Deck 6: Managers As Decision-Makers

Question 1

Rules and policies are basically the same.

Answer 1

False

Question 2

Problem identification is purely objective.

Answer 2

False

Question 3

Studies of the events leading up to the Challenger space shuttle disaster point to an escalation of commitment by decision makers.

Answer 3

True

Question 4

A policy is an explicit statement that tells a manager what he or she ought or ought not to do.

Question 5

Rational analysis and intuitive decision making are complementary.

Question 6

Managers tend to operate under assumptions of bounded rationality.

Question 7

One assumption of rationality is that we cannot know all of the alternatives.

Question 8

Programmed decisions tend to be repetitive and routine.

Question 9

The second step in the decision- making process is identifying a problem.

Question 10

A decision criterion defines what is relevant in a decision.

Question 11

The solution to nonprogrammed decision making relies on procedures, rules, and policies.

Question 12

Managerial decision making is assumed to be rational.

Question 13

Most managerial decisions in the real world are fully nonprogrammed.

Question 14

Making decisions is the essence of management.

Question 15

The fourth step of the decision- making process requires the decision maker to list viable alternatives that could resolve the problem.

Question 16

The ideal situation for making decisions is low risk.

Question 17

Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes.

Question 18

The step in the decision- making process that involves choosing a best alternative is termed implementation.

Question 19

Once the alternatives have been identified, a decision maker must analyze each one.

Question 20

Managers regularly use their intuition in decision making.

Question 21

The sunk cost error is when decision makers forget that current choices cannot correct the past.

Question 22

is the existence of a discrepancy between an existing and a desired state of affairs.

A) An opportunity
B) A weakness
C) A problem
D) A solution

Question 23

What is the second step in the decision- making process?

A) Allocating weights to the criteria.
B) Analyzing alternatives.
C) Identifying a problem.
D) Identifying decision criteria.

Question 24

Managers need to understand cultural differences to make effective decisions in today's fast- moving world.

Question 25

Highly reliable organizations (HROs) are easily tricked by their success.

Question 26

Which of the following statements is incorrect?

A) Among Arab managers, the consultative style is more widespread than the autocratic style.
B) Collective decision making is used by many managers in the Arab world.
C) Shura is an important decision making concept restricted to the political arena.
D) Some studies have found that pseudo- consultation may be prevalent in some Arab managerial settings.

Question 27

Most managers have characteristics of linear thinking style decision makers.

Question 28

In identifying a problem, a manager .

A) looks for discrepancies that can be postponed
B) will not act when there is pressure to make a decision
C) expects problems to be defined by neon lights
D) compares the current state of affairs with where they would like to be

Question 29

A series of eight steps that begins with identifying a problem and concludes with evaluating the decision's effectiveness is the _.

A) bounded rationality approach
B) managerial process
C) maximin style
D) decision- making process

Question 30

Decision making is typically described as , which is a view that is too simplistic.

A) putting preferences on paper
B) processing information to completion
C) deciding what is correct
D) choosing among alternatives

Question 31

The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, they fail to adequately adjust for subsequent information.

Question 32

Today's business world revolves around making decisions, usually with complete or adequate information, and under minimal time pressure.

Question 33

Which of the following statements is true concerning problem identification?

A) A symptom and a problem are basically the same.
B) Well- trained managers generally agree on what is considered a problem.
C) The problem must be such that it exerts some type of pressure on the manager to act.
D) Problems are generally obvious.

Question 34

According to the boxed feature, "Managing Workforce Diversity," diverse employees tend to make decisions faster than a homogeneous group of employees.

Question 35

The concept of "Shura" is close to the consultative decision making style.

Question 36

"Shura" is a political concept that has no significance in business contexts.

Question 37

The availability bias describes when decision makers try to create meaning out of random events.

Question 38

Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates.

Question 39

The autocratic style of decision making seems to be the most widely used style in Arab organizations.

Question 40

Which of the following styles of decision making seems to be most dominant among Arab managers?

A) Autocratic
B) Participative
C) Consultative
D) Democratic

Question 41

Managers are assumed to be _ ; they make consistent, value- maximizing choices within specified constraints.

A) leaders
B) rational
C) organized
D) satisficers

Question 42

When developing alternatives in the decision- making process, what must a manager do?

A) Implement alternatives.
B) List alternatives.
C) Evaluate alternatives.
D) Weight alternatives.

Question 43

When managers circumvent the rational decision- making model and find ways to satisfice, they are following the concept of _.

A) jurisprudence
B) bounded rationality
C) self- motivated decisions
D) least- squared exemptions

Question 44

Pseudo- consultation refers to _ .

A) the manager's use of consultation in some cases and participation in other cases
B) the manager's use of consultation that lacks real authenticity
C) the manager's continuous use of a participative style
D) the manager's continuous use of a consultative style

Question 45

Because managers can't possibly analyze all information on all alternatives, managers , rather than .

A) satisfice; minimize
B) satisfice; maximize
C) maximize; satisfice
D) maximize; minimize

Question 46

Which of the following is important to remember in evaluating the effectiveness of the decision- making process?

A) You should ignore criticism concerning the decision- making process.
B) Ninety percent of problems with decision making occur in the implementation step.
C) You will have to restart the decision- making process if the decision is less than 50 percent effective.
D) You may have to start the whole decision process over.

Question 47

In allocating weights to the decision criteria, which of the following is helpful to remember?

A) All weights must be the same.
B) Every factor criterion considered, regardless of its importance, must receive some weighting.
C) The total of the weights should sum to 10.
D) Assign the most important criterion a score, and then assign weights against that standard.

Question 48

What is the third step in the decision- making process?

A) Allocating weights to the criteria.
B) Implementing the alternative.
C) Analyzing the alternatives.
D) Selecting the best alternative.

Question 49

The final step in the decision- making process is to _ _.

A) pick the criteria for the next decision
B) evaluate the outcome of the decision
C) reevaluate the weightings of the criteria until they indicate the correct outcome
D) reassign the ratings on the criteria to find different outcomes

Question 50

In Step 6 of the decision- making process, each alternative is evaluated by appraising it against the .

A) implementation strategy
B) assessed values
C) criteria
D) subjective goals of the decision maker

Question 51

It is assumed that a perfectly rational decision maker .

A) does not follow rational assumptions
B) offers inconsistent decisions
C) does not consider value maximizing as an objective
D) would be objective and logical

Question 52

To determine the _, a manager must determine what is relevant or important to resolving the problem.

A) geocentric behavior needed
B) number of allowable alternatives
C) decision criteria
D) weighting of decision criteria

Question 53

When analyzing alternatives, what becomes evident?

A) The list of alternatives.
B) The strengths and weaknesses of each alternative.
C) The weighting of alternatives.
D) The problem.

Question 54

includes conveying a decision to those affected and getting their commitment to it.

A) Implementing the alternatives
B) Selecting an alternative
C) Evaluating the decision effectiveness
D) Analyzing alternatives

Question 55

What is the step where a decision maker wants to be creative in coming up with possible alternative?

A) analyzing alternatives
B) allocating weights to the criteria
C) identifying decision criteria
D) developing alternatives

Question 56

Which of the following is not a valid assumption about rationality?

A) The problem is clear and unambiguous.
B) Preferences are constantly changing.
C) A single, well- defined goal is to be achieved.
D) Preferences are clear.

Question 57

Which of the following is important in effectively implementing the chosen alternative in the decision- making process?

A) Allowing those impacted by the outcome to participate in the process.
B) Double- checking your analysis for potential errors.
C) Ignoring criticism concerning your chosen alternative.
D) Getting upper- management support.

Question 58

Selecting an alternative in the decision- making process is accomplished by .

A) choosing the one you like best
B) choosing the alternative with the highest score
C) selecting the alternative that is the most reliable
D) selecting the alternative that has the lowest price

Question 59

If all criteria in the decision are equal, weighting the criteria _ .

A) is not needed
B) improves the criteria
C) produces excellent decisions
D) improves decision making when large numbers of criteria are involved

Question 60

Managers can make rational decisions if _ .

A) the problem is ambiguous
B) the alternatives are limited
C) time constraints exist
D) the goals are unclear

Question 61

Structured problems align well with which type of decision making?

A) intuition
B) programmed
C) gut feeling
D) satisficing

Question 62

decision making is relatively simple and tends to rely heavily on previous solutions.

A) Nonprogrammed
B) Linear
C) Programmed
D) Satisficing

Question 63

When problems are , managers must rely on in order to develop unique solutions.

A) structured; nonprogrammed decision making
B) unstructured; programmed decision making
C) structured; pure intuition
D) unstructured; nonprogrammed decision making

Question 64

A procedure _.

A) is an explicit statement detailing exactly how to deal with a decision
B) allows a manager to use broad decision- making authority
C) is a set of guidelines that channel a manager's thinking in dealing with a problem
D) is a series of interrelated sequential steps to respond to a structured problem

Question 65

When a decision maker chooses an alternative under perfect rationality, she her decision, whereas under bounded rationality she chooses a decision.

A) maximizes; minimizing
B) minimizes; satisficing
C) satisfices; maximizing
D) maximizes; satisficing

Question 66

A business school's statement that it "strives for productive relationships with local organizations" is an example of a .

A) policy
B) commitment
C) procedure
D) rule

Question 67

are straightforward, familiar, and easily defined.

A) Unique problems
B) Nonprogrammed problems
C) Structured problems
D) Unstructured problems

Question 68

Unstructured problems _ _.

A) present familiar circumstances
B) are routine
C) force managers to deal with incomplete or ambiguous information
D) are easily solved

Question 69

Lower- level managers typically confront what type of decision making?

A) unique
B) programmed
C) nonprogrammed
D) nonroutine

Question 70

A policy .

A) allows little discretion on the part of the manager
B) is used frequently when a manager faces a structured problem
C) typically contains an ambiguous term
D) offers strict rules as to how a problem should be solved

Question 71

Nonprogrammed decisions are best described as .

A) requiring more aggressive action on the decision maker's thought processes
B) unique and nonrecurring
C) very similar to problems in other areas of the organization
D) recurring, but difficult to make

Question 72

All of the following are aspects of intuition except .

A) affect- initiated decisions
B) experienced- based decisions
C) programmed decisions
D) cognitive- based decisions

Question 73

A _ _ typically contains an ambiguous term that leaves interpretation up to the decision maker.

A) rule
B) solution
C) policy
D) system

Question 74

Which of the following is a difference between a policy and a rule?

A) A policy is more explicit.
B) A policy establishes parameters.
C) A rule is more ambiguous.
D) A rule establishes parameters.

Question 75

Which of the following is likely to make the most programmed decisions?

A) The head of one major division of Orascom Construction Industries
B) The executive vice president of Hikma Pharmaceutical Company
C) The manager of the local McDonald's
D) The CEO of Aramco.

Question 76

The type of decision making in which the solution is considered "good enough" is known as .

A) satisfying
B) intuition
C) maximizing
D) satisficing

Question 77

A _ is an explicit statement that tells a manager what he or she can or cannot do.

A) solution
B) policy
C) procedure
D) rule

Question 78

Intuitive decision making is .

A) a conscious process based on accumulated judgment
B) making decisions based on experience, feelings, and accumulated judgment
C) important in supporting escalation of commitment
D) not utilized in organizations

Question 79

In studying intuitive decision making, researchers have found that .

A) managers do not make decisions based on feelings or emotions
B) accumulated experience does not support intuitive decisions
C) rational thinking always works better than intuitive
D) managers use data from their subconscious mind to help make their decisions

Question 80

An increased commitment to a previous decision despite evidence that it may have been wrong is referred to as .

A) escalation of commitment
B) economies of commitment
C) dimensional commitment
D) expansion of commitment