MGMT ch 7

Experts on decision making view it as a process with four steps, although all managers do not always go through all four steps. True False

False

The first step in the decision making process is evaluating the alternatives. True False

False

While managerial decisions range from simple to complex and routine to unique, most can be classified as either programmed or non-programmed decisions. True False

True

Which of the following characteristics relates to the nominal group technique? a. A process that involves the use of a highly structured meeting agenda and restricts discussion or interpersonal communication during the decision making process b. A phenomenon occurring when cohesive "in-groups" let the desire for unanimity, or consensus, override sound judgment in generating and evaluating alternative courses of action c. A technique in which group members spontaneously suggest ideas to solve a problem d. The idea that people have limits, or boundaries, to their rationality

a. A process that involves the use of a highly structured meeting agenda and restricts discussion or interpersonal communication during the decision making process

When a department in an organization has a high level of absenteeism, we are dealing with a. a symptom of a problem, not the problem itself. b. a need to do some brainstorming and creative thinking. c. an obvious and serious problem in the organization. d. unsuitable job descriptions and a low rate of pay.

a. a symptom of a problem, not the problem itself.

The effectiveness of group decision making can be enhanced by a. using an appropriate group decision making technique and by how effectively the group capitalizes on the advantages and minimizes the disadvantages of group decision making. b. encouraging one or two persons in the group to argue for their point of view. c. encouraging group members to be concerned about being accepted by the group. d. pushing groups hard to reduce dissent and discussion and to make decisions fast.

a. using an appropriate group decision making technique and by how effectively the group capitalizes on the advantages and minimizes the disadvantages of group decision making.

Which of the following is NOT an assumption of the classical model of decision making? a. The manager has complete information about the decision situation. b. Emotion and stress will affect the decision making process. c. The problem is clearly defined, and all alternatives are known. d. Managers are logical and rational and economically motivated

b. Emotion and stress will affect the decision making process.

Which of the following is NOT a recommended step to avoid escalating commitment? a. Ask why you are continuing a course of action. b. Look to other people to see what you should do. c. Set limits on your involvement in advance. d. Remind yourself of the costs involved.

b. Look to other people to see what you should do.

The group decision technique designed to maximize the generation of creative alternatives to a problem is a. group consensus thinking. b. brainstorming. c. synergistic thinking. d. the nominal group technique.

b. brainstorming.

You manage a semiprofessional baseball team, and you call up the Toronto Blue Jays and challenge them to a million-dollar match, winner take all. You suffer from a. delusions of grandeur. b. overconfidence and excessive risk propensity. c. a bad case of "groupthink." d. bounded rationality and illogicality.

b. overconfidence and excessive risk propensity.

The administrative model of decision making is a descriptive approach based on the work of Nobel Prize winning economist a. Paul Samuelson. b. Arthur Laffer. c. Herbert Simon. d. Milton Friedman.

c. Herbert Simon.

Which of the following refers to the decision maker's decision to choose the first alternative that appears to resolve the problem satisfactorily? a. Risk propensity b. Brainstorming c. Satisficing d. Bounded rationality

c. Satisficing

The other side of disastrous escalation of commitment is a. not committing any resources to the problem. b. giving up on the situation completely. c. bailing out of a course of action too soon. d. engaging in defensive avoidance of the problem.

c. bailing out of a course of action too soon.

Two factors that go hand in hand in managerial decision making and may have positive or disastrous organizational effects are a. escalation versus de-escalation of commitment. b. non-programmed and critical decisions. c. confidence and risk propensity. d. satisficing and bounded rationality.

c. confidence and risk propensity.

One of the keys to successful implementation of a decision in an organization is to a. put out regular announcements about the whole process. b. minimize the "cons" or disadvantages of the decision. c. involve individuals affected by it in every step of the process. d. highlight the "pros" or advantages of the decision.

c. involve individuals affected by it in every step of the process.

Which of the following is NOT normally considered a disadvantage of group over individual decision making? a. One or two group members can exert an undue influence in the group. b. The desire by group members to be accepted can result in a high degree of conformity. c. Groups can fall victim to "groupthink" where the need for unanimity inhibits open discussion. d. Groups generally take less time to make a decision.

d. Groups generally take less time to make a decision.

When a manager decides to reorder inventory or establishes skill requirements for a certain job, she is making what type of decision? a. Non-programmed b. Routine c. Structured d. Programmed

d. Programmed

What name is given to decisions made in response to situations that are routine, structured, and fairly repetitive? a. Brainstorming decisions b. Non-programmed decisions c. Confidence decisions d. Programmed decisions

d. Programmed decisions

The Hotfoot and Too-Too tribes in Russylvania, a desperately poor nation, engage in a bloody civil war for territory. The total population of Russylvania is ten million, and the area of the country is ten thousand square miles. Population is increasing by 10 percent a year. The civil war is really a. a reaction to risk and uncertainty. b. the result of emotion and stress. c. an example of satisficing rather than optimizing. d. a symptom of a problem.

d. a symptom of a problem.

Perhaps the greatest advantage of the nominal group technique is that it a. produces high levels of satisfaction during discussion. b. keeps every member's inputs totally anonymous. c. generates even more alternatives than does brainstorming. d. allows every member to have an equal amount of input in decision making.

d. allows every member to have an equal amount of input in decision making.

Decision styles are determined from patterns among an individual's predispositions, including all of the following EXCEPT a. how an individual approaches problems. b. how an individual communicates. c. what kind of jobs an individual enjoys. d. an individual's level of education.

d. an individual's level of education.

Your sales manager tells you that your widget sales are dropping dramatically, and you should drop the line. Your son-in-law says that widget sales are doing OK and that you should increase production. You increase production. You are engaging in a. nepotism. b. escalation of commitment. c. bounded rationality. d. framing.

d. framing.

You tell your military advisers that you wish to invade Russylvania today to end the civil war. Two of your former high school buddies agree with you, but the other two advisers (who think you are a fool) keep their mouths shut. The invasion is a disaster. You have succumbed to a. illogicality. b. bounded rationality. c. consensus seeking. d. groupthink.

d. groupthink.

While you don't like it, you hire a production manager today who you know is dependable, even though in three weeks you might be able to hire a person who is potentially brilliant. In decision-making language, you have a. played a hunch. b. compromised. c. shown low risk propensity. d. satisficed.

d. satisficed.

While intuitive decision making is not based on formal analysis or conscious reasoning, it often has a very real basis in a. the limitations of logic and rationality. b. a manager's ability to make good guesses. c. the need to make real-world decisions. d. years of practice and experience.

d. years of practice and experience.