MANAGEMENT CHAP 7 QUIZ

Political

The _____ model closely resembles the real environment in which most managers and decision-makers operate.

Research has identified four major decision styles. These include all of the following except _____.

authoritative

If your instructor has an attendance policy, she/he is using a(n):

programmed decision.

Nordstrom Department store's "No questions asked - Return's Policy" is an example of a(n):

programmed decision.

The four positions on the possibility of failure scale include certainty, risk, ambiguity, and _____.

uncertainty

Analytical

Managers are considered to have a(n) _____ style when they prefer to consider complex solutions based on as much data as they can gather.

Behavioral

Managers with a(n) _____ style may make decisions that help others achieve their goals.

Bounded Rationality

Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts?

Satisficing

To choose the first solution alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist

_____ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete.

Uncertainty

Most managers settle for a _____ rather than a _____ solution.

satisficing; maximizing

All of the following are cognitive biases that can affect manager's judgment except:

seeing what you don't want to see.

Coalition

An informal alliance among managers who support a specific goal

Decision Styles

Difference among people with respect to how they perceive problems and make decisions

Ambiguity

A condition in which the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable

Programmed Decision

A decision made in response to a situation that has occurred often enough to enable decision rules to be developed and applied in the future

Nonprogrammed Decision

A decision made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization

Classical Model

A decision-making model based on the assumption that managers should make logical decisions that will be in the organization's best economic interests

Administrative Model

A decision-making model that describes how managers actually make decisions in situations characterized by non-programmed decisions, uncertainty, and ambiguity

Risk

A situation in which a decision has clear-cut goals and good information is available but the future outcomes associated with each alternative are subject to change

Opportunity

A situation in which managers see potential organizational accomplishments that exceed current goals

Problem

A situation in which organizational accomplishments have failed to meet established goals

Which model of decision making is associated with satisficing, bounded rationality, and uncertainty?

Administrative

Seeing what you don't want to see

All of the following are cognitive biases that can affect manager's judgment, except:

For a programmed decision:

Alternatives are usually easy to identify

Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable?

Ambiguity

_____ is by far the most difficult situation for a decision-maker.

Ambiguity

Normative

An approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization

Descriptive

An approach that describes how managers actually make decisions rather than how they should make decisions according to a theoretical ideal

Wicked decision Problem

During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions in a highly ambiguous environment. The decision to buyout failed banks could best be described as what type of decision?

Which style is used by people who prefer simple, clear-cut solutions to problems?

Directive

Brainstorming

As a top manager, Joanna works with others within her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as:

Which of these styles is adopted by managers who have a deep concern for others as individuals?

Behavioral

A programmed decision

Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of:

Uncertainty

Bobby, a product manager, wants to increase the market share of his product. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Bobby is operating under a condition of:

Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making?

Brainstorming

Which of the following means that all the information the decision-maker needs is fully available?

Certainty

Which of the following is the process of forming alliances among managers during the decision making process?

Coalition building

Which of the following is a choice made from available alternatives?

Decision

_____ refers to the process of identifying problems and then resolving them.

Decision-making

_____ is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation.

Diagnosis

"When did it occur" and "how did it occur" are questions associated with which step of the decision making process?

Diagnosis and analysis of causes

When managers ask questions such as "What is the state of disequilibrium affecting us?", they are in which stage of the managerial decision-making process?

Diagnosis and analysis of causes

The classical model of decision making is based on _____ assumptions.

Economic

_____ is the last step in the decision making process.

Evaluation and feedback

Develop a new product or service

Examples of nonprogrammed decisions would include the decision to:

Being Influenced by Initial Impressions

Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous year's sales to estimate sales for the coming year. Of which management bias is this an example?

Evaluation and Feedback

Genna is collecting data on how well the organization has done since their new strategy was implemented. She is in what stage of the managerial decision making process?

_____ refers to the tendency of people in groups to suppress contrary opinions.

Groupthink

Rodney doesn't always realize that within his role as an air traffic controller, he must continuously perceive and process information based on knowledge and experience that he is not consciously aware of. This describes what type of decision-making?

Intuitive

Which approach defines how a decision-maker should make decisions?

Normative

_____ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization.

Normative

Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at Jefferson are complex and involve many people, with a significant amount of disagreement and conflict. Which decision-making model fits best for this organization?

Political

At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision?

Programmed

_____ decisions are associated with decision rules.

Programmed

The classical Model of decision making

Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization's best economic interests. Her decisions should be based on which of the following models?

Under conditions of _____, statistical analyses are useful.

Risk

Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance?

Risk

Which of the following refers to the willingness to undertake risk with the opportunity to increase one's return?

Risk propensity

Recognition of Decision Requirement.

Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision making process?

Bounded Rationality

The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions

Which of the following has the highest possibility of failure?

The condition of ambiguity

Which of these assumptions are included in the classical model of decision making?

The decision-maker strives for conditions of certainty.

Intuition

The immediate comprehension of a decision situation based on past experience but without conscious thought

Certainty

The situation in which all the information the decision maker needs is fully available

Uncertainty

The situation that occurs when managers know which goals they wish to achieve, but information about alternatives and future events is incomplete

Diagnosis

The step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation

Implementation

The step in the decision-making process that involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action

Escalating Commitment

The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as:

Risk Propensity

The willingness to undertake risk with the opportunity of gaining an increased payoff.

Perpetuating the status quo

When managers base decisions on what has worked in the past and fail to explore new options, they are:

Brainstorming

Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making?

Directive

Which style is used by people who prefer simple, clear-cut solutions to problems?

_____ decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, and unclear links among decision elements.

Wicked

Programmed

_____ decisions are associated with decision rules.

The _____ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity.

administrative

Nonprogrammed decisions are made in response to situations that are:

all of these

The condition under which ambiguity occurs is when:

alternatives are difficult to define.

Managers are considered to have a(n) _____ style when they prefer to consider complex solutions based on as much data as they can gather.

analytical

The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as:

bounded rationality.

Associated with the condition of _____ is the lowest possibility of failure.

certainty

All of the following are characteristics of the administrative decision making model except:

conditions of certainty.

Personal _____ style refers to differences among people with respect to how they perceives problems and make decisions.

decision

Managers are often referred to as:

decision makers.

Mark, a production manager at Kaylie's Kookware, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of _____.

decision-making

Examples of nonprogrammed decisions would include the decision to:

develop a new product or service.

The _____ is the individual who is assigned the role of challenging assumptions made by the group.

devil's advocate

The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as:

escalating commitment.

Intuition is based on _____, but lacking in _____.

experience; conscious thought

The _____ step in the decision making process involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action.

implementation

The recognition of the decision requirement step in the managerial decision making process requires managers to:

integrate information in novel ways.

All of the following are characteristics of the classical decision making model except:

limited information about alternatives and their outcomes.

Good examples of _____ decisions are strategic decisions.

nonprogrammed

When a small community hospital decides to add a radiation therapy unit, it is considered a:

nonprogrammed decision.

When managers base decisions on what has worked in the past and fail to explore new options, they are:

perpetuating the status quo.

The _____ model closely resembles the real environment in which most managers and decision-makers operate.

political

The _____ model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take.

political

Programmed decisions are made in response to _____ organizational problems.

recurring

The essence of _____ is to choose the first solution available.

satisficing