Question 1

________ conflict is differences in perspectives or judgments about issues.

Accepted Answer

Cognitive conflict involves differences in perspectives or judgments about issues, focusing on disagreements that stem from different interpretations, information, or analysis rather than emotional differences.

Question 2

The three requirements for effective group decision making are an appropriate leadership style,the constructive use of disagreement and conflict,and the enhancement of

Accepted Answer

The three requirements for effective group decision making are an appropriate leadership style, the constructive use of disagreement and conflict, and the enhancement of creativity. The option A, conflict, is already present in the second requirement and does not need to be separately enhanced. Option B, groupthink, is actually a hindrance to effective decision making as it involves conformity instead of constructive disagreement. Option C, satisficing, refers to settling for a mediocre solution instead of striving for the best possible outcome, which is not a requirement for effective decision making. Option E, framing, refers to the way a problem or decision is presented and while it can affect decision making, it is not one of the three requirements listed.

Question 3

Szandór is a small business owner who thinks it is more important to spend money on marketing his current product line than to invest in research to develop new products.Which psychological bias is Szandór displaying?

Accepted Answer

Szandór is displaying the bias of discounting the future by prioritizing short-term gain (marketing current product line) over long-term growth (developing new products through research).

Question 4

Which of the following is a new area in which business crises might occur?

Accepted Answer

Information technology is a new area in which business crises might occur. With the increasing use of technology in businesses, there is a higher risk of cyber-attacks, data breaches, and system failures, all of which can lead to significant financial and reputational damage.

Question 5

Which of the following is a psychological bias that can act as a barrier to good decision making?

Accepted Answer

Framing effects refer to the way in which information is presented, which can affect the decisions individuals make. This bias can occur when individuals focus too much on the way information is presented, rather than the content of the information, leading to poor decision-making.

Question 6

Which of the following is a characteristic of managerial decisions that contributes to the difficulty in making a decision?

Accepted Answer

Conflict is a characteristic of managerial decisions that contributes to the difficulty in making a decision. When multiple stakeholders have varying interests and goals, it can be challenging to make a decision that satisfies everyone. The other options are not characteristics of managerial decisions that contribute to difficulty. For example, guaranteed success and certainty are typically not present in managerial decision-making, and structure and speed can actually make decisions easier to make.

Question 7

Which of the following decisions is likely to be a programmed decision?

Accepted Answer

Decisions regarding periodic reorders of inventory are likely to be programmed decisions as they involve routine and repetitive tasks that can be easily automated. These decisions follow a set of established guidelines and procedures based on inventory levels, sales patterns, and vendor lead times.

Question 8

Which of the following statements about brainstorming is true?

Accepted Answer

Brainstorming is a process of generating creative ideas in a group setting. The goal of brainstorming is to generate as many ideas as possible, without any criticism or judgment. The group should build on the ideas of others to generate new and more complex ideas. Thus, option C is the correct choice.

Question 9

Important,difficult decisions that require creative approaches tend to be

Accepted Answer

Nonprogrammed decisions are unique and complex, requiring creative approaches and judgment in order to tackle them effectively. Vigilant decisions involve maintaining a state of alertness or watchfulness, while programmed decisions are routine and can be solved using established procedures. Non-vigilant decisions do not require constant attention, and structured decisions involve clear criteria and established rules for decision-making.

Question 10

The belief that one can influence events even when one has no power over what will happen is known as

Accepted Answer

The belief that one can influence events even when one has no power over what will happen is known as illusion of control.

Question 11

Nasim's employees have requested that he switch the office to flextime so that they can better manage their childcare and commuting schedules.Nasim is reluctant to make a drastic change all at once,so he agrees to experiment with staggering the starting and ending times of the workday over a 90-minute period for three months.If,at the end of that time,productivity does not decline,he will consider implementing a more extreme version of flextime.What model of decision-making is Nasim using?

Accepted Answer

Nasim is using an incremental model of decision-making by testing a small change first (staggering work times by 90 minutes) before potentially implementing a larger change (flextime). This allows for a more cautious and measured approach to decision-making.

Question 12

Yolanda is trying to decide how to diversify her company so that it produces a larger variety of products and competes in new markets.This is a(n)example of a ________ decision.

Accepted Answer

Nonprogrammed decisions are unique, nonrecurring, and require custom solutions. Yolanda's decision to diversify her company is a nonprogrammed decision as it involves assessing new markets and creating a new product range.

Question 13

Which of the following decisions is likely to be a nonprogrammed decision?

Accepted Answer

Nonprogrammed decisions are those that are unique, complex, and require creative solutions. Decisions concerning diversification into new products and markets are likely to be nonprogrammed as they involve a high level of uncertainty and require a creative approach to find the best solution. The other choices are either routine decisions with definite procedures or decisions that can be made based on numerical computations.

Question 14

In goal displacement,a decision-making group

Accepted Answer

Goal displacement occurs when a group loses sight of its original goal and it is replaced by a new, less important goal. This new goal then becomes the focus, and the group may become overly committed to it, even if it is not the best option. This can happen when a group becomes too focused on minor details or loses perspective on the overall objective.

Question 15

During a crisis that involved a toxic spill,the executives of Grenier Chemical were straightforward in sharing the bad news with the public and providing daily updates on the containment and cleanup process.What is the likely long-lasting effect of this communication strategy?

Accepted Answer

By being forthcoming and providing regular updates, Grenier Chemical demonstrated transparency, responsibility, and concern for public safety. This kind of communication strategy helps to build trust with the public and protects the company's reputation. Therefore, the likely long-lasting effect of this communication strategy is a gain of credibility for the company.

Question 16

Which of the following statements about group decision making is true?

Accepted Answer

Studies have shown that groups, given enough time, usually make higher-quality decisions than most individuals. This is because groups can bring together different perspectives, experiences, and expertise to arrive at a more well-rounded decision. However, the time factor is important because if a group is rushed or pressured to make a decision quickly, they may not have enough time to consider all options or factors, leading to lower-quality decisions.

Question 17

When decision makers carefully and conscientiously execute all six stages of decision making,the decision makers are said to have exercised

Accepted Answer

Vigilance refers to the careful and conscientious execution of all stages of decision making, ensuring thoroughness and attention to detail.

Question 18

The ________ model of decision making occurs when people are not sure of their goals,or disagree about the goals,and likewise are unsure of or in disagreement about what to do.

Accepted Answer

The garbage can model of decision making describes a chaotic decision-making process where problems, solutions, and decision-makers are mixed together without a clear understanding of the goals or priorities. This model fits the scenario described in the question where people are unsure about their goals and what to do. The other models listed, such as bounded rationality and coalition, assume a higher level of organization and structure in the decision-making process.

Question 19

According to Simon's bounded rationality,which of the following factors prevents decision makers from being truly rational?

Accepted Answer

According to Simon's bounded rationality, one of the factors that prevent decision makers from being truly rational is the fact that people, including those in the same organization, have conflicting goals. This means that decision makers are limited in their ability to make fully rational decisions because they must take into account the competing goals and interests of different individuals or groups within the organization or larger society.

Question 20

Which of the following is a disadvantage of group decision making?

Accepted Answer

Experiencing groupthink is a disadvantage of group decision making. Groupthink occurs when a group becomes too cohesive and starts to prioritize agreement over critical thinking, leading to flawed decisions.

Quiz 3: Managerial Decision Making