Question 1

A disadvantage of using interacting groups to make decisions is
A) group politics.
B) void of expert opinion.
C) an increase in programmed costs.
D) faster decision making.
E) too much brainstorming.

Accepted Answer

Group politics refers to the various dynamics, biases, and personal interests that can influence decision-making in group settings. This can lead to decisions that may not be in the best interest of the organization or may favor certain individuals or groups within the organization.

Question 2

A Delphi group is not used daily because it has disadvantages.Which of the following is NOT its disadvantage?
A) Time
B) Expense
C) Logistics
D) Process
E) Expert cooperation

Accepted Answer

The statement mentions the disadvantages of using a Delphi group, and does not seem to indicate that lack of expert cooperation is one of them. Therefore, E is the answer as it is not a disadvantage mentioned in the statement.

Question 3

Which of the following is NOT an example of an interacting group?
A) Standing committee
B) Task force
C) Delphi group
D) Functional department
E) Ad hoc committee

Accepted Answer

A Delphi group is characterized by the absence of direct interaction among its members. Instead, it relies on a process of collecting and aggregating the opinions of experts through questionnaires, often conducted in multiple rounds to reach a consensus. This method contrasts with the direct, face-to-face or collaborative interactions typical of standing committees, task forces, functional departments, and ad hoc committees.

Question 4

Charles is a CEO.He wants to hire Edward for a key position on his staff.Charlie has already decided to relocate the headquarters to another state,but it has not been announced publicly.He is afraid that if he tells Edward about the move,then Edward will not want the job.Edward accepts the position and six months later the move is announced.Which of the following behavioral aspects was most likely involved in Charles' decision not to tell Edward?
A) Coalition
B) Escalation of commitment
C) Political forces
D) Ethics
E) Bounded rationality

Accepted Answer

Charles' decision not to tell Edward about the move involves ethical considerations, as withholding such significant information can impact Edward's personal and professional decisions.

Question 5

Which of the following statements is an advantage of group decision making?
A) Groups typically spend a lot of time interacting and discussing.
B) Groups often represent diversity of education and experience.
C) Leaders can shine in groups.
D) Groups tend to desire consensus and cohesiveness.
E) Groups typically reach compromise decisions.

Accepted Answer

Group decision making can benefit from diversity of perspectives and experiences. Therefore, having a group with members who have different educational backgrounds and varied experiences can add value through the various viewpoints and ideas that surface.

Question 6

If you make a decision that does not turn out as planned Warren Buffet advises,"When you find yourself in a hole,stop digging." What behavioral influence on decision making does this advice attempt to prevent?
A) Intuition
B) Escalation of commitment
C) Empathy
D) Risk propensity
E) Political forces

Accepted Answer

This advice attempts to prevent escalation of commitment, which is the tendency to continue investing time, money, or resources into a decision that is not working out, in the hopes of turning it around. By telling people to "stop digging" when they are in a hole, Buffet is advising them to recognize when a decision is not working out and to cut their losses before they become more entrenched.

Question 7

Groups that are used to develop a consensus of expert opinion without the members of the group ever meeting face to face are called ____ groups.
A) interacting
B) Delphi
C) nominal
D) unilateral
E) task

Accepted Answer

Delphi groups are specifically designed to gather expert opinions through a structured process of anonymous feedback and iterations of questionnaires, without the need for face-to-face meetings.

Question 8

Renee made a bad decision.She stays with it,trying to convince others it was a good decision.This is an example of
A) bounded optimization.
B) escalation of commitment.
C) programmed decision making.
D) strategic maximization.
E) intuitive rationality.

Accepted Answer

This is an example of escalation of commitment, where an individual or organization continues to invest time, money, or resources into a failing decision in an attempt to justify or salvage it. Renee is trying to convince others that her decision was a good one, even though it has proven to be a bad one. This behavior is characteristic of escalation of commitment, which can result in significant losses or negative outcomes.

Question 9

Beth and Dave are selling their home through a realtor.The realtor's commission is 3 percent of the closing price,so the realtor should want a high selling price.However,when the first offer came in 20 percent below asking price,the realtor pushed Beth and Dave to accept.They declined because they felt the realtor just wanted to move on to the next sale.Beth and Dave used ______ to make their decision.
A) the optimization principle
B) the iceberg principle
C) synergy
D) empathy
E) intuition

Accepted Answer

Beth and Dave used their intuition to make their decision, as they felt that the realtor was not acting in their best interests by pushing them to accept a low offer. They likely relied on their instincts and personal judgment to make this decision.

Question 10

Which of the following statements does NOT describe a characteristic of the nominal group technique?
A) Members are not free to talk to one another.
B) Members individually write down their suggested alternatives.
C) Alternatives are listed on a flip chart.
D) The alternative with the most votes is the solution.
E) Members verbally vote for their first choice.

Accepted Answer

The answer of Which of the following statements does NOT...

Question 11

A manager who has a low-risk propensity would
A) use the rational decision-making model.
B) rely on intuition for his or her decision making.
C) make decisions aggressively.
D) reach decisions quickly.
E) easily invest large sums of money in support of his or her decisions.

Accepted Answer

A manager with a low-risk propensity would prefer to use the rational decision-making model, which involves a thorough analysis of alternatives and their potential outcomes, in order to minimize risks and maximize benefits. Such a manager is likely to take a cautious and careful approach to decision making, rather than relying on intuition, making quick decisions or investing large sums of money hastily.

Question 12

The Blue Rooster was a restaurant near a lake.When super storm Sandy hit New Jersey,the lake overflowed and flooded the Blue Rooster.Because the restaurant had no flood insurance,it was never able to recover from the storm and closed a short time later.The owner's ______ led to the bad decision about flood insurance.
A) bounded optimization.
B) escalation of commitment.
C) risk propensity.
D) strategic maximization.
E) intuitive rationality.

Accepted Answer

The owner's risk propensity, or willingness to take or avoid risk, led to the decision not to purchase flood insurance, which ultimately resulted in the restaurant's inability to recover from the flood damage caused by Super Storm Sandy.

Question 13

A(n)____ group is the most common form of a decision-making group.
A) interacting
B) Delphi
C) nominal
D) unilateral
E) task

Accepted Answer

Interacting groups are the most common form of decision-making groups because they involve face-to-face interactions among members who share information, discuss ideas, and make decisions together in real time. This type of group allows for more immediate feedback and active participation from all group members, leading to more effective decision-making outcomes. The other types of groups listed (Delphi, nominal, unilateral, task) are less common or serve different functions than decision-making.

Question 14

The first step in using the Delphi procedure is to
A) recognize the problem.
B) collect potential alternatives.
C) agree that the decision will not be optimized.
D) obtain the cooperation of a panel of experts.
E) create staff positions for group members.

Accepted Answer

The Delphi procedure involves obtaining the cooperation of a panel of experts, who participate anonymously in a series of rounds to achieve consensus and make decisions. Therefore, the first step would be to obtain the cooperation of these experts.

Question 15

One advantage of group decision making is
A) groupthink.
B) compromise.
C) diversity of members' backgrounds.
D) lowered cost of decision making.
E) ability of a strong individual to dominate the group.

Accepted Answer

Diversity of members' backgrounds is an advantage of group decision making because it brings a variety of perspectives and ideas, leading to more comprehensive and effective solutions.

Question 16

Charlie feels each of the alternatives is basically the same.He decides based on his gut feeling.Which of the behavioral factors that influence decision making does Charlie's behavior reflect?
A) The optimization principle
B) The iceberg principle
C) Synergy
D) Empathy
E) Intuition

Accepted Answer

Charlie's behavior reflects reliance on intuition, which is a behavioral factor that influences decision making. He is making a decision based on his gut feeling, without considering any logical or rational factors that may differentiate the alternatives. Therefore, the best choice would be E, which corresponds with intuition.

Question 17

YouTube was operating at a loss when Google bought it.Three years later it was still operating at a loss.Google may have experienced ____.
A) intuition
B) escalation of commitment
C) empathy
D) risk propensity
E) political forces

Accepted Answer

Escalation of commitment refers to a situation where a decision-maker continues to invest resources (time, money, etc.) in a failing project, even though the evidence suggests that it is unlikely to succeed. Google's decision to continue operating YouTube at a loss for several years after acquiring it could be seen as an example of this phenomenon. Despite mounting losses, they may have felt compelled to continue investing in the platform due to their initial investment and the potential for future returns.

Question 18

William invested in an initial public offering.After a month he lost 5 percent.After a year he lost 50 percent.After two years he lost 80 percent.William's decision to keep the investment is an example of
A) bounded optimization.
B) escalation of commitment.
C) programmed decision making.
D) strategic maximization.
E) intuitive rationality.

Accepted Answer

William's decision to keep the investment even after experiencing consecutive losses is an example of escalation of commitment. This means that he continued to invest in the hope of redeeming his losses, despite evidence suggesting that his investment was not performing well. It is a common human tendency to invest more in a failing venture in the hope of making up for the previous losses. This decision-making pattern is called escalation of commitment.

Question 19

The CIO at Canon is considering an information system upgrade.He goes to each of the division heads to discuss their information needs and system capabilities.The CIO narrows the options,and contacts the executives again,reaching agreement before purchasing a system.Which group decision-making technique does this represent?
A) Interacting
B) Delphi
C) Nominal
D) Unilateral
E) Task

Accepted Answer

The answer of The CIO at Canon is considering an...

Question 20

Diaz Nesamoney is a computer scientist who founded three successful software companies.Entrepreneurs tend to have a high ____
A) bounded optimization.
B) escalation of commitment.
C) risk propensity.
D) strategic maximization.
E) intuitive rationality.

Accepted Answer

The question asks for a trait commonly associated with entrepreneurs, and the best choice is (C) risk propensity. Entrepreneurs are known for taking risks, making unconventional decisions and being willing to invest time and resources in pursuing their visions. While some entrepreneurs may also have other traits listed in the answer choices, such as strategic thinking or intuition, the question specifically asks for the "high" trait, which risk propensity fits best. Bounded optimization, escalation of commitment, strategic maximization, and intuitive rationality might not be necessarily associated with entrepreneurs.

Quiz 8: Managing Decision Making and Problem Solving

A disadvantage of using interacting groups to make decisions is

A Delphi group is not used daily because it has disadvantages.Which of the following is NOT its disadvantage?

Which of the following is NOT an example of an interacting group?

Which of the following statements is an advantage of group decision making?

If you make a decision that does not turn out as planned Warren Buffet advises,"When you find yourself in a hole,stop digging." What behavioral influence on decision making does this advice attempt to prevent?

Groups that are used to develop a consensus of expert opinion without the members of the group ever meeting face to face are called ____ groups.

Renee made a bad decision.She stays with it,trying to convince others it was a good decision.This is an example of

Which of the following statements does NOT describe a characteristic of the nominal group technique?

A manager who has a low-risk propensity would

A(n) ____ group is the most common form of a decision-making group.

The first step in using the Delphi procedure is to

One advantage of group decision making is

Charlie feels each of the alternatives is basically the same.He decides based on his gut feeling.Which of the behavioral factors that influence decision making does Charlie's behavior reflect?

YouTube was operating at a loss when Google bought it.Three years later it was still operating at a loss.Google may have experienced ____.

William invested in an initial public offering.After a month he lost 5 percent.After a year he lost 50 percent.After two years he lost 80 percent.William's decision to keep the investment is an example of

Diaz Nesamoney is a computer scientist who founded three successful software companies.Entrepreneurs tend to have a high ____