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1. Highly reliable organizations (HROs) are easily tricked by their success.(2.0) B.False 2.

The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.(2.0) A.True 3. Decision making is a part of the planning, organizing, leading, and controlling functions and thus, the essence of management.(2.0) A.True 4. Managers need to understand cultural differences to make effective decisions in today's fast-moving world.(2.0) A.True 5. The availability bias describes the actions of decision makers who try to create meaning out of random events.(2.0) B.False 6. The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.(2.0) A.True 7. A decision criterion defines what is important or relevant to resolving a problem.(2.0) A.True 8. The decision-making process begins by identifying decision criteria.(2.0) B.False 9. Nonprogrammed decision making relies on procedures, rules, and policies.(2.0) B.False 10. A policy is an explicit statement that tells a manager what can or cannot be done.(2.0) B.False 11. To make effective decisions in today's fast-moving world, managers need to ________.(2.0) B.B) know when it is time to call it quits 12. Pat is the manager of a large project that has been underway for the last eight months. It has now become apparent that, due to various external factors, the project is unlikely to succeed. Even though the best option would be to withdraw from the project, Pat continues to pump money and resources

(2. Though the candidate possessed the necessary qualifications and effectively answered all her questions. they are exhibiting the ________.0) B. maximize . When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance. During a particular interview.0) D. once set. He reasons that he doesn't want all those months of hard work to go to waste. This is an example of the ________. When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments.into it in the hope that the project's prospects will change. rather than ________. fail to adequately adjust for subsequent information. Sarah's sales figure show that she has been the top performer in her department for the last eight months.D) overconfidence bias 19.D) programmed decisions 21.(2. Sophie rejected him.0) D.(2. The ________ describes how decision makers fixate on initial information as a starting point and then.0) A.(2. the first thing Sophie noticed about the applicant was that he was improperly attired.0) C. The ________ occurs when decision makers select and highlight certain aspects of a situation while excluding others.0) D.0) A.0) C. Sophie is in charge of recruitment at her company. All of the following are aspects of intuition EXCEPT ________.C) sunk costs error 13.A) framing bias 15. they tend to ________.(2.C) anchoring effect 17.(2.D) satisfice. Managers cannot possibly analyze all information on all alternatives. Sarah's sales numbers fell due to her ill health causing her manager to rate her performance as just satisfactory.0) D.0) A. they are exhibiting the ________. This is an example of the ________.(2. Rules of thumb that managers use to simplify decision making are known as ________.(2.(2.(2.B) availability bias 14. This is an example of the ________. Two month prior to her annual performance review.D) confirmation bias 16.A) heuristics 20.A) anchoring effect 18.

0) D. is looking for a new job.C) are accompanied by ambiguous or incomplete information 30.(2.0) C.(2. religion. disability.0) C.C) pessimist 28.C) implementing an alternative 23. race. color. these represent Amanda's ________. marital status. national origin. a single parent. the decision-maker must then _________. Considering that she has two school-going children. ________ is a situation in which a decision maker cannot make reasonable probability estimates. 26. What is the psychological orientation of a decision maker who makes a "maximin" choice?(2. In the decision-making process. In terms of the decision-making process. she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting.0) D. the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it.(2.D) We are an equal opportunity employer with a diverse workforce.0) C. All applications will be approved/rejected within two days by the employee's immediate supervisor. We do not discriminate against employees and applicants on the basis of sex. A policy_______ .(2. In the decision-making process. Unstructured problems ________. ________ is a situation where a manager has the ability to make accurate decisions because the outcome of every alternative is known.A) Certainty 29.C) Uncertainty 27. sexual orientation or veteran status. age.(2. 32. after allocating weights to the decision criteria.0) A. Which of the following statements is true concerning problem identification?(2.(2. 31.0) B. fill up the application form available on the company's online leave management system.A) decision criteria 25.D) Effectively identifying problems is not easy. while ________.22. Amanda.0) C.0) A.B) Before going on a leave of absence. Which of the following is an example of a policy?(2. Which of the following is an example of a procedure?(2.0) A.A) list viable alternatives that could resolve the problem 24.

When a customer calls and requests a refund for a partial month's usage of the cable service. would indicate the presence of self-serving bias on the part of the manager?(5. Structured problems align well with which type of decisions?(2. Which of the following statements. if true. Following relegation. ________ are straightforward.(2.The manager blames the board for selling the top scorer and replacing him with below-par players.0) B. the club. a now out-of-form. A procedure ________. the fact that such situations are routine and most likely have a standard response would make the response a ________ decision.0) B.0) A. and how to handle the increasing customer complaints. Newcastle United. was relegated from the top flight two seasons ago. The car is in need of several repairs before she will feel comfortable driving it.(2.The board buys. a series of interrelated sequential steps for responding to a structured problem. Andy Carroll back from Liverpool at a much higher price in the hopes of reversing the team's form.(5. sold Andy Carroll to Liverpool soccer club to buy three average players.0) C.0) A. such as how to price each market. However. 37. best reflects sunk cost error on the part of the board? (5. The club won back promotion to the league and enjoyed a good season. the star player for Newcastle. Colleen is a student.B) Structured problems 36. whom to hire. She needed some help sorting these issues out. a soccer club.0) C.(5.A) programmed 35.A. Which of the following statements. was the top scorer in the league for that season. programmed Usually Sharon follows a ________. needing to strengthen the team by buying new players. The club is presently experiencing a dip in form and is in danger of being relegated again.A) typically contains an ambiguous term 33. the club's board sacked the manager and hired a new manager to replace him. She faced many problems and decisions daily. and her older brother has loaned her an old car. Sharon was the regional manager of a large cable television company. and easily defined.B) is a series of sequential steps a manager uses to respond to a structured problem 34. if true. .procedure 38. what kind of technology to purchase.0) D. Andy Carroll. familiar.

nonprogrammed decision making 42. Creativity is most essential in which of the following steps of the decision-making process? developing alternatives 47. but are limited by their ability to process information True 40. In the decision-making process. after allocating weights to the decision criteria. This step in the decision-making process is called ________.(5. Which of the following best describes the psychological orientation of an individual making a "maximax" choice? Optimist 43. When problems are ________. managers make decisions rationally.The ________ happens when decisions makers tend to remember events that are the most recent and vivid in their memory. use data from their subconscious mind to help make their decisions 46.0) C. Intuitive decision making complements rational decision making but not bounded rational decision making. The sunk costs error occurs when decision makers forget that current choices cannot correct the past. managers ________. Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes. but she has to decide if the vehicle is worth repairing. According to the concept of bounded rationality. managers must rely on ________ in order to develop unique solutions. Her first concern is safety of the vehicle. (5. unstructured. True 48. She is facing a(n) ________ that is a discrepancy between an existing and a desired state of affairs. True 44. problem Before talking to a repair person. True 45. the decision maker lists viable alternatives that could resolve the problem. False 41. In intuitive decision making. Colleen needs to prioritize the repairs.Colleen needs a vehicle. Availability bias . identifying the decision criteria 39.0) C.

The problem is unique and is unlikely to occur again. she can ask her colleague to chip in. Nonprogrammed 59. Being pressed for time. ________ results in a solution that is considered "good enough. "Smoking and the consumption of alcohol are strictly prohibited inside the work premises. they are following the concept of ________. Escalation of commitment refers to ________ an increased commitment to a previous decision despite evidence that it may have been wrong 51. Max is planning on going away to college next year and is currently trying to figure out which colleges he should apply to. but is also looking for a university that offers financial aid.49. If an individual knows the price of three similar cars at different dealerships. This problem is ________ in nature. Sue identifies three courses of action that could help her accomplish her task-she can stretch her working hours till she finishes the report. or she could ask her manager for additional time. False 57. A(n) ________ decision is a repetitive decision that can be handled by a routine approach. Implementing an alternative refers to the process of choosing the best alternative. . After identifying a problem." This is most likely an example of a(n) ________. When managers make decisions that are rational but limited by their ability to process the information. He would like to major in English Literature at an accredited liberal arts college. the next step in the decision-making process is ________ identifying decision criteria 55. he is operating under which of the following decision-making conditions? Certainty 54. Michelle eventually finds a problem that has no cut-and-dry solution. these represent Max's ________. Programmed 53." Satisficing 52. Which stage is Sue at in the decision-making process? Developing alternatives 56. In terms of the decision-making process. decision criteria 50. Rule 58. Sue works in the finance department of a large multinational corporation. Her manager has asked her to submit a detailed report on the department's quarterly expenses within the next two days. Managing Your Career (Scenario) Michelle has a new job and is learning to perform the tasks assigned to her. Different situations demand different decision-making processes.

Bounded rationally 60. False . the decision-making process 61. Rules and policies are the same. A series of eight steps that begins with identifying a problem and concludes with evaluating a decision's effectiveness is known as ________.