Deck 11: Decision Making and Creativity

Question 1

The rational model of decision making explains how managers should make decisions.

Answer 1

True

Question 2

Once a solution is chosen, it should be implemented; then, stakeholders need to evaluate how effectively the solution solves the problem.

Answer 2

True

Question 3

Nonrational models of decision making explain how managers actually make decisions.

Answer 3

True

Question 4

Brainsourcing is a common technique used by individuals and groups to generate potential solutions.

Question 5

The first stage associated with rational decision making is to generate alternative solutions.

Question 6

The rational model is based on the notion that managers satisfice when making decisions.

Question 7

The benefits of trying to follow a rational process in decision making are quality, transparency, and responsibility.

Question 8

Males tend to make more risky decisions than females. This is an example of a constraint on rationality.

Question 9

Often, decision makers "rush to judgment." Therefore, they are encouraged to slow down when making decisions.

Question 10

Satisfying consists of choosing a solution that meets some minimum qualifications, one that is "good enough."

Question 11

Whether you face a problem or an opportunity, the goal is always to make improvements.

Question 12

The constraints associated with bounded rationality can include personal characteristics as well as the availability of internal and external resources.

Question 13

Normative intuition represents the notion that decision makers are restricted by a variety of constraints when making decisions.

Question 14

In evaluating alternatives and selecting a solution, managers should evaluate the legality and efficiency of potential solutions and conduct a cost-benefit analysis.

Question 15

Tacit knowledge is information that can easily be put into words.

Question 16

A holistic hunch represents a judgment that is based on a conscious integration stored in memory.

Question 17

Intuition represents judgments, insights, or decisions that come to mind on their own without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of those cues.

Question 18

Intuitive processes are influenced by both expertise and feelings.

Question 19

Problem solving is the process of identifying and choosing alternative solutions that lead to a desired state of affairs.

Question 20

An opportunity represents a situation in which there are possibilities to do things that lead to results that exceed goals and expectations.

Question 21

People with a low tolerance for ambiguity thrive in uncertain situations.

Question 22

In the confirmation bias, the decision maker tends to base decisions on information that is readily available in memory.

Question 23

Evidence-based decision making is the process of conscientiously using the best available data and evidence when making managerial decisions.

Question 24

Cognitive shortcuts or biases that are used to simplify the decision-making process are known as decision-making styles.

Question 25

People with a directive style are action oriented and decisive and like to focus on facts.

Question 26

The role of evidence in decision making is most diminished when evidence is used merely to support a decision that has already been made.

Question 27

A simple decision context is stable, with clear cause-and-effect relationships.

Question 28

While the ability to use "big data" is important to government operations, it is unlikely to result in a competitive advantage for business organizations.

Question 29

There are both pros and cons to the use of heuristics.

Question 30

One of the advantages of group decision making over individual decision making is that it takes less time.

Question 31

Instinct, insight, and intuition are synonymous; that is, they are the same thing.

Question 32

A PERT chart is a graphic representation of the process underlying decisions.

Question 33

The extent to which a person has a high need for structure or control in his or her life is known as that person's tolerance for ambiguity.

Question 34

For dynamic/chaotic decision contexts, both intuition and evidence-based decision making are appropriate methods for decision making.

Question 35

People with a conceptual style have a high tolerance for ambiguity and a people or social orientation, and are supportive, receptive to suggestions, and avoid conflict.

Question 36

The first step in Bagley's decision tree is, "Does the proposed action maximize shareholder value?"

Question 37

Bagley's decision tree model can provide a quick formula that managers and organizations can use to evaluate every ethical question.

Question 38

The two dimensions of decision-making style are tolerance for ambiguity and creativity.

Question 39

People with a directive style have a low tolerance for ambiguity and are oriented toward people and social concerns.

Question 40

In a complex decision context, there is one right answer, but many unknowns obscure cause-and-effect relationships. In this kind of situation, the most effective decision making method is intuition.

Question 41

Making judgments or decisions that come to mind on their own, without explicit awareness of the evoking cues and without explicit evaluation of the validity of those cues, is called:

A) Satisficing
B) Rationalizing
C) Intuition
D) Explicit knowledge
E) Evidence-based decision making

Question 42

The process of identifying and choosing alternative solutions that lead to a desired state of affairs is known as:

A) Intuition
B) Heuristics
C) Problem solving
D) Decision making
E) Brainwriting

Question 43

Creativity is the process of producing new and useful ideas concerning products, services, processes, and procedures.

Question 44

The tendency to experience groupthink decreases as a group becomes more cohesive.

Question 45

One of the rules of brainstorming is that criticism should be withheld during the first stage of generating ideas.

Question 46

Which of the following is one of the assumptions underlying nonrational models of decision making?

A) Managers do not possess complete information.
B) Rational decision making is easy.
C) The context for managerial decisions is simple and stable.
D) Decisions can be made with certainty.
E) Managers do not face restrictions when making decisions.

Question 47

In evaluating alternatives, managers should consider all but one of the following. Which one?

A) Quality
B) Cost
C) Ethical considerations
D) Personal preferences
E) Resources

Question 48

Creativity involves a convergence between tacit and explicit knowledge.

Question 49

A(n) ________ is a situation in which there are possibilities to do things that lead to results that exceed goals and expectations.

A) Problem
B) Opportunity
C) Propportunity
D) Holistic hunch
E) Alternative

Question 50

The Delphi technique is a process of electronic brainstorming that allows participants to submit their ideas and alternatives over a computer network.

Question 51

One of the creative performance behaviors is preparation and information gathering.

Question 52

The sources of creative behaviors are all personal; environmental factors have no influence.

Question 53

The stages of rational decision making, in order, are:

A) Identify the problem or opportunity; generate alternative solutions; evaluate alternatives; and implement and evaluate the solution.
B) Generate alternative solutions; identify the problem or opportunity; evaluate alternatives; and implement and evaluate the solution.
C) Evaluate alternatives; identify the problem or opportunity; generate alternative solutions; and implement and evaluate the solution.
D) Evaluate alternatives; generate alternative solutions; identify the problem or opportunity; and implement and evaluate the solution.
E) Identify the problem or opportunity; evaluate alternatives; generate alternative solutions; and implement and evaluate the solutions.

Question 54

Creative performance behaviors produce creative outcome effectiveness.

Question 55

Which of the following statements about tendencies in managerial decision making is false?

A) Managers make decisions too quickly.
B) Managers don't invest resources to properly study the problem and alternative courses of action.
C) Managers study the problem too extensively and collect too much data.
D) Managers take the easy solution without rigorously considering alternatives.
E) Managers don't consider all the relevant data.

Question 56

_________ consists of choosing a solution that meets some minimum qualifications, one that is "good enough."

A) Satisficing
B) Optimizing
C) Minimizing
D) Using intuition
E) Rationalizing

Question 57

The _______ model of decision making explains how managers should make decisions.

A) Intuition
B) Satisficing
C) Holistic
D) Evidence-based
E) Rational

Question 58

________ is solving problems by producing the best possible solution.

A) Satisficing
B) Optimizing
C) Minimizing
D) Using intuition
E) Rationalizing

Question 59

________ models of decision making explain how managers actually make decisions.

A) Rational
B) Nonrational
C) Optimizing
D) Normative
E) Alternative

Question 60

The idea that decision makers are restricted by constraints when making decisions is called:

A) Normative intuition
B) Holistic intuition
C) Bounded rationality
D) Optimal satisfaction
E) Explicit knowledge

Question 61

In a dynamic/chaotic decision environment, a manager should use the _______ method of decision making.

A) Heuristic
B) Rational
C) Satisficing
D) Optimizing
E) Intuition or evidence-based

Question 62

In the _________ bias, a decision maker tends to assess the likelihood of an event occurring based on one's impressions about similar occurrences.

A) Confirmation
B) Availability
C) Representativeness
D) Overconfidence
E) Framing

Question 63

In a simple environment, a manager should use the _______ model of decision making.

A) Heuristic
B) Rational
C) Satisficing
D) Nonrational
E) Intuition

Question 64

Intuitive processes are influenced by:

A) Expertise and feelings
B) Managerial style
C) Rational processes
D) Formal and informal guidelines
E) Optimizing and satisficing

Question 65

__________ represent(s) cognitive shortcuts or biases that are used to simplify the process of making decisions.

A) Normative intuitions
B) Judgmental heuristics
C) Holistic hunches
D) Explicit knowledge
E) Tacit knowledge

Question 66

Information that can easily be put into words is known as:

A) Holistic
B) Bounded
C) Explicit knowledge
D) Normative
E) Heuristic

Question 67

In a complex decision environment, a manager should use the _______ method of decision making.

A) Heuristic
B) Rational
C) Satisficing
D) Optimizing
E) Intuition

Question 68

A decision environment in which cause-and-effect relationships change so fast that no pattern emerges is categorized as:

A) Dynamic/chaotic
B) Complex
C) Complicated
D) Simple
E) Programmed

Question 69

In the _________ bias, a decision maker is influenced by the first information received about a decision, even if it is irrelevant.

A) Confirmation
B) Availability
C) Representativeness
D) Anchoring
E) Framing

Question 70

In the _________ bias, a decision maker tends to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed.

A) Confirmation
B) Availability
C) Escalation of commitment
D) Overconfidence
E) Framing

Question 71

A decision environment in which there is a clear relationship between cause and effect, but some people might not see it, and more than one solution may be effective, is categorized as:

A) Dynamic/chaotic
B) Complex
C) Complicated
D) Simple
E) Programmed

Question 72

In the _________ bias, a decision maker is influenced by the manner in which a problem or question is stated.

A) Confirmation
B) Availability
C) Representativeness
D) Overconfidence
E) Framing

Question 73

A decision environment in which there is one right answer, but many unknowns obscure cause-and-effect relationships, is categorized as:

A) Dynamic/chaotic
B) Complex
C) Complicated
D) Simple
E) Programmed

Question 74

Oliver was known for his innovative promotional ideas. His boss loved listening to his presentations and trusted his ideas. Though Oliver's ideas started to get monotonous after a while, his boss took only his ideas and did not accept ideas from others. Which of the following was Oliver's boss using?

A) Creativity
B) Inclusion heuristic
C) Fundamental attribution error
D) Anchoring
E) Availability heuristic

Question 75

The forms of intuition are:

A) Tacit and explicit
B) Formal and informal
C) Rational and nonrational
D) Holistic hunches and automated experiences
E) Directive and analytical

Question 76

Marketing firms strive to ensure that people are aware of their products because people assume that if they have heard about certain products, the products will work well. Which of the following biases are the marketing firms trying to take advantage of?

A) Creativity
B) Availability
C) Fundamental attribution error
D) Representativeness
E) Inclusion

Question 77

In a complicated decision environment, a manager should use the _______ method of decision making.

A) Heuristic
B) Rational
C) Satisficing
D) Nonrational
E) Intuition

Question 78

A manager of an advertising firm appointed two employees to strike an advertising deal with one of their big clients. They were chosen as they had made a similar agreement previously with another client. Which of the following biases was the manager engaging in?

A) Representativeness
B) Anchoring
C) Framing bias
D) Fundamental attribution error
E) Self-serving bias

Question 79

Mark was looking to buy an used car. His friends had suggested that he check the mileage on the car and the safety record of the model and year of a car before buying it. He was thus focusing extensively on the odometer reading and the model of the year of the car to evaluate the value of the car, instead of inspecting the engine or the transmission of the vehicle. This implies that Mark was engaging himself in the _________ bias.

A) Representativeness
B) Anchoring
C) Availability
D) Fundamental attribution
E) Self-serving

Question 80

In the _________ bias, a decision maker tends to base decisions on information that is readily available in memory.

A) Confirmation
B) Availability
C) Representativeness
D) Overconfidence
E) Framing