47. According to the administrative model, decision makers:
a.
use incomplete and imperfect information.
b.
are never constrained by bounded rationality.
c.
tend to avoid satisficing when making decisions.
d.
are not limited by their values and unconscious reflexes while making decisions.
e.
always act in the best interests of their organizations.
a
Easy
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Digital Story: Engage
48. _____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and
habits.
a.
Satisficing
b.
Escalation of commitment
c.
Risk propensity
d.
Groupthink
e.
Bounded rationality
e
and unconscious reflexes, skills, and habits.
Easy
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Knowledge
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Engage
49. Bounded rationality is assumed in the _____ model of decision making.
a.
administrative
b.
rational
c.
classical
d.
groupthink
e.
irrational
a
Easy
p. 111
50. Which of the following statements is true about the administrative model of decision making?
a.
It suggests that political forces do not exist in business scenarios.
b.
It suggests that managers may not always make decisions that best serve the interests of their organizations.
c.
It suggests that managers use a blend of subjective knowledge and analysis to choose the best alternative.
d.
It suggests that decisions should only be made individually and not in groups.
e.
It suggests that decisions made by groups are better than decisions made by individuals.
Moderate
p. 112
51. For his work in developing the administrative model to describe how managers make decisions in the real world,
Herbert Simon won the Nobel Prize in _____.
a.
Medicine
b.
Economics
c.
Peace
d.
Psychology
e.
Management
52. _____ is the tendency to search for alternatives only until one is found that meets some minimum standard of
sufficiency.
a.
Satisficing
b.
Groupthink
c.
Optimization
d.
Bounded rationality
e.
Escalation of commitment
a
Easy
p. 112
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Engage
53. Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the
software that is required for her business. She does this because all her family members have used computers of the same
brand all their lives. This is an example of how decision makers are constrained by _____.
a.
political forces
b.
bounded rationality
c.
Lucy’s high risk propensity
d.
logic
e.
organizational strategies
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Engage
54. Tim is the production manager at a steel factory. One of the steel processing machines in the factory has broken down
and has to be replaced. Tim decides to buy a new machine from a company that he has read reviews of in industry
magazines, even though there are other companies offering a discount on machines with better functionality. This is an
example of how managers are constrained by _____.
a.
bounded rationality
b.
escalation of commitment
c.
risk propensity
d.
groupthink
e.
political forces
a
Challenging
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
55. Mike is in a hurry to appoint a personal assistant to help him with scheduling his meetings with clients. He posts an
advertisement on a job website, and picks the first person who sends in her resume for the job. He only checks for the
candidate’s qualification and does not consider her work experience. This is an example of _____.
a.
rational decision making
b.
classical decision making
c.
satisficing
d.
evidence-based management
e.
optimizing
c
Challenging
p. 112
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
Challenging
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Reflective Thinking
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Perform
56. Keisha is the vice president of accounting, and she has to decide which computer software to purchase for her
department. She has looked at all of the possible alternatives and is leaning toward the system with which she is most
familiar. This is an example of _____.
a.
optimizing
b.
bounded rationality
c.
satisficing
d.
synergy
e.
escalation of commitment
Challenging
p. 111
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
57. _____ is one major element of organizational politics that is especially relevant to decision making.
a.
Coalitions
b.
Intuition
c.
Escalation of commitment
d.
Satisficing
e.
Risk propensity
a
Easy
p. 112
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Engage
58. Chelsea has been contemplating buying a red car. When she visits the used cars dealership, she looks at a red Ford
Hatchback and buys it even before checking for its technical specifications. Chelsea’s decision is an example of _____.
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
a.
optimization
b.
escalation of commitment
c.
an evidence-based decision
d.
satisficing
e.
a decision under uncertainty
59. _____ is an innate belief about something without conscious consideration.
a.
Optimization
b.
Intuition
c.
Logic
d.
Ethics
e.
Risk propensity
Intuition is an innate belief about something without conscious consideration.
Easy
p. 113
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Engage
60. A marketing manager decides to launch a new product because it is the first product that came to his mind, even if
there are several better products to be explored. Which of the following is illustrated in the scenario?
a.
Escalation of commitment
b.
Rational decision making
c.
Bounded rationality
d.
Satisficing
e.
Optimization
Challenging
p. 112
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Reflective Thinking
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Perform
61. Eric is a manager who recently introduced a new process for screening potential employees. Eric has noticed that the
new screening process is not very efficient and is not helping recruiters find the best candidates. However, Eric continues
to use the same process because it was so expensive to set up the initial system. Which of the following concepts is
illustrated in the scenario?
a.
Evidence-based decision making
b.
Escalation of commitment
c.
Rational decision making
d.
Optimization
e.
Satisficing
Challenging
p. 113
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
62. Ryan Tools Company just acquired Coney Tools. The purchase came about because the employees in both the
research and development and the production departments at Ryan Tools joined forces to lobby for the purchase of Coney
Tools as opposed to other companies. Both departments wanted Coney Tools because of its state-of-the-art research and
production facilities. This is an example of _____.
a.
satisficing
b.
intuitive decision making
c.
a dissection
d.
escalation of commitment
e.
a coalition
e
groups formed to achieve a common goal.
Challenging
p. 112
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
63. William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions.
However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies
_____.
a.
evidence-based management
b.
rational decision making
c.
escalation of commitment
d.
rationality
e.
satisficing
c
Challenging
p. 113
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
64. _____ is a behavioral process in which a decision maker stays with a decision even when it appears to be wrong.
a.
Bounded optimization
b.
Escalation of commitment
c.
Risk propensity
d.
Strategic maximization
e.
Intuitive rationality
Easy
p. 113
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Challenging
p. 112
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Application
Digital Story: Perform
65. Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using
_____ in decision making.
a.
satisficing
b.
rationality
c.
intuition
d.
optimization
e.
logic
c
Intuition is an innate belief about something without conscious consideration.
Easy
p. 113
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Group Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Comprehension
Digital Story: Connect
66. _____ is the extent to which a decision maker is willing to gamble when making a decision.
a.
Risk propensity
b.
Intuition
c.
Optimization
d.
Satisficing
e.
Bounded rationality
a
Easy
p. 115
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG: Analytic
United States – AK – DISC: Group Dynamics
Behavioral Aspects of Decision Making
Bloom’s: Knowledge
Digital Story: Engage
67. Managers with higher levels of risk propensity are more likely than their conservative counterparts to:
a.
adhere to the rational model and be extremely cautious about their decisions.
b.
avoid mistakes and infrequently make decisions that lead to big losses.
c.
rely heavily on intuition and gamble big investments on their decisions.
d.
reach decisions slowly after a great amount of analysis.
Digital Story: Engage
e.
display no aggression in decision making.
68. A manager who has a high level of risk propensity is likely to:
a.
make decisions quickly.
b.
avoid risks.
c.
spend a lot of time evaluating alternatives.
d.
be wary of making a wrong choice.
e.
rely heavily on mathematical analysis.
p. 115
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Connect
69. The nominal group decision-making technique:
a.
involves maximum interaction among group members.
b.
is used to generate creative and innovative ideas.
c.
is a technique in which members are not brought together in a face-to-face setting.
d.
always results in groupthink.
e.
is a technique in which the manager lacks the authority to reject an alternative.
represent a group in name only, however; they do not talk to one another freely like the
greater losses.
p. 115
MGMT.GRIF.16. 4-3 – LO: 4-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Individual Dynamics
Behavioral Aspects of Decision Making
Digital Story: Connect
70. The Delphi group technique is a group decision-making technique in which:
a.
the members are involved in extensive discussions with each other.
b.
the opinions of group member are combined and averaged.
c.
the daily operational problems of an organization are addressed.
d.
the members are most likely to indulge in groupthink.
e.
the members are most likely to be first-line employees belonging to the same department.
contribute individually. Their opinions are combined and, in effect, averaged.
Easy
p. 116
MGMT.GRIF.16. 4-4 – LO: 4-4
United States – BUSPROG: Analytic
United States – AK – DISC: Group Dynamics
Group and Team Decision Making in Organizations
Bloom’s: Knowledge
Digital Story: Engage
71. One advantage of group decision making is:
a.
groupthink.
b.
saved time.
c.
more acceptance of the final decision.
d.
lowered cost of decision making.
e.
elimination of political forces.
c
One advantage of a group decision is that more acceptance of the final decision is likely.
Easy
p. 117
MGMT.GRIF.16. 4-4 – LO: 4-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Group Dynamics
Easy
p. 117
MGMT.GRIF.16. 4-4 – LO: 4-4
United States – AK – DISC: Group Dynamics
Group and Team Decision Making in Organizations
Digital Story: Engage
72. A disadvantage of using interacting groups to make decisions is that:
a.
it fosters political forces.
b.
it discourages creativity.
c.
it generates very few alternatives.
d.
it involves more costs than all other group decision techniques.
e.
it does not foster understanding between members.
A major disadvantage of interacting groups is that political processes can play too big a role.
p. 116
MGMT.GRIF.16. 4-4 – LO: 4-4
United States – BUSPROG: Analytic
United States – AK – DISC: Group Dynamics
Group and Team Decision Making in Organizations
Bloom’s: Comprehension
Digital Story: Connect
73. Which of the following is true of interacting groups?
a.
They are the least common decision-making groups.
b.
They effectively eliminate the possibility of groupthink.
c.
They can be regular work teams.
d.
They provide little scope for new ideas.
e.
They do not involve political forces.
p. 116
MGMT.GRIF.16. 4-4 – LO: 4-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Group Dynamics
Group and Team Decision Making in Organizations
Digital Story: Connect
74. A(n) _____ is a form of group decision making in which a group arrives at a consensus of expert opinion.
a.
interacting group
b.
Delphi group
Group and Team Decision Making in Organizations
Digital Story: Engage