1. Which of the following is an example of a programmed decision situation?
a. Arranging financing for constructing a new $50 million office building
b. Reorder of raw materials from an established supplier
c. Purchase of a new mainframe computer
d. A firm’s purchase consideration of a parts manufacturer
2. All of the following are characteristics of a nonprogrammed decision situation except:
a. complex.
b. routine.
c. unstructured.
d. new.
3. The initial step in a problem solving, decision situation is:
a. problem recognition.
b. data analysis.
c. generation of alternatives.
d. feedback.
4. The final step in the decision-making process is:
a. implementation.
b. exploring alternatives.
c. feedback and monitoring.
d. selecting a course of action.
5. Intuition would be a major part of the input for a manager making which kind of decision?
a. Decisions on work schedules
b. Routine decision
c. A decision with an established decision rule
d. Nonprogrammed decision
6. The rational model of decision making assumes:
a. preferences of the decision maker are inconsistent.
b. that all possible alternatives can‘t be known to decision makers.
c. that outcomes can’t be optimized.
d. that the decision maker can calculate the probability of success for alternatives.
7. In the rational model, the decision maker strives to:
a. satisfice.
b. optimize.
c. select the alternative agreeable to the majority.
d. apply a heuristic.
8. Under the bounded rationality model of problem solving and decision making:
a. managers follow statistical rules for decision making.
b. managers critically view the world as complex and multivariate.
c. managers generate a wide array of decision options and select the one that meets all decision criteria.
d. managers are comfortable making decisions without identifying all options.
9. The model of bounded rationality was first proposed by .
a. Victor Vroom
b. Phillip Yetton
c. Herbert Simon
d. Carl Jung
10. An important element of the bounded rationality model is .
a. certainty
b. satisficing
c. unlimited information search
d. optimizing
11. Heuristics are:
a. algorithms based on complex decision making.
b. complex decision rules used in complex situations.
c. shortcuts in decision making that save mental activity.
d. mathematical approaches to decision making.
12. According to research, which of the following decision-making models portrays the managerial decision process
more realistically?
a. The rational model
b. The garbage can model
c. The bounded rationality model
d. The incremental model
13. GM CEO Rick Wagoner stuck to a cost cutting strategy that streamlined GM’s operations and focused on SUVs
and trucks during a time when other automakers saw promise in the green movement. This behavior best reflects:
a. satisficing.
b. risk aversion.
c. escalation of commitment.
d. the garbage can model of decision making.
14. Which of the following is an effective way of managing decisions in order to avoid escalation of commitment?
a. Don’t split the responsibility for decisions about projects.
b. Punish people who admit to poor decisions.
c. Don’t allow graceful exits from poor decisions.
d. Have groups rather than individuals make initial investment decisions.
15. Research indicates that women are:
a. less averse to risk than men.
b. more averse to risk than men.
c. the same as men with respect to risk aversion.
d. more inclined to commit resources to a losing course of action than men.
16. Which of the following best represents the three reasons why managers may hang on to a losing course of action or
escalate their commitment?
a. Internal locus of control, cognitive dissonance, and overly optimistic
b. Cognitive dissonance, overly optimistic, and illusion of control
c. External locus of control, overly optimistic, and cognitive dissonance
d. Internal locus of control, cognitive dissonance, and illusion of control
17. Which of the following is NOT one of the explanations for the escalation of commitment?
a. Cognitive dissonance theory
b. Optimism
c. Illusion of control
d. High or low self-monitoring
18. Recent research investigating the characteristics that make an individual more likely to de-escalate from a course
of action concluded that:
a. individuals with a strong dislike for inconsistency are more likely to de-escalate.
b. individuals whose past decisions failed are more likely to de–escalate.
c. individuals with an external locus of control are more likely to de-escalate.
d. individuals with high self-esteem are more likely to de–escalate.
19. When GM continued with a cost cutting strategy that streamlined their operations and focused on SUVs and trucks
while losing 82 billion dollars they most likely reflected:
a. risk aversion.
b. escalation of commitment.
c. entrapment.
d. the gambler’s fallacy.
20. Continuing to support a failing course of action is known as:
a. the theory of sunk costs.
b. the Z problem solving model.
c. conflicted reason theory.
d. escalation of commitment.
21. The fourth step in the Z model of problem solving is:
a. data collection.
b. problem diagnosis.
c. impact analysis.
d. objective analysis of alternatives.
22. Step one of the Z model uses to gather information.
a. sensing
b. intuiting
c. thinking
d. feeling
23. An individual’s preferred method for gathering information and evaluating alternatives is known as .
a. cognitive style
b. mental maps
c. thinking script
d. escalation of commitment
24. The first step in the Z problem solving model uses which of the following to gather information about the problem?
a. Feeling
b. Sensing
c. Intuiting
d. Thinking
25. In the consideration of whether the right or the left part of the brain should be utilized in decision making, the ideal
situation is to be:
a. right brain dominant.
b. left brain dominant.
c. brain-neutralized.
d. brain-lateralized.
26. Which of the following types of activities or decisions is the right side of the brain best used for?
a. Flowcharting work processes
b. Developing strategic plans
c. Planning day-to–day operations
d. Making tax preparations
27. An incorrect assumption about the use of intuition in making decisions is that:
a. it is seldom a positive force.
b. it is fast or leads to quick decisions.
c. it involves learned patterns of information.
d. it is an elusive concept and one with many definitions.
28. The research conducted by Henry Mintzberg regarding intuition and managerial roles suggests that:
a. managers rarely use intuition.
b. in most cases managers use a systematic step–by–step approach to decision making.
c. managers make judgments based on hunches.
d. intuition has not been shown to be very effective as an antidote to over analysis.
29. Research on intuition, suggests all of the following can be techniques used by managers to tap into their intuition
except:
a. practicing relaxation techniques.
b. using images to guide the mind.
c. taking creative pauses before making a decision.
d. using decision heuristics and satisficing.
30. The stage of creativity where one engages in other activities while the mind considers a problem and works on it is
_____.
a. preparation
b. illumination
c. incubation
d. testing
31. Which of the following does NOT boost creative abilities or creativity?
a. Breadth of interests
b. Self-confidence
c. Fear of failure
d. Intellectual and artistic values
32. An organization should practice or provide all of the following except
creativity.
a. close supervision
b. participative decision making
c. peer support
d. flexible organizational structure
if it wants to encourage employee
33. Research has indicated that creative performance is highest when:
a. employees are rewarded for being logical during decision making.
b. an organization encourages employees to strive for practicality.
c. individuals avoid problems outside their expertise for fear of being punished.
d. there is a fit between an individual and organizational influences on creativity.
34. Searching for the right answer and avoiding problems outside of one‘s own expertise would be considered an
examples of a(n) .
a. mental lock
b. rigid cognitive structure
c. mental block
d. inflexible mind map
35. In the context of types of creativity, which of the following is NOT a type of creativity?
a. Responsive
b. Expected
c. Contributory
d. Reactive
36. Research on the impact of moods on tasks that involve considerable cognitive demands suggests that:
a. positive moods result in better performance.
b. negative moods result in better performance.
c. a person’s mood doesn’t really make a difference on his or her tasks.
d. there is a curvilinear relationship between mood and tasks requiring high cognitive demands.
37. Responsive creativity is:
a. discovering problems because you want to be creative.
b. discovering problems because you are expected to by the organization.
c. responding to problems presented to you because you want to be creative.
d. responding to a problem that is presented to you by others because it is part of your job.
38. Participative decision making tends to be associated with:
a. interpersonal rivalry within a group.
b. less creativity among employees.
c. rapid decision making.
d. higher levels of employee job satisfaction.
39. A key organizational requirement for participation in decision making includes:
a. organizational politics.
b. a workforce consisting of individuals with low self-esteem.
c. a supportive organizational culture.
d. people with individual motivation.
40. Which of the following is NOT considered to be an individual prerequisite for participation and empowerment?
a. Capability for psychological involvement
b. Motivation to act autonomously
c. Increased complexity of the tasks to be carried out
d. Ability to see relevance for one’s own well being
41. Recent research on group versus individual decisions suggests that:
a. individuals will outperform groups on judgement tasks.
b. individuals outperform groups in all conditions.
c. groups outperform individuals in tasks that have a correct solution.
d. groups outperform individuals when the group members have worked together for longer periods of time.
42. An approach to minimize groupthink is to:
a. manipulate group members in order to increase peer pressure.
b. encourage rationalization.
c. denigrate the opposition.
d. re-examine the preferred solution even if consensus has been reached.
43. Which of the following would NOT be considered a symptom of groupthink?
a. Illusion of invulnerability
b. Rationalization
c. Illusion of unanimity
d. High conflict
44. A deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressures defines
_____.
a. group polarization
b. groupthink
c. the risky shift
d. the recency effect
45. High cohesiveness, directive leadership, and high stress are antecedent conditions for:
a. a low quality group decision.
b. group polarization.
c. groupthink.
d. satisficing.