Deck 10: Decision Making by Individuals and Groups

Question 1

All of the following are characteristics of a nonprogrammed decision situation except:

A)complex
B)multivariate
C)unstructured
D)new

Answer 1

B

Question 2

The model of bounded rationality was first proposed by:

A)Victor Vroom
B)Phillip Yetton
C)Herbert Simon
D)Carl Jung

Answer 2

C

Question 3

The final step in the decision-making process is:

A)implementation
B)exploring alternatives
C)feedback and monitoring
D)selecting a course of action

Answer 3

C

Question 4

A decision situation where some information is known and probabilities can be assigned to alternative solutions reflects a decision made under:

A)uncertainty
B)randomness
C)certainty
D)risk

Question 5

Your text discusses the difficult decisions frequently confronting the Blue Man Group. Many of these decisions would be classified as programmable and nonprogrammable. However, the feature states they have consistently made effective decisions as reflected by their continuous success. Which of the following is the best explanation for the Blue Man Group's good decision making?

A)a good fit between the type of decision and choice of decision-making model
B)the consistent use of the bounded rationality model of decision making
C)they understand the skill set of the founders and let each founder make decisions in areas where they have expertise
D)they keep true to a vision and make sound business decisions in line with that vision

Question 6

Under the bounded rationality model of problem solving and decision making:

A)managers follow statistical rules for decision making
B)managers critically view the world as complex and multivariate
C)managers generate a wide array of decision options and select the one that meets all decision criteria
D)managers are comfortable making decisions without identifying all options

Question 7

Which of the following is an example of a programmed decision situation?

A)arranging financing for constructing a new $50 million office building
B)reorder of raw materials from an established supplier
C)purchase of a new mainframe computer
D)a firm's purchase consideration of a parts manufacturer

Question 8

An important element of the bounded rationality model is:

A)certainty
B)satisficing
C)unlimited information search
D)optimizing

Question 9

The cognitive style that exhibits a preference for data and a detailed, objective approach to decision making is:

A)sensing/feeling
B)thinking/feeling
C)intuiting/thinking
D)sensing/thinking

Question 10

Step one of the Z model corresponds to the _____ cognitive style.

A)sensing/thinking
B)intuiting/feeling
C)sensing/intuiting
D)sensing/feeling

Question 11

An effective decision is timely, acceptable to the individuals affected by it, and:

A)efficient
B)achievable
C)specific
D)meets the desired objective

Question 12

Heuristics are:

A)algorithms based on complex decision making
B)complex decision rules used in complex situations
C)shortcuts in decision making that save mental activity
D)mathematical approaches to decision making

Question 13

Which decision-making model is the most realistic in portraying the managerial decision process?

A)rational
B)garbage can
C)bounded rationality
D)incremental

Question 14

The rational model of decision making assumes:

A)preferences of the decision maker are inconsistent
B)that all possible alternatives can't be known to decision makers
C)that outcomes can't be optimized
D)that the decision maker can calculate the probability of success for alternatives

Question 15

The fourth step in the Z model of problem solving is:

A)data collection
B)problem diagnosis
C)impact analysis
D)objective analysis of alternatives

Question 16

The first step in the Z problem solving model, which is to examine facts and detail, uses which of the following to gather information about the problem?

A)feeling
B)sensing
C)intuiting
D)thinking

Question 17

The initial step in a problem solving, decision situation is:

A)problem recognition
B)data analysis
C)generation of alternatives
D)feedback

Question 18

Intuition would be a major part of the input for a manager making what kind of decision?

A)programmed
B)rational
C)breakeven point
D)nonprogrammed

Question 19

In the rational model, the decision maker strives to:

A)satisfice
B)optimize
C)select the alternative agreeable to the majority
D)apply a heuristic

Question 20

You are starting your senior year of college and look forward to graduation in May. An important task at hand is selecting courses for your final year of study. All but two of your courses are electives. Your course selections will most likely be made based on the:

A)garbage can model
B)irrational model
C)random model
D)bounded rationality model

Question 21

Agor, a researcher on intuition, suggests all of the following can be techniques used by managers to tap into their intuition except:

A)practicing relaxation techniques
B)using images to guide the mind
C)taking creative pauses before making a decision
D)using decision heuristics and satisficing

Question 22

Continuing to support a failing course of action is known as:

A)the theory of sunk costs
B)stubbornness
C)conflicted reason theory
D)escalation of commitment

Question 23

Research indicates that women are:

A)less averse to risk than men
B)more averse to risk than men
C)the same as men with respect to risk aversion
D)less inclined to commit resources to a losing course of action than men

Question 24

A recent review of the research on intuition suggests that:

A)intuition can be taught
B)it does not appear to be related to ethical decision making
C)although intuition cannot be taught, managers can be trained to rely more fully on the prompting of their intuition
D)the satisfaction of decisions is not related to how the decision feels intuitively

Question 25

In the consideration of whether the right or the left part of the brain should be utilized in decision making, the ideal situation is to be:

A)right brain dominant
B)left brain dominant
C)brain-neutralized
D)brain-lateralized

Question 26

An organization could increase creativity by doing which of the following?

A)utilizing modern work stations
B)eliminate office walls and cubicles
C)emphasize competition for creative ideas
D)providing specific or identifiable rewards

Question 27

Research has indicated that creative performance is highest when:

A)flexible structures are implemented
B)there is a supportive environment
C)individuals are part of a team with diverse skills
D)there is a match, or fit, between the individual and organizational influences on creativity

Question 28

Research on the impact of moods on tasks that involve considerable cognitive demands suggests:

A)Positive moods result in better performance
B)Negative moods result in better performance
C)Mood didn't really make a difference
D)There was a curvilinear relationship between mood and tasks requiring high cognitive demands

Question 29

All of the following are examples of escalation of commitment except:

A)price wars between airlines
B)NASA's International Space Station
C)British Airways and Air France's Concorde operations
D)Blue Man Group's history of making decisions that involve exiting businesses and offers to sell credit cards and soft drinks

Question 30

The research by Henry Mintzberg regarding intuition and managerial roles suggests that:

A)managers rarely use intuition
B)in most cases managers use a systematic step-by-step approach to decision making
C)managers make judgments based on hunches
D)intuition has not been shown to be very effective as an antidote to over analysis

Question 31

Which of the following is generally NOT associated with creative abilities or creativity?

A)breadth of interests
B)self-confidence
C)concern for failure
D)intellectual and artistic values

Question 32

Responsive creativity is:

A)discovering problems because you want to be creative
B)discovering problems because you are expected to by the organization
C)responding to problems presented to you because you want to be creative
D)responding to a problem that is presented to you by others because it is part of your job

Question 33

An organization should do or provide all of the following except _____ if it wants to encourage employee creativity.

A)close supervision
B)participative decision making
C)peer support
D)flexible organizational structure

Question 34

Which of the following is NOT one of the explanations for the escalation of commitment?

A)cognitive dissonance theory
B)optimism
C)illusion of control
D)high or low self-monitoring

Question 35

An incorrect assumption about the use of intuition in making decisions is that:

A)it is seldom a positive force
B)it is fast or leads to quick decisions
C)it involves learned patterns of information
D)it is an elusive concept and one with many definitions

Question 36

Searching for the "right" answer and avoiding problems outside of our own expertise would be considered what type of problem for creativity?

A)mental locks
B)cognitive structure
C)structured thinking
D)inflexible maps

Question 37

Which of the following best represents the three reasons why managers may hang on to a losing course of action or escalate their commitment?

A)internal locus of control, cognitive dissonance, and overly optimistic
B)cognitive dissonance, overly optimistic, and illusion of control
C)external locus of control, overly optimistic, and cognitive dissonance
D)internal locus of control, cognitive dissonance, and illusion of control

Question 38

The stage of creativity where one engages in other activities while the mind considers the problem is:

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

Question 39

The right side of the brain is best used for which type of activity or decision?

A)flowchart work processes
B)develop visions and strategic plans
C)day-to-day operations
D)tax preparations

Question 40

Which of the following is an effective way of managing decisions in order to avoid escalation of commitment?

A)Don't split the responsibility for decisions about projects.
B)Don't reward people who admit to poor decisions.
C)Don't allow graceful exits from poor decisions
D)Have groups rather than individuals make initial investment decisions.

Question 41

A group approach to decision making tends to be appropriate when:

A)the problem is highly structured
B)technical accuracy is not important
C)employees may be indifferent to the outcome
D)employees may be in conflict over preferred solution

Question 42

As a project group leader, you have recognized the benefits of conflict and some disagreement among project members in solving difficult problems. Accordingly, you are likely to use:

A)nominal group techniques
B)brainstorming
C)devil's advocacy
D)dialectical inquiry

Question 43

An antidote for groupthink in self-managed teams is:

A)brainstorming
B)the use of nominal groups
C)welcoming dissent
D)the Delphi technique

Question 44

A shortcoming or liability of the group process in decision making is:

A)too many alternatives may be proposed
B)little acceptance of results
C)excess knowledge is brought to bear on the problem
D)too much time spent making the decision

Question 45

A review of the decision situation in the Challenger incident identified which two variables as being important to the groupthink phenomena?

A)decision consequence and leadership style
B)leadership style and time constraints
C)group insulation and time constraints
D)decision consequence and time constraints

Question 46

A deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressures defines:

A)group polarization
B)groupthink
C)the risky shift
D)the recency effect

Question 47

When the group decision involves a matter of preference or opinion, the most appropriate social decision scheme is:

A)the truth-wins rule
B)the two-thirds majority rule
C)the majority-wins rule
D)the consensus rule

Question 48

A good group decision approach when an objective is to maximize the number of alternatives is:

A)brainstorming
B)dialectical inquiry
C)the Delphi technique
D)nominal grouping

Question 49

An approach to minimize groupthink is to:

A)manipulate group members in order to increase peer pressure
B)encourage rationalization
C)denigrate the opposition
D)re-examine the preferred solution even if consensus has been reached

Question 50

Participative decision making tends to be associated with:

A)interpersonal rivalry within a group
B)less creativity among employees
C)rapid decision making
D)higher levels of employee job satisfaction

Question 51

High cohesiveness, directive leadership, and high stress are antecedent conditions for:

A)a low quality group decision
B)group polarization
C)groupthink
D)satisficing

Question 52

Group polarization results in:

A)group members moving from extreme attitudes toward more moderate attitudes
B)group members driving decisions toward consensus
C)the tendency for group discussion to produce shifts toward more extreme attitudes among members
D)the tendency for group members who were initially more cautious to become significantly less cautious

Question 53

Which of the following would NOT be considered a symptom of groupthink?

A)illusion of invulnerability
B)rationalization
C)illusion of unanimity
D)high conflict

Question 54

The social comparison approach and persuasive arguments view have both been used to explain:

A)groupthink
B)group polarization
C)cognitive dissonance
D)bounded rationality

Question 55

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

A)they engage in less open information sharing
B)they engage in behavior that discourages dissenting perspectives
C)they arrive at better decisions than racially similar groups
D)they tend to become less committed to decisions

Question 56

Which of the following is a characteristic of quality teams?

A)They provide advice to managers who still retain decision-making authority.
B)They operate in parallel fashion to the organization's structure.
C)They emphasize the generation of ideas.
D)They make data-based decisions about improving product and service quality.

Question 57

A technique that is valuable in its ability to generate a number of independent judgments without the requirement of a face-to-face meeting is:

A)the nominal group technique
B)dialectical inquiry
C)brainstorming
D)the Delphi technique

Question 58

A structured approach to decision making that focuses on generating alternatives silently, prevents criticism of alternatives, and uses a voting process to identify group choices is:

A)the Delphi technique
B)dialectical inquiry
C)the nominal group
D)devil's advocacy

Question 59

The majority-wins rule in group decision making is an example of:

A)a group heuristic
B)a social decision scheme
C)groupthink
D)the nominal group technique

Question 60

A key organizational requirement for participation in decision making includes:

A)an instrumental reward system
B)clear group goals
C)supportive culture
D)people with individual motivation

Question 61

According to Henry Mintzberg, managers are predisposed to use a more systematic approach to decision making that is consistent with the rational model.

Question 62

The tendency to continue to support a failing course of action is known as consistency theory.

Question 63

Women tend to be more averse to risk taking, while men are prone to escalation of commitment.

Question 64

Research suggests that individuals may be more prone to escalation of commitment than groups.

Question 65

Group decision making may be slow, but it usually produces good decisions.

Question 66

Given the assumptions of the rational model, it is unrealistic.

Question 67

Which of the following is NOT considered to be an individual prerequisite for participation and empowerment?

A)capability for psychological involvement
B)motivation to act autonomously
C)reliance on external rewards
D)ability to see relevance for one's own well being

Question 68

Problem finding and recognition is an important early step in decision making.

Question 69

A review of the research on intuition suggests that while intuition cannot be taught, managers can be trained to rely more fully on the prompting of their intuition.

Question 70

Heuristics are shortcuts in decision making that save mental activity.

Question 71

Managers should acknowledge that some individuals do not respond well to participative decision making.

Question 72

Creativity is not widespread in the population but it can be easily learned through systematic training.

Question 73

Research shows that creativity is something you either have or you do not.

Question 74

Formulating a set of decision rules for making inventory re-ordering decisions is an example of programmed decision making.

Question 75

The closer a project is to completion the more likely escalation of commitment is to occur.

Question 76

In a decisional situation where the decision maker can calculate the probability of success for each alternative, conditions are uncertain.

Question 77

A recent research study found a strong link between cognitive moral development and intuition.

Question 78

Satisficing is the practice of adopting an acceptable solution.

Question 79

After giving intuition tests to more than 10,000 executives, Agor has concluded that in most cases higher management positions were not held by individuals with higher levels of intuition.

Question 80

A person with a sensing/thinking cognitive style would make a good cost accountant.