Question 1

Delphi technique is a written approach to creative problem solving.

Accepted Answer

Delphi technique is a written approach to creative problem solving.

Question 2

In the decision-making process, to compare what actually happened to what was expected to happen as a result of the decision is a procedure of choosing among alternatives.

Accepted Answer

To compare what actually happened to what was expected to happen as a result of the decision is a procedure of learning from feedback.

Question 3

Individuals who believe that they are responsible for what happens to them and that their own actions determine important outcomes are said to have an external locus of control.

Accepted Answer

Entrepreneurs are likely to have an internal locus of control, believing that they are responsible for what happens to them and that their own actions determine important outcomes such as the success or failure of a new business.

Question 4

The final step in the decision-making process is the implementation of the alternative solution.

Accepted Answer

The final step in the decision-making process is learning from feedback. Effective managers always conduct a retrospective analysis to see what they can learn from past successes or failures.

Question 5

The classical decision-making model assumes that managers have all of the information they need in order to make the optimum decision.

Accepted Answer

The classical model assumes managers have access to all the information they need to make the optimum decision, which is the most appropriate decision possible in light of what they believe to be the most desirable consequences for the organization.

Question 6

Product champions are a group of intrapreneurs who are deliberately separated from the normal operation of an organization to encourage them to devote all their attention to developing new products.

Accepted Answer

A skunkworks is a group of intrapreneurs who are deliberately separated from the normal operation of an organization to encourage them to devote all their attention to developing new products. The idea behind the product champion role is that employees who feel ownership for a project are inclined to act like outside entrepreneurs and go to great lengths to make the project succeed.

Question 7

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.

Accepted Answer

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.

Question 8

Rationalization is a critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented.

Accepted Answer

Devil's advocacy is a critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented.

Question 9

A manager of a charity asks the board of directors for permission to hire temporary help when the regular secretary goes on vacation. This is an example of which type of decision?
A) Programmed
B) Groupthink
C) Nonprogrammed
D) Intuition

Accepted Answer

Programmed decision making is a routine, virtually automatic process. Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur. This is a programmed decision because a rule has been established to be applied when a certain situation occurs.

Question 10

Martin, a plant foreman, asks the plant superintendent to allow him to hire an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?
A) Intuition
B) Groupthink
C) Satisficing
D) Programmed

Accepted Answer

Programmed decision making is a routine, virtually automatic process. Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 11

Entrepreneurs are likely to be high on the personality trait of openness to experience.

Accepted Answer

Entrepreneurs are likely to be high on the personality trait of openness to experience, meaning they are predisposed to be original, to be open to a wide range of stimuli, to be daring, and to take risks.

Question 12

Karen, a manager, orders raw materials when the raw materials inventory reaches a certain point. This is an example of which type of decision?
A) Intuition
B) Satisficing
C) Nonprogrammed
D) Programmed

Accepted Answer

Programmed decision making is a routine, virtually automatic process. Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 13

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Accepted Answer

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Question 14

The first step in decision making that a manager needs to take is generate a set of feasible alternative courses of action in response to the opportunity or threat.

Accepted Answer

The first step in the decision-making process is to recognize the need for a decision.

Question 15

When a manager chooses an acceptable alternative instead of the optimum alternative, we say that a satisficing decision has occurred.

Accepted Answer

When managers satisfice, they search for and choose acceptable, or satisfactory, ways to respond to problems and opportunities rather than trying to make the optimal decision.

Question 16

When a member of a group challenges the decision that is being made by the group in an attempt to make the group carefully consider the pros and cons of a particular alternative, this member is playing the role of the devil's advocate.

Accepted Answer

Typically one member of the decision-making group plays the role of devil's advocate. The devil's advocate critiques and challenges the way the group evaluated alternatives and chose one over the others. The purpose of devil's advocacy is to identify all the reasons that might make the preferred alternative unacceptable after all.

Question 17

When an organization's accounting department decides to send out a bill to a new customer, this represents a(n) _____ decision.
A) programmed
B) nonprogrammed
C) intuitive
D) groupthink

Accepted Answer

Programmed decision making is a routine, virtually automatic process. Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 18

Entrepreneurship encompasses all the decisions involved in planning, organizing, leading, and controlling resources.

Accepted Answer

Entrepreneurship is not the same as management. Management encompasses all the decisions involved in planning, organizing, leading, and controlling resources. Entrepreneurship is noticing an opportunity to satisfy a customer need and then deciding how to find and use resources to make a product that satisfies that need.

Question 19

Decisions that have been made many times in the past and for which managers have rules and guidelines about how to make similar decisions in the future are known as ________ decisions.
A) nonprogrammed
B) heuristic
C) programmed
D) intuitive

Accepted Answer

Programmed decision making is a routine, virtually automatic process. Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 20

The nominal group technique is especially useful when an issue is not controversial and when different managers are expected to champion a similar course of action.

Accepted Answer

The nominal group technique is especially useful when an issue is controversial and when different managers might be expected to champion different courses of action.

Quiz 5: Decision Making, Learning, Creativity, and Entrepreneurship

Delphi technique is a written approach to creative problem solving.

In the decision-making process, to compare what actually happened to what was expected to happen as a result of the decision is a procedure of choosing among alternatives.

Individuals who believe that they are responsible for what happens to them and that their own actions determine important outcomes are said to have an external locus of control.

The final step in the decision-making process is the implementation of the alternative solution.

The classical decision-making model assumes that managers have all of the information they need in order to make the optimum decision.

Product champions are a group of intrapreneurs who are deliberately separated from the normal operation of an organization to encourage them to devote all their attention to developing new products.

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.

Rationalization is a critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented.

A manager of a charity asks the board of directors for permission to hire temporary help when the regular secretary goes on vacation. This is an example of which type of decision?

Martin, a plant foreman, asks the plant superintendent to allow him to hire an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?

Entrepreneurs are likely to be high on the personality trait of openness to experience.

Karen, a manager, orders raw materials when the raw materials inventory reaches a certain point. This is an example of which type of decision?

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

The first step in decision making that a manager needs to take is generate a set of feasible alternative courses of action in response to the opportunity or threat.

When a manager chooses an acceptable alternative instead of the optimum alternative, we say that a satisficing decision has occurred.

When a member of a group challenges the decision that is being made by the group in an attempt to make the group carefully consider the pros and cons of a particular alternative, this member is playing the role of the devil's advocate.

When an organization's accounting department decides to send out a bill to a new customer, this represents a(n) _____ decision.

Entrepreneurship encompasses all the decisions involved in planning, organizing, leading, and controlling resources.

Decisions that have been made many times in the past and for which managers have rules and guidelines about how to make similar decisions in the future are known as ________ decisions.

The nominal group technique is especially useful when an issue is not controversial and when different managers are expected to champion a similar course of action.