Question 1

Which distinction should be made between different types of decisions made in organizations?&#10;A)Programmed versus structured decisions&#10;B)Programmed versus non-programmed decisions&#10;C)Structured versus spontaneous decisions&#10;D)Subliminal versus unstructured decisions

Accepted Answer

Programmed decisions are routine and repetitive, often with a defined procedure for handling them, while non-programmed decisions are unique and require custom solutions, often in response to unpredictable or novel situations.

Question 2

Vagueness, poor structure, and newness are characteristics of:&#10;A)Structured decisions&#10;B)Spontaneous decisions&#10;C)Non-programmed decisions&#10;D)Subliminal decisions

Accepted Answer

Non-programmed decisions are characterized by vagueness, poor structure, and newness, as they are made in response to situations that are novel, poorly defined, and unstructured, requiring a custom-made solution.

Question 3

Which of the following is not a step in the nine-step decision cycle?&#10;A)Choose&#10;B)Diagnose&#10;C)Define&#10;D)Initiate

Accepted Answer

The nine-step decision cycle includes steps such as Define, Diagnose, and Choose, but does not include Initiate as a step. Initiate is more related to the beginning of a project or process rather than a step within the decision-making cycle itself.

Question 4

In the econological model, the resultant decision is considered to be:&#10;A)Based on rationality&#10;B)Taken in the most efficient manner&#10;C)The most profitable for the organization&#10;D)Only an indication of which decision would be best for an organization

Accepted Answer

The resultant decision in the econological model is considered to be based on rationality, as it is assumed that the decision-maker has perfect information and will make the decision that maximizes their utility.

Question 5

Which of the following is not a main process of the bounded rationality model?&#10;A)Consideration of alternative solutions in a sequential fashion&#10;B)Use of heuristics to identify the most promising alternatives&#10;C)Satisficing&#10;D)Application of contingency models

Accepted Answer

The bounded rationality model, proposed by Herbert Simon, does not include the application of contingency models as a main process. It focuses on how decision-makers consider alternatives sequentially, use heuristics to simplify decision-making, and seek satisfactory solutions rather than optimal ones, due to cognitive limitations and time constraints.

Question 6

Which decision bias represents a good example of selective perception?&#10;A)Hindsight bias&#10;B)Over-confidence bias&#10;C)Confirmation bias&#10;D)None of these

Accepted Answer

Confirmation bias is a type of selective perception where individuals tend to favor information that confirms their preconceptions or hypotheses, regardless of whether the information is true. They may also seek out, interpret, and remember information in a way that confirms their beliefs, while ignoring or dismissing information that contradicts them.

Question 7

Intuition is:&#10;A)Irrational&#10;B)Likely to overrule systematic analysis&#10;C)Likely to complement systematic analysis&#10;D)An admission of failure

Accepted Answer

Intuition can complement systematic analysis by providing insights that are not immediately obvious through analytical methods alone. It can help in making decisions or generating ideas that are informed by experience and subconscious understanding, thus working alongside systematic analysis rather than against it or as a sign of failure.

Question 8

The implicit favourite model postulates the view that:&#10;A)Individuals solve complex problems by simplifying the decision process&#10;B)Individuals tend to choose a favourite alternative late in the decision process&#10;C)Decisions are fully based on rationalization&#10;D)None of these

Accepted Answer

The implicit favourite model suggests that individuals often simplify complex decision-making processes by identifying a preferred option early on, which then serves as a benchmark against which other options are evaluated. This approach helps in managing the complexity and cognitive load of the decision-making process.

Question 9

The phenomenon that heavy reliance is based on personal judgement even when useful information is available is referred to as:&#10;A)Simplification&#10;B)Subjective rationality&#10;C)Limitation&#10;D)The over-confidence effect

Accepted Answer

Subjective rationality refers to the tendency of individuals to rely heavily on their own judgment or intuition, even when objective, useful information is available that could lead to a better decision. This phenomenon highlights how personal biases and perceptions can influence decision-making processes.

Question 10

Persisting in an ineffective course of action is referred to as:&#10;A)Rationalization&#10;B)Escalation of commitment&#10;C)Regret avoidance&#10;D)Narrow framing

Accepted Answer

Escalation of commitment refers to the phenomenon where individuals or organizations continue to invest time, money, or effort into a failing course of action due to the substantial resources already committed rather than altering or abandoning their course.

Question 11

Investor psychology is associated with:&#10;A)Subjective rationality&#10;B)Prospect theory&#10;C)Regret theory&#10;D)All of these

Accepted Answer

The answer of Investor psychology is associated with:&#10;A)Subjective rationality&#10;B)Prospect theory&#10;C)Regret...

Question 12

Adler refers to five steps in the decision-making process that ought to be considered in the context of culture. Which of the following is not one of them?&#10;A)Problem recognition&#10;B)Construction of alternatives&#10;C)Implementation&#10;D)Power distance

Accepted Answer

The answer of Adler refers to five steps in the...

Question 13

When someone concentrates on facts and precision, but does so in a way that high-lights human relations, that person has a:&#10;A)Intuition-sensation decision style&#10;B)Sensation-thinking decision style&#10;C)Sensation-feeling decision style&#10;D)Thinking-intuition decision style

Accepted Answer

The answer of When someone concentrates on facts and precision,...

Question 14

There is some evidence that maintains that the left brain is not much involved in:&#10;A)Analytical thinking&#10;B)Logical thinking&#10;C)Mathematical functions&#10;D)Synthesis

Accepted Answer

The answer of There is some evidence that maintains that...

Question 15

Innovators are more inclined to:&#10;A)Avoid routine work&#10;B)Wait to be handed a problem&#10;C)Modify existing systems&#10;D)Be seen as safe and dependable

Accepted Answer

The answer of Innovators are more inclined to:&#10;A)Avoid routine work&#10;B)Wait...

Question 16

In the creative process, obtaining information relevant to the problem or opportunity occurs in the:&#10;A)Insight stage&#10;B)Verification stage&#10;C)Immersion stage&#10;D)Problem recognition stage

Accepted Answer

The answer of In the creative process, obtaining information relevant...

Question 17

A technique used to enhance creativity is:&#10;A)Brainstorming&#10;B)Brainwashing&#10;C)Mind control&#10;D)None of these

Accepted Answer

The answer of A technique used to enhance creativity is:&#10;A)Brainstorming&#10;B)Brainwashing&#10;C)Mind...

Question 18

Important factors promoting innovations in organizations are:&#10;A)Management of creativity by suitably qualified managers&#10;B)Persistence and contributions from a number of quarters&#10;C)Sponsorship of creativity by managers supportive of innovation&#10;D)All of these

Accepted Answer

The answer of Important factors promoting innovations in organizations are:&#10;A)Management...

Question 19

There is evidence to indicate that creative people:&#10;A)Possess openness, which is a Big Five personality trait&#10;B)Are mentally flexible and display a tolerance for ambiguity&#10;C)Are self-confident risk-takers and independently minded&#10;D)All of these

Accepted Answer

The answer of There is evidence to indicate that creative...

Question 20

Creativity is said to be associated with:&#10;A)A particular type of brain activity&#10;B)MRI scans&#10;C)Innovation&#10;D)All of these

Accepted Answer

The answer of Creativity is said to be associated with:&#10;A)A...

Deck 7: Individual Decision Making and Creativity