BUS 211 - Ch. 8

Decision making is a part of which management function?

all of these

Cargill recalled 185,000 pounds of ground turkey due to salmonella contamination. It made a(n) ____ decision.

nonprogrammed

The Detroit Three auto makers and United Auto Workers negotiated a labor deal with pay raises for entry level workers. This is an example of a(n) ____ decision.

nonprogrammed

Yum Brands is expanding its Chinese presence into smaller cities like Yiyang and Zhengzhou because larger cities are saturated. This is an example of a(n) ____ decision.

nonprogrammed

Airlines increased prices for last minute tickets usually purchased by corporate travelers. This was the tenth increase in one year. This is an example of a(n) ____ decision.

programmed

Decisions that are routine and deal with situations in which the factors are familiar and have occurred in the past are called ____ decisions.

programmed

Students in Management 101 sit in the same seat every class even though seats are not assigned. This is an example of a ____ decision.

programmed

When Canine Companions for Independence trainers teach a dog to be a service dog they start from a basic training approach. Dogs communicate through body language that the trainer knows. The trainer routinely makes ____ decisions.

programmed

The first step in the decision-making process is

recognizing and defining the situation

A plant manager notices that overtime seems to be excessive. This will stimulate a decision.

true

According to bounded rationality, people's habits and skills limit their decisions.

true

As a result of increased information, groups and teams typically can identify and evaluate more alternatives than can one person.

true

Decisions are often made with little consideration for logic and rationality.

true

Each component of managerial ethics involves a wide variety of decisions, all of which are likely to have an ethical component.

true

In the decision-making process, the follow-up step is most closely related to the management function of controlling.

true

Intuition means you allow your experiences to influence your decisions.

true

The biggest drawback of group and team decision making is the additional time and hence the greater expense entailed.

true

The classical decision model is more likely to be used in a research lab than in management.

true

The stimulus for a decision may be positive or negative.

true

When a communications president agrees to be interviewed for 60 Minutes, she can be described as having a high degree of risk propensity.

true

When an employee comes to you with a feasibility evaluation of a decision alternative, he will give you information about how practical the alternative is for the organization.

true

When managers apply their values to decision making there is an opportunity for better ethics, which is a good aspect of bounded rationality.

true

When the bell rings at a firehouse, the firefighters make programmed decisions.

true

Sy.Med Development, Inc. is the only company that has credentialing application software for physicians and managed care organizations, and it provides complete support for the software.. Credentialing applications must be submitted to each insurance provider annually and can be a very labor-intensive process. A physician's office in Montana that wants to buy or use the software would be making the purchase decision

under certainty

Greece was on the verge of defaulting on its debt. It decided to dock a month's pay from all elected officials as part of austerity measures. This is an example of decision making

under uncertainty

Managers make decisions about problems but not opportunities.

False

Which of the following statements about programmed decisions is FALSE?

The use of programmed decisions should be limited to noncritical situations

An effective decision may be one that minimizes loss, expenses, or employee turnover.

True

Decision making is perhaps the most basic and fundamental of all managerial activities.

True

When Mildred chooses to focus on a work task instead of listening to a colleague she is engaged in

decision making

When a student chooses to study instead of going out with friends, he is engaged in

decision making

____ is the act of choosing one alternative from many.

decision making

Baldur chose to cut cable service to his home to save money. He knew he could still get local over-the-air service for free and view some entertainment on the Web. He knew each cost and his viewing options. This is an example of

decision making under certainty

The U.S. government has never faltered on its debt payments, although it came close in August, 2011. Investing in treasury bills is an example of

decision making under certainty

When the manager knows what the alternatives are and the probabilities associated with each alternative are guaranteed, the manager is experiencing

decision making under certainty

When the manager understands the available options but the probabilities associated with each option are uncertain, the manager is experiencing

decision making under risk

The best alternative is the most ____ alternative.

effective

An informal alliance of individuals or groups formed to achieve a common goal is referred to as groupthink.

false

As it relates to decision making, the term best alternative implies decision accuracy and efficiency.

false

Existing groups or teams can be ad hoc committees, task forces, or newly constituted work teams.

false

Few organizational decisions are made under conditions of uncertainty.

false

In more and more organizations today, important decisions are made by individuals rather than by groups and teams.

false

Many decisions regarding basic operating systems and procedures and standard organizational transactions are nonprogrammed decisions.

false

The administrative model of decision making describes how decisions should be made as opposed to prescribing how they actually are made.

false

The first step in evaluating an alternative is to determine to what extent it will be affordable.

false

The proper sequence for evaluating a decision alternative is satisfactoriness, probable consequences, and feasibility.

false

Values are an innate belief about something without conscious consideration.

false

You are trying to hire a new engineer. She has all of the qualifications you want, with one exception. As a decision alternative, this engineer fails the test of feasibility.

false

Zhenfu invested his savings in a bank certificate of deposit because that is where he has always put his savings, and because he is very concerned about the safety of his investment. Zhenfu knows at the end of two years he will have $52,546.73. He is operating under the decision-making condition known as risk.

false

decision maker's commitment to a decision that appears to be wrong is called risk propensity.

false