Chapter 7
72. Which of the following is an assumption upon which the rational model of decision making rests? A. Decision makers can logically evaluate the alternatives. B. Consequences of any actions cannot be known. C. Decision makers typically have emotional blind spots. D. A decision maker will choose the option that is most ethical. E. Decision makers are unable to process all of the available information.
A. Decision makers can logically evaluate the alternatives.
135. Which of the following is NOT a rule for brainstorming suggested by IDEO? A. Go for quality over quantity. B. Defer judgment. C. Stay focused on the topic. D. Encourage wild ideas. E. Be visual.
A. Go for quality over quantity.
126. Because Greg and Karen were having an argument about the order of their respective projects on the website, they were unable to work with the rest of the management team to come up with a staffing schedule. This is an example of what potential problem that occurs in groups? A. Goal displacement B. Satisficing C. Groupthink D. Heuristics E. Availability bias
A. Goal displacement
67. Diagnosis is used in which stage of the rational decision-making model? A. Identify the problem or opportunity B. Think up alternative solutions C. Evaluate alternatives D. Select a solution E. Implement a solution
A. Identify the problem or opportunity
118. Many investment advisors attribute their successful outcomes to skill, even when it is more likely luck, which is an example of which bias? A. Overconfidence. B. Escalation of commitment bias. C. Hindsight. D. Availability. E. Framing.
A. Overconfidence.
82. Which of the following is an implementation principle for evidence-based management described by Pfeffer and Sutton? A. See yourself as outsiders do. B. If all else fails, speed the spread of good practices. C. Reserve evidence-based management for top executives. D. Treat your organization as a trophy. E. Understand what happens when people succeed.
A. See yourself as outsiders do
85. Which of the following is characteristic of companies that use analytics? A. Use of predictive modeling B. Having a single, focused application for its use C. Information overload D. Use of competitive intelligence E. Making decisions intuitively
A. Use of predictive modeling
95. Charlie has a reputation for being slow to reach a final decision but being able to decide a reasoned course of action regardless of the uncertainty. He is very thorough in collecting information and evaluating more alternatives than other managers are. Charlie is most likely ______ in his decisionmaking style. A. analytical B. behavioral C. conceptual D. directive E. relaxed
A. analytical
117. Managers at Thomas Canyon Credit Union have given employees raises year after year based on what they had given the year before, even though now their employees were quite underpaid compared to similar positions with other credit unions. This is an example of a(n) A. anchoring and adjustment bias. B. escalation of commitment bias. C. sunk-cost bias. D. availability bias. E. representativeness bias.
A. anchoring and adjustment bias.
86. The stores of data so vast that conventional database management systems cannot handle them and which instead require very sophisticated analysis software and supercomputing-level hardware are known as A. big data. B. heuristics. C. information escalation. D. incremental diagnostics. E. boundless resources.
A. big data.
99. A graph of decisions and their possible consequences is known as a(n) A. decision tree. B. Gantt chart. C. results chart. D. outcome matrix. E. fishbone diagram.
A. decision tree
87. Amanda was asked by her boss to create a handbook for new hires because several employees had recently complained, saying they felt lost when they first started because procedures didn't seem to be formalized. Amanda herself had not felt that way, perhaps because she has a A. high tolerance for ambiguity. B. value orientation focused on people. C. conceptual decision style. D. high propensity for risk. E. low value orientation.
A. high tolerance for ambiguity.
80. Jenna manages a retail store and she has been noticing long lines at checkout lately. She is unsure about increasing staffing levels right now, so she chooses to reconfigure the physical orientation of the checkout space to alleviate the problem for the time being. Jenna is using the ________ model. A. incremental B. coalition C. rational D. predictive E. intuition
A. incremental
106. When a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk, it is called A. relaxed change. B. defensive avoidance. C. postponed action. D. relaxed avoidance. E. delayed decision.
A. relaxed change.
90. An analytical decision-making style reflects a person who is ______ in his value orientation and ______ in his tolerance for ambiguity. A. task/technical; high B. task/technical; low C. people/social; high D. people/social; low E. managerial; low
A. task/technical; high
71. Which of the following is NOT a recommended option when you discover that an action is not working after a decision? A. Give the chosen solution more time. B. Abandon the solution in favor of the status quo. C. Try another alternative. D. Go back to the beginning of the decision-making process. E. Change the chosen solution slightly.
B. Abandon the solution in favor of the status quo.
122. Which of the following is an advantage of group decision making? A. Groupthink B. Deeper commitment to the decision C. Less thought required D. A quicker decision E. More flexibility in the final decision
B. Deeper commitment to the decision
134. Which of the following is a factor that helps participative management work? A. Top management is occasionally involved. B. Employees trust managers. C. PM is implemented without interference from TQM. D. Employees work in interdependent jobs. E. Employees need more training.
B. Employees trust managers.
65. Which of the following is a step in the rational decision-making model? A. Seek consensus among leadership. B. Identify the problem or opportunity. C. Improve the chosen solution. D. Test solutions on a small scale. E. Implement a holding pattern.
B. Identify the problem or opportunity.
133. Research on the effects of participative management (PM) on employees' performance and satisfaction indicates that A. PM has no effect on either. B. PM has a small positive effect on both. C. PM has a large effect on satisfaction, but a small effect on performance. D. PM has a large positive effect on both. E. PM has a large effect on performance, but no significant effect on satisfaction.
B. PM has a small positive effect on both.
75. Nicole and other managers in her firm have some ties to Europe and are investigating opportunities for global expansion. They are struggling to understand the risks, given the complexity of world markets today and recent global instabilities. The difficulty Nicole's team is facing prevents perfectly rational decision making, and is an example of A. risk aversion. B. bounded rationality. C. groupthink. D. defensive avoidance. E. anchoring and adjustment.
B. bounded rationality.
111. Casey has a simple rule that he follows when it comes to new hiring; if four or more of his staff are working 20% or more overtime, he hires another employee. Casey is using A. relaxed change. B. heuristics. C. the Delphi technique. D. rational models. E. brainwriting.
B. heuristics.
127. The ______ a group is, the ______ the quality of the decision. A. more diverse; lower B. larger; lower C. more confident; higher D. more knowledgeable; lower E. more creative, lower
B. larger; lower
103. When a manager decides to take no action in the belief that there will be no great negative consequences, she is engaged in A. limited reaction. B. relaxed avoidance. C. relaxed change. D. decreased involvement. E. defensive avoidance.
B. relaxed avoidance.
125. The tendency of a group to settle on a decision that is "good enough" is called A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. pseudo-optimization.
B. satisficing.
129. Anders has assembled a task force that is composed of people who don't know each other well. He should expect this group to make better decisions if A. it is a large group. B. the members have common knowledge. C. the group is very confident. D. time pressure is high. E. individuals have unique, specialized knowledge.
B. the members have common knowledge.
Level of Difficulty: 2 Medium Topic: Group Decision Making: How to Work with Others 64. Which of the following statements about biased decision making is true? A. Hindsight helps you correctly assess what you should have known beforehand. B. When you are making a decision and you have considerable experience in that area, you are then most likely to be overconfident. C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false. D. Sometimes a single event can allow you to determine the trend. E. You could confidently make a decision about something by asking 20 of your friends and deciding based on their preferences.
C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are fals
128. Which of the following characteristics of groups may lead to groupthink? A. Too little information available to the group B. Errors in the information available to the group C. Overconfidence D. Disagreements among the members E. Diversity in the group
C. Overconfidence
105. Which of the following responses to a challenge would be considered most like satisficing? A. Panic B. Relaxed avoidance C. Relaxed change D. Decreased involvement E. Defensive avoidance
C. Relaxed change
83. Which of the following is NOT a reason why it is hard to bring the best evidence to bear on your decisions? A. Stories are more persuasive than evidence. B. People are trying to mislead you. C. The evidence leads to an unethical solution. D. The evidence doesn't quite apply. E. There's too much evidence.
C. The evidence leads to an unethical solution.
68. Which of the following is true about women investors? A. They tend to trade more often than men. B. They do less research before investing than men. C. Their portfolios have a higher average gain than men's. D. They are increasingly being drawn to careers in finance. E. They tend to chase "hot tips."
C. Their portfolios have a higher average gain than men's.
137. Cara was enthusiastic about the new decision technique being used at her office. Everyone gathered in a room with their computers and typed responses anonymously. These appeared on the screen in the front of the room. Cara felt comfortable participating fully even though she was new to the company, and by the great number of comments, it seemed that everyone else did, too. Cara participated in A. the Delphi technique. B. collaborative management. C. a group-driven computer-aided system. D. a chauffeur-driven computer aided system. E. brainstorming.
C. a group-driven computer-aided system.
97. Savannah is a warm and likeable manager who is extremely supportive of her employees, but she sometimes doesn't say no when she needs to and is somewhat passive in enforcing her decisions. Her decision-making style is most likely A. analytical. B. heuristic. C. behavioral. D. conceptual. E. directive.
C. behavioral
96. Karl is very creative and prefers to look at the long-term issues when making a decision. He considers a wide variety of possible actions based on an open mind about the possibilities. Sometimes his coworkers find him indecisive because of these tendencies. Karl is probably ______ in his decisionmaking style. A. analytical B. behavioral C. conceptual D. directive E. relaxed
C. conceptual
108. Erik has been putting off a decision about firing several workers who have been ignoring safety regulations on the factory floor. After all, he thinks, his boss will eventually notice and take action. Erik is experiencing a(n) ______ reaction. A. relaxed change B. relaxed avoidance C. defensive avoidance D. unresponsive E. delayed change
C. defensive avoidance
124. Spencer talked with Allie after their task force meeting, and they discovered that neither of them had been in favor of dropping some items from next year's budget, yet neither spoke up. Both wanted to be supportive of the group instead. This is an example of A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. self-selection.
C. groupthink.
81. Making a choice without the use of conscious thought or logical interference is called A. reactive decision. B. irrational insight. C. intuition. D. instinctual choice. E. heuristics.
C. intuition.
109. Robin is very worried about potentially having to lay off several of her staff. She can't sleep well, her stomach is bothering her, and she snaps at her employees. She doesn't know what to do but won't talk with anyone about it. Robin is experiencing a ______ reaction to a challenge. A. relaxed change B. defensive avoidance C. panic D. deciding to decide E. heuristic
C. panic
91. A person with a conceptual decision-making style is __________ in her value orientation and __________ in her tolerance for ambiguity. A. managerial; high B. task/technical; low C. people/social; high D. people/social; low E. managerial; low
C. people/social; high
74. The concept of "bounded rationality" is most closely related to the _________ model of decision making. A. classical B. rational C. satisficing D. incremental E. intuition
C. satisficing
76. Alexis manages a clothing store in the mall. They were understaffed, and she thought she would have to work all day and help close the store that evening until a young man came in for an application around noon. Alexis told him he could have the job if he could come back at 4 p.m. to begin work. Here, Alexis was engaged in A. relaxed avoidance. B. confirmation bias. C. satisficing. D. heuristics. E. analytics.
C. satisficing.
110. In deciding to decide about a problem or opportunity, a manager should evaluate the importance of the situation, the credibility of the information, and A. the equitability of the outcomes. B. the availability of heuristics. C. the urgency of the situation. D. the cost of the solution. E. the ethics of making no change.
C. the urgency of the situation.
138. Which of the following is NOT one of the suggestions for decision making recommended by management consultant Odette Pollar? A. Decide in a timely fashion. B. Don't agonize over minor decisions. C. Separate outcome from process. D. Never stop gathering facts. E. When overwhelmed, narrow your choices.
D. Never stop gathering facts.
73. Which of the following is one of the nonrational models of decision making? A. Boundary B. Classical C. Goal displacement D. Satisficing E. Attitudinal
D. Satisficing
131. Which of the following is a practical guideline in determining whether to use group decision making? A. When it can encourage satisficing B. When it can increase speed C. When it can produce groupthink D. When it can increase development E. When a decision occurs infrequently
D. When it can increase development
113. As Janine prepares to perform Ian's performance review, she carefully reviews notes she made throughout the year, rather than relying just on what she remembers. Janine is attempting to avoid the ______ bias. A. sunk-cost B. adjustment C. representativeness D. availability E. escalation of commitment
D. availability
112. Managers tend to give more weight to more recent behavior. This is due to the A. heuristic bias. B. halo effect. C. recency effect. D. availability bias. E. representativeness bias.
D. availability bias.
89. Which of the following is a decision-making style based on the dimensions of value orientation and tolerance for ambiguity? A. professional B. personal C. technological D. behavioral E. mechanical
D. behavioral
84. Redbox uses the large amount of data that it collects at its video and game rental kiosks to determine ways to improve customer retention and to encourage multiple rentals at the same time. The chain is using A. quantitative decision making. B. data correlation. C. heuristics. D. business analytics. E. the Delphi technique.
D. business analytics.
66. The rational model of decision making is also called the ______ model. A. balanced B. satisficing C. incremental D. classical E. intuitional
D. classical
100. According to Harvard professor Constance Bagley, ethical decisions can be facilitated with a(n) A. goal statement. B. improved legal department. C. cross-department task force. D. decision tree. E. brainstorming session.
D. decision tree.
93. A person who is oriented toward task and technical concerns and has a low tolerance for ambiguity is ______ in his decision-making style. A. analytical B. behavioral C. conceptual D. directive E. heuristic
D. directive
98. Scott has received training in resolving ethical dilemmas and currently oversees the development of an ethical code for his workplace. Scott is a(n) A. member of the principles board. B. morality team member. C. social responsibility chief. D. ethics officer. E. chief executive officer.
D. ethics officer.
70. In the final stage of the rational model of decision making, you should A. provide justification for the choice. B. select a solution. C. seek high-level support. D. evaluate the results. E. identify the winners and losers.
D. evaluate the results.
79. Jerome's accounts payable department is behind schedule as the month-end close is approaching. This has been happening every month, but he hasn't found time to provide additional training. Instead he asks all of his employees to work eight hours of overtime that week and reassigns some tasks. This is an example of using the ________ model. A. rational B. predictive C. intuition D. incremental E. coalition
D. incremental
104. Carla heard from a client that a product similar to a popular one at her retail store was now at Walmart, imported from China, and costing just over half of her sales price. But Carla isn't really worried because she believes in her customers' loyalty, so she has no plans to make changes. Carla is practicing A. relaxed change. B. defensive avoidance. C. postponed action. D. relaxed avoidance. E. delayed decision.
D. relaxed avoidance.
102. It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing to another country where costs are somewhat higher but workplace standards are more tightly controlled. In using Bagley's ethical decision tree, you determine it would be unethical NOT to relocate, so you should A. relocate the facility, but don't tell shareholders about potentially smaller profits. B. warn the manufacturer that you will relocate should a violation occur again. C. continue to use the facility, despite your objections, because this will maximize shareholder value. D. relocate the facility, and tell the shareholders how this will affect their returns. E. continue to use the facility, because it is benefitting your company, and all workers, even underage ones.
D. relocate the facility, and tell the shareholders how this will affect their returns.
115. Angelina is interviewing for an open position since she recently let go an employee for excessive absenteeism. Though she thinks that Ivy is the best candidate for the job, she has small children, which seemed to be the source of the last employee's absenteeism. Angelina is reluctant to hire Ivy, which is a(n) ______ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment
D. representativeness
78. The incremental model of decision making suggests that managers make decisions by A. using processes that have worked in past experience. B. experimenting with alternatives in a controlled setting, one by one. C. choosing something that is "good enough." D. taking small steps to alleviate a problem. E. involving several lower-level employees.
D. taking small steps to alleviate a problem.
121. The idea that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain is called A. a heuristic. B. an availability bias. C. a representativeness bias. D. the prospect theory. E. satisficing.
D. the prospect theory.
107. Passing the buck or procrastinating about a decision are examples of which type of reaction to a challenge? A. Panic B. Relaxed avoidance C. Relaxed change D. Decreased involvement E. Defensive avoidance
E. Defensive avoidance
69. When evaluating a solution in decision making, answering yes to which of the following questions should cause you to reconsider choosing it? A. Is there enough time? B. Are the costs reasonable? C. Is it ethical? D. Is the technology available? E. Do you consider it merely "good enough"?
E. Do you consider it merely "good enough"?
77. Which of the following is NOT a hindrance to perfectly rational decision making? A. Conflicting goals B. Imperfect information C. Information overload D. Limited cognitive capacity E. Lack of intuition
E. Lack of intuition
130. Which of the following statements about group decision making is true? A. Individuals are always better than groups in decision making. B. Groups are always better than individuals in decision making. C. Groups minimize satisficing. D. Groups are faster at making decisions. E. Managers should utilize groups for decision making on a selective basis.
E. Managers should utilize groups for decision making on a selective basis.
123. Which of the following is a disadvantage of group decision making? A. Lower commitment to the decision B. Lower levels of confidence in judgments C. Different perspectives D. Greater discomfort with the final decision E. Satisficing
E. Satisficing
101. Which of the following questions about a proposed action is NOT a key question in Bagley's ethical decision tree? A. Is it legal? B. Does it maximize shareholder value? C. Is it ethical? D. Would it be ethical not to do it? E. Should the effect of it be disclosed to shareholders?
E. Should the effect of it be disclosed to shareholders?
136. _________ uses physically dispersed experts who fill out questionnaires to generate ideas and the judgments are combined into an expert consensus. A. Brainstorming B. PM C. TQM D. Brainwriting E. The Delphi technique
E. The Delphi technique
92. A person who is oriented toward people and social concerns and has a low tolerance for ambiguity is ______ in her decision-making style. A. analytical B. relaxed C. conceptual D. directive E. behavioral
E. behavioral
88. A person with high tolerance for ambiguity has A. a high need for structure or control. B. a strong people orientation. C. an analytical mind. D. defensive avoidance tendencies. E. comfort with uncertain situations.
E. comfort with uncertain situations.
94. Ryan is an efficient manager who is very good at meeting his deadlines and quite decisive. Still, his employees find him to be too controlling at times and unable to see the long-term consequences of his actions. Ryan is most likely ______ in his decision-making style. A. analytical B. autocratic C. behavioral D. conceptual E. directive
E. directive
120. Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs to be replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment
E. escalation of commitment
119. The tendency for decision-makers to be influenced by the way a situation or problem is presented to them is known as the ________ bias. A. overconfidence. B. escalation of commitment bias. C. hindsight. D. availability. E. framing.
E. framing.
132. The process of involving employees in setting goals, making decisions, solving problems, and making changes is called A. conjoint management. B. escalation of commitment. C. satisficing. D. goal displacement. E. participative management.
E. participative management.
114. Meg hired a great candidate from UCLA who has a big career ahead, and every year since Meg insists on going on a recruiting visit to that campus. Meg is convinced that hiring from UCLA in the future will produce the same level of success. This is an example of a(n) A. heuristic bias. B. professional effect. C. anchoring effect. D. availability bias. E. representativeness bias.
E. representativeness bias.
116. When managers add up all the money already spent on a project and conclude it is too costly to simply abandon it, it is known as a(n) ________ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. sunk cost
E. sunk cost
