Decision Making and Problem Solving

Which of the following statements about nonprogrammed decisions is FALSE? a. The decisions are poorly structured. b. The problem situation is nonroutine. c. The consequences of decision making are far reaching. d. The decisions are rarely a responsibility of top management. e. Goals are often vague.

D

.__________ is person's ability to generate new ideas or to conceive of new perspectives on existing ideas.

Creativity

Which of the following is a structured variation of a small-group discussion to reach consensus? a. prospect theory b. brainstorming c. the Delphi technique d. the nominal group technique e. none of these

D

Which of the following statements about programmed decisions is FALSE? a. Information is readily available. b. Specific methods for handling them exist. c. They are highly structured. d. Judgment and creativity are the basis of solution. e. Goals are clear and well known.

D

Which of the following is true about brainstorming? a. the number of ideas should be limited b. ideas should be criticized and judged quickly c. ideas should not be written down d. implausible ideas should not be suggested e. none of these

E

____ decisions tend to involve situations that occur often in a company. a. Nonprogrammed b. Procedural c. Repetitive d. Major e. Programmed

E

When using the _______________ group technique, group members follow a generate-discussion-vote cycle until they reach a decision.

nominal

A ______ decision involves a nonroutine, poorly structured problem and cannot be made with existing decision rules.

nonprogrammed

What information condition lies between certainty and uncertainty in making decisions? a. Risk b. Coin tossing c. Problem solving d. Decision rules e. Guesswork

A

____________________ decisions are well structured, recurring, and made according to decision rules.

Programmed

Match each of the following situations with the concept it most clearly illustrates. a. Hugh needs to buy a new laptop. He searches online until he finds the first laptop that fits his price and performance needs, then he immediately buys it. b. In a hand of poker, Kevin makes a bid and Julie calls. Later, Kevin makes a higher bid, and Julie calls again. At the end of the hand, when Julie goes all in, Kevin's almost certain she has the better cards. However, because he's already invested so much in the hand, Kevin feels obliged to call. c. On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly. Still, something about the guy seems "off" to Nina, and though she can't put her finger on what it is, she hires someone else. d. Simone knows that the laptop she's about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online. However, she desperately needs a laptop immediately, so goes ahead with the purchase. Satisficing:

A

Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates. a. Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive. b. Bob decides which business schools he'd like to attend. c. If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year. d. Bob completes and sends out applications to the business schools he'd like to attend. e. Bob wants to go to a good business school. f. After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them. Generate alternatives:

A

Which of the following includes conditions conducive to groupthink? a. Group cohesiveness, leader's promotion of personal preferences, insulation from expert opinions b. Group cohesiveness, members' promotion of personal preferences, best decision is goal c. Group cohesiveness, leader promotion of personal preferences, critical thinking urged d. Members' promotion of personal preferences, best decision is goal, critical thinking urged e. Group cohesiveness, member's promotion of personal preferences, insulation from expert opinions

A

The practical approach combines elements of both the rational and behavioral approaches

T

Verification is the final step in the creative process.

T

The information needed to make a programmed decision is ________ available, and the problem is ___________ structured. a. readily, highly b. not readily, not highly c. not readily, highly d. readily, not highly e. somewhat readily, somewhat highly

A

According to prospect theory, people are more motivated by a. the threat of losing something than by the prospect of gaining something. b. the prospect of gaining something than by the threat of losing something. c. internal values than by external rewards. d. external rewards than by internal values. e. none of these

A

According to the rational decision-making approach, what is the second step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type

A

____ 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. a. Post-decision dissonance b. Groupthink block c . Satisficing d. Bounded rationality e. Suboptimizing

D

Order the steps of the creative process. a. insight b. incubation c. verification d. preparation

D - B - A - C

Decision making is choosing one alternative from among several.

T

Nonprogrammed decisions are most common at what level of the organization? a. Lower b. Top c. Managerial d. Subordinate e. Middle

b

A(n) ____________ plan is an alternative course of action that can be taken if the primary course of action is unexpectedly disrupted or rendered inappropriate.

contingency

Examining alternatives only until a solution that meets minimal requirements is found and then ceasing to look for a better one is called ____________________.

satisficing

The fourth step of the creative process is ___________. a. Verification b. Insight c. Incubation d. Preparation e. Application

A

Group polarization is the tendency for group members to converge on a common decision outcome or solution.

F (Groupthink)

Decision rules are used to make programmed decisions.

T

. ____ is the extent to which a decision maker is willing to gamble when making a decision. a. Individual ethics b. Risk propensity c. Individual stressors d. Organizational culture e. Leadership style

B

A decision maker's actions should be guided by a. personal opinions. b. a goal. c. an operating budget. d. interpersonal relationships. e. a code of honor

B

A group member who discusses group deliberations with an expert outsider and reports her findings to the group is most likely trying to prevent a. brainstorming. b. groupthink. c. escalation of commitment. d. group polarization. e. risk propensity.

B

A person's beliefs about what constitutes right and wrong behavior are called a. hypervigilance. b. ethics. c. self-reactions. d. rationalizations. e. escalations of commitment.

B

A(n) _______ is an informal alliance of individuals or groups formed to achieve a common goal. a. group b. coalition c. team d. armada e. union

B

According to the rational decision-making approach, evaluate the alternatives a. puts the decision into action. b. involves assessing all possible alternatives. c. involves selecting an alternative with the highest payoff. d. is the most crucial step. e. diagnoses the problem.

B

Post-decision ____________________ refers to the doubt, tension, or regret that often follows making a decision when more than one alternative was attractive

dissonance

According to the rational decision-making approach, what is the fourth step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type

B

All of the following are features of group discussion that contribute to group polarization EXCEPT a. group members could take an extreme view of an opinion b. task uncertainty can be impacted by the decision c. persuasive arguments can encourage polarization d. members may feel they are not individually responsible e. members will accept a more radical decision from their own

B

Being able to see similarities between situations, phenomena, or events is a creative ability called ____ thinking. a. referent b. convergent c. divergent d. emergent e. parallel

B

Decision making is a. finding the answer to a question. b. choosing one alternative from among several. c. staffing positions within the organizational hierarchy. d. motivating employees to pursue organizational goals. e. fixing problems that arise in the operations of the business.

B

If a customer voices a complaint about food taste and temperature, certain restaurants always offer a complimentary meal. This represents a. a standard decision. b. a decision rule. c. a nonprogrammed decision. d. experience. e. cognitive dissonance.

B

Match each of the following situations with the concept it most clearly illustrates. a. Hugh needs to buy a new laptop. He searches online until he finds the first laptop that fits his price and performance needs, then he immediately buys it. b. In a hand of poker, Kevin makes a bid and Julie calls. Later, Kevin makes a higher bid, and Julie calls again. At the end of the hand, when Julie goes all in, Kevin's almost certain she has the better cards. However, because he's already invested so much in the hand, Kevin feels obliged to call. c. On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly. Still, something about the guy seems "off" to Nina, and though she can't put her finger on what it is, she hires someone else. d. Simone knows that the laptop she's about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online. However, she desperately needs a laptop immediately, so goes ahead with the purchase. Escalation of commitment:

B

Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates. a. Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive. b. Bob decides which business schools he'd like to attend. c. If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year. d. Bob completes and sends out applications to the business schools he'd like to attend. e. Bob wants to go to a good business school. f. After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them. Choose an alternative:

B

One basis for making programmed decisions is a. a lack of information. b. a set of decision rules. c. creativity. d. movement. e. group formation.

B

The third step of the creative process is ___________. a. verification b. insight c. incubation d. preparation e. application

B

What mode of thinking occurs when people are deeply involved in a cohesive in-group and members' strivings for unanimity override their motivation to realistically appraise alternative courses of action? a. brainstorming b. groupthink c. escalation of commitment d. group polarization e. risk propensity

B

When ____, the decision maker knowingly accepts less than the best possible outcome. a. optimizing b. suboptimizing c. compromising d. satisficing e. narrowing

B

When groupthink occurs, silence is viewed as agreement. This most directly contributes to the a. shared illusion of invulnerability. b. shared illusion of unanimity. c. stereotyped views of "enemy" leaders. d. unquestioned belief in the group's inherent morality. e. collective efforts to rationalize or dismiss warnings.

B

Which of the following is true about intuition? a. it is largely arbitrary b. it evolves over time c. it's not based on rationality d. it's similar to guessing e. all of these

B

Which of the following represents the step of the rational decision-making approach in which the outcomes of the decision are compared to the desired goal? a. Analyze the decision b. Control: measure and adjust c. Determine the goal d. Collect data e. Analyze the situation

B

While driving home from a hard day at work, Susan finally realizes the solution to the problem she had been having with a certain customer. Susan just reached which stage of the creative process? a. Instigation b. Insight c. Incubation d. Verification e. Preparation

B

According to the rational decision-making approach, what is the fifth step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type

C

All of the following are symptoms of groupthink EXCEPT a. an illusion of invulnerability. b. collective efforts to rationalize or discount warnings. c. a lack of idea promotion from the group leader. d. stereotyped views of enemy leaders. e. direct pressure on members who present contrary views.

C

All of the following are used in the nominal group technique of decision-making EXCEPT a. individuals convene to address an issue. b. the issue is described to the group. c. each proposed idea must be wholly original. d. initially, no discussion among the members is permitted. e. members take turns reporting their ideas.

C

An innate belief about something without conscious consideration is called a. escalation of commitment. b. coalition. c. intuition. d. groupthink. e. self-reaction.

C

Being able to see differences between situations, phenomena, or events is a creative ability called ____ thinking. a. referent b. convergent c. divergent d. emergent e. parallel

C

Contingency plans are a part of what phase of the decision-making process? a. Stating the goal b. Evaluating alternatives c. Choosing an alternative d. Implementation e. Alternative generation

C

If a Human Resources manager can estimate the probability that a certain percentage of employees will take advantage of a proposed benefit plan, the manager is operating under a condition of a. certainty. b. estimation. c. risk. d. uncertainty. e. rationalization.

C

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 ____. a. implementing the plan. b. developing marketing strategies. c. planning for contingencies. d. negative thinking. e. groupthink.

C

Jim purchases stock in a public company and refuses to sell it even after repeated drops in the original price he paid for the stock. Jim has decided to purchase more of the stock in anticipation of making a profit, and has decided to keep the stock in the face of increasing losses. Jim is suffering from a. organizational delusion. b. problem misidentification. c. escalation of commitment. d. success. e. suboptimizing

C

Managers who are cautious and try to adhere to the rational decision-making model a. are more likely to make mistakes. b. frequently make decisions that lead to big losses. c. have a lower risk propensity than other managers. d. frequently make decisions that lead to big successes. e. suffer from bounded rationality

C

Match each of the following situations with the concept it most clearly illustrates. a. Hugh needs to buy a new laptop. He searches online until he finds the first laptop that fits his price and performance needs, then he immediately buys it. b. In a hand of poker, Kevin makes a bid and Julie calls. Later, Kevin makes a higher bid, and Julie calls again. At the end of the hand, when Julie goes all in, Kevin's almost certain she has the better cards. However, because he's already invested so much in the hand, Kevin feels obliged to call. c. On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly. Still, something about the guy seems "off" to Nina, and though she can't put her finger on what it is, she hires someone else. d. Simone knows that the laptop she's about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online. However, she desperately needs a laptop immediately, so goes ahead with the purchase. intuition:

C

Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates. a. Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive. b. Bob decides which business schools he'd like to attend. c. If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year. d. Bob completes and sends out applications to the business schools he'd like to attend. e. Bob wants to go to a good business school. f. After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them. Devise a contingency plan:

C

Nonprogrammed decisions are usually made by a. all employees within an organization. b. union workers. c. upper management. d. middle management. e. lower management.

C

Nonprogrammed decisions require managers to use ____________ rather than ___________. a. individuals, groups b. groups, individuals c. creativity, decision rules d. decision rules, creativity e. strategic thinking, critical thinking

C

One important method for enhancing creativity is to make it a part of the organization's ____. a. standard operating procedures. b. decision-making processes. c. culture. d. strategic plans. e. none of the above

C

The Delphi technique is designed for use by groups a. that are very large b. that are very small. c. that do not meet face-to-face. d. that have suffered from groupthink in the past. e. that are familiar with the rules of brainstorming.

C

The decision-making conditions of certainty, uncertainty, and risk are relevant while the decision maker is a. stating the situational goal. b. identifying the problem. c. evaluating alternatives. d. generating alternatives. e. determining the decision

C

The second step of the creative process is __________. a. verification b. insight c. incubation d. preparation e. application

C

What term refers to the act of persisting with a failing course of action? a. brainstorming b. groupthink c. escalation of commitment d. group polarization e. risk propensity

C

Which of the following statements about brainstorming is FALSE? a. It's used in the idea generation phase of decision making. b. Members present ideas and clarify them. c. Ideas are recorded in secret. d. Ideas are recorded on a flip chart. e. It does not provide resolution to the problem.

C

Which of the following statements about ethical dilemmas is FALSE? a. They may center on direct personal gain. b. They may center on indirect personal gain. c. They may center on risk propensity. d. They may center on simple personal preferences. e. All of these are true

C

According to research, the common attributes of creative individuals include which of the following? a. Being forced to work at a very young age b. Living in a highly developed country c. Changing basic personality attributes as a teenager d. Being raised in an environment that nurtured creativity e. Having fewer brothers and sisters

D

According to the rational decision-making approach, what is the first step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type

D

Decisions that recur infrequently and have no decision rules are ____ decisions. a. certain b. risk c. programmed d. nonprogrammed e. uncertain

D

In ________, the decision maker examines alternatives only until a solution that meets minimal requirements is found. a. optimizing b. suboptimizing c. compromising d. satisficing e. narrowing

D

It is possible for the same decision to be ____________ for an experienced manager but ___________ for a more junior manager. a. tactical, strategic b. strategic, tactical c. nonprogrammed, programmed d. programmed, nonprogrammed e. none of these

D

According to the rational decision-making approach, what is the third step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type

E

Creative thinking is enhanced by which of the following? a. attraction to complexity b. high levels of energy c. intelligence d. openness e. all of these

E

In the study of groupthink, what term refers to self-appointed members who shield the group from conflicting information? a. group rationalizers b. group poles c. risky shifters d. self censors e. mindguards

E

Match each of the following situations with the concept it most clearly illustrates. a. Hugh needs to buy a new laptop. He searches online until he finds the first laptop that fits his price and performance needs, then he immediately buys it. b. In a hand of poker, Kevin makes a bid and Julie calls. Later, Kevin makes a higher bid, and Julie calls again. At the end of the hand, when Julie goes all in, Kevin's almost certain she has the better cards. However, because he's already invested so much in the hand, Kevin feels obliged to call. c. On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly. Still, something about the guy seems "off" to Nina, and though she can't put her finger on what it is, she hires someone else. d. Simone knows that the laptop she's about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online. However, she desperately needs a laptop immediately, so goes ahead with the purchase. Suboptimizing:

D

Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates. a. Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive. b. Bob decides which business schools he'd like to attend. c. If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year. d. Bob completes and sends out applications to the business schools he'd like to attend. e. Bob wants to go to a good business school. f. After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them. Implement the Plan:

D

The Delphi technique is a useful way to gather opinions from experts who a. don't like each other. b. desire anonymity. c. live far away from each other. d. all of these e. none of these

D

The Delphi technique uses which of the following to gather opinions from experts? a. conference calls b. group meetings c. interviews d. questionnaires e. stream-of-consciousness journals

D

The behavioral approach to decision-making is characterized by all of the following EXCEPT a. it uses procedures b. it uses rules of thumb c. it uses suboptimizing d. it uses logic e. it uses satisficing

D

The creative process normally begins with a period of ____. a. Verification b. Insight c. Incubation d. Preparation e. Application

D

The last step in the rational decision-making process is a. Create a contingency plan b. Determine the type of decision c. Evaluate alternatives d. Control: Measure and Adjust e. Implement the plan

D

The risk of groupthink may be curbed by increasing the ____________ of senior management. a. homogeneity b. size c. male-to-female ratio d. diversity e. none of these

D

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 a. controlling. b. engaged in bounded rationality. c. suboptimizing. d. satisficing. e. using procedures and rules of thumb.

D

What term refers to the tendency of people to make more extreme decisions in a group than when alone? a. brainstorming b. groupthink c. escalation of commitment d. group polarization e. risk propensity

D

When ______________ arises, a decision maker questions the decision made and searches for information to bolster it. a. post-decision uncertainty b. conflict reduction c. rationalization bias d. post-decision dissonance e. positive reinforcement

D

Which of the following is NOT a category of prescriptions for preventing groupthink? a. process prescriptions b. individual prescriptions c. leader prescriptions d. group prescriptions e. organizational prescriptions

D

The ____________________ technique is a decision-making method designed for groups that do not meet face to face

Delphi

Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates. a. Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive. b. Bob decides which business schools he'd like to attend. c. If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year. d. Bob completes and sends out applications to the business schools he'd like to attend. e. Bob wants to go to a good business school. f. After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them. State the goal:

E

Satisficing refers to making a(n) _________ rather than _________ decision. a. intuitive, rational b. short-term, longterm c. correct, incorrect d. optimal, satisfactory e. satisfactory, optimal

E

The rational decision-making approach assumes decision makers a. have complete information. b. are objective. c. are systematic in their approach to decisions. d. work in an organization that encourages logical choices. e. all of these

E

To help prevent groupthink, leaders should assign the role of "_____________" to each group member to allow each member to freely voice objections and doubts. a. warning dismisser b. risky shifter c. unquestioned believer d. mindguard e. critical evaluator

E

Which of the following does NOT tend to be one of the toughest managerial decisions? a. opening a business b. deciding which new product to launch c. buying or selling a business d. hiring and firing e. creating work schedules

E

Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates. a. Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive. b. Bob decides which business schools he'd like to attend. c. If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year. d. Bob completes and sends out applications to the business schools he'd like to attend. e. Bob wants to go to a good business school. f. After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them. Evaluate alternatives:

F

The final stage of the rational decision-making process involves implementing the decision.

F - Control: Measurement and Adjustment

The creative process generally involves seven different steps that have to occur before a creative idea can be generated

F - Four

Insight represents a period of less intense conscious concentration during which knowledge and ideas develop.

F - Incubation (p.309)

Suboptimizing involves selecting the first acceptable solution that meets minimal requirements

F - Satisficing

The decision maker who lacks enough information to estimate the probability of outcomes faces a condition of certainty.

F - condition of uncertainty

Programmed decisions are common at the higher levels of the organization.

F - lower levels

Susan's recent decision about which company her conglomerate should buy was a programmed decision

F - nonprogrammed

A nonprogrammed decision usually recurs often enough for decision rules to be developed

F - rarely occurs

The rational decision-making process begins with the identification of a problem.

F - statement of situational goal

The rational decision-making process assumes that managers follow an unsystematic, random process when evaluating alternatives

F - systematic step by step process for making decisions

The Delphi technique is a method to systematically gather the judgments of experts who work closely together at a common worksite.

F - they do not meet face-to-face

____________________ is knowingly accepting less than the best possible outcome.

Suboptimizing

A crucial assumption of the behavioral approach to decision-making is that decision makers operate with bounded rationality rather than with the perfect rationality assumed by the rational approach.

T

An illusion of invulnerability and stereotyped views of "enemy" leaders are symptoms of groupthink.

T

Contingency plans are alternative actions that can be taken if the primary course of action is disrupted or rendered inappropriate

T

Decisions in organizations can be classified according to their frequency and information conditions.

T

In problem-solving tasks, groups usually develop more and better solutions than do individuals.

T

In the nominal group technique, group members share their ideas with each other and then vote on them in private.

T

Nonprogrammed decisions require problem solving that identifies answers to unique questions or issues

T

Post-decision dissonance is doubt about a choice already made.

T

The administrative model of decision making does not attempt to prescribe how managers should make decisions.

T

The behavioral model focuses on human behaviors and tendencies when evaluating the decision-making process

T

One of the strengths of the ___________________________________ to decision-making is that is forces the decision maker to consider a decision in a logical, sequential manner, and the in-depth analysis of alternatives enables the decision maker to choose on the basis of information rather than emotion or social pressure.

rational approach