Deck 12: Decision Making Processes

Question 1

The important decisions made on the title of the Star Wars movie or purchasing the McDonald name for $2.7 million were examples of:

A) the supremacy of data and research.
B) the garbage can model.
C) intuitive decision making.
D) problem consensus.

Answer 1

C

Question 2

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.

Answer 2

B

Question 3

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

A) Evaluate alternatives
B) Diagnose the problem
C) Implement an alternative to test its viability
D) Implement the chosen alternative

Answer 3

A

Question 4

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 5

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 6

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 7

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 8

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 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

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

Question 11

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.

Question 12

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 13

Intuitive decision making uses ____ to make decisions.

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

Question 14

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

Question 15

____ 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 16

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 17

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

A) define the decision problem.
B) evaluate alternatives.
C) implement an alternative to test its viability.
D) diagnose the problem.

Question 18

In the example given at KTM Fahrrad GmbH, a manufacturer in off-road motorcycles, what style decision making did Stefan Pierer use when moving KTM into the street bike market?

A) Intuitive
B) High velocity escalation
C) Marketing research, comparable to the rational approach
D) Scientific management

Question 19

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 20

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 21

____ 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 22

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 23

What process would explain increasing the amount of budget for an on-going 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 24

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

Question 25

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 26

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 27

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 28

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

Question 29

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

Question 30

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 31

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 32

Given the principles of escalating commitment, in which situation described below would you give the greatest funding to the same program in 1995?

A) After you funded the program in 1993, it turned out to be very profitable.
B) After another manager funded the program in 1993, it turned out to be very profitable.
C) After you funded the program in 1993, it turned out to be a "loser," showing actual prospects of failing.
D) After another manager funded the program in 1993, it turned out to be a "loser," showing actual prospects of failing.

Question 33

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 34

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 35

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 36

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 37

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 38

____ 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 39

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 40

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 41

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

Question 42

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 for some logical or illogical reason.

Question 43

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 44

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 45

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

Question 46

When decisions are nonprogrammed, ill-defined, and piling on top of one another, there is not reason for the individual manager to even attempt to use the steps in the rational approach.

Question 47

Intuition should not be used in organizational decision making.

Question 48

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

Question 49

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

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

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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 58

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

Question 59

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

Question 60

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

Question 61

The company where you work is concerned because of their slow and cumbersome decision making processes. Decisions seem to cycle around and around, frequently without coming to closure. If they wanted to analyze their decision making in order to improve their processes, which particular model that you would recommend? Why? How would you go about studying the problem?

Question 62

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

Question 63

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 64

Based on the fact that the management science approach uses quantitative data, which are not rich, discuss limitations of the approach for organizational decision making.

Question 65

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

Question 66

What is a decision interrupt? Give at least two examples from your own experience.

Question 67

The Gillette Company was given as an example of using a certain decision making approach in the design of razors such as the Sensor. Give an illustration, explaining the decision making approach that was used.

Question 68

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

Question 69

Discuss the four cells of the contingency framework.

Question 70

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

Question 71

If organized anarchy existed in the decision environment of a company in the high tech industry, would your goal as a decision maker be to remove that organized anarchy, or to work with it? Explain. How could decisions at that company best be analyzed? How would managers go about using the model to improve decision processes?

Question 72

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 73

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 74

If problem consensus were not achieved relative to a decision that was being made, how would you recommend that managers deal with their decision making process first? After problem consensus had been achieved, would you recommend a different approach?

Question 75

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

Question 76

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

Question 77

Based on the fact that the Carnegie approach relies on rich face-to-face communication, discuss limitations of the approach for organizational decision making.

Question 78

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 79

Discuss the consequences of the garbage can decision process for organizational decision making.

Question 80

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