Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 18
Level: Easy
Learning Objective 2: Identify five steps in the decision-making process.
Section Reference: Ethical reasoning is important at all steps in decision making.
AACSB: Analytic
43. The generation of a novel idea or approach that solves a problem or identifies an opportunity
is called:
a) problem solving.
b) representative thinking.
c) creativity.
d) availability heuristic.
44. According to the three-component model, which of the following is NOT a driver of
personal creativity?
a) Task expertise
b) Task motivation
c) Subjective experience
d) Creativity skills
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 20
Ans: c
Bloom’s: Knowledge
Level: Easy
Learning Objective 3: Understand current issues in managerial decision making.
Section Reference: Judgmental heuristics and other biases and traps may cause decision-making
errors.
AACSB: Analytic
48. Solving a problem based on one’s perception of the situation, positive or negative, leads to
a(n) __________.
a) confirmation error
b) programmed decision
c) framing error
d) escalating commitment
49. Cristina insists on continuing on a course of action even though it is not working. Which of
the following decision-making traps does this scenario illustrate?
a) Escalating commitment
b) Framing error
c) Anchoring heuristic
d) Availability heuristic
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 21
50. Mark attends only to information that confirms a decision already made. Which of the
following decision-making traps does this scenario illustrate?
a) Escalating commitment
b) Framing error
c) Anchoring heuristic
d) Confirmation error
True/False
51. Managers who are problem solvers will make decisions and try to solve problems when
required.
52. When an individual moves higher in management ranks, the level of certainty in a problem
environment tends to increase.
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 22
Ans: False
Bloom’s: Comprehension
Level: Easy
Learning Objective 1: Recognize how managers use information to solve problems.
Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.
AACSB: Analytic
53. Sensation feelers prefer broad global issues. They are insightful and tend to avoid details and
are comfortable with intangibles.
54. The problem with the classical decision model is that it does not take into account the
cognitive limitations that managers, as humans, have.
55. During the decision-making process, extensive information should be gathered to identify
alternative courses of action as well as their anticipated consequences.
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 23
56. The evaluation of a decision should not only consider whether the results were gained, but
should also determine whether any undesirable side effects occurred.
57. Managers turn to heuristics to make decisions with limited information, time, and energy.
58. A common management problem when implementing decisions is escalating commitment.
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 26
66. If you are seeking the best possible solution to a problem, you are seeking to __________
your decision.
67. When decision makers are armed with only partial information about the available action
alternatives and their consequences, they are more likely to make __________ decisions.
68. The __________ decision model accepts the presence of cognitive limitations and recognizes
risk and uncertainty in most decision environments.
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 27
69. __________ occurs when extraordinary things are done by exceptional people.
70. __________ occurs when average people come up with unique ways to deal with daily
events and situations.
71. The __________ heuristic uses readily available information to assess a current situation.
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Essay
75. Explain the advantages and disadvantages of group decision making.
76. Describe the different types of managers on the basis of their approach toward performance
threats and opportunities.
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 30
77. Describe the different types of managers based on their cognitive styles.
78. What makes decision making so challenging in the real world of management?
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 31
79. Briefly state the five steps in the decision-making process.
80. Define the two types of decision models and relate them to the decision making
environments of certainty, risk, and uncertainty as well as to the two types of decisions.
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 32
81. List and define the three decision making environments and their relationship to programmed
and nonprogrammed decisions.
82. Why do people escalate commitment to failing actions?
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 33