Deck 9: Decision Making and Creativity

Question 1

Unfortunately, formal crisis management programs are decreasing in popularity in organizations.

Answer 1

False

Question 2

Examples of nonprogrammed decisions include reordering inventory automatically when stock falls below a predetermined level and issuing a written reprimand to someone who violates a specific work rule.

Answer 2

False

Question 3

Nonprogrammed decisions are created to deal uniquely with a problem at hand.

Answer 3

True

Question 4

Nonprogrammed decisions are made as standardized responses to recurring situations and routine problems.

Question 5

The justice criteria ask if the decision satisfies all constituents or stakeholders.

Question 6

Acts of terrorism and workplace violence are examples of nonprogrammed decisions.

Question 7

Programmed decisions address routine problems that arise on a regular basis and for which standard solutions have been derived.

Question 8

When a crisis occurs, managers should disregard skeptics as these people foster disagreement and lack of commitment.

Question 9

An example of a nonprogrammed decision is when a senior marketing manager of ABC who has to respond to the introduction of a new product by a foreign competitor in a new country where ABC also is entering.

Question 10

Decision-Making choices usually have a moral dimension that might be overlooked.

Question 11

The behavioral decision model is a five-step process that starts with recognition and definition of the problem or opportunity, and ends with evaluation of results and any needed follow-up.

Question 12

Uncertain environments exist when information is sufficient to predict the results of each alternative in advance of implementation.

Question 13

The most extreme type of programmed decision is the crisis decision.

Question 14

Decisions in organizations are typically made under three different conditions or environments: certainty, jeopardy, and skepticism.

Question 15

Heuristics is the process of choosing a course of action for dealing with a problem.

Question 16

Certainty is a less than ideal condition for managerial problem solving and decision-making.

Question 17

Teams may suffer from lack of participation error in the stage of decision-making where alternative courses of action are identified and analyzed.

Question 18

Programmed decisions implement solutions that have already been determined by past experience as appropriate for the problem at hand.

Question 19

A moral problem is defined as a situation in which a decision-maker faces two or more ethically uncomfortable alternatives.

Question 20

The utility question asks if the decision respects the rights and duties of everyone.

Question 21

Crisis environments exist when decision makers lack complete certainty regarding the outcomes of various courses of action, but they are aware of the probabilities associated with their occurrence.

Question 22

Behavioral scientists are cautious about applying classical decision theory to many decision situations because they recognize that human beings have cognitive limitations that restrict their information-processing capabilities.

Question 23

When dealing with risk environments, probabilities are assigned through objective statistical procedures rather than intuition.

Question 24

Optimizing refers to the idea that, while individuals reason well and are logical, they have their limits with respect to interpreting and making sense of things within the context of their personal situations.

Question 25

According to Herbert Simon, most human decision making, whether individual or organizational, is concerned with the discovery and selection of satisfactory alternatives; only in exceptional cases is it concerned with the discovery and selection of optimal decisions.

Question 26

Risk management focuses on anticipating risk in situations and factoring risk alternatives into the decision-making process.

Question 27

The behavioral decision model allows for an optimizing decision that gives the absolute best solution to the problem.

Question 28

In the classical decision model, the manager faces a clearly defined problem, knows all possible action alternatives and their consequences, and then chooses the alternative that offers the optimum solution to the problem.

Question 29

In the classical decision model, the problem is not clearly defined, knowledge of possible action alternatives and their consequences is limited, and the manager chooses a satisfactory solution to the problem.

Question 30

Behavioral decision theory models view the manager as acting in a world of complete certainty.

Question 31

Responses to uncertain environments seldom involve intuition, educated guesses, or hunches.

Question 32

Classical decision theory models accept the notion of bounded rationality and suggest that people act only in terms of what they perceive about a given situation.

Question 33

Threats to a brand or the firm's reputation are referred to as reputation risks.

Question 34

Bounded rationality is choosing the first alternative that appears to give an acceptable or satisfactory resolution of the problem.

Question 35

Of the three decision-making environments uncertainty, certainty, and risk), risk environments are the most difficult for decision makers.

Question 36

Behavioral decision theory models view the manager as acting in a world of complete certainty.

Question 37

Classical decision theory appears to fit very well in today's chaotic world of globalizing high-tech organizations.

Question 38

Certain environments exist when managers have so little information that they cannot even assign probabilities to various alternatives and their possible outcomes.

Question 39

Intuition adds elements of flexibility and spontaneity to decision-making, thereby offering potential for creativity and innovation.

Question 40

A key element in decision-making under risk and uncertainty is intuition.

Question 41

The availability heuristic involves assessing a current event based on past occurrences that are easily available in one's memory.

Question 42

What is the first step in the rational decision model?

A) Choosing a preferred course of action
B) Recognizing and defining the problem or opportunity
C) Identifying the alternative courses of action
D) Evaluating the results
E) Implementing the preferred course of action

Question 43

Which of the following is NOT one of the five basic steps involved in the rational decision model?

A) Recognize and define the problem or opportunity
B) Identify and analyze alternative courses of action, and estimate their effects on the problem or opportunity
C) Choose a preferred course of action
D) Conduct a stakeholders needs analysis
E) Implement the preferred course of action

Question 44

Which of the following is Cavanagh's utility question for assessing ethics in Decision-Making?

A) Does the decision satisfy all constituents or stakeholders?
B) Does the decision respect the rights and duties of everyone?
C) Is the decision consistent with the canons of justice?
D) Is the decision consistent with my responsibilities to care?
E) None of the above.

Question 45

When a decision maker faces two or more ethically uncomfortable alternatives, it is referred to as a ________.

A) criteria question
B) moral dilemma
C) justice decision
D) moral problem
E) rational decision

Question 46

Judgment, or the use of one's intellect, is important in all aspects of decision-making.

Question 47

An example of the application of the anchoring and adjustment heuristic is when Jason, an HR manager at ABC Manufacturing selects a new member not because of any special qualities of the person, but only because the individual comes from a college known to have produced high performers in the past.

Question 48

Switching members among teams to gain insights from diverse backgrounds and experiences is known as associative play.

Question 49

__________ decisions are specifically crafted or tailored to the situation at hand.

A) Ad hoc
B) Discretionary
C) Nonprogrammed
D) Arbitrary
E) Elective

Question 50

Which of the following is NOT one of Cavanagh's criteria questions for assessing ethics in decision-making?

A) Does the decision satisfy all constituents or stakeholders?
B) Does the decision respect the rights of everyone?
C) Is the decision consistent with the canons of justice?
D) Does the decision make sense?
E) Is the decision consistent with my responsibility to care?

Question 51

The representativeness heuristic bases a decision on similarities between the situation at hand and stereotypes of similar occurrences.

Question 52

__________ are routine problems that arise on a regular basis and which can be addressed through standard responses.

A) Arbitrary decisions
B) Nonprogrammed decisions
C) Fixed decisions
D) Programmed decisions
E) Standardized decisions

Question 53

A decision is exposed to public scrutiny and forces decision-makers to consider it in the context of full transparency with the use of __________.

A) rational decision-making
B) spotlight questions
C) satisficing
D) moral dilemmas
E) criteria questions

Question 54

Teams engaged in systematic thinking would be expected to make a plan before taking action.

Question 55

Examples of __________ decisions include reordering inventory automatically when stock falls below a predetermined level and issuing a written reprimand to someone who violates a specific work procedure.

A) uniform
B) standardized
C) programmed
D) fixed
E) nonprogrammed

Question 56

The lack-of-participation error occurs in which phase of the rational decision model?

A) evaluating results
B) identifying alternatives
C) implementing preferred course of action
D) choosing a preferred course of action
E) recognizing the problem

Question 57

Creativity is more likely to occur when a person has little task expertise.

Question 58

Optimizing decisions are simplifying strategies or "rules of thumb" used to make decisions.

Question 59

The process of choosing a course of action for dealing with a problem or opportunity is __________.

A) representativeness heuristic
B) information-processing
C) decision-making
D) judgment resolution
E) opportunity analysis

Question 60

Which of the following is considered to be a spotlight question as mentioned in the text?

A) What might my friend do if he was in a similar situation as me?
B) How would I feel if my family found out about this decision?
C) If I make this decision, will I be able to sleep at night?
D) Would most other people in society make the same decision as I would?
E) None of the above.

Question 61

Behavioral scientists are cautious about applying classical decision theory to many decision situations because they recognize that human beings have __________ limitations that restrict their information-processing capabilities.

A) sociological
B) cognitive
C) subjective
D) emotional
E) psychological

Question 62

KPMG's practice that focuses on helping executives identify threats to their firm and manage them is known as __________.

A) operational risk
B) enterprise risk management
C) strategic management
D) uncertainty avoidance management
E) reputation risk management

Question 63

__________ is an ideal condition for managerial problem solving and decision-making.

A) Certainty
B) Risk
C) Uncertainty
D) Turbulence
E) Chaos

Question 64

Which of the following is consistent with the rational model where a decision is approached in a step-by-step and analytical fashion?

A) Scientific thinking
B) Strategic thinking
C) Systematic thinking
D) Irrational thinking
E) Satisficing

Question 65

What are simplifying strategies or "rules of thumb" used to make decisions?

A) Hindsight
B) Disciplines
C) Regulations
D) Codes
E) Heuristics

Question 66

Which type of environments exists when managers have so little information that they cannot even assign probabilities to various alternatives and their possible outcomes?

A) Uncertain
B) Risk
C) Unpredictable
D) Jeopardy
E) Hazard

Question 67

Which model views decision makers as acting in a world of complete certainty?

A) Behavioral decision
B) True decision
C) Cognitive decision
D) Classical decision
E) Aesthetic decision

Question 68

All of the following statements about uncertain environments are correct EXCEPT:

A) uncertain environments provide little, if any, information to predict expected results for decision-making alternatives.
B) behavioral responses to uncertain environments seldom involve intuition, educated guesses, or hunches.
C) uncertain environments require unique, novel, and often totally innovative alternatives to existing patterns of behavior.
D) an uncertain decision environment may be characterized as a rapidly changing organizational setting in terms of external conditions.
E) an uncertain decision environment may be characterized as a rapidly changing organizational setting in terms of the personnel who influence problem and choice definitions.

Question 69

The __________ decision theory model accepts the notion of bounded rationality and suggests that people act only in terms of what they perceive about a given situation.

A) behavioral
B) rational
C) organizational management
D) scientific
E) potential investment

Question 70

Which of these represents a key element in decision-making under risk and uncertainty?

A) Discernment
B) Unrestrained rationality
C) Recognition
D) Intuition
E) Assimilation

Question 71

Which of the following statements pertaining to intuition is incorrect?

A) A key element in Decision-Making under certainty is intuition.
B) Intuition is the ability to know or recognize quickly and readily the possibilities of a given situation.
C) Intuition adds elements of flexibility to Decision-Making.
D) Intuition adds elements of spontaneity to Decision-Making.
E) Intuition offers potential for creativity and innovation.

Question 72

Acts of terrorism and IT failures are examples of which type of decision?

A) Rational decisions
B) Ethical decisions
C) Representative decisions
D) Programmed decisions
E) Crisis decisions

Question 73

Which environment is the most difficult for decision makers to cope with?

A) Risk
B) Certain
C) Expectant
D) Uncertain
E) Statutory

Question 74

__________, or the use of one's intellect, is important in all aspects of Decision-Making.

A) Intuition
B) Attitudinal formation
C) Judgment
D) Perceiving
E) Sensing

Question 75

_________ risks are threats to overall business success.

A) Strategic
B) Operational
C) Financial
D) Reputation
E) Functional

Question 76

When dealing with risk environments, managers may assign __________ by developing strategies and identifying critical risks.

A) potentialities
B) certainty model
C) prospects
D) responsibilities
E) feasibilities

Question 77

Which of the following accepts the notion of bounded rationality and assumes that decision makers act only in terms of what they perceive about a given situation?

A) Behavioral decision theory
B) Perceptive decision theory
C) Cognitive decision theory
D) Classical decision theory
E) Visual decision theory

Question 78

Problem-solving decisions in organizations are typically made under three different conditions or environments. These are __________.

A) confidence, chance, and doubt
B) certainty, risk, and uncertainty
C) conviction, hazard, and concern
D) certainty, jeopardy, and skepticism
E) confidence, hazard, and doubt

Question 79

__________ environments exist when decision makers lack complete certainty regarding the outcomes of various courses of action, but they are aware of the probabilities associated with their occurrence.

A) Jeopardy
B) Hazard
C) Risk
D) Assured
E) Uncertain

Question 80

Which of the following can lead to systematic errors that affect the quality, and perhaps ethical implications, of any decision that is made?

A) Disciplines
B) Regulations
C) Heuristics
D) Rules
E) Codes