Chapter 11 OB

In evaluating alternatives, managers should consider all but one of the following. Which one? A. Quality B. Cost C. Ethical considerations D. Personal preferences E. Resources

D. Personal preferences

A decision environment in which cause-and-effect relationships change so fast that no pattern emerges is categorized as: A. Dynamic/chaotic B. Complex C. Complicated D. Simple E. Programmed

A. Dynamic/chaotic

_________ consists of choosing a solution that meets some minimum qualifications, one that is "good enough." A. Satisficing B. Optimizing C. Minimizing D. Using intuition E. Rationalizing

A. Satisficing

Individuals who are analytical in decision-making style: A. Are action oriented and decisive B. Take longer to make decisions C. Rely on intuition and discussions with others to acquire information D. Are good at finding creative solutions to problems E. Have a tendency to avoid conflict

B. Take longer to make decisions

The dimensions that compose a person's decision-making style are: A. Extraversion and agreeableness B. Value orientation and tolerance for ambiguity C. Locus of control and conscientiousness D. Emotionality and individualism E. Intuition and emotional intelligence

B. Value orientation and tolerance for ambiguity

A person with a low tolerance for ambiguity who is oriented toward people and social concerns when making a decision has which style? A. Analytical B. Conceptual C. Directive D. Behavioral E. Consultative

D. Behavioral

The process of identifying and choosing alternative solutions that lead to a desired state of affairs is known as: A. Intuition B. Heuristics C. Problem solving D. Decision making E. Brainwriting

D. Decision making

A person with a high tolerance for ambiguity who is oriented toward task and technical concerns when making a decision has which style? A. Analytical B. Conceptual C. Directive D. Behavioral E. Consultative

A. Analytical

Intuitive processes are influenced by: A. Expertise and feelings B. Managerial style C. Rational processes D. Formal and informal guidelines E. Optimizing and satisficing

A. Expertise and feelings

A manager of an advertising firm appointed two employees to strike an advertising deal with one of their big clients. They were chosen as they had made a similar agreement previously with another client. Which of the following biases was the manager engaging in? A. Representativeness B. Anchoring C. Framing bias D. Fundamental attribution error E. Self-serving bias

A. Representativeness

_________ is a group process that anonymously generates ideas or judgments from physically dispersed experts. A. The Delphi technique B. Brainstorming C. Groupthink D. Goal displacement E. Decision support systems

A. The Delphi technique

Which of the following statements is true? A. Evidence-based decision making should never be used in making decisions. B. Evidence-based decision making should never be used in informing decisions. C. Evidence-based decision making should never be used in supporting decisions. D. Evidence-based decision making should always be used in supporting decisions. E. Evidence-based decision making should sometimes be used in supporting decisions.

E. Evidence-based decision making should sometimes be used in supporting decisions.

In the _________ bias, a decision maker is influenced by the manner in which a problem or question is stated. A. Confirmation B. Availability C. Representativeness D. Overconfidence E. Framing

E. Framing

The final stage of the creative performance behavior process is: A. Problem formulation B. Problem definition C. Preparation/information gathering D. Idea generation E. Idea evaluation/validation

E. Idea evaluation/validation

In a dynamic/chaotic decision environment, a manager should use the _______ method of decision making. A. Heuristic B. Rational C. Satisficing D. Optimizing E. Intuition or evidence-based

E. Intuition or evidence-based

Which of the following is not a symptom of groupthink? A. Mindguards B. Illusion of unanimity C. Self-censorship D. Illusion of invulnerability E. Minority dissent

E. Minority dissent

The first stage of the creative performance behavior process is: A. Problem formulation/definition B. Preparation/information gathering C. Idea generation D. Idea evaluation E. Idea validation

A. Problem formulation/definition

Mark was looking to buy an used car. His friends had suggested that he check the mileage on the car and the safety record of the model and year of a car before buying it. He was thus focusing extensively on the odometer reading and the model of the year of the car to evaluate the value of the car, instead of inspecting the engine or the transmission of the vehicle. This implies that Mark was engaging himself in the _________ bias. A. Representativeness B. Anchoring C. Availability D. Fundamental attribution E. Self-serving

B. Anchoring

In the _________ bias, a decision maker tends to base decisions on information that is readily available in memory. A. Confirmation B. Availability C. Representativeness D. Overconfidence E. Framing

B. Availability

__________ represent(s) cognitive shortcuts or biases that are used to simplify the process of making decisions. A. Normative intuitions B. Judgmental heuristics C. Holistic hunches D. Explicit knowledge E. Tacit knowledge

B. Judgmental heuristics

Which of the following is not an advantage of group decision making? A. Greater commitment to a decision B. Less time spent making a decision C. Better understanding of the decision rationale D. Greater pool of knowledge E. More visible role modeling

B. Less time spent making a decision

________ models of decision making explain how managers actually make decisions. A. Rational B. Nonrational C. Optimizing D. Normative E. Alternative

B. Nonrational

(n) ________ is a situation in which there are possibilities to do things that lead to results that exceed goals and expectations. A. Problem B. Opportunity C. Propportunity D. Holistic hunch E. Alternative

B. Opportunity

________ is solving problems by producing the best possible solution. A. Satisficing B. Optimizing C. Minimizing D. Using intuition E. Rationalizing

B. Optimizing

Which of the following is not an environmental factor that possibly impacts creative performance behaviors? A. Meaningful work B. Personality dimensions C. Informational feedback D. Spatial configuration of work settings E. Positive relationships with coworkers

B. Personality dimensions

In a complicated decision environment, a manager should use the _______ method of decision making. A. Heuristic B. Rational C. Satisficing D. Nonrational E. Intuition

B. Rational

The idea that decision makers are restricted by constraints when making decisions is called: A. Normative intuition B. Holistic intuition C. Bounded rationality D. Optimal satisfaction E. Explicit knowledge

C. Bounded rationality

Information that can easily be put into words is known as: A. Holistic B. Bounded C. Explicit knowledge D. Normative E. Heuristic

C. Explicit knowledge

Making judgments or decisions that come to mind on their own, without explicit awareness of the evoking cues and without explicit evaluation of the validity of those cues, is called: A. Satisficing B. Rationalizing C. Intuition D. Explicit knowledge E. Evidence-based decision making

C. Intuition

Which of the following statements about tendencies in managerial decision making is false? A. Managers make decisions too quickly. B. Managers don't invest resources to properly study the problem and alternative courses of action. C. Managers study the problem too extensively and collect too much data. D. Managers take the easy solution without rigorously considering alternatives. E. Managers don't consider all the relevant data.

C. Managers study the problem too extensively and collect too much data.

Oliver was known for his innovative promotional ideas. His boss loved listening to his presentations and trusted his ideas. Though Oliver's ideas started to get monotonous after a while, his boss took only his ideas and did not accept ideas from others. Which of the following was Oliver's boss using? A. Creativity B. Inclusion heuristic C. Fundamental attribution error D. Anchoring E. Availability heuristic

E. Availability heuristic

In groupthink, the "inherent morality" symptom is likely to: A. Breed excessive optimism B. Cause groups to underestimate opponents C. Cause groups to interpret silence as assent D. Question loyalty of dissenters E. Cause the group to ignore ethical considerations

E. Cause the group to ignore ethical considerations

In the _________ stage of the creative performance process, participants may brainstorm. A. Problem formulation/definition B. Preparation/information gathering C. Idea generation D. Idea evaluation E. Idea validation

C. Idea generation

Individuals who are conceptual in decision-making style: A. Risk being autocratic and focusing on the short term B. Sometimes overanalyze situations C. Rely on intuition and discussions with others to acquire information D. Adopt a short-term perspective E. Have a tendency to avoid conflict

C. Rely on intuition and discussions with others to acquire information

In the _________ bias, a decision maker tends to assess the likelihood of an event occurring based on one's impressions about similar occurrences. A. Confirmation B. Availability C. Representativeness D. Overconfidence E. Framing

C. Representativeness

In a complex decision environment, a manager should use the _______ method of decision making. A. Heuristic B. Rational C. Satisficing D. Optimizing E. Intuition

E. Intuition

The stages of rational decision making, in order, are: A. Identify the problem or opportunity; generate alternative solutions; evaluate alternatives; and implement and evaluate the solution. B. Generate alternative solutions; identify the problem or opportunity; evaluate alternatives; and implement and evaluate the solution. C. Evaluate alternatives; identify the problem or opportunity; generate alternative solutions; and implement and evaluate the solution. D. Evaluate alternatives; generate alternative solutions; identify the problem or opportunity; and implement and evaluate the solution. E. Identify the problem or opportunity; evaluate alternatives; generate alternative solutions; and implement and evaluate the solutions.

A. Identify the problem or opportunity; generate alternative solutions; evaluate alternatives; and implement and evaluate the solution.

The first question asked in Bagley's decision tree is: A. Is the proposed action legal? B. Is the proposed action ethical? C. Does the proposed action maximize shareholder value? D. Does the proposed action affect any stakeholders? E. Would it be ethical not to take the proposed action?

A. Is the proposed action legal?

Lily had graduated from high school and was ready to go to university. However, she also loved sports. She wanted to join a basketball academy and become a professional basketball player. She found her uncertainty about her future very stressful and was psychologically uncomfortable about it. This implies that Lily had a(n) ___________. A. Low tolerance for ambiguity B. Conceptual decision-making style C. Low need for structure D. Analytical style of decision making E. High social concern

A. Low tolerance for ambiguity

Which of the following is one of the assumptions underlying nonrational models of decision making? A. Managers do not possess complete information. B. Rational decision making is easy. C. The context for managerial decisions is simple and stable. D. Decisions can be made with certainty. E. Managers do not face restrictions when making decisions.

A. Managers do not possess complete information.

Which of the following is not a disadvantage of group decision making? A. More possible approaches to the problem B. Groupthink C. Goal displacement D. A few people dominate E. Social pressure

A. More possible approaches to the problem

Individuals who are directive in decision-making style: A. Risk being autocratic and focusing on the short term B. Sometimes overanalyze situations C. Rely on intuition and discussions with others to acquire information D. Are good at finding creative solutions to problems E. Have a tendency to avoid conflict

A. Risk being autocratic and focusing on the short term

Marketing firms strive to ensure that people are aware of their products because people assume that if they have heard about certain products, the products will work well. Which of the following biases are the marketing firms trying to take advantage of? A. Creativity B. Availability C. Fundamental attribution error D. Representativeness E. Inclusion

B. Availability

A decision environment in which there is one right answer, but many unknowns obscure cause-and-effect relationships, is categorized as: A. Dynamic/chaotic B. Complex C. Complicated D. Simple E. Programmed

B. Complex

A person with a high tolerance for ambiguity who is oriented toward people and social concerns when making a decision has which style? A. Analytical B. Conceptual C. Directive D. Behavioral E. Consultative

B. Conceptual

In informing a decision, A. Evidence forms the basis of the decision. B. Evidence is one of several inputs to the decision process. C. Evidence is created to support a decision using other inputs. D. Evidence should not be used. E. Only quantitative evidence is used.

B. Evidence is one of several inputs to the decision process.

The senior managers of Optimum Inc., a multinational information technology firm, were concerned that people were not buying their computers. They were shocked to hear of a salesperson recommending to customers to buy something other than an Optimum PC because they were of poor value. This small incident motivated the organization to conduct an extensive survey to understand real customer experience in order improve their products accordingly. This was an example of _____. A. A normative process B. Evidence-based decision making C. Satisficing D. A nonrational process E. Escalation of commitment

B. Evidence-based decision making

The sense of "we-ness" that overrides individual differences and motives is called: A. Group coherence B. Group cohesiveness C. Groupthink D. Peer pressure E. Stereotyping

B. Group cohesiveness

The idea that creativity starts from a base of knowledge is represented in the _______ stage of the creative performance process. A. Problem formulation/definition B. Preparation/information gathering C. Idea generation D. Idea evaluation E. Idea validation

B. Preparation/information gathering

In a simple environment, a manager should use the _______ model of decision making. A. Heuristic B. Rational C. Satisficing D. Nonrational E. Intuition

B. Rational

A decision environment in which there is a clear relationship between cause and effect, but some people might not see it, and more than one solution may be effective, is categorized as: A. Dynamic/chaotic B. Complex C. Complicated D. Simple E. Programmed

C. Complicated

(n) ________ is a graphical representation of the process underlying decisions. A. PERT chart B. GANNT chart C. Decision tree D. Flowchart E. Organizational chart

C. Decision tree

A person with a low tolerance for ambiguity who is oriented toward task and technical concerns when making a decision is known as: A. Analytical B. Conceptual C. Directive D. Behavioral E. Consultative

C. Directive

In the _________ bias, a decision maker tends to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed. A. Confirmation B. Availability C. Escalation of commitment D. Overconfidence E. Framing

C. Escalation of commitment

Which of the following is not a rule for effective brainstorming? A. One conversation at a time B. Be visual C. Go for quality over quantity D. Build on the ideas of others E. Defer judgment

C. Go for quality over quantity

The primary intent of Bagley's decision tree model is to: A. Improve rationality in decision making B. Assist in conducting evidence-based decision making C. Help in making more ethical decisions D. Reduce bias in decision making E. Increase creativity in decision making

C. Help in making more ethical decisions

In the _________ bias, a decision maker is influenced by the first information received about a decision, even if it is irrelevant. A. Confirmation B. Availability C. Representativeness D. Anchoring E. Framing

D. Anchoring

Which of the following is not a question in Bagley's decision tree? A. Is the proposed action legal? B. Is the proposed action ethical? C. Does the proposed action maximize shareholder value? D. Does the proposed action affect any stakeholders? E. Would it be ethical not to take the proposed action?

D. Does the proposed action affect any stakeholders?

_______ is a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when members' strivings for unanimity override their motivation to realistically appraise alternative courses of action. A. Brainstorming B. Brainwriting C. Brainwashing D. Groupthink E. Goal displacement

D. Groupthink

The forms of intuition are: A. Tacit and explicit B. Formal and informal C. Rational and nonrational D. Holistic hunches and automated experiences E. Directive and analytical

D. Holistic hunches and automated experiences

Josephine is about to graduate from college and is excited about joining her two roommates to start a small coffee shop near campus. She has never started a business before, but she is sure that her business degree has taught her everything she needs to know. The three of them have enough money for their initial costs and figure that they can cover their expenses with the cash flow from the business. Which heuristic is probably involved? A. Representativeness B. Anchoring C. Availability D. Fundamental attribution error E. Overconfidence

E. Overconfidence

__________ and ________ drive creative performance behaviors. A. Task; person focus B. Tolerance for ambiguity; locus of control C. Heuristics; biases D. Alternatives; solutions E. Person factors; environmental characteristics

E. Person factors; environmental characteristics

The _______ model of decision making explains how managers should make decisions. A. Intuition B. Satisficing C. Holistic D. Evidence-based E. Rational

E. Rational

When Roger comes to work in the morning, the first thing he does is head to the employee lounge where he grabs a cup of coffee and talks to coworkers for several minutes. This implies that he probably has a: A. Low tolerance for ambiguity B. High tolerance for ambiguity C. Task orientation D. Low need for structure E. Social orientation

E. Social orientation

The final question in Bagley's decision tree is: A. Is the proposed action legal? B. Is the proposed action ethical? C. Does the proposed action maximize shareholder value? D. Does the proposed action affect any stakeholders? E. Would it be ethical not to take the proposed action?

E. Would it be ethical not to take the proposed action?