Question 1

Sarah, a human resources manager at XYZ Services, can estimate the probability that a certain percentage of employees will take advantage of a proposed benefit plan. Sarah is operating under a condition of
A)certainty.
B)estimation.
C)risk.
D)uncertainty.
E)rationalization.

Accepted Answer

Sarah is operating under a condition of risk since she is estimating the probability of a certain percentage of employees taking advantage of the proposed benefit plan. In risk, probabilities can be estimated, but there is a degree of uncertainty involved. Certainty refers to situations where the outcome is known with 100% certainty, estimation involves making an approximate calculation based on available information, uncertainty refers to situations where the probabilities cannot be estimated, and rationalization is the process of justifying a decision based on logical reasoning.

Question 2

Lonnie 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)all of the above
E)none of the above

Accepted Answer

The question is an example of planning for contingencies, as it is considering the possibility of unexpected events during the implementation of the chosen alternative.

Question 3

A decision maker's actions are guided by
A)personal decisions.
B)a goal.
C)an operating budget.
D)interpersonal relationships.
E)a code of honor.

Accepted Answer

A decision maker's actions are typically guided by a particular goal or objective. While personal decisions, operating budgets, interpersonal relationships, and codes of honor may all play a role in decision making, they are not necessarily the primary guiding factor.

Question 4

When _____ arises, a decision maker questions the decision made and searches for information to bolster it.
A)post-decision uncertainty
B)conflict reduction
C)rationalization bias
D)cognitive dissonance
E)positive reinforcement

Accepted Answer

Cognitive dissonance refers to the discomfort people experience when they hold conflicting beliefs or values. This discomfort motivates them to reduce the dissonance, often by rationalizing their decisions and seeking information that supports their choices. Therefore, when cognitive dissonance arises, a decision maker questions the decision made and searches for information to bolster it.

Question 5

Nonprogrammed decisions are usually made by
A)all employees within an organization.
B)union workers.
C)upper management.
D)middle management.
E)lower management.

Accepted Answer

Nonprogrammed decisions are complex, and they require judgment, evaluation, and insight from senior management because these decisions usually involve new, unusual, or unfamiliar problems. Middle and lower management are more likely to make programmed decisions because they deal with routine or repetitive problems. Union workers and all employees within an organization can be involved in decision-making processes, but they are not usually responsible for making nonprogrammed decisions.

Question 6

The rational decision-making approach assumes all of these EXCEPT that decision makers
A)have complete information.
B)are objective.
C)are systematic in their approach to decisions.
D)work in an organization that encourages logical choices.
E)make satisficing decisions.

Accepted Answer

The rational decision-making approach assumes that decision makers have complete information, are objective, are systematic in their approach to decisions, and work in an organization that encourages logical choices. However, the approach does not assume that decision makers always make "satisficing" decisions, which means choosing an option that is satisfactory or "good enough" rather than the optimal solution.

Question 7

Contingency plans are a part of what phase of the decision-making process?
A)Stating the goal
B)Evaluating alternatives
C)Choosing an alternative
D)Implementation
E)Alternative generation

Accepted Answer

The answer of Contingency plans are a part of what...

Question 8

According to the rational decision-making approach, evaluate 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.

Accepted Answer

The answer of According to the rational decision-making approach, evaluate...

Question 9

______ decisions often involve situations that occur often in a company.
A)Nonprogrammed
B)Poorly structured
C)Creative
D)Major
E)Programmed

Accepted Answer

Programmed decisions refer to decisions that have a structured and repetitive nature. They occur frequently in a company and can be easily automated or delegated to lower-level employees.

Question 10

If a customer voices a complaint about food taste and temperature, some restaurants always provide a complimentary meal. This represents
A)a standard decision.
B)a decision rule.
C)a nonprogrammed decision.
D)experience.
E)cognitive dissonance.

Accepted Answer

Providing a complimentary meal in response to a customer complaint about food taste and temperature represents a decision rule. This is a predetermined response to a specific type of situation that the restaurant has established as their standard protocol.

Question 11

Which of these represent a basis for making programmed decisions?
A)Infrequency
B)Decision rules
C)Creativity
D)Movement
E)Group formation

Accepted Answer

Decision rules form the basis for making programmed decisions. These rules are established to ensure consistent and efficient decision-making in routine or repetitive situations.

Option A (infrequency) does not represent a basis for making programmed decisions as programmed decisions are made in routine situations, which are frequent.

Option C (creativity) is not a basis for making programmed decisions as these decisions rely on established rules and procedures that leave no room for creativity.

Option D (movement) and option E (group formation) are not relevant to the concept of programmed decisions.

Question 12

What is the second step of the decision-making process, according to the rational decision-making approach?
A)Identification of the problem
B)Determination of who will make the decision
C)The collection of pertinent data
D)The statement of goals
E)The establishment of rules and procedures

Accepted Answer

The answer of What is the second step of the...

Question 13

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

Accepted Answer

The step of measuring and adjusting the outcomes of the decision to the desired goal is known as the control step. This is the final step in the rational decision-making approach, where the decision-maker evaluates the effectiveness of the decision and makes adjustments if necessary. Therefore, the best choice would be B, which represents the control step.

Question 14

What information condition lies between certainty and uncertainty in making decisions?
A)Risk
B)Rationalization
C)Problem solving
D)Decision rules
E)Guesswork

Accepted Answer

The information condition that lies between certainty and uncertainty is known as risk. Risk is a situation where a decision maker is aware of various possible outcomes, but has insufficient information and knowledge to accurately predict the probability of each outcome occurring. In such situations, decision makers often resort to taking calculated risks by using available information and their judgment to select the best course of action.

Question 15

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

Accepted Answer

Decision making is the process of choosing one alternative from among several options. It involves evaluating the pros and cons of each possible outcome and selecting the best course of action based on the available information and individual preferences.

Question 16

Characteristics of nonprogrammed decisions include all but which of the following?
A)The decisions are poorly structured.
B)Time for solution is relatively long.
C)The consequences of decision making are far reaching.
D)The decisions are a primary responsibility of top management.
E)Goals are often vague.

Accepted Answer

Nonprogrammed decisions are unique and complex decisions that are not routine or repetitive in nature. Such decisions are generally poorly structured, time-consuming, and have far-reaching consequences. Goals for these decisions are often clear and specific, not vague. Also, top management is primarily responsible for making nonprogrammed decisions. Therefore, option D is not a characteristic of nonprogrammed decisions.

Question 17

Programmed decisions are most common at what level of the organization?
A)Lower
B)Top
C)Managerial
D)Subordinate
E)Middle

Accepted Answer

Programmed decisions are routine and repetitive, often made at the lower levels of an organization where tasks are more structured and predictable.

Question 18

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.

Accepted Answer

The decision-making conditions of certainty, uncertainty, and risk are relevant while evaluating alternatives. Certainty exists when the decision maker knows the outcome of each alternative; uncertainty exists when the decision maker cannot estimate the outcome of each alternative or even the likelihood of various outcomes; and risk exists when the decision maker lacks certainty about the eventual outcome but can estimate the probability of different outcomes. Evaluating alternatives involves assessing the potential outcomes and their likelihoods, which means that the decision-making conditions are relevant at this stage of the process.

Question 19

Decisions that recur infrequently and have no decision rules are _____ decisions.
A)certain
B)risk
C)programmed
D)nonprogrammed
E)uncertain

Accepted Answer

Nonprogrammed decisions require unique solutions and cannot be handled by routine decision rules. Decisions that recur infrequently also suggest that there is not a standard decision rule to apply. Therefore, nonprogrammed is the best choice.

Question 20

Characteristics of programmed decisions include all but which of the following?
A)Information is readily available.
B)More common at the lower levels in the organization.
C)They are well structured.
D)Judgment and creativity are the basis of solution.
E)Goals are clear and well known.

Accepted Answer

Programmed decisions are routine and repetitive, with clear and well-known goals, and have readily available information. They are more common at the lower levels of the organization and are well-structured, meaning they follow a set of guidelines or rules. Judgment and creativity are not the basis of the solution because programmed decisions adhere to specific procedures or protocols.

Quiz 8: Decision Making and Problem Solving

Sarah, a human resources manager at XYZ Services, can estimate the probability that a certain percentage of employees will take advantage of a proposed benefit plan. Sarah is operating under a condition of

A decision maker's actions are guided by

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

Nonprogrammed decisions are usually made by

The rational decision-making approach assumes all of these EXCEPT that decision makers

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

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

______ decisions often involve situations that occur often in a company.

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

Which of these represent a basis for making programmed decisions?

What is the second step of the decision-making process, according to the rational decision-making approach?

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?

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

Decision making is

Characteristics of nonprogrammed decisions include all but which of the following?

Programmed decisions are most common at what level of the organization?

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

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

Characteristics of programmed decisions include all but which of the following?