Question 1

In the administrative model of decision making,when the number of possible alternatives to a decision is so large that the manager cannot possibly evaluate all of them before making a decision,which of the following has occurred?
A) Satisficing
B) Bounded rationality
C) Brainstorming
D) Devil's advocacy
E) Optimum decision making

Accepted Answer

March and Simon coined the term "bounded rationality" to describe the situation in which the number of alternatives a manager must identify is so great and the amount of information so vast that it is difficult for the manager to even come close to evaluating it all before making a decision.

Question 2

What do managers do to regulate routine activities?
A) They create a mission statement.
B) They establish rules and guidelines.
C) They create cross-functional teams.
D) They facilitate a strong organizational culture.
E) They train workers in the use of intuition.

Accepted Answer

Managers develop rules and guidelines to regulate all routine organizational activities.

Question 3

Action Co.is attempting to decide whether or not to launch a new $10 million advertising campaign for a product whose sales have been lagging well below the projected sales for the product.This represents which type of decision for the organization?
A) Groupthink
B) Intuitive
C) Programmed
D) Nonprogrammed
E) Satisficing

Accepted Answer

In nonprogrammed decision making,rules do not exist because the situation is unexpected or uncertain and managers lack the information they would need to develop rules to cover it.

Question 4

An organization's finance department decides to go to the company's usual bank and take out a loan because the company's revenues for the month are projected to be less than its expenses.What type of decision does this represent?
A) Intuition
B) Groupthink
C) Programmed
D) Nonprogrammed
E) Satisficing

Accepted Answer

Programmed decision making occurs when managers have the information they need to create rules that will guide decision making.

Question 5

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
E) bounded rationality

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 6

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
E) 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 7

The classical model of decision making specifies how decisions should be made by managers;this is a way of saying that this model of decision making is:
A) heuristic.
B) prescriptive.
C) incomplete.
D) intuitive.
E) satisficing.

Accepted Answer

The classical model is prescriptive,which means that it specifies how decisions should be made.Managers using the classical model make a series of simplifying assumptions about the nature of the decision-making process.

Question 8

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
E) Satisficing

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 9

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
E) Nonprogrammed

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 10

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
E) creative

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

Which of the following is a programmed decision?
A) How much to invest in a new product
B) Whether to expand into a new market
C) When to time a new advertising campaign
D) When to bill customers
E) Whether to buy another company

Accepted Answer

Examples of programmed decisions include decision making about how much inventory to hold,when to pay bills,when to bill customers,and when to order materials and supplies.All the other distracters are examples of nonprogrammed decisions.

Question 12

Star,Inc. ,is attempting to decide whether or not if it should change its manufacturing process to a new type of technology.This represents a(n)______________ decision.
A) programmed
B) nonprogrammed
C) groupthink
D) intuitive
E) satisficing

Accepted Answer

Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.Nonprogrammed decision making occurs when there are no ready-made decision rules that managers can apply to a situation.

Question 13

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 14

When fire chiefs manage firefighters battling hazardous,out-of-control fires,they frequently have to depend on their professional instincts to make on-the-spot decisions that will protect the lives of the firefighters and save the lives of others,control the fires,and preserve decisions made in emergency situations involving high ambiguity and rapidly changing conditions.This is an example of which of the following types of decision making?
A) Programmed
B) Routine
C) Groupthink
D) Intuition
E) Satisficing

Accepted Answer

Managers may rely on their intuition-feelings,beliefs,and hunches that come readily to mind,require little effort and information gathering,and result in on-the-spot decisions.Intuitive decisions are made when managers have to make nonprogrammed decisions.

Question 15

The idea behind the product champion role is that if intrapreneurs are isolated,they will become so intensely involved in a project that development time will be relatively brief and the quality of the final product will be enhanced.

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 is that if these people are isolated,they will become so intensely involved in a project that development time will be relatively brief and the quality of the final product will be enhanced.

Question 16

An organization that has been focusing on a target market located in the eastern part of the United States is attempting to decide whether to expand its sales to the West Coast of the United States.Which of the following types of decisions is being taken by the organization?
A) Intuition
B) Nonprogrammed
C) Groupthink
D) Satisficing
E) Programmed

Accepted Answer

In nonprogrammed decision making,rules do not exist because the situation is unexpected or uncertain and managers lack the information they would need to develop rules to cover it.

Question 17

The classical model of decision making assumes that:
A) the number of alternatives a manager must identify is so great that it is difficult for the manager to even come close to evaluating it all before making a decision.
B) managers have little information to use in making a decision.
C) managers have access to all the information they need to make the optimum decision.
D) managers have neither the time nor the money to search for all possible alternative solutions and evaluate all the potential consequences of those alternatives.
E) managers search for and choose acceptable,or satisfactory,ways to respond to problems and opportunities rather than trying to make the optimal decision.

Accepted Answer

The classical model assumes that 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 future consequences for the organization.

Question 18

Nonroutine decisions made in response to novel situations in business are known as ________________ decisions.
A) intuitive
B) creative
C) programmed
D) heuristic
E) nonprogrammed

Accepted Answer

Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.Nonprogrammed decision making occurs when there are no ready-made decision rules that managers can apply to a situation.

Question 19

Casey,the accountant for a small firm,pays the real estate taxes seven days before they are due.This represents which type of decision?
A) Satisficing
B) Programmed
C) Intuition
D) Nonprogrammed
E) 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.This is a programmed decision because a rule has been established to be applied when a certain situation occurs.

Question 20

Dynamic Explosives is trying to decide whether or not to launch a new product nationally.This represents a(n)________________ decision.
A) programmed
B) intuitive
C) groupthink
D) nonprogrammed
E) satisficing

Accepted Answer

Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.Nonprogrammed decision making occurs when there are no ready-made decision rules that managers can apply to a situation.

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

In the administrative model of decision making,when the number of possible alternatives to a decision is so large that the manager cannot possibly evaluate all of them before making a decision,which of the following has occurred?

What do managers do to regulate routine activities?

Action Co.is attempting to decide whether or not to launch a new $10 million advertising campaign for a product whose sales have been lagging well below the projected sales for the product.This represents which type of decision for the organization?

An organization's finance department decides to go to the company's usual bank and take out a loan because the company's revenues for the month are projected to be less than its expenses.What type of decision does this represent?

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

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

The classical model of decision making specifies how decisions should be made by managers;this is a way of saying that this model of decision making is:

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?

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.

Which of the following is a programmed decision?

Star,Inc. ,is attempting to decide whether or not if it should change its manufacturing process to a new type of technology.This represents a(n) ______________ 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 idea behind the product champion role is that if intrapreneurs are isolated,they will become so intensely involved in a project that development time will be relatively brief and the quality of the final product will be enhanced.

An organization that has been focusing on a target market located in the eastern part of the United States is attempting to decide whether to expand its sales to the West Coast of the United States.Which of the following types of decisions is being taken by the organization?

The classical model of decision making assumes that:

Nonroutine decisions made in response to novel situations in business are known as ________________ decisions.

Casey,the accountant for a small firm,pays the real estate taxes seven days before they are due.This represents which type of decision?

Dynamic Explosives is trying to decide whether or not to launch a new product nationally.This represents a(n) ________________ decision.