Deck 10: Decision Making by Individuals and Groups

Question 1

Which of the following is an example of a programmed decision situation?

A)arranging financing for constructing a new $50 million office building
B)reorder of raw materials from an established supplier
C)purchase of a new mainframe computer
D)a firm's purchase consideration of a parts manufacturer

Answer 1

B

Question 2

The initial step in a problem solving, decision situation is:

A)problem recognition
B)data analysis
C)generation of alternatives
D)feedback

Answer 2

A

Question 3

All of the following are characteristics of a nonprogrammed decision situation except:

A)complex
B)multivariate
C)unstructured
D)new

Answer 3

B

Question 4

The model of bounded rationality was first proposed by:

A)Victor Vroom
B)Phillip Yetton
C)Herbert Simon
D)Carl Jung

Question 5

Heuristics are:

A)algorithms based on complex decision making
B)complex decision rules used in complex situations
C)shortcuts in decision making that save mental activity
D)mathematical approaches to decision making

Question 6

You are starting your senior year of college and look forward to graduation in May.An important task at hand is selecting courses for your final year of study.All but two of your courses are electives.Your course selections will most likely be made based on the:

A)garbage can model
B)irrational model
C)random model
D)bounded rationality model

Question 7

In the rational model, the decision maker strives to:

A)satisfice
B)optimize
C)select the alternative agreeable to the majority
D)apply a heuristic

Question 8

Netflix places an emphasis on the individual and organizational influences on creativity and innovation. They take great care in hiring the right individuals and targeting top performers with high energy and a willingness to do the work of two or three people. Netflix also has implemented other activities to reinforce the individual and creativity and they include which of the following?

A)unlimited vacation time
B)flexibility in how they perform their jobs
C)paying employees well
D)All of the above

Question 9

A recent study found that the availability of information relating to severe consequences for an unethical decision reduced the likelihood that one would make that decision. Additionally, it was found that the availability of others who believed that a particular act was morally acceptable increased the perceptions that this act was viewed as socially acceptable. The implication of these results for managers suggest:

A)the prevalence of satisficing in the bounded rationality approach and consequently the persistence of problems in organizations.
B)the constraints associated with problemistic search and the fallacy of profit maximization.
C)the need for managers to be aware of how heuristics are used and take care that these short cuts are not leading to poor decisions.
D)All of these

Question 10

Intuition would be a major part of the input for a manager making what kind of decision?

A)programmed
B)rational
C)breakeven point
D)nonprogrammed

Question 11

The rational model of decision making assumes:

A)preferences of the decision maker are inconsistent
B)that all possible alternatives can't be known to decision makers
C)that outcomes can't be optimized
D)that the decision maker can calculate the probability of success for alternatives

Question 12

An effective decision is timely, acceptable to the individuals affected by it, and:

A)efficient
B)achievable
C)specific
D)meets the desired objective

Question 13

Imagine a group of three people (Tom, Joe, and Beth) want to form a two-person team. They can create three different teams: Tom and Joe, Tom and Beth, or Joe and Beth. There are three different two-person teams. Now imagine you have ten people who want to form two-person teams and ten people who want to form eight person teams. You need to determine if there are more two-persons teams possible or more eight person teams possible.This is an example of:

A)Availability heuristic
B)Recency heuristic
C)Representative generation
D)Gamblers fallacy

Question 14

Which decision-making model is the most realistic in portraying the managerial decision process?

A)rational
B)garbage can
C)bounded rationality
D)incremental

Question 15

Under the bounded rationality model of problem solving and decision making:

A)managers follow statistical rules for decision making
B)managers critically view the world as complex and multivariate
C)managers generate a wide array of decision options and select the one that meets all decision criteria
D)managers are comfortable making decisions without identifying all options

Question 16

The final step in the decision-making process is:

A)implementation
B)exploring alternatives
C)feedback and monitoring
D)selecting a course of action

Question 17

The Blue Man Group frequently is confronted with a number of difficult decisions.Many of these decisions would be classified as programmable and unprogrammable.However, the feature states they have consistently made effective decisions as reflected by their continuous success.Which of the following is the best explanation for the Blue Man Group's good decision making?

A)a good fit between the type of decision and choice of decision-making model
B)the consistent use of the bounded rationality model of decision making
C)they understand the skill set of the founders and let each founder make decisions in areas where they have expertise
D)they keep true to a vision and make sound business decisions in line with that vision

Question 18

An important element of the bounded rationality model is:

A)certainty
B)satisficing
C)unlimited information search
D)optimizing

Question 19

Netflix has been regarded as one of the most innovative and creative companies ever. Which of the following add a significant impact on lowering Netflix's overall costs?

A)moving to a subscription based service
B)purchasing movies for their library based on contracts that provided producers a percent of revenues based on movies viewed
C)producing original programming
D)developed proprietary recommendation system

Question 20

In the garbage can model of the decision-making process, decisions are:

A)random
B)systematic
C)sequential
D)optimal

Question 21

When GM continued with a cost cutting strategy that streamlined their operations and focused on SUVs and trucks while losing 82 billion dollars they most likely reflected:

A)the representative heuristic
B)escalating commitment
C)entrapment
D)the gambler's fallacy

Question 22

In the consideration of whether the right or the left part of the brain should be utilized in decision making, the ideal situation is to be:

A)right brain dominant
B)left brain dominant
C)brain-neutralized
D)brain-lateralized

Question 23

Continuing to support a failing course of action is known as:

A)the theory of sunk costs
B)stubbornness
C)conflicted reason theory
D)escalation of commitment

Question 24

Recent research investigating what characteristics make an individual more likely to de-escalate from a course of action concluded:

A)high self-esteem individuals were more likely to de-escalate
B)the opportunity to affirm an important value resulted in de-escalation
C)individuals with an external locus of control were more likely to de-escalate
D)both high self-esteem individuals were more likely to de-escalate and the opportunity to affirm an important value resulted in de-escalation

Question 25

The fourth step in the Z model of problem solving is:

A)data collection
B)problem diagnosis
C)impact analysis
D)objective analysis of alternatives

Question 26

GM CEO Rick Wagoner stuck to a cost cutting strategy that streamlined GM's operations and focused on SUVs and trucks during a time when other automakers saw promise in the green movement. This behavior best reflects:

A)satisficing
B)risk aversion
C)escalation of commitment
D)the garbage can model of decision making

Question 27

The cognitive style that exhibits a preference for data and a detailed, objective approach to decision making is:

A)sensing/feeling
B)thinking/feeling
C)intuiting/thinking
D)sensing/thinking

Question 28

Which of the following best represents the three reasons why managers may hang on to a losing course of action or escalate their commitment?

A)internal locus of control, cognitive dissonance, and overly optimistic
B)cognitive dissonance, overly optimistic, and illusion of control
C)external locus of control, overly optimistic, and cognitive dissonance
D)internal locus of control, cognitive dissonance, and illusion of control

Question 29

An incorrect assumption about the use of intuition in making decisions is that:

A)it is seldom a positive force
B)it is fast or leads to quick decisions
C)it involves learned patterns of information
D)it is an elusive concept and one with many definitions

Question 30

Which of the following is NOT one of the explanations for the escalation of commitment?

A)cognitive dissonance theory
B)optimism
C)illusion of control
D)high or low self-monitoring

Question 31

The research regarding intuition and managerial roles suggests that:

A)managers rarely use intuition
B)in most cases managers use a systematic step-by-step approach to decision making
C)managers make judgments based on hunches
D)intuition has not been shown to be very effective as an antidote to over analysis

Question 32

According to the Jung's cognitive style theory and the extension of this model by Myers in the form of the Z model, the first step in the Z problem solving model, which is to examine facts and detail, uses which of the following to gather information about the problem?

A)feeling
B)sensing
C)intuiting
D)thinking

Question 33

Research on intuition, suggests all of the following can be techniques used by managers to tap into their intuition except:

A)practicing relaxation techniques
B)using images to guide the mind
C)taking creative pauses before making a decision
D)using decision heuristics and satisficing

Question 34

Research indicates that women are:

A)less averse to risk than men
B)more averse to risk than men
C)the same as men with respect to risk aversion
D)less inclined to commit resources to a losing course of action than men

Question 35

You own and operate a small pizza shop.The shop has been profitable but it needs renovation.You start the renovation only to discover that a pizza chain has bought a vacant building two blocks away and plans to open a shop within 120 days.Undoubtedly, competition will intensify.You decide to accelerate renovation work.You are trying to:

A)escalate the risk
B)avoid risk
C)greatly minimize risk
D)better manage risk by trying to improve your shop significantly before the other one opens

Question 36

The right side of the brain is best used for which type of activity or decision?

A)flowchart work processes
B)develop visions and strategic plans
C)day-to-day operations
D)tax preparations

Question 37

Which of the following is an effective way of managing decisions in order to avoid escalation of commitment?

A)Don't split the responsibility for decisions about projects.
B)Don't reward people who admit to poor decisions.
C)Don't allow graceful exits from poor decisions.
D)Have groups rather than individuals make initial investment decisions.

Question 38

A decision situation where some information is known and probabilities can be assigned to alternative solutions reflects a decision made under:

A)uncertainty
B)randomness
C)certainty
D)risk

Question 39

The combination of a perceiving style and judging style that an individual prefers for gathering information and evaluating alternatives is known as:

A)cognitive style
B)mental maps
C)thinking scripts
D)predispositional mental activity

Question 40

Step one of the Z model corresponds to the _____ cognitive style.

A)sensing/thinking
B)intuiting/feeling
C)sensing/intuiting
D)sensing/feeling

Question 41

An organizational influence that may encourage creativity but may also bring about lower levels of creativity is/involves:

A)supportive supervision
B)participative decision making
C)linking monetary rewards to creativity
D)open and flexible structural arrangements

Question 42

Given the emphasis on teams in the workplace, the current evidence on whether a group or individual is best reflected by:

A)Individuals tend to provide better decision than groups
B)Groups tend to provide better decisions than individuals
C)The most competent individual's decisions tend to outperform a groups decisions
D)The evidence is mixed and more research needs to be conducted

Question 43

If employees can't be provided with full participation in all stages of the decision making process, the highest payoff will result from which of the following combinations?

A)identifying problems, planning implementations, evaluation results
B)identifying problems, generating alternatives, selecting solutions
C)generating alternatives, planning implementations, evaluating results
D)generating alternatives, selecting solutions, evaluating results

Question 44

All of the following statements are consistent assumptions regarding intuition Except:

A)the notion that intuition is fast
B)intuition involves patterns of information that can't be learned
C)intuition is utilized at a level below consciousness
D)intuition appears to be a positive force in decision making

Question 45

Which of the following is generally NOT associated with creative abilities or creativity?

A)breadth of interests
B)self-confidence
C)concern for failure
D)intellectual and artistic values

Question 46

A key organizational requirement for participation in decision making includes:

A)an instrumental reward system
B)clear group goals
C)supportive culture
D)people with individual motivation

Question 47

Searching for the "right" answer and avoiding problems outside of our own expertise would be considered what type of problem for creativity?

A)mental locks
B)cognitive structure
C)structured thinking
D)inflexible maps

Question 48

Research on the impact of moods on tasks that involve considerable cognitive demands suggests:

A)Positive moods result in better performance
B)Negative moods result in better performance
C)Mood didn't really make a difference
D)There was a curvilinear relationship between mood and tasks requiring high cognitive demands

Question 49

Walmart has applied "group participation" as a way of igniting people's passion and designed "My Sustainability Plan" (MSP) which has the goal of:

A)developing stronger positive attitudes toward fellow employees
B)enabling associates to live healthier, live better, and live greener
C)increasing employees commitment to ethical/moral behavior
D)None of the above

Question 50

Responsive creativity is:

A)discovering problems because you want to be creative
B)discovering problems because you are expected to by the organization
C)responding to problems presented to you because you want to be creative
D)responding to a problem that is presented to you by others because it is part of your job

Question 51

Participative decision making tends to be associated with:

A)interpersonal rivalry within a group
B)less creativity among employees
C)rapid decision making
D)higher levels of employee job satisfaction

Question 52

An organization could increase creativity by doing which of the following?

A)utilizing modern work stations
B)eliminate office walls and cubicles
C)emphasize competition for creative ideas
D)providing specific or identifiable rewards

Question 53

Which of the following is NOT considered to be an individual prerequisite for participation and empowerment?

A)capability for psychological involvement
B)motivation to act autonomously
C)reliance on external rewards
D)ability to see relevance for one's own well being

Question 54

Recently, four types of creativity have been proposed based upon the source of the trigger (internal or external) and the source of the problem (presented versus discovered).Which of the following is NOT one of these types of creativity?

A)responsive
B)expected
C)contributory
D)reactive

Question 55

An organization should do or provide all of the following except _____ if it wants to encourage employee creativity.

A)close supervision
B)participative decision making
C)peer support
D)flexible organizational structure

Question 56

Recent research on group versus individual decisions suggests that:

A)individuals will outperform groups on complex tasks
B)individuals outperform groups under most conditions
C)groups outperform individuals under conditions where their is relatively high task certainty
D)groups outperform individuals when the group members have worked together for longer periods of time

Question 57

Research has indicated that creative performance is highest when:

A)flexible structures are implemented
B)there is a supportive environment
C)individuals are part of a team with diverse skills
D)there is a match, or fit, between the individual and organizational influences on creativity

Question 58

Which of the following products was developed at Herman Miller as a result of their risk taking and creative culture?

A)Embody, the first health positive chair
B)RearCam, the first video cam installed at the rear of vehicles
C)Sleep number beds to accommodate different mattress firmness preference
D)All of the above

Question 59

General Motors encountered significant difficulties implementing quality circles in its German plants because workers expected to be directed by supervisors. Which of the following initiatives would best address GM's problem and improve participative problem solving and decision making?

A)Provide training in participative decision making
B)Establish supervisory/worker boards
C)Develop hiring processes that select team oriented individuals
D)None of these

Question 60

The stage of creativity where one engages in other activities while the mind considers the problem is:

A)preparation
B)illumination
C)incubation
D)testing

Question 61

Researchers in Germany conducted experiments meant to contrast the effectiveness of face to face (FTF) goal setting procedures with desktop video conferencing systems (DCVS) goal setting and concluded:

A)participative goal setting in the DCVS condition was the most effective technique of goal setting
B)directive goal setting in the DCVS condition was the most effective technique of goal setting
C)participative goal setting in the FTF condition was the most effective technique of goal setting
D)directive goal setting in the FTF condition was the most effective technique of goal setting

Question 62

A deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressures defines:

A)group polarization
B)groupthink
C)the risky shift
D)the recency effect

Question 63

As a project group leader, you have recognized the benefits of conflict and some disagreement among project members in solving difficult problems.Accordingly, you are likely to use:

A)nominal group techniques
B)brainstorming
C)devil's advocacy
D)dialectical inquiry

Question 64

An approach to minimize groupthink is to:

A)manipulate group members in order to increase peer pressure
B)encourage rationalization
C)denigrate the opposition
D)re-examine the preferred solution even if consensus has been reached

Question 65

Group polarization results in:

A)group members moving from extreme attitudes toward more moderate attitudes
B)group members driving decisions toward consensus
C)the tendency for group discussion to produce shifts toward more extreme attitudes among members
D)the tendency for group members who were initially more cautious to become significantly less cautious

Question 66

A structured approach to decision making that focuses on generating alternatives silently, prevents criticism of alternatives, and uses a voting process to identify group choices is:

A)the Delphi technique
B)dialectical inquiry
C)the nominal group
D)devil's advocacy

Question 67

Which of the following is a characteristic of quality teams?

A)They provide advice to managers who still retain decision-making authority.
B)They operate in parallel fashion to the organization's structure.
C)They emphasize the generation of ideas.
D)They make data-based decisions about improving product and service quality.

Question 68

One of the most fundamental aspects of group decision making is the ability to discuss issues and learn from each other's perspectives. The study reviewed in the Science Feature of Chapter 10 investigated factors that increase group discussion and made several important findings. Which of the following statement(s) best reflect(s) the result of this study?

A)When group members share the perception that the group wanted to improve and learn, important issues were more likely to be discussed
B)When holders of a minority or dissenting opinion were confident and expressed their opinions, group discussion increased
C)When the group leader avoided stating his or her position prior to a group decision group discussion increased
D)Both A & B

Question 69

Recent research examining the effects of cultural diversity on decision making has found that when individuals in a group are racially dissimilar:

A)they engage in less open information sharing
B)they engage in behavior that discourages dissenting perspectives
C)they arrive at better decisions than racially similar groups
D)they tend to become less committed to decisions

Question 70

High cohesiveness, directive leadership, and high stress are antecedent conditions for:

A)a low quality group decision
B)group polarization
C)groupthink
D)satisficing

Question 71

When using verbal brainstorming, a common problem includes:

A)production blocking
B)nonverbal noise which hinders understanding
C)cognitive overload
D)semantic differential

Question 72

An antidote for groupthink in self-managed teams is:

A)brainstorming
B)the use of nominal groups
C)welcoming dissent
D)the Delphi technique

Question 73

A good group decision approach when an objective is to maximize the number of alternatives is:

A)brainstorming
B)dialectical inquiry
C)the Delphi technique
D)nominal grouping

Question 74

A recent review of the decision situation in the Challenger incident identified which two variables as being important to the groupthink phenomena?

A)decision consequence and leadership style
B)leadership style and time constraints
C)group insulation and time constraints
D)decision consequence and time constraints

Question 75

Brainstorming is so much a part of the culture at Ideo that it has its own set of beliefs about what makes brainstorming work best. Ideo has created the Apple mouse, the Palm V, and Oral-B toothbrush. All of the following improved Ideo's brainstorming except:

A)morning vs afternoon meetings
B)group sizes of 6 to 10 people
C)creativity awards
D)cookies during meetings

Question 76

The social comparison approach and persuasive arguments view have both been used to explain:

A)groupthink
B)group polarization
C)cognitive dissonance
D)bounded rationality

Question 77

Which of the following would NOT be an aspect of the communication environment for a virtual team?

A)NGT
B)GDSS
C)DVCS
D)internal intranet

Question 78

A technique that is valuable in its ability to generate a number of independent judgments without the requirement of a face-to-face meeting is:

A)the nominal group technique
B)dialectical inquiry
C)brainstorming
D)the Delphi technique

Question 79

Which of the following would NOT be considered a symptom of groupthink?

A)illusion of invulnerability
B)rationalization
C)illusion of unanimity
D)high conflict

Question 80

Electronic brainstorming overcomes two common problems that can produce verbal group brainstorming failure.These common problems include:

A)information overload and evaluation apprehension
B)production blocking and information overload
C)bounded rationality and evaluation apprehension
D)evaluation apprehension and production blocking