Chapter 8 practice test
__________ refers to the inability of human beings to process an unlimited amount of information, causing most decisions to be made in a partially irrational manner.
Bounded rationality
Which of the following is typically NOT a difficult managerial decision?
Creating work schedules
Which of the following terms refers to the act of persisting with a failing course of action?
Escalation of commitment
The third step of the creative process is
insight.
According to the rational decision-making approach, evaluating the alternatives
involves assessing all possible alternatives.
When applying concepts of __________, the decision maker knowingly accepts less than the best possible outcome.
suboptimizing
Nonprogrammed decisions are usually made by
upper management.
The fourth step of the creative process is
verification
The creative process normally begins with a period of
preparation.
According to research, the common attributes of creative individuals include which of the following?
Being raised in an environment that nurtured creativity
According to the rational decision-making approach, what is the second step of the decision-making process?
Identify the problem
An innate belief about something without conscious consideration is called
intuition
The Delphi technique uses which of the following to gather opinions from experts?
Questionnaires
The Delphi technique is a useful way to gather opinions from experts who
All of these are correct.
The rational decision-making approach assumes decision makers
All of these are correct.
According to the rational decision-making approach, what is the fourth step of the decision-making process?
Generate alternatives
Which of the following is true about intuition?
It evolves over time.
According to the rational decision-making approach, what is the first step of the decision-making process?
State the situational goal
Which of the following is NOT a characteristic of nonprogrammed decisions?
The decisions are rarely a responsibility of top management.
Which of the following does NOT accurately describe the nature of ethical dilemmas?
They may center on risk propensity.
A decision maker's actions should be guided by
a goal.
Decision making is the process of
choosing one alternative from among several.
A __________ is an informal alliance of individuals or groups formed to achieve a common goal.
coalition
The last step in the rational decision-making process is to
control: measure and adjust.
To help prevent groupthink, leaders should assign the role of __________ to each group member to allow each member to freely voice objections and doubts.
critical evaluator
One important method for enhancing creativity is to make it a part of the organization's
culture.
Jim purchases stock in a public company and refuses to sell it even after their repeated drops from the original price. Jim has decided to purchase more of the stock, anticipating he will make a profit. This is an example of
escalation of commitment.
A person's beliefs about what constitutes right and wrong behavior are called
ethics
If a human resources manager estimates the probability that a certain percentage of employees will take advantage of a proposed benefit plan, the manager is operating under a condition of
risk.
Satisficing refers to making a __________ rather than an optimal decision.
satisfactory
When groupthink occurs, silence is viewed as agreement. This most directly contributes to the
shared illusion of unanimity
All of the following are features of group discussion that contribute to group polarization EXCEPT
task uncertainty can be impacted by the decision.
Contingency plans are a part of what phase of the decision-making process?
Choosing an alternative
According to the rational decision-making approach, what is the third step of the decision-making process?
Determine the decision type
Which of the following is NOT a category of prescriptions for preventing groupthink?
Group prescriptions
Which of the following is NOT a characteristic of programmed decisions?
Judgment and creativity are the basis of solution
Which of the following is true about brainstorming?
None of these are correct.
Jim is using the rational decision-making process to decide a course of action for the marketing department. While selecting a preferred alternative, a fellow worker asks, "What if something unexpected happens during the implementation of the alternative we have selected?" This type of question is an example of
planning for contingencies.
An organizational decision maker assesses conditions of certainty, uncertainty, and risk during the process of
determining the decision type.
Being able to see differences between situations, phenomena, or events is a creative ability called __________ thinking.
divergent
It is possible for the same decision to be __________ for an experienced manager and nonprogrammed for a more junior manager.
programmed
In __________, the decision maker examines alternatives only until a solution that meets minimal requirements is found.
satisficing
The risk of groupthink may be curbed by increasing the __________ of senior management.
diversity
The Delphi technique is designed for use by groups that
do not meet face-to-face.
Which of the following statements about brainstorming is false?
Ideas are recorded in secret
In the study of groupthink, which of the following terms refers to self-appointed members who shield the group from conflicting information?
Mindguards
Which of the following is a structured variation of a small-group discussion to reach consensus?
Nominal group technique
What information condition lies between certainty and uncertainty in making decisions?
Risk
__________ is the extent to which a decision maker is willing to gamble when making a decision.
Risk propensity
The sales department at a local company determines that Product A will moderately boost sales and have a shorter production schedule, so it is decided that this product will be manufactured and sold without considering other options. In choosing this product, the sales department is
satisficing.
