Deck 3: Managerial Decision Making

Question 1

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

Answer 1

False

Question 2

The manager of a jewelry store faces conflict when she must decide whether to cut hours for all employees or lay off two employees.

Answer 2

True

Question 3

Risk exists when the probability of an action being successful is less than ________ percent and losses may be higher than gains.

A)20
B)40
C)60
D)80
E)100

Answer 3

E

Question 4

Emil has been going through the decision-making process.He diagnosed a problem with the shipping service his company used,identified alternative shipping services,evaluated those companies,made a choice,and implemented it.Which of the following statements is an accurate description of Emil's decision-making process?

A)Emil has successfully completed the decision-making process.
B)Emil now needs to evaluate the decision he made.
C)Emil left out the first step of the decision-making process.
D)Emil did steps three and four of the decision-making process in reverse order.
E)Emil left out the second step of the decision-making process.

Question 5

What is the usual state of affairs in managerial decision making?

A)clear-cut procedures
B)routine situations
C)low risk
D)automatic solutions
E)lack of structure

Question 6

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

Question 7

Contingency plans should be developed only after a decision has been made and implemented.

Question 8

When choosing a phone plan,Felix decides on the first option that meets the company's requirements rather than investigating all available options.This is an example of

A)maximizing.
B)compromising.
C)optimizing.
D)satisficing.
E)framing.

Question 9

According to some,the most fundamental unit of value is ideas.

Question 10

In the decision-making process,________ means achieving the best possible balance among several goals.

A)maximizing
B)compromising
C)optimizing
D)satisficing
E)framing

Question 11

All companies should have a crisis management plan.

Question 12

Safa has identified a problem that consists of a gap between what her company is doing now and what it can do to create a more profitable future.The "problem" that Safa has identified is also a(n)

A)opportunity.
B)danger.
C)benefit.
D)trap.
E)secret.

Question 13

Zorah,the manager of a gift shop,needs a fast solution when an employee asks for a day off during the busiest shopping week of the year.A ________ solution will be most helpful to Zorah in this situation.

A)customized
B)ready-made
C)creative
D)personal
E)one-time

Question 14

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

Question 15

The most constructive type of conflict is affective conflict.

Question 16

If a manager faces a programmed decision,that means

A)a clear structure or procedure exists for arriving at the right decision.
B)the decision maker has no predetermined structure on which to rely.
C)there are unlimited possible solutions,each of which has merits or drawbacks.
D)the decision maker should be creative in choosing what to do.
E)the decision most likely carries substantial risk.

Question 17

When a manager must consider opposing pressures from different sources,the manager faces

A)risk.
B)conflict.
C)certainty.
D)groupthink.
E)vigilance.

Question 18

When Holden words his suggestions as positively as possible,his managers are more likely to be interested in them because of the bias known as the framing effect.

Question 19

Complimenting one another and telling stories are examples of behaviors that can make brainstorming less effective.

Question 20

Aziz is the owner of a record store and must decide on next week's work schedule for his employees.This is an example of a ________ decision.

A)nonprogrammed
B)programmed
C)reprogrammed
D)risky
E)complex

Question 21

________ conflict is differences in perspectives or judgments about issues.

A)Affective
B)Intellectual
C)Cognitive
D)Emotional
E)Judgmental

Question 22

The three requirements for effective group decision making are an appropriate leadership style,the constructive use of disagreement and conflict,and the enhancement of

A)conflict.
B)groupthink.
C)satisficing.
D)creativity.
E)framing.

Question 23

Szandór is a small business owner who thinks it is more important to spend money on marketing his current product line than to invest in research to develop new products.Which psychological bias is Szandór displaying?

A)framing effects
B)discounting the future
C)illusion of control
D)affective conflict
E)cognitive conflict

Question 24

Which of the following is a new area in which business crises might occur?

A)pollution
B)labor issues
C)natural disasters
D)crime
E)information technology

Question 25

Which of the following is a psychological bias that can act as a barrier to good decision making?

A)framing effects
B)affective conflict
C)cognitive conflict
D)groupthink
E)dialectic

Question 26

Which of the following is a characteristic of managerial decisions that contributes to the difficulty in making a decision?

A)guaranteed success
B)certainty
C)conflict
D)structure
E)speed

Question 27

Which of the following decisions is likely to be a programmed decision?

A)decisions about diversification into new products and markets
B)decisions with uncertainty regarding cause-and-effect relationships
C)decisions about reorganization of state government agencies
D)decisions regarding periodic reorders of inventory
E)decisions involving the purchase of experimental equipment

Question 28

Which of the following statements about brainstorming is true?

A)Criticism of ideas during the session produces better results.
B)Praise of ideas during the session produces better results.
C)The group should generate as many ideas as possible.
D)Each person keeps his or her ideas private until the end of the session.
E)Participants should avoid building on previous ideas.

Question 29

Important,difficult decisions that require creative approaches tend to be

A)vigilant decisions.
B)programmed decisions.
C)non-vigilant decisions.
D)nonprogrammed decisions.
E)structured decisions.

Question 30

The belief that one can influence events even when one has no power over what will happen is known as

A)framing effects.
B)discounting the future.
C)illusion of control.
D)affective conflict.
E)cognitive conflict.

Question 31

Nasim's employees have requested that he switch the office to flextime so that they can better manage their childcare and commuting schedules.Nasim is reluctant to make a drastic change all at once,so he agrees to experiment with staggering the starting and ending times of the workday over a 90-minute period for three months.If,at the end of that time,productivity does not decline,he will consider implementing a more extreme version of flextime.What model of decision-making is Nasim using?

A)bounded rationality
B)incremental
C)coalition
D)garbage can
E)crisis

Question 32

Yolanda is trying to decide how to diversify her company so that it produces a larger variety of products and competes in new markets.This is a(n)example of a ________ decision.

A)routine
B)programmed
C)cognitive
D)nonprogrammed
E)noncognitive

Question 33

Which of the following decisions is likely to be a nonprogrammed decision?

A)decisions with certainty regarding cause-and-effect relationship
B)decisions concerning diversification into new products and markets
C)decisions regarding rules and definite procedures
D)decisions concerning a merit system for promotion of state employees
E)decisions that depend on numerical computations

Question 34

In goal displacement,a decision-making group

A)loses sight of its original goal and a new,less-important goal emerges.
B)becomes so eager to avoid conflict that it adopts a goal or decision too quickly.
C)generates as many goals as it can but does not allow criticism of people or ideas.
D)disagrees on goals,or the members compete with one another for resources.
E)is unsure about goals and is in disagreement about what to do.

Question 35

During a crisis that involved a toxic spill,the executives of Grenier Chemical were straightforward in sharing the bad news with the public and providing daily updates on the containment and cleanup process.What is the likely long-lasting effect of this communication strategy?

A)a loss of respect for the company
B)a gain of credibility for the company
C)an increase of anger against the company
D)a decrease of trust in the company
E)an increase in the company's legal liability

Question 36

Which of the following statements about group decision making is true?

A)Group decisions should rarely be used to address significant business problems.
B)Individual decisions are generally more difficult to reach than group decisions.
C)If enough time is available,groups usually make higher-quality decisions than most individuals.
D)If enough time is available,most individuals usually make higher-quality decisions than a group.
E)There are far more disadvantages than advantages to group decision making.

Question 37

When decision makers carefully and conscientiously execute all six stages of decision making,the decision makers are said to have exercised

A)optimizing.
B)maximizing.
C)satisficing.
D)vigilance.
E)diligence.

Question 38

The ________ model of decision making occurs when people are not sure of their goals,or disagree about the goals,and likewise are unsure of or in disagreement about what to do.

A)bounded rationality
B)incremental
C)coalition
D)garbage can
E)crisis

Question 39

According to Simon's bounded rationality,which of the following factors prevents decision makers from being truly rational?

A)They have complete information about alternatives and consequences.
B)The problems they face are too simple and require little thought.
C)Human beings are not exposed to very much information.
D)People have too much time on their hands and overthink decisions as a result.
E)People,including those in the same organization,have conflicting goals.

Question 40

Which of the following is a disadvantage of group decision making?

A)drawing on more perspectives
B)having a larger pool of information
C)understanding the decision
D)experiencing groupthink
E)being more committed to a decision

Question 41

Once a solution to a problem is chosen,the next phase in the decision-making process involves

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

Question 42

Ariel,a federal government employee,works in acquisition and procurement.Federal policies require that in contracting with suppliers,at least three bids must be received,and the lowest bid that meets specifications will be accepted.In this case,Ariel is dealing with a(n)

A)cognitive conflict.
B)programmed decision.
C)affective conflict.
D)nonprogrammed decision.
E)unstructured problem.

Question 43

The final phase in the decision-making process is

A)anticipating the results.
B)implementing the solution.
C)diagnosing remaining issues.
D)criteria analysis.
E)evaluating the decision.

Question 44

Swann Brothers Chocolatiers is a new company that makes specialty,gourmet confections and markets to upscale restaurants and the general public,particularly hip,young people with money to spend on luxuries.They need to find a location for their new shop and kitchen.The real estate agent they have contracted shows them several available commercial spaces in the area.Given their goals,if they are optimizing their decision,which of the following represents their best choice?

A)a former nail salon in a trendy neighborhood recently voted "most walkable"
B)a former candy store with a small prep area in a busy,discount outlet mall
C)a former shoe store in a strip mall with lots of drive-by visibility but little walk-by traffic
D)a former restaurant two doors down from a competitor,Herrmann's Confectioner's
E)a former café in a historic building surrounded by trendy restaurants and chic boutiques

Question 45

Which of the following is the best definition of conflict?

A)a situation that includes opposing pressures from different sources
B)the state that exists when decision makers have accurate,comprehensive information
C)a novel,complex decision with no right or wrong answers
D)the state that exists when the probability of success is less than 100 percent
E)creative ideas that have never been seen or tried before

Question 46

The manager of the Silver Sands Hotel noticed a tremendous decrease in the number of convention bookings.He promptly ordered the redecoration of the hotel's meeting rooms.Customer feedback later indicated that the problem had not been the meeting facilities but poor service from the cleaning staff.In this scenario,to try and solve the problem,the manager should have first tried to

A)generate alternate solutions.
B)hire more qualified employees.
C)identify the problem.
D)reduce the price of all products.
E)spend more on marketing and advertisement.

Question 47

Gemma,an administrative assistant in the print shop of a large company,orders office supplies biweekly;today,she needs copier paper and ink cartridges.She looks at the office supply catalog and,because the consequences are not huge,quickly picks a selection for each product that is priced acceptably.In this scenario,Gemma is using

A)management by exception.
B)optimizing.
C)satisficing.
D)the garbage can model.
E)maximizing.

Question 48

Vigilance in decision making means the

A)customer realizes increased value as a result of the decision.
B)manager has carefully completed all stages in the decision-making process.
C)manager has overdone the decision-making process.
D)employees have full control over the decision-making process.
E)employees have been monitored to see their reactions to the decision.

Question 49

Alternative courses of action that can be implemented based on how the future unfolds are referred to as

A)programmed decisions.
B)contingency plans.
C)ready-made solutions.
D)satisficing plans.
E)maximizing plans.

Question 50

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

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

Question 51

Rakesh,a manager at Fieldston Brothers Department Store,needs to purchase a new secure display case for the jewelry department.He wants one that is high in quality and security,yet low in price.After evaluating the options,he chooses a case that is neither the highest quality available nor the lowest in price available,but has a good combination of attributes.In this case,Rakesh's choice best illustrates

A)the garbage can model.
B)satisficing.
C)optimizing.
D)the coalition model.
E)bounded rationality.

Question 52

Celeste is the manager of Classy Clutches,a store that sells designer purses.Celeste knows that the economy greatly affects her business.Therefore,she is developing alternative courses of action for each of the four possible economic outcomes that may occur over the next four to six years.In this scenario,Celeste is

A)implementing a decision.
B)generating contingency plans.
C)making a programmed decision.
D)engaging in satisficing.
E)following the garbage can model.

Question 53

Managers who optimize their decisions will attempt to

A)choose the first,minimally acceptable alternative.
B)select the decision that is fastest to make.
C)find the least expensive option available in the market.
D)decide on whatever produces the least challenge or conflict.
E)achieve the best possible balance among several goals.

Question 54

Joaquín,a human resources manager,has to lay off either of two department heads,Coral or Mike,because the downsizing process that is going on in the organization calls for the merging of their two departments.However,Joaquín cannot decide whom to lay off,since they are both excellent managers and he does not want to dismiss either of them.In this case,Joaquín is having a difficult time making a decision due to experiencing ________ conflict.

A)interdependence
B)organizational
C)cognitive
D)psychological
E)affective

Question 55

Illusion of control,discounting the future,and framing effects are all examples of

A)social realities.
B)psychological biases.
C)goal displacement.
D)vigilance.
E)time pressures.

Question 56

________ 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)Framing
D)Satisficing
E)Optimizing

Question 57

Negative feedback received during the final evaluation of the decision either means that ________ or the decision was a bad one.

A)the problem cannot be solved
B)more financing is required to implement the changes
C)the manager is not capable of rational decisions
D)implementation will require more time
E)not enough resources were allocated to the problem

Question 58

When a solution is specifically designed for a particular problem or set of problems,it is referred to as

A)groupthink.
B)a programmed decision.
C)a ready-made solution.
D)a contingency plan.
E)a custom-made solution.

Question 59

Kai needs to hire a new landscaping service to take care of the small garden outside his dental office.He knows what tasks he wants done and how much he is willing to pay per week,and he hires the first service that agrees to his terms.Such an action is referred to as

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

Question 60

In an ideal decision-making process,the initial step is to

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

Question 61

Which of the following is a decision bias influenced by the way in which a problem or decision alternative is phrased or presented?

A)groupthink
B)satisficing
C)goal displacement
D)framing effects
E)illusion of control

Question 62

________ is an advantage of using a group for decision making.

A)Intellectual stimulation
B)Domination by one member
C)Groupthink
D)Satisficing
E)Goal displacement

Question 63

Discounting the future refers to

A)valuing long-term benefits and costs more heavily than short-term benefits and costs.
B)overestimating the long-term effects of the decision.
C)underestimating the short-term effects of the decision.
D)valuing short-term benefits and costs more heavily than longer-term benefits and costs.
E)making quick decisions with whatever information is at hand.

Question 64

Which of the following is a disadvantage of group decisions?

A)People tend to settle for satisficing.
B)There is a smaller pool of information.
C)The employees are not intellectually stimulated.
D)There are multiple perspectives to the decision.
E)There is more transparency among employees.

Question 65

A condition that occurs when a decision-making group loses sight of its original goal and a new,possibly less important,goal emerges is known as

A)goal displacement.
B)groupthink.
C)a framing effect.
D)goal alignment.
E)goal realization.

Question 66

Groups that are excessively concerned with maintaining a positive team spirit are likely to experience

A)individual dominance.
B)goal displacement.
C)brainstorming.
D)groupthink.
E)maximizing.

Question 67

Allowing one person to control a discussion or decision is known as

A)groupthink.
B)devil's advocacy.
C)individual dominance.
D)vigilance.
E)dialectic.

Question 68

A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus is known as

A)goal displacement.
B)domination.
C)intuition.
D)groupthink.
E)satisficing.

Question 69

Parker believes that as long as he pays good wages and treats his workers fairly,he can keep employee turnover to a minimum even though his store is located in a community that is known for having a transient population.Parker's belief is an example of which of the following psychological biases?

A)illusion of control
B)framing effects
C)discounting the future
D)time pressure
E)social realities

Question 70

Leaders of decision-making groups should

A)discourage cognitive conflict.
B)encourage groupthink.
C)help the group satisfice.
D)ask for members' opinions.
E)dominate the discussion.

Question 71

The psychological bias known as "illusion of control" refers to a belief that

A)the employees will always agree with the decisions made by the manager.
B)one can influence events even when one has no control over what will happen.
C)employees do not have confidence in a manager's abilities.
D)one has no control and therefore does not put any effort into the decision.
E)managers' with wider spans of control tend to perform effectively.

Question 72

Which of the following is the best example of a manager discounting the future?

A)a manager believing that he or she can control the outcome of any decision
B)a manager planning for the long-term stability of a company
C)a manager depending on programmed decisions for all issues
D)a manager framing the decision alternatives to influence selection
E)a manager focusing on quarterly profits instead of the long-term vision

Question 73

White Gazebo Wedding Planners has had great success through partnering with other local businesses to offer all-in-one wedding package deals.Recently,they have been working with Zephyr Hot Air Balloon Tours to offer a premium wedding package that includes a sunset balloon tour.However,Zephyr's team have designed an advertising brochure that many White Gazebo staff feel does not reflect well upon their image as a modern,non-traditional wedding planner.Rahim,the owner/manager,Maria,the assistant manager,Greg,the head of marketing,and Tisha,the web designer,have a meeting to address this issue,but the discussion does not go as planned.Based on your knowledge of goal displacement,which scenario below most likely took place?

A)Maria and Greg begin discussing the artistic merits of the brochure,but they soon begin arguing about who should discuss the problem with Zephyr.
B)Greg says that his team will go ahead and design a new brochure,and because it is late Friday afternoon,the other team members defer to his judgment.
C)Maria,Greg,and Rahim debate the problems with the brochure,while Tisha sits around,only half listening and playing games on her phone.
D)Maria and Tisha have come up with several viable solutions,but Greg keeps interrupting them,generally dominating the conversation.
E)Rahim suggests they scrap the whole collaboration with Zephyr because it is the simplest solution and requires little effort or thought.

Question 74

Which of the following involves weighting short-term costs and benefits more heavily than longer-term costs and benefits?

A)framing effects
B)cognitive conflict
C)illusion of control
D)social realities
E)discounting the future

Question 75

Terra is the owner of Arcadia Salon and Spa and is looking to add some new spa services.Terra interviewed her staff to get their opinions and ideas,and she invited everyone to participate in deciding which ideas to advance.Staff members were then aware of the various options and recognized the benefits and costs of each.In this scenario,involving the staff has helped people to

A)dominate the discussion.
B)use groupthink to gain buy-in.
C)please everyone completely.
D)believe in the illusion of control.
E)understand the decisions.

Question 76

Real-time information is information that

A)is obtained with little or no delay.
B)is based only on past performance.
C)focuses on futuristic forecasts.
D)is based on adjusted predictions.
E)is discounted for the future.

Question 77

Imani,a manager at Scribbles Specialty Paper Company,was disappointed with her team's discussion regarding next year's marketing campaign.Van,a fellow manager,pushed all his ideas through;they were good,but nobody else got a word in or had the opportunity to share.This group experienced

A)vigilance.
B)individual dominance.
C)satisficing.
D)intellectual stimulation.
E)goal displacement.

Question 78

When a group accepts an alternative that seems to please the members of the group,but the group has not taken the time or effort to explore many options,the group has

A)exercised groupthink.
B)stimulated the intellects of its members.
C)made an optimizing decision.
D)exercised vigilance.
E)participated in goal displacement.

Question 79

________ occurs when a group member is more interested in winning an argument than solving a problem.

A)Framing
B)Goal displacement
C)Groupthink
D)Satisficing
E)Synergy

Question 80

Each morning,Atlas Hardware's CEO has a computer-based conference with all store managers.The previous day's data and challenges are discussed so that problems can be quickly and effectively resolved or even avoided.In this case,Atlas Hardware is utilizing ________ to retain a competitive edge.

A)social realities
B)real-time information
C)psychological biases
D)framing effects
E)nonprogrammed decisions