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Chapter 03 Managerial Decision Making Answer Key
True / False Questions
1.
Important, difficult decisions tend to be nonprogrammed, and they demand creative
approaches.
2.
The manager of a burger restaurant faces conflict when she must decide whether to cut
hours for all employees or layoff two employees.
3.
Contingency plans should be developed only after a decision has been made and
implemented.
4.
Following all six stages of the decision-making process guarantees successful decisions.
5.
When Luke words his suggestions as positively as possible, his managers are more likely
to be interested in them because of the bias known as the framing effect.
6.
The most constructive type of conflict is affective conflict.
7.
The most fundamental unit of value in the creativity revolution is ideas.
8.
Complimenting one another and telling stories are examples of behaviors that can make
brainstorming less effective.
9.
The confrontational model of decision making arises when people disagree on goals or
compete with one another for resources.
10.
All companies should have a crisis management plan.
Multiple Choice Questions
11.
What is the usual state of affairs in managerial decision making?
12.
Fergie is the owner of a health food shop and must decide on next week's work schedule
for his employees. This is an example of a
13.
If a manager faces a programmed decision, that means
14.
Risk exists when the probability of an action being successful is less than _____ percent
and losses may be higher than gains.
15.
When a manager must consider opposing pressures from different sources, the manager
faces _____.
16.
Angus has been going through a decision-making process. He diagnosed a problem with
the shipping service his company used, identified alternative shipping services, evaluated
those companies, made a choice, and implemented it. Which of the following statements
is an accurate description of Angus's decision-making process?
17.
Leila has identified a problem that consists of a gap between what her company is doing
now and what it can do to create a more profitable future. The "problem" that Leila has
identified is also a(n)
18.
Eliana, the manager of a retail store, needs a fast solution when an employee asked for a
day off during the busiest shopping week of the year. A _____ solution will be most helpful
to Eliana in this situation.
19.
When choosing a phone plan, Max decides on the first option that meets the company's
requirements rather than investigating all available options. This is an example of _____.
20.
In the decision-making process, _____ means achieving the best possible balance among
several goals.
21.
When decision makers carefully and conscientiously execute all six stages of decision
making, the decision makers are said to have exercised ______.
22.
Which of the following is a psychological bias that can act as a barrier to good decision
making?
23.
David is a small business owner who thinks it is more important to spend money on
marketing his current product line than to invest in research to develop new products.
Which psychological bias is David displaying?
24.
The belief that one can influence events even when one has no power over what will
happen is known as _____.
25.
Which of the following statements about group decision making is true?
26.
Which of the following is a disadvantage of group decision making?
27.
In goal displacement, a decision-making group
28.
The three requirements for effective group decision making are an appropriate leadership
style, the constructive use of disagreement and conflict, and the enhancement of _____.
29.
_____ conflict is differences in perspectives or judgments about issues.
30.
Which of the following statements about brainstorming is true?
31.
According to Simon's bounded rationality, which of the following factors prevents decision
makers from being truly rational?
32.
Qing's employees have requested that he switch the office to flextime so that they can
better manage their childcare and commuting schedules. Qing is reluctant to make a
drastic change all at once, so he agrees to experiment with staggering the starting and
ending times of the workday over a 90-minute period for three months. If, at the end of
that time, productivity does not decline, he will consider implementing a more extreme
version of flextime. What model of decision-making is Qing using?
33.
The _____ model of decision making occurs when people aren't sure of their goals, or
disagree about the goals, and likewise are unsure of or in disagreement about what to do.
34.
During a crisis that involved a toxic spill, the executives of ABC Industrial were
straightforward in sharing the bad news with the public and providing daily updates on the
containment and cleanup process. What is the likely long-lasting effect of this
communication strategy?
