1. Making a choice is the most significant part of the decision-making process.
a. True
b. False
2. A decision is a choice made from available alternatives.
a. True
b. False
3. Programmed decisions are decisions that are made for situations that have occurred often in the past and allow
decision rules to be developed to guide future decisions.
a. True
b. False
4. Two employees in Stacey’s department quit which is normal for her department. She is faced with the decision to
fill these positions. This would be considered a nonprogrammed decision.
a. True
b. False
5. Gerald’s Groceries and Marty‘s Market decided to merge their operations, something neither company has tried
before. This would be considered a nonprogrammed decision.
a. True
b. False
6. In the real world, few decisions are certain.
a. True
b. False
7. The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes.
a. True
b. False
8. Uncertainty means that a decision has clear–cut goals, and that good information is available, but the future
outcomes associated with each alternative are subject to chance.
a. True
b. False
9. .A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to
define, and information about outcomes is unavailable refers to ambiguity.
a. True
b. False
10. The approach that managers use to make decisions usually falls into one of three types – the classical model, the
administrative model, and the political model.
a. True
b. False
11. The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.
a. True
b. False
12. The administrative model of decision making describes how managers actually make decisions in difficult situations.
a. True
b. False
13. Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their
decisions are characterized by bounded rationality.
a. True
b. False
14. The classical model of decision-making works best in organizations that are made up of groups with diverse
interests, goals, and values.
a. True
b. False
15. Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria
regardless of whether better solutions are expected to exist.
a. True
b. False
16. Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought.
a. True
b. False
17. According to both research and managerial experience, intuitive decisions are best and always work out.
a. True
b. False
18. The process of forming alliances among managers is called coalition building.
a. True
b. False
19. The political model consists of vague problems and goals, limited information about alternatives and their outcomes,
and a satisficing choice for resolving problems using intuition.
a. True
b. False
20. Good intuitive decision making is based on an ability to recognize patterns at lightning speed.
a. True
b. False
21. Administrative and political decision making procedures and intuition have been associated with high performance in
unstable environments in which decisions must be made rapidly and under more difficult conditions.
a. True
b. False
22. Managers confront a decision requirement in the form of either a problem or an opportunity.
a. True
b. False
23. Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood
require only one step.
a. True
b. False
24. Step one in the managerial decision–making process is recognition of decision requirement.
a. True
b. False
25. For a non-programmed decision, feasible alternatives are hard to identify and in fact are already available within the
organization’s rules and procedures.
a. True
b. False
26. The best alternative is the one in which the solution best fits the overall goals and values of the organization and
achieves the desired results using the fewest resources.
a. True
b. False
27. The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the
chosen alternative is carried out.
a. True
b. False
28. Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.
a. True
b. False
29. In the implementation stage, decision makers gather information that tells them how well the decision was
implemented and whether it was effective in achieving its goals.
a. True
b. False
30. Feedback is the part of monitoring that assesses whether a new decision needs to made.
a. True
b. False
31. People who prefer simple, clear-cut solutions to problems use the directive style.
a. True
b. False
32. Managers with an analytical decision style like to consider complex solutions based on as much data as they can
gather.
a. True
b. False
33. The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as
they can gather.
a. True
b. False
34. Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style.
a. True
b. False
35. The most effective managers are consistent in using their own decision style rather than shifting among styles.
a. True
b. False
36. Most bad decisions are errors in judgment that originate in the human mind‘s limited capacity and in the natural
biases of the manager.
a. True
b. False
37. Justifying past decisions is a common bias of managers.
a. True
b. False
38. Managers will frequently look for new information that contradicts thier instincts or original point of view..
a. True
b. False
39. Most people underestimate their ability to predict uncertain outcomes.
a. True
b. False
40. Brainstorming uses a face–to-face interactive group to spontaneously suggest a wide range of alternatives for
decision making.
a. True
b. False
41. Brainwriting refers to the tendency of people in groups to suppress contrary opinions.
a. True
b. False
42. Groupthink refers to the tendency of people in groups to suppress contrary opinions.
a. True
b. False
43. Devil’s advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging
other group member’s assumptions.
a. True
b. False
44. Point-counterpoint is a decision-making technique in which people are assigned to express competing points of
view.
a. True
b. False
45. Managers are often referred to as:
a. decision makers.
b. peace makers.
c. conflict creators.
d. an unnecessary layer of employees.
e. profit suppressor.
46. is a vital part of good management because decisions determine how the organization solves its problems,
allocates resources, and accomplishes its goals.
a. Organizing
b. Competitive visioning
c. Proper alignment
d. Good decision making
e. Leadership
47. Which of the following is a choice made from available alternatives?
a. Decision
b. Plan
c. Goal
d. Tactic
e. Strategy
48. Mark, a production manager at Kaylie‘s Kookware, recently chose to schedule his workers to work overtime. His
alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of
_____.
a. planning
b. decision-making
c. organizing
d. controlling
e. leading
49. refers to the process of identifying problems and then resolving them.
a. Organizing
b. Controlling
c. Decision-making
d. Planning
e. Leading
50. decisions are associated with decision rules.
a. Nonprogrammed
b. Unique
c. Programmed
d. Ill-structured
e. Novel
51. Programmed decisions are made in response to organizational problems.
a. unusual
b. recurring
c. significant
d. minor
e. unique
52. Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension.
Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an
example of:
a. a programmed decision.
b. a nonprogrammed decision.
c. an insignificant decision.
d. poor management.
e. personal grudge.
53. Nordstrom Department store’s “No questions asked – Return’s Policy” is an example of a(n):
a. programmed decision.
b. nonprogrammed decision.
c. novel decision.
d. poor management.
e. unstructured decision.
54. If your instructor has an attendance policy, she/he is using a(n):
a. programmed decision.
b. unique approach.
c. condition of ambiguity.
d. nonprogrammed decision.
e. none of these.
55. Examples of nonprogrammed decisions would include the decision to:
a. reorder supplies.
b. develop a new product or service.
c. perform routine maintenance on one of the machines in manufacturing.
d. terminate an employee for violation of company rules.
e. fill a position.