Deck 9: Managerial Decision Making

Question 1

 Gerald's Groceries and Marty's Market decided to merge their operations, something neither company has tried before. This would be considered a nonprogrammed decision.

Answer 1

True

Question 2

 Two employees in Stacey's department quit, which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision.

Answer 2

False

Question 3

 In the real world, few decisions are certain.

Answer 3

True

Question 4

 Programmed decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future.

Question 5

 The administrative model of decision making describes how managers actually make decisions in difficult situations rather than how they should make decisions according to a theoretical ideal.

Question 6

 According to the classical model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints.

Question 7

 The classical model of decision making is most useful when applied to programmed decisions and to decisions characterized by certainty or risk because relevant information is available and probabilities can be calculated.

Question 8

 A decision is a choice made from available alternatives.

Question 9

 The administrative model of decision making is considered to be normative.

Question 10

 According to the administrative model of decision making, most managers settle for a satisficing rather than a maximizing solution.

Question 11

 There is a greater possibility of failure with uncertainty than with risk.

Question 12

 The political model of decision making assumes that managers have the time, resources, and mental capacity to identify all dimensions of the problem and process all relevant information.

Question 13

 The approach managers use to make decisions usually falls into one of three types-the classical model, the administrative model, or the political model.

Question 14

 Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria, even if better solutions are presumed to exist.

Question 15

 The growth of big data techniques has reduced the use of the classical approach.

Question 16

 Intuition represents a quick apprehension of a decision situation based on past experience but without conscious thought.

Question 17

 Uncertainty means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to some chance of loss or failure.

Question 18

 Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

Question 19

 Not every decision situation can be organized on a scale according to the availability of information and the possibility of failure.

Question 20

 A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity.

Question 21

 Managers confront a decision requirement in the form of either a problem or an opportunity.

Question 22

 Nonprogrammed decisions typically require six steps; however, programmed decisions, being structured and well understood, typically require only one step.

Question 23

 The recognition of decision requirement stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

Question 24

 The behavioral style is the decision style often adopted by managers who like to consider complex solutions based on as much data as they can gather.

Question 25

 The most effective managers are consistent in using their own decision style rather than shifting among styles.

Question 26

 People who prefer simple, clear-cut solutions to problems use the directive decision style.

Question 27

 In the implementation stage of the decision process, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

Question 28

 Managers with an analytical decision style like to consider complex solutions based on as much data as they can gather.

Question 29

 Justifying past decisions is a common bias of managers.

Question 30

 The best alternative solution is the one that best fits the overall goals and values of the organization and achieves the desired results using the fewest resources.

Question 31

 Step one in the managerial decision-making process is recognition of decision requirement.

Question 32

 For a nonprogrammed decision, feasible alternatives are easy to identify; in fact, they usually are already available within the organization's rules and procedures.

Question 33

 The political model consists of vague problems and goals, limited information about alternatives and their outcomes, and a satisficing choice for resolving problems using intuition.

Question 34

 Good intuitive decision making is based on an ability to recognize patterns at lightning speed.

Question 35

 Individuals with a conceptual decision style are more socially oriented than those with an analytical style.

Question 36

 A large body of research suggests that many bad decisions are the result of errors in judgment that originate in the human mind's limited capacity and in the natural biases managers unconsciously display during decision making.

Question 37

 Administrative and political decision-making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.

Question 38

 Coalition building is the process of forming alliances among managers who support a specific goal.

Question 39

 Risk propensity is the willingness to undertake risk with the opportunity of gaining an increased payoff.

Question 40

 Feedback is the part of monitoring that assesses whether a new decision needs to made.

Question 41

 Electronic brainstorming is a way of evaluating the ideas of others online.

Question 42

 The devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging the assumptions and assertions made by the group.

Question 43

 Brainstorming uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem.

Question 44

 An example of a nonprogrammed decision would include the decision to:

A) reorder supplies.
B) develop a new product or service.
C) perform routine maintenance on one of the machines in manufacturing.
D) terminate an employee for violation of company rules.
E) fill a position.

Question 45

 Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of:

A) a programmed decision.
B) a nonprogrammed decision.
C) an insignificant decision.
D) a wicked decision.
E) none of these.

Question 46

 A certain amount of disagreement and conflict is much healthier than blind agreement.

Question 47

 Mark, a production manager at Kaylie's Kookware, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of:

A) planning.
B) decision making.
C) organizing.
D) motivating.
E) leading.

Question 48

 People frequently look for new information that contradicts their existing instinct or point of view.

Question 49

 Programmed decisions are made in response to __________ organizational problems.

A) unusual
B) recurring
C) significant
D) major
E) unique

Question 50

 Many nonprogrammed decisions are related to __________ because uncertainty is great and decisions are complex.

A) strategic planning
B) innovation
C) strong leadership skills
D) applying effective decision rules
E) all of these

Question 51

 __________ decisions are associated with decision rules.

A) Nonprogrammed
B) Unique
C) Programmed
D) Wicked
E) Novel

Question 52

 If your instructor has an attendance policy, she/he is using:

A) a programmed decision.
B) a unique approach.
C) a condition of ambiguity.
D) a nonprogrammed decision.
E) none of these.

Question 53

 __________ is a vital part of good management because decisions determine how the organization solves its problems, allocates resources, and accomplishes goals.

A) Organizing
B) Competitive visioning
C) Proper alignment
D) Good decision making
E) Leadership

Question 54

 A department store's return's policy is an example of a(n) __________ decision.

A) programmed
B) nonprogrammed
C) novel
D) poorly defined
E) unstructured

Question 55

 Most people underestimate their ability to predict uncertain outcomes.

Question 56

 Managers at Lenovo apply an innovative decision-making technique called __________, which means "replaying the chessboard," in which they review every move to improve the next one. 

A) fu pan
B) TQM
C) shu sho
D) Abilene paradox
E) JIT

Question 57

 Nonprogrammed decisions are made in response to situations that:

A) are unique.
B) are largely unstructured.
C) have important consequences for the organization.
D) are poorly defined.
E) all of these.

Question 58

 A __________ is a choice made from available alternatives.

A) decision
B) plan
C) goal
D) tactic
E) strategy

Question 59

 Point-counterpoint and escalating commitment are two ways to stimulate rigorous debate.

Question 60

 __________ is the process of identifying problems and opportunities and then resolving them.

A) Organizing
B) Controlling
C) Decision making
D) Planning
E) Leading

Question 61

 What are the four positions on the possibility of failure scale?

A) Certainty, risk, uncertainty, and ambiguity
B) Conflict, risk,  uncertainty, and ambiguity
C) Certainty, necessity, conflict, and uncertainty
D) Indecision, risk, uncertainty, and possibility
E) Possibility, indecision, necessity, and conflict

Question 62

 Bobby, a product manager, wants to increase the market share of his product by 25 percent. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Bobby is operating under a condition of:

A) risk.
B) ambiguity.
C) certainty.
D) uncertainty.
E) bounded rationality.

Question 63

 At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision?

A) Programmed
B) Nonprogrammed
C) Wicked
D) Administrative
E) Intuitive

Question 64

 The classical model of decision making is based on __________ economic assumptions.

A) arbitrary
B) irrational
C) rational
D) uncertain
E) vague

Question 65

 __________ is by far the most difficult situation for a decision maker.

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming

Question 66

 The condition under which ambiguity occurs is when:

A) alternatives are difficult to define.
B) objectives are well defined.
C) information about outcomes is readily available.
D) all the alternatives are known.
E) decisions are already made.

Question 67

 With __________, enough information is available to estimate the probability of a successful outcome versus failure.

A) risk
B) uncertainty
C) ambiguity
D) intuition
E) all of these

Question 68

 Associated with the condition of __________ is the lowest possibility of failure.

A) ambiguity
B) uncertainty
C) certainty
D) risk
E) all of these

Question 69

 __________ decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, unclear links among decision elements, and the inability to evaluate whether a proposed solution will work.

A) Nonprogrammed
B) Programmed
C) Wicked
D) Conventional
E) Irrational

Question 70

 Which of the following is an assumption of the classical model of decision making?

A) Problems are unstructured and ill defined.
B) The decision maker strives for conditions of certainty and tries to gather complete information.
C) Criteria for evaluating alternatives are unknown.
D) The decision maker selects the alternatives that will minimize the economic return to the organization.
E) All of these

Question 71

 Which of the following has the highest possibility of failure?

A) The condition of certainty
B) The condition of ambiguity
C) The condition of uncertainty
D) The condition of risk
E) All of these

Question 72

 Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable?

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Conflict

Question 73

 Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to some chance of loss or failure?

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Brainstorming

Question 74

 During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions in a highly ambiguous environment. The decision to buy out failed banks could best be described as what type of decision?

A) Bounded
B) Programmed
C) Conventional
D) Wicked 
E) Irrational

Question 75

 __________ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete.

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) Advocacy

Question 76

 Under conditions of __________, statistical analyses are useful.

A) certainty
B) ambiguity
C) risk
D) uncertainty
E) conflict

Question 77

 Which of the following means that all the information the decision maker needs is fully available?

A) Certainty
B) Risk
C) Uncertainty
D) Ambiguity
E) None of these

Question 78

 When a small community hospital decides to add a radiation therapy unit, it is considered a __________ decision.

A) programmed
B) structured
C) nonprogrammed
D) wicked
E) certainty

Question 79

 Riley is a manager at Tinker Tools. She is expected to make rational decisions that are economically feasible and in the organization's best economic interests. Her decisions should be based on which of the following decision-making models?

A) Administrative 
B) Political
C) Scientific management 
D) Classical
E) Humanistic

Question 80

 Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a:

A) programmed decision.
B) nonprogrammed decision.
C) decision rule.
D) structured decision.
E) wicked decision.