Question 1

Because it can bring together members from all over the world, electronic brainstorming often leads to greater diversity in solutions.

Accepted Answer

Electronic brainstorming allows people from different geographic locations and backgrounds to come together and share their ideas, resulting in a diverse range of solutions.

Question 2

After-action reviews should only be conducted after decisions that have led to bad outcomes.

Accepted Answer

After-action reviews should be conducted after any decision or action, regardless of the outcome, to identify areas for improvement and to reinforce successes.

Question 3

__________ decisions are associated with decision rules.
A)Nonprogrammed
B)Unique
C)Programmed
D)Ill-structured
E)Novel

Accepted Answer

Programmed decisions are those that are repetitive and routine and can be solved with an established decision rule or procedure. Nonprogrammed decisions, on the other hand, are unique and nonrecurring, and there is no established decision rule to solve them. Ill-structured decisions are complex and poorly defined, while novel decisions require creativity and innovation. The question specifically mentions decision rules, which are used in programmed decisions, making C the best choice.

Question 4

Examples of nonprogrammed decisions would include the decision to _____.
A)reorder supplies
B)develop a new product or service
C)perform routine maintenance on one of the machines in manufacturing
D)terminate an employee for violation of company rules
E)grant personal leave to an employee

Accepted Answer

Developing a new product or service is a nonprogrammed decision because it requires creative and innovative thinking and cannot be made based on routine procedures or standard operating procedures. The other options provided in the question (reordering supplies, performing routine maintenance, terminating an employee, granting personal leave) can be categorized as programmed decisions as they follow established protocols and can be made based on predetermined rules and criteria.

Question 5

Riley is a manager at the Tinker Tools.She is expected to make decisions that are in the organization's best economic interests.Her decisions should most likely be based on which of the following models of decision making?
A)Administrative
B)Garbage
C)Scientific management
D)Classical
E)Humanistic

Accepted Answer

The classical model of decision making emphasizes rationality, logic, and a systematic approach to decision making. This model is commonly used in organizations where managers are expected to make decisions based on the best economic interests of the organization. Therefore, it is the most appropriate model for Riley to use in making decisions as a manager at Tinker Tools.

Question 6

The tendency to continue investing in a failing project in the hope of turning it around is called the sunk cost effect

Accepted Answer

The definition given in the statement is accurate, which indicates that the statement is true. The sunk cost effect refers to the inclination to persist with a project, even if it is no longer profitable, due to the investment already made in it. This can result in additional investment being made even though it is unlikely to change the outcome.

Question 7

Decision alternatives can be thought of as tools for reducing the difference between the organization's current and desired performance.

Accepted Answer

Decision alternatives are options or approaches for achieving a desired outcome or addressing a problem or challenge. By selecting the best decision alternative, an organization can reduce the gap between its current performance and the performance it wants to achieve. Therefore, the statement is true.

Question 8

Bierderlack has a policy that states that people who are hired for entry-level clerical positions must have a high school diploma or the equivalent.When applications are received for entry-level clerical positions, applicants who do not have a high school diploma or an equivalent are automatically rejected.This is an example of ______.
A)a programmed decision
B)a nonprogrammed decision
C)an insignificant decision
D)poor management
E)a personal grudge

Accepted Answer

This is an example of a programmed decision as it is a routine decision based on a pre-established policy or rule.

Question 9

During the global financial crisis associated with the 2008 recession, finance companies had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as which type of decision?
A)Bounded
B)Programmed
C)Conventional
D)Wicked decision problem
E)Irrational decision

Accepted Answer

The decision to buy out failed banks during the 2008 recession can be classified as a wicked decision problem. This type of decision problem is characterized by a high level of ambiguity, incomplete information, and multiple possible outcomes, making it difficult to identify the best course of action. The decision to buy out failed banks during the crisis was a complex decision that involved trade-offs between short-term and long-term objectives, balancing public and private interests, and assessing the potential risks and benefits of different options. The decision-making process was complicated by factors such as political pressure, regulatory constraints, and the need to act quickly to prevent further damage to the financial system. Therefore, this decision required careful consideration of multiple factors and a willingness to make trade-offs between competing objectives.

Question 10

The idea underlying Lenovo's fu pan method is that managers should review every decision they make to improve the next one.

Accepted Answer

Lenovo's fu pan method is based on continuous improvement through reviewing and analyzing every decision made, in order to make better decisions in the future.

Question 11

Shirley works in the human resource department at Turtle Shells, Inc.She believes she is seeing an increase in alcohol use problems among the workforce.She thinks she needs to investigate further.She is at which of the following stages of the managerial decision-making process?
A)Diagnosis and analysis of causes
B)Development of alternatives
C)Recognition of decision requirement
D)Evaluation and feedback
E)Selection of desired alternative

Accepted Answer

Shirley is at the recognition of decision requirement stage because she has noticed an issue and believes she needs to investigate further to make a decision.

Question 12

Bobby, a product manager, wants to increase the market share of his product.He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share.Bobby is operating under a condition of ______.
A)risk
B)ambiguity
C)certainty
D)uncertainty
E)brainstorming

Accepted Answer

Bobby is unsure about how different factors will interact, indicating a condition of uncertainty.

Question 13

Genna is collecting data on how well the organization has done since a new strategy was implemented.She is in which of the following stages of the managerial decision-making process?
A)Development of alternatives
B)Implementation of chosen alternative
C)Evaluation and feedback
D)Recognition of decision requirement
E)Selection of desired alternative

Accepted Answer

Genna is in the stage of evaluating the feedback on how well the organization has performed since implementing a new strategy. This is a part of the evaluation and feedback stage of the managerial decision-making process, which comes after the implementation of the chosen alternative.

Question 14

The concept of quasirationality combines intuitive and analytical thought.

Accepted Answer

Quasirationality is a cognitive process that combines intuitive (or heuristic) thinking and analytical reasoning. It suggests that individuals may not always make rational decisions, but rather use a mix of analytical and intuitive thinking to make decisions that are good enough to meet their needs and goals. Therefore, option A is correct, and option B is incorrect.

Question 15

The __________ model closely resembles the real environment in which most managers and decision makers operate.
A)normative
B)administrative
C)coalition
D)classical
E)political

Accepted Answer

The political model closely resembles the real environment in which most managers and decision makers operate, as it recognizes the existence of conflicting interests and power struggles within an organization. It emphasizes the importance of building coalitions and alliances to achieve goals rather than strictly following rational decision-making processes.

Question 16

When managers block or distort negative information because they don't want to be responsible for a bad decision, they are displaying escalating commitment.

Accepted Answer

Escalating commitment refers to the tendency of individuals or groups to continue investing in a decision or course of action even when it is no longer rational or profitable, often due to a desire to justify past investments or avoid admitting failure. Blocking or distorting negative information can be a form of this behavior, as managers may be hesitant to acknowledge the true state of a project or situation in order to avoid admitting they made a mistake or to protect their reputation.

Question 17

Managers using a conceptual style of decision making consider many broad alternatives, rely on information from both people and systems, and like to solve problems creatively.

Accepted Answer

This is an accurate description of the conceptual style of decision making.

Question 18

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?
A)Bounded rationality
B)The classical model of decision making
C)Satisficing
D)Brainstorming
E)Scientific management

Accepted Answer

Melissa's situation is consistent with bounded rationality, which is the idea that decision-makers have limited information-processing capabilities and must therefore rely on heuristics (mental shortcuts) and satisficing (satisfying solutions that may not be optimal but are "good enough"). The classical model of decision making assumes that decision-makers have access to all relevant information and can make logical, optimal decisions. Brainstorming and scientific management are not relevant to Melissa's situation.

Question 19

Feedback works best when it is delayed and emotions have had a chance to settle.

Accepted Answer

Feedback is most effective when it is timely, as it allows individuals to connect the feedback with their actions and make necessary adjustments while the experience is still fresh.

Question 20

The 5 Whys is a question-asking technique that can help diagnose the root cause of a specific problem.

Accepted Answer

The 5 Whys is a question-asking technique used to identify the root cause of a problem. It involves asking "Why" five times to get to the underlying cause.

Quiz 6: Managerial Decision Making

Because it can bring together members from all over the world, electronic brainstorming often leads to greater diversity in solutions.

After-action reviews should only be conducted after decisions that have led to bad outcomes.

__________ decisions are associated with decision rules.

Examples of nonprogrammed decisions would include the decision to _____.

Riley is a manager at the Tinker Tools.She is expected to make decisions that are in the organization's best economic interests.Her decisions should most likely be based on which of the following models of decision making?

The tendency to continue investing in a failing project in the hope of turning it around is called the sunk cost effect

Decision alternatives can be thought of as tools for reducing the difference between the organization's current and desired performance.

During the global financial crisis associated with the 2008 recession, finance companies had to make important decisions in a highly ambiguous environment.The decision to buy out failed banks could best be described as which type of decision?

The idea underlying Lenovo's fu pan method is that managers should review every decision they make to improve the next one.

Shirley works in the human resource department at Turtle Shells, Inc.She believes she is seeing an increase in alcohol use problems among the workforce.She thinks she needs to investigate further.She is at which of the following stages of the managerial decision-making process?

Bobby, a product manager, wants to increase the market share of his product.He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share.Bobby is operating under a condition of ______.

Genna is collecting data on how well the organization has done since a new strategy was implemented.She is in which of the following stages of the managerial decision-making process?

The concept of quasirationality combines intuitive and analytical thought.

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

When managers block or distort negative information because they don't want to be responsible for a bad decision, they are displaying escalating commitment.

Managers using a conceptual style of decision making consider many broad alternatives, rely on information from both people and systems, and like to solve problems creatively.

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?

Feedback works best when it is delayed and emotions have had a chance to settle.

The 5 Whys is a question-asking technique that can help diagnose the root cause of a specific problem.