Deck 8: Decision Making

Question 1

Which step in the decision-making process involves conveying the decision to those affected by it and getting their commitment to it?

A)analyzing alternatives
B)selecting an alternative
C)implementing the alternative
D)evaluating the decision effectiveness

Answer 1

C

Question 2

Which of the following must be present in order to initiate the decision-making process?

A)established criteria
B)implementation procedures
C)viable alternatives
D)pressure to act

Answer 2

D

Question 3

What is the first step in the decision-making process facing Amanda?

A)analyze alternatives
B)identify decision criteria
C)evaluate decision effectiveness
D)identify the problem

Answer 3

D

Question 4

After identifying a problem,the next step in the decision-making process is ________.

A)identifying decision criteria
B)analyzing alternatives
C)developing alternatives
D)implementing alternatives

Question 5

In allocating weights to the decision criteria,which of the following is helpful to remember?

A)All weights must be the same.
B)Assign a weight to the most important criterion,and then assign weights to the rest against that standard.
C)Every criterion considered,regardless of its importance,must receive some weighting.
D)The most important and least important criteria should be inversely weighted.

Question 6

When a manager finds a disparity between their current situation and a desired situation,they are at which step of the decision-making process?

A)develop alternatives
B)identify decision criteria
C)analyze alternatives
D)identify a problem

Question 7

Decision making in organizations is something that ________.

A)is the responsibility of upper management
B)is a delegated responsibility from manager to subordinate
C)is done by all organization members
D)can only be carried out by managers

Question 8

The final step in the decision-making process is to ________.

A)select the best alternative
B)reevaluate the weightings of the criteria until they indicate the correct outcome
C)evaluate the outcome of the decision
D)implement the alternative to solve the problem

Question 9

Max is planning on going away to college next year and is currently trying to figure out which colleges he should apply to.He would like to major in English Literature at an accredited community college but is also looking for a university that offers financial aid and student housing.In terms of the decision-making process,these represent Max's ________.

A)criteria
B)problems
C)alternatives
D)guidelines

Question 10

In the purchase of a car,the assessment of factors such as speed,fuel efficiency,and price occurs at which step of the decision-making process?

A)identify a problem
B)analyze alternatives
C)identify decision criteria
D)develop alternatives

Question 11

To determine the ________,a manager must identify the factors that are relevant to resolving the problem.

A)effectiveness of the decision
B)number of feasible alternatives
C)desired outcomes
D)decision criteria

Question 12

If all the decision criteria are equally important,weighting the criteria ________.

A)is not necessary
B)produces excellent decisions
C)improves the criteria
D)results in more alternatives

Question 13

Which of the following is important to remember in evaluating decision effectiveness?

A)Ignore criticism concerning the decision-making process.
B)You may have to start the whole decision-making process over again.
C)You should restart the decision-making process only if the decision is less than 50 percent effective.
D)The initial problem may still exist despite the implementation of an effective decision.

Question 14

Which of the following steps in the decision-making process occurs before developing alternatives?

A)allocate weights to criteria
B)select an alternative
C)implement the alternative
D)evaluate decision effectiveness

Question 15

The process of selecting decision criteria is accomplished by ________.

A)massaging the data that will support a given decision
B)determining what is relevant in making the decision
C)examining the differences between potential opportunities
D)identifying a discrepancy between an existing and a desired state of affairs

Question 16

According to the decision-making process,the second step Amanda should take is to ________.

A)analyze alternatives
B)identify decision criteria
C)allocate weights to criteria
D)develop alternatives

Question 17

Which of the following is important in effectively implementing the chosen alternative in the decision-making process?

A)getting upper management support
B)double checking your analysis for potential errors
C)implementing the decision quickly through power and persuasion
D)allowing those impacted by the outcome to participate in the process

Question 18

Amanda,a single parent,is looking for a new job.Considering that she has two school-age children,she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting.In terms of the decision-making process,these represent Amanda's ________.

A)criteria
B)problems
C)alternatives
D)guidelines

Question 19

Which of the following statements is TRUE concerning problem identification?

A)Problems are generally obvious.
B)A symptom and a problem are basically the same.
C)Well-trained managers generally agree on what is considered a problem.
D)The problem must exert some pressure on the manager to act.

Question 20

Colleen needs a vehicle,but she has to decide if the loaned car is worth repairing.She is facing a(n)________,a discrepancy between an existing and a desired state of affairs.

A)alternative
B)problem
C)crisis
D)decision

Question 21

All relevant criteria are equally important in decision-making.

Question 22

Escalation of commitment refers to ________.

A)commitment to a bad decision due to unwillingness to go against the opinion of the majority
B)an increased commitment to a previous decision despite evidence that it may have been wrong
C)the strengthening of commitment to a particular course of action due to greater motivation by others
D)greater commitment to a decision because of one's belief that it is "the right thing to do"

Question 23

Which of the following decisions involves the management function of controlling?

A)How should jobs be designed?
B)How difficult should individual goals be?
C)How do I handle employees who appear to be low in motivation?
D)When is a performance deviation significant?

Question 24

In a short essay,describe and discuss the eight steps in the decision-making process.Give a simple example of a decision to illustrate your answer.

Question 25

The decision-making process begins by identifying decision criteria.

Question 26

A decision is a discrepancy between an existing and a desired state of affairs.

Question 27

Once the alternatives to solving a problem have been identified,the next step in the decision-making process is selecting one of these alternatives.

Question 28

Before talking with an automotive repair person,Colleen needs to assess which factors are relevant to her decision.The car needs new brakes,tires,a muffler,a tune-up,and could also use some bodywork to repair dents and scratches.After consideration,Colleen decides that safety and reliability are relevant.This is which step in the decision-making process?

A)analyze alternatives
B)identify decision criteria
C)develop alternatives
D)select an alternative

Question 29

Which of the following decisions involves the management function of planning?

A)How should jobs be designed?
B)How difficult should individual goals be?
C)How do I handle employees who appear to be low in motivation?
D)When is a performance deviation significant?

Question 30

Arthur authorizes the expenditure of an additional $100,000 for the production of a new product despite mounting concerns that it will be unprofitable.The cost of the new product has already increased far beyond the initial plans and projections.Arthur's continuing support for this project illustrates the phenomenon of ________.

A)confirmation bias
B)escalation of commitment
C)overconfidence bias
D)hindsight bias

Question 31

The final step in the decision-making process is to implement the chosen alternative.

Question 32

Decision making is considered a process rather than an act of choosing among alternatives.

Question 33

When managers make decisions that are rational but limited by their ability to process the information,they are exhibiting the concept of ________.

A)cognitive decision making
B)bounded rationality
C)escalation of commitment
D)intuitive decision making

Question 34

It is possible that at the end of the decision-making process you may be required to start the decision process over again before making the final decision.

Question 35

An increased commitment to a previous decision despite evidence that it may have been wrong is a phenomenon called ________.

A)confirmation bias
B)overconfidence bias
C)hindsight bias
D)escalation of commitment

Question 36

The assumption that managers make consistent,value-maximizing choices within specified constraints is known as which of the following?

A)rational decision making
B)unbounded rationality
C)organized decision making
D)optimal decision making

Question 37

Which of the following decisions involves the management function of organizing?

A)How should jobs be designed?
B)How difficult should individual goals be?
C)When is the right time to stimulate conflict?
D)When is a performance deviation significant?

Question 38

Which of the following is an assumption of rationality?

A)The problem is ambiguous.
B)Multiple goals are to be achieved.
C)Time and cost constraints are known.
D)All alternatives and consequences are known.

Question 39

A decision criterion defines what is important or relevant to resolving a problem.

Question 40

A perfectly rational decision maker would ________.

A)have alternative preferences
B)not consider profit maximization as an objective
C)be objective and logical
D)have to overcome time and cost constraints

Question 41

The type of decision-making in which the solution is considered "good enough" is known as which of the following?

A)minimizing
B)rationalizing
C)maximizing
D)satisficing

Question 42

Amanda's group does not have complete information and must try to make a decision rationally within the limits of their ability to process the available information.They will make their decision under which assumptions?

A)rationality
B)bounded rationality
C)escalation of commitment
D)programmed

Question 43

Colleen decides to have all of the mechanical problems fixed on the car.She assumes that the mechanic has found all the relevant problems and that he will be able to perform all the required repairs within the estimated quote he provided.Colleen decides to proceed with the repairs under which set of assumptions?

A)intuition
B)escalation of commitment
C)rationality
D)uncertainty

Question 44

Toby is hunting for a new apartment.He is specifically looking for one that is located in the heart of the city and should be available for $600 per month.However,Toby is also willing to pay up to $850 per month for a place situated slightly away from the city centre.According to him,the second option "will also do." This is an example of ________.

A)experience-based decision making
B)rational decision making
C)bounded rationality
D)intuitive decision making

Question 45

Managerial decision-making is assumed to be rational.

Question 46

Decision making where managers recognize and understand that the systematic use of the best available data will improve their management practices and decision making is called ________.

A)rational management
B)satisficing decision making
C)evidence-based management
D)innovative management

Question 47

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

Question 48

Relying on "gut feeling" over cognitive problem solving in decision making is a phenomenon called ________.

A)hindsight bias
B)escalation of commitment
C)intuition
D)overconfidence bias

Question 49

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

Question 50

Colleen's brother has a different view of the repairs.He assumes that the mechanic is using the best information available,but there may be other unexpected repairs that surface once he begins the work.He warns Colleen not to be too surprised if the final bill exceeds the mechanic's original estimate.Her brother's observations are based on which assumptions?

A)rationality
B)certainty
C)bounded rationality
D)heuristics

Question 51

The strap on Brad's backpack broke as he lifted it.On the way to class,he stopped at the first store that carries backpacks and although it was not exactly what he wanted,he purchased a new one from the front counter because it would do the job.Brad has made a(n)________ decision.

A)satisficing
B)irrational
C)optimizing
D)perfectly rational

Question 52

In intuitive decision making,managers ________.

A)often tend to ignore their feelings or emotions
B)use data from their subconscious mind to help make their decisions
C)use available evidence to improve their decision-making skills
D)ask for opinions and values of other stakeholders

Question 53

A satisficing decision is one that is satisfactory and sufficient in the situation,and meets an acceptable level of performance.

Question 54

When several managers move to approve the plan to downsize the research and development department without first exploring other options,they are engaging in a type of decision making called ________.

A)maximizing
B)optimizing
C)rationalizing
D)satisficing

Question 55

Because managers can't possibly analyze all information about all alternatives,they accept solutions that ________ rather than ________ payoff.

A)maximize; satisfice
B)maximize; minimize
C)satisfice; minimize
D)satisfice; maximize

Question 56

One assumption of rationality is that time and cost constraints exist.

Question 57

According to the concept of bounded rationality,managers make decisions rationally but are limited by their ability to process information.

Question 58

Amanda's group has proposed a solution that does not have much data or evidence to support it.However,based on Amanda's 20 years of experience,the solution just feels right,and so she proposes it to the board of directors.Amanda has made her decision based on ________.

A)heuristics
B)intuition
C)overconfidence bias
D)availability bias

Question 59

Intuitive decision making ________.

A)is the systematic use of the best available evidence to improve decision-making practice
B)generally results in poor decisions,and hence managers should learn to ignore their gut feelings
C)is only appropriate for simple problems
D)is the process of making decisions based on experience,feelings,and accumulated judgment

Question 60

An important element in making decisions using evidence-based management (EBMgt)is to consider ________.

A)using the rational decision-making process
B)applying design thinking to problems
C)opinions,preferences and values of all stakeholders
D)alternatives that are good enough for the situation

Question 61

To receive reimbursement for their travel expenses,managers at ABC Company must first list each item in chronological order on an expense form,then attach all receipts to the upper-left corner,then obtain their supervisor's authorizing signature,and,finally,forward the form to the finance department.This is an example of a ________.

A)rule
B)precedent
C)procedure
D)policy

Question 62

A procedure ________.

A)is an explicit statement detailing exactly how to deal with a decision
B)is a series of interrelated sequential steps to respond to a structured problem
C)is a set of guidelines that channel a manager's thinking in dealing with a problem
D)is a series of steps designed to implement decisions for unique and nonrecurring problems

Question 63

Intuitive decision making complements rational decision making but not bounded rational decision making.

Question 64

"We strive to use environmentally safe materials" is an example of a ________.

A)rule
B)policy
C)precedent
D)guideline

Question 65

In a short essay,discuss the assumptions of rationality,the validity of those assumptions and the influence of bounded rationality in decision-making.

Question 66

The most efficient way to handle a structured problem is through ________ decision making.

A)linear
B)unique
C)focused
D)programmed

Question 67

"No smoking allowed" is an example of a ________.

A)rule
B)precedent
C)policy
D)guideline

Question 68

When the petty cash in Elaine's drawer falls to less than $25,she places a request for additional funds to bring the total back up to $100.This is an example of a(n)________ decision.

A)nonprogrammed
B)programmed
C)structured
D)unstructured

Question 69

A customer gives Jan a request that she has never heard before in her 15 years of experience at the hardware store.Since the request involves the application of a new technology,Jan is not sure what to do.This is an example of a(n)________ problem that requires a ________ solution.

A)nonprogrammed,satisficing
B)programmed,rule-based
C)structured,programmed
D)unstructured,nonprogrammed

Question 70

Managers regularly use their intuition in decision-making.

Question 71

Problems that are straightforward,familiar,and easily defined are called ________ problems.

A)opportunity
B)structured
C)nonprogrammed
D)predictable

Question 72

A ________ is an explicit statement that tells a manager what he or she can or cannot do.

A)procedure
B)policy
C)precedent
D)rule

Question 73

A policy ________.

A)typically contains an ambiguous term that leaves room for interpretation
B)is frequently used when a manager faces an unstructured problem
C)allows little discretion on the part of the manager
D)offers strict rules as to how a problem should be solved

Question 74

A ________ decision is repetitive and can be handled by a routine approach.

A)nonprogrammed
B)linear
C)satisficing
D)programmed

Question 75

Opinions,preferences,and values of decision-makers are an essential element of evidence-based management.

Question 76

Whenever possible,managers at ABC Company try to promote employees from within the organization before recruiting from external sources.This is an example of a ________.

A)rule
B)procedure
C)policy
D)guideline

Question 77

Intuitive decision making is based on values and past experiences.

Question 78

A business school's statement that it "strives for productive relationships with local organizations" is an example of a ________.

A)rule
B)precedent
C)procedure
D)policy

Question 79

Evidence-based management relies heavily on the decision maker's intuition.

Question 80

The inflight service manager for National Airlines is authorized to distribute dry-cleaning vouchers to customers who complain about spilled drinks and food on their clothes during turbulent flights.This is an example of a ________ decision to a(n)________ problem.

A)nonprogrammed; routine
B)programmed; unique
C)programmed; structured
D)nonprogrammed; unstructured