1.

__________ is a vital part of good management because decisions determine how the organization
solves its problems, allocates resources, and accomplishes goals.
a. Organizing
b. Competitive visioning
c. Proper alignment
d. Good decision making
e. Leadership

2. A __________ is a choice made from available alternatives.

a. decision
b. plan
c. goal
d. tactic
e. strategy

3. Mark, a production manager at Kaylie's Kookware, recently chose to schedule his workers to work
overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice.
This is an example of:
a. planning.
b. decision making.
c. organizing.
d. motivating.
e. leading.

4. __________ is the process of identifying problems and opportunities and then resolving them.
a. Organizing
b. Controlling
c. Decision making
d. Planning
e. Leading

5. __________ decisions are associated with decision rules.

a. Nonprogrammed
b. Unique
c. Programmed
d. Wicked
e. Novel

6. Programmed decisions are made in response to __________ organizational problems.

a. unusual
b. recurring
c. significant
d. major
 e. unique

7. Bierderlack has a policy that states that more than three absences in a six-month period shall result in a
suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating
this policy. This is an example of:
a. a programmed decision.
b. a nonprogrammed decision.
c. an insignificant decision.
d. a wicked decision.
e. none of these.

8. A department store's return's policy is an example of a(n) __________ decision.

a. programmed
b. nonprogrammed
c. novel
d. poorly defined
e. unstructured

9. If your instructor has an attendance policy, she/he is using:

a. a programmed decision.
b. a unique approach.
c. a condition of ambiguity.
d. a nonprogrammed decision.
e. none of these.

10. Nonprogrammed decisions are made in response to situations that:

a. are unique.
b. are largely unstructured.
c. have important consequences for the organization.
d. are poorly defined.
e. all of these.

11. An example of a nonprogrammed decision would include the decision to:

a. reorder supplies.
b. develop a new product or service.
c. perform routine maintenance on one of the machines in
manufacturing.
d. terminate an employee for violation of company rules.
e. fill a position.

12. Many nonprogrammed decisions are related to __________ because uncertainty is great and decisions
are complex.
 a. strategic planning
b. innovation
c. strong leadership skills
d. applying effective decision rules
e. all of these

13. When a small community hospital decides to add a radiation therapy unit, it is considered a
__________ decision.
a. programmed
b. structured
c. nonprogrammed
d. wicked
e. certainty

14. Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a:
a. programmed decision.
b. nonprogrammed decision.
c. decision rule.
d. structured decision.
e. wicked decision.

15. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that
he will be visiting to drop off packages. This can best be described as what kind of decision?
a. Programmed
b. Nonprogrammed
c. Wicked
d. Administrative
e. Intuitive

16. Associated with the condition of __________ is the lowest possibility of failure.
a. ambiguity
b. uncertainty
c. certainty
d. risk
e. all of these

17. Which of the following means that all the information the decision maker needs is fully available?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. None of these
18. Bobby, a product manager, wants to increase the market share of his product by 25 percent. He is
unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of
his product will interact to influence market share. Bobby is operating under a condition of:
a. risk.
b. ambiguity.
c. certainty.
d. uncertainty.
e. bounded rationality.

19. Under conditions of __________, statistical analyses are useful.

a. certainty
b. ambiguity
c. risk
d. uncertainty
e. conflict

20. Which of the following means that a decision has clear-cut goals and that good information is
available, but the future outcomes associated with each alternative are subject to some chance of loss or
failure?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Brainstorming

21. __________ means that managers know which goals they wish to achieve, but information about
alternatives and future events is incomplete.
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Advocacy

22. With __________, enough information is available to estimate the probability of a successful outcome
versus failure.
a. risk
b. uncertainty
c. ambiguity
d. intuition
e. all of these

23. Which of the following has the highest possibility of failure?

 a. The condition of certainty
b. The condition of ambiguity
c. The condition of uncertainty
d. The condition of risk
e. All of these

24. What are the four positions on the possibility of failure scale?
a. Certainty, risk, uncertainty, and ambiguity
b. Conflict, risk, uncertainty, and ambiguity
c. Certainty, necessity, conflict, and uncertainty
d. Indecision, risk, uncertainty, and possibility
e. Possibility, indecision, necessity, and conflict

25. __________ is by far the most difficult situation for a decision maker.
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Brainstorming

26. Which of the following means that the goals to be achieved or the problem to be solved is unclear,
alternatives are difficult to define, and information about outcomes is unavailable?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Conflict

27. The condition under which ambiguity occurs is when:

a. alternatives are difficult to define.
b. objectives are well defined.
c. information about outcomes is readily available.
d. all the alternatives are known.
e. decisions are already made.

28. __________ decisions are associated with conflicts over goals and decision alternatives, rapidly
changing circumstances, fuzzy information, unclear links among decision elements, and the inability to
evaluate whether a proposed solution will work.
a. Nonprogrammed
b. Programmed
c. Wicked
d. Conventional
 e. Irrational

29. During the fallout of the global financial crisis of the late 2000s, finance companies had to make
important decisions in a highly ambiguous environment. The decision to buy out failed banks could best
be described as what type of decision?
a. Bounded
b. Programmed
c. Conventional
d. Wicked
e. Irrational

30. The classical model of decision making is based on __________ economic assumptions.
a. arbitrary
b. irrational
c. rational
d. uncertain
e. vague

31. Riley is a manager at Tinker Tools. She is expected to make rational decisions that are economically
feasible and in the organization’s best economic interests. Her decisions should be based on which of the
following decision-making models?
a. Administrative
b. Political
c. Scientific management
d. Classical
e. Humanistic

32. Which of the following is an assumption of the classical model of decision making?
a. Problems are unstructured and ill defined.
b. The decision maker strives for conditions of certainty and tries to gather complete information.
c. Criteria for evaluating alternatives are unknown.
d. The decision maker selects the alternatives that will minimize the economic return to the organization.
e. All of these

33. Which approach defines how a decision maker should make decisions?
a. Normative
b. Scientific
c. Descriptive
d. Reflective
e. Humanistic

34. Which of the following is an assumption of the administrative model of decision making?
 a. Most managers strive for a maximizing rather than settling for a satisficing solution.
b. Managers’ searches for alternatives are unlimited.
c. Managers often are unaware of problems or opportunities that exist in the organization.
d. Rational procedures are always used.
e. None of these

35. All of the following are assumptions of the classical decision-making model except:
a. all alternatives and the potential results of each are calculated.
b. the decision maker operates to accomplish goals that are known and agreed on.
c. the decision maker is rational and uses logic to assign values, order preferences, evaluate alternatives,
and make the decision that will maximize the attainment of organizational goals.
d. decision goals often are vague, conflicting, and lack consensus among managers.
e. criteria for evaluating alternatives are known.

36. The __________ model of decision making is most useful when applied to __________ decisions.
a. administrative; programmed
b. classical; nonprogrammed
c. classical; programmed
d. classical; ambiguous
e. administrative; structured

37. The classical model of decision making is considered to be __________, which means that it defines
how a decision maker should make decisions, whereas the administrative model of decision making is
considered to be __________, meaning that it describes how managers actually make decisions in
complex situations rather than dictating how they should make decisions according to a theoretical ideal.
a. normative; descriptive
b. normative; prescriptive
c. descriptive; normative
d. descriptive; prescriptive
e. analytic; normative

38. Which model of decision making is associated with satisficing, bounded rationality, and uncertainty?
a. Classical
b. Administrative
c. Quantitative
d. Rational
e. Political

39. The growth of big data techniques has expanded the use of which decision-making approach?
a. Administrative
b. Classical
c. Intuitive
d. Political
 e. Bureaucratic

40. The __________ model of decision making describes how managers actually makes decisions in
situations characterized by nonprogrammed decisions, uncertainty, and ambiguity.
a. normative
b. classical
c. administrative
d. scientific management
e. objective

41. The concept that people have the time and ability to process only a limited amount of information
with which to make decisions is known as:
a. satisficing.
b. bounded rationality.
c. the classical model of decision making.
d. the normative approach.
e. intuition.

42. Melissa is a manager at InStylez Clothing. Her job is very complex, and she feels that she does not
have enough time to identify and/or process all of the information she needs to make decisions. Melissa's
situation is most consistent with which of the following concepts?
a. Bounded rationality
b. The classical model of decision making
c. Satisficing
d. Brainstorming
e. Intuition

43. The essence of __________ is to choose the first solution alternative that satisfies minimal decision
criteria.
a. bounded rationality
b. creativity
c. decision maximization
d. satisficing
e. the classical model of decision making

44. Rodney doesn’t always realize that within his role as an air traffic controller, he must continuously
perceive and process information based on knowledge and past experience that he is not consciously
aware of. This describes which of the following?
a. Evidence-based decision making
b. Bounded rationality
c. Satisficing
d. Rational decision making
e. Intuitive decision making
45. Numerous studies have found that effective managers use a combination of __________ and
__________ in making complex decisions under time pressure.
a. intuition; satisficing
b. satisficing; rational analysis
c. satisficing; brainstorming
d. rational analysis; intuition
e. rational analysis; brainstorming

46. The administrative model of decision making assures that most managers settle for a __________
rather than a __________ solution.
a. minimizing; maximizing
b. satisficing; maximizing
c. top-level; bottom-line
d. maximizing; satisficing
e. challenging; simple

47. Which of the following is not an assumption of the administrative decision making model?
a. Decisions goals often are vague, conflicting, and lack consensus among managers.
b. Information is ambiguous and complete.
c. When rational procedures are used, they are confined to a simplistic view of the problem that does not
capture the complexity of real organizational events.
d. Managers often are unaware of problems or opportunities that exist in the organization.
e. Managers’ searches for alternatives are limited because of human, information, and resource
constraints.

48. Which of the following is the process of forming alliances among managers?
a. Networking
b. Socializing
c. Coalition building
d. Satisficing
e. Passing the buck

49. The __________ model of decision making is useful for making nonprogrammed decisions when
conditions are uncertain, information is limited, and there are manager conflicts about what goals to
pursue or what course of action to take.
a. classical
b. functional
c. bureaucratic
d. political
e. administrative

50. Which of the following is a characteristic of the political model of decision making?
 a. Vague problems and goals
b. Limited information about alternatives and their outcomes
c. Rational choice by individual for maximizing outcomes
d. Condition of certainty
e. Bargaining and discussion among coalition members

51. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at
Jefferson are complex and involve many people, with a significant amount of disagreement and conflict.
Which decision-making model fits best for this organization?
a. Political
b. Functional
c. Classical
d. Administrative
e. Bureaucratic

52. Which of the following is an assumption of the political model of decision making?
a. Organizations are made up of groups with diverse interests, goals, and values.
b. Information is clear and complete.
c. Managers do not have the time, resources, or mental capacity to identify all dimensions of the problem
and process all relevant information.
d. Managers engage in the push and pull of debate to decide goals and discuss alternatives.
e. All of these

53. Shirley works in the human resource department at Turtle Shells, Inc. She believes that she is seeing
an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is
at what stage of the managerial decision-making process?
a. Diagnosis and analysis of causes
b. Development of alternatives
c. Recognition of decision requirement
d. Evaluation and feedback
e. Selection of desired alternative

54. A(n) __________ occurs when organizational accomplishment is less than established goals.
a. strength
b. threat
c. diagnosis
d. opportunity
e. problem

55. __________ is the step in the decision-making process in which managers analyze underlying causal
factors associated with the decision situation.
a. Analysis
b. Diagnosis
 c. Recognition
d. Judgment
e. Identification

56. Which of the following is the first step in the managerial decision-making process?
a. Evaluation and feedback
b. Development of alternatives
c. Recognition of decision requirement
d. Diagnosis and analysis of causes
e. Selection of desired alternative

57. __________ is the last step in the managerial decision-making process.

a. Evaluation and feedback
b. Development of alternatives
c. Implementation of chosen alternative
d. Selection of desired alternative
e. Recognition of decision requirement

58. The recognition of decision requirement step in the managerial decision-making process often
requires managers to:
a. develop alternative solutions.
b. integrate bits and pieces of information in novel ways.
c. use the classical model of decision making.
d. focus on generating ideas.
e. select undesirable alternatives.

59. "When did it occur?" and "How did it occur?" are questions associated with which step of the
managerial decision-making process?
a. Diagnosis and analysis of causes
b. Recognition of decision requirement
c. Development of alternatives
d. Selection of desired alternative
e. None of these

60. The __________ is a question-asking method used to explore the root cause underlying a particular
problem.
a. 5 Whats
b. 4 Hows
c. 5 Whys
d. 4 Wheres
e. 5 Whens
61. When quality control measures at the local tire plant were found to be inadequate, managers were
asking themselves, “How did this occur?” and “What is the result?” The company is in which stage of the
managerial decision-making process?
a. Selection of desired alternative
b. Development of alternatives
c. Diagnosis and analysis of causes
d. Recognition of decision requirement
e. Evaluation and feedback

62. The decision maker’s next step is to __________ after recognizing and analyzing a problem.
a. evaluate and provide feedback
b. choose among alternatives
c. generate alternatives
d. prioritize the alternatives
e. reanalyze the problem

63. Which of the following statements regarding the development of alternatives stage of the managerial
decision-making process is true?
a. Ineffective managers usually rely on the knowledge of people throughout the organization, and
sometimes even outside the organization, for decision alternatives.
b. Feasible alternatives are difficult to identify for both programmed and nonprogrammed decisions.
c. Both programmed and nonprogrammed decisions require new developing new courses of action that
will meet the company’s needs.
d. For programmed decisions, feasible alternatives usually are available within the organization’s rules and
procedures.
e. Studies find that expanding the search for alternatives is a primary cause of decision failure in
organizations.

64. Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in an environment of
high uncertainty. As a result, Ryan:
a. will most likely be making programmed decisions.
b. will probably have an easy time generating alternatives to any problems that may occur.
c. may develop only one or two custom solutions that will satisfice for handling a problem.
d. will most likely rely on the classical model of decision making.
e. should wait until the environment becomes certain before attempting to handle a problem.

65. The best alternative solution is the one:

a. that best fits the overall goals of the organization.
b. with the least amount of risk and uncertainty.
c. that achieves the desired results using the fewest resources.
d. that best fits the overall values of the organization.
e. all of these.

66. Which of the following refers to the willingness to undertake risk with the opportunity of gaining an
increased payoff?
a. Tunnel vision
b. Risk propensity
c. Risk aversion
d. Thrill seeking
e. None of these

67. The __________ stage of the managerial decision-making process involves the use of managerial,
administrative, and persuasive abilities to ensure that the chosen alternative is carried out.
a. recognition
b. analysis
c. evaluation
d. implementation
e. feedback

68. The ultimate success of the chosen alternative depends on:

a. the level of commitment from members of the organization.
b. whether the decision was programmed or nonprogrammed.
c. proper diagnosis of the problem.
d. the manager’s personal decision style.
e. whether it can be translated into action.

69. Genna is collecting data on how well the organization has done since their new strategy was
implemented. She is in what stage of the managerial decision-making process?
a. Development of alternatives
b. Implementation of chosen alternative
c. Evaluation and feedback
d. Recognition of decision requirement
e. Selection of desired alternative

70. Which personal decision style is used by people who prefer simple, clear-cut solutions to problems?
a. Behavioral
b. Conceptual
c. Directive
d. Analytical
e. Classical

71. Kelly, a manager at Pure Life Inc., likes to talk to her employees one on one and understand their
feelings whenever there is a problem. Based on this information, Kelly uses a(n) __________ style.
a. analytical
b. directive
c. behavioral
d. classical
 e. conceptual

72. Research has identified four major decision styles. These include all of the following except:
a. behavioral.
b. conceptual.
c. analytical.
d. authoritative.
e. directive.

73. Managers are considered to have a(n) __________ style when they prefer to consider complex
solutions based on as much data as they can gather.
a. behavioral
b. conceptual
c. directive
d. analytical
e. classical

74. Which decision style is adopted by managers who have a deep concern for others as individuals?
a. Behavioral
b. Classical
c. Analytic
d. Logical
e. Conceptual

75. People with a(n) __________ style consider many broad alternatives, rely on information from both
people and systems, and like to solve problems creatively.
a. classical
b. analytic
c. logical
d. behavioral
e. conceptual

76. Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous
year’s sales to estimate sales for the coming year. This an example of which management bias?
a. Being influenced by emotions
b. Perpetuating the status quo
c. Seeing what you want to see
d. Justifying past actions
e. Being influenced by initial impressions

77. All of the following are biases that can affect a manager's judgment except:
a. being influenced by initial impressions.
 b. justifying past decisions.
c. seeing what you don't want to see.
d. perpetuating the status quo.
e. being overconfident.

78. When managers base decisions on what has worked in the past and fail to explore new options, they
are:
a. perpetuating the status quo.
b. being influenced by emotions.
c. being overconfident.
d. justifying past decisions.
e. seeing what they want to see.

79. __________ occurs when a manager puts too much value on evidence that is confident with a favored
belief or viewpoint and discounts evidence that contradicts it.
a. The sunk cost effect
b. Evidence-based decision making
c. Escalating commitment
d. Anchoring bias
e. Confirmation bias

80. As a top manager, Joanna works with others within her team every day in making important corporate
decisions. Her preferred decision-making approach is to generate as many ideas as possible for solving
problems in a short amount of time. This approach is referred to as:
a. groupthink.
b. devil’s advocacy.
c. point–counterpoint.
d. escalating commitment.
e. brainstorming.

81. Which of the following defines a technique that uses a face-to-face interactive group to spontaneously
suggest as many ideas as possible for solving a problem?
a. Brainstorming
b. Groupthink
c. Point–counterpoint
d. After-action review
e. Devil's advocate

82. The __________ is the individual who is assigned the role of challenging the assumptions and
assertions made by the group.
a. group gadfly
b. multiple advocate
c. devil's advocate
 d. brainstormer
e. inferior member

83. Which of the following is a decision-making technique that can be used to stimulate rigorous debate?
a. Point–counterpoint
b. Brainstorming
c. Evidence-based decision making
d. Groupthink
e. All of these

84. __________ refers to the tendency of people in groups to suppress contrary opinions.
a. Point–counterpoint
b. Groupthink
c. Devil’s advocacy
d. Escalating commitment
e. Brainstorming

85. After implementation of any significant decision, managers at KTC Industries, Inc. meet to evaluate
what worked, what didn’t, and how to do things better. Managers at KTC are using what innovative
decision-making technique?
a. After-action review
b. Postmortem bias
c. Decision learning
d. Brainstorming
e. Escalating commitment

Scenario - Vaughn Bately

Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly
trained and well respected by experts both inside and outside the company. Recently, one of Vaughn's
engineers suggested a new technique for the development and use of an argon laser. There appeared to be
rich potential for this technology, but Vaughn wasn't certain that developing this technology was the best
use of his limited resources. Vaughn was facing a significant decision.
86. If Vaughn uses the classical model of decision making, which of the following assumptions would he
reject?
a. The decision maker is rational and uses logic to assign values, order preferences, evaluate alternatives,
and make the decision that will maximize the attainment of organizational goals.
b. The decision maker selects the alternative that will maximize the economic return to the organization.
c. The decision maker strives for conditions of certainty and tries to gather complete information.
d. Problems are precisely formulated and defined.
e. Managers are likely to have a variety of goals and objectives.

87. If Vaughn uses the administrative model of decision making, which of these assumptions would he
reject?
a. Most managers settle for a satisficing rather than maximizing solution.
b. Managers’ searches for alternatives are limited because of human, information, and resource
constraints.
c. Rational procedures will normally lead to the best solution in a complex organization.
d. Decision goals often are vague, conflicting, and lack consensus among managers.
e. Managers often are unaware of problems or opportunities that exist in the organization.

88. Which of the following steps would Vaughn not take in making his decision?
a. Recognize the decision requirement
b. Implement the chosen alternative
c. Create a set of alternatives
d. Diagnose and analyze problem causes
e. All of these steps would be included.

1. Managers make decisions from available alternatives; however, in reality, there are many times when
the information needed is not available, unknown, or not knowable.
Describe similarities and differences between programmed and nonprogrammed decisions, and their
relationship to certainty and uncertainty. Include examples that you believe represents each type of
decision.

2. When an organization falls short of established performance goals, or when a possibility exists of
enhancing future performance, managers must make a decision. Summarize the six steps of managerial
decision making by providing a realistic example of a business problem or opportunity that you could
encounter as a manager. Make the decision you think is most effective, and identify each step of the
decision-making process in your example.

3.Significant differences distinguish how individual managers approach problems and make decisions;
each has his own dominant personal decision style. In a short essay, briefly describe the four major
personal decision styles used by managers. Then describe three or four significant decisions you have
made in the last 30 days, and use them to determine your dominant personal decision style. Explain how
you reached your conclusion.

4.Even good managers will make mistakes that are caused by bias. Bias is a partial perspective that clouds
good judgment. In a short essay, define the six biases that can cause a manager to make bad decisions.
Then, describe a situation that is public knowledge where bias was reflected in the manager’s decision-
making process.