Deck 2: Decision Making

Question 1

After identifying a problem, the next step in the decision-making process is ________.

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

Answer 1

A

Question 2

In the decision-making process, while ________, the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it.

A) selecting an alternative
B) evaluating a decision's effectiveness
C) implementing an alternative
D) analyzing alternatives

Answer 2

C

Question 3

Creativity is most essential in which of the following steps of the decision-making process?

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

Answer 3

C

Question 4

When the overhead cranes crashed into each other for the third time, Joe formed a team to look into ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of which might work. The team has completed which step in the decision-making process?

A) develop alternatives
B) analyze alternatives
C) select an alternative
D) implement an alternative

Question 5

Amanda, a single parent, is looking for a new job. Considering that she has two school-aged children, she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting. In terms of the decision-making process, these represent Amanda's ________.

A) decision criteria
B) problems
C) alternatives
D) heuristics

Question 6

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

A) evaluating each alternative by using the established criteria
B) being creative while implementing the alternatives
C) allowing those impacted by the outcome to participate in the process
D) ignoring criticism concerning your chosen alternative

Question 7

Ridership on the city's public transportation buses has fallen for three weeks in a row. This is ________.

A) a problem
B) a symptom
C) neither a problem nor a symptom
D) a condition, but we need more information to determine whether it is a problem or a symptom.

Question 8

Belinda wants to introduce a new model to the product line. Three models are being developed. Belinda can choose only one. She has decided to focus on target market size, production costs, and net profits. These are Belinda's ________.

A) alternatives
B) criterion weights
C) decision criteria
D) problems

Question 9

Before actually putting the decision into action, the decision-maker may find it prudent to ________.

A) develop the method of evaluating whether the decision is a good one
B) notify upper management that change is coming so they won't be blindsided
C) alert external stakeholders that the problem has been solved
D) check to make sure the conditions that existed at the time of the decision still exist, and make sure the decision is still the best one

Question 10

After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

A) allocating weights to the criteria
B) analyzing the alternatives to solving the problem
C) reducing the number of criteria through the process of elimination
D) implementing the alternative

Question 11

Bryan must select a new supplier for lighting fixtures for his company's mobile homes. He has decided quality is more important than price but price is more important than lead times. Bryan will use these priorities to ________.

A) analyze alternatives
B) set his decision criteria
C) allocate weights to the criteria
D) develop alternatives

Question 12

Sales of the high-end units have declined. The owners want Arnold, the CEO, to increase revenues to previous levels. His first action should be ________.

A) to identify previous sales levels
B) to determine why sales are off
C) to compare costs for three new models under development
D) to immediately begin production on the lowest cost model

Question 13

Carla is searching the Internet for sources of Himalayan salt to make bath salts. Carla is at the ________ step in the decision making process.

A) identify-the-problem
B) identify-decision-criteria
C) allocate-weights
D) develop-alternatives

Question 14

Carla discovered that the supplier with the highest quality also had the longest lead time. The supplier with the best lead time had the highest price. To help Carla make her decision, she should ________.

A) order a small quantity from each supplier for comparison
B) rely on customer reviews to guide her decision
C) multiply her ratings for each criteria by the weight for the criteria then sum the scores
D) check with the Better Business Bureau for customer complaints

Question 15

After Abby listened to the weather report this morning before work, she drove her car and carried an umbrella instead of riding her motorcycle. Whether she realizes it or not, Abby ________.

A) analyzed criteria
B) implemented a decision
C) assigned weights to criteria
D) evaluated a decision

Question 16

Carla has identified several possible sources for Himalayan salt to make her bath salts. Now she is comparing their prices, quality, and delivery times. At what step is she in the decision-making process?

A) develop alternatives
B) analyze alternatives
C) select an alternative
D) implement the alternative

Question 17

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

A) bounded rationality of a decision
B) escalation of commitment
C) cost of implementation
D) decision criteria

Question 18

Which of the following statements is true concerning problem identification?

A) Problems are generally obvious.
B) A symptom and a problem are one and the same.
C) Generally, what is a problem for one manager is a problem for all other managers.
D) Effectively identifying problems is not easy.

Question 19

A problem can best be described as ________.

A) a change from the past
B) something bad that has happened
C) a difference between current conditions and some desired state
D) a loss of something of value

Question 20

Max is planning to go away to college next year and is currently trying to figure out to which colleges he should apply. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decision-making process, these represent Max's ________.

A) problems
B) alternatives
C) decision criteria
D) heuristics

Question 21

Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must handle a minimum of 10,000 copies per month and have a useful life expectancy of five years. If Abigail selects the first copier she finds that meets these criteria, we would say she is ________.

A) using perfect rationality
B) using bounded rationality
C) using intuition
D) satisficing

Question 22

Managers are assumed to use ________ if they make logical and consistent choices to maximize value.

A) rational decision making
B) intuitive decision making
C) bounded rationality
D) evidence-based management

Question 23

Dylan must choose among four candidates to fill his open accounting clerk position. If Dylan uses rational decision making, he will ________.

A) disregard the fact the one of the candidates is the owner's nephew
B) rely on his initial impressions of the candidates to make this decision
C) base his decision on his extensive experience and accumulated judgment
D) involve others in the interviewing process

Question 24

List and discuss the eight steps in the decision-making process.

Question 25

Joe's team implemented one of the ideas to avoid crane crashes. It is important for the team to evaluate the results because ________.

A) the team was not sure their idea would work
B) the team wants to impress the plant manager
C) results may vary from expectations
D) another crane crash could cost the team their jobs

Question 26

A decision criterion defines what is important or relevant to resolving a problem.

Question 27

It is assumed that a rational decision maker ________.

A) faces unclear and ambiguous problems
B) is unlimited by his or her ability to process information
C) is unaware of all the possible alternatives and consequences
D) is fully objective and logical

Question 28

Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor. Unfortunately the new hire hasn't worked out as well as hoped. Edgar decided to invest time and money in training for the new hire but saw little improvement. Next he assigned a successful supervisor to mentor the young employee. The problems persisted. Edgar is displaying ________.

A) bounded rationality
B) irrational behavior
C) poor judgment
D) escalation of commitment

Question 29

Evelyn's Internet search for information about "vendor for machine screws" yielded more than 100,000 items. Evelyn did not have time or resources to pursue each of these so she limited her search to only vendors in her state. By doing this, Evelyn used ________.

A) perfect rationality
B) bounded rationality
C) satisficing
D) intuition

Question 30

In the decision-making process, after allocating weights to the decision criteria, the decision maker lists viable alternatives that could resolve the problem.

Question 31

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

A) determine the criteria for the next decision
B) analyze the process of allocating weights to the decision criteria
C) evaluate the outcome of the decision
D) implement the chosen alternative

Question 32

Once the alternatives to solving a problem have been identified, the next step in the decision-making process is selecting one of these alternatives.

Question 33

The decision-making process begins by identifying decision criteria.

Question 34

Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________.

A) using his intuition
B) using bounded rationality
C) using perfect rationality
D) satisficing

Question 35

Managers cannot possibly analyze all information on all alternatives; they tend to ________, rather than ________.

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

Question 36

Julie is keen on joining Columbia University to pursue a master's degree in economics. However, after three months of applying and waiting for an acceptance letter, she finally decides to attend NYU, which was one of her backup colleges. This is an example of ________.

A) maximizing
B) neutralizing
C) minimizing
D) satisficing

Question 37

Gilda has an idea that would streamline operations, reduce costs, and increase profits. Her idea requires the cooperation of several departments, some of which have demonstrated a resistance to change. By considering the context in which the changes must happen and the people in her organization, Gilda is using ________.

A) evidence-based management
B) bounded rationality
C) intuition
D) positive employee relations

Question 38

Implementing an alternative refers to the process of choosing the best alternative.

Question 39

When managers make decisions that are rational but limited by their ability to process the information, they are following the concept of ________.

A) cognitive decision making
B) bounded rationality
C) escalation of commitment
D) intuitive decision making

Question 40

________ results in a solution that is considered "good enough."

A) Escalating
B) Linear thinking
C) Intuition
D) Satisficing

Question 41

Give an example of the use of bounded rationality. The example can be fictitious as long as it includes all the elements of bounded rationality.

Question 42

A(n) ________ decision is a repetitive decision that can be handled by a routine approach.

A) nonprogrammed
B) structured
C) unstructured
D) programmed

Question 43

________ are straightforward, familiar, and easily defined.

A) Programmed problems
B) Structured problems
C) Non-structured problems
D) Nonprogrammed problems

Question 44

Intuitive decision making ________.

A) is the systematic use of the best available evidence to improve decision making practice
B) generally results in poor decisions and hence managers should learn to ignore their gut feelings
C) is the process of making decisions based on experience, feelings, and accumulated judgment
D) complements rational decision making but not bounded rational decision making

Question 45

Give an example of evidence-based management. Remember to include all of the essential elements.

Question 46

Garrett looked at the list of orders for the coming week and made out the production schedule. He has done this so many times he could do it in his sleep. This situation represents a(n) ________.

A) structured problem
B) unstructured problem
C) linear problem
D) programmed problem

Question 47

Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________.

A) perfect rationality
B) bounded rationality
C) evidence-based management
D) relationship management

Question 48

Which of the following is an aspect of intuition?

A) experience-based decisions
B) quality-initiated decisions
C) science-based decisions
D) programmed decisions

Question 49

Structured problems align well with which type of decisions?

A) programmed
B) analogous
C) organic
D) nonlinear

Question 50

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

Question 51

Managers use decision-making in every function, from planning to controlling.

Question 52

When making a decision for a routine situation, which step in the decision making process can be skipped?

A) identify the problem
B) evaluate decision effectiveness
C) develop alternatives
D) implement the alternative

Question 53

It is important that decision-makers ignore emotions when making business decisions so their decisions will be perceived as rational.

Question 54

According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.

Question 55

What is meant by bounded rationality and satisficing?

Question 56

Briefly, discuss the assumptions of rationality and the validity of those assumptions.

Question 57

Harriet's machine has stopped working again. She consulted the operator's manual troubleshooting guide to find a solution. Harriet used a ________.

A) programmed decision
B) non-programmed decision
C) structured decision
D) non-structured decision

Question 58

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

Question 59

What is intuitive decision making? How does intuition affect the process of making a decision?

Question 60

Intuitive decision making complements rational decision making but not bounded rational decision making.

Question 61

A procedure is ________.

A) an explicit statement that tells a manager what can or cannot be done
B) a series of sequential steps a manager uses to respond to a structured problem
C) used mainly for unstructured, rather than structured, problems
D) subject to the interpretation of the decision maker

Question 62

First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems.

A) unstructured; structured
B) routine and repetitive; unusual and difficult
C) interpersonal; customer
D) machine-related; interpersonal

Question 63

________ is a situation in which a decision maker cannot make reasonable probability estimates.

A) Necessity
B) Risk
C) Uncertainty
D) Certainty

Question 64

What is the psychological orientation of a decision maker who makes a "maximin" choice?

A) optimist
B) realist
C) pessimist
D) idealist

Question 65

The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures. The store manager is operating under which of the following decision-making conditions?

A) uncertainty
B) risk
C) structure
D) certainty

Question 66

________ is a situation in which a manager has the ability to make accurate decisions because the outcome of every alternative is known.

A) Certainty
B) Risk
C) Bureaucracy
D) Contingency

Question 67

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

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

Question 68

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

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

Question 69

"Smoking and the consumption of alcohol are strictly prohibited inside the work Premises." This is most likely an example of a(n) ________.

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

Question 70

Lower-level managers typically confront ________.

A) unstructured problems
B) new and unusual problems
C) programmed decisions
D) nonprogrammed decisions

Question 71

"We expect to maintain the highest standards of quality in our workmanship." This is an example of ________.

A) a procedure
B) a rule
C) a policy
D) a practice

Question 72

Nonprogrammed decisions ________.

A) involve standardized solutions
B) are usually made by lower-level managers
C) are associated with clear and specific goals
D) are unique and nonrecurring

Question 73

After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine the cause. Some say the entire economy is in recession; others blame a change in suppliers; still others say the work ethic among employees just isn't what it used to be. This is an example of ________.

A) a structured problem
B) an unstructured problem
C) a programmed problem
D) a non-programmed problem

Question 74

Unstructured problems ________.

A) refer to the usual problems faced by organizations
B) are generally solved using procedures, rules, and policies
C) are accompanied by ambiguous or incomplete information
D) do not require the decision maker to go through an involved decision process

Question 75

Ian is a plant manager in a multi-site corporation. He frequently deals with situations involving new customers and new products. These are often ________.

A) non-linear problems and risky decisions
B) structured problems and programmed decisions
C) uncertain problems and linear decisions
D) unstructured problems and nonprogrammed decisions

Question 76

It is time for Jane to order laminated plywood again. She typically orders from one of three vendors. She knows the price, delivery time, and quality of each vendor. In this situation, Jane has ________.

A) certainty
B) uncertainty
C) risk
D) structure

Question 77

One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department issued a set of instructions Henry must follow to initiate the search for candidates. In other words, there is a ________ Henry must follow.

A) policy
B) practice
C) procedure
D) program

Question 78

A policy ________.

A) typically serves as a guideline for decision making by setting general parameters
B) specifically states what should or should not be done
C) is a series of sequential steps a manager uses to respond to a structured problem
D) is used when dealing with unstructured problems and non-programmed decisions

Question 79

A(n) ________ is an explicit statement that tells a manager what can or cannot be done.

A) agenda
B) objective
C) rule
D) solution

Question 80

"All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of ________.

A) a policy
B) a procedure
C) a practice
D) a rule