Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
File: Chapter 3: Managers as Decision Makers
Multiple Choice
1. Identifying and taking action to resolve problems is called __________.
a) problem solving
b) information competency
c) information management
d) inquiring
2. Which of the following terms refers to the ability to gather and use information to solve
problems?
a) Problem solving
b) Information competency
c) Information disbursement
d) Inquiring
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
3. Karen, a human resource manager, studies the turnover patterns in her company. She examines
the various factors that contribute to the employee turnover and develops effective engagement
programs to improve employee loyalty. Which of the following types of competency does this
scenario illustrate?
a) Information competency
b) Analytical competency
c) Technological competency
d) Financial competency
4. A __________ is a situation where something is wrong or likely to be wrong.
a) danger
b) potential danger
c) performance threat
d) mistake
5. Information competency involves all of the following skills EXCEPT:
a) locating appropriate data.
b) evaluating data for information potential.
c) organizing information.
d) analyzing information to make decisions.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
6. James is a proactive information gatherer and a forward-thinking manager. He is an example
of a:
a) problem seeker.
b) problem avoider.
c) problem creator.
d) problem solver.
7. Managers who ignore information that would otherwise signal the presence of a performance
threat or opportunity, and who prefer not to make decisions are called:
a) problem seekers.
b) problem avoiders.
c) problem creators.
d) problem solvers.
8. A situation that offers the possibility of a better future if the right steps are taken is called a
__________.
a) performance threat
b) potential problem
c) performance opportunity
d) future problem
9. Jessica approaches a problem in a flexible and spontaneous fashion. Which of the following
approaches to thinking does she employ?
a) Programmed thinking
b) Sensational thinking
c) Systemic thinking
d) Intuitive thinking
10. If you are a systematic thinker, you will:
a) try to stay very flexible in your thinking.
b) generally be spontaneous.
c) be analytical in your approach.
d) be creative in your methods.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
11. The three different conditions or problem environments in which managers make decisions
are:
a) good, neutral, and bad.
b) certain, risk, and uncertain.
c) absolute, uncertain, and indeterminate.
d) certain, absolute, and risk.
12. A(n) __________ environment, in which managers make decisions, lacks so much
information that it is difficult to assign probabilities to the likely outcome of alternatives.
a) uncertain
b) bad
c) improbable
d) risk
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
13. __________ are managers who are comfortable with intangibles and value flexibility and
human relationships.
a) Risk takers
b) Intuitive feelers
c) Sensation thinkers
d) Intuitive thinkers
14. __________ are comfortable with abstraction and unstructured situations. They tend to be
idealistic, prone toward intellectual and theoretical positions, and are logical and impersonal.
a) Sensation feelers
b) Intuitive thinkers
c) Sensation thinkers
d) Intuitive feelers
15. An environment in which managers have complete information on possible alternatives and
their consequences for them to make decisions is called a __________ environment.
a) favorable
b) good
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
c) certain
d) risk
16. An environment for making decisions in which information is incomplete, yet one can still
reasonably estimate probabilities for the outcomes of various options is called a(n):
a) risk environment.
b) certain environment.
c) uncertain environment.
d) programmed environment.
17. A(n) __________ is a choice among possible alternative courses of action.
a) alternative
b) inquiry
c) guess
d) decision
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
18. A __________ decision applies a pre-existing solution to a routine problem.
a) correct
b) programmed
c) nonprogrammed
d) complex
19. A __________ decision crafts a unique solution to a new and unstructured problem.
a) simple
b) programmed
c) nonprogrammed
d) questionable
20. Joe, an HR manager, responds to several routine calls that take up a considerable part of his
working hours. He tasks his team of information technology experts to develop auto-response
software that would reduce the number of times he has to be involved personally. In this
scenario, Joe has made a __________ decision to implement a __________ decision.
a) difficult; complex
b) nonprogrammed; programmed
c) programmed; nonprogrammed
d) complex; difficult
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
21. Which of the following factors determines whether a decision is programmed or
nonprogrammed?
a) Whether the problem is new or routine
b) The number of people involved in the outcome
c) The amount of time available
d) The amount of money involved in the solution
22. Which of the following is the first step in the decision-making process?
a) Generating alternatives
b) Evaluating results
c) Defining the problem
d) Making the decision
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
23. Which of the following is NOT a common error in the first step of the decision-making
process?
a) Defining the problem too narrowly
b) Focusing on symptoms rather than causes
c) Choosing the wrong problem
d) Failing to consult the stakeholders
24. Which of the following practices should be followed in the first stage of the decision-making
process?
a) Performing a cost-benefit analysis
b) Adopting an optimizing decision
c) Evaluating the consequences of a decision
d) Focusing on a problem rather than on its symptoms
25. Which of the following is the second step in the decision-making process?
a) Deciding what to do
b) Evaluating the problem
c) Generating alternative courses of action
d) Implementing the decision
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
26. In the decision-making process, a cost-benefit analysis is used to:
a) evaluate results.
b) define a problem.
c) implement a decision.
d) generate alternative courses of action.
27. Comparing the costs and benefits of each potential course of action is called:
a) evaluation of results.
b) cost-benefit analysis.
c) strategic planning.
d) application of ethics double-check.
28. Which of the following is the third step in the decision-making process?
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
a) Gathering more information
b) Implementing the decision
c) Conducting a cost-benefit analysis
d) Deciding on a course of action
29. In the decision-making process, the classical and behavioral models could be used to:
a) evaluate results.
b) implement the decision.
c) decide on a course of action.
d) conduct a cost-benefit analysis.
30. The __________ decision model describes decision making with complete information.
a) classical
b) logical
c) behavioral
d) optimizing
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
31. Which of the following statements is true of the classical decision model?
a) It proposes that managers take optimizing decisions after considering available alternatives.
b) It holds that managers act only in terms of their perceptions, which are frequently imperfect.
c) It takes into account the cognitive limitations that prevent managers from being fully
informed.
d) It addresses the complexities involved in decision making in uncertain and risk environments.
32. While making decisions, Jason selects the alternative that provides the absolute best solution
to a problem. In this scenario, Jason takes a(n) __________ decision.
a) intuitive
b) optimizing
c) carefully implemented
d) satisficing
33. __________ limitations make it hard for managers to be fully informed and make perfectly
rational decisions in all situations.
a) Intuitive
b) Financial
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
c) Behavioral
d) Cognitive
34. The __________ decision model describes decision making with limited information and
bounded rationality.
a) participative
b) classical
c) behavioral
d) delegation
35. A decision that chooses the first satisfactory alternative that is presented is called a(n)
__________ decision.
a) optimizing
b) reasonable
c) satisficing
d) classical
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
36. The classical decision model views managers as attempting to provide __________
decisions.
a) behavioral
b) programmed
c) optimizing
d) satisficing
37. The behavioral decision model views managers as attempting to provide __________
decisions.
a) classical
b) satisficing
c) programmed
d) optimizing
38. The fourth step in the decision-making process is to:
a) evaluate results.
b) implement the decision.
c) conduct a cost-benefit analysis.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
d) generate alternatives.
39. A lack-of-participation error occurs when:
a) employees do not understand what the management wants them to do.
b) there is a shortage of employees to implement a decision.
c) employees are not capable of implementing a decision.
d) managers fail to include the right people in the decision-making process.
40. The final step in the decision-making process is to:
a) ensure that your options list has all possible alternatives.
b) search for the optimum decision.
c) gain support for your decision.
d) evaluate the results of your implemented decision.