Deck 10: Making Decisions

Question 1

People with a directive style of decision making are autocratic,exercise power and control,and focus on the short run.

Answer 1

True

Question 2

Those with an analytical decision-making style foster an idealistic and indecisive approach to decision making.

Answer 2

False

Question 3

The model that holds that decision making is sloppy and haphazard is the bounded rationality model.

Answer 3

False

Question 4

Automated experiences represent a judgment that is based on a subconscious integration of information stored in memory.

Question 5

George has been working frantically past the deadline on a project despite it being declared obsolete by his superiors.This illustrates a confirmation bias.

Question 6

According to Simon's normative model of decision making,managers are completely objective and possess complete information to make a decision.

Question 7

Tacit knowledge is information that can easily be put into words.

Question 8

Research shows that overoptimism significantly influences entrepreneurs' decisions to start and sustain new ventures.

Question 9

The rational model is based on the premise that managers satisfice when they make decisions.

Question 10

Despite criticism for being unrealistic,the rational model of decision making is instructive because it analytically breaks down the decision-making process and serves as a conceptual anchor for newer models.

Question 11

Whether you face a problem or an opportunity,the goal is always the same: to make improvements that change conditions from their current state to more desirable ones.

Question 12

Ivan has decided to buy a Porsche Cayenne and is reading up about why it is an excellent vehicle for his use.He is avoiding any information about possible competitors to the vehicle.He is deciding using an anchoring bias.

Question 13

Intuition is particularly susceptible to the availability and representativeness heuristics,as well as the anchoring,overconfidence,and hindsight biases.

Question 14

Judgmental heuristics are highly useful when people wish to avoid making mistakes during the course of decision making.

Question 15

Viatus Corp.creates detailed manuals to share the knowledge of its crop modification procedures among employees.They are said to be sharing tacit knowledge.

Question 16

Managers acquire explicit knowledge by having considerable experience at the same task or job.

Question 17

According to Simon's normative model,managerial decision making is characterized by unlimited information processing.

Question 18

According to research,most managers have characteristics that fall into two or three decision-making styles.

Question 19

Intuition always slows down the decision-making process.

Question 20

When people estimate the probability of an event occurring,they use the availability heuristic.

Question 21

_____ involves solving problems by producing the best possible solution.

A) Anchoring
B) Bounded rationality
C) Satisficing
D) Intuiting
E) Optimizing

Question 22

Consensus is reached only when all members say they agree with a decision.

Question 23

_____ consists of choosing a solution that meets some minimum qualifications,one that is "good enough."

A) Optimizing
B) Normalizing
C) Satisficing
D) Intuiting
E) Brainstorming

Question 24

The _____ model of decision making attempts to explain how problems,solutions,participants,and choice opportunities interact and lead to a decision.

A) garbage can
B) rational
C) normative
D) contact
E) optimizing

Question 25

Ethical decision making frequently involves trade-offs,and a decision tree helps managers navigate through them.

Question 26

Brainstorming has been successfully used in many different decision-making situations and has been found more effective in generating ideas than a nominal group technique.

Question 27

Research indicates that in the face of environmental threats such as time pressure and the potentially serious effects of a decision,groups have a higher probability of making a bad decision.

Question 28

Years of relevant research suggest that group performance is generally qualitatively and quantitatively superior to the performance of the average individual.

Question 29

Morgan,a manager with T&T,is never happy with "good enough" solutions.He is always looking at finding the best possible solution to the problems in his workplace.Which of the following decision-making traits is Morgan utilizing?

A) Optimizing
B) Brainstorming
C) Rationalizing by set boundaries
D) Satisficing
E) Normalizing

Question 30

Which of the following models is said to be the conceptual anchor for newer models of decision-making?

A) Perceptual model
B) Rational model
C) Normative model
D) Contact model
E) Garbage can model

Question 31

The nominal group technique is useful when face-to-face discussions are impractical,when disagreements and conflict are likely to impair communication,and when groupthink is a probable outcome of the group process.

Question 32

_____ refers to the idea that decision makers are constrained by a variety of factors.

A) Optimizing
B) Representativeness heuristics
C) Bounded rationality
D) Conceptual decision style
E) Escalation of commitment

Question 33

During the incubation phase of creativity,an individual focuses on the problem at hand.

Question 34

Research indicates that daydreaming and Internet leisure browsing increases creativity.

Question 35

The quality of communication does not impact a group's productivity on complex tasks.

Question 36

As a software development project manager,Chang is extremely busy working on new products as well as improving old ones.Given the time crunch,Chang's operational philosophy for problems is to go with a solution that meets his minimum standard of acceptance.Which of the following describes his approach?

A) Escalation of commitment
B) Optimizing
C) Representativeness heuristics
D) Anchoring bias
E) Satisficing

Question 37

Groupthink and logrolling are the advantages of group-aided decision making.

Question 38

Satisficing encourages effective group decision making.

Question 39

The first step in the rational model of decision making is to:

A) decide whether to optimize or satisfy.
B) generate alternatives.
C) evaluate the restrictions and resources.
D) consider the personal characteristics.
E) identify the opportunity.

Question 40

The gap between an actual and desired situation creates:

A) heuristics.
B) satisficers.
C) problems.
D) automated experiences.
E) directives.

Question 41

Mike watches the stock market very closely at the beginning of every year.He believes that there is a 90 percent chance the market will go up and end on a higher note at the end of year if,for each of the first six sessions of a new year,the market closes on a positive.Mike's belief is based on the trends he has seen in the past two years.This is an example of a(n):

A) representativeness heuristic.
B) escalation of commitment.
C) availability heuristic.
D) anchoring bias.
E) confirmation bias.

Question 42

Which of the following represents pitfalls associated with using judgmental heuristics in decision making?

A) It leads to a huge increase in information-processing demands.
B) It leads to systematic errors that erode the quality of decisions.
C) It is used without conscious awareness.
D) It increases the uncertainty inherent in the decision-making process.
E) It helps decision makers to evaluate current problems.

Question 43

The tendency to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed refers to:

A) escalation of commitment bias.
B) anchoring bias.
C) framing bias.
D) hindsight bias.
E) overconfidence bias.

Question 44

In a complex context,decision makers:

A) use a rational model,gather information,categorize it,and respond in an established way.
B) do not always see a clear relationship between cause-and-effect and find multiple solutions effective.
C) do not see a pattern as cause-and-effect relationships are changing quickly.
D) do not understand cause-and-effect relationships as there are many unknowns.
E) have stable cause-and-effect relationships which allow for the best answer to be discerned.

Question 45

The _____ represents a decision maker's tendency to base decisions on information that is readily available in memory.

A) escalation of commitment
B) representative heuristic
C) hindsight bias
D) overconfidence bias
E) availability heuristic

Question 46

Tony has been a consistently below-average performer in his role at Atlantis.However,over the last five months,he has been performing well.His manager,Rick,gives him a positive evaluation on the basis of his excellent performance over the last few months.This is called:

A) confirmation bias.
B) anchoring bias.
C) recency effect.
D) primacy effect.
E) tolerance for ambiguity.

Question 47

Claudia works at an advertising firm,Le Monde.The company has unplanned evaluations once a month by their chief executive officer.She chooses to come in an hour late and happens to have been the only employee that is late on that particular day,also the day when the inspection happens.She later says "I had a feeling this would happen." She is influenced by a(n):

A) escalation of commitment bias.
B) framing bias.
C) hindsight bias.
D) overconfidence bias.
E) anchoring bias.

Question 48

A _____ context refers to one that is stable and where clear cause-and-effect relationships can be discerned so the best answer can be agreed on.

A) simple
B) complex
C) complicated
D) chaotic
E) disordered

Question 49

Which of the following is a decision-making context,where a clear cause-and-effect relationship is not easily seen,and multiple solutions may be effective?

A) Complex
B) Simple
C) Complicated
D) Chaotic
E) Biased

Question 50

Six months after starting an event management company,Dynamo,with a partner,Jenny finds that projections of revenue are significantly lower and the future projections are also bleak.To alleviate the situation,Jenny invests another $25,000 from her savings into the venture.She may be affected by a(n):

A) overconfidence bias.
B) confirmation bias.
C) escalation of commitment bias.
D) hindsight bias.
E) framing bias.

Question 51

In a _____ context,there is one right answer but decision makers do not understand cause-and-effect relationships as there are many unknowns.

A) complex
B) simple
C) complicated
D) chaotic
E) normative

Question 52

The availability heuristic:

A) can cause individuals to overestimate the occurrence of unlikely events.
B) leads individuals to seek information that fits their point of view and to discount information that does not.
C) leads to initial information,impressions,data,feedback,or stereotypes anchoring subsequent judgments and decisions.
D) can make knowledge of an outcome influence beliefs about the probability that we could have predicted the outcome earlier.
E) creates a tendency to consider risks about gains differently than risks pertaining to losses.

Question 53

People with a(n)_____ style have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions.

A) analytical
B) directive
C) conceptual
D) behavioral
E) anchoring

Question 54

Dino decides to open a grooming studio for pets and also an exclusive resort for pets and their owners in the Philippines,as part of his company's expansion plans.His belief that the venture will bring huge revenues to the company is probably influenced by a(n)_____ bias.

A) framing
B) hindsight
C) overconfidence
D) anchoring
E) escalation of commitment

Question 55

Matt is a developer working with Code,Inc.Based on his experience in developing a code for a project,he estimated that he would be able to deliver a new project within 10 days.He is making use of the _____ heuristic.

A) availability
B) representativeness
C) overconfidence
D) hindsight
E) anchoring

Question 56

Which of the following statements is true of the garbage can model of decision making?

A) It is least pronounced in industries that rely on science-based innovations such as pharmaceutical companies.
B) Decisions are made by oversight or by the presence of a salient opportunity.
C) It assumes that decision making follows an orderly series of steps.
D) Political motives seldom influence participants' decisions.
E) Important problems are less likely to be solved than unimportant ones.

Question 57

Juan is heading an NGO called "Across the Chasm" for juvenile delinquents.He approaches every problem by gathering internal and external data about a problem at hand.He then adds to it the views he has gathered through an online poll from the public and employees of the NGO before making a final decision.He is using the _____ model.

A) rational
B) garbage can
C) judgmental heuristics-based
D) evidence-based decision making
E) intuition-based decision making

Question 58

Which of the following contexts requires decision makers to act first to establish order and then find areas where it is possible to identify patterns?

A) Normative
B) Chaotic
C) Complicated
D) Complex
E) Simple

Question 59

Verity is at a used car showroom.She keeps looking at a particular car,the odometer reading,the color,and the year of the car.She does not consider the condition of the engine or the transmission before buying a vehicle.She is most likely influenced by a(n):

A) escalation of commitment bias.
B) overconfidence bias.
C) anchoring bias.
D) framing bias.
E) hindsight bias.

Question 60

Which of the following is a reason why evidence-based decision-making processes are hard?

A) The organization is treated as an unfinished prototype.
B) It involves bragging and downplaying the facts.
C) The side effects outweigh the cure.
D) It does not look at why people fail.
E) It is solely for senior executives of a company.

Question 61

_____ involve(s)"making remote associations" between unconnected events,ideas,and information stored in memory,or physical objects.

A) Creativity
B) Intuition
C) Feelings
D) Satisficing
E) Optimizing

Question 62

According to Harvard Business School professor,Constance Bagley,a(n)_____ can help managers to make more ethical decisions.

A) decision tree
B) intuitive choice
C) rational model
D) normative model
E) peer environment

Question 63

Which of the following is one of the "do's" for successfully arriving at a consensus among group members?

A) Satisfice rather than optimize
B) Involve as few members as possible
C) Seek out the reasons behind arguments
D) Agree just to avoid rocking the boat
E) Horse trade

Question 64

Which of the following statements is true of intuition in decision making?

A) It is more important than rational analysis.
B) A holistic hunch represents a choice that is based on a conscious integration of information.
C) Intuitive processes are always automatic,involuntary,and mostly effortless.
D) Intuitive processes are influenced by two sources: expertise and feelings.
E) Intuition is not subject to the same biases associated with rational decision making.

Question 65

The four decision-making styles are:

A) directive,analytical,conceptual,and behavioral.
B) rational,normative,intuitive,and perceptive.
C) assertive,aggressive,non-assertive,and instinctive.
D) appreciative,evaluative,discerning,and empathetic.
E) holistic,automated,tacit,and explicit.

Question 66

Dmitri is the most senior researcher at Viatus Corp.He likes to make his decisions quickly and always wants to see people working on projects that yield tangible results.He looks at short-term goals and likes having control over how things are run.He can be described as having which decision-making style?

A) Directive
B) Analytical
C) Conceptual
D) Behavioral
E) Perceptual

Question 67

Which of the following is a disadvantage of group-aided decision making?

A) Logrolling
B) Greater pool of knowledge
C) Greater comprehension
D) Training ground
E) Increased acceptance

Question 68

Which of the following is NOT a stage of the creative process?

A) Illumination
B) Incubation
C) Preparation
D) Concentration
E) Refutation

Question 69

Which of the following statements is MOST true of group-aided decision making?

A) Managers should promote groupthink in group-aided decision making.
B) Group-aided decision making is not a training ground for younger employees.
C) In case of time constraints,it is always wiser to use group-aided decision making.
D) On complex tasks,communication competence becomes insignificant and does not affect competency.
E) In case of potentially serious decisions,the probability of groups making a poor choice is higher.

Question 70

From her gut feeling,derived from having worked 30 years as an HR recruiter,Phoebe knows that hiring Vladimir would be a bad idea.When asked,she cannot explain her strong feeling.What kind of knowledge is this?

A) Shared
B) Explicit
C) Cultural
D) Tacit
E) Conceptual

Question 71

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

A) Social pressure
B) Goal displacement
C) Different perspectives
D) Groupthink
E) Logrolling

Question 72

A _____ is a graphical representation of the process underlying decisions,and it shows the resulting consequences of making various choices.

A) rational model
B) Markov chain
C) decision tree
D) garbage can model
E) normative model

Question 73

Which of the following approaches is good for fostering creativity in the organizational context?

A) Employees at Multiplicity,Inc.,work through extremely tight deadlines.
B) At Mindgames Limited,employees are told to avoid risky behavior.
C) Delta LLC,a software firm,encourages employees to participate in paper presentations.
D) Gamer LLC has a very challenging work culture where every individual works for personal success above all else.
E) DirectMail is an Internet service provider that has clear-cut rules and regulations and frowns upon risk-taking behavior in its employees.

Question 74

_____ style of decision-making has a much higher tolerance for ambiguity and is characterized by the tendency to overanalyze a situation.

A) Conceptual
B) Directive
C) Behavioral
D) Analytical
E) Normative

Question 75

With reference to decision-making styles,which of the following statements is true?

A) People with a directive decision-making style are more concerned with social aspects of a situation.
B) People with a behavioral decision-making style are more focused on the task and technical concerns associated with it.
C) People with an analytical decision-making style have a low tolerance for ambiguity.
D) People with an analytical decision-making style tend to make decisions faster than those with a directive decision-making style.
E) People with a conceptual decision-making style tend to be idealistic and are indecisive in their decision-making approach.

Question 76

Which of the following is true of brainstorming?

A) Idea generation in the group occurs loudly.
B) Groups focus on a limited number of ideas.
C) The aim is quality over quantity.
D) Evaluating solutions is not appropriate.
E) There are multiple interruptions and criticism.

Question 77

People with a(n)______ decision-making style adopt a long-term perspective and rely on intuition and discussions with others to acquire information.

A) conceptual
B) cultural
C) analytical
D) behavioral
E) directive

Question 78

Tobit is a careful decision maker.He likes ambiguous situations and is comfortable when dealing with something new or uncertain.He can be described as having a(n)_____ style of decision-making.

A) behavioral
B) analytical
C) directive
D) conceptual
E) perceptual

Question 79

People with a(n)_____ style of decision making are efficient,logical,practical,and systematic in their approach to solving problems.

A) conceptual
B) intuitive
C) analytical
D) behavioral
E) directive

Question 80

Caroline is a manager in a medium-sized logistics company,Wings,Inc.She always makes it a point to have long conversations with her colleagues and often knows the little details of their lives.Because of her close involvement with employees,she finds it difficult to handle conflicts or difficult decisions.Her decision-making style is:

A) conceptual.
B) behavioral.
C) directive.
D) analytical.
E) rational.