You are on page 1of 47

Organizational Behavior Emerging

Knowledge Global Reality 8th Edition


McShane Test Bank
Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/organizational-behavior-emerging-knowledge-global-reality-8th-edition-mcshan
e-test-bank/
Chapter 07
Test Bank
1. Decision making is a nonconscious process of moving toward a desirable state of affairs.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 1 Easy
Topic: Rational Choice Paradigm

Feedback: Decision making is the conscious process of making choices among alternatives with the intention of moving toward some desired state of
affairs.

2. Nonprogrammed decisions require all steps in the decision model because the problems they present are new, complex, or ill-defined.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: Nonprogrammed decisions require all steps in the decision model because the problems are new, complex, or ill-defined.

3. The rational choice decision-making process recommends choosing the alternative with a moderate subjective expected utility.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: The fourth step in the rational decision-making model is to select the choice with the highest subjective expected utility. This calls for all
possible information about all possible alternatives and their outcomes, but the rational choice paradigm assumes it can be accomplished with ease.

4. According to bounded rationality theory, people make the best decisions when their perceptions are "bounded" or framed by past experience.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 1 Easy
Topic: Bounded Rationality

Feedback: Bounded rationality refers to the view that people are bounded in their decision-making capabilities, including access to limited
information, limited information processing, and a tendency toward satisficing rather than maximizing when making choices. This makes them
choose a satisfactory solution rather than the best solution.

5. The rational choice paradigm assumes that decision makers have limited information-processing capabilities and engage in a limited search for
alternatives.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: According to the bounded rationality view, people process limited and imperfect information and rarely select the best choice. This is
inconsistent with the rational choice paradigm view. According to the rational choice paradigm of decision making, people rely on logic to evaluate
and choose alternatives. This paradigm assumes that decision makers have well-articulated and agreed-on organizational goals, efficiently and
simultaneously process facts about all alternatives and the consequences of those alternatives, and choose the alternative with the highest payoff.

7-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
6. Decision makers typically look at alternatives sequentially and compare each alternative with an implicit favorite.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: Decision makers have a natural tendency to evaluate alternatives sequentially, rather than at the same time. This sequential evaluation
occurs partly because all alternatives are not usually available to the decision maker at the same time. Consequently, as a new alternative comes
along, it is immediately compared with an implicit favorite—an alternative that the decision maker prefers and that is used as a comparison with
other choices.

7. Intuition allows us to draw on our tacit knowledge to guide our decision preferences.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

Feedback: Intuition involves rapidly comparing our observations with deeply held patterns learned through experience. These templates represent
tacit knowledge that has been implicitly acquired over time.

8. The prospect theory effect motivates us to avoid losses.


TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Organizational Commitment

Feedback: The prospect theory effect is the tendency to experience stronger negative emotions when losing something of value than the positive
emotions experienced when gaining something of equal value. This prospect theory effect motivates us to avoid losses, which typically occurs by
taking the risk of investing more in that losing project. Stopping a project is a certain loss, which is more painful to most people than the uncertainty
of success associated with continuing to fund the project. Given the choice, decision makers choose the less painful option.

9. Escalation of commitment is likely to occur when the perceived costs of terminating the project are high or unknown.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Organizational Commitment

Feedback: Some experts argue that throwing more money into a failing project is sometimes a logical attempt to further understand an ambiguous
situation. This strategy is essentially a variation of testing unknown waters. By adding more resources, the decision maker gains new information
about the effectiveness of these funds, which provides more feedback about the project's future success. This strategy is particularly common where
the project has high closing costs.

10. The incubation stage of creativity is more effective when the decision maker sets aside all other activities and focuses attention on the issue or
problem.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Incubation refers to the period of reflective thought. We put the problem aside, but our mind is still working on it in the background.
Incubation does not mean you forget about the problem or issue.

11. Divergent thinking refers to calculating the conventionally accepted "right answer" to a logical problem.
7-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Divergent thinking refers to reframing the problem in a unique way and generating different approaches to the issue. This contrasts with
convergent thinking, calculating the conventionally accepted "right answer" to a logical problem.

12. Creative people have practical intelligence but not cognitive intelligence.
FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Conceptual Skills

Feedback: Creative people have above-average cognitive intelligence to synthesize information, analyze ideas, and apply their ideas. They recognize
the significance of small bits of information and are able to connect them in ways that few others can imagine. They also have practical
intelligence—the capacity to evaluate the potential usefulness of their ideas.

13. Employee involvement potentially improves both the decision-making quality and the commitment of employees.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 1 Easy
Topic: Employee Engagement

Feedback: Employee involvement can potentially improve the number and quality of solutions generated. Employee involvement also tends to
strengthen employee commitment to the decision. Rather than viewing themselves as agents of someone else's decision, staff members feel
personally responsible for its success.

14. Employee involvement tends to weaken the decision-making process.


FALSE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Employee Engagement

Feedback: Employee involvement can potentially improve the number and quality of solutions generated. In a well-managed meeting, team members
create synergy by pooling their knowledge to form new alternatives.

15. Employees are more committed to implementing a solution when they are involved in making the decision.
TRUE
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Employee Engagement

Feedback: Employee involvement tends to strengthen employee commitment to the decision. Rather than viewing themselves as agents of someone
else's decision, staff members feel personally responsible for its success.

16. _____ is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs.
A. Decision making
B. Bounded rationality
C. Divergent thinking
D. Prospect theory
E. Scenario planning

AACSB: Knowledge Application


7-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 1 Easy
Topic: Rational Choice Paradigm

Feedback: Decision making is a conscious process of making choices among one or more alternatives with the intention of moving toward some
desired state of affairs.

17. ________ can be defined as the view that people should and typically do use logic and all available information to choose the alternative with the
highest value.
A. Subjective expected utility maximization
B. The rational choice decision-making process
C. Bounded rationality
D. Decision making
E. Intuition

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 1 Easy
Topic: Rational Choice Paradigm

Feedback: The view that people should and typically do use logic and all available information to choose the alternative with the highest value is
known as the rational choice decision-making process.

18. The rational choice decision-making process selects the choice with the highest utility through the
A. rational choice calculator.
B. selective expected utility.
C. solution-focused calcuator.
D. rational expected utility.
E. rational selective calculator.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Choice Paradigm

Feedback: Rational choice decision making selects the best alternative by calculating the probability that various outcomes will occur from the
choices and the expected satisfaction from each of those outcomes

19. A nonprogrammed decision is applicable in any


A. routine situation where the company has a ready-made solution.
B. decision that does not relate directly to the employee's job description.
C. nonroutine situation in which employees must search for alternative solutions.
D. decision that is clearly within the employee's job description.
E. decision that affects the employee's performance.\

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: Nonprogrammed decisions require all steps in the decision model because the problems are new, complex, or ill-defined. Such decisions
do not follow standard operating procedures.

20. Which of these is the final step in the rational choice decision making process?
A. developing a list of solutions
B. implementing the selected alternative
C. choosing the best alternative
D. evaluating decision outcomes
E. recognizing the opportunities

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
7-4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Level of Difficulty: 1 Easy
Topic: Rational Choice Paradigm

Feedback: The final step in rational choice decision making is evaluating the decision outcomes. It includes evaluating whether the gap has narrowed
between "what is" and "what ought to be." Ideally, this information should come from systematic benchmarks so that relevant feedback is objective
and easily observed.

21. After a problem has been identified and possible choices have been identified, the next step is to
A. choose the best decision process.
B. discover possible choices.
C. select the choice with the highest value.
D. implement the selected choice.
E. evaluate the selected choice.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The fourth step is to select the best choice by applying the rational choice calculation we described in Exhibit 7.1. Choosing the alternative
that offers the greatest satisfaction or value requires the decision maker to have information about all possible alternatives and their outcomes. That
condition is usually impossible, but the rational choice view of decision making assumes this can be accomplished with ease.

22. The gap between “what is” and “what ought to be” is also called a
A. deviation.
B. problem.
C. opportunity.
D. choice.
E. decision.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: A problem is a deviation between the current and the desired situation—the gap between “what is” and “what ought to be.”

23. One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's
attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this
argument?
A. rational decision-making process
B. programmed decision making
C. perceptual defense
D. decisive leadership
E. stakeholder framing

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's
attention, rather than by the objective reality of the external or internal environment. This would lead to stakeholder framing. Stakeholders present the
information in such a way that it triggers the decision maker's emotional response that the information is a problem, an opportunity, or
inconsequential.

24. Decision makers might succumb to the solution-based problem trap because
A. it provides a comforting solution.
B. they prefer ambiguity rather than decisiveness.
C. it avoids the escalation of commitment problem.
D. it avoids problems of bounded rationality.
E. it helps in minimizing the biases caused by mental models.

AACSB: Analytical Thinking


7-5
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Decision makers tend to define problems as veiled solutions. Decision makers engage in solution-focused problem identification because
it provides comforting closure to the otherwise ambiguous and uncertain nature of problems.

25. Perceptual defense causes us to


A. defend the solutions we propose.
B. defend those who agree with us when we identify a problem.
C. defend the perception we have after making a decision.
D. block out bad news or information that threatens our self-concept.
E. justify our actions to defend our position.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: People sometimes block out bad news as a coping mechanism. Their brain refuses to see information that threatens their self-concept. This
phenomenon is known as perceptual defense.

26. What effect do mental models have on the decision-making process?


A. They perpetuate assumptions that make it difficult to see new opportunities.
B. They allow decision makers to obtain accurate information from the surroundings.
C. They reduce the importance of developing alternative solutions to the problem.
D. They allow decision makers to maximize the potential of their decision making.
E. They help people to be more creative in decision making.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: Mental models are visual or relational images of the external world; they fill in information that we don't immediately see, which helps us
understand and navigate in our surrounding environment. Many mental images are also prototypes—they represent models of how things should be.
These mental models also blind us from seeing unique problems or opportunities because they produce a negative evaluation of things that are
dissimilar to the mental model.

27. The concept of bounded rationality holds that


A. our perception of a rational reality is bounded by nonrationality.
B. decision makers process limited and imperfect information and therefore rarely select the best choice.
C. decision makers have limited alternatives to make decisions.
D. decision makers are bound to project images of themselves as rational thinkers.
E. our realities are bounded by our own perceptions so that everyone's reality is different.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Nobel Prize-winning organizational scholar Herbert Simon argued that people engage in bounded rationality because they process limited
and imperfect information and rarely select the best choice.

28. Which of the following is one of the assumptions of the rational decision-making process?
A. Decision makers evaluate alternatives against an implicit favorite.
B. Decision makers choose the alternative that is good enough.
C. Decision makers have well-articulated goals.
D. Decision makers evaluate alternatives sequentially.

7-6
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
E. Decision makers process perceptually distorted information.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 1 Easy
Topic: Rational Decision-Making Model

Feedback: The rational decision-making process assumes that organizational goals are clear and agreed-on. Unfortunately, organizational goals are
often ambiguous or in conflict with each other.

29. Decision makers tend to rely on their implicit favorite when they
A. select an appropriate decision style.
B. evaluate decision alternatives sequentially.
C. want to avoid escalation of commitment.
D. want to make more creative decisions.
E. have to make a selection from very limited alternatives.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Decision makers have a natural tendency to evaluate alternatives sequentially, not all at the same time. They evaluate each alternative
against the implicit favorite when evaluating decision alternatives.

30. The availability heuristic refers to the tendency


A. to choose an alternative that is good enough rather than the best.
B. for people to influence an initial anchor point.
C. to evaluate probabilities of events or objects by how closely the event or object resembles another event.
D. to estimate the probability of something occurring by how easily we can recall those events.
E. for decision makers to evaluate alternatives sequentially rather than comparing them all at once.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The availability heuristic is the tendency to estimate the probability of something occurring by how easily we can recall those events.

31. The Director of Nursing is looking throughout the hospital for a new format of a work schedule for nurses. She evaluates each schedule system as
soon as she learns about it. Eventually, she finds a schedule that is "good enough" for her needs and ends her search even though there may be better
schedules available that she hasn't yet learned about. The Director of Nursing is engaging in
A. escalation of commitment.
B. satisficing.
C. perceptual defense.
D. post-decisional justification.
E. open rationalization.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 3 Hard
Topic: Rational Decision-Making Model

Feedback: Typically, people are bounded in their decision-making capabilities, including access to limited information, limited information
processing, and tendency toward satisficing rather than maximizing when making choices. Satisficing is the act of choosing an alternative that is
satisfactory or "good enough."

32. Satisficing refers to


A. the tendency to choose an alternative that is good enough rather than the best.
B. the feeling employees experience when they are not involved in a decision in which they would have made a valuable contribution.
7-7
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
C. a desirable outcome of decision making when several employees participate in the decision process.
D. the feeling employees experience when they make the right decision.
E. the tendency for decision makers to evaluate alternatives sequentially rather than comparing them all at once.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Satisficing is the act of choosing an alternative that is satisfactory or "good enough."

33. Which of the following is not a reason people engage in satisficing rather than maximization?
A. They lack the capacity and motivation to process a huge volume of information.
B. They rely on sequential evaluation of new alternatives.
C. Decisions with many alternatives can be cognitively and emotionally draining.
D. Alternatives present themselves over time, not all at once.
E. It allows them to choose the alternative with the highest payoff.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Satisficing is selecting an alternative that is satisfactory or "good enough" rather than the alternative with the highest value
(maximization).

34. The representativeness heuristic refers to the tendency


A. to choose an alternative that is good enough rather than the best.
B. for people to influence an initial anchor point.
C. to evaluate probabilities of an event or an object by how closely it resembles another event or object.
D. to estimate the probability of something occurring by how easily we can recall those events.
E. for decision makers to evaluate alternatives sequentially rather than comparing them all at once.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The representativeness heuristic states that we pay more attention to whether something resembles (is representative of) something else
than to more precise statistics about its probability.

35. Middle managers of a marketing firm were addressing the problem of creating eye-catching ads that were able to be easily reproduced in both
color and black and white. One manager said, "The main problem here is we design using color to lure the consumer instead of relying on the
benefits of the product itself." Which of the following best describes the decision-making problem that this manager is exhibiting?
A. The manager is engaging in escalation of commitment.
B. The manager is being too creative.
C. The manager is involved in participative decision making.
D. The manager is engaging in groupthink.
E. The manager is defining the problem in terms of a solution.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Decision makers describe the problem as a veiled solution. Solution-focused problem identification also occurs because decision makers
are comforted by closure to problems, so they seek out solutions while still defining the problem.

36. Often management is "under the gun" to solve problems and meet deliverables. This can lead to
A. solution-focused problem-solving.
7-8
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
B. stakeholder framing.
C. misguided leadership.
D. perceptual defense.
E. identifying opportunities.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Many leaders announce problems or opportunities before having a chance to logically assess the situation. The result is often a misguided
effort to solve an ill-defined problem or resources wasted on a poorly identified opportunity.

37. What is meant by "divine discontent"?


A. Decision makers are never satisfied with current conditions, so they more actively search for problems and opportunities.
B. It is much easier to discover blind spots in problem identification when listening to how others perceive the situation.
C. Employees can minimize problem identification errors by discussing the situation with colleagues and clients.
D. Decision makers are more motivated to consider other perspectives of reality.
E. Leaders require considerable willpower to resist the temptation of looking decisive.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 3 Hard
Topic: Rational Decision-Making Model

Feedback: A third way to improve problem identification is to create a norm of “divine discontent.” Decision makers with this mindset are never
satisfied with current conditions, so they more actively search for problems and opportunities.

38. The main reason why decision makers compare alternatives against an implicit favorite is the hard-wired human need to minimize
A. confirmation bias.
B. cognitive dissonance.
C. implicit favorite.
D. decision heuristics.
E. anchoring.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The main reason why decision makers compare alternatives against an implicit favorite is the hard-wired human need to minimize
cognitive dissonance.

39. Which of the following ultimately energizes us to select the preferred choice?
A. logic
B. emotions
C. rational logic
D. creativity
E. intuition

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

Feedback: Neuroscientific evidence says that information produced from logical analysis is tagged with emotional markers that then motivate us to
choose or avoid a particular alternative. Ultimately emotions, not rational logic, energize us to make the preferred choice.

40. The most accurate view of intuition is that it is


A. a trait that people acquire mainly through heredity.
B. more likely to be found in men than women.
7-9
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
C. acquired more quickly by people whose careers extend to several unrelated industries.
D. the ability to know when an opportunity exists and select the best course of action without conscious reasoning.
E. an unacceptable way of making decisions in an organizational setting.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

Feedback: Intuition refers to the ability to know when a problem or opportunity exists and to select the best course of action without conscious
reasoning.

41. Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision
routines are referred to as
A. action scripts.
B. illuminations.
C. rational formulae.
D. solution-focused problems.
E. implicit favorites.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

Feedback: Intuition relies on action scripts—programmed decision routines that speed up our responses to pattern matches or mismatches. Action
scripts effectively shorten the decision-making process by jumping from problem identification to selection of a solution. In other words, action
scripting is a form of programmed decision making. Action scripts are generic, so we need to consciously adapt them to the specific situation.

42. Which of the following statements is true about scenario planning?


A. It is unwittingly selective in the acquisition and use of evidence.
B. It is the process of planning a solution based on employee preferences.
C. It is a disciplined method for imagining possible futures.
D. It is an act of reframing the problem in a unique way and generating different approaches to the issue.
E. It is the act of calculating the conventionally accepted right answer to a logical problem.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Scenario planning is a disciplined method for imagining possible futures. It typically involves thinking about what would happen if a
significant environmental condition changed and what the organization should do to anticipate and react to such an outcome.\

43. After choosing among several computer server systems, the Director of Information Systems feels very positive about the final choice. However,
some of this optimism is due to the fact that the Director forgot about few of the limitations of the chosen system and unconsciously downplayed the
importance of the positive features of the rejected systems. The Director of Information Systems is engaging in
A. escalation of commitment.
B. rational maximization.
C. rational choice thinking.
D. confirmation bias.
E. impulsive buying.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

Feedback: The Director is engaging in confirmation bias. Confirmation bias is the "unwitting selectivity in the acquisition and use of evidence."
When evaluating decisions, people with confirmation bias ignore or downplay the negative features of the selected alternative and overemphasize its
positive features.

7-10
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
44. _____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when
gaining something of equal value.
A. Implicit favoritism
B. Bounded rationality
C. Intuition
D. Nonprogrammed decision making
E. Prospect theory effect

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 1 Easy
Topic: Organizational Commitment

Feedback: Escalation of commitment is partly fueled by the prospect theory effect. This is the tendency to experience stronger negative emotions
when losing something of value than the positive emotions experienced when gaining something of equal value.

45. Prospect theory and closing costs are two reasons why people
A. engage in escalation of commitment.
B. define problems in terms of preferred solutions.
C. make nonprogrammed decisions rather than programmed decisions.
D. demonstrate satisficing behaviors.
E. encourage employee involvement.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 1 Easy
Topic: Organizational Commitment

Feedback: Four of the main influences that lead to escalation of commitment include self-justification, prospect theory effect, self enhancement, and
sunk costs.

46. ________ occurs when decision makers choose to continue an existing course of action because it is the less painful option at the time.
A. The prospect theory effect
B. The sunk costs effect
C. The self-justification effect
D. The self-enhancement effect
E. Satisficing

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Evidence-Based Decision Making

Feedback: Prospect theory effect is the tendency to experience stronger negative emotions when losing something of value than the positive emotions
when gaining something of equal value.

47. Escalation of commitment can be minimized by ensuring that


A. there are ready-made alternatives to resolve the problem.
B. those who make the decision are different from those who implement and evaluate it.
C. the team leader has strong opinions about the preferred options for a problem.
D. organizational goals are relatively ambiguous.
E. negative information is screened out to protect the self-esteem of the decision makers.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Evidence-Based Decision Making

Feedback: One of the most effective ways to minimize escalation of commitment and confirmation bias is to ensure that the people who made the
original decision are not the same people who later evaluate that decision.

48. ________ shape(s) how we evaluate information, not just which choice we select.
A. Decisions
7-11
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
B. Emotions
C. Values
D. Cognitive dissonance
E. Design thinking

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Evidence-Based Decision Making

Feedback: Emotions shape how we evaluate information, not just which choice we select.

49. Leading business writers emphasize that _____ is one of the most important and challenging tasks in the decision-making process.
A. escalation of commitment
B. rational maximization
C. translating decisions into action
D. confirmation bias
E. bounded rationality

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: Leading business writers emphasize that execution—translating decisions into action—is one of the most important and challenging tasks
in the decision-making process.

50. The Dot Com business boom can be used as an example of


A. escalation of commitment.
B. rational maximization.
C. rational choice thinking.
D. confirmation bias.
E. impulsive buying.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

Feedback: Another reason why decision makers don’t evaluate their decisions very well is due to escalation of commitment—the tendency to repeat
an apparently bad decision or allocate more resources to a failing course of action.

51. When a business must decide between completing a project that is over budget and past due versus starting over, they are evaluating the
A. bounded rationality.
B. intuition.
C. sunk costs effect.
D. self-justification effect.
E. prospect theory effect.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 3 Hard
Topic: Intuition

Feedback: Another disincentive to axing a failing project is sunk costs—the value of resources already invested in the decision. The rational choice
view states that investing resources should be determined by expected future gains and risk, not the size of earlier resources invested in the project.
Yet people inherently feel motivated to invest more resources in projects that have high sunk costs. A variation of sunk costs is time investment.

52. Incubation and verification are two


A. stages of the creative process.
B. elements of bounded rationality.
C. elements of the MARS model.
D. stages of team decision making.
7-12
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
E. steps in perceptual modeling.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 1 Easy
Topic: Decision Making

Feedback: Preparation, incubation, illumination, and verification are the four stages of the creative process.

53. The first stage of the creative process is


A. divergent thinking.
B. preparation.
C. experimentation.
D. illumination.
E. intuition.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: The first stage of the creative process is preparation—the process of investigating the problem or opportunity in many ways. Preparation
involves developing a clear understanding of what you are trying to achieve through a novel solution and then actively studying information
seemingly related to the topic.

54. An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the
following stages in the creative process would assist this?
A. verification
B. preparation
C. experimentation
D. illumination
E. incubation

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Here, the organization is promoting divergent thinking. Incubation assists the process of divergent thinking.

55. Which of the following refers to calculating the conventionally accepted "right answer" to a logical problem?
A. divergent thinking
B. convergent thinking
C. logical validity
D. escalation of commitment
E. confirmation bias

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Incubation assists divergent thinking—reframing the problem in a unique way and generating different approaches to the issue. This
contrasts with convergent thinking—calculating the conventionally accepted "right answer" to a logical problem.

56. Which of the following is assisted by incubation in the creative process?


A. escalation of commitment
B. prospect theory effect
C. convergent thinking
D. divergent thinking
E. decision choice

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
7-13
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Incubation assists divergent thinking—reframing the problem in a unique way and generating different approaches to the issue.

57. The illumination stage in the creative process


A. provides a tested solution to complex problems.
B. occurs after the verification stage in the process.
C. generates long-lasting thoughts in the memory.
D. is characterized by convergent thinking.
E. can be quickly lost if not documented.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Illumination refers to bits of inspiration and can be quickly lost if not documented.

58. A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one
evening, the marketing specialist saw a scene that gave her inspiration for a new marketing plan. According to the creative process model, which of
the following is the next stage in the creative process after such inspiration?
A. preparation
B. incubation
C. verification
D. illumination
E. morphological analysis

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 3 Hard
Topic: Decision Making

Feedback: Illumination is the third stage of creativity. It refers to the experience of suddenly becoming aware of a unique idea. The marketing
specialist suddenly became aware of a new marketing plan while watching a movie. The given situation is an example of an illumination.
Illuminations are merely rough ideas. Their usefulness requires verification through detailed logical evaluation, experimentation, and further creative
insight. That is, for this marketing specialist, verification is the next stage in the creative process.

59. You have just received seed money for a new e-commerce business and you want to hire a dozen people with a high level of creative potential.
To hire the most creative people, you would select applicants who have
A. no experience in this industry, high analytic intelligence, and relatively low need for achievement.
B. high degree of nonconformity, high value for self-direction, and relatively low need for affiliation.
C. strong mental models regarding their field of knowledge, high synthetic intelligence, and relatively high need for social approval.
D. high need for affiliation, high need for achievement, and high need for social approval.
E. low openness to experience, high need for social approval, and relatively low need for affiliation.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Creative people possess a cluster of personality traits and values that support an independent imagination: high openness to experience,
moderately low need for affiliation, and strong values around self-direction and stimulation.

60. People tend to be more creative when they


A. have a reasonable level of job security.
B. are secluded from others in the organization.
C. are under extreme time pressure.
D. have relatively low experience.
E. have low openness to experience.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation

7-14
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Companies foster creativity by providing a comfortable degree of job security, which explains why creativity suffers during times of
downsizing and corporate restructuring.

61. What do impromptu storytelling, morphological analysis, and artwork have in common?
A. They are forms of cross-pollination.
B. They increase the risk of bounded rationality.
C. They are forms of associative play.
D. They significantly weaken the creative process.
E. They are used mainly to improve the rational choice process.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: A set of creativity activities, known as associative play, ranges from art classes to impromptu storytelling and acting.

62. _____ is valuable throughout the decision-making process.


A. Incubation
B. Creativity
C. Verification
D. Preparation
E. Illumination

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Creativity is valuable throughout the decision-making process.

63. Who constructed the four-stage creative process model?


A. Abraham Maslow
B. Hermann von Helmholtz
C. Graham Wallas
D. Frederick Taylor
E. Adam Smith

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 1 Easy
Topic: Decision Making

Feedback: London School of Economics professor Graham Wallas built on Helmholtz’s ideas to construct the four-stage model shown in Exhibit 7.4.
Nearly a century later, this model is still considered the most elegant representation of the creative process.

64. In the creative process, which of the following refers to a "fringe" awareness?
A. incubation
B. illumination
C. preparation
D. verification
E. convergent thinking

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

7-15
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Feedback: Illumination (also called insight), the third stage of creativity, refers to the experience of suddenly becoming aware of a unique
idea. Wallas and others suggest that this stage begins with a “fringe” awareness before the idea fully enters our consciousness.

65. When someone says, "The lightbulb just went on," they are in the _____ stage.
A. incubation
B. illumination
C. preparation
D. verification
E. convergent thinking

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Illumination is often visually depicted as a lightbulb, but a better image would be a flash of light or perhaps a briefly flickering candle—
these bits of inspiration are fleeting and can be quickly lost if not documented.

66. The workplace supports _____ when reasonable mistakes are tolerated and expected as part of the discovery process.
A. a creative process
B. a learning orientation
C. associative play
D. cross-pollination
E. design thinking

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: The workplace supports a learning orientation when reasonable mistakes are tolerated and expected as part of the discovery process.

67. Which of these is also referred to as participative management?


A. employee involvement
B. escalation of commitment
C. creativity
D. implicit favorite
E. divergent thinking

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 1 Easy
Topic: Decision Making

Feedback: Employee involvement, also called participative management, refers to the degree to which employees influence how their work is
organized and carried out.

68. Which of the following is the lowest level of employee involvement?


A. Consult with individuals.
B. Ask employees for specific information.
C. Describe the problem to employees and ask for information.
D. Create a team to make the decision.
E. Create a team to make recommendations.

AACSB: Knowledge Application


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 1 Easy
Topic: Decision Making

Feedback: A low level of involvement occurs where employees are individually asked for specific information, but the problem is not described to
them.

69. Which of the following is true at the highest level of employee involvement?
7-16
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
A. Participation involves asking employees for information.
B. The entire decision-making process is handed over to employees.
C. Specific employees provide information to the management, and management makes the recommendations.
D. Employees tend to disagree with each other regarding the preferred solution.
E. Employees are told about the problem and they provide recommendations to the decision maker.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: At the highest level of employee involvement process, the entire decision-making process is handed over to employees, where the original
decision maker serves only as a facilitator to guide the team's decision process and keep everyone on track.

70. The benefits of employee involvement increase with


A. the routineness and similarity of the problem or opportunity.
B. management's knowledge of the situation.
C. the standardization and repetitiveness of the problem or opportunity.
D. the number and similarity of employees involved in the decision.
E. the novelty and complexity of the problem or opportunity.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Employee Engagement

Feedback: Programmed decisions are less likely to need employee involvement because the solutions are already worked out from past incidents. In
other words, the benefits of employee involvement increase with the novelty and complexity of the problem or opportunity.

71. Employees should not make the decision alone (without the manager's involvement) when
A. their goals and norms conflict with the organization's objectives.
B. they lack commitment to decisions made by the boss alone.
C. they possess more knowledge than the manager.
D. the employees are likely to disagree with each other regarding the preferred solution.
E. the problem calls for a nonprogrammed decision.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Employee Engagement

Feedback: If employee goals and norms conflict with the organization's goals, only a low level of employee involvement is advisable.

72. Numerous studies on participative decision making, task conflict, and team dynamics have found that involvement
A. brings out less diverse perspectives.
B. tests ideas.
C. provides worst alternatives.
D. provides less valuable knowledge.
E. brings out weakened employee commitment.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Organizational Commitment

Feedback: Numerous studies on participative decision making, task conflict, and team dynamics have found that involvement brings out more diverse
perspectives, tests ideas, and provides more valuable knowledge, all of which help the decision maker select the best alternative.

73. Sue Kim is trying to decide which shoes to order for the next season. She has examined the sales reports and walked the sales floor. She thinks
she has a good idea, but she still asks her staff at the next meeting though, just to be sure. She is using which contingency for employee involvement
in decision making?
A. decision structure
B. source of decision knowledge
7-17
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
C. decision commitment
D. risk of conflict
E. cross-pollination

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 2 Medium
Topic: Employee Engagement

Feedback: Subordinates should be involved in some level of decision making when the leader lacks sufficient knowledge and subordinates have
additional information to improve decision quality. In many cases, employees are closer to customers and production activities, so they often know
where the company can save money, improve product or service quality, and realize opportunities. This is particularly true for complex decisions
where employees are more likely to possess relevant information.

Scenario A
With funding from her family, Sarine is currently developing a new line of dolls for her business, which she hopes will take her company to the next
level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable
them to be as she envisioned them to be. Unfortunately, she then found out that there was a patent protecting the way the dolls arms were connected,
so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public in the dolls, she decided that they
needed to be marketed differently in order to sell. With this in mind, Sarine allocated more resources to marketing, had the packaging of the dolls
redesigned, and created a new set of advertising materials. The cost of manufacturing these dolls has now exceeded the initial proposed cost by four
times, but she is determined to make it work. She is embarrassed by how this has gone but continues to put on a brave front.

74. Sarine is most likely making decisions to continue with these dolls at this point because of
A. self-justification.
B. self-enhancement.
C. a decline of commitment.
D. prospect theory.
E. closing costs.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 3 Hard
Topic: Evidence-Based Decision Making

Feedback: Decision makers typically want to appear rational and effective. One such impression-management tactic is to demonstrate the importance
of a decision by continuing to invest in it, whereas pulling the plug symbolizes the project's failure and the decision maker's incompetence. This self-
justification effect is particularly evident when decision makers are personally identified with the project, have staked their reputations to some extent
on the project's success, and have low self-esteem.

75. What could Sarine have done differently in order to avoid this escalation of commitment with her decisions?
A. Ensure that the people who evaluate the decisions are the people who originally made them.
B. Privately establish a preset level at which the decision is abandoned or reevaluated.
C. Find a source of systematic and clear marketing.
D. Involve several people in the evaluation of the decision.
E.Obtain funding from other sources instead of her family.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 3 Hard
Topic: Evidence-Based Decision Making

Feedback: One of the most effective ways to minimize escalation of commitment and confirmation bias is to ensure that the people who made the
original decision are not the same people who later evaluate that decision. A second strategy is to publicly establish a preset level at which the
decision is abandoned or reevaluated. A third strategy is to find a source of systematic and clear feedback. A fourth strategy to improve the decision
evaluation process is to involve several people in the evaluation.

76. If Sarine had built several low-cost prototypes to test, she would have been able to test which rule of design thinking?
A. human rule
B. ambiguity rule
C. re-design rule
D. tangible rule

7-18
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
E. creative process rule

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 3 Hard
Topic: Decision Making

Feedback: Design thinking spends less time planning and more time doing. Designers build several low-cost prototypes of their ideas rather than
analyze those ideas at a purely conceptual level. Prototypes represent a rich form of communication that does not exist in conceptual planning. One
design-thinking mantra is "fail fast, fail often," meaning that prototypes are made quickly and frequently along the journey to the final result. This
statement also recognizes that design thinking tolerates failure and embraces a learning orientation.

Scenario B
Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors. He has
several choices and has done research into which company provides the best services and products. One company is known to be extremely timely,
another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available.

77. According to the rational decision-making process, Alvin should select the vendor that offers the most
A. discounts.
B. deliveries.
C. satisfaction.
D. expectancy.
E. quality.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 3 Hard
Topic: Rational Choice Paradigm

Feedback: A rational-choice decision maker would choose the supplier that will give the company the greatest satisfaction. This is calculated by
multiplying the valence of each outcome with the probability of that outcome occurring, then adding those results across all three outcomes. The
supplier with the higher score is the better choice, given available information. The key point from this example is that all rational decisions rely
primarily on two pieces of information: (a) the probability that each outcome will occur and (b) the valence or expected satisfaction of each outcome.

78. According to the rational choice decision-making process, the first step in solving this problem would be
A. choosing the best decision process.
B. evaluating the decision inputs.
C. researching the problem.
D. identifying the problem or opportunity.
E. researching and evaluating the decision inputs.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 3 Hard
Topic: Rational Choice Paradigm

Feedback: The first step in the rational choice decision-making process is to identify the problem or recognize an opportunity. A problem is a
deviation between the current and the desired situation—the gap between "what is" and "what ought to be."

79. Once Alvin makes the choice and contracts with the vendor, he will still need to
A. implement the best decision process.
B. evaluate the selected choice.
C. develop possible choices.
D. research the problem.
E. seek out additional vendors.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The final step is to evaluate whether the gap has narrowed between “what is” and “what ought to be.” Ideally, this information should
come from systematic benchmarks so that relevant feedback is objective and easily observed.
7-19
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Scenario C
George is a manager for InnoBLAST Inc., a web-based applications company. In an attempt to promote new ideas, George decides to allow his
engineering team to devote 15 percent of their work time to whatever projects they would like to work on and reduces their assigned workload. He
then institutes a 30-minute period each morning where the team members are asked to look over their current project list for the day and develop
more knowledge about a task before they move on to work on their assigned tasks.

80. George is attempting to promote


A. employee relations.
B. employee creativity.
C. employee work/life balance.
D. a learning-oriented culture.
E. task orientation.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Creativity is the development of original ideas that make a socially recognized contribution. Creativity is at work when imagining
opportunities, such as how a company's expertise might be redirected to untapped markets. Creativity is present when developing alternatives, such
as figuring out new places to look for existing solutions or working out the design of a custom-made solution. The value of creativity in decision
making is evident at Google, the Internet search engine company. Google's creative culture includes a natural practice of experimenting with ideas
and seeking out different uses of technology. Perhaps most famous is the company's policy of giving engineers 20 percent of their time to develop
projects of their choosing.

81. The 30-minute time period set aside each morning by George should help promote which stage of the creative process?
A. preparation
B. incubation
C. illumination
D. verification
E. both preparation and incubation

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 3 Hard
Topic: Decision Making

Feedback: The first stage is preparation—the process of investigating the problem or opportunity in many ways. Preparation involves developing a
clear understanding of what you are trying to achieve through a novel solution and then actively studying information seemingly related to the topic.
It is a process of developing knowledge and possibly skills about the issue or object of attention. The second stage, called incubation, is the period of
reflective thought. We put the problem aside, but our mind is still working on it in the background.

82. George decides to do a _____ before encouraging the team to develop their own ideas.
A. task orientation
B. groupthink
C. learning orientation
D. cross-pollination
E. human rule test

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: One of the most important conditions for creativity is a learning orientation. The workplace supports a learning orientation when
reasonable mistakes are tolerated and expected as part of the discovery process. A second condition for creativity is motivation from the job itself.
Employees tend to be more creative when they believe their work benefits the organization and/or larger society (i.e., task significance) and when
they have the freedom to pursue novel ideas without bureaucratic delays (i.e., autonomy). Creativity is about changing things, and change is possible
only when employees have the authority to experiment. More generally, jobs encourage creativity when they are challenging and aligned with the
employee’s knowledge and skills.

Scenario D

7-20
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Dora and Keith are managers at ABC Corporation. Keith is having problems in his department with a lack of innovation. In response, he consults the
corporate procedures manual and speaks with his boss about the right way to solve the problem. Dora is also having a similar problem in her own
department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to
deal with the problem.

83. Keith is an example of a(n) ________________ thinker.


A. divergent
B. innovative
C. procedural
D. convergent
E. illumination

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Convergent thinking is calculating the conventionally accepted "right answer" to a logical problem.

84. Dora is an example of a(n) _______________ thinker.


A. divergent
B. innovative
C. procedural
D. convergent
E. illumination

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

Feedback: Incubation assists divergent thinking—reframing the problem in a unique way and generating different approaches to the issue.

Scenario E
Selene and Rita are both engineers at a highly innovative technology company. They are both very creative people. Selene has 15 years of
engineering background, a high need for achievement, and strong task motivation, whereas Rita prides herself on her high openness to experience,
strong self-direction, and ability to evaluate the potential usefulness of ideas.

85. According to the characteristics of creative people, which areas are Selene's strongest?
A. independent imagination and experience
B. persistence and practical intelligence
C. cognitive and practical intelligence
D. experience and persistence
E. experience only

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 3 Hard
Topic: Decision Making

Feedback: Creative people have persistence, which includes a higher need for achievement, a strong motivation from the task itself, and a moderate
or high degree of self-esteem. Creative people also benefit from a foundation of knowledge and experience to discover or acquire new knowledge.

86. According to the characteristics of creative people, which areas are Rita's strongest?
A. independent imagination and experience
B. persistence and practical intelligence
C. cognitive and practical intelligence
D. experience and persistence
E. intelligence and independent imagination

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 3 Hard

7-21
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Topic: Decision Making

Feedback: Creative people have above-average intelligence to synthesize information, analyze ideas, and apply their ideas. Creative people also
possess a cluster of personality traits and values that support an independent imagination: high openness to experience, moderately low need for
affiliation, and strong values around self-direction and stimulation.

Scenario F
The Braided Bread company is struggling with how to break into the bagel market. They see this as an opportunity for growth, as it would not require
any new machinery. The downside is that there is already a bagel shop in town.

87. Since Braided Bread has identified the problem, their next step is to
A. choose the best decision process.
B. develop possible choices.
C. select the choice with the highest value.
D. implement the selected choice.
E. evaluate the selected choice.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The second step involves choosing the best decision process. This step is really a meta-decision—deciding how to decide—because it
refers to choosing among the different approaches and processes to make the decision.

88. Braided Bread has selected a choice and now needs to


A. choose the best decision process.
B. develop additional possible choices.
C. implement the selected choice.
D. discover alternative choices.
E. evaluate the selected choice.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The fifth step is to implement the selected alternative. Rational choice decision making assumes that implementation occurs without any
problems.

89. After Braided Bread evaluates the selected choice, the next problem will start with
A. choosing the best decision process.
B. identifying the problem.
C. developing possible choices.
D. selecting the highest value choice.
E. implementing the selected choice.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

Feedback: The first step is to identify the problem or recognize an opportunity.

90. Describe the rational choice paradigm of decision making.

According to the rational choice paradigm of decision making, people rely on logic to evaluate and choose alternatives. This paradigm assumes that
decision makers have well-articulated and agreed-on organizational goals, efficiently and simultaneously process facts about all alternatives and the
consequences of those alternatives, and choose the alternative with the highest payoff.

The first step is to identify the problem or recognize an opportunity. A problem is a deviation between the current and the desired situation—the gap
between "what is" and "what ought to be." An opportunity is a deviation between current expectations and a potentially better situation that was not
previously expected.

7-22
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Next, the decision maker chooses the best decision style for this problem or opportunity, such as whether to involve others or make the decision
alone, whether to treat the issue as routine or unique, and so on.

Third, the decision maker develops alternative solutions. This involves searching for existing solutions to the problem and possibly designing a
custom-made solution. Fourth, the decision maker chooses the best solution from the available alternatives. This is followed by the process of
implementing the solution. The final stage involves evaluating the implemented decision.
AACSB: Analytical Thinking
Blooms: Remember
Learning Objective: 07-01 Describe the elements of rational choice decision making.
Level of Difficulty: 2 Medium
Topic: Rational Decision-Making Model

91. A large financial institution is losing market share to savvy upstart companies, and it has asked its top marketing executive to identify the main
reasons for their sliding performance. Describe three barriers that might cause the marketing executive to poorly identify the problem(s), and include
an illustrative example for each barrier.

The students could discuss the following problems discussed in the text.
• Stakeholder framing: Several people interviewed by the marketing executive might try to frame their view of the problem to suit their
particular interests. For example, the information technology manager might claim that the bank needs to spend more on IT infrastructure
to satisfy customers' evolving needs.
• Perceptual defense: The marketing executive might ignore or overlook the possibility that some of his or her past decisions caused the
sliding market share, such as a poorly designed advertising campaign.
• Mental models: The marketing executive might have a strong mindset regarding the cause of market share problems, which prevents him or
her from thinking about completely different causes. For example, the executive might have a mental model that market share increases
with advertising expenses.
• Decisive leadership: Managers try to be decisive in their decisions, which cause them to short-circuit the diagnostic stage of problem
identification. The marketing manager might try to look executive savvy by quickly identifying the cause of sliding market share without
actually spending much time investigating various possible causes.
• Defining problems in term of preferred solutions: The marketing manager might have a preferred solution (e.g., spending more on
advertising), and consequently will define the problem as the need for more advertising rather than define the problem as a problem, of
which more advertising might be a solution.
AACSB: Analytical Thinking
Blooms: Apply
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating decision
outcomes.
Level of Difficulty: 3 Hard
Topic: Rational Decision-Making Model

92. What is intuition? What are its major implications in decision making?

Intuition refers to the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning.
Intuition is both an emotional experience and a rapid nonconscious analytic process. It warns us of impending problems. All gut feelings are
emotional signals, but not all emotional signals are intuition. The key distinction is that intuition involves rapidly comparing our observations with
deeply held patterns learned through experience.
AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making.
Level of Difficulty: 2 Medium
Topic: Intuition

93. Describe the four stages of the creative process.

1. Preparation: In this stage, you gather the necessary information and materials and learn about the elements of the problem or issue.
2. Incubation: This is the stage of reflective thought. You put the problem aside, but your mind is still working on it subconsciously.
3. Illumination: At some point during the incubation stage, you become aware of a unique idea. These flashes of inspiration are fleeting and
can be lost quickly if not documented.
4. Verification: Illuminations are merely rough ideas, so you need to develop them through evaluation and experimentation.
AACSB: Analytical Thinking
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

94. WesTech Components wants to hire several people for jobs requiring a high degree of creativity. Identify three individual characteristics that
WesTech should consider when selecting job applicants who have a high potential for creativity.

7-23
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
The textbook describes several characteristics of creative people. Students need to discuss any three characteristics.
1. Cognitive and practical intelligence: Students might identify this general category, but they should discuss one or more of the three specific
intellectual abilities characteristic of creative people. First, creative people have synthetic intelligence by recognizing the significance of
small bits of information and are able to connect them in ways that no one else could imagine. Second, creative people use their analytic
intelligence, their IQ, to evaluate the potential usefulness of their ideas. Third, creative people have practical ability. They can see how their
ideas can be applied in the real world.
2. Knowledge and experience: Employees are more creative when they possess a good foundation of knowledge and experience on the
subject. Some students might also note that lengthy experience isn't always an asset in creativity because it creates mental models that
block alternative ways of seeing the environment.
3. Persistence: Creative people have a high need for achievement and at least a moderate degree of self-confidence. These characteristics
make them persistent in their efforts.
4. Inventive thinking style: Although this is discussed as one characteristic, students might identify specific elements of this as different
characteristics. Creative people think in novel ways rather than following set patterns. They take a broad view of problems, don't like to
abide by rules or status, and are less concerned about social approval of their actions. Creative people are risk-takers. They are not bothered
about working with ambiguous information or issues and are willing to take the chance of making mistakes.
5. Independent imagination: Creative people possess a cluster of personality traits and values that support an independent imagination: high
openness to experience, moderately low need for affiliation, and strong values around self-direction and stimulation.

AACSB: Analytical Thinking


Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

95. A consumer products company wants more creativity in its research and development operations. The company has spent large amounts of
money on creativity training sessions that have helped somewhat, but the VP of research and development believes that the fundamental conditions
must be altered to foster more creativity. Describe three conditions (other than training) that this organization should establish to increase the level of
creativity in its research and development operations. Briefly explain how each condition might improve creativity.

This question asks students to identify specific conditions that support creativity. The textbook identifies three broad categories of conditions, but
students tend to present more specific strategies, often more than one in each category.

• Learning orientation: One of the most important conditions is that the organization has a learning orientation; that is, leaders recognize that
employees make reasonable mistakes as part of the creative process.
• Intrinsically motivating work: This relates back to most of the job characteristics (Chapter 6), including task significance, autonomy, and
feedback from the job as well as other sources. Other work conditions are self-set creativity goals, feedback, and other elements of self-
leadership. The textbook also explains that creativity occurs during a state of "flow," where job challenges are aligned with the employee's
competencies.
• Organizational support: This includes free-flowing communication, sufficient resources, maintaining a reasonable level of job security,
receiving some pressure to perform, and having trust in colleagues.
AACSB: Analytical Thinking
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 3 Hard
Topic: Decision Making

96. Creative Finance Ltd. wants to introduce practices that would enhance creativity, among employees in solving some of the financial institution's
ongoing work process problems. Identify and describe three types of activities that encourage creativity including a specific example of things that
might be done in each activity.

The three main types of creative practices are presented below, along with specific activities. Students should identify one for each type of practice.

1. Redefining the problem: Creativity experts have suggested various ways to help people to redefine problems. Employees might be
encouraged to revisit old projects that have been set aside. After a few months of neglect, these projects might be seen in new ways.
Another strategy involves asking people unfamiliar with the issue (preferably with different expertise) to explore the problem with you.
You would state the objectives and give some facts and then let the other person ask questions to further understand the situation.
2. Associative play: Associative play activities include object-oriented chain stories, taking art classes, viewing problems through metaphors,
and morphological analysis.
3. Cross-pollination: This is accomplished by having employees from different work areas work together on the problem. Cross-pollination
also occurs through formal information sessions, where people from different parts of the organization share their knowledge.
AACSB: Analytical Thinking
Blooms: Apply
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
Level of Difficulty: 2 Medium
Topic: Decision Making

7-24
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
97. As director of new projects, you have just learned that cash flow problems have forced your organization to cut back product development
activities. This means that two of the eight projects currently being developed must be terminated, along with the employees working on those
projects (about 25 percent of employees in your unit). You have a good knowledge of these projects, as well as the performance and seniority of
employees who work in your unit. While some projects clearly have a high chance of success, the long-term potential of a couple of them is
unknown. Identify the best level of employee involvement in this situation, and describe three factors (contingencies) that support this level of
involvement.
This question requires students to consider any three of the four contingencies of employee involvement described in the textbook. One contingency
(risk of conflict) has two elements that can be considered separate factors.

1. Decision structure: This problem is unique, so it lacks structure. As a nonprogrammed decision, this problem has the potential need for
employee involvement.
2. Source of decision knowledge: It seems that you have sufficient information about most aspects of this situation. You don't know the
feasibility of some projects, but neither do employees. Thus, a low level of involvement is possible. The brief description suggests that
employees have no more information than you do. Thus, a low level of involvement is possible.
3. Decision commitment: There is a high probability that if you make the decision yourself, employees will follow the decision because you
would have legitimate power to lay off redundant employees. Thus, a low level of involvement is possible.
4. Risk of conflict: (a) Given that some employees will be laid off, it is unlikely that employee goals are compatible with organizational goals
here. Thus, a low level of involvement is preferred. (b) Given the threat of layoff, subordinate conflict among the alternatives is high. Thus,
a low level of involvement is preferred.
AACSB: Analytical Thinking
Blooms: Apply
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Level of Difficulty: 3 Hard
Topic: Employee Engagement

Category # of Questions
AACSB: Analytical Thinking 74
AACSB: Knowledge Application 23
Accessibility: Keyboard Navigation 89
Blooms: Apply 21
Blooms: Remember 33
Blooms: Understand 43
Learning Objective: 07-01 Describe the elements of rational choice decision making. 17
Learning Objective: 07-02 Explain why people differ from rational choice decision making when identifying problems/opportunities, evaluating
/choosing alternatives, and evaluating decision outcomes. 20
Learning Objective: 07-03 Discuss the roles of emotions and intuition in decision making. 19
Learning Objective: 07-04 Describe employee characteristics, workplace conditions, and specific activities that support creativity. 30
Learning Objective: 07-05 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee
involvement. 11
Level of Difficulty: 1 Easy 19
Level of Difficulty: 2 Medium 63
Level of Difficulty: 3 Hard 15
Topic: Bounded Rationality 1
Topic: Conceptual Skills 1
Topic: Decision Making 32
Topic: Employee Engagement 7
Topic: Evidence-Based Decision Making 5
Topic: Intuition 8
Topic: Organizational Commitment 5
Topic: Rational Choice Paradigm 7
Topic: Rational Decision-Making Model 31

7-25
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Another random document with
no related content on Scribd:
Philadelphia of 1787. As we have just lived through all that period
with them, we are in a wonderful position to read it and understand it
as they understood it. Moreover, we are in a wonderful position to
listen to the statements of the men in those “conventions.” In those
statements, whether by advocates or opponents of the Constitution,
we shall find the invincible negation—without one dissent—of the
absurd assumption that Madison’s Fifth Article is a “grant” of any
ability to make Articles. In those statements, we shall find all
discussion of that Fifth Article centering upon the one question, i.e.,
whether it provides a practical mode of procedure in which the
exclusive ability of the “people” or “conventions” can defend
individual rights by withdrawal of some part of the power of
interference therewith granted in the First Article. Mason had pointed
out at Philadelphia that the procedural provisions of the Fifth Article
—and it consists entirely of procedural provisions for the exercise of
existing powers—left the drafting and proposal of Amendments
entirely to governments. For which reason, in the “conventions,”
Henry and all the great opponents of the Constitution argued that, if
the individual Americans found the granted national powers of the
First Article dangerous to human liberty, the “people” or
“conventions” would never get the constitutional opportunity to
exercise their ability to withdraw.
“You”—the “you” being the individual Americans assembled in one
convention—“therefore, by a natural and unavoidable implication,
give up your rights to the general government.... If you give up these
powers,” the enumerated powers of the First Article, “without a bill of
rights, you will exhibit the most absurd thing to mankind that ever the
world saw—a government that has abandoned all its powers—the
powers of direct taxation, the sword, and the purse. You have
disposed of them to Congress, without a bill of rights—without check,
limitation, or control. And still you have checks and guards; still you
keep barriers—pointed where? Pointed against your weakened,
prostrated, enervated state government! You have a bill of rights to
defend you against the state government, which is bereaved of all
power, and yet you have none against Congress, though in full and
exclusive possession of all power! You arm yourselves against the
weak and defenseless,” the state legislatures mentioned in the Fifth
Article, “and expose yourselves naked to the armed and powerful. Is
not this a conduct of unexampled absurdity?”
So thundered Henry in the Virginia convention. (3 Ell. Deb. 446.)
“To encourage us to adopt it, they tell us that there is a plain, easy
way of getting amendments. When I come to contemplate this part, I
suppose that I am mad, or that my countrymen are so. The way to
amendment is, in my conception, shut. Let us consider this plain,
easy way.” Then follows the verbatim statement of the Madison Fifth
Article as proposed from Philadelphia. “Hence it appears that three
fourths of the states must ultimately agree to any amendments that
may be necessary. Let us consider the consequence of this.
However uncharitable it may appear, yet I must tell my opinion—that
the most unworthy characters may get into power and prevent the
introduction of amendments. Let us suppose—for the case is
supposable, possible, and probable—that you happen to deal those
powers to unworthy hands; will they relinquish powers already in
their possession, or agree to amendments? Two thirds of the
Congress, or of the state legislatures, are necessary even to
propose amendments.... To suppose that so large a number as three
fourths of the states will concur is to suppose that they will possess
genius, intelligence, and integrity, approaching to miraculous. It
would indeed be miraculous that they should concur in the same
amendments, or even in such as would bear some likeness to one
another; for four of the smallest states, that do not collectively
contain one tenth part of the population of the United States, may
obstruct the most salutary and necessary amendments. Nay, in
these four states, six tenths of the people may reject these
amendments.... So that we may fairly and justly conclude that one
twentieth part of the American people may prevent the removal of
the most grievous inconveniences and oppression, by refusing to
accede to amendments. A trifling minority may reject the most
salutary amendments. Is this an easy mode of securing the public
liberty? It is, sir, a most fearful situation, when the most contemptible
minority can prevent the alteration of the most oppressive
government; for it may, in many respects, prove to be such.” (3 Ell.
Deb. 48.)
So thundered Henry against the weakness of the Madison
procedure in which only by proposal from governments could there
be constitutionally evoked the exclusive ability of the citizens of
America to dictate how much power to interfere with individual
freedom should be left for the citizens of each state to use in
governing themselves, and how much power of that kind should be
retained by the individual people of America themselves. Henry was
opposing a Constitution in which the individual people of America
were dictating that their general government, the Congress, should
have only the enumerated powers of that kind which are in the First
Article. In it, they were dictating that each state government, except
as the American people forbade it, should have just so much of that
kind of power as the citizens of that particular state should grant that
government. And in it, they were dictating that the people of America
themselves, the most important factor and reservee of the Tenth
Amendment, should retain all other power of that kind to be granted
only by themselves, the “conventions” of the Madison Fifth Article.
Throughout all his thunder against that Constitution, Henry, like
every other opponent of that Constitution, never questioned that this
was the exact distribution of power to interfere with individual
freedom which was dictated in the Constitution. His only complaint,
and their only complaint, was that the Madison Fifth Article, because
its constitutional procedure could only be evoked by a proposal from
governments, was no protection to human liberty against the granted
power of that kind in the First Article. The absurd thought of our
modern “constitutional” thinkers (contradicting the plain statement of
the Tenth Amendment and contradicting everything that was said in
the “conventions” that made the Fifth Article) is that the Article itself
is a “grant” of omnipotent power to governments (the legislative
governments of the states) to interfere with individual freedom. When
we contrast the knowledge of Henry and his colleagues with the
modern absurdity, we echo Henry’s words and exclaim, “We
suppose that we are mad, or that our modern constitutional thinkers
are so.” If Henry had read into that Fifth Article, if the opponents of
the proposed Constitution had read into it, any “grant” of ability to
state governments, certainly it was an absurdity for him to refer to
those governments as “weakened, prostrated, enervated” by the
proposed Constitution.
And so, educated in the experience of those Americans who
assembled in those “conventions” named in the Seventh and Fifth
Articles, we sit with them in the conventions of that earlier day and
read that Fifth Article with them, while they decide to make it with the
six other Articles. Living through their experience, like them we have
become “a people better acquainted with the science of government
than any other people in the world,” so far as government is intended
to secure individual liberty and happiness. When we sit with them,
we intend not to forget, as they never did forget in those
conventions, that this was the sole purpose of the Constitution they
considered and made, the purpose of securing individual liberty and
happiness. In this respect, they differed in their whole philosophy of
government with the new school of thought that, in our day, has its
different manifestations of exactly the same philosophy of
government on the part of the Bolshevik in Russia and the minority in
America which has dictated that government enactment of the new
constitution of government, known as the Eighteenth Amendment.
The Americans of ’76 and ’87 set the individual liberty and
freedom of man above everything in this world except the Divine Will
of the Creator of man. In the Preamble of their Constitution, they
echo the declarations of their Statute of ’76. Their creed was that the
laws of right and wrong are immutable; that the Creator made the
individual man and granted human freedom to him; that such
freedom is inherently subject only to the Divine Will, the immutable
law of right and wrong, but that it may voluntarily become subject, by
the will of the individual man, to the exercise of powers of
interference which only he and his fellow men themselves can ever
validly grant to government.
“But what is government itself, but the greatest of all reflections on
human nature? If men were angels, no government would be
necessary. If angels were to govern men, neither external nor
internal controls on government would be necessary. In framing a
government which is to be administered by men over men, the great
difficulty lies in this: You must first enable the government to control
the governed; and in the next place, oblige it to control itself.”
(Madison or Hamilton, Fed. No. 51.)
When we sit in the conventions of 1787 and 1788 with the
Americans who had this common concept of the only purpose of
government of men, their concept is our own as we read with them
the language of the Fifth Article. And it is impossible for us, as it is
impossible for them, to find concealed in that language the thought
of a “grant” to government, a “grant” which would challenge this
concept of the very purpose of government. They are sitting in
“conventions” assembled to determine whether American individuals
will enter into the new society of men, which is to be America. They
have received the Fifth Article from Americans in Philadelphia, who
have accompanied the proposal of that Fifth Article with a letter
which states, “Individuals entering into society must give up a share
of liberty, to preserve the rest.” This statement is recognized by the
Americans, in the “conventions” where we sit, as the exact statement
of the concept of the sole purpose of a government of men. With that
concept and that letter before us, how can we or the Americans with
whom we sit find in the Fifth Article the remarkable idea that
Americans, entering the society of America, are to give up all their
liberties to the state governments in order that Americans may
preserve the rest of their liberties?
In these modern days, however, there has asserted itself, in
Bolshevik Russia and in the America of which we are the citizens,
two distinct manifestations of an entirely different concept of the
purpose of government than was the concept of the Americans in the
“conventions.” Although the manifestation of the new concept by the
Bolshevik in Russia has been different from the manifestation of the
new concept by an aggressive and organized minority in America,
the new concept, at the bottom of each manifestation, is exactly the
same. It is the concept that the purpose of constituting a government
of men is to secure the welfare of the state or community or nation
and not the liberty and happiness of the individuals who compose
the nation. This is the exact concept of the Bolshevik Russian and
the Eighteenth Amendment American. To neither of them would the
words of that letter from Philadelphia convey the slightest meaning,
the words “individuals entering into society must give up a share of
liberty, to preserve the rest.” In their mutual concept, the individual
has no liberty which government need respect. In the Bible of their
concept, men cannot find the words which declare the basic
American principle, that every just power of government must come
from the individuals who are to be governed by its exercise. It is,
however, a misnomer to call this common concept of the Bolshevik
Russian and the Eighteenth Amendment American a new concept. It
is identical with the old concept known as “Socialism,” the concept
that community welfare, the prosperity and power and strength of a
nation, are more important things than individual liberty and
happiness and enjoyment of human freedom. It is a concept which
sets the state (a political entity created by men) and the welfare of
the state above what the Americans of ’76 and ’87 knew and
proclaimed to be superior to all human creations, namely, the
individual man, the noblest creation of the Divine Creator. In other
words, the common concept of the Bolshevik Russian and the new
Amendment American is but the reaction to the century-old concept
whose repudiation was the main theme of the Declaration of
Independence, the concept that individual men, the creation of God,
are made for kings or governments or political entities.
To those who hold such a concept there comes no shock when
they are asked to imagine that the language of the Fifth Article
implies a grant of ability to the state governments to do what those
governments will with the liberties of the citizens of America. But we
are sitting in “conventions” of Americans of a different type,
Americans who, eleven years earlier, have repudiated forever the
concept that men are made for kings or governments or political
entities. And, if we wish to know what the Americans in these
conventions think of the concept of the Bolshevik Russian and the
Eighteenth Amendment American, we get our wish from the man
who wrote the language of the Fifth Article.
“We have heard of the impious doctrine in the Old World,” the
reactionary doctrine of modern Russia and of our own aggressive
minority, manifested in two different disguises, “that the people were
made for kings, not kings for the people. Is the same doctrine to be
revived in the New, in another shape—that the solid happiness of the
people is to be sacrificed to the views of political institutions of a
different form?... As far as the sovereignty of the states can not be
reconciled to the happiness of the people, the voice of every good
citizen must be, Let the former be sacrificed to the latter. How far the
sacrifice is necessary, has been shown. How far the unsacrificed
residue will be endangered, is the question before us.”
This is the language of Madison, in The Federalist, Number 45,
asking the individual Americans to make the Constitution to secure
their individual happiness. It will amaze us later herein to hear the
thought of our modern “constitutional” thinkers that his Fifth Article
makes the state governments (from whom that Constitution took
sovereignty to secure the individual happiness of the American
citizen) a supreme and omnipotent government of the American
citizens, a government knowing no will but its own. Meanwhile let us
forget this latter day nonsense and breathe again the real American
atmosphere, where individuals, entering a society, give up a share of
their liberty, to preserve the rest. Let us sit with the real
“constitutional” thinkers of America as they sat in the conventions
and read with them the Fifth Article worded by Madison. This is what
they read:
ARTICLE V
The Congress, whenever two thirds of both Houses shall
deem it necessary, shall propose Amendments to this
Constitution, or, on the Application of the Legislatures of two
thirds of the several States, shall call a Convention for
proposing Amendments, which, in either Case, shall be valid
to all Intents and Purposes, as Part of this Constitution, when
ratified by the Legislatures of three fourths of the several
States, or by Conventions in three fourths thereof, as the one
or the other Mode of Ratification may be proposed by the
Congress; Provided that no Amendment which may be made
prior to the Year One thousand eight hundred and eight shall
in any Manner affect the first and fourth Clauses in the Ninth
Section of the first Article; and that no State, without its
Consent, shall be deprived of its equal Suffrage in the Senate.
Sitting with these Americans, in their “conventions,” we note
immediately, as they note, that the Article names themselves. And
we note, as they note, that it names themselves, the individual
American citizens, the “people” of the Preamble and the Tenth
Amendment, by exactly the same name, “conventions,” as in the
Seventh Article and as in the Resolution of the Philadelphia
Convention, which proposed the only valid mode of ratification for
the constitution of government of men in the First Article, the mode
which required ratification by the individual Americans themselves,
the “conventions” of the Seventh and the Fifth Articles. We cannot
help noting it—as we intend never to forget it—because we are
sitting with them, as the people of America, in the very “conventions”
so named in the Seventh Article.
Having their vital and accurate knowledge of the difference
between federal and national Articles, that only the latter kind
exercises or grants power to interfere with individual human
freedom, we recognize at once why the state legislatures are also
mentioned in the Fifth Article, although they never can make national
Articles. We know it is because those “legislatures,” as the Tenth
Amendment expressly declares, retain their existing ability to make
federal Articles or Articles which neither exercise nor grant power to
interfere with individual freedom. And, sitting in those “conventions,”
where Hamilton also sits, we recall his remarkable prophecy, just
made to us in The Federalist, as we were about to enter the
“conventions” with the other Americans therein. “For my own part, I
acknowledge a thorough conviction that any amendments which
may, upon mature consideration, be thought useful, will be
applicable to the organization of the government, not to the mass of
its powers.” (Fed. No. 85.) In that absolutely accurate advance
knowledge of the complete history of constitutional amendment from
1789 to 1917, we recognize the motive which prompted Madison and
Hamilton, on September 10, 1787, to add the mention of those
legislative governments to the Fifth Article mention of the exclusive
ability of the people or “conventions” to make all future Articles which
do relate to the “mass of its powers” to interfere with individual
freedom conferred upon the one government of America. We
understand that these legislative governments are mentioned in the
Fifth Article, which we are now reading in the “conventions” of old,
because those “legislatures” have an existing ability to make federal
Articles which relate to other things than the national power of
government to interfere with individual freedom.
Having thus satisfied ourselves, in those conventions, that we
ourselves, the “people” of America, are mentioned in the Fifth Article
as the sole makers of any future Article which exercises or grants
power to interfere with our individual freedom, we turn with interest to
the procedure which the Article establishes as the only constitutional
mode of procedure in which that exclusive ability of our own may
hereafter be evoked to exercise and be exercised.
From the language of the Article itself, we know at once that it is
simply the statement of a mode of procedure in which our own
unlimited ability or the limited ability of the state legislatures, when
the occasion seems to arise for the respective exercise of either
ability, are hereafter to be evoked by some body of men, playing the
part which the Philadelphia Convention has just played in evoking
our own exclusive ability, the ability of the “people” or “conventions.”
Outside the language of the Fifth Article itself, many other things
make that fact clear to us. For instance, we recall what Madison has
just told us. He had written this Article at Philadelphia. Then, asking
the American people to prescribe this constitutional mode of
procedure for the future exercise of either respective existing ability,
he has explained to us, just before the convention in which we sit,
what the Fifth Article means.
“That useful alterations will be suggested by experience, could not
but be foreseen. It was requisite, therefore, that a mode for
introducing them should be provided. The mode preferred by the
Convention seems to be stamped with every mark of propriety. It
guards equally against that extreme facility, which would render the
Constitution too mutable; and that extreme difficulty, which might
perpetuate its discovered faults. It, moreover, equally enables the
general and State governments to originate the amendment of
errors, as they may be pointed out by the experience on one side, or
on the other.” (Fed. No. 43.).
Sitting in the conventions of more than a century ago, we are
naturally uninfluenced (in our reading of plain English) by the story of
a century which has not even yet begun, the century that later began
in 1800. And so we get from his own words the knowledge that the
author of the Fifth Article knew it to be nothing but a constitutional
mode of procedure, for the future exercise of either ability to make
Articles. We see that the mode leaves with either “the general and
state governments” the ability to propose an Amendment to those
with existing power to make the particular proposed Amendment.
And we note, with intent to remember, that the author of the Fifth
Article, while he tells us about this reservation of existing abilities to
propose amendments, pointedly does not tell us that the Article
grants any power to any government or governments to make
Amendments. In other words, we know that the Fifth Article reserves
to the general government and to the state governments exclusively
what otherwise they and every one else would have had—what
Madison himself called “the unauthorized privilege of any
respectable citizen or body of citizens”—the ability to propose, but
that it does not grant to any of those governments or all of them
collectively the ability which none of them ever had or can have, the
ability to make, constitutional Articles of a national kind, which relate
to interference with individual freedom. With this knowledge
confirmed by the clear statement of the author of the Fifth Article, we
read with interest its procedural provisions about the originating of
new Articles, about their drafting and their proposal and the proposal
of a mode of ratification for them, after they have been drafted and
their nature has determined who can make them.
Sitting in those conventions of old, we are in the company of many
of the men who were at the Philadelphia Convention. In Virginia we
see Madison and Randolph and Mason and others; in New York we
see Hamilton and others; in Pennsylvania we see Wilson and others;
in South Carolina we see the Pinckneys and others. That is our
experience in all the conventions. On all sides, among the American
people assembled therein, are those familiar with and talking about
the work at Philadelphia and the great debate there, in which was
ascertained, from the character of the Articles drafted there, which
maker of Articles, the state legislatures, with their existing ability to
make federal Articles, or the “people” themselves, the “conventions,”
with their existing unlimited ability to make all Articles, could make
the Articles drafted and about to be proposed. These men, by their
presence and their words, remind us how the nature of their First
Article, the fact that it constituted government to interfere with human
freedom, compelled the announcement of the decision that
legislative governments could never make that kind of an Article.
These men, by their presence and their words, remind us how they
reached the ascertainment of the fact which compelled their
Proposing Resolution to propose a mode of ratification by the
“people” themselves, by the “conventions” of the Seventh and the
Fifth Articles. They remind us, as one of the men with us later said in
the Supreme Court, that all assembled in our “conventions” feel and
acknowledge the legal necessity that every power to interfere with
individual freedom must be derived by direct grant from the people.
And, sitting in those conventions with them, where we all read the
Fifth Article they are asked to make, we recognize with certainty that
it prescribes that the Congress shall do exactly what the Philadelphia
Convention has just done—propose, and nothing more.
The words of the Fifth Article tell us that only Congress shall draft
and propose a new Article, just as the Philadelphia Convention
drafted and proposed its new Articles; that, after Congress has
drafted its new Article and is about to propose it, just as the
Philadelphia Convention did, when it exercised no power at all,
Congress shall examine carefully the nature of the drafted Article
and, having ascertained by such examination which existing ability to
make Articles (the limited ability of legislative governments or the
unlimited ability of the “people” or “conventions”) is competent to
make that particular Article, Congress shall propose ratification by
the ability which can make the proposed Article.
We are not misled because the Article prescribes this one
constitutional mode to evoke the existing limited ability or the existing
unlimited ability. Providing a constitutional mode for the exercise
of either does not lessen one ability or increase the other. By reason
of our education, we know the difference between the revolutionary
exercise of existing power and the constitutional exercise of existing
power. Because we have become of the “people better acquainted
with the science of government than any other people in the world,”
we know that to do something in a revolutionary manner does not
necessarily mean to do it by bloodshed or on the battle-field. We
know that to do something in a revolutionary manner means to do it
outside of any legally prescribed mode of procedure for the exercise
of existing power. We know that to do the same thing, in a
constitutional mode, is to do it in some mode prescribed by human
law or constitution. And that is why we understand, as did the men
with whom we are sitting in those conventions, that Congress, in the
future, is to do exactly what the Philadelphia Convention did and
nothing more. Congress is to do it constitutionally (where the
Philadelphia Convention did it outside of any human law and in a
revolutionary manner) because the Fifth Article commands that
Congress alone shall do it. Congress, when doing it, will be
exercising no power. The Philadelphia Convention exercised no
power when it did exactly the same things. And, when Congress
does it, Congress will be bound, as Philadelphia was bound, to
ascertain and propose the mode of ratification by which the
proposed Article will be ratified by ratifiers competent to make that
particular kind of an Article.
As we sit in the “conventions” and keep clearly in our mind that the
“conventions” and the “state legislatures” (both of which are
mentioned in the Fifth Article) each have existing but very different
abilities to make Articles, every part of the language of the Fifth
Article confirms our knowledge that the whole Article is no “grant” of
power but is a “constitutional” mode for the exercise of existing
powers.
Long after the conventions in which we sit, the Supreme Court
paid the tribute to those who wrote the Fifth Article that they were
“masters of apt, precise and classic English.” Keeping this thought in
mind, our attention is directed to the three-time use of the one word
“propose” in the Fifth Article. We know that to use the same word
three times in one sentence is very poor English unless there is a
distinct and definite intent and purpose that the meaning each time
shall be identically the same. Such definite intent and purpose is the
only deduction from what would otherwise be the inexcusable
tautology of the language of the Fifth Article. So, when we read that
Congress “shall propose amendments” or shall “call a convention for
proposing Amendments” and that “one or the other mode of
ratification may be proposed by the Congress,” we know with
certainty that each use of the word “propose” is intended to convey
an identical shade of meaning. From which we know that, as the
proposal of a new Article (by Congress or a Convention) will be a
mere proposal and will not make the proposed Article valid, so also
the Congress proposal of a mode of ratification will remain a mere
proposal and will not make that proposed mode valid for that
proposed Article, unless its proposed ratifiers are competent to make
that particular kind of an Article. This is what they had just known at
Philadelphia about their own proposals (both of Articles and of mode
of ratification) to us as we sit in the “conventions.” And so, in these
conventions, we know the proposals mentioned in the Fifth Article to
be identical (in nature) with the proposals made from Philadelphia.
We know the procedure outlined in the Fifth Article to be exactly the
same procedure as has just been followed at Philadelphia. We know
that our ratification (in these “conventions”) of that procedure will be
our approval of the procedure they followed at Philadelphia and will
be its prescription as the constitutional procedure hereafter to be
followed when either existing ability, that of the state governments or
that of ourselves in “conventions,” is to be hereafter evoked to
exercise. From all of which we recognize that, if Congress should
propose a mode of ratification by state legislatures and the proposed
Article is a grant of power to interfere with the individual liberty of the
American citizen, the state legislatures will remain just as
incompetent to make that Article as they were known to be at
Philadelphia when Madison and his colleagues held them to be
incompetent to make their proposed Article of that kind, the First
Article. And so we understand that the mere Congress proposal of a
mode of ratification (for such an Article) by state governments will
not give state governments ability to make such an Article.
Sitting in those old conventions, we now have read the procedural
provisions of the Fifth Article up to the point where proposals bring,
in a constitutional manner, a proposed new Article to makers with
existing ability to make the particular Article which has come to them.
We now read with interest the next chronological step of the
procedural provisions, the mention of the two existing makers of
Articles—the state legislatures, makers of federal or declaratory
Articles, and the “conventions” of the American citizens, makers of
any Article.
We are actually sitting in “conventions” identical with those named
in the Fifth Article. We are in the “conventions” mentioned in the
Seventh Article and named therein by exactly the same word as is
used in the Fifth Article, the word “conventions.” Both Seventh and
Fifth Articles have been worded at Philadelphia. We, assembled in
the “conventions” named in the Seventh Article, are the whole
American people. In our conventions, so assembled, we are to make
both the Seventh and the Fifth Articles, with their common use of
exactly the same word “conventions.” And so we understand, with a
knowledge which nothing can disturb, that the “conventions” of the
Fifth Article mean exactly what the “conventions” of the Seventh
Article mean. Thus we know, with knowledge which nothing can
disturb, that the “conventions,” named in both Articles, are the
American people, only competent makers (in 1787 or at any future
time) of national Articles which interfere with or grant power to
interfere with the individual freedom of the American citizen.
We recall vividly the proposal that came from Philadelphia eleven
years earlier or in 1776, that the Americans in each former colony
constitute a government with such powers to interfere with the
human freedom of its citizens. We recall that such governments
were constituted in what Marshall states to be the only way in which
men can act safely, effectively or wisely, when constituting
government of themselves, namely, by assembling in “conventions.”
We also recall vividly the proposal that came from the same
Philadelphia a year later or in 1777, that the states constitute a
federal government of states. And we recall that the state
legislatures, because they possessed existing ability to make federal
Articles, did validly make the federal Articles suggested in that
proposal.
We also recall, that the new Constitution, which is before us in the
“conventions” named in the Seventh Article, is to be both a national
Constitution, constituting government of men, and a federal
Constitution, constituting government of states. And we recall that
only one of the present Articles in that proposed Constitution, the
First Article, constitutes government of men by granting government
power to interfere with individual freedom. And we recall, with
Hamilton in the Convention beside us, the probability that all future
Articles in that dual Constitution, will probably be of the federal or the
declaratory kind which the existing ability of state legislatures can
make.
And so we understand why Madison and Hamilton, in their Fifth
Article, mention that existing ability of the state legislatures to make
Articles which do not relate to interference with individual freedom,
as well as they mention our own exclusive ability, the ability of the
“conventions” of the American people, to make Articles which do
relate to interference with individual freedom.
And, sitting in those conventions with the “people better
acquainted with the science of government than any other people in
the world,” when we read the language of the Fifth Article, it is
impossible for us to make the monumental error of assuming that the
mention of the two existing abilities adds anything to one or subtracts
anything from the other.
And so, with our minds in those “conventions” free from any
possibility of such monumental error, we now read and clearly
understand the most important words in the constitutional mode of
procedure for existing powers, which we know as the Fifth Article. To
none of the Americans in those conventions is there any doubt, to no
American, who understands what America is, can there ever be any
doubt, what are the most important words. They are the words “in
three fourths thereof” immediately following the words which name
the very kind of “conventions” in which we sit. These words, “by
conventions in three fourths thereof,” bring home to us the marvel of
what our “conventions” are doing.
In them sit the people of America, possessors of the supreme will
in America, assembled in their respective states, as free men and
not as the citizens of the particular state in which each convention of
Americans assembles.
We realize, as the Preamble of the Constitution before us
expressly declares, what is the first proposal upon which we act
affirmatively, when we say “Yes” to the whole proposal from
Philadelphia. The first effect of that “Yes” is that we, that part of the
American people in that particular state, do consent (with the
Americans in eight or more other willing states) to join the new nation
or political society of men, which is to be America, and that we
consent to be, with those other Americans, the citizens of the new
nation as soon as the Americans in eight other willing states give
their similar “Yes.” We are well aware, as we sit in one of the
“conventions,” that the Philadelphia proposal has left it open for the
free Americans in each state to become members or not of the new
society as they please, and that, therefore, the joining of that society,
by the Americans in at least nine states, will mean that the new
nation is created by unanimous action of the majority in every state
whose Americans become citizens of America.
From which we realize that the original grants of national power by
its citizens to the only government of the new nation will be the
second effect of the “Yes” from the Americans in nine conventions.
Thus these original grants, the First Article grants of enumerated
power to interfere with the individual freedom of the American citizen,
will be made simultaneously by the majority of Americans in every
state where Americans become citizens.
But, once these early Americans leave those first “conventions,”
the whole American people will constitute the members or citizens of
the new nation, America.
The people of these United States constitute one nation.
They have a government in which all of them are deeply
interested. (Justice Miller in the Supreme Court, Crandall v.
Nevada, 6 Wall. 35.)
As in any other republican nation, all national powers must be
granted by its members or citizens. Any future national power, not
granted by the citizens themselves, will be neither just nor valid
because power of the American government to interfere with the
freedom of the American citizen will not have been granted by those
to be governed by its exercise.
But, when the whole American people leave these “conventions”
as the united citizens of America, although it will be wise and proper
and necessary that American citizens shall hereafter assemble in
“conventions” in their respective states for the making of new
proposed grants of power to interfere with their freedom, it will no
longer be necessary that a “Yes” from every “convention” should be
given to any future grant of such power. When the whole American
people assembled in those first conventions, a “Yes” from every
“convention” was necessary because that “Yes” meant the
willingness of the Americans in that state to become citizens of
America. But, once they all have become its citizens, it is in that
capacity—and not as citizens of each respective state—that the
American government will interfere with their individual freedom.
And it now dawns upon us, probably for the first time, how
imperative it is that the new Constitution should contain an explicit
command, prescribing how the vote of each “convention” should
count and how many “convention” votes should be sufficient and
necessary for any future proposed grant of power to interfere with
the freedom of American citizens. This brings home to us the
impressive and important meaning of the words “in three fourths
thereof” after the word “conventions” in the Fifth Article.
If they had not been written therein by the genius of the men at
Philadelphia, the method of counting the vote of each “convention”
and the number of “convention” votes constitutionally requisite
hereafter for a new grant of national power would be a matter of
infinite dispute. And so we recognize and pay our tribute, as we sit in
one convention of the first American citizens, to the wonderful
foresight of Madison and Hamilton and their colleagues at the
Philadelphia Convention which has just completed its labors. That
tribute is evoked by the words “three fourths thereof” after the word
“conventions.”
We see that these words end all possibility of dispute in two
important respects where dispute would be certain if the
constitutional mode of procedure did not contain our command
that, when future “conventions” are asked for further grant of power
to interfere with our individual freedom, the “Yes” of each convention
shall count as one “Yes” and a “Yes” from three fourths of the
“conventions” shall be both necessary and sufficient to make a new
grant of such power. And, as we dwell upon these amazingly
important words, their presence in the Fifth Article compels a greater
tribute to the men who wrote them than that demanded by the fact
that this ends the possibility of the disputes we have mentioned. It
grows upon us that these words are among the most important
securities to individual liberty in the whole Constitution. With
increasing admiration for the men at Philadelphia, we sit in those
early “conventions” and recall how much Madison and his colleagues
have just told us in The Federalist about the danger to individual
right from the tyranny of the citizens of a republic themselves,
whether that tyranny is attempted by a majority or an aggressive
minority of such citizens. We recall The Federalist, Number 51, and
its forceful exposition of the merits of the proposed Constitution and
its remarkable distribution of powers (powers granted to the new
government in the First Article, powers left with each state over its
own citizens and powers retained by the American people
themselves) as security for individual rights.
“In the compound republic of America, the power surrendered by
the people is first divided between two distinct governments, and
then the portion allotted to each subdivided among distinct and
separate departments. Hence arises a double security to the rights
of the people.... It is of great importance in a republic not only to
guard the society against the oppression of its rulers, but to guard
one part of the society against the injustice of the other part.
Different interests necessarily exist in different classes of citizens. If
a majority be united by a common interest, the rights of the minority
will be insecure. There are but two methods of providing against this
evil: The one by creating a will in the community independent of the
majority—that is, of the society itself; the other, by comprehending in
the society so many separate descriptions of citizens as will render
an unjust combination of a majority of the whole very improbable, if
not impracticable. The first method prevails in all governments
possessing an hereditary or self-appointed authority. This, at best, is
but a precarious security; because a power independent of the
society may as well espouse the unjust views of the major, as the
rightful interests of the minor party, and may possibly be turned
against both parties. The second method will be exemplified in the
federal republic of the United States. Whilst all authority in it will be
derived from and dependent on the society, the society itself will be
broken into so many parts, interests, and classes of citizens, that the
rights of individuals, or of the minority, will be in little danger from
interested combinations of the majority.... Justice is the end of
government. It is the end of civil society. It ever has been and ever
will be pursued until it be obtained, or until liberty be lost in the
pursuit. In a society under the forms of which the stronger faction
can readily unite and oppress the weaker, anarchy may as truly be
said to reign as in a state of nature, where the weaker individual is
not secured against the violence of the stronger.... In the extended
republic of the United States, and among the great variety of
interests, parties, and sects which it embraces, a coalition of a
majority of the whole society could seldom take place on any other
principles than those of justice and the general good.... It is no less
certain than it is important, understanding the contrary opinions
which have been entertained, that the larger the society, provided it
lie within a practical sphere, the more duly capable it will be of self-
government. And, happily for the republican cause, the practicable
sphere may be carried to a very great extent, by a judicious
modification and mixture of the federal principle.” (Fed. No. 51.)
In those important words of the Fifth Article, “in three fourths
thereof” after the word “conventions,” we now recognize the judicious
mixture of the federal principle in our own command which controls
our future constitutional exercise of our exclusive ability to create
new power to interfere with our individual freedom.
These words do not challenge or disturb the legal American
necessity that our American government must get any new power of
that kind from us ourselves, assembled in our “conventions.” But,
with a practical wisdom never exceeded in framing the “constitution”
of a self-governing nation, these words impose an amazingly
effective check upon the existing ability of a majority or aggressive
minority, in the republic which is America, to interfere with individual
rights. These words do not attempt to destroy or alter that existing
ability of the citizens of the new republic. On the contrary, these
words recognize the existence of that ability. But, with the wisdom
which means so much security to every individual right in America,
these words make it impossible that such ability can be
constitutionally exercised unless a majority or an aggressive and
organized minority, when seeking new government power to interfere
with the individual freedom of the American citizen, obtain a majority
support from the American citizens residing in every one of three
fourths of the state in America.
Leaving (just for a moment) the conventions of the old days, we of
this generation realize with gratitude the check so provided. We
understand now, as we never understood before, why the organized
minority which demanded that government write the new
Amendment into our Constitution was driven by this constitutional
check to ignore the plain fact that the new Amendment can never
validly be put into the Constitution (if we still are citizens and not
subjects) unless a “Yes” from the “people” themselves, the
“conventions” of the Fifth Article, is obtained from three fourths of
those “conventions.” We realize that the organized minority in
question must support their proposition on the concept that Madison
and Hamilton, who introduced and seconded the Fifth Article at
Philadelphia, intended that Article “to create a will in the community”
(which is America) “independent” of the supreme will of the American
people themselves, intended it to create that anomaly of a superior
will to the supreme will and to make that superior will the will of the
legislative governments of a fraction of the states. We refer that

You might also like