Question 1

Uncertainty occurs when the outcomes of various actions can be reasonably predicted.

Accepted Answer

Uncertainty occurs when the outcomes of actions cannot be reasonably predicted, as opposed to situations where outcomes are predictable.

Question 2

The administrative model is based on three important concepts: bounded rationality,complete information,and satisficing.

Accepted Answer

The administrative model is based on bounded rationality, incomplete information, and satisficing.

Question 3

The administrative model of decision making recognizes that the assumptions underlying the rational model are realistic.

Accepted Answer

The administrative model of decision making acknowledges that the assumptions of the rational model are often unrealistic due to limitations like incomplete information and bounded rationality.

Question 4

When Ford Canada limits its search for new suppliers to an existing set of alternatives known to the purchasing manager,they are using a satisficing strategy.

Accepted Answer

Satisficing involves selecting an option that meets the minimum criteria or requirements, rather than searching for the optimal solution. Limiting the search to known alternatives fits this approach.

Question 5

The premise of the classical or rational model is that once managers recognize the need to make a decision they should be able to generate a complete list of alternatives and consequences,from which they can make the best choice.

Accepted Answer

The classical or rational model assumes that decision-makers have access to all necessary information and can objectively evaluate all possible alternatives to make the optimal decision.

Question 6

Satisficing is when managers fail to explore all the possible alternatives and choose one that only minimally solves the problem.

Accepted Answer

Satisficing involves selecting an option that meets the minimum requirements to solve a problem, rather than exploring all possible alternatives for the best solution.

Question 7

The rational or classical model of decision making assumes that managers have all the information they need to make an optimal decision in the best interests of the organization.

Accepted Answer

The rational or classical model assumes that decision-makers have complete information, can objectively evaluate all alternatives, and choose the best possible solution for the organization.

Question 8

The ability to make sound decisions based on one's experience and immediate feelings about the information at hand is known as judgment.

Accepted Answer

The answer of The ability to make sound decisions based...

Question 9

Bounded rationality refers to the inability of managers to be completely rational when processing information.

Accepted Answer

Bounded rationality suggests that managers are limited by cognitive constraints and incomplete information, preventing them from making fully rational decisions.

Question 10

The administrative model was developed by March and Simon.

Accepted Answer

The administrative model of decision-making, also known as the bounded rationality model, was developed by Herbert A. Simon and James G. March.

Question 11

The administrative model of decision making recognizes that the assumptions underlying the rational model are rarely accurate.

Accepted Answer

The administrative model acknowledges that decision-makers often operate under bounded rationality, meaning they have limited information and cognitive limitations, making the assumptions of the rational model unrealistic.

Question 12

Decision making involves analyzing options and making determinations about specific organizational goals and courses of action.

Accepted Answer

Decision making is a process that involves evaluating different options and selecting the best course of action to achieve specific organizational goals.

Question 13

Decision making is done every time a manager plans,organizes,directs,or controls organizational activities.

Accepted Answer

Decision making is an integral part of the management process, as it involves choosing among alternatives to achieve organizational goals in planning, organizing, directing, and controlling activities.

Question 14

Routine,virtually automatic decision making that follows established rules or guidelines is known as programmed decision making.

Accepted Answer

Programmed decision making involves routine and repetitive processes that follow established rules or guidelines, making it virtually automatic.

Question 15

Ordering basic office supplies by the office manager whenever the inventory on hand drops below a certain level,is an example of nonprogrammed decision making.

Accepted Answer

Ordering basic office supplies when inventory is low is a routine, repetitive decision that follows established guidelines, making it a programmed decision, not a nonprogrammed one.

Question 16

Satisficing is when managers make lightning-quick calculations of costs and benefits that lead to optimal decisions.

Accepted Answer

Satisficing refers to making decisions that are satisfactory or "good enough," rather than optimal, often due to constraints like limited time or information.

Question 17

Decision making in response to opportunities occurs when managers search for ways to improve organizational performance to benefit customers,employees,and other stakeholder groups.

Accepted Answer

This statement is true. Decision-making in response to opportunities often involves searching for ways to enhance organizational performance in order to create value for various stakeholders, including customers, employees, shareholders, and others. Such decisions may involve investing in new technologies, developing new products or services, entering new markets, or pursuing other strategies aimed at achieving the organization's goals and meeting the needs of its stakeholders.

Question 18

When generating alternatives,managers must never generate a set of feasible alternative courses of action to take in response to the opportunity or threat.

Accepted Answer

Generating a set of feasible alternative courses of action is a crucial step in decision-making for managers to effectively respond to opportunities or threats.

Question 19

The first step in the decision-making process is to generate alternatives.

Accepted Answer

The first step in the decision-making process is to identify and define the problem or decision to be made.

Question 20

The last step in the decision-making process is to learn from feedback.

Accepted Answer

Learning from feedback is essential to evaluate the effectiveness of the decision and to improve future decision-making processes.

Quiz 3: Managing Decision Making