MGT - Chapter 7 Review

It was brought to Dwight's attention that one of his hotel employees had a substance abuse problem. Without fully investigating the issue, Dwight decided to fire the employee. Dwight was using A) intuition. B) unemotional analysis. C) satisficing. D) feasibility. E) immersion.

A

Otis, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot sleep well at night and he is dealing with severe anxiety and irritability, and he has been ill several times this month. Several times Otis has missed important details in his job, and he almost got in an automobile accident this morning. The district manager is coming today to do his bimonthly evaluation of Otis's store. Although Otis usually performs well, he is worried about this one. His district manager may be influenced by ________ bias. A) availability B) hindsight C) overconfidence D) sunk-cost E) framing

A

________ is the idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes. A) Bounded rationality B) Rational decision making C) Analytics D) Nonrational decision making E) MBO

A

Luke and Mia are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to reduce the price to reflect what the marketplace shows their home is really worth. Luke and Mia are participants in ________ bias. A) sunk-cost B) anchoring and adjustment C) ego D) confirmation E) blind

B

When Ford was slow to recall vehicles to fix a possible carbon monoxide leak, it was most likely due to ________, because Ford was convinced that the modifications made by police departments were the cause of the problem, not the manufacturing of the vehicle. A) framing bias B) overconfidence bias C) escalation of commitment bias D) sunk-cost bias E) hindsight bias

B

________ is a data-mining technique used to predict future behavior and anticipate the consequences of change. A) The decision tree B) Predictive modeling C) Data digging D) Decisions by trends E) GIGO

B

A decision tree is A) a location used by Chinese philosopher Confucius in times of intense pressure. B) the hierarchy that must be followed when getting decisions approved. C) a graph of decisions and their possible consequences. D) a structure of problem-solving ideas, with its roots based on the organization's mission. E) an organization's decision network.

C

Bradley was recently promoted to the production manager of a busy shoe factory. He was chosen because prior to his promotion he had proven himself to be very efficient, and as a department manager he had a logical and practical approach to solving problems. Bradley has a reputation for being decisive and getting things done. Most of the factory's employees like Bradley, but they feel he exercises too much control over them. Bradley has a(n) ________ style. A) behavioral B) analytical C) directive D) ambiguous E) conceptual

C

Daniel loves sales because he responds well to the pressure he faces in the many new or uncertain situations he encounters as a salesperson. Like most successful salespeople, he is high in his tolerance for ambiguity, yet he struggles with making decisions quickly. Daniel likely has a(n) ________ decision-making style. A) ambiguous B) conceptual C) analytical D) directive E) behavioral

C

In the third step of rational decision making (evaluating alternatives and selecting a solution), a manager needs to evaluate each alternative not only according to cost and quality but also according to which of the following questions? A) Is it efficient, and how will it affect our marketing strategy? B) Is it feasible and profitable? C) Is it ethical, feasible, and effective? D) Is it ethical and will it hurt diversity? E) Is it feasible, effective, and efficient?

C

Nora is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—the social aspect of her job. Nora relies on intuition and discussions with others to acquire information. As an interior decorator, Nora utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Nora's decision-making style is best described as A) ambiguous. B) analytical. C) conceptual. D) directive. E) behavioral.

C

The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ________. For example, a manager who uses this model may be personally opposed to outsourcing jobs overseas, but she nonetheless decides to outsource customer-service operations to India because doing so is in the company's best interests. A) focused decision-making model B) employee relations model C) rational decision-making model D) solutions agenda E) interpersonal-decision agenda

C

________ are difficulties that inhibit the achievement of goals. For example, the lack of parking may be the main reason why a new restaurant is failing. A) Synergies B) Objectives C) Problems D) Alternatives E) Values

C

A ________ is a choice made from among available alternatives. A) consensus B) value statement C) plan D) decision E) goal

D

Micah was talking with Aaron, his assistant manager, saying, "When I make a decision on which employees will do a project, I use three simple factors. I consider their attitude, knowledge, and how hard they work." Micah uses ________ when making a decision. A) thought steps B) decision steps C) the domino effect D) heuristics E) planning model

D

The advantages of ________ are having a greater pool of knowledge, gaining different perspectives, gaining intellectual stimulation, having a better understanding of decision rationale, and having a deeper commitment to the decision. A) more flexibility in the final decision B) the less-thought required decision C) a quicker decision D) group decision-making E) a deeper commitment to the decision

D

Wes, the store manager, recently had to fire Andrea, an employee who graduated from Southern College. He felt that Andrea was not well trained at her school. So, when Zeke, also a graduate from Southern College, applied for Andrea's old position, he did not want to consider hiring him, feeling Zeke also probably did not receive the proper training. Wes was affected by ________ bias. A) confirmation B) adjustment C) training D) representativeness E) blind

D

________ is a technique used to help groups generate multiple ideas and alternatives for solving problems. A) Big Data B) Groupthink C) MBO D) Brainstorming E) Framing

D

A person's ________ reflects the combination of how he or she perceives and responds to information. A) Big Data perception B) time orientation C) ambiguity index D) location on the introvert/extrovert scale E) decision-making style

E

Gloria, the controller of Luna Pizza, is purchasing several new delivery vehicles. Gloria has numerous work responsibilities, so she has limited time to shop for cars. Because of the time constraints, she cannot make an extensive search for the best alternative, so she looks for cars until she finds a model that is satisfactory. Gloria is following the ________ model. A) dilemma B) rational C) limited scope D) limited focus E) satisficing

E

In regard to decision making, which of the following statements reflects what research has found? A) Group decisions are seldom better than individual decisions. B) Individuals acting alone always make better decisions than groups. C) There has not been any research showing that either individuals acting alone or groups make better-quality decisions. D) Groups tend to be less productive than the best individuals working on any specific project. E) Groups make better decisions than most individuals acting alone.

E

Uri, a server in a popular family restaurant, is the most popular employee with both customers and employees, and as a result, he usually earns the most in tips. He is always ready to lend a hand when asked, and with his warm personality and supportive nature, people confide in him. Uri does have a problem telling people no, and he has a tendency to avoid conflict because he is concerned about hurting others or getting people mad. Uri likely has a(n) ________ decision-making style. A) analytical B) directive C) conceptual D) ambiguous E) behavioral

E

________ causes people to view events as being more predictable than they really are. A) The fog effect B) Sunk-cost bias C) Framing bias D) Narrow focus bias E) Hindsight bias

E

Decision making is the process of identifying and choosing alternative courses of action.

True

The dialectic method calls for managers to foster a structured dialogue or debate of opposing viewpoints prior to making a decision.

True