Management, 13e (Robbins)
Chapter 2 Managers as Decision Makers
1) Abby listened to the weather report this morning before work. As a result, she drove her car
and carried an umbrella instead of riding her motorcycle to work. Whether she realizes it or not,
Abby ________.
A) analyzed criteria
B) implemented a decision
C) assigned weights to criteria
D) evaluated a decision
2) Which of the following statements is true concerning problem identification?
A) Problems are generally obvious.
B) A symptom and a problem are one and the same.
C) Generally, what is a problem for one manager is a problem for all other managers.
D) Effectively identifying problems is not easy.
3) Sales of the high-end units have declined. The owners want Arnold, the CEO, to increase
revenues to previous levels. His first action should be ________.
A) to identify previous sales levels
B) to determine why sales are off
C) to compare costs for three new models under development
D) to immediately begin production on the lowest cost model
4) After identifying a problem, the next step in the decision-making process is ________.
A) identifying decision criteria
B) allocating weights to decision criteria
C) analyzing alternatives
D) developing alternatives
5) Belinda wants to introduce a new model to the product line. Three models are being
developed. Belinda can choose only one. She has decided to focus on target market size,
production costs, and net profits. These are Belinda’s ________.
A) alternatives
B) criterion weights
C) decision criteria
D) problems
6) To determine the ________, a manager must determine what is relevant or important to
resolving a problem.
A) bounded rationality of a decision
B) escalation of commitment
C) cost of implementation
D) decision criteria
7) Amanda, a single parent, is looking for a new job. Considering that she has two school-going
children, she is particularly keen on finding an employer who can provide her with alternative
work arrangements such as flexible work hours and telecommuting. In terms of the decision-
making process, these represent Amanda’s ________.
A) decision criteria
B) problems
C) alternatives
D) heuristics
8) Max is planning to go away to college next year and is currently trying to figure out which
colleges he should apply to. He would like to major in English Literature at an accredited liberal
arts college, but is also looking for a university that offers financial aid. In terms of the decision-
making process, these represent Max’s ________.
A) problems
B) alternatives
C) decision criteria
D) heuristics
9) After identifying the decision criteria that are important or relevant to resolving a problem, the
next step in the decision-making process is ________.
A) allocating weights to the criteria
B) analyzing the alternatives to solving the problem
C) reducing the number of criteria through the process of elimination
D) implementing the alternative
10) Bryan must select a new supplier for lighting fixtures for his company’s mobile homes. He
has decided quality is more important than price but price is more important than lead times.
Bryan will use these priorities to ________.
A) analyze alternatives
B) set his decision criteria
C) allocate weights to the criteria
D) develop alternatives
11) Creativity is most essential in which of the following steps of the decision-making process?
A) analyzing alternatives
B) allocating weights to the decision criteria
C) developing alternatives
D) identifying decision criteria
12) Carla is searching the Internet for sources for an unusual grain used in the production of an
artisan bread. Carla is at the ________ step in the decision making process.
A) identify-the-problem
B) identify-decision-criteria
C) allocate-weights
D) develop-alternatives
13) In the decision-making process, while ________, the decision maker puts the decision into
action by conveying it to those affected by it and getting their commitment to it.
A) selecting an alternative
B) evaluating a decision’s effectiveness
C) implementing an alternative
D) analyzing alternatives
14) Carla has identified several possible sources for an unusual grain for her artisan bread. Now
she is comparing their prices, quality, and delivery times. At what step is she in the decision-
making process?
A) develop alternatives
B) analyze alternatives
C) select an alternative
D) implement the alternative
15) Which of the following is important in effectively implementing the chosen alternative in the
decision-making process?
A) evaluating each alternative by using the established criteria
B) being creative while implementing the alternatives
C) allowing those impacted by the outcome to participate in the process
D) ignoring criticism concerning your chosen alternative
16) The final step in the decision-making process is to ________.
A) determine the criteria for the next decision
B) analyze the process of allocating weights to the decision criteria
C) evaluate the outcome of the decision
D) implement the chosen alternative
17) It is important for Diane to review the results of her decision to increase production of Model
36CKTS because ________.
A) she was unsure of her decision
B) she wants to impress her supervisor
C) results may vary from expectations
D) she doesn’t trust her subordinates to maintain quality at the higher production levels
18) The decision-making process begins by identifying decision criteria.
19) A decision criterion defines what is important or relevant to resolving a problem.
20) In the decision-making process, after allocating weights to the decision criteria, the decision
maker lists viable alternatives that could resolve the problem.
21) Once the alternatives to solving a problem have been identified, the next step in the decision-
making process is selecting one of these alternatives.
22) Implementing an alternative refers to the process of choosing the best alternative.
23) List and discuss the eight steps in the decision-making process.
24) Managers are assumed to use ________ if they make logical and consistent choices to
maximize value.
A) rational decision making
B) intuitive decision making
C) bounded rationality
D) evidence-based management
25) Dylan must choose among four candidates to fill his open accounting clerk position. If
Dylan uses rational decision making, he will ________.
A) disregard the fact the one of the candidates is the owner’s nephew
B) rely on his initial impressions of the candidates to make this decision
C) use his extensive experience and accumulated judgment to make his decision
D) select the candidate who attended the college of his best worker
26) It is assumed that a rational decision maker ________.
A) faces unclear and ambiguous problems
B) is unlimited by his or her ability to process information
C) is unaware of all the possible alternatives and consequences
D) is fully objective and logical
27) Abigail is shopping for a new copier for her company. She has set her price range between
$5,000 and $6,000. The copier must handle a minimum of 10,000 copies per month and have a
useful life expectancy of five years. If Abigail selects the first copier she finds that meets these
criteria, we would say she is ________.
A) using perfect rationality
B) using bounded rationality
C) using intuition
D) satisficing
28) When managers make decisions that are rational but limited by their ability to process the
information, they are following the concept of ________.
A) cognitive decision making
B) bounded rationality
C) escalation of commitment
D) intuitive decision making
29) Evelyn’s Internet search for information about “vendor for machine screws” yielded more
than 100,000 items. Evelyn did not have time or resources to pursue each of these so she limited
her search to only vendors in her state. By doing this, Evelyn used ________.
A) perfect rationality
B) bounded rationality
C) satisficing
D) intuition
30) Managers cannot possibly analyze all information on all alternatives; they tend to ________,
rather than ________.
A) maximize; satisfice
B) neutralize; satisfice
C) satisfice; neutralize
D) satisfice; maximize
31) ________ results in a solution that is considered “good enough.”
A) Escalating
B) Linear thinking
C) Intuition
D) Satisficing
32) Julie is keen on joining Columbia University to pursue a master’s degree in economics.
However, after three months of applying and waiting for an acceptance letter, she finally decides
to attend NYU, which was one of her backup colleges. This is an example of ________.
A) maximizing
B) neutralizing
C) minimizing
D) satisficing
33) Edgar hired a graduate from his alma mater, thinking he would be a successful first line
supervisor. Unfortunately the new hire hasn’t worked out as well as hoped. Edgar decided to
invest time and money in training for the new hire but saw little improvement. Next he assigned
a successful supervisor to mentor the young employee. The problems persisted. Edgar is
displaying ________.
A) bounded rationality
B) irrational behavior
C) poor judgment
D) escalation of commitment
34) Farrell has a knack for selecting candidates who become very successful workers. When
asked how he does it, he answered that he “listened to his gut.” Farrell is really ________.
A) using his intuition
B) using bounded rationality
C) using perfect rationality
D) satisficing
35) Which of the following is an aspect of intuition?
A) experienced-based decisions
B) quality-initiated decisions
C) science-based decisions
D) programmed decisions
36) Intuitive decision making ________.
A) is the systematic use of the best available evidence to improve decision making practice
B) generally results in poor decisions and hence managers should learn to ignore their gut
feelings
C) is the process of making decisions based on experience, feelings, and accumulated judgment
D) complements rational decision making but not bounded rational decision making
37) Gilda has an idea that would streamline operations, reduce costs, and increase profits. Her
idea requires the cooperation of several departments, some of which have demonstrated a
resistance to change. By considering the context in which the changes must happen and the
people in her organization, Gilda is using ________.
A) evidence-based management
B) bounded rationality
C) intuition
D) positive employee relations
38) Farrah has called together her management team to review information about customer
satisfaction gathered by an external research company. Farrah is engaging in ________.
A) perfect rationality
B) bounded rationality
C) evidence-based management
D) relationship management
39) One assumption of rational decision making is that the decision maker is not aware of all
possible alternatives and consequences.
40) According to the concept of bounded rationality, managers make decisions rationally, but are
limited by their ability to process information.
41) The phenomenon of escalation of commitment refers to an increased commitment to a
previous decision despite evidence that it may have been wrong.
42) Intuitive decision making complements rational decision making but not bounded rational
decision making.
43) Briefly, discuss the assumptions of rationality and the validity of those assumptions.
44) What is meant by bounded rationality and satisficing?
45) What is intuitive decision-making? How does intuition affect the process of making a
decision?
46) ________ are straightforward, familiar, and easily defined.
A) Programmed problems
B) Structured problems
C) Non-structured problems
D) Nonprogrammed problems
47) Garrett looked at the list of orders for the coming week and made out the production
schedule. He has done this so many times he could do it in his sleep. This situation represents
________.
A) a structured problem
B) an unstructured problem
C) a linear problem
D) a programmed problem
48) Structured problems align well with which type of decisions?
A) programmed
B) analogous
C) organic
D) nonlinear
49) A(n) ________ decision is a repetitive decision that can be handled by a routine approach.
A) nonprogrammed
B) structured
C) unstructured
D) programmed
50) Harriet’s machine has stopped working again. She consulted the operator’s manual
troubleshooting guide to find a solution. Harriet used ________.
A) a programmed decision
B) a non-programmed decision
C) a structured decision
D) a non-structured decision
51) A procedure ________.
A) is an explicit statement that tells a manager what can or cannot be done
B) is a series of sequential steps a manager uses to respond to a structured problem
C) is used mainly for unstructured, rather than structured, problems
D) is subject to the interpretation of the decision maker
52) One of the workers in Henry’s department submitted his two weeks’ notice so Henry needs to
hire a replacement. The HR department issued a set of instructions Henry must follow to initiate
the search for candidates. In other words, there is a ________ Henry must follow.
A) policy
B) practice
C) procedure
D) program
53) A(n) ________ is an explicit statement that tells a manager what can or cannot be done.
A) agenda
B) objective
C) rule
D) solution
54) “All employees must be at their work stations and ready to work by the time the buzzer
sounds.” This is an example of ________.
A) a policy
B) a procedure
C) a practice
D) a rule
55) A policy ________.
A) typically serves as a guideline for decision making by setting general parameters
B) specifically states what should or should not be done
C) is a series of sequential steps a manager uses to respond to a structured problem
D) is used when dealing with unstructured problems and non-programmed decisions
56) “We expect to maintain the highest standards of quality in our workmanship.” This is an
example of ________.
A) a procedure
B) a rule
C) a policy
D) a practice
57) A(n) ________ typically contains an ambiguous term that leaves interpretation up to the
decision maker.
A) rule
B) procedure
C) edict
D) policy
58) “Smoking and the consumption of alcohol are strictly prohibited inside the work premises.”
This is most likely an example of a(n) ________.
A) rule
B) objective
C) procedure
D) policy