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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 classical decision making model assumes that the decision-maker is rational, and makes the optimal decision each
time.
a.
True
b.
False
11. 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
12. The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.
a.
True
b.
False
13. The administrative model of decision making describes how managers actually make decisions in difficult situations.
a.
True
b.
False
14. 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
15. 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
16. According to the classical model of decision making, managers’ searches for alternatives are limited because of
human, information, and resource constraints.
a.
True
b.
False
17. According to the administrative model of decision making, managers' searches for alternatives are limited because of
human, information, and resource constraints.
a.
True
b.
False
18. 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
19. Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought.
a.
True
b.
False
20. According to both research and managerial experience, intuitive decisions are best and always work out.
a.
True
b.
False
21. The process of forming alliances among managers is called coalition building.
a.
True
b.
False
22. 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
23. Good intuitive decision making is based on an ability to recognize patterns at lightning speed.
a.
True
b.
False
24. 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
25. Managers confront a decision requirement in the form of either a problem or an opportunity.
a.
True
b.
False
26. Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood
require only one step.
a.
True
b.
False
27. Step one in the managerial decision-making process is recognition of decision requirement.
a.
True
b.
False
28. 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
29. 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
30. 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
31. Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.
a.
True
b.
False
32. 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
33. Feedback is the part of monitoring that assesses whether a new decision needs to made.
a.
True
b.
False
34. People who prefer simple, clear-cut solutions to problems use the directive style.
a.
True
b.
False
35. Managers with an analytical decision style like to consider complex solutions based on as much data as they can
gather.
a.
True
b.
False
36. 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
37. Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style.
a.
True
b.
False
38. The most effective managers are consistent in using their own decision style rather than shifting among styles.
a.
True
b.
False
39. 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
40. Justifying past decisions is a common bias of managers.
a.
True
b.
False
41. Managers will frequently look for new information that contradicts thier instincts or original point of view..
a.
True
b.
False
42. Most people underestimate their ability to predict uncertain outcomes.
a.
True
b.
False
43. Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision
making.
a.
True
b.
False
44. Brainwriting refers to the tendency of people in groups to suppress contrary opinions.
a.
True
b.
False
45. Groupthink refers to the tendency of people in groups to suppress contrary opinions.
a.
True
b.
False
46. 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
47. Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view.
a.
True
b.
False
48. Managers are often referred to as:
a.
decision makers.
b.
peace makers.
c.
conflict creators.
d.
an unnecessary layer of employees.
e.
profit suppressor.
49. _____ 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
50. Which of the following is a choice made from available alternatives?
a.
Decision
b.
Plan
c.
Goal
d.
Tactic
e.
Strategy
51. 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
52. _____ refers to the process of identifying problems and then resolving them.
a.
Organizing
b.
Controlling
c.
Decision-making
d.
Planning
e.
Leading
53. _____ decisions are associated with decision rules.
a.
Nonprogrammed
b.
Unique
c.
Programmed
d.
Ill-structured
e.
Novel
54. Programmed decisions are made in response to _____ organizational problems.
a.
unusual
b.
recurring
c.
significant
d.
minor
e.
unique
55. 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.
56. 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.
57. 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.
58. Nonprogrammed decisions are made in response to situations that are:
a.
unique.
b.
unstructured.
c.
important to the organization.
d.
all of these
e.
unique and important to the organization.
59. 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.
60. Good examples of _____ decisions are strategic decisions.
a.
nonprogrammed
b.
programmed
c.
insignificant
d.
recurring
e.
structured
61. When a small community hospital decides to add a radiation therapy unit, it is considered a:
a.
programmed decision.
b.
structured decision.
c.
nonprogrammed decision.
d.
poor management decision.
e.
certainty decision.
62. Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a:
a.
programmed decision.
b.
nonprogrammed decision.
c.
decision rule.
d.
structured decision.
e.
bad community decision.
63. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that he will be
visiting to drop off packages. This can best be described as what kind of decision?
a.
Programmed
b.
Nonprogrammed
c.
Wicked
d.
Administrative
e.
Intuitive
64. Associated with the condition of _____ is the lowest possibility of failure.
a.
ambiguity
b.
uncertainty
c.
certainty
d.
risk
e.
all of these
65. Which of the following means that all the information the decision-maker needs is fully available?
a.
Certainty
b.
Risk
c.
Uncertainty
d.
Ambiguity
e.
None of these
