Deck 3: Managerial Decision Making

Question 1

Another way of referring to "risk" is "taking a risk."

Answer 1

False

Question 2

The first stage of decision making requires the decision maker to generate alternatives.

Answer 2

False

Question 3

Managers typically face ill-structured problems,leaving the decision maker uncertain about how to proceed.

Answer 3

True

Question 4

Two opposing pressures that can lead to conflict include psychological and interpersonal.

Question 5

Important,difficult decisions tend to be nonprogrammed,and they demand creative approaches.

Question 6

Ready-made solutions are ideas that have been seen or tried before.

Question 7

Managers often ignore problems.

Question 8

Optimizing means that you achieve the best possible balance among several goals.

Question 9

Programmed decisions are useful when there is no predetermined structure on which to rely.

Question 10

Fundamental to choosing an alternative is to predict the consequences that will occur if the various options are put into effect.

Question 11

Jake Smith is the manager of a small auto repair shop and must decide how much money he owes his suppliers.This is an example of a non-programmed decision.

Question 12

Choosing a ready-made alternative will likely take less time than designing a custom-made solution.

Question 13

When you satisfice,you compare your choice against your goal,not against other options.

Question 14

Contingency plans are best developed after the decision is made.

Question 15

Satisficing is achieving the best possible outcome.

Question 16

Conflict exists when the manager must consider opposing pressures from different sources.

Question 17

During and after Hurricane Katrina,which destroyed so much of the city of New Orleans,the decisions made by government officials were mostly programmed.

Question 18

Managers prefer uncertainty to certainty because it makes the job more challenging and interesting.

Question 19

Risk is a fact of life in nonprogrammed management decisions.

Question 20

The "problem" in decision making may actually be an opportunity that needs to be exploited.

Question 21

One advantage of using a group for decision making is that one person dominates.

Question 22

A condition that occurs when a decision-making group loses sight of its original goal and a new,less important goal emerges is called groupthink.

Question 23

Evaluating the decision is useful whether the conclusion is positive or negative.

Question 24

Many organizational decisions are the result of intensive social interactions,bargaining,and politicking.

Question 25

The most conscientiously made business decisions can become irrelevant and even disastrous if managers take too long to make them.

Question 26

Decision makers should presume that things will go smoothly during implementation.

Question 27

Decisions are influenced by subjective psychological biases,time pressures,and social realities.

Question 28

Creativity is more than just an option;it is essential to a firm's survival.

Question 29

The illusion of control is a belief that one can influence events even when one has no control over what will happen.

Question 30

The most constructive type of conflict is cognitive conflict.

Question 31

Affective conflict is differences in perspectives or judgments about issues,whereas cognitive conflict is emotional and directed at other people.

Question 32

Framing effects refer to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.

Question 33

Vigilance means that the decision maker evaluates every decision he or she makes.

Question 34

Following all six stages of the decision making process guarantees successful decisions.

Question 35

Some experts advise that in today's complex business environment,significant problems should always be tackled by groups.

Question 36

One potential advantage of a group for decision making is that people understand the decision.

Question 37

Effectively managing group decision making requires an appropriate leadership style,the constructive use of disagreement and conflict,and the enhancement of creativity.

Question 38

Discounting the future is said to partly explain governmental budget deficits,environmental destruction,and decaying urban infrastructure.

Question 39

The job of a "devil's advocate" is to create destructive conflict.

Question 40

In brainstorming,group members generate as many ideas about a problem as they can.

Question 41

Decisions encountered and made before,having objectively correct answers and solvable by using simple rules,policies or numerical computations are

A)qualitative decisions.
B)programmed decisions.
C)non-economic decisions.
D)policy options.
E)nonprogrammed decisions.

Question 42

Characteristics of managerial decisions include which of the following?

A)Success
B)Certainty
C)Convention
D)Lack of structure
E)Speed

Question 43

The confrontational model of decision making arises when people disagree on goals or compete with one another for resources.

Question 44

Brainstorming isn't necessarily as effective as some people think.

Question 45

Incremental decision making occurs when managers make small decisions and move cautiously toward a bigger solution.

Question 46

The state that exists when the probability of success is less than 100 percent and losses may occur is

A)uncertainty.
B)probability analysis.
C)certainty.
D)policy formulation.
E)risk.

Question 47

The state that exists when decision makers have insufficient information is

A)uncertainty.
B)probability analysis.
C)certainty.
D)policy formulation.
E)risk.

Question 48

Jonathan has received two job offers.One is from a firm in New York City,where Jonathan would like to live but the other offer in Kansas City would pay more.Jonathan is having a difficult time making a decision due to experiencing

A)internal conflict.
B)organizational conflict.
C)physiological conflict.
D)psychological conflict.
E)individual conflict.

Question 49

Managers often ignore problems for which of the following reasons?

A)They don't agree with the outcome.
B)Getting involved won't impress their boss.
C)It's not the manager's job to solve problems.
D)Managers are often too busy to make decisions.
E)Managers cannot be sure how much time,energy,or trouble lie ahead once they start working on the problem.

Question 50

The state that exists when decision makers have accurate and comprehensive information is

A)uncertainty.
B)probability analysis.
C)certainty.
D)policy formulation.
E)risk.

Question 51

Sam is the sales manager at Allied Manufacturing.The company makes a wide variety of shoes.The problem is that Sam will call on his customers,get large orders for certain styles and sizes of shoes,and then the company can't fill the orders.Sam is so angry with Phil,who runs Allied's production lines that he can hardly speak."Phil" Sam said,"Why can't you just make plenty of these shoes so that our orders can always be filled?" Phil,of course had his own point of view."I'll tell you why," Phil said."It would cost the company so much that we couldn't afford to pay YOU!!" "Now get off my factory floor!" Phil and Sam could best be described as having a(n)

A)emotional breakdown.
B)individual-level conflict.
C)organizational conflict.
D)psychological conflict.
E)external conflict.

Question 52

New,novel,complex decisions having no proven answers are

A)nonprogrammed decisions.
B)standing decisions.
C)single-use decisions.
D)corporate objectives.
E)programmed decisions.

Question 53

Opposing pressures from different sources is called

A)conflict.
B)cooptation.
C)collusion.
D)cohesiveness.
E)groupthink.

Question 54

Incremental rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed.

Question 55

Uncertainty exists when the manager

A)faces two conflicting issues.
B)knows the risk involved in making the decision.
C)has accurate and comprehensive information to make the decision.
D)has insufficient information to make the decision.
E)knows that the probability of success is less than 100 percent.

Question 56

Quan works for a large contractor.Company policy requires that in hiring subcontractors,at least three bids must be received and that the lowest bid which meets specifications will be accepted.Quan's decisions regarding the hiring of subcontractors would be classified as

A)minimized.
B)programmed.
C)lacking structure.
D)illogical.
E)maximized.

Question 57

(p.105;From the Pages of Business Week)Decision making under crisis conditions will inevitably result in poor decisions and negative publicity.

Question 58

Sally,the owner of Learn English! educational salons is contemplating whether to open the company's first international branch in Europe or in Asia.She is facing a _______ decision.

A)routine
B)programmed
C)well structured
D)nonprogrammed
E)satisficing

Question 59

__________ are those decisions encountered and made before,having objectively correct answers,and solvable by using simple rules,policies,or numerical computations.

A)Structured decisions
B)Unstructured decisions
C)Structured procedures
D)Nonprogrammed decisions
E)Programmed decisions

Question 60

The garbage can model of decision making occurs when people aren't sure of their goals,or disagree about the goals,and likewise are unsure of or in disagreement about what to do.

Question 61

__________ requires searching thoroughly for a complete range of alternatives,carefully assessing each alternative,comparing one to another and then choosing or creating the very best.

A)Benchmarking
B)Maximizing
C)Minimizing
D)Satisficing
E)Optimalizing

Question 62

Alternative courses of action that can be implemented based on how the future unfolds are called

A)single-use plans.
B)contingency plans.
C)standing plans.
D)corporate objectives.
E)shadow plans.

Question 63

Implementing a decision must be planned carefully.Adequate planning most often requires which of the following steps?

A)Determining how things will look before the decision is made.
B)Order the steps necessary to achieve a fully operational decision.
C)Be sure the CEO agrees with the implementation decision.
D)Allow employees to take on responsibility once the implementation has begun.
E)Encourage vigilance.

Question 64

A manager may discover that a problem exists with current company performance by comparing it with

A)past performance.
B)the performance of other organizations.
C)future performance forecasts.
D)the business plan for the year.
E)all of the above.

Question 65

Gloria,as the executive assistant to the President of a small midwest university,has a large number of decisions to be made because several of her assistants are on vacation.One of the decisions she has to make today is which paper clips to purchase for the office.She looks at the office supply catalog and picks the first one she sees that is priced acceptably.Gloria is using _________ to make her decision.

A)minimizing
B)optimizing
C)satisficing
D)management by exception
E)maximizing

Question 66

Managers' faulty thought processes that can lead companies to failure include

A)I must consult others for decision making.
B)e-commerce is expensive and difficult.
C)we must make a profit at any cost to survive.
D)I must weigh short-term costs and benefits more heavily than long-term costs and benefits.
E)it is important to consider the long-term effects of the decisions I make today.

Question 67

The manager of the Capitol Restaurant noted that the restaurant had experienced a decreased number of evening customers.The manager promptly ordered the chef to rewrite the evening menu.Customer feedback later indicated that the problem had not been the menu but poor service from the wait staff.The manager's decision to have the menu revised suggests that he failed to

A)identify the problem.
B)evaluate the alternatives and consequences.
C)properly diagnose the cause of the problem.
D)evaluate the decision and its consequences.
E)identify a solution.

Question 68

Custom-made decisions most often require

A)a consultant.
B)in-depth computations.
C)top management approval.
D)creativity.
E)brainstorming.

Question 69

Negative feedback received during the final evaluation of the decision best indicates

A)the decision was a controversial one.
B)implementation will require less resources.
C)the manager will not be allowed to have a second chance with the decision.
D)the decision was a bad one.
E)the problem was defined incorrectly.

Question 70

The initial step in the decision making process is to

A)select an alternative.
B)evaluate the decision.
C)implement the alternatives.
D)generate alternatives.
E)identify the problem.

Question 71

When a solution is specifically designed for a particular problem or set of problems,it is called a

A)designer-enhancement.
B)dynamic solution.
C)ready-made solution.
D)future-generated solution.
E)custom-made solution.

Question 72

Which of the following is an example of subjective bias that many corporate executives exhibit?

A)Groupthink
B)Satisficing
C)Goal displacement
D)Framing effects
E)Minimizing

Question 73

To maximize is to

A)realize the largest possible production benefit.
B)involve as many people affected by the decision as possible in its design.
C)achieve the best possible outcome.
D)utilize groupthink as individual decisions.
E)generate many alternatives for evaluation.

Question 74

Vigilance in decision making means

A)the manager closely watches over those responsible for implementation.
B)the manager has carefully and conscientiously completed all stages in the decision making process.
C)the manager has been monitored during the decision making process.
D)the employees monitor the implementation carefully.
E)the employees have been monitored relative to the utility of the decision.

Question 75

Managers who optimize their decisions will attempt to choose

A)the first minimally acceptable alternative.
B)among those alternatives with variable results.
C)the least expensive alternative.
D)that alternative that produces the least conflict.
E)an alternative that achieves the best possible balance among several goals.

Question 76

The final stage in the decision-making process is

A)anticipating the results.
B)diagnosing the problem.
C)evaluating alternatives.
D)criteria analysis.
E)evaluating the decision.

Question 77

Making a decision by accepting the first option that meets your goal is referred to as

A)optimizting.
B)satisficing.
C)maximizing.
D)minimizing.
E)accepting.

Question 78

Eduardo Gonzalez of Perfect Time Manufacturing Co.needed to purchase a new safe for his most expensive watches that was high in quality and durability,yet low in price.The safe he decided upon was neither the highest quality available,nor the lowest in price available,yet it had a good combination of attributes.Eduardo's choice illustrates

A)maximizing.
B)satisficing.
C)optimizing.
D)minimizing.
E)programmed.

Question 79

Hilda,the manager of Happy Hounds Kennel,knows that the economy can greatly affect her level of business.She has developed a plan of action for each of the four possible economic outcomes that have been predicted for her geographic area over the next 4-6 years.Hilda's use of these strategies according to the state of the economy suggests that she

A)is facing a stable environment.
B)utilizes contingency planning.
C)focuses on efficient decisions.
D)engages in satisficing.
E)is an irrational decision maker.

Question 80

Once a problem is identified and properly diagnosed,the next stage in the decision making process involves

A)evaluating alternatives.
B)evaluating consequences.
C)evaluating information.
D)evaluating the decision.
E)generating alternative solutions.