Question 1

Which of the following decision-making models explains why and how managers can improve their programmed decision-making over time?

Accepted Answer

The incrementalist model suggests that managers can improve their decision-making over time through a gradual process of learning and adapting. This model recognizes that decisions are rarely made in a vacuum and that managers must be able to adjust their decision-making approach as they encounter new information or changing circumstances. By continually refining their decision-making process, managers can improve the quality of their decisions and achieve better outcomes over time.

Question 2

Which of the following are the two principal types of organizational learning strategies proposed by James March?

Accepted Answer

James March proposed exploration and exploitation as the two principal types of organizational learning strategies. Exploration involves seeking out new and different knowledge, while exploitation involves refining and improving upon existing knowledge.

Question 3

When an organization is using the ________ model of decision-making, it becomes an "organized anarchy" in which the decision about which alternative to select depends on which manager or coalition has the most influence or power to sway other decision makers at that moment.

Accepted Answer

The described decision-making model is the garbage-can model, which is characterized by a lack of structure and a haphazard process in which problems, solutions, and decision makers are all thrown into a metaphorical trash can and selected at random. In this model, decision making is a result of chance events and the availability of decision makers rather than a rational process. The other options do not fit the described model. The incrementalist model involves making small, gradual changes and improvements over time. The Carnegie model emphasizes cooperation and collaboration amongst decision makers. The rational model involves a structured and logical process to identify alternatives and make choices based on a systematic evaluation of the consequences of each option.

Question 4

Which of the following is an example of organizational learning that involves exploration?

Accepted Answer

Entering into a strategic alliance involves exploration as the company is venturing into new territory and learning from the experiences of another company. The other choices (implementing a TQM program, refining production processes, modifying an existing leave policy) involve more of an exploitation approach to organizational learning, where the focus is on improving existing practices and processes rather than exploring new ones.

Question 5

Which of the following models of organizational decision-making, developed by Henry Mintzberg and his colleagues explains why and how managers make nonprogrammed decisions?

Accepted Answer

The unstructured model, developed by Mintzberg and his colleagues, explains how managers make nonprogrammed decisions, which are complex and lack clear procedures.

Question 6

Which of the following organizational learning strategies, proposed by James March, involves organizational members learning ways to refine and improve existing organizational activities and procedures to increase effectiveness?

Accepted Answer

Exploitation involves the refinement and improvement of existing organizational activities and procedures to increase effectiveness. Exploration involves searching for new knowledge and opportunities, association involves building and maintaining relationships with others, and reciprocation involves exchanging resources and building mutual obligations.

Question 7

The rational model of decision-making assumes that ________.

Accepted Answer

The rational model of decision-making assumes that managers are aware of all alternative courses of action and their consequences. This model assumes that decision-making is a rational and linear process where the decision-maker evaluates all possible alternatives and chooses the best one based on a set of objective criteria. This model assumes that decision-makers are rational and have access to all the information necessary to make an optimal decision.

Question 8

Which of the following statements is true regarding the incrementalist model?

Accepted Answer

The incrementalist model assumes that decision makers rarely make major decisions that are radically different from decisions they have made before. They tend to make small, incremental adjustments to existing decisions or strategies. Option A is incorrect as the model does not suggest an unstructured and haphazard decision-making process. Option B is incorrect as the model is more suitable for a stable environment where incremental adjustments can be made. Option D is incorrect as the model does not suggest a thorough analysis of every possible alternative course of action.

Question 9

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

Accepted Answer

The Carnegie model of decision-making assumes that decision-making is influenced by the bounded rationality of individuals, meaning it is affected by the cognitive limitations, preferences, and values of the decision makers, rather than assuming that they have access to all information or generate all possible alternatives.

Question 10

Satisficing occurs when decision makers ________.

Accepted Answer

Satisficing occurs when decision makers settle for a decision that fulfills the minimum requirements rather than searching for the optimal solution. This often involves conducting limited information searches to identify problems and alternative solutions. Options A and B involve more extensive evaluation and critical thinking, while option C refers to the compromise effect, which is a different phenomenon than satisficing.

Question 11

According to the ________ model of organizational decision-making, when selecting a set of new alternative courses of action, managers tend to choose those that are only slightly different from those used in the past, thus lessening their chances of making a mistake.

Accepted Answer

The incrementalist model of organizational decision-making states that managers tend to choose alternative courses of action that are only slightly different from those used in the past, thus reducing the risk of making errors. This approach advocates making small changes over time and gradually improving existing policies and procedures rather than making large-scale, radical changes.

Question 12

The garbage-can approach to organizational decision-making is clearly the opposite of the approach described by the ________ model.

Accepted Answer

The garbage-can approach suggests that decision-making is a chaotic process where problems, solutions, participants, and even the choice of decision-making style can be mixed and matched in a non-linear way. In contrast, the rational model assumes that decision-making is a logical and analytical process that follows a step-by-step approach of problem identification, evaluation of alternatives, and selection of the optimal solution.

Question 13

Which of the following statements is true regarding the Carnegie model?

Accepted Answer

The Carnegie model acknowledges the complexity and uncertainty in organizational decision-making processes, recognizing that decisions are made in environments where information can be incomplete or ambiguous. This contrasts with more rational models that assume a more orderly and comprehensive evaluation of alternatives.

Question 14

Which of the following organizations is most likely to use the incrementalist model for decision-making?

Accepted Answer

The incrementalist model is most suitable for organizations that operate in stable environments where change is slow and gradual. As a dominant manufacturer of printing papers, the organization is likely to have a well-established routine and a structured decision-making process, which aligns with the incrementalist model. The other options mentioned have more dynamic, competitive or uncertain environments, which might require a more flexible or strategic decision-making approach.

Question 15

Senge has argued that for organizational learning to occur, each of its members needs to develop a sense of personal mastery, by which he means that organizations should ________.

Accepted Answer

Senge argues that personal mastery is the key to organizational learning, and personal mastery is achieved when people feel empowered to experiment, create, and explore what they want. Therefore, the best choice is D. The other options do not promote personal mastery, but rather rely on centralized decision-making, division of labor, and ambitious goals set by managers, which may stifle creativity and hinder individual growth.

Question 16

The term "________" refers to a limited capacity to process information.

Accepted Answer

Bounded rationality refers to the idea that our cognitive abilities are limited and we are unable to process all of the information that is available to us. This can result in our decisions being imperfect or incomplete, as we may not have all of the necessary information or may not be able to fully analyze the information that we do have. Planning fallacy, hindsight bias, and cryptomnesia are all related to cognitive biases or errors, but they do not specifically refer to a limited capacity to process information.

Question 17

Which of the following statements is true regarding the unstructured model of decision-making?

Accepted Answer

The unstructured model of decision-making suggests that decisions are made through a series of small, incremental steps rather than through a linear, sequential process. This approach is more adaptable to changing conditions and recognizes the complexity and unpredictability of real-world decision-making.

Question 18

The design of a(n) ________ structure facilitates exploitative learning.

Accepted Answer

A mechanistic structure is characterized by clearly defined roles, centralized decision-making, and standardized procedures. This type of structure is best suited for organizations that need to achieve efficiency and consistency in their operations. In a mechanistic structure, exploitative learning can be facilitated as employees are given specific tasks to perform and are trained to carry them out efficiently. This type of learning is focused on improving existing skills and processes, rather than exploring new ones. Therefore, in a mechanistic structure, employees are encouraged to learn how to optimize existing methods to achieve better results.

Question 19

Which of the following organizational learning strategies, proposed by James March, involves organizational members searching for and experimenting with new kinds or forms of organizational activities and procedures to increase effectiveness?

Accepted Answer

According to James March, exploration is the process of searching for and experimenting with new kinds or forms of organizational activities and procedures to increase effectiveness. Exploitation, on the other hand, involves improving existing organizational activities and procedures. Reciprocation and association are not organizational learning strategies proposed by James March.

Question 20

The ________ model of decision-making turns the decision-making process around and argues that managers are as likely to start decision-making from the "solution side" as from the "problem side." In other words, decision makers may propose solutions to problems that do not exist; they create a problem they can solve with solutions that are already available.

Accepted Answer

The garbage-can model of decision-making describes how managers may propose solutions to problems that do not exist and may have solutions available to them that they try to fit to a problem. This model turns the decision-making process around and proposes that managers work with different solutions simultaneously and select one rather than starting from the problem and finding a solution. The other options (Carnegie, rational, and incrementalist) do not describe this process.

Quiz 12: Decision Making, Learning, Knowledge Management, and Information Technology