54. Miller Brewing Co. says it will resume direct attacks on Bud Light in an effort to keep Miller Lite’s
momentum going. Miller executives said the company had been “out–executed” in discounting activity
by both A-B and Molson Coors during the Memorial Day holiday. In response, Miller said it would
“adjust relative pricing gaps where competitor discounts have impacted its sales.” Miller has also
announced that new television commercials will resume direct comparisons with Bud Light, following
a spate of recent Miller Lite ads that did not knock the competition. Changes in its pricing and in its
advertising reflect changes in _____ plans.
a.
contingency
b.
strategic
c.
operational
d.
visionary
e.
tactical
55. __________ plans are plans that specify how a company will use resources, budgets, and people to
accomplish specific goals within its mission.
a.
Strategic
b.
Tactical
c.
Operational
d.
Single-use
e.
Dialectical
56. Who is responsible for the creation of tactical plans?
a.
team leaders
b.
lower-level managers
c.
middle managers
d.
top managers
e.
staff advisers
57. Management by objectives (MBO) is a management technique often used to develop and carry out:
a.
single-use plans
b.
standing plans
c.
operational plans
d.
tactical plans
e.
hierarchical plans
58. Which of the following is NOT a step in the management by objectives (MBO) process?
a.
discuss possible goals
b.
collectively select goals that are challenging
c.
jointly develop operational plans
d.
meet regularly to review progress toward goal accomplishment
e.
participate in the selection of goals that are consistent with the company’s overall goals
59. Mayor Michael R. Bloomberg announced a comprehensive plan to improve New York City’s
telecommunications infrastructure. One _____ plan was to dedicate a portion of federal funds for
rebuilding lower Manhattan, strengthen downtown Manhattan’s fiber-optic infrastructure, and develop
a wireless network to provide back-up capabilities.
a.
contingency
b.
strategic
c.
operational
d.
visionary
e.
tactical
60. According to the text, which of the following is a disadvantage associated with management by
objectives (MBO) programs?
a.
excessive paperwork
b.
conflict between manager and employees over nature and types of goals
c.
a managerial reluctance to provide feedback to employees
d.
difficulty in evaluating qualitative goals
e.
all of these
61. When done correctly, management by objectives (MBO) is an extremely effective method for:
a.
brainstorming
b.
developing policies and procedures
c.
broadening the span of transformation
d.
problem framing
e.
tactical planning
62. Who is primarily responsible for developing operational plans?
a.
lower-level managers
b.
middle managers
c.
top managers
d.
staff advisers
e.
all of these
63. In 2004, the U.S. Secretary of Health and Human Services introduced a National Diabetes Plan to
address this growing public health problem. As part of this plan, diabetes advocates were invited to
attend three “town hall meetings” held in Cincinnati, Little Rock, and Seattle. _____ were used to
make these meetings a success.
a.
Special-use plans
b.
Tactical plans
c.
Operational plans
d.
Strategic plans
e.
Mission statements
64. The U.S. Secretary of Transportation unveiled a new plan to improve safety along the nation’s
railroads during a visit to Columbia, S.C. The _____ offers specific plans for preventing train
accidents caused by human error and minimizing the dangers of crew fatigue.
a.
special-use plan
b.
tactical plan
c.
operational plan
d.
strategic plan
e.
mission statement
65. __________ plans direct the behavior, efforts, and priorities of operative employees for periods
ranging from 30 days to six months.
a.
Strategic
b.
Tactical
c.
Operational
d.
Standing
e.
Procedural
66. There are three kinds of __________ plans. They are single-use plans, standing plans, and budgets.
a.
strategic
b.
tactical
c.
operational
d.
MBO
e.
actionable
67. What type of planning would be used to create the festivities necessary to celebrate the 100-year
anniversary of a furniture manufacturer?
a.
single-use plan
b.
contingency plan
c.
scenario plan
d.
standing plan
e.
role-model plan
68. In case of a fire, most organizations have a series of actions that must take place beginning with
notifying the fire department and including evacuating buildings. What kind of a standing plan is
described in this example?
a.
rules and regulations
b.
procedures
c.
policies
d.
organizational norms
e.
security governances
69. __________ are types of standing plans.
a.
Policies and procedures
b.
Targeted plans
c.
Long-term tactical strategies
d.
MBO guidelines
e.
Transformational plans
70. __________ are standing plans that indicate the specific steps that should be taken in response to a
particular event.
a.
Policies
b.
Procedures
c.
Actionable plans
d.
Options-based plans
e.
Single-use plans
71. Budgets are an example of __________ planning.
a.
strategic
b.
tactical
c.
operational
d.
actionable
e.
single-use
72. New employees were instructed to never wear loose-fitting clothes when working around the canning
machine. These instructions are an example of what kind of a standing plan?
a.
rules and regulations
b.
procedures
c.
policies
d.
organizational norms
e.
security governances
73. Marriott International has a detailed manual explaining to its hotel managers how to respond in the
event of emergencies, such as hurricanes. The emergency plan outlines levels of storms and what the
response should be for each type. The plan includes anything from where to park cars to making sure
you can rent a room in a corner of the building where there are trees. This would be an example of
a(n):
a.
standing plan
b.
budget
c.
multiple-use plan
d.
options-based plan
e.
forecast
74. Harrah’s Casino in Nevada was sued because it had _____ that required all “beverage” employees to
have their appearances reengineered by an image consultant. Women were required to wear a lot of
makeup, including lipstick, powder, mascara, blush, and certain acceptable shades of nail polish.
a.
rules and regulations
b.
procedures
c.
policies
d.
organizational norms
e.
security governances
75. __________ are a type of operational plan.
a.
Single-use plans
b.
Contingency plans
c.
Short-term strategies
d.
Mission modifications
e.
Benchmarks
76. The __________ is a type of operational plan that saves managers time because it is created once and
then used repeatedly to handle frequently recurring events.
a.
standing plan
b.
budget
c.
multiple-use plan
d.
options-based plan
e.
forecast
77. A __________ is a standing plan that indicates the general course of action that should be taken in
response to a particular event or situation.
a.
policy
b.
procedure
c.
rule
d.
regulation
e.
heuristic
78. During a routine service call in June 2007, a Comcast cable repairman fell asleep on the couch of
customer Brian Finkelstein. Finkelstein’s ensuing video, complete with soundtrack and commentary
on the company’s poor equipment, high prices, and lousy customer service, quickly becomes a viral hit
on the Web. What kind of plan did Comcast most likely use to deal with this negative publicity?
a.
strategic plan
b.
procedural plan
c.
action program
d.
single-use plan
e.
regulated plan
79. In 2006, news carriers and retailers in Worcester, Mass., got an unexpected bonus with their usual
shipment of the Telegram & Gazette: the credit and debit card numbers of 240,000 subscribers to the
paper and its sister publication the Boston Globe. The security breach was the result of a recycling
program in which paper from the Telegram & Gazette’s business office was reused to wrap bundles of
newspapers. What kind of plans dictated how the newspapers were to be delivered?
a.
tactical plans
b.
action programs
c.
operational plans
d.
procedural plans
e.
stretch plans
80. Which of the following is the most specific type of standing plan?
a.
policies
b.
procedures
c.
rules and regulations
d.
forecasts
e.
MBO plans
81. Japanese-based Bandai, the world’s third-biggest toymaker, plans to acquire several smaller companies
in an effort to knock Mattel out of its first place in the industry. It will need to use _____ in order to
select toy manufacturers that are suitable for its portfolio.
a.
rational decision making
b.
trend analysis
c.
satisficing
d.
selection of optimal solutions
e.
framing constraints
82. __________ is the process of choosing a solution from available alternatives.
a.
Decision making
b.
Problem identification
c.
Heuristics
d.
Multivariable selection
e.
Problem solving
83. __________ is a systematic process of defining problems, evaluating alternatives, and choosing
optimal solutions.
a.
Problem identification
b.
Rational decision making
c.
Benchmarking
d.
Multivariable selection
e.
Keystoning
84. Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from
engaging in __________ to determine how best to expand into those market.
a.
intuitive conditioning
b.
benchmarking
c.
decision making
d.
organizational design
e.
conditioned learning
85. Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from
trying to determine what can be done to make its coffee houses successful in those markets. By
recognizing that people in these two South American countries do not drink coffee as people in the
United States do and that it needs to change this habit, Starbucks has begun a __________ process
with defining the problem.
a.
rational decision-making
b.
trend analysis
c.
satisficing
d.
selection of optimal solutions
e.
framing constraints
86. The first step in rational decision making is to:
a.
conduct a systematic environmental analysis
b.
define the problem
c.
evaluate the alternatives
d.
choose the solutions
e.
create a management team
87. The European Union encourages companies to abandon national boundaries and offer the same
products to all of the member countries. Allianz, Germany’s largest insurance group, is considering
converting from a German company to a European company. If it makes this decision rationally, it
will first:
a.
create decision criteria based on national GNPs
b.
identify problems arising from tax and regulatory issues
c.
decide whether to expand to one nation at a time
d.
create a committee to make the final decision
e.
avoid the use of bounded rationality
88. A __________ exists when there is a gap between a desired state (what managers want) and an
existing state (the situation that the managers are facing).
a.
service gap
b.
benchmark
c.
condition of uncertainty
d.
minimum threshold
e.
problem
89. Which of the following is NOT one of the six steps in the rational decision-making process?
a.
identify decision criteria
b.
weight the decision criteria
c.
compute the optimal decision
d.
evaluate the effectiveness of the decision
e.
generate alternative courses of action
90. Which of the following is one of the six steps in the rational decision-making process?
a.
choose a minimally acceptable alternative solution
b.
evaluate the effectiveness of the decision
c.
weight the criteria
d.
introduce the decision to those who will be impacted by it
e.
identify customer service gaps
91. The manager of a company that manufactures cleaning supplies has just learned the company will be
boycotted by environmental action groups that contend its products are pollutants. In terms of the
rational decision-making process, this manager has just:
a.
identified decision criteria
b.
framed the problem
c.
defined the problem
d.
generated alternative courses of action
e.
created a scenario
92. Which of the following is one of the conditions that must be met in order for managers to solve a
problem?
a.
Managers must be aware of the gap between the existing and desired states.
b.
Managers must have readily identifiable benchmarks.
c.
Managers must positively frame the problem.
d.
Managers must have a supportive organizational design.
e.
All of these conditions must be met.
93. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that
was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time
expanding globally and building its reputation on exacting production standards, it recognized this
unauthorized bottler was a(n):
a.
standard of malfeasance
b.
problem
c.
benchmark
d.
keystone issue
e.
absolute criteria
94. In order for managers to solve a problem, they must:
a.
be aware of the gap between the existing and desired states
b.
be motivated to reduce this gap
c.
have the knowledge, skills, and abilities to solve the problem
d.
have the resources to solve the problem
e.
satisfy all of these conditions
95. Once a manager who is engaged in rational decision making identifies the problem, he or she must
then:
a.
identify decision criteria
b.
weight the criteria
c.
generate alternative courses of action
d.
engage in benchmarking
e.
identify service gaps
96. _____ for determining which event planner to select for a fundraiser to raise money to research a cure
for arthritis would be experience, cost, and services provided.
a.
Valences
b.
Evaluative methods
c.
Planning resources
d.
Decision criteria
e.
Appraisal criteria
97. One method of weighting decision criteria uses ______, which is a process where each decision
criterion is compared directly to every other criterion.
a.
absolute comparisons
b.
relative comparisons
c.
valences
d.
minimum threshold rule
e.
comparative ranking scales
98. In determining which country to expand into next, Starbucks looks at discretionary income, social
class composition, what people do in their free time, annual coffee consumption, its competition, and
the political issues. In terms of rational decision making, these would be termed:
a.
standards of evaluation
b.
keystone issues
c.
standards of rationality
d.
benchmarks
e.
decision criteria
99. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that
was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time
expanding globally and building its reputation on exacting production standards, in the __________
stage of the rational decision-making process, Coca-Cola decided it had to either bring some sort of
legal action against the unauthorized bottler, ignore it, or buy it.
a.
problem definition
b.
criteria weighting
c.
generation of alternative courses of action
d.
identification of decision criteria
e.
finding the optimal solution
100. According to the rational decision-making model, when a manager generates alternative courses of
action, he or she should:
a.
generate as many alternatives as possible
b.
generate only as many alternatives as needed to reach a decision
c.
generate as many alternatives as time will allow
d.
generate relatively few satisficing alternatives
e.
discover the ideal alternative courses of action
101. __________ are used to weight the criteria in the rational decision-making model (i.e., decide which
criteria are more or less important).
a.
Dictionary rules
b.
Minimum threshold rules
c.
Formalized heuristics
d.
Absolute comparisons
e.
All of these
102. With __________, each decision criterion is compared to a standard or ranked on its own merits.
a.
absolute comparisons
b.
relative comparisons
c.
valences
d.
minimum threshold rule
e.
comparative ranking scales
103. Which step in the rational decision-making model often takes much longer and is much more
expensive than the other steps?
a.
defining the problem
b.
identifying decision criteria
c.
evaluating each alternative
d.
computing the optimal decision
e.
determining the satisficing solution
104. As a company that manufactures janitorial cleaning supplies tries to develop more environmentally
friendly products that can clean as well as its current ones, the company’s manager must assess various
alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the
__________ step in the rational decision-making model.
a.
generate alternative courses of action
b.
evaluate each alternative
c.
compute the optimal decision
d.
satisfice each alternative
e.
bounded rationality
105. When Coca-Cola discovered it had an unauthorized bottler selling Coke in the Colombian jungle, it
used the rational decision-making process to find a solution. What do you know about the stage in
which Coca-Cola evaluated its possible courses of action?
a.
Coca-Cola found this stage to be the least expensive of all the stages.
b.
Coca-Cola found this stage to be the most time-consuming of all the stages.
c.
This stage was the last stage in the process for Coca-Cola.
d.
The stage required Coca-Cola to use complex mathematical models.
e.
None of these statements accurately describe this stage.
106. The final step in the rational decision-making process is computing the optimal decision by
determining:
a.
each alternative’s optimal value
b.
each alternative’s average value
c.
the weights associated with each criterion
d.
the averages associated with each criterion
e.
the valence of each alternative
107. In the final step of the rational decision-making model, __________ are used to compute __________.
a.
criterion weights; the average value for each alternative
b.
criterion ratings and weights; the average value for each alternative
c.
criterion ratings; the optimal value for each alternative
d.
criterion ratings and weights; the optimal value for each alternative
e.
optimal valences; criterion ratings
108. In the rational decision-making process, each alternative’s optimal value is determined by __________
the rating for each criterion __________, and then summing those scores for each alternative course of
action.
a.
dividing; by a weighted percentage
b.
multiplying; by the average of all criteria
c.
subtracting; from the rating for the adjacent criteria
d.
adding; to the weight for that criterion
e.
multiplying; by the weight for that criterion
109. Which of the following statements about rational decision making is true?
a.
In general, managers do not need to complete all six steps of the rational decision-making
model to make effective decisions.
b.
Rational decision making is not done on a strategic or tactical level.
c.
The rational decision-making model describes the way decisions should be made.
d.
Bounded rationality does not influence how managers actually make decisions.
e.
All of these statements about rational decision making are true.
110. Which of the following statements about rational decision making is true?
a.
In general, managers who diligently complete all six steps of the rational decision-making
model will make better decisions than those who don’t.
b.
Rational decision making can help managers choose optimal solutions that provide
maximum benefits to their organizations.
c.
The rational decision-making model describes the way decisions should be made.
d.
The way in which managers actually make decisions is more accurately described as
bounded (or limited) rationality.
e.
All of these statements about rational decision making are true.
111. Marie-Helene de Taillac is a well-known European designer of understated, very delicate jewelry.
Once she determined that further growth was impossible without changing how she distributed her
product, she decided to open her own retail outlet to sell her product rather than letting department
stores sell it. Since she made the decision without really examining the costs involved in
implementing her decision, she has engaged in _____ behavior.
a.
benchmarking
b.
laddering
c.
satisficing
d.
maximizing
e.
leapfrogging
112. Rational decision making:
a.
has five steps that must be performed in order to identify solution that will be satisficing
b.
ends with the selection of an optimal solution that provides maximum benefits to the
organization
c.
is conflict-free
d.
is not concerned about costs
e.
begins with the establishment of a budget
113. As mangers try to take a rational approach to decision making, they must contend with bounded
rationality, which means they are restricted by:
a.
real-world constraints
b.
benchmarking
c.
methodology validity
d.
information overload
e.
all of these
114. Japanese-based Bandai, the world’s third-biggest toymaker, plans to acquire several smaller companies
in an effort to knock Mattel out of its first place in the industry. Due to _____, it will not have access
to all of the information it would need to make a 100% satisfactory selection of the toy manufacturers
it needs to acquire to reach its goal.
a.
bounded rationality
b.
satisficing standards
c.
resource maximization barriers
d.
rational munificence
e.
synergistic issues
115. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that
was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time
expanding globally and building its reputation on exacting production standards, Coca-Cola decided it
had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it.
Legal action was not feasible due to the differences in ethical and legal environments between the
United States and Colombia. In this case, bounded rationality was created by:
a.
real-world constraints
b.
incomplete and imperfect information
c.
Coca-Cola’s own limited decision-making capabilities
d.
information overload
e.
all of these
116. __________ occurs when managers choose an alternative that is good enough, rather than the best
possible alternative.
a.
Maximizing
b.
Optimizing
c.
Availability bias
d.
Negative frame
e.
Satisficing
117. In making rational decision, most managers __________ rather than __________.
a.
maximize; satisfice
b.
optimize; maximize
c.
satisfice; maximize
d.
optimize; idealize
e.
maximize; optimize
118. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that
was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time
expanding globally and building its reputation on exacting production standards, Coca-Cola decided it
had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it.
Legal action was not feasible due to unfamiliarity with the ethical and legal environments in
Colombia. Coca-Cola’s desire to build a global brand prevented it from ignoring the Colombian
bottler. Because of __________, legal action was not a viable solution to the problem.
a.
bounded rationality
b.
satisficing standards
c.
resource maximization barriers
d.
rational munificence
e.
synergistic issues
119. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that
was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time
expanding globally and building its reputation on exacting production standards, Coca-Cola decided it
had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it.
Legal action was not feasible due to unfamiliarity with the ethical and legal environments in
Colombia. Coca-Cola’s desire to build a global brand prevented it from ignoring the Colombian
bottler. Coca-Cola had to engage in __________ and buy the bottler.
a.
satisficing behavior
b.
making an optimal decision
c.
positive framing
d.
maximizing the solution
e.
eliminating uncertainty
120. In theory, fully rational decision makers ______ decisions by choosing the optimal decision.
a.
satisfice
b.
maximize
c.
evaluate
d.
identify
e.
apply
121. Groupthink occurs in:
a.
newly formed groups whose members were arbitrarily selected and who are assigned to
make programmed decisions
b.
groups in which members have dissimilar backgrounds
c.
standing committees whose members are under no pressure to agree
d.
groups whose members are elected to serve as figureheads
e.
highly cohesive groups where there is a great deal of pressure to agree with each other
122. Groupthink is most likely to occur when:
a.
the group is leaderless
b.
the group is culturally diverse
c.
there is an established procedure for problem solving
d.
the group is insulated from others with different perspectives
e.
any of these conditions occur
123. Which of the following statements explains why groups can produce better solutions than individuals
in decision-making situations?
a.
Formal groups have no group norms.
b.
Groups cannot experience information overload.
c.
Groups are able to view problems from multiple perspectives.
d.
Groups take additional time to carefully evaluate all options.
e.
All of these are reasons why groups can produce better solutions than individuals in a
decision-making situation.
124. Which of the following statements about group decision making is true?
a.
The pitfalls of group decision making are inevitable.
b.
Managers cannot overcome the problems associated with group decision making.
c.
One potential problem with group decision making is time availability.
d.
Ethnocentrism can be used to overcome the pitfalls of group decision making.
e.
Structured conflict is one of the primary pitfalls of group decision making.
125. __________ is the emotional reaction that can occur when disagreements become personal rather than
professional.
a.
A-type conflict
b.
C-type conflict
c.
Emotive empowerment
d.
Organizational disharmony
e.
Norm disruption
126. The __________ approach to decision making is a method in which an individual or a subgroup is
assigned the role of a critic.
a.
dialectical inquiry
b.
groupthink
c.
devil’s advocacy
d.
Delphi
e.
dyadic communications
127. Volkswagen has decided to cut costs by eliminating 5,000 jobs annually until its business has been
restored to profitability—a goal that could take as many as ten years to accomplish. Union
representatives have responded to this decision with emotional outbursts of anger. VW has created:
a.
a-type conflict
b.
c-type conflict
c.
emotive empowerment
d.
organizational disharmony
e.
norm disruption
128. The first step in a devil’s advocacy program is to:
a.
select a devil’s advocate
b.
create decision criteria
c.
gather all the relevant information
d.
establish a numeric value for each alternative
e.
generate a potential solution
129. Studies of the proper use of the devil’s advocacy and dialectical inquiry approaches have shown that
these methods:
a.
lead to more a-type conflict
b.
lead to improved decision mentoring
c.
lead to less acceptance of decisions once they have been made
d.
introduce c-type conflict into the decision-making process
e.
eliminate all organizational conflict
130. Which of the following is an approach to structured conflict?
a.
group intervention
b.
nominal group technique
c.
dialectical inquiry
d.
electronic brainstorming
e.
Delphi technique
131. Because it is a time-consuming, labor-intensive, and expensive process, __________ is best reserved
for important long-term issues and problems.
a.
the Delphi technique
b.
brainstorming
c.
the devil’s advocacy
d.
the dialectical inquiry
e.
keystoning
132. The __________ is a decision-making method in which members of a panel of experts respond to
questions and to each other until reaching agreement on an issue.
a.
dialectical inquiry technique
b.
nominal group technique
c.
Delphi technique
d.
electronic brainstorming technique
e.
feedback method
133. The nominal group technique improves group decision making by:
a.
requiring the selection of co-leaders to prevent member dominance
b.
providing predetermined group norms
c.
eliminating group cohesiveness
d.
decreasing a-type conflict
e.
encouraging all members to have an equal voice in the decision-making process
134. The first step in the Delphi technique is to:
a.
appoint a mediator
b.
assemble a panel of experts
c.
generate several possible solutions
d.
set up a groupthink
e.
decrease a-type conflict