Question 1

Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts?

Accepted Answer

Melissa's situation is consistent with bounded rationality, which refers to the idea that managers have limited information processing capabilities and must therefore make decisions based on incomplete information. This often leads to satisficing or choosing a solution that is "good enough" rather than the optimal solution. The classical model of decision making assumes that managers have unlimited information processing capabilities, which is not the case here. Brainstorming and scientific management are not relevant to Melissa's situation.

Question 2

Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at Jefferson are complex and involve many people, with a significant amount of disagreement and conflict. Which decision-making model fits best for this organization?

Accepted Answer

The political decision-making model is the best fit for Jefferson Inc. due to the complexity of decisions and the level of disagreement and conflict involved. This model takes into account the various perspectives and interests of different individuals and groups within the organization and involves bargaining, negotiation, and compromise to reach a decision.

Question 3

Which approach defines how a decision-maker should make decisions?

Accepted Answer

The normative approach provides guidelines on how decision-makers should make decisions based on rationality, logic, and ethics. This approach is concerned with establishing ideal decision-making processes that lead to optimal outcomes. It is therefore the most appropriate approach to define how a decision-maker should make decisions.

Question 4

The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as:

Accepted Answer

Bounded rationality is the concept that people have limited information processing capabilities and tend to make decisions based on a limited amount of information they can comprehend. Satisficing is a related concept which suggests that people choose the first option that meets their minimum criteria for an acceptable solution, rather than weighing all available options. Classical model of decision making, normative approach, and scientific approach are all different models and approaches to decision making, but they do not specifically address the concept of limited information processing capabilities.

Question 5

The _____ model closely resembles the real environment in which most managers and decision-makers operate.

Accepted Answer

The political model reflects the real-world environment where decisions are made through negotiation, coalition-building, and power dynamics among different stakeholders.

Question 6

All of the following are characteristics of the administrative decision making model except:

Accepted Answer

The administrative decision making model is characterized by vague problems and goals, limited information about alternatives and their outcomes, and satisfying choice. However, it is not characterized by conditions of certainty. In fact, conditions of uncertainty are often present, requiring decision makers to rely on intuition and judgement in addition to available information.

Question 7

The _____ model of decision making is most valuable when applied to _____.

Accepted Answer

The classical model of decision making is valuable when applied to programmed decisions, which are routine and repetitive decisions that can be made using established rules and procedures. The administrative model, on the other hand, is useful for nonprogrammed decisions that are complex and unstructured. Option B is incorrect because the classical model is not suitable for nonprogrammed decisions. Option D is incorrect because the classical model does not address ambiguous decisions. Option E is incorrect because the administrative model is not useful for making structured decisions.

Question 8

Most managers settle for a _____ rather than a _____ solution.

Accepted Answer

The term "satisficing" refers to choosing a solution that is satisfactory or "good enough," rather than maximizing and pursuing the absolute best solution. This approach is often taken by managers due to time, resource, or other constraints. Therefore, option B is the correct choice.

Question 9

Which of the following is the process of forming alliances among managers during the decision making process?

Accepted Answer

Coalition building is the process of forming alliances among managers during the decision-making process. This involves getting different groups or individuals together to work towards a common goal.

Question 10

The _____ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity.

Accepted Answer

The administrative model of decision making describes the process of decision making in real-world situations, where decisions are usually nonprogrammed, and the manager faces uncertainty and ambiguity. This model recognizes that decision makers have limited capacity to process information and often rely on heuristics or rules of thumb to make decisions. The administrative model also recognizes the importance of organizational politics and the influence of external factors on decision making. In contrast, the normative and classical models assume that decision makers have complete information, can rationalize all alternatives, and choose the best course of action based on an objective evaluation of criteria. The scientific management model is concerned with optimizing efficiency in work processes and is not directly related to decision making. The objective model is not a recognized model of decision making.

Question 11

Intuition is based on _____, but lacking in _____.

Accepted Answer

Intuition is often based on past experiences and subconscious knowledge, which means it relies heavily on experience. However, intuition may not always align with conscious thought or practicality, which is why it could be considered lacking in conscious thought.

Question 12

The _____ model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take.

Accepted Answer

The political model of decision-making is the best choice as it accounts for uncertainty, limited information, and conflicts among managers regarding goals and actions. It acknowledges that decisions are influenced by power, coalitions, and bargaining among different stakeholders. It also sees decision-making as a non-linear and iterative process rather than a linear and rational process as assumed by the classical model.

Question 13

All of the following are characteristics of the classical decision making model except:

Accepted Answer

The classical decision making model assumes that decision makers have clear-cut problems and goals, operate under conditions of certainty, make rational choices for maximizing outcomes, and have full information about alternatives and their outcomes. However, in reality, decision makers often have limited information about alternatives and their outcomes, which is not a characteristic of the classical model. Therefore, the correct answer is D.

Question 14

All of these are basic assumptions of the political model except:

Accepted Answer

The political model assumes that information is ambiguous and incomplete, which is one of the key differences between the rational and political models. The other options are all basic assumptions of the political model.

Question 15

_____ approach describes how managers actually make decisions, where as _____ approach defines how a decision-maker should make decisions.

Accepted Answer

The descriptive approach explains how managers actually make decisions, while the normative approach outlines how decisions should ideally be made.

Question 16

Rodney doesn't always realize that within his role as an air traffic controller, he must continuously perceive and process information based on knowledge and experience that he is not consciously aware of. This describes what type of decision-making?

Accepted Answer

The scenario described suggests that Rodney is making decisions based on intuition, meaning he is processing information subconsciously and relying on his experience and gut instincts to make decisions.

Question 17

Which model of decision making is associated with satisficing, bounded rationality, and uncertainty?

Accepted Answer

The administrative model of decision making is associated with satisficing (choosing an option that is satisfactory but not necessarily optimal), bounded rationality (limitations in processing and analyzing large amounts of information), and uncertainty (lack of complete information or predictability). This model recognizes that decision making often occurs in complex and uncertain environments, and emphasizes the importance of practicality and feasibility in choosing among options.

Question 18

The essence of _____ is to choose the first solution available.

Accepted Answer

The concept of satisficing involves choosing the first solution that meets the minimum requirements, rather than trying to maximize the outcome. This concept contrasts with decision maximization, which aims to identify the best possible solution. Bounded rationality is the idea that decision-makers operate within certain cognitive limitations, while creativity refers to the ability to generate original and valuable ideas. The classical model of decision making is a theoretical approach that assumes decision-makers have complete information and process it logically.

Question 19

The growth of quantitative decision techniques that use computers has expanded the use of which decision-making approach?

Accepted Answer

The growth of quantitative decision techniques that use computers has expanded the use of the classical decision-making approach, which involves a rational, systematic, and analytical evaluation of alternatives. Quantitative techniques, such as linear programming, decision trees, and simulation models, are used to support this approach. The other options (administrative, intuitive, political, bureaucratic) do not necessarily involve the use of quantitative techniques or computers.

Question 20

_____ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization.

Accepted Answer

Normative approach is concerned with defining how a decision maker should make decisions rather than describing how they actually make decisions (descriptive approach) or acknowledging the limitations of decision making (bounded rationality approach). It provides guidelines for reaching an ideal outcome for the organization. Administrative approach is concerned with how decisions are actually made in organizations.

Quiz 9: Managerial Decision Making