Question 1

The tendency for decision makers to be overconfident of their ability to control activities and events is known as
A) escalation of commitment.
B) the illusion of control.
C) intuition.
D) groupthink.

Accepted Answer

The tendency for decision makers to be overconfident of their ability to control activities and events is known as the illusion of control. This means that decision makers believe that they have more influence over outcomes than they actually do, leading to biased decision making.

Question 2

The decision-making pitfall that favors programmed solutions based on what worked in the past, even though that may no longer be relevant, reflects
A) overlooking important constituencies.
B) a bias toward objective data.
C) the "if it isn't broke, don't fix it" syndrome.
D) premature evaluation.

Accepted Answer

This is known as the "status quo bias" or the "if it isn't broke, don't fix it" syndrome, where people tend to stick with familiar options and avoid change. It can lead to missed opportunities for improvement or innovation.

Question 3

Which decision-making model is most likely to be used when decision makers are undisciplined and have no clear immediate goals?
A) The garbage can model
B) The nominal group technique
C) The administrative model
D) The Delphi technique

Accepted Answer

The garbage can model is most likely to be used when decision makers are undisciplined and have no clear immediate goals. This model describes a chaotic decision-making process where problems, solutions, and decision makers are mixed together in a "garbage can" and decisions are made by chance.

Question 4

The ability of a manager to be perfectly rational is limited by factors such as cognitive capacity and time constraints. This is known as
A) a heuristic.
B) bounded rationality.
C) escalation of commitment.
D) the illusion of control.

Accepted Answer

Bounded rationality refers to the idea that managers have limited abilities to be perfectly rational due to factors like cognitive limitations and time constraints. Heuristics, escalation of commitment, and the illusion of control are related but different concepts.

Question 5

Which of the following may help make the implementation phase more successful?
A) Providing needed resources
B) Developing communication systems that enable management to know if the decision alternative is meeting its planned objective
C) Exercising leadership to persuade others to move the implementation forward
D) all of the above

Accepted Answer

All of the given options can help make the implementation phase more successful. Providing needed resources ensures that the necessary tools and equipment are available for implementation. Developing communication systems helps in monitoring the progress and identifying any obstacles in achieving the planned objectives. Exercising leadership helps in inspiring and motivating individuals and teams to work towards the implementation with dedication and commitment. Therefore, all three options are important in ensuring a successful implementation phase.

Question 6

What is the final stage in the decision-making process?
A) Generating alternative solutions
B) Choosing the best alternative
C) Evaluating the results
D) Identifying and diagnosing the problem

Accepted Answer

Evaluating the results is the final stage in the decision-making process, where the effectiveness of the decision and its implementation are assessed.

Question 7

Emotions and personal preferences may result in poor decisions. The two emotions that are the most disruptive to quality decision making are
A) anger and frustration.
B) anger and depression.
C) egotism and anger.
D) egotism and frustration.

Accepted Answer

While all the emotions listed can impact decision making negatively, anger and depression can have the greatest impact. Anger can cloud judgment and lead to impulsive actions, while depression can lead to apathy and indecisiveness. Egotism and frustration can also be problematic, but may not have as severe of an impact as anger and depression.

Question 8

Former President Richard Nixon's cover-up in the Watergate break-in that eventually led to his resignation is an example of
A) escalation of commitment.
B) the illusion of control.
C) intuition.
D) groupthink.

Accepted Answer

The answer of Former President Richard Nixon's cover-up in the...

Question 9

Which of the following is not considered a benefit of group decision making?
A) Greater pool of knowledge
B) Increased acceptance
C) Increased logrolling
D) Different perspectives on problems

Accepted Answer

Logrolling refers to the practice of making vote trades with other group members in order to gain support for one's own idea or decision. It is not typically seen as a benefit of group decision making, as it can lead to decisions being made based on political maneuvering rather than merit. A, B, and D are all commonly cited benefits of group decision making.

Question 10

The refusal to abandon a choice from an earlier decision even when it is no longer appropriate is called
A) escalation of commitment.
B) the illusion of control.
C) intuition.
D) groupthink.

Accepted Answer

Escalation of commitment is the tendency to continue investing resources in a decision, even though evidence indicates that it's failing. This is often due to a desire to avoid admitting that one made a mistake or to believe that perseverance will eventually pay off. The other options are different phenomena. The illusion of control is the belief that one has more control over events than is actually the case. Intuition is relying on one's "gut feelings" without conscious reasoning. Groupthink is the tendency for a group to make faulty decisions because of pressure to conform and a desire to maintain harmony within the group.

Question 11

Which of the following is not one of the categories of decision styles?
A) Directive
B) Conceptual
C) Nondirective
D) Behavioral

Accepted Answer

Nondirective is not a recognized category of decision styles. The recognized decision styles include Directive, Conceptual, and Behavioral, among others.

Question 12

Which decision style is used by managers who place a high priority on other people's concerns and talk to them about how they feel about the problem and the effect of the decision on them?
A) Directive style
B) Behavioral style
C) Conceptual style
D) Analytical style

Accepted Answer

The behavioral style emphasizes collaboration and consideration of others' concerns and feelings when making decisions.

Question 13

When the accounting manager depends on a gut feeling about a circumstance at work, the basis of his decision is
A) escalation of commitment.
B) the illusion of control.
C) intuition.
D) groupthink.

Accepted Answer

The basis of the accounting manager's decision in this scenario is intuition, which refers to a decision-making process that relies on instinct and feelings rather than concrete evidence or analysis. The other options, such as escalation of commitment, the illusion of control, and groupthink, do not accurately describe the scenario presented.

Question 14

Which of the following is not one of the assumptions of rational decision making?
A) The problem is clear and unambiguous.
B) All the alternatives and their consequences are not known.
C) There are no time and cost constraints affecting the decision.
D) The decision solution will maximize the economic pay off.

Accepted Answer

Rational decision making assumes that all alternatives and their consequences are known, which contradicts option B stating that they are not known.

Question 15

The non-rational decision-making approach developed by Herbert Simon is
A) the garbage can model.
B) the nominal group technique.
C) the administrative model.
D) the Delphi technique.

Accepted Answer

The administrative model of decision-making, developed by Herbert Simon, describes a process where decision-makers settle for the first option that meets a minimum set of criteria, rather than optimizing for the best possible solution. This approach is known as "satisficing" and highlights the limitations of human rationality in decision-making processes.

Question 16

Former U.S. President Ronald Reagan liked to make decisions according to his values and intuition by considering fewer alternatives. This suggests which decision style?
A) Directive style
B) Behavioral style
C) Conceptual style
D) Analytical style

Accepted Answer

The directive style is characterized by making quick decisions based on a few options and relying on one's own judgment and values, which aligns with Reagan's approach.

Question 17

Which decision style is used by those decision makers who base the decision on a rational and objective analysis of data gathered from different sources to make the best possible decision from the information that is available?
A) Directive style
B) Behavioral style
C) Conceptual style
D) Analytical style

Accepted Answer

Analytical style decision makers are known for gathering data from various sources, analyzing the information objectively, and making the best possible decision based on the available information. They are logical and deliberate in their decision-making process, and their decisions are based on facts rather than intuition or personal biases.

Question 18

Which decision-making style is Randy most likely to select when completing a routine customer product order?
A) Directive style
B) Behavioral style
C) Conceptual style
D) Analytical style

Accepted Answer

When completing routine customer product orders, a directive style of decision-making is most appropriate. This style involves making quick and efficient decisions, based on established procedures and rules, and is ideal for situations that do not require much creativity or analysis. Randy is likely to choose this style to ensure that orders are processed efficiently and accurately, without much delay or error.

Question 19

Organization politics can limit rational decision making by
A) controlling resources.
B) influencing policy.
C) favoring the solution that sustains the power of the dominant group.
D) all of the above

Accepted Answer

Organization politics can limit rational decision making in many ways, including controlling resources, influencing policy, and favoring the solution that sustains the power of the dominant group. All of these factors can contribute to a decision that may not be in the best interest of the organization as a whole. It is important for leaders to be aware of these political dynamics and strive to make decisions based on objective criteria rather than personal gain or influence.

Question 20

Bankers who throw good loan money after bad are engaged in
A) escalation of commitment.
B) the illusion of control.
C) intuition.
D) groupthink.

Accepted Answer

Escalation of commitment occurs when an individual or group continues to invest resources, such as money or time, into a failing project or decision despite evidence that it is not succeeding. In the case of bankers, they may continue to provide loans to a borrower who has a history of defaulting, hoping that they will eventually be able to recoup their losses.

Quiz 6: Decision Making

The tendency for decision makers to be overconfident of their ability to control activities and events is known as

The decision-making pitfall that favors programmed solutions based on what worked in the past, even though that may no longer be relevant, reflects

Which decision-making model is most likely to be used when decision makers are undisciplined and have no clear immediate goals?

The ability of a manager to be perfectly rational is limited by factors such as cognitive capacity and time constraints. This is known as

Which of the following may help make the implementation phase more successful?

What is the final stage in the decision-making process?

Emotions and personal preferences may result in poor decisions. The two emotions that are the most disruptive to quality decision making are

Former President Richard Nixon's cover-up in the Watergate break-in that eventually led to his resignation is an example of

Which of the following is not considered a benefit of group decision making?

The refusal to abandon a choice from an earlier decision even when it is no longer appropriate is called

Which of the following is not one of the categories of decision styles?

Which decision style is used by managers who place a high priority on other people's concerns and talk to them about how they feel about the problem and the effect of the decision on them?

When the accounting manager depends on a gut feeling about a circumstance at work, the basis of his decision is

Which of the following is not one of the assumptions of rational decision making?

The non-rational decision-making approach developed by Herbert Simon is

Former U.S. President Ronald Reagan liked to make decisions according to his values and intuition by considering fewer alternatives. This suggests which decision style?

Which decision style is used by those decision makers who base the decision on a rational and objective analysis of data gathered from different sources to make the best possible decision from the information that is available?

Which decision-making style is Randy most likely to select when completing a routine customer product order?

Organization politics can limit rational decision making by

Bankers who throw good loan money after bad are engaged in