81) A process of making decisions by constructing simplified models that extract the essential
features from problems without capturing all their complexity is known as ________.
A) optimal decision making
B) intuitive decision making
C) bounded rationality
D) active selection
E) incremental decision making
82) ________ bias refers to the tendency for people to base their judgments on information that
is easily accessible.
A) Anchoring
B) Availability
C) Overconfidence
D) Confirmation
E) Hindsight
83) Which of the following types of biases is most likely to play a significant role during a
negotiation?
A) impact bias
B) normalcy bias
C) distinction bias
D) anchoring bias
E) status quo bias
84) ________ is an unconscious process created from distilled experience.
A) Process consultation
B) Action research
C) Intuitive decision making
D) Active selection
E) Emotional intelligence
85) Which of the following is true about intuitive decision making?
A) It is a slow process of decision making.
B) It is devoid of emotions.
C) It is the most rational way of making a decision.
D) It occurs within conscious thought.
E) It involves making decisions based on distilled experience.
86) Phyllis Stintson needs to decide whether to start a campaign against deforestation in
Indonesia. Though her research team has provided substantial information on the high feasibility
of the project, Stintson does not go ahead with the project. If Stintson made her decision by
drawing unconscious references from several different experiences in the past, her decision is
most likely influenced by which of the following?
A) optimization
B) intuition
C) fundamental attribution error
D) framing effect
E) anchoring bias
87) Jeanne Edwards works as a campaign manager at Rainforest Alliance Trust, a forest
protection organization in Indonesia. She is currently working on the Palm Oil Campaign, which
aims to establish stringent laws against companies which aggravate deforestation by extracting
palm oil for commercial use. Her role is to establish allies with other forest protection
organizations and companies which use eco-friendly products that set good examples for other
companies to follow. Jeanne allied with Griffin and Powell, a large multinational company,
which, unknown to Jeanne, also has strong ties with local logging groups in Jakarta. Which of
the following, if true, would strengthen the argument that Jeanne had an availability bias while
establishing an ally with the company?
A) Griffin and Powell ensures that all their CSR initiatives on forests are regularly and
substantially publicized.
B) Jeanne has adequate experience in leading such campaigns.
C) Jeanne is well acquainted with various research techniques.
D) Jeanne has access to environmental records maintained by the Information Ministry.
E) Rainforest Alliance Trust has strong networks with local environmental research
organizations.
88) Johanna Murray, a climate campaigner at The National Footprint Foundation, is known in
her organization to be a campaigner of caliber and high performance. She has strong networks
with the Ministry of Environment and allies with several environmental organizations in the
country. Over the years, she has gained substantial knowledge on the issue of climate change.
However, recently when she prepared a consolidated report on a conference she attended on
climate change, it reflected major loopholes and limited information from the conference. Which
of the following, if true, substantiates that Johanna had anchoring bias?
A) Johanna was moved by the arguments put forth by the first speaker.
B) Johanna participated actively in the interactive session conducted at the end.
C) The speakers at the conference consisted of renowned environmental scientists and activists.
D) Johanna has attended several conferences where the panel consisted of eminent scientists.
E) Johanna was shocked by the startling facts shown during the concluding session.
89) A person’s tendency to believe he or she can predict the outcome of random events is known
as the self-serving bias.
90) Escalation of commitment refers to staying with a decision even when there is clear evidence
it’s wrong.
91) The rational decision-making model takes into consideration the fact that all information
pertaining to a problem might not be available to the decision maker.
92) What is bounded rationality? How is it related to decision making?
93) What is anchoring bias?
94) Describe confirmation bias.
95) What is escalation of commitment? Explain.
96) Explain hindsight bias.
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97) What is intuitive decision making? Explain.
98) The tendency to seek out information that reaffirms past choices and to discount information
that contradicts past judgments is known as ________ bias.
A) distinction
B) omission
C) impact
D) confirmation
E) anchoring
99) ________ bias is a tendency to fixate on initial information and fail to adequately adjust for
subsequent information.
A) Hindsight
B) Overconfidence
C) Anchoring
D) Availability
E) Self-serving
100) An organization’s reward system influences decision makers by suggesting which choices
have better personal payoffs.
101) Women are more likely than men to overanalyze problems before making a decision and to
rehash a decision once made.
102) Men make better decisions than women.
103) An individual’s cultural background can influence the selection of problems, the depth of
analysis, the importance placed on logic and rationality, and whether organizational decisions
should be made autocratically by an individual manner or collectively in groups.
104) Explain the effect of gender on decision making.
105) According to the concept of ________, decisions are made solely on the basis of their
outcomes, ideally to provide the greatest good for the greatest number.
A) utilitarianism
B) selective perception
C) self-fulfilling prophecy
D) halo effect
E) contrast effect
106) An area of study that analyzes how people behave when confronted with ethical dilemmas
is ________.
A) the halo effect
B) behavioral ethics
C) hindsight bias
D) positivity offset
E) selective perception
107) Individuals who report unethical practices by their employer to outsiders are known as
________.
A) change agents
B) boundary spanners
C) early adopters
D) whistle-blowers
E) free riders
108) A focus on utilitarianism creates an environment that hinders productivity and efficiency.
109) Explain how stereotyping can cause problems for some managers when making ethical
decisions. Provide an example.
110) What are the three ethical decision criteria? Explain.
111) Which of the following is a component of the three-component model of creativity?
A) expertise
B) logical thinking skills
C) extrinsic task motivation
D) intuition
E) analytical skills
112) Describe and explain the causes of creative behavior.
113) Explain the three components of creativity. Name two biases and give examples of how
they would affect creativity.