Deck 11: Decision Making and Creativity

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Bounded rationality means solving problems by producing the best possible solution based on a set of highly desirable conditions.

Question 5

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

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 6

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

Question 7

Creativity involves a convergence between tacit and explicit knowledge.

Question 8

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

Question 9

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

Question 10

The rational model of decision making explains how managers should make decisions.It assumes that managers are completely objective and possess all information for their decisions.In this model,decisions thus demonstrate excellent logic and promote the organization's best interests.

Question 11

Intuitive processes are influenced by both expertise and feelings.

Question 12

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

Question 13

Multitaskers end up switching tasks hundreds of times a day.This makes them ______ in their work environment.

A) more efficient
B) more intelligent
C) good problem solvers
D) less efficient
E) more responsible

Question 14

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 15

You are taking an OB course that meets Mondays and Wednesdays,and your professor gives unannounced quizzes each week.It's the Sunday before a class,and you are deciding whether to study for a potential quiz or watch football.Two of your classmates have decided to watch the game rather than study because they don't think there will be a quiz the next day.The next morning you walk into class and the professor says,"Take out a sheet of paper for the quiz." You turn to your friends and say,"I knew we were going to have a quiz; why did I listen to you? This reflects the anchoring bias.

Question 16

Nicole is a manager at a fast food restaurant.She is under a lot of pressure from headquarters to increase her monthly profits.Nicole isn't sure what the solution is for her financial dilemma.She decides to use the rational decision-making model to determine the best path for a solution.The problem has already been defined by headquarters.Now Nicole has to

A) generate alternative solutions.
B) evaluate the alternative solutions.
C) identify additional opportunities.
D) implement a solution.
E) evaluate the solution.

Question 17

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

Question 18

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

Question 19

The _______ model of decision making assumes that managers are completely objective and possess all information for their decisions.In this model,decisions demonstrate excellent logic.

A) intuition
B) satisficing
C) holistic
D) evidence-based
E) rational

Question 20

Jess has completed her two-year medical assistant program.She really wants to be a nurse,but needs to start working as soon as possible in order to pay her bills and loans.Unbeknownst to her,one of her professors has put her name in for an award program at the local nursing college.She is notified that she is a finalist for the award-full paid tuition and a living stipend.This _______ can enable her to exceed her goals.

A) problem
B) opportunity
C) propportunity
D) holistic hunch
E) alternative

Question 21

__________ 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 22

Despite the information available,Becky consistently uses her cell phone to text when driving down the highway.This is an example of ______ decision making.

A) rational
B) nonrational
C) optimizing
D) normative
E) alternative

Question 23

An example of the ________ heuristic occurs when you see news reports about people losing their jobs,and then start believing that you are in danger of being laid off.You start lying awake in bed each night worrying that you are about to be fired.

A) availability
B) hindsight
C) representativeness
D) anchoring
E) framing

Question 24

At Peter James Consulting,managers are in the process of submitting their budget cuts for the next fiscal year.In evaluating alternatives,managers should consider all of the following except

A) Will these cuts impact the quality of our service?
B) What is the budget impact of these changes?
C) Are these the right choices to make for our company?
D) Is this the choice that I, personally, would like to make?
E) Is this the best use of our resources company-wide?

Question 25

One of the benefits of using intuition to make decisions is that it can

A) be useful when you have unlimited resources.
B) help managers who are bounded.
C) speed up the decision-making process.
D) help managers understand all of the highly desirable conditions.
E) slow down the decision-making process so you don't make a mistake.

Question 26

________ is solving problems by producing the best possible solution.

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

Question 27

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 28

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

A) heuristic
B) rational
C) satisficing
D) nonrational
E) intuition

Question 29

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 30

_________ bias is especially evident in entrepreneurs who are deciding to start and sustain new ventures.

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

Question 31

Ryan is looking to buy a used car.He seems to be most concerned with the color and style of the car,and uses those criteria as a basis for evaluating the value of the car,rather than considering how well the engine or the transmission is maintained.This is an example of

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

Question 32

Madetra makes low-priced leather handbags and wallets.They keep their costs down,but have to cut some corners.Now,their rate of return is 25 percent.Madetra considers this a(n)________ or "good enough" solution.

A) satisficing
B) optimizing
C) minimizing
D) intuitive
E) rationalizing

Question 33

______ is the idea that decision makers are restricted by constraints when making decisions.

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

Question 34

Roger runs a small nonprofit group.He wants to buy a copier,because he knows it will be cheaper than going to the copy store.One of the other employees remarks that they should make do with an inexpensive copier from Walmart or Staples,but Roger wants one that will copy legal documents and collate reports.Roger may be impacted by _______ bias.

A) framing
B) hindsight
C) anchoring
D) availability
E) confirmation

Question 35

Rachel bought a table at a thrift store for 0.She had a feeling it might be valuable.When cleaned up and assessed,the table turned out to be an antique from the 1700s,worth $3,250.What was Rachel using to make her decision?

A) satisficing
B) rationalization
C) intuition
D) explicit knowledge
E) evidence-based decision making

Question 36

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 37

Teresa has a problem.She is working on three projects and the deadline for Project C was moved up.This particular client,Client C,is fairly easy-going and never puts any pressure on her unless it's absolutely necessary.Teresa decides to talk to Client A who always wants the project results a few days before the actual deadline.There might be some flexibility with that timeline. Teresa is using _______ in order to make this decision.

A) her expertise
B) a managerial style
C) rational processes
D) informal guidelines
E) optimizing abilties

Question 38

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 39

Leon Law Offices only hires graduates from Ivy League schools because clients have been impressed by those credentials in the past.This is an example of ________ ,and in this case,the "school attended" criterion is being used to facilitate complex information processing associated with employment interviews.

A) confirmation
B) availability
C) representativeness
D) overconfidence
E) framing

Question 40

We all use shortcuts or ________ when making decisions.

A) bounded rationality
B) holistic hunches
C) rational thought
D) personal biases
E) judgmental heuristics

Question 41

Individuals who are conceptual in decision-making style

A) risk being autocratic and focusing on the short term.
B) sometimes overanalyze situations.
C) rely on intuition and discussions with others to acquire information.
D) adopt a short-term perspective.
E) have a tendency to avoid conflict.

Question 42

A person with a low tolerance for ambiguity who is oriented toward people and social concerns when making a decision portrays which style?

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

Question 43

Josephine is about to graduate from college and is excited about joining her two roommates to start a small coffee shop near campus.She has never started a business before,but she is sure that her business degree has taught her everything she needs to know.The three of them have enough money for their initial costs and figure that they can cover their expenses with the cash flow from the business.Which heuristic is probably involved?

A) representativeness
B) anchoring
C) availability
D) fundamental attribution error
E) overconfidence

Question 44

Marvin is a medical technician who administers stress tests.He has a low tolerance for ambiguity and is oriented toward task and technical concerns when making decisions.The ________ style is well suited for this position.

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

Question 45

Individuals who are directive in decision-making style

A) risk being autocratic and focusing on the short term.
B) sometimes overanalyze situations.
C) rely on intuition and discussions with others to acquire information.
D) are good at finding creative solutions to problems.
E) have a tendency to avoid conflict.

Question 46

Lily graduates from high school and is ready to go to college.However,she also loves sports.She wants to join a basketball academy and become a professional basketball player.Lily finds her uncertainty about her future very stressful and is psychologically uncomfortable about it.This implies that Lily has a(n)

A) low tolerance for ambiguity.
B) conceptual decision-making style.
C) low need for structure.
D) analytical style of decision making.
E) high social concern.

Question 47

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 48

Yuri is very task-focused at work and does not pay much attention to people issues.Tina is just the opposite.These are examples of ________,the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions

A) extraversion
B) value orientation
C) locus of control
D) individualism
E) tolerance for ambiguity

Question 49

A decision maker is influenced by the manner in which a problem or question is stated.This represents the _______ bias.

A) confirmation
B) availability
C) representativeness
D) overconfidence
E) framing

Question 50

Dr.Barbara Sonders determines financial trends in European markets.She analyzes worldwide financial and economic trends to determine the best course of action for European economies.Her decisions are based on complicated and sometimes ambiguous information,and she has to carefully considers all sides of the issue. What type of decision-making style does Dr.Sonders possess?

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

Question 51

Mark is looking to buy his first home.His friends suggest that he check the style of the house and the number of rooms.He is,therefore,focusing extensively on the look of the house to evaluate its value,rather than its condition or location.This implies that Mark was engaging himself in the _________ bias.

A) representativeness
B) anchoring
C) availability
D) fundamental attribution
E) self-serving

Question 52

When Jamie comes to work in the morning,the first thing he does is head to the employee lounge where he grabs a cup of coffee and talks to coworkers for several minutes.This implies that he probably has a

A) low tolerance for ambiguity.
B) high tolerance for ambiguity.
C) task orientation.
D) low need for structure.
E) social orientation.

Question 53

Carla tends to take long-term view and rely on discussions with others to acquire information.She has a high tolerance for ambiguity and is oriented toward people and social concerns when making decisions.Which decision-making style does Carla possess?

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

Question 54

Jolene is a mathematics major.She has a high tolerance for ambiguity and tends to overanalyze many situations.What style does Jolene represent?

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

Question 55

The senior managers of Optimum Inc.,a multinational information technology firm,were concerned that people were not buying their computers.They were shocked to hear of a salesperson recommending to customers to buy something other than an Optimum PC because they were of poor value.This small incident motivated the organization to conduct an extensive survey to understand real customer experience in order improve their products accordingly.This was an example of

A) a normative process.
B) evidence-based decision making.
C) satisficing.
D) a nonrational process.
E) escalation of commitment.

Question 56

Evidence collected after the fact can be used to convince an external audience that the organization is following a sound course of action in a complex and ambiguous decision context.On the positive side,this can lead to

A) shareholders questioning management.
B) confidence and goodwill about the company.
C) less input from employees.
D) insecurity about management decision making.
E) supplying only the most pertinent information.

Question 57

Which of the following statements is ?

A) Evidence-based decision making should never be used in making decisions.
B) Evidence-based decision making should never be used in informing decisions.
C) Evidence-based decision making should never be used in supporting decisions.
D) Evidence-based decision making should always be used in supporting decisions.
E) Evidence-based decision making should sometimes be used in supporting decisions.

Question 58

Three years ago,the City of Recker committed to build a park and music venue by the river.It was expected to cost $2.5 million and be paid for from an additional meals tax in the community.The residents pushed back.Local restaurants suffered as people ate out less or patronized restaurants in neighboring communities.The project has stalled,but the town council kept pushing it on.This spring,a flood devastated the venue. The town council appears to have suffered from _______ bias.

A) confirmation
B) availability
C) escalation of commitment
D) overconfidence
E) framing

Question 59

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 60

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 61

Selecting the most creative and promising idea from among multiple options relies on analytical and mainly conscious thinking.This is _______,the final stage opf the creative performance process.

A) problem formulation
B) problem definition
C) preparation/information gathering
D) idea generation
E) idea evaluation/validation

Question 62

_______ is a mode of thinking that people engage in when they are deeply involved in a cohesive in-group,when members' strivings for unanimity override their motivation to realistically appraise alternative courses of action.

A) Brainstorming
B) Brainwriting
C) Brainwashing
D) Groupthink
E) Goal displacement

Question 63

In groupthink,the "inherent morality" symptom is likely to

A) breed excessive optimism.
B) cause groups to underestimate opponents.
C) cause groups to interpret silence as assent.
D) question loyalty of dissenters.
E) cause the group to ignore ethical considerations.

Question 64

The primary intent of Bagley's decision tree model is to

A) improve rationality in decision making.
B) assist in conducting evidence-based decision making.
C) help in making more ethical decisions.
D) reduce bias in decision making.
E) increase creativity in decision making.

Question 65

Which of the following is not a symptom of groupthink?

A) mindguards
B) illusion of unanimity
C) self-censorship
D) illusion of invulnerability
E) minority dissent

Question 66

Which of the following is not an advantage of group decision making?

A) greater commitment to a decision
B) less time spent making a decision
C) better understanding of the decision rationale
D) greater pool of knowledge
E) more visible role modeling

Question 67

Max needs to create a plan for his final art project.Inez,also in the class,passes by and sees Max sitting at an outdoor café,having coffee.He seems really relaxed.Inez asks him how come he isn't stressed thinking about the final project.What does this scenario indicate?

A) Coffee can help stimulate creative ideas.
B) Doing "nothing" may be one of the most important creative things we can do.
C) Max has a good relationship with his art instructor so he's not worried.
D) Max does his best creative work right before the due date, so he's not in any rush.
E) It's easy to ask for an extension for the project.

Question 68

The idea that creativity starts from a base of knowledge is represented in the _______ stage of the creative performance process.

A) problem formulation/definition
B) preparation/information gathering
C) idea generation
D) idea evaluation
E) idea validation

Question 69

The first question asked in Bagley's decision tree is:

A) Is the proposed action legal?
B) Is the proposed action ethical?
C) Does the proposed action maximize shareholder value?
D) Does the proposed action affect any stakeholders?
E) Would it be ethical not to take the proposed action?

Question 70

_______ is the sense of "we-ness" that overrides individual differences and motives.

A) Group coherence
B) Group cohesiveness
C) Groupthink
D) Peer pressure
E) Stereotyping

Question 71

Many organizations,such as Google,Zappos,Salesforce.com,and Yahoo!,are designing the work environment to encourage casual conversations among employees who don't generally work together.They also are "installing playful prompts,like trivia games,to get workers talking in traditional conversational dead zones,such as elevators." It is thought that __________ demonstrate a form of social support for employees,leading them to put more effort into creative behaviors.

A) low-performance work systems
B) high stress work environments
C) high-performance work systems
D) independent
E) low stress work environments

Question 72

Describe the stages in the rational model of decision making.What is good and bad about this model?

Question 73

The first stage of the creative performance behavior process is

A) problem formulation/definition.
B) preparation/information gathering.
C) idea generation.
D) idea evaluation.
E) idea validation.

Question 74

Norm and his creative team need to present an idea for marketing a new detergent to the head of their advertising agency.Diane,a member of the team,always resented Norm's promotion to team leader.She objects to every idea Norm suggests and spends the entire meeting selling her approach.Diane hopes that this will be a chance to show her skills to the head of the agency.This is known as

A) goal displacement.
B) social pressure.
C) groupthink.
D) role modeling.
E) decision rationale.

Question 75

Which of the following is not a question in Bagley's decision tree?

A) Is the proposed action legal?
B) Is the proposed action ethical?
C) Does the proposed action maximize shareholder value?
D) Does the proposed action affect any stakeholders?
E) Would it be ethical not to take the proposed action?

Question 76

Wanston operates factories in Southeast Asia.After a fire burned down one of the factories,Wanston needs to decide whether to continue operating in a damaged building or to wait until the damage has been repaired and chance losing orders.What might the ethical decision be?

A) The ethical decision might be to close the plant because safety rules are so lax.
B) The ethical decision might be to move al employees to the United States and grant them citizenship.
C) The ethical decision might be to keep your customers happy, no matter what the cost.
D) The ethical decision might have been to keep employees working through the repair cycle so they can get a paycheck.
E) The ethical decision might be to ask employees to enter the building only after the structural problems had been fixed, and to ask customers for some leeway in filling orders.

Question 77

_________ is a group process that anonymously generates ideas or judgments from physically dispersed experts.

A) The Delphi technique
B) Brainstorming
C) Groupthink
D) Goal displacement
E) Decision support systems

Question 78

__________ and ________ drive creative performance behaviors.

A) Task; person focus
B) Tolerance for ambiguity; locus of control
C) Heuristics; biases
D) Alternatives; solutions
E) Person factors; environmental characteristics

Question 79

A(n)________ is a graphical representation of the process underlying decisions.

A) PERT chart
B) GANNT chart
C) decision tree
D) flowchart
E) organizational chart

Question 80

Kathryn is looking for ideas on how best to grow her small business.She and her three partners sit down to brainstorm suggestions.Which of the following rules will help ensure a positive brainstorming session?

A) Offer criticisms of ideas right away so you don't waste time.
B) Don't be too focused....let your mind wander.
C) Encourage wild ideas.
D) Let everyone jump in to the conversation.
E) Focus on the quality of the ideas.....not the quantity.