Deck 5: Decision Making, Learning, Creativity, and Entrepreneurship

Question 1

Delphi technique is a written approach to creative problem solving.

Answer 1

True
Explanation: Delphi technique is a written approach to creative problem solving.

Question 2

In the decision-making process, to compare what actually happened to what was expected to happen as a result of the decision is a procedure of choosing among alternatives.

Answer 2

False
Explanation: To compare what actually happened to what was expected to happen as a result of the decision is a procedure of learning from feedback.

Question 3

Individuals who believe that they are responsible for what happens to them and that their own actions determine important outcomes are said to have an external locus of control.

Answer 3

False
Explanation: Entrepreneurs are likely to have an internal locus of control, believing that they are responsible for what happens to them and that their own actions determine important outcomes such as the success or failure of a new business.

Question 4

The final step in the decision-making process is the implementation of the alternative solution.

Question 5

The classical decision-making model assumes that managers have all of the information they need in order to make the optimum decision.

Question 6

Product champions are 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 7

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.

Question 8

Rationalization is a critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented.

Question 9

A manager of a charity asks the board of directors for permission to hire temporary help when the regular secretary goes on vacation. This is an example of which type of decision?

A) Programmed
B) Groupthink
C) Nonprogrammed
D) Intuition

Question 10

Martin, a plant foreman, asks the plant superintendent to allow him to hire an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?

A) Intuition
B) Groupthink
C) Satisficing
D) Programmed

Question 11

Entrepreneurs are likely to be high on the personality trait of openness to experience.

Question 12

Karen, a manager, orders raw materials when the raw materials inventory reaches a certain point. This is an example of which type of decision?

A) Intuition
B) Satisficing
C) Nonprogrammed
D) Programmed

Question 13

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Question 14

The first step in decision making that a manager needs to take is generate a set of feasible alternative courses of action in response to the opportunity or threat.

Question 15

When a manager chooses an acceptable alternative instead of the optimum alternative, we say that a satisficing decision has occurred.

Question 16

When a member of a group challenges the decision that is being made by the group in an attempt to make the group carefully consider the pros and cons of a particular alternative, this member is playing the role of the devil's advocate.

Question 17

When an organization's accounting department decides to send out a bill to a new customer, this represents a(n) _____ decision.

A) programmed
B) nonprogrammed
C) intuitive
D) groupthink

Question 18

Entrepreneurship encompasses all the decisions involved in planning, organizing, leading, and controlling resources.

Question 19

Decisions that have been made many times in the past and for which managers have rules and guidelines about how to make similar decisions in the future are known as ________ decisions.

A) nonprogrammed
B) heuristic
C) programmed
D) intuitive

Question 20

The nominal group technique is especially useful when an issue is not controversial and when different managers are expected to champion a similar course of action.

Question 21

Which of the following explains the reasons for the inherently uncertain and risky nature of decision making and the making of satisfactory rather than optimum decisions by the managers?

A) Logical model
B) Administrative model
C) Perspective model
D) Rational model

Question 22

Dynamic Explosives is trying to decide whether or not to launch a new product nationally. This represents a(n) ________________ decision.

A) programmed
B) intuitive
C) groupthink
D) nonprogrammed

Question 23

What do managers do to regulate routine activities?

A) They create a mission statement.
B) They establish rules and guidelines.
C) They create cross-functional teams.
D) They facilitate a strong organizational culture.

Question 24

When fire chiefs manage firefighters battling hazardous, out-of-control fires, they frequently have to depend on their professional instincts to make on-the-spot decisions that will protect the lives of the firefighters and save the lives of others, control the fires, and preserve decisions made in emergency situations involving high ambiguity and rapidly changing conditions. This is an example of which of the following types of decision making?

A) Programmed
B) Routine
C) Groupthink
D) Intuition

Question 25

An organization's finance department decides to go to the company's usual bank and take out a loan because the company's revenues for the month are projected to be less than its expenses. What type of decision does this represent?

A) Intuition
B) Groupthink
C) Programmed
D) Nonprogrammed

Question 26

When managers know the possible outcomes of a decision and can assign probabilities to each of these outcomes in terms of their likelihood of occurrence in the future, this is known as ________.

A) uncertainty
B) certainty
C) risk
D) bounded rationality

Question 27

Action Co. is attempting to decide whether or not to launch a new $10 million advertising campaign for a product whose sales have been lagging well below the projected sales for the product. This represents which type of decision for the organization?

A) Groupthink
B) Intuitive
C) Nonprogrammed
D) Programmed

Question 28

Casey, the accountant for a small firm, pays the real estate taxes seven days before they are due. This represents which type of decision?

A) Satisficing
B) Programmed
C) Intuition
D) Nonprogrammed

Question 29

In the administrative model of decision making, when the number of possible alternatives to a decision is so large that the manager cannot possibly evaluate all of them before making a decision, which of the following has occurred?

A) Satisficing
B) Bounded rationality
C) Brainstorming
D) Devil's advocacy

Question 30

The classical model of decision making specifies how decisions should be made by managers; this is a way of saying that this model of decision making is ________.

A) heuristic
B) prescriptive
C) incomplete
D) intuitive

Question 31

Managers in the field of biotechnology know that new drugs have a 10 percent chance of passing advanced clinical trials and always assign probabilities to the results of clinical trials. This is an example of ________.

A) risk
B) uncertainty
C) bounded rationality
D) incomplete information

Question 32

An organization that has been focusing on a target market located in the eastern part of the United States is attempting to decide whether to expand its sales to the West Coast of the United States. Which of the following types of decisions is being taken by the organization?

A) Intuition
B) Nonprogrammed
C) Groupthink
D) Satisficing

Question 33

A software firm is considering introducing a new product on the market. However, managers cannot estimate the probability of success for the new product. Which of the following best describes the situation?

A) Risk
B) Uncertainty
C) Bounded rationality
D) Incomplete information

Question 34

When the meaning of the information available to a manager is unclear and can be interpreted in several ways, the information is ________.

A) certain
B) ambiguous
C) bounded
D) irrational

Question 35

Nonroutine decisions made in response to novel situations in business are known as ________ decisions.

A) intuitive
B) creative
C) programmed
D) nonprogrammed

Question 36

The most appropriate decision in light of what managers believe to be the most desirable consequences for the organization is called the ________.

A) tactical decision
B) optimum decision
C) rational decision
D) operational decision

Question 37

The classical model of decision making assumes that _________.

A) the number of alternatives a manager must identify is so great that it is difficult for the manager to even come close to evaluating it all before making a decision
B) managers have little information to use in making a decision
C) managers have access to all the information they need to make the optimum decision
D) managers have neither the time nor the money to search for all possible alternative solutions and evaluate all the potential consequences of those alternatives

Question 38

When managers cannot assign probabilities of future occurrence to possible alternatives with a decision, this is known as ________.

A) certainty
B) risk
C) bounded rationality
D) uncertainty

Question 39

Which of the following is a programmed decision?

A) How much to invest in a new product
B) Whether to expand into a new market
C) When to time a new advertising campaign
D) When to bill customers

Question 40

Star, Inc., is attempting to decide whether or not it should change its manufacturing process to a new type of technology. This represents a(n) ________ decision.

A) programmed
B) nonprogrammed
C) groupthink
D) intuitive

Question 41

The pattern of faulty and biased decision making that occurs in groups whose members strive for agreement at the expense of good decision making is called _________.

A) brainstorming
B) groupthink
C) devil's advocacy
D) bounded rationality

Question 42

Which step of the decision-making process requires managers to be sure all the information available is brought to bear on the problem or issue at hand while ranking the alternatives?

A) Assess alternatives
B) Choose among alternatives
C) Recognize the need for a decision
D) Generate alternatives

Question 43

A manager considers a limited sample of the potential alternative solutions for a problem and selects one that is acceptable instead of attempting to select the optimum solution. This type of decision is called ________.

A) programmed
B) intuition
C) certainty
D) satisficing

Question 44

Kathleen, a manager, is attempting to determine whether she has both the capability and the resources to produce one of several possible new products. In the context of decision making, on which of the following criteria of alternative courses of action is Kathleen focusing?

A) Practicality
B) Ethicalness
C) Legality
D) Economic feasibility

Question 45

Why is group decision making considered beneficial?

A) It takes less time than individual decision-making.
B) It is easy to get two or more managers to agree to the same solution.
C) It allows more information processing and correction of errors.
D) It cannot be undermined by biases.

Question 46

KJ, Inc., has received a poor rating for one of its newly launched products from the customers. Joe, a top manager at KJ, Inc., is conducting a retrospective analysis and compiling a formal procedure from the results of past decisions for future use. Which of the following decision-making steps does the action of Joe represent?

A) Generate alternatives
B) Learn from feedback
C) Recognize the need for a decision
D) Implement the chosen alternative

Question 47

The marketing managers of Rudolf Ltd. strive so hard to agree on an important decision to launch a product that they ignore information that a similar product already exists in the market and that the barriers to entry into the market are high. This refers to which of the following decision-making processes?

A) Dialectical inquiry
B) Devil's advocacy
C) Groupthink
D) Intuition

Question 48

Cameron, a plant manager, wants to initiate a diversity training program in his plant. He is considering whether his department has enough extra people to cover for the time his employees will be engaged in the classes. Which of the following criteria of decision making is Cameron implementing?

A) Legality
B) Practicality
C) Devil's advocacy
D) Economic feasibility

Question 49

Patrick, a manager, is assessing possible alternatives for the solution of a problem. Patrick performs a cost-benefit analysis of several alternatives in order to determine the net financial payoff of each alternative. Which of the following criteria of decision making is Patrick implementing?

A) Economic feasibility
B) Practicality
C) Ethicalness
D) Legality

Question 50

When managers decide that they have the capabilities and resources required to implement an alternative, and they are sure that the alternative will not threaten the attainment of other organizational goals, they are focusing on which of the following criteria of alternative courses of action?

A) Legality
B) Ethicalness
C) Economic feasibility
D) Practicality

Question 51

The purchasing manager for Telsa Motor Co. decides to call three suppliers of automobile windshields for a bid on an order for 1,000 windshields for a new Ford car, instead of calling a hundred possible windshield suppliers for such a bid. What type of decision does this represent?

A) Nonprogrammed
B) Illusion of control
C) Satisficing
D) Programmed

Question 52

With reference to the steps of decision-making process, which of the following is the last step in the managerial decision-making process?

A) Generate alternatives
B) Learn from feedback
C) Recognize the need for a decision
D) Implement the chosen alternative

Question 53

Based on the work of March and Simon's administrative model of decision making, the first step in the managerial decision-making process is to _________.

A) choose among alternatives
B) assess alternatives
C) implement the chosen alternative
D) recognize the need for a decision

Question 54

Esteban, a manager, performs a financial analysis of several investment alternatives in order to determine which alternative is most likely to impact the organization's profitability. Esteban is focusing on ______.

A) bounded rationality
B) ethicalness
C) economic feasibility
D) dialectical inquiry

Question 55

The explosion of the space shuttle Challenger is an example of poor managerial decision making by the managers at NASA and Morton Thiokol, who considered and then downplayed the criterion of ______.

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

Question 56

An organization decides to ask three advertising agencies to pitch a proposal to handle the organization's business, instead of asking all of the advertising agencies in the city where this organization's headquarters is located to pitch the account. What type of decision does this represent?

A) Programmed
B) Nonprogrammed
C) Satisficing
D) Certainty

Question 57

Stephen, a production manager, was engaged in the development of a core component of a machine. He realized that the component would not be ready for QC testing as per the fixed deadline and suggested allotting two more weeks for its complete development or sending only a part of it for testing in the first cycle. Which decision-making step does this represent?

A) Assess alternatives
B) Choose among alternatives
C) Recognize the need for a decision
D) Generate alternatives

Question 58

A critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented, with the purpose of identifying all the reasons that might make the preferred alternative unacceptable, is a ________.

A) dialectical inquiry
B) devil's advocacy
C) groupthink
D) delphi technique

Question 59

Margaret, a marketing manager, wants to budget the advertising for a new product launch. She is trying to determine the amount of money that her company can afford to spend on advertising this new product. In the context of decision-making, which of the following criteria of alternative courses of action is Margaret implementing?

A) Legality
B) Ethicalness
C) Economic feasibility
D) Practicality

Question 60

Dale, a manager, is assessing possible alternatives for the solution of a quality problem in his department. As Dale does so, he attempts to determine if a possible alternative will threaten other company projects. Which of the following criteria of decision-making is being implemented by Dale?

A) Economic feasibility
B) Practicality
C) Legality
D) Ethicalness

Question 61

Adrian, a manager of the research and development team of an organization, challenges his subordinates to "think outside the box" to improve the way the unit does its work. Adrian is focusing on ________.

A) personal mastery
B) mental models
C) team learning
D) shared vision

Question 62

To create a learning organization, managers must empower employees and allow them to experiment, create, and explore what they want through developing a sense of ________.

A) personal mastery
B) mental models
C) team learning
D) shared vision

Question 63

Which of the following is most likely to be a disadvantage of brainstorming in an organization?

A) Group members are allowed to criticize an alternative when it is described and it leads to confusion.
B) It supports only a limited number of ideas.
C) It discourages group members to build on each other's suggestions.
D) Group members cannot always simultaneously understand the alternatives and think up additional alternatives.

Question 64

Jack, a manager, allows Adam, his subordinate, to proceed on a work project even though Jack does not agree with how Adam wants to do the work. Jack is attempting to promote _________ to create a learning organization.

A) personal mastery
B) mental models
C) team learning
D) shared vision

Question 65

At the heart of organizational learning is ________.

A) devil's advocacy
B) risk-taking
C) satisficing
D) creativity

Question 66

The idea that one level of learning affects other levels is part of the _________ principle of creating a learning organization.

A) systems thinking
B) mental models
C) team learning
D) shared vision

Question 67

Managers can increase their ability to make nonprogrammed decisions that will allow them to adapt to, modify, and even drastically alter their task environments so that they can continually increase organizational performance through organizational ________.

A) learning
B) satisficing
C) group thinking
D) diversity

Question 68

The main reason for the loss of productivity in brainstorming is ________.

A) complex mental models
B) groupthink
C) production blocking
D) bounded rationality

Question 69

After one person shares an idea, the next thing that should happen in a brainstorming session is ________.

A) criticism of the idea
B) sharing of other ideas
C) acceptance and implementation of the idea
D) ranking of the idea

Question 70

Which of the following is a part of the Delphi technique of group decision making?

A) Group members write down, read their suggestions, discuss, and then rank the alternatives.
B) Group members engage in videoconferencing and present their ideas.
C) Group members respond in writing to questions posed by the group leader.
D) Five to 15 managers meet in a closed-door session and decide for the group.

Question 71

An individual who looks for opportunities and is aware of mobilizing the resources required for producing new and improved goods and services is called a(n) ________.

A) decision maker
B) entrepreneur
C) advocate
D) steward

Question 72

Which of the following is a way to bring distant managers together to brainstorm and is a written approach to creative problem solving?

A) Brainstorming
B) Dialectical inquiry
C) Delphi technique
D) Nominal group technique

Question 73

Sometimes in a brainstorming session, group members cannot simultaneously make sense of all the alternatives being generated, think up additional alternatives, or remember what they were thinking. This problem is known as ________.

A) production blocking
B) groupthink
C) nominal group problem
D) bounded rationality

Question 74

A sales manager talks with his subordinates about the way they should treat customers. The sales manager is focusing on the _________ aspect of creating a learning organization.

A) personal mastery
B) groupthink
C) team learning
D) shared vision

Question 75

Individuals who pursue opportunities to address social problems and needs in order to improve society and well-being, such as reducing poverty, are known as ________.

A) social entrepreneurs
B) social-thinkers
C) ethical entrepreneurs
D) nominal group entrepreneurs

Question 76

When an issue is controversial and when different managers might be expected to champion different courses of action, which of the following is the preferred technique for encouraging creativity?

A) Production blocking technique
B) Brainstorming technique
C) Team learning technique
D) Nominal group technique

Question 77

A group of managers meets face-to-face and generates and debates a wide variety of alternatives from which to make a decision. What is this process of decision making called?

A) Delphi technique
B) Dialectical inquiry
C) Brainstorming
D) Nominal group technique

Question 78

In a meeting, after hearing a member describe a problem to be addressed, all other members of the group first wrote down ideas and solutions. After this, everyone shared those suggestions without criticism. The group, one by one, clarified, critiqued, and then discussed the alternatives in the sequence in which they were first proposed. Finally, each member ranked all the alternatives, and the highest-ranking alternative was chosen. Which of the following decision-making techniques is being implemented?

A) Delphi technique
B) Dialectical inquiry
C) Brainstorming
D) Nominal group technique

Question 79

Aiden, a manager, is involved in group decision making with other managers. As part of the process, he challenges the way the group evaluated alternatives and points out some reasons why the alternative preferred by the group is not acceptable. He tries to ascertain the strengths and weaknesses of the preferred alternative before its implementation. What is the approach followed by Aiden?

A) Delphi technique
B) Devil's advocacy
C) Nominal group technique
D) Production blocking

Question 80

In managerial decision making, the ability of a manager to discover novel ideas that lead to alternative courses of action for the organization to use for solving a particular problem is known as ________.

A) groupthink
B) satisficing
C) innovation
D) creativity