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03 Chapter - Managerial Decision Making Chapter 03 Managerial Decision Making True / False Questions 1. (p. 88) Managers often ignore problems. TRUE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 2. (p. 89) Managers typically face ill-structured problems, leaving the decision maker uncertain about how to proceed. TRUE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 3. (p. 89) Bill Simmons is the manager of a small restaurant and must decide how much money he owes his suppliers. This is an example of a non-programmed decision. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Easy Learning Objective: 1 3-1 Chapter 03 - Managerial Decision Making 4. (p. 89, Table 3.1) Programmed decisions are useful when there is no predetermined structure on which to rely. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 1 5. (p. 90) Risk is not a fact of life in management decisions. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 6. (p. 90) According to research, managers prefer uncertainty to certainty because it makes the job more challenging and interesting. FALSE AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 1 7. (p. 91) Conflict exists when the manager must consider opposing pressures from different sources. TRUE AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy 3-2 Chapter 03 - Managerial Decision Making Learning Objective: 1 3-3 Chapter 03 - Managerial Decision Making 8. (p. 92) In the fourth state of decision making, problem diagnosis is linked to the development of alternatives. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 2 9. (p. 92-93) Choosing a ready-made alternative is takes less time than designing a custom-made solution. TRUE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 10. (p. 93) Contingency plans are best developed following the final stage of decision making-evaluating the decision. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 11. (p. 95) Satisficing is achieving the best possible outcome. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy 3-4 Chapter 03 - Managerial Decision Making Learning Objective: 2 12. (p. 96) Those who implement a decision must understand the choice and must be committed to it. TRUE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 13. (p. 98) Following all six stages of the decision making process guarantees successful decisions. FALSE AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Hard Learning Objective: 2 14. (p. 100) The illusion of control is a belief that one can influence events even when one has no control over what will happen. TRUE AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 3 15. (p. 101) Discounting the future is said to partly explain governmental budget deficits and environmental destruction. TRUE AACSB: Group/individual dynamics 3-5 Chapter 03 - Managerial Decision Making Blooms taxonomy: Comprehension Difficulty: Hard Learning Objective: 3 16. (p. 102) In decision making, it is always better to use a group than an individual. FALSE AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 3 17. (p. 102) Some experts advise that in today's complex business environment, significant problems should always be tackled by groups. TRUE AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 4 18. (p. 102) One advantage of using a group for decision making is that one person dominates. FALSE AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 4 19. (p. 105) The job of a "devil's advocate" is to create destructive conflict. FALSE AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Hard 3-6 Chapter 03 - Managerial Decision Making Learning Objective: 5 20. (p. 105) Affective conflict is differences in perspectives or judgments about issues, whereas cognitive conflict is emotional and directed at other people. FALSE AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 5 21. (p. 106) In brainstorming, group members generate as many ideas about a problem as they can. TRUE AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 6 22. (p. 108) Incremental decision making occurs when managers make small decisions and move cautiously toward a bigger solution. TRUE AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 7 23. (p. 108) The garbage can model of decision making arises when people disagree on goals or compete with one another for resources. FALSE AACSB: Group/individual dynamics 3-7 Chapter 03 - Managerial Decision Making Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 7 24. (p. 1113) Decision making under crisis conditions will inevitably result in poor decisions and negative publicity. FALSE AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 8 3-8 Chapter 03 - Managerial Decision Making Multiple Choice Questions 25. (p. 88) Characteristics of managerial decisions include all of the following EXCEPT: A. Risk B. Uncertainty C. Convention D. Lack of structure E. All of the above are correct AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 26. (p. 88) Managers often ignore problems for all of the following reasons EXCEPT: A. They can't be sure how much time, energy or trouble lies ahead B. Getting involved is risky C. It is easier to procrastinate or to get busy with less demanding activities D. Managers are often too busy to make decisions E. All of the above are correct AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 1 27. (p. 89) Decisions encountered and made before, having objectively correct answers and solvable by using simple rules, policies or numerical computations are: A. Qualitative decisions B. Programmed decisions C. Non-economic decisions D. Policy options E. Nonprogrammed decisions AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 3-9 Chapter 03 - Managerial Decision Making 28. (p. 89) New, novel, complex decisions having no proven answers are: A. Nonprogrammed decisions B. Standing plans C. Single-use plans D. Corporate objectives E. Programmed decisions AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 29. (p. 89) The state that exists when the probability of success is less than 100 percent is: A. Certainty B. Uncertainty C. Risk D. Standard deviation E. Programmable decisions AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 30. (p. 89) The state that exists when decision makers have accurate and comprehensive information is: A. Uncertainty B. Probability analysis C. Certainty D. Policy formulation E. Risk AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 3-10 Chapter 03 - Managerial Decision Making 31. (p. 89) The state that exists when decision makers have insufficient information is: A. Certainty B. Uncertainty C. Risk D. Probability E. Undecided AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 32. (p. 89) Shakil works for a large contractor. Company policy requires that in hiring subcontractors, at least three bids must be received and that the lowest bid which meets specifications will be accepted. Shakil's decisions regarding the hiring of subcontractors would be classified as: A. Minimizing B. Programmed C. Lacking structure D. Reprehensible E. Maximizing AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Hard Learning Objective: 1 33. (p. 89) Managers of Shadow Blinds are contemplating whether to open the company's first international branch in Europe or Asia. These managers are facing a _______ decision. A. Routine B. Programmed C. Well structured D. Nonprogrammed E. Satisficing AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Hard Learning Objective: 1 3-11 Chapter 03 - Managerial Decision Making 34. (p. 89) Uncertainty exists when the manager: A. Faces two conflicting issues B. Knows the risk involved in making the decision C. Has accurate information to make the decision D. Has insufficient information to make the decision E. None of the above describes uncertainty in decision making AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 35. (p. 91) Opposing pressures from different sources is: A. Conflict B. Cooperation C. Collusion D. Cohesiveness E. Groupthink AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 36. (p. 91) Kathy has received two job offers. One is from a firm in a town that Kathy would like to live in but the other offer would pay more. Kathy is having a difficult time making a decision due to experiencing: A. Internal conflict B. Organizational conflict C. Physical location conflict D. Psychological conflict E. Individual conflict AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Hard Learning Objective: 1 3-12 Chapter 03 - Managerial Decision Making 37. (p. 91) The initial step in the decision making process is to: A. Select an alternative B. Evaluate the decision C. Implement the decision D. Generate alternatives E. Identify the problem AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 38. (p. 91) A manager may discover that a problem exists by comparing current performance with A. Past performance B. The performance of other organizations C. Future expected performance D. All of the above E. None of the above AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 39. (p. 92) The manager of the Gallery Restaurant noted that the restaurant had experienced a decrease number of evening customers. 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. The manager's decision to have the menu revised suggests that she failed to: A. Identify the problem B. Evaluate the alternatives and consequences C. Properly diagnose the cause of the problem D. Evaluate the decision and its consequences E. Identify a solution AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Hard Learning Objective: 2 3-13 Chapter 03 - Managerial Decision Making 40. (p. 92) Once a problem is identified and properly diagnosed, the next stage in the decision making process involves: A. Evaluating alternatives B. Evaluating consequences C. Evaluating information D. Evaluating the decision E. Generating alternative solutions AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 41. (p. 92-93) 41 When a solution is specifically designed for a particular problem or set of problems, it is called: A. A designer-enhancement B. Dynamic C. Ready-made D. Future-generated E. None of the above AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 42. (p. 93) Custom-made decisions require: A. A consultant B. In-depth computations C. Top management approval D. Creativity E. Brainstorming AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 3-14 Chapter 03 - Managerial Decision Making 43. (p. 93) Alternative solutions to a competitor's price cuts might include all of the following EXCEPT: A. Emphasizing consumer risks to low-priced products B. Building awareness of your products' features and overall quality C. Communicating your cost advantage to your competitors so they realize they can't win a price war D. Eliminating all communication with your competitors so they will have less information about your pricing strategies E. All of the above are correct AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Medium Learning Objective: 2 44. (p. 94) Alternative courses of action that can be implemented based on how the future unfolds are called: A. Single-use plans B. Contingency plans C. Standing plans D. Corporate objectives E. Shadow plans AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 3-15 Chapter 03 - Managerial Decision Making 45. (p. 94) Aggie, the manager of Happy Hounds Kennel, knows that the economy can greatly affect her level of business. She has developed a plan of action for each of the four possible economic outcomes that have been predicted for her geographic area over the next 4-6 years. Aggie's use of these strategies according to the state of the economy suggests that she: A. Is facing a stable environment B. Utilizes contingency planning C. Focuses on efficient decisions D. Engages in satisficing E. Is a rational decision maker AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Hard Learning Objective: 2 46. (p. 94) __________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another and then choosing or creating the very best. A. Benchmarking B. Maximizing C. Minimizing D. Satisficing E. Optimalizing AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 2 47. (p. 95) Making a decision that meets your goal is referred to as: A. Optimization B. Satisficing C. Maximizing D. Minimizing E. Acceptability AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 3-16 Chapter 03 - Managerial Decision Making 48. (p. 95) Pat, the manager of a mental health facility, has a large number of decisions to be made because several of her assistants are on vacation. One of the decisions she has to make today is which paper clips to purchase for the clinic. She looks at the office supply catalog and picks the first one she sees that is priced acceptably. Pat is using ___________. A. Minimizing B. Optimizing C. Satisficing D. Incompetent as a manager E. Putting off the decision AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Hard Learning Objective: 2 49. (p. 95) Managers who optimize their decisions will attempt to choose: A. The first minimally acceptable alternative B. Among those alternatives with known results C. The least expensive alternative D. That alternative that produces the least conflict E. An alternative that achieves the best possible balance among several goals AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 2 50. (p. 95) To maximize is to: A. Realize the largest possible production benefit B. Involve as many people affected by the decision as possible in its design C. Realize the best possible outcome D. Utilize groupthink as individual decisions E. Generate many alternatives for evaluation AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 3-17 Chapter 03 - Managerial Decision Making 51. (p. 95) Steve Hamilton of Hamilton Supply Co. needed to purchase a new hydraulic lift that was high in quality and durability, yet low in price. The lift he decided upon was neither the highest quality available, nor the lowest in price available, yet it had a good combination of attributes. Steve's choice was: A. Maximizing B. Satisficing C. Optimizing D. Minimizing E. Programmed AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Hard Learning Objective: 2 52. (p. 96) Implementing a decision must be planned carefully. Adequate planning requires all of the following steps EXCEPT: A. Determining how things will look when the decision is fully operational B. Order the steps necessary to achieve a fully operational decision C. List the resources and activities needed to implement the decision D. Allow employees to take on responsibility once the implementation has begun E. All of the above are correct AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 53. (p. 96) The final stage in the decision-making process is: A. Anticipating the results B. Diagnosing the problem C. Evaluating alternatives D. Criteria analysis E. Evaluating the decision AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 2 3-18 Chapter 03 - Managerial Decision Making 54. (p. 97) Negative feedback received during the final evaluation of the decision indicates: A. The decision was a bad one B. Implementation will require more time, resources, effort or thought C. The manager may have to begin the process all over again D. Any of the above may be possible E. None of the above may be possible AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 2 55. (p. 98) Vigilance in decision making means that A. The manager closely watches over those responsible for implementation B. The manager has thoroughly completed all stages in the decision making process C. The manager has been monitored during the decision making process D. The employees monitor the implementation carefully E. The employees have been monitored relative to the utility of the decision AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 56. (p. 100) Managers' faulty thought processes that can lead companies to failure include: A. I must consult others for decision making B. E-commerce is expensive and difficult C. We must make a profit to survive D. Weigh short-term costs and benefits more heavily than long-term E. All of the above are correct AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Hard Learning Objective: 3 3-19 Chapter 03 - Managerial Decision Making 57. (p. 100) Among the faulty decision processes used by corporate executives are all of the following EXCEPT: A. Illusion of control B. Using groups to make decision C. Framing effects D. Discounting the future E. Acting too slowly AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 3 58. (p. 100) Psychological bias in decision making refers to: A. The effect that a person's psychological capabilities have upon the decisions they must make under pressure B. What happens when a decision maker must balance the preferences of many interested parties, diluting effectiveness C. The conflict that results from too many people involved with making a decision D. The inability to be objective when gathering, evaluating and applying information for decision making E. The fact that people are motivated by a need for power which clouds their decision making capabilities AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 3-20 Chapter 03 - Managerial Decision Making 59. (p. 100) The psychological bias known as "illusion of control" refers to: A. A belief that you have ultimate control and cannot make a poor decision B. A belief that you can influence events even when you have no control over what will happen C. A belief that you have no control and so you don't put any effort into the decision D. A belief that some unknown person actually has the control and is waiting for you to make a poor decision E. A lack of confidence in your ability to gain control AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 60. (p. 100) Gambling is an example of which of the following psychological biases? A. Illusion of control B. Framing effects C. Discounting the future D. Time pressure E. Social realities AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 3 61. (p. 100) Illusion of control, discounting the future and framing effects are all examples of: A. Social realities B. Psychological biases C. Rationality D. Vigilance E. Time pressures AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 3 3-21 Chapter 03 - Managerial Decision Making 62. (p. 100) The way in which the alternatives to a decision are stated or phrased may have an impact on which alternative is chosen. Varying alternatives can be presented in a more favorable or less favorable way, affecting the decision. This is to referred as: A. Framing effects B. Phrasing effects C. Fraud effects D. Flamboyancy effect E. Fracture effects AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 3 63. (p. 100) Discounting the future refers to: A. Valuing long-term benefits at the cost of short-term benefits B. Underestimating the long-term effects C. Underestimating the short-term effects D. Valuing short-term benefits at the cost of long-term benefits E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 64. (p. 100) Pearl Jam made a public statement that they had decided not to book any concerts through Ticketmaster as an objection to the virtual monopoly Ticketmaster has on the industry. The initial strong public support has been followed by fewer concerts, lower revenues, less overall public exposure and more hassles for the band. In retrospect, the band's decision seems to have: A. Been improperly framed B. Been socially irresponsible C. Discounted the future D. Psychological conflict E. Involved too many conflicting groups AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Hard Learning Objective: 3 3-22 Chapter 03 - Managerial Decision Making 65. (p. 100) Students who don't study, dieters who sneak dessert and working people who take the afternoon off when they really need to work are all examples of which psychological bias? A. Illusion of control B. Framing effects C. Discounting the future D. Time pressures E. Social realities AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 3 66. (p. 101) Government budget deficits are partly explained by: A. Illusion of control B. Framing effects C. Discounting the future D. Time pressures E. Social realities AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 3 67. (p. 101-102) Tactics that are used to make decisions quickly while maintaining the effectiveness of such decisions include: A. Take a realistic view of the conflict B. Involving people who are experts and can be trusted C. Focusing on real-time information D. All of the above E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 3-23 Chapter 03 - Managerial Decision Making 68. (p. 101-) Real-time information is information that: A. Is based on past performance B. Represents a realistic forecast C. Is based on adjusted predictions D. Is obtained with little or no delay E. Is discounted for the future AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 3 69. (p. 101) The CEO of OfficeMax begins each morning by logging onto a computer-based conference with all of the chain store managers. The previous day's experiences and challenges are discussed so that problems can be quickly and effectively resolved or even avoided. OfficeMax is utilizing __________ to retain a competitive edge A. Social realities B. Real-time information C. Psychological biases D. Framing effects E. Quality initiatives AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 70. (p. 102) When a manager attempts to make a decision that will please all of the affected parties and therefore the effectiveness of the decision is diluted, that manager is operating under: A. Time pressures B. Gut feeling C. The illusion of control D. A lack of control E. Social realities AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 3 3-24 Chapter 03 - Managerial Decision Making 71. (p. 102) The basic philosophy behind group decision making is that "two heads are better than one." But does this statement hold true? A. Yes, always B. Yes, potentially C. No, two does not constitute a group D. No, never E. Sadly, an answer for this cannot be determined AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 4 72. (p. 102) Turtle Cove Inc. recently completed a process of reengineering the organization. In deciding upon the changes to be implemented, Turtle Cove involved many of the workers in the decision making. This enabled the workers to be aware of the various options that were available and why the options to be implemented were chosen. Utilizing the workers assisted the decisions by helping them to: A. Dominate the discussions B. Utilize groupthink C. Satisfice each worker D. Displace the goals E. Understand the decisions AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Hard Learning Objective: 4 73. (p. 103) Advantages in using a group for decision making include: A. A higher level of understanding the decision B. Domination by one member for leading the discussion C. Groupthink D. Satisficing E. All of the above are advantages AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 4 3-25 Chapter 03 - Managerial Decision Making 74. (p. 103) Potential disadvantage of group decisions include all of the following EXCEPT: A. One person dominates B. Satisficing C. Groupthink D. Goal displacement E. Intellectual stimulation AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 4 75. (p. 103) In order to maximize the creativity and effectiveness of a decision, managers should: A. Obtain input from people with differing backgrounds B. Obtain information from people with differing information C. Obtain information from people with differing perspectives D. All of the above E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 4 76. (p. 103) Allowing one person to control a discussion or decision is referred to as: A. Groupthink B. Satisficing C. Domination D. Displacement E. Esprit de corps AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 4 3-26 Chapter 03 - Managerial Decision Making 77. (p. 103) A phenomenon that occurs in decision-making when group members avoid disagreement as they strive for consensus is: A. Goal displacement B. Domination C. Intuition or judgment D. Groupthink E. Esprit de corps AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 4 78. (p. 103) A condition that occurs when a decision-making group loses sight of its original goal and a new, possibly less important, goal emerges is: A. Goal displacement B. Groupthink C. Conflict D. Domination E. Group alternatives AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 4 79. (p. 103) Shannon left the meeting, frustrated as usual. The group really needed to make some decisions regarding next year's marketing campaign. Tony rammed all his ideas through; they were good, but nobody else dared to speak up or contribute. The group experienced: A. Groupthink B. Domination C. Satisficing D. Intellectual stimulation E. None of the above was experienced by the group AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Hard Learning Objective: 4 3-27 Chapter 03 - Managerial Decision Making 80. (p. 103) When a group accepts an alternative that seems to please the members of the group, but the group has not taken the time or effort to explore many options, the group has A. Exercised groupthink B. Stimulated its intellect C. Satisficed D. Allowed domination E. All of the above AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 4 81. (p. 103) Groupthink is A. Avoiding disagreement B. Obtaining all members' input C. The result of creativity D. Superior to individual decision making E. Extreme satisficing AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 4 82. (p. 103) Groups that operate under a condition known as groupthink: A. Make risky decisions B. Are overconfident C. Value team spirit D. All of the above E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 4 3-28 Chapter 03 - Managerial Decision Making 83. (p. 103) When new goals emerge in the process of a group making a decision and the original goal is forgotten or replaced, this is known as goal: A. Domination B. Displacement C. Groupthink D. Satisficing E. Synergy AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 4 84. (p. 104) Leaders of decision-making groups should: A. Discourage conflict B. Encourage groupthink C. Help the group satisfice D. Ask members for dissenting viewpoints E. Dominate the discussion AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 5 85. (p. 105) Issue-based differences in perspectives or judgments are: A. Compromises B. Cognitive conflicts C. Collusions D. Satisficing E. Disillusions AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 5 3-29 Chapter 03 - Managerial Decision Making 86. (p. 105) Emotional disagreement directed toward other people is: A. Cooperation B. Affective conflict C. Compromise D. Collusion E. Disillusionment AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 5 87. (p. 105) The most constructive type of conflict is ______________ conflict. A. No B. Emotional C. Cognitive D. Effective E. Dialectic AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 5 88. (p. 105) In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Tiffani to the task of criticizing ideas throughout the meeting. Tiffani was playing the role of: A. Conflict manager B. Devil's advocate C. Dialectic D. Conflict antagonist E. All of the above AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Easy Learning Objective: 5 3-30 Chapter 03 - Managerial Decision Making 89. (p. 105) When two of your employees consistently disagree with each other to the point of developing anger and bitterness which impacts the work group, it is a case of: ________. A. Cognitive conflict B. Affective conflict C. Devil's advocate D. Dialectic approach E. Brainstorming AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 5 90. (p. 105) The dialectic method requires that: A. People present contrary arguments in order to force investigation of the alternative under consideration B. A debate between two conflicting courses of action be held C. Conflict generated within the group be minimized D. Conflict generated within the group be maximized E. The leader perform the role of peacekeeper AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 5 91. (p. 105) In an attempt to make a conflict between two employees less personal and emotional, their manager assigns each of them to approach a problem from a different viewpoint. This is an example of using the ____________ approach. A. Cognitive conflict B. Affective conflict C. Devil's advocate D. Dialectic approach E. Groupthink AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 5 3-31 Chapter 03 - Managerial Decision Making 92. (p. 105) All of the following are ways that managers can encourage creativity EXCEPT: A. Give creative efforts credit B. Stimulate and challenge people intellectually C. Keep your employees isolated from customers to avoid conflicting information D. Avoid extreme time pressures when possible E. Strive to be creative yourself AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 6 93. (p. 106) 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: A. Brainstorming B. Forecasting C. Satisficing D. Cooperation E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 6 94. (p. 106) In order to be creative, a brainstorming session must: A. Be free of criticism B. Be held in private C. Be done professionally D. Be done face-to-face E. Involve industry experts AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 6 3-32 Chapter 03 - Managerial Decision Making 95. (p. 108) ____________ is the concept that decision makers cannot be truly rational because decisions are complex and complete information is unavailable. A. Bounded rationality B. Incremental decision making C. Garbage can D. Coalitional decision making E. None of the above is correct AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 7 96. (p. 108) The ______________ model of decision making arises when people disagree on goals or compete with one another for resources. A. Coalitional B. Trial-and-error C. Garbage can D. Incremental E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 7 97. (p. 108) The _______ model of decision making occurs when decision makers make small decisions and move in piece-meal fashion toward a bigger solution. A. Incremental B. Trial-and-error C. Garbage can D. Coalitional E. Political AACSB: Group/individual dynamics Blooms taxonomy: Knowledge Difficulty: Medium Learning Objective: 7 3-33 Chapter 03 - Managerial Decision Making 98. (p. 110-111) Which of the following questions is management NOT required to consider when managing a crisis? A. Can our company detect a crisis in its early stages? B. How might our company benefit from the crisis? C. How would our company manage a crisis if one occurred? D. Can our company absolve itself of any blame for the crisis? E. What kinds of crises might our company face? AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Medium Learning Objective: 8 99. (p. 110) Which of the following is NOT an element of an effective plan for crisis management? A. Psychological and cultural actions B. Technical and structural actions C. Competitive actions D. Evaluation and diagnostic actions E. Strategic actions AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 8 3-34 Chapter 03 - Managerial Decision Making Essay Questions 100. (p. 89) Differentiate between programmed and non-programmed decisions. Give an example of each. Answer will vary. AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Easy Learning Objective: 1 101. (p. 91) List and explain the six steps of the decision making process. Answer will vary. AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Comprehension Difficulty: Easy Learning Objective: 2 102. (p. 102) Explain the four disadvantages of using a group to make decisions. Answer will vary. AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Hard Learning Objective: 5 103. (p. 106) Briefly describe the brainstorming process using an example. Answer will vary. AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 6 3-35 Chapter 03 - Managerial Decision Making 104. (p. 108) Compare and contrast the four models of organizational decision processes. Answer will vary. AACSB: Group/individual dynamics Blooms taxonomy: Comprehension Difficulty: Hard Learning Objective: 7 3-36 Chapter 03 - Managerial Decision Making Multiple Choice Questions Use the following to answer questions 105-108: Healthy Day Regional Medical Center's management team has several decisions to make. They are attempting to sort out what to do first. The decisions are as follows: Determine which patients to be admitted for the next day. Decide whether or not to purchase the only other medical center in their region. Decide which candidates will meet the requirements for the nursing training program. Determine whether the medical center should diversify into more advanced (and substantially more costly) technologies. 105. (p. 89) The decisions in Scenario A can all be classified as either: A. Risky or non-risky B. Programmed or nonprogrammed C. Easy or difficult D. Necessary or not necessary E. Certain or uncertain AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Knowledge Difficulty: Easy Learning Objective: 1 106. (p. 89) Decision 4 is an example of which type of decision? A. Programmed B. Nonprogrammed C. Trivial D. Certain E. None of the above is correct AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Medium Learning Objective: 1 3-37 Chapter 03 - Managerial Decision Making 107. (p. 89) Decisions 1 and 3 are both ____________ decisions because ____________________. A. Programmed decisions; they are novel and complex B. Nonprogrammed decisions; they are novel and complex C. Programmed decisions; they are can be solved using rules and procedures D. Nonprogrammed decisions; they are novel and complex E. None of the above is correct AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Hard Learning Objective: 1 108. (p. 95) If the decision makers for Decision 3 take the first candidate they see that meets the minimum requirements, without going through every candidate's file to see if anyone else is better, they are _____________. A. Maximizing B. Satisficing C. Optimizing D. Experiencing internal conflict E. Experiencing external conflict AACSB: Other management-specific knowledge/abilities Blooms taxonomy: Application Difficulty: Medium Learning Objective: 2 Use the following to answer questions 109-111: You work for a new start-up software design firm. There are five highly-opinionated but very committed employees in your group. The owner firmly believes that she should make every decision since she is, as she often says, "the one who signs the checks." You and one of your colleagues agree that the owner is wrong in many of her management decisions. It has become a very emotional and personal issue for all of you. At this point, most people in the firm agree that the decision making of everyone involved has been compromised. 3-38 Chapter 03 - Managerial Decision Making 109. (p. 100) The owner's belief that she should make every decision herself is: A. The right thing to do B. A common mistake that leads to failed decision making by entrepreneurs C. An example of vigilance D. The reason group decision making is almost never a good idea E. None of the above AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 3 110. (p. 100) Suppose the owner tells you that the reason she makes every decision herself is because she believes that she can control what happens in the business. This unrealistic view is called: A. Framing effects B. Discounting the future C. Time pressures D. Illusion of control E. Disillusionment AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Easy Learning Objective: 3 111. (p. 105) 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. Satisficing; maximizing B. Cognitive conflict; affective conflict C. Affective conflict; cognitive conflict D. Maximizing, satisficing E. Uncertainty; certainty AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 5 3-39 Chapter 03 - Managerial Decision Making Use the following to answer questions 112-114: XYZ Corporation has hired a consultant to help them with organizational decision making. The consultant's first meeting is set up to describe to the managers of XYZ Corp. the models of organizational decision processes. Each of the managers seems to prefer one of the models over the others. 112. (p. 108) The President of XYZ Corp. responds most positively to the model that is most cautious. He explains that the budget process is the easiest decision for him because you break it into smaller pieces and build the decisions as you go. The President seems to prefer which model? A. Bounded rationality B. Incremental model C. Garbage can model D. Coalitional model E. Crisis model AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Hard Learning Objective: 7 113. (p. 108) The Vice President for Human Performance believes that the most important model of decision making is the one which acknowledges that decision makers cannot be truly rational. She tells the group that she 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 seems to prefer which model of organizational decision processes? A. Bounded rationality B. Incremental model C. Garbage can model D. Coalitional model E. Crisis model AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Hard Learning Objective: 7 3-40 Chapter 03 - Managerial Decision Making 114. (p. 108) The Vice President of Production tells the group that in his area of the company, many managers don't even agree about what their goals are and certainly cannot agree on what action to take. His managers are using which model of decision making? A. Bounded rationality B. Incremental model C. Garbage can model D. Coalitional model E. Crisis model AACSB: Group/individual dynamics Blooms taxonomy: Application Difficulty: Medium Learning Objective: 7 3-41 ... View Full Document

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