MANA3335 Practice Test Ch. 4
Which of the following suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits?
*Bounded rationality
Several managers agreed that the current course of action in the firm was leading to disaster. The managers submitted a plan to the CEO suggesting an alternative they think will be significantly more effective, and they have agreed to continue to work together until this new plan is put in place. Which of the following have these managers used to promote the new goal?
*Coalition
Which of the following best explains what occurs during the step of selecting the best alternative when completing the rational decision-making process?
*Consider all situational factors, and choose the alternative that best fits the situation.
Which of the following does the administrative model of decision making claim?
*Decision makers are constrained by bounded rationality.
Which is the act of choosing one alternative from among a set of alternatives?
*Decision making
Which of the following is false about evidence-based management?
*Decisions should be made based on evidence, experiences, and principles of thought and analysis.
Bishop must select a new supplier for ink before the next print run for the product's packaging or risk missing a critical shipping deadline. The first bid he received met his price point, and he accepted the bid immediately, without waiting for the other bids to arrive or do any further research. This is an example of _____.
*satisficing
Aviva is considering a capital expenditure to upgrade the plant. Aviva is considering various financing options, but she is worried about what the interest rates will be, the benefits of issuing stocks or bonds, or if she will win a contract large enough to cover the cost of the upgrade. Aviva is making a decision under conditions of _____.
*uncertainty
Which model reflects the subjective considerations that often impact decision making and explain why, when a decision is made with little regard for logic, it can still turn out to be correct?
*Administrative
Apoorva's organization makes decisions using evidence-based management. What can Apoorva do to support a culture in which facts are encouraged?
*Allow people to tell the truth, even if it is unpleasant.
Manoj has asked managers of each division to review the impact of expanding into overseas markets. Manoj will then have a group of experts review their proposals and combine their opinions to reach a consensus decision. Which type of decision-making group is Manoj using?
*Delphi
According to the proponents of evidence-based management (EBM), what does it mean to treat your organization as an unfinished prototype?
*Encourage experimentation and learning by doing.
Lupita's company is experiencing high turnover and she needs to develop a solution. Using the rational decision-making process, Lupita thinks that adding benefits might not help with turnover, but increasing wages or changing hiring standards might. Which step in the decision-making process is Lupita in?
*Evaluating alternatives
To manage a large seasonal order, Teresita's firm instituted an overtime policy instead of hiring additional staff or adding a second shift. Six months later, Teresita is reviewing production costs to determine how well this approach worked so that she can begin planning for this year's seasonal increase. Which step in the rational decision-making process is Teresita in?
*Following up and evaluating the result
Which of the following questions is least important to ask when evaluating alternatives in the decision-making process?
*How will the alternative affect competitors?
After winning a large contract, Aisha needs to decide how to staff the project. She is currently calculating the costs of hiring new employees, using overtime, and adding a second shift. At which stage of the decision-making process is Aisha in?
*Identifying alternatives
Which of the following can managers use to promote effective group decision making?
*Insist that a group evaluate all alternatives.
During recent union negotiations, Hua, the company's labor expert, refused to concede to a demand made by the union. While this could have resulted in a strike, Hua felt the union was bluffing and would not strike. What was Hua's decision to refuse the union's demand based on?
*Intuition
Anke is planning her production schedule for the upcoming quarter. While she does not know for sure, she feels strongly that her company will win a large contract that will affect production. Based on her intuition, Anke is thinking that she should include the purchase of additional equipment and hiring staff in her production schedule, but she does not have specific reasons for making this decision. Why is the classical model of decision making an unsuitable approach for Anke to use in this situation?
*It rests on the assumption that managers are logical and rational.
Dajhia must make significant budget cuts in order for her organization to remain profitable. No matter what is decided, employees will be impacted. If employees disagree with the specific cuts that are made, there is great potential to harm morale, which could, in turn, impact productivity and cut profits even more. Dajhia has the authority to make all budget decisions, but she has opted to assemble a team from across the organization to make these decisions. How will she benefit from the group decision-making process?
*More acceptance of the final decision is likely.
As the head of human resources, Woojin has assembled a team to consider ways to manage the cost of health care and other benefits. He made sure to include a variety of employees—single, married, single parents, and older workers—on the team. Which of the following advantages will this team provide?
*More alternatives can be identified and evaluated.
Before instituting budget cuts, Apoorva wants to get feedback from her managers and work on developing creative and innovative alternatives. She asked each of her managers to brainstorm a list of ways they can cut their budgets without affecting workers. Ideas were placed on a flip chart, and each was then discussed. Which type of team is Apoorva using?
*Nominal
Which type of group is a group in name only, as the members are brought together in a face-to-face setting but do not talk to one another freely?
*Nominal
Manoj is considering the acquisition and conversion of a nearby production facility to increase output of his company. This decision is an uncommon one for Manoj to make, and he does not have a formula to follow for making this decision. Which type of decision does Manoj need to make?
*Nonprogrammed
Zereth is looking for ways to increase foot traffic into her brick-and-mortar locations. She has decided to open a small coffee shop with free Wi-Fi in her store. This is an example of which type of decision?
*Nonprogrammed
Jinhoon owns and manages a franchise sandwich shop and pays his employees minimum wage. Recently, his employees have met to discuss how difficult it is to live on minimum wage and to ask Jinhoon to increase the wages for all workers. Which type of decision-making element must Jinhoon now respond to?
*Political forces
Which of the following can be a major disadvantage to a task force or committee?
*Politics
Decisions about when to reorder standard supplies based on quantity-on-hand information are most likely to be which type of decisions?
*Programmed
Which of the following is a difference between programmed and nonprogrammed decisions?
*Programmed decisions recur with more frequency than nonprogrammed decisions.
Bhavik needs to address overcapacity at his plant, but he wants to avoid inappropriate assumptions and common pitfalls associated with making decisions. He wants his approach to be based on logic and sound reasoning. He also expects that his strongly held belief in benchmarking will enhance the quality of his decision. Which decision-making model should Bhavik use in this situation?
*Rational
In which situation is the decision maker most likely to make a mistake?
*State of uncertainty
A store manager notices that monthly sales have been down 5 percent each of the last three months. Which step has this manager reached in the rational decision-making process?
*Step 1: Recognizing and defining the decision situation
Maya would like to increase sales for the upcoming holiday season. She plans to increase advertising in the local paper, cut prices on selected items, or implement a loyalty program. Which step has Maya reached in the rational decision-making process?
*Step 2: Identifying alternatives
The Pour House coffee shop wants to increase sales and local foot traffic. The owner has considered daily specials, loyalty programs, and expanded menu selections. Ultimately, he decided to implement a loyalty program because it stimulates repeat business and customer loyalty. He has not started the new loyalty program yet. Which step is the manager of the Pour House at in his rational decision-making process?
*Step 4: Selecting the best alternative
What must a decision maker understand in order to make the most effective decision possible?
*The situation driving the decision
What is satisficing?
*The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency
How do managers with a high level of risk propensity compare with their more conservative counterparts?
*They are more likely to achieve big successes with their decisions and to incur greater losses.
Which of the following is true of decision makers in the classical decision model?
*They have complete information about the decision situation and alternatives.
A manager who relies heavily on intuition and reaches decisions quickly has the characteristics of a person with _____.
*a high level of risk propensity
One advantage of team decision making is that _____.
*better decisions generally emerge
Junhua is a "morning person " and holds his staff meetings at 8a.m. Members of his staff have suggested that a later meeting time would be more effective for most employees, but Junhua is a creature of habit and insists that meetings be held early in the morning since that has always worked best for him. In this scenario, Junhua's decision making is being constrained by _____.
*bounded rationality
Bess, the purchasing manager at World Textiles, is choosing a supplier for the cotton fabric to be used for a new line of youth bedsheets from among four bidders. Bess is engaged in _____.
*decision making
The decision-making process begins by _____.
*defining the decision situation
When a decision maker stays with a decision even when it appears to be wrong, the behavioral process is called _________.
*escalation of commitment
The final step in the rational decision-making process is _____.
*evaluating the results of the chosen alternative
Dajhia has assembled a task force to consider ways to respond to the threat of unionization by some hourly employees. This task force is an example of a(n) _____ .
*interacting team
Because the process of group or team decision making takes longer, _____.
*it is costlier
The decision-making process ends with _____.
*putting the chosen alternative into action
Blair works at a convenience store. One of the three slushy machines in the store has clogged four times this week. Now Blair is looking at the machine and trying to decide if the problem is a bad machine, if employees are not filling it properly, or if people are just using it incorrectly. Blair is currently _____.
*recognizing and defining the decision situation
The site manager for a company is negotiating for a new site to build an office complex. After several counter offers, the seller gave the company a final offer. The manager has the option to accept or reject the offer. If the manager accepts the offer, he gets a site in time to meet the relocation schedule, but at a price above budget. If he rejects the contract, he may get a more favorable price if the seller is bluffing. But he may lose out on the location and not be able to find another one in time if he does not get a more favorable price. The manager is making a decision in a state of _____.
*risk
