Deck 6: Managerial Decision Making

Question 1

The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes.

Answer 1

True

Question 2

Normative means it defines how a decision maker should make decisions.

Answer 2

True

Question 3

Goals often are vague,conflicting,and lack consensus among managers,according to the administrative model of decision making.

Answer 3

True

Question 4

The administrative model is considered to be normative.

Question 5

Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

Question 6

The administrative model of decision making describes how managers actually make decisions in difficult situations.

Question 7

WorldCom,a telecommunications company,decided to buy Skytel in 1999.This would be considered a programmed decision.

Question 8

Decision-making must not be done amid ever-changing factors,unclear information,and conflicting points of view.

Question 9

The classical decision making model assumes that the decision-maker is rational,and makes the optimal decision each time.

Question 10

Two classifications of management decisions are programmed and structured.

Question 11

A situation where the goals to be achieved or the problem to be solved is unclear,alternatives are difficult to define,and information about outcomes is unavailable refers to ambiguity.

Question 12

Gerald's Groceries and Marty's Market decided to merge their operations.This would be considered a nonprogrammed decision.

Question 13

Two employees in Stacey's department quit which is normal for her department.She is faced with the decision to fill these positions.This would be considered a nonprogrammed decision.

Question 14

A decision is a choice made from available alternatives.

Question 15

Decision making is easy,given that everybody makes decisions everyday.

Question 16

Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions.

Question 17

Uncertainty means that a decision has clear-cut goals,and that good information is available,but the future outcomes associated with each alternative are subject to chance.

Question 18

Uncertainty is by far the most difficult decision situation.

Question 19

Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.

Question 20

The political model represents an "ideal" model of decision making that is often unattainable by real people in real organizations.

Question 21

According to the New Manager Self-Test,linear means to use primarily intuition to make decisions; nonlinear means using logical rationality to make decisions.

Question 22

For a non-programmed decision,feasible alternatives are hard to identify and in fact are already available within the organization's rules and procedures.

Question 23

Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought.

Question 24

Nonprogrammed decisions require six steps,however,programmed decisions being structured and well understood require only one step.

Question 25

Feedback provides decision-makers with information that can precipitate a new decision cycle.

Question 26

Managers confront a decision requirement in the form of either a problem or an opportunity.

Question 27

Once the problem or opportunity has been recognized and analyzed,the decision-maker should implement the alternative.

Question 28

For decisions made under conditions of low uncertainty,managers may develop only one or two custom solutions that will satisfice for handling the problem.

Question 29

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.

Question 30

The formulation stage involves the use of managerial,administrative,and persuasive abilities to ensure that the chosen alternative is carried out.

Question 31

According to the administrative model of decision making,managers' searches for alternatives are limited because of human,information,and resource constraints.

Question 32

The best alternative is the one in which the solution best fits the overall goals and values of the organization and achieves the desired results using the fewest resources.

Question 33

In the implementation stage,decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

Question 34

The process of forming alliances among managers is called coalition building.

Question 35

Step one in the managerial decision-making process is recognition of decision requirement.

Question 36

The political model consists of vague problems and goals,limited information about alternatives and their outcomes,and a satisficing choice for resolving problems using intuition.

Question 37

According to both research and managerial experience,intuitive decisions are best and always work out.

Question 38

Feedback is the part of monitoring that assesses whether a new decision needs to be made.

Question 39

The administrative model closely resembles the real environment in which most managers and decision makers operate.

Question 40

Managers need to take a balanced approach for effective decision making.

Question 41

Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager.

Question 42

Managers with an analytical decision style like to consider complex solutions based on as much data as they can gather.

Question 43

In the real world,few decisions are certain.

Question 44

The most effective managers are consistent in using their own decision style rather than shifting among styles.

Question 45

Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making.

Question 46

The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.

Question 47

Brainwriting refers to the tendency of people in groups to suppress contrary opinions.

Question 48

Most people underestimate their ability to predict uncertain outcomes.

Question 49

People who prefer simple,clear-cut solutions to problems use the directive style.

Question 50

Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view.

Question 51

A highly ambiguous situation can create what is sometimes called a wicked decision problem.

Question 52

Devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group member's assumptions.

Question 53

The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather.

Question 54

Interestingly,major decisions in the business world are commonly made by an individual.

Question 55

The rapid pace of today's business environment requires only top management to make decisions and have the information,skills,and freedom they need to respond immediately to problems and questions.

Question 56

According to the classical model of decision making,managers' searches for alternatives are limited because of human,information,and resource constraints.

Question 57

Justifying past decisions is a common bias of managers.

Question 58

Decision making involves effort both before and after the actual choice.

Question 59

Making a choice is the most significant part of the decision-making process.

Question 60

The approach that managers use to make decisions usually falls into one of three types - the classical model,the administrative model,and the political model.

Question 61

Managers are often referred to as

A) decision makers.
B) peace makers.
C) conflict creators.
D) unnecessary layer of employees.
E) profit suppressor.

Question 62

Programmed decisions are made in response to ____ organizational problems.

A) unusual
B) recurring
C) significant
D) minor
E) unique

Question 63

Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style.

Question 64

If your instructor has an attendance policy,she/he is using a(n)

A) programmed decision.
B) unique approach.
C) condition of ambiguity.
D) nonprogrammed decision.
E) none of these.

Question 65

Choosing between a differentiation strategy and an overall cost leadership strategy is an example of

A) a plan.
B) an objective.
C) an alternative.
D) a decision.
E) a strategy.

Question 66

____ decisions are associated with decision rules.

A) Nonprogrammed
B) Unique
C) Programmed
D) Ill-structured
E) Novel

Question 67

Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension.Colleen,the manager,has just decided to suspend one of her shift employees for violating this policy.This is an example of

A) a programmed decision.
B) a nonprogrammed decision.
C) an insignificant decision.
D) poor management.
E) personal grudge.

Question 68

The classical model of decision-making works best in organizations that are made up of groups with diverse interests,goals,and values.

Question 69

Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.

Question 70

Nordstrom Department Store's "No questions asked - Return's Policy" is an example of a(n)

A) programmed decision.
B) nonprogrammed decision.
C) novel decision.
D) poor management.
E) unstructured decision.

Question 71

One area where speed is not particularly crucial is when an organization faces a crisis.

Question 72

Mark,a production manager at Kaylie's Kookware,recently chose to schedule his workers to work overtime.His alternative was to hire more workers.He is now monitoring the consequences of his choice.This is an example of

A) planning.
B) decision-making.
C) organizing.
D) controlling.
E) leading.

Question 73

Groupthink refers to the tendency of people in groups to suppress contrary opinions.

Question 74

Good intuitive decision making is based on an ability to recognize patterns at lightning speed.

Question 75

When managers look for information that supports their existing instinct or point of view,avoiding information that contradicts it,they are justifying past decisions.

Question 76

Managers should be asking questions such as "What is the urgency of the problem?" during the development of alternatives stage of managerial decision-making.

Question 77

____ is a vital part of good management because decisions determine how the organization solves its problems,allocates resources,and accomplishes its goals.

A) Organizing
B) Competitive visioning
C) Proper alignment
D) Good decision making
E) Leadership

Question 78

Which of the following is a choice made from available alternatives?

A) Decision
B) Plan
C) Goal
D) Tactic
E) Strategy

Question 79

____ refers to the process of identifying problems and then resolving them.

A) Organizing
B) Controlling
C) Decision-making
D) Planning
E) Leading

Question 80

Studies show that electronic brainstorming generates about 20 percent fewer ideas than traditional brainstorming.