Chapter 12

a. True

Evidence-based management can be particularly useful for overcoming fear of loss and the problem of escalating commitment. a. True b. False

a. True

Nonprogrammed decisions rely less on hard data, and there is less certainty about the outcomes. a. True b. False

a. True

One of the discoveries from Mintzberg's research is that major organizational choices are usually a series of small choices that combine to produce the major decision. a. True b. False

b. False

One of the implications of coalition building for organizational decision behavior is that decisions are made to optimize rather than satisfice problem solutions. a. True b. False

a. True

One problem with the management science approach is that quantitative data are not rich and do not convey tacit knowledge. a. True b. False

a. True

Particularly complex nonprogrammed decisions are often referred to as wicked decisions because simply defining the problem can turn into a major task. a. True b. False

a. True

Personal constraints during nonprogrammed decision making include individual desire for prestige and the desire to satisfy one's emotional needs. a. True b. False

b. False

Problem consensus tends to be high when organizations are differentiated. a. True b. False

b. rational approach

The _____ to individual decision making stresses the need for systematic analysis of a problem followed by choice and implementation in a logical, step-by-step sequence. a. intuitive approach b. rational approach c. bounded rationality approach d. problemistic search approach

c. management science approach

The _____ to organizational decision making has been described as the analog to the rational approach by individual supervisors. a. bounded rationality approach b. intuitive approach c. management science approach d. problemistic approach

b. False

Typically, few alternatives can be developed for a programmed decision, so a single solution is custom-tailored to the problem. a. True b. False

b. False

When goals are ambiguous and inconsistent, managers tend to agree about problem priorities. a. True b. False

c. They have easily specified alternatives

Which of the following is a characteristic of programmed decisions? a. They are poorly structured b. They lack clear-cut decision criteria c. They have easily specified alternatives d. They are unique and non-repetitive

a. True

In the problem identification stage, information about environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings. a. True b. False

a. judgment

In the selection phase of the decision sequence, the _____ form of selection is used when a final choice falls upon a single decision maker, and the choice involves decision based upon experience. a. judgment b. analysis c. bargaining d. authorization

b. involve a coalition of many managers to make the final choice.

The Carnegie model of organizational decision making says that organizational decisions: a. involve few managers because of the simplicity with which decisions are made. b. involve a coalition of many managers to make the final choice. c. use coalitions only at higher levels of management. d. use coalitions only at lower levels of management.

d. incremental decision model

The _____ places less emphasis on the political and social factors but tells more about the structured sequence of activities undertaken from the discovery of a problem to its solution. a. garbage can model b. management science approach c. bounded rationality approach d. incremental decision model

a. True

A decision interrupt takes place when an organization must cycle back through a previous decision and try something new. a. True b. False

a. problemistic search

According to organizational decision making, _____ means managers look around the immediate environment for a solution to quickly resolve an issue. a. problemistic search b. satisficing c. coalition formation d. bargaining

a. satisficing

According to organizational decision making, _____ means organizations accept a reasonable rather than a maximum level of performance, enabling them to achieve several goals simultaneously. a. satisficing b. escalating c. constraining d. bargaining

c. imitation

According to the contingency decision-making framework, _____ means adopting a decision tried elsewhere in the hope that it will work in this situation. a. coalition b. inspiration c. imitation d. recognition

a. True

Clear-cut decision criteria exist for nonprogrammed decisions. a. True b. False

c. intuitive decision making

In _____, experience and judgment rather than sequential logic or explicit reasoning are used to make decisions. a. rational decision making b. ethical decision making c. intuitive decision making d. meditated decision making

a. problem identification

In the _____ stage of organizational decision making, information about environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings. a. problem identification b. problem generation c. problem solution d. problem deconstruction

a. problem consensus

In the context of the contingency decision-making framework, _____ refers to the agreement among managers about the nature of an issue or opportunity and about which goals and outcomes to pursue. a. problem consensus b. technical knowledge c. point-counterpoint d. decision learning

b. technical knowledge

In the context of the contingency decision-making framework, _____ refers to understanding and agreement about how to solve problems and reach organizational goals. a. coalition formation b. technical knowledge c. intuitive decision making d. problem consensus

a. True

In the context of the garbage can model, choice opportunities are occasions when an organization usually makes a decision. a. True b. False

a. True

In the development phase of the incremental decision model, a solution is shaped to solve the problem defined in the identification phase. a. True b. False

b. False

In the first step of the rational approach to decision making, the manager responds to deviations by identifying essential details of the problem: where, when, who was involved, who was affected, and how current activities are influenced. a. True b. False

b. False

In the garbage can model of decision making, solutions are proposed only when problems exist. a. True b. False

a. True

In the garbage can model, potential solutions may be independent of problems, but ideas are brought to organizational consciousness because participants are attracted to those ideas. a. True b. False

c. The problem solution stage

In which of the following stages of the organizational decision-making process are alternative courses of action considered and one alternative is selected and implemented? a. The problem monitoring stage b. The problem identification stage c. The problem solution stage d. The problem generation stage

b. False

Intuitive processes are not used in the problem solution stage of decision making. a. True b. False

a. identification

Larry is the CEO of a chain of fast food restaurants that operates all over the U.S. It comes to his notice that one of the branches in Boston has received a lot of complaints from customers who claim that the staff is rude and the service is delayed. Larry arranges to get feedback from customers of the branch in question. In the context of the incremental decision model, Larry is in the _____ phase of the decision sequence. a. identification b. development c. evaluation d. selection

d. groupthink

Sheila is one of the managers at Benson & Parker Advertising, an agency based in New York. She is a member of a coalition of managers who are deciding whether to shift their headquarters to Texas. Even though Sheila is against the move, she decides to suppress her opinion because most of the managers of the company favor the move. In this scenario, Sheila is engaging in _____. a. commitment escalation b. bargaining c. problemistic search d. groupthink

a. True

The bounded rationality perspective to decision making describes how decisions actually have to be made under severe time and resource constraints. a. True b. False

b. problem solution

The final four steps of the rational approach to decision making constitute the _____ stage of decision making. a. problem identification b. problem solution c. problem diagnosis d. problem monitoring

d. identify the problem.

The first four steps of the rational approach to decision making are specifically designed to help a manager: a. implement a solution. b. devise a problem solution. c. evaluate alternative solutions. d. identify the problem.

b. False

The garbage can model was developed to explain the pattern of decision making in extremely certain organizational environments. a. True b. False

b. False

The incremental model places major emphasis on political and social factors that influence decision outcomes. a. True b. False

d. organized anarchy

The originators of the garbage can model of decision making referred to highly uncertain conditions in an organization as a(n) _____. a. high-velocity environment b. systematic revolution c. high-frequency environment d. organized anarchy

a. True

The point of the rational approach is that managers should try to use systematic procedures to arrive at good decisions. a. True b. False

b. False

The role of the devil's advocate is to support the assumptions and assertions made by the group. a. True b. False

a. monitoring the decision environment

Tom Smith is the marketing manager of Food Lion, a chain of grocery stores in North Carolina. Each year, Tom is required to make a decision on whether the current advertising campaign needs to be revamped to generate the sales targets for the year. In order to help him arrive at a decision, Tom reads up on latest shopping trends of buyers, observing buying habits of customers, and reviewing daily sales figures. In this scenario, Tom is _____. a. monitoring the decision environment b. defining the decision problem c. specifying decision objectives d. diagnosing the problem

b. Unlike the incremental and Carnegie models, the garbage can model deals with the pattern or flow of multiple decisions within organizations.

Which of the following is a difference between the garbage can model and the incremental and Carnegie models? a. Unlike the incremental and Carnegie models, the garbage can model is only applicable at the problem solution stage of decision making. b. Unlike the incremental and Carnegie models, the garbage can model deals with the pattern or flow of multiple decisions within organizations. c. Unlike the incremental and Carnegie models, the garbage can model is only applicable at the problem identification stage of decision making. d. Unlike the incremental and Carnegie models, the garbage can model focuses on how a single decision is made by the top management of an organization.

c. Choices are made without solving problems.

Which of the following is a possible consequence of using the garbage can model for organizational decision making? a. Solutions are proposed only when problems exist. b. Problems are always solved once they have been identified. c. Choices are made without solving problems. d. Solutions are present for all kinds of problems.

a. Level of shared perspective

Which of the following is an organizational constraint during nonprogrammed decision making? a. Level of shared perspective b. Desire to satisfy emotional needs c. Personal desire for prestige d. Individual decision style

c. They are novel.

Which of the following is true about nonprogrammed decisions? a. They have clear-cut decision criteria. b. They have many alternatives. c. They are novel. d. They are well defined.

a. They are well defined.

Which of the following statements is true of programmed decisions? a. They are well defined. b. They are the decisions for which criteria of performance are normally fuzzy. c. They are non-repetitive. d. They are the decisions for which a single solution is custom-tailored to the problem.

d. Developing alternative solutions

Which of the following steps in the rational approach to decision making involves having a clear understanding of the various options available to achieve desired objectives? a. Specifying decision objectives b. Diagnosing the problem c. Monitoring the decision environment d. Developing alternative solutions

b. False

While making important decisions, it is important to take one's emotions into consideration. a. True b. False

c. Unclear technology

_____ is a characteristic that results in organized anarchies. a. Slow change b. Well-defined goals c. Unclear technology d. Bureaucratic environment

a. Quasirationality

_____ is a new trend in decision making that involves combining intuitive and analytical thought. a. Quasirationality b. Satisficing c. Organized anarchy d. Point-counterpoint

b. Evidence-based management

_____ means a commitment to make more informed and intelligent decisions based on the best available facts. a. Intuition-based management b. Evidence-based management c. Ethics-based management d. Value-based management

b. Prospect theory

_____ suggests that the threat of a loss has a greater impact on a decision than the possibility of an equivalent gain. a. The Carnegie model b. Prospect theory c. The bounded rationality perspective d. McGregor's Theory X