Question 1

The types of __________ available to managers in trying to solve problems range from the known and well defined to the untried and ambiguous.
A) information
B) routines
C) solutions
D) human resources

Accepted Answer

The correct answer is "solutions" because the context of the sentence is about the variety of options or methods (solutions) managers can use to address and solve problems, which can vary from familiar and clear-cut approaches to new and uncertain ones.

Question 2

__________ is the rigid devotion to the status quo by attempting to do more of the same old thing better.
A) Inactive Response Mode (IRM)
B) Active inertia
C) Passive management
D) Idle Management Syndrome (IMS)

Accepted Answer

Active inertia is the concept of responding to challenges by applying the same old strategies more rigorously rather than adapting to new circumstances. It reflects a rigid commitment to the status quo, even in the face of changing environments.

Question 3

A manager of a restaurant located in a shopping center that is losing popularity says, "Let's spend more on advertising because sales jumped in the last half of 2006 when we did that." This manager __________.
A) should receive a raise for seeing the connection between advertising and sales
B) is using known facts to make an adaptive decision
C) should use a routine decision
D) may be making a routine decision when a problem calls for an adaptive or innovative decision

Accepted Answer

The manager may be relying on past actions without considering the current context, which may require a different approach due to the changing popularity of the shopping center.

Question 4

A(n) __________ decision is a standard choice made in response to relatively well-defined and common problems and alternative solutions.
A) strategic
B) adaptive
C) expert
D) routine

Accepted Answer

A routine decision is made in response to common, well-defined problems with known solutions, making it a standard choice in such situations.

Question 5

Evan Richardson has a problem. He wants to travel to Paris and pay the lowest possible price. His travel agent uses the computerized airline reservation system to find a flight for $1,000 and a flight for $700. Richardson's choice of which flight to take is a(n) __________ decision.
A) financial slack
B) routine
C) imitable
D) adaptive

Accepted Answer

Choosing the lower-priced flight for cost savings is a routine decision, as it involves selecting the most cost-effective option based on available information.

Question 6

Choices made in response to a combination of moderately unusual problems and alternative solutions are called __________ decisions.
A) adaptive
B) convergent
C) strategic
D) non-routine

Accepted Answer

Adaptive decisions are made in response to situations that are not routine but also not entirely novel, requiring adaptation of existing solutions or strategies.

Question 7

__________ improvement involves streams of adaptive decisions made over time that result in a large number of small, incremental enhancements year after year.
A) Functional
B) Corporate-level
C) Continuous
D) Market leader

Accepted Answer

Continuous improvement is characterized by ongoing, incremental enhancements, often seen in processes or performance, rather than large-scale changes. This approach involves making small, adaptive decisions over time to achieve gradual but consistent progress.

Question 8

Continuous improvement is driven by all of the following goals except __________.
A) simplifying decision making
B) improving efficiency
C) being responsive to customers
D) providing better quality

Accepted Answer

Continuous improvement focuses on improving efficiency, being responsive to customers, and providing better quality. Simplifying decision making, while beneficial, is not a primary goal of continuous improvement, which is more concerned with operational and service enhancements.

Question 9

Adaptive decisions sometimes reflect the concept of __________. This is a business shift in which two connections with the customer that were previously viewed as competing (e.g., bricks-and mortar stores and Internet stores) come to be seen as complementary.
A) union
B) concurrence
C) convergence
D) concentration

Accepted Answer

The correct term is "convergence." This concept describes how different elements, such as physical stores and online platforms, can evolve to support and enhance each other, rather than being in competition.

Question 10

Dunkin' Donuts, one of the largest coffee and baked goods chains in the world, recently made a(n) _________ decision when they decided to partially imitate Starbucks and other firms.
A) adaptive
B) innovative
C) routine
D) cooperative

Accepted Answer

Adaptive decisions involve making changes or adjustments in response to changes in the environment, such as competition. Dunkin' Donuts' decision to imitate Starbucks and other firms is an example of adapting to industry trends or competitive strategies.

Question 11

Dunkin' Donuts kept its goal of moving customers through its cash register line in ________ minute(s).
A) one
B) two
C) three
D) four

Accepted Answer

Dunkin' Donuts has set a goal to move customers through its cash register line in two minutes, aiming for efficiency and quick service to enhance customer satisfaction and turnover.

Question 12

Choices based on the discovery, identification, and diagnosis of unusual and ambiguous problems and/or the development of unique or creative alternative solutions are called __________ decisions.
A) primary
B) operational
C) innovative
D) adaptive

Accepted Answer

Innovative decisions involve the discovery, identification, and diagnosis of new or unusual problems and the development of unique or creative solutions, aligning with the description given.

Question 13

Grant Rollo is an engineer in the R&D department of Purina Foods. During the ten years he has worked for the company, he has made a series of small, interrelated decisions as part of the development of novel new pet stores. Rollo's decision making at Purina illustrates __________.
A) market segmentation
B) innovative decisions
C) economies of scale
D) efficiency

Accepted Answer

Rollo's role in developing novel new pet stores through a series of small, interrelated decisions aligns with innovative decisions. These decisions involve creativity and the development of new ideas or products, which is consistent with the work described in R&D (Research and Development).

Question 14

Loretta Cortez is a judge. Her decision on the Graham case represents a sharp break with past decisions and she has been very careful to define the problem in the case and review prior court decisions. In this example, Cortez makes a(n) __________ decision.
A) risky
B) innovative
C) judgmental
D) adaptive

Accepted Answer

Cortez's decision is innovative because it represents a sharp break with past decisions, indicating a new approach or method in her judgment.

Question 15

__________ includes changes in the way organizations are structured, departures from traditional management principles and processes, and changes in how managers perform their functions.
A) Convergence strategy
B) Adaptive decision making
C) Management innovation
D) Bureaucratic leadership

Accepted Answer

Management innovation refers to changes in the management processes, structures, and practices within an organization, aiming to improve organizational performance and adapt to changing environments. It includes new ways of structuring organizations, novel approaches to management, and innovative methods for managers to carry out their roles.

Question 16

Whirlpool sees _______ as its differentiating strategy.
A) communication
B) innovation
C) technology
D) cost leadership

Accepted Answer

Whirlpool sees innovation as its differentiating strategy, focusing on creating unique and advanced products to stand out in the market.

Question 17

Which of the following is (are) included in Whirlpool's five-year effort to reinvent the company's management processes?
A) making innovation a central topic in leadership development programs
B) enrolling every salaried employee in an online course on business innovation
C) establishing innovation as a large part of top management's long-term bonus plan
D) all of the above are part of the effort

Accepted Answer

Whirlpool's five-year effort to reinvent the company's management processes includes making innovation a central topic in leadership development programs, enrolling every salaried employee in an online course on business innovation, and establishing innovation as a large part of top management's long-term bonus plan.

Question 18

Which of the following is not one of the decision-making models discussed in the decision making chapter?
A) rational
B) bounded rationality
C) value chain
D) all of the above are decision-making models

Accepted Answer

The value chain model is not a decision-making model; it is a model for identifying the primary and support activities that create value for businesses. The rational and bounded rationality models are indeed decision-making models.

Question 19

The __________ decision-making model prescribes a set of phases that individuals or teams should follow to increase the likelihood that decisions will be logical and optimal.
A) bounded rationality
B) rational
C) political
D) goal setting

Accepted Answer

The rational decision-making model outlines a series of steps that decision-makers should follow to arrive at the best possible solution to a problem. These steps include defining the problem, identifying decision criteria, weighing those criteria, generating alternatives, evaluating the alternatives, and choosing the best alternative. This model assumes that decision-makers are fully rational and have access to all necessary information to make the best decision.

Question 20

Roberto Olvera is a city manager. Morale at the new water treatment plant is at an all time low due to a succession of incompetent facility managers. As Olvera is called into the hiring process, it is essential that a successful job search take place this time. He is making a __________ decision.
A) rational
B) bounded rational
C) political
D) goal setting

Accepted Answer

Roberto Olvera is making a rational decision because he is systematically choosing the most effective solution to increase morale by ensuring a competent facility manager is hired, which involves logical and structured decision-making processes.

Quiz 8: Fundamentals of Decision Making

The types of __________ available to managers in trying to solve problems range from the known and well defined to the untried and ambiguous.

__________ is the rigid devotion to the status quo by attempting to do more of the same old thing better.

A manager of a restaurant located in a shopping center that is losing popularity says, "Let's spend more on advertising because sales jumped in the last half of 2006 when we did that." This manager __________.

A(n) __________ decision is a standard choice made in response to relatively well-defined and common problems and alternative solutions.

Evan Richardson has a problem. He wants to travel to Paris and pay the lowest possible price. His travel agent uses the computerized airline reservation system to find a flight for $1,000 and a flight for $700. Richardson's choice of which flight to take is a(n) __________ decision.

Choices made in response to a combination of moderately unusual problems and alternative solutions are called __________ decisions.

__________ improvement involves streams of adaptive decisions made over time that result in a large number of small, incremental enhancements year after year.

Continuous improvement is driven by all of the following goals except __________.

Adaptive decisions sometimes reflect the concept of __________. This is a business shift in which two connections with the customer that were previously viewed as competing (e.g., bricks-and mortar stores and Internet stores) come to be seen as complementary.

Dunkin' Donuts, one of the largest coffee and baked goods chains in the world, recently made a(n) _________ decision when they decided to partially imitate Starbucks and other firms.

Dunkin' Donuts kept its goal of moving customers through its cash register line in ________ minute(s) .

Choices based on the discovery, identification, and diagnosis of unusual and ambiguous problems and/or the development of unique or creative alternative solutions are called __________ decisions.

Grant Rollo is an engineer in the R&D department of Purina Foods. During the ten years he has worked for the company, he has made a series of small, interrelated decisions as part of the development of novel new pet stores. Rollo's decision making at Purina illustrates __________.

Loretta Cortez is a judge. Her decision on the Graham case represents a sharp break with past decisions and she has been very careful to define the problem in the case and review prior court decisions. In this example, Cortez makes a(n) __________ decision.

__________ includes changes in the way organizations are structured, departures from traditional management principles and processes, and changes in how managers perform their functions.

Whirlpool sees _______ as its differentiating strategy.

Which of the following is (are) included in Whirlpool's five-year effort to reinvent the company's management processes?

Which of the following is not one of the decision-making models discussed in the decision making chapter?

The __________ decision-making model prescribes a set of phases that individuals or teams should follow to increase the likelihood that decisions will be logical and optimal.

Roberto Olvera is a city manager. Morale at the new water treatment plant is at an all time low due to a succession of incompetent facility managers. As Olvera is called into the hiring process, it is essential that a successful job search take place this time. He is making a __________ decision.