Fundamentals of Management 8th Edition Ricky Griffin Test Bank 1

Solution Manual for Fundamentals of Management 8th Edition by Ricky
Griffin ISBN 1285849043 9781285849041

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1. The process of choosing one alternative from among a set of alternatives is called _____.
a. rational ignorance
b. altruism
c. bounded rationality
d. decision making
e. groupthink
ANSWER: d
RATIONALE: Decision making is the act of choosing one alternative from among a set of alternatives.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Knowledge
NOTES: Digital Story: Engage
2. Which of the following statements is true about the decision-making process?

a. It exclusively applies to problem situations.
b. It requires that the nature of a particular situation be defined.
c. It seldom applies to situations that are positive.
d. It typically involves only one individual and seldom applies to groups.
e. It results in the generation of only one alternative.
ANSWER: b
RATIONALE: The decision-making process includes recognizing and defining the nature of a decision
situation, identifying alternatives, choosing the “best” alternative, and putting it into practice.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 100
KEYWORDS: Bloom's: Comprehension
NOTES: Digital Story: Connect
3. Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five
machines from different manufacturers. Ryan was engaged in _____.
a. decision making
b. optimizing
c. rationalizing
d. brainstorming
e. social loafing
ANSWER: a
RATIONALE: This scenario illustrates decision making. Decision making is the act of choosing one
alternative from among a set of alternatives.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 100
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
4. Which of the following statements is true about the process of decision making?
a. It ends when the decision situation has been defined.
b. It includes putting the chosen alternative to practice.
c. The first step in the process is to identify alternatives to a problem.
d. The process is said to be complete when a set of alternatives to a problem has been created.
e. In a business scenario, the decision-making process is always aimed at finding a way to increase profits.
ANSWER: b
RATIONALE: The decision-making process includes recognizing and defining the nature of a decision
situation, identifying alternatives, choosing the “best” alternative, and putting it into practice.
POINTS: 1
REFERENCES: p. 100
KEYWORDS: Bloom’s: Comprehension
5. A(n) _____ decision is a decision that is relatively structured or recurs with some frequency (or both).
a. custom-made
b. novel
c. unstructured
d. intuitive
e. programmed
ANSWER: e
RATIONALE: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both).
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
KEYWORDS: Bloom’s: Knowledge
6. Decisions regarding standard organizational transactions are most likely to be _____ decisions.
a. unstructured
b. infrequent
c. programmed
d. intuitive
e. irrational
ANSWER: c
RATIONALE: Many decisions regarding basic operating systems and procedures and standard
organizational transactions are programmed decisions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
7. Nutrimax Inc. sponsors a football championship in Oriel in August every year. The championship is organized by the
Oriel Football Association (OFA) to encourage new talent, and Nutrimax bears all the expenses incurred during the
championship. The Oriel regional manager of Nutrimax sends across a check to the OFA in July of each year in order for
them to prepare for the championship. The regional manager’s decision about when to send the check to OFA is a(n)
_____ decision.
a. programmed decision
b. unstructured decision
c. intuitive decision
d. contingency decision
e. satisficing decision
ANSWER: a
RATIONALE: The regional manager is making a programmed decision in this scenario. A programmed
decision is a decision that is relatively structured or recurs with some frequency (or both).
POINTS: 1
REFERENCES: p. 101
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
8. When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock
is almost empty, she's making a(n) _____ decision.
a. programmed
b. unstructured
c. intuitive
d. irrational
e. strategic
ANSWER: a
RATIONALE: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both).
POINTS: 1
REFERENCES: p. 101
KEYWORDS: Bloom's: Application
9. A nonprogrammed decision:
a. is relatively more frequent that programmed decisions.
b. is highly structured.
c. requires more time and resources than programmed decisions.
d. is typically regarding daily organizational transactions.
e. typically applies to basic operating systems and procedures.
ANSWER: c
RATIONALE: A nonprogrammed decision is a decision that is relatively unstructured and occurs less
frequently than a programmed decision. Managers faced with such decisions must treat each
one as unique, investing enormous amounts of time, energy, and resources into exploring the
situation from all perspectives.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: LO: MGMT.GRIF.16. 4-1 - 4-1
10. Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of
_____ decisions.
a. frequent
b. nonprogrammed
c. structured
d. operational
e. programmed
ANSWER: b
RATIONALE: Most of the decisions made by top managers involving strategy (including mergers,
acquisitions, and takeovers) and organization design are nonprogrammed.
POINTS: 1
REFERENCES: p. 101
11. Programmed decisions:

a. can only be made by the top management.
b. generally deal with long-term matters such as expanding business in another country.
c. lack structure.
d. recur more frequently than nonprogrammed decisions.
e. are typically made by shareholders.
ANSWER: d
RATIONALE: Programmed decisions are relatively structured or recur with some frequency (or both).
POINTS: 1
REFERENCES: p. 101
12. Venus Electronics Inc. decided to explore markets in different countries. It has now set up a branch in Selenasia. This
is an example of a(n) _____ decision.
a. structured
b. nonprogrammed
c. standard
d. programmed
e. operational
ANSWER: b
RATIONALE: This scenario illustrates a nonprogrammed decision. Nonprogrammed decisions are relatively
unstructured and occur less frequently than programmed decisions.
POINTS: 1
REFERENCES: p. 101
13. Which of the following illustrates a programmed decision?

a. A cafe owner buys a hundred cartons of coffee every month.
b. A fast food chain decides to enter into a new franchise agreement.
c. A content development company decides to sue a competitor for copyright infringement.
d. A health drink manufacturing company decides to launch a new product in the market.
e. An IT company decides to lay off a hundred employees.
ANSWER: a
RATIONALE: The cafe owner makes a programmed decision when he buys a hundred cartons of coffee
every month. Programmed decisions are relatively structured or recur with some frequency
(or both).
POINTS: 1
REFERENCES: p. 101
14. Which of the following statements is true in the context of decision making under a state of risk?
a. The decision maker clearly knows the alternatives.
b. The decision maker uses probability estimates to assess alternatives.
c. The decision maker is least likely to choose a bad alternative.
d. The decision maker has an accurate understanding of payoffs of all the alternatives.
e. The decision maker seldom considers his or her past experience while making the decision.
ANSWER: b
RATIONALE: A state of risk is a condition in which the availability of each alternative and its potential
payoffs and costs are all associated with probability estimates.
POINTS: 1
REFERENCES: p. 102
15. In decision making, a condition of _____ exists when a decision maker knows what the alternatives are and what
conditions are associated with each alternative.
a. risk
b. uncertainty
c. certainty
d. imperfect information
e. ambivalence
ANSWER: c
RATIONALE: When the decision maker knows with reasonable certainty what the alternatives are and what
conditions are associated with each alternative, a state of certainty exists.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 102
16. When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand
that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of
_____.
a. imperfect information
b. ambiguity
c. risk
d. certainty
e. unclear alternatives
ANSWER: d
RATIONALE: Irene is making a decision under a state of certainty.When the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative, a state of certainty exists.
POINTS: 1
REFERENCES: p. 102
17. When decision making is under a condition of uncertainty:

a. the alternatives are not known.
b. no ambiguity is involved.
c. errors are least likely to occur.
d. the consequences of solutions are known.
e. the decision situation is simple.
ANSWER: a
RATIONALE: Most of the major decision making in contemporary organizations is done under a state of
uncertainty, where the decision maker does not know all the alternatives, the risks associated
with each, or the likely consequences of each alternative.
POINTS: 1
REFERENCES: p. 103
18. Which of the following statements is true in the context of decision making under a condition of uncertainty?
a. A decision maker greatly relies on intuition, judgment, and experience.
b. A decision maker clearly knows all the risks associated with alternatives to a problem.
c. A decision maker puts in least effort and uses a pre-determined structure for decision making.
d. A decision maker is able to estimate the payoffs and risks associated with alternatives.
e. A decision maker identifies only two alternatives to the decision situation.
ANSWER: a
RATIONALE: Most of the major decision making in contemporary organizations is done under a state of
uncertainty, where the decision maker does not know all the alternatives, the risks associated
with each, or the likely consequences of each alternative. Intuition, judgment, and experience
always play major roles in the decision-making process under conditions of uncertainty.
POINTS: 1
REFERENCES: p. 103
19. Professor Campbell needs to recommend a biology textbook for his senior class. Only two well-known publishers,
Educate and WordTree, publish biology textbooks in the state, and both publishers are known for the clarity and
extensiveness of their content. When Campbell chooses a textbook from one of the two publishers, he is making a
decision in a state of _____.
a. certainty
b. irrationality
c. risk
d. imperfect information
e. ambiguity
ANSWER: a
RATIONALE: Campbell is making the decision in a state of certainty. When the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative, a state of certainty exists.
POINTS: 1
REFERENCES: p. 102
20. Managers are most prone to error in a condition of _____.

a. certainty
b. uncertainty
c. risk
d. rationality
e. perfect information
ANSWER: b
RATIONALE: Uncertainty is the most ambiguous condition for managers and the one in which they are
most prone to error.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 103
KEYWORDS: Bloom’s:Knowledge
21. When making a decision under a condition of risk:

a. the decision maker is relatively more likely to make errors.
b. the decision maker clearly knows the consequences of alternatives.
c. the decision maker needs to put in the least amount of time and resources.
d. the decision maker relies exclusively on information and not on experience or intuition.
e. the decision maker clearly knows the payoffs associated with the alternatives.
ANSWER: a
RATIONALE: When making decisions under a condition of risk, the decision maker is relatively more likely
to make errors. Under a state of risk, the availability of each alternative and its potential
payoffs and costs are all associated with probability estimates.
POINTS: 1
REFERENCES: p. 102
22. The _____ decision model is a prescriptive approach that tells managers how they should make decisions; it assumes
that managers are logical and rational and that their decisions will be in the organization’s best interests.
a. behavioral
b. classical
c. administrative
d. bureaucratic
e. probabilistic
ANSWER: b
RATIONALE: The classical decision model is a prescriptive approach that tells managers how they should
make decisions; it assumes that managers are logical and rational and that their decisions will
be in the organization’s best interests.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 104
TOPICS: Rational Perspectives on Decision Making
23. According to the classical decision model, managers:

a. evaluate all aspects of a decision situation logically and rationally.
b. are inefficient at eliminating uncertainty.
c. never have adequate information about decision situations.
d. never make errors even under uncertain conditions.
e. can never assess alternatives appropriately.
ANSWER: a
RATIONALE: The classical decision model is a prescriptive approach to decision making that tells
managers how they should make decisions; it assumes that managers are logical and rational
and that their decisions will be in the organization’s best interests.
POINTS: 1
REFERENCES: p. 104
24. The first step in rational decision making is _____.

a. identifying alternatives
b. implementing an alternative
c. selecting the best alternative
d. recognizing and defining the decision situation
e. evaluating alternatives
ANSWER: d
RATIONALE: Steps in rational decision making are as follows: recognize and define the decision situation;
identify appropriate alternatives; evaluate each alternative in terms of its feasibility,
satisfactoriness, and consequences; select the best alternative; implement the chosen
alternative; and follow up and evaluate the results of the chosen alternative.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 105
25. Tina works at a coffee shop. One of the four coffee machines at the coffee shop has not been functioning well; the
same machine has broken down thrice in two weeks. Now, Tina is looking at the machine and trying to decide if the
problem is a bad machine or if people are just using the machine wrong. Tina is currently _____.
a. implementing an alternative
b. evaluating the results of a chosen alternative
c. consulting with other decision makers
e. eliminating feasible alternatives
ANSWER: d
RATIONALE: Tina is currently in the first step of the rational decision-making model. The first step in
rational decision making is recognizing that a decision is necessary.
POINTS: 1
REFERENCES: p. 105
26. Libra Inc. chose to settle a lawsuit for $75 million. In the context of the rational decision-making model, when
executives of the company begin to compare the cost of the settlement to those of other financial institutions, they will be
_____.
a. developing a set of rational alternatives
b. evaluating the possible alternatives
c. consulting with other decision makers
e. following up and evaluating the results of a chosen alternative
ANSWER: e
RATIONALE: The final step of the rational decision-making model is illustrated in the scenario. The final
step in the decision-making process requires that managers evaluate the effectiveness of their
decision—that is, they should make sure that the chosen alternative has served its original
purpose.
POINTS: 1
REFERENCES: p. 109
27. After being laid off by their companies, many individuals recognized three options they could choose from before they
could secure new jobs: to spend less, to use savings, or to use credit. In the context of the steps involved in the rational
decision-making model, they were _____.
a. monitoring implementation
b. selecting the best alternative
c. identifying alternatives
d. implementing alternatives
e. evaluating decision effectiveness
ANSWER: c
RATIONALE: The laid-off employees were in the second step of the rational decision-making process. The
second step in the decision-making process is identifying appropriate alternatives. Once the
decision situation has been recognized and defined, the second step is to identify alternative
courses of effective action.
POINTS: 1
REFERENCES: p. 105
28. In general, while identifying alternatives, the more important the decision, _____.
a. the more alternatives should be generated
b. the lesser the time needed to make the decision
c. the lesser the chances of managers making the right decision
d. the more the tendency of managers to ignore intuitions
e. the lesser the chances of managers using expert opinion to make the decision
ANSWER: a
RATIONALE: In general, while identifying alternatives, the more important the decision, the more
alternatives should be generated.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 105
29. Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting
to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests
more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making
process is Christine in?
a. Identifying alternatives
b. Implementing an alternative
c. Defining the decision situation
d. Selecting the best alternative
e. Evaluating the decision effectiveness
ANSWER: a
RATIONALE: Christine is in the second step of the rational decision-making process. The second step in the
rational-decision making process is identifying alternatives. Once the decision situation has
been recognized and defined, the second step is to identify alternative courses of effective
action. Developing both obvious, standard alternatives and creative, innovative alternatives is
generally useful.
POINTS: 1
REFERENCES: p. 105
30. The rational decision-making process:

a. begins when a decision maker chooses the best solution.
b. involves the evaluation of different alternatives.
c. ends when alternatives have been identified.
d. does not include the implementation of an alternative.
e. ends when a decision situation has been defined.
ANSWER: b
RATIONALE: Evaluating alternatives is the third step in the rational decision-making process.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 107
31. Delta Corp. introduced a new set of policies, giving its employees more flexibility in work timings. This decision was
made in response to complaints from employees about fatigue. Which step of the rational decision-making process is
illustrated in the scenario?
a. Defining the situation
b. Evaluating the possible alternatives
c. Selecting the alternative
d. Implementing an alternative
e. Evaluating decision effectiveness
ANSWER: d
RATIONALE: Delta Corp. has implemented an alternative in the scenario. After an alternative has been
selected, the next step is to put it into effect.
POINTS: 1
REFERENCES: p. 108
32. When the prices of oil came down, the demand for sport utility vehicles (SUVs) increased. Automakers chose to
increase production of full-size SUVs as the profit from large vehicles is greater than that from small vehicles. Which step
in the rational decision-making model is illustrated in the scenario?
a. Developing a set of rational alternatives
b. Evaluating the possible alternatives
c. Selecting the best alternative and implementing it
d. Recognizing and defining the decision situation
e. Evaluating decision effectiveness
ANSWER: c
RATIONALE: Automakers are implementing an alternative in the scenario. After an alternative has been
selected, the next step is to put it into effect.
POINTS: 1
REFERENCES: p. 108
33. In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of
alternatives before choosing one?
a. Identifying alternatives
b. Implementing the chosen alternative
c. Defining the situation
d. Following up the implementation
e. Evaluating alternatives
ANSWER: e
RATIONALE: The third step in the decision-making process is evaluating each of the alternatives. Each
alternative should be evaluated in terms of its feasibility, satisfactoriness, and consequences.
The first question to ask is whether an alternative is feasible, i.e. if it is within the realm of
probability and practicality.
POINTS: 1
REFERENCES: p. 107
34. Peter was looking for alternatives to double his plant's production capacity, and he considered acquiring the
production plant of a rival company. The engineers in Peter's company advised him against it because acquiring the new
plant would only increase their company's production by 15 percent. Therefore, Peter's idea failed the test for _____ in the
context of the rational decision-making process.
a. feasibility
b. satisfactoriness
c. bounded rationality
d. satisficing
e. escalation of commitment
ANSWER: b
RATIONALE: Peter's idea failed the test for satisfactoriness. The third step in the rational decision-making
process is evaluating each of the alternatives. Each alternative should be evaluated in terms
of its feasibility, satisfactoriness, and consequences.
POINTS: 1
REFERENCES: p. 107
35. In the rational decision-making model, once the alternatives have been evaluated, the next step is to _____.
a. select the best alternative
b. implement the chosen alternative
c. evaluate the results of the chosen alternative
d. identify the available alternatives
e. define the decision situation
ANSWER: a
RATIONALE: In the rational decision-making model, once the alternatives have been evaluated, the next
step is to select the best alternative.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 108
36. An alternative should be eliminated during evaluation if:

a. it is supported by the most number of individuals.
b. it involves minimal costs.
c. it is found to have passed the satisfactoriness test.
d. it has several unaffordable consequences.
e. it requires minimal resources.
ANSWER: d
RATIONALE: While selecting the best alternative in rational decision making, the best practice is to choose
the alternative with the optimal combination of feasibility, satisfactoriness, and affordable
consequences.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 108
37. Which of the following statements is true in the context of selecting the best alternative?
a. The decision maker can only select one best alternative.
b. The decision maker can develop subjective estimates and weights for choosing an alternative.
c. The decision maker must choose the alternative that involves the most costs.
d. The decision maker must only stick to completely rational, mathematical analysis while selecting an
alternative.
e. The decision maker can choose an alternative that does not pass the consequence, satisfactoriness, and
feasibility test.
ANSWER: b
RATIONALE: One approach is to choose the alternative with the optimal combination of feasibility,
satisfactoriness, and affordable consequences. Even though most situations do not lend
themselves to objective, mathematical analysis, the manager can often develop subjective
estimates and weights for choosing an alternative.
POINTS: 1
REFERENCES: p. 108
38. In the rational decision-making process, optimization means:

a. identifying obvious, standard alternatives.
b. choosing the alternative with the best overall expected outcomes.
c. gathering the most complete information before making the decision.
d. developing the maximum number of creative, innovative alternatives.
e. choosing an alternative that is feasible even if it is not satisfactory or has undesirable consequences.
ANSWER: b
RATIONALE: Even though many alternatives fail to pass the triple tests of feasibility, satisfactoriness, and
affordable consequences, two or more alternatives may remain. Choosing the best of these is
the real crux of decision making. One approach is to choose the alternative with the optimal
combination of feasibility, satisfactoriness, and affordable consequences; this is known as
optimization.
POINTS: 1
REFERENCES: p. 108
39. The final step in the decision-making process requires that managers _____.
a. evaluate the results of the chosen alternative
b. select the best alternative
c. implement the chosen alternative
d. identify the available alternatives
e. define the decision situation
ANSWER: a
RATIONALE: The final step in the decision-making process requires that managers evaluate the
effectiveness of their decision—that is, they should make sure that the chosen alternative has
served its original purpose.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 109
40. A plant manager had taken a few measures to try to reduce worker turnover. For four months he monitored the
implementation of the measures. He now finds that the turnover rate is reduced by 10 percent. Which step of the rational
decision-making model is illustrated in the scenario?
a. Evaluating the results
b. Identifying alternatives
c. Recognizing the decision situation
d. Selecting the best alternative
e. Developing a set of alternatives
ANSWER: a
RATIONALE: The final step in the decision-making process requires that managers evaluate the
effectiveness of their decision—that is, they should make sure that the chosen alternative has
served its original purpose.
POINTS: 1
REFERENCES: p. 109
41. _____ is one of the factors that makes an alternative infeasible.

a. Decrease in expenditure
b. Increase in production capacity
c. Low costs
d. Increased satisfactoriness
e. Legal barriers
ANSWER: e
RATIONALE: While evaluating alternatives in the rational decision-making process, some alternatives may
not be feasible because of legal barriers. And limited human, material, and information
resources may make other alternatives impractical.
POINTS: 1
REFERENCES: p. 107
42. According to the evidence-based management approach, managers must _____.

a. discourage employees from telling the unpleasant truth
b. be committed to fact-based decision making
c. avoid experimentation
d. completely rely on the recommendations made by others
e. base decisions on untested but strongly held beliefs
ANSWER: b
RATIONALE: According to the evidence-based management approach, managers must be committed to
fact-based decision making—which means being committed to getting the best evidence and
using it to guide actions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 110
43. Which of the following statements is true about the administrative model of decision making?
a. It suggests that most managers make decisions rationally and logically.
b. It suggests that decisions that are based on instincts are better than the ones based on logic.
c. It suggests that managers tend to satisfice when making decisions.
d. It suggests that managers have the most accurate information about decision situations.
e. It suggests that managers should not make decisions based on mathematical analysis.
ANSWER: c
RATIONALE: The administrative decision-making model argues that decision makers (1) use incomplete
and imperfect information, (2) are constrained by bounded rationality, and (3) tend to
satisfice when making decisions.
POINTS: 1
REFERENCES: p. 111
TOPICS: Behavioral Aspects of Decision Making
44. Political forces, intuition and escalation of commitment, risk propensity, and ethics constitute the _____ aspects of
decision making.
a. rational
b. administrative
c. classical
d. behavioral
e. sequential
ANSWER: d
RATIONALE: Political forces, intuition and escalation of commitment, risk propensity, and ethics constitute
the behavioral aspects of decision making.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
45. _____ was one of the first experts to develop the administrative model of decision making.
a. Elton Mayo
b. George Bennett
c. Martin Johnson
d. Jack Welch
e. Herbert Simon
ANSWER: e
RATIONALE: Herbert A. Simon was one of the first experts to develop the administrative model of decision
making.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
46. The administrative model of decision making argues that decision makers _____ while making decisions.
a. use complete and perfect information
b. do not use intuition while making decisions
c. are constrained by bounded rationality
d. completely avoid escalation of commitment
e. use only instincts
ANSWER: c
RATIONALE: The administrative model holds that decision makers (1) use incomplete and imperfect
information, (2) are constrained by bounded rationality, and (3) tend to satisfice when
making decisions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
47. According to the administrative model, decision makers:

a. use incomplete and imperfect information.
b. are never constrained by bounded rationality.
c. tend to avoid satisficing when making decisions.
d. are not limited by their values and unconscious reflexes while making decisions.
e. always act in the best interests of their organizations.
ANSWER: a
RATIONALE: The administrative model is a decision-making model that argues that decision makers (1)
use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3)
tend to satisfice when making decisions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
48. _____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and
habits.
a. Satisficing
b. Escalation of commitment
c. Risk propensity
d. Groupthink
e. Bounded rationality
ANSWER: e
RATIONALE: Bounded rationality is a concept suggesting that decision makers are limited by their values
and unconscious reflexes, skills, and habits.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
49. Bounded rationality is assumed in the _____ model of decision making.

a. administrative
b. rational
c. classical
d. groupthink
e. irrational
ANSWER: a
RATIONALE: The administrative model of decision making assumes that decision makers are constrained
by bounded rationality.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
50. Which of the following statements is true about the administrative model of decision making?
a. It suggests that political forces do not exist in business scenarios.
b. It suggests that managers may not always make decisions that best serve the interests of their organizations.
c. It suggests that managers use a blend of subjective knowledge and analysis to choose the best alternative.
d. It suggests that decisions should only be made individually and not in groups.
e. It suggests that decisions made by groups are better than decisions made by individuals.
ANSWER: b
RATIONALE: The administrative model suggests that managers may not always make decisions that best
serve the interests of their organizations. The model holds that decision makers (1) use
incomplete and imperfect information, (2) are constrained by bounded rationality, and (3)
tend to satisfice when making decisions.
POINTS: 1
REFERENCES: p. 112
51. For his work in developing the administrative model to describe how managers make decisions in the real world,
Herbert Simon won the Nobel Prize in _____.
a. Medicine
b. Economics
c. Peace
d. Psychology
e. Management
ANSWER: b
RATIONALE: For his work in developing the administrative model to describe how managers make
decisions in the real world, Herbert Simon won the Nobel Prize in Economics.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 111
52. _____ is the tendency to search for alternatives only until one is found that meets some minimum standard of
sufficiency.
a. Satisficing
b. Groupthink
c. Optimization
d. Bounded rationality
e. Escalation of commitment
ANSWER: a
RATIONALE: Satisficing is the tendency to search for alternatives only until one is found that meets some
minimum standard of sufficiency.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 112
53. Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the
software that is required for her business. She does this because all her family members have used computers of the same
brand all their lives. This is an example of how decision makers are constrained by _____.
a. political forces
b. bounded rationality
c. Lucy’s high risk propensity
d. logic
e. organizational strategies
ANSWER: b
RATIONALE: This scenario illustrates bounded rationality. Bounded rationality is a concept suggesting that
decision makers are limited by their values and unconscious reflexes, skills, and habits.
POINTS: 1
REFERENCES: p. 111
54. Tim is the production manager at a steel factory. One of the steel processing machines in the factory has broken down
and has to be replaced. Tim decides to buy a new machine from a company that he has read reviews of in industry
magazines, even though there are other companies offering a discount on machines with better functionality. This is an
example of how managers are constrained by _____.
a. bounded rationality
b. escalation of commitment
c. risk propensity
d. groupthink
e. political forces
ANSWER: a
POINTS: 1
REFERENCES: p. 111
55. Mike is in a hurry to appoint a personal assistant to help him with scheduling his meetings with clients. He posts an
advertisement on a job website, and picks the first person who sends in her resume for the job. He only checks for the
candidate's qualification and does not consider her work experience. This is an example of _____.
a. rational decision making
b. classical decision making
c. satisficing
d. evidence-based management
e. optimizing
ANSWER: c
RATIONALE: Satisficing is illustrated in the scenario. Satisficing is the tendency to search for alternatives
only until one is found that meets some minimum standard of sufficiency.
POINTS: 1
REFERENCES: p. 112
56. Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her
department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most
familiar. This is an example of _____.
a. optimizing
b. bounded rationality
c. satisficing
d. synergy
e. escalation of commitment
ANSWER: b
POINTS: 1
REFERENCES: p. 111
57. _____ is one major element of organizational politics that is especially relevant to decision making.
a. Coalitions
b. Intuition
c. Escalation of commitment
d. Satisficing
e. Risk propensity
ANSWER: a
RATIONALE: Coalitions is one major element of organizational politics that is especially relevant to
decision making.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 112
58. Chelsea has been contemplating buying a red car. When she visits the used cars dealership, she looks at a red Ford
Hatchback and buys it even before checking for its technical specifications. Chelsea's decision is an example of _____.
a. optimization
b. escalation of commitment
c. an evidence-based decision
d. satisficing
e. a decision under uncertainty
ANSWER: d
RATIONALE: This scenario illustrates satisficing. Satisficing is the tendency to search for alternatives only
until one is found that meets some minimum standard of sufficiency.
POINTS: 1
REFERENCES: p. 112
59. _____ is an innate belief about something without conscious consideration.

a. Optimization
b. Intuition
c. Logic
d. Ethics
e. Risk propensity
ANSWER: b
RATIONALE: Intuition is an innate belief about something without conscious consideration.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 113
60. A marketing manager decides to launch a new product because it is the first product that came to his mind, even if
there are several better products to be explored. Which of the following is illustrated in the scenario?
a. Escalation of commitment
b. Rational decision making
c. Bounded rationality
d. Satisficing
e. Optimization
ANSWER: d
RATIONALE: This scenario illustrates satisficing. Satisficing is the tendency to search for alternatives only
until one is found that meets some minimum standard of sufficiency.
POINTS: 1
REFERENCES: p. 112
61. Eric is a manager who recently introduced a new process for screening potential employees. Eric has noticed that the
new screening process is not very efficient and is not helping recruiters find the best candidates. However, Eric continues
to use the same process because it was so expensive to set up the initial system. Which of the following concepts is
illustrated in the scenario?
a. Evidence-based decision making
c. Rational decision making
d. Optimization
e. Satisficing
ANSWER: b
RATIONALE: This scenario illustrates escalation of commitment. An important behavioral process that
influences decision making is escalation of commitment to a chosen course of action. In
particular, decision makers sometimes make decisions and then become so committed to the
courses of action suggested by those decisions that they stay with them, even when the
decisions appear to have been wrong.
POINTS: 1
REFERENCES: p. 113
62. Ryan Tools Company just acquired Coney Tools. The purchase came about because the employees in both the
research and development and the production departments at Ryan Tools joined forces to lobby for the purchase of Coney
Tools as opposed to other companies. Both departments wanted Coney Tools because of its state-of-the-art research and
production facilities. This is an example of _____.
a. satisficing
b. intuitive decision making
c. a dissection
d. escalation of commitment
e. a coalition
ANSWER: e
RATIONALE: This scenario illustrates a coalition. A coalition is an informal alliance of individuals or
groups formed to achieve a common goal.
POINTS: 1
REFERENCES: p. 112
63. William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions.
However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies
_____.
a. evidence-based management
b. rational decision making
c. escalation of commitment
d. rationality
e. satisficing
ANSWER: c
RATIONALE: This scenario illustrates escalation of commitment. Escalation of commitment is a behavioral
process in which a decision maker stays with a decision even when it appears to be wrong.
POINTS: 1
REFERENCES: p. 113
64. _____ is a behavioral process in which a decision maker stays with a decision even when it appears to be wrong.
a. Bounded optimization
c. Risk propensity
d. Strategic maximization
e. Intuitive rationality
ANSWER: b
RATIONALE: Escalation of commitment is a behavioral process in which a decision maker stays with a
decision even when it appears to be wrong.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 113
65. Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using
_____ in decision making.
a. satisficing
b. rationality
c. intuition
d. optimization
e. logic
ANSWER: c
RATIONALE: Intuition is an innate belief about something without conscious consideration.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 113
STATE STANDARDS: United States - AK - DISC: Group Dynamics
66. _____ is the extent to which a decision maker is willing to gamble when making a decision.
a. Risk propensity
b. Intuition
c. Optimization
d. Satisficing
e. Bounded rationality
ANSWER: a
RATIONALE: Risk propensity is the extent to which a decision maker is willing to gamble when making a
decision.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 115
67. Managers with higher levels of risk propensity are more likely than their conservative counterparts to:
a. adhere to the rational model and be extremely cautious about their decisions.
b. avoid mistakes and infrequently make decisions that lead to big losses.
c. rely heavily on intuition and gamble big investments on their decisions.
d. reach decisions slowly after a great amount of analysis.
e. display no aggression in decision making.
ANSWER: c
RATIONALE: Some managers are extremely aggressive in making decisions and are willing to take risks.
They rely heavily on intuition, reach decisions quickly, and often risk big investments on
their decisions. As in gambling, these managers are more likely than their conservative
counterparts to achieve big successes with their decisions; they are also more likely to incur
greater losses.
POINTS: 1
REFERENCES: p. 115
68. A manager who has a high level of risk propensity is likely to:
a. make decisions quickly.
b. avoid risks.
c. spend a lot of time evaluating alternatives.
d. be wary of making a wrong choice.
e. rely heavily on mathematical analysis.
ANSWER: a
RATIONALE: Managers with a high level of risk propensity rely heavily on intuition, reach decisions
quickly, and often risk big investments on their decisions. As in gambling, these managers
are more likely than their conservative counterparts to achieve big successes with their
decisions; they are also more likely to incur greater losses.
POINTS: 1
REFERENCES: p. 115
69. The nominal group decision-making technique:
a. involves maximum interaction among group members.
b. is used to generate creative and innovative ideas.
c. is a technique in which members are not brought together in a face-to-face setting.
d. always results in groupthink.
e. is a technique in which the manager lacks the authority to reject an alternative.
ANSWER: b
RATIONALE: Nominal group members are brought together in a face-to-face setting. The members
represent a group in name only, however; they do not talk to one another freely like the
members of interacting groups. This is a structured technique used to generate creative and
innovative alternatives or ideas.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 117
TOPICS: Group and Team Decision Making in Organizations
70. The Delphi group technique is a group decision-making technique in which:

a. the members are involved in extensive discussions with each other.
b. the opinions of group member are combined and averaged.
c. the daily operational problems of an organization are addressed.
d. the members are most likely to indulge in groupthink.
e. the members are most likely to be first-line employees belonging to the same department.
ANSWER: b
RATIONALE: A Delphi group is sometimes used to arrive at a consensus of expert opinion. Developed by
the Rand Corporation, the Delphi procedure solicits input from a panel of experts who
contribute individually. Their opinions are combined and, in effect, averaged.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 116
71. One advantage of group decision making is:

a. groupthink.
b. saved time.
c. more acceptance of the final decision.
d. lowered cost of decision making.
e. elimination of political forces.
ANSWER: c
RATIONALE: One advantage of a group decision is that more acceptance of the final decision is likely.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 117
72. A disadvantage of using interacting groups to make decisions is that:

a. it fosters political forces.
b. it discourages creativity.
c. it generates very few alternatives.
d. it involves more costs than all other group decision techniques.
e. it does not foster understanding between members.
ANSWER: a
RATIONALE: A major disadvantage of interacting groups is that political processes can play too big a role.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 116
73. Which of the following is true of interacting groups?

a. They are the least common decision-making groups.
b. They effectively eliminate the possibility of groupthink.
c. They can be regular work teams.
d. They provide little scope for new ideas.
e. They do not involve political forces.
ANSWER: c
RATIONALE: Interacting groups or teams are the most common decision-making group. The format is
simple—either an existing or a newly designated group or team is asked to make a decision.
Existing groups or teams might be functional departments, regular work teams, or standing
committees.
POINTS: 1
REFERENCES: p. 116
74. A(n) _____ is a form of group decision making in which a group arrives at a consensus of expert opinion.
a. interacting group
b. Delphi group
c. inactive group
d. unconventional group
e. unstructured group
ANSWER: b
RATIONALE: A Delphi group is a form of group decision making in which a group arrives at a consensus
of expert opinion.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 116
75. Macy Computers Inc. faced a major software error that brought all work in the company to a standstill. Roger, the
CEO, arranged for a panel of well-known engineers in the state to estimate the time that it would take for the error to be
set right. Each engineer made an estimate and sent it to the group’s leader, Dr. Rajesh. Dr. Rajesh averaged the estimates
and sent the average back out to the group. People who had submitted unusual estimates were asked to say why those
estimates were chosen. Roger used a(n) _____to help his company get rid of the software crisis.
a. interacting group
b. Delphi group
c. standing committee
d. work group
e. unstructured group
ANSWER: b
RATIONALE: A Delphi group has been used in the scenario. A Delphi group is a form of group decision
making in which a group arrives at a consensus of expert opinion.
POINTS: 1
REFERENCES: p. 116
76. When managers want to be sure to get innovative and creative ideas, they will often create a(n) ____ group..
a. judge-advisor system
b. coalition
c. advocacy group
d. nominal group
e. political group
ANSWER: d
RATIONALE: A nominal group is a structured technique used to generate creative and innovative
alternatives or ideas.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 117
77. A disadvantage of group decision making is that:

a. groupthink may occur.
b. generation of different opinions does not occur.
c. communication may be curbed.
d. knowledge available is always limited.
e. only a few alternatives are likely to be generated.
ANSWER: a
RATIONALE: Groupthink is a situation that occurs when a group or team’s desire for consensus and
cohesiveness overwhelms its desire to reach the best possible decision.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 118
78. _____ is a situation that occurs when a group or team’s desire for consensus and cohesiveness overwhelms its desire
to reach the best possible decision.
a. Groupthink
b. Groupshift
c. Brainstorming
d. Condorcet's paradox
e. Group polarization
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 118
79. Which of the following is true of nominal groups?

a. Innovative ideas are not generated in nominal groups.
b. Members of nominal groups are brought together in a face-to-face setting.
c. Members of nominal groups talk freely among themselves, argue, agree, form internal coalitions, and so forth.
d. Only one individual dominates a nominal group.
e. Nominal groups are most often used for forecasting technological breakthroughs.
ANSWER: b
RATIONALE: Unlike the Delphi method, in which group members do not see one another, nominal group
members are brought together in a face-to-face setting. The members represent a group in
name only, however; they do not talk to one another freely like the members of interacting
groups.
POINTS: 1
REFERENCES: p. 117
80. Which of the following disadvantages of group decisions typically results from the group being very cohesive?
a. Disagreement
b. Groupthink
c. Lower acceptance of the final decision
d. Minimal participation of members
e. Conflicts
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 118
81. Omega Inc., a large appliances company, went bankrupt because of a series of poor managerial decisions and a
downturn in the economy. In retrospect, it would seem that there was too much emphasis on the group reaching a
consensus decision whenever the managers were involved in decision making. As a result, many decisions by the
managers at Omega were made to avoid conflict. What disadvantage of group decision making does this scenario
represent?
a. Domination
b. Groupthink
c. Irrationality
d. Satisficing
e. Coalitions
ANSWER: b
RATIONALE: This scenario illustrates groupthink. Groupthink is a situation that occurs when a group or
team’s desire for consensus and cohesiveness overwhelms its desire to reach the best possible
decision.
POINTS: 1
REFERENCES: p. 118
82. Which of the following is an advantage of group decision making when compared to individual decision making?
a. The group process is less expensive.
b. Groupthink is avoided.
c. Less time is consumed.
d. More alternatives are likely to be generated.
e. Political forces are completely eliminated.
ANSWER: d
RATIONALE: One advantage of a group decision is that more alternatives are likely to be generated.
POINTS: 1
REFERENCES: p. 117
83. Groupthink:
a. results in more conflicts.
b. is most likely to occur in non-cohesive groups.
c. often leads to choosing a wrong alternative.
d. results in extensive brainstorming.
e. results in polarization.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 118
84. One disadvantage of group decision making is that:

a. very little information and knowledge are available.
b. one person may dominate the group.
c. fewer alternatives are generated.
d. it reduces the chances of acceptance of the final decision.
e. it prevents groupthink from developing.
ANSWER: b
RATIONALE: One disadvantage of group decision making is that one person may dominate the group.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 118
85. Which of the following helps a manager avoid groupthink during group decision making?
a. Assigning one person to act as devil's advocate
b. Making his or her preferences known to the group as early as possible
c. Instructing members to avoid expressing divergent viewpoints
d. Giving the group as much time as they need to make a decision, without enforcing a deadline
e. Encouraging group cohesiveness
ANSWER: a
RATIONALE: To avoid groupthink, each member of the group or team should critically evaluate all
alternatives. So that members present divergent viewpoints, the leader should not make his or
her position known too early. At least one member of the group or team might be assigned
the role of devil’s advocate.
POINTS: 1
REFERENCES: p. 118
86. Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative,
implementing it, and evaluating the results constitute the _____ process.
ANSWER: decision-making
RATIONALE: Steps in rational decision making are as follows: recognize and define the decision situation;
identify appropriate alternatives; evaluate each alternative in terms of its feasibility,
satisfactoriness, and consequences; select the best alternative; implement the chosen
alternative; and follow up and evaluate the results of the chosen alternative.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 100
87. U.S. Steel and the United Steelworkers announced an agreement for a 3-year contract. The agreement is an example of
a(n) _____ decision.
ANSWER: nonprogrammed
RATIONALE: The agreement is an example of a nonprogrammed decision. A nonprogrammed decision is a
decision that is relatively unstructured and occurs much less often than a programmed
decision.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
88. Sandra places orders for supplies for her bakery every month. This is an example of a(n) _____ decision.
ANSWER: programmed
RATIONALE: This is an example of a programmed decision. A programmed decision is a decision that is
relatively structured or recurs with some frequency (or both).
POINTS: 1
REFERENCES: p. 101
89. _____ decisions deal with unique situations that have never occurred before.
ANSWER: Nonprogrammed
RATIONALE: A nonprogrammed decision is a decision that is relatively unstructured and occurs less
frequently than a programmed decision.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
90. When managers are aware of all the alternatives in a decision-making situation and the conditions associated with
each alternative, they are said to be making the decision under a state of _____.
ANSWER: certainty
RATIONALE: When the decision maker knows with reasonable certainty what the alternatives are and what
conditions are associated with each alternative, a state of certainty exists.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 102
91. The model of decision making that is prescriptive and assumes that managers make rational and logical decisions is
called the _____ model.
ANSWER: classical
RATIONALE: The classical decision model is a prescriptive approach to decision making that tells
managers how they should make decisions; it assumes that managers are logical and rational
and that their decisions will be in the organization’s best interests.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 104
92. Behavioral aspects of decision making include political forces, _____, escalation of commitment, risk propensity, and
ethics.
ANSWER: intuition
RATIONALE: The behavioral aspects of decision making include political forces, intuition and escalation of
commitment, risk propensity, and ethics.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 113
93. A(n) _____ is an informal alliance formed to achieve a common goal.

ANSWER: coalition
RATIONALE: A coalition is an informal alliance of individuals or groups formed to achieve a common
goal.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 112
94. _____ is the extent to which a decision maker is willing to gamble when making a decision.
ANSWER: Risk propensity
RATIONALE: Risk propensity is the extent to which a decision maker is willing to gamble when making a
decision.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 115
95. A _____ is a form of group decision making in which a group arrives at a consensus of expert opinion.
ANSWER: Delphi group
RATIONALE: A Delphi group is a form of group decision making in which a group arrives at a consensus
of expert opinion.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 116
96. A(n) _____ is a decision-making group or team in which members openly discuss, argue about, and agree on the best
alternative.
ANSWER: interacting group
RATIONALE: An interacting group is a decision-making group or team in which members openly discuss,
argue about, and agree on the best alternative.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 116
97. Contrast programmed and nonprogrammed decisions.

ANSWER: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both). A nonprogrammed decision, on the other hand, is a decision that is
relatively unstructured and occurs less frequently than a programmed decision.
POINTS: 1
REFERENCES: p. 101
98. Define decision making, and discuss programmed and nonprogrammed decisions.
ANSWER: Decision making is the act of choosing one alternative from among a set of
alternatives. Programmed decisions are relatively structured or
recur with some frequency (or both). Nonprogrammed decisions, on the other hand, are
relatively unstructured and occur
less frequently than programmed decisions.
POINTS: 1
REFERENCES: p. 100-101
99. In evaluating a decision alternative, the decision maker should apply three criteria. Describe the three criteria that an
ideal alternative should satisfy.
ANSWER: The third step in the decision-making process is evaluating each of the alternatives. Each
alternative is evaluated in terms of its feasibility, satisfactoriness, and consequences. The first
question to ask is whether an alternative is feasible. Is it within the realm of probability and
practicality? When an alternative has passed the test of feasibility, it must next be examined
to see how well it satisfies the conditions of the decision situation. Finally, when an
alternative has proven both feasible and satisfactory, its probable consequences must still be
assessed.
POINTS: 1
REFERENCES: p. 107
100. Define interacting groups. State one advantage and disadvantage of using these groups in decision making.
ANSWER: An interacting group is a decision-making group or team in which members openly discuss,
argue about, and agree on the best alternative.
An advantage of this method is that the interaction among people often sparks new ideas and
promotes understanding.
A major disadvantage of interacting groups is that political processes can play too big a role.
POINTS: 1
Match the following numbered items with the most accurate options.
A response may be used once, more than once, or not at all.
a. Coalition
b. Intuition
c. Escalation of commitment
d. Risk propensity
e. Satisficing
TOPICS: Behavioral Perspectives on Decision Making
101. A Ponzi pyramid scheme that requires more and more investment to pay earlier investors
ANSWER: c
POINTS: 1
102. A gut feeling

ANSWER: b
POINTS: 1
103. Roll the dice

ANSWER: d
POINTS: 1
104. Office politics

ANSWER: a
POINTS: 1
105. An alternative with minimum standard of sufficiency

ANSWER: e
POINTS: 1
Match the following numbered items with the most correct response letter.
A response may be used once, more than once, or not at all.
a. Advantage of individual decision making
b. Disadvantage of individual decision making
c. Advantage of group decision making
d. Disadvantage of group decision making
e.
DIFFICULTY: Easy
United States - AK - DISC: Individual Dynamics
106. More alternatives are generated

ANSWER: c
POINTS: 1
107. Groupthink
ANSWER: d
POINTS: 1
108. Less knowledge and information are available

ANSWER: b
POINTS: 1
109. In a fast-paced world, decisions are made quickly

ANSWER: a
POINTS: 1
110. Undesirable compromises

ANSWER: d
POINTS: 1

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Solution Manual for Fundamentals of Management 8th Edition by Ricky

Griffin ISBN 1285849043 9781285849041

2. Which of the following statements is true about the decision-making process?

11. Programmed decisions:

13. Which of the following illustrates a programmed decision?

17. When decision making is under a condition of uncertainty:

20. Managers are most prone to error in a condition of _____.

21. When making a decision under a condition of risk:

23. According to the classical decision model, managers:

24. The first step in rational decision making is _____.

30. The rational decision-making process:

36. An alternative should be eliminated during evaluation if:

38. In the rational decision-making process, optimization means:

41. _____ is one of the factors that makes an alternative infeasible.

42. According to the evidence-based management approach, managers must _____.

47. According to the administrative model, decision makers:

49. Bounded rationality is assumed in the _____ model of decision making.

59. _____ is an innate belief about something without conscious consideration.

70. The Delphi group technique is a group decision-making technique in which:

71. One advantage of group decision making is:

72. A disadvantage of using interacting groups to make decisions is that:

73. Which of the following is true of interacting groups?

77. A disadvantage of group decision making is that:

79. Which of the following is true of nominal groups?

84. One disadvantage of group decision making is that:

93. A(n) _____ is an informal alliance formed to achieve a common goal.

97. Contrast programmed and nonprogrammed decisions.

102. A gut feeling

103. Roll the dice

104. Office politics

105. An alternative with minimum standard of sufficiency

106. More alternatives are generated

108. Less knowledge and information are available

109. In a fast-paced world, decisions are made quickly

110. Undesirable compromises

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