Deck 6: Managerial Decision Making

Question 1

Most people underestimate their ability to predict uncertain outcomes.

Answer 1

False

Question 2

The formulation stage of managerial decision making involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

Answer 2

False

Question 3

Step 1 in the managerial decision-making process is recognition of decision requirement.

Answer 3

True

Question 4

Good intuitive decision making is based on an ability to recognize patterns at lightning speed.

Question 5

Administrative and political decision-making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.

Question 6

People who prefer simple, clear-cut solutions to problems often use the directive style of decision making.

Question 7

Brainstorming uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem.

Question 8

Groupthink refers to the tendency of people in groups to suppress contrary opinions.

Question 9

Most bad decisions are errors in judgment that originate in people's limited capacity and natural biases.

Question 10

Two employees in Stacey's department, which has very high turnover, quit, and she has to decide about filling the positions, which are categorized as operationally critical.This would be considered a nonprogrammed decision.

Question 11

The behavioral style of decision making is often adopted by managers who like to consider complex solutions based on as much data as they can gather

Question 12

When considering decisions, people often give disproportionate weight to the last information they received.

Question 13

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.

Question 14

Evidence shows that people who make poor decisions under the influence of strong emotions tend to continue making poor decisions under the influence of strong emotions in the future.

Question 15

Managers will frequently look for new information that contradicts their instincts or original point of view just to balance things out.

Question 16

The most effective managers consistently use a single, preferred decision-making style rather than shifting among styles

Question 17

Most managerial decision making can be accounted for by one of three models: the classical model, the administrative model, and the political model.

Question 18

Making a choice is the most significant part of the decision-making process.

Question 19

Point-counterpoint is a decision-making technique in which groups develop and exchange proposals and discuss and debate the various options until they arrive at a common set of understandings and recommendations.

Question 20

Satisficing means that decision makers choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.

Question 21

Because it can bring together members from all over the world, electronic brainstorming often leads to greater diversity in solutions.

Question 22

After-action reviews should only be conducted after decisions that have led to bad outcomes.

Question 23

__________ decisions are associated with decision rules.

A)Nonprogrammed
B)Unique
C)Programmed
D)Ill-structured
E)Novel

Question 24

Examples of nonprogrammed decisions would include the decision to _____.

A)reorder supplies
B)develop a new product or service
C)perform routine maintenance on one of the machines in manufacturing
D)terminate an employee for violation of company rules
E)grant personal leave to an employee

Question 25

Riley is a manager at the Tinker Tools.She is expected to make decisions that are in the organization's best economic interests.Her decisions should most likely be based on which of the following models of decision making?

A)Administrative
B)Garbage
C)Scientific management
D)Classical
E)Humanistic

Question 26

The tendency to continue investing in a failing project in the hope of turning it around is called the sunk cost effect

Question 27

Decision alternatives can be thought of as tools for reducing the difference between the organization's current and desired performance.

Question 28

Bierderlack has a policy that states that people who are hired for entry-level clerical positions must have a high school diploma or the equivalent.When applications are received for entry-level clerical positions, applicants who do not have a high school diploma or an equivalent are automatically rejected.This is an example of ______.

A)a programmed decision
B)a nonprogrammed decision
C)an insignificant decision
D)poor management
E)a personal grudge

Question 29

During the global financial crisis associated with the 2008 recession, finance companies had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as which type of decision?

A)Bounded
B)Programmed
C)Conventional
D)Wicked decision problem
E)Irrational decision

Question 30

The idea underlying Lenovo's fu pan method is that managers should review every decision they make to improve the next one.

Question 31

Shirley works in the human resource department at Turtle Shells, Inc.She believes she is seeing an increase in alcohol use problems among the workforce.She thinks she needs to investigate further.She is at which of the following stages of the managerial decision-making process?

A)Diagnosis and analysis of causes
B)Development of alternatives
C)Recognition of decision requirement
D)Evaluation and feedback
E)Selection of desired alternative

Question 32

Bobby, a product manager, wants to increase the market share of his product.He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share.Bobby is operating under a condition of ______.

A)risk
B)ambiguity
C)certainty
D)uncertainty
E)brainstorming

Question 33

Genna is collecting data on how well the organization has done since a new strategy was implemented.She is in which of the following stages of the managerial decision-making process?

A)Development of alternatives
B)Implementation of chosen alternative
C)Evaluation and feedback
D)Recognition of decision requirement
E)Selection of desired alternative

Question 34

The concept of quasirationality combines intuitive and analytical thought.

Question 35

The __________ model closely resembles the real environment in which most managers and decision makers operate.

A)normative
B)administrative
C)coalition
D)classical
E)political

Question 36

When managers block or distort negative information because they don't want to be responsible for a bad decision, they are displaying escalating commitment.

Question 37

Managers using a conceptual style of decision making consider many broad alternatives, rely on information from both people and systems, and like to solve problems creatively.

Question 38

Melissa is a manager at InStylez Clothing.Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions.Melissa's situation is most consistent with which of the following concepts?

A)Bounded rationality
B)The classical model of decision making
C)Satisficing
D)Brainstorming
E)Scientific management

Question 39

Feedback works best when it is delayed and emotions have had a chance to settle.

Question 40

The 5 Whys is a question-asking technique that can help diagnose the root cause of a specific problem.

Question 41

__________ exists when managers see potential of enhancing performance beyond current levels.

Question 42

__________ means that decision makers choose the first solution alternative that satisfies minimal decision criteria.

Question 43

When managers base decisions on what has worked in the past and fail to explore new options, they are ______.

A)perpetuating the status quo
B)being influenced by emotions
C)being overconfident
D)justifying past decisions
E)seeing what they want to see

Question 44

Which of the following terms refers to a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making?

A)Brainstorming
B)Groupthink
C)Point-counterpoint
D)Brainwriting
E)Devil's advocate

Question 45

Managers are considered to have a(n) __________ style when they prefer to consider complex solutions based on as much data as they can gather.

A)behavioral
B)conceptual
C)directive
D)analytical
E)classical

Question 46

The term _____ refers to combining intuitive and analytic thought

A)bounded rationality
B)quasirationality
C)creativity
D)cognitive flexibility
E)analytic bias

Question 47

As a top manager, Joanna works with others on her team every day in making important corporate decisions.Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time.This approach is referred to as _____.

A)groupthink
B)devil's advocacy
C)point-counterpoint
D)escalating commitment
E)brainstorming

Question 48

__________ means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

Question 49

__________ decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Question 50

The decision-making step in which managers analyze the underlying causal factors associated with the decision situation is called __________.

Question 51

Which error occurs when managers put too much value on evidence that is consistent with a favored belief or viewpoint and too little on evidence that contradicts their favored position?

A)Confirmation bias
B)Fundamental attribution error
C)Anchoring bias
D)Self-serving bias
E)Sunk cost effect

Question 52

__________ means that all the information the decision maker needs is fully available.

Question 53

Which of the following styles is used by people who prefer simple, clear-cut solutions to problems?

A)Behavioral
B)Conceptual
C)Directive
D)Analytical
E)Classical

Question 54

The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as ______.

A)technological decisions
B)collective intuition
C)decision learning
D)team delay
E)escalating commitment

Question 55

When a human resource staff at Big Bend Inc.reviewed bids for running their employee assistance program, one company stood out with a sophisticated presentation that left everyone impressed.As they did their due diligence, the managers found that the company did not have a stellar reputation, often missed deadlines, and frequently promised more than it could deliver.Still, there was that wonderful presentation and most of the managers gave higher ratings to that company that was hired.What error have these managers made?

A)Being influenced by data
B)Perpetuating the status quo
C)Seeking to defend prior decisions
D)Justifying past decisions
E)Being influenced by initial impressions

Question 56

The __________ model of decision making describes how managers actually make decisions in difficult situations, such as those characterized by nonprogrammed decisions, uncertainty, and ambiguity.

Question 57

All of the following are cognitive biases that can affect a manager's judgment, EXCEPT ______.

A)being influenced by initial impressions
B)justifying past decisions
C)seeing what you don't want to see
D)perpetuating the status quo
E)overconfidence

Question 58

Which error occurs when managers allow initial impressions, statistics, or estimates to control or excessively influence subsequent thoughts and decisions? 

A)Confirmation bias
B)Fundamental attribution error
C)Anchoring bias
D)Self-serving bias
E)Sunk cost effect

Question 59

A __________ is a choice made from available alternatives.

Question 60

Managers with a(n) __________ style may make decisions that help others achieve their goals.

A)behavioral
B)conceptual
C)directive
D)analytical
E)classical

Question 61

The tendency to put too much value on evidence that is consistent with a favored belief or viewpoint and too little on evidence that contradicts a favored position is called __________ 

Question 62

A __________ is assigned the role of challenging the assumptions and assertions made by the group.

Question 63

People with a __________ style of decision making rely on information from both people and systems and like to solve problems creatively.

Question 64

The __________ stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

Question 65

The __________  is a question-asking technique that can help diagnose the root cause of a specific problem.

Question 66

People with a __________ style of decision making usually are concerned with the personal development of others and may make decisions that help others achieve their goals.

Question 67

__________ provides decision makers with information that can precipitate a new decision cycle.

Question 68

A __________ model defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome.

Question 69

__________ means that people have the time and cognitive ability to process only a limited amount of information on which to base decisions.

Question 70

In the __________, managers invest time in reviewing the results of decisions and learn from them.

Question 71

__________ is the willingness to undertake risk with the opportunity of gaining an increased payoff.

Question 72

List the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes.

Question 73

Managers who use a __________ style of decision making are efficient and rational and prefer to rely on existing rules or procedures for making decisions.

Question 74

A __________ is an informal alliance among managers who support a specific goal or solution.

Question 75

__________ occurs when we allow initial impressions, statistics, and estimates to exert excessive influence on our subsequent thoughts and judgments.

Question 76

The __________ style of decision making is often the style adopted by managers having a deep concern for others as individuals.

Question 77

The tendency to continue investing in a failing project in the hope of turning it around is called the __________

Question 78

__________ decision making involves a commitment to making more informed and intelligent decisions based on the best available facts and evidence.

Question 79

__________ combines intuitive and analytical thought.

Question 80

Differences among people with respect to how they perceive problems and make decisions can be explained by a concept called __________.