Download True/False Questions - UPM EduTrain Interactive Learning... Show Chapter 9 Managerial Decision Making True/False Questions 1. Decision making is easy, given that everybody makes decisions everyday. Answer: False 2. Level: 1 Page: 302 Type: F Level: 2 Page: 303 Type: F Level: 2 Page: 303 Type: A Level: 3 Page: 303 Type: A In 1999, WorldCom, a telecommunications company, decided to buy Skytel. This would be considered a programmed decision. Answer: False 8. Type: F Gary’s Groceries and Mike’s Market decided to merge their operations. This would be considered a nonprogrammed decision. Answer: True 7. Page: 302 Two employees in Jessie’s department quit. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision. Answer: False 6. Level: 1 Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions. Answer: True 5. Type: F A choice made from available alternatives is called a decision. Answer: True 4. Page: 302 Decision-making must not be done amid ever-changing factors, unclear information, and conflicting points of view. Answer: False 3. Level: 1 Level: 2 Page: 303 Type: F Programmed and structured are the two classifications of management decisions. Answer: False Level: 1 Page: 303 Type: F Chapter Nine * Managerial Decision Making Test Bank * Page 241 9. Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance. Answer: False 10. Type: F Level: 1 Page: 305 Type: F Level: 1 Page: 306 Type: F Level: 2 Page: 306 Type: F Level: 2 Page: 307 Type: F Level: 2 Page: 308 Type: F Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. Answer: True 18. Page: 305 Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality. Answer: False 17. Level: 2 The political model represents an "ideal" model of decision making that is often unattainable by real people in real organizations. Answer: False 16. Type: F Normative means it defines how a decision maker should make decisions. Answer: True 15. Page: 305 The classical decision making model assumes that the decision-maker is rational, and makes the optimal decision each time. Answer: True 14. Level: 2 Ambiguity refers to a situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcome is unavailable. Answer: True 13. Type: F Uncertainty is by far the most difficult decision situation. Answer: False 12. Page: 304 The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes. Answer: True 11. Level: 2 Level: 1 Page: 308 Type: F Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought. Chapter Nine * Managerial Decision Making Test Bank * Page 242 Answer: True 19. Level: 1 Page: 310 Type: F Level: 2 Page: 310 Type: F Level: 2 Page: 311 Type: F Level: 2 Page: 311 Type: F Level: 2 Page: 312 Type: F Level: 1 Page: 314 Type: F Feedback provides decision-makers with information that can precipitate a new decision cycle. Answer: True 28. Type: F Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff. Answer: True 27. Page: 309 Once the problem or opportunity has been recognized and analyzed, the decision-maker should implement the alternative. Answer: False 26. Level: 2 Managers confront a decision requirement in the form of either a problem or an opportunity. Answer: True 25. Type: F Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood requires only one step. Answer: False 24. Page: 309 The administrative model closely resembles the real environment in which most managers and decision makers operate. Answer: False 23. Level: 2 Coalition building is the process of forming alliances among managers. Answer: True 22. Type: F Cognitive scientist Gary Klein has found that intuition begins with goals. Answer: False 21. Page: 309 The administrative model is considered to be normative. Answer: False 20. Level: 1 Level: 2 Page: 315 Type: F People who prefer simple, clear-cut solutions to problems use the directive style. Chapter Nine * Managerial Decision Making Test Bank * Page 243 Answer: True 29. Level: 2 Page: 319 Type: F Level: 1 Page: 319 Type: F Level: 2 Page: 322 Type: F Level: 2 Page: 324 Type: F Managers might block or distort negative information because they don’t want to be responsible for a bad decision. Answer: True 35. Type: F By making mistakes, people go through the process of decision learning, which means that they gain valuable experience and knowledge to perform more effectively in the future. Answer: True 34. Page: 318 The rapid pace of today’s business environment requires only top management to make decisions and have the information, skills, and freedom they need to respond immediately to problems and questions. Answer: False 33. Level: 1 The Vroom-Jago model helps leaders to determine the best level of group involvement in the decision process, with five styles ranging from Decide through Delegate. Answer: True 32. Type: F The Vroom-Jago model helps a manager gauge the appropriate amount of participation by decision makers in making a specific decision. Answer: False 31. Page: 318 The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather. Answer: False 30. Level: 1 Level: 2 Page: 324 Type: F Devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group member's assumptions. Answer: False Level: 2 Page: 325 Type: F Multiple Choice Questions 1. Managers are often referred to as Chapter Nine * Managerial Decision Making Test Bank * Page 244 a. b. c. d. e. decision makers. peace makers. conflict creators. unnecessary layer of employees. profit suppressor. Answer: a 2. Level: 1 Page: 302 Type: F Choosing between a differentiation strategy and an overall cost leadership strategy is an example of a. b. c. d. e. a plan. an objective. an alternative. a decision. a strategy. Answer: d Level: 2 Page: 302 Type: F Tyke, a production manager at Kristal’s Kites, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of a. b. c. d. e. planning. decision-making. organizing. controlling. leading. Answer: b 5. Type: F Decision Plan Goal Tactic Strategy Answer: a 4. Page: 302 ______ is a choice made from available alternatives. a. b. c. d. e. 3. Level: 1 Level: 2 Page: 302 Type: A ______ refers to the process of identifying problems and then resolving them. a. b. c. Organizing Controlling Decision-making Chapter Nine * Managerial Decision Making Test Bank * Page 245 d. e. Planning Leading Answer: c 6. Level: 1 Page: 303 Programmed decisions are made in response to a. b. c. d. e. Type: F organizational problems. unusual recurring significant minor unique Answer: b Level: 2 Page: 303 Type: F Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Erin, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of a. b. c. d. e. a programmed decision. a nonprogrammed decision. an insignificant decision. poor management. personal grudge. Answer: a 9. Type: F Nonprogrammed Unique Programmed Ill-structured Novel Answer: c 8. Page: 302 Which of these decisions are associated with decision rules? a. b. c. d. e. 7. Level: 1 Level: 2 Page: 303 Type: A Nonprogrammed decisions are made in response to situations that are a. b. c. d. e. unique. unstructured. important to the organization. all of the above. a and c only. Answer: d Level: 1 Page: 303 Type: F Chapter Nine * Managerial Decision Making Test Bank * Page 246 10. Examples of nonprogrammed decisions would include the decision to a. b. c. d. e. reorder supplies. develop a new product or service. perform routine maintenance on one of the machines in manufacturing. terminate an employee for violation of company rules. fill a position. Answer: b 11. Good examples of a. b. c. d. e. decisions are strategic decisions. Level: 2 Page: 303 Type: F programmed decision. nonprogrammed decision. novel decision. poor management. unstructured decision. Answer: a Level: 2 Page: 303 Type: A When a small community hospital decides to add a radiation therapy unit, it is considered as a a. b. c. d. e. programmed decision. structured decision. nonprogrammed decision. poor management decision. certainty decision. Answer: c 14. Type: F Nordstrom Department store’s "No questions asked - Return's Policy" is an example of a(n) a. b. c. d. e. 13. Page: 303 nonprogrammed programmed insignificant recurring structured Answer: a 12. Level: 2 Level: 2 Page: 303 Type: A If your instructor has an attendance policy, she/he is using a a. programmed decision. Chapter Nine * Managerial Decision Making Test Bank * Page 247 b. c. d. e. unique approach. condition of ambiguity. nonprogrammed decision. none of the above. Answer: a 15. Level: 2 Page: 303 Type: A Associated with the condition of ______ is the lowest possibility of failure. a. b. c. d. e. ambiguity uncertainty certainty risk all of the above Answer: c Level: 1 Page: 304 Type: F ________ means that all the information the decision-maker needs is fully available. a. b. c. d. e. Certainty Risk Uncertainty Ambiguity None of the above Answer: a 18. Type: A programmed decision. nonprogrammed decision. decision rule. structured decision. bad community decision. Answer: b 17. Page: 303 Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a a. b. c. d. e. 16. Level: 2 Level: 1 Page: 304 Type: F Under conditions of ______, statistical analyses are useful. a. b. c. d. e. certainty ambiguity risk uncertainty conflict Chapter Nine * Managerial Decision Making Test Bank * Page 248 Answer: c 19. Level: 2 Page: 304 Type: F ________ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. a. b. b. d. e. Certainty Risk Uncertainty Ambiguity Advocacy Answer: c Level: 2 Page: 305 Type: F Kent, a product manager, wants to increase the market share of his product. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Kent is operating under a condition of a. b. c. d. e. risk. ambiguity. certainty. uncertainty. brainstorming. Answer: d 22. Type: F Certainty Risk Uncertainty Ambiguity Brainstorming Answer: b 21. Page: 304 ________ means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance. a. b. c. d. e. 20. Level: 2 Level: 2 Page: 305 Type: A When managers know which goals they wish to achieve, but information about alternatives and future events is incomplete, the conditions of _________ exists. a. b. c. d. e. risk uncertainty ambiguity certainty problematic Chapter Nine * Managerial Decision Making Test Bank * Page 249 Answer: b 23. Page: 305 Type: F Certainty Risk Uncertainty Ambiguity Brainstorming Answer: d Level: 2 Page: 305 Type: F __________ means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable. a. b. c. d. e. Certainty Risk Uncertainty Ambiguity Brainstorming Answer: d Level: 2 Page: 305 Type: F The condition under which ambiguity occurs include a. b. c. d. e. alternatives are difficult to define. objectives are well defined. information about outcomes is readily available. all the alternatives are known. decisions are already made. Answer: a 27. Level: 1 ______ is by far the most difficult situation for a decision-maker. a. b. c. d. e. 26. Type: F The conditions of certainty The conditions of ambiguity The conditions of uncertainty The conditions of risk All of the above Answer: b 25. Page: 305 Which of these has the highest possibility of failure? a. b. c. d. e. 24. Level: 2 Level: 2 Page: 305 Type: F The classical model of decision making is based on a. philosophical Chapter Nine * Managerial Decision Making Test Bank * Page 250 assumptions. b. c. d. e. irrational economic uncertainty technological Answer: c 28. Level: 2 The administrative model of decision making The garbage can model of decision making The scientific management model of decision making The classical model of decision making The humanistic model of decision making Answer: d Level: 2 e. Type: A Problems are unstructured and ill defined. The decision-maker strives for conditions of certainty. Criteria for evaluating alternatives are unknown. The decision-maker selects the alternatives that will minimize the economic return to the organization. The situation is always uncertain. Answer: b The a. b. c. d. e. Level: 3 Page: 306 Type: F approach defines how a decision-maker should make decisions. normative scientific descriptive reflective humanistic Answer: a 31. Page: 306 Which of these assumptions are included in the classical model of decision making? a. b. c. d. 30. Type: F Micah is a manager at the Tennis Tools. She is expected to make decisions that are in the organization’s best economic interests. Her decisions should be based on which of the following models? a. b. c. d. e. 29. Page: 306 Level: 2 Page: 306 Type: F ______ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization. a. b. c. Administrative Descriptive Normative Chapter Nine * Managerial Decision Making Test Bank * Page 251 d. e. Bounded rationality None of the above Answer: c 32. The a. b. c. d. e. Level: 2 administrative, programmed decisions classical, nonprogrammed decisions classical, programmed decisions classical, ambiguous decisions administrative, structured decisions Level: 3 Page: 306 Type: F Normative, descriptive Normative, classical Descriptive, normative Descriptive, administrative Normative, administrative Answer: c Level: 2 Page: 306, 309 Type: F The ______ model of decision making is associated with satisficing, bounded rationality, and uncertainty. a. b. c. d. e. classical administrative quantitative rational political Answer: b 35. . __________ approach describes how managers actually make decisions, where as ________ approach defines how a decision-maker should make decisions. a. b. c. d. e. 34. Type: F model of decision making is most valuable when applied to Answer: c 33. Page: 306 Level: 2 Page: 308 Type: F The ________ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity. a. b. c. d. e. normative classical administrative scientific management objective Chapter Nine * Managerial Decision Making Test Bank * Page 252 Answer: c 36. Level: 1 Page: 308 Type: F The essence of ______ is to choose the first solution available. a. b. c. d. e. bounded rationality creativity decision maximization satisficing the classical model of decision making Answer: d Level: 2 Page: 308 Type: F Kari is a manager at My Size Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Kari’s situation is most consistent with which of the following concepts? a. b. c. d. e. Bounded rationality The classical model of decision making Satisficing Brainstorming Scientific management Answer: a 39. Type: F satisficing. bounded rationality. classical model of decision making. normative approach. scientific approach. Answer: b 38. Page: 308 The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as a. b. c. d. e. 37. Level: 1 Intuition is based on a. b. c. d. e. Level: 3 Page: 308 , but lacking in Type: A . conscious thought, practicality experience, applicability a solid analysis, applicability experience, conscious thought thought-process, guts Answer: d Level: 2 Page: 309 Type: F Chapter Nine * Managerial Decision Making Test Bank * Page 253 40. ______ is the process of forming alliances among managers during the decision making process. a. b. c. d. e. Networking Socializing Coalition building Satisficing Passing the buck Answer: c 41. Level: 2 Page: 310 Type: F All of these are basic assumptions of the political model EXCEPT a. b. c. d. e. organizations are made up of groups with diverse interests, goals, and values. information is clear and complete managers do not have the time, resources, or mental capacity to identify all dimensions of the problem managers engage in the push and pull of debate to decide goals and discuss alternatives. all of these are basic assumptions of the political model. Answer: b Level: 2 Page: 310 Type: F ______ is the first step in the managerial decision making process. a. b. c. d. e. Evaluation and feedback Development of alternatives Recognition of decision requirement Diagnosis and analysis of causes Selection of desired alternatives Answer: c 44. Type: F normative. administrative descriptive classical political Answer: e 43. Page: 310 The model closely resembles the real environment in which most managers and decision-makers operate. a. b. c. d. e. 42. Level: 2 Level: 1 Page: 311 Type: F All of the following are characteristics of classical decision making model EXCEPT Chapter Nine * Managerial Decision Making Test Bank * Page 254 a. b. c. d. e. clear-cut problems and goals. conditions of certainty. rational choice by individual for maximizing outcomes. limited information about alternatives and their outcomes. all of the above are characteristics of classical decision making model. Answer: d 45. Level: 3 Page: 311 Type: F ______ is the last step in the decision making process. a. b. c. d. e. Evaluation and feedback Development of alternatives Implementation of chosen alternative Selection of desired requirement Recognition of decision requirement Answer: a Level: 1 Page: 312 Type: F Once the desired alternative is selected, it should be a. b. c. d. e. analyzed. evaluated. implemented. recognized. developed. Answer: c 48. Type: F vague problem and goals. conditions of certainty. limited information about alternatives and their outcomes. satisfying choice. all of the above are characteristics of administrative decision making model. Answer: b 47. Page: 311 All of the following are characteristics of administrative decision making model EXCEPT a. b. c. d. e. 46. Level: 3 Level: 2 Page: 312 Type: F "When did it occur" and "how did it occur" are questions associated with which step of the decision making process? a. b. c. Diagnosis and analysis of causes Recognition of decision requirement Development of alternatives Chapter Nine * Managerial Decision Making Test Bank * Page 255 d. e. Selection of desired alternative None of the above Answer: a 49. Level: 2 Page: 312 Type: F Molly works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision making process? a. b. c. d. e. Diagnosis and analysis of causes Development of alternatives Recognition of decision requirement Evaluation and feedback Selection of desired alternatives Answer: c Level: 1 Page: 312 Type: A The decision-maker must ______once the problem has been recognized and analyzed. a. b. c. d. e. evaluate and provide feedback choose among alternatives generate alternatives prioritize the alternatives reanalyze the problem Answer: c 52. Type: F develop alternative solutions. integrate information in novel ways. use the classical model of decision making. focus on generating ideas. select undesirable alternatives. Answer: b 51. Page: 312 The recognition of the decision requirement step in the managerial decision making process requires managers to a. b. c. d. e. 50. Level: 2 Level: 2 Page: 313 Type: F For a programmed decision, a. b. c. d. e. alternatives are usually difficult to identify. alternatives are usually easy to identify. there are usually few alternatives. there are usually few alternatives and they are difficult to identify. there are no alternatives. Chapter Nine * Managerial Decision Making Test Bank * Page 256 Answer: b 53. 54. Level: 2 Page: 313 Type: A is the willingness to undertake risk with the opportunity to increase one's return. a. b. c. d. e. Tunnel vision Risk propensity Risk averse Thrill seeking Ineffective investment philosophy Answer: b Level: 1 Page: 314 Type: F A risk taker a. b. c. d. e. takes many chances. will always try to increase his/her return by choosing a riskier alternative. will select an alternative with a low probability of success if the expected payout is higher. all of the above. b and c only. Answer: d Level: 2 Page: 314 Type: F The ______ step in the decision making process involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action. a. b. c. d. e. recognition analysis evaluation implementation feedback Answer: d 57. Type: F likely be making programmed decisions. probably have an easy time generating alternatives. probably have a difficult time generating alternatives. likely rely on the classical model of decision making. wait until environment becomes certain. Answer: c 56. Page: 313 Freddie is a manager at Monster Catchers. Monster Catchers is currently operating in an environment of high uncertainty. As a result, Freddie will a. b. c. d. e. 55. Level: 2 Level: 1 Page: 314 Type: F Feedback is important because Chapter Nine * Managerial Decision Making Test Bank * Page 257 a. b. c. d. e. decision making is a continuous process. it provides decision-makers with new information. it helps determine if a new decision needs to be made. all of the above. b and c only. Answer: d 58. Level: 2 The generation of alternatives Implementation of the chosen alternative Evaluation and feedback Recognition of the decision requirement Selection of desired alternative Answer: c The a. b. c. d. e. Level: 2 Type: A behavioral conceptual directive analytical classical Level: 1 Page: 318 Type: F Personal ______ style refers to differences among people with respect to how they perceives problems and make decisions. a. b. c. d. e. risk taking behavior decision strategic analysis Answer: c 61. Page: 315 style is used by people who prefer simple, clear-cut solutions to problems. Answer: c 60. Type: F Tasha is collecting data on how well the organization has done since their new strategy was implemented. She is in what stage of the managerial decision making process? a. b. c. d. e. 59. Page: 315 Level: 2 Page: 318 Type: F Managers are considered as having style, when they like to consider complex solutions based on as much data as they can gather. a. b. behavioral conceptual Chapter Nine * Managerial Decision Making Test Bank * Page 258 c. d. e. directive analytical classical Answer: d 62. Level: 1 Page: 318 Type: F The Vroom-Jago model a. b. c. d. e. helps managers determine the appropriate amount of participation for subordinates. helps managers implement the classical model of decision making. is only useful in programmed decision situations. forces managers to make decisions without participation. helps managers avoid participation. Answer: a Level: 2 Page: 319 Type: F Which of these decision styles relates to the situation where you obtain the necessary information from your subordinates and then decide on the solution to the problem yourself? a. b. c. d. e. Decide Consult Group Delegate Facilitate Consult Individually Answer: e 65. Type: F Behavioral Classical Analytic Logical Conceptual Answer: a 64. Page: 318 Which of these styles is adopted by managers having a deep concern for others as individuals? a. b. c. d. e. 63. Level: 1 Level: 2 Page: 319 Type: F Which of these is a highly autocratic decision style? a. b. c. d. Consult Group Consult Individually Facilitate Decide Chapter Nine * Managerial Decision Making Test Bank * Page 259 e. Delegate Answer: d 66. Level: 1 Page: 319 Type: F Josh is a manager at Baseball Equipment. He is thinking about involving his subordinates in the decision making process. According to Vroom and Jago, if a. b. c. d. e. his subordinates typically go along with whatever Josh decides, their involvement is not that important. Josh does not have good information; there is no need to involve the subordinates. the subordinates do not share in the goals of the organization, Josh should let them make the decision alone. the problem is ambiguous and poorly structured, there is a need for Josh to interact with his subordinates. None of the above applies. Answer: d Level: 3 Page: 320 Type: A Managers can use the Vroom-Jago model to make ______ decisions. a. b. c. d. e. timely, unimportant low-quality problematic timely, high-quality only time unrestricted Answer: d 69. Type: F Consult Group Consult Individually Facilitate Decide Delegate Answer: e 68. Page: 319 Which of these decision styles represent a group decision making? a. b. c. d. e. 67. Level: 2 Level: 2 Page: 321 Type: F The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as a. b. c. d. e. technological decisions. collective intuition. decision learning. team delay. escalating commitment. Chapter Nine * Managerial Decision Making Test Bank * Page 260 Answer: e 70. Level: 2 Page: 325 Type: F The ______ is the individual who is assigned the role of challenging assumptions made by the group. a. b. c. d. e. group gadfly multiple advocate devil's advocate brainstormer inferior member Answer: c Level: 1 Page: 325 Type: F Scenario Questions Scenario—Brandon Folk Brandon Folk manages a group of eight electrical engineers at Athex Designs. His team is highly trained and well respected by experts both inside and outside the company. Recently one of Brandon’s engineers suggested a new technique for the development and use of an argon laser. There appeared to be rich potential for this technology, but Brandon wasn't certain that developing this technology was the best use of his limited resources. Brandon was facing a significant decision. 1. If Brandon uses the classical model of decision making, which of these assumptions would he reject? a. b. c. d. e. The decision maker is rational and uses logic in assigning values and evaluating alternatives. The desired decision will maximize attainment of organizational objectives. The decision-maker strives for complete certainty, gathering complete information. Problems are precisely formulated and defined. All of the above are accepted. Answer: e 2. Type: A If Brandon uses the administrative model of decision making, which of these assumptions would he reject? a. b. Decision-makers settle for a satisficing rather than maximizing solution The search for alternatives is limited because of information, human and resource Chapter Nine * Managerial Decision Making Test Bank * Page 261 c. d. e. constraints Rational procedures will normally lead to the best solution in a complex organization Decision objectives are often vague, conflicting, and lack consensus among managers All of the above are accepted Answer: c 3. Type: A Which of the following steps would Brandon not take in making his decision? a. b. c. d. e. Sense and recognize the decision requirement Implement the chosen alternative Create a set of alternatives Diagnose and analyze problem causes All of the above would be included Answer: e Type: A Short-Answer Questions 1. A(n) is a choice made from available alternatives. Answer: decision 2. Page: 302 is the process of identifying problems and opportunities and then resolving them. Answer: Decision making 3. _______ decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. Answer: Programmed 4. Page: 303 decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Answer: Nonprogrammed 5. Page: 302 Page: 303 means that all the information the decision-maker needs is fully available. Answer: Certainty Page: 304 Chapter Nine * Managerial Decision Making Test Bank * Page 262 6. means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance. Answer: Risk 7. Page: 304 Under conditions of _______, managers know what goal they wish to achieve, but information about alternatives and future events is incomplete. Answer: uncertainty 8. Page: 305 means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable. Answer: Ambiguity 9. The Page: 305 model of decision making is based on economic assumptions. Answer: classical 10. Page: 306 A normative decision making model defines how a manager _______ make decisions. Answer: should 11. Page: 306 In many respects, the ______ model represents an “ideal” model decision-making and can’t usually be attained by real people in real organizations. Answer: classical 12. Page: 307 The model of decision making describes how managers actually make decisions in difficult situations, such as those characterized by nonprogrammed decision, uncertainty, and ambiguity. Answer: administrative 13. The recognition that people have limits on how rational they can be is known as _______. Answer: bounded rationality 14. Page: 308 means that decision-makers choose the first solution alternative that satisfies minimal decision criteria. Answer: Satisficing 15. Page: 308 Page: 308 represents a quick apprehension of a decision situation based on past experience but without conscious thought. Chapter Nine * Managerial Decision Making Test Bank * Page 263 Answer: Intuition 16. Page: 309 A(n) ______ approach describes how managers actually make decisions, not how they should. Answer: descriptive 17. Page: 309 Gary Klein, a cognitive psychologist, has found that intuition begins with ______. Answer: recognition 18. Page: 309 _______ is the process of forming alliances among managers. Answer: Coalition building 19. A(n) ______ occurs when organizational accomplishment is less than established goals. Answer: problem 20. Page: 311 ______ exists when managers see potential of enhancing performance beyond current levels. Answer: Opportunity 21. Page: 311 The step in the decision making process in which managers analyze the underlying causal factors associated with the situation is called _______. Answer: diagnosis 22. Page: 310 Page: 312 List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes. Answer: Students can answer with any four of the following questions: (1) What is the state of disequilibrium affecting us? (2) When did it occur? (3) Where did it occur? (4) How did it occur? (5) To whom did it occur? (6) What is the urgency of the problem? (7) What is the interconnectedness of events? (8) What result came from which activity? Page: 312-313 23. is the willingness to undertake risk with the opportunity of gaining an increased payoff. Answer: Risk propensity 24. Page: 314 The stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out. Chapter Nine * Managerial Decision Making Test Bank * Page 264 Answer: implementation 25. ______ is important because decision making is a continuous, never ending process. Answer: Feedback 26. Page: 315 Differences among people with respect to how they perceive problems and make decisions is called ______. Answer: decision style 27. Page: 318 The style is often the style adopted by managers having a deep concern for others as individuals. Answer: behavioral 28. Page: 318 The ______ helps a manager gauge the appropriate amount of participation by subordinates in making a specific decision. Answer: Vroom-Jago Model 29. Page: 314 Page: 319 List the five guidelines of effective decision-making in today’s businesses. Answer: Start with brainstorming, Learn, don’t punish, Know when to bail, Practice the five whys, Engage in rigorous debate Page: 322 30. A(n) _______ is assigned the role of challenging the assumptions and assertions made by the group. Answer: devil's advocate Page: 325 Essay Questions 1. Explain the difference between programmed and nonprogrammed decisions and give an example of each. ANSWER: Programmed decisions involve situations that have occurred enough to enable decision rules to be developed and applied in the future. Examples include job skills required to fill certain positions, the reorder point for manufacturing inventory, and selection of Chapter Nine * Managerial Decision Making Test Bank * Page 265 freight routes for product deliveries. Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Examples are decisions to build a new factory, develop a new product or service, and enter a new geographical market. Level: 2 2. Page: 303 Compare decision conditions of certainty, risk, uncertainty, and ambiguity. ANSWER: Decisions made under the condition of certainty have a high possibility of success. All of the information that the decision-maker needs is available. The decision-maker knows the alternatives, the objectives, and the outcomes. Risk is a situation where the decisionmaker knows the alternatives and the objectives. However, the outcomes are not known with certainty, but the probabilities of the outcomes are known. Under conditions of uncertainty, the decision-maker does not know the probabilities of the outcomes, while she knows some of the alternatives and the objectives. With ambiguity, the objectives are unclear, alternatives are difficult to define, and information about outcomes is incomplete or unavailable. Level: 3 3. Page: 303-306 Briefly describe the assumptions underlying the classical model of decision making. ANSWER: The classical model of decision making is based on four assumptions. First, the decisionmaker attempts to accomplish goals that are known and agreed upon. In addition, problems are specified and defined precisely. Second, the decision-maker attempts to gather complete information, going for a condition of certainty. Third, the criteria for evaluating the alternatives are known and the decision-maker will select the alternative that maximizes the economic return to the organization. Fourth, the decision-maker is rational and relies upon logic to make sense of the information available. Level: 3 4. Page: 306 Explain the four underlying assumptions of the administrative model. ANSWER: (1) The decision maker operates to accomplish goals that are vague and conflicting. (2) All alternatives and the potential results are based on simplistic views of organizational events. (3) Alternatives are limited based on human constraints. (4) Managers settle for satisficing. Chapter Nine * Managerial Decision Making Test Bank * Page 266 Level: 2 5. Page: 306 List and describe the four basic assumptions of the political model. ANSWER: (1) Organizations are made up of groups with diverse interests, goals, and values. Managers disagree about problem priorities and may not understand or share the goals and interests of other managers. (2) Information is ambiguous and incomplete. The attempt to be rational is limited by the complexity of many problems as well as personal and organizational constraints. (3) Managers do not have the time, resources, or mental capacity to identify all dimensions of the problem and process all relevant information. Managers talk to each other and exchange viewpoints to gather information and reduce ambiguity. (4) Managers engage in the push and pull of debate to decide goals and discuss alternatives. Decisions are the result of bargaining and discussion among coalition members. Level: 2 6. Page: 310 What are the six steps in the managerial decision making process? ANSWER: The six steps are (1) recognize the decision requirement; (2) diagnose and analyze the causes; (3) develop alternatives; (4) select the desired alternative; (5) implement the chosen alternative; and (6) evaluate and determine feedback. Level: 1 7. Page: 312 Explain how a manager selects the desired decision in the managerial decision making process. ANSWER: The manager tries to select the choice with the least amount of risk and uncertainty. Because some risk is inherent for most nonprogrammed decisions, managers try to gauge prospects for success. Under conditions of uncertainty, they might have to rely on their intuition and experience to estimate whether a given course of action is likely to succeed. Basing choices on overall goals and values can also effectively guide selection of alternatives. Decision about how to cope should be selected by relying on the company’s values and goals of treatment of employees and building long-term relationships. Making choices depends on managers’ personality factors and willingness to accept risk and uncertainty. Level: 2 Page: 313-314 Chapter Nine * Managerial Decision Making Test Bank * Page 267 8. Briefly describe the four major personal decision styles. ANSWER: Directive, analytical, conceptual, and behavioral style. Level: 2 9. Page: 318 Describe the five leader decision styles identified by Vroom and Jago. ANSWER: The five styles range from highly autocratic to highly democratic. In using the first decision style, (Decide), leaders would make the decisions on their own using the information they had available to them at the time. The second style, (Consult Individually), involves leaders gathering information from their subordinates and then going on to make the decision on their own. Consult Group is the third decision style. It goes beyond Consult Group by involving the subordinates to a greater extent: the leader asks them individually for their ideas and solutions, but still makes the decision. The fourth style, (Facilitate), is similar to Consult Group, except that the leader gathers the subordinates together as a group to solicit information. The most democratic style, (Delegate), is based on the leaders gathering their subordinates together as a group, sharing the problem with them, asking for their ideas but not trying to influence them, and accepting whatever solution has the support of the group. Level: 2 Page: 320 Chapter Nine * Managerial Decision Making Test Bank * Page 268 What are the 4 decision styles?The four decision-making styles include:
Analytical. Directive. Conceptual. Behavioral.
Which of the following is a decisionElectronic brainstorming, sometimes called brainwriting, brings people together in an interactive group over a computer network.
Which of the following is the step in the decisionDiagnosis is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation.
What are the 3 types of decisionTypes of decisions. strategic.. tactical.. operational.. |
Which decision style is adopted by managers who have a deep concern for others as individuals
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