Deck 12: Decision Making and Organizational Learning

Question 1

The incrementalist model implies that managers can foresee the future.

Answer 1

False

Question 2

Exploration is a type of learning where organizational members search for new kinds or forms of organizational activities.

Answer 2

True

Question 3

The unstructured model of decision making recognizes that decision making occurs in a series of small steps that add up to a major decision over time.

Answer 3

True

Question 4

A programmed decision is one in which some sort of technology is used to develop alternatives.

Question 5

Bill Gates used a garbage can approach in determining how to compete with Netscape's browser.

Question 6

The rational model assumes that decision-makers have bounded rationality.

Question 7

The highest quality decisions emerge when managers use the rational model.

Question 8

Toyota is considered a learning organization because it is constantly learning from its mistakes and taking steps to make its products better.

Question 9

A personalization approach to knowledge management is most suited to an organic organization.

Question 10

Bounded rationality means that rational decisions tend to be made based upon the human mind being bound by constraints.

Question 11

The garbage-can model argues that organizations make decisions from the solution side as opposed to the problem side.

Question 12

Organizational learning is the process that enables an organization to adapt to its environment.

Question 13

The main conceptual difference between the rational model and the Carnegie model is that the rational model does not consider the effects of satisficing, bounded rationality, or coalitions.

Question 14

Inert cultures are generally make cautious and conservative decisions.

Question 15

A codification approach to knowledge management is most suited to a mechanistic organization.

Question 16

Exploitation is a type of learning where organizational members learn ways of refining and improving existing organizational activities.

Question 17

The incrementalist model concentrates on how to improve nonprogrammed decision making.

Question 18

Most organizations today only have the capacity to make programmed decisions.

Question 19

A manager looking up a standard operating procedure or a rule in order to make a decision is using a nonprogrammed approach to decision making.

Question 20

Creating an organizational strategy would be considered a nonprogrammed decision.

Question 21

A collateral organizational structure works best if the team members do not realized they are being shadowed.

Question 22

The type of top-management team that has a wheel configuration increased organizational learning.

Question 23

Adaptive cultures are generally make cautious and conservative decisions.

Question 24

The rational model ignores all except ________.

A) certainty
B) uncertainty
C) ambiguity
D) chaos

Question 25

The "illusion of control" is a bias that makes managers overestimate the extent to which they can control a situation.

Question 26

"Groupthink" occurs when organizational team members are performing at their peak state and are able to solve organizational problems.

Question 27

A customer wants to return a shirt that is too small to a national retail store. The retail manager will most likely make a:

A) nonprogrammed decision by following the company's refund policy.
B) programmed decision by using judgment to decide whether or not to give a refund.
C) nonprogrammed decision by using judgment to decide whether or not to give a refund.
D) programmed decision by following the company's refund policy.

Question 28

A customer of a custom furniture maker orders a large entertainment. After installation, the customer is not pleased because the color is slightly different than he was agreed to. The furniture maker will most likely make a:

A) nonprogrammed decision by following the companies refund policy.
B) programmed decision by using judgment to decide how to solve the problem.
C) nonprogrammed decision by using judgment to decide how to solve the problem.
D) programmed decision by following the company's refund policy.

Question 29

Which of the following models of decision making is used the least?

A) Carnegie model
B) Unstructured model
C) Garbage can model
D) Rational model

Question 30

Organizational learning is higher in organizations that have an adaptive culture, versus an inert culture.

Question 31

Managers sometimes make good decisions by chance.

Question 32

A "devils advocate" is considered to be harmful to the organizational culture because they are constantly taking opposite positions.

Question 33

A mechanistic structure is likely to promote exploitative learning.

Question 34

Senge contends that individual learning is more important than group learning.

Question 35

A diverse top-management team facilitates organizational learning.

Question 36

Exploitative learning involves looking for new kinds of organizational activities.

Question 37

The "frequency" bias is about managers who assume that because they see an event occur many times, that it must be occurring throughout the organization.

Question 38

The rational model of decision making assumes all of the following except:

A) managers can access all the information they need.
B) managers operate in an uncertain environment.
C) managers agree about what an organization's most important goals are.
D) managers have the ability to evaluate all alternatives and select the best one.

Question 39

When managers lose control of a situation, they often centralize authority in the mistaken belief that this will give them greater control.

Question 40

"Ego-defensiveness" is a bias that leads managers to interpret events in such a way that their actions appear in the most favorable light.

Question 41

Which of the following is an example of explorative learning?

A) A steel mill refines its production processes
B) A supplier implements a TQM program
C) A computer company uses the Garbage can model for making decisions
D) A shoe manufacturer implements a network organization

Question 42

An "organized anarchy" is a characteristic of which of the following models of decision making?

A) Unstructured
B) Carnegie
C) Garbage can
D) Incrementalist

Question 43

The Carnegie model recognizes that much of decision making is/does not:

A) rely on past experience.
B) subjective.
C) based on all alternatives.
D) rely on intuition.

Question 44

The Carnegie model of decision making assumes all of the following except:

A) the organization is an organized anarchy.
B) decision making is costly.
C) managers satisfice.
D) decisions are made by negotiations among coalitions.

Question 45

Bill Gates used which type of decision-making technique in order to decide how to compete with Netscape?

A) Garbage can
B) Rational
C) Carnegie
D) Bounded rational

Question 46

Which of the following models of decision making is the most unrealistic?

A) Unstructured model
B) Rational model
C) Garbage can model
D) Carnegie model

Question 47

The incrementalist model is most appropriate for which of the following organizations?

A) A biotechnology company that operates in a dynamic environment
B) A dominant manufacturer of diapers for babies that operates in a stable environment
C) A pharmaceutical company that is complex because it has many groups of stakeholders
D) A computer company that operates in a very competitive environment

Question 48

In the ________ model, managers select actions slightly different from past actions.

A) incrementalist
B) Garbage can
C) rational
D) Carnegie

Question 49

The garbage can model proposes all of the following except:

A) an organization should focus on improving programmable decisions.
B) chance and timing are important factors in decision making.
C) different coalitions support different alternatives.
D) decision making can begin with a solution as well as with a problem.

Question 50

Which of the following are the two types of organizational learning according to March?

A) Exploitative and radical
B) Explorative and structured
C) Incremental and radical
D) Explorative and exploitative

Question 51

Which of the following is not one of the levels of organizational learning?

A) Individual
B) Organizational
C) Intra-individual
D) Interorganizational

Question 52

Improving an existing TQM program is an example of ________ learning.

A) explorative
B) exploitative
C) radical
D) structured

Question 53

Which of the following is an assumption of the Carnegie model of decision making?

A) Managers have all the information necessary to make decisions.
B) Managers select a limited range of alternatives.
C) Managers agree about what an organization's most important goals are.
D) Managers make changes that are only slightly different from existing procedures.

Question 54

Organizational learning needs to be encouraged at what four levels?

A) Group, division, organization, and interorganization
B) Individual, group, organization, and interorganization
C) Individual, group, division, and organization
D) Individual, division, organization, and interorganization

Question 55

The incrementalist model of decision making:

A) assumes that managers can predict trends.
B) involves selecting the most optimal alternative.
C) tries to improve programmed decision making.
D) stresses the impact of chance and timing on decision making.

Question 56

When GE was deciding whether to make or buy washing machines, which of the following models of decision making did it use?

A) Rational
B) Carnegie
C) Incrementalist
D) Unstructured

Question 57

Which of the following is not considered in the Carnegie model?

A) The effects of bounded rationality
B) The effects of coalitions
C) The effects of satisficing
D) The effects of cognitive biases

Question 58

The unstructured model of decision making is characterized by all of the following except

A) decision makers rethink their alternatives when they encounter obstacles.
B) it concentrates on programmed decisions.
C) it is appropriate when uncertainty is high.
D) it recognizes three stages of decision making: identification, development, and selection.

Question 59

Satisficing occurs when decision makers:

A) select the first alternative that comes along.
B) select a good alternative instead of continuing to search for the optimal choice.
C) begin with a solution instead of a problem.
D) select a few alternatives that differ only slightly from the status quo.

Question 60

In the Organizational Insight in your text, Bill Gates used the Garbage Can model of decision making when examining which decision?

A) How to combat the antitrust legislation
B) How to develop a system to compete with Apple computer
C) How to compete with Netscape
D) How to redesign Windows to compete better with Oracle

Question 61

Culture and structure are tools used for the purpose of promoting organizational learning. These tools are used at which of the following levels?

A) Organization and interorganization
B) Individual, group, organization, and interorganization
C) Division and organization
D) Individual, group, division, and organization

Question 62

Senge recommends using examples of mental models at the ________ level of organizational learning.

A) organization
B) group
C) individual
D) division

Question 63

Senge encourages workers to develop a sense of personal mastery by:

A) repeating a single task.
B) Develop and use mental models.
C) using procedures and rules.
D) referring decisions to supervisors.

Question 64

Developing a learning organization includes all except:

A) feeling attached to a job.
B) developing a taste for risk-taking.
C) developing a commitment to work.
D) making programmed decisions.

Question 65

The system of interrelated beliefs, preferences, expectations, and values is ________ structure.

A) affective
B) cognitive
C) personal
D) behavioral

Question 66

Systems thinking:

A) suggests that companies substitute information systems for the hierarchy to transmit information.
B) focuses on using AIT to facilitate learning among network members.
C) states that structure, culture, and strategy must match to foster organizational learning.
D) states that each level of learning affects other levels.

Question 67

In developing a knowledge management system, managers want to provide managers with a step by step procedure on how to solve problems. They want to do this because most of their problems are recurring events, and standard procedures work well. They are using a:

A) systems thinking approach.
B) learning organization approach to management.
C) codification system of knowledge management.
D) personalization system of knowledge management.

Question 68

Which of the following would Peter Senge consider to be the most important level of organizational learning?

A) Organizational
B) Individual
C) Group or Team
D) Inter-organizational

Question 69

In developing a knowledge management system, managers want to provide managers more with information on "who to go to" to solve a specific problem rather than describing the steps to solve a problem. They want to do this because most of their problems are too complex to rely on standard procedures. They are using a:

A) systems thinking approach.
B) learning organization approach to management.
C) personalization system of knowledge management.
D) codification system of knowledge management.

Question 70

Paul manages the Buick division at GM, and Joan oversees the Pontiac division at GM. Paul views the environment as hostile and uncertain. Joan views the environment as stable and sees many opportunities. What is likely the cause of this difference in perspective?

A) Differences in organizational capabilities
B) Differences in intellectual capabilities
C) Differences in cognitive structures
D) Differences in organizational learning

Question 71

Cultures that are cautious and conservative and avoid risks are ________.

A) dominant
B) inert
C) adaptive
D) strong

Question 72

Which of the following is not a cognitive bias?

A) Frequency
B) Illusion of control
C) Resonance
D) Projection

Question 73

If an organization wants to foster exploitative learning, it should implement a(n) ________. structure.

A) organic
B) product team
C) mechanistic
D) network organization

Question 74

After World War II, Sears thought consumers would spend, whereas Montgomery Ward thought consumers would save. This is an example of:

A) the influence of affective behavior.
B) the effect of historical forces.
C) the influence of cognitive structure.
D) the influence of group decision making.

Question 75

Which type of interdependence promotes group level learning?

A) Sequential
B) Reciprocal
C) Complex mental models
D) Pooled

Question 76

According to Kotter and Heshett, organizational learning is higher in ________ cultures.

A) inert
B) adaptive
C) innovative
D) conservative

Question 77

Team learning is more important than individual learning because:

A) most important decisions are made in groups.
B) groups are less effective.
C) top management makes strategic decisions.
D) only minor decisions are made in groups.

Question 78

Nystrom and Starbuck suggest that all of the following impede new learning except ________.

A) nonprogrammed decisions
B) past learning
C) "weathering the storm strategies"
D) cognitive structures

Question 79

Culture is important to organizational learning because it emphasizes ________.

A) empowerment
B) centralized decision making
C) vertical integration
D) building shared vision

Question 80

A(n) ________ structure promotes explorative learning.

A) mechanistic
B) product team
C) network organization
D) organic