Question 1

Which distinction should be made between different types of decisions made in organizations?

Accepted Answer

Programmed decisions are routine and repetitive, often with a defined procedure for handling them, while non-programmed decisions are unique and require custom solutions, often in response to unpredictable or novel situations.

Question 2

Vagueness, poor structure, and newness are characteristics of:

Accepted Answer

Non-programmed decisions are characterized by vagueness, poor structure, and newness, as they are made in response to situations that are novel, poorly defined, and unstructured, requiring a custom-made solution.

Question 3

Which of the following is not a step in the nine-step decision cycle?

Accepted Answer

The nine-step decision cycle includes steps such as Define, Diagnose, and Choose, but does not include Initiate as a step. Initiate is more related to the beginning of a project or process rather than a step within the decision-making cycle itself.

Question 4

In the econological model, the resultant decision is considered to be:

Accepted Answer

The resultant decision in the econological model is considered to be based on rationality, as it is assumed that the decision-maker has perfect information and will make the decision that maximizes their utility.

Question 5

Which of the following is not a main process of the bounded rationality model?

Accepted Answer

The bounded rationality model, proposed by Herbert Simon, does not include the application of contingency models as a main process. It focuses on how decision-makers consider alternatives sequentially, use heuristics to simplify decision-making, and seek satisfactory solutions rather than optimal ones, due to cognitive limitations and time constraints.

Question 6

Which decision bias represents a good example of selective perception?

Accepted Answer

Confirmation bias is a type of selective perception where individuals tend to favor information that confirms their preconceptions or hypotheses, regardless of whether the information is true. They may also seek out, interpret, and remember information in a way that confirms their beliefs, while ignoring or dismissing information that contradicts them.

Question 7

Intuition is:

Accepted Answer

Intuition can complement systematic analysis by providing insights that are not immediately obvious through analytical methods alone. It can help in making decisions or generating ideas that are informed by experience and subconscious understanding, thus working alongside systematic analysis rather than against it or as a sign of failure.

Question 8

The implicit favourite model postulates the view that:

Accepted Answer

The implicit favourite model suggests that individuals often simplify complex decision-making processes by identifying a preferred option early on, which then serves as a benchmark against which other options are evaluated. This approach helps in managing the complexity and cognitive load of the decision-making process.

Question 9

The phenomenon that heavy reliance is based on personal judgement even when useful information is available is referred to as:

Accepted Answer

Subjective rationality refers to the tendency of individuals to rely heavily on their own judgment or intuition, even when objective, useful information is available that could lead to a better decision. This phenomenon highlights how personal biases and perceptions can influence decision-making processes.

Question 10

Persisting in an ineffective course of action is referred to as:

Accepted Answer

Escalation of commitment refers to the phenomenon where individuals or organizations continue to invest time, money, or effort into a failing course of action due to the substantial resources already committed rather than altering or abandoning their course.

Question 11

Investor psychology is associated with:

Accepted Answer

Investor psychology encompasses various theories that explain how investors make decisions, often in the face of uncertainty. These include Subjective Rationality, which deals with how individuals' personal biases and perceptions influence their decision-making; Prospect Theory, which describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known; and Regret Theory, which considers the anticipation of regret in making decisions. All these theories are integral to understanding investor behavior, hence they are all associated with investor psychology.

Question 12

Adler refers to five steps in the decision-making process that ought to be considered in the context of culture. Which of the following is not one of them?

Accepted Answer

Power distance is a cultural dimension that describes how power is distributed and accepted within a society or organization, not a step in Adler's decision-making process. The steps in the decision-making process include recognizing the problem, constructing alternatives, and implementing a solution, among others.

Question 13

When someone concentrates on facts and precision, but does so in a way that high-lights human relations, that person has a:

Accepted Answer

The correct answer is C) Sensation-feeling decision style. This style focuses on facts and precision (sensation) while also emphasizing human relations (feeling).

Question 14

There is some evidence that maintains that the left brain is not much involved in:

Accepted Answer

The left brain is traditionally associated with analytical thinking, logical reasoning, and mathematical functions. Synthesis, which involves combining different ideas or elements to form a coherent whole, is more commonly associated with the right hemisphere of the brain. This is because the right brain is thought to be more involved in creative processes, intuition, and holistic thinking.

Question 15

Innovators are more inclined to:

Accepted Answer

Innovators are more inclined to avoid routine work because they are always looking for new and better ways to do things.

Question 16

In the creative process, obtaining information relevant to the problem or opportunity occurs in the:

Accepted Answer

The immersion stage is where individuals gather information and resources pertinent to the problem or opportunity, immersing themselves in the details and complexities to understand it better.

Question 17

A technique used to enhance creativity is:

Accepted Answer

Brainstorming is a widely recognized technique used to generate creative ideas and solutions through intensive and freewheeling group discussion. Each participant is encouraged to think aloud and suggest as many ideas as possible, no matter how outlandish or unconventional.

Question 18

Important factors promoting innovations in organizations are:

Accepted Answer

All the options listed are important factors that promote innovations in organizations. Management of creativity, persistence and contributions from various quarters, and sponsorship of creativity by supportive managers are all crucial for fostering an innovative environment.

Question 19

There is evidence to indicate that creative people:

Accepted Answer

All of the options (A, B, and C) accurately describe characteristics that have been associated with creative individuals. Openness, mental flexibility, tolerance for ambiguity, self-confidence, willingness to take risks, and independent thinking are all traits that contribute to a person's creative capabilities.

Question 20

Creativity is said to be associated with:

Accepted Answer

Creativity is associated with a particular type of brain activity, which can be observed and studied through MRI scans, and it is fundamentally linked to innovation, as it involves generating new and original ideas or solutions.

Quiz 7: Individual Decision Making and Creativity