Daft Ch 9
34. People who prefer simple, clear-cut solutions to problems use the directive style. a. True b. False
ANSWER: True
35. Managers with an analytical decision style like to consider complex solutions based on as much data as they can gather. a. True b. False
ANSWER: True
37. Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style. a. True b. False
ANSWER: True
39. Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager. a. True b. False
ANSWER: True
40. Justifying past decisions is a common bias of managers. a. True b. False
ANSWER: True
43. Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making. a. True b. False
ANSWER: True
45. Groupthink refers to the tendency of people in groups to suppress contrary opinions. a. True b. False
ANSWER: True
47. Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view. a. True b. False
ANSWER: True
5. Gerald's Groceries and Marty's Market decided to merge their operations, something neither company has tried before. This would be considered a nonprogrammed decision. a. True b. False
ANSWER: True
6. In the real world, few decisions are certain. a. True b. False
ANSWER: True
7. The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes. a. True b. False
ANSWER: True
9. .A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity. a. True b. False
ANSWER: True
60. Good examples of _____ decisions are strategic decisions. a. nonprogrammed b. programmed c. insignificant d. recurring e. structured
a. nonprogrammed
17. According to the administrative model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints. a. True b. False
ANSWER: True
18. Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. a. True b. False
ANSWER: True
19. Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought. a. True b. False
ANSWER: True
21. The process of forming alliances among managers is called coalition building. a. True b. False
ANSWER: True
23. Good intuitive decision making is based on an ability to recognize patterns at lightning speed. a. True b. False
ANSWER: True
56. Nordstrom Department store's "No questions asked - Return's Policy" is an example of a(n): a. programmed decision. b. nonprogrammed decision. c. novel decision. d. poor management. e. unstructured decision.
a. programmed decision.
57. If your instructor has an attendance policy, she/he is using a(n): a. programmed decision. b. unique approach. c. condition of ambiguity. d. nonprogrammed decision. e. none of these.
a. programmed decision.
72. The four positions on the possibility of failure scale include certainty, risk, ambiguity, and _____. a. uncertainty b. conflict c. necessity d. indecision e. possibility
a. uncertainty
86. Which model of decision making is associated with satisficing, bounded rationality, and uncertainty? a. Classical b. Administrative c. Quantitative d. Rational e. Political
b. Administrative
87. The growth of quantitative decision techniques that use computers has expanded the use of which decision-making approach? a. Administrative b. Classical c. Intuitive d. Political e. Bureaucratic
b. Classical
51. Mark, a production manager at Kaylie's Kookware, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of _____. a. planning b. decision-making c. organizing d. controlling e. leading
b. Decision-making
1. Making a choice is the most significant part of the decision-making process. a. True b. False
b. False
68. Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming
b. Risk
71. Which of the following has the highest possibility of failure? a. The condition of certainty b. The condition of ambiguity c. The condition of uncertainty d. The condition of risk e. All of these
b. The condition of ambiguity
80. Which of these assumptions are included in the classical model of decision making? a. Problems are unstructured and ill defined. b. The decision-maker strives for conditions of certainty. c. Criteria for evaluating alternatives are unknown. d. The decision-maker selects the alternatives that will minimize the economic return to the organization. e. The situation is always uncertain.
b. The decision-maker strives for conditions of certainty.
89. The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as: a. satisficing. b. bounded rationality. c. classical model of decision making. d. normative approach. e. scientific approach.
b. bounded rationality.
24. Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions. a. True b. False
ANSWER: True
25. Managers confront a decision requirement in the form of either a problem or an opportunity. a. True b. False
ANSWER: True
27. Step one in the managerial decision-making process is recognition of decision requirement. a. True b. False
ANSWER: True
29. The best alternative is the one in which the solution best fits the overall goals and values of the organization and achieves the desired results using the fewest resources. a. True b. False
ANSWER: True
3. Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions. a. True b. False
ANSWER: True
31. Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff. a. True b. False
ANSWER: True
12. The growth of quantitative decision techniques that use computers has reduced the use of the classical approach. a. True b. False
ANSWER: False
14. Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality. a. True b. False
ANSWER: False
15. The classical model of decision-making works best in organizations that are made up of groups with diverse interests, goals, and values. a. True b. False
ANSWER: False
16. According to the classical model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints. a. True b. False
ANSWER: False
20. According to both research and managerial experience, intuitive decisions are best and always work out. a. True b. False
ANSWER: False
22. The political model consists of vague problems and goals, limited information about alternatives and their outcomes, and a satisficing choice for resolving problems using intuition. a. True b. False
ANSWER: False
26. Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood require only one step. a. True b. False
ANSWER: False
28. For a non-programmed decision, feasible alternatives are hard to identify and in fact are already available within the organization's rules and procedures. a. True b. False
ANSWER: False
30. The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out. a. True b. False
ANSWER: False
32. In the implementation stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals. a. True b. False
ANSWER: False
36. The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather. a. True b. False
ANSWER: False
38. The most effective managers are consistent in using their own decision style rather than shifting among styles. a. True b. False
ANSWER: False
4. Two employees in Stacey's department quit which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision. a. True b. False
ANSWER: False
41. Managers will frequently look for new information that contradicts thier instincts or original point of view.. a. True b. False
ANSWER: False
42. Most people underestimate their ability to predict uncertain outcomes. a. True b. False
ANSWER: False
44. Brainwriting refers to the tendency of people in groups to suppress contrary opinions. a. True b. False
ANSWER: False
8. Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance. a. True b. False
ANSWER: False
Devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group member's assumptions. a. True b. False
ANSWER: False
10. The classical decision making model assumes that the decision-maker is rational, and makes the optimal decision each time. a. True b. False
ANSWER: True
11. The approach that managers use to make decisions usually falls into one of three types - the classical model, the administrative model, and the political model. a. True b. False
ANSWER: True
13. The administrative model of decision making describes how managers actually make decisions in difficult situations. a. True b. False
ANSWER: True
33. Feedback is the part of monitoring that assesses whether a new decision needs to made. a. True b. False
ANSWER: True
90. Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts? a. Bounded rationality b. The classical model of decision making c. Satisficing d. Brainstorming e. Scientific management
a. Bounded rationality
65. Which of the following means that all the information the decision-maker needs is fully available? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. None of these
a. Certainty
50. Which of the following is a choice made from available alternatives? a. Decision b. Plan c. Goal d. Tactic e. Strategy
a. Decision
81. Which approach defines how a decision-maker should make decisions? a. Normative b. Scientific c. Descriptive d. Reflective e. Humanistic
a. Normative
99. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at Jefferson are complex and involve many people, with a significant amount of disagreement and conflict. Which decision-making model fits best for this organization? a. Political b. Functional c. Classical d. Administrative e. Bureaucratic
a. Political
63. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision? a. Programmed b. Nonprogrammed c. Wicked d. Administrative e. Intuitive
a. Programmed
2. A decision is a choice made from available alternatives. a. True b. False
a. True
55. Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of: a. a programmed decision. b. a nonprogrammed decision. c. an insignificant decision. d. poor management. e. personal grudge.
a. a programmed decision.
75. The condition under which ambiguity occurs is when: a. alternatives are difficult to define. b. objectives are well defined. c. information about outcomes is readily available. d. all the alternatives are known. e. decisions are already made.
a. alternatives are difficult to define.
48. Managers are often referred to as: a. decision makers. b. peace makers. c. conflict creators. d. an unnecessary layer of employees. e. profit suppressor.
a. decision makers.
95. All of the following are characteristics of the administrative decision making model except: a. vague problem and goals. b. conditions of certainty. c. limited information about alternatives and their outcomes. d. satisfying choice. e. all of these are characteristics of administrative decision making model.
b. conditions of certainty.
59. Examples of nonprogrammed decisions would include the decision to: a. reorder supplies. b. develop a new product or service. c. perform routine maintenance on one of the machines in manufacturing. d. terminate an employee for violation of company rules. e. fill a position.
b. develop a new product or service.
100. All of these are basic assumptions of the political model except: a. organizations are made up of groups with diverse interests, goals, and values. b. information is clear and complete. c. managers do not have the time, resources, or mental capacity to identify all dimensions of the problem. d. managers engage in the push and pull of debate to decide goals and discuss alternatives. e. all of these are basic assumptions of the political model.
b. information is clear and complete.
62. Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a: a. programmed decision. b. nonprogrammed decision. c. decision rule. d. structured decision. e. bad community decision.
b. nonprogrammed decision.
54. Programmed decisions are made in response to _____ organizational problems. a. unusual b. recurring c. significant d. minor e. unique
b. recurring
94. Most managers settle for a _____ rather than a _____ solution. a. minimizing; maximizing b. satisficing; maximizing c. top-level; bottomline d. maximizing; satisficing e. challenging; simple
b. satisficing; maximizing
70. When managers know which goals they wish to achieve, but information about alternatives and future events is incomplete, the condition of _____ exists. a. risk b. uncertainty c. ambiguity d. certainty e. problematic
b. uncertainty
96. Which of the following is the process of forming alliances among managers during the decision making process? a. Networking b. Socializing c. Coalition building d. Satisficing e. Passing the buck
c. Coalition building
52. _____ refers to the process of identifying problems and then resolving them. a. Organizing b. Controlling c. Decision-making d. Planning e. Leading
c. Decision-making
85. _____ approach describes how managers actually make decisions, where as _____ approach defines how a decision-maker should make decisions. a. Normative; descriptive b. Normative; classical c. Descriptive; normative d. Descriptive; administrative e. Normative; administrative
c. Descriptive; normative
82. _____ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization. a. Administrative b. Descriptive c. Normative d. Bounded rationality e. None of these
c. Normative
53. _____ decisions are associated with decision rules. a. Nonprogrammed b. Unique c. Programmed d. Ill-structured e. Novel
c. Programmed
67. Under conditions of _____, statistical analyses are useful. a. certainty b. ambiguity c. risk d. uncertainty e. conflict
c. Risk
69. _____ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Advocacy
c. Uncertainty
76. _____ decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, and unclear links among decision elements. a. Nonprogrammed b. Programmed c. Wicked d. Conventional e. Irrational
c. Wicked
88. The _____ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity. a. normative b. classical c. administrative d. scientific management e. objective
c. administrative
64. Associated with the condition of _____ is the lowest possibility of failure. a. ambiguity b. uncertainty c. certainty d. risk e. all of these
c. certainty
84. The _____ model of decision making is most valuable when applied to _____. a. administrative; programmed decisions b. classical; nonprogrammed decisions c. classical; programmed decisions d. classical; ambiguous decisions e. administrative; structured decisions
c. classical; programmed decisions
78. The classical model of decision making is based on _____ assumptions. a. philosophical b. irrational c. economic d. uncertainty e. technological
c. economic
61. When a small community hospital decides to add a radiation therapy unit, it is considered a: a. programmed decision. b. structured decision. c. nonprogrammed decision. d. poor management decision. e. certainty decision.
c. nonprogrammed decision.
73. _____ is by far the most difficult situation for a decision-maker. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming
d. Ambiguity
74. Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming
d. Ambiguity
49. _____ is a vital part of good management because decisions determine how the organization solves its problems, allocates resources, and accomplishes its goals. a. Organizing b. Competitive visioning c. Proper alignment d. Good decision making e. Leadership
d. Good decision making
79. Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization's best economic interests. Her decisions should be based on which of the following models? a. The administrative model of decision making b. The garbage can model of decision making c. The scientific management model of decision making d. The classical model of decision making e. The humanistic model of decision making
d. The classical model of decision making
77. During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions in a highly ambiguous environment. The decision to buyout failed banks could best be described as what type of decision? a. Bounded b. Programmed c. Conventional d. Wicked decision problem e. Irrational decision
d. Wicked decision problem
58. Nonprogrammed decisions are made in response to situations that are: a. unique. b. unstructured. c. important to the organization. d. all of these e. unique and important to the organization.
d. all of these
93. Intuition is based on _____, but lacking in _____. a. conscious thought; practicality b. experience; applicability c. a solid analysis; applicability d. experience; conscious thought e. thought-process; guts
d. experience; conscious thought
83. All of the following are characteristics of the classical decision making model except: a. clear-cut problems and goals. b. conditions of certainty. c. rational choice by individual for maximizing outcomes. d. limited information about alternatives and their outcomes. e. all of these are characteristics of classical decision making model.
d. limited information about alternatives and their outcomes.
97. The _____ model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take. a. classical b. functional c. bureaucratic d. political e. administrative
d. political
91. The essence of _____ is to choose the first solution available. a. bounded rationality b. creativity c. decision maximization d. satisficing e. the classical model of decision making
d. satisficing
66. Bobby, a product manager, wants to increase the market share of his product. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Bobby is operating under a condition of _____. a. risk b. ambiguity c. certainty d. uncertainty e. brainstorming
d. uncertainty
92. Rodney doesn't always realize that within his role as an air traffic controller, he must continuously perceive and process information based on knowledge and experience that he is not consciously aware of. This describes what type of decision-making? a. Administrative b. Right-brained c. Satisficing d. Rational e. Intuitive
e. Intuitive
98. The _____ model closely resembles the real environment in which most managers and decision-makers operate. a. normative b. administrative c. descriptive d. classical e. political
e. political
