Question 1

Application of Decision Making: A Contingency Approach
It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues.
-According to Herbert Simon, having the copy machine repaired at 3 times the cost of having it replaced would be an example of

Accepted Answer

Suboptimization is the act of making a decision that is best for a particular part of an organization, but not necessarily for the organization as a whole. In this case, having the copy machine repaired at 3 times the cost of having it replaced would be an example of suboptimization, because it would be a decision that is best for the short-term, but not necessarily for the long-term.

Question 2

When a manager engages in behaviors that speed up the decision- making process in order to avoid information overload, he is engaging in judgmental shortcuts or

Accepted Answer

Heuristics are mental shortcuts that help with the simplification and speed of decision-making. They allow individuals to make quick judgments without having to thoroughly analyze all the information, thus avoiding information overload.

Question 3

Because bounded rationality affects most managers, decisions made are strongly influenced by all of the following except

Accepted Answer

Bounded rationality refers to the limitations on decision-making processes due to constraints such as information, cognitive limitations, and time. Decisions are influenced by self-interest, organizational culture, and power considerations, but not necessarily by known outcomes, as bounded rationality implies that individuals make decisions with limited knowledge and foresight.

Question 4

The supplier is late with the order of paper that is needed by the college during finals week. The secretary is sent to Wal- Mart to pick up an extra case until the paper arrives. This is an example of a(n)_________problem.

Accepted Answer

The answer of The supplier is late with the order...

Question 5

Jane just conducted the performance appraisals of five of her employees. Her appraisal was heavily influenced by the performance of the individuals during the last month. Jane's bias is an example of

Accepted Answer

Jane's bias is an example of the availability heuristic, which occurs when people make judgments about the probability of events based on how easy it is to think of examples. In this case, Jane's appraisal was influenced by the most recent performances of her employees because those instances were more readily available in her memory.

Question 6

Herbert Simon, an economist and management scholar, found that within certain constraints, managers

Accepted Answer

Herbert Simon introduced the concept of "bounded rationality," which suggests that while managers aim to make rational decisions, their ability to do so is constrained by the information available to them, cognitive limitations, and time constraints. This means they act rationally within certain limits or constraints.

Question 7

Jay tends to always look at the broad picture and likes to look at many alternatives. He focuses on the long run and looks for creative solutions. He prefers which of the following styles of decision making?

Accepted Answer

Jay's preference for looking at the broad picture, considering many alternatives, focusing on the long run, and seeking creative solutions aligns with the conceptual style of decision making. This style is characterized by a broad outlook and a willingness to consider many options and innovative solutions.

Question 8

Application of Decision Making: A Contingency Approach
It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues.
-The decision about how to handle the equipment repair/replacement is

Accepted Answer

The decision about how to handle the equipment repair/replacement is ill- structured because it is a unique and complex problem that requires Dave to consider a variety of factors, such as the cost of the repair, the age of the machine, and the potential impact of the repair on production.

Question 9

When a plant manager who is trying to reduce turnover of production workers notices that turnover has decreased by 10 percent four months after he instituted a new training program, at which step in the rational decision- making process is this manager?

Accepted Answer

The manager is at the step of evaluating the results, as they are reviewing the impact of the new training program on turnover, which is a post-decision action to assess the effectiveness of the decision made.

Question 10

_________implies that the outcome of every alternative is known.

Accepted Answer

Certainty implies that the outcome of every alternative is known, meaning that decision-makers have full and precise information about the consequences of their choices.

Question 11

Which of the following is not an advantage of group decision making over individual decision making?

Accepted Answer

Groupthink can lead to fewer alternatives being considered because the desire for harmony or conformity in the group can result in an irrational or dysfunctional decision-making outcome. This is not an advantage but rather a potential disadvantage of group decision making.

Question 12

Which of the following group techniques allows group members to meet together, but allows independent thinking?

Accepted Answer

The nominal group technique allows group members to meet together but encourages independent thinking by having individuals generate ideas on their own before sharing with the group.

Question 13

"Decision making under risk" means _________.

Accepted Answer

"Decision making under risk" implies that the decision maker has some knowledge of the possible outcomes and can estimate the probabilities of different risks occurring, allowing for informed decision-making. This contrasts with decision-making under uncertainty, where the probabilities of outcomes are not known.

Question 14

In an effort to demonstrate that an initial decision was not wrong, instead of searching for new alternatives, managers engage in which of the following?

Accepted Answer

Escalation of commitment refers to the phenomenon where individuals or organizations continue to invest time, money, or resources into a decision or action despite evidence of its failure, often in an effort to justify or validate the initial decision. This behavior is not about seeking the best alternative but rather about reinforcing an existing choice.

Question 15

Once a manager has identified a problem, the _________ that will be important in solving the problem must be identified.

Accepted Answer

Decision criteria are the standards that will be used to guide judgments and decisions regarding the problem at hand. Identifying these criteria is crucial for evaluating potential solutions and making informed decisions.

Question 16

Application of Decision Making: A Contingency Approach
It seems that all Dave accomplishes is making decisions. Every time he turns around, someone wants him to decide on one more thing. Just today the secretary came in and asked if she could reorder paper for the fax machine. Somehow that seemed like a decision he really did not need to deal with. If he could avoid those types of decisions, then when the foreman came in with the news of a major piece of equipment that needs repair, in which the repair bill will be almost as much as a new machine, Dave could focus more time and attention on the more complicated issues.
-Situations that are well- structured problems align closely with the assumptions underlying

Accepted Answer

Situations that are well-structured and straightforward, such as reordering paper for the fax machine, align closely with the assumptions underlying perfect rationality, where decisions can be made logically and systematically without the need for extensive deliberation or emotional involvement.

Question 17

A method that can be used to overcome the tendency toward conformity in group decision making is which of the following?

Accepted Answer

The answer of A method that can be used to...

Question 18

Putting a decision into action and conveying the decision to the persons who will be affected by it is known as

Accepted Answer

Decision implementation refers to the process of putting a decision into action and communicating it to those who will be affected. This involves executing the chosen course of action and ensuring that the decision is understood and carried out by the relevant parties.

Question 19

Creativity refers to

Accepted Answer

The answer of Creativity refers to
...

Question 20

As managers move up the organizational hierarchy, problems are more likely to become

Accepted Answer

The answer of As managers move up the organizational hierarchy,...

Quiz 4: Foundations of Decision Making