Question 1

Chelsea has been contemplating buying a red car. When she visits the used cars dealership, she looks at a red Ford Hatchback and buys it even before checking for its technical specifications. Chelsea's decision is an example of _____.
A) optimization
B) escalation of commitment
C) an evidence-based decision
D) satisficing
E) a decision under uncertainty

Accepted Answer

This scenario illustrates satisficing. Satisficing is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency.

Question 2

Bounded rationality is assumed in the _____ model of decision making.
A) administrative
B) rational
C) classical
D) groupthink
E) irrational

Accepted Answer

The administrative model of decision making assumes that decision makers are constrained by bounded rationality.

Question 3

According to the evidence-based management approach, managers must _____.
A) discourage employees from telling the unpleasant truth
B) be committed to fact-based decision making
C) avoid experimentation
D) completely rely on the recommendations made by others
E) base decisions on untested but strongly held beliefs

Accepted Answer

According to the evidence-based management approach, managers must be committed to fact-based decision making-which means being committed to getting the best evidence and using it to guide actions.

Question 4

_____ is an innate belief about something without conscious consideration.
A) Optimization
B) Intuition
C) Logic
D) Ethics
E) Risk propensity

Accepted Answer

Intuition is an innate belief about something without conscious consideration.

Question 5

_____ is one major element of organizational politics that is especially relevant to decision making.
A) Coalitions
B) Intuition
C) Escalation of commitment
D) Satisficing
E) Risk propensity

Accepted Answer

Coalitions is one major element of organizational politics that is especially relevant to decision making.

Question 6

A marketing manager decides to launch a new product because it is the first product that came to his mind, even if there are several better products to be explored. Which of the following is illustrated in the scenario?
A) Escalation of commitment
B) Rational decision making
C) Bounded rationality
D) Satisficing
E) Optimization

Accepted Answer

This scenario illustrates satisficing. Satisficing is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency.

Question 7

Which of the following statements is true about the administrative model of decision making?
A) It suggests that political forces do not exist in business scenarios.
B) It suggests that managers may not always make decisions that best serve the interests of their organizations.
C) It suggests that managers use a blend of subjective knowledge and analysis to choose the best alternative.
D) It suggests that decisions should only be made individually and not in groups.
E) It suggests that decisions made by groups are better than decisions made by individuals.

Accepted Answer

The administrative model suggests that managers may not always make decisions that best serve the interests of their organizations. The model holds that decision makers (1) use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to satisfice when making decisions.

Question 8

According to the administrative model, decision makers:
A) use incomplete and imperfect information.
B) are never constrained by bounded rationality.
C) tend to avoid satisficing when making decisions.
D) are not limited by their values and unconscious reflexes while making decisions.
E) always act in the best interests of their organizations.

Accepted Answer

The administrative model is a decision-making model that argues that decision makers (1) use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to satisfice when making decisions.

Question 9

Which of the following statements is true about the administrative model of decision making?
A) It suggests that most managers make decisions rationally and logically.
B) It suggests that decisions that are based on instincts are better than the ones based on logic.
C) It suggests that managers tend to satisfice when making decisions.
D) It suggests that managers have the most accurate information about decision situations.
E) It suggests that managers should not make decisions based on mathematical analysis.

Accepted Answer

The administrative decision-making model argues that decision makers (1) use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to satisfice when making decisions.

Question 10

For his work in developing the administrative model to describe how managers make decisions in the real world, Herbert Simon won the Nobel Prize in _____.
A) Medicine
B) Economics
C) Peace
D) Psychology
E) Management

Accepted Answer

For his work in developing the administrative model to describe how managers make decisions in the real world, Herbert Simon won the Nobel Prize in Economics.

Question 11

_____ is one of the factors that makes an alternative infeasible.
A) Decrease in expenditure
B) Increase in production capacity
C) Low costs
D) Increased satisfactoriness
E) Legal barriers

Accepted Answer

While evaluating alternatives in the rational decision-making process, some alternatives may not be feasible because of legal barriers. And limited human, material, and information resources may make other alternatives impractical.

Question 12

The administrative model of decision making argues that decision makers _____ while making decisions.
A) use complete and perfect information
B) do not use intuition while making decisions
C) are constrained by bounded rationality
D) completely avoid escalation of commitment
E) use only instincts

Accepted Answer

The administrative model holds that decision makers (1) use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to satisfice when making decisions.

Question 13

Tim is the production manager at a steel factory. One of the steel processing machines in the factory has broken down and has to be replaced. Tim decides to buy a new machine from a company that he has read reviews of in industry magazines, even though there are other companies offering a discount on machines with better functionality. This is an example of how managers are constrained by _____.
A) bounded rationality
B) escalation of commitment
C) risk propensity
D) groupthink
E) political forces

Accepted Answer

This scenario illustrates bounded rationality. Bounded rationality is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits.

Question 14

Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the software that is required for her business. She does this because all her family members have used computers of the same brand all their lives. This is an example of how decision makers are constrained by _____.
A) political forces
B) bounded rationality
C) Lucy's high risk propensity
D) logic
E) organizational strategies

Accepted Answer

This scenario illustrates bounded rationality. Bounded rationality is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits.

Question 15

Mike is in a hurry to appoint a personal assistant to help him with scheduling his meetings with clients. He posts an advertisement on a job website, and picks the first person who sends in her resume for the job. He only checks for the candidate's qualification and does not consider her work experience. This is an example of _____.
A) rational decision making
B) classical decision making
C) satisficing
D) evidence-based management
E) optimizing

Accepted Answer

Satisficing is illustrated in the scenario. Satisficing is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency.

Question 16

_____ was one of the first experts to develop the administrative model of decision making.
A) Elton Mayo
B) George Bennett
C) Martin Johnson
D) Jack Welch
E) Herbert Simon

Accepted Answer

Herbert A. Simon was one of the first experts to develop the administrative model of decision making.

Question 17

Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most familiar. This is an example of _____.
A) optimizing
B) bounded rationality
C) satisficing
D) synergy
E) escalation of commitment

Accepted Answer

This scenario illustrates bounded rationality. Bounded rationality is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits.

Question 18

Political forces, intuition and escalation of commitment, risk propensity, and ethics constitute the _____ aspects of decision making.
A) rational
B) administrative
C) classical
D) behavioral
E) sequential

Accepted Answer

Political forces, intuition and escalation of commitment, risk propensity, and ethics constitute the behavioral aspects of decision making.

Question 19

_____ is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency.
A) Satisficing
B) Groupthink
C) Optimization
D) Bounded rationality
E) Escalation of commitment

Accepted Answer

Satisficing is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency.

Question 20

_____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits.
A) Satisficing
B) Escalation of commitment
C) Risk propensity
D) Groupthink
E) Bounded rationality

Accepted Answer

Bounded rationality is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits.

Quiz 4: Managing Decision Making

Chelsea has been contemplating buying a red car. When she visits the used cars dealership, she looks at a red Ford Hatchback and buys it even before checking for its technical specifications. Chelsea's decision is an example of _____.

Bounded rationality is assumed in the _____ model of decision making.

According to the evidence-based management approach, managers must _____.

_____ is an innate belief about something without conscious consideration.

_____ is one major element of organizational politics that is especially relevant to decision making.

A marketing manager decides to launch a new product because it is the first product that came to his mind, even if there are several better products to be explored. Which of the following is illustrated in the scenario?

Which of the following statements is true about the administrative model of decision making?

According to the administrative model, decision makers:

Which of the following statements is true about the administrative model of decision making?

For his work in developing the administrative model to describe how managers make decisions in the real world, Herbert Simon won the Nobel Prize in _____.

_____ is one of the factors that makes an alternative infeasible.

The administrative model of decision making argues that decision makers _____ while making decisions.

_____ was one of the first experts to develop the administrative model of decision making.

Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most familiar. This is an example of _____.

Political forces, intuition and escalation of commitment, risk propensity, and ethics constitute the _____ aspects of decision making.

_____ is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency.

_____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits.