Deck 3: Critical Thinking for Managers

Question 1

Which of the following types of diagrams map out the structure of a system, showing how the components of a system interact with each other and allowing managers to visualize discrepancies and make decisions?

A)Iterative loop
B)Reticulated loop
C)Dominant loop
D)Causal loop

Answer 1

D

Question 2

The concept that any change to a system, whether from external forces or from intentional decisions, takes time to have an effect, is referred to as which of the following?

A)Spacing effects
B)Continuity
C)Delay
D)Incrementality

Answer 2

C

Question 3

A student examining a diagram of her bank account over time to identify discrepancies between the desired account level and the actual level in order to make adjustments in spending or earnings to reduce this discrepancy is a good example of which of the following?

A)Behavior over time diagram
B)Stock and flow diagram
C)Personal financial diagram
D)Cash flow diagram

Answer 3

A

Question 4

The "Shifting the Burden" systems archetype occurs when:

A)Aa period of rapid growth due to a reinforcing feedback process is slowed or halted by a counteracting balancing process.
B)Ppeople use quick fixes when resolving an underlying problem that seems too time-consuming, difficult, or too costly to fully address.
C)Ccompetitions between individuals or organizations results in a lose-lose situation.
D)Ttwo efforts or activities compete for the same resources.

Question 5

A _______ approach involves looking at an organization as a whole, as a set of interrelated parts, and understanding how these parts influence each other.

A)holistic
B)systems
C)cumulative
D)additive

Question 6

A __________ encourages and amplifies change that increases or decreases a stock.

A)bBalancing loop
B)rReinforcing loop
C)cConcertive loop
D)dDidactic loop

Question 7

Finding and implementing a long-term, enduring solution to the problem rather than relying on a quick fix approach is essential in dealing with which of the following common system archetypes?

A)Escalation
B)Shifting the Burden
C)Eroding Goals
D)Limits to Growth

Question 8

A balancing loop seeks ____________ and ___________.

A)quality, quantity
B)change, disequilibrium
C)maximization, minimization
D)stabilization, and equilibrium

Question 9

The two main systems diagrams adopted by managers are:

A)Conceptual and aAbstract diagrams
B)Direct and iIndirect diagrams
C)Stock and fFlow and bBehavior oOver tTime diagrams
D)Evaporation and dDischarge diagrams

Question 10

The "Limits to Growth" systems archetype occurs when:

A)Aa period of rapid growth due to a reinforcing feedback process is slowed or halted by a counteracting balancing process.
B)Ppeople use quick fixes when resolving an underlying problem that seems too time-consuming, difficult, or too costly to fully address.
C)Ccompetitions between individuals or organizations results in a lose-lose situation.
D)Ttwo efforts or activities compete for the same resources.

Question 11

A cup of hot or cold water adjusting its temperature toward room temperature over time is an example of a:

A)Balancing loop
B)Feedback loop
C)Contrary loop
D)Control loop

Question 12

In the Amazon Energy Budget System example, the discrepancy between energy usage budgeted and needed to grow the "cloud computing" initiative represents a _____________, while the discrepancy between the energy budget goal and the ability to save energy represents a ____________.

A)rRunaway loop, balancing loop
B)bBalancing loop, runaway loop
C)bBudgeting loop, cCost loop
D)cCost loop, budgeting loop

Question 13

The two basic components of a system are:

A)Standards and assessments
B)Rules and limits
C)Processes and procedures
D)Stocks and flows

Question 14

Managers create a culture for healthy change when they clearly:

A)Understand the company's mission.
B)Comprehend the purpose of its subsystems.
C)Acknowledge the imbalances or discrepancies that feedback loops are imposing.
D) Design a plan to achieve balance.
E)All of the above.

Question 15

In a system, a(n) _________ increases stock, while a(n) __________ decreases stock.

A)aAddition, subtraction
B)iInflow, outflow
C)sSuccess, failure
D)iInvestment, expenditure

Question 16

Recognizing, understanding, and removing the problems to restore a company's balance are essential parts of managing which of the following common system archetypes?

A)Escalation
B)Shifting the Burden
C)Eroding Goals
D)Limits to Growth

Question 17

A $5,000 trust fund set up by your generous Uncle Albert when you are five years old that results in exponential growth and a $1.5 million balance sixty years later at your retirement is a good example of which of the following?

A)Retirement loop
B)Contractual loop
C)Magnification loop
D)Runaway loop

Question 18

The more one practices playing the piano, the prettier it sounds and the more they enjoy listening to the music they play, which encourages them to practice even more, thus increasing their skill, beauty of the music, and their appreciation of playing and listening. This is a good example of which of the following?

A)Balancing loop
B)Reinforcing loop
C)Concertive loop
D)Didactic loop

Question 19

Which of the following people popularized the concept of "systems thinking" in the best-selling book The Fifth Discipline?

A)Gary Hamel
B)Russel Ackoff
C)Peter Senge
D)Jay Forrester

Question 20

Which of the following is NOT one of the five main disciplines in the book The Fifth Discipline?

A)Personal mastery
B)Begin with the end in mind
C)Building a shared vision
D)Systems thinking

Question 21

The "Escalation" systems archetype occurs when:

A)Aa period of rapid growth due to a reinforcing feedback process is slowed or halted by a counteracting balancing process.
B)Ppeople use quick fixes when resolving an underlying problem that seems too time-consuming, difficult, or too costly to fully address.
C)Ccompetitions between individuals or organizations results in a lose-lose situation.
D)Ttwo efforts or activities compete for the same resources.

Question 22

Stocks are the physical or informational forces that increase or decrease flows.

Question 23

System discrepancy tends to motivate change.

Question 24

Jay Forrester popularized the concept of systems thinking in his popular book, The Fifth Discipline.

Question 25

Interest earned on an investment is one example of a runaway loop that leads to exponential growth or decay.

Question 26

In order to stabilize the impact of a runaway feedback loop, a manager must introduce a balancing loop that continuously seeks the goal of the subsystem.

Question 27

Systems thinking is the fifth discipline that integrates the other four disciplines in the popular book, The Fifth Discipline.

Question 28

Feedback loops have levels of intensity, which if controllable, can be altered to achieve a desirable outcome.

Question 29

The ________ systems archetype can be avoided if managers look for ways where both sides can achieve their goals through co-operation, mutual understanding, and open discussion.

A)Escalation
B)Shifting the Burden
C)Eroding Goals
D)Limits to Growth

Question 30

Overfishing of the world's oceans is a classic example of which of the following common system archetypes?

A)Fixes that Fail
B)Growth and Underinvestment
C)Tragedy of the Commons
D) Success to the Successful

Question 31

The "Success to the Successful" systems archetype occurs when:

A)Aa period of rapid growth due to a reinforcing feedback process is slowed or halted by a counteracting balancing process.
B)Ppeople use quick fixes when resolving an underlying problem that seems too time-consuming, difficult, or too costly to fully address.
C)Ccompetitions between individuals or organizations results in a lose-lose situation.
D)Ttwo efforts or activities compete for the same resources.

Question 32

Systems are dynamic and change over time as stocks and flows increase and decrease.

Question 33

The difference between an inflow or outflow goal and sum of flow is a runaway loop.

Question 34

The "Fixes that Fail" systems archetype occurs when:

A)Ttwo efforts or activities compete for the same resources.
B)Aan organization, in spite of past success, decides to batten down the hatches in the face of difficult economic times in order to avoid exposure to "risky" expenditures.
C)Aan urgent problem arises and managers are tempted to quickly implement a short-term solution that in the long-term will not fully correct the problem.
D)Iindividuals use a common limited resource purely for their own gain.

Question 35

A balancing loop encourages and amplifies change that increases or decreases a stock.

Question 36

A systems approach to critical thinking allows managers to fully visualize the interconnected set of elements that is coherently organized in a way that achieves something.

Question 37

In a weak or uncertain economy, companies often fall prey to the acceptance of lowered performance levels.This phenomenon is best represented by which of the following common system archetypes?

A)Escalation
B)Shifting the Burden
C)Eroding Goals
D)Limits to Growth

Question 38

Two gasoline stations engaging in a price war resulting in lowering theirs prices until both are unprofitable is a classic example of which of the following common system archetypes?

A)Escalation
B)Shifting the Burden
C)Eroding Goals
D)Limits to Growth

Question 39

The "Tragedy of the Commons" systems archetype occurs when:

A)Ttwo efforts or activities compete for the same resources.
B)Aan organization, in spite of past success, decides to batten down the hatches in the face of difficult economic times in order to avoid exposure to "risky" expenditures.
C)Aan urgent problem arises and managers are tempted to quickly implement a short-term solution that in the long-term will not fully correct the problem.
D)Iindividuals use a common limited resource purely for their own gain.

Question 40

The "Growth and Underinvestment" systems archetype occurs when:

A)Ttwo efforts or activities compete for the same resources.
B)Aan organization, in spite of past success, decides to batten down the hatches in the face of difficult economic times in order to avoid exposure to "risky" expenditures.
C)Aan urgent problem arises and managers are tempted to quickly implement a short-term solution that in the long-term will not fully correct the problem.
D)Iindividuals use a common limited resource purely for their own gain.

Question 41

Systems thinking which is the ___________ that integrates the other four disciplines.

Question 42

Organizations can avoid the pitfalls of the ___________ trap by maintaining absolute performance standards irrespective of a crisis, or how the economy, is performing

Question 43

A "Tragedy of the Commons" systems archetype occurs when two efforts or activities compete for the same resources.

Question 44

Within the ___________ systems archetype, problems go unnoticed due to relying too much on the "old way of doing things" and buying into an "if it ain't broke, don't fix it" mentality.

Question 45

Whole system loop diagrams map out the structure of a system and show how the components of a system interact with each other.

Question 46

When an urgent problem arises, managers are tempted to quickly implement a _________ solution that in the _________ will not fully correct the problem.

Question 47

A __________loop occurs when feedback becomes self-multiplying or amplifying to the level of stock.

Question 48

Compare and contrast balancing loops and reinforcing loops, giving an example of each.

Question 49

Once you understand how the various inflows, outflows, and stocks affect a system's function, as a manager, you can make better _________ in order to get the results you want from that system.

Question 50

____________ increases stock, while _____________ decreases stock.

Question 51

Explain the basics of a Stock and Flow diagram and provide an example.

Question 52

Causal loop diagrams map out the structure of a _________ and show how the components interact with each other.

Question 53

A ____________ seeks stabilization or an equilibrium?This should be "or equilibrium," not "or an equilibrium"; I left it b/c this is how it's worded in the text.
.
This should be "or equilibrium," not "or an equilibrium"; I left it b/c this is how it's worded in the text.

Question 54

A __________ encourages and amplifies change that increases or decreases a stock.

Question 55

The "Escalation" systems archetype can be avoided if managers look for ways in which both sides can achieve their goals through co-operation, mutual understanding, and open discussion.

Question 56

The difference between an inflow or outflow goal and sum of flow is a __________.

Question 57

Choose and describe in detail three of the eight common system archetypes that managers can expect to encounter.Include a description of when they occur and how they may be effectively managed.

Question 58

A "Limits to Growth" systems archetype occurs when competitions between individuals or organizations results in a lose-lose situation.

Question 59

A ___________ approach to critical thinking involves looking at an organization as a whole; that is, as a set of interrelated parts (people, processes and structures) and understanding how these parts influence one another.