CHAPTER 5—PROBLEM SOLVING AND DECISION MAKING
MULTIPLE CHOICE
1. A problem is technically defined as a discrepancy between the
a.
past and present.
b.
future and present.
c.
person’s wishes and desires.
d.
ideal and actual conditions.
2. The purpose of decision making is to
a.
analyze a problem.
b.
solve a problem.
c.
collaborate..
d.
involve people in the decisions.
3. In making a decision, the alternative should be chosen that most clearly
a.
is favored by top management.
b.
achieves the goal of the decision.
c.
saves the organization money.
d.
leads to innovation.
4. A major reason that decision making is often not such a rational process is that there are
a.
too many stages in decision making for most people to cope with.
b.
natural biases against diagnosing problems.
c.
few bounds to human decision-making capability.
d.
limits to how much information people can process and recall.
5. The purpose of a heuristic in decision making is to
a.
simplify the decision-making process.
b.
find a rapid way to explore more alternatives.
c.
obtain input from a large number of people.
d.
evaluate whether a decision was effective.
6. To say that a decision is based on political considerations means that it is not based on
a.
alliances with others.
b.
thoughts of acquiring power.
c.
both sides of an issue.
d.
the objective merits of the situation.
7. Emotional intelligence generally deals with the ability to
a.
connect with people and understand their emotions.
b.
stay in control while taking tests.
c.
knowing how to throw a tantrum for effect.
d.
using common sense to earn a living.
8. Billy is usually heavily influenced by the first information he receives on a topic. He is under the
influence of a process called
a.
anchoring.
b.
rationalizing.
c.
trial and error.
d.
emotional intelligence.
9. A recommendation for becoming more adept at making decisions under crisis conditions is
a.
to establish a special committee.
b.
to avoid taking risks.
c.
to anticipate crises
d.
to avoid speaking to the media.
10. Julio was going to recommend a new billing system for the hospital where he works. However, he
does not want to upset the executive who installed the system, so he does not make the
recommendation. Julio has fallen into the
a.
overconfidence trap.
b.
status quo trap.
c.
anchoring trap.
d.
creativity rut.
11. A frequent decision-making error during a crisis is to
a.
methodically search for alternatives
b.
become less rational and more emotional.
c.
become more rational and less emotional.
d.
welcome differences of opinion.
12. The purpose of visualization for making better decisions under crisis is to
a.
rehearse in your mind how you will react to the crisis.
b.
think of all the times you have failed in the past.
c.
engage in a pleasant fantasy to reduce your stress.
d.
imagine how angry your boss will be if your fail.
13. Marketing executive Jasmine likes to make a decision quickly as soon as enough information is
available, and she also likes to generate lots of options. Her decision-making style is therefore
characterized as,
a.
decisive.
b.
flexible.
c.
hierarchic.
d.
integrative.
14. Information technology executive Darryl likes to pore over a lot of information before making a
decision, and he also likes to commit to one course of action. His decision-making style is therefore
characterized as
a.
decisive.
b.
flexible.
c.
hierarchic.
d.
integrative.
15. A major advantage of group decision making is that
a.
it makes efficient use of time.
b.
it results in low risk taking.
c.
members are likely to be committed to a decision.
d.
it eliminates passing the blame onto others.
16. A distinguishing feature of the nominal group technique is that
a.
criticism and discussion are disallowed.
b.
a small group of people is assembled.
c.
alternatives are rated and the best-rated one is chosen.
d.
the group is placed on a tight time limit.
17. The condition of groupthink is likely to occur when group members
a.
strive too hard for consensus.
b.
think of themselves as inferior.
c.
use the step-by-step approach to decision making.
d.
have different perspectives.
18. Creativity can be defined simply as the process of
a.
doing two things at once.
b.
developing novel ideas that can be put into action.
c.
providing feedback.
d.
implementing a plan
19. A key aspect of lateral thinking is that it
a.
focuses on few answers to a problem.
b.
is needed more in manufacturing than in marketing.
c.
decreases the number of wasted alternative solutions.
d.
leads to many different solutions to a problem.
20. The type of motivation necessary for creativity is a
a.
desire to earn large financial bonuses.
b.
passion for the task.
c.
drive to win over others in competition.
d.
state of inner peace and harmony.
21. A research study showed that with respect to work creativity, encouragement from family and friends
a.
had zero impact.
b.
resulted in interference.
c.
made a contribution.
d.
made a contribution providing that the supervisor gave little encouragement.
22. Which one of the following is the most recommended approach for a manager to enhance creativity
within the group?
a.
Staff the group with people of quite similar intellectual backgrounds.
b.
Keep risk taking to a minimum.
c.
Give support in terms of financial rewards and recognition.
d.
Prevent lethargy by making many discouraging comments.
23. The flow experience refers to
a.
the ultimate involvement in work
b.
a condition of heightened focus, productivity, and happiness.
c.
both a & b
d.
a design that allows for the flow of ideas, such as common meeting areas.
24. Managers can establish a creative atmosphere by
a.
allotting time and money carefully.
b.
giving employees the freedom to choose how to accomplish a goal.
c.
giving employees the right type and amount of challenge.
d.
all of the choices
25. Self-help techniques for improving creativity generally aim toward
a.
getting people involved in new hobbies.
b.
encouraging group problem solving.
c.
improving one’s sense of humor.
d.
improving the flexibility of one’s thinking.
TRUE/FALSE
1. You know you have a problem when the conditions that exist with respect to a particular situation are
much different than what you want.
2. A well-planned and highly structured organization reduces the number of nonprogrammed
decisions by formulating policies.
3. Walt Disney naming his cartoon mouse “Mickey” instead of “Mortimer” proved to be a satisficing
decision.
4. A major technique for improving decision making is to dig for alternatives rather than accept the first
possibility that comes to mind.
5. An example of a heuristic would be not to spend more than 30% of your net income on debt other than
a home mortgage.
6. The effective decision maker attempts to minimize hunches and intuition in the process of making a
decision.
7. Perfectionism usually enhances decision making because the decision maker knows exactly what he or
she wants.
8. A problem many pessimistic decision makers face is that they keep searching for good alternative
solutions to problems.
9. Cognitive (or traditional) intelligence carries a profound influence in decision-making effectiveness.
10. The ability to supply managers with high-quality information forms the major justification for
information systems.
11. Visualization to improve decision making under crisis, centers around rehearsing in your mind the
worst possibilities that could occur.
12. According to the decision-making styles of Decision Dynamics, the two dimensions of decision
making are how information is used, and how many options are explored.
13. You use an integrative decision-making style when you explore one option, and use less information.
14. Groupthink takes place where there is so much consensus that members lose their ability to evaluate
their ideas critically.
15. The nominal group technique provides information about how people react to decision alternatives.
16. Creative thinkers generally stick closely to following the rules.
17. Lateral thinking would be required to uncover new markets for the products or services of one’s firm.
18. A generally effective practice for fostering creativity is to punish people for attempting creative
solutions that fail to solve the problem.
19. Many people are poor decision makers because they procrastinate, or delay taking action without a
valid reason.
20. Conflict and tension that put people on edge can also foster creativity.
21. Risk taking does not enhance creativity.
22. The experience if Ideo, the design firm, is that preparing for brainstorming meetings inhibits
spontaneity so much that preparation is not worth the effort.
23. A powerful approach to developing an innovative organization is to systematically
gather ideas from people inside and outside the firm.
24. A well-accepted method of stimulating creativity is to engage in physical exercise.
25. Playing the roles of artist, judge, and lawyer is a method for a team leader to encourage creative
problem solving among team members.
ESSAY
1. When Andrew Schuman bought Hammond’s Candies, he learned than an assembly-line worker had
dreamed up the design of the company’s candy. So Schuman decided to offer a $50
bonus to assembly-line workers who came up with successful ideas to cut manufacturing costs.
1. What does this story illustrate about finding new ideas?
2. How does the candy company encourage creativity?
ANS:
2. Describe the role of intuition in decision making.
3. Describe what actions an organization can take to encourage employees to think more creatively.
4. Describe what you can do in the next several years to increase your creativity.