Question 1

Authors suggest that in all steps of the decision-making process,a decision maker should consider
A) escalating commitment.
B) alternative analysis.
C) ethical reasoning.
D) financial impact.

Accepted Answer

Ethical reasoning should be considered at all steps of the decision-making process to ensure that decisions are made with integrity and respect for the rights and welfare of all stakeholders. This approach helps in making decisions that are not only effective but also morally sound.

Question 2

The __________ decision making model assumes incomplete information and bounded rationality.
A) participative
B) classical
C) behavioral
D) delegation

Accepted Answer

The behavioral decision-making model assumes that decision makers have limited information and that their decisions reflect cognitive biases and tendencies. The participative decision-making model involves stakeholders in the decision-making process, the classical decision-making model assumes perfect information and rational decision-making, and the delegation decision-making model involves assigning decision-making authority to others.

Question 3

What is the second step of the decision-making process?
A) Deciding what to do
B) Evaluating the problem
C) Generating alternative courses of action
D) Implementing the decision

Accepted Answer

The second step of the decision-making process is generating alternative courses of action. This involves brainstorming and coming up with different options for addressing the problem or decision at hand. Only after different alternatives have been considered can one begin to evaluate and decide upon the best course of action to take.

Question 4

All humans have limited information processing capabilities.These are called __________ limitations.
A) intuitive
B) financial
C) behavioral
D) cognitive

Accepted Answer

Cognitive limitations refer to the limited processing capabilities of the human brain which can affect attention, memory, and decision-making processes. It is a well-established concept in cognitive psychology and neuroscience.

Question 5

During which step of the decision-making process,cost-benefit analysis is used?
A) Evaluating results
B) Defining the problem
C) Implementing the decision
D) Generating alternative courses of action

Accepted Answer

Cost-benefit analysis is typically used during the step of generating alternative courses of action to evaluate the potential costs and benefits of each option.

Question 6

A lack-of-participation error occurs when:
A) employees do not understand what the management wants them to do.
B) there is a shortage of employees to implement the decision.
C) employees are not capable of implementing the decision.
D) employees, who have to implement the decision, do not participate in the decision making process.

Accepted Answer

A lack-of-participation error occurs when employees who have to implement the decision do not participate in the decision making process. This can result in a lack of buy-in, motivation, and commitment to the decision. It can also lead to a lack of understanding of the rationale behind the decision, making it difficult for employees to effectively carry out their tasks.

Question 7

Comparing the costs and benefits of each potential course of action is called
A) evaluating results.
B) cost-benefit analysis.
C) strategic planning.
D) conducting ethics double check.

Accepted Answer

Cost-benefit analysis is the process of comparing the costs and benefits of different courses of action to determine the best option.

Question 8

In a company,the major issue is a drop in its sales.Which of the following should be followed by the company?
A) The company should have a broad focus.
B) The company should focus on the right problem.
C) The company should have a narrow focus.
D) The company should look at the problem, not the symptom.

Accepted Answer

The answer of In a company,the major issue is a...

Question 9

When making decisions,Jason attempts to select the absolute best alternative solution to a problem.Jason can be said to be focused on __________ decision.
A) managing superior
B) optimizing
C) carefully implemented
D) satisficing

Accepted Answer

Jason's focus on selecting the absolute best alternative solution to a problem suggests that he is trying to optimize his decision-making. Optimizing decisions are made by seeking the best possible outcome, even if it requires significant effort or resources. This is in contrast to satisficing decisions that settle for a satisfactory, although not necessarily optimal, solution.

Question 10

"How would I feel if my family found out about this decision?" "How would I feel if this decision was published in the local newspaper or posted on the Internet?" These are examples of __________ ethical questions.
A) casual
B) spotlight
C) contingent
D) corporate

Accepted Answer

These are spotlight ethical questions because they relate to how the decision would be perceived by a wider audience and potentially impact the individual's reputation and relationships.

Question 11

The classical decision model attempts to provide a(n)__________ decision.
A) behavioral
B) programmed
C) optimizing
D) satisficing

Accepted Answer

The classical decision model aims to provide an optimizing decision - one that maximizes the potential for achieving the best possible outcome. It assumes complete information, a clear set of preferences, and a rational decision maker. The other options, behavioral and satisficing, recognize that decision making is not always rational, and programmed decisions refer to routine or repetitive decisions that can be automated.

Question 12

The behavioral decision model attempts to provide which of these decisions?
A) Classical
B) Satisficing
C) Programmed
D) Optimizing

Accepted Answer

The behavioral decision model, associated with Herbert Simon's work, suggests that individuals aim for "satisficing" decisions rather than optimizing ones due to limitations in information, time, and cognitive processing ability. This approach acknowledges that people settle for a solution that is "good enough" rather than the best possible solution, due to these constraints.

Question 13

The fourth step in the decision-making process is
A) evaluating results.
B) implementing the decision.
C) conducting cost benefit analysis.
D) generating alternatives.

Accepted Answer

After generating alternatives, conducting a cost-benefit analysis, and evaluating the options, the next step is to implement the chosen decision. Without implementation, the decision-making process is incomplete and ineffective. Therefore, option B is the correct answer.

Question 14

The __________ decision making model assumes rationality and complete information.
A) classical
B) logical
C) behavioral
D) optimizing

Accepted Answer

The classical decision-making model assumes rationality and complete information, where decision makers identify all possible alternatives and choose the one that maximizes expected utility. This model is based on the assumption that individuals are rational and seek to maximize their personal self-interest.

Question 15

What is the first step in the decision-making process?
A) Generate alternatives
B) Evaluate results
C) Define the problem
D) Make the decision

Accepted Answer

The first step in the decision-making process is to define the problem. This involves identifying and clarifying the issue that needs to be addressed. Without a clear understanding of the problem, it is difficult to generate alternatives or make a decision.

Question 16

A decision that chooses the first satisfactory alternative that is presented is called a(n)__________ decision.
A) OK
B) reasonable
C) satisficing
D) classical

Accepted Answer

Satisficing decision-making is a process of searching for and selecting the first option that meets the minimum acceptance criteria, even if the decision may not be the best possible option. This method is often used when the decision-maker lacks sufficient information, time or resources to evaluate all options thoroughly.

Question 17

The classical and behavioral models could be used in what step of the decision-making process?
A) Evaluating results
B) Implementing the decision
C) Deciding on a course of action
D) Doing a cost benefit analysis

Accepted Answer

The classical and behavioral models could be used in the step of deciding on a course of action in the decision-making process. These models provide different perspectives and approaches to decision-making, which can help decision-makers better formulate and evaluate potential courses of action. The classical model emphasizes rationality and logical analysis, while the behavioral model takes into account human psychology and social dynamics. Both models can be useful in making informed decisions.

Question 18

Which of the following is not a common error in the first step of the decision-making process?
A) Defining the problem too narrowly
B) Dealing with symptoms, not causes
C) Focusing on the wrong problem
D) Spending too much time defining the problem

Accepted Answer

Spending too much time defining the problem is not a common error, rather it is crucial to spend adequate time and effort in defining the problem correctly to ensure that the right decision is made. Narrowly defining the problem, dealing with symptoms rather than the root cause and focusing on the wrong problem are common errors.

Question 19

What is the third step in the decision-making process?
A) Gathering more information
B) Implementing the decision
C) Completing cost-benefit analysis
D) Deciding on a course of action

Accepted Answer

The third step in the decision-making process is deciding on a course of action. This involves evaluating different options and choosing the one that best aligns with your goals and priorities. Once a decision has been made, you can move on to the next step, which is implementing the decision.

Question 20

The final step in the decision-making process is to:
A) ensure that your options list has all possible alternatives.
B) search for the optimum decision.
C) gain support for your decision.
D) evaluate the results of your implemented decision.

Accepted Answer

Evaluating the results of your implemented decision is the final step in the decision-making process as it allows you to assess the effectiveness of your decision and make any necessary adjustments for future decisions. The other options, such as ensuring all possible alternatives are listed, searching for the optimum decision, and gaining support for your decision, are important steps in the decision-making process but come before the final step of evaluating the results.

Quiz 4: Managers As Decision Makers

Authors suggest that in all steps of the decision-making process,a decision maker should consider

The __________ decision making model assumes incomplete information and bounded rationality.

What is the second step of the decision-making process?

All humans have limited information processing capabilities.These are called __________ limitations.

During which step of the decision-making process,cost-benefit analysis is used?

A lack-of-participation error occurs when:

Comparing the costs and benefits of each potential course of action is called

In a company,the major issue is a drop in its sales.Which of the following should be followed by the company?

When making decisions,Jason attempts to select the absolute best alternative solution to a problem.Jason can be said to be focused on __________ decision.

"How would I feel if my family found out about this decision?" "How would I feel if this decision was published in the local newspaper or posted on the Internet?" These are examples of __________ ethical questions.

The classical decision model attempts to provide a(n) __________ decision.

The behavioral decision model attempts to provide which of these decisions?

The fourth step in the decision-making process is

The __________ decision making model assumes rationality and complete information.

What is the first step in the decision-making process?

A decision that chooses the first satisfactory alternative that is presented is called a(n) __________ decision.

The classical and behavioral models could be used in what step of the decision-making process?

Which of the following is not a common error in the first step of the decision-making process?

What is the third step in the decision-making process?

The final step in the decision-making process is to: