Chapter 7: Problem Analysis & Decision-Making

39. __________________are decisions that are unique and non-recurring.A. Non-programmed decisionsB. Repetitive decisionsC. Complex decisionsD. Programmed decisionsE. Simple decisions

: A: 1 Page Ref: 191LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

58. __________________ is a view that requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs.A. justiceB. rightsC. managementD. utilitarianE. intuitive

: A: 1 Page Ref: 199LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

34. Problems that are new or unusual or in which information is ambiguous or incomplete are known as ________________ problems.A. ill-structuredB. simpleC. complexD. well-structuredE. ambiguous

: A: 2 Page Ref: 190LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

35. The decision on whether to restructure the department or to invest in and implement new, unproven technology are examples of ________________problems.A. ill-structuredB. simpleC. complexD. well-structuredE. ambiguous

: A: 2 Page Ref: 190LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

9. Supervisors may face three conditions as they make a decision: A. certainty, risk, and uncertainty.B. certainty, risk, and potential rewardC. certainty, uncertainty, and solutionD. risk, uncertainty, and rewardE. certainty, risk, and de-risk alternatives

: A: 3 Page Ref: 184LO: 7.1 List the seven steps in the decision-making processAACSB: Analytical thinking

53. Falsifying financial records if this improves the supervisor's unit's performance record is an example of which rationalization viewpoint?A. "It's in my (or the organization's) best interest."B. "No one will find out."C. "I deserve it."D. "It's not really illegal or immoral."E. "Because it helps the organization, the organization will condone it and protect me."

: A: 3 Page Ref: 198LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

5. Once the problem has been identified, you need to gather the facts and information relevant to the problem while ___________________A. identifying solutionsB. identifying the decision criteria.C. evaluating alternativesD. conducting researchE. performing an analysis

: B: 1 Page Ref: 181LO: 7.1 List the seven steps in the decision-making process

3. ___________________ is the first step in the decision-making process.A. Develop objectivesB. Identify the problemC. Evaluate the problemD. Aggregate informationE. Conduct research

: B: 1 Page Ref: 181LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

22. Decision makers with the ___________style work well with others and are concerned with the achievement of their employees.A. directiveB. behavioralC. empatheticD. analyticE. conceptual

: B: 1 Page Ref: 187LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

24.The tendency for supervisors to base judgments on readily obtainable information is known as _________________________.A. representative heuristicB. availability heuristicC. escalation of commitmentD. prejudgmentE. premature decision-making

: B: 1 Page Ref: 187LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

46. One important suggestion for making better decisions is to tap into the ____________and drawing on diverse employees can prove valuable to a supervisor's decision making.A. gender erences of the workgroupB. diversity of the workgroupC. educational erences of the workgroupD. sex and gender erences of the workgroupE. economic erences of the workgroup

: B: 1 Page Ref: 193 - 195LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Application of knowledge

56. A view that calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights is the _____________________.A. justiceB. rightsC. managementD. utilitarianE. intuitive

: B: 1 Page Ref: 199LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

7. On which of the following, does selection of the best alternative in the decision-making process depend?A. Commitment to the alternativeB. The supervisor's ingenuity in developing alternativesC. Supervisor's ingenuity in developing alternativesD. Quality of analysis E. Volume of alternatives presented

: B: 2 Page Ref: 183LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

37. Decisions are programmed to the extent that they are ________________, and to the extent that a definite approach has been worked out for handling them.A. unique but routineB. repetitive and routineC. rare and non-routineD. non-repetitive and non-routineE. non-repetitive and routine

: B: 2 Page Ref: 191LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

49. Design thinking has been described as "___________________as designers approach design problems."A. approaching manufacturing issuesB. approaching management problemsC. solving innovation problemsD. creating new solutionsE. solving R&D issues

: B: 2 Page Ref: 196LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Application of knowledge

54. The allocation of big salary increases while ignoring the means by which results are achieved is an example of which rationalization viewpoint?A. "It's in my (or the organization's) best interest."B. "No one will find out."C. "I deserve it."D. "It's not really illegal or immoral."E. "Because it helps the organization, the organization will condone it and protect me.

: B: 3 Page Ref: 198LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

41. There are advantages of group decision-making. Of the following, which is NOT one of those advantages??A. Provides more complete information.B. Generates more alternatives.C. Pressure to conformD. Increases acceptance of a solution.E. Increases legitimacy.

: C : 1 Page Ref: 191LO: 7.6 Compare and contrast group decision making and individual decision makingAACSB: Application of knowledge

16. Of the following, which is NOT one of the four decision styles?A. DirectiveB. BehavioralC. EmpatheticD. AnalyticE. Conceptual

: C: 1 Page Ref: 186LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

25. Which of the following helps explain why when conducting performance appraisals, supervisors tend to give more weight to more recent behaviors of an employee than behaviors of six or nine months ago?A. Retrospective heuristicB. Retrospective behaviorC. Availability heuristicD. Representative heuristicE. Escalation of commitment

: C: 1 Page Ref: 187LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

8. Step 6 involves putting the decision into action. If others will be affected by the decision, implementation also includes ______________and getting commitment.A. assigning responsibilitiesB. determining success potentialC. conveying the decision to those affected D. considering possible deadlinesE. centralizing authority

: C: 2 Page Ref: 183LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

11. __________________permits decision makers to place a monetary value on the various consequences likely to result from the selection of a particular course of action.A. Analysis of varianceB. Regression analysisC. Expected value analysisD. Financial analysisE. Decision trees

: C: 3 Page Ref: 184LO: 7.2 Describe expected value analysis.AACSB: Application of knowledge

15. Briefly discuss the three conditions of decision-making, which include certainty, risk, and uncertainty.

: Certainty: Supervisors facing decisions in which certainty abounds are in the best possible situation. Certainty exists when the outcome and every alternative are known. For example, suppose a supervisor is deciding what transportation company to use to ship goods. Risk: A far more common situation supervisors face is one of risk, in which they must estimate the likelihood of certain outcomes. To assign probabilities to outcomes, supervisors can rely on personal experiences, secondary information, or historical data. Uncertainty: Supervisors who are not certain about the outcomes and can't even make a reasonable probability estimate are said to be making a decision under a condition of uncertainty. In this case, the choice of alternatives is influenced by the limited information available and by one's view of the problem.: 2 Page Ref: 184LO: 7.2 Describe expected value analysis.AACSB: Application of knowledge

2. Which of the following is NOT a step in the decision-making process?_______.A. Identify the problemB. Select the best alternativeC. Implement the decisionD. Develop objectivesE. Follow up and evaluate

: D: 1 Page Ref: 181LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

19. ______ types have a greater tolerance for ambiguity, desire more information, and will consider more alternatives.A. DirectiveB. BehavioralC. EmpatheticD. AnalyticE. Conceptual

: D: 1 Page Ref: 187LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

21. ______ supervisors are characterized as careful decision makers with the ability to adapt or cope with new situations.A. DirectiveB. BehavioralC. EmpatheticD. AnalyticE. Conceptual

: D: 1 Page Ref: 187LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

26. Which of the following tendencies causes individuals to match the likelihood of an occurrence with something that has familiarity?A. Retrospective heuristicB. Retrospective behaviorC. Availability heuristicD. Representative heuristicE. Escalation of commitment

: D: 1 Page Ref: 187LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

27. When young football players may think about someone from their local league who went on to play in the NFL fifteen years ago, this is an example of which tendency?A. Retrospective heuristicB. Retrospective behaviorC. Availability heuristicD. Representative heuristicE. Escalation of commitment

: D: 1 Page Ref: 187LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

45. ___________________ is a simple technique for overcoming pressures for conformity that retard the development of creative alternatives.A. The nominal group techniqueB. GroupthinkC. Electronic meetingsD. BrainstormingE. the Delphi technique

: D: 1 Page Ref: 193LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Application of knowledge

56. The __________________ is the a view in which decisions are made solely on the basis of their outcomes or consequences.A. justiceB. rightsC. managementD. utilitarianE. intuitive

: D: 1 Page Ref: 199LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

13. What method deals with the additional cost in a particular decision, rather than the average cost?A. Analysis of varianceB. Regression analysisC. Expected value analysisD. Marginal analysisE. Decision trees

: D: 2 Page Ref: 185LO: 7.2 Describe expected value analysisAACSB: Application of knowledge

32. An example of a _____________________ problem might include a supplier's being late with an important delivery or a customer wanting to return a mail-order purchase.A. ill-structuredB. simpleC. complexD. well-structuredE. ambiguous

: D: 2 Page Ref: 190LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

33. Problems that are straight forward, the goal clear, familiar, and easily defined is a(n) ____________________________.A. ill-structuredB. simpleC. complexD. well-structuredE. ambiguous

: D: 2 Page Ref: 190LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

36. Programmed, or routine, decision-making is the most efficient way to handle ___________________problems.A. ill-structuredB. simpleC. complexD. well-structuredE. ambiguous

: D: 2 Page Ref: 191LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

47. Diversity as part of decision-making can have advantages. Of the following, which is NOT one of those advantages of drawing from diverse workgroups?A. Fresh perspectives on issuesB. ering interpretations on how a problem is definedC. More creative in generating alternativesD. Tendency to agree with supervisor's positionE. Likelihood that creative and unique solutions will be generated

: D: 2 Page Ref: 195LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Application of knowledge

50. Big data is a term for a collection of data sets so large and complex that it becomes icult to process using _____________________.A. non-traditional data processing applicationsB. supercomputersC. artificial intelligenceD. traditional data processing applications.E. cloud computing

: D: 2 Page Ref: 197LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Application of knowledge

38. In which situation is the "develop-the-alternatives" stage in the decision-making process either nonexistent or given little attention?A. Non-programmed decisionsB. Repetitive decisionsC. Complex decisionsD. Programmed decisionsE. Simple decisions

: D: 3 Page Ref: 191LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

52. Profiting on a stock tip through insider information is an example of which rationalization viewpoint?A. "It's in my (or the organization's) best interest."B. "No one will find out."C. "I deserve it."D. "It's not really illegal or immoral."E. "Because it helps the organization, the organization will condone it and protect me."

: D: 3 Page Ref: 198LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

1. _____________________ is a rational and analytical way of looking at decisions.A. The decision-making processB. The scientific methodC. Logical analysisD. Design thinkingE. A decision tree

: A: 1 Page Ref: 181LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

4. _____________________ is a(n) discrepancy between an existing and a desired state of affairs.A. A problemB. A disconnectC. An opportunityD. A deviationE. A flaw

: A: 1 Page Ref: 181LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

6. After collecting relevant information, the second step in the decision-making process is ______________________ ,which considers those existing beyond the obvious or those that may have been used previouslyA. developing alternativesB. identifying the solutionsC. creating action itemsD. considering relevant optionsE. identifying actionable solutions

: A: 1 Page Ref: 182LO: 7.1 List the seven steps in the decision-making processAACSB: Application of knowledge

14. The concept of marginal or incremental analysis helps decision makers to ________.A. optimize returns or minimize costsB. determine global competitionC. analyze marketing costD. protect government expendituresE. establish accounting procedures

: A: 1 Page Ref: 185LO: 7.2 Describe expected value analysisAACSB: Application of knowledge

17. People using the __________________ style have low tolerance for ambiguity and seek rationality. A. DirectiveB. BehavioralC. EmpatheticD. AnalyticE. Conceptual

: A: 1 Page Ref: 186LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

18. Which of the following styles is characterized by efficiency and logic? A. DirectiveB. BehavioralC. EmpatheticD. AnalyticE. Conceptual

: A: 1 Page Ref: 186LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

29. The ______________ describes when decision makers fixate on initial information as a starting point and then fail to adjust for subsequent information.A. anchoring effectB. overconfidence biasC. framing biasD. hindsight effectE. randomness bias

: A: 1 Page Ref: 188LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

31. The _________________of a problem a supervisor faces in a decision-making situation often determines how the problem is treated.A. type B. complexityC. magnitudeD. characteristicsE. simplicity

: A: 1 Page Ref: 189LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

51. Explain how "design thinking" can benefit supervisors and organizations. How does it help make more effective decisions?

: Design thinking has been described as "approaching management problems as designers approach design problems. "More organizations are beginning to recognize how design thinking can benefit them.Although many supervisors don't deal specifically with product or process design decisions, they still make decisions about work issues that arise, and design thinking can help them be better decision makers. The design thinking approach begins with the first step of identifying problems. Design thinking says supervisors should examine problem identification collaboratively and integratively, with the goal of gaining a deep understanding of the situation. They should look not only at the rational aspects, but also at the emotional elements. Then invariably, of course, design thinking would influence how supervisors identify and evaluate alternatives. "A traditional supervisor (educated in a business school, of course) would take the options that have been presented and analyze them based on deductive reasoning and then select the one with the highest net present value. However, using design thinking, a supervisor would say, "What is something completely new that would be lovely if it existed but doesn't now?" Design thinking means opening up your perspective and gaining insights by using observation and inquiry skills, and not relying simply on rational analysis. Supervisors must realize there's more needed in making effective decisions in today's world.: 3 Page Ref: 196 - 197LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Analytical thinking

20. Individuals with a _______________style have a broad outlook and consider many alternatives. A. DirectiveB. BehavioralC. EmpatheticD. AnalyticE. Conceptual

: E: 1 Page Ref: 187LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

28. The ____________________represents the tendency to "stay the course," despite negative data that suggest one should do otherwise.A. retrospective heuristicB. retrospective behaviorC. availability heuristicD. representative heuristicE. escalation of commitment

: E: 1 Page Ref: 187LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

42. There are disadvantages of group decision-making. Of the following, which is NOT one of those disadvantages?A. Time-consuming.B. Pressure to conform.C. Ambiguous responsibility.D. Minority dominationE. Too many alternatives generated

: E: 1 Page Ref: 191LO: 7.6 Compare and contrast group decision making and individual decision making AACSB: Application of knowledge

12. What method is a useful way to analyze hiring, marketing, investment, equipment purchase, pricing, and similar decisions that involve a progression of decisions?A. Analysis of varianceB. Regression analysisC. Expected value analysisD. Marginal analysisE. Decision trees

: E: 2 Page Ref: 185LO: 7.2 Describe expected value analysis.AACSB: Application of knowledge

48. Even though diversity in decision-making can be valuable, there are drawbacks. Of the following, which does NOT represent one of the drawbacks?A. More time is spent discussing the issues.B. Language barriers make communication icultC. erent perspectives on problems and solutionsD. Discomfort being closely involved in decision makingE. Likelihood that creative and unique solutions will be generated

: E: 2 Page Ref: 196LO: 7.7 List and describe three techniques for improving group decision makingAACSB: Application of knowledge

55. When a supervisor puts the organization above the law, common morality, or society itself this is an of which rationalization viewpoint?A. "It's in my (or the organization's) best interest."B. "No one will find out."C. "I deserve it."D. "It's not really illegal or immoral."E. "Because it helps the organization, the organization will condone it and protect me."

: E: 3 Page Ref: 198LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

30. Briefly discuss how can supervisors avoid the negative effects of decision errors and biases?

: First, supervisor should be aware of them, and then don't use them! Second, supervisors also should pay attention to "how" they make decisions and try to identify the heuristics they typically use and critically evaluate how appropriate those are. Finally, supervisors could ask colleagues to help identify weaknesses in their decision-making style and then work on improving those weaknesses.: 2 Page Ref: 188LO: 7.4 Identify and explain the common decision-making errorsAACSB: Application of knowledge

23. There are four decision-making styles. Why is it helpful to understand all four styles?

: Most individuals have characteristics that fall into more than one decision-making style. Although it is best to think in terms of dominant style and backup styles, some rely almost exclusively on their dominant style whereas other, more flexible individuals shift styles depending on the situation.Understanding how two intelligent people, with access to the same information, can er in the ways they approach decisions and in the final choices they make can help explain conflicts between you and your employees. If you are a directive supervisor, you expect work to be performed rapidly and may be frustrated by the slow, deliberate actions of a conceptual or analytic. As an analytic, you might criticize a decisive employee for incomplete work or acting too hastily and you may not understand the behavioral approach of using feelings as the basis for decisions rather than rational logic.: 1 Page Ref: 187LO: 7.3 Explain the four types of decision styles.AACSB: Application of knowledge

40. Explain why setting strategy in the organization is an example of a non-programmed decision.

: Setting strategy in the organization is a non-programmed decision. This decision is erent from previous organizational decisions because the issue is new. The company faces a erent set of environmental factors—like new laws or competition from countries that previously did not compete in the global marketplace. Conditions have changed, and using the "tried-and-true" choices from the past may lead to problems in the future.: 2 Page Ref: 191LO: 7.5 Describe the two types of decision problems and the two types of decisions that are used to solve themAACSB: Application of knowledge

59. What is meant by the statement "when you face ethical choices, you face a problem"? Briefly explain the three basic criteria on which supervisors make ethical decisions.

: The inherent idea is that when a supervisor faces ethical choices, they face a problem. Ethical concerns become part of a supervisor's decision-making. For instance, one alternative may generate a considerably higher financial return than the others, but it might be ethically questionable because it compromises employee safety.Individuals can make erent decisions by using erent ethical criteria: The first is the utilitarian view of ethics, in which decisions are made solely on the basis of their outcomes or consequences. The second is the rights view of ethics calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights. The third is the justice view of ethics requires individuals to fairly and impartially impose and enforce rules so there is an equitable distribution of benefits and costs.: 1 Page Ref: 198LO: 7.8 Explain three erent ethical viewpointsAACSB: Ethical understanding and reasoning

10. The last phase of the decision-making process is follow-up and evaluation. Briefly describe some items supervisors should consider at this phase.

: The last phase of decision-making is follow-up and evaluation. Supervisors can think about and examine some of the following such as: Did our choice accomplish the desired result? Did it correct the problem originally identified in Step 1? If the follow-up and evaluation indicate the sought-after results weren't achieved, supervisors want to review the decision process to see where they went wrong. Supervisors essentially have a brand-new problem and should go completely through the decision process again with a fresh perspective.: 1 Page Ref: 184LO: 7.1 List the seven steps in the decision-making processAACSB: Analytical thinking

44. Explain the statement: The evidence indicates that, on average, groups make more accurate decisions than individuals. Is this statement always accurate? If not, what are the exception(s)?

: evidence indicates that, on average, groups make more accurate decisions than individuals. This doesn't mean all groups outperform every individual. Rather, group decisions have been found to be more effective than those that would have been reached by the average individual in the group. However, they seldom are as good as decisions by the best individual.If better is defined in terms of decision speed, individuals are superior. Group decision processes are characterized by give-and-take, which consumes time.Decision quality can also be assessed in terms of the degree to which a solution demonstrates creativity. Groups tend to be more creative than individuals. This requires, however, that the forces that foster groupthink—pressure to repress doubts about the group's shared views, the validity of favored arguments, excessive desire by the group to give an appearance of consensus, and the assumption that silence or abstention by members is a yes vote—be constrained.Finally, because group decisions have input from more people, they are likely to result in solutions that have a higher degree of acceptance.: 3 Page Ref: 193LO: 7.6 Compare and contrast group decision making and individual decision makingAACSB: Analytical thinking