MGMT Ch 4

For a major project for his employer, Jason wants to choose the management consulting team that will give his employer the best outcome. Which decision criteria should Jason use to maximize effectiveness? a. He should choose the team with the lowest expenses. b. He should choose the team that can complete the project the quickest. c. He should choose the team that has the most knowledge and experience. d. Can't decide⎯None of these criteria are likely to lead to effectiveness. e. Can't decide⎯Jason needs to know which criteria are most important to his employer.

Can't decide⎯Jason needs to know which criteria are most important to his employer

Which of the following is an accepted technique for minimizing groupthink in group decision processes? a. Use of a devil's advocate b. Use of critical evaluation of alternatives c. Use of a dominant personality d. All of these. e. Only "use of a devil's advocate" and "use of critical evaluation of alternatives."

Only "use of a devil's advocate" and "use of critical evaluation of alternatives."

When Jeffrey Gundlach left TCW group, forty fellow employees went with him to start a new company. There were ____. a. political b. intuitive c. escalating commitment d. rational e. a coalition

a coalition

According to the concept of bounded rationality, decision makers are limited by a. less than complete information. b. their values. c. their habits. d. limited time. e. all of these

all of these

If you were asked to help a manager establish a nominal group, which of the following would you recommend? a. Alternatives are listed on a flip chart. b. The alternative with the most votes is the solution. c. Members are permitted to ask questions only for clarification. d. All of these. e. Only "alternatives are listed on a flip chart" and "The alternative with the most votes is the solution."

all of these

Katerina is the leader of a standing committee, and she is trying to avoid the groupthink that can often occur in group decision making. Which of the following techniques should she consider? a. Assigning one person to act as a devil's advocate b. Keeping her preferences secret until the end c. Requesting that divergent viewpoints be considered d. All of these e. Selecting diverse members for the group

all of these

Tony Hayward, former CEO of BP, made statements and decisions about vacations during the oil spill that led to him stepping down as CEO. His innate belief without conscious consideration that attending a polo match during the crises was ok shows he used a. escalation of commitment. b. classical decision making. c. satisficing. d. means-end inversion. e. bad intuition.

bad intuition

Which of the following decision-making models is based on the belief that human behavior is often imperfect? a. Rational b. Emotional c. Classical d. Behavioral e. Sequential

behavioral

Cheryl needs to replace her roof. She calls five roofers. After a week only one called her back, so she went with them. Cheryl used a. Bounded rationality b. Irrational decision making c. Optimization d. Feasibility e. Means-end inversion

bounded rationality

Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon? a. Satisficing b. Bounded rationality c. Brainstorming d. Rational decision making e. Decision framing

bounded rationality

Keisha is 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. optimization. b. bounded rationality. c. satisficing. d. synergy. e. escalation of commitment.

bounded rationality

When people are asked "if you fold a piece of paper 50 times, how high will it be?" they tend, at best, to say a tall building. In reality it would reach to the sun. Human decisions are limited by ____. a. bounded rationality b. escalation of commitment c. satisficing d. coalition e. political forces

bounded rationality

"Decision making under risk" means the decision maker a. has no data on which to base his or her decision. b. is risk-averse, avoiding risky investments. c. knows all the risks involved in the decision. d. can estimate decision data with some probability. e. is making an important decision with long- term consequences.

can estimate decision data with some probability

In the classical decision making model, optimization means a. implementing two or more alternatives simultaneously. b. choosing the alternative with the best overall expected outcomes. c. gathering the most complete information before making the decision. d. reaching a satisfactory level of performance. e. None of these.

choosing the alternative with the best overall expected outcomes

Which of the following decision-making models is a prescriptive model? a. Behavioral b. Classical c. Administrative d. Bureaucratic e. Probabilistic

classical

Tim thinks he deserves a promotion. He talks with HR about his outstanding performance. HR knows that Tim's performance is only a little better than the others and if Tim gets promoted other directors will ask for promotion to VP. They will be turned down and the long term affect will be several disgruntled managers. Tim's promotion failed the test for ____. a. consequences b. satisfactoriness c. satisficing d. escalation of commitment e. feasibility

consequences

James is responsible for his boss's travel arrangements. James selects the train tickets to purchase. James in engaged in a. problem solving. b. decision framing. c. decision making. d. brainstorming. e. satisficing.

decision making

The process of choosing one alternative from among many alternatives is called a. satisficing. b. problem solving. c. bounded rationality. d. decision making. e. None of these.

decision making

The senior pastor at Princeton Alliance Church needs to select a pastor of adult ministry. This is an example of a. decision making under uncertainty. b. decision making under risk. c. decision making under absolute certainty. d. decision making under unrealistic conditions. e. None of these.

decision making under uncertainty

After BP failed repeatedly to stop the oil spill, it gathered engineers from around the world to help find a solution. This was a(n) ____ group. a. Delphi b. interacting c. nominal d. unilateral e. task

delphi

Which of the following is NOT an example of an interacting group? a. Standing committee b. Delphi group c. Task force d. Functional department e. Ad hoc committee

delphi group

One advantage of group decision making is a. groupthink. b. compromise. c. diversity of members' backgrounds. d. lowered cost of decision making. e. ability of a strong individual to direct the group.

diversity of members' backgrounds

When Donald Rumsfeld was Secretary of Defense, he was a very strong-willed manager. He was often able to persuade generals and admirals to do what he thought was best. Which disadvantage of group decision making was that group experiencing? a. Diversity of background b. Compromise c. Groupthink d. Domination by one member e. time required to get a decision

domination by one member

Amazon, maker of Kindle, chose to stay with a black and white screen for greater readability. They were in which step of the rational decision making model? a. Develop a set of rational alternatives b. Evaluate the possible alternatives c. Select the alternative d. Recognize and define the decision situation e. Evaluate decision effectiveness

select the alternative

For his work in developing the administrative model to describe how managers make decisions in the real world, Herbert Simon won the Nobel Prize in a. medicine. b. economics. c. peace. d. psychology. e. management.

economics

The best alternative is the most ____ alternative. a. efficient b. controllable c. profitable d. effective e. valid

effective

The Obama administration continued to push through health care reform even though its version was supported by less than half of the American public. From a political perspective the administration showed ____. a. political forces b. intuition c. escalation of commitment d. rationality e. satisficing

escalation of commitment

Amazon, maker of Kindle, could choose a touch screen which increases glare or non-touch screen for better viewing. They were in which step of the rational decision making model? a. Develop a set of rational alternatives b. Evaluate the possible alternatives c. Consult with other decision-makers d. Recognize and define the decision situation e. Evaluate decision effectiveness

evaluate the possible alternatives

College students can buy textbooks on Borders.com, Amazon, and their local bookstore. When they compare prices they are in which step of the rational decision making model? a. Develop a set of rational alternatives b. Evaluate the possible alternatives c. Consult with other decision-makers d. Recognize and define the decision situation e. Evaluate decision effectiveness

evaluate the possible alternatives

When a plant manager who is trying to reduce turnover of production workers notices that turnover has decreased by 10 percent four months after he instituted a new training program, at which step in the rational decision-making process is this manager? a. Evaluating the results b. Identifying alternatives c. Recognizing the decision situation d. Selecting the best alternative e. Developing a set of alternatives

evaluating the results

Tim knows he deserves a raise. He talks with HR about his outstanding performance. HR describes what a bad year the company is having and that there is no money for raises. Tim's raise failed the test for ____. a. consequences b. bounded rationality c. satisficing d. escalation of commitment e. feasibility

feasibility

Citicorp chose to settle an SEC lawsuit for $75 million. When executives compare the cost of the settlement to those of other financial institutions they are in which step of the rational decision making model? a. Develop a set of rational alternatives b. Evaluate the possible alternatives c. Consult with other decision-makers d. Recognize and define the decision situation e. Follow up and evaluate the results

follow up and evaluate the results

A disadvantage of using interacting groups to make decisions is a. group politics. b. a void of expert opinion. c. an increase in programmed costs. d. faster decision making. e. too much brainstorming.

group politics

Groups that interact electronically are more likely to express dissenting views, than groups that interact face to face. This knowledge would be helpful in minimizing ____. a. domination b. groupthink c. irrationality d. compromise e. coalitions

groupthink

Which of the following disadvantages of group decisions typically results from the group being very cohesive? a. Irrationality b. Groupthink c. Compromise d. Dominance e. Coalitions

groupthink

All of the following are advantages of group decision making EXCEPT a. groupthink may occur. b. better decisions generally emerge. c. enhanced communication may result. d. more information and knowledge are available. e. None of these.

groupthink may occur

Who was one of the first experts to develop the administrative model of decision making? a. Elton Mayo b. George Bennett c. Martin Johnson d. Jack Welch e. Herbert Simon

herbert simon

During the recession many Americans lost their jobs. They could spend less, spend savings, or continue their lifestyle by using credit. They were in which step of the rational decision making model? a. Develop a set of rational alternatives b. Evaluate the possible alternatives c. Identify alternatives d. Recognize and define the decision situation e. Evaluate decision effectiveness

identify alternatives

When the price of oil came down, demand for full size SUVs increased. Automakers make more profit on large vehicles than small vehicles. Automakers chose to increase production of full size SUVs. The increase in production was which step in the rational decision making model? a. Develop a set of rational alternatives b. Evaluate the possible alternatives c. Implement the chosen alternative d. Recognize and define the decision situation e. Evaluate decision effectiveness

implement the chosen alternative

Which of the following is the most common form of a decision-making group? a. Interacting b. Delphi c. Nominal d. Reactive e. Interdependent

interacting

Eric is communications director. The New York Times wants to interview his boss. Eric suspects the reporter is not objective, so he declines the interview. Eric used ____ to make the decision. a. intuition b. escalation of commitment c. bounded rationality d. programmed decision e. coalitions

intuition

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 may occur. c. Compromise decisions resulting from indecisiveness may emerge. d. More alternatives are likely to be generated. e. One person may dominate the group.

more alternatives are likely to be generated

Which of the following is a disadvantage of group decision making? a. More alternatives are likely to be generated. b. More information will be brought to bear on the problem. c. More time will be needed to make the decision. d. More communication about the decision will result. e. all of these

more time will be needed to make the decision

Which of the following types of groups is sometimes used to develop a consensus of expert opinion by getting a group of experts together to generate and then discuss alternatives? a. Interacting b. Delphi c. Detached d. Rational e. Nominal

nominal

Which of the following is a true statement? a. The classical model of decision making is a prescriptive model. b. The administrative model of decision making is a descriptive model. c. The classical model focuses on the real world, while the administrative model shows us the ideal world. d. All of these. e. None of these.

none of these

Accenture and Acxiom executives formed a strategic alliance between the companies. This is a(n) ____ decision. a. programmed b. nonprogrammed c. satisficing d. rational e. irrational

nonprogrammed

Decisions by managers of Time Warner to sell off Warner Music Group's DVD and CD manufacturing, printing, packaging, physical distribution, and merchandising business was an example of a(n) ____ decision. a. programmed b. satisficing c. nonprogrammed d. irrational e. None of these.

nonprogrammed

Bar code scanning computers at checkout have greatly simplified the inventory ____ decisions. a. nonprogrammed b. certainty c. risk d. programmed e. need

programmed

John does not like his current job. He has an offer for a good job, with better pay, but it requires relocating to an area with which he is not familiar. John is reluctant to change jobs because of a. bounded optimization. b. escalation of commitment. c. risk propensity. d. strategic maximization. e. intuitive rationality.

risk propensity

Tim knows he deserves a promotion. He talks with HR about his outstanding performance. HR has been told by headquarters to maintain the number of vice presidents at the current level. Tim's promotion failed the test for ____. a. consequences b. bounded rationality c. satisficing d. satisfactoriness e. feasibility

satisfactoriness

When a marketing manager decides to launch a new product because it was the first product he investigated that showed profits over the minimum required threshold, what type of decision process is this manager using? a. Escalation of commitment b. Intuition c. Bounded rationality d. Satisficing e. None of these.

satisficing

Joyce wants to decrease turnover. She can change hiring practices, increase benefits, increase wages, or provide a yearend bonus. She chooses the yearend bonus because it keeps payroll lower and should quickly affect turnover. Joyce is in which step in the decision-making process? a. Selecting which alternative to implement b. Identifying alternatives c. Defining the decision situation d. Evaluating alternatives e. Developing a set of alternatives

selecting which alternative to implement

Rahda offered to buy a home. Her realtor told her there is an 80% chance her offer price will be accepted. She is operating in a a. state of risk. b. state of uncertainty. c. state of certainty. d. state of bounded rationality. e. state of satisficing.

state of risk

The administrative model of decision making assumes that managers are imperfect. This means that managers a. are stupid. b. lack training and education. c. suffer from human biases. d. don't care about decision outcomes. e. fail to understand the decision making process.

suffer from human biases

Bounded rationality is assumed in a. the behavioral model. b. the rational model. c. the irrational model. d. decision making under certainty. e. None of these.

the behavioral model