Question 1

During the last several months, workers' overtime hours have increased by more than 15%. Based on decisions made by plant managers in the past, the current plant manager has decided to hire additional staff. This is an example of

Accepted Answer

A) reasoned judgment. 
B) programmed decision making. 
C) nonprogrammed decision making. 
D) intuition. 
E) the classical model.

Question 2

Capable managers who repeatedly make the same mistakes that lead to poor decisions are making

Accepted Answer

A) dialectical errors. 
B) programmed decisions. 
C) nonprogrammed decisions. 
D) intuitive judgments. 
E) systematic errors.

Question 3

Highly innovative and creative companies tend to

Accepted Answer

A) give employees freedom to experiment and learn. 
B) monitor employees closely. 
C) rely on upper management to make all decisions. 
D) develop rigid guidelines for evaluating ideas. 
E) lack a shared vision.

Question 4

Ashraf wants his company to become a learning organization. What would you advise Ashraf to do to help achieve his goal?

Accepted Answer

A) Create one-size-fits-all training to ensure every employee approaches learning the same way. 
B) Encourage employees to explore personal mental models and challenge them to consider new approaches. 
C) Create a singular focus on team learning rather than on personal mastery. 
D) Establish clear boundaries between teams so decisions can be made without distractions across teams. 
E) Define a rewards program that encourages speed over creativity.

Question 5

Alaina anticipated some controversy getting managers from different functional teams to agree on the best course of action. She convened the managers face-to-face, and after presenting the issue at hand, gave them each 30 minutes to jot down their ideas and solutions. After discussing each idea in turn, each manager ranked the solutions and the one with the highest ranking was selected. Alaina used ________ to facilitate the decision making.

Accepted Answer

A) the Delphi technique 
B) production blocking 
C) brainstorming 
D) the nominal group technique 
E) the illusion of control

Question 6

The manager of the Dairy Barn must decide whether to introduce a new frozen dessert that has not been previously sold. What type of decision would this represent?

Accepted Answer

A) automatic 
B) rule-based 
C) predetermined 
D) nonprogrammed 
E) inconsequential

Question 7

To avoid groupthink and minimize bias, an organization can use ________ to have separate groups of managers propose solutions to a problem before coming together to critique each solution and arrive at an even better option.

Accepted Answer

A) production blocking 
B) devil's advocacy 
C) skunkworks 
D) dialectical inquiry 
E) classical decision making

Question 8

Managers must rely on their ________ to make the best decision when faced with uncertainty and ambiguity.

Accepted Answer

A) intuition and judgment 
B) cognitive biases 
C) bounded rationality 
D) escalating commitment 
E) illusion of control

Question 9

Programmed decision making is a(n)________ process.

Accepted Answer

A) novel 
B) routine 
C) intuitive 
D) ambiguous 
E) creative

Question 10

Once managers have generated a set of alternatives, they must evaluate the pros and cons of each. Identify the four evaluation criteria generally used by successful managers and provide an example where a solution may meet one criteria but not another.

Accepted Answer

The answer of Once managers have generated a set of...

Question 11

The marketing team at TM Co. decides to focus its advertising efforts for a new product on the radio rather than television based on the cost-benefit analysis for each option. After a month, the team reconvenes to review the first month's sales data and radio advertising expenses. This is which step in an effective decision-making process?

Accepted Answer

A) satisficing 
B) implement alternatives 
C) choose alternatives 
D) evaluate alternatives 
E) feedback

Question 12

The marketing manager of ToyBiz indicated that due to manufacturing efficiencies and market buzz, a new toy they were about to launch was likely to generate revenue beyond original projections. The lead designer reported that lab tests showed a risk that the toy could malfunction, possibly injuring a user, but that the design met required industry standards. By deciding to launch the toy as designed, what criterion of decision making were company executives ignoring?

Accepted Answer

A) economic feasibility 
B) practicality 
C) ethicalness 
D) legality 
E) functionality

Question 13

Heuristics are

Accepted Answer

A) errors that people make over and over and that result in poor decision making. 
B) rules of thumb that simplify decision making. 
C) the tendency to base decisions on strong prior beliefs. 
D) a pattern of biased decision making. 
E) the tendency to overestimate one's own ability to control activities and events.

Question 14

Explain how groupthink can override good decision making and problem solving.

Accepted Answer

The answer of Explain how groupthink can override good decision...

Question 15

Stefan has been tasked with deciding how best to improve his company's manufacturing process. Why should Stefan assemble a team and approach the decision as a group rather than going it alone?

Accepted Answer

A) He will be able to draw on the combined skills, competencies, and accumulated knowledge of group members to make the best decision. 
B) He can save time by pursuing the decision as a group. 
C) He can rally the group around his chosen course of action to show upper management his ideas have support. 
D) He can use the group to distribute responsibility for the final decision, especially if there are unintended consequences. 
E) He can increase perceived importance of his efforts by aligning more resources with the decision-making process.

Question 16

Corey, a project manager, is responsible for tracking project issues. Each week, he provides details regarding the effectiveness of solutions and what experiences could be used to guide improved issue resolution in the future. Corey's reporting is an example of the ________ step of the decision-making process.

Accepted Answer

A) practicality 
B) choosing an alternative 
C) feedback 
D) implementation 
E) criteria selection

Question 17

To foster a learning organization, managers should empower employees and allow them to develop a sense of ________ through experimentation, creativity, and exploration.

Accepted Answer

A) entrepreneurship 
B) groupthink 
C) illusion of control 
D) personal mastery 
E) shared vision

Question 18

Steve is part of a production team that has researched and chosen a new manufacturing process to improve product quality. He has discovered data that disputes some of the claims of the production team but decides to ignore the information and support the team's original decision. Steve is being adversely influenced by

Accepted Answer

A) the illusion of control. 
B) organizational learning. 
C) groupthink. 
D) devil's advocacy. 
E) representative bias.

Question 19

Juan is faced with multiple choices of suppliers who have the same product at virtually the same price. He also knows there are many more suppliers out there that would be comparable; however, he has a short amount of time to make up his mind, so he chooses Elrood Gasket's product. Why type of decision does this represent?

Accepted Answer

A) programmed 
B) bounded 
C) confirmation 
D) groupthink 
E) satisficing

Question 20

When deciding on the catering budget for her upcoming wedding, Kris was told that typically around 10% of invited guests usually decline. Kris is using a(n)________ to simplify her decision making.

Accepted Answer

A) dialectical inquiry 
B) cognitive bias 
C) heuristic 
D) confirmation bias 
E) illusion of control

Exam 7: Decision Making, Learning, Creativity, and Entrepreneurship