Deck 11: Making Decisions

Question 1

The three factors that evaluate the level of creativity in the decision-making process are fluency,flexibility,and originality.

Answer 1

True

Question 2

The most difficult step of the rational decision-making process is to establish the decision criteria.

Answer 2

False

Question 3

Strategic decisions are usually made by middle level managers.

Answer 3

False

Question 4

A decision rule is an automated response to a problem or issue that occurs frequently.

Question 5

To satisfice is to accept the first alternative that meets minimum criteria.

Question 6

The rational decision-making model limits the number of alternatives considered.

Question 7

Decision making requires action as a solution.

Question 8

While setting high idea quotas appears to logically maximize the effectiveness of brainstorming,in reality it has just the opposite effect.

Question 9

Innovation and creativity are the same thing.

Question 10

An example of a nonprogrammed decision is deciding whether to merge with another firm.

Question 11

All decisions have major consequences and require much thought.

Question 12

Tactical decisions are those concerned with how things get done.

Question 13

Wildstorming is a process where the group focuses on ideas that are impossible and then tries to imagine what would need to happen to make them possible.

Question 14

Creativity is the interaction between personality traits,attributes,and serendipity.

Question 15

Analysis paralysis is when more and more time is spent on gathering information and thinking about it,but no decisions are made.

Question 16

Programmed decisions are unique,creative decisions.

Question 17

In the intuitive decision-making process,only one choice is considered at a time.

Question 18

The first step of both the rational decision-making model and the creative decision-making process is to identify the problem.

Question 19

Immersion is to conscious thought as incubation is to unconscious thought.

Question 20

People are always interested in making an optimal decision.

Question 21

Cliff and Beth both received poor grades on their finance exam.Because of the fundamental attribution error,Cliff is more likely to blame his poor test grade on a bad instructor,but blame Beth's poor test grade on Beth's lack of effort studying for the test.

Question 22

Crowdsourcing refers to outsourcing a problem to a large group.

Question 23

Group decisions regularly outperform the decision of the group's best member.

Question 24

The nominal group technique involves using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

Question 25

Hindsight bias is the opposite of framing bias.

Question 26

Individual decision making produces a greater commitment to the ultimate decision than does group decision making.

Question 27

Unethical decisions in bank lending is likely one of the causes of the current economic crisis in the United States.

Question 28

One way to avoid escalation of commitment is to have identifiable turning back points.

Question 29

The intuitive decision-making model is best used when the decision maker has experience with the problem and there is time pressure.

Question 30

The rational decision-making process is best used when the decision is important and you are trying to maximize outcomes.

Question 31

Given research on anchoring bias,individuals are more likely to assume that more people die from car accidents as compared to stomach cancer.

Question 32

Research shows that consensus decision making is less accurate and can even make group members feel less satisfied with a decision.

Question 33

Decision trees are helpful in avoiding errors due to overconfidence bias.

Question 34

One basic question to ask to ascertain the ethics of a decision is: "How would I feel if this decision was broadcast on the news?"

Question 35

Group decision support systems could make employees more reluctant to share information due to lack of control.

Question 36

Groupthink is characterized by symptoms like questioning the morality of the group.

Question 37

One of the pros of group decision making is the potential for greater commitment to the decision.

Question 38

Having a devil's advocate in meetings is a technique that can help avoid groupthink.

Question 39

Groupthink is one of the reasons cited for the tragedy of the Challenger space shuttle.

Question 40

Escalation of commitment is also known as "sunken cost fallacy."

Question 41

Which of the following questions would require a tactical decision in response?

A)Should we takeover our competitor?
B)How should we market the new product line?
C)What should I say to the customers about our return policy?
D)How will I balance my master's degree workload with my work assignments?

Question 42

Programmed decisions are

A)unique,nonroutine,and important,requiring conscious thinking,information gathering and careful consideration of alternatives.
B)decisions that are made to set the course of an organization.
C)a set of parameters against which all of the potential options in decision making will be evaluated.
D)ones which occur frequently enough that an automated response is developed for them.

Question 43

An example of a question requiring an operational decision in response is:

A)Should we consider a merger with our biggest competitor?
B)How often do I go back to the stockroom to get additional products for display?
C)Should we develop a new corporate structure?
D)Which advertising firm should we choose for our fall advertising campaign?

Question 44

The "automated" ordering of ten cases when supply gets to two cases in the store is called a(n)

A)consensus decision.
B)decision rule.
C)alternative.
D)anchor.

Question 45

The type of decision Mark is making about restocking shrimp is a

A)strategic decision.
B)nonprogrammed decision.
C)programmed decision.
D)tactical decision.

Question 46

Operational decisions are typically made by

A)managers.
B)top management teams.
C)employees throughout the organization.
D)CEOs.

Question 47

Who is most responsible for making strategic decisions?

A)managers
B)engineers
C)low-level employees
D)CEOs

Question 48

Strategic decisions refer to

A)those that make the organization run on a daily basis.
B)how things get done.
C)those setting the course of the organization.
D)those that occur frequently enough to have an automated response to them.

Question 49

Tactical decisions are generally made by

A)CEOs.
B)engineers.
C)managers.
D)Boards of Directors.

Question 50

Claudia is a salesperson with a major department store chain that is currently running a "secret coupon sale." The program allows the salesperson to randomly award a savings coupon to any shopper of the salesperson's choice.Who the salesperson chooses to award the coupon to is a(n)

A)strategic decision.
B)tactical decision.
C)operational decision.
D)programmed decision.

Question 51

Antonio,Alpha Company's marketing manager,will be listening to the advertising pitches from the final four firms today as he chooses the television ad campaign for his product for the fall season.Antonio is making a(n)

A)programmed decision.
B)strategic decision.
C)tactical decision.
D)operational decision.

Question 52

A decision which centers on how things get done is a(n)

A)tactical decision.
B)strategic decision.
C)operational decision.
D)programmed decision.

Question 53

Operational decisions refer to

A)those things that employees do each day to make the organization run.
B)things that might happen in the future.
C)those that set the course of the organization.
D)those that occur frequently enough to develop an automated response to them.

Question 54

American managers tend to value quick decision making while Chinese managers favor more reflective decision making.

Question 55

Making choices among alternative courses of action,including inaction,is

A)decision making.
B)programmed decisions.
C)satisficing.
D)Consensus.

Question 56

The success of the game Angry Birds was in part attributed to the company's decision to

A)change the color of the birds.
B)focus on local,smaller markets before trying to enter the US and UK.
C)give the game complex rules to follow.
D)pilot test the game with teenagers.

Question 57

In 2003,six people died from Hepatitis A and 660 were sickened after eating at Chi Chi's,a popular Mexican restaurant in suburban Pittsburgh,Pennsylvania.In the days following the first death,the CEO of the Chi Chi's chain made a decision to have all restaurant workers and the restaurant itself tested to determine what established the dangerous conditions.(Eventually the hepatitis outbreak was traced to the green onions in the firm's salsa.)The decision to order such testing in the crisis situation is an example of

A)a programmed decision.
B)a nonprogrammed decision.
C)a decision rule.
D)a tactical decision.

Question 58

A unique,nonroutine,important decision requiring conscious thinking,information gathering,and careful consideration of alternatives is a(n)

A)programmed decision.
B)operational decision.
C)nonprogrammed decision.
D)decision rule.

Question 59

An example of a question requiring a strategic decision is

A)How often should I communicate with my new coworkers?
B)How should we market the new product line?
C)Should we downsize our organization?
D)What should I say to customers about our new product?

Question 60

Doris and Lydia are members of the Board of Directors at Beta Corporation.They are giving very serious consideration to voting to merge their company with Zeta Company for enhanced efficiency,effectiveness and competitive advantage.Doris and Lydia are making a(n)

A)strategic decision.
B)tactical decision.
C)operational decision.
D)programmed decision.

Question 61

Which is the first step in the rational decision-making model?

A)Establish decision criteria.
B)Identify the problem.
C)Weigh decision criteria.
D)Generate alternatives.

Question 62

What is the most challenging or difficult step in the rational decision-making process?

A)Identify the problem.
B)Establish decision criteria.
C)Generate alternatives.
D)Evaluate alternatives.

Question 63

If the goal of your decision making is to make the optimum decision or make the best choice,you should utilize

A)the bounded rationality model of decision making.
B)the intuitive decision-making model.
C)the creative decision-making model.
D)the rational decision making model.

Question 64

Susan is a paramedic for the county ambulance service.Yesterday there was a terrible accident on the interstate when a bus carrying senior citizens to an Atlantic City casino was struck by a small dump truck as the truck tried to change lanes.Fifteen of the bus riders were killed and 25 injured.As Susan arrived on the scene to perform triage on the accident victims,she quickly made decisions as to which victims needed immediate care and who could wait.Susan was using what decision-making model in making these stressful decisions?

A)bounded rationality model of decision making
B)creative decision-making model
C)intuitive decision-making model
D)rational decision-making model

Question 65

Jennifer has to decide which of two job offers she is going to choose.She begins her process by listing the key criteria she is looking for in a job including salary level,location,promotional opportunities,and so on.She then takes each job offer letter and carefully goes through each line assessing the offer in relationship to the criteria she has established.Jennifer is using which of decision-making model to choose her job?

A)the rational decision-making model
B)the creative decision-making model
C)the intuitive decision-making model
D)the programmed decision-making model

Question 66

A series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice describes

A)the bounded rationality model.
B)the rational decision-making model.
C)the intuitive decision-making model.
D)the creative decision-making model.

Question 67

The decision-making process where decisions are arrived at without conscious reasoning,arguing that experts make decisions by scanning the environment for cues to recognize patterns is

A)the creative decision-making model.
B)the bounded rationality model.
C)the intuitive decision-making model.
D)the rational decision-making model.

Question 68

Which of the following statements regarding the rational decision-making model is accurate?

A)The decision maker should generate alternatives before establishing criteria.
B)The decision maker should make certain to clearly identify alternatives before undertaking any other step.
C)Successful managers tend to be clear on what they want at the outset of the decision making process.
D)One research study indicated that alternative generation occurred in 85% of the decisions examined.

Question 69

Which of the following statements about the creative decision-making model is accurate?

A)Innovation is the generation of new,imaginative ideas.
B)The dynamic nature of today's organizations,including structural changes and cost cutting,have driven creativity in the business.
C)Problem identification is the last step in the creative decision making model.
D)Innovation and creativity are the same process.

Question 70

The availability of too much information leading to more and more time being spent on gathering information and thinking about it,resulting in no decisions being made is

A)satisficing.
B)analysis paralysis.
C)wildstorming.
D)anchoring.

Question 71

The bounded rationality decision-making model

A)describes a series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice.
B)recognizes the limitations of decision making processes by having individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search of alternatives.
C)refers to arriving at decisions without conscious reasoning,arguing that experts make decisions by scanning the environment for cues to recognize patterns.
D)refers to arriving at decisions after first gathering information about the problem and then setting the problem consciously aside until an insightful solution to the problem arises.

Question 72

Which of the following make up the three factors that researchers focus on to evaluate the level of creativity in the decision making process?

A)fluency,flexibility,innovation
B)agility,fluency,originality
C)fluency,flexibility,originality
D)originality,agility,innovation

Question 73

Experts make decisions in the intuitive decision-making models based on

A)climate.
B)mood.
C)experience.
D)analysis.

Question 74

The incubation step in the creative decision-making process refers to

A)the step where the decision maker consciously thinks about the problem.
B)the step where the decision maker sets the problem aside and does not consciously think of it.
C)the step where the decision maker gains insight into the problem and has a "eureka" moment.
D)the step where the decision maker verifies the feasibility of the solution and implements the decision.

Question 75

The creative decision-making process

A)describes a series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice.
B)recognizes the limitations of decision making processes by having individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search of alternatives.
C)refers to arriving at decisions without conscious reasoning,arguing that experts make decisions by scanning the environment for cues to recognize patterns.
D)refers to arriving at decisions after first gathering information about the problem and then setting the problem consciously aside until an insightful solution to the problem arises.

Question 76

When the goal of the decision making exercise is to make a satisfactory decision with time,you should utilize

A)the rational decision-making model.
B)the intuitive decision-making model.
C)the bounded rationality decision-making model.
D)the creative decision-making model.

Question 77

Anita finishes her college semester on April 15.She will be home from April 15 until May 20 when she is scheduled to have her wisdom teeth removed.She will be going on a family vacation during the third week in July and will be returning to school on August 10 for majorette camp.Anita is looking for a job for the summer.She figures she will take the first job that pays minimum wage and will allow her flexibility for her dental appointment and vacation.Anita is making a decision using the

A)rational decision-making model.
B)bounded rationality decision-making model.
C)intuitive decision-making model.
D)creative decision-making model.

Question 78

To satisfice is to

A)generate new ideas that are original,fluent and flexible.
B)set parameters against which all of the potential options can be evaluated.
C)accept the first alternative that meets your general criteria.
D)be influenced by the way in which problems are framed.

Question 79

Which of the following is the correct order of the phases in the creative decision-making model?

A)Problem identification,incubation,immersion,illumination,verification and application.
B)Problem identification,immersion,incubation,illumination,verification and application.
C)Problem identification,illumination,immersion,incubation,verification and application.
D)Problem identification,illumination,incubation,immersion,verification and application.

Question 80

Which of the following is an unrealistic assumption made in the rational decision making model?

A)People often don't understand the decision to be made.
B)People know few of their available choices.
C)People want to make optimal decisions.
D)People have perceptual biases.