MGT Chapter 6

Which of the following is defined as whether questions are presented as gains or losses: a. Framing b. Satisficing c. Bounded rationality d. Maximizing

a. Framing

Which of the following is defined as production of a novel and appropriate response, product, or solution to an open-ended task? a. Creativity b. Satisficing c. Rigidity d. Flow

a. Creativity

Adeline decides to allocate training expenses equally across all departments in her organization. She is likely using which of the following heuristics? a. Equality heuristic b. Recognition heuristic c. Fluency heuristic d. Inequality heuristic

a. Equality heuristic

According to the text, which of the following is the best support for decisions? a. Facts and evidence b. Historical precedent c. Personal experience d. Gut feelings

a. Facts and evidence

According to the text, which of the following is not a benefit of intuition? a. Hinders personal development b. Expedited decision making c. Improvement of the decision in some way d. Promotion of decisions compatible with company culture

a. Hinders personal development

Which of the following is defined as the tendency for individuals with outcome knowledge to claim they would have estimated a probability of occurrence for the reported outcome that is higher than they would have estimated without the outcome information: a. Hindsight bias b. Foresight bias c. Overconfidence bias d. Escalation of commitment

a. Hindsight bias

According to the book Why Quitters Win, all of the following are characteristics of an effective leader, except: a. Maintain indecisiveness b. Weighs both sides of an issue c. Decides quickly d. Gains support from those on both sides for effective execution

a. Maintain indecisiveness

Which of the following is not something author Malcolm Gladwell noted in his book, Blink: The Power of Thinking without Thinking? a. People should analyze every possible alternative before making decisions b. People are influences by the unconscious mind when making decisions c. People may not know why they know things, but they are certain they know them d. People learn by their experiences

a. People should analyze every possible alternative before making decisions

Based on the text, bounded rationality is the result of all of the following, except: a. Rational decision-making (e.g., exhaustive assessment of all possible alternatives) b. Organizational factors (e.g., political behavior around a decision) c. Individual limits on the ability to process information (e.g., limiting the information search) d. Perceptions (e.g., perceptual errors related to the limited availability to make a decision)

a. Rational decision-making (e.g., exhaustive assessment of all possible alternatives)

Which of the following decisional roles from Mintzberg's analysis of managerial work is defined as someone who decides how to prioritize the direction of assets? a. Resource allocator b. Negotiator c. Disturbance handler d. Entrepreneur

a. Resource allocator

Which of the following occurs when a person has already invested in a course of action, and does not recognize what they invested initially is gone? a. Sunk costs fallacy b. Satisficing c. Hindsight bias d. Overconfidence bias

a. Sunk costs fallacy

Individual decision making affects firm performance. a. True b. False

a. True

Losses weigh more heavily emotionally in decision making than an equivalent gain. a. True b. False

a. True

Personality plays a role in decision making. a. True b. False

a. True

The leader-member relationship can enhance creativity at work. a. True b. False

a. True

Bethany has recently studied heuristics in her Organizational Behavior class. She understands that the selection of decision rules is a two-step process in which the task and ________ constrain the set of applicable rules: a. the individual's memory b. organizational knowledge mapping c. the individual's intuition d. manager's discretion

a. the individual's memory

Tamra is getting ready to graduate with a management degree from her university. She is having difficulties deciding what path she should take with the work she will do after graduating. The issue Tamra is facing is: a. Career placement b. Career indecision c. Career training d. Career decisiveness

b. Career indecision

Which of the following is not an organizational process identified by the text that may influence the decision-making process? a. The situation b. Certainty in decision outcomes c. Interpersonal gaming d. The need to justify prior decisions

b. Certainty in decision outcomes

Terry was told that as a leader he should be prepared to face "wicked organizational problems." He should know that these types of problems are described as: a. Simple, straightforward b. Complex, dynamic, and constrained c. Highly certain d. Limitless for application of analysis or heuristics

b. Complex, dynamic, and constrained

Michelle recently read the book Why Quitters Win, and wants to apply some of the concepts to improve decision making in her organization through training. Which of the following is not one of the recommendations to improve her decision making as discussed in the book? a. Have a clearly defined starting point b. Remove empowerment from decision makers c. Have a clearly defined ending point d. Provide incentive for decision making

b. Remove empowerment from decision makers

Devon is under time pressure to hire a new sales manager for her company. The first person she interviews, Steve, meets all of the minimum requirements for the position, but he may or may not be the best overall candidate she is scheduled to interview. If Devon hires Steve before interviewing the other candidates she has: a. Made a rational decision based on the rational decision-making model b. Satisficed c. Definitely made the best decision possible d. Optimized her decision making

b. Satisficed

Christine recently read Blink: The Power of Thinking without Thinking by Malcolm Gladwell and she is trying to explain the concept of "thin-slicing" to her colleagues. Which of the following statements could she use to best describe the concept of "thin-slicing"? a. The unconscious mind makes decisions based on no prior experience. b. The unconscious mind finds patterns in situations and behaviors based upon very narrow experiences. c. The unconscious mind finds patterns in situations and behaviors based upon a large range of experiences. d. The conscious mind finds patterns in situations and behaviors based on prior research and best practices.

b. The unconscious mind finds patterns in situations and behaviors based upon very narrow experiences.

Prospect theory explains: a. Why individuals always make rational decisions b. Why individuals sometimes make irrational decisions c. People put more emphasis on losses than gains d. The rational decision-making model

b. Why individuals sometimes make irrational decisions

Which of the following from the book Thinking Fast and Slow describes System 1 Thinking? a. Complex thinking that demands mental effort, including complex calculations b. Rational decision-making c. Automatic and effortless decision making that is often involuntary d. Satisficing

c. Automatic and effortless decision making that is often involuntary

Which of the following is an unconscious psychological process that hinders the quality of decision making? a. Individual rights b. Justice c. Bounded ethicality d. Utilitarianism

c. Bounded ethicality

Which of the following is a characteristic of intuition in decision making a. Intuition has a good reputation b. Intuition results in longer time to make decisions c. Most managers acknowledge that intuition plays a role in their decisions d. Intuition has no place in organizational decisions

c. Most managers acknowledge that intuition plays a role in their decisions

Which of the following is not a way that personality traits play a role in decision making? a. Less emotionally stable individuals can be indecisive b. Feeling out of control leads to indecisiveness c. Optimism leads to indecisiveness d. Low self-esteem leads to indecisiveness

c. Optimism leads to indecisiveness

Which of the following is defined as inflated assurance in how accurate a person's knowledge or estimates are? a. Hindsight bias b. Escalation of commitment c. Overconfidence bias d. I-knew-it-all-along effect

c. Overconfidence bias

Which of the following is a perspective that highlights the importance of uncertainty and risk to the decision-making process? a. Rational decision-making model b. Bounded rationality c. Prospect theory d. Satisficing

c. Prospect theory

Which of the following is not a step in the rational decision-making model: a. Problem or opportunity identification b. Generate alternatives c. Seek consensus from stakeholders d. Make decision

c. Seek consensus from stakeholders

Which of the following is not one of the four stages of the creative leadership model? a. Generating b. Optimizing c. Synthesizing d. Conceptualizing

c. Synthesizing

Stella typically makes decisions with complex thinking that demands mental effort, including complex calculation. Which of the following is the type of decision-making Stella is exhibiting? a. Rational decision-making b. System 2 Thinking c. System 1 Thinking d. Satisficing

c. System 1 Thinking

A person who cannot prioritize activities in order of importance demonstrates ______. a. rational decision-making b. decisiveness c. indecisiveness d. bounded rationality

c. indecisiveness

Which of the following is described as when decision makers have limits on their ability to assimilate large amounts of information? a. Rational decision-making b. Constrained rationality c. Hyper rationality d. Bounded rationality

d. Bounded rationality

All of the following are related to career indecision, except: a. Neuroticism b. Lower extroversion c. Perfectionism d. Conscientiousness

d. Conscientiousness

All of the following are assumptions of the rational decision-making model, except: a. Decision makers must have complete information b. Decision makers must make the decision as quickly as possible c. Decision makers must be able to develop an exhaustive list of alternatives d. Decision makers must choose a decision with the highest value and/or lowest cost to the organization.

b. Decision makers must make the decision as quickly as possible

Which of the following characterizes decision making for leaders? a. Decision making is an innate skill and cannot be improved with training b. Decisions are often made under pressure and with incomplete information c. Decision making is relatively unimportant to overall organizational effectiveness d. Decisions are always straightforward and lack complexity

b. Decisions are often made under pressure and with incomplete information

Which of the following decisional roles from Mintzberg's analysis of managerial work is defined as someone who resolves conflict and chooses strategic alternatives? a. Entrepreneur b. Disturbance handler c. Resource allocator d. Negotiator

b. Disturbance handler

Common sense and intuition are the same. a. True b. False

b. False

How decisions are framed will not affect the decisions that are made. a. True b. False

b. False

Intuition should not be involved in a leader's decision making-processes. a. True b. False

b. False

It is impossible to improve decision making by training. a. True b. False

b. False

Overconfidence is a good thing for decision makers. a. True b. False

b. False

System 1 thinking requires mental effort, including complex calculations. a. True b. False

b. False

According to recent research on intuition and gender, which of the following was not listed in the text as a consideration on whether women's intuition is a myth or reality? a. There appears to be an association between emotions and decision making. b. Female decision makers tend to prefer analysis in making decisions. c. Female decision makers are significantly more likely to use intuition in making decisions. d. Females have a more heightened awareness of emotions.

b. Female decision makers tend to prefer analysis in making decisions.

Wilma wants to avoid decision traps and bounded ethicality in her decisions. She can do all of the following except: a. Keep her mind open b. Forget past mistakes in decision making c. Be able to view a problem from a variety of perspectives d. Think creatively about her decisions

b. Forget past mistakes in decision making

Which of the following describes a "black swan"? a. Highly likely and consequential event b. Highly unlikely but consequential event c. Highly unlikely and inconsequential event d. Something difficult to explain in retrospect

b. Highly unlikely but consequential event

Another term for hindsight bias is: a. Hubris b. I-knew-it-all-along effect c. Escalation of commitment d. Overconfidence

b. I-knew-it-all-along effect

Lenore is face with a dilemma in the workplace. She plans to follow the rational decision-making model to resolve this issue. Which of the following is the first step she should take? a. Gather information b. Identify the problem c. Generate alternatives d. Develop action plans

b. Identify the problem

Albert has learned that there are benefits to using intuition in making decisions. Which of the following benefits might Albert reap? a. Results in slower decision making b. Improves the decision in some way c. Does not promote decisions compatible with company culture d. Hinders personal development

b. Improves the decision in some way

System 1 Thinking represents: a. Satisficing b. Intuition c. Bounded rationality d. Rational decision-making

b. Intuition

Chloe heard her roommate talking about escalation of commitment, a term she learned in her management class. Chloe wants to avoid escalation of commitment in her decision making. Chloe can implement all of the following to reduce the possibility of escalation of commitment, except: a. Create accountability for decision processes only, not outcomes b. Keep the focus on herself c. Be careful about compliments d. Separate the initial decision maker from the decision evaluator

b. Keep the focus on herself

Tina is a new manager and is interested in being promoted quickly in her new organization. Based on the text, which of the following would you recommend for Tina: a. Make decisions that primarily benefit herself b. Make decisions that positively impact the organization c. Let her subordinates make decisions that she is responsible for d. Make decisions the hinder the profitability of the organization

b. Make decisions that positively impact the organization

Which of the following decisional roles from Mintzberg's analysis of managerial work is defined as someone who protects the interests of the business by interacting within teams, departments and the organization? a. Resource allocator b. Negotiator c. Disturbance handler d. Entrepreneur

b. Negotiator

Malinda is aware of the overconfidence bias because she read about it in her organizational behavior class. She wants to reduce the influence it has in her decision making. Malinda can engage in all of the following to reduce her overconfidence bias, except: a. Assigning a trusted follower to critique the decisions b. Not think about past decision-making errors c. Be open to different opinions d. Placing limits on her power by having someone else approve decisions

b. Not think about past decision-making errors

Which of the following is not one of Amabile's three component model of creativity? a. Expertise b. Novelty c. Task motivation d. Creativity skills

b. Novelty

If one of two alternatives is recognized, infer that it has the higher value on the criterion. What heuristic is this? a. Fluency heuristic b. Recognition heuristic c. Equality heuristic d. Inequality heuristic

b. Recognition heuristic

Julius is deciding between two alternatives for his department: one will have a higher Return on Investment (ROI) than the other. If he quickly selects the one with the higher ROI, he is likely relying on which of the following heuristics? a. Equality heuristic b. Recognition heuristic c. Fluency heuristic d. Inequality heuristic

b. Recognition heuristic

Consider the following example. You have $2,000, and you must pick one of the following choices - Choice A, you have a 50% chance of losing $1,000 and a 50% chance of losing $0. Choice B, you have a 100% chance of losing $500. According to the prospect theory, an overwhelming number of people choose: a. Either choice A or choice B b. Neither choice A nor choice B c. Choice A d. Choice B

c. Choice A

Shedrick is trying to reduce situational factors that may lead to indecisiveness in his employees. Which of the following is not one of the factors discussed in the text? a. Lack of information b. Conflicting goals c. Clear goals d. Uncertainty of outcomes

c. Clear goals

Which of the following from the book Thinking Fast and Slow describes System 2 Thinking? a. Automatic and effortless decision making that is often involuntary b. Rational decision-making c. Complex thinking that demands mental effort, including complex calculations d. Satisficing

c. Complex thinking that demands mental effort, including complex calculations

The final step in the rational decision-making model is: a. Make decision b. Evaluate alternatives c. Develop action plans d. Identify the problem

c. Develop action plans

Which of the following decisional roles from Mintzberg's analysis of managerial work is defined as someone who looks for new ideas and opportunities? a. Negotiator b. Disturbance handler c. Entrepreneur d. Resource allocator

c. Entrepreneur

Which of the following is when individuals continue a failing course of action after receiving feedback that show it isn't working? a. Overconfidence bias b. Sunk costs fallacy c. Escalation of commitment d. Hindsight bias

c. Escalation of commitment

If both alternatives are recognized but one is recognized faster, infer that it has the higher value on the criterion. What heuristic is this? a. Equality heuristic b. Recognition heuristic c. Fluency heuristic d. Inequality heuristic

c. Fluency heuristic

Trevor is trying to enter a new market quickly before competition enters. He is most likely to use which of the following heuristics? a. Recognition heuristic b. Inequality heuristic c. Fluency heuristic d. Equality heuristic

c. Fluency heuristic

Another term for "decision rules" is: a. Intuition b. Framing c. Heuristics d. Satisficing

c. Heuristics

During the step for evaluating alternatives in the rational decision-making model, alternatives are analyzed in terms of all of the following, except: a. Feasibility b. Costs c. Benefits d. Public opinion

d. Public opinion

Betty is a senior management major and she is deciding where to apply for a job after graduation. She talks to all of her peers (other management seniors) and decides to apply to the same companies that they have applied to, even though they have not found jobs yet. The heuristic she is following is: a. Take-the-best b. Recognition heuristic c. Imitating the majority d. Imitating the successful

c. Imitating the majority

Another term for best practices is: a. Imitating the boss b. Imitating the competition c. Imitating the successful d. Imitating the majority

c. Imitating the successful

All of the following are characteristics of intuition, except: a. It is not a conscious process b. Involves holistic associations c. It is the same as common sense d. It is produced rapidly

c. It is the same as common sense

Andre has been accused of exhibiting too much political behavior at work in the past. According to the text, what is one way he can reduce this perception of his political behavior? a. Focus on developing his own power in an organization b. Get others to do what he wants c. Make more effective decisions d. Expand his knowledge of the political network in his organization.

c. Make more effective decisions

Satisficing is: a. Making decisions that are satisfying b. Making the most optimal decision possible c. Making a decision that is satisfactory but perhaps not optimal d. Making an unsatisfactory decision

c. Making a decision that is satisfactory but perhaps not optimal

Dawn learned about the rational decision-making model in business school. She remembers that there are limitations of the rational model, which include all of the following, except: a. Managers sometimes fail to identify the problem correctly at the start of the decision-making process b. Managers may consider only a few alternatives rather than a broad set of possible options c. Managers may ignore the most obvious alternative d. Managers sometimes suboptimize rather than choose an optimal alternative

c. Managers may ignore the most obvious alternative

Which of the following is not a difference between intuition and common sense? a. Common sense is not typically repetitive b. Common sense is often social (i.e., what the majority of people think as consensus) c. Common sense is a more simplified thought process d. Common sense is perception without thinking

d. Common sense is perception without thinking

According to Mintzberg's classic analysis, which of the following decisional roles is most central to the nature of managerial work? a. Relationship-building b. Communication c. Training d. Decision making

d. Decision making

Consider the following example. You have $1,000, and you must pick one of the following choices - Choice A, you have a 50% chance of gaining $1,000 and a 50% chance of gaining $0. Choice B, you have a 100% chance of gaining $500. According to the rational decision-making model, which should you choose? a. Choice A always, it maximizes the outcome b. Choice B always, it maximizes the outcome c. Neither choice A nor choice B d. Either choice A or choice B, the expected value is the same for both outcomes

d. Either choice A or choice B, the expected value is the same for both outcomes

Which of the following heuristics occurs if resources are allocated equally? a. Fluency heuristic b. Recognition heuristic c. Inequality heuristic d. Equality heuristic

d. Equality heuristic

Another term for overconfidence bias is: a. Escalation of commitment b. Hindsight bias c. Sunk cost fallacy d. Hubris

d. Hubris

Which of the following is not a method that heuristics rely on to reduce effort? a. Examining fewer cues b. Examining fewer alternatives c. Simplifying the weighting principles for cues d. Integrating more information

d. Integrating more information

Which of the following means when decisions are reached with little apparent effort and typically without conscious awareness? a. Rational decision-making b. System 2 Thinking c. Prospect Theory d. Intuition

d. Intuition

Managers who collect information and use analytical techniques make decisions that are: a. Based on gut instinct b. Quick and easy c. Less effective and profitable d. More effective and profitable

d. More effective and profitable

Which of the following myths of creativity states that once a new idea emerges, the creative process is finished? a. Eureka myth b. Originality myth c. Brainstorming myth d. Mousetrap myth

d. Mousetrap myth

Which of the following is defined as making a decision that is satisfactory but perhaps not optimal? a. Decision maximization b. Rational decision making c. Bounded rationality d. Satisficing

d. Satisficing

Sylvester typically makes decisions that are automatic and effortless, sometimes involuntarily. Which of the following is the type of decision-making Sylvester is exhibiting? a. Rational decision-making b. Satisficing c. System 2 Thinking d. System 1 Thinking

d. System 1 Thinking

Which of the following heuristics is defined by cooperating first and then imitate your partner's last behavior? a. Default heuristic b. Tallying c. Take-the-best d. Tit for tat

d. Tit for tat

Which of the following ethical philosophies is characterized by the consideration of decisions that do the most good for the most people? a. Justice b. Individual rights c. Bounded ethicality d. Utilitarianism

d. Utilitarianism

Which of the following is characterized by complex and changing decision scenarios? a. Heuristics b. Programmed decisions c. Kind organizational problems d. Wicked organizational problems

d. Wicked organizational problems

Heuristics underlie__________. a. intuitive decision making only b. deliberate decision making only c. neither intuitive nor deliberate decision making d. both intuitive and deliberate decision making

d. both intuitive and deliberate decision making

Vedika considers what most of the people in her peer group do and then imitate their behavior. Vedika is ____________. a. imitating the masses b. imitating the professor c. imitating the successful d. imitating the majority

d. imitating the majority