Chapter 8 MGMT Extra Review
When a college student says no to an alcoholic drink, he is engaged in... a) problem solving b) decision making c) satisficing d) bounded rationality e) optimization
b) decision making
The key to making effective decisions under conditions of risk is to... a) recognize that information is not available and approach the situation intuitively b) determine the probabilities associated with each alternative as accurately as possible c) develop a rational system for ordering your choices in a hierarchy of importance d) recognize that you do not know all of the alternatives related to the decision e) identify the alternative(s) with completely predictable outcomes
b) determine the probabilities associated with each alternative as accurately as possible
Renee made a bad decision. She stays with it, trying to convince others it was a good decision. This is an example of... a) bounded optimization b) escalation of commitment c) programmed decision making d) strategic maximization e) intuitive rationality
b) escalation of commitment
Decisions that are unethical may pass one or two decision criteria, but they fail the ____ test. a) feasibility b) satisfactoriness c) affordability d) consequences e) rationality
d) consequences
____ is the act of choosing one alternative from many. a) Decision making b) Problem solving c) Risk assessment d) Programmed decision making e) Certainty evaluation
a) Decision making
Which of the following decision-making models involves recognizing and defining the situation, developing alternatives, selecting an alternative, implementing the chosen alternative, and following up? a) Behavioral b) Classical c) Administrative d) Bureaucratic e) Sequential
b) Classical
Which of the following decision-making models is a prescriptive model? a) Behavioral b) Classical c) Administrative d) Bureaucratic e) Probabilistic
b) Classical
Which of the following decision-making models is based on the belief that human behavior is precisely rational? a) Behavioral b) Classical c) Administrative d) Bureaucratic e) Hierarchical
b) Classical
Groups that are used to develop a consensus of expert opinion without the members of the group ever meeting face to face are called ____ groups. a) interacting b) Delphi c) nominal d) unilateral e) task
b) Delphi
The CIO at Canon is considering an information system upgrade. He goes to each of the division heads to discuss their information needs and system capabilities. The CIO narrows the options, and contacts the executives again, reaching agreement before purchasing a system. Which group decision-making technique does this represent? a) Interacting b) Delphi c) Nominal d) Unilateral e) Task
b) Delphi
If you make a decision that does not turn out as planned Warren Buffet advises, "When you find yourself in a hole, stop digging." What behavioral influence on decision making does this advice attempt to prevent? a) Intuition b) Escalation of commitment c) Empathy d) Risk propensity e) Political forces
b) Escalation of commitment
____ occurs when the decision maker is constrained by their own values, experiences, skills, and reflexes. He or she also has less than complete knowledge and information. a) Optimization b) Intuitive decision making c) Bounded rationality d) Escalation of commitment e) Satisficing
c) Bounded rationality
Which of the following is NOT an example of an interacting group? a) Standing committee b) Task force c) Delphi group d) Functional department e) Ad hoc committee
c) Delphi group
Decision making is a part of which management function? a) Planning b) Organizing c) Controlling d) Leading e) All of these choices
e) All of these choices
The decision that the manager makes using the behavioral model of decision making... a) is made with imperfect information b) has an incomplete set of alternatives c) uses bounded rationality d) requires the manager to engage in satisficing e) All of these choices
e) All of these choices
Which of the following disadvantages of group decisions typically results from the group being very cohesive? a) Coalitions b) Irrationality c) Compromise d) Groupthink e) Dominance
d) Groupthink
60. Which of the following statements BEST describes bounded rationality? a) Decision makers are limited by having incomplete information as well as by their values, unconscious reflexes, skills, and habits b) Decision makers have complete information regarding the situation and all possible alternatives c) Decision makers will be able to fully anticipate the consequences of each available alternative because these consequences define the boundary d) People tend to be rational decision makers, and this fact bounds the creativeness and effectiveness of decisions e) Alternative permutations make it imperative for rational decision makers to create a bounded number of evoked alternatives
a) Decision makers are limited by having incomplete information as well as by their values, unconscious reflexes, skills, and habits
When evaluating decision alternatives, the first question to be asked is whether an alternative is within the realm of probability and practicality for the organization. This refers to which of the following alternative evaluation criteria? a) Feasibility b) Satisfactoriness c) Affordability d) Consequences e) Rationality
a) Feasibility
When the space shuttle Columbia needed to reenter the atmosphere the crew knew there was damage on the outside of the aircraft. If there had been room and supplies the crew could have gone to the space station. Which criterion for evaluating a decision alternative did the space station fail to meet? a) Feasibility b) Satisfactoriness c) Affordability d) Consequences e) Rationality
a) Feasibility
Ryan Tool Company just purchased Coney Tools. The purchase came about because both the research and development people and the production people at Ryan joined forces to lobby for the purchase of Coney rather than another company. Both groups wanted Coney because of its up-to-date research and production facilities. The behavioral force that influenced their decision making is referred to as... a) coalition b) intuition c) bounded rationality d) interacting group behavior e) escalation of commitment
a) coalition
When the manager understands the available options but the probabilities associated with each option are uncertain, the manager is experiencing... a) decision making under risk b) satisficing c) bounded rationality d) decision making under certainty e) decision making under uncertainty
a) decision making under risk
The manager who has difficulty identifying alternatives and assessing their probabilities is experiencing... a) decision making under uncertainty b) decision making under absolute certainty c) decision making under risk d) decision maker's creativity block e) decision making with fear
a) decision making under uncertainty
It is important to follow up and evaluate the effectiveness of a decision to... a) ensure that the decision achieves the desired result b) help eliminate satisficing c) enable objective quantification of the decision d) determine the feasibility of another alternative if the original decision proves ineffective e) help eliminate bounded rationality
a) ensure that the decision achieves the desired result
A disadvantage of using interacting groups to make decisions is... a) group politics b) void of expert opinion c) an increase in programmed costs d) faster decision making e) too much brainstorming
a) group politics
A(n) ____ group is the most common form of a decision-making group. a) interacting b) Delphi c) nominal d) unilateral e) task
a) interacting
Dr Elkin is an orthodontist. Each patient's mouth is different. When he decides on a course of treatment he makes a(n) ____ decision. a) nonprogrammed b) rational c) ethical d) programmed e) satisficing
a) nonprogrammed
The U.S. Postal Service started 'stamps.com' so customers can print and send items from home. They also offered a promotion for a scale and free postage. This is an example of a(n) ____ decision. a) nonprogrammed b) rational c) ethical d) programmed e) satisficing
a) nonprogrammed
To better compete with the Internet as a communications tool, Hallmark created a line of 99-cent cards called "Warm Wishes." This introduction of a line of cards that is priced much lower than its other product lines was more than likely the result of a(n) ____ management decision. a) nonprogrammed b) rational c) ethical d) programmed e) satisficing
a) nonprogrammed
The CEO is retiring. There are two candidates remaining. Three division heads support Alex. The other four division heads support Pat. These alliances can be called... a) organizational grapevines b) coalitions c) focus groups d) nominal groups e) boards of directors
b) coalitions
When Kelly chooses to stay at work instead of going to the department team building event, she is engaged in... a) problem solving b) decision making c) satisficing d) bounded rationality e) optimization
b) decision making
Based on the rational decision-making model, you would expect the first thing that happened at the other major networks as a result of the success of the American Idol television series was to... a) realize that they needed to create a viewer participation talent search TV program like American Idol b) identify variations on the same American Idol theme c) evaluate where in their schedules viewer participation talent search programming belonged d) select a location for their version of a viewer participation talent search television show e) choose the contestants desperate for 15 minutes of fame
a) realize that they needed to create a viewer participation talent search TV program like American Idol
The first step in the decision-making process is... a) recognizing and defining the situation b) brainstorming c) the generation of alternatives d) the expression of a willingness to be innovative e) implementation
a) recognizing and defining the situation
Charles struggled through a year of Mandarin. The graduation requirement is two years of one world language. Charles could start with a different language, but he would have to give up an elective. Charles chose to take the second year of Mandarin. He engaged in... a) satisficing b) equifinality c) bounded efficiency d) optimization e) nominal decision making
a) satisficing
Olga is house hunting in a "hot" market. Some homes sell within hours of listing. Olga finds one that meets her minimum criteria and immediately makes an offer. This is an example of.. a) satisficing b) equifinality c) bounded efficiency d) optimization e) nominal decision making
a) satisficing
A manager who has a low-risk propensity would... a) use the rational decision-making model b) rely on intuition for his or her decision making c) make decisions aggressively d) reach decisions quickly e) easily invest large sums of money in support of his or her decisions
a) use the rational decision-making model
Imagine that you are an ABC network executive. Your task is to find a successful game show. You have three possible formats. One is a game show that is designed like a treasure hunt and staged on a secluded island. One uses a team approach to solving brainteasers and offers a $5 million prize. Another suggested game show pairs teenagers and their parents and has them answer music trivia questions. The prizes include full college tuition, a new house, automobiles for both, and so on. In which step of the rational decision-making process are you? a) Recognizing and defining the problem b) Evaluating alternatives c) Selecting the best alternatives d) Implementing an alternative e) Cannot be determined from the information given
b) Evaluating alternatives
Which of the following statements is an advantage of group decision making? a) Groups typically spend a lot of time interacting and discussing b) Groups often represent diversity of education and experience c) Leaders can shine in groups d) Groups tend to desire consensus and cohesiveness e) Groups typically reach compromise decisions
b) Groups often represent diversity of education and experience
Tino has a stack of resumes. He throws out all the ones without a bachelors degree. Which criterion for evaluating a decision alternative do these candidates fail to meet? a) Feasibility b) Satisfactoriness c) Affordability d) Consequences e) Rationality
b) Satisfactoriness
When evaluating decision alternatives, which of the following criteria refers to the extent to which the alternative meets the conditions of the situation? a) Feasibility b) Satisfactoriness c) Affordability d) Consequences e) Rationality
b) Satisfactoriness
Donald Davis has to decide what make and model of pickup trucks to buy for his extermination company employees to drive. There are eight different manufacturers and countless models from which to choose. He also plans to buy a pickup for himself later on. He checks out the Dodge models and selects the Dodge full-sized model because he does not have much time to spend on the problem and because it will do the job. What would Herbert Simon call what Davis has just done? a) Decision framing b) Satisficing c) Escalation of commitment d) Innovation e) Bounded rationality
b) Satisficing
Which of the following statements about programmed decisions is FALSE? a) To make a programmed decision, it must be possible to develop some rule for making the decision b) The use of programmed decisions should be limited to noncritical situations c) The decision situation in which programmed decisions should be used needs to be fairly structured d) In many instances, programmed decisions can be computerized e) Programmed decisions deal with repetitive situations
b) The use of programmed decisions should be limited to noncritical situations
LaTannia, manager of the accounting department, has to decide which computer system to purchase for her department. She has looked at all of the possible alternatives and is leaning toward an IBM system because she had positive experiences with an IBM system in her old job. This is an example of... a) optimization b) bounded rationality c) satisficing d) synergy e) escalation of commitment
b) bounded rationality
A disadvantage of the ____ decision making model is that it does not use ethics. a) behavioral b) classical c) administrative d) bureaucratic e) sequential
b) classical
A(n) ____ is an informal group allied together for a common purpose. a) action committee b) coalition c) board of directors d) interacting group e) department
b) coalition
William invested in an initial public offering. After a month he lost 5 percent. After a year he lost 50 percent. After two years he lost 80 percent. William's decision to keep the investment is an example of... a) bounded optimization b) escalation of commitment c) programmed decision making d) strategic maximization e) intuitive rationality
b) escalation of commitment
YouTube was operating at a loss when Google bought it. Three years later it was still operating at a lose. Google may have experienced ____. a) intuition b) escalation of commitment c) empathy d) risk propensity e) political forces
b) escalation of commitment
Caving into peer pressure is a disadvantage of ____. a) dominance b) groupthink c) compromise d) irrationality e) coalitions
b) groupthink
61. Mikko needed to replace his air conditioner. He left messages with four companies. The first one to call back got the job. He used... a) decision framing b) satisficing c) escalation of commitment d) innovation e) bounded rationality
b) satisficing
Bounded rationality is assumed in... a) the rational model b) the behavioral model c) decision making under certainty d) escalation of commitment e) the nonlinear model
b) the behavioral model
In which of the following decision-making conditions is the decision maker aware of all of the alternatives and able to assign probabilities to the costs and payoffs of each alternative? a) Probability b) Risk c) Certainty d) Rationality e) Uncertainty
c) Certainty
What is the fourth step in rational decision making? a) Identify a set of rational alternatives b) Evaluate the possible alternatives c) Select which alternative to implement d) Evaluate decision effectiveness e) Recognize and define the decision situation
c) Select which alternative to implement
Joyce wants to decrease turnover. She can change hiring practices, improve benefits, improve wages, or provide an annual bonus. She chooses a year-end bonus because it keeps payroll lower and should quickly affect turnover. This example suggests that Joyce is at which step in the decision-making process? a) Developing a set of rational alternatives b) Evaluating decision effectiveness c) Selecting which alternative to implement d) Recognizing and defining the decision situation e) Evaluating the possible alternatives
c) Selecting which alternative to implement
Your assistant comes to you with the feasibility evaluation of a decision alternative. What should he be describing to you? a) How well the alternative will satisfy the conditions of the problem situation b) How the alternative will affect the various parts of the organization c) Whether the alternative is within the realm of probability and practicality for the organization d) The affordability of the consequences e) None of these choices
c) Whether the alternative is within the realm of probability and practicality for the organization
Imagine that you are a CBS network executive selecting a program. You have three possible formats. One is a game show that is designed like a treasure hunt and staged on a secluded island. One uses a team approach to solving brainteasers and offers a $5 million prize. Another suggested game show pairs teenagers and their parents and has them answer music trivia questions. The prizes include full college tuition, a new house, automobiles for both, and so on. The ____ model can be used to explain why you chose the treasure hunt game without even evaluating the other two. a) classical b) bureaucratic c) administrative d) human relations e) contingency
c) administrative
As it relates to selecting the alternative in a decision-making situation, optimization means choosing the... a) most feasible alternative b) most satisfactory alternative c) alternative that will do the most for the overall organization, even though it does not maximize outcomes for particular parts of the organization d) alternative with the highest combined level of feasibility, satisfactoriness, and affordability e) alternative with the most affordable consequences
c) alternative that will do the most for the overall organization, even though it does not maximize outcomes for particular parts of the organization
Karen has limited financing. She has three alternatives and knows the outcomes associated with each of them. She will choose under conditions of... a) probability b) risk c) certainty d) rationality e) uncertainty
c) certainty
One advantage of group decision making is... a) groupthink b) compromise c) diversity of members' backgrounds d) lowered cost of decision making e) ability of a strong individual to dominate the group
c) diversity of members' backgrounds
A builder in Miami started constructing homes during the "hot" real estate market, even though he knew there were a lot of speculators in the market. The market went cold, and the builder was stuck selling for very low prices. The builder demonstrated... a) bounded optimization b) escalation of commitment c) risk propensity d) strategic maximization e) intuitive rationality
c) risk propensity
Diaz Nesamoney is a computer scientist who founded three successful software companies. Entrepreneurs tend to have a high ____. a) bounded optimization b) escalation of commitment c) risk propensity d) strategic maximization e) intuitive rationality
c) risk propensity
When a manager evaluates alternatives until she comes to one that meets some minimum standard of sufficiency, selects it, and then goes on to other problems without considering the remaining rational alternatives, she has engaged in... a) means-end inversion b) equifinality c) satisficing d) bounded rationality e) classical decision making
c) satisficing
The Priest at Holy Trinity needs to select a youth ministry coordinator. This is an example of decision making... a) with bounded rationality b) under risk c) under uncertainty d) with a satisficing result e) under certainty
c) under uncertainty
The decision by executives at CBS to air 'Three Rivers' to see if it could find a show to improve its primetime viewership was an example of a decision made... a) with bounded rationality b) under risk c) under uncertainty d) with a satisficing result e) under certainty
c) under uncertainty
The decision to hire a janitorial service, buy a fleet of sales vehicles, or hire a public relations expert are all examples of decisions made... a) with bounded rationality b) under risk c) under uncertainty d) with a satisficing result e) under certainty
c) under uncertainty
When a manager makes a decision in spite of having imperfect information, this is known as... a) satisficing b) using the rational model of decision making c) using the behavioral model of decision making d) decision specialization e) bounded rationality
c) using the behavioral model of decision making
Hailey finds that her company is over billing the government for services. She tells her boss, who says he will take care of it, but he does nothing. Hailey tells her government contact. What model of decision making does Hailey's behavior represent? a) Classical b) Nominal c) Hierarchical d) Administrative e) Scientific
d) Administrative
____ may explain why publishers are more likely to publish a children's book by a recognizable celebrity, like Katie Couric, than consider a beautifully illustrated and written book by an unknown author. a) A need to optimize b) A need to control the market c) Synergy d) Bounded rationality e) Equifinality
d) Bounded rationality
Which of the following statements about the classical model of decision making is FALSE? a) All alternatives are known b) Certainty or the ability to create certainty exists c) Rational behavior on the part of decision makers is a given d) Decision makers will be affected by personal preferences e) All aspects of the decision situation will be evaluated
d) Decision makers will be affected by personal preferences
Ford announced that it planned to cut 10 percent of salaried work. The plan involved retirements, reorganization, and eliminations. Which of the following behavioral aspects is most likely to be involved in this decision? a) Intuition b) Escalation of commitment c) Political forces d) Ethics e) Risk propensity
d) Ethics
Circuit City went bankrupt because of a series of poor managerial decisions and a down turn in the economy. In retrospect, it would seem that there was too much emphasis on the group reaching a consensus decision. As a result, many decisions were made to avoid conflict. What disadvantage of group decision making does this represent? a) Coalitions b) Irrationality c) Compromise d) Groupthink e) Dominance
d) Groupthink
In which stage of the decision-making/problem-solving process is resistance to change most likely to be a problem? a) Developing a set of rational alternatives b) Evaluating the possible alternatives c) Deciding which alternative to implement d) Implementing the chosen alternative e) Recognizing and defining the decision situation
d) Implementing the chosen alternative
A(n) ____ decision-making model describes how decisions are made rather than prescribing how they should be made. a) classical b) nominal c) hierarchical d) administrative e) scientific
d) administrative
The U.S. government has never faltered on its debt payments. Investing in treasury bills is an example of... a) decision making under risk b) satisficing c) bounded rationality d) decision making under certainty e) decision making under uncertainty
d) 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... a) decision making under risk b) satisficing c) bounded rationality d) decision making under certainty e) decision making under uncertainty
d) decision making under certainty
The best alternative is the most ____ alternative. a) efficient b) controllable c) profitable d) effective e) valid
d) effective
Decisions by managers, of AOL Time Warner, to sell off Warner Music Group's DVD and CD manufacturing, printing, packaging, physical distribution, and merchandising business was an example of a ____ decision. a) programmed b) satisficing c) rational d) nonprogrammed e) financial
d) nonprogrammed
The first step in using the Delphi procedure is to... a) recognize the problem b) collect potential alternatives c) agree that the decision will not be optimized d) obtain the cooperation of a panel of experts e) create staff positions for group members
d) obtain the cooperation of a panel of experts
Computers scan items when they are purchased. Most inventory decisions are now... a) nonprogrammed b) rational c) ethical d) programmed e) satisficing
d) programmed
Decisions that are routine and deal with situations in which the factors are familiar and have occurred in the past are called ____ decisions. a) nonprogrammed b) satisficing c) rational d) programmed e) non-innovative
d) programmed
Zaheer is a nurse. When his alarm goes off at 6:00 a.m. each morning, he puts on his uniform and drives to work on the same route each day. This is an example of a(n) ____ decision. a) nonprogrammed b) rational c) ethical d) programmed e) satisficing
d) programmed
The rational model of decision making assumes all of the following EXCEPT... a) the decision maker is logical b) the decision maker always has the best interests of the organization at heart c) the decision maker has a list of alternatives both standard and creative from which to choose d) the decision maker will select the least expensive acceptable alternative e) the decision maker will try to eliminate as much uncertainty as possible
d) the decision maker will select the least expensive acceptable alternative
Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon? a) Decision framing b) Satisficing c) Escalation of commitment d) Innovation e) Bounded rationality
e) Bounded rationality
Managers at LEO Corporation scrutinize problems until they have all of the information they feel they need to make a decision and discuss every alternative while focusing on facts and eliminating assumptions. Which decision-making model does this most closely resemble? a) Linear b) Hierarchical c) Administrative d) Behavioral e) Classical
e) Classical
The last step of the rational decision-making process is most closely related to which function of management? a) Planning b) Organizing c) Staffing d) Leading e) Controlling
e) Controlling
A Delphi group is not used daily because it has disadvantages. Which of the following is NOT a disadvantage? a) Time b) Expense c) Logistics d) Process e) Expert cooperation
e) Expert cooperation
Charlie feels each of the alternatives is basically the same. He decides based on his gut feeling. Which of the behavioral factors that influence decision making does Charlie's behavior reflect? a) The optimization principle b) The iceberg principle c) Synergy d) Empathy e) Intuition
e) Intuition
Which of the following statements does NOT describe a characteristic of the nominal group technique? a) Members are not free to talk to one another b) Members individually write down their suggested alternatives c) Alternatives are listed on a flip chart d) The alternative with the most votes is the solution e) Members verbally vote for their first choice
e) Members verbally vote for their first choice
Which of the following is NOT a behavioral force that influences decision making? a) Intuition b) Coalitions c) Risk propensity d) Ethics e) Optimization
e) Optimization
____ is the selection of the first minimally acceptable alternative. a) Optimization b) Intuitive decision making c) Bounded rationality d) Escalation of commitment e) Satisficing
e) Satisficing
Most of the significant decisions in contemporary organizations are made under which decision-making condition? a) Probability b) Risk c) Certainty d) Rationality e) Uncertainty
e) Uncertainty
Under which decision-making condition is the decision maker unaware of all the alternatives and the risks and consequences associated with each alternative? a) Probability b) Risk c) Certainty d) Rationality e) Uncertainty
e) Uncertainty
Before the space shuttle Columbia launched, its crew knew there was great risk in venturing into space and returning. The crew even talked about their desire for the shuttle program to continue should something happen to them. This is an example of... a) decision making under certainty b) decision making under absolute certainty c) decision making under risk d) decision making under unrealistic conditions e) decision making under uncertainty
e) decision making under uncertainty
When Eric selected Janine for the marketing position, he had a feeling she would fit into the culture of the department. Eric used ____ to fill the position. a) the optimization principle b) the iceberg principle c) synergy d) empathy e) intuition
e) intuition
Sy.Med Development, Inc. is the only company that has credentialing application software for physicians and managed care organizations. Credentialing applications must be submitted to each insurance provider annually and can be a very labor-intensive process. Sy.Med is the only company that has developed such software, and it provides complete support for the software. A physician's office in Montana that wants to buy or use the software would be making the purchase decision... a) with bounded rationality b) under risk c) under uncertainty d) with a satisficing result e) under certainty
e) under certainty
