Deck 7: Decision Making, Learning, Creativity, and Entrepreneurship

Question 1

Groupthink causes the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.

Answer 1

True
Explanation: When groupthink occurs, pressures for agreement and harmony within a group have the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.

Question 2

Decision making in response to threats occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholder groups.

Answer 2

False
Explanation: Decision making in response to opportunities occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholder groups.

Question 3

Maria, a supervisor at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount.What type of decision is this?

A)intuitive
B)groupthink
C)satisficing
D)programmed
E)bounded

Answer 3

D
Explanation: Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 4

Brainstorming is a group problem-solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.

Question 5

Generating creative alternatives to solve problems may require managers to abandon their existing mind-sets.

Question 6

Escalating commitment is the tendency of decision makers to overestimate their ability to control activities and events.

Question 7

A skunkworks is a group of intrapreneurs who are deliberately separated from the normal operation of an organization to encourage them to devote all their attention to developing new products.

Question 8

Allowing individuals to develop a sense of personal mastery is detrimental to organizational learning.

Question 9

Decisions that are based on rules and guidelines are known as ______ decisions.

A)brainstormed
B)heuristic
C)programmed
D)intuitive
E)creative

Question 10

The key to a good assessment of the alternatives is to define the opportunity or threat exactly.

Question 11

To avoid production blocking that occurs during brainstorming, the nominal group technique is often used.

Question 12

Intuitive decisions require time and effort and result from careful information gathering.

Question 13

_________ is the process that managers use to deal with opportunities and threats by analyzing the options and making determinations, or decisions, about specific organizational goals and courses of actions.

A)Groupthink
B)Intuition
C)Decision making
D)Bounded rationality
E)Heuristics

Question 14

The illusion of control causes managers to overestimate the odds of a favorable outcome and, consequently, to make inappropriate decisions.

Question 15

The tendency of managers to ignore critical information is not as serious as the existence of incomplete information.

Question 16

When uncertainty exists, the probabilities of alternative outcomes cannot be determined and future outcomes are unknown.

Question 17

When paper supplies reach a minimum level, Ethan makes a call to the supplier to order more paper.What type of decision does this represent?

A)brainstormed decision
B)heuristic decision
C)programmed decision
D)intuitive decision
E)creative decision

Question 18

The higher the level of intrapreneurship in a firm, the higher the level of learning and innovation.

Question 19

Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35.This can be classified as a(n) _____ decision.

A)programmed
B)heuristic
C)brainstormed
D)intuitive
E)creative

Question 20

Decision making is the process by which managers respond to opportunities and threats to make determinations about organizational goals and courses of action.

Question 21

Programmed decision making is a(n) ______ process.

A)novel
B)routine
C)intuitive
D)unusual
E)creative

Question 22

Steven, a marketing manager, wants to budget the advertising for a new product launch.He is trying to determine the amount of money that the company can afford to spend on advertising.Which criterion of decision making is he focusing on?

A)legality
B)ethicality
C)economic feasibility
D)practicality
E)product sustainability

Question 23

Eileen, a college professor, has to pick a textbook for an upcoming course.She has just enough time to review a few books from the many choices available.She settles for one of the books, even though the best book might be a book that she hasn't yet reviewed.What is this process called?

A)optimizing
B)brainstorming
C)rationality binding
D)satisficing
E)cognitive biasing

Question 24

Which of the following is an accurate description of satisficing?

A)viewing problems from a fresh perspective to come up with creative alternative solutions to specific problems
B)generating creative alternatives to solve problems and taking advantage of opportunities by abandoning existing mind-sets
C)conducting a retrospective analysis to see what can be learned from past successes or failures
D)searching for and choosing acceptable or satisfactory ways to respond to problems and opportunities rather than trying to make the optimal decision
E)seeking and using information that is consistent with prior beliefs and ignoring information that contradicts those beliefs

Question 25

According to the administrative model of decision making, why wouldn't managers be able to arrive at the optimum decision even if they had unlimited ability to evaluate information?

A)Managers would not have complete information.
B)Managers would not have bounded rationality.
C)Managers would have no decision-making ability.
D)Managers would have varying perspectives.
E)Managers would have too many alternatives.

Question 26

According to March and Simon, humans are limited in their ability to interpret, process, and act on information.When the number of suitable alternatives are greater than what a manager can evaluate, Marc and Simon refer to this as

A)prior-hypothesis.
B)bounded rationality.
C)productive blocking.
D)illusion of control.
E)satisficing ambiguity.

Question 27

In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ____________ decision.

A)intuitive
B)creative
C)heuristic
D)subjective
E)optimum

Question 28

The classical model specifies how decisions should be made.In other words it is

A)heuristic.
B)prescriptive.
C)optimizing.
D)intuitive.
E)satisficing.

Question 29

Wash Ur Car, which operates five car washes, has to decide whether or not it should invest in the latest drying equipment.What type of decision does this represent for the organization?

A)automatic
B)intuitive
C)bounded
D)nonprogrammed
E)rule-based

Question 30

During the last several months at FSE Inc., workers' overtime hours have increased by more than 15%.Based on managers' decisions in the past, James Calloway, a top manager at FSE Inc.decided to hire additional staff.This is an example of

A)reasoned judgment.
B)programmed decision making.
C)nonprogrammed decision making.
D)intuition.
E)the classical model.

Question 31

_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

A)Uncertainty
B)Incomplete information
C)Risk
D)Ambiguity
E)Cognitive limitation

Question 32

Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order to maximize discounts.What type of decision does this represent?

A)programmed
B)bounded
C)intuitive
D)groupthink
E)creative

Question 33

Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously.What type of decision would this represent?

A)automatic
B)rule-based
C)predetermined
D)nonprogrammed
E)inconsequential

Question 34

Managers must rely on their ______ to make the best decision when faced with uncertainty and ambiguity.

A)intuition and judgment
B)cognitive biases
C)bounded rationality
D)escalating commitment
E)illusion of control

Question 35

Which of the following is a reason for incomplete information?

A)ambiguity
B)complexity
C)specificity
D)heuristic ability
E)satisficing ability

Question 36

The first step in the managerial decision-making process is to

A)choose between alternatives.
B)assess alternatives.
C)learn from feedback.
D)recognize the need for a decision.
E)conduct a retrospective analysis.

Question 37

Which of the following is an assumption made by the classical model?

A)There is no optimum decision.
B)There is more than one alternative.
C)There is only one alternative.
D)Managers have access to all the information they need.
E)Managers cannot apply their own preferences to make a decision.

Question 38

Which of the following is a reason why managers fail to generate creative solutions?

A)They find it difficult to view problems from a fresh perspective.
B)They often fail to specify the criteria that are important in reaching a decision.
C)They violate domestic or international laws or government regulations.
D)They fail to perform a cost-benefit analysis of the various alternatives.
E)They do not have complete information in most cases.

Question 39

________ decisions are nonroutine decisions made in response to novel situations in business.

A)Rule-based
B)Automatic
C)Guideline-based
D)Predetermined
E)Nonprogrammed

Question 40

When the probabilities of alternative outcomes cannot be determined and future outcomes are unknown, there exists

A)satisficing ambiguity.
B)systematic error.
C)prior-hypothesis bias.
D)uncertainty.
E)blocking.

Question 41

The last step in the managerial decision-making process is

A)generating alternatives.
B)learning from feedback.
C)reassessing the need for a decision.
D)implementing the chosen alternative.
E)assessing alternatives.

Question 42

Corey has been looking at several alternative locations for his new facility and performs a cost-benefit analysis in order to determine the net financial payoff of each location.Which criterion of decision making is Corey focusing on?

A)economic feasibility
B)practicality
C)ethicalness
D)legality
E)functionality

Question 43

Which of the following is true about choosing among alternative solutions?

A)The alternative solutions are ranked in the order that they were developed or created.
B)Identifying all relevant information doesn't mean that a manager has complete information.
C)Existence of incomplete information is more serious than ignoring critical information.
D)Once alternatives are chosen and ranked, they must be evaluated.
E)The final step in the decision-making process is choosing among alternative solutions.

Question 44

Scott is part of a production team that has researched and chosen a new process to improve the quality of a product.Scott finds information that counters the claims of the production team.However, Scott decides to ignore the new-found evidence and support the team's decision.Scott is being adversely influenced by

A)the illusion of control.
B)organizational learning.
C)groupthink.
D)devil's advocacy.
E)representative bias.

Question 45

John, an operations manager, has chosen an alternative way to solve a problem he is faced with.Now John must decide whether the company has the capabilities and resources required to implement the alternative.Which criterion of decision making is he focusing on?

A)legality
B)ethicality
C)economic feasibility
D)practicality
E)product sustainability

Question 46

Dale, a manager, is assessing possible alternative solutions of a problem.Dale attempts to determine whether a possible alternative will threaten other company projects.Which criterion of decision making is Dale focusing on?

A)economic feasibility
B)practicality
C)legality
D)ethicalness
E)functionality

Question 47

_____ results from the tendency to make decisions based on preexisting beliefs even though evidence suggests that those beliefs are wrong.

A)Prior hypothesis bias
B)Dialectical inquiry
C)Escalating commitment
D)Representativeness bias
E)The illusion of control

Question 48

_____ results from the tendency to have an incorrect view because of a bad experience with a single event or episode.

A)Prior hypothesis
B)Dialectical inquiry
C)Escalating commitment
D)Representativeness bias
E)The illusion of control

Question 49

Raul, the president of Bank Missouri, is attempting to determine whether the bank has both the capability and the resources to open a branch facility in a new location.Which criterion of decision making is Raul focusing on?

A)practicality
B)ethicalness
C)legality
D)economic feasibility
E)functionality

Question 50

Which of the following is true about decision making?

A)Making a decision and not acting on it is better than not making a decision at all.
B)Identifying relevant information means that the manager has complete information.
C)In order to implement the chosen alternative, many subsequent and related decisions must be made.
D)Effective managers prefer planning for the future rather than conducting a retrospective analysis.
E)If the advantages of an alternative are significantly high, its disadvantages need not be evaluated.

Question 51

Two separate groups of managers are given a problem to solve, and then each group presents its proposed solution to top management in an attempt to determine the best course of action.This process is called

A)devil's advocacy.
B)groupthink.
C)dialectical inquiry.
D)classical decision making.
E)organizational learning.

Question 52

_____ occurs when individuals in a team strive for agreement among themselves rather than assessing information accurately.

A)Groupthink
B)Intuition
C)Bounded rationality
D)Escalating commitment
E)Representativeness bias

Question 53

Which of the following is a source of bias that can adversely affect the way managers make decisions?

A)reasoned judgments
B)bounded rationality
C)economic feasibility
D)escalating commitment
E)dialectical inquiry

Question 54

_____ is a critical analysis of a preferred alternative, defending unpopular or opposing alternatives for the sake of argument.

A)Dialectical inquiry
B)Devil's advocacy
C)Groupthink
D)Prior-hypothesis bias
E)Organizational learning

Question 55

Having committed large amounts of manpower and money to his landscaping business, Tony continues to keep the business running despite incurring heavy losses.What is the source of Tony's cognitive bias?

A)escalating commitment
B)illusion of control
C)prior hypothesis bias
D)representativeness bias
E)dialectical inquiry

Question 56

Which of the following is a guideline for managers to improve their decision-making abilities?

A)concentrate on planning for the future instead of conducting a retrospective analysis
B)ignore biases and personal style of making decisions
C)rank various alternatives even when all relevant information is not available
D)List the criteria that are being used to assess and evaluate alternatives and evaluate if the factors are appropriate
E)persist with economically superior alternatives despite the threat of cannibalization

Question 57

_____ results from overestimating one's own ability to influence actions and events.

A)Escalating commitment
B)Illusion of control
C)Prior hypothesis bias
D)Representativeness bias
E)Dialectical inquiry

Question 58

_____ are rules of thumb that simplify the decision-making process.

A)Dialectical inquires
B)Cognitive biases
C)Heuristics
D)Intuitions
E)Reasoned judgments

Question 59

_______ are mistakes in decision making that some managers make repeatedly.

A)Dialectical errors
B)Programmed decisions
C)Nonprogrammed decisions
D)Intuitive judgments
E)Systematic errors

Question 60

Which of the following is an advantage of group decision making?

A)Managers can draw on the combined skills, competencies, and accumulated knowledge of group members.
B)Managers can embark on a course of action without wasting time in evaluating its merits.
C)Groups can rally around a central manager and the course of action that he supports.
D)Groupthink can lead to better productivity.
E)Group members commit to a decision without understanding its consequences.

Question 61

_______ can be part of a decision-making process in which a face-to-face meeting occurs, generating discussions and debates over a wide variety of alternatives from which to make the decision.

A)The Delphi technique
B)Dialectical inquiry
C)Brainstorming
D)A nominal group technique
E)Programmed decision making

Question 62

Which of the following is true about a nominal group technique?

A)A questionnaire is sent to the group members.
B)Group members are encouraged to build on each other's suggestions.
C)Group members do not meet face-to-face.
D)Group members can critique a proposed alternative as it is presented.
E)Group members write down their ideas then share their thoughts with the group.

Question 63

Based on decades of research by Kahenman and Tversky, which of the following is true about the confidence managers (and all people) have regarding their intuition and reasoned judgments?

A)They think they make poor decisions.
B)They learn from their mistakes.
C)They tend to be overconfident about their intuition and judgments.
D)The majority think they are below average.
E)The majority think they are more prone to making bad decisions than others.

Question 64

Li sees that several of his employees have creative talent.Which of the following should Li do to promote individual creativity?

A)pressure the employees to deliver creative solutions quickly
B)tone down the importance of vital issues
C)reward the employees who come up with creative ideas
D)change the focus of those employees who are wasting time on ideas that seem outlandish
E)criticize the efforts of the employees to stress the importance of creative ideas

Question 65

_______ are individuals who notice opportunities and decide how to mobilize the resources necessary to produce new and improved goods and services.

A)Entrepreneurs
B)Managers
C)Supervisors
D)Product champions
E)Intuitors

Question 66

________ is an organization in which managers enable subordinates to think creatively in order to maximize the potential for organizational learning.

A)A learning organization
B)A dialectical organization
C)Skunkworks
D)An intuitive organization
E)A heuristic organization

Question 67

Building a(n) _____ is not easy and it requires that managers change their management assumptions radically.

A)learning organization
B)administrative model
C)intuitive organization
D)heuristic organization
E)classical model

Question 68

Which of the following is a characteristic of an entrepreneur?

A)not open to new experiences
B)have an external locus of control
C)have a low level of self esteem
D)have a high need for achievement
E)have a low need for power

Question 69

_____ refers to the loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.

A)Production blocking
B)Satisficing
C)Nonprogrammed decision making
D)Systematic error
E)Illusion of control

Question 70

_____ is a critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt.

A)Groupthink
B)Devil's advocacy
C)Skunkworks
D)Dialectical inquiry
E)Classical decision method

Question 71

Which of the following is true about a learning organization?

A)Allowing individuals to develop a personal sense of mastery is detrimental to organizational learning.
B)Organizations need to encourage employees to develop and use complex mental models.
C)Individual learning is more important than team learning in increasing organizational learning.
D)Building a shared vision can curb an individual's sense of creativity.
E)Creativity increases when managers pressure employees to deliver creative solutions quickly.

Question 72

Intrapreneurial managers who leave their current organizations because of a lack of opportunity and start their own companies are known as

A)skunkworks.
B)social entrepreneurs.
C)entrepreneurs.
D)product champions.
E)devil's advocates.

Question 73

_____ is the term given to employees who engage in entrepreneurial activity and who are an important source of organizational creativity.

A)Entrepreneurs
B)Intrapreneurs
C)Social entrepreneurs
D)Devil's advocates
E)Middle managers

Question 74

Which of the following group decision-making processes is a written approach, without meeting face-to-face, to creative problem solving?

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

Question 75

_____ is the process through which managers seek to improve employees' desire and ability to make decisions that raise organizational effectiveness.

A)Dialectical inquiry
B)Devil's advocacy
C)Groupthink
D)Organizational learning
E)Skunkworks

Question 76

Which of the following is a guideline to promoting individual creativity in an organization?

A)Creativity increases when managers monitor the employee's actions.
B)Building a shared vision can curb an individual's sense of creativity.
C)Creativity results when employees have an opportunity to experiment.
D)Employees are discouraged when they receive constructive feedback.
E)Creative people are not encouraged by contests and rewards.

Question 77

_____ is the decision-making method in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

A)Delphi technique
B)Dialectical inquiry
C)Brainstorming
D)Nominal group technique
E)Devil's advocacy

Question 78

_____ is a decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action.

A)Groupthink
B)Dialectical inquiry
C)Intuition
D)Creativity
E)The illusion of control

Question 79

_____ are individuals who pursue causes such as reducing poverty, increasing literacy, protecting the natural environment, or reducing substance abuse.

A)Social entrepreneurs
B)Intrapreneurs
C)Product champions
D)Skunkwork specialists
E)Devil's advocates

Question 80

Ronda noticed some opportunities to increase literacy in her community so she pursued an innovative idea and started an education program.This is an example of

A)entrepreneurship.
B)social entrepreneurship.
C)intrapreneurship.
D)skunkworks.
E)innovation.