Question 1

During the annual performance appraisal, Andre's supervisor sets her own standards against which Andre is rated for his performance. In this scenario, Andre's supervisor most likely uses _____ to make a rational decision.
A) absolute comparisons
B) relative comparisons
C) dissonant correlation
D) illusory correlation

Accepted Answer

Absolute comparisons involve comparing an individual's performance against a pre-established standard or criteria, which is likely what Andre's supervisor is doing when setting her own standards against which Andre is rated. This approach allows for more objective and rational decision-making, rather than relying on subjective or relative comparisons to other employees.

Question 2

Chester, the operations manager at a chemical manufacturing company, finds that the air pollutants released by the company have become very high. To arrive at a decision to resolve the issue, he defines the problem and then identifies decision criteria. In the context of rational decision making, which of the following is the next step that Chester should ideally take?
A) Computing the optimal decision
B) Weighing the decision criteria
C) Generating alternative courses of action
D) Making absolute comparisons

Accepted Answer

After identifying decision criteria, the next step in the rational decision-making process is to weigh these criteria to determine their relative importance.

Question 3

Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to understand the reason behind this trend and make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that Edgar should ideally take?
A) Identifying and defining the problem
B) Computing the optimal decision
C) Generating alternative courses of action
D) Identifying decision criteria

Accepted Answer

The first step in rational decision making is to identify and define the problem. Only by understanding the problem can Edgar generate alternative courses of action, identify decision criteria, and compute the optimal decision.

Question 4

Betty runs a boutique. She buys semi-automatic sewing machines for her tailors because she cannot afford the fully automatic ones. This scenario best illustrates the concept of _____.
A) maximizing
B) counterconditioning
C) overregularizing
D) satisficing

Accepted Answer

Satisficing is a decision-making strategy that involves selecting an option that is satisfactory or "good enough" rather than trying to optimize for the best possible outcome. In this scenario, Betty buys semi-automatic sewing machines for her tailors because she cannot afford fully automatic ones, indicating that she is satisficing by selecting the option that is good enough for her needs and budget.

Question 5

Robert has a list of characteristics that he wants his new house to have, and he has listed every item in that list in their order of importance to him. Among the items on his list, the proximity to a bus stop has the highest priority as it is his primary means of commuting, and the street name has the lowest priority. In this scenario, Robert is using _____ to make a rational decision.
A) absolute comparisons
B) relative comparisons
C) benchmarking
D) satisficing

Accepted Answer

Robert is using a method of prioritizing his list based on the relative importance of each characteristic. This is known as relative comparisons. He is not comparing each characteristic to an absolute standard or benchmark, nor is he settling for the first satisfactory option, which are the definitions of benchmarking and satisficing, respectively.

Question 6

In the context of decision making, a _____ is a gap between a desired state and an existing state.
A) problem
B) benchmark
C) condition of certainty
D) minimum threshold

Accepted Answer

A problem is defined as a gap between a desired state and an existing state in the context of decision making. The other options, benchmark, condition of certainty, and minimum threshold, do not represent this concept accurately.

Question 7

_____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.
A) Options-based planning
B) Rational decision making
C) Benchmarking
D) Profiling

Accepted Answer

Rational decision making involves analyzing and evaluating all available alternatives and selecting the best solution based on predetermined criteria. It is a systematic and logical approach that is commonly used in business and management to make informed and unbiased decisions. The other options, options-based planning, benchmarking, and profiling, all involve different processes and techniques for making decisions, but they are not as comprehensive and structured as rational decision making.

Question 8

Henncom, a company that manufactures computer spare parts, runs its operations in a small office. Owing to the increase in the demand for its products, the company needs to hire more employees. Instead of opting for the temporary solution of reducing each employee's workspace to accommodate more employees, Carl, the operations manager, decides to go with the optimal solution of shifting the company to larger premises. In this scenario, Carl is most likely _____.
A) maximizing
B) counterconditioning
C) overregularizing
D) satisficing

Accepted Answer

Carl is maximizing by choosing the optimal solution of shifting the company to larger premises instead of going for a temporary solution that would reduce each employee's workspace. Maximizing involves choosing the best possible option among alternatives.

Question 9

_____ are defined as the standards used to guide judgments and decisions.
A) Standing plans
B) Purpose statements
C) Decision criteria
D) Judgement liens

Accepted Answer

Decision criteria are the standards or guidelines used to evaluate alternatives and guide judgments and decisions. Standing plans are a set of predetermined actions to be taken in response to recurring situations, Purpose statements define the reason for an organization's existence, and Judgement liens are legal orders that allow creditors to collect on outstanding debts.

Question 10

Shoerls, a footwear manufacturing company, had been purchasing its raw materials from Douglem. When Douglem increased the prices of its products, the production managers at Shoerls decided to purchase the raw materials from a different supplier that they believed would be a good-enough alternative. This scenario best illustrates the concept of _____.
A) counterconditioning
B) overregularizing
C) maximizing
D) satisficing

Accepted Answer

This scenario best illustrates the concept of satisficing, which is the act of making a decision that is perceived to be "good enough" rather than trying to find the "best" option. In this case, Shoerls decided to switch suppliers to a "good enough" alternative rather than seeking out the best possible supplier.

Question 11

Daniel has started a small shoe manufacturing company. He has a tight budget, and does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.
A) maximizing
B) discounting
C) specializing
D) satisficing

Accepted Answer

Daniel is satisficing, which means he is making do with equipment that is good enough for his current needs rather than trying to find the best equipment available given his budget constraints.

Question 12

Claire is a manager at an information technology (IT) firm. She notices a consistent drop in the productivity of her employees. She is not able to find the reason behind this drop. In the context of rational decision making, which of the following steps should Claire take first?
A) Computing the optimal decision
B) Defining the problem
C) Generating alternative courses of action
D) Identifying decision criteria

Accepted Answer

The first step in rational decision making is to define the problem, which Claire has already identified as a drop in productivity. Only after defining the problem can Claire move on to generating alternative courses of action, identifying decision criteria, and computing the optimal decision.

Question 13

Gloria, a designer, is looking for a rented place to set up her own tailoring unit. She has laid down several criteria for finding the ideal place for her unit. Among the criteria, connectivity to public transport is her highest priority, accessibility of community stores is less important, and fully furnished kitchenette is her lowest priority. In this scenario, Gloria is most likely using _____ to make a rational decision.
A) absolute comparisons
B) relative comparisons
C) dissonant correlation
D) illusory correlation

Accepted Answer

Gloria is using relative comparisons to prioritize her criteria for finding the ideal place for her tailoring unit. She is comparing the importance of one criteria to another, such as preferring connectivity to public transport over accessibility of community stores or fully furnished kitchenette.

Question 14

_____ is defined as the process of choosing a solution from available alternatives.
A) Production blocking
B) Decision making
C) Evaluation apprehension
D) Dialectical inquiry

Accepted Answer

Decision making is the process of choosing a solution from available alternatives. Option A (Production blocking) refers to a group process phenomenon where production of ideas may be blocked due to the presence of others in the group who are trying to express their ideas. Option C (Evaluation apprehension) refers to the anxiety or fear that an individual feels when being evaluated by others. Option D (Dialectical inquiry) is a method used in group decision making that involves considering two opposing viewpoints in order to reach a synthesis or resolution.

Question 15

Lewrice, an apparel manufacturer, has been finding it difficult to deliver its products to its retailers on time. The time taken to deliver the products has been more than the estimated time in almost all instances. The managers of the company have to make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that the managers should ideally take?
A) Computing the optimal decision
B) Identifying and defining the problem
C) Generating alternative courses of action
D) Identifying decision criteria

Accepted Answer

The first step in rational decision making is to identify and define the problem. Without identifying the problem, it is difficult to generate alternative courses of action, identify decision criteria, or compute the optimal decision. Once the problem is defined, the managers can move on to other steps in the decision-making process.

Question 16

In the context of operational plans, which of the following is a difference between single-use plans and standing plans?
A) Single-use plans cover unique, one-time-only events, whereas standing plans handle frequently recurring events.
B) Single-use plans use quantitative planning, whereas standing plans use qualitative planning.
C) Single-use plans include policies and procedures, whereas standing plans include rules and regulations.
D) Single-use plans are operational plans, whereas standing plans are tactical plans.

Accepted Answer

Single-use plans are designed to handle unique, one-time-only events, such as a specific project or a special event. Standing plans, on the other hand, are intended to be used repeatedly to handle frequently occurring situations, such as standard operating procedures or policies.

Question 17

Tyler, the site engineer at a construction company, has identified and defined the problem of frequent accidents during the construction of high-rise buildings. In the context of rational decision making, which of the following is the next step that Tyler should ideally take?
A) Computing the optimal decision
B) Making absolute comparisons
C) Generating alternative courses of action
D) Identifying decision criteria

Accepted Answer

The answer of Tyler, the site engineer at a construction...

Question 18

In the context of rational decision making, which of the following is a difference between absolute comparisons and relative comparisons?
A) Unlike in absolute comparisons, in relative comparisons, each criterion is compared with a standard.
B) Unlike in absolute comparisons, in relative comparisons, each criterion is ranked on its own merits.
C) Unlike in absolute comparisons, in relative comparisons, each criterion is compared directly with every other criterion.
D) Unlike in absolute comparisons, in relative comparisons, each criterion is assigned a fixed weight based on its relevance.

Accepted Answer

In absolute comparisons, each criterion is evaluated separately based on its importance, and then the alternatives are evaluated against each criterion. In contrast, in relative comparisons, each criterion is compared directly with every other criterion to determine its importance. This allows for a more comprehensive understanding of the trade-offs between different criteria. Option C best captures this difference as it highlights the direct comparison between criteria in relative comparisons.

Question 19

Liastem, a company that manufactures machinery parts, required Computer Numerical Control (CNC) machines for production. The company bought old CNC machines and modified them to meet company requirements because it could not afford fully-automatic, new CNC machines. This scenario best illustrates the concept of _____.
A) maximizing
B) counterconditioning
C) overregularizing
D) satisficing

Accepted Answer

The scenario best illustrates the concept of satisficing, which means choosing an option that is satisfactory or good enough, rather than pursuing an optimal solution. Liastem chose to modify old CNC machines instead of buying new fully-automatic ones because it could not afford them. This decision was a satisfactory solution for the company's production needs, even though it was not the optimal or ideal solution.

Question 20

An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.
A) vision statement
B) single-use plan
C) strategic objective
D) mission statement

Accepted Answer

A strategic objective is a specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. A vision statement outlines the organization's aspirations, a mission statement describes the organization's purpose, and a single-use plan is a one-time plan developed to achieve a specific goal.

Quiz 5: Planning and Decision Making

During the annual performance appraisal, Andre's supervisor sets her own standards against which Andre is rated for his performance. In this scenario, Andre's supervisor most likely uses _____ to make a rational decision.

Betty runs a boutique. She buys semi-automatic sewing machines for her tailors because she cannot afford the fully automatic ones. This scenario best illustrates the concept of _____.

In the context of decision making, a _____ is a gap between a desired state and an existing state.

_____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

_____ are defined as the standards used to guide judgments and decisions.

Daniel has started a small shoe manufacturing company. He has a tight budget, and does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.

Claire is a manager at an information technology (IT) firm. She notices a consistent drop in the productivity of her employees. She is not able to find the reason behind this drop. In the context of rational decision making, which of the following steps should Claire take first?

_____ is defined as the process of choosing a solution from available alternatives.

In the context of operational plans, which of the following is a difference between single-use plans and standing plans?

Tyler, the site engineer at a construction company, has identified and defined the problem of frequent accidents during the construction of high-rise buildings. In the context of rational decision making, which of the following is the next step that Tyler should ideally take?

In the context of rational decision making, which of the following is a difference between absolute comparisons and relative comparisons?

An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.