Deck 12: Decision Making, Creativity, and Ethics

Question 1

The first phase of the rational decision-making model is

A)problem definition.
B)solution.
C)conflict.
D)perceptual distortion.
E)managers only.

Answer 1

A

Question 2

Tom consistently chooses the ultimate alternative after identifying criteria and allocating weights to every alternative. This is known as ________ decision making.

A)pensive
B)cautious
C)rational
D)impulsive
E)erratic

Answer 2

C

Question 3

A choice made from alternatives is defined as

A)a decision.
B)a criterion.
C)an attribution.
D)a problem.
E)a judgment.

Answer 3

A

Question 4

Looking for a solution that is satisfactory and sufficient is called

A)suboptimizing.
B)seeking an implicit favourite.
C)simplifying.
D)satisficing.
E)optimizing.

Question 5

Bounded rationality is criticized because it is based on

A)simplified models that lack complexity.
B)institutional memory.
C)too tight a structure.
D)the outcome of highest utility.
E)a knowledge model that is too complex.

Question 6

Rationality assumes

A)high intelligence.
B)consistency
C)maturity.
D)unlimited choices.
E)unlimited power and influence.

Question 7

Which of the following conditions would probably NOT lead to intuitive decision making?

A)when time is limited
B)when facts don't clearly point the way to go
C)when a high level of certainty exists
D)when facts are limited
E)when there is pressure to come up with the right decision

Question 8

When a manager immediately hires the person he/she feels is "good enough," they are employing what decision-making process?

A)intuitive decision making
B)satisficing
C)heuristics
D)bounded-rationals
E)reflexivity decision-making

Question 9

You decide to spend more money on the project, even though you believe it to be improbable that you will succeed. You are guilty of

A)availability heuristic.
B)representative heuristic.
C)escalation of commitment.
D)satisficing.
E)ignoring the base rate.

Question 10

The rational decision-making model would best be described as an exercise in

A)establishing goals.
B)evaluating people.
C)evaluating alternatives.
D)choosing the option of highest utility.
E)focusing on corporate culture.

Question 11

The tendency for people to base their judgments on information that is readily available but may NOT be accurate is called

A)representative bias.
B)availability bias.
C)escalation of commitment.
D)heuristical fallacy.
E)bounded discretion.

Question 12

One shortcut in judgment that may weaken the decision-making process is in a specific situation is

A)optimalities.
B)escalations.
C)hindsight bias.
D)randomness error.
E)synectics.

Question 13

When managers predict that sales for next year will be the same as last year, despite a weakening economy, they are

A)using framing.
B)using regression to the mean.
C)using confirmation bias.
D)ignoring the base rate.
E)escalating commitment.

Question 14

Which of the following describes the tendency for people to be too optimistic about their abilities?

A)overconfidence bias
B)availability bias
C)escalation of commitment
D)heuristical fallacy
E)bounded discretion

Question 15

Of the following, which best characterizes the satisficing decision-making process?

A)seeking an acceptable solution
B)following bounded rationality
C)using the decision confirmation process
D)searching for consistency
E)one which seeks optimization

Question 16

A decision made from unconscious processing of a person's many experiences is called

A)satisficing.
B)decision making.
C)intuitive.
D)randomness.
E)escalated commitment.

Question 17

You state to the committee helping you that all information and research on this drug and the disease it is to treat has been sorted and processed into the 36 binder that are on the table in front of them. In making this statement and assuming you have complete information you are committing

A)confirmation bias.
B)optimal solution.
C)lateral approach.
D)fundamental attribution error.
E)risk aversion.

Question 18

You feel that you are personally responsible for the lack of success with this drug. One course of action that you may be expected to take is

A)availability heuristic.
B)representative heuristic.
C)escalation of commitment.
D)satisficing.
E)ignoring the base rate.

Question 19

Allocating weights to the decision criteria is unnecessary if

A)all criteria are relevant.
B)all criteria are equally relevant.
C)there are only two.
D)there are three or more criteria.
E)a team is not making the decision.

Question 20

Trying to cover up a wrongdoing and risking public trial and expensive court costs, instead of admitting a mistake, is an example of

A)representative heuristic.
B)availability heuristic.
C)escalation of commitment.
D)risk aversion.
E)risk hindsight.

Question 21

Carol has designated Kevin to be the group's "Devil's Advocate." His job is to challenge the majority opinion on each issue and to offer divergent perspectives. Which group decision-making problem is Carol attempting to avoid?

A)perceptual bias
B)consistency bias
C)randomness error
D)groupshift
E)groupthink

Question 22

A weakness of group decision-making is

A)less complete knowledge and information will be forthcoming.
B)making the decision will be more time consuming.
C)employees will be less accepting of the decision.
D)the decision will probably be of a lower quality.
E)there will be less diversity of views and opinions.

Question 23

Todd has a tendency to rely too much on the initial information at his disposal about any given issue; he fails to integrate and give weight to new information being given to him. This is known as

A)anchoring bias.
B)confirmation bias.
C)performance bias.
D)overconfidence bias.
E)availability bias.

Question 24

Gill has been criticized for making decisions superficially without digging for the information that he really needs. This is known as

A)anchoring bias.
B)confirmation bias.
C)availability bias.
D)overconfidence bias.
E)performance bias.

Question 25

A group decision-making method in which each individual team member preplans their ideas and solutions for the problem and brings these ideas to the group, is known as

A)groupshift.
B)nominal group technique.
C)groupthink.
D)brainstorming.
E)consistency bias.

Question 26

Terry has been accused of being quite selective when researching an issue by only taking into consideration information that confirms his initial point of view and ignoring information to the contrary. This is known as

A)availability bias.
B)performance bias.
C)anchoring bias.
D)overconfidence bias.
E)confirmation bias.

Question 27

Hari has a long history of success, but more recently his judgment has come into question in some decisions that he has made. Some believe that he is too optimistic about his own performance, and that affects his judgment. Hari may be committing

A)performance bias.
B)perceptual bias.
C)semantic bias.
D)overconfidence bias.
E)anchoring bias.

Question 28

After reflecting on his staff's decision-making abilities, James reaches the conclusion there are limitations on a person's ability to interpret, process and act on information. His opinion reflects

A)groupthink.
B)bounded rationality.
C)satisficing.
D)anchoring.
E)confirming.

Question 29

If someone settles on an alternative that is "good enough" because it meets the minimum requirements of the situation, this is known as

A)rational decision making.
B)framing.
C)satisficing.
D)heuristics.
E)intuition.

Question 30

The tendency for people to base their judgments on information that is readily available to them rather than complete data is known as

A)framing.
B)bounded rationality.
C)intuition.
D)availability bias.
E)regression.

Question 31

Fred is a great decision maker, but he is superstitious, so he steadfastly maintains that he will not make any big decisions on Friday the 13th. This is known as

A)perceptual bias.
B)availability bias.
C)randomness error.
D)winner's curse.
E)escalation of commitment.

Question 32

Liam makes a lot of decisions simply by "gut feel," and more often than not he makes the right one. This is known as ________ decision making.

A)pensive
B)rational
C)intuitive
D)impulsive
E)cautious

Question 33

Ted decided to discontinue a product line a year ago; since then, it is clear this was the wrong decision. Nevertheless, Ted insists that he will be proven correct in time and he has no plans to change his mind. This is an example of

A)delusional behaviour.
B)escalation of commitment.
C)randomness error.
D)winner's curse.
E)hindsight bias.

Question 34

Omar has noticed that a chronic problem facing the work team he is on is the is pressure to conform; when the team is discussing a situation, it seems there is pressure to move quickly to agreeing on a decision, which means that the group does not usually adequately consider other alternatives that are less popular and less well known. This phenomenon is known as

A)groupshift.
B)perceptual bias.
C)randomness error.
D)availability bias.
E)groupthink.

Question 35

A strength of group decision-making is that

A)group decision-making will be faster.
B)group discussions will be shared equally.
C)there will be increased acceptance of the decision.
D)group decision making will not be viewed as legitimate.
E)group decision making will be more efficient.

Question 36

As a practice, we should assume our most of our decisions are ________, and evaluate them with a critical process.

A)values
B)judgments
C)behaviours
D)perceptions
E)thoughts

Question 37

Compared to group decision-making, individual decision-making outperforms on the criteria of

A)speed.
B)diversity of perspectives.
C)acceptance of solution.
D)higher quality decision.
E)more complete information.

Question 38

You have observed that the group tends to arrive at consensus very quickly and you know that the group is very cohesive. You conclude that they may be suffering from

A)inefficiency syndrome.
B)groupshift.
C)disintegrating norms.
D)groupthink.
E)rationalization.

Question 39

Freda's best skill as a group leader is to be able to get the group to generate a large number of alternatives while encouraging everyone to withhold criticism of any of the proposed alternatives. This technique is known as

A)groupthink.
B)groupshift.
C)brainstorming.
D)nominal grouping.
E)consensus decision making.

Question 40

Ben has noticed that after his team discusses any issue, the conservative people become even more cautious and the aggressive people get even bolder. This phenomenon is known as

A)groupthink.
B)perceptual bias.
C)randomness error.
D)groupshift.
E)consistency bias.

Question 41

Your managers are located in Taiwan, India, Brazil, and the United States. Which group decision-making technique might be the easiest to arrange in terms of speed and task orientation?

A)interacting
B)brainstorming
C)nominal group
D)electronic meeting
E)group rationalization

Question 42

Jerry has fostered a spirit of competition among his staff members that produces winners and losers. This approach is very likely to stifle

A)groupthink.
B)creativity.
C)consensus decision making.
D)perceptual bias.
E)randomness error.

Question 43

Interpersonal conflict would be a big problem if it should develop in the work group. Which type of group would have the greatest potential for interpersonal conflict?

A)interacting
B)brainstorming
C)nominal
D)electronic
E)heterogeneous

Question 44

The most recent approach to group decision making blends the nominal group technique with computer technology. It is known as

A)the electronic meeting.
B)electronic mail.
C)computerized decision making.
D)electronic participation.
E)electronic database handling.

Question 45

Which technique has the greatest potential for interpersonal conflict?

A)interacting
B)nominal group
C)brainstorming
D)meeting
E)computer-assisted

Question 46

Which of the following is TRUE about electronic meetings?

A)This method is good for building group cohesiveness.
B)This method is good for number and quality of ideas.
C)This method tends to raise social pressures to a maximum.
D)This method is an expensive means for generating a large number of ideas.
E)Potential for interpersonal conflict is high.

Question 47

Which of the following is a disadvantage of electronic meetings?

A)honesty
B)speed
C)cost
D)anonymity
E)task orientation

Question 48

If commitment to the solution is your effectiveness criteria, which type of group should be the most effective?

A)interacting
B)brainstorming
C)nominal
D)electronic
E)electronic meeting

Question 49

Developing group cohesiveness is an important effectiveness criteria for your group. Which type of group would you want to avoid?

A)interacting
B)brainstorming
C)nominal
D)electronic
E)consensus mapping

Question 50

Brainstorming is

A)used to build group cohesiveness.
B)a technique that tends to restrict independent thinking.
C)a process for generating ideas.
D)used mainly when group members cannot agree on a solution.
E)used when no other method is available.

Question 51

Which type of decision-making group is most committed to the group solution?

A)interacting
B)brainstorming
C)nominal
D)electronic
E)computer-assisted

Question 52

When group members become more exaggerated in their opinions and positions as group discussions go on, the group has experienced

A)group process.
B)groupthink.
C)group demography.
D)groupshift.
E)group rationalization.

Question 53

Corry has always believed that in order to generate new and creative ideas, a group setting is the best. Thus, in terms of creativity, he considers groups to be

A)more efficient than individuals.
B)less effective than individuals.
C)less efficient than individuals.
D)more effective than individuals.
E)as effective as individuals.

Question 54

Sammy has noticed a tendency of his staff to become overconfident when working in a group, leading them to take more risks than they normally would on their own. This is a symptom of

A)bounded rationality.
B)groupshift.
C)groupthink.
D)perceptual bias.
E)randomness error.

Question 55

You have decided to use the electronic meeting technique. Which of the following is NOT true about this type of meeting?

A)Participants type their responses onto a computer screen.
B)You can expect participants to be honest.
C)Participants will be anonymous.
D)Group cohesiveness will be high.
E)Quality of ideas will be high.

Question 56

What Don doesn't like about working in groups is that it takes much more time than it would take him to do things on his own. Thus, in terms of usage of time, his view is that groups are

A)less effective than individuals.
B)more effective than individuals.
C)less efficient than individuals.
D)more efficient than individuals.
E)as efficient as individuals.

Question 57

Groupshift most often means decisions

A)are made by groups rather than individuals.
B)contain greater risk.
C)are made more quickly.
D)prove less effective.
E)are more conservative.

Question 58

Creativity is probably most important in

A)helping identify all viable alternatives.
B)selecting the best alternative.
C)allocating weights to criteria.
D)evaluating the alternatives.
E)using alternatives to develop task structures.

Question 59

Which of the following is likely to generate the lowest number of ideas?

A)interacting groups
B)brainstorming
C)computer-assisted group
D)nominal group technique
E)electronic meetings

Question 60

The ability to produce novel and useful ideas is called

A)creativity.
B)talent.
C)decision making.
D)lateral thinking.
E)problem structuring.

Question 61

If you explain that decisions should respect and protect the special relationships that individuals have with each other, you will include

A)project management principles.
B)escalation of commitment.
C)the criterion of care.
D)paradigm shift.
E)management principles.

Question 62

You decide to emphasize the ethical criterion that currently dominates business decision making. Which criterion is this?

A)utilitarian
B)justice
C)rights
D)synectics
E)moral development

Question 63

Norma always tries to make decisions that will result in the greatest good for the greatest number of people. This approach is known as

A)ethical decision making.
B)utilitarianism.
C)groupthink.
D)morality.
E)whistle blowing.

Question 64

It is important to note that what is considered unethical in one country may not be viewed similarly in another country. This is because

A)cultural differences are extreme in Asia.
B)North Americans have homogeneous values.
C)Western culture encourages individuality while Eastern culture supports group behaviour.
D)there are no global ethical standards.
E)perspective is subjective.

Question 65

Many companies are developing corporate ethics through a variety of methods and procedures. Which of the following would NOT foster corporate ethics?

A)Provide specific examples of situations where there is no right or wrong answer.
B)Rely on people to be guided by their conscience.
C)Structure a favourable culture where people will recognize the role of ethics.
D)Have management issue specific regulations to be followed by employees.
E)Substitute understood and acceptable values for rules and regulations.

Question 66

Which of the following are criteria for making ethical choices?

A)utilitarianism, justice, rights, care
B)utilitarianism, care, justice, satisficing
C)heuristics, utilitarianism, justice, rights
D)satisficing, justice, rights, heuristics
E)care, utilitarianism, heuristics, rights

Question 67

The study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong is known as

A)morality.
B)values.
C)ethics.
D)rational decision making.
E)heuristics.

Question 68

Jim has been identified as a risk-taker, which in the past has proven to be successful for him and BigChip Inc. Risk-takers generally make decisions intuitively, based on experience and other characteristics which are relevant to their views and perceptions. In which situation will intuitive decision making likely to be used?

A)when there is much precedent and past history to draw on
B)when analytical data and information appear to be of little or no use
C)when variables are logically and scientifically predictable
D)when facts clearly point the way to a logical conclusion
E)when an obvious and plausible alternative solution exists

Question 69

What can happen to righteous individuals when the organizational environment permits or encourages unethical practices?

A)change their values
B)see a new perspective
C)become corrupted
D)allow others to influence them
E)have less productivity

Question 70

The question, "Is the decision fair and equitable?" helps determine which of the following?

A)whether to go ahead with the cost investment
B)whether an idea has merit or not
C)whether the decision is ethical
D)whether a product should be introduced or not
E)how to go about investing in your people

Question 71

People who lack a ________ sense are much less likely to make unethical decisions if the organizational environment ignores ethical behaviours.

A)strong moral
B)strong intuitive
C)weak behaviour
D)strong judgmental
E)moderate extroverted

Question 72

Jim knows that expansion into new technology will have to be carefully managed. Managers, in many instances, are content with reasonable rather than best-possible solutions. A weakness of rational decision-making in Jim's situation is the assumption that

A)there are no time or cost constraints.
B)decisions will never be made that produce the highest perceived value.
C)decision criteria vary over time.
D)all possible consequences of each alternative are unknown.
E)criteria weights remain constant at all times.

Question 73

Utilitarianism is used in decisions that provide the

A)least good for the least number.
B)greatest good for the greatest number.
C)greatest good for the decision makers.
D)greatest good for the least privileged.
E)greatest good for the best performers.

Question 74

Individuals who have progressed to higher levels of moral development will place increased value on the rights of others. These individuals are

A)strongly influenced by their peers to conform.
B)likely to follow an organization's rules and procedures.
C)likely to value the majority opinion.
D)likely to challenge organizational practices that they feel or believe are wrong.
E)predisposed to use their influence to disregard the organization's value system.

Question 75

In which of the following examples is utilitarianism absent?

A)laying off a small number of employees so that the larger number of workers can continue to work full-time jobs
B)moving production operations to other countries, so that the company remains competitive
C)using impartial means to equitably distribute benefits and costs
D)discontinuing products with questionable effects on health
E)raising prices to increase profitability

Question 76

Which of the following questions helps determine whether a decision is ethical?

A)Does this decision cost more than the benefits received?
B)Is the decision fair and equitable?
C)How long will the solution take to complete?
D)When can the results be expected?
E)What minimum outcome is expected?

Question 77

Another issue for Jim is ethical practices. Ethical practices are a major focus that other companies, suppliers and competitors are emphasizing when they represent themselves to the larger community. Which of the following will NOT foster high ethical business practices in Jim's organization?

A)high moral behaviour by senior management
B)adherence to job tasks and job descriptions
C)visible promotion and recognition of employees who display moral behaviour
D)visible punishment for those who act unethically
E)performance appraisals that evaluate means and results

Question 78

Some managers at BigChip Inc. are cautioning Jim that creativity can be stifled because of the social environment within which the employees are functioning. This means that the potential they have for doing creative work may not be fully realized. Which factors act as blocks to the creativity process?

A)expected evaluation
B)conventional obligation
C)physical constraints
D)focusing on purpose
E)emphasizing extrinsic rewards

Question 79

A corporate ethics policy or guideline must be based on core values. Although Jim has practiced many of these values, he has never been faced with developing them and instilling them in his managers and employees. Which of the following is the most basic of core values to work with?

A)dominance
B)persuasiveness
C)articulateness
D)responsibility
E)power

Question 80

You decide to teach the group about the importance of making decisions consistent with fundamental liberties and privileges. You are planning to focus on which criterion?

A)utilitarian
B)justice
C)rights
D)privilege
E)conformity