Deck 8: Managing Decision Making and Problem Solving

Question 1

You are trying to hire a new engineer.She has all of the qualifications you want,with one exception.As a decision alternative,this engineer fails the test of feasibility.

Answer 1

False

Question 2

When the bell rings at a firehouse,the firefighters make programmed decisions.

Answer 2

True

Question 3

When managers apply their values to decision making there is an opportunity for better ethics,which is a good aspect of bounded rationality.

Answer 3

True

Question 4

When an employee comes to you with a feasibility evaluation of a decision alternative,he will give you information about how practical the alternative is for the organization.

Question 5

Few organizational decisions are made under conditions of uncertainty.

Question 6

The classical decision model is more likely to be used in a research lab than in management.

Question 7

The first step in evaluating an alternative is to determine to what extent it will be affordable.

Question 8

Managers make decisions about problems but not opportunities.

Question 9

Decisions are often made with little consideration for logic and rationality.

Question 10

The proper sequence for evaluating a decision alternative is satisfactoriness,probable consequences,and feasibility.

Question 11

According to bounded rationality,people's habits and skills limit their decisions.

Question 12

The administrative model of decision making describes how decisions should be made as opposed to prescribing how they actually are made.

Question 13

A plant manager notices that overtime seems to be excessive.This will stimulate a decision.

Question 14

As it relates to decision making,the term best alternative implies decision accuracy and efficiency.

Question 15

Decision making is perhaps the most basic and fundamental of all managerial activities.

Question 16

In the decision-making process,the follow-up step is most closely related to the management function of controlling.

Question 17

The stimulus for a decision may be positive or negative.

Question 18

Many decisions regarding basic operating systems and procedures and standard organizational transactions are nonprogrammed decisions.

Question 19

Zhenfu invested his savings in a bank certificate of deposit because that is where he has always put his savings,and because he is very concerned about the safety of his investment.Zhenfu knows at the end of two years he will have $52,546.73.He is operating under the decision-making condition known as risk.

Question 20

An effective decision may be one that minimizes loss,expenses,or employee turnover.

Question 21

Which of the following statements about programmed decisions is FALSE?

A) To make a programmed decision,it must be possible to develop some rule for making the decision.
B) The use of programmed decisions should be limited to noncritical situations.
C) The decision situation in which programmed decisions should be used needs to be fairly structured.
D) In many instances,programmed decisions can be computerized.
E) Programmed decisions deal with repetitive situations.

Question 22

The first step in the decision-making process is

A) recognizing and defining the situation.
B) brainstorming.
C) the generation of alternatives.
D) the expression of a willingness to be innovative.
E) implementation.

Question 23

In more and more organizations today,important decisions are made by individuals rather than by groups and teams.

Question 24

____ is the act of choosing one alternative from many.

A) Decision making
B) Problem solving
C) Risk assessment
D) Programmed decision making
E) Certainty evaluation

Question 25

Decisions that are routine and deal with situations in which the factors are familiar and have occurred in the past are called ____ decisions.

A) nonprogrammed
B) satisficing
C) rational
D) programmed
E) noninnovative

Question 26

Intuition means you allow your experiences to influence your decisions.

Question 27

Decision making is a part of which management function?

A) Planning
B) Organizing
C) Controlling
D) Leading
E) All of these choices

Question 28

When a student chooses to study instead of going out with friends,he is engaged in

A) problem solving.
B) decision making.
C) satisficing.
D) bounded rationality.
E) optimization.

Question 29

Values are an innate belief about something without conscious consideration.

Question 30

Each component of managerial ethics involves a wide variety of decisions,all of which are likely to have an ethical component.

Question 31

When a communications president agrees to be interviewed for 60 Minutes,she can be described as having a high degree of risk propensity.

Question 32

The biggest drawback of group and team decision making is the additional time and hence the greater expense entailed.

Question 33

decision maker's commitment to a decision that appears to be wrong is called risk propensity.

Question 34

An informal alliance of individuals or groups formed to achieve a common goal is referred to as groupthink.

Question 35

When Mildred chooses to focus on a work task instead of listening to a colleague she is engaged in

A) problem solving.
B) decision making.
C) satisficing.
D) bounded rationality.
E) optimization.

Question 36

Cargill recalled 185,000 pounds of ground turkey due to salmonella contamination.It made a(n)____ decision.

A) nonprogrammed
B) rational
C) ethical
D) programmed
E) satisficing

Question 37

When Canine Companions for Independence trainers teach a dog to be a service dog they start from a basic training approach.Dogs communicate through body language that the trainer knows.The trainer routinely makes ____ decisions.

A) nonprogrammed
B) rational
C) ethical
D) programmed
E) satisficing

Question 38

Existing groups or teams can be ad hoc committees,task forces,or newly constituted work teams.

Question 39

As a result of increased information,groups and teams typically can identify and evaluate more alternatives than can one person.

Question 40

The best alternative is the most ____ alternative.

A) efficient
B) controllable
C) profitable
D) effective
E) valid

Question 41

In which of the following decision-making conditions is the decision maker aware of all of the alternatives and able to assign probabilities to the costs and payoffs of each alternative?

A) Probability
B) Risk
C) Certainty
D) Rationality
E) Uncertainty

Question 42

Most of the significant decisions in contemporary organizations are made under which decision-making condition?

A) Probability
B) Risk
C) Certainty
D) Rationality
E) Uncertainty

Question 43

Which of the following decision-making models is a prescriptive model?

A) Behavioral
B) Classical
C) Administrative
D) Bureaucratic
E) Probabilistic

Question 44

Under which decision-making condition is the decision maker unaware of all the alternatives and the risks and consequences associated with each alternative?

A) Probability
B) Risk
C) Certainty
D) Rationality
E) Uncertainty

Question 45

When the manager understands the available options but the probabilities associated with each option are uncertain,the manager is experiencing

A) decision making under risk.
B) satisficing.
C) bounded rationality.
D) decision making under certainty.
E) decision making under uncertainty.

Question 46

A disadvantage of the ____ decision-making model is that it does not use ethics.

A) behavioral
B) classical
C) administrative
D) bureaucratic
E) sequential

Question 47

The manager who has difficulty identifying alternatives and assessing their probabilities is experiencing

A) decision making under uncertainty.
B) decision making under absolute certainty.
C) decision making under risk.
D) decision maker's creativity block.
E) decision making with fear.

Question 48

The key to making effective decisions under conditions of risk is to

A) recognize that information is not available and approach the situation intuitively.
B) determine the probabilities associated with each alternative as accurately as possible.
C) develop a rational system for ordering your choices in a hierarchy of importance.
D) recognize that you do not know all of the alternatives related to the decision.
E) identify the alternative(s)with completely predictable outcomes.

Question 49

Yum Brands is expanding its Chinese presence into smaller cities like Yiyang and Zhengzhou because larger cities are saturated.This is an example of a(n)____ decision.

A) nonprogrammed
B) rational
C) ethical
D) programmed
E) satisficing

Question 50

Sy.Med Development,Inc.is the only company that has credentialing application software for physicians and managed care organizations,and it provides complete support for the software..Credentialing applications must be submitted to each insurance provider annually and can be a very labor-intensive process.A physician's office in Montana that wants to buy or use the software would be making the purchase decision

A) with bounded rationality.
B) under risk.
C) under uncertainty.
D) with a satisficing result.
E) under certainty.

Question 51

Greece was on the verge of defaulting on its debt.It decided to dock a month's pay from all elected officials as part of austerity measures.This is an example of decision making

A) with bounded rationality.
B) under risk.
C) under uncertainty.
D) with a satisficing result.
E) under certainty.

Question 52

Airlines increased prices for last minute tickets usually purchased by corporate travelers.This was the tenth increase in one year.This is an example of a(n)____ decision.

A) nonprogrammed
B) rational
C) ethical
D) programmed
E) satisficing

Question 53

The decision by executives at NBC to air Up All Night to see if it could find a show to improve its primetime viewership was an example of a decision made

A) with bounded rationality.
B) under risk.
C) under uncertainty.
D) with a satisficing result.
E) under certainty.

Question 54

When the manager knows what the alternatives are and the probabilities associated with each alternative are guaranteed,the manager is experiencing

A) decision making under risk.
B) satisficing.
C) bounded rationality.
D) decision making under certainty.
E) decision making under uncertainty.

Question 55

Baldur chose to cut cable service to his home to save money.He knew he could still get local over-the-air service for free and view some entertainment on the Web.He knew each cost and his viewing options.This is an example of

A) decision making under certainty.
B) decision making under absolute certainty.
C) decision making under risk.
D) decision making under unrealistic conditions.
E) decision making under uncertainty.

Question 56

The Detroit Three auto makers and United Auto Workers negotiated a labor deal with pay raises for entry level workers.This is an example of a(n)____ decision.

A) nonprogrammed
B) rational
C) ethical
D) programmed
E) satisficing

Question 57

Students in Management 101 sit in the same seat every class even though seats are not assigned.This is an example of a ____ decision.

A) programmed
B) satisficing
C) rational
D) nonprogrammed
E) financial

Question 58

Consumers looking for discounts can check prices online before they shop.This way they will choose under conditions of

A) probability.
B) risk.
C) certainty.
D) rationality.
E) uncertainty.

Question 59

The decision to hire a janitorial service,buy a fleet of sales vehicles,or hire a public relations expert are all examples of decisions made

A) with bounded rationality.
B) under risk.
C) under uncertainty.
D) with a satisficing result.
E) under certainty.

Question 60

The U.S.government has never faltered on its debt payments,although it came close in August,2011.Investing in treasury bills is an example of

A) decision making under risk.
B) satisficing.
C) bounded rationality.
D) decision making under certainty.
E) decision making under uncertainty.

Question 61

Which of the following statements about the classical model of decision making is FALSE?

A) All alternatives are known.
B) Certainty or the ability to create certainty exists.
C) Rational behavior on the part of decision makers is a given.
D) Decision makers will be affected by personal preferences.
E) All aspects of the decision situation will be evaluated.

Question 62

Ben is planning a ground-breaking ceremony for the company's new headquarters in Charlotte,North Carolina.He has a limited budget.He could spend money on renting ceremony equipment,renting air-conditioned tents,buying engraved shovels for the CEO and Governor,buying construction helmets with the company logo,and/or catering the reception after the ceremony.Ben is in which step of the rational decision-making process?

A) Recognizing and defining the situation
B) Evaluating alternatives
C) Selecting the best alternatives
D) Implementing an alternative
E) Identifying Alternatives

Question 63

Joyce wants to decrease turnover.She can change hiring practices,improve benefits,improve wages,or provide an annual bonus.She chooses a year-end bonus because it keeps payroll lower and should quickly affect turnover.This example suggests that Joyce is at which step in the decision-making process?

A) Developing a set of rational alternatives
B) Evaluating decision effectiveness
C) Selecting which alternative to implement
D) Recognizing and defining the decision situation
E) Evaluating the possible alternatives

Question 64

When the space shuttle Columbia needed to reenter the atmosphere the crew knew there was damage on the outside of the aircraft.If there had been room and supplies the crew could have gone to the space station.Which criterion for evaluating a decision alternative did the space station fail to meet?

A) Feasibility
B) Satisfactoriness
C) Affordability
D) Consequences
E) Rationality

Question 65

Oprah Winfrey and Regis Philbin retired from daytime talk shows about the same time.Television executives saw that Anderson Cooper filled in for Regis in 32 appearances,so they created a new show around Cooper.The ____ model can be used to explain why they chose Cooper without evaluating other alternatives.

A) classical
B) bureaucratic
C) administrative
D) human relations
E) contingency

Question 66

Decisions that are unethical may pass one or two decision criteria,but they fail the ____ test.

A) feasibility
B) satisfactoriness
C) affordability
D) consequences
E) rationality

Question 67

Which of the following decision-making models involves recognizing and defining the situation,developing alternatives,selecting an alternative,implementing the chosen alternative,and following up?

A) Behavioral
B) Classical
C) Administrative
D) Bureaucratic
E) Sequential

Question 68

In which stage of the decision-making/problem-solving process is resistance to change most likely to be a problem?

A) Developing a set of rational alternatives
B) Evaluating the possible alternatives
C) Deciding which alternative to implement
D) Implementing the chosen alternative
E) Recognizing and defining the decision situation

Question 69

Ben is planning a ground-breaking ceremony for the company's new headquarters in Charlotte,North Carolina.He has a limited budget and renting an air-conditioned tent will put him over budget.It is June and the fiscal year ends in October.Because Ben believes he can cut other expenses to maintain his budget for the year,he orders the air-conditioned tent.Ben is at which step in the rational decision-making process?

A) recognizing and defining the decision situation
B) identifying alternatives
C) evaluating alternatives
D) selecting the best alternative
E) implementing the chosen alternative

Question 70

It is important to follow up and evaluate the effectiveness of a decision to

A) ensure that the decision achieves the desired result.
B) help eliminate satisficing.
C) enable objective quantification of the decision.
D) determine the feasibility of another alternative if the original decision proves ineffective.
E) help eliminate bounded rationality.

Question 71

The rational model of decision making assumes all of the following EXCEPT

A) the decision maker is logical.
B) the decision maker always has the best interests of the organization at heart.
C) the decision maker has a list of alternatives both standard and creative from which to choose.
D) the decision maker will select the least expensive acceptable alternative.
E) the decision maker will try to eliminate as much uncertainty as possible.

Question 72

The last step of the rational decision-making process is most closely related to which function of management?

A) Planning
B) Organizing
C) Staffing
D) Leading
E) Controlling

Question 73

Your assistant comes to you with the feasibility evaluation of a decision alternative.What should he be describing to you?

A) How well the alternative will satisfy the conditions of the problem situation
B) How the alternative will affect the various parts of the organization
C) Whether the alternative is within the realm of probability and practicality for the organization
D) The affordability of the consequences
E) None of these choices

Question 74

Ben is planning a ground-breaking ceremony for the company's new headquarters in Charlotte,North Carolina.The ceremony is in June when the average temperature in Charlotte is 95º.Ben has a limited budget and is wondering if he should rent air-conditioned tents for the reception.He is in which step of the rational decision-making process?

A) Recognizing that a decision is necessary
B) Evaluating alternatives
C) Selecting the best alternatives
D) Implementing an alternative
E) Cannot be determined from the information given

Question 75

Ben is planning a ground-breaking ceremony for the company's new headquarters in Charlotte,North Carolina.He has a limited budget.If he rents air-conditioned tents,he will go over budget.He thinks he could ask one of the business units to cover the expense.If everyone is sweating through their suits while they eat at the reception,the day might be a failure,even if everything else runs smoothly.Ben is at which step in rational decision making?

A) Identify a set of rational alternatives
B) Evaluate the possible alternatives
C) Select which alternative to implement
D) Evaluate decision effectiveness
E) Recognize and define the decision situation

Question 76

As it relates to selecting the alternative in a decision-making situation,optimization means choosing the

A) most feasible alternative.
B) most satisfactory alternative.
C) alternative that will do the most for the overall organization,even though it does not maximize outcomes for particular parts of the organization.
D) alternative with the highest combined level of feasibility,satisfactoriness,and affordability.
E) alternative with the most affordable consequences.

Question 77

Managers at LEO Corporation scrutinize problems until they have all of the information they feel they need to make a decision and discuss every alternative while focusing on facts and eliminating assumptions.Which decision-making model does this most closely resemble?

A) Linear
B) Hierarchical
C) Administrative
D) Behavioral
E) Classical

Question 78

When evaluating decision alternatives,the first question to be asked is whether an alternative is within the realm of probability and practicality for the organization.This refers to which of the following alternative evaluation criteria?

A) Feasibility
B) Satisfactoriness
C) Affordability
D) Consequences
E) Rationality

Question 79

Will is evaluating a stack of resumes and eliminates any candidate that does not hold a Master's degree.Which criterion for evaluating a decision alternative do these candidates fail to meet?

A) Feasibility
B) Satisfactoriness
C) Affordability
D) Consequences
E) Rationality

Question 80

Which of the following decision-making models is based on the belief that human behavior is unerringly rational?

A) Behavioral
B) Classical
C) Administrative
D) Bureaucratic
E) Hierarchical