272
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66. Bobby, a product manager, wants to increase the market share of his product. He is unsure about how to go about it,
not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market
share. Bobby is operating under a condition of _____.
a.
risk
b.
ambiguity
c.
certainty
d.
uncertainty
e.
brainstorming
273
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A
67. Under conditions of _____, statistical analyses are useful.
a.
certainty
b.
ambiguity
c.
risk
d.
uncertainty
e.
conflict
c
273
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68. Which of the following 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.
Certainty
b.
Risk
c.
Uncertainty
d.
Ambiguity
e.
Brainstorming
273
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69. _____ means that managers know which goals they wish to achieve, but information about alternatives and future
events is incomplete.
a.
Certainty
b.
Risk
c.
Uncertainty
d.
Ambiguity
e.
Advocacy
c
273
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70. When managers know which goals they wish to achieve, but information about alternatives and future events is
incomplete, the condition of _____ exists.
a.
b.
c.
d.
e.
273
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71. Which of the following has the highest possibility of failure?
a.
The condition of certainty
b.
The condition of ambiguity
c.
The condition of uncertainty
d.
The condition of risk
e.
All of these
273
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
72. The four positions on the possibility of failure scale include certainty, risk, ambiguity, and _____.
a.
uncertainty
b.
conflict
c.
necessity
d.
indecision
e.
possibility
a
273
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United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
73. _____ is by far the most difficult situation for a decision-maker.
a.
Certainty
b.
Risk
c.
Uncertainty
d.
Ambiguity
e.
Brainstorming
274
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
74. Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are
difficult to define, and information about outcomes is unavailable?
a.
Certainty
b.
Risk
c.
Uncertainty
d.
Ambiguity
e.
Brainstorming
274
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
75. The condition under which ambiguity occurs is when:
a.
alternatives are difficult to define.
b.
objectives are well defined.
c.
information about outcomes is readily available.
d.
all the alternatives are known.
e.
decisions are already made.
a
274
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
76. _____ decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances,
fuzzy information, and unclear links among decision elements.
a.
Nonprogrammed
b.
Programmed
c.
Wicked
d.
Conventional
e.
Irrational
274
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
77. During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions
in a highly ambiguous environment. The decision to buyout failed banks could best be described as what type of decision?
a.
Bounded
b.
Programmed
c.
Conventional
d.
Wicked decision problem
e.
Irrational decision
274
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United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
78. The classical model of decision making is based on _____ assumptions.
a.
philosophical
b.
irrational
c.
economic
d.
uncertainty
e.
technological
c
276
MGMT.DAFT.12.09-03 – 09–03
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
79. Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization’s best economic
interests. Her decisions should be based on which of the following models?
a.
The administrative model of decision making
b.
The garbage can model of decision making
c.
The scientific management model of decision making
d.
The classical model of decision making
e.
The humanistic model of decision making
277
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United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
80. Which of these assumptions are included in the classical model of decision making?
a.
Problems are unstructured and ill defined.
b.
The decision-maker strives for conditions of certainty.
c.
Criteria for evaluating alternatives are unknown.
d.
The decision-maker selects the alternatives that will minimize the economic return to the organization.
e.
The situation is always uncertain.
277
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
81. Which approach defines how a decision-maker should make decisions?
a.
Normative
b.
Scientific
c.
Descriptive
d.
Reflective
e.
Humanistic
a
277
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
82. _____ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching
an ideal outcome for the organization.
a.
Administrative
b.
Descriptive
c.
Normative
d.
Bounded rationality
e.
None of these
c
277
MGMT.DAFT.12.09-03 – 09–03
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
83. All of the following are characteristics of the classical decision making model except:
a.
clear-cut problems and goals.
b.
conditions of certainty.
c.
rational choice by individual for maximizing outcomes.
d.
limited information about alternatives and their outcomes.
e.
all of these are characteristics of classical decision making model.
277
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
84. The _____ model of decision making is most valuable when applied to _____.
a.
administrative; programmed decisions
b.
classical; nonprogrammed decisions
c.
classical; programmed decisions
d.
classical; ambiguous decisions
e.
administrative; structured decisions
c
277
MGMT.DAFT.12.09-03 – 09–03
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
85. _____ approach describes how managers actually make decisions, where as _____ approach defines how a decision-
maker should make decisions.
a.
Normative; descriptive
b.
Normative; classical
c.
Descriptive; normative
d.
Descriptive; administrative
e.
Normative; administrative
277
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
86. Which model of decision making is associated with satisficing, bounded rationality, and uncertainty?
a.
Classical
b.
Administrative
c.
Quantitative
d.
Rational
e.
Political
277
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
87. The growth of quantitative decision techniques that use computers has expanded the use of which decision-making
approach?
a.
Administrative
b.
Classical
c.
Intuitive
d.
Political
e.
Bureaucratic
MGMT.DAFT.12.09-03 – 09–03
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
88. The _____ model of decision making describes how managers actually makes decisions in situations characterized by
nonprogrammed decisions, uncertainty, and ambiguity.
a.
normative
b.
classical
c.
administrative
d.
scientific management
e.
objective
c
277
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
89. The concept that people have the time and cognitive ability to process only a limited amount of information on which
to base decisions is known as:
a.
satisficing.
b.
bounded rationality.
c.
classical model of decision making.
d.
normative approach.
e.
scientific approach.
277-278
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
90. Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time
to identify and/or process all the information she needs to make decisions. Melissa’s situation is most consistent with
which of the following concepts?
a.
Bounded rationality
b.
The classical model of decision making
c.
Satisficing
d.
Brainstorming
e.
Scientific management
a
277-278
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
91. The essence of _____ is to choose the first solution available.
a.
bounded rationality
b.
creativity
c.
decision maximization
d.
satisficing
e.
the classical model of decision making
278
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
92. Rodney doesn’t always realize that within his role as an air traffic controller, he must continuously perceive and
process information based on knowledge and experience that he is not consciously aware of. This describes what type of
decision-making?
a.
Administrative
b.
Right-brained
c.
Satisficing
d.
Rational
e.
Intuitive
e
278
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
93. Intuition is based on _____, but lacking in _____.
a.
conscious thought; practicality
b.
experience; applicability
c.
a solid analysis; applicability
d.
experience; conscious thought
e.
thought-process; guts
278
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
94. Most managers settle for a _____ rather than a _____ solution.
a.
minimizing; maximizing
b.
satisficing; maximizing
c.
top-level; bottomline
d.
maximizing; satisficing
e.
challenging; simple
278
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
95. All of the following are characteristics of the administrative decision making model except:
a.
vague problem and goals.
b.
conditions of certainty.
c.
limited information about alternatives and their outcomes.
d.
satisfying choice.
e.
all of these are characteristics of administrative decision making model.
278
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United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
96. Which of the following is the process of forming alliances among managers during the decision making process?
a.
Networking
b.
Socializing
c.
Coalition building
d.
Satisficing
e.
Passing the buck
c
279
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
97. The _____ model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain,
information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take.
a.
classical
b.
functional
c.
bureaucratic
d.
political
e.
administrative
279
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
98. The _____ model closely resembles the real environment in which most managers and decision-makers operate.
a.
normative
b.
administrative
c.
descriptive
d.
classical
e.
political
e
280
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
99. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at Jefferson are
complex and involve many people, with a significant amount of disagreement and conflict. Which decision-making model
fits best for this organization?
a.
Political
b.
Functional
c.
Classical
d.
Administrative
e.
Bureaucratic
a
280
MGMT.DAFT.12.09-05 – 09–05
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
100. All of these are basic assumptions of the political model except:
a.
organizations are made up of groups with diverse interests, goals, and values.
b.
information is clear and complete.
c.
managers do not have the time, resources, or mental capacity to identify all dimensions of the problem.
d.
managers engage in the push and pull of debate to decide goals and discuss alternatives.
e.
all of these are basic assumptions of the political model.
280
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
101. Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in
drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the
managerial decision making process?
a.
Diagnosis and analysis of causes
b.
Development of alternatives
c.
Recognition of decision requirement
d.
Evaluation and feedback
e.
Selection of desired alternatives
c
281
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
102. A(n) _____ occurs when the organizational accomplishment is less than established goals.
a.
strength
b.
threat
c.
diagnosis
d.
opportunity
e.
problem
e
281
MGMT.DAFT.12.09-04 – 09–04
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
103. _____ is the step in the decision-making process in which managers analyze underlying causal factors associated
with the decision situation.
a.
Analysis
b.
Diagnosis
c.
Recognition
d.
Judgment
e.
Identification
282
MGMT.DAFT.12.09-05 – 09–05
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
104. Which of the following is the first step in the managerial decision making process?
a.
Evaluation and feedback
b.
Development of alternatives
c.
Recognition of decision requirement
d.
Diagnosis and analysis of causes
e.
Selection of desired alternatives
282
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
105. _____ is the last step in the decision making process.
a.
Evaluation and feedback
b.
Development of alternatives
c.
Implementation of chosen alternative
d.
Selection of desired requirement
e.
Recognition of decision requirement
282
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
106. The recognition of the decision requirement step in the managerial decision making process requires managers to:
a.
develop alternative solutions.
b.
integrate information in novel ways.
c.
use the classical model of decision making.
d.
focus on generating ideas.
e.
select undesirable alternatives.
282
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
107. “When did it occur” and “how did it occur” are questions associated with which step of the decision making process?
a.
Diagnosis and analysis of causes
b.
Recognition of decision requirement
c.
Development of alternatives
d.
Selection of desired alternative
e.
None of these
283
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
108. When managers ask questions such as “What is the state of disequilibrium affecting us?”, they are in which stage of
the managerial decision-making process?
a.
Selection of a desired alternative
b.
Development of alternatives
c.
Diagnosis and analysis of causes
d.
Recognition of decision requirement
e.
Evaluation and feedback
283
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
109. When quality control measures at the local tire plant were found to be inadequate, managers were asking themselves,
“How did this occur?” and “What is the result?” The company is in which stage of the managerial decision-making
process?
a.
Selection of a desired alternative
b.
Development of alternatives
c.
Diagnosis and analysis of causes
d.
Recognition of decision requirement
e.
Evaluation and feedback
283
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
110. The decision-maker must _____ once the problem has been recognized and analyzed.
a.
evaluate and provide feedback
b.
choose among alternatives
c.
generate alternatives
d.
prioritize the alternatives
e.
reanalyze the problem
283
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
111. For a programmed decision:
a.
alternatives are usually difficult to identify.
b.
alternatives are usually easy to identify.
c.
there are usually few alternatives.
d.
there are usually few alternatives and they are difficult to identify.
e.
there are no alternatives.
283
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
112. Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in an environment of high uncertainty.
As a result, Ryan will:
a.
most likely be making programmed decisions.
b.
probably have an easy time generating alternatives.
c.
probably have a difficult time generating alternatives.
d.
most likely rely on the classical model of decision making.
e.
wait until environment becomes certain.
283
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
113. Once the desired alternative is developed, it should be _____.
a.
analyzed
b.
evaluated
c.
selected
d.
recognized
e.
identified
c
283
MGMT.DAFT.12.09-05 – 09–05
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
114. Which of the following refers to the willingness to undertake risk with the opportunity to increase one’s return?
a.
Tunnel vision
b.
Risk propensity
c.
Risk averse
d.
Thrill seeking
e.
Ineffective investment philosophy
284
MGMT.DAFT.12.09-05 – 09–05
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
115. The _____ step in the decision making process involves using managerial, administrative, and persuasive abilities to
translate the chosen alternative into action.
a.
recognition
b.
analysis
c.
evaluation
d.
implementation
e.
feedback
284
MGMT.DAFT.12.09-05 – 09–05
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
116. Feedback is important because:
a.
decision making is a continuous process.
b.
it provides decision-makers with new information.
c.
it helps determine if a new decision needs to be made.
d.
it provides decision-makers with new information and it helps determine if a new decision needs to be made.
e.
all of these.
e
285
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
117. Genna is collecting data on how well the organization has done since their new strategy was implemented. She is in
what stage of the managerial decision making process?
a.
The generation of alternatives
b.
Implementation of the chosen alternative
c.
Evaluation and feedback
d.
Recognition of the decision requirement
e.
Selection of desired alternative
c
285
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
A
118. Which style is used by people who prefer simple, clear-cut solutions to problems?
a.
Behavioral
b.
Conceptual
c.
Directive
d.
Analytical
e.
Classical
c
286
MGMT.DAFT.12.09-06 – 09–06
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
119. Personal _____ style refers to differences among people with respect to how they perceives problems and make
decisions.
a.
risk taking
b.
behavior
c.
decision
d.
strategic
e.
analysis
c
286
MGMT.DAFT.12.09-06 – 09–06
United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
120. Research has identified four major decision styles. These include all of the following except _____.
a.
behavioral
b.
conceptual
c.
analytical
d.
authoritative
e.
directive
286
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United States – BUSPROG: Analytic
United States – LA – DISC: Individual Dynamics
Bloom’s: Knowledge
121. Managers are considered to have a(n) _____ style when they prefer to consider complex solutions based on as much
data as they can gather.