Deck 11: Making Decisions

Question 1

While setting high idea quotas appears to logically maximize the effectiveness of brainstorming,in reality it has just the opposite effect.

Answer 1

False

Question 2

An example of a nonprogrammed decision is deciding whether to merge with another firm.

Answer 2

True

Question 3

Tactical decisions are those concerned with how things get done.

Answer 3

True

Question 4

The three factors that evaluate the level of creativity in the decision-making process are fluency,flexibility,and originality.

Question 5

Wildstorming is a process where the group focuses on ideas that are impossible and then tries to imagine what would need to happen to make them possible.

Question 6

Strategic decisions are usually made by middle level managers.

Question 7

Innovation and creativity are the same thing.

Question 8

Analysis paralysis is when more and more time is spent on gathering information and thinking about it,but no decisions are made.

Question 9

In the intuitive decision-making process,only one choice is considered at a time.

Question 10

A decision rule is an automated response to a problem or issue that occurs frequently.

Question 11

The most difficult step of the rational decision-making process is to establish the decision criteria.

Question 12

Programmed decisions are unique,creative decisions.

Question 13

The rational decision-making model limits the number of alternatives considered.

Question 14

Creativity is the interaction between personality traits,attributes,and serendipity.

Question 15

Immersion is to conscious thought as incubation is to unconscious thought.

Question 16

All decisions have major consequences and require much thought.

Question 17

People are always interested in making an optimal decision.

Question 18

The first step of both the rational decision-making model and the creative decision-making process is to identify the problem.

Question 19

To satisfice is to accept the first alternative that meets minimum criteria.

Question 20

Decision making requires action as a solution.

Question 21

Unethical decisions in bank lending is likely one of the causes of the current economic crisis in the United States.

Question 22

One basic question to ask to ascertain the ethics of a decision is: "How would I feel if this decision was broadcast on the news?"

Question 23

Groupthink is characterized by symptoms like questioning the morality of the group.

Question 24

One way to avoid escalation of commitment is to have identifiable turning back points.

Question 25

Group decisions regularly outperform the decision of the group's best member.

Question 26

Group decision support systems could make employees more reluctant to share information due to lack of control.

Question 27

Groupthink is one of the reasons cited for the tragedy of the Challenger space shuttle.

Question 28

Hindsight bias is the opposite of framing bias.

Question 29

Given research on anchoring bias,individuals are more likely to focus on "60% of all people taking the test pass",rather than "40% of all people taking the test fail."

Question 30

The rational decision-making process is best used when the decision is important and you are trying to maximize outcomes.

Question 31

The nominal group technique involves using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

Question 32

Individual decision making produces a greater commitment to the ultimate decision than does group decision making.

Question 33

Escalation of commitment is also known as "sunken cost fallacy."

Question 34

Having a devil's advocate in meetings is a technique that can help avoid groupthink.

Question 35

Decision trees are helpful in avoiding errors such as overconfidence bias.

Question 36

Research shows that consensus decision making is less accurate and can even make group members feel less satisfied with a decision.

Question 37

Ingar Skaug,CEO of Wilhelmsen Lines,empowered his employees to make their own decisions when he assumed his position at the global maritime company.

Question 38

The intuitive decision-making model is best used when the decision maker has experience with the problem and there is time pressure.

Question 39

Group decisions tend to be more creative than individual ones,but they are often not more effective than those made by individuals.

Question 40

American managers tend to value quick decision making while Chinese managers favor more reflective decision making.

Question 41

Tactical decisions are generally made by

A)CEOs.
B)engineers.
C)managers.
D)Boards of Directors.

Question 42

Programmed decisions are

A)unique,nonroutine,and important,requiring conscious thinking,information gathering and careful consideration of alternatives.
B)decisions that are made to set the course of an organization.
C)a set of parameters against which all of the potential options in decision making will be evaluated.
D)ones which occur frequently enough that an automated response is developed for them.

Question 43

Strategic decisions

A)refer to those that make the organization run on a daily basis.
B)refer to how things get done.
C)refer to those setting the course of the organization.
D)refer to those that occur frequently enough to have an automated response to them.

Question 44

A unique,nonroutine,important decision requiring conscious thinking,information gathering,and careful consideration of alternatives is a(n)

A)programmed decision.
B)operational decision.
C)nonprogrammed decision.
D)decision rule.

Question 45

Making choices among alternative courses of action,including inaction,is

A)decision making.
B)programmed decisions.
C)satisficing.
D)consensus

Question 46

A decision which centers on how things get done is a(n)

A)tactical decision.
B)strategic decision.
C)operational decision.
D)programmed decision.

Question 47

Which of the following questions is an example of a tactical decision?

A)Should we takeover our competitor?
B)How should we market the new product line?
C)What should I say to the customers about our return policy?
D)How will I balance my master's degree workload with my work assignments?

Question 48

Operational decisions are made by

A)managers.
B)top management teams.
C)employees throughout the organization.
D)CEOs.

Question 49

Who is most responsible for making strategic decisions?

A)managers
B)engineers
C)low-level employees
D)CEOs.

Question 50

Google is known for having _________.

A)conformity.
B)encourages risk taking and innovation.
C)emotional decision making.
D)making decisions by consensus.

Question 51

In 2003,six people died from Hepatitis A and 660 were sickened after eating at Chi Chi's,a popular Mexican restaurant in suburban Pittsburgh,Pennsylvania.In the days following the first death,the CEO of the Chi Chi's chain made a decision to have all restaurant workers and the restaurant itself tested to determine what established the dangerous conditions.(Eventually the hepatitis outbreak was traced to the green onions in the firm's salsa.)The decision to order such testing in the crisis situation is an example of

A)a programmed decision.
B)a nonprogrammed decision.
C)a decision rule.
D)a tactical decision.

Question 52

Mark works as the frozen food manager in a major grocery store chain.When his stock of two-pound bags of frozen shrimp gets down to two cases,he e-mails his warehouse to send ten cases to restock. The type of decision Mark is making about restocking shrimp is a

A)strategic decision.
B)nonprogrammed decision.
C)programmed decision.
D)tactical decision.

Question 53

An example of an operational decision is

A)Should we consider a merger with our biggest competitor?
B)How often do I go back to the stockroom to get additional products for display?
C)Should we develop a new corporate structure?
D)Which advertising firm should we choose for our fall advertising campaign?

Question 54

The "automated" ordering of ten cases when supply gets to two cases in the store is called a(n)

A)consensus decision.
B)decision rule.
C)alternative.
D)anchor.

Question 55

A series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice describes

A)the bounded rationality model.
B)the rational decision-making model.
C)the intuitive decision-making model.
D)the creative decision-making model.

Question 56

Doris and Lydia are members of the Board of Directors at Beta Corporation.They are giving very serious consideration to voting to merge their company with Zeta Company for enhanced efficiency,effectiveness and competitive advantage.Doris and Lydia are making a(n)

A)strategic decision.
B)tactical decision.
C)operational decision.
D)programmed decision.

Question 57

Claudia is a salesperson with a major department store chain that is currently running a "secret coupon sale." The program allows the salesperson to randomly award a savings coupon to any shopper of the salesperson's choice.Who the salesperson chooses to award the coupon to is a(n)

A)strategic decision.
B)tactical decision.
C)operational decision.
D)programmed decision.

Question 58

Antonio,Alpha Company's marketing manager,will be listening to the advertising pitches from the final four firms today as he chooses the television ad campaign for his product for the fall season.Antonio is making a(n)

A)programmed decision.
B)strategic decision.
C)tactical decision.
D)operational decision.

Question 59

Operational decisions

A)refer to those things that employees do each day to make the organization run.
B)refer to things that might happen in the future.
C)refer to those that set the course of the organization.
D)refer to those that occur frequently enough to develop an automated response to them.

Question 60

An example of a strategic decision is

A)How often should I communicate with my new coworkers?
B)How should we market the new product line?
C)Should we downsize our organization?
D)What should I say to customers about our new product?

Question 61

Which of the following is NOT an unrealistic assumption made in the rational decision making model?

A)People completely understand the decision to be made.
B)People know all their available choices.
C)People want to make optimal decisions.
D)People have perceptual biases.

Question 62

Which is the first step in the rational decision-making model?

A)Establish decision criteria.
B)Identify the problem.
C)Weigh decision criteria.
D)Generate alternatives.

Question 63

Jennifer has to decide which of two job offers she is going to choose.She begins her process by listing the key criteria she is looking for in a job including salary level,location,promotional opportunities,and so on.She then takes each job offer letter and carefully goes through each line assessing the offer in relationship to the criteria she has established.Jennifer is using which of decision-making model to choose her job?

A)the rational decision-making model
B)the creative decision-making model
C)the intuitive decision-making model
D)the programmed decision-making model

Question 64

The creative decision-making process

A)describes a series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice.
B)recognizes the limitations of decision making processes by having individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search of alternatives.
C)refers to arriving at decisions without conscious reasoning,arguing that experts make decisions by scanning the environment for cues to recognize patterns.
D)refers to arriving at decisions after first gathering information about the problem and then setting the problem consciously aside until an insightful solution to the problem arises.

Question 65

When the goal of the decision making exercise is to make a satisfactory decision because you are limited in some way such as time,you should utilize

A)the rational decision-making model.
B)the intuitive decision-making model.
C)the bounded rationality decision-making model.
D)the creative decision-making model.

Question 66

If the goal of your decision making is to make the optimum decision or make the best choice,you should utilize

A)the bounded rationality model of decision making.
B)the intuitive decision-making model.
C)the creative decision-making model.
D)the rational decision making model.

Question 67

Experts make decisions in the intuitive decision-making models based on all the following but

A)climate.
B)training.
C)experience.
D)knowledge.

Question 68

The incubation step in the creative decision-making process is

A)the step where the decision maker consciously thinks about the problem.
B)the step where the decision maker sets the problem aside and does not consciously think of it.
C)the step where the decision maker gains insight into the problem and has a "eureka" moment.
D)the step where the decision maker verifies the feasibility of the solution and implements the decision.

Question 69

The decision-making process where decisions are arrived at without conscious reasoning,arguing that experts make decisions by scanning the environment for cues to recognize patterns is

A)the creative decision-making model.
B)the bounded rationality model.
C)the intuitive decision-making model.
D)the rational decision-making model.

Question 70

The bounded rationality decision-making model

A)describes a series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice.
B)recognizes the limitations of decision making processes by having individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search of alternatives.
C)refers to arriving at decisions without conscious reasoning,arguing that experts make decisions by scanning the environment for cues to recognize patterns.
D)refers to arriving at decisions after first gathering information about the problem and then setting the problem consciously aside until an insightful solution to the problem arises.

Question 71

To satisfice is to

A)generate new ideas that are original,fluent and flexible.
B)set parameters against which all of the potential options can be evaluated.
C)accept the first alternative that meets your general criteria.
D)be influenced by the way in which problems are framed.

Question 72

Which of the following statements regarding the rational decision-making model is INCORRECT?

A)The decision maker should generate alternatives before establishing criteria.
B)The decision maker should make certain to clearly identify the problem before undertaking any other step.
C)Successful managers tend to be clear on what they want at the outset of the decision making process.
D)One research study indicated that no alternative generation occurred in 85% of the decisions examined.

Question 73

All of the following are factors that researchers focus on to evaluate the level of creativity in the decision making process EXCEPT

A)fluency.
B)flexibility.
C)rationality.
D)originality.

Question 74

The creativity level evaluation factor of fluency is

A)how different the ideas are from one another.
B)the number of ideas a person is able to generate.
C)how unique a person's ideas are.
D)the set number of ideas a group must reach.

Question 75

Susan is a paramedic for the county ambulance service.Yesterday there was a terrible accident on the interstate when a bus carrying senior citizens to an Atlantic City casino was struck by a small dump truck as the truck tried to change lanes.Fifteen of the bus riders were killed and 25 injured.As Susan arrived on the scene to perform triage on the accident victims,she quickly made decisions as to which victims needed immediate care and who could wait.Susan was using what decision-making model in making these stressful decisions?

A)bounded rationality model of decision making
B)creative decision-making model
C)intuitive decision-making model
D)rational decision-making model

Question 76

What is the most challenging or difficult step in the rational decision-making process?

A)Identify the problem.
B)Establish decision criteria.
C)Generate alternatives.
D)Evaluate alternatives.

Question 77

Which of the following statements about the creative decision-making model is INCORRECT?

A)Creativity is the generation of new,imaginative ideas.
B)The dynamic nature of today's organizations,including structural changes and cost cutting,have driven creativity in the business.
C)Problem identification is the first step in the creative decision making model.
D)Innovation and creativity are the same process.

Question 78

Anita finishes her college semester on April 15.She will be home from April 15 until May 20 when she is scheduled to have her wisdom teeth removed.She will be going on a family vacation during the third week in July and will be returning to school on August 10 for majorette camp.Anita is looking for a job for the summer.She figures she will take the first job that pays minimum wage and will allow her flexibility for her dental appointment and vacation.Anita is making a decision using the

A)rational decision-making model.
B)bounded rationality decision-making model.
C)intuitive decision-making model.
D)creative decision-making model.

Question 79

The availability of too much information leading to more and more time being spent on gathering information and thinking about it,resulting in no decisions being made is

A)satisficing.
B)analysis paralysis.
C)wildstorming.
D)anchoring.

Question 80

Which of the following is the correct order of the phases in the creative decision-making model?

A)Problem identification,incubation,immersion,illumination,verification and application.
B)Problem identification,immersion,incubation,illumination,verification and application.
C)Problem identification,illumination,immersion,incubation,verification and application.
D)Problem identification,illumination,incubation,immersion,verification and application.