Question 1

Continuing on a course of action even though it is not working is called a(n) __________.*
A) escalating commitment
B) framing error
C) anchoring heuristic
D) availability heuristic

Accepted Answer

Escalating commitment is the tendency to continue investing in a course of action even though it is not producing the desired results. This can occur because of a desire to justify past investments, a fear of admitting failure, or a belief that things will improve if given more time or resources. Framing error, anchoring heuristic, and availability heuristic are cognitive biases that can impact decision-making in different ways, but they do not specifically refer to the phenomenon of continuing a failed course of action.

Question 2

Once the decision is made, the role of the manager in the decision-making process is over.

Accepted Answer

The role of the manager continues even after the decision is made, as they are responsible for implementing and monitoring the chosen course of action. They may also need to make adjustments if the decision does not lead to the desired outcomes.

Question 3

When generating alternative courses of action, extensive information gathering should identify alternative courses of action as well as their anticipated consequences.

Accepted Answer

Extensive information gathering is crucial in identifying alternative courses of action, as well as their anticipated consequences. Without sufficient information, it may be difficult to generate and evaluate potential options, making it more challenging to make informed decisions.

Question 4

In the second step of the decision-making process, the various options are compared.

Accepted Answer

In the second step of the decision-making process, the decision-maker identifies and lists all possible options or alternatives, rather than comparing them. Comparison typically occurs in later steps after all options have been identified.

Question 5

Intuitive thinking is less valuable and practical than systematic thinking.

Accepted Answer

Intuitive thinking can be valuable in certain situations where quick decision making is required based on past experiences and gut feelings. However, in many cases where accuracy and precision are necessary, systematic thinking is more valuable as it involves a methodical and structured approach to problem-solving. It allows for thorough analysis, consideration of multiple perspectives, and identification of potential flaws and consequences. Therefore, systematic thinking tends to lead to more practical and effective outcomes than intuitive thinking.

Question 6

According to the book The Shallows, author Nicolas Carr argues that the Internet may have lightened our thinking by replacing deep thought and reflection with shallow-minded pursuits.

Accepted Answer

Nicolas Carr argues throughout the book that the Internet may be impacting our ability to think deeply, read attentively, and concentrate for extended periods of time. He suggests that the constant distractions and interruptions of the online world promote a more superficial mode of thinking that can hinder our ability to think deeply and creatively.

Question 7

The problem with the classical decision model is that it does not take into account the cognitive limitations that we, as humans, have.

Accepted Answer

The classical decision model assumes that individuals have perfect rationality and unlimited cognitive resources, which is not true in reality. We have cognitive limitations like bounded rationality, limited attention, and memory constraints, which affect our decision-making processes.

Question 8

Not all decisions are going to be easy ones; some will have to be made under tough conditions; and, not all decisions will turn out right.

Accepted Answer

This statement is true. It is unrealistic to expect that all decisions will be easy or lead to positive outcomes. In fact, sometimes the toughest decisions have to be made in order to address difficult situations or achieve long-term goals. Even the most experienced and skilled decision-makers will inevitably face challenges and make mistakes.

Question 9

Managers who are problem solvers will make decisions and try to solve problems when required.

Accepted Answer

This statement is true. Managers who are problem solvers will take a proactive approach to addressing issues and will work to find solutions as needed.

Question 10

Which of the following is NOT one of the drivers of personal creativity?
A) Task expertise
B) Task motivation
C) Subjective experience
D) Creativity skills

Accepted Answer

Subjective experience is actually one of the drivers of personal creativity, as it involves one's individual perspective and interpretation of a situation. Task expertise, task motivation, and creativity skills are all important drivers of personal creativity.

Question 11

The generation of a novel idea or approach that solves a problem or identifies an opportunity is called __________
A) problem solving
B) representative thinking
C) creativity
D) availability heuristic

Accepted Answer

The generation of a novel idea or approach signifies creativity. Option A is a method that includes identifying, analyzing, and resolving an issue, but it may not always result in a creative solution. Option B refers to making judgments or assumptions based on prior examples or prototypes, which may not always yield creative ideas. The availability heuristic (Option D) is a mental shortcut that involves making assumptions based on easily accessible information, which is not related to generating new ideas or approaches.

Question 12

Step one in the decision-making process is where the problem or opportunity is identified and defined.

Accepted Answer

This is true. Step one involves recognizing a situation that requires a decision or action, and then clearly defining what that situation is.

Question 13

When an individual moves in management ranks, the level of certainty in a problem environment tends to increase.

Accepted Answer

As individuals move up in management ranks, they often face more complex and ambiguous situations, leading to a decrease in the level of certainty in their problem environment.

Question 14

Attending only to information that confirms a decision already made is called a(n) __________.*
A) escalating commitment
B) framing error
C) anchoring heuristic
D) confirmation error

Accepted Answer

Attending only to information that confirms a decision already made is called a confirmation error or confirmation bias. Escalating commitment refers to the tendency to continue investing in a decision even when it is no longer rational; framing error is a cognitive bias where people react differently to choices based on how they are presented; and anchoring heuristic is a cognitive bias where people rely too much on the first piece of information they receive when making decisions.

Question 15

A group-based decision would be called for in all of the following cases, EXCEPT if:*
A) the problem is complex, and you need a lot of information.
B) the problem calls for a creative solution.
C) the problem solution needs the support of a lot of people in order to work.
D) the problem needs a quick solution.

Accepted Answer

Group-based decisions are best suited for complex problems that require a lot of information and creative solutions that need the buy-in of a lot of people to work. However, group-based decisions can be time-consuming, so they are not ideal for problems that need a quick solution. Therefore, the only option here that does not require a group-based decision is D, which calls for a quick solution.

Question 16

The __________heuristic occurs when people use a stereotype to assess the likely occurrence of an event.*
A) escalating commitment
B) representativeness
C) anchoring and adjustment
D) availability

Accepted Answer

The representativeness heuristic is when people use a stereotype or prototype to judge the likelihood of a particular event or outcome. They make judgments based on how well the event represents or matches their mental prototype, rather than on statistical or other objective data.

Question 17

Solving a problem based on your perception of the situation, positive or negative is known as a(n) __________.
A) availability heuristic
B) programmed decision
C) framing error
D) representative heuristic

Accepted Answer

Solving a problem based on your perception of the situation, whether it is positive or negative, is known as framing error. This error occurs when you allow your perspective to influence your decision-making process. The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic. Programmed decision-making involves following a predetermined set of rules or criteria to make a decision. The representative heuristic is a mental shortcut that involves categorizing an object or situation based on a pattern or stereotype.

Question 18

Sensation feelers prefer broad global issues. They are insightful and tend to avoid details, and uncomfortable with intangibles.

Accepted Answer

This statement is incorrect. Sensation feelers are actually more detail-oriented and practical, and may struggle with abstract or theoretical concepts. They may also be more comfortable with specific, tangible tasks rather than broad, global issues.

Question 19

Nonprogrammed decisions are used to create novel solutions for unique situations.

Accepted Answer

Nonprogrammed decisions are made in response to novel problems and they require managers to use their judgment, creativity, and critical thinking skills to reach a solution. These decisions are usually complex and unstructured as there is no pre-existing or routine procedure to rely on.

Question 20

The __________ heuristic occurs when people adjust a previously existing value to make a decision.*
A) escalating commitment
B) representativeness
C) anchoring and adjustment
D) availability

Accepted Answer

The anchoring and adjustment heuristic involves adjusting a previously existing value to make a decision. This is often seen when people rely too heavily on the first piece of information they receive (the anchor) and then make incremental adjustments from there.

Quiz 4: Managers As Decision Makers: There Is No Substitute for a Good Decision

Continuing on a course of action even though it is not working is called a(n) __________.*

Once the decision is made, the role of the manager in the decision-making process is over.

When generating alternative courses of action, extensive information gathering should identify alternative courses of action as well as their anticipated consequences.

In the second step of the decision-making process, the various options are compared.

Intuitive thinking is less valuable and practical than systematic thinking.

According to the book The Shallows, author Nicolas Carr argues that the Internet may have lightened our thinking by replacing deep thought and reflection with shallow-minded pursuits.

The problem with the classical decision model is that it does not take into account the cognitive limitations that we, as humans, have.

Not all decisions are going to be easy ones; some will have to be made under tough conditions; and, not all decisions will turn out right.

Managers who are problem solvers will make decisions and try to solve problems when required.

Which of the following is NOT one of the drivers of personal creativity?

The generation of a novel idea or approach that solves a problem or identifies an opportunity is called __________

Step one in the decision-making process is where the problem or opportunity is identified and defined.

When an individual moves in management ranks, the level of certainty in a problem environment tends to increase.

Attending only to information that confirms a decision already made is called a(n) __________.*

A group-based decision would be called for in all of the following cases, EXCEPT if:*

The __________heuristic occurs when people use a stereotype to assess the likely occurrence of an event.*

Solving a problem based on your perception of the situation, positive or negative is known as a(n) __________.

Sensation feelers prefer broad global issues. They are insightful and tend to avoid details, and uncomfortable with intangibles.

Nonprogrammed decisions are used to create novel solutions for unique situations.

The __________ heuristic occurs when people adjust a previously existing value to make a decision.*