Question 1

According to Kotter and Heskett, organizational learning is higher in organizations with adaptive cultures than that in organizations with inert culture.

Accepted Answer

According to Kotter and Heskett, organizations with adaptive cultures are more receptive to change and learning, and therefore have higher levels of organizational learning compared to organizations with inert cultures, which are resistant to change and less focused on learning.

Question 2

Which of the following statements is true regarding nonprogrammed decision-making?
A) Nonprogrammed decision-making is performed with the help of standard operating procedures.
B) Nonprogrammed decision-making involves selecting the most effective-easy, repetitive, and routine-operating procedures to handle an organization's ongoing value-creation activities.
C) Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.
D) Nonprogrammed decision-making requires much less search for information to find solutions than does programmed decision-making.

Accepted Answer

Nonprogrammed decision-making involves facing unique or complex situations where there are no standard operating procedures to follow. As a result, managers must use their judgment, intuition, and creativity to find solutions to the problem.

Question 3

In a circle configuration of a top-management team, organizational learning is decreased because managers from the different functions report separately to the CEO.

Accepted Answer

In a circle configuration, managers from different functions are encouraged to collaborate and share information directly with each other, not just separately report to the CEO, which can increase organizational learning by fostering communication and knowledge sharing across functions.

Question 4

Which of the following terms refers to the process of responding to a problem by searching for and selecting a solution or course of action that will create the most value for organizational stakeholders?
A) organizational learning
B) organizational isomorphism
C) organizational decision-making
D) organizational development

Accepted Answer

Organizational decision-making refers to the process of responding to a problem by searching for and selecting a solution or course of action that will create the most value for organizational stakeholders. Organizational learning involves the process of acquiring new knowledge and skills to improve organizational performance, while organizational isomorphism refers to the process of organizations becoming similar to each other over time. Organizational development involves planned interventions to improve organizational effectiveness and increase employee well-being.

Question 5

Top-management teams function most effectively when their membership is stable and there is not too much entry into or departure from the team.

Accepted Answer

This statement is true. Stability in top-management teams allows for a cohesive and effective working dynamic, whereas frequent entry and departure can disrupt this dynamic and hinder team performance.

Question 6

Cognitive dissonance is the state of discomfort or anxiety that a person feels when there is an inconsistency between his or her beliefs and actions.

Accepted Answer

Cognitive dissonance occurs when there is a conflict between beliefs and actions, causing discomfort or anxiety until the inconsistency is resolved.

Question 7

Escalation of commitment is a cognitive bias that leads managers to form judgments based on small and unrepresentative samples.

Accepted Answer

Escalation of commitment is a cognitive bias that occurs when managers continue to invest resources (such as time, money, and effort) into a project or course of action that is failing, even when it is clear that continuing to invest in it is not the most rational decision. This bias is not specifically related to forming judgments based on small and unrepresentative samples.

Question 8

Which of the following statements is true regarding programmed decision-making?
A) Programmed decision-making requires much more search for information to find solutions than does nonprogrammed decision-making.
B) Programmed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.
C) Programmed decision-making is unstructured in nature and it is used by an organization to find solutions to changing and uncertain conditions.
D) Programmed decision-making allows an organization to increase its efficiency and reduce the costs of making goods and services.

Accepted Answer

Programmed decision-making involves the use of specific rules and procedures to handle repetitive, routine problems. This allows an organization to increase its efficiency and reduce the costs of making goods and services, as the decision-making process can be automated and streamlined. Option A is incorrect because nonprogrammed decision-making requires more search for information as it involves handling novel and unstructured problems. Option B is incorrect because programmed decision-making relies on pre-established rules and procedures rather than judgment, intuition, and creativity. Option C is also incorrect because programmed decision-making is structured and based on predetermined rules and procedures.

Question 9

When an organization uses a personalization approach to knowledge management, information systems are designed to show employees who in the organization might possess the knowledge they might need or who might have confronted a similar problem in the past.

Accepted Answer

Personalization approach to knowledge management involves designing information systems that identify individuals within the organization who possess specific knowledge or experience that may be relevant to a particular problem or task. This approach focuses on tailoring knowledge to individual needs, rather than presenting the same information to everyone.

Question 10

A collateral organizational structure is an informal organization of managers set up parallel to the formal organizational structure to "shadow" the decision-making and actions of managers in the formal organization.

Accepted Answer

This statement correctly defines a collateral organizational structure.

Question 11

Ego-defensiveness is a cognitive bias that leads managers to interpret events in such a way that their actions appear in the most favorable light.

Accepted Answer

Ego-defensiveness is a well-documented cognitive bias in psychology, and it can apply to managers as well. This bias leads individuals to protect their self-esteem by interpreting events in a way that supports their actions or decisions, even if it means distorting or ignoring relevant information. This can be problematic in decision-making and problem-solving, as it can prevent managers from considering alternative perspectives or solutions.

Question 12

A wheel configuration of a top-management team solves complex problems much more quickly than a circle arrangement.

Accepted Answer

In a wheel configuration, communication flows through a central figure, which can slow down decision-making and problem-solving. In contrast, a circle arrangement, where each member communicates with others directly, can facilitate quicker problem-solving by leveraging the collective intelligence of the team.

Question 13

A cognitive bias that causes managers to overestimate the extent to which the outcomes of an action are under their personal control is referred to as the "halo effect."

Accepted Answer

The halo effect is a cognitive bias where a person's overall impression of someone influences their opinions and feelings about that person's character and abilities. It is not related to overestimating personal control over outcomes.

Question 14

Game theory is particularly useful in analyzing situations where a company is competing against a limited number of rivals in its domain and they are highly interdependent.

Accepted Answer

Game theory is designed to analyze strategic interactions between a limited number of competitors where their decisions are interdependent. Therefore, it is particularly useful in situations where a company is competing against a limited number of rivals in its domain, such as in industries with a few dominant players.

Question 15

Programmed decisions are ________.
A) creative
B) novel
C) unstructured
D) repetitive

Accepted Answer

Programmed decisions are repetitive in nature, as they follow a set of established rules, procedures, and policies. They do not require creativity or innovation, as they are based on routine and standardized practices.

Question 16

Inert cultures encourage risk taking by middle and lower-level managers.

Accepted Answer

Inert cultures tend to be resistant to change and risk, discouraging risk-taking behaviors among middle and lower-level managers.

Question 17

Nonprogrammed decisions are ________.
A) repetitive
B) unstructured
C) easy
D) routine

Accepted Answer

Nonprogrammed decisions are unstructured and require a manager to use judgment, evaluation, and insights to solve a problem, make a decision, or address an opportunity. They are not repetitive, easy, or routine as the situation is unique and requires a new solution.

Question 18

As compared to organizations with mechanistic and inert cultures, organizations with organic and adaptive cultures are more likely to actively seek out new ways to manage linkages with other organizations.

Accepted Answer

Organic and adaptive cultures are characterized by flexibility, innovation, and openness to change. These types of organizations are more likely to embrace collaboration and seek out new ways to manage their relationships with other organizations. In contrast, mechanistic and inert cultures tend to be more rigid and resistant to change, which can hinder their ability to form and maintain effective partnerships.

Question 19

Typically, a codification approach to knowledge management is pursued when an organization needs to provide customized products or solutions to clients, when technology is changing rapidly, and when employees rely much more on know-how, insight, and judgment to make decisions.

Accepted Answer

A codification approach to knowledge management is more about standardizing information and creating databases for easy access, which is more suitable for environments with stable and repeatable tasks, not for rapidly changing environments or those requiring highly customized solutions.

Question 20

Projection is a cognitive bias that deceives people into assuming that extreme instances of a phenomenon are more prevalent than they really are.

Accepted Answer

Projection is a defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person. The cognitive bias that overestimates the prevalence of extreme instances is known as the availability heuristic.

Quiz 12: Decision Making, Learning, Knowledge Management, and Information Technology