Deck 10: Decision Making by Individuals and Groups

Question 1

Intuition would be a major part of the input for a manager making which kind of decision?

A) Decisions on work schedules
B) Routine decision
C) A decision with an established decision rule
D) Nonprogrammed decision

Answer 1

D

Question 2

Which of the following best represents the three reasons why managers may hang on to a losing course of action or escalate their commitment?

A) Internal locus of control, cognitive dissonance, and overly optimistic
B) Cognitive dissonance, overly optimistic, and illusion of control
C) External locus of control, overly optimistic, and cognitive dissonance
D) Internal locus of control, cognitive dissonance, and illusion of control

Answer 2

B

Question 3

Which of the following is an effective way of managing decisions in order to avoid escalation of commitment?

A) Don't split the responsibility for decisions about projects.
B) Punish people who admit to poor decisions.
C) Don't allow graceful exits from poor decisions.
D) Have groups rather than individuals make initial investment decisions.

Answer 3

D

Question 4

When GM continued with a cost cutting strategy that streamlined their operations and focused on SUVs and trucks while losing 82 billion dollars they most likely reflected:

A) risk aversion.
B) escalation of commitment.
C) entrapment.
D) the gambler's fallacy.

Question 5

The model of bounded rationality was first proposed by .

A) Victor Vroom
B) Phillip Yetton
C) Herbert Simon
D) Carl Jung

Question 6

According to research, which of the following decision-making models portrays the managerial decision process more realistically?

A) The rational model
B) The garbage can model
C) The bounded rationality model
D) The incremental model

Question 7

Continuing to support a failing course of action is known as:

A) the theory of sunk costs.
B) the Z problem solving model.
C) conflicted reason theory.
D) escalation of commitment.

Question 8

Under the bounded rationality model of problem solving and decision making:

A) managers follow statistical rules for decision making.
B) managers critically view the world as complex and multivariate.
C) managers generate a wide array of decision options and select the one that meets all decision criteria.
D) managers are comfortable making decisions without identifying all options.

Question 9

Which of the following is NOT one of the explanations for the escalation of commitment?

A) Cognitive dissonance theory
B) Optimism
C) Illusion of control
D) High or low self-monitoring

Question 10

Recent research investigating the characteristics that make an individual more likely to de-escalate from a course of action concluded that:

A) individuals with a strong dislike for inconsistency are more likely to de-escalate.
B) individuals whose past decisions failed are more likely to de-escalate.
C) individuals with an external locus of control are more likely to de-escalate.
D) individuals with high self-esteem are more likely to de-escalate.

Question 11

The final step in the decision-making process is:

A) implementation.
B) exploring alternatives.
C) feedback and monitoring.
D) selecting a course of action.

Question 12

Which of the following is an example of a programmed decision situation?

A) Arranging financing for constructing a new $50 million office building
B) Reorder of raw materials from an established supplier
C) Purchase of a new mainframe computer
D) A firm's purchase consideration of a parts manufacturer

Question 13

Research indicates that women are:

A) less averse to risk than men.
B) more averse to risk than men.
C) the same as men with respect to risk aversion.
D) more inclined to commit resources to a losing course of action than men.

Question 14

Heuristics are:

A) algorithms based on complex decision making.
B) complex decision rules used in complex situations.
C) shortcuts in decision making that save mental activity.
D) mathematical approaches to decision making.

Question 15

An important element of the bounded rationality model is .

A) certainty
B) satisficing
C) unlimited information search
D) optimizing

Question 16

GM CEO Rick Wagoner stuck to a cost cutting strategy that streamlined GM's operations and focused on SUVs and trucks during a time when other automakers saw promise in the green movement. This behavior best reflects:

A) satisficing.
B) risk aversion.
C) escalation of commitment.
D) the garbage can model of decision making.

Question 17

The rational model of decision making assumes:

A) preferences of the decision maker are inconsistent.
B) that all possible alternatives can't be known to decision makers.
C) that outcomes can't be optimized.
D) that the decision maker can calculate the probability of success for alternatives.

Question 18

The initial step in a problem solving, decision situation is:

A) problem recognition.
B) data analysis.
C) generation of alternatives.
D) feedback.

Question 19

All of the following are characteristics of a nonprogrammed decision situation except:

A) complex.
B) routine.
C) unstructured.
D) new.

Question 20

In the rational model, the decision maker strives to:

A) satisfice.
B) optimize.
C) select the alternative agreeable to the majority.
D) apply a heuristic.

Question 21

The first step in the Z problem solving model uses which of the following to gather information about the problem?

A) Feeling
B) Sensing
C) Intuiting
D) Thinking

Question 22

Which of the following is NOT considered to be an individual prerequisite for participation and empowerment?

A) Capability for psychological involvement
B) Motivation to act autonomously
C) Increased complexity of the tasks to be carried out
D) Ability to see relevance for one's own well being

Question 23

Participative decision making tends to be associated with:

A) interpersonal rivalry within a group.
B) less creativity among employees.
C) rapid decision making.
D) higher levels of employee job satisfaction.

Question 24

Research has indicated that creative performance is highest when:

A) employees are rewarded for being logical during decision making.
B) an organization encourages employees to strive for practicality.
C) individuals avoid problems outside their expertise for fear of being punished.
D) there is a fit between an individual and organizational influences on creativity.

Question 25

The fourth step in the Z model of problem solving is:

A) data collection.
B) problem diagnosis.
C) impact analysis.
D) objective analysis of alternatives.

Question 26

The stage of creativity where one engages in other activities while the mind considers a problem and works on it is _____.

A) preparation
B) illumination
C) incubation
D) testing

Question 27

Responsive creativity is:

A) discovering problems because you want to be creative.
B) discovering problems because you are expected to by the organization.
C) responding to problems presented to you because you want to be creative.
D) responding to a problem that is presented to you by others because it is part of your job.

Question 28

Searching for the right answer and avoiding problems outside of one's own expertise would be considered an examples of a(n) .

A) mental lock
B) rigid cognitive structure
C) mental block
D) inflexible mind map

Question 29

The research conducted by Henry Mintzberg regarding intuition and managerial roles suggests that:

A) managers rarely use intuition.
B) in most cases managers use a systematic step-by-step approach to decision making.
C) managers make judgments based on hunches.
D) intuition has not been shown to be very effective as an antidote to over analysis.

Question 30

An organization should practice or provide all of the following except

A) close supervision
B) participative decision making
C) peer support _{d. flexible organizational structure}
If it wants to encourage employee

Question 31

An individual's preferred method for gathering information and evaluating alternatives is known as .

A) cognitive style
B) mental maps
C) thinking script
D) escalation of commitment

Question 32

Which of the following types of activities or decisions is the right side of the brain best used for?

A) Flowcharting work processes
B) Developing strategic plans
C) Planning day-to-day operations
D) Making tax preparations

Question 33

An incorrect assumption about the use of intuition in making decisions is that:

A) it is seldom a positive force.
B) it is fast or leads to quick decisions.
C) it involves learned patterns of information.
D) it is an elusive concept and one with many definitions.

Question 34

In the consideration of whether the right or the left part of the brain should be utilized in decision making, the ideal situation is to be:

A) right brain dominant.
B) left brain dominant.
C) brain-neutralized.
D) brain-lateralized.

Question 35

Research on intuition, suggests all of the following can be techniques used by managers to tap into their intuition except:

A) practicing relaxation techniques.
B) using images to guide the mind.
C) taking creative pauses before making a decision.
D) using decision heuristics and satisficing.

Question 36

Research on the impact of moods on tasks that involve considerable cognitive demands suggests that:

A) positive moods result in better performance.
B) negative moods result in better performance.
C) a person's mood doesn't really make a difference on his or her tasks.
D) there is a curvilinear relationship between mood and tasks requiring high cognitive demands.

Question 37

In the context of types of creativity, which of the following is NOT a type of creativity?

A) Responsive
B) Expected
C) Contributory
D) Reactive

Question 38

Which of the following does NOT boost creative abilities or creativity?

A) Breadth of interests
B) Self-confidence
C) Fear of failure
D) Intellectual and artistic values

Question 39

A key organizational requirement for participation in decision making includes:

A) organizational politics.
B) a workforce consisting of individuals with low self-esteem.
C) a supportive organizational culture.
D) people with individual motivation.

Question 40

Step one of the Z model uses to gather information.

A) sensing
B) intuiting
C) thinking
D) feeling

Question 41

A group decision technique that facilitates expert input by using a panel of experts is .

A) the nominal group technique
B) dialectical inquiry
C) brainstorming
D) the Delphi technique

Question 42

Which of the following is a characteristic of quality teams?

A) They provide advice to managers who still retain decision-making authority.
B) They operate in parallel fashion to an organization's structure.
C) They emphasize the generation of ideas.
D) They make data-based decisions about improving products.

Question 43

Heuristics are shortcuts in decision making that save mental activity.

Question 44

_{51. As a project group leader, you have recognized the benefits of conflict and some disagreement among project} members in solving difficult problems. Accordingly, you are most likely to use technique.

A) nominal group techniques
B) brainstorming
C) devil's advocacy
D) dialectical inquiry

Question 45

Satisficing means selecting the first alternative that is "good enough," because the costs in time and effort are too
great to optimize.

Question 46

An antidote for groupthink in self-managed teams is:

A) brainstorming.
B) the use of nominal groups.
C) welcoming dissent.
D) the Delphi technique.

Question 47

A good group decision approach when the objective is to maximize the number of alternatives is:

A) brainstorming.
B) dialectical inquiry.
C) the Delphi technique.
D) nominal grouping.

Question 48

Which of the following would NOT be considered a symptom of groupthink?

A) Illusion of invulnerability
B) Rationalization
C) Illusion of unanimity
D) High conflict

Question 49

The social comparison approach and persuasive arguments view have both been used to explain:

A) groupthink.
B) group polarization.
C) cognitive dissonance.
D) bounded rationality.

Question 50

Women and experienced managers tend to be more averse to risk taking.

Question 51

A deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressures defines _____.

A) group polarization
B) groupthink
C) the risky shift
D) the recency effect

Question 52

Recent research on group versus individual decisions suggests that:

A) individuals will outperform groups on judgement tasks.
B) individuals outperform groups in all conditions.
C) groups outperform individuals in tasks that have a correct solution.
D) groups outperform individuals when the group members have worked together for longer periods of time.

Question 53

Formulating a set of decision rules for making inventory reordering decisions is an example of programmed decision making.

Question 54

Recent research examining the effects of cultural diversity on decision making has found that when individuals in a group are racially dissimilar:

A) they engage in less open information sharing.
B) they engage in behavior that discourages dissenting perspectives.
C) they arrive at better decisions than racially similar groups
D) they tend to take decisions faster than racially similar groups.

Question 55

A structured approach to decision making that focuses on generating alternatives silently, prevents criticism of alternatives, and uses a voting process to identify group choices is:

A) the Delphi technique.
B) dialectical inquiry.
C) the nominal group technique.
D) devil's advocacy.

Question 56

An approach to minimize groupthink is to:

A) manipulate group members in order to increase peer pressure.
B) encourage rationalization.
C) denigrate the opposition.
D) re-examine the preferred solution even if consensus has been reached.

Question 57

Group polarization results in:

A) group members moving from extreme attitudes toward more moderate attitudes.
B) group members driving decisions toward consensus.
C) the tendency for group discussion to produce shifts toward more extreme attitudes among members.
D) groupthink.

Question 58

Given the assumptions of the rational model, it is unrealistic.

Question 59

High cohesiveness, directive leadership, and high stress are antecedent conditions for:

A) a low quality group decision.
B) group polarization.
C) groupthink.
D) satisficing.

Question 60

Problem finding and recognition is an important early step in decision making.

Question 61

Enumerate the steps in the decision making process.

Question 62

A review of the research on intuition suggests that while intuition cannot be taught, managers can be trained to rely more fully on the prompting of their intuition.

Question 63

According to research, managers are predisposed to use a more systematic approach to decision making that is consistent with the rational model.

Question 64

Group decision making may be slow, but it usually produces good decisions.

Question 65

In groups, participants engage in discussions that can make them lose their focus.

Question 66

Expected creativity is discovering problems because the organization expects you to do so.

Question 67

Research suggests that individuals may be more prone to escalation of commitment than groups.

Question 68

Research has shown that individuals can be trained to be more creative.

Question 69

The tendency to continue to support a failing course of action is known as consistency theory.

Question 70

A method to prevent groupthink is to bring in outside experts to evaluate the group process.

Question 71

Evidence suggests that group brainstorming is less effective than a comparable number of individuals working alone.

Question 72

Time constraints don't prevent managers from using group decision techniques.

Question 73

Research has shown that in most cases higher management positions are not held by individuals with higher levels of intuition.

Question 74

Describe the bounded rationality model of decision making.

Question 75

Optimism is one of the reasons for escalation of commitment.

Question 76

It is rightly assumed that creativity is a thing you either have or you do not.

Question 77

What are the individual and organizational influences that induce creativity?

Question 78

Illusions of unanimity is considered to be a symptom of groupthink.

Question 79

A large municipality that houses 250,000 citizens is trying to decide where to locate a new community recreational center. The problem is relatively unstructured. There is a decision quality requirement that is significant. Not one person has sufficient information and many community groups may desire to provide input. Opportunity for conflict exists between groups and neighborhoods competing for the center. If one person (city manager) makes the decision, many people may not be strongly committed to making the center successful. Would an individual or group be most useful for this decision? Please justify your answer.

Question 80

The closer a project is to completion the more likely escalation of commitment is to occur.