Management Midterm; Chapter 4
A disadvantage of using interacting groups to make decisions is that: a) It fosters political forces. b) It discourages creativity. c) It generates very few alternatives. d) It involves more costs than all other group decision techniques. e) It does not foster understanding between members.
A
A manager who has a high level of risk propensity is likely to: a) Make decisions quickly. b) Avoid risks. c) Spend a lot of time evaluating alternatives. d) Be wary of making a wrong choice. e) Rely heavily on mathematical analysis.
A
A plant manager had taken a few measures to try to reduce worker turnover. For four months he monitored the implementation of the measures. He now finds that the turnover rate is reduced by 10 percent. Which step of the rational decision-making model is illustrated in the scenario? a) Evaluating the results b) Identifying alternatives c) Recognizing the decision situation d) Selecting the best alternative e) Developing a set of alternatives
A
_____ is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency. a) Satisficing b) Groupthink c) Optimization d) Bounded rationality e) Escalation of commitment
A
A disadvantage of group decision making is that: a) Groupthink may occur. b) Generation of different opinions does not occur. c) Communication may be curbed. d) Knowledge available is always limited. e) Only a few alternatives are likely to be generated.
A*
Eric is a manager who recently introduced a new process for screening potential employees. Eric has noticed that the new screening process is not very efficient and is not helping recruiters find the best candidates. However, Eric continues to use the same process because it was so expensive to set up the initial system. Which of the following concepts is illustrated in the scenario? a) Evidence-based decision making b) Escalation of commitment c) Rational decision making d) Optimization e) Satisficing
B
A marketing manager decides to launch a new product because it is the first product that came to his mind, even if there are several better products to be explored. Which of the following is illustrated in the scenario? a) Escalation of commitment b) Rational decision making c) Bounded rationality d) Satisficing e) Optimization
D
The process of choosing one alternative from among a set of alternatives is called _____. a) Rational ignorance b) Altruism c) Bounded rationality d) Decision making e) Groupthink
D
When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of _____. a) Imperfect information b) Ambiguity c) Risk d) Certainty e) Unclear alternatives
D
A(n) _____ decision is a decision that is relatively structured or recurs with some frequency (or both). a) Custom-made b) Novel c) Unstructured d) Intuitive e) Programmed
E
Ryan Tools Company just acquired Coney Tools. The purchase came about because the employees in both the research and development and the production departments at Ryan Tools joined forces to lobby for the purchase of Coney Tools as opposed to other companies. Both departments wanted Coney Tools because of its state-of-the-art research and production facilities. This is an example of _____. a) Satisficing b) Intuitive decision making c) A dissection d) Escalation of commitment e) A coalition
E
_____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits. a) Satisficing b) Escalation of commitment c) Risk propensity d) Groupthink e) Bounded rationality
E
Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making process is Christine in? a) Identifying alternatives b) Implementing an alternative c) Defining the decision situation d) Selecting the best alternative e) Evaluating the decision effectiveness
A
In the rational decision-making model, once the alternatives have been evaluated, the next step is to _____. a) Select the best alternative b) Implement the chosen alternative c) Evaluate the results of the chosen alternative d) Identify the available alternatives e) Define the decision situation
A
Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____. a) Decision making b) Optimizing c) Rationalizing d) Brainstorming e) Social loafing
A
The rational decision-making process: a) Begins when a decision maker chooses the best solution. b) Involves the evaluation of different alternatives. c) Ends when alternatives have been identified. d) Does not include the implementation of an alternative. e) Ends when a decision situation has been defined.
B
Tim is the production manager at a steel factory. One of the steel processing machines in the factory has broken down and has to be replaced. Tim decides to buy a new machine from a company that he has read reviews of in industry magazines, even though there are other companies offering a discount on machines with better functionality. This is an example of how managers are constrained by _____. a) Bounded rationality b) Escalation of commitment c) Risk propensity d) Groupthink e) Political forces
A
When decision making is under a condition of uncertainty: a) The alternatives are not known. b) No ambiguity is involved. c) Errors are least likely to occur. d) The consequences of solutions are known. e) The decision situation is simple.
A
When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision. a) Programmed b) Unstructured c) Intuitive d) Irrational e) Strategic
A
_____ is the extent to which a decision maker is willing to gamble when making a decision. a) Risk propensity b) Intuition c) Optimization d) Satisficing e) Bounded rationality
A
In general, while identifying alternatives, the more important the decision, _____. a) The more alternatives should be generated b) The lesser the time needed to make the decision c) The lesser the chances of managers making the right decision d) The more the tendency of managers to ignore intuitions e) The lesser the chances of managers using expert opinion to make the decision
A
Nutrimax Inc. sponsors a football championship in Oriel in August every year. The championship is organized by the Oriel Football Association (OFA) to encourage new talent, and Nutrimax bears all the expenses incurred during the championship. The Oriel regional manager of Nutrimax sends across a check to the OFA in July of each year in order for them to prepare for the championship. The regional manager's decision about when to send the check to OFA is a(n) _____ decision. a) Programmed decision b) Unstructured decision c) Intuitive decision d) Contingency decision e) Satisficing decision
A
_____ is a situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision. a) Groupthink b) Groupshift c) Brainstorming d) Condorcet's paradox e) Group polarization
A
_____ is one major element of organizational politics that is especially relevant to decision making. a) Coalitions b) Intuition c) Escalation of commitment d) Satisficing e) Risk propensity
A
Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most familiar. This is an example of _____. a) Optimizing b) Bounded rationality c) Satisficing d) Synergy e) Escalation of commitment
B
Macy Computers Inc. faced a major software error that brought all work in the company to a standstill. Roger, the CEO, arranged for a panel of well-known engineers in the state to estimate the time that it would take for the error to be set right. Each engineer made an estimate and sent it to the group's leader, Dr. Rajesh. Dr. Rajesh averaged the estimates and sent the average back out to the group. People who had submitted unusual estimates were asked to say why those estimates were chosen. Roger used a(n) _____to help his company get rid of the software crisis. a) Interacting group b) Delphi group c) Standing committee e) Work group d) Unstructured group
B
Managers are most prone to error in a condition of _____. a) Certainty b) Uncertainty c) Risk d) Rationality e) Perfect information
B
Peter was looking for alternatives to double his plant's production capacity, and he considered acquiring the production plant of a rival company. The engineers in Peter's company advised him against it because acquiring the new plant would only increase their company's production by 15 percent. Therefore, Peter's idea failed the test for _____ in the context of the rational decision-making process. a) Feasibility b) Satisfactoriness c) Bounded rationality d) Satisficing e) Escalation of commitment
B
Which of the following disadvantages of group decisions typically results from the group being very cohesive? a) Disagreement b) Groupthink c) Lower acceptance of the final decision d) Minimal participation of members e) Conflicts
B
Which of the following statements is true about the decision-making process? a) It exclusively applies to problem situations. b) It requires that the nature of a particular situation be defined. c) It seldom applies to situations that are positive. d) It typically involves only one individual and seldom applies to groups. e) It results in the generation of only one alternative.
B
_____ is a behavioral process in which a decision maker stays with a decision even when it appears to be wrong. a) Bounded optimization b) Escalation of commitment c) Risk propensity d) Strategic maximization e) Intuitive rationality
B
Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the software that is required for her business. She does this because all her family members have used computers of the same brand all their lives. This is an example of how decision makers are constrained by _____. a) Political forces b) Bounded rationality c) Lucy's high risk propensity d) Logic e) Organizational strategies
B
Which of the following is true of nominal groups? a) Innovative ideas are not generated in nominal groups. b) Members of nominal groups are brought together in a face-to-face setting. c) Members of nominal groups talk freely among themselves, argue, agree, form internal coalitions, and so forth. d) Only one individual dominates a nominal group. e) Nominal groups are most often used for forecasting technological breakthroughs.
B
_____ is an innate belief about something without conscious consideration. a) Optimization b) Intuition c) Logic d) Ethics e) Risk propensity
B
A nonprogrammed decision: a) Is relatively more frequent that programmed decisions. b) Is highly structured. c) Requires more time and resources than programmed decisions. d) Is typically regarding daily organizational transactions. e) Typically applies to basic operating systems and procedures.
C
After being laid off by their companies, many individuals recognized three options they could choose from before they could secure new jobs: to spend less, to use savings, or to use credit. In the context of the steps involved in the rational decision-making model, they were _____. a) Monitoring implementation b) Selecting the best alternative c) Identifying alternatives d) Implementing alternatives e) Evaluating decision effectiveness
C
Groupthink: a) Results in more conflicts. b) Is most likely to occur in non-cohesive groups. c) Often leads to choosing a wrong alternative. d) Results in extensive brainstorming. e) Results in polarization.
C
In decision making, a condition of _____ exists when a decision maker knows what the alternatives are and what conditions are associated with each alternative. a) Risk b) Uncertainty c) Certainty d) Imperfect information e) Ambivalence
C
Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using _____ in decision making. a) Satisficing b) Rationality c) Intuition d) Optimization e) Logic
C
Managers with higher levels of risk propensity are more likely than their conservative counterparts to: a) Adhere to the rational model and be extremely cautious about their decisions. b) Avoid mistakes and infrequently make decisions that lead to big losses. c) Rely heavily on intuition and gamble big investments on their decisions. d) Reach decisions slowly after a great amount of analysis. e) Display no aggression in decision making.
C
Mike is in a hurry to appoint a personal assistant to help him with scheduling his meetings with clients. He posts an advertisement on a job website, and picks the first person who sends in her resume for the job. He only checks for the candidate's qualification and does not consider her work experience. This is an example of _____. a) Rational decision making b) Classical decision making c) Satisficing d) Evidence-based management e) Optimizing
C
One advantage of group decision making is: a) Groupthink. b) Saved time. c) More acceptance of the final decision. d) Lowered cost of decision making. e) Elimination of political forces.
C
When the prices of oil came down, the demand for sport utility vehicles (SUVs) increased. Automakers chose to increase production of full-size SUVs as the profit from large vehicles is greater than that from small vehicles. Which step in the rational decision-making model is illustrated in the scenario? a) Developing a set of rational alternatives b) Evaluating the possible alternatives c) Selecting the best alternative and implementing it d) Recognizing and defining the decision situation e) Evaluating decision effectiveness
C
William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____. a) Evidence-based management b) Rational decision making c) Escalation of commitment d) Rationality e) Satisficing
C
Decisions regarding standard organizational transactions are most likely to be _____ decisions. a) Unstructured b) Infrequent c) Programmed d) Intuitive e) Irrational
C
Tina works at a coffee shop. One of the four coffee machines at the coffee shop has not been functioning well; the same machine has broken down thrice in two weeks. Now, Tina is looking at the machine and trying to decide if the problem is a bad machine or if people are just using the machine wrong. Tina is currently _____. a) Implementing an alternative b) Evaluating the results of a chosen alternative c) Consulting with other decision makers d) Recognizing and defining the decision situation e) Eliminating feasible alternatives
D
When managers want to be sure to get innovative and creative ideas, they will often create a(n) ____ group.. a) Judge-advisor system b) Coalition c) Advocacy group d) Nominal group e) Political group
D
Which of the following is an advantage of group decision making when compared to individual decision making? A) The group process is less expensive. b) Groupthink is avoided. c) Less time is consumed. d) More alternatives are likely to be generated. e) Political forces are completely eliminated.
D
