Deck 7: Making Better Decisions

Question 1

Another name for the "Drifting Goals" system archetype is the:

A)Boiling Point
B)Boiled Frog Syndrome
C)Tipping Point
D)Steaming Toad Syndrome

Answer 1

B

Question 2

According to the chapter, what is one of the possible reasons for the 1987 NASA disaster?

A)Groupthink
B)Ambiguity
C)Bounded rationality
D)Illusion of control

Answer 2

A

Question 3

Which of the following is NOT TRUE of the classical decision-making model?

A)Leads to an optimal decision
B)Considers limitations in information availability, time, and individual cognitive processing
C)Presumes that managers can make a reasoned judgment
D)A normative model
E)All of the above are true

Answer 3

B

Question 4

Decisions that are based on reason and/or intuition in response to a unique situation that requires a tailored decision are known as:

A)Classical
B)Programmed
C)Nonprogrammed
D)Optimum

Question 5

Which of the following is a way managers effectively understand problems?

A)Observe undesirable symptoms
B)Qualify the systemic problem based on causes and effects
C)Identify root problems with controllable behaviors that can be readily addressed
D)All of the above

Question 6

What is the last step in the seven-step decision-making process?

A)Evaluate alternatives
B)Identify the problem
C)Implement a choice
D)Solicit feedback and analyze results

Question 7

Who suggested that the assumption that you can isolate "a closed system" from the rest of the world was a faulty theory?

A)Herbert Simon
B)Robert Adler
C)David Makarsky
D)Herb Cork

Question 8

This type of analysis isolates the variables in a system that can truly be addressed through management intervention.

A)Systemic-based
B)Problem-based
C)Policy-based
D)Solution-based

Question 9

Complex schemas are developed by:

A)Learning environments in which feedback is prompt, accurate, and exacting
B)Strategies to retain managers for longer periods of time
C)Both A and B
D)None of the above

Question 10

If a problem is very specialized, which of the following techniques is most effective?

A)Groupthink
B)Group brainstorming
C)Individual brainstorming
D)Production blocking

Question 11

The method of decision making in which a group of experts propose and question ideas until a consensus is reached is the:

A)Adaptive technique
B)Classical model
C)Delphi technique
D)Nominal group technique

Question 12

When a decision is made based on beliefs or assumptions despite evidence to the contrary, it is known as a(n):

A)Intuitive decision
B)Prior-hypothesis bias
C)Reasoned judgment
D)Programmed decision

Question 13

According to the text, how many steps are there in the decision making-process?

A)One
B)Seven
C)Three
D)Four

Question 14

____________ is a situation in which a decision-maker knows all alternatives and their outcomes.

A)Uncertainty
B)Rationality
C)Certainty
D)Heuristics

Question 15

The decision that is the best possible option given all the needed information is known as a(n):

A)Classical decision
B)Programmed decision
C)Nonprogrammed decision
D)Optimum decision

Question 16

The administrative model encourages organizations to do all of the following EXCEPT:

A)Minimize production loss
B)Be creative and flexible
C)Minimize work force
D)Continuously change and improve

Question 17

Which of the following is NOT a factor that determines a situation's level of certainty?

A)Cognitive abilities
B)Information
C)Time
D)Knowledge

Question 18

_________ is when information about the situation, goals, or criteria is incomplete or can be interpreted in many ways.

A)Bounded rationality
B)Risk
C)Uncertainty
D)Ambiguity

Question 19

The process that balances time, information, and the team's ability to consider and implement alternatives is known as:

A)Optimizing
B)Satisficing
C)Rationalizing
D)Intuition

Question 20

Frequently occurring patterns that are deemed predictable are referred to as:

A)Systems archetypes
B)Policy-based analyses
C)Systemic analysis
D)Groupthink

Question 21

Decisions that are based on feelings, previous experience, and existing knowledge are called:

A)Rational
B)Satisficing
C)Optimum
D)Intuitive

Question 22

Group brainstorming is beneficial when a problem is:

A)Specialized
B)Complex
C)Cross-functional
D)Both A and B
E)Both B and C

Question 23

If a hotel has 100 rooms available every night of the year and their total yearly revenue is $5,292,500, what is the hotel's RevPAR?

A)$100
B)$145
C)$36,500
D)$52,925

Question 24

The degree to which the outcomes of an alternative can be predicted is referred to as risk.

Question 25

Systemic-based analyses are done before policy-based analyses.

Question 26

Which pattern of behavior is shown when a manager applies a short-term fix that results in long-term, unintended consequences?

A)Groupthink
B)Reinforcing engine
C)Balancing correction
D)Satisficing

Question 27

Knowing the causes of a situation is different than understanding the variety of alternatives available to change behavior.

Question 28

Decisions are events, not processes.

Question 29

Saying that "this has never worked in the past, it won't work in the future," is an example of:

A)Dialectical inquiry
B)Representative bias
C)Ambiguity
D)Prior-hypothesis bias

Question 30

Why can success become a systemic problem?

A)Patterns of behavior
B)Delay
C)Friction
D)Both A and B

Question 31

Analysis paralysis a potential negative outcome for managers using the administrative model.

Question 32

Evaluating alternatives is the third step in the decision-making process.

Question 33

The ability to make "rational decisions" directly correlates to success.

Question 34

A decision based on extensive information gathering, careful analysis, and generation of alternatives is called:

A)Intuitive decision
B)Reasoned judgment
C)Bounded rationality
D)Dialectical inquiry

Question 35

Which is a system behavior indicative of growth coupled with an unintended consequence in another part of the system?

A)Groupthink
B)Reinforcing engine
C)Balancing correction
D)Satisficing

Question 36

A nominal group technique (NGT) is a method of decision making in which a group of experts propose and question ideas until a consensus is reached.

Question 37

Which company did the chapter use as an example of a reinforcing engine?

A)NASA
B)America-Online
C)Yahoo!
D)None of the above

Question 38

Bounded rationality is rational decision-making that is limited by time, cognitive abilities, and available information.

Question 39

Which of the following is NOT one of the three kinds of decision making outlined in the text?

A)Satisficing
B)Optimum
C)Intuitive
D)Conventional

Question 40

Good intuition can be an effective capacity for a manager to possess, but it can be a dangerous quality.

Question 41

Gathering and analyzing feedback and results is the last step in the decision-making process.

Question 42

The acronym RevPAR, used in the hotel industry, stands for ____________________________.

Question 43

Diagram the seven-step decision-making process presented in the text.

Question 44

Managers must establish clear feedback criteria, gather feedback on an infrequent basis, measure the results, assess gaps in unexpected outcomes, and determine next actions.

Question 45

There are _________ steps in the decision-making process.

Question 46

The three kinds of decision making outlined in the text are __________, _____________, and ___________.

Question 47

Managers succeed at implementation when they connect strategy, people, and information.

Question 48

_________________________ is often used to describe people who don't react quickly enough or are unaware of the changes going on around them.

Question 49

______________ bias occurs by generalizing from too small a sample size.

Question 50

A system behavior indicative of growth coupled with an unintended consequence in another part of the system is known as a(n)________________.

Question 51

In a rapidly changing business environment, more businesses are implementing _______________ management philosophies for decision making.

Question 52

_______ are also referred to as "rules of thumb."

Question 53

Explain the concept of groupthink using the Space Shuttle Challenger disaster as an illustrative example.

Question 54

Managers succeed at implementation when they connect strategy, ___________, and ____________.

Question 55

The evaluation method in which a proposal and a conflicting counterproposal are given equal consideration is called a(n) ___________________________.

Question 56

The two primary patterns of behavior that create problems in organizations are _____________________________ and ____________________________.

Question 57

Managers are at particularly high risk for representative bias when the information they need to make a decision is ambiguous.

Question 58

Observable behaviors related to underlying causal variables are known as __________ effects.

Question 59

Overestimating one's ability to control events and activities is known as illusion of control.

Question 60

Explain the concept of bounded rationality.