50.
Kathleen, a manager, is attempting to determine whether she has both the capability and
the resources to produce one of several possible new products. In the context of decision
making, on which of the following criteria of alternative courses of action is Kathleen
focusing?
A.
Practicality
B.
Ethicalness
C.
Legality
D.
Economic feasibility
While focusing on practicality, managers must decide whether they have the capabilities
and resources required to implement the alternative, and they must be sure that the
alternative will not threaten the attainment of other organizational goals.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
51.
Patrick, a manager, is assessing possible alternatives for the solution of a problem. Patrick
performs a cost-benefit analysis of several alternatives in order to determine the net
financial payoff of each alternative. Which of the following criteria of decision making is
Patrick implementing?
A.
Economic feasibility
B.
Practicality
C.
Ethicalness
D.
Legality
While focusing on economic feasibility, managers perform a cost-benefit analysis of the
various alternatives to determine which one will have the best net financial payoff.
Managers must decide whether the alternatives are economically feasible.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
52.
Cameron, a plant manager, wants to initiate a diversity training program in his plant. He is
considering whether his department has enough extra people to cover for the time his
employees will be engaged in the classes. Which of the following criteria of decision
making is Cameron implementing?
A.
Legality
B.
Practicality
C.
Devil’s advocacy
D.
Economic feasibility
While focusing on practicality, managers must decide whether they have the capabilities
and resources required to implement the alternative and they must be sure the alternative
will not threaten the attainment of other organizational goals.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
53.
Dale, a manager, is assessing possible alternatives for the solution of a quality problem in
his department. As Dale does so, he attempts to determine if a possible alternative will
threaten other company projects. Which of the following criteria of decision-making is
being implemented by Dale?
A.
Economic feasibility
B.
Practicality
C.
Legality
D.
Ethicalness
While focusing on practicality, managers must decide whether they have the capabilities
and resources required to implement the alternative, and they must be sure that the
alternative will not threaten the attainment of other organizational goals.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
54.
The explosion of the space shuttle
Challenger
is an example of poor managerial decision
making by the managers at NASA and Morton Thiokol, who considered and then
downplayed the criterion of ______.
A.
ethicalness
B.
practicality
C.
legality
D.
economic feasibility
In this case, the desire of NASA and Morton Thiokol managers to demonstrate to the
public the success of the U.S. space program in order to ensure future funding (economic
feasibility) conflicted with the need to ensure the safety of the astronauts (ethicalness).
Managers deemed the economic criterion more important and decided to launch the space
shuttle even though there were unanswered questions about safety. Managers must
ensure that a possible course of action is ethical and will not unnecessarily harm any
stakeholder group.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
55.
KJ, Inc., has received a poor rating for one of its newly launched products from the
customers. Joe, a top manager at KJ, Inc., is conducting a retrospective analysis and
compiling a formal procedure from the results of past decisions for future use. Which of
the following decision-making steps does the action of Joe represent?
A.
Generate alternatives
B.
Learn from feedback
C.
Recognize the need for a decision
D.
Implement the chosen alternative
The final step in the decision-making process is learning from feedback. Effective
managers always conduct a retrospective analysis to see what they can learn from past
successes or failures. To avoid the mistakes again, managers must establish a formal
procedure with which they can learn from the results of past decisions.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
56.
With reference to the steps of decision-making process, which of the following is the last
step in the managerial decision-making process?
A.
Generate alternatives
B.
Learn from feedback
C.
Recognize the need for a decision
D.
Implement the chosen alternative
The final step in the decision-making process is learning from feedback. Managers who
always strive to learn from past mistakes and successes are likely to continuously improve
the decisions they make. A significant amount of learning can take place when the
outcomes of decisions are evaluated, and this assessment can produce enormous
benefits.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Describe the six steps managers should take to make the best decisions.
Topic: Non-Programmed Decisions
57.
The pattern of faulty and biased decision making that occurs in groups whose members
strive for agreement at the expense of good decision making is called _________.
A.
brainstorming
B.
groupthink
C.
devil’s advocacy
D.
bounded rationality
Groupthink is a pattern of faulty and biased decision making that occurs in groups whose
members strive for agreement among themselves at the expense of accurately assessing
information relevant to a decision.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Identify the advantages and disadvantages of group decision making, and describe techniques
that can improve it.
Topic: Groupthink
58.
The marketing managers of Rudolf Ltd. strive so hard to agree on an important decision to
launch a product that they ignore information that a similar product already exists in the
market and that the barriers to entry into the market are high. This refers to which of the
following decision-making processes?
A.
Dialectical inquiry
B.
Devil’s advocacy
C.
Groupthink
D.
Intuition
Groupthink is a pattern of faulty and biased decision making that occurs in groups whose
members strive for agreement among themselves at the expense of accurately assessing
information relevant to a decision.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-03 Identify the advantages and disadvantages of group decision making, and describe techniques
that can improve it.
Topic: Groupthink
59.
Why is group decision making considered beneficial?
A.
It takes less time than individual decision-making.
B.
It is easy to get two or more managers to agree to the same solution.
C.
It allows more information processing and correction of errors.
D.
It cannot be undermined by biases.
Group decision making allows managers to process more information and to correct one
another’s errors. Groups often take much longer than individuals to make decisions.
Getting two or more managers to agree to the same solution can be difficult. Group
decision making can be undermined by biases.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Identify the advantages and disadvantages of group decision making, and describe techniques
that can improve it.
Topic: Groupthink
60.
A critical analysis of a preferred alternative to ascertain its strengths and weaknesses
before it is implemented, with the purpose of identifying all the reasons that might make
the preferred alternative unacceptable, is a ________.
A.
dialectical inquiry
B.
devil’s advocacy
C.
groupthink
D.
delphi technique
Devil’s advocacy is a critical analysis of a preferred alternative to ascertain its strengths
and weaknesses before it is implemented. The purpose is to identify all the reasons that
might make the preferred alternative unacceptable. In this way, decision makers can be
made aware of the possible perils of recommended courses of action.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Identify the advantages and disadvantages of group decision making, and describe techniques
that can improve it.
Topic: Devil’s Advocacy
61.
Aiden, a manager, is involved in group decision making with other managers. As part of the
process, he challenges the way the group evaluated alternatives and points out some
reasons why the alternative preferred by the group is not acceptable. He tries to ascertain
the strengths and weaknesses of the preferred alternative before its implementation.
What is the approach followed by Aiden?
A.
Delphi technique
B.
Devil’s advocacy
C.
Nominal group technique
D.
Production blocking
Devil’s advocacy is a critical analysis of a preferred alternative to ascertain its strengths
and weaknesses before it is implemented. A member of the decision-making group plays
the role of devil’s advocate and critiques and challenges the way the group evaluated
alternatives and chose one over the others. The purpose is to identify all the reasons that
might make the preferred alternative unacceptable. Decision makers can be made aware
of the possible perils of recommended courses of action.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Identify the advantages and disadvantages of group decision making, and describe techniques
that can improve it.
Topic: Devil’s Advocacy
62.
Managers can increase their ability to make nonprogrammed decisions that will allow
them to adapt to, modify, and even drastically alter their task environments so that they
can continually increase organizational performance through organizational ________.
A.
learning
B.
satisficing
C.
group thinking
D.
diversity
Organizational learning is the process through which managers seek to improve
employees’ desire and ability to understand and manage the organization and its task
environment so employees can make decisions that continuously raise organizational
effectiveness.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
63.
In managerial decision making, the ability of a manager to discover novel ideas that lead to
alternative courses of action for the organization to use for solving a particular problem is
known as ________.
A.
groupthink
B.
satisficing
C.
innovation
D.
creativity
Creativity is the ability of a decision maker to discover original and novel ideas that lead to
feasible alternative courses of action.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
64.
At the heart of organizational learning is ________.
A.
devil’s advocacy
B.
risk-taking
C.
satisficing
D.
creativity
At the heart of organizational learning is creativity, which is the ability of a decision maker
to discover original and novel ideas that lead to feasible alternative courses of action.
Difficulty: 1 Easy
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
65.
To create a learning organization, managers must empower employees and allow them to
experiment, create, and explore what they want through developing a sense of ________.
A.
personal mastery
B.
mental models
C.
team learning
D.
shared vision
To develop a sense of personal mastery among employees, managers must empower
employees and allow them to experiment and create and explore what they want.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
66.
Jack, a manager, allows Adam, his subordinate, to proceed on a work project even though
Jack does not agree with how Adam wants to do the work. Jack is attempting to promote
_________ to create a learning organization.
A.
personal mastery
B.
mental models
C.
team learning
D.
shared vision
By allowing Adam to proceed, Jack allows Adam to experiment, create, and explore what
he wants, to develop a sense of personal mastery. For organizational learning to occur, top
managers must allow every person in the organization to develop a sense of personal
mastery. Managers must empower employees and allow them to experiment, create, and
explore what they want.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
67.
Adrian, a manager of the research and development team of an organization, challenges
his subordinates to “think outside the box” to improve the way the unit does its work.
Adrian is focusing on ________.
A.
personal mastery
B.
mental models
C.
team learning
D.
shared vision
Organizations need to encourage employees to develop and use complex mental models.
Mental models are sophisticated ways of thinking that challenge employees to find new or
better ways of performing a task to deepen their understanding of what is involved in a
particular activity.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
68.
A sales manager talks with his subordinates about the way they should treat customers.
The sales manager is focusing on the _________ aspect of creating a learning
organization.
A.
personal mastery
B.
groupthink
C.
team learning
D.
shared vision
A shared vision is a common mental model that all organizational members use to frame
problems or opportunities. In this situation, the manager is trying to create a common
mental model that all members will use to frame problems or opportunities.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
69.
The idea that one level of learning affects other levels is part of the _________ principle of
creating a learning organization.
A.
systems thinking
B.
mental models
C.
team learning
D.
shared vision
While focusing on systems thinking, managers must recognize the effects of one level of
learning on another.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
70.
A group of managers meets face-to-face and generates and debates a wide variety of
alternatives from which to make a decision. What is this process of decision making
called?
A.
Delphi technique
B.
Dialectical inquiry
C.
Brainstorming
D.
Nominal group technique
Brainstorming is a group problem-solving technique in which managers meet face–to-face
to generate and debate a wide variety of alternatives from which to make a decision.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization
71.
After one person shares an idea, the next thing that should happen in a brainstorming
session is ________.
A.
criticism of the idea
B.
sharing of other ideas
C.
acceptance and implementation of the idea
D.
ranking of the idea
During brainstorming, after a manager describes in broad outline the problem the group is
to address, group members share their ideas and generate alternative courses of action.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Explain the role that organizational learning and creativity play in helping managers to improve
their decisions.
Topic: Learning Organization