Deck 12: Decision Making Processes

Question 1

A small university department was comprised of six male faculty members. During faculty meetings when the department was faced with a difficult decision, a faculty member would suggest they take a break. During the break, four faculty would adjourn to the coffee room and agree on the decision that would be made. This is an example of:

A) bounded rationality.
B) intuitive decision making.
C) a coalition.
D) crisis decision making.

Answer 1

C

Question 2

Which of the following is the step in the decision making process in which the manager digs below the surface to analyze the cause of the problem?

A) Define the decision problem
B) Monitor the decision environment
C) Specify decision objectives
D) Diagnose the problem

Answer 2

D

Question 3

A company that uses a computerized system extensively in their production process from the design stage through the automatic ordering of raw materials through preparation for delivery would be using which type of organizational decision making?

A) Garbage can
B) Incremental process
C) Carnegie
D) Management science

Answer 3

D

Question 4

Intuitive decision processes would work best when which of the following factors were dominant:

A) managers can use networked computer databanks for analysis.
B) there are few alternatives available.
C) experience with similar decisions is extensive, and has been successful.
D) a manager must make the decision alone.

Question 5

The incremental decision process model places emphasis on:

A) political factors.
B) social factors.
C) the sequence of activities in the decision process.
D) intuitive processes.

Question 6

Which of the following is not recognized as a constraint and trade-off during nonprogrammed decision making?

A) Personal constraints
B) Environmental constraints
C) Bounded rationality
D) Organizational constraints

Question 7

The stage in which alternative courses of action are considered and one is chosen and implemented is:

A) the first 3 steps of the rational approach, called problem recognition.
B) the last 4 steps of the rational approach, called problem solution.
C) programmed decision.
D) bounded rationality.

Question 8

Intuitive decision making uses ____ to make decisions.

A) logic
B) judgment
C) explicit reasoning
D) a systematic approach

Question 9

Which stage of the organizational decision making process occurs when alternative courses of action are considered and one alternative is selected and implemented?

A) Problem consensus stage
B) Problem identification stage
C) Problem solution stage
D) Problem generation stage

Question 10

The first four steps of the rational approach to decision making are specifically designed to help a manager:

A) follow the scientific method.
B) devise a problem solution.
C) evaluate alternative solutions.
D) identify the problem.

Question 11

Management science works best for decisions when problems:

A) are vague.
B) have unknown variables.
C) are analyzable.
D) are qualitative and cannot be quantified.

Question 12

____ means organizations accept a satisfactory rather than a maximum level of performance, enabling them to achieve several goals simultaneously.

A) Satisficing
B) Bounded rationality
C) Problem consensus
D) Escalating commitment

Question 13

The rational approach to decision making involves all of the following steps except:

A) defining the decision problem.
B) evaluating alternatives.
C) implementing an alternative to test its viability.
D) diagnosing the problem.

Question 14

Bounded rationality:

A) should be avoided.
B) involves an 8-step decision making process, including both problem identification and problem solution.
C) proves to us that even when time and resources are limited, we should quantify as much as possible to weigh all alternatives correctly.
D) describes how decisions actually have to be made under severe time and resource constraints.

Question 15

The Carnegie model of organizational decision making says that organizational decisions:

A) involve few managers because of the simplicity with which decisions are made.
B) use coalitions for the final choice.
C) avoid the pitfall of problemistic search.
D) uses coalitions only at lower levels of management.

Question 16

When Tom Smith, CEO of Food Lion reads Modern Grocer, visits other grocery stores to compare prices, and reviews daily sales figures, he is doing activities in which of the following steps of the rational approach?

A) Monitor the decision environment
B) Define the decision problem
C) Specify decision objectives
D) Diagnose the problem

Question 17

____ are repetitive and well-defined, and procedures exist for resolving the problem.

A) Programmed decisions
B) Incremental decisions
C) Nonprogrammed decisions
D) Irrational decisions

Question 18

Which type of decision-making would typically be used to the extent possible in an objective process of selection of a new employee?

A) Inspiration and imitation
B) Carnegie model
C) Garbage can model
D) Rational approach

Question 19

The management science model for decision making is best to use when:

A) problems are unanalyzable, and problem consensus is high.
B) problems are analyzable and measurable, and parties involved agree on goals.
C) solution knowledge is low, and problem consensus is low.
D) solution knowledge is low, and problems can't be structured logically.

Question 20

Which step in the rational approach immediately follows developing alternative solutions?

A) Evaluating alternatives
B) Diagnosing the problem
C) Implemening an alternative to test its viability
D) Implementing the chosen alternative

Question 21

Which of the following is not true regarding decision-making in today's environment?

A) Decisions must be made slower.
B) There is less certainty about outcomes.
C) No one individual has all information needed.
D) They require more cooperation.

Question 22

Which of the following is not one of the four streams relevant to organizational decision making?

A) Problems
B) Consequences
C) Potential solutions
D) Participants

Question 23

The garbage can model shows:

A) how poor inputs into decision making results in poor decisions.
B) how decisions can be made in mechanistic organizations.
C) four streams of events which influence decision making.
D) decision making in a stable environment.

Question 24

Nonprogrammed decisions are repetitive and well defined, and procedures exist for resolving the problem.

Question 25

Which of the following is not an organizational constraint during nonprogrammed decision making?

A) Level of shared perspective
B) Corporate structure
C) Pesonal desire for prestige
D) Corporate culture

Question 26

Only by making mistakes can managers and organizations go through the process of ____ and acquire sufficient experience and knowledge to perform more effectively in the future.

A) escalating commitment
B) nonprogrammed decision making
C) problem consensus
D) decision learning

Question 27

The agreement among managers about the nature of a problem or opportunity and about which goals and outcomes to pursue is referred to as:

A) organizational decision making.
B) problemistic search.
C) organized anarchy.
D) problem consensus.

Question 28

The incremental decision model is based on research showing that:

A) a manager with a proposal can get his idea implemented by breaking it down into small steps and installing one step before going on to another.
B) many major organizational decisions occur through a series of smaller decisions made over a fairly long period of time.
C) programmed decisions involve several mathematical formulas that build on each other.
D) none of these.

Question 29

When eighteenth-century politician and diplomat Benjamin Franklin was faced with a difficult problem, he would divide a sheet of paper into two columns labeled "Pro" and "Con" and write down various reasons for or against a particular decision. Over several days Franklin would narrow down the list based on a system of weighing the value of each pro or con until he reached a determination of the best decision. Franklin's approach can best be described as a _____ approach.

A) management science
B) intuitive
C) rational
D) bounded rational

Question 30

The phenomenon known as "escalating commitment" refers to:

A) an increase in the commitment to a decision only when it begins to prove itself as correct or profitable.
B) continuing to invest time and money in a solution despite evidence of failure.
C) the need for top management to accept decisions made by lower levels and commit to their implementation.
D) none of these.

Question 31

During the pressure-packed five-week Christmas season, Linda Koslow checks out competitors around the mall, eyeing whether they are marking down merchandise. She also scans printouts of her store's previous day's sales to learn what is or is not moving. Linda is doing activities in which of the following steps of the rational approach?

A) Evaluating alternatives
B) Developing alternative solutions
C) Defining the decision problem
D) Monitoring the decision environment

Question 32

_____ refers to the tendency of people in groups to suppress contrary opinions.

A) Imitation
B) Prospecting
C) Satisficing
D) Groupthink

Question 33

According to the contingency framework for decision models, the Carnegie Model for organizational decision making should be used when:

A) there is high uncertainty in both problems and solutions and uncertain problems and certain solutions.
B) managers agree on goals and look for optimal solutions.
C) decisions are nonprogrammable and can be made by an individual.
D) all of these--the Carnegie Model should be used in every cell of the framework.

Question 34

_____ means managers look around in the immediate environment for a solution to quickly resolve a problem.

A) Problemistic search
B) Satisficing
C) Coalition formation
D) Groupthink

Question 35

What process would explain increasing the amount of budget for an ongoing project on which managers received feedback that it was destined for failure?

A) The garbage can model
B) Flexible decision style
C) Escalating commitment
D) Organized anarchy

Question 36

In the garbage can model:

A) solutions may be proposed even when problems do not exist.
B) choices are not made unless problems are solved.
C) many problems are solved.
D) no problem is allowed to persist without being solved.

Question 37

____ refers to understanding and agreement about how to solve problems and reach organizational goals.

A) Decision learning
B) Technical knowledge
C) Intuitive decision making
D) Management science

Question 38

In the garbage can model of decision making:

A) a "choice opportunity" could explain an odd choice simply because it was time to make some decision.
B) participants provide the stability needed to explain decision making, and remove its otherwise random quality.
C) the company has an insufficient level of technology.
D) all of these.

Question 39

_____ is formally defined as the process of identifying and solving problems.

A) Problem solving
B) Organizational decision making
C) Problem identification
D) Specifying decision objectives

Question 40

Which of the following are characteristics of organized anarchies?

A) Clearly defined problems, unclear technology and turnover
B) Unclear technology, turnover, and problematic preferences
C) Slow change, nonbureaucratic environment, and turnover
D) Rapid change, ambiguous goals, and routine technology

Question 41

In the problem solution stage, information about environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings.

Question 42

Management science is an excellent device for organizational decision making when problems are analyzable and when the variables can be identified and measured.

Question 43

The incremental model places major emphasis on political and social factors that influence decision outcomes.

Question 44

The bounded rationality approach is often associated with programmed decision processes.

Question 45

Since programmed decisions are novel and poorly defined, and no procedures exist for solving them, a program must be devised using the garbage can method.

Question 46

A venture team is an alliance among several managers who agree about organizational goals and problem priorities.

Question 47

The management science approach to organizational decision making is the analog to the rational approach by individual managers.

Question 48

During the "specify decision objectives" step of the rational approach, the manager determines what performance outcomes should be achieved by a decision.

Question 49

The Carnegie model of organizational decision making was developed by Max Weber.

Question 50

Problemistic search means that managers look around in the extended environment until they find the perfect solution to eventually resolve a problem.

Question 51

Management science sometimes produces decision failures, in part because quantitative data are not rich.

Question 52

The selection phase of the incremental model is very clear that managers must analyze and choose on the basis of objective criteria in order to avoid any future delay that would interrupt implementation.

Question 53

Due to the rapidly changing business environment, managers and organizations are dealing with a higher percentage of nonprogrammed decisions.

Question 54

Organized anarchy is characterized by rapid change and a collegial, nonbureaucratic environment.

Question 55

Intuition should not be used in organizational decision making.

Question 56

In intuitive decision making, experience and judgment rather than sequential logic or explicit reasoning are used to make decisions.

Question 57

Management science, although cumbersome, cannot produce failures in decision making.

Question 58

The Carnegie model and the incremental model disagree with each other on how decisions are made--the former claiming that they are made through a political process and the latter claiming that they emerge over time following careful objective analysis.

Question 59

A decision interrupt occurs when an organization must cycle back through a previous decision and try something new.

Question 60

The point of the rational approach is that managers use systematic procedures to arrive at good decisions.

Question 61

Managers should use the most objective, rational process possible when making a decision.

Question 62

Management knowledge refers to understanding and agreement about how to solve problems and reach organizational goals.

Question 63

Many nonprogrammed decisions involve strategic planning because uncertainty is great and decisions are complex.

Question 64

The prospect theory suggests that the threat of a loss has a greater impact on a decision than the possibility of an equivalent gain.

Question 65

High-velocity environments call for decision makers to depend heavily on one or two savvy, trusted colleagues as counselors, even though everyone is ultimately involved in the decision.

Question 66

Managers block or distort negative information when they are personally responsible for a negative decision, and consistency and persistence are valued in contemporary society. These are the two explanations why managers escalate commitment to a failing decision.

Question 67

Intuition is arbitrary and irrational.

Question 68

Explain what is meant by the bounded rationality perspective of decision making. Provide an example of decision making in your own life in which you can observe the effects of bounded rationality.

Question 69

In the garbage can model, potential solutions may be independent of problems, but are ideas brought to organizational consciousness because participants are attracted to those ideas.

Question 70

What is a problematic search? What is its role in decision making?

Question 71

Compare the individual decision making approach of bounded rationality to any one of the organizational decision making approaches or models.

Question 72

List and describe the steps of the rational approach to decision making.

Question 73

Problem consensus refers to understanding and agreement about how to solve problems and reach organizational goals.

Question 74

Problem consensus and technical knowledge about the means to solve those problems are two characteristics of organizations that determine the use of decision approaches.

Question 75

Assume you are involved in important decision making in a medium-size organization. There are three decisions that currently face your organization. One is a problem of integrating the inventory management system with your production system. A second involves the selection of another organization for an acquisition. The third is whether to continue a product line that has been losing market share. Your finance vice president believes the product line should be dropped, while the marketing manager believes that more advertising aimed at a different market will revive sales of the product. Discuss which decision-making approach is likely to be most helpful in analyzing each of these situations.

Question 76

The identification phase of the incremental decision model begins with recognition.

Question 77

Personal constraints during nonprogrammed decision making include decision style, work pressure, desire for prestige, and feelings of insecurity.

Question 78

Describe the difference between programmed decisions and nonprogrammed decisions and provide an example of each.

Question 79

The rational approach to decision making is fully achieveable in today's management world.

Question 80

Compare the individual decision making approach of rationality to any one of the organizational decision making approaches or models.