Professional Documents
Culture Documents
TRUE/FALSE
2. Decision-making must not be done amid ever-changing factors, unclear information, and conflicting
points of view.
4. Programmed decisions are decisions that are made for situations that have occurred often in the past
and allow decision rules to be developed to guide future decisions.
6. Two employees in Stacey's department quit which is normal for her department. She is faced with the
decision to fill these positions. This would be considered a nonprogrammed decision.
7. Gerald's Groceries and Marty's Market decided to merge their operations. This would be considered a
nonprogrammed decision.
8. WorldCom, a telecommunications company, decided to buy Skytel in 1999. This would be considered
a programmed decision.
9. Uncertainty means that a decision has clear-cut goals, and that good information is available, but the
future outcomes associated with each alternative are subject to chance.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: F PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
10. The main difference between risk and uncertainty is that with risk you know the probabilities of the
outcomes.
12. A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are
difficult to define, and information about outcomes is unavailable refers to ambiguity.
13. The classical decision making model assumes that the decision-maker is rational, and makes the
optimal decision each time.
14. Normative means it defines how a decision maker should make decisions.
15. The political model represents an "ideal" model of decision making that is often unattainable by real
people in real organizations.
16. The administrative model of decision making describes how managers actually make decisions in
difficult situations.
17. Normative decision theory recognizes that managers have only limited time and cognitive ability and
therefore their decisions are characterized by bounded rationality.
18. Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal
decision criteria regardless of whether better solutions are expected to exist.
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19. The administrative model is considered to be normative.
20. Goals often are vague, conflicting, and lack consensus among managers, according to the
administrative model of decision making.
21. According to the administrative model of decision making, managers' searches for alternatives are
limited because of human, information, and resource constraints.
22. Intuition is a quick apprehension of a decision situation based on past experience but without
conscious thought.
23. According to both research and managerial experience, intuitive decisions are best and always work
out.
24. Managers need to take a balanced approach for effective decision making.
25. According to the New Manager Self-Test, linear means to use primarily intuition to make decisions;
nonlinear means using logical rationality to make decisions.
26. The process of forming alliances among managers is called coalition building.
27. The administrative model closely resembles the real environment in which most managers and
decision makers operate.
28. The political model consists of vague problems and goals, limited information about alternatives and
their outcomes, and a satisficing choice for resolving problems using intuition.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: F PTS: 1 DIF: 3 REF: 219
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
29. Nonprogrammed decisions require six steps, however, programmed decisions being structured and
well understood require only one step.
30. Managers confront a decision requirement in the form of either a problem or an opportunity.
31. Once the problem or opportunity has been recognized and analyzed, the decision-maker should
implement the alternative.
32. Step one in the managerial decision-making process is recognition of decision requirement.
33. For a non-programmed decision, feasible alternatives are hard to identify and in fact are already
available within the organization's rules and procedures.
34. For decisions made under conditions of low uncertainty, managers may develop only one or two
custom solutions that will satisfice for handling the problem.
35. The best alternative is the one in which the solution best fits the overall goals and values of the
organization and achieves the desired results using the fewest resources.
36. The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure
that the chosen alternative is carried out.
37. Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased
payoff.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
38. Feedback provides decision-makers with information that can precipitate a new decision cycle.
39. In the implementation stage, decision makers gather information that tells them how well the decision
was implemented and whether it was effective in achieving its goals.
40. Feedback is the part of monitoring that assesses whether a new decision needs to be made.
41. People who prefer simple, clear-cut solutions to problems use the directive style.
42. Managers with an analytical decision style like to consider complex solutions based on as much data
as they can gather.
43. The behavioral style is often adopted by managers who like to consider complex solutions based on as
much data as they can gather.
44. The most effective managers are consistent in using their own decision style rather than shifting
among styles.
45. Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in
the natural biases of the manager.
47. The rapid pace of today's business environment requires only top management to make decisions and
have the information, skills, and freedom they need to respond immediately to problems and questions.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: F PTS: 1 DIF: 2 REF: 229
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
49. Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of
alternatives for decision making.
50. Interestingly, major decisions in the business world are commonly made by an individual.
51. Devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from
challenging other group member's assumptions.
52. Brainwriting refers to the tendency of people in groups to suppress contrary opinions.
53. Point-counterpoint is a decision-making technique in which people are assigned to express competing
points of view.
54. Decision making involves effort both before and after the actual choice.
55. Making a choice is the most significant part of the decision-making process.
57. A highly ambiguous situation can create what is sometimes called a wicked decision problem.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: T PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
58. The approach that managers use to make decisions usually falls into one of three types – the classical
model, the administrative model, and the political model.
59. The growth of quantitative decision techniques that use computers has reduced the use of the classical
approach.
60. According to the classical model of decision making, managers’ searches for alternatives are limited
because of human, information, and resource constraints.
61. Good intuitive decision making is based on an ability to recognize patterns at lightning speed.
62. The classical model of decision-making works best in organizations that are made up of groups with
diverse interests, goals, and values.
63. Administrative and political decision making procedures and intuition have been associated with high
performance in unstable environments in which decisions must be made rapidly and under more
difficult conditions.
64. Managers should be asking questions such as “What is the urgency of the problem?” during the
development of alternatives stage of managerial decision-making.
65. Individuals with a conceptual decision-making style are more socially oriented than those with an
analytical style.
66. When managers look for information that supports their existing instinct or point of view, avoiding
information that contradicts it, they are justifying past decisions.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: F PTS: 1 DIF: 2 REF: 227
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
67. Studies show that electronic brainstorming generates about 20 percent fewer ideas than traditional
brainstorming.
68. Groupthink refers to the tendency of people in groups to suppress contrary opinions.
69. One area where speed is not particularly crucial is when an organization faces a crisis.
MULTIPLE CHOICE
2. ____ is a vital part of good management because decisions determine how the organization solves its
problems, allocates resources, and accomplishes its goals.
a. Organizing
b. Competitive visioning
c. Proper alignment
d. Good decision making
e. Leadership
ANS: D PTS: 1 DIF: 1 REF: 208
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
4. Choosing between a differentiation strategy and an overall cost leadership strategy is an example of
a. a plan.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
b. an objective.
c. an alternative.
d. a decision.
e. a strategy.
ANS: D PTS: 1 DIF: 2 REF: 209
NAT: AACSB: Analytic | AACSB: Creation of Value MSC: A
5. Mark, a production manager at Kaylie's Kookware, recently chose to schedule his workers to work
overtime. His alternative was to hire more workers. He is now monitoring the consequences of his
choice. This is an example of
a. planning.
b. decision-making.
c. organizing.
d. controlling.
e. leading.
ANS: B PTS: 1 DIF: 2 REF: 209
NAT: AACSB: Analytic | AACSB: Creation of Value MSC: A
6. ____ refers to the process of identifying problems and then resolving them.
a. Organizing
b. Controlling
c. Decision-making
d. Planning
e. Leading
ANS: C PTS: 1 DIF: 1 REF: 209
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
9. Bierderlack has a policy that states that more than three absences in a six-month period shall result in a
suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating
this policy. This is an example of
a. a programmed decision.
b. a nonprogrammed decision.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
c. an insignificant decision.
d. poor management.
e. personal grudge.
ANS: A PTS: 1 DIF: 2 REF: 210
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
10. Nordstrom Department Store's "No questions asked - Return's Policy" is an example of a(n)
a. programmed decision.
b. nonprogrammed decision.
c. novel decision.
d. poor management.
e. unstructured decision.
ANS: A PTS: 1 DIF: 2 REF: 210
NAT: AACSB: Analytic | AACSB: Creation of Value MSC: A
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. When a small community hospital decides to add a radiation therapy unit, it is considered a
a. programmed decision.
b. structured decision.
c. nonprogrammed decision.
d. poor management decision.
e. certainty decision.
ANS: C PTS: 1 DIF: 2 REF: 211
NAT: AACSB: Analytic | AACSB: Creation of Value MSC: F
16. Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a
a. programmed decision.
b. nonprogrammed decision.
c. decision rule.
d. structured decision.
e. bad community decision.
ANS: B PTS: 1 DIF: 2 REF: 210
NAT: AACSB: Analytic | AACSB: Creation of Value MSC: A
17. Associated with the condition of ____ is the lowest possibility of failure.
a. ambiguity
b. uncertainty
c. certainty
d. risk
e. all of these
ANS: C PTS: 1 DIF: 2 REF: 211
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
18. Which of the following means that all the information the decision-maker needs is fully available?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. None of these
ANS: A PTS: 1 DIF: 2 REF: 211
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
20. Which of the following means that a decision has clear-cut goals and that good information is
available, but the future outcomes associated with each alternative are subject to chance?
a. Certainty
b. Risk
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
c. Uncertainty
d. Ambiguity
e. Brainstorming
ANS: B PTS: 1 DIF: 2 REF: 211
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
21. ____ means that managers know which goals they wish to achieve, but information about alternatives
and future events is incomplete.
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Advocacy
ANS: C PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
22. Bobby, a product manager, wants to increase the market share of his product. He is unsure about how
to go about it, not knowing for sure how costs, price, the competition, and the quality of his product
will interact to influence market share. Bobby is operating under a condition of
a. risk.
b. ambiguity.
c. certainty.
d. uncertainty.
e. brainstorming.
ANS: D PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
23. When managers know which goals they wish to achieve, but information about alternatives and future
events is incomplete, the condition of ____ exists.
a. risk
b. uncertainty
c. ambiguity
d. certainty
e. problem
ANS: B PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
d. Ambiguity
e. Brainstorming
ANS: D PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
26. Which of the following means that the goals to be achieved or the problem to be solved is unclear,
alternatives are difficult to define, and information about outcomes is unavailable?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Brainstorming
ANS: D PTS: 1 DIF: 2 REF: 212
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
29. Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization's
best economic interests. Her decisions should be based on which of the following models?
a. The administrative model of decision making
b. The garbage can model of decision making
c. The scientific management model of decision making
d. The classical model of decision making
e. The humanistic model of decision making
ANS: D PTS: 1 DIF: 2 REF: 214
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
30. Which of these assumptions are included in the classical model of decision making?
a. Problems are unstructured and ill defined.
b. The decision-maker strives for conditions of certainty.
c. Criteria for evaluating alternatives are unknown.
d. The decision-maker selects the alternatives that will minimize the economic return to the
organization.
e. The situation is always uncertain.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: B PTS: 1 DIF: 3 REF: 214
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
32. ____ is the approach that defines how a decision maker should make decisions and provides guidelines
for reaching an ideal outcome for the organization.
a. Administrative
b. Descriptive
c. Normative
d. Bounded rationality
e. None of these
ANS: C PTS: 1 DIF: 2 REF: 214
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
33. The ____ model of decision making is most valuable when applied to ____.
a. administrative, programmed decisions
b. classical, nonprogrammed decisions
c. classical, programmed decisions
d. classical, ambiguous decisions
e. administrative, structured decisions
ANS: C PTS: 1 DIF: 3 REF: 215
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
34. ____ approach describes how managers actually make decisions, where as ____ approach defines how
a decision-maker should make decisions.
a. Normative, descriptive
b. Normative, classical
c. Descriptive, normative
d. Descriptive, administrative
e. Normative, administrative
ANS: C PTS: 1 DIF: 2 REF: 214-215
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
35. Which model of decision making is associated with satisficing, bounded rationality, and uncertainty?
a. classical
b. administrative
c. quantitative
d. rational
e. political
ANS: B PTS: 1 DIF: 2 REF: 215
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
36. The ____ model of decision making describes how managers actually make decisions in situations
characterized by nonprogrammed decisions, uncertainty, and ambiguity.
a. normative
b. classical
c. administrative
d. scientific management
e. objective
ANS: C PTS: 1 DIF: 1 REF: 215
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
37. The concept that people have the time and cognitive ability to process only a limited amount of
information on which to base decisions is known as
a. satisficing.
b. bounded rationality.
c. classical model of decision making.
d. normative approach.
e. scientific approach.
ANS: B PTS: 1 DIF: 1 REF: 215
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
39. Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not
have enough time to identify and/or process all the information she needs to make decisions. Melissa's
situation is most consistent with which of the following concepts?
a. Bounded rationality
b. The classical model of decision making
c. Satisficing
d. Brainstorming
e. Scientific management
ANS: A PTS: 1 DIF: 3 REF: 215
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
41. Most managers settle for a ____ rather than a(n) ____ solution.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
a. minimizing; maximizing
b. satisficing; maximizing
c. top-level; bottomline
d. maximizing; satisficing
e. challenging; simple
ANS: B PTS: 1 DIF: 2 REF: 216
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
42. Which of the following is the process of forming alliances among managers during the decision
making process?
a. Networking
b. Socializing
c. Coalition building
d. Satisficing
e. Passing the buck
ANS: C PTS: 1 DIF: 2 REF: 218
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
43. The ____ model closely resembles the real environment in which most managers and decision-makers
operate.
a. normative
b. administrative
c. descriptive
d. classical
e. political
ANS: E PTS: 1 DIF: 2 REF: 218
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
44. All of these are basic assumptions of the political model EXCEPT
a. organizations are made up of groups with diverse interests, goals, and values.
b. information is clear and complete.
c. managers do not have the time, resources, or mental capacity to identify all dimensions of
the problem.
d. managers engage in the push and pull of debate to decide goals and discuss alternatives.
e. all of these are basic assumptions of the political model.
ANS: B PTS: 1 DIF: 2 REF: 219
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
45. All of the following are characteristics of the classical decision making model EXCEPT
a. clear-cut problems and goals.
b. conditions of certainty.
c. rational choice by individual for maximizing outcomes.
d. limited information about alternatives and their outcomes.
e. all of these are characteristics of classical decision making model.
ANS: D PTS: 1 DIF: 3 REF: 219
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
46. All of the following are characteristics of the administrative decision making model EXCEPT
a. vague problem and goals.
b. conditions of certainty.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
c. limited information about alternatives and their outcomes.
d. satisficing choice.
e. all of these are characteristics of administrative decision making model.
ANS: B PTS: 1 DIF: 3 REF: 219
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
47. Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an
increase in drinking problems among the workforce. She thinks she needs to investigate further. She is
at what stage of the managerial decision making process?
a. Diagnosis and analysis of causes
b. Development of alternatives
c. Recognition of decision requirement
d. Evaluation and feedback
e. Selection of desired alternatives
ANS: C PTS: 1 DIF: 1 REF: 220
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
48. A(n) ____ occurs when the organizational accomplishment is less than established goals.
a. strength
b. threat
c. diagnosis
d. opportunity
e. problem
ANS: E PTS: 1 DIF: 2 REF: 220
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
49. ____ is the step in the decision-making process in which managers analyze underlying causal factors
associated with the decision situation.
a. Analysis
b. Diagnosis
c. Recognition
d. Judgment
e. Identification
ANS: B PTS: 1 DIF: 2 REF: 221
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
50. Which of the following is the first step in the managerial decision making process?
a. Evaluation and feedback
b. Development of alternatives
c. Recognition of decision requirement
d. Diagnosis and analysis of causes
e. Selection of desired alternatives
ANS: C PTS: 1 DIF: 1 REF: 221
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
e. Recognition of decision requirement
ANS: A PTS: 1 DIF: 1 REF: 221
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
52. "When did it occur" and "how did it occur" are questions associated with which step of the decision
making process?
a. Diagnosis and analysis of causes
b. Recognition of decision requirement
c. Development of alternatives
d. Selection of desired alternative
e. None of these
ANS: A PTS: 1 DIF: 2 REF: 221
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
53. The recognition of the decision requirement step in the managerial decision making process requires
managers to
a. develop alternative solutions.
b. integrate information in novel ways.
c. use the classical model of decision making.
d. focus on generating ideas.
e. select undesirable alternatives.
ANS: B PTS: 1 DIF: 2 REF: 221
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
54. The decision-maker must ____ once the problem has been recognized and analyzed.
a. evaluate and provide feedback
b. choose among alternatives
c. generate alternatives
d. prioritize the alternatives
e. reanalyze the problem
ANS: C PTS: 1 DIF: 2 REF: 222
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
56. Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in an environment of
high uncertainty. As a result, Ryan will
a. likely be making programmed decisions.
b. probably have an easy time generating alternatives.
c. probably have a difficult time generating alternatives.
d. likely rely on the classical model of decision making.
e. wait until environment becomes certain.
ANS: C PTS: 1 DIF: 2 REF: 222
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
58. Which of the following refers to the willingness to undertake risk with the opportunity to increase
one's return?
a. Tunnel vision
b. Risk propensity
c. Risk averse
d. Thrill seeking
e. Ineffective investment philosophy
ANS: B PTS: 1 DIF: 1 REF: 223
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
59. The ____ step in the decision making process involves using managerial, administrative, and
persuasive abilities to translate the chosen alternative into action.
a. recognition
b. analysis
c. evaluation
d. implementation
e. feedback
ANS: D PTS: 1 DIF: 1 REF: 223
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
61. Genna is collecting data on how well the organization has done since their new strategy was
implemented. She is in what stage of the managerial decision making process?
a. The generation of alternatives
b. Implementation of the chosen alternative
c. Evaluation and feedback
d. Recognition of the decision requirement
e. Selection of desired alternative
ANS: C PTS: 1 DIF: 2 REF: 224
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
62. Which style is used by people who prefer simple, clear-cut solutions to problems?
a. Behavioral
b. Conceptual
c. Directive
d. Analytical
e. Classical
ANS: C PTS: 1 DIF: 1 REF: 225
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
63. Personal ____ style refers to differences among people with respect to how they perceive problems
and make decisions.
a. risk taking
b. behavior
c. decision
d. strategic
e. analysis
ANS: C PTS: 1 DIF: 2 REF: 225
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
64. Managers are considered as having ____ style, when they like to consider complex solutions based on
as much data as they can gather.
a. behavioral
b. conceptual
c. directive
d. analytical
e. classical
ANS: D PTS: 1 DIF: 1 REF: 225
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
65. Which of these styles is adopted by managers having a deep concern for others as individuals?
a. Behavioral
b. Classical
c. Analytic
d. Logical
e. Conceptual
ANS: A PTS: 1 DIF: 1 REF: 226
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
66. People with a(n) ____ style usually are concerned with the personal development of others and may
make decisions that help others achieve their goals.
a. classical
b. analytic
c. logical
d. behavioral
e. conceptual
ANS: D PTS: 1 DIF: 1 REF: 226
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
67. All of the following are cognitive biases that can affect manager's judgment EXCEPT
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
a. being influenced by initial impressions.
b. justifying past decisions.
c. seeing what you don't want to see.
d. perpetuating the status quo.
e. overconfidence.
ANS: C PTS: 1 DIF: 2 REF: 227-228
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
68. The ability to make ____ decisions is a critical skill in today's fast-moving organizations.
a. fast
b. widely supported
c. high-quality
d. frequent
e. all of these
ANS: E PTS: 1 DIF: 2 REF: 229
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
69. According to Spotlight on Skills in Chapter 6, which of the following is not an idea for applying
evidence-based decision making?
a. Demand evidence.
b. Perform secondary research.
c. Do a postmortem review.
d. Balance decisiveness and humility.
e. Practice the five whys.
ANS: B PTS: 1 DIF: 2 REF: 228
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
70. Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a
broad range of alternatives for decision making?
a. Brainstorming
b. Groupthink
c. Point-counterpoint
d. Brainwriting
e. Devil's advocate
ANS: A PTS: 1 DIF: 2 REF: 230
NAT: AACSB: Analytic | AACSB: Group Dynamics MSC: F
71. The ____ is the individual who is assigned the role of challenging assumptions made by the group.
a. group gadfly
b. multiple advocate
c. devil's advocate
d. brainstormer
e. inferior member
ANS: C PTS: 1 DIF: 1 REF: 230
NAT: AACSB: Analytic | AACSB: Group Dynamics MSC: F
72. Which of the following is a decision-making technique in which people are assigned to express
competing points of view?
a. Point-counterpoint
b. Devil's advocate
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
c. Debate
d. Groupthink
e. Brainwriting
ANS: A PTS: 1 DIF: 2 REF: 230
NAT: AACSB: Analytic | AACSB: Group Dynamics MSC: F
73. The tendency of organizations to invest time and money in a solution despite strong evidence that is
not appropriate is referred to as
a. technological decisions.
b. collective intuition.
c. decision learning.
d. team delay.
e. escalating commitment.
ANS: E PTS: 1 DIF: 2 REF: 231
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
74. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that
he will be visiting to drop off packages. This can best be described as what kind of decision?
a. Programmed
b. Nonprogrammed
c. Wicked
d. Administrative
e. Intuitive
ANS: A PTS: 1 DIF: 3 REF: 210
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
75. The four positions on the possibility of failure scale include certainty, risk, ambiguity, and:
a. Uncertainty
b. Conflict
c. Necessity
d. Indecision
e. Possibility
ANS: A PTS: 1 DIF: 2 REF: 211
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
76. ________ decisions are associated with conflicts over goals and decision alternatives, rapidly changing
circumstances, fuzzy information, and unclear links among decision elements.
a. Nonprogrammed
b. Programmed
c. Wicked
d. Conventional
e. Irrational
ANS: C PTS: 1 DIF: 2 REF: 212-213
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
77. During the fallout of the global financial crisis of the late 2000s, finance companies had to make
important decisions in a highly ambiguous environment. The decision to buyout failed banks could
best be described as what type of decision?
a. Bounded
b. Programmed
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
c. Conventional
d. Wicked decision problem
e. Irrational decision
ANS: D PTS: 1 DIF: 3 REF: 212-213
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
78. The growth of quantitative decision techniques that use computers has expanded the use of which
decision-making approach?
a. Administrative
b. Classical
c. Intuitive
d. Political
e. Bureaucratic
ANS: B PTS: 1 DIF: 2 REF: 215
NAT: AACSB: Analytic | AACSB: Information Technologies MSC: F
79. Rodney doesn’t always realize that within his role as an air traffic controller, he must continuously
perceive and process information based on knowledge and experience that he is not consciously aware
of. This describes what type of decision-making?
a. Administrative
b. Right-brained
c. Satisficing
d. Rational
e. Intuitive
ANS: E PTS: 1 DIF: 3 REF: 216
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
80. The __________ model of decision-making is useful for making nonprogrammed decisions when
conditions are uncertain, information is limited, and there are managerial conflicts about what goals to
pursue or what course of action to take.
a. Classical
b. Functional
c. Bureaucratic
d. Political
e. Administrative
ANS: D PTS: 1 DIF: 2 REF: 218
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
81. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at
Jefferson are complex and involve many people, with a significant amount of disagreement and
conflict. Which decision-making model fits best for this organization?
a. Political
b. Functional
c. Classical
d. Administrative
e. Bureaucratic
ANS: A PTS: 1 DIF: 3 REF: 218
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
82. When managers ask questions such as “What is the state of disequilibrium affecting us?”, they are in
which stage of the managerial decision-making process?
a. Selection of a desired alternative
b. Development of alternatives
c. Diagnosis and analysis of causes
d. Recognition of decision requirement
e. Evaluation and feedback
ANS: C PTS: 1 DIF: 2 REF: 221
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
83. When quality control measures at the local tire plant were found to be inadequate, managers were
asking themselves, “How did this occur?” and “What is the result?” The company is in which stage of
the managerial decision-making process?
a. Selection of a desired alternative
b. Development of alternatives
c. Diagnosis and analysis of causes
d. Recognition of decision requirement
e. Evaluation and feedback
ANS: C PTS: 1 DIF: 3 REF: 221-222
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
84. Research has identified four major decision styles. These include all of the following EXCEPT:
a. Behavioral
b. Conceptual
c. Analytical
d. Authoritative
e. Directive
ANS: D PTS: 1 DIF: 2 REF: 225
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
85. Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous
year’s sales to estimate sales for the coming year. This is an example of which management bias?
a. Being influenced by emotions
b. Perpetuating the status quo
c. Seeing what you want to see
d. Justifying past actions
e. Being influenced by initial impressions
ANS: E PTS: 1 DIF: 3 REF: 227
NAT: AACSB: Analytic | AACSB: Strategy MSC: A
86. When managers base decisions on what has worked in the past and fail to explore new options, they
are:
a. Perpetuating the status quo
b. Being influenced by emotions
c. Being overconfident
d. Justifying past actions
e. Seeing what they want to see
ANS: A PTS: 1 DIF: 2 REF: 227
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
87. As a top manager, Joanna works with others within her team every day in making important corporate
decisions. Her preferred decision-making approach is to generate as many alternatives to problems as
possible in a short amount of time. This approach is referred to as:
a. Groupthink
b. Devil’s advocacy
c. Point-counterpoint
d. Escalating commitment
e. Brainstorming
ANS: E PTS: 1 DIF: 3 REF: 230
NAT: AACSB: Analytic | AACSB: Group Dynamics MSC: A
CASE
Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly
trained and well respected by experts both inside and outside the company. Recently one of Vaughn's
engineers suggested a new technique for the development and use of an argon laser. There appeared to
be rich potential for this technology, but Vaughn wasn't certain that developing this technology was
the best use of his limited resources. Vaughn was facing a significant decision.
1. If Vaughn uses the classical model of decision making, which of these assumptions would he reject?
a. The decision maker is rational and uses logic in assigning values and evaluating
alternatives.
b. The desired decision will maximize attainment of organizational objectives.
c. The decision-maker strives for complete certainty, gathering complete information.
d. Problems are precisely formulated and defined.
e. All of these are accepted.
ANS: e
2. If Vaughn uses the administrative model of decision making, which of these assumptions would he
reject?
a. Decision-makers settle for a satisficing rather than maximizing solution
b. The search for alternatives is limited because of information, human and resource
constraints
c. Rational procedures will normally lead to the best solution in a complex organization
d. Decision objectives are often vague, conflicting, and lack consensus among managers
e. All of these are accepted
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: c
3. Which of the following steps would Vaughn not take in making his decision?
a. Sense and recognize the decision requirement
b. Implement the chosen alternative
c. Create a set of alternatives
d. Diagnose and analyze problem causes
e. All of these would be included
ANS: e
COMPLETION
ANS: decision
2. ____________________ is the process of identifying problems and opportunities and then resolving
them.
3. ____________________ decisions involve situations that have occurred often enough to enable
decision rules to be developed and applied in the future.
ANS: Programmed
4. ____________________ decisions are made in response to situations that are unique, are poorly
defined and largely unstructured, and have important consequences for the organization.
ANS: Nonprogrammed
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. ____________________ means that all the information the decision-maker needs is fully available.
ANS: Certainty
6. ____________________ means that a decision has clear-cut goals and that good information is
available, but the future outcomes associated with each alternative are subject to chance.
ANS: Risk
7. Under conditions of ____________________, managers know what goal they wish to achieve, but
information about alternatives and future events is incomplete.
ANS: uncertainty
8. ____________________ means that the goals to be achieved or the problem to be solved is unclear,
alternatives are difficult to define, and information about outcomes is unavailable.
ANS: Ambiguity
ANS: classical
10. A normative decision making model defines how a manager ____________________ make decisions.
ANS: should
11. In many respects, the ____________________ model represents an "ideal" model decision-making
and can't usually be attained by real people in real organizations.
ANS: classical
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12. The ____________________ model of decision making describes how managers actually make
decisions in difficult situations, such as those characterized by nonprogrammed decision, uncertainty,
and ambiguity.
ANS: administrative
13. The recognition that people have limits on how rational they can be is known as
____________________.
14. ____________________ means that decision-makers choose the first solution alternative that satisfies
minimal decision criteria.
ANS: Satisficing
15. A(n) ____________________ approach describes how managers actually make decisions, not how
they should.
ANS: descriptive
ANS: Intuition
18. A(n) ____________________ occurs when organizational accomplishment is less than established
goals.
ANS: problem
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
NAT: AACSB: Analytic | AACSB: Strategy MSC: F
19. ____________________ exists when managers see potential of enhancing performance beyond
current levels.
ANS: Opportunity
20. The step in the decision making process in which managers analyze the underlying causal factors
associated with the situation is called ____________________.
ANS: diagnosis
21. ____________________ is the willingness to undertake risk with the opportunity of gaining an
increased payoff.
22. The ____________________ stage involves the use of managerial, administrative, and persuasive
abilities to ensure that the chosen alternative is carried out.
ANS: implementation
23. ____________________ is important because decision making is a continuous, never ending process.
ANS: Feedback
24. Differences among people with respect to how they perceive problems and make decisions is called
____________________.
25. The ____________________ style is often the style adopted by managers having a deep concern for
others as individuals.
ANS: behavioral
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PTS: 1 DIF: 2 REF: 226
NAT: AACSB: Analytic | AACSB: Individual Dynamics MSC: F
26. People with a(n) ____________________ style usually are concerned with the personal development
of others and may make decisions that help others achieve their goals.
ANS: behavioral
27. A(n) ____________________ is assigned the role of challenging the assumptions and assertions made
by the group.
SHORT ANSWER
1. List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing
and analyzing causes.
ANS:
Students can answer with any four of the following questions: (1) What is the state of disequilibrium
affecting us? (2) When did it occur? (3) Where did it occur? (4) How did it occur? (5) To whom did it
occur? (6) What is the urgency of the problem? (7) What is the interconnectedness of events? (8) What
result came from which activity?
ANS:
Start with brainstorming, Know when to bail, Avoid groupthink, Engage in rigorous debate
ESSAY
1. Explain the difference between programmed and nonprogrammed decisions and give an example of
each.
ANS:
Programmed decisions involve situations that have occurred enough to enable decision rules to be
developed and applied in the future. Examples include job skills required to fill certain positions, the
reorder point for manufacturing inventory, and selection of freight routes for product deliveries.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and
largely unstructured, and have important consequences for the organization. Examples are decisions to
build a new factory, develop a new product or service, and enter a new geographical market.
ANS:
Decisions made under the condition of certainty have a high possibility of success. All of the
information that the decision-maker needs is available. The decision-maker knows the alternatives, the
objectives, and the outcomes. Risk is a situation where the decision-maker knows the alternatives and
the objectives. However, the outcomes are not known with certainty, but the probabilities of the
outcomes are known. Under conditions of uncertainty, the decision-maker does not know the
probabilities of the outcomes, while she knows some of the alternatives and the objectives. With
ambiguity, the objectives are unclear, alternatives are difficult to define, and information about
outcomes is incomplete or unavailable.
3. Briefly describe the assumptions underlying the classical model of decision making.
ANS:
The classical model of decision making is based on four assumptions. First, the decision-maker
attempts to accomplish goals that are known and agreed upon. In addition, problems are specified and
defined precisely. Second, the decision-maker attempts to gather complete information, going for a
condition of certainty. Third, the criteria for evaluating the alternatives are known and the decision-
maker will select the alternative that maximizes the economic return to the organization. Fourth, the
decision-maker is rational and relies upon logic to make sense of the information available.
ANS:
(1) The decision maker operates to accomplish goals that are vague and conflicting. (2) All alternatives
and the potential results are based on simplistic views of organizational events. (3) Alternatives are
limited based on human constraints. (4) Managers settle for satisficing.
5. List and describe the four basic assumptions of the political model.
ANS:
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
(1) Organizations are made up of groups with diverse interests, goals, and values. Managers disagree
about problem priorities and may not understand or share the goals and interests of other managers. (2)
Information is ambiguous and incomplete. The attempt to be rational is limited by the complexity of
many problems as well as personal and organizational constraints. (3) Managers do not have the time,
resources, or mental capacity to identify all dimensions of the problem and process all relevant
information. Managers talk to each other and exchange viewpoints to gather information and reduce
ambiguity. (4) Managers engage in the push and pull of debate to decide goals and discuss alternatives.
Decisions are the result of bargaining and discussion among coalition members.
6. What are the six steps in the managerial decision making process?
ANS:
The six steps are (1) recognize the decision requirement; (2) diagnose and analyze the causes; (3)
develop alternatives; (4) select the desired alternative; (5) implement the chosen alternative; and (6)
evaluate and determine feedback.
7. Explain how a manager selects the desired decision in the managerial decision making process.
ANS:
The manager tries to select the choice with the least amount of risk and uncertainty. Because some risk
is inherent for most nonprogrammed decisions, managers try to gauge prospects for success. Under
conditions of uncertainty, they might have to rely on their intuition and experience to estimate whether
a given course of action is likely to succeed. Basing choices on overall goals and values can also
effectively guide selection of alternatives. Decision about how to cope should be selected by relying
on the company's values and goals of treatment of employees and building long-term relationships.
Making choices depends on managers' personality factors and willingness to accept risk and
uncertainty.
ANS:
Directive, analytical, conceptual, and behavioral style.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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[281] Place, Ninive, vol. i. p. 58.
[282] Botta, Monument de Ninive, plate 113.
[283] Ibid. plates 43 and 53.
[284] Botta, Monument, &c. plate 62.
[285] Ibid. plates 61 and 76, and vol. v. p. 124.
[286] See especially at the south end of the Nimroud Gallery,
the upper part of a male figure, numbered 17 a. The black of the
hair and beard has preserved much of its strength.
[287] “At Kouyunjik there were no traces whatever of colour.”
Nineveh, vol. ii. p. 310.
[288] Heuzey, Catalogue des Figurines en terre cuite du
Musée du Louvre, p. 18.
[289] Heuzey, Catalogue, &c. p. 19.
[290] Ibid. p. 20. Layard also found many of these blue
statuettes at Khorsabad (Discoveries, p. 357).
[291] These fragments were found by Layard in one of the
small temples at Nimroud (Discoveries, pp. 357, 358).
[292] M. Sully Prudhomme has lately embodied this idea in
his verses addressed to the Venus of the Louvre (Devant la
Vénus de Milo in the Revue politique for 6 January, 1883):—
* * * * *
Transcriber’s Notes: