Question 1

The type of decision that can be made by following a definite procedure is called a(n) ________ decision.

Accepted Answer

A structured decision is one that has a clear and definite procedure for making the decision. This type of decision can be made using predetermined criteria or a set of rules, making it easier to automate or streamline the decision-making process. Examples include routine tasks such as order processing, inventory management, or scheduling. Therefore, the best choice is E, structured.

Question 2

Deciding whether to introduce a new product line is an example of a(n):

Accepted Answer

Introducing a new product line involves complex considerations and lacks a clear procedure, making it an unstructured decision.

Question 3

Why does improving a small value, routine decision have business value for a company?

Accepted Answer

C

Question 4

Operational management typically makes which type of decisions?

Accepted Answer

Operational management typically makes structured decisions, which are routine and repetitive, often involving clear procedures and guidelines.

Question 5

Which phase of decision making finds or recognizes a problem?

Accepted Answer

The Intelligence phase of decision making involves identifying and recognizing problems or opportunities, setting objectives, and defining the scope of the problem. This phase is crucial for understanding what needs to be addressed before moving on to designing solutions.

Question 6

A bank's decision to give a customer a mortgage is an example of an unstructured decision.

Accepted Answer

A bank's decision to give a customer a mortgage is a structured decision because it follows a set of predefined criteria and rules.

Question 7

A coherent decision is one that can be rationally explained to others.

Accepted Answer

A coherent decision is one that is based on logical reasoning and can be explained in a clear and consistent manner. When a decision is rationally explained to others, it demonstrates that the decision-maker has carefully considered the facts and relevant issues before arriving at a conclusion. This can help to build trust and confidence in their decision-making abilities.

Question 8

Where there is no well-understood or agreed-on procedure for making a decision, it is said to be:

Accepted Answer

The term "unstructured" refers to situations where there is no clear or established process for making a decision. This can lead to ambiguity and uncertainty, making it difficult to reach an effective conclusion.

Question 9

Which types of decisions are more prevalent at lower organizational levels?

Accepted Answer

Structured decisions are more prevalent at lower organizational levels because they are routine, repetitive, and often have clear procedures or guidelines to follow.

Question 10

In high-velocity automated decision making, humans are eliminated from the decision chain.

Accepted Answer

In high-velocity automated decision making, the goal is to make decisions quickly and efficiently, without human intervention. This means that humans are eliminated from the decision chain in order to speed up the process.

Question 11

Which dimension of quality means that a decision faithfully reflects the concerns and interests of affected parties?

Accepted Answer

Fairness in the context of decision quality means that the decision-making process and its outcome consider and reflect the concerns, interests, and perspectives of all affected parties equitably. This ensures that no party is unduly favored or disadvantaged by the decision.

Question 12

Which of the following is an example of a high-velocity automated decision process?

Accepted Answer

Providing online search results involves a high-velocity automated decision process as it requires quick and accurate processing of large amounts of data to generate relevant search results in real-time for the user. Strategic decision making involves a slower decision-making process and credit granting decisions may require human intervention and evaluation. Discovering and identifying the nature of a decision problem is a manual process that is not automated.

Question 13

You are the CIO at an insurance firm and a manager has proposed implementing expensive new project management software that would help increase the efficiency of the IT staff. The idea of improved efficiency sounds good, but is there any way you can evaluate her decision before purchasing the software? Be specific.

Accepted Answer

The answer of You are the CIO at an insurance...

Question 14

Which of the following is a typical middle management decision?

Accepted Answer

Middle management typically focuses on operational decisions and monitoring performance, such as analyzing sales data in specific markets, rather than making strategic decisions like closing factories or entering new markets.

Question 15

Which dimension of quality means that a decision should reflect a rational process?

Accepted Answer

Coherence refers to the dimension of quality that means a decision should reflect a rational process. It refers to the logical consistency of the decision-making process and the reasons given for the decision.

Question 16

A decision can be said to have improved if it is made by more than one manager.

Accepted Answer

The quality of a decision is not solely determined by the number of managers involved, but by factors such as the decision-making process, the information used, and the context in which the decision is made.

Question 17

________ decisions are most common at higher levels of management.

Accepted Answer

Unstructured decisions are those that occur in situations where there is uncertainty and ambiguity. Such decisions often require judgment, evaluation, and intuition. These types of decisions are most common at higher levels of management, where executives must make strategic choices that impact the future direction of the organization. Structured decisions, on the other hand, are those that have a clear and well-defined procedure for making the choice. Semi-structured decisions fall somewhere in between, where some aspects of the decision-making process are structured, but others are not. Undocumented decisions are those that are made without any record or documentation, which can lead to problems down the line. Procedural decisions rely on established processes and procedures to guide the decision-making process.

Question 18

The use of high-velocity automated decision making eliminates the risk inherent in human decision making.

Accepted Answer

While high-velocity automated decision making can reduce certain risks, such as errors due to fatigue or bias, it can also introduce new risks, such as errors due to data quality or programming mistakes. Additionally, some decisions may require human input or ethical considerations that cannot be handled by automated systems alone.

Question 19

Finding out why orders are not being filled on time at a distribution center is what kind of decision scenario?

Accepted Answer

This is a semi-structured decision scenario because while there is a clear problem to solve (orders not being filled on time), the solution may not be immediately obvious and will require some analysis and decision-making.

Question 20

You are answering phones for a local utilities provider and are speaking with an extremely angry customer. Because your company manual advises employees to transfer hostile calls to a superior, you do this. What quality dimension of decisions does your action reflect?

Accepted Answer

The action of transferring the angry customer to a superior reflects the quality dimension of due process, which involves following established policies and procedures to ensure a fair and just outcome. The company manual advises employees to transfer hostile calls to a superior, indicating that this is a standard procedure that is in place to handle such situations. By following this procedure, the employee is ensuring that the customer's complaint is being addressed by someone who is better equipped to handle it, while also protecting themselves and the company from potential conflict or liability.

Quiz 11: Improving Decision Making and Managing Knowledge