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Chapter 03

Managerial Decision Making

True / False Questions
1. Managers often avoid taking action when faced with challenges.
True

False

2. Managers typically face structured problems they have seen before,
which makes the decision process easier because there is a procedure
to follow already.
True

False

3. Reggie is the owner of a new bike shop and must decide how much to
withhold from employee paychecks as income tax. This is an example
of a nonprogrammed decision.
True

False

4. Programmed decisions are useful when there is no predetermined
structure on which to rely.
True

False

5. Important, difficult decisions tend to be nonprogrammed, and they
demand creative approaches.
True

False

6. During and after the BP oil spill, which devastated large areas in the
Gulf of Mexico, the decisions made by government officials and BP were
mostly programmed.
True

False

7. Managers prefer uncertainty to certainty because it makes the job more
challenging and interesting.
True

False

8. Risk is a fact of life in nonprogrammed management decisions.
True

False

9. Another way of referring to "risk" is "taking a risk."
True

False

10 Conflict exists when the manager must consider opposing pressures
. from different sources.
True

False

11 A school principal faces conflict when she must decide whether to give
. all staff an 8 percent pay cut or lay off four full-time employees.
True

False

12 The first stage of decision making requires the decision maker to
. generate alternatives.
True

False

13 The "problem" in decision making may actually be an opportunity that
. needs to be exploited.
True

False

14 Sara, a warehouse manager, needed a fast solution when an employee
. asked for a day off for the following week when the whole crew was
supposed to be doing inventory. For her, a ready-made alternative will
be quicker than designing a custom-made solution.
True

False

15 Ideas that have been seen or tried before are known as ready-made
. solutions.
True

False

16 Fundamental to choosing an alternative is predicting the consequences
. that will occur if the various options are put into effect.
True

False

17 After a decision is made and implemented, only then should
. contingency plans be developed.
True

False

18 Managers use satisficing to achieve the best possible outcome.
.
True False
19 When you satisfice, you compare your choice against your goal, not
. against other options.
True

False

20 Maximizing means that you achieve the best possible balance among
. several goals.
True

False

21 Decision makers should presume that with a carefully made decision,
. things will go smoothly during implementation.
True

False

22 Evaluating the decision is always useful, whether the outcome has been
. positive or negative.
True

False

and decaying . True False . He felt the company should go ahead with its release. convinced it was a revolutionary idea that he could make successful. a decision maker must evaluate every decision he . Patrick could be suffering from the illusion of control.23 To exhibit vigilance. True False 29 In almost every business situation. True False 24 Following all six stages of the decision making process guarantees . True False 28 Governmental budget deficits. problem or decision alternative is phrased or presented. successful decisions. time . environmental destruction. urban infrastructure can be partially explained by the bias known as discounting the future. the quality of the decision is far . and social realities. pressures. True False 27 Framing effects refer to a decision bias influenced by the way in which a . True False 26 Patrick was disappointed when the marketing research team reported . or she makes. True False 25 Barriers to effective decision making include psychological biases. that a new product was not received well by customers in a focus group. more important than the speed at which the decision is made.

and the enhancement of creativity. . less important goal emerges is called goal displacement. whereas abject conflict is emotional and directed at other people. True False 36 The most constructive type of conflict is affective conflict.30 Many organizational decisions are the result of intensive social . appropriate leadership style. True False 31 If enough time is available. original goal and a new. True False 37 Cognitive conflict is differences in perspectives or judgments about . interactions. True False 34 A condition that occurs when a decision-making group loses sight of its . True False 35 The three requirements for effective group decision making are an . the constructive use of disagreement and conflict. and politicking. True False 32 One advantage of using a group for decision making is groupthink. issues. groups typically make better decisions than . True False 33 One potential advantage of a group for decision making is that people . bargaining. most individuals acting alone. True False . are likely to be more committed to the decision. .

True False . and likewise are unsure of or in disagreement about what to do. element to the conflict. or disagree about the goals. make small decisions and move cautiously toward a bigger solution. True False 44 The confrontational model of decision making arises when people . group members generate as many ideas about a . True False 40 In brainstorming.38 The job of a "devil's advocate" is to add a personal or emotional . True False 42 Bounded rationality is a less-than-perfect form of rationality in which . problem as they can while simultaneously critiquing them. True False 45 The kitchen sink model of decision making occurs when people aren't . True False 39 The most fundamental unit of value in the creativity revolution is ideas. True False 41 Complimenting one another and telling stories are examples of . True False 43 The incremental model of decision making occurs when managers . decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed. . behaviors that can make brainstorming less effective. disagree on goals or compete with one another for resources. sure of their goals.

Structured decisions Unstructured decisions Restructured decisions Nonprogrammed decisions Programmed decisions . or trouble lie ahead once they start working on a problem. policies. It's not the managers' job to solve problems. Employees actually prefer a hands-off boss who lets them handle conflict on their own. D. E. C. Conflict. E. Guaranteed success. B. D. Managers cannot be sure how much time. and solvable by using simple rules.46 Decision making under crisis conditions will inevitably result in poor . Speed. D. They don't agree with the outcome. decisions and negative publicity. E. B. A. so they typically refer issues to HR. having . A. C. Certainty. Structure. 48 Characteristics of managerial decisions include which of the following? . A. energy. True False Multiple Choice Questions 47 Managers often ignore challenges for which of the following reasons? . B. Getting involved won't impress their bosses. 49 __________ are those decisions encountered and made before. objectively correct answers. or numerical computations. C.

E. Qualitative decisions. C. C. E. 52 Gemma. Corporate objectives. at least three bids must be received and the lowest bid that meets specifications will be accepted. C. B. Policy requires that . be A.50 Important. B. Nonprogrammed decisions. E. D. A. Programmed decisions. E. Maximized. routine programmed nonroutine nonprogrammed satisficing 53 Ari works for the federal government in acquisitions. . Minimized. Nonprogrammed decisions. Ari's decisions regarding the contracts with suppliers would be classified as A. She is facing a _______ decision. A. Programmed decisions. Standing decisions. Noneconomic decisions. who owns the tutorial service Math Machine. 51 New. Policy decisions. B. D. Logical. complex decisions having no proven answers are . difficult decisions that require creative approaches tend to . D. C. B. in contracting with suppliers. whether to let one of her experienced tutors open a second location in an adjacent town. Programmed. D. is contemplating . Single-use decisions. Structured. novel.

percent and losses may occur is A. Risk. Uncertainty Improbability Conflict Policy formulation Risk 56 Uncertainty exists when the manager . Probability analysis. D. Knows the risk involved in making the decision. B.54 The state that exists when decision makers have incomplete . B. . 2010 and 2011 made businesses slow to start hiring. C. C. Faces two conflicting issues. Policy formulation. D. Uncertainty. E. D. Has accurate and comprehensive information to make the decision. 57 The state that exists when the probability of success is less than 100 . E. Has insufficient information to make the decision. Uncertainty. Certainty. Probability analysis. C. Knows that the probability of success is less than 100 percent. B. Risk. E. B. A. D. E. information is known as A. C. A. Ambiguity. Policy formulation. 55 ________ regarding the strength and timing of the economic recovery in .

issue between two of her departments because both want a new copier to be located in their areas. Internal conflict. pressures from different sources. where . E. but the other offer in Kansas City is near her family and friends. Psychological conflict. Individual conflict. E. D. E. Generate alternatives. C. Challenge the status quo. Select an alternative. is encountering an . Identificational conflict. . D. C. One is from a firm in Seattle. C. E. Emotional conflict. B. Physiological conflict. B. Marisol is having a difficult time making a decision due to experiencing A. Conflict between groups. Organizational conflict. 61 The initial step in the decision making process is to . A. a middle manager at a cosmetics company. Identify the problem. External conflict. 60 Casey. Psychological conflict. Evaluate the decision. she would like to live. C. D.58 A manager is dealing with ________ if she is considering opposing . A. conflict cooptation collusion cohesiveness groupthink 59 Marisol has received two job offers. D. B. This would best be described as A. B.

D. Identify a solution. Evaluating consequences. D. B. E. E. D. Properly diagnose the cause of the problem. The manager promptly ordered the chef to rewrite the evening menu. 64 Once a problem is identified and properly diagnosed. The manager's decision to have the menu revised suggests that he failed to A. All of these. Future performance forecasts. E.62 A manager may discover that a problem exists with current company . B. Evaluate the alternatives and consequences. Evaluate the decision and its consequences. Past performance. the next stage in . B. 63 The manager of the Capitol Restaurant noted that the restaurant had . The performance of other organizations. Challenge the status quo. C. Evaluating the decision. C. Customer feedback later indicated that the problem had not been the menu but poor service from the wait staff. . the decision making process involves A. C. Evaluating information. Desired performance based on the business plan for the year. Generating alternative solutions. Evaluating alternatives. experienced a decreased number of evening customers. performance by comparing it with A.

knows that the economy greatly . B. Corporate objectives. D. B. She has developed a plan of action for each of four possible economic outcomes may occur in her geographic area over the next four to six years. the manager of Kiddy Couture. An irrational decision maker. D. Engaging in satisficing. Custom-made solution. D. Brainstorming.65 When a solution is specifically designed for a particular problem or set . 66 Custom-made decisions most often require . Ready-made solution. Creativity. C. User-generated solution. D. Dynamic solution. Single-use plans. Contingency plans. Focusing on efficient decisions. Shadow plans. C. E. B. A. E. C. 68 Irena. the future unfolds are called A. Standing plans. Top management approval. . of problems. Utilizing contingency planning. Designer-enhanced solution. E. C. E. B. affects her business. it is called a A. A consultant. In-depth computations. Facing a stable environment. Here Irena is A. 67 Alternative courses of action that can be implemented based on how .

D.69 __________ requires searching thoroughly for a complete range of . C. today he needs pens. A. and staples. alternatives. Here Victor is using A. Optimizing. Generate many alternatives for evaluation. C. Accepting. carefully assessing each alternative. . 71 Victor. Realize the largest possible production benefit. D. orders office supplies . B. E. D. Management by exception. A. Involve as many people affected by the decision as possible in its design. B. Optimizing. E. 72 To maximize a decision is to . He looks at the office supply catalog and quickly picks a selection for each that is priced acceptably. Satisficing. Maximizing. sticky notes. C. B. E. comparing one to another. Minimizing. E. and then choosing or creating the very best. C. Achieve the best possible outcome. an administrative assistant in accounting. Maximizing. Benchmarking Maximizing Minimizing Satisficing Optimizing 70 Making a decision by accepting the first option that meets your goal is . Utilize groupthink for individual decisions. Minimizing. Satisficing. D. biweekly. referred to as A. B.

Optimizing. most often requires which of the following steps? A. Programming. D. C. D. C. nor the lowest in price available. Minimizing. B. Satisficing. Encourage vigilance. That alternative that produces the least conflict. Maximizing. . a manager at Montlucon Eyewear. The first minimally acceptable alternative. The case he chose was neither the highest quality available. List the resources and activities required. 75 Implementing a decision must be planned carefully. yet it had a good combination of attributes. Adequate planning . C. Among those alternatives with most predictable results. Be sure the CEO agrees with the implementation decision. secure display case for his most expensive sunglasses. D. yet low in price. Allow employees to take on responsibility once the implementation has begun.73 Managers who optimize their decisions will attempt to choose . Determine how things will turn out before the decision is made. 74 Nigel. Nigel's choice illustrates A. The least expensive alternative. E. needed to purchase a new . B. E. He wanted one that was high in quality and security. B. An alternative that achieves the best possible balance among several goals. E. A.

76 The final stage in the decision-making process is . A. The employees monitor the implementation of the decision carefully. The implementation has used too many resources. E. The decision was a bad one. Criteria analysis. indicates that either the implementation will require more time or that A. B. The manager is not capable of rational decisions. The employees have been monitored to see their reactions to the decision. The scenarios were labeled incorrectly. 77 Negative feedback received during the final evaluation of the decision . B. E. C. 78 Vigilance in decision making means . A. Anticipating the results. C. Diagnosing remaining issues. Implementing the solution. The problem cannot be solved. Evaluating the decision. D. C. . B. D. E. The customer realizes increased value as a result of the decision. The manager has been monitored during the decision making process. The manager has carefully and conscientiously completed all stages in the decision-making process. D.

Lack of confidence in your ability to control your employees. Rationality. Belief that you have no control and so you don't put any effort into the decision. and applying information for decision making. Belief that you can influence events even when you have no control over what will happen. E. Time pressures. B. evaluating. E. D. C. Belief that some unknown person actually has the control and is waiting for you to make a poor decision. . Social realities. examples of A. A. The fact that people are motivated by a need for power that clouds their decision making capabilities. D. C. E. The conflict that results from too many people involved with making a decision. C. D. discounting the future. The effect that people's psychological capabilities have upon the decisions they must make under pressure. The inability to be objective when gathering. and framing effects are all . B. Psychological biases. A. B. 81 The psychological bias known as "illusion of control" refers to a . Vigilance.79 Psychological bias in decision making is best described as . What happens when a decision maker must balance the preferences of many interested parties. 80 Illusion of control. diluting effectiveness. Belief that you have ultimate control and no one can take it from you.

83 Which of the following is an example of subjective bias that many . Goal displacement.82 When business managers ignore risks and fail to objectively evaluate . E. D. the odds of success for their decisions. Framing effects. E. affecting the decision. D. Groupthink. Minimizing. D. corporate executives exhibit? A. Varying alternatives can be presented in a more favorable or less favorable way. E. B. Illusional effects. . B. C. Biasing effects. C. Satisficing. Discounting effects. C. Framing effects. This is referred to as A. may have an impact on which alternative is chosen. Illusion of control. 84 The way in which the alternatives to a decision are stated or phrased . Framing effects. Time pressure. it is an example of which of the following psychological biases? A. Discounting the future. Phrasing effects. B. Social realities.

Valuing longer-term benefits and costs more heavily than shorterterm benefits and costs. lower revenues. Underestimating the short-term effects of the decision." D.85 Discounting the future refers to . and more hassles for the band. E. 86 Which of the following is the best example of a manager discounting . reduced exposure. Valuing short-term benefits and costs more heavily than longer-term benefits and costs. Used psychological conflict. Initial strong public support was followed by fewer concerts. C. D. "I must consult others in order to make good decisions. In retrospect. Been socially irresponsible. the future? A." C. C. e-commerce is expensive and difficult." 87 The band Pearl Jam decided not to book any concerts through . E. Overestimating the long-term effects of the decision. B. A. B. . Ticketmaster as an objection to the virtual monopoly Ticketmaster had on the industry. "Even if it is becoming popular. Making quick decisions with whatever information is at hand. "We must make a profit in order to survive. Been improperly framed. "I must focus more on quarterly profits now than long-term profitability. D. Involved too many conflicting groups." B. "It is important to plan for the long-term health of the company. the band's decision seems to have A." E. Discounted the future.

Is based on adjusted predictions. Doing all of these. social realities real-time information psychological biases framing effects quality initiatives . C. E. Involving people more effectively and efficiently. Involving people in the decision who are experts and can be trusted. Framing effects. Time pressures. Is based on past performance. B. Is discounted for the future. E. Illusion of control. C. D. students who don't study. C. . B. D. 90 Real-time information is information that . A. 89 Tactics that are used to make decisions quickly while maintaining the . E. Taking a realistic view of the conflict. Represents a realistic forecast.88 People who avoid regular dental checkups. 91 Each morning OfficeMax's CEO has a computer-based conference with . Social realities. Discounting the future. high quality of such decisions include A. Focusing on real-time information. The previous day's challenges are discussed so that problems can be quickly and effectively resolved or even avoided. D. C. all store managers. OfficeMax is utilizing __________ to retain a competitive edge. A. E. and dieters who sneak dessert are all examples of which psychological bias? A. B. Is obtained with little or no delay. B. D.

Satisficing. Domination of the discussion by one member. never. . Social realities. C. Time pressures. 93 The basic philosophy behind group decision making is that "two heads . and Omar's boss often overturned decisions! These interpersonal factors that decrease the effectiveness of the organization's decisions are best described as A. potentially. D. B. E. 94 Advantages in using a group for decision making include . No. Groupthink. they went over his head. D. Gut feelings.92 Omar dreaded annual performance reviews. Yes. A. Goal displacement. and worse still. always. two does not constitute a group. D. A lack of control. E. are better than one. B. Intellectual stimulation. His company had few . if his employees did not like their reviews. B. E. No. performance standards. C. No evidence exists to determine this. C. The illusion of control." But does this statement hold true in an organizational setting? A. Yes.

environmentally friendly. Staff members were then aware of the various options and recognized the benefits and costs of each. D. B. D.95 Andersen Tree Farm in Kansas is looking for ways to be more . In this scenario. Satisficing. E. which takes up much more time and delays the decision. C. C. B. which causes confusion. A. involving the staff most likely helped them to A. Understand the decisions and be more committed to them. Dominate the discussion and reinforce the organizational structure. D. . and invited everyone to participate in deciding which ideas to advance. 96 Which of the following is a potential disadvantage of group decisions? . Intellectual stimulation. Please everyone completely. improves the chances that the decision will be implemented successfully? A. Different approaches to solving the problem are available. People who participate in a group discussion are more likely to understand why the decision was made. B. People understand the decision details and are highly critical. 97 Which of the following statements about group decision making . A larger pool of information. Group discussion provides an opportunity for intellectual stimulation. Displace obsolete goals in favor of new ones. C. E. Too many approaches and perspectives on the problem. Use groupthink to gain buy-in. Managers interviewed frontline staff to get their opinions and ideas. E. A single group member can dominates the discussion. More information is available when several people are making the decision.

E. 100 A phenomenon that occurs in decision making when group members . D. E. B. C. B. C. Vigilance. D. 101 When a group accepts an alternative that seems to please the . Exercised vigilance. they were good. Optimized. E. but nobody else got a word in or had the opportunity to share. Groupthink. B. Domination. Stimulated the intellects of its members. the group has A. 99 Nicole was disappointed with her team's discussion regarding next . Groupthink. Participated in goal displacement. D. Esprit de corps. Satisficing. C. Exercised groupthink. Satisficing.98 Allowing one person to control a discussion or decision would best be . Adam rammed all his ideas through. described as A. . Goal displacement. E. Individual dominance. year's marketing campaign. Goal displacement. Intellectual stimulation. but the group has not taken the time or effort to explore many options. B. C. Intuition. Goal displacement. Individual dominance. Satisficing. members of the group. D. This group experienced A. avoid disagreement as they strive for consensus is known as A.

C. Domination. E. domination goal displacement groupthink satisficing synergy . The result of high levels of creativity. C. Concerned with maintaining a positive team spirit. D. C. Lacking in confidence about their abilities. 103 Groups that operate under a condition known as groupthink are most . A. Accomplished by obtaining all members' input. B. E. A. D. 104 A condition that occurs when a decision-making group loses sight of its . Group alternatives. solving a problem. An extreme form of satisficing. Typically superior to individual decision making. goal emerges is A. D. likely to be A. 105 When a group member is more interested in winning an argument than . E. original goal and a new. possibly less important. Goal displacement. Groupthink. E. D. Overcritical. Creative.102 Groupthink is . Avoiding disagreement while striving for consensus. __________ has occurred. Conflict. B. C. Unclear about the decision at hand. B. B.

108 Emotional disagreements directed toward other people are known as .106 Leaders of decision-making groups should . Dialectic conflicts. Dominate the discussion. B. Cognitive conflicts. B. B. __________ conflict. Cognitive conflicts. B. 107 Issue-based differences in perspectives or judgments are . D. E. C. Compromises. E. the most constructive type of conflict is . Satisfactory conflicts. Pay close attention to the group process. C. Help the group satisfice. the absence of emotional cognitive affective dialectic . Encourage groupthink. Affective conflicts. Discourage conflict. E. A. D. 109 Of the possibilities here. A. C. Dialectic conflicts. D. D. E. A. C. Satisfactory conflicts. Affective conflicts. A. Compromises.

B. combat groupthink and an overall lack of creativity. This situation is best described as A. Affective conflict. Conflict generated within the group is maximized by including not only factual counterarguments but also personal attacks. In this example. Cognitive conflict. lately the arguments have become personal. Conflict manager. Devil's advocate. Trisha was playing the role of A. method? A. Alliant conflict. D. 112 Which of the following best describes the requirements of the dialectic . E. B. The leader performs the role of peacekeeper when attacks are directed at individuals. C. B. Affective leader. Conflict generated within the group is minimized by enforcing group unity. 111 There seemed to be complacence in the group. but .110 Two of your employees consistently disagree with each other. E. Comprehensive conflict. Dialectic leader. D. C. C. and this has begun to impact the whole work group. D. Someone intentionally presents negative arguments to force further investigation of the alternative under consideration. so in an effort to . leading to anger and bitterness. A structured debate between two conflicting courses of action is held. E. . Dialectic conflict. Antagonist. the group leader Tim assigned Trisha the task of pointing out problems throughout the meeting.

B. A devil's advocate.113 In trying to make a conflict between two employees less personal and . . Innovation. Brainstorming. Groupthink. B. C. E. D. E. problem as they can and criticism is withheld until all ideas have been proposed is called A. You are being creative if you join two previously unrelated things. their manager asks each of them to approach the problem from a different viewpoint than their original one. 114 Which of the following statements about encouraging creativity is . To be creative you need to be a top student. C. D. E. emotional. Vigilance. Forecasting. This is an example of encouraging the use of A. C. Cooperation. 115 A process in which group members generate as many ideas about a . D. Groupthink. true? A. The fundamental unit of value in the creative revolution is artistic ability. Your employees will be more creative if you set a tight deadline for them. People are much more likely to be creative if they work alone. B. Cognitive conflict. Affective conflict.

D. stepped incremental coalitional garbage can staged 119 The ___________ model of decision making arises when two or more . A. Bounded rationality Incremental decision making Cognitive rationality Coalitional decision making Affective rationality 118 The _______ model of decision making occurs when decision makers . bounded rationality incremental garbage can coalitional affective rationality . E. B. each representing a different preference. B. a brainstorming session must . B. D. A. C. Be done quickly.116 In order to be creative. A. Be held in private. Be done face-to-face. A. rational because decisions are complex and complete information is unavailable. B. and each tries to use power and negotiation to sway the decision. C. E. 117 ____________ is the concept that decision makers cannot be truly . C. C. D. groups form. Involve industry experts. make small decisions and move in piecemeal fashion toward a bigger solution. E. Be free of criticism. D. E.

A template for a press statement. C. B. Crises can never provide benefits to a company. Sasha should collect information both sides and decide herself which is the best approach. D. Sasha would be best served by following which of these courses of action? A. A communication plan that indicates that the company is in complete control. 122 Which of the following is an element of an effective plan for crisis . managers should make decisions only after taking all of the details into account. C. Sasha should use a collaborative method in which she establishes a goal around which the entire group can rally. so bounded rationality must be used. Sasha should encourage both teams to engage in affective conflict to solve the problem. D. In crises. E. Sasha should ask parties from both sides to solve the problem in whatever way they can. Early warning signals of crisis are unavailable. E. 121 Which of the following statements about decision making in a crisis is . true? A. B. Sasha should find a mediator to solve the problem. B. midst of a battle between coalitions. each with its own solution to a challenge the team faced. Crisis management can be best handled as the crisis occurs. D. A method to quickly distance the company from the crisis. . C. management? A. Competitive actions to bounce back immediately.120 Sasha leads a research team of engineers and found herself in the . to be released before details are learned. Psychological and cultural actions for the human and emotional toll. An effective plan for crisis management is essential to include on the management agenda. E.

Providing a report to the owner detailing her opinion of whether or not she should purchase several more Ace locations that are for sale in the area. 123 The decisions in Scenario A can best be classified as either . Nonprogrammed. A. Certain or uncertain. . Complex. Interviewing applicants for two open part-time positions and hiring them. 3. The decisions facing her this week are: 1. Determining which sales representatives to see this week to place orders. 124 Decision 4 is an example of which type of decision? . B. Programmed or nonprogrammed. Necessary. D. E. 2.Scenario A The local Ace Hardware Store manager has several decisions she has to make as the week begins. Programmed. E. Providing input to the owner on a possible upgrade to the checkout technology currently in use. She always comes in early on Mondays to sift through the paperwork on her desk and decide what needs to be done for the week and in which order. B. Necessary or unnecessary. Simple. D. C. Simple or complex. C. 4. Risky or nonrisky. A.

." While this is true. There are five highly opinionated but very committed employees in your group. they are novel and complex E. he often jumps to conclusions. she is A. Satisficing. as he often says. A. in decision 3. Optimizing. It has become a very emotional and personal issue for all of you. necessary. most people in the firm agree that the decision making of the owner is going to destroy the young firm before it really gets started. The owner firmly believes that he should make every decision since he is. E. procedures. simple. programmed. ______________. there is a clear and precise correct answer 126 If. meets the minimum requirements. nonprogrammed. At this point. Experiencing external conflict. they are can be solved using rules. B. they are novel and complex C. without going through every candidate's file to see if anyone else is better. "the one who signs the checks. Scenario B You work for a new start-up marketing consulting firm.125 Decisions 1 and 3 are both __________ decisions because . and structures D. D. Maximizing. and doesn't even take time to diagnose the problem at hand because he does not like to ask you and your colleagues for your opinions. C. risky. Experiencing internal conflict. they are novel and complex B. the manager takes the first candidate she sees that .

D. This unrealistic view is called A. Disillusionment. satisficing uncertainty. An example of maximizing. A. himself is because he believes that he will be able to influence everything that happens in the business. B. Time pressures. B. diagnosing the problem as he sees it and then immediately implementing a solution is A. The illusion of control. satisficing. C. An example of vigilance.127 The owner's belief that he should make every decision himself by . cognitive conflict maximizing. affective conflict affective conflict. it can be said that you initially experienced ___________ but now are experiencing ___________. your differences . in the beginning of your work with the company. Discounting the future. with the owner were purely based on differences in judgment. B. E. D. Framing effects. C. 129 If. D. but have now deteriorated to the point that your differences are more emotional and directed personally toward one another. C. Correct. A mistake that often leads to suboptimal decisions. 128 Suppose the owner tells you that the reason he makes every decision . certainty . E. maximizing cognitive conflict. An example of satisficing. E.

B.Scenario C Jeremy is the lead on a new project at work. 130 Jeremy opened the meeting by suggesting to the group that he had . Jeremy read several . A. Intellectual stimulation. C. and it didn't go well. and the meeting was over in no time! The group was most likely engaging in __________ so they could end the meeting and go home early. To his surprise. The whole staff of 10 was there. which he thought would lead to buy-in from the group. B. the first idea he suggested was accepted by the group. Goal displacement. He recently had his first staff meeting to solve a fairly large problem with the project. E. 131 Since the first meeting didn't go well. and it is essential that he make a good impression on top management. groupthink satisficing goal displacement domination intellectual stimulation . Groupthink. management books on working with groups and thought perhaps a longer meeting would allow time to explore several points of view. Satisficing. Jeremy was practicing A. C. put a lot of thought into the problem and that perhaps they should use his ideas to solve the problem. D. E. D. Individual dominance. He chose a Friday afternoon so everyone could go home afterward and not have to rush off to other work appointments. He spent the meeting explaining why this should occur. Instead the group didn't get much done in that meeting.

B. She explains that the budget process is the easiest decision for her because she breaks it into smaller pieces and builds the decisions as she goes. Intellectual stimulation. one of his colleagues asked a question that didn't seem to relate to the issue at hand. The consultant's first meeting is set up to describe to the managers of Effectively Organized Inc. responds most positively to . Jeremy began to discuss the issues around this new question. E. C. Nonetheless. Each of the managers seems to prefer one of the models over the others. the models of organizational decision processes. C. The crisis model. The garbage can model. The incremental model. E. Soon the group was in a heated discussion with each side seeming to stop at nothing to "win" the argument. D. the model that is the most cautious. In this meeting the group was engaged in A. trying to be a good leader. . B. He put the agenda out early and felt he was ready to lead the meeting. Scenario D Effectively Organized Inc. Satisficing. has hired a consultant to help with organizational decision making. Groupthink. Shortly after the meeting began. Bounded rationality.132 Jeremy decided to try another meeting because the project deadline . was drawing closer and he was beginning to feel pressure to get something done with his group. 133 The president of Effectively Organized Inc. The coalitional model. Goal displacement. D. The president seems to prefer which model? A. Domination.

The garbage can model. Essay Questions . The incremental model. The crisis model. E. Her managers are using A. company. 135 The vice president of production tells the group that in his area of the . C. C. His managers are using which model of decision making? A. He tells the group that he sees many situations with managers who don't have enough time to process all the relevant information and who regularly face very complex problems. The coalitional model. B. goals and have now formed groups to advocate for their own interests.134 The vice president of human resources believes decision makers . Bounded rationality. The coalitional model. D. B. E. He seems to expect which decision process? A. D. B. E. The garbage can model. Bounded rationality. C. The crisis model. The garbage can model. The coalitional model. many managers don't even agree about what their goals are and certainly cannot agree on what action to take. The incremental model. cannot be truly rational in their decisions. 136 The vice president of marketing declares that her people disagree on . The crisis model. Bounded rationality. The incremental model. D.

. Give an example of each. . 138 List and explain the six steps of the decision making process.137 Differentiate between programmed and nonprogrammed decisions. managerial decision making. . 139 Define psychological biases and explain how they relates to .

. . making. 142 Briefly describe the brainstorming process using an example.140 Explain the four disadvantages of using a group to make decisions. 141 Explain the three requirements of effectively managing group decision . .

144 Describe the elements of an effective crisis management plan. processes thought to occur when bounded rationality conditions hold. .143 Compare and contrast three models of organizational decision . .

Managers typically face structured problems they have seen before. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 2. Managers often avoid taking action when faced with challenges. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. getting involved is risky. energy. FALSE Lack of structure is the usual state of affairs in managerial decision making. for most there is no automatic procedure to follow. They may not be sure how much time. leaving the decision maker uncertain about how to proceed. TRUE Managers often avoid taking action when faced with challenges for a number of reasons. and problems can be perplexing. which makes the decision process easier because there is a procedure to follow already. Problems are novel and unstructured. or trouble lies ahead. Although some decisions are routine and clear-cut. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager.Chapter 03 Managerial Decision Making Answer Key True / False Questions 1.

Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . a clear procedure or structure exists for arriving at the right decision. This is an example of a nonprogrammed decision. Programmed decisions are useful when there is no predetermined structure on which to rely. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 4.3. novel. FALSE If you face a programmed decision. Reggie is the owner of a new bike shop and must decide how much to withhold from employee paychecks as income tax. complex decision having no proven answers. FALSE A nonprogrammed decision is a new. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. How much money Reggie must withhold from employee paychecks has an objectively correct answer and is thus a programmed decision.

The decisions made during and after the oil spill were nonprogrammed decisions in that they were complex decisions having no proven answers. FALSE Programmed decisions are those that have been made before. During and after the BP oil spill. the decisions made by government officials and BP were mostly programmed. TRUE Important. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . all of which have merits and drawbacks. and they demand creative approaches. there is no predetermined structure on which to rely. and they demand creative approaches.5. having objectively correct answers and solvable by using simple rules. which devastated large areas in the Gulf of Mexico. difficult decisions tend to be nonprogrammed. difficult decisions tend to be nonprogrammed. policies. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 6. or numerical computations. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. The decision maker must create or impose a method for making the decision. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Important. There are a variety of possible solutions.

When you can estimate the likelihood of various consequences but still do not know with certainty what will happen. Another way of referring to "risk" is "taking a risk. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 8. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. uncertainty is the rule. nonprogrammed managerial decisions. like uncertainty. TRUE For important. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager." FALSE Risk. is a fact of life in managerial decision making. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . you are facing risk. Good decision makers prefer to manage risk rather than thrive on taking risks.7. But this is not the same as taking a risk. Managers prefer uncertainty to certainty because it makes the job more challenging and interesting. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 9. and insist on hearing what did or will happen. Risk is a fact of life in nonprogrammed management decisions. FALSE Managers are expressing their preference for certainty when they are not satisfied hearing about what might have happened or may happen.

a manager may have to decide whom to lay off when she doesn't want to lay off anyone. occurring on the level of psychological conflict or of conflict between individuals or groups. AACSB: Analytic Blooms: Remember Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. TRUE Individual decision makers experience psychological conflict when several options are attractive. Level of Difficulty: 1 Easy Topic: Characteristics of Managerial Decisions 11.10. Conflict exists when the manager must consider opposing pressures from different sources. A school principal faces conflict when she must decide whether to give all staff an 8 percent pay cut or lay off four full-time employees. TRUE Conflict results from opposing pressures from different sources. or when none of the options is attractive. AACSB: Analytic Blooms: Apply Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Level of Difficulty: 3 Hard Topic: Characteristics of Managerial Decisions . For instance.

The "problem" in decision making may actually be an opportunity that needs to be exploited. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 13. and (6) evaluate the decision. FALSE The ideal decision making process includes six stages. decisions involve choosing how to seize the opportunity.2 illustrates: (1) identify and diagnose the problem. (5) implement the decision. TRUE The "problem" may actually be an opportunity that needs to be exploited: a gap between what the organization is doing now and what it can do to create a more positive future.12. The first stage of decision making requires the decision maker to generate alternatives. (3) evaluate alternatives. as Figure 3. (2) generate alternative solutions.2 AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. In that case. (4) make the choice. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making . Refer To: Figure 3.

Level of Difficulty: 3 Hard Topic: The Stages of Decision Making 15. Ideas that have been seen or tried before are known as ready-made solutions. needed a fast solution when an employee asked for a day off for the following week when the whole crew was supposed to be doing inventory. For her. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making .14. AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. a ready-made alternative will be quicker than designing a custom-made solution. a warehouse manager. it is likely to be implemented more quickly than a custommade solution that is designed specifically for the problem at hand. TRUE Because a ready-made solution is an idea that has been seen or tried before. Sara. TRUE Decision makers who search for ready-made solutions use ideas they have tried before or follow the advice of others who have faced similar problems. AACSB: Analytic Blooms: Apply Learning Objective: 03-02 Summarize the steps in making "rational" decisions.

After a decision is made and implemented. Fundamental to choosing an alternative is predicting the consequences that will occur if the various options are put into effect. and higher profits. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 18. higher sales. the best time to imagine scenarios and develop contingency plans is during the alternative evaluation process. such as lower costs. lower employee turnover. FALSE While a manager is evaluating alternatives. he or she should predict the consequences that will occur if the various options are put into effect. TRUE Fundamental to the alternative evaluation process is predicting the consequences that will occur if the various options are put into effect. that is. only then should contingency plans be developed. FALSE Satisficing is choosing the first option that is minimally acceptable or adequate.16. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 17. including quantifiable measures of success. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. AACSB: Analytic Blooms: Remember . Managers use satisficing to achieve the best possible outcome. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. Managers should consider several types of consequences.

FALSE Maximizing is achieving the best possible outcome. like good quality at a reasonable price. not against other options. you compare your choice against your goal. Optimizing means that you achieve the best possible balance among several goals. When you satisfice. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 20. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. When you satisfice. you compare your choice against your goal. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 19. Maximizing means that you achieve the best possible balance among several goals. TRUE Satisficing is choosing the first option that is minimally acceptable or adequate. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making .Learning Objective: 03-02 Summarize the steps in making "rational" decisions. AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. not against other options. The search for alternatives stops at the first one that is okay.

21.

Decision makers should presume that with a carefully made decision,
things will go smoothly during implementation.
FALSE
Decision makers should presume that things will NOT go smoothly
during implementation. It is useful to take a little extra time to
identify potential problems and opportunities associated with
implementation.
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-02 Summarize the steps in making "rational" decisions.
Level of Difficulty: 2 Medium
Topic: The Stages of Decision Making

22.

Evaluating the decision is always useful, whether the outcome has
been positive or negative.
TRUE
Decision evaluation is useful whether the conclusion is positive or
negative. Feedback that suggests the decision is working implies that
the decision should be continued and perhaps applied elsewhere in
the organization. Negative feedback means that either (1)
implementation will require more time, resources, effort, or thought
or (2) the decision was a bad one.
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-02 Summarize the steps in making "rational" decisions.
Level of Difficulty: 2 Medium
Topic: The Stages of Decision Making

23.

To exhibit vigilance, a decision maker must evaluate every decision
he or she makes.
TRUE
Vigilance occurs when decision makers carefully and conscientiously
execute all six stages of decision making, including making provisions
for implementation and evaluation.
AACSB: Analytic
Blooms: Remember
Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.
Level of Difficulty: 1 Easy
Topic: The Best Decision

24.

Following all six stages of the decision making process guarantees
successful decisions.
FALSE
Even if managers reflect on their decision-making activities and
conclude that they executed each step conscientiously, they still will
not know whether the decision will work; after all, nothing guarantees
a good outcome.
AACSB: Analytic
Blooms: Understand
Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.
Level of Difficulty: 2 Medium
Topic: The Best Decision

25.

Barriers to effective decision making include psychological biases,
time pressures, and social realities.
TRUE
There are many reasons why people do not use rational decisionmaking processes. Decisions are influenced by subjective
psychological biases, time pressures, and social realities, for
example.
AACSB: Analytic
Blooms: Understand

Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.
Level of Difficulty: 2 Medium
Topic: Barriers to Effective Decision Making

26.

Patrick was disappointed when the marketing research team reported
that a new product was not received well by customers in a focus
group. He felt the company should go ahead with its release,
convinced it was a revolutionary idea that he could make successful.
Patrick could be suffering from the illusion of control.
TRUE
The illusion of control is a belief that one can influence events even
when one has no control over what will happen. In business, such
overconfidence can lead to failure because decision makers ignore
risks and fail to objectively evaluate the odds of success.
AACSB: Analytic
Blooms: Apply
Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.
Level of Difficulty: 3 Hard
Topic: Barriers to Effective Decision Making

27.

Framing effects refer to a decision bias influenced by the way in
which a problem or decision alternative is phrased or presented.
TRUE
Framing effects refer to how problems or decision alternatives are
phrased or presented and how these subjective influences can
override objective facts.
AACSB: Analytic
Blooms: Remember
Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.
Level of Difficulty: 1 Easy
Topic: Barriers to Effective Decision Making

the premium is on acting quickly and keeping pace. TRUE Discounting the future is a bias weighting short-term costs and benefits more heavily than longer-term costs and benefits. Governmental budget deficits.28. Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making . and decaying urban infrastructure can be partially explained by the bias known as discounting the future. In almost every business situation. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. environmental destruction. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. and decaying urban infrastructure. Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making 29. The most conscientiously made business decisions can become irrelevant and even disastrous if managers take too long to make them. FALSE In today's rapidly changing business environment. Discounting the future is said to partly explain governmental budget deficits. the quality of the decision is far more important than the speed at which the decision is made. environmental destruction.

Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making 31. TRUE If enough time is available.2 AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. bargaining. If enough time is available. many decisions are the result of intensive social interactions. AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. FALSE According to Table 3.30. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 32. However. and politicking. One advantage of using a group for decision making is groupthink. Therefore. groups are often inferior to the best individual in decision making. Level of Difficulty: 2 Medium Topic: Decision Making in Groups . and politicking. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Many organizational decisions are the result of intensive social interactions. TRUE Important managerial decisions are marked by conflict among interested parties.2. groups typically make better decisions than most individuals acting alone. one potential disadvantage of using a group to make decisions is groupthink. bargaining. Refer To: Table 3. groups usually make higher-quality decisions than most individuals acting alone.

Buying into the proposed solution translates into high motivation to ensure that it is executed well.33. Level of Difficulty: 1 Easy Topic: Decision Making in Groups . But when goal displacement occurs. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 34.2 AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. less important goal emerges is called goal displacement. A condition that occurs when a decision-making group loses sight of its original goal and a new. Sometimes saving face and defeating the other person's idea become more important than solving the problem. TRUE The goal of group members should be to come up with the best possible solution to the problem. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Refer To: Table 3. new goals emerge to replace the original ones. One potential advantage of a group for decision making is that people are likely to be more committed to the decision. TRUE Group discussion typically leads to a higher level of commitment to the decision.

Finally. Refer To: Figure 3. TRUE The leader of a decision-making body must attempt to minimize process-related problems.3 AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. affective conflict is emotional and directed at other people. The three requirements for effective group decision making are an appropriate leadership style. Affective conflict is likely to be destructive to the group because it can lead to anger. The most constructive type of conflict is affective conflict. In contrast. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 36. and lower-quality decisions. or differences in perspectives or judgments about issues. AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making . total and consistent agreement among group members can be destructive and lead to groupthink. FALSE The most constructive type of conflict is cognitive conflict. the constructive use of disagreement and conflict.35. and the enhancement of creativity. especially if custom-made solutions to problems are needed. Furthermore. goal displacement. the group may need to be creative in generating ideas. bitterness.

Requiring people to point out problems can lessen inhibitions about disagreeing and make the conflict less personal and emotional. Level of Difficulty: 1 Easy Topic: Managing Group Decision Making 38.37. Affective conflict is likely to be destructive to the group because it can lead to anger. In contrast. Level of Difficulty: 1 Easy Topic: Managing Group Decision Making . bitterness. whereas abject conflict is emotional and directed at other people. Cognitive conflict is differences in perspectives or judgments about issues. and lower-quality decisions. The group leader can formally assign people to play this role. goal displacement. FALSE The most constructive type of conflict is cognitive conflict. FALSE A devil's advocate has the job of criticizing ideas. AACSB: Analytic Blooms: Remember Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. The job of a "devil's advocate" is to add a personal or emotional element to the conflict. or differences in perspectives or judgments about issues. AACSB: Analytic Blooms: Remember Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. affective conflict is emotional and directed at other people.

In brainstorming. TRUE Some have said we are in the midst of the next great business revolution: the "creative revolution. industrial. AACSB: Analytic Blooms: Understand Learning Objective: 03-06 Explain how to encourage creative decisions. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making ." Said to transcend the agricultural. The most fundamental unit of value in the creativity revolution is ideas. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 40. FALSE Brainstorming is a process in which group members generate as many ideas about a problem as they can but criticism is withheld until all ideas have been proposed. the most fundamental unit of value in the creativity revolution is ideas. group members generate as many ideas about a problem as they can while simultaneously critiquing them. AACSB: Analytic Blooms: Understand Learning Objective: 03-06 Explain how to encourage creative decisions.39. and information revolutions.

41. AACSB: Analytic Blooms: Remember Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. (3) human beings simply cannot process all the information to which they are exposed. Level of Difficulty: 1 Easy Topic: Organizational Decision Making . telling stories) that are nice but don't promote creativity. Bounded rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed. repeating ideas. decision makers cannot be truly rational because (1) they have imperfect. TRUE Brainstorming isn't necessarily as effective as some people think. (4) there is not enough time to process all relevant information fully. including cocktail party-type conversations (complimenting one another. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 42. Sometimes in a brainstorming session people engage in noncreative behaviors. TRUE According to Simon's bounded rationality. Complimenting one another and telling stories are examples of behaviors that can make brainstorming less effective. incomplete information about alternatives and consequences. and (5) people. (2) the problems they face are so complex. AACSB: Analytic Blooms: Understand Learning Objective: 03-06 Explain how to encourage creative decisions. including managers within the same firm. have conflicting goals.

and move cautiously in piecemeal fashion toward a bigger solution. FALSE The coalitional model of decision making arises when people disagree on goals or compete with one another for resources. The incremental model of decision making occurs when managers make small decisions and move cautiously toward a bigger solution. Level of Difficulty: 1 Easy Topic: Organizational Decision Making 44. The confrontational model of decision making arises when people disagree on goals or compete with one another for resources. AACSB: Analytic Blooms: Remember Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. TRUE The incremental model of decision making occurs when decision makers make small decisions. AACSB: Analytic Blooms: Remember Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations.43. take little steps. Level of Difficulty: 1 Easy Topic: Organizational Decision Making . The decision process becomes political as groups of individuals band together and try collectively to influence the decision.

and likewise are unsure of or in disagreement about what to do. Level of Difficulty: 1 Easy Topic: Organizational Decision Making 46.45. FALSE A crisis. or disagree about the goals. Level of Difficulty: 2 Medium Topic: Organizational Decision Making Multiple Choice Questions . This model implies that some decisions are chaotic and almost random. AACSB: Analytic Blooms: Understand Learning Objective: 03-08 Describe how to make decisions in a crisis. such as strengthened bonds with those that are assisted during the crisis. managed effectively. can have benefits. Decision making under crisis conditions will inevitably result in poor decisions and negative publicity. FALSE The garbage can model of decision making occurs when people aren't sure of their goals. AACSB: Analytic Blooms: Remember Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. and likewise are unsure of or in disagreement about what to do. The kitchen sink model of decision making occurs when people aren't sure of their goals. or disagree about the goals.

conflict. C. uncertainty. Refer To: Figure 3. and lack of structure. Structure.47. D. D. B. It's not the managers' job to solve problems. Certainty. Guaranteed success. Figure 3. Managers often ignore problems for several reasons: they can't be sure how much time. B. E.1 AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. C. or trouble lie ahead once they start working on a problem. Getting involved won't impress their bosses. and it is easier to procrastinate or to get busy with less demanding activities. Managers cannot be sure how much time. Characteristics of managerial decisions include which of the following? A. energy. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 48. energy. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. They don't agree with the outcome. so they typically refer issues to HR. getting involved is risky. or trouble lie ahead once they start working on a problem. Speed. Conflict. E. Employees actually prefer a hands-off boss who lets them handle conflict on their own. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions .1 illustrates the four characteristics of managerial decisions: risk. Managers often ignore challenges for which of the following reasons? A.

A. __________ are those decisions encountered and made before. Qualitative decisions. Noneconomic decisions. E. and solvable by using simple rules. Nonprogrammed decisions are new. Structured decisions Unstructured decisions Restructured decisions Nonprogrammed decisions Programmed decisions Programmed decisions have been encountered and made before. AACSB: Analytic Blooms: Remember Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. or numerical computations. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . novel. a clear procedure or structure exists for arriving at the right decision. E. Programmed decisions. Policy decisions. difficult decisions tend to be nonprogrammed. Nonprogrammed decisions. policies. If you face a programmed decision. or numerical computations. and they demand creative approaches. C. Level of Difficulty: 1 Easy Topic: Characteristics of Managerial Decisions 50. They have objectively correct answers and can be solved by using simple rules. difficult decisions that require creative approaches tend to be A. having objectively correct answers. B. policies. Important.49. C. B. D. Important. D. complex decisions having no certain outcomes.

E. Nonprogrammed decisions. Gemma.51. She is facing a _______ decision. Level of Difficulty: 1 Easy Topic: Characteristics of Managerial Decisions 52. routine programmed nonroutine nonprogrammed satisficing Gemma is facing a nonprogrammed decision. E. Programmed decisions. Level of Difficulty: 3 Hard Topic: Characteristics of Managerial Decisions . Corporate objectives. novel. D. AACSB: Analytic Blooms: Remember Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. complex decisions having no certain outcomes. who owns the tutorial service Math Machine. A. New. C. that is. Single-use decisions. D. Important. B. is contemplating whether to let one of her experienced tutors open a second location in an adjacent town. Nonprogrammed decisions are new. Standing decisions. and they demand creative approaches. B. complex decision having no certain outcomes. difficult decisions tend to be nonprogrammed. C. novel. AACSB: Analytic Blooms: Apply Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. it is a new. complex decisions having no proven answers are A. novel.

Programmed. Policy formulation. B. Structured.53. Minimized. Policy requires that in contracting with suppliers. B. C. The state that exists when decision makers have incomplete information is known as A. Level of Difficulty: 3 Hard Topic: Characteristics of Managerial Decisions 54. Level of Difficulty: 1 Easy Topic: Characteristics of Managerial Decisions . Ari faces a programmed decision because a clear procedure or structure exists for arriving at the right decision. E. D. Ambiguity. D. Uncertainty means the manager has insufficient information to know the consequences of different actions. C. Programmed decisions have been encountered and made before. Maximized. AACSB: Analytic Blooms: Remember Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Logical. Uncertainty. AACSB: Analytic Blooms: Apply Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Ari's decisions regarding the contracts with suppliers would be classified as A. Probability analysis. at least three bids must be received and the lowest bid that meets specifications will be accepted. Risk. Ari works for the federal government in acquisitions. E.

Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 56. Uncertainty Improbability Conflict Policy formulation Risk Uncertainty means the manager has insufficient information to know the consequences of different actions. it can hold them back from taking action. Businesspeople do not like uncertainty. Has insufficient information to make the decision. Uncertainty exists when the manager A. C. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Knows the risk involved in making the decision. B. uncertainty about the strength and timing of the economic recovery in 2010 and 2011 made businesses slow to start hiring. B. D. D. Knows that the probability of success is less than 100 percent.55. Uncertainty means the manager has insufficient information to know the consequences of different actions. Has accurate and comprehensive information to make the decision. Faces two conflicting issues. C. ________ regarding the strength and timing of the economic recovery in 2010 and 2011 made businesses slow to start hiring. E. For example. E. A.

E. B. E. Policy formulation. If the decision is the wrong one. B. AACSB: Analytic Blooms: Remember Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. you may lose money. occurring on the level of psychological conflict or of conflict between individuals or groups. Level of Difficulty: 1 Easy Topic: Characteristics of Managerial Decisions 58. D. Risk. conflict cooptation collusion cohesiveness groupthink Conflict occurs when there are opposing pressures from different sources. AACSB: Analytic Blooms: Remember Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Certainty. time. Uncertainty. C. A manager is dealing with ________ if she is considering opposing pressures from different sources.57. Probability analysis. D. Risk exists when the probability of an action being successful is less than 100 percent and losses may occur. C. reputation. The state that exists when the probability of success is less than 100 percent and losses may occur is A. or other important assets. Level of Difficulty: 1 Easy Topic: Characteristics of Managerial Decisions . A.

Casey. where she would like to live. This conflict is between groups. Psychological conflict. C. Emotional conflict. External conflict. Individual conflict. B. Marisol is having a difficult time making a decision due to experiencing A. Level of Difficulty: 3 Hard Topic: Characteristics of Managerial Decisions 60. D. Marisol has received two job offers. Identificational conflict. D. Conflict occurs when there are opposing pressures from different sources. Level of Difficulty: 3 Hard . AACSB: Analytic Blooms: Apply Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Conflict occurs when there are opposing pressures from different sources. Psychological conflict. AACSB: Analytic Blooms: Apply Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. E. Marisol's conflict is psychological since both opportunities are attractive to her in some way. but the other offer in Kansas City is near her family and friends. C. Physiological conflict. the two departments. occurring on the level of psychological conflict or of conflict between individuals or groups. a middle manager at a cosmetics company. is encountering an issue between two of her departments because both want a new copier to be located in their areas. Organizational conflict. Conflict between groups. One is from a firm in Seattle. Internal conflict.59. occurring on the level of psychological conflict or of conflict between individuals or groups. E. This would best be described as A. B.

C.2 AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. (3) evaluate alternatives. Future performance forecasts. Challenge the status quo. E. Generate alternatives. E. Evaluate the decision. Past performance. C. As Figure 3.2 illustrates. Identify the problem. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 62. Desired performance based on the business plan for the year. A manager may discover that a problem exists with current company performance by comparing it with A. D. (5) implement the decision. The first stage in the decision-making process is to recognize that a problem exists and must be solved. All of these. (2) generate alternative solutions. The initial step in the decision making process is to A. . D. (4) make the choice. Select an alternative. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. B. B. Here all are comparisons a manager might make. Typically a manager realizes some discrepancy between the current state (the way things are) and a desired state (the way things ought to be). The performance of other organizations.Topic: Characteristics of Managerial Decisions 61. Refer To: Figure 3. decision makers should (1) identify and diagnose the problem. and (6) evaluate the decision.

The manager's decision to have the menu revised suggests that he failed to A. the next stage in the decision making process involves A. Evaluating alternatives. The manager must dig in deeper and attempt to diagnose the situation of decreased customers rather than promptly changing the menu without considering the true cause of the drop in customers. AACSB: Analytic Blooms: Apply Learning Objective: 03-02 Summarize the steps in making "rational" decisions. Identify a solution.Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 63. Evaluating the decision. B. he must identify the real problem. AACSB: Analytic . Once a problem is identified and properly diagnosed. Evaluate the decision and its consequences. The second stage of decision making links problem diagnosis to the development of alternative courses of action aimed at solving the problem. E. The manager of the Capitol Restaurant noted that the restaurant had experienced a decreased number of evening customers. Evaluate the alternatives and consequences. Challenge the status quo. Evaluating information. D. Generating alternative solutions. C. Properly diagnose the cause of the problem. Evaluating consequences. E. B. The manager promptly ordered the chef to rewrite the evening menu. Customer feedback later indicated that the problem had not been the menu but poor service from the wait staff. D. Level of Difficulty: 3 Hard Topic: The Stages of Decision Making 64. C.

Level of Difficulty: 2 Medium Topic: The Stages of Decision Making . D. Ready-made solution. In-depth computations. Custom-made solution. This technique often combines ideas into new. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. E. User-generated solution. Designer-enhanced solution. Custom-made decisions most often require A. Creativity. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 65. B. B. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 66. Custom-made solutions must be designed for specific problems. A consultant. creative solutions. creative solutions. it is called a A. C. Custom-made solutions must be designed for specific problems. Dynamic solution. Top management approval. When a solution is specifically designed for a particular problem or set of problems. E.Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. C. D. This technique often combines ideas into new. Brainstorming. AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions.

E. Alternative courses of action that can be implemented based on how the future unfolds are called A. Single-use plans. AACSB: Analytic Blooms: Remember . B. D. Shadow plans. An irrational decision maker. Irena. Contingency plans.67. Here Irena is A. Facing a stable environment. Then they generate contingency plans. C. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 68. alternative courses of action that can be implemented depending on how the future unfolds. Sometimes decision makers can build in safeguards against an uncertain future by considering the potential consequences of several different scenarios. D. Sometimes decision makers can build in safeguards against an uncertain future by considering the potential consequences of several different scenarios. Focusing on efficient decisions. alternative courses of action that can be implemented depending on how the future unfolds. E. Utilizing contingency planning. knows that the economy greatly affects her business. Corporate objectives. She has developed a plan of action for each of four possible economic outcomes may occur in her geographic area over the next four to six years. C. Then they generate contingency plans. B. the manager of Kiddy Couture. Engaging in satisficing. Standing plans. AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions.

carefully assessing each alternative. D. you compare your choice against your goal. not against other options. comparing one to another. Satisficing is choosing the first option that is minimally acceptable or adequate. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. C. Making a decision by accepting the first option that meets your goal is referred to as A.Learning Objective: 03-02 Summarize the steps in making "rational" decisions. B. . When you satisfice. B. Accepting. Optimizing. carefully assessing each alternative. E. E. Satisficing. D. A. comparing one to another. C. and then choosing or creating the very best. Benchmarking Maximizing Minimizing Satisficing Optimizing The maximizing decision realizes the greatest positive consequences and the fewest negative consequences. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 69. Minimizing. and then choosing or creating the very best. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. __________ requires searching thoroughly for a complete range of alternatives. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 70. Maximizing requires searching thoroughly for a complete range of alternatives. Maximizing.

The maximizing decision realizes the greatest positive consequences and the fewest negative consequences. When you satisfice. Here Victor is using A. Management by exception. B. Maximizing. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. although not necessarily the best or perfect. E. Achieve the best possible outcome. Satisficing. AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. Optimizing. D. not against other options. Utilize groupthink for individual decisions. Realize the largest possible production benefit. an administrative assistant in accounting. Involve as many people affected by the decision as possible in its design. today he needs pens. To maximize a decision is to A. E.Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 71. Minimizing. Satisficing is choosing an option that is acceptable (the first items Victor saw that were priced acceptably). sticky notes. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 72. orders office supplies biweekly. D. C. and staples. C. you compare your choice against your goal. Victor. Maximizing is achieving the best possible outcome. B. Generate many alternatives for evaluation. Level of Difficulty: 1 Easy . He looks at the office supply catalog and quickly picks a selection for each that is priced acceptably.

Optimizing. security. C. AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. That alternative that produces the least conflict. He wanted one that was high in quality and security. yet it had a good combination of attributes. B. Maximizing. Nigel's choice illustrates A. D. a manager at Montlucon Eyewear. Minimizing.Topic: The Stages of Decision Making 73. B. and low price. Among those alternatives with most predictable results. E. Nigel balanced goals of high quality. Optimizing means that you achieve the best possible balance among several goals. needed to purchase a new secure display case for his most expensive sunglasses. The first minimally acceptable alternative. Optimizing is achieving the best possible balance among several goals. C. The least expensive alternative. Managers who optimize their decisions will attempt to choose A. Programming. D. The case he chose was neither the highest quality available. Level of Difficulty: 3 Hard Topic: The Stages of Decision Making . nor the lowest in price available. Satisficing. Nigel. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making 74. E. An alternative that achieves the best possible balance among several goals. AACSB: Analytic Blooms: Apply Learning Objective: 03-02 Summarize the steps in making "rational" decisions. yet low in price.

Be sure the CEO agrees with the implementation decision. including listing the resources and activities required. B. E. Evaluating the decision. The final stage in the decision-making process is A. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. E. Implementing a decision must be planned carefully. It involves collecting information on how well the decision is working. The final stage in the decision-making process is evaluating the decision. C. Criteria analysis. D. C. Implementing the solution. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 76. Adequate planning for implementing a decision requires several steps. Allow employees to take on responsibility once the implementation has begun. Anticipating the results. Diagnosing remaining issues. Determine how things will turn out before the decision is made. List the resources and activities required.75. Encourage vigilance. Level of Difficulty: 1 Easy Topic: The Stages of Decision Making . AACSB: Analytic Blooms: Remember Learning Objective: 03-02 Summarize the steps in making "rational" decisions. B. D. Adequate planning most often requires which of the following steps? A.

The customer realizes increased value as a result of the decision. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 78. Level of Difficulty: 1 Easy Topic: The Best Decision . The employees have been monitored to see their reactions to the decision. The decision was a bad one. D. The manager has carefully and conscientiously completed all stages in the decision-making process. effort. AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Negative feedback means that either (1) implementation will require more time. E. or thought or (2) the decision was a bad one. The scenarios were labeled incorrectly. C. Negative feedback received during the final evaluation of the decision indicates that either the implementation will require more time or that A. B. The problem cannot be solved. The manager has been monitored during the decision making process. C. including making provisions for implementation and evaluation. Vigilance occurs when the decision makers carefully and conscientiously execute all six stages of decision making. D. resources.77. E. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. The employees monitor the implementation of the decision carefully. The implementation has used too many resources. The manager is not capable of rational decisions. Vigilance in decision making means A. B.

E. evaluate. and applying information for decision making. What happens when a decision maker must balance the preferences of many interested parties. The conflict that results from too many people involved with making a decision. Psychological bias in decision making is best described as A. Vigilance. Illusion of control. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. diluting effectiveness. Level of Difficulty: 2 Medium . Level of Difficulty: 1 Easy Topic: Barriers to Effective Decision Making 80. Rationality. People have biases that interfere with objective rationality. Decision makers are far from objective in the way they gather. Time pressures. B.79. evaluating. D. The fact that people are motivated by a need for power that clouds their decision making capabilities. discounting the future. D. B. E. AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Illusion of control. The inability to be objective when gathering. Social realities. C. C. and apply information in making their choices. Psychological biases. and framing effects are all examples of A. The effect that people's psychological capabilities have upon the decisions they must make under pressure. and framing effects represent only a few of the many documented subjective psychological biases in decision making. discounting the future.

D. Belief that you have ultimate control and no one can take it from you. The illusion of control is a belief that one can influence events even when one has no control over what will happen. Social realities. it is an example of which of the following psychological biases? A. Illusion of control. such overconfidence can lead to failure because decision makers ignore risks and fail to objectively evaluate the odds of success. Belief that some unknown person actually has the control and is waiting for you to make a poor decision. Discounting the future. B. The psychological bias known as "illusion of control" refers to a A. Framing effects. E. The illusion of control is a belief that one can influence events even when one has no control over what will happen. E.Topic: Barriers to Effective Decision Making 81. C. . AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. In business. AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. C. B. When business managers ignore risks and fail to objectively evaluate the odds of success for their decisions. Level of Difficulty: 1 Easy Topic: Barriers to Effective Decision Making 82. Time pressure. Belief that you can influence events even when you have no control over what will happen. Lack of confidence in your ability to control your employees. D. Belief that you have no control and so you don't put any effort into the decision.

One type of subjective bias is framing effects. AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Groupthink. B. C. E. Goal displacement. Which of the following is an example of subjective bias that many corporate executives exhibit? A. Discounting effects. Satisficing. Framing effects. that is. Framing effects. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Subjective biases that managers hold often interfere with objective rationality. C. Biasing effects. B. Phrasing effects. Level of Difficulty: 1 Easy . a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.Level of Difficulty: 1 Easy Topic: Barriers to Effective Decision Making 83. The way in which the alternatives to a decision are stated or phrased may have an impact on which alternative is chosen. E. D. Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making 84. This is referred to as A. D. Minimizing. Illusional effects. Varying alternatives can be presented in a more favorable or less favorable way. affecting the decision. Framing effects refer to how problems or decision alternatives are phrased or presented and how these subjective influences can override objective facts.

Which of the following is the best example of a manager discounting the future? A. "I must consult others in order to make good decisions. "I must focus more on quarterly profits now than long-term profitability. "It is important to plan for the long-term health of the company. Often decision makers discount the future. they weigh short-term costs and benefits more heavily than longer-term costs and benefits. C. "Even if it is becoming popular. Valuing short-term benefits and costs more heavily than longerterm benefits and costs. E. That is. Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making ." E." Often decision makers discount the future." C." B. D. "We must make a profit in order to survive. Discounting the future refers to A. in their evaluation of alternatives. Underestimating the short-term effects of the decision. Making quick decisions with whatever information is at hand. they weigh short-term costs and benefits more heavily than longer-term costs and benefits. That is. Level of Difficulty: 1 Easy Topic: Barriers to Effective Decision Making 86. Overestimating the long-term effects of the decision. B." D.Topic: Barriers to Effective Decision Making 85. AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. in their evaluation of alternatives. e-commerce is expensive and difficult. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Valuing longer-term benefits and costs more heavily than shorterterm benefits and costs.

B. Been improperly framed. Been socially irresponsible. E. AACSB: Analytic Blooms: Apply Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Discounted the future. Discounting the future is a bias weighting short-term costs and benefits more heavily than longer-term costs and benefits. Involved too many conflicting groups. reduced exposure. the band's decision seems to have A. The band Pearl Jam decided not to book any concerts through Ticketmaster as an objection to the virtual monopoly Ticketmaster had on the industry.87. Initial strong public support was followed by fewer concerts. C. In retrospect. Used psychological conflict. D. lower revenues. Here the band made short-term headlines and had strong public support. Level of Difficulty: 3 Hard Topic: Barriers to Effective Decision Making . but this was followed by long-term difficulties because of realities in the market. and more hassles for the band.

Illusion of control. Framing effects.88. students who don't study. B. Involving people in the decision who are experts and can be trusted. Many people decide to avoid the short-term costs of studying. and dieters who sneak dessert are all examples of which psychological bias? A. Tactics that are used to make decisions quickly while maintaining the high quality of such decisions include A. and they pay for their actions in the longer term. E. B. AACSB: Analytic Blooms: Understand . Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making 89. E. Managers under time pressure can make decisions that are timely and of high quality by using real-time information. relying heavily on trusted experts. involving people more effectively and efficiently in the decision-making process. People who avoid regular dental checkups. Discounting the future. Discounting the future is a bias weighting short-term costs and benefits more heavily than longer-term costs and benefits. Involving people more effectively and efficiently. Focusing on real-time information. Taking a realistic view of the conflict. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Time pressures. D. or dental care. D. eating healthfully. C. C. and taking a realistic view of conflict. Social realities. Doing all of these.

Real-time information is information that A. OfficeMax is utilizing __________ to retain a competitive edge. Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making 90. E. Each morning OfficeMax's CEO has a computer-based conference with all store managers. . and futuristic forecasts. Instead of relying on old data. A. B. Is obtained with little or no delay. Is based on past performance. D. AACSB: Analytic Blooms: Remember Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. The CEO of Office Max is relying on frontline managers for real-time information to stay competitive. AACSB: Analytic Blooms: Apply Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. The previous day's challenges are discussed so that problems can be quickly and effectively resolved or even avoided. D. Level of Difficulty: 1 Easy Topic: Barriers to Effective Decision Making 91. Represents a realistic forecast. B. E. Is based on adjusted predictions. managers should focus on real-time information: current information obtained with little or no time delay. C. C. social realities real-time information psychological biases framing effects quality initiatives Managers under time pressure can make decisions that are timely and of high quality in part by using real-time information. Is discounted for the future. long-range planning.

Therefore. bargaining. Time pressures. C. His company had few performance standards. B. and worse still. Important managerial decisions are marked by conflict among interested parties. Level of Difficulty: 3 Hard Topic: Barriers to Effective Decision Making . and Omar's boss often overturned decisions! These interpersonal factors that decrease the effectiveness of the organization's decisions are best described as A. The illusion of control. Social realities of a firm dictate that even the manager acting alone is accountable to the boss and to others and must consider the preferences and reactions of many people. they went over his head. Social realities. AACSB: Analytic Blooms: Apply Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. E. if his employees did not like their reviews. A lack of control. D. Gut feelings. and politicking. Omar dreaded annual performance reviews. many decisions are the result of intensive social interactions.Level of Difficulty: 3 Hard Topic: Barriers to Effective Decision Making 92.

AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. All are disadvantages to group decision making except intellectual stimulation. AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Advantages in using a group for decision making include A.93. potentially. Goal displacement. two does not constitute a group. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 94. E. Yes. always. However." But does this statement hold true in an organizational setting? A. Level of Difficulty: 2 Medium Topic: Decision Making in Groups . D. and it can get people thinking and unleash their creativity to a far greater extent than would be possible with individual decision making. C. Yes. E. The basic philosophy behind group decision making is that "two heads are better than one. Groupthink. B. Intellectual stimulation. groups usually make higher-quality decisions than most individuals acting alone. No evidence exists to determine this. Satisficing. C. If enough time is available. No. B. D. Domination of the discussion by one member. never. No. Group discussion provides an opportunity for this. groups often are inferior to the best individual in decision making.

In this scenario. Level of Difficulty: 3 Hard Topic: Decision Making in Groups . People who participate in a group discussion are more likely to understand why the decision was made. Use groupthink to gain buy-in. They will have heard the relevant arguments both for the chosen alternative and against the rejected alternatives. Staff members were then aware of the various options and recognized the benefits and costs of each. AACSB: Analytic Blooms: Apply Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Please everyone completely. E. Managers interviewed frontline staff to get their opinions and ideas. Understand the decisions and be more committed to them. B. Andersen Tree Farm in Kansas is looking for ways to be more environmentally friendly. C. Displace obsolete goals in favor of new ones. Dominate the discussion and reinforce the organizational structure. and invited everyone to participate in deciding which ideas to advance. involving the staff most likely helped them to A. D.95.

Group discussion provides an opportunity for intellectual stimulation. A larger pool of information. People who participate in a group discussion are more likely to understand why the decision was made. E.96. People understand the decision details and are highly critical. The result is a satisficing rather than an optimizing or maximizing decision. thus improving the chances that the decision will be implemented successfully. Too many approaches and perspectives on the problem. People who participate in a group discussion are more likely to understand why the decision was made. C. This may include criticizing members who want to continue exploring new and better alternatives. B. More information is available when several people are making the decision. D. AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. which causes confusion. AACSB: Analytic . A single group member can dominates the discussion. D. E. Satisficing. Which of the following is a potential disadvantage of group decisions? A. which takes up much more time and delays the decision. C. B. Most people don't like meetings and will do what they can to end them. Which of the following statements about group decision making improves the chances that the decision will be implemented successfully? A. Different approaches to solving the problem are available. Satisficing is more likely with groups. Intellectual stimulation. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 97.

E. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Groupthink. Individual dominance.Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Individual dominance. with the result being the same as it would be if Adam made the decision alone. they were good. Vigilance. D. Sometimes one group member dominates the discussion. Individual dominance refers to a strong group member who makes his or her preferences clear as Adam did. such as when a strong leader makes his or her preferences clear. the result is the same as it would be if the dominant individual made the decision alone. B. Esprit de corps. B. This group experienced A. C. D. When this occurs. C. but nobody else got a word in or had the opportunity to share. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 98. AACSB: Analytic Blooms: Apply . Goal displacement. Intellectual stimulation. Satisficing. Level of Difficulty: 1 Easy Topic: Decision Making in Groups 99. Goal displacement. E. Allowing one person to control a discussion or decision would best be described as A. Satisficing. Nicole was disappointed with her team's discussion regarding next year's marketing campaign. Adam rammed all his ideas through.

Groupthink. C. They want to think as one. It occurs when people choose not to disagree or raise objections because they don't want to break up a positive team spirit. and strive to remain cordial. Domination. tolerate no dissent. Intuition. D. E. Level of Difficulty: 1 Easy Topic: Decision Making in Groups . Level of Difficulty: 3 Hard Topic: Decision Making in Groups 100. Goal displacement. Satisficing.Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus is known as A. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. B. Pressure to avoid disagreement can lead to a phenomenon called groupthink.

Avoiding disagreement while striving for consensus. Pressure to avoid disagreement can lead to a phenomenon called groupthink. Exercised groupthink. It occurs when people choose not to disagree or raise objections because they don't want to break up a positive team spirit. Optimized. D. Groupthink is A. Pressure to avoid disagreement can lead to a phenomenon called groupthink. Exercised vigilance. Stimulated the intellects of its members. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. When a group accepts an alternative that seems to please the members of the group. They want to think as one. and strive to remain cordial. and strive to remain cordial. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Level of Difficulty: 1 Easy Topic: Decision Making in Groups . Typically superior to individual decision making. B. tolerate no dissent. C. C. Accomplished by obtaining all members' input. tolerate no dissent. Participated in goal displacement. They want to think as one.101. The result of high levels of creativity. An extreme form of satisficing. but the group has not taken the time or effort to explore many options. the group has A. E. D. Level of Difficulty: 1 Easy Topic: Decision Making in Groups 102. E. It occurs when people choose not to disagree or raise objections because they don't want to break up a positive team spirit. B.

Winning an argument becomes the new goal. B. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. It occurs when people choose not to disagree or raise objections because they don't want to break up a positive team spirit. Pressure to avoid disagreement can lead to a phenomenon called groupthink. The goal of group members should be to come up with the best possible solution to the problem. E. C. Group alternatives. Unclear about the decision at hand. B. But when goal displacement occurs. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 104. They want to think as one. new goals emerge to replace the original ones. Groupthink. Lacking in confidence about their abilities. tolerate no dissent. Creative. Groups that operate under a condition known as groupthink are most likely to be A. AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. A condition that occurs when a decision-making group loses sight of its original goal and a new. E. Concerned with maintaining a positive team spirit. D. possibly less important. D.103. goal emerges is A. and strive to remain cordial. Conflict. Goal displacement. C. Domination. Overcritical. Level of Difficulty: 1 Easy Topic: Decision Making in Groups .

But when goal displacement occurs. D. Pay close attention to the group process. AACSB: Analytic Blooms: Remember Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. E. D. When a group member is more interested in winning an argument than solving a problem. Winning an argument becomes the new goal. domination goal displacement groupthink satisficing synergy The goal of group members should be to come up with the best possible solution to the problem. __________ has occurred. new goals emerge to replace the original ones. Level of Difficulty: 2 Medium Topic: Decision Making in Groups . C. Level of Difficulty: 1 Easy Topic: Decision Making in Groups 106. B. B. they manage it carefully. Help the group satisfice. C. A. Encourage groupthink. E. AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. Discourage conflict. Leaders of decision-making groups should A. Dominate the discussion.105. Effective managers pay close attention to the group process.

AACSB: Analytic Blooms: Remember Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. Cognitive conflicts. D. Compromises. bitterness. AACSB: Analytic Blooms: Remember Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. Cognitive conflicts. Dialectic conflicts. or differences in perspectives or judgments about issues. Emotional disagreements directed toward other people are known as A.107. E. C. E. D. C. Satisfactory conflicts. Affective conflicts. The most constructive type of conflict is cognitive conflict. goal displacement. B. Level of Difficulty: 1 Easy Topic: Managing Group Decision Making . and lower-quality decisions. Dialectic conflicts. Level of Difficulty: 1 Easy Topic: Managing Group Decision Making 108. Affective conflicts. Satisfactory conflicts. Issue-based differences in perspectives or judgments are A. Affective conflict is emotional and directed at other people. B. Compromises. Affective conflict is likely to be destructive to the group because it can lead to anger.

AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. A. Affective conflict is likely to be destructive to the group because it can lead to anger. goal displacement. E. Two of your employees consistently disagree with each other. Affective conflict. Cognitive conflict can air legitimate differences of opinion and develop better ideas and problem solutions. AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 110. bitterness. and this has begun to impact the whole work group. Affective conflict is emotional and directed at other people. Cognitive conflict. and lower-quality decisions. Dialectic conflict. Of the possibilities here. the most constructive type of conflict is __________ conflict. E. C. D. B. or differences in perspectives or judgments about issues. C. but lately the arguments have become personal.109. Alliant conflict. Comprehensive conflict. the absence of emotional cognitive affective dialectic The most constructive type of conflict is cognitive conflict. This situation is best described as A. D. leading to anger and bitterness. B. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making .

E. B. Devil's advocate. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 112. AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. The dialectic goes a step beyond devil's advocacy by requiring a structured debate between two conflicting courses of action. E. D. C. A devil's advocate has the job of criticizing ideas such as was assigned to Trisha. B. Level of Difficulty: 2 Medium . Conflict manager. Affective leader. C. The leader performs the role of peacekeeper when attacks are directed at individuals. Someone intentionally presents negative arguments to force further investigation of the alternative under consideration. Conflict generated within the group is minimized by enforcing group unity. D. Trisha was playing the role of A. Which of the following best describes the requirements of the dialectic method? A. so in an effort to combat groupthink and an overall lack of creativity. the group leader Tim assigned Trisha the task of pointing out problems throughout the meeting. Conflict generated within the group is maximized by including not only factual counterarguments but also personal attacks. A structured debate between two conflicting courses of action is held. There seemed to be complacence in the group. Dialectic leader. In this example.111. Antagonist. AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group.

Groupthink.Topic: Managing Group Decision Making 113. E. People are much more likely to be creative if they work alone. Cognitive conflict. C. two previously unrelated things are joined (synthesis). Cognitive conflict refers to issue-based differences in perspectives or judgments. E. In trying to make a conflict between two employees less personal and emotional. AACSB: Analytic Blooms: Understand . To be creative you need to be a top student. B. Vigilance. This is an example of encouraging the use of A. Affective conflict. AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. D. A devil's advocate. Which of the following statements about encouraging creativity is true? A. their manager asks each of them to approach the problem from a different viewpoint than their original one. Your employees will be more creative if you set a tight deadline for them. The fundamental unit of value in the creative revolution is artistic ability. You are being creative if you join two previously unrelated things. B. In this case the manager is trying to help the employees see the other side of the conflict by requiring them to approach the problem from the other's view. C. D. Creativity can occur when new things are brought into being (creation). Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 114. or something is improved or given a new application (modification).

Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 115. C. with one exception: no criticism of other people or their ideas is allowed. In order to be creative. Be done quickly. Forecasting. E. Level of Difficulty: 1 Easy Topic: Managing Group Decision Making 116. the group is encouraged to say anything that comes to mind. Innovation. C. B. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making . Involve industry experts.Learning Objective: 03-06 Explain how to encourage creative decisions. Be done face-to-face. B. D. a brainstorming session must A. D. AACSB: Analytic Blooms: Understand Learning Objective: 03-06 Explain how to encourage creative decisions. Brainstorming. When brainstorming. AACSB: Analytic Blooms: Remember Learning Objective: 03-06 Explain how to encourage creative decisions. Cooperation. E. Brainstorming is a process in which group members generate as many ideas about a problem as they can and criticism is withheld until all ideas have been proposed. A process in which group members generate as many ideas about a problem as they can and criticism is withheld until all ideas have been proposed is called A. Be free of criticism. Groupthink. Be held in private.

The _______ model of decision making occurs when decision makers make small decisions and move in piecemeal fashion toward a bigger solution. AACSB: Analytic Blooms: Remember Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. D. B. Level of Difficulty: 1 Easy Topic: Organizational Decision Making .117. C. Bounded rationality Incremental decision making Cognitive rationality Coalitional decision making Affective rationality Bounded rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed. C. AACSB: Analytic Blooms: Remember Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. A. take little steps. and move in piecemeal fashion toward a bigger solution. E. B. E. A. ____________ is the concept that decision makers cannot be truly rational because decisions are complex and complete information is unavailable. move cautiously. stepped incremental coalitional garbage can staged The incremental model of decision making occurs when decision makers make small decisions. D. Level of Difficulty: 1 Easy Topic: Organizational Decision Making 118.

B. each representing a different preference. E. The ___________ model of decision making arises when two or more groups form. Level of Difficulty: 2 Medium Topic: Organizational Decision Making . C. each representing a different preference. bounded rationality incremental garbage can coalitional affective rationality The coalitional model of decision making arises when people disagree on goals or compete with one another for resources. D. and each tries to use power and negotiation to sway the decision. AACSB: Analytic Blooms: Understand Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. A.119. and each tries to use power and negotiations to sway the decision. The process becomes political as groups of individuals band together in coalitions.

120. Sasha should collect information both sides and decide herself which is the best approach. Sasha should find a mediator to solve the problem. Sasha should use a collaborative method in which she establishes a goal around which the entire group can rally. and to make sure that constructive cognitive conflict does not degenerate into affective conflict. C. B. Sasha should encourage both teams to engage in affective conflict to solve the problem. Sasha should ask parties from both sides to solve the problem in whatever way they can. Sasha would be best served by following which of these courses of action? A. E. make it a collaborative rather than a competitive exercise. is to create common goals for members of the team. One of the best ways to reduce organizational politics. Sasha leads a research team of engineers and found herself in the midst of a battle between coalitions. that is. each with its own solution to a challenge the team faced. Level of Difficulty: 3 Hard Topic: Organizational Decision Making . AACSB: Analytic Blooms: Apply Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. D.

Early warning signals of crisis are unavailable. B. it is imperative that it be on management's agenda. In crises. and positive change can emerge. so bounded rationality must be used. Which of the following statements about decision making in a crisis is true? A. An effective plan for crisis management is essential to include on the management agenda. Crisis management can be best handled as the crisis occurs. Although many companies don't concern themselves with crisis management. E. D. managers should make decisions only after taking all of the details into account. AACSB: Analytic Blooms: Understand Learning Objective: 03-08 Describe how to make decisions in a crisis.121. Crises can never provide benefits to a company. new strategies and competitive advantages may appear. C. Level of Difficulty: 2 Medium Topic: Organizational Decision Making . old and new problems can be resolved. With it.

(2) technical and structural actions. Competitive actions to bounce back immediately. She always comes in early on Mondays to sift through the paperwork on her desk and decide what needs to be done for the week and in which order. Level of Difficulty: 2 Medium Topic: Organizational Decision Making Scenario A The local Ace Hardware Store manager has several decisions she has to make as the week begins. (5) psychological and cultural actions.122. Determining which sales representatives to see this week to place orders. Providing input to the owner on a possible upgrade to the checkout technology currently in use. to be released before details are learned. 4. An effective plan for crisis management should include the following elements: (1) strategic actions. Interviewing applicants for two open part-time positions and hiring them. A template for a press statement. B. AACSB: Analytic Blooms: Understand Learning Objective: 03-08 Describe how to make decisions in a crisis. 3. Providing a report to the owner detailing her opinion of whether or not she should purchase several more Ace locations that are for sale in the area. Psychological and cultural actions for the human and emotional toll. (4) communication actions. . A method to quickly distance the company from the crisis. D. E. Which of the following is an element of an effective plan for crisis management? A. C. 2. (3) evaluation and diagnostic actions. A communication plan that indicates that the company is in complete control. The decisions facing her this week are: 1.

Programmed. such as those in the remaining choices. Necessary or unnecessary. C. E. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions . D. B. E. novel. Necessary. novel. Simple. Simple or complex.123. complex decisions having no proven answers. D. The decisions in Scenario A can best be classified as either A. B. such as those in two of the choices. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 124. complex decisions having no proven answers. Programmed decisions have been encountered and made before. Programmed or nonprogrammed. Certain or uncertain. Nonprogrammed. such as those in decisions 2 and 4. C. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Complex. Nonprogrammed decisions are new. Risky or nonrisky. Decision 4 is an example of which type of decision? A. Nonprogrammed decisions are new.

there is a clear and precise correct answer Programmed decisions have been encountered and made before. they are novel and complex B. programmed. they are novel and complex E. simple. such as those in decisions 1 and 3. nonprogrammed. they are can be solved using rules. Experiencing internal conflict. procedures. risky. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager. Maximizing. Satisficing is choosing the first option that is minimally acceptable or adequate. Decisions 1 and 3 are both __________ decisions because ______________. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 126. and structures D. the manager takes the first candidate she sees that meets the minimum requirements. in decision 3. A. Satisficing. necessary. C.125. Optimizing. If. D. without going through every candidate's file to see if anyone else is better. AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. Experiencing external conflict. E. B. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making . they are novel and complex C. she is A.

An example of vigilance. The owner's belief that he should make every decision himself by diagnosing the problem as he sees it and then immediately implementing a solution is A. Level of Difficulty: 3 Hard Topic: The Best Decision . Managers can tell whether they made the best decision possible if they follow the proper procedures that will yield the best possible decision under the circumstances by being vigilant. AACSB: Analytic Blooms: Apply Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. It has become a very emotional and personal issue for all of you. 127. he often jumps to conclusions. E. "the one who signs the checks. C. most people in the firm agree that the decision making of the owner is going to destroy the young firm before it really gets started. and doesn't even take time to diagnose the problem at hand because he does not like to ask you and your colleagues for your opinions. There are five highly opinionated but very committed employees in your group. Correct.Scenario B You work for a new start-up marketing consulting firm. as he often says. The owner firmly believes that he should make every decision since he is. An example of satisficing. B. D." While this is true. An example of maximizing. At this point. A mistake that often leads to suboptimal decisions.

128. Suppose the owner tells you that the reason he makes every decision
himself is because he believes that he will be able to influence
everything that happens in the business. This unrealistic view is
called

A.
B.
C.
D.
E.

Framing effects.
Discounting the future.
Time pressures.
The illusion of control.
Disillusionment.

The illusion of control is a belief that one can influence events even
when one has no control over what will happen.
AACSB: Analytic
Blooms: Apply
Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions.
Level of Difficulty: 3 Hard
Topic: Barriers to Effective Decision Making

129. If, in the beginning of your work with the company, your differences
with the owner were purely based on differences in judgment, but
have now deteriorated to the point that your differences are more
emotional and directed personally toward one another, it can be said
that you initially experienced ___________ but now are experiencing
___________.

A.
B.
C.
D.
E.

satisficing; maximizing
cognitive conflict; affective conflict
affective conflict; cognitive conflict
maximizing, satisficing
uncertainty; certainty

Cognitive conflict arises from issue-based differences in perspectives
or judgments, whereas affective conflict is emotional and directed
toward other people.
AACSB: Analytic
Blooms: Apply
Learning Objective: 03-05 Identify procedures to use in leading a decision-making group.
Level of Difficulty: 3 Hard

Topic: Managing Group Decision Making

Scenario C
Jeremy is the lead on a new project at work, and it is essential that he
make a good impression on top management. He recently had his
first staff meeting to solve a fairly large problem with the project, and
it didn't go well. The whole staff of 10 was there, which he thought
would lead to buy-in from the group. Instead the group didn't get
much done in that meeting.
130. Jeremy opened the meeting by suggesting to the group that he had
put a lot of thought into the problem and that perhaps they should
use his ideas to solve the problem. He spent the meeting explaining
why this should occur. Jeremy was practicing

A.
B.
C.
D.
E.

Satisficing.
Groupthink.
Individual dominance.
Goal displacement.
Intellectual stimulation.

Sometimes one member like Jeremy dominates the discussion. When
this occurs the result is the same as it would be if the dominant
individual made the decision alone.
AACSB: Analytic
Blooms: Apply
Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions.
Level of Difficulty: 3 Hard
Topic: Decision Making in Groups

131. Since the first meeting didn't go well, Jeremy read several
management books on working with groups and thought perhaps a
longer meeting would allow time to explore several points of view. He
chose a Friday afternoon so everyone could go home afterward and
not have to rush off to other work appointments. To his surprise, the
first idea he suggested was accepted by the group, and the meeting
was over in no time! The group was most likely engaging in
__________ so they could end the meeting and go home early.

A.
B.
C.
D.
E.

groupthink
satisficing
goal displacement
domination
intellectual stimulation

Satisficing is more likely with groups. Most people don't like meetings
and will do what they can to end them. The result is a satisficing
rather than an optimizing or maximizing decision.
AACSB: Analytic
Blooms: Apply
Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions.
Level of Difficulty: 3 Hard
Topic: Barriers to Effective Decision Making

. trying to be a good leader. AACSB: Analytic Blooms: Apply Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions. D. Soon the group was in a heated discussion with each side seeming to stop at nothing to "win" the argument. Goal displacement is a condition that occurs when a decision-making group loses sight of its original goal and a new. Intellectual stimulation. The consultant's first meeting is set up to describe to the managers of Effectively Organized Inc. Domination. Satisficing. the models of organizational decision processes. Shortly after the meeting began. has hired a consultant to help with organizational decision making. Level of Difficulty: 3 Hard Topic: Barriers to Effective Decision Making Scenario D Effectively Organized Inc. Goal displacement. Nonetheless. Jeremy began to discuss the issues around this new question. Groupthink. He put the agenda out early and felt he was ready to lead the meeting. Jeremy decided to try another meeting because the project deadline was drawing closer and he was beginning to feel pressure to get something done with his group. In this meeting the group was engaged in A. Each of the managers seems to prefer one of the models over the others.132. C. B. one of his colleagues asked a question that didn't seem to relate to the issue at hand. less important goal emerges. E.

D. D.133. The president seems to prefer which model? A. The incremental model is a model of organizational decision making in which major solutions arise through a series of smaller decisions. AACSB: Analytic Blooms: Apply . Bounded rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed. Bounded rationality. He seems to expect which decision process? A. The garbage can model. The crisis model. responds most positively to the model that is the most cautious. AACSB: Analytic Blooms: Apply Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. E. E. C. The garbage can model. The coalitional model. B. The crisis model. Bounded rationality. C. B. He tells the group that he sees many situations with managers who don't have enough time to process all the relevant information and who regularly face very complex problems. She explains that the budget process is the easiest decision for her because she breaks it into smaller pieces and builds the decisions as she goes. The incremental model. The vice president of human resources believes decision makers cannot be truly rational in their decisions. Level of Difficulty: 3 Hard Topic: Organizational Decision Making 134. The coalitional model. The president of Effectively Organized Inc. The incremental model.

Level of Difficulty: 3 Hard . C. many managers don't even agree about what their goals are and certainly cannot agree on what action to take. The crisis model. The crisis model. Bounded rationality. The garbage can model. The vice president of production tells the group that in his area of the company. The coalitional model. E. Her managers are using A. The garbage can model.Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. AACSB: Analytic Blooms: Apply Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. The incremental model. The vice president of marketing declares that her people disagree on goals and have now formed groups to advocate for their own interests. D. E. Level of Difficulty: 3 Hard Topic: Organizational Decision Making 136. AACSB: Analytic Blooms: Apply Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations. C. His managers are using which model of decision making? A. The coalitional model. The garbage can model of organizational decision making depicts a chaotic process and seemingly random decisions. The coalitional model of organizational decision making is one in which groups with differing preferences use power and negotiation to influence decisions. The incremental model. Level of Difficulty: 3 Hard Topic: Organizational Decision Making 135. B. D. Bounded rationality. B.

AACSB: Analytic Blooms: Understand Learning Objective: 03-02 Summarize the steps in making "rational" decisions. Give an example of each. Define psychological biases and explain how they relates to managerial decision making. Level of Difficulty: 2 Medium Topic: The Stages of Decision Making 139. Level of Difficulty: 2 Medium Topic: Characteristics of Managerial Decisions 138. AACSB: Analytic Blooms: Understand Learning Objective: 03-03 Recognize the pitfalls you should avoid when making decisions. Level of Difficulty: 2 Medium Topic: Barriers to Effective Decision Making . Answers will vary. Differentiate between programmed and nonprogrammed decisions. Answers will vary. List and explain the six steps of the decision making process.Topic: Organizational Decision Making Essay Questions 137. Answers will vary. AACSB: Analytic Blooms: Understand Learning Objective: 03-01 Describe the kinds of decisions you will face as a manager.

AACSB: Analytic Blooms: Apply Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. Level of Difficulty: 2 Medium Topic: Decision Making in Groups 141. Explain the four disadvantages of using a group to make decisions. Level of Difficulty: 2 Medium Topic: Managing Group Decision Making 142.140. Explain the three requirements of effectively managing group decision making. Briefly describe the brainstorming process using an example. Answers will vary. AACSB: Analytic Blooms: Understand Learning Objective: 03-05 Identify procedures to use in leading a decision-making group. Answers will vary. Level of Difficulty: 3 Hard Topic: Managing Group Decision Making . Answers will vary. AACSB: Analytic Blooms: Understand Learning Objective: 03-04 Evaluate the pros and cons of using a group to make decisions.

Answers will vary. AACSB: Analytic Blooms: Understand Learning Objective: 03-08 Describe how to make decisions in a crisis. Compare and contrast three models of organizational decision processes thought to occur when bounded rationality conditions hold.143. Answers will vary. Describe the elements of an effective crisis management plan. Level of Difficulty: 2 Medium Topic: Organizational Decision Making . Level of Difficulty: 3 Hard Topic: Organizational Decision Making 144. AACSB: Analytic Blooms: Apply Learning Objective: 03-07 Discuss the processes by which decisions are made in organizations.