Deck 7: Strategic Decision-Making

Question 1

Hubbard,Rice and Galvin's questions to determine where and how groups make decisions do NOT include:

A)Is there one or more key opinion leaders in the group?
B)Is there a second chance,if the proposal is not accepted?
C)Is the group homogenous?
D)Are there any individuals in the group who would be particularly affected by the proposal?

Answer 1

C

Question 2

Hubbard et al.'s 'helpful techniques when assessing alternatives' include:

A)brainstorming,devil's advocacy,expert plan,dialectic materialism,simulation,war games
B)brainstorming,devil's advocacy,simple plan,dialectic enquiry,nominal group technique
C)brainstorming,nominal groups,devil's advocacy,expert plan,dialectic enquiry,simulation,war games
D)brainstorming,devil's advocacy,simple plan,didactic enquiry,nominal group technique

Answer 2

C

Question 3

The criteria that apply to rational decisions do NOT include a requirement that they:

A)allow for interdependent means and ends
B)are fully informed
C)are internally consistent and logical
D)aim at achieving the end goal

Answer 3

A

Question 4

According to Tichy and Bennis,good decision makers do NOT do which of the following?

A)Engage and energise stakeholders
B)Cut through complexity to get to the issue
C)Stay involved during execution
D)Analyse the industry structure

Question 5

Good group decisions are characterised by:

A)individuality,trust and loyalty,shared belief system,groupthink
B)groupthink,respect for individual,consensus,secret voting
C)trust,shared belief system,high degree of cooperation,loyalty
D)individuality,leadership,communication skills,groupthink

Question 6

Valid approaches to understanding how decisions are made in the context of organisational conflict between decision makers include:

A)decision-making as a power struggle
B)decision-making as a result of coalition formation
C)both of the above
D)none of the above

Question 7

In relation to ambiguity in decision-making:

A)the rational model is based on the assumption that information is known
B)causality of events is ambiguous
C)both of the above
D)none of the above

Question 8

One of the positive aspects of political decision-making is that it:

A)encourages more outcomes to be explored
B)enables decision makers to resist pressure from key stakeholders
C)both of the above
D)none of the above

Question 9

Which of the following statements regarding the catastrophic errors in organisations is incorrect about avoiding them?

A) It is best to conduct a root cause analysis about the problem rather than treat the symptoms.
B)Ensure that managers are responsible and accountable for any problems that occur.
C)Support those that challenge the system.
D)Take shortcuts whenever possible to increase the efficiency of assessing the performance measurement systems in place.

Question 10

One of the negative aspects of political decision-making is that it:

A)focuses the decision maker on the need to display strong entrepreneurship to control power
B)focuses the decision maker on the need for the decision to be made at a point in time
C)both A & B
D)none of the options are correct

Question 11

The group of individual factors suggested as limitations on rational decision-making do NOT include:

A)bounded rationality,ethics,emotions
B)ambiguity,reality
C)interpretation,intuition
D)decision-making rules

Question 12

As well as intuition,peoples' decisions are influenced by:

A)motivation,values,ethics,personal maturity
B)motivation,values,ethics,personal nature
C)emotions,values,organisational culture
D)emotions,reward systems,ethics,personal nurture

Question 13

In relation to cognitive maps:

A)their use avoids the need for personal experience,both actual and educational
B)managers try to interpret events in ways that make them consistent with pre-existing beliefs
C)if an event is too much like prior experience,wrong conclusions may be drawn
D)industry recipes have been developed to cover only those facts relevant to an industry

Question 14

Hamel argues that the hierarchy of decision-making levels,from most to least powerful,is:

A)rational decision-making,mental models,political decision-making
B)political decision-making,rational decision-making,mental models
C)mental models,political decision-making,rational decision-making
D)political decision-making,mental models,rational decision-making

Question 15

Interpretation issues within behavioural economics include:

A)framing,anchoring,sunk costs,status quo,herding,representativeness,overconfidence
B)fixating,anchoring,sunk costs,status quo,herding,unrepresentativeness,overconfidence
C)feeding,anchoring,skunk works,status quo,herding,representativeness,underconfidence
D)framing,anchoring,sinking,statusing,herding,unrepresentativeness,underconfidence

Question 16

Hubbard et al.propose that risk assessment be undertaken by a process to:

A)consider alternatives,be aggressive,forecast alternatives,plan up-front,be thorough
B)be conservative,narrow possible alternatives,consider competitor reactions,be flexible
C)be flexible,expand multiple alternatives,forecast competitor reactions,plan exit strategy
D)none of the above

Question 17

One of the 'mainstream' sub-sets of Hubbard,Rice and Galvin's 'model of effective decision making' does NOT follow the order:

A)involve several people,agree on goals,search,evaluate risk
B)make decision,engage implementers,communicate decision,assess outcomes
C)search,evaluate risk,make decision,communicate decision
D)none of the above

Question 18

In relation to problems of interpretation:

A)to make sense of ambiguous events,interpretation can provide certainty of knowledge
B)rational decision-making assumes subjective interpretation
C)individuals are accurate and truthful in their interpretations of past events
D)individuals are biased in their interpretations of past events

Question 19

Complete the statement 'Rational decision-making is based on a ___ approach (i.e.how decisions ___ made).This contrasts with a ___ approach.'

A)positivist,might be,normative
B)normative,should be,and intuitive
C)reasonable,are actually,positivist
D)deductive,might theoretically be,inferential

Question 20

The fundamental assumption for understanding interpretation using 'behavioural economics' is:

A)that individuals anticipate events with respect to deviations from a reference theory
B)that individuals evaluate outcomes with respect to deviations from a reference point
C)that individuals generate reasons to explain deviations from a reference norm
D)that individuals espouse theories with regard for deviations from a reference prospect

Question 21

The rational model of decision-making is not always used by managers.Why?

Question 22

In making strategic choices,the most attractive options should always be pursued.

Question 23

A wide variety of conceptual approaches for decision-making are being developed.Discuss what some of them are and what they have in common.

Question 24

Individual values cannot conflict with each other.They may conflict with those of the organisation.

Question 25

Rational decision-making is based on prescriptive approach.

Question 26

Information asymmetry happens when one party knows more relevant information than another,often placing one at a serious disadvantage.

Question 27

In brainstorming technique,ideas for solving the problems are simply written down without evaluation.

Question 28

Assess the relevance of the normative approaches to decision-making.Provide two examples of why rationality in decision-making may be 'bounded'.

Question 29

Cognitive maps have blind spots.

Question 30

All of the conceptual approaches to decision-making see decision-making as a process rather than a single judgment at some point in time.

Question 31

A 'rational' decision implies a 'good' decision.

Question 32

The inability to understand how decisions are made limits the ability to predict how future decisions will be made.

Question 33

Rational decisions are conscious,explicit,and deliberate.

Question 34

The process of 'satisficing' calls for conducting a limited rather than exhaustive search of possible alternatives.

Question 35

What are the steps in the development of good strategy?

Question 36

A dialectic enquiry is not suitable for decisions of high risk.

Question 37

What are the keys that help in avoiding catastrophic errors that lead to business failure?

Question 38

'If a critical decision has to be made,give me a strong leader over a senior management committee any day!' Do you agree or disagree? Discuss and give reasons for your answer.