Deck 6: Managers As Decision-Makers

Question 1

The ideal situation for making decisions is low risk.

Answer 1

False

Question 2

Managerial decision making is assumed to be rational.

Answer 2

True

Question 3

A decision criterion defines what is relevant in a decision.

Answer 3

True

Question 4

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

Question 5

Rational analysis and intuitive decision making are complementary.

Question 6

Problem identification is purely objective.

Question 7

Managers tend to operate under assumptions of bounded rationality.

Question 8

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

Question 9

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

Question 10

Making decisions is the essence of management.

Question 11

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

Question 12

Rules and policies are basically the same.

Question 13

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

Question 14

Programmed decisions tend to be repetitive and routine.

Question 15

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

Question 16

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

Question 17

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

Question 18

Most managerial decisions in the real world are fully nonprogrammed.

Question 19

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

Question 20

Managers regularly use their intuition in decision making.

Question 21

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 22

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

Question 23

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

Question 24

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

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

Question 25

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

Question 26

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

Question 27

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

Question 28

In identifying a problem, a manager ________.

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

Question 29

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

Question 30

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

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

Question 31

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

Question 32

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

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

Question 33

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

Question 34

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

Question 35

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

Question 36

Which of the following statements is true concerning problem identification?

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

Question 37

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

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

Question 38

Most managers have characteristics of linear thinking style decision makers.

Question 39

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

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

Question 40

Which of the following statements is incorrect?

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

Question 41

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

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

Question 42

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

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

Question 43

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

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

Question 44

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

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

Question 45

It is assumed that a perfectly rational decision maker ________.

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

Question 46

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

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

Question 47

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 may have to start the whole decision process over.
D) You will have to restart the decision-making process if the decision is less than 50 percent effective.

Question 48

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

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

Question 49

When analyzing alternatives, what becomes evident?

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

Question 50

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

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

Question 51

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) Getting upper-management support.
C) Ignoring criticism concerning your chosen alternative.
D) Double-checking your analysis for potential errors.

Question 52

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

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

Question 53

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

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

Question 54

Managers can make rational decisions if ________.

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

Question 55

Pseudo-consultation refers to ________.

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

Question 56

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

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

Question 57

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

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

Question 58

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

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

Question 59

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

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

Question 60

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

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

Question 61

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

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

Question 62

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

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

Question 63

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 64

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

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

Question 65

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

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

Question 66

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

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

Question 67

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

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

Question 68

Intuitive decision making is ________.

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

Question 69

Structured problems align well with which type of decision making?

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

Question 70

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

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

Question 71

________ are straightforward, familiar, and easily defined.

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

Question 72

A procedure ________.

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

Question 73

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

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

Question 74

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 75

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

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

Question 76

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

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

Question 77

Unstructured problems ________.

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

Question 78

Nonprogrammed decisions are best described as ________.

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

Question 79

A policy ________.

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

Question 80

In studying intuitive decision making, researchers have found that ________.

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