Question 1

The _____ method of decision making is evident when there is little or no agreement on goals and limited information.

Accepted Answer

The random method of decision making is used when there is little agreement on goals and limited information, leading to decisions that may seem arbitrary or without a clear rationale.

Question 2

In which of the following situations is satisficing evident?

Accepted Answer

Satisficing is evident when a manager chooses a particular alternative because it fits the budgeted amount for a project. Satisficing refers to adopting the first acceptable solution that meets minimal criteria, rather than searching for an optimal solution. In this case, the manager is not trying to achieve an ideal solution or develop an optimal solution, but rather settling for a solution that meets the budget criteria.

Question 3

Which of the following is a consequence of having incomplete information and a lack of complete goal consensus?

Accepted Answer

When faced with incomplete information and a lack of complete goal consensus, individuals often resort to satisficing, which means choosing the first acceptable decision rather than continuing to search for the optimal decision. This is because optimizing requires more information and effort, which may not be feasible in the given situation. Thresholding and flipism are not relevant options in this context.

Question 4

Which of the following is true of the administrative model method of decision making?

Accepted Answer

The administrative model method of decision making is used when decision makers have some knowledge and a partial goal consensus. This model emphasizes the incremental nature of decision making and takes into consideration the limitations faced by decision makers, such as bounded rationality and satisficing. Therefore, option B is the correct answer. Option A is incorrect as the administrative model is a commonly used method of decision making. Option C is incorrect as this method is useful when decision makers want to prevent satisficing. Option D is incorrect as the administrative model takes into consideration the presence of bounded rationality.

Question 5

Among the decision-making methods,which of the following is a similarity between the rational choice method and the incremental trial-and-error method?

Accepted Answer

Both the rational choice method and the incremental trial-and-error method are suitable in situations where there is a high consensus on goals. The rational choice method relies on a clear understanding of objectives to evaluate alternatives, while the incremental method makes small adjustments towards a commonly agreed-upon goal.

Question 6

_____ refers to presenting ideas and alternatives in a way that has an influence on the choices that people make.

Accepted Answer

Framing refers to presenting ideas and alternatives in a way that has an influence on the choices that people make. It involves shaping the language, context, and presentation of information to influence decision-making.

Question 7

A team of advertising professionals is involved in a decision-making process seeking breakthrough decisions.The team members rely on their intuition to make bold decisions so much so that the decisions go against the rational analysis of the information at hand.In which of the following decision-making methods does this occur?

Accepted Answer

This occurs in the subjective method, where individuals rely on personal intuition or judgement instead of rational analysis and logical reasoning.

Question 8

Ivan is appraising his team members based on their performances in the last quarter.His appraisal of Otto is based entirely on Otto's poor social skills,and he disregards all of Otto's performance achievements.As a consequence,Otto receives a poor appraisal.Which of the following biases does Ivan have?

Accepted Answer

Ivan is exhibiting a halo/horn bias, where he is letting one trait (poor social skills) overshadow all of Otto's achievements.

Question 9

Which of the following is generally true of people that are presented with information that has been framed to show they are securing gains?

Accepted Answer

When information is framed to show that individuals are securing gains, they tend to be risk-averse. This is because the framing effect influences people's decisions by presenting the same choice in different ways, leading those who perceive a potential gain to prefer avoiding risks to secure that gain.

Question 10

In his quarterly appraisal report,Cox feels that his project manager,Gerald,has appraised him with an anchoring and adjustment bias.By this,Cox identifies that Gerald is more likely to have:

Accepted Answer

Anchoring and adjustment bias occurs when a person relies too heavily on initial information (the "anchor") to make subsequent judgments or adjustments. In this case, Cox believes that Gerald's first impression of him may have anchored his overall appraisal, leading to bias.

Question 11

Which of the following is true of the random method of decision making?

Accepted Answer

Random decision making often occurs in situations where there is little or no agreement on goals, as it bypasses the need for consensus by leaving the decision to chance.

Question 12

Which of the following statements supports the usefulness of tacit knowledge?

Accepted Answer

Tacit knowledge is knowledge that is often difficult to articulate or codify and is typically gained through personal experience and observation. In this scenario, art experts rely heavily on tacit knowledge when determining the authenticity of a work of art. They use their intuition and experience to identify subtle differences between real and fake pieces, making tacit knowledge essential to their profession.

Question 13

In the context of subjective effects of employee appraisals,which of the following best defines availability bias of appraisers?

Accepted Answer

Availability bias refers to the tendency to rely on easily accessible or memorable information when making judgments, rather than considering all available information. Therefore, Option C is the correct definition of availability bias in the context of employee appraisals. Option A refers to the primacy effect, Option B refers to the halo effect, and Option D refers to the contrast effect.

Question 14

Which of the following best defines tacit knowledge?

Accepted Answer

Tacit knowledge refers to knowledge that is difficult to articulate or express. It is often gained through personal experience and cannot be easily codified or written down. It is often implicit and intuitive, making it difficult to transfer to others.

Question 15

According to Herbert Simon,in the context of decision making,bounded rationality is:

Accepted Answer

Bounded rationality refers to the idea that decision making is limited by a variety of constraints, including incomplete information, limited cognitive processing ability, and time constraints. This means that decision makers cannot always make fully rational, optimal decisions, but instead must settle for choices that are "good enough" based on their available information and resources. Bounded rationality recognizes that decision making is often complex, uncertain, and influenced by a wide range of factors beyond a decision maker's control.

Question 16

Which of the following best defines satisficing?

Accepted Answer

Satisficing refers to the process of developing alternatives until one that performs adequately on specific criteria is found, rather than seeking the best possible solution. It involves finding a solution that is good enough to meet minimal requirements or standards.

Question 17

Kingston is a project manager who appraises his employees based only on their most recent performances and disregards their performance over the entire appraisal period.Based on these characteristics,which of the following biases does Kingston have toward his employees?

Accepted Answer

Kingston is demonstrating an availability bias, which occurs when someone makes a judgment about something based on how easily examples come to mind. In this case, Kingston is basing his appraisals on the most recent performances because they are the most readily available or memorable, rather than considering the entire appraisal period.

Question 18

With regard to subjective effects on employee appraisals,a(n)_____ is evident when an appraiser uses one piece of known information to generalize an employee's performance where no information is available.

Accepted Answer

The halo/horn bias is evident when an appraiser allows one characteristic (either positive or negative) to influence their overall appraisal of an employee's performance, rather than evaluating each aspect of their performance separately.

Question 19

Elizabeth has been given the task of making the production process more efficient.Her manager has failed to set any goals and Elizabeth is unaware of his requirements.Additionally,she has insufficient information on the process and how to improve it.This has forced her to rely on intuition and take inspiration from past experiences to implement her decision.Which of the following decision-making methods does this exemplify?

Accepted Answer

Elizabeth is using the subjective method as she relies on intuition and past experiences due to a lack of clear goals and insufficient information.

Question 20

With regard to subjective effects on employee appraisals,an initial poor impression being weighed too highly in an appraisal is a typical example of a(n)_____.

Accepted Answer

Anchoring and adjustment bias occurs when an initial impression (anchor) heavily influences perceptions and decisions, such as appraisals, even when subsequent information is available.

Quiz 6: Designing a Motivating Work Environment