Question 1

We need to recognise that the cultural background of a decision maker can have a significant influence on:
A)the selection of problems.
B)the depth of analysis.
C)whether organisational decisions should be made by an individual manager or collectively in groups.
D)all of the above.

Accepted Answer

The cultural background of a decision maker can influence all three factors listed - the selection of problems, the depth of analysis, and whether decisions are made individually or collectively. Different cultural backgrounds can shape how a decision maker perceives problems, what criteria they use to evaluate potential solutions, and their preferred decision-making style. Therefore, it is important to take cultural factors into account when analyzing decision-making processes.

Question 2

The tendency of people to avoid seeking difficult information when making decisions is known as _____ bias.
A)overconfidence
B)anchoring
C)availability
D)confirmation

Accepted Answer

The answer of The tendency of people to avoid seeking...

Question 3

An Australian manager might make an important decision intuitively but knows it's important to proceed:
A)rationally.
B)collectively.
C)slowly.
D)quickly.

Accepted Answer

While intuition can be helpful in decision-making, it is also important for an Australian manager to proceed rationally, weighing all the options and considering the potential consequences. This approach will ensure that the decision is well thought out and ultimately in the best interest of the company.

Question 4

The satisficing decision maker is best characterised as someone who:
A)follows a decision confirmation process.
B)considers all alternatives.
C)operates within the confines of bounded rationality.
D)carries out a search for consistency.

Accepted Answer

The satisficing decision maker operates within the confines of bounded rationality, meaning they make decisions based on limited information and resources, and accept choices that are adequate, but not necessarily optimal or perfect. They may not consider all alternatives and do not necessarily carry out a search for consistency. The decision confirmation process is not exclusive to the satisficing decision maker.

Question 5

Which of the following is NOT a bias in decision making?
A)heuristic fallacy
B)escalation of commitment
C)availability bias
D)confirmation bias

Accepted Answer

Heuristic fallacy is not a recognized bias in decision making. The other options, escalation of commitment, availability bias, and confirmation bias, are all well-documented biases that can affect decision-making processes.

Question 6

Women are more likely to take longer to make a decision than men.Which of the following is a probable reason for this?
A)Women are generally more careless in selecting problem alternatives.
B)Women are depressed twice as often as men.
C)Women are more likely to need to consult other staff to make their decision.
D)Women are more likely to overthink the problem.

Accepted Answer

Studies have shown that women tend to overthink problems and consider more variables before making a decision, which can lead to longer decision-making processes. This is not necessarily a negative trait, as it can also result in more thoughtful and well-informed decisions. Option A is a stereotype and not supported by evidence. Option B is not relevant to the question. Option C might be true in certain situations but it is not a general explanation for women taking longer to make decisions.

Question 7

Confirmation bias occurs when people refuse to give credit to information that:
A)contradicts previous decisions.
B)affirms previous decisions.
C)contradicts current decisions.
D)affirms current decisions.

Accepted Answer

Confirmation bias is the tendency to look for, interpret, and favor information that confirms pre-existing beliefs while ignoring or dismissing evidence that contradicts those beliefs. Therefore, the correct choice would be A – when people refuse to give credit to information that contradicts previous decisions.

Question 8

Which of the following is NOT an organisational constraint on decision making?
A)performance evaluation
B)personality
C)reward system
D)formal regulations

Accepted Answer

Personality is not an organisational constraint on decision making as it refers to an individual's personal characteristics and traits, which are not determined by the organisation. The other options, performance evaluation, reward system, and formal regulations, are all factors that can impact and constrain decision making within the context of an organisation.

Question 9

__________ is an unconscious process created out of distilled experience.
A)Satisficing
B)Intuitive decision making
C)Bounded rationality
D)Optimising decision making

Accepted Answer

Intuitive decision making is an unconscious process that relies on distilled experience and can, therefore, be considered the best choice. Satisficing is a decision-making strategy based on selecting the first acceptable option rather than seeking to optimize the outcome, while bounded rationality is a limitation on the ability to make fully rational decisions due to constraints such as time or information. Optimizing decision-making seeks to choose the best option among all possible alternatives through a systematic evaluation of each one.

Question 10

Sarah's manager has informed her that the old computer software cannot accommodate their new customer load.Sarah is responsible for finding new software for her department.Sarah has to work out the functions that need to be carried out by the software and then look at all of the possible software programs to see how well they meet the weighted criteria.She then selects the alternative with the highest total score. Sarah's manager informing her of the need for new software exemplifies:
A)identification of decision criteria.
B)defining the problem.
C)rating each alternative of each criterion.
D)computing the optimal decision.

Accepted Answer

Sarah's manager informing her of the need for new software is the initial step of defining the problem in the decision-making process. The other options (A, C, and D) are part of the decision-making process but come after defining the problem.

Question 11

If you are satisficing,then you are:
A)exploring all possible options in a rational manner.
B)exploring a majority of options in a rational manner.
C)seeking a solution that is satisfactory and sufficient.
D)seeking a solution that will provide the best outcome.

Accepted Answer

Satisficing refers to making a decision or finding a solution that is satisfactory and sufficient, rather than seeking the absolute best outcome. Therefore, the correct choice is C. A, B, and D are all incorrect as they do not accurately describe satisficing.

Question 12

Which of the following decision-making biases are people with high and low levels of intelligence likely to fall prey to?
A)overconfidence bias
B)hindsight bias
C)availability bias
D)confirmation bias

Accepted Answer

People with both high and low levels of intelligence can fall prey to overconfidence bias, where they overestimate their knowledge or abilities.

Question 13

Sarah is responsible for purchasing a new computer system for her department.Given the significant financial investment,Sarah has decided to use the rational decision-making model. The first step will be:
A)computing the optimal decision.
B)identifying decision criteria.
C)rating each alternative of each criterion.
D)defining the problem.

Accepted Answer

The first step in the rational decision-making model is to define the problem. Sarah needs to clearly identify and understand what problem needs to be solved before moving on to identifying decision criteria and evaluating alternatives.

Question 14

All of the following statements are correct EXCEPT:
A)Decision making by Japanese managers is much more group oriented than in Australia.
B)Cultures differ in the importance they put on rationality.
C)There is a set of global ethical standards.
D)Criteria defining right and wrong are much clearer in Western countries than in Asia.

Accepted Answer

There is no universally accepted set of global ethical standards due to cultural, social, and legal differences across countries. Ethical norms vary significantly around the world, making it challenging to establish a single set of standards that apply globally.

Question 15

Our tendency to believe that we can predict the outcome of random events is known as:
A)chance bias.
B)gambling effect.
C)risk aversion.
D)none of the above.

Accepted Answer

The options provided (chance bias, gambling effect, risk aversion) do not accurately describe the tendency to believe we can predict the outcome of random events. This tendency is more accurately referred to as the "illusion of control," which is not listed among the options.

Question 16

The ___________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.
A)overconfidence
B)anchoring
C)availability
D)confirmation

Accepted Answer

The answer of The ___________ bias is a tendency to...

Question 17

An increased commitment to a previous decision in spite of negative information is called:
A)reengineering.
B)satisfying decision making.
C)optimising decision making.
D)escalation of commitment.

Accepted Answer

Escalation of commitment refers to the tendency to continue to invest time, money or resources into a decision, even when negative feedback or new information indicates that such commitment may be unwise or even counterproductive. This phenomenon occurs because decision makers want to justify their previous investment and prove that they were right, leading them to continue with a failing course of action rather than cut their losses and move on.

Question 18

Decisions are made over time,and they have a ________ as a result of choices made over the years.
A)context
B)deadline
C)formal regulation
D)payoff

Accepted Answer

Decisions are influenced by many factors such as history, culture, social norms, and economic conditions. These factors constitute the context in which decisions are made. Therefore, A is the correct answer as it describes the environment in which decisions are made and their impact over time. The other choices are not relevant in this context. Deadline refers to a specific time by which a decision must be made. Formal regulation refers to legal or institutional rules that govern decision-making. Payoff refers to the benefit gained from a specific decision or choice.

Question 19

Overconfidence bias occurs when people overestimate their abilities to make sound decisions.What type of person is most likely to fail through overconfidence bias?
A)50-70-year olds
B)people with weak interpersonal abilities
C)people with high knowledge of the problem
D)people with high knowledge of the solution

Accepted Answer

The answer of Overconfidence bias occurs when people overestimate their...

Question 20

Which organisational constraint is more likely to occur in bureaucracies?
A)performance evaluation
B)historical precedents
C)reward system
D)formal regulations

Accepted Answer

Bureaucracies are often characterized by rigid structures and adherence to rules and regulations. Therefore, formal regulations are more likely to occur as an organisational constraint in bureaucracies. Performance evaluation and reward systems may also exist, but they may be more constrained by the formal regulations, while historical precedents may have less influence in a bureaucracy due to the emphasis on following established rules and procedures.

Quiz 6: Perception and Individual Decision Making

We need to recognise that the cultural background of a decision maker can have a significant influence on:

The tendency of people to avoid seeking difficult information when making decisions is known as _____ bias.

An Australian manager might make an important decision intuitively but knows it's important to proceed:

The satisficing decision maker is best characterised as someone who:

Which of the following is NOT a bias in decision making?

Women are more likely to take longer to make a decision than men.Which of the following is a probable reason for this?

Confirmation bias occurs when people refuse to give credit to information that:

Which of the following is NOT an organisational constraint on decision making?

__________ is an unconscious process created out of distilled experience.

If you are satisficing,then you are:

Which of the following decision-making biases are people with high and low levels of intelligence likely to fall prey to?

Sarah is responsible for purchasing a new computer system for her department.Given the significant financial investment,Sarah has decided to use the rational decision-making model. The first step will be:

All of the following statements are correct EXCEPT:

Our tendency to believe that we can predict the outcome of random events is known as:

The ___________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.

An increased commitment to a previous decision in spite of negative information is called:

Decisions are made over time,and they have a ________ as a result of choices made over the years.

Overconfidence bias occurs when people overestimate their abilities to make sound decisions.What type of person is most likely to fail through overconfidence bias?

Which organisational constraint is more likely to occur in bureaucracies?