MGMT 3140 - Quiz 2

Risk exists when the probability of an action being successful is less than _______ percent and losses may be higher than gains.

100

If a manager faces a programmed decision, that means

A clear structure or procedure exists for arriving at the right decision

Important, difficult decisions tend to be non-programmed, and they demand creative approaches.

True

The manager of a burer restaurant faces conflict when she must decide whether to cut hours for all employees or layoff two employees.

True

When Luke words his suggestions as positively as possible, his manager are more likely to be interested in them because of the bias known as the framing effect.

True

When decision makers carefully and conscientiously execute all six stages of decision making, the decision makers are said to have exercised ________.

Vigilance

Jose is trying to decide how to diversify his company so that it produces a larger variety of products and competes in a new market. This is a(n) example of a _______decision.

Nonprogrammed

Leila has identified a problem that consists of a gap between what her company is doing now and what it can do to create a more profitable future. The "problem" that Leila has identified is also a(n)

Opportunity

In the decision-making process, _______ means achieving the best possible balance among several goals.

Optimizing

David is a small business owner who things it is more important to spend money on marketing his current product line than to invest in research to develop new products. Which psychological bias is David displaying?

Discounting the future

When choosing a phone plan, Max decides on the first option that meets the company's requirements rather than investigating all available options. This is an example of ______.

Satisficing

What is the usual state of affairs in managerial decisions making?

Lack of Structure

When a manager must consider opposing pressures from different sources, the manager faces _______.

Conflict

Contingency plans should be developed only after a decision has been made and implemented.

False

Following all six stages of decision-making process guarantees successful decisions.

False

The _______ model of decision making occurs when people aren't sure of their goals, or disagree about the goals, and likewise are unsure of or in disagreement about what to do.

Garbage Can

In an ideal decision-making process, the initial step is to

Identify the problem.

Which of the following statements about group decision making is true?

If enough time is available, groups usually make higher-quality decisions than most individuals.