Deck 8: Decision Making and Problem Solving

Question 1

The creative process generally involves seven different steps that have to occur before a creative idea can be generated.

Answer 1

False

Question 2

Contingency plans are alternative actions that can be taken if the primary course of action is unexpectedly disrupted or rendered inappropriate.

Answer 2

True

Question 3

The final stage of the rational decision-making process involves implementing the decision.

Answer 3

False

Question 4

Ayanda's recent decision about which company her conglomerate should buy was a programmed decision.

Question 5

Post-decision dissonance is doubt about a choice that has already been made.

Question 6

A crucial assumption of the behavioural approach to decision-making is that decision makers operate with bounded rationality rather than with the perfect rationality assumed by the rational approach.

Question 7

Suboptimising involves selecting the first acceptable solution that meets minimal requirements.

Question 8

The decision maker who lacks enough information to estimate the probability of outcomes faces a condition of certainty.

Question 9

The practical approach combines elements of both the rational and behavioural approaches.

Question 10

Non-programmed decisions require problem solving that identifies answers to unique questions or issues.

Question 11

A non-programmed decision usually recurs often enough for decision rules to be developed.

Question 12

Decision rules are used to make programmed decisions.

Question 13

Decision making is choosing one alternative from among several.

Question 14

Programmed decisions are common at higher levels of the organisation.

Question 15

The rational decision-making process assumes that managers follow an unsystematic, random process when evaluating alternatives.

Question 16

The rational decision-making process begins with the identification of a problem.

Question 17

Verification is the final step in the creative process.

Question 18

The behavioural model focuses on human behaviours and tendencies when evaluating the decision-making process.

Question 19

Insight represents a period of less intense conscious concentration during which knowledge and ideas develop.

Question 20

Decisions in organisations can be classified according to their frequency and information conditions.

Question 21

One basis for making programmed decisions is

A) a lack of information.
B) a set of decision rules.
C) creativity.
D) movement.
E) group formation.

Question 22

The rational decision-making approach assumes that decision makers

A) have complete information.
B) are objective.
C) are systematic in their approach to decisions.
D) work in an organisation that encourages logical choices.
E) All of these are correct.

Question 23

Which of the following statements about non-programmed decisions is false?

A) The decisions are poorly structured.
B) The problem situation is non-routine.
C) The consequences of decision making are far reaching.
D) The decisions are rarely a responsibility of top management.
E) Goals are often vague.

Question 24

In problem-solving tasks, groups usually develop more and better solutions than individuals.

Question 25

A decision maker's actions should be guided by

A) personal opinions.
B) a goal.
C) an operating budget.
D) interpersonal relationships.
E) a code of honour.

Question 26

Which of the following statements about programmed decisions is false?

A) Information is readily available.
B) Specific methods for handling them exist.
C) They are highly structured.
D) Judgement and creativity are the basis of solution.
E) Goals are clear and well-known.

Question 27

__________ decisions tend to involve situations that occur often in a company.

A) Non-programmed
B) Procedural
C) Repetitive
D) Major
E) Programmed

Question 28

In the nominal group technique, group members share their ideas with one another and then vote on them in private.

Question 29

Non-programmed decisions are most common at which level of the organisation?

A) Lower
B) Top
C) Managerial
D) Subordinate
E) Middle

Question 30

The Delphi technique is a method of systematically gathering the judgements of experts who work closely together at a common worksite.

Question 31

If a customer voices a complaint about food taste and temperature, certain restaurants always offer a complimentary meal.This represents

A) a standard decision.
B) a decision rule.
C) a non-programmed decision.
D) experience.
E) cognitive dissonance.

Question 32

Decision making is

A) finding the answer to a question.
B) choosing one alternative from among several.
C) staffing positions within the organisational hierarchy.
D) motivating employees to pursue organisational goals.
E) fixing problems that arise in the operations of the business.

Question 33

Non-programmed decisions are usually made by

A) all employees within an organisation.
B) union workers.
C) upper management.
D) middle management.
E) lower management.

Question 34

If a Human Resources manager can estimate the probability that a certain percentage of employees will take advantage of a proposed benefit plan, the manager is operating under a condition of

A) certainty.
B) estimation.
C) risk.
D) uncertainty.
E) rationalisation.

Question 35

Group polarisation is the tendency for group members to converge on a common decision outcome or solution.

Question 36

An illusion of invulnerability and stereotyped views of 'enemy' leaders are symptoms of groupthink.

Question 37

Decisions that recur infrequently and have no decision rules are __________ decisions.

A) certain
B) risk
C) programmed
D) non-programmed
E) uncertain

Question 38

Which information condition lies between certainty and uncertainty in making decisions?

A) Risk
B) Coin tossing
C) Problem solving
D) Decision rules
E) Guesswork

Question 39

According to the rational decision-making approach, what is the second step of the decision-making process?

A) Identify the problem
B) Generate alternatives
C) Evaluate alternatives
D) State the situational goal
E) Determine the decision type

Question 40

The administrative model of decision making does not attempt to prescribe how managers should make decisions.

Question 41

The sales department at a local company determines that Product A will moderately boost sales and have a shorter production schedule, so it is decided that this product will be manufactured and sold without considering other options.In choosing this product, the sales department is

A) controlling.
B) engaged in bounded rationality.
C) suboptimising.
D) satisficing.
E) using procedures and rules of thumb.

Question 42

Contingency plans are a part of which phase of the decision-making process?

A) Stating the goal
B) Evaluating alternatives
C) Choosing an alternative
D) Implementation
E) Alternative generation

Question 43

According to the rational decision-making approach, evaluating the alternatives

A) puts the decision into action.
B) involves assessing all possible alternatives.
C) involves selecting an alternative with the highest payoff.
D) is the most crucial step.
E) diagnoses the problem.

Question 44

Kgosi is using the rational decision-making process to decide a course of action for the marketing department.While selecting a preferred alternative, a fellow worker asks, 'What if something unexpected happens during the implementation of the alternative we have selected?' This type of question is an example of

A) implementing the plan.
B) developing marketing strategies.
C) planning for contingencies.
D) negative thinking.
E) groupthink.

Question 45

__________ refers to the inability of human beings to process an unlimited amount of information, causing most decisions to be made in a partially irrational manner.

A) Post-decision dissonance
B) Groupthink block
C) Satisficing
D) Bounded rationality
E) Suboptimising

Question 46

Mandla purchases shares in a public company and refuses to sell them even after repeated drops in the original price he paid for the shares.Mandla has decided to purchase more of the shares in anticipation of making a profit, and has decided to keep the shares in the face of increasing losses.Mandla is suffering from

A) organisational delusion.
B) problem misidentification.
C) escalation of commitment.
D) groupthink.
E) suboptimising.

Question 47

Which of the following statements about ethical dilemmas is false?

A) They may centre on direct personal gain.
B) They may centre on indirect personal gain.
C) They may centre on risk propensity.
D) They may centre on simple personal preferences.
E) All of these are correct.

Question 48

When __________ arises, a decision maker questions the decision made and searches for information to bolster it.

A) post-decision uncertainty
B) conflict reduction
C) rationalisation bias
D) post-decision dissonance
E) positive reinforcement

Question 49

The creative process normally begins with a period of

A) verification.
B) insight.
C) incubation.
D) preparation.
E) application.

Question 50

When __________, the decision maker knowingly accepts less than the best possible outcome.

A) optimising
B) suboptimising
C) compromising
D) satisficing
E) narrowing

Question 51

The decision-making conditions of certainty, uncertainty and risk are relevant while the decision maker is

A) stating the situational goal.
B) identifying the problem.
C) evaluating alternatives.
D) generating alternatives.
E) determining the decision type.

Question 52

__________ is the extent to which a decision maker is willing to gamble when making a decision.

A) Individual ethics
B) Risk propensity
C) Individual stressors
D) Organisational culture
E) Leadership style

Question 53

A person's beliefs about what constitutes right and wrong behaviour are called

A) hypervigilance.
B) ethics.
C) self-reactions.
D) rationalisations.
E) escalations of commitment.

Question 54

An innate belief about something without conscious consideration is called

A) escalation of commitment.
B) coalition.
C) intuition.
D) groupthink.
E) self-reaction.

Question 55

The behavioural approach to decision making is characterised by all of the following EXCEPT that it uses

A) procedures.
B) rules of thumb.
C) suboptimising.
D) logic.
E) satisficing.

Question 56

According to research, the common attributes of creative individuals include which of the following?

A) Being forced to work at a very young age
B) Living in a highly developed country
C) Changing basic personality attributes as a teenager
D) Being raised in an environment that nurtured creativity
E) Having fewer brothers and sisters

Question 57

Which of the following represents the step of the rational decision-making approach in which the outcomes of the decision are compared to the desired goal?

A) Analyse the decision
B) Control: measure and adjust
C) Determine the goal
D) Collect data
E) Analyse the situation

Question 58

Being able to see differences between situations, phenomena, or events is a creative ability called __________ thinking.

A) referent
B) convergent
C) divergent
D) emergent
E) parallel

Question 59

Managers who are cautious and try to adhere to the rational decision-making model

A) are more likely to make mistakes.
B) frequently make decisions that lead to big losses.
C) have a lower risk propensity than other managers.
D) frequently make decisions that lead to big successes.
E) suffer from bounded rationality.

Question 60

The last step in the rational decision-making process is

A) create a contingency plan.
B) determine the type of decision.
C) evaluate alternatives.
D) control: measure and adjust.
E) implement the plan.

Question 61

According to the rational decision-making approach, what is the fourth step of the decision-making process?

A) Identify the problem
B) Generate alternatives
C) Evaluate alternatives
D) State the situational goal
E) Determine the decision type

Question 62

Which of the following includes conditions conducive to groupthink?

A) Group cohesiveness, leader's promotion of personal preferences, insulation from expert opinions
B) Group cohesiveness, members' promotion of personal preferences, best decision is goal
C) Group cohesiveness, leader promotion of personal preferences, critical thinking urged
D) Members' promotion of personal preferences, best decision is goal, critical thinking urged
E) Group cohesiveness, members' promotion of personal preferences, insulation from expert opinions

Question 63

A(n) __________ is an informal alliance of individuals or groups formed to achieve a common goal.

A) group
B) coalition
C) team
D) armada
E) union

Question 64

According to the rational decision-making approach, what is the third step of the decision-making process?

A) Identify the problem
B) Generate alternatives
C) Evaluate alternatives
D) State the situational goal
E) Determine the decision type

Question 65

All of the following are features of group discussion that contribute to group polarisation EXCEPT

A) group members could take an extreme view of an opinion
B) task uncertainty can be impacted by the decision
C) persuasive arguments can encourage polarisation
D) members may feel they are not individually responsible
E) members will accept a more radical decision than their own

Question 66

Being able to see similarities between situations, phenomena, or events is a creative ability called __________ thinking.

A) referent
B) convergent
C) divergent
D) emergent
E) parallel

Question 67

According to prospect theory, people are more motivated by

A) the threat of losing something than by the prospect of gaining something.
B) the prospect of gaining something than by the threat of losing something.
C) internal values than by external rewards.
D) external rewards than by internal values.
E) None of these are correct.

Question 68

Which of the following statements about brainstorming is false?

A) It's used in the idea generation phase of decision making.
B) Members present ideas and clarify them.
C) Ideas are recorded in secret.
D) Ideas are recorded on a flip chart.
E) It does not provide resolution to the problem.

Question 69

Satisficing refers to making a(n) __________ rather than a(n) __________ decision.

A) intuitive, rational
B) short-term, long-term
C) correct, incorrect
D) optimal, satisfactory
E) satisfactory, optimal

Question 70

While driving home from a hard day at work, Nkosazana finally realises the solution to the problem she had been having with a certain customer.Nkosazana just reached which stage of the creative process?

A) Instigation
B) Insight
C) Incubation
D) Verification
E) Preparation

Question 71

In __________, the decision maker examines alternatives only until a solution that meets minimal requirements is found.

A) optimising
B) suboptimising
C) compromising
D) satisficing
E) narrowing

Question 72

The second step of the creative process is

A) verification.
B) insight.
C) incubation.
D) preparation.
E) application.

Question 73

According to the rational decision-making approach, what is the first step of the decision-making process?

A) Identify the problem
B) Generate alternatives
C) Evaluate alternatives
D) State the situational goal
E) Determine the decision type

Question 74

The third step of the creative process is

A) verification.
B) insight.
C) incubation.
D) preparation.
E) application.

Question 75

The Delphi technique is designed for use by groups that

A) are very large.
B) are very small.
C) do not meet face to face.
D) have suffered from groupthink in the past.
E) are familiar with the rules of brainstorming.

Question 76

The fourth step of the creative process is

A) verification.
B) insight.
C) incubation.
D) preparation.
E) application.

Question 77

According to the rational decision-making approach, what is the fifth step of the decision-making process?

A) Identify the problem
B) Generate alternatives
C) Evaluate alternatives
D) State the situational goal
E) Determine the decision type

Question 78

All of the following are symptoms of groupthink EXCEPT

A) an illusion of invulnerability.
B) collective efforts to rationalise or discount warnings.
C) a lack of idea promotion from the group leader.
D) stereotyped views of enemy leaders.
E) direct pressure on members who present contrary views.

Question 79

All of the following are used in the nominal group technique of decision making EXCEPT

A) individuals convene to address an issue.
B) the issue is described to the group.
C) each proposed idea must be wholly original.
D) initially, no discussion among the members is permitted.
E) members take turns reporting their ideas.

Question 80

One important method for enhancing creativity is to make it a part of the organisation's

A) standard operating procedures.
B) decision-making processes.
C) culture.
D) strategic plans.
E) None of these are correct.