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SAN DIEGO STATE CLASSES - Chapter 6 Decision Making The...

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Chapter 6 Decision Making: The Essence of the Manager’s Job TRUE/FALSE QUESTIONS THE DECISION-MAKING PROCESS 1. A discrepancy between an existing and a desired state of affairs is an opportunity. (False; moderate; p. 134) 2. The first step in the decision-making process is identifying a problem. (True; easy; p. 134) 3. The final step in the decision-making process is implementing the chosen alternative. (False; moderate; p. 138) 4. It is possible that at the end of the decision-making process you may be required to start the decision process over again. (True; easy; p. 138) 5. A decision criterion defines what is relevant in a decision. (True; moderate; p. 136) 6. The step in the decision-making process that involves choosing a best alternative is termed implementation. (False; moderate; p. 138) THE MANAGER AS DECISION MAKER 7. Decision making is synonymous with managing. (True; easy; p. 139) 8. Managerial decision making is assumed to be rational. (True; moderate; p. 139) 9. One assumption of rationality is that we cannot know all of the alternatives. (False; difficult; p. 139) 10. Accepting solutions that are “good enough” is termed satisfying. (False; easy; p. 140) 11. Managers tend to operate under assumptions of bounded rationality. (True; moderate; p. 140) 12. Managers regularly use their intuition in decision making. (True; easy; p. 141) 121
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13. Rational analysis and intuitive decision making are complementary. (True; moderate; p. 141) 14. A policy is an explicit statement that tells a manager what he or she ought or ought not to do. (False; moderate; p. 142) 15. Programmed decisions tend to be repetitive and routine. (True; easy; p. 142) 16. Rules and policies are basically the same. (False; moderate; p. 142) 17. Nonprogrammed decisions are unique and nonrecurring. (True; moderate; p. 143) 18. Most managerial decisions in the real world are fully nonprogrammed. (False; easy; p. 143) 19. Organizational efficiency is facilitated by the use of programmed decision making. (True; moderate; p. 142) 20. The ideal situation for making decisions is low risk. (False; moderate; p. 142) 21. Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates. (False; difficult; p. 144) 22. An optimistic manager will follow a maximin approach. (False; moderate; p. 146) 23. People who have a low tolerance for ambiguity and are rational in their way of thinking are said to have a directive style. (True; moderate; p. 147) 24. Decision makers with an analytic style have a much lower tolerance for ambiguity than do directive types. (False; moderate; p. 147) 25. Individuals with a conceptual style tend to be very broad in their outlook and will look at many alternatives. (True; moderate; p. 147) 26. Behavioral-style decision makers work well with others. (True; easy; p. 147) 27. Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes.
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