Question 1

Because innovative decisions usually represent a sharp break with the past, they normally happen in a logical, orderly sequence.

Accepted Answer

Innovative decisions often involve a degree of chaos and unpredictability, not necessarily following a logical, orderly sequence, as they can result from sudden insights or shifts in perspective.

Question 2

Whirlpool sees production technology as its differentiating strategy.

Accepted Answer

The answer of Whirlpool sees production technology as its differentiating...

Question 3

Every salaried employee at Whirlpool is enrolled in an online course on business innovation.

Accepted Answer

The answer of Every salaried employee at Whirlpool is enrolled...

Question 4

The bounded rationality model prescribes a set of phases that individuals or teams should follow to increase likelihood that their decisions will be logical and optimal.

Accepted Answer

The bounded rationality model suggests that individuals and teams are limited in their decision-making capabilities by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. It does not prescribe a set of phases for making decisions but rather explains why decisions are often satisficing—meeting criteria for adequacy—rather than optimal.

Question 5

The law of small numbers bias refers to the tendency to view a few incidents or cases as representative of a larger population even when they aren't.

Accepted Answer

The law of small numbers bias is a cognitive bias that leads people to draw broad conclusions from small samples, mistakenly believing that small samples closely resemble the larger population from which they are drawn.

Question 6

Franklin Lee, a plant manager, has agreed to select an acceptable goal or alternative solution rather than searching for the best available goal or alternative solution. This concept is known as satisficing.

Accepted Answer

Satisficing is a decision-making strategy that entails selecting an acceptable or satisfactory option, rather than searching for the best possible solution, which aligns with Franklin Lee's approach.

Question 7

The rational model describes the decision-making process in terms of the self-interests and goals of powerful external and internal shareholders.

Accepted Answer

The rational model of decision-making is a process where decisions are made based on logical and systematic steps, aiming for the most optimal outcome after considering all available information and alternatives. It does not specifically focus on the interests and goals of powerful stakeholders.

Question 8

Power is the ability to influence or control individual, team, departmental, or organizational decisions and goals.

Accepted Answer

Power refers to the capacity of an individual or group to influence or control the actions, decisions, and behaviors of others, thereby impacting organizational or group outcomes and goals.

Question 9

Donald Mather recognizes that he must balance the conflicting goals among his various stakeholder groups as he seeks to make an important decision. Mather will likely need to use the political model of decision making.

Accepted Answer

The political model of decision making is used when interests conflict and no clear, easy solution is apparent, requiring negotiation and coalition-building among stakeholders, which aligns with Mather's situation of balancing conflicting goals.

Question 10

Stakeholders within an organization often view information as a major source of power.

Accepted Answer

Stakeholders within an organization often view information as a major source of power because it enables informed decision-making, strategic planning, and competitive advantage. Access to and control over information can significantly influence organizational dynamics and outcomes.

Question 11

Divergence refers to bringing new stakeholder representatives into the strategic decision-making process as a way to avert threats to an organization's stability or existence.

Accepted Answer

Divergence typically refers to the process of developing different opinions, methods, or directions in a group or system, rather than specifically bringing new stakeholders into decision-making processes.

Question 12

John Wade decided that after working for Polaroid Corporation for 2 months, he had had enough of his boss and resigned.

Accepted Answer

John Wade is a fictional character and there is no verifiable information to suggest that he worked for Polaroid Corporation or resigned after 2 months due to issues with his boss.

Question 13

John Wade's example of working with his multiple bosses demonstrates the need for an effective communication competency.

Accepted Answer

Effective communication is crucial when managing relationships with multiple bosses, as it helps in clarifying expectations, coordinating tasks, and preventing misunderstandings.

Question 14

The Ball Corporation has major business segments in:
A) North American Metal Beverage Packaging
B) Metal Food Packaging
C) North American Plastic Packaging
D) All of the above

Accepted Answer

The Ball Corporation is involved in various packaging solutions, including North American Metal Beverage Packaging, Metal Food Packaging, and has historically been involved in North American Plastic Packaging, making all the options correct.

Question 15

R. David Hoover, chairman, CEO, and president of the Ball Corporation, says he spend 75% of his time ______________.
A) understanding all of the data
B) solving problems of one sort or another
C) making sure there are no major blind spots
D) watching people grow and develop

Accepted Answer

R. David Hoover, chairman, CEO, and president of the Ball Corporation, has stated that he spends 75% of his time solving problems of one sort or another, highlighting the significant portion of his role dedicated to problem-solving.

Question 16

Every day, managers typically make decisions using a process that includes all of the following basic elements except __________.
A) develop strategies
B) generate alternatives
C) choose a course of action
D) define the problem

Accepted Answer

Developing strategies is generally considered a broader activity that encompasses decision making but is not a basic element of the daily decision-making process itself. The daily decision-making process typically involves defining the problem, generating alternatives, and choosing a course of action.

Question 17

_________ underlies most managerial competencies.
A) Common Sense
B) Managerial input
C) Decision making
D) Forward thinking

Accepted Answer

Decision making is fundamental to managerial competencies as it involves choosing between different options to solve problems and achieve objectives, which is a core aspect of management.

Question 18

The conditions under which decisions are made can be classified as __________.
A) certainty and ambiguity
B) uncertainty and creativity
C) certainty and routinization
D) certainty, risk, and uncertainty

Accepted Answer

Decisions are made under three primary conditions: certainty, where outcomes of decisions are known; risk, where the probabilities of outcomes are known; and uncertainty, where probabilities of outcomes are not known.

Question 19

The condition of certainty means that the __________ and __________ are known.
A) problem; decision
B) problem; alternative solutions
C) opportunities; threats
D) strengths; weaknesses

Accepted Answer

The condition of certainty implies that the problem and the alternative solutions are known, allowing for a clear decision-making process.

Question 20

Liesl Lemmond is president of McFadden Industries. She needs to choose a marketing plan. Lemmond knows all about the problem, alternative plans are obvious, and the results of each plan are clear. Lemmond will make her decisions under a condition of __________.
A) risk
B) guarantee
C) loss
D) certainty

Accepted Answer

Lemmond will make her decisions under a condition of certainty because she knows all about the problem, the alternative plans are obvious, and the results of each plan are clear.

Quiz 8: Fundamentals of Decision Making

Because innovative decisions usually represent a sharp break with the past, they normally happen in a logical, orderly sequence.

Whirlpool sees production technology as its differentiating strategy.

Every salaried employee at Whirlpool is enrolled in an online course on business innovation.

The bounded rationality model prescribes a set of phases that individuals or teams should follow to increase likelihood that their decisions will be logical and optimal.

The law of small numbers bias refers to the tendency to view a few incidents or cases as representative of a larger population even when they aren't.

Franklin Lee, a plant manager, has agreed to select an acceptable goal or alternative solution rather than searching for the best available goal or alternative solution. This concept is known as satisficing.

The rational model describes the decision-making process in terms of the self-interests and goals of powerful external and internal shareholders.

Power is the ability to influence or control individual, team, departmental, or organizational decisions and goals.

Donald Mather recognizes that he must balance the conflicting goals among his various stakeholder groups as he seeks to make an important decision. Mather will likely need to use the political model of decision making.

Stakeholders within an organization often view information as a major source of power.

Divergence refers to bringing new stakeholder representatives into the strategic decision-making process as a way to avert threats to an organization's stability or existence.

John Wade decided that after working for Polaroid Corporation for 2 months, he had had enough of his boss and resigned.

John Wade's example of working with his multiple bosses demonstrates the need for an effective communication competency.

The Ball Corporation has major business segments in:

R. David Hoover, chairman, CEO, and president of the Ball Corporation, says he spend 75% of his time ______________.

Every day, managers typically make decisions using a process that includes all of the following basic elements except __________.

_________ underlies most managerial competencies.

The conditions under which decisions are made can be classified as __________.

The condition of certainty means that the and are known.

Liesl Lemmond is president of McFadden Industries. She needs to choose a marketing plan. Lemmond knows all about the problem, alternative plans are obvious, and the results of each plan are clear. Lemmond will make her decisions under a condition of __________.