Deck 6: Managerial Decision Making

Question 1

Most people underestimate their ability to predict uncertain outcomes.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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 6

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

Question 7

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 8

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

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

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

Question 14

When considering decisions,the mind often gives disproportionate weight to the last information it receives.

Question 15

Evidence shows that people who make poor decisions under the influence of strong emotions tend to continue that behavior in the future.

Question 16

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 17

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

Question 18

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 19

Managers will frequently look for new information that contradicts their instincts or original point of view.

Question 20

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

Question 21

As a top manager,Joanna works with others within her team every day in making important corporate decisions.Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time.This approach is referred to as:

A)groupthink.
B)devil's advocacy.
C)point-counterpoint.
D)escalating commitment.
E)brainstorming.

Question 22

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 23

Examples of nonprogrammed decisions would include the decision to:

A)reorder supplies.
B)develop a new product or service.
C)perform routine maintenance on one of the machines in manufacturing.
D)terminate an employee for violation of company rules.
E)fill a position.

Question 24

Melissa is a manager at InStylez Clothing.Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions.Melissa's situation is most consistent with which of the following concepts?

A)Bounded rationality
B)The classical model of decision making
C)Satisficing
D)Brainstorming
E)Scientific management

Question 25

_____ decisions are associated with decision rules.

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

Question 26

The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as:

A)technological decisions.
B)collective intuition.
C)decision learning.
D)team delay.
E)escalating commitment.

Question 27

Finance managers at Big Bend Inc.made a financial blunder when they solely looked at the previous year's sales to estimate sales for the coming year.Of which management bias is this an example?

A)Being influenced by emotions
B)Perpetuating the status quo
C)Seeing what you want to see
D)Justifying past actions
E)Being influenced by initial impressions

Question 28

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

A)normative
B)administrative
C)descriptive
D)classical
E)political

Question 29

Managers are considered to have a(n)_____ style when they prefer to consider complex solutions based on as much data as they can gather.

A)behavioral
B)conceptual
C)directive
D)analytical
E)classical

Question 30

Which style is used by people who prefer simple,clear-cut solutions to problems?

A)Behavioral
B)Conceptual
C)Directive
D)Analytical
E)Classical

Question 31

All of the following are cognitive biases that can affect manager's judgment,except:

A)being influenced by initial impressions.
B)justifying past decisions.
C)seeing what you don't want to see.
D)perpetuating the status quo.
E)overconfidence.

Question 32

Bobby,a product manager,wants to increase the market share of his product.He is unsure about how to go about it,not knowing for sure how costs,price,the competition,and the quality of his product will interact to influence market share.Bobby is operating under a condition of:

A)risk.
B)ambiguity.
C)certainty.
D)uncertainty.
E)brainstorming.

Question 33

When managers base decisions on what has worked in the past and fail to explore new options,they are:

A)perpetuating the status quo.
B)being influenced by emotions.
C)being overconfident.
D)justifying past actions.
E)seeing what they want to see.

Question 34

A(n)_____ is a choice made from available alternatives.

Question 35

Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making?

A)Brainstorming
B)Groupthink
C)Point-counterpoint
D)Brainwriting
E)Devil's advocate

Question 36

Shirley works in the human resource department at Turtle Shells,Inc.She believes she is seeing an increase in drinking problems among the workforce.She thinks she needs to investigate further.She is at what stage of the managerial decision making process?

A)Diagnosis and analysis of causes
B)Development of alternatives
C)Recognition of decision requirement
D)Evaluation and feedback
E)Selection of desired alternatives

Question 37

Managers with a(n)_____ style may make decisions that help others achieve their goals.

A)behavioral
B)conceptual
C)directive
D)analytical
E)classical

Question 38

During the fallout of the global financial crisis of the late 2000s,finance companies had to make important decisions in a highly ambiguous environment.The decision to buyout failed banks could best be described as what type of decision?

A)Bounded
B)Programmed
C)Conventional
D)Wicked decision problem
E)Irrational decision

Question 39

Genna is collecting data on how well the organization has done since their new strategy was implemented.She is in what stage of the managerial decision making process?

A)The generation of alternatives
B)Implementation of the chosen alternative
C)Evaluation and feedback
D)Recognition of the decision requirement
E)Selection of desired alternative

Question 40

Riley is a manager at the Tinker Tools.She is expected to make decisions that are in the organization's best economic interests.Her decisions should be based on which of the following models?

A)The administrative model of decision making
B)The garbage can model of decision making
C)The scientific management model of decision making
D)The classical model of decision making
E)The humanistic model of decision making

Question 41

_____ is the willingness to undertake risk with the opportunity of gaining an increased payoff.

Question 42

_____ decisions are made in response to situations that are unique,are poorly defined and largely unstructured,and have important consequences for the organization.

Question 43

People with a(n)_____ style rely on information from both people and systems and like to solve problems creatively.

Question 44

List the three guidelines of innovative group decision-making in today's businesses.

Question 45

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

Question 46

_____ decision making involves a commitment to making more informed and intelligent decisions based on the best available facts and evidence.

Question 47

_____ means that all the information the decision-maker needs is fully available.

Question 48

In the _____,managers invest time in reviewing the results of decisions and learn from them.

Question 49

The _____ model of decision making describes how managers actually make decisions in difficult situations,such as those characterized by nonprogrammed decision,uncertainty,and ambiguity.

Question 50

List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes.

Question 51

The _____ style is often the style adopted by managers having a deep concern for others as individuals.

Question 52

People with a(n)_____ style usually are concerned with the personal development of others and may make decisions that help others achieve their goals.

Question 53

______ means that decision-makers choose the first solution alternative that satisfies minimal decision criteria.

Question 54

_____ exists when managers see potential of enhancing performance beyond current levels.

Question 55

Differences among people with respect to how they perceive problems and make decisions is called _____.

Question 56

The step in the decision making process in which managers analyze the underlying causal factors associated with the situation is called _____.

Question 57

_____ is important because decision making is a continuous,never ending process.

Question 58

A(n)_____ is assigned the role of challenging the assumptions and assertions made by the group.

Question 59

_____ means that the goals to be achieved or the problem to be solved is unclear,alternatives are difficult to define,and information about outcomes is unavailable.

Question 60

Managers who use a(n)_____ style are efficient and rational and prefer to rely on existing rules or procedures for making decisions.

Question 61

Compare decision conditions of certainty,risk,uncertainty,and ambiguity.

Question 62

Briefly describe the four major personal decision styles.

Question 63

Explain the difference between programmed and nonprogrammed decisions and give an example of each.

Question 64

What are the six steps in the managerial decision making process?

Question 65

Briefly describe the assumptions underlying the classical model of decision making.