CBAD 301 Chapter 5

The third step in decision making is to _______.

assess alternatives

The concept of bounded rationality states that _______ limitations hinder one's ability to interpret, process, and act on information.

cognitive

Once managers recognize the need to make a decision in response to the opportunity or threat, they must _______.

generate a list of feasible alternatives

Which of the following is a basic part of every function of management?

Decision making

Select from the following those decisions that exemplify programmed decision making.

Decisions regarding when to pay bills Decisions regarding when to order supplies Decisions regarding how much inventory to hold

Which of the following comprise the four criteria that managers use to evaluate alternatives?

Economic feasibility Practicality Legality Ethicalness

What is the most likely effect of groupthink?

Individuals are discouraged from raising issues and stating opinions.

What is the first step in the decision making process?

Recognize the need for a decision

_______ is when a particular course of action can be assigned probabilities in order to know what may or may not occur.

Risk

Which of the following are factors upon which the administrative model is based?

Satisficing Bounded rationality Incomplete information

Which statement is accurate regarding the four criteria for evaluating alternatives?

Sometimes all four criteria must be assessed simultaneously.

True or false: The process of decision making involves programmed or nonprogrammed decisions.

True

To draw attention to all possible problems associated with the chosen alternative by critiquing and challenging the way the group evaluated the alternatives and arrived at a decision is the goal of _______.

a devil's advocate

Bounded rationality, incomplete information, and satisficing is the basis for the _______ model of decision making.

administrative

The _______ model of decision making addresses the notion that because decision making is inherently uncertain and risky, it leads managers to make satisfactory, rather than optimum, decisions.

administrative

Diverse groups sometimes are not as prone to groupthink because group members _______.

already differ from each other are less subject to pressures for uniformity

Once managers have generated a set of _______, the third step in the decision making process is to evaluate the advantages and disadvantages of each one.

alternatives

Kevin's class is currently examining unit 3. On Monday, the professor said that the next test would cover topics from unit 3. On Tuesday, the professor said the test would cover different topics---topics that are not part of unit 3, but from unit 2 which the class has already been tested on. Kevin is unsure of what to study, since the information the professor said was unclear and conflicting. This is an example of _______ information.

ambiguous

Leonard often makes statements that can be interpreted in different ways. Sometimes these statements conflict. This is an example of _______ information.

ambiguous

In group decision making, managers can draw upon the group's _______ to generate feasible alternatives and make good decisions.

competencies, combined skills, and accumulated knowledge

When managers select appropriate goals and courses of action that increase organizational performance, this is a result of effective _______ making.

decision

Managers must realize that _______ is a basic part of every management function they undertake whether it be planning, organizing, directing or controlling.

decision making

Recognize the need, generate alternatives, assess alternatives, choose among alternatives, implement the chosen alternative, and learn from feedback are the six steps of _______.

decision making

When faced with an opportunity or threat, a manager must respond by weighing all options and making a determination as to a particular course of action. This process is referred to as _______.

decision making

The selection of appropriate goals and courses of action that increase organizational performance is the result of effective _______; whereas, bad performance is the result of ineffective _______.

decisions; decisions

The group decides to analyze the preferred alternative more critically after Tonya raised challenges, defending unpopular alternatives for the sake of argument. This is an example of _______.

devil's advocacy

The final step in the decision making process is learning from _______.

feedback

In the decision-making process, recognizing the need for a decision is the _______ step.

first

Alternatives that are less likely to be influenced by errors and personal biases, improved ability to generate feasible alternatives and make good decisions, managers that are able to process more information and correct one another's errors, and greater cooperation in implementation stage are four potential advantages of _______ decision making.

group

Shashir is part of a work group trying to decide on a promotional campaign for the company's new product. He notices that the members of the group are more concerned with reaching an agreement than with accurately assessing information. This situation is known as _______.

groupthink

When small groups begin to think as one, tolerate no dissension, and strive to remain cordial with each other, _______ occurs.

groupthink

When groupthink occurs, individuals within a group are discouraged from raising concerns that are contrary to the majority opinion due to pressure for _______ in the group.

harmony agreement

Claudia often has to make on-the-spot decisions, so she relies on _____ by following her feelings and what readily comes to mind.

her intuition

The fifth step in decision making is to _______.

implement the decision

Sam frequently relies on _______ to make decisions. He is a firefighter and must act quickly and decisively to do his job.

intuition

Ed is in the process of making a decision. He has carefully evaluated his alternatives. The next step will be for Ed to rank the various alternatives and _______.

make a decision

According to March and Simon, optimum decisions are hard to make because risk and uncertainty _______.

make information incomplete

In the last step in the decision making process, effective managers always conduct a retrospective analysis. Failure to do so results in _______.

making the same mistakes repeatedly stagnation

Decision making occurs when _______.

managers respond to opportunities and threats by analyzing options about goals and plans of action

The administrative model of decision making explains why _______.

managers usually make satisfactory, rather than optimum, decisions

Dustin works as an office manager. It is his responsibility to bill customers in a timely fashion and to also pay the company's bills on time. There are clear guidelines for how he should handle these tasks. This is an example of _______ decision making.

programmed

Routine, virtually automatic, decision making that follows established rules or guidelines is referred to as _______ decision making.

programmed

A decision based on _______ requires time and effort and results from careful information gathering, generation of alternatives, and evaluation of alternatives.

reasoned judgment

Susan is making some important decisions regarding the future direction of her department. She carefully gathers information from both inside and outside the company. She then generates and evaluates multiple alternatives. Susan is making her decision based on _______.

reasoned judgments

Nonprogrammed decision making is used to _______.

respond to unusual or new opportunities or threats

Jared knows the possible outcomes of his decision and he can assign probabilities to those outcomes. This underscores the concept of _______ in the organizational environment.

risk

In a strategy known as _______, a manager will forego making the optimal decision, choosing instead an acceptable decision based on a limited sample of all potential alternatives.

satisficing

Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision is a strategy called _______.

satisficing

Generating a set of feasible alternative courses of action is the _______ step in decision making.

second

As a result of group decision making, it is more likely that _______.

the decision will be successfully implemented

Optimum decisions are _______.

the most appropriate decision considering what managers believe to be the most desirable consequences for the organization

Devil's advocacy is _______.

the role of one group member to critically analyze a preferred alternative to determine its strengths and weaknesses

Reggie needs to make a decision, but does not know the probabilities of alternative outcomes. Future outcomes are also unknown. This exemplifies the concept of _______.

uncertainty

Which of the following explains why information necessary for decision making is always incomplete?

Ambiguity Time constraints Risk and uncertainty

Identify the steps involved in decision making.

Assess alternatives Generate alternatives Recognize the need for a decision Choose among alternatives

Which of the following are potential disadvantages of group decision making?

It can be difficult to get multiple managers to agree on one solution. Groups take longer to make decisions than individuals.

What is the result of a manager that chooses a course of action but fails to act on it?

It is the same result as not making a decision at all.

Which of the following characterizes programmed decision making?

It is used for routine matters. It is a virtually automatic process.

Which of the following characterizes nonprogrammed decision making?

It is used for unusual opportunities or threats. It is used when there are no decision rules set.

What are the potential advantage(s) of group decision making?

Managers are able to process more information and correct one another's errors. The alternatives are less likely to be influenced by errors and personal biases. Managers have an improved ability to generate feasible alternatives and make good decisions.

What criterion is being used when a manager is trying to decide if the firm has the necessary capabilities and resources to implement a possible alternative?

Practicality

Which of the following words characterizes the concept of uncertainty?

Unpredictability

The fourth step in decision-making is to rank the various alternatives and choose one, but only after the set of alternatives has _______.

been carefully evaluated

Janice is faced with a decision. However, there are so many possible alternatives and so much information that she doesn't feel she can even begin to evaluate it all. This describes what March and Simon term _______.

bounded rationality

A prescriptive approach, based on the assumption that the person making the decision can identify and evaluate all possible alternatives and their consequences, defines the _______ decision making model.

classical

The classical decision making model is based on the assumption that the decision maker can identify and evaluate _______.

every possible alternative and each consequence

Decisions that are undermined by biases, difficulty getting multiple managers to agree on one solution, and an increase in the time necessary to make decisions are three problems associated with _______ decision making.

group

Yolanda has made a decision and has chosen an alternative. Her next step will be to _______ the chosen course of action.

implement

Every decision that a manager makes is either _______ or _______.

nonprogrammed; programmed

A(n) _______ decision will seem to be the most appropriate when considering what appears to be the most desirable future consequences for the organization.

optimum

Group decision making can be improved by _______.

promoting diversity in groups