Deck 7: Decision Making,learning,creativity,and Entrepreneurship

Question 1

The likelihood of a manager making an error in judgment is much greater in programmed decision-making than in nonprogrammed decision-making.

Answer 1

False
Explanation: The likelihood of error is much greater in nonprogrammed decision making than in programmed decision making.

Question 2

One reason for bad decisions is that managers often fail to specify the criteria that are important in reaching a decision.

Answer 2

True
Explanation: One reason for bad decisions is that managers often fail to specify the criteria that are
important in reaching a decision.

Question 3

The administrative model suggests that human decision-making capabilities are limited in their ability to interpret,process,and act on information.

Answer 3

True
Explanation: The administrative model suggests that human decision-making capabilities are bounded by people's cognitive limitations-that is,limitations in their ability to interpret,process,and act on information.

Question 4

Managers make decisions whenever they are engaged in planning,organizing,leading,or controlling.

Question 5

Nonprogrammed decision making is a routine,virtually automatic process.

Question 6

The optimum decision is the most appropriate decision possible in light of what they believe to be the most desirable consequences for the organization.

Question 7

Systematic errors cause cognitive biases,which enable managers to make good decisions.

Question 8

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

Question 9

The first step in the decision-making process is to recognize the need for a decision.

Question 10

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 11

Decision making in response to opportunities occurs when events inside or outside the organization adversely affect organizational performance and managers search for ways to increase performance.

Question 12

According to March and Simon,decision making is always an inherently uncertain and risky process.

Question 13

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

Question 14

The administrative model is based on three important concepts: bounded rationality,complete information,and optimizing.

Question 15

Generating creative alternatives to solve problems and take advantage of opportunities requires that managers explore their existing mind-sets.

Question 16

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

Question 17

A manager who makes a programmed decision relies on established rules and guidelines.

Question 18

According to March and Simon,managerial decision making is frequently more of a science than an art,especially when nonprogrammed decisions are involved.

Question 19

In most situations,information is incomplete and a full range of alternatives is unknowable.

Question 20

In the real world,managers must rely on their intuition and judgment to make what seems to them to be the best decision in the face of uncertainty and ambiguity.

Question 21

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

A)Nonprogrammed decisions
B)Heuristic decisions
C)Programmed decisions
D)Intuitive decisions
E)Creative decisions

Question 22

Individual decision making is superior to group decision making in several respects.

Question 23

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

A)Nonprogrammed decisions
B)Heuristic decisions
C)Programmed decisions
D)Intuitive decisions
E)Creative decisions

Question 24

When a group meets face-to-face and attempts to generate a wide variety of alternatives as possible solutions to a problem without criticizing them until all of the alternatives have been presented,brainstorming has occurred.

Question 25

The process by which managers respond to opportunities and threats facing their organization by analyzing options and taking actions is known as:

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

Question 26

Jeanie,the human resource manager,hires more workers when the existing workers overtime exceeds 10%.This is an example of which type of decision?

A)Programmed decisions
B)Heuristic decisions
C)Nonprogrammed decisions
D)Intuitive decisions
E)Creative decisions

Question 27

Managers make decisions when they are involved in which managerial function?

A)Planning and controlling only
B)Planning only
C)Planning,organizing,controlling but not leading
D)Organizing and leading only
E)Planning,organizing,leading,and controlling

Question 28

Entrepreneurship is noticing an opportunity to satisfy a customer need and then deciding how to find and use resources to make a product that satisfies that need.

Question 29

When a group of managers makes a decision,the probability that the decision will be implemented successfully increases.

Question 30

Barbara,a school superintendent,asks the local school board for permission to hire an additional teacher whenever the student enrollment at a certain grade level within a school increases by 35 students beyond capacity.This is an example of which type of decision?

A)Programmed decisions
B)Heuristic decisions
C)Nonprogrammed decisions
D)Intuitive decisions
E)Creative decisions

Question 31

Dialectical inquiry is easier to use than devil's advocacy to blunt the effects of groupthink in group decision making.

Question 32

When managers fall victim to prior-hypothesis bias,they tend to seek and use information that is consistent with their prior beliefs and to ignore information that contradicts those beliefs.

Question 33

It is relatively easy to create a learning organization.

Question 34

When groupthink occurs,pressures for agreement and harmony within a group tend to encourage individuals to think independently,raise questions,and develop creative
alternatives.

Question 35

Entrepreneurship is the same as management.

Question 36

Entrepreneurs are likely to have an external 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 37

According to Senge's concept of the learning organization,team learning is less important than individual learning when trying to increase organizational learning.

Question 38

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 39

The higher the level of entrepreneurship in a firm,the higher will be the level of learning and innovation.

Question 40

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

Question 41

According to the administrative model of decision making,even if managers had unlimited ability to evaluate information,they still would not be able to arrive at the optimum decision.Why?

A)Managers still have incomplete information
B)Managers have unbounded rationality
C)Managers are not capable of making an optimum decision
D)Managers have varying perspectives
E)Managers have too many alternatives

Question 42

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)Nonprogrammed
C)Intuition
D)Groupthink
E)Bounded rationality

Question 43

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,this is called:

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

Question 44

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

A)Intuitive decisions
B)Creative decisions
C)Programmed decisions
D)Heuristic decisions
E)Nonprogrammed decisions

Question 45

Jordan,the manager of JT's Tasty Treats,is trying to decide whether to introduce a new frozen dessert that has never been sold previously.This represents which type of decision for Jordan?

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

Question 46

WashUrCar,which operates five car washes,is attempting to decide whether or not it should purchase a new type of drying equipment.This represents which type of decision for the organization?

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

Question 47

In 1993,when Apple Computer introduced the Newton,its personal digital assistant (PDA),managers had no idea what the probability of a successful product launch for a PDA might be.This condition is called:

A)Risk
B)Uncertainty
C)Bounded rationality
D)Optimization
E)Satisficing

Question 48

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 49

In the classical model of decision-making,the most appropriate decision given the likely future consequences to the organization is known as the ____________ decision.

A)Intuitive
B)Creative
C)Heuristic
D)Obvious
E)Optimum

Question 50

When a manager makes a good decision based on a "gut feeling," this is known as:

A)A programmed decision
B)A nonprogrammed decision
C)A heuristic decision
D)An intuitive decision
E)The illusion of control

Question 51

Peggy,a plant foreman,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.This is an example of which type of decision?

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

Question 52

Which of the following would NOT be considered a nonprogrammed decision of Jochen Zeitz,CEO of Puma?

A)Launch a new promotional campaign
B)Hire additional staff
C)Enter a new market
D)Expand internationally
E)Develop a new product line

Question 53

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
E)Dialectical inquiry

Question 54

What assumption is 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 are not capable of making decisions

Question 55

Which of the following does NOT contribute to incomplete information?

A)Risk
B)Uncertainty
C)Time constraints
D)Ambiguity
E)Egoism

Question 56

With sales lagging due to the poor economic conditions,Abby,the manager of Photography by Abby,has decided to launch a large scale advertising campaign to promote her services.This represents which type of decision for the organization?

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

Question 57

Programmed decision making is a ______.

A)Novel
B)Routine
C)Intuitive
D)Unusual
E)Nonroutine

Question 58

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

A)Certainty
B)Risk
C)Bounded rationality
D)Uncertainty
E)Satisficing

Question 59

Which of the following would NOT be used to describe a nonprogammed decision?

A)Unusual
B)Novel
C)Nonroutine
D)Routine
E)Intuitive

Question 60

A reason why information is incomplete is that much of the information managers have at their disposal is ______ information.

A)Ambiguous
B)Complicated
C)Specific
D)Heuristic
E)Satisficed

Question 61

Based on the work of March & Simon's Administrative Model,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.
E)Generate alternatives.

Question 62

Because the radio station's special rate program was about to expire,Tim proceed with his promotional campaign even though he didn't have all the information he needed.Tim's information was incomplete because of:

A)Bounded rationality
B)Ambiguous information
C)Unbounded rationality
D)A time constraint
E)An information cost

Question 63

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

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

Question 64

Dan,president of Bank Missouri,is attempting to determine whether the bank has both the capability and the resources to develop a branch facility in a new location.Dan is focusing on which criterion for decision-making?

A)Practicality
B)Ethicalness
C)Legality
D)Economic feasibility
E)Break-even point

Question 65

What do managers do when they search for and choose acceptable,or satisfactory,ways to respond to problems and opportunities rather than trying to make the optimal decision?

A)Sacrifice
B)Compromise
C)Optimize
D)Satisfice
E)Rationalize

Question 66

Eileen,a college professor,is attempting to choose the best textbook for an upcoming course.After reviewing ten of the twenty possible choices,she runs out of time,
And chooses one.What has she done?

A)Optimized
B)Brainstormed
C)Bounded her rationality
D)Satisficed
E)Used devil's advocacy

Question 67

When managers responsible for the decision to launch the Challenger space shuttle were attempting to balance the conflicting demands for ensuring the safety of the astronauts with the desire to obtain future funding for the U.S.space program,on which decision-making criterion were these managers focusing?

A)Practicality
B)Legality
C)Ethicalness
D)Economic feasibility
E)Unbounded rationality

Question 68

Before deciding to expand his operations to China,Josh has his attorney look over the contracts to ensure the organization is following all the governmental regulations required by the Chinese officials.Josh is focusing on which criterion for decision-making?

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

Question 69

Which of the following is NOT one of the four criteria managers use to evaluate the pros and cons of alternative courses of action?

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

Question 70

Dale,a manager,is assessing possible alternatives for the solution of a problem.As Dale does so,he attempts to determine if a possible alternative will threaten other company projects.On which criterion for decision-making is Dale focusing?

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

Question 71

Based on March and Simon's Administrative Model,the last step in the managerial decision-making process is to:

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

Question 72

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

A)Economic feasibility
B)Practicality
C)Ethicalness
D)Legality
E)Break-even analysis

Question 73

According to the administrative model,in the real world,managers must rely on their ______ to make what seems to them to be the best decision in the face of uncertainty and ambiguity.

A)Intuition
B)Education
C)Unbounded rationality
D)Employees
E)Superiors

Question 74

The explosion of the space shuttle Challenger is an example of poor managerial decision-making where managers neglected the criterion of:

A)Ethicalness
B)Practicality
C)Legality
D)Economic feasibility
E)Common sense

Question 75

When Jerry,a purchasing agent,was looking for ice cream suppliers for JT' Frozen Treats,he got bids from the top two dairies in the area as opposed to all the available suppliers.What type of a decision does he have to make?

A)Programmed
B)Intuition
C)Judgement
D)Satisficing
E)Optimizing

Question 76

Paramount Kitchen Countertops 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 are located to pitch the account.What type of decision does this represent?

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

Question 77

In managerial decision-making,"rules of thumb" that are useful to managers because they simplify the decision-making process are called:

A)Dialectical inquires
B)Decision biases
C)Heuristics
D)NGT's
E)Delphi's

Question 78

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.Which criterion of decision-making is this marketing manager focusing?

A)Legality
B)Ethicalness
C)Economic feasibility
D)Practicality
E)Unbounded rationality

Question 79

Mistakes in decision-making that some managers make over and over again without
Learning from their mistakes are known as:

A)Dialectical errors
B)Devil's errors
C)Intuition
D)Groupthink
E)Systematic errors

Question 80

Which of the following is NOT a reason for managers to pursue a satisficing
Strategy?

A)Bounded rationality
B)Certain future
C)Unquantifiable risks
D)Considerable ambiguity
E)High information costs