 20

Amy Ingram works for a large toy manufacturing company. Her first supervisor, Alice Fredrich, was unfair, unsupportive, and often used Amy's ideas without giving her credit. Amy's current supervisor, Libby Valentine, is supportive and friendly, but Amy is unwilling to trust Valentine. Amy appears to be applying the __________ bias.

A) concrete information
B) abstract information
C) intrasender role
D) law of experience

Question 21

A(n) __________ decision-making process is most likely to occur when decisions involve powerful stakeholders, disagreement over goals, and the lack of search for alternative solutions.

A) rational
B) political
C) irrational
D) adaptive

Question 22

Don Carty, CEO of American Airlines, lost his job as an outcome of miscommunications related to all of the following problem areas except __________.

A) full public disclosure of the seriousness of the company's financial condition
B) full disclosure to unions about lucrative executive bonuses and protections
C) offering to resign if the unions would take pay cuts
D) threatening bankruptcy if unions would not take pay cuts

Question 23

__________ was taking place in the failed political process at American Airlines?

A) Satisficing
B) Co-optation
C) Scapegoating
D) Bounded rationality

Question 24

Compare and contrast certainty, uncertainty, and risk.

Question 25

Name four of the seven phases in the rational decision-making model.

Question 26

Describe the parts of the bounded rationality model.