Deck 12: Decision Making, Learning, Knowledge Management, and Information Technology

Question 1

The rational model ignores all except .

A)certainty
B)uncertainty
C)ambiguity
D)chaos

Answer 1

A

Question 2

Culture is important to organizational learning because it emphasizes .

A)building shared vision
B)vertical integration
C)centralized decision- making
D)empowerment

Answer 2

A

Question 3

The incrementalist model is most appropriate for which of the following organizations?

A)A pharmaceutical company that is complex because it has many groups of stakeholders
B)A dominant manufacturer of Pampers for babies that operates in a stable environment
C)A biotechnology company that operates in a dynamic environment
D)A computer company that operates in a very competitive environment

Answer 3

B

Question 4

Bill Gates used the Garbage Can model of decision- making when examining which decision?

A)How to redesign Windows to compete better with Oracle
B)How to combat the antitrust legislation
C)How to develop a system to compete with Apple computer
D)How to compete with Netscape

Question 5

A study of how hospitals in California responded to a doctors' strike indicated that hospitals that managed the strike more easily had:

A)an organic structure.
B)an escalation of commitment.
C)an incremental approach to decision- making.
D)centralized decision- making.

Question 6

Which of the following models of decision- making is used the least?

A)Rational model
B)Garbage can model
C)Unstructured model
D)Carnegie model

Question 7

A marketing manager championed expansion into Eastern Europe, but sales failed to materialize. Instead of recommending exiting from that market, he or she insisted that growth would occur. This is an example of which of the following cognitive biases?

A)Projection
B)Ego- defensiveness
C)Frequency
D)Cognitive dissonance

Question 8

Satisficing occurs when decision makers:

A)select a good alternative instead of continuing to search for the optimal choice.
B)select the first alternative that comes along.
C)select a few alternatives that differ only slightly from the status quo.
D)begin with a solution instead of a problem.

Question 9

Culture and structure are tools used for the purpose of promoting organizational learning. These tools are used at which of the following levels?

A)Individual, group, division, and organization
B)Division and organization
C)Individual, group, organization, and interorganization
D)Organization and interorganization

Question 10

Which type of interdependence promotes group level learning?

A)Reciprocal
B)Pooled
C)Sequential
D)Complex mental models

Question 11

Which of the following are the two types of organizational learning according to March?

A)Explorative and structured
B)Incremental and radical
C)Exploitative and radical
D)Explorative and exploitative

Question 12

Paul manages the Buick division at GM, and Joan oversees the Pontiac division at GM. Paul views the environment as hostile and uncertain. Joan views the environment as stable and sees many opportunities. What is likely the cause of this difference in perspective?

A)Differences in intellectual capabilities
B)Differences in organizational learning
C)Differences in cognitive structures
D)Differences in organizational capabilities

Question 13

The garbage can model proposes all of the following except:

A)different coalitions support different alternatives.
B)chance and timing are important factors in decision- making.
C)decision- making can begin with a solution as well as with a problem.
D)an organization should focus on improving programmable decisions.

Question 14

The conformity that emerges when like- minded people reinforce the tendency to interpret events and information in similar ways. This is called .

A)experimenting
B)groupthink
C)rational decision- making
D)devil's advocacy

Question 15

Testing new ways to serve the customer or manufacture a product is a strategy for organizational learning called .

A)garbage can approach
B)escalation of commitment
C)groupthink
D)experimenting

Question 16

If an organization wants to foster exploitative learning, it should implement a(n)structure.

A)organic
B)network organization
C)product team
D)mechanistic

Question 17

Managers have to unlearn old ideas and test decision- making skills by not:

A)listening to good news and suppressing bad news.
B)converting events into learning opportunities.
C)encouraging diversity.
D)listening to dissenters.

Question 18

In the _ model, managers select actions slightly different from past actions.

A)Carnegie
B)rational
C)incrementalist
D)Garbage can

Question 19

A is a person who is responsible for critiquing ongoing organizational learning.

A)team leader
B)mentor
C)CEO
D)devil's advocate

Question 20

Organizational learning needs to be encouraged at what four levels?

A)group, division, organization, and interorganization
B)individual, division, organization, and interorganization
C)individual, group, organization, and interorganization
D)individual, group, division, and organization

Question 21

Sam is a manager of a fast- food restaurant that serves only hamburgers and french fries. He fails to realize changes in the environment, such as a trend toward health consciousness. He continues to limit his menu to greasy burgers and states that customers will return when the weather gets better. Which cognitive bias does Sam have?

A)Projection
B)Frequency
C)Representativeness
D)Cognitive dissonance

Question 22

The incrementalist model of decision- making:

A)stresses the impact of chance and timing on decision- making.
B)tries to improve programmed decision- making.
C)involves selecting the most optimal alternative.
D)assumes that managers can predict trends.

Question 23

Systems thinking:

A)focuses on using AIT to facilitate learning among network members.
B)states that structure, culture, and strategy must match to foster organizational learning.
C)states that each level of learning affects other levels.
D)suggests that companies substitute information systems for the hierarchy to transmit information.

Question 24

A customer wants to return a shirt that is too small to a national retail store. The retail manager will most likely make a:

A)nonprogrammed decision by following the company's refund policy.
B)nonprogrammed decision by using judgment to decide whether or not to give a refund.
C)programmed decision by following the company's refund policy.
D)programmed decision by using judgment to decide whether or not to give a refund.

Question 25

When managers have an illusion of control bias, they often:

A)implement a collateral structure.
B)centralize decision- making authority.
C)decentralize decision- making authority.
D)promote mutual adjustment.

Question 26

The Carnegie model of decision- making assumes all of the following except:

A)decision- making is costly.
B)the organization is an organized anarchy.
C)managers satisfice.
D)decisions are made by negotiations among coalitions.

Question 27

Escalation of commitment is a cognitive bias that is reinforced by which approach to decision- making?

A)Unstructured
B)Incrementalist
C)Rational
D)Garbage can

Question 28

Which of the following is not a cognitive bias?

A)Projection
B)Frequency
C)Illusion of control
D)Resonance

Question 29

In the type of top- management team known as the wheel configuration,

A)effectiveness is increased.
B)complex problems are solved quickly.
C)effectiveness is decreased.
D)top managers from different functions interact.

Question 30

Which of the following is not one of the levels of organizational learning?

A)Intra- individual
B)Interorganizational
C)Individual
D)Organizational

Question 31

Game theory utilizes all of following concepts except .

A)probabilities
B)simultaneous moves
C)sequential moves
D)knowledge management

Question 32

A manager at an automobile plant had two suppliers that delivered defective parts. He or she now thinks that all suppliers are unreliable. This is an example of which of the following cognitive biases?

A)Projection
B)Illusion of control
C)Representativeness
D)Escalation of commitment

Question 33

When an organization sets up a parallel organizational structure to shadow the decision making and actions of managers they have established a .

A)Devil's Advocate
B)Peer Review Process
C)Dialectical Organization
D)Collateral Organization

Question 34

A CEO thinks that he or she is the only person who can oversee global expansion. This CEO has which of the following cognitive biases?

A)Ego- defensiveness
B)Illusion of control
C)Cognitive dissonance
D)Projection

Question 35

What was the primary mistake that most of the Egrocer organizations made that caused them to fail?

A)They didn't forecast how the competitors would respond.
B)They relied on rational decision- making.
C)They didn't have expertise in distribution or delivery.
D)They failed to acquire the latest technology.

Question 36

The Carnegie model recognizes that much of decision- making is/does not:

A)based on all alternatives.
B)rely on intuition.
C)subjective.
D)rely on past experience.

Question 37

The system of interrelated beliefs, preferences, expectations, and values is structure.

A)personal
B)affective
C)behavioral
D)cognitive

Question 38

A large retail store has a high level of organizational inertia. Managers and employees are highly resistant to change. Which of the following is most likely to encourage organizational learning and improve the quality of decision- making?

A)Experimenting with new ideas
B)Listening to dissenters
C)Replacing the top- management team
D)Adopting a mechanistic structure

Question 39

After World War II, Sears thought consumers would spend, whereas Montgomery Ward thought consumers would save. This is an example of:

A)the influence of cognitive structure.
B)the influence of group decision- making.
C)the influence of affective behavior.
D)the effect of historical forces.

Question 40

Senge recommends using examples of mental models at the level of organizational learning.

A)division
B)individual
C)group
D)organization

Question 41

Which of the following is an assumption of the Carnegie model of decision- making?

A)Managers agree about what an organization's most important goals are.
B)Managers make changes that are only slightly different from existing procedures.
C)Managers have all the information necessary to make decisions.
D)Managers select a limited range of alternatives.

Question 42

Devil's advocacy:

A)entails combining many plans into a final plan.
B)requires a collateral organizational structure.
C)hurts organizational effectiveness.
D)can reduce the problems associated with an incrementalist approach to decision- making.

Question 43

Which of the following models of decision- making is the most unrealistic?

A)Garbage can model
B)Rational model
C)Carnegie model
D)Unstructured model

Question 44

When GE was deciding whether to make or buy washing machines, which of the following models of decision- making did it use?

A)Rational
B)Incrementalist
C)Unstructured
D)Carnegie

Question 45

The cognitive bias that causes individuals to blame others for problems is .

A)representativeness
B)frequency
C)projection
D)cognitive dissonance

Question 46

In developing a knowledge management system, managers want to provide managers more with information on "who to go to" to solve a specific problem rather than describing the steps to solve a problem. They want to do this because most of their problems are too complex to rely on standard procedures. They are using a:

A)systems thinking approach.
B)learning organization approach to management.
C)personalization system of knowledge management.
D)codification system of knowledge management.

Question 47

Dialectic inquiry:

A)decreases the quality of decision- making.
B)is a theoretical term for devil's advocacy.
C)involves creating a final plan out of many plans proposed by various teams.
D)requires replacing the top- management team.

Question 48

Cultures that are cautious and conservative and avoid risks are .

A)dominant
B)adaptive
C)strong
D)inert

Question 49

Total Quality Management is an example of learning.

A)structured
B)radical
C)explorative
D)exploitative

Question 50

An organized anarchy is a characteristic of which of the following models of decision- making?

A)Unstructured
B)Incrementalist
C)Garbage can
D)Carnegie

Question 51

Bill Gates used which type of decision- making technique in order to decide how to compete with Netscape?

A)Garbage can
B)Rational
C)Carnegie
D)Bounded rational

Question 52

A collateral organizational structure:

A)is tall and highly centralized.
B)is a formal backup plan that can be used when managers refuse to cooperate.
C)is useful for making programmed decisions but not for making nonprogrammed decisions.
D)is a group of informal managers who evaluate decisions made in the formal organization.

Question 53

Which of the following is not considered in the Carnegie model?

A)The effects of bounded rationality
B)The effects of satisficing
C)The effects of cognitive biases
D)The effects of coalitions

Question 54

All of the following can improve the quality of an organization's decision- making except:

A)devil's advocacy.
B)engaging in groupthink.
C)listening to dissenters.
D)maintaining a diverse top- management team.

Question 55

In the type of top- management team known as the circle configuration, it is not true that:

A)communication takes less time.
B)organizational learning is decreased.
C)complex problems are solved quickly.
D)top managers from different functions interact.

Question 56

An organization establishes a collateral structure for all of the following reasons except:

A)to establish a formal organization.
B)to improve decision- making.
C)to improve the ability to learn.
D)to adjust to new situations.

Question 57

To improve organizational learning, top managers should:

A)surround themselves with yes- men.
B)control the agenda.
C)listen to dissenters.
D)narrow the amount of information presented.

Question 58

Which model of decision- making was developed by Henry Mintzberg?

A)Garbage can
B)Incrementalist
C)Rational
D)Unstructured

Question 59

Which of the following is an example of explorative learning?

A)A supplier implements a TQM program
B)A shoe manufacturer implements a network organization
C)A computer company uses the Garbage can model for making decisions
D)A steel mill refines its production processes

Question 60

At 3M product managers submit ideas to a committee that challenges the size of the market or the cost of manufacturing. This approach is called .

A)dialectic inquiry
B)rational approach
C)unstructured approach
D)devil's advocacy

Question 61

Developing a learning organization includes all except:

A)developing a commitment to work.
B)developing a taste for risk- taking.
C)making programmed decisions.
D)feeling attached to a job.

Question 62

A(n)structure promotes explorative learning.

A)mechanistic
B)product team
C)network organization
D)organic

Question 63

Team learning is more important than individual learning because:

A)most important decisions are made in groups.
B)groups are less effective.
C)only minor decisions are made in groups.
D)top management makes strategic decisions.

Question 64

Senge encourages workers to develop a sense of personal mastery by:

A)using procedures and rules.
B)referring decisions to supervisors.
C)repeating a single task.
D)cross- training to perform different tasks.

Question 65

A cognitive bias that leads managers to remain committed to a losing course of action and not admit mistakes is _.

A)escalation of commitment
B)cognitive dissonance
C)representativeness
D)projection

Question 66

A software engineer discovers a new operating system and presents his or her idea to management. The engineering function lobbies for commercialization of the product, and management agrees to find ways to market it. Meanwhile, the marketing department is trying to advertise existing products, and the finance department states advertising expenses need to be reduced. What decision- making model is this organization using, and how does it differ from the traditional model of decision- making?

Question 67

In developing a knowledge management system, managers want to provide managers with a step by step procedure on how to solve problems. They want to do this because most of their problems are recurring events, and standard procedures work well. They are using a:

A)codification system of knowledge management.
B)personalization system of knowledge management.
C)learning organization approach to management.
D)systems thinking approach.

Question 68

According to Kotter and Heskett, organizational learning is higher in cultures.

A)adaptive
B)inert
C)conservative
D)innovative

Question 69

The rational model of decision- making assumes all of the following except:

A)managers operate in an uncertain environment.
B)managers have the ability to evaluate all alternatives and select the best one.
C)managers can access all the information they need.
D)managers agree about what an organization's most important goals are.

Question 70

Which of the following would Peter Senge consider to be the most important level of organizational learning?

A)Organizational
B)Team
C)Inter- organizational
D)Individual

Question 71

A new CEO of a large manufacturing company has noticed that although he or she has emphasized the importance of organizational learning, little learning has occurred. What steps can be taken at the various levels in this company to foster learning?

Question 72

The rational model assumes that decision- makers have bounded rationality.

Question 73

The unstructured model of decision- making is characterized by all of the following except:

A)it recognizes three stages of decision- making: identification, development, and selection.
B)it is appropriate when uncertainty is high.
C)decision makers rethink their alternatives when they encounter obstacles.
D)it concentrates on programmed decisions.

Question 74

A large restaurant chain notices that many bad decisions have been made. For example, various restaurants are complaining about their lack of freedom to tailor menus to local tastes. The corporate marketing vice president insists on making all decisions. The company also expanded into Mexico, where it has done poorly, but the company refuses to exit. What are some reasons for these bad decisions, and what can the company do to improve organizational learning?

Question 75

Nystrom and Starbuck suggest that all of the following impede new learning except .

A)nonprogrammed decisions
B)cognitive structures
C)past learning
D)"weathering the storm strategies"

Question 76

Organizational learning is the process that enables an organization to adapt to its environment.

Question 77

If a company needs a high level of coordination among group members,

A)it is better for top- management team members to have similar backgrounds.
B)top management should be organized in a circle configuration.
C)it is better for top- management membership to continuously change.
D)top management should be organized in a wheel configuration.

Question 78

The incrementalist model concentrates on how to improve nonprogrammed decision- making.

Question 79

A programmed decision is one in which a computer program is used to develop alternatives.

Question 80

Bill Gates used a bounded- rational approach in determining how to compete with Netscape's browser.