47. Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an
increase in drinking problems among the workforce. She thinks she needs to investigate further. She is
at what stage of the managerial decision making process?
a.
Diagnosis and analysis of causes
b.
Development of alternatives
c.
Recognition of decision requirement
d.
Evaluation and feedback
e.
Selection of desired alternatives
48. A(n) ____ occurs when the organizational accomplishment is less than established goals.
a.
strength
b.
threat
c.
diagnosis
d.
opportunity
e.
problem
49. ____ is the step in the decision-making process in which managers analyze underlying causal factors
associated with the decision situation.
a.
Analysis
b.
Diagnosis
c.
Recognition
d.
Judgment
e.
Identification
50. Which of the following is the first step in the managerial decision making process?
a.
Evaluation and feedback
b.
Development of alternatives
c.
Recognition of decision requirement
d.
Diagnosis and analysis of causes
e.
Selection of desired alternatives
51. ____ is the last step in the decision making process.
a.
Evaluation and feedback
b.
Development of alternatives
c.
Implementation of chosen alternative
d.
Selection of desired requirement
e.
Recognition of decision requirement
52. “When did it occur” and “how did it occur” are questions associated with which step of the decision
making process?
a.
Diagnosis and analysis of causes
b.
Recognition of decision requirement
c.
Development of alternatives
d.
Selection of desired alternative
e.
None of these
53. The recognition of the decision requirement step in the managerial decision making process requires
managers to
a.
develop alternative solutions.
b.
integrate information in novel ways.
c.
use the classical model of decision making.
d.
focus on generating ideas.
e.
select undesirable alternatives.
54. The decision-maker must ____ once the problem has been recognized and analyzed.
a.
evaluate and provide feedback
b.
choose among alternatives
c.
generate alternatives
d.
prioritize the alternatives
e.
reanalyze the problem
55. For a programmed decision,
a.
alternatives are usually difficult to identify.
b.
alternatives are usually easy to identify.
c.
there are usually few alternatives.
d.
there are usually few alternatives and they are difficult to identify.
e.
there are no alternatives.
56. Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in an environment of
high uncertainty. As a result, Ryan will
a.
likely be making programmed decisions.
b.
probably have an easy time generating alternatives.
c.
probably have a difficult time generating alternatives.
d.
likely rely on the classical model of decision making.
e.
wait until environment becomes certain.
57. Once the desired alternative is developed, it should be
a.
analyzed.
b.
evaluated.
c.
selected.
d.
recognized.
e.
identified.
58. Which of the following refers to the willingness to undertake risk with the opportunity to increase
one’s return?
a.
Tunnel vision
b.
Risk propensity
c.
Risk averse
d.
Thrill seeking
e.
Ineffective investment philosophy
59. The ____ step in the decision making process involves using managerial, administrative, and
persuasive abilities to translate the chosen alternative into action.
a.
recognition
b.
analysis
c.
evaluation
d.
implementation
e.
feedback
60. Feedback is important because
a.
decision making is a continuous process.
b.
it provides decision-makers with new information.
c.
it helps determine if a new decision needs to be made.
d.
it provides decision-makers with new information and it helps determine if a new decision
needs to be made.
e.
all of these.
61. Genna is collecting data on how well the organization has done since their new strategy was
implemented. She is in what stage of the managerial decision making process?
a.
The generation of alternatives
b.
Implementation of the chosen alternative
c.
Evaluation and feedback
d.
Recognition of the decision requirement
e.
Selection of desired alternative
62. Which style is used by people who prefer simple, clear-cut solutions to problems?
a.
Behavioral
b.
Conceptual
c.
Directive
d.
Analytical
e.
Classical
63. Personal ____ style refers to differences among people with respect to how they perceive problems
and make decisions.
a.
risk taking
b.
behavior
c.
decision
d.
strategic
e.
analysis
64. Managers are considered as having ____ style, when they like to consider complex solutions based on
as much data as they can gather.
a.
behavioral
b.
conceptual
c.
directive
d.
analytical
e.
classical
65. Which of these styles is adopted by managers having a deep concern for others as individuals?
a.
Behavioral
b.
Classical
c.
Analytic
d.
Logical
e.
Conceptual
66. People with a(n) ____ style usually are concerned with the personal development of others and may
make decisions that help others achieve their goals.
a.
classical
b.
analytic
c.
logical
d.
behavioral
e.
conceptual
67. All of the following are cognitive biases that can affect manager’s judgment EXCEPT
a.
being influenced by initial impressions.
b.
justifying past decisions.
c.
seeing what you don’t want to see.
d.
perpetuating the status quo.
e.
overconfidence.
68. The ability to make ____ decisions is a critical skill in today’s fast-moving organizations.
a.
fast
b.
widely supported
c.
high-quality
d.
frequent
e.
all of these
69. According to Spotlight on Skills in Chapter 6, which of the following is not an idea for applying
evidence-based decision making?
a.
Demand evidence.
b.
Perform secondary research.
c.
Do a postmortem review.
d.
Balance decisiveness and humility.
e.
Practice the five whys.
70. Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a
broad range of alternatives for decision making?
a.
Brainstorming
b.
Groupthink
c.
Point-counterpoint
d.
Brainwriting
e.
Devil’s advocate
71. The ____ is the individual who is assigned the role of challenging assumptions made by the group.
a.
group gadfly
b.
multiple advocate
c.
devil’s advocate
d.
brainstormer
e.
inferior member
72. Which of the following is a decision-making technique in which people are assigned to express
competing points of view?
a.
Point-counterpoint
b.
Devil’s advocate
c.
Debate
d.
Groupthink
e.
Brainwriting
73. The tendency of organizations to invest time and money in a solution despite strong evidence that is
not appropriate is referred to as
a.
technological decisions.
b.
collective intuition.
c.
decision learning.
d.
team delay.
e.
escalating commitment.
74. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that
he will be visiting to drop off packages. This can best be described as what kind of decision?
a.
Programmed
b.
Nonprogrammed
c.
Wicked
d.
Administrative
e.
Intuitive
75. The four positions on the possibility of failure scale include certainty, risk, ambiguity, and:
a.
Uncertainty
b.
Conflict
c.
Necessity
d.
Indecision
e.
Possibility
76. ________ decisions are associated with conflicts over goals and decision alternatives, rapidly changing
circumstances, fuzzy information, and unclear links among decision elements.
a.
Nonprogrammed
b.
Programmed
c.
Wicked
d.
Conventional
e.
Irrational
77. During the fallout of the global financial crisis of the late 2000s, finance companies had to make
important decisions in a highly ambiguous environment. The decision to buyout failed banks could
best be described as what type of decision?
a.
Bounded
b.
Programmed
c.
Conventional
d.
Wicked decision problem
e.
Irrational decision
78. The growth of quantitative decision techniques that use computers has expanded the use of which
decision-making approach?
a.
Administrative
b.
Classical
c.
Intuitive
d.
Political
e.
Bureaucratic
79. Rodney doesn’t always realize that within his role as an air traffic controller, he must continuously
perceive and process information based on knowledge and experience that he is not consciously aware
of. This describes what type of decision-making?
a.
Administrative
b.
Right-brained
c.
Satisficing
d.
Rational
e.
Intuitive
80. The __________ model of decision-making is useful for making nonprogrammed decisions when
conditions are uncertain, information is limited, and there are managerial conflicts about what goals to
pursue or what course of action to take.
a.
Classical
b.
Functional
c.
Bureaucratic
d.
Political
e.
Administrative
81. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at
Jefferson are complex and involve many people, with a significant amount of disagreement and
conflict. Which decision-making model fits best for this organization?
a.
Political
b.
Functional
c.
Classical
d.
Administrative
e.
Bureaucratic
82. When managers ask questions such as “What is the state of disequilibrium affecting us?”, they are in
which stage of the managerial decision-making process?
a.
Selection of a desired alternative
b.
Development of alternatives
c.
Diagnosis and analysis of causes
d.
Recognition of decision requirement
e.
Evaluation and feedback
83. When quality control measures at the local tire plant were found to be inadequate, managers were
asking themselves, “How did this occur?” and “What is the result?” The company is in which stage
of the managerial decision-making process?
a.
Selection of a desired alternative
b.
Development of alternatives
c.
Diagnosis and analysis of causes
d.
Recognition of decision requirement
e.
Evaluation and feedback
84. Research has identified four major decision styles. These include all of the following EXCEPT:
a.
Behavioral
b.
Conceptual
c.
Analytical
d.
Authoritative
e.
Directive
85. Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous
year’s sales to estimate sales for the coming year. This is an example of which management bias?
a.
Being influenced by emotions
b.
Perpetuating the status quo
c.
Seeing what you want to see
d.
Justifying past actions
e.
Being influenced by initial impressions
86. When managers base decisions on what has worked in the past and fail to explore new options, they
are:
a.
Perpetuating the status quo
b.
Being influenced by emotions
c.
Being overconfident
d.
Justifying past actions
e.
Seeing what they want to see
87. As a top manager, Joanna works with others within her team every day in making important corporate
decisions. Her preferred decision-making approach is to generate as many alternatives to problems as
possible in a short amount of time. This approach is referred to as:
a.
Groupthink
b.
Devil’s advocacy
c.
Point-counterpoint
d.
Escalating commitment
e.
Brainstorming
88. __________refers to the tendency of people in groups to suppress contrary opinions.
a.
Point-counterpoint
b.
Groupthink
c.
Devil’s advocacy
d.
Escalating commitment
e.
Brainstorming
CASE
Scenario – Vaughn Bately
Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly
trained and well respected by experts both inside and outside the company. Recently one of Vaughn’s
engineers suggested a new technique for the development and use of an argon laser. There appeared to
be rich potential for this technology, but Vaughn wasn’t certain that developing this technology was
the best use of his limited resources. Vaughn was facing a significant decision.
1. If Vaughn uses the classical model of decision making, which of these assumptions would he reject?
a.
The decision maker is rational and uses logic in assigning values and evaluating
alternatives.
b.
The desired decision will maximize attainment of organizational objectives.
c.
The decision-maker strives for complete certainty, gathering complete information.
d.
Problems are precisely formulated and defined.
e.
All of these are accepted.
2. If Vaughn uses the administrative model of decision making, which of these assumptions would he
reject?
a.
Decision-makers settle for a satisficing rather than maximizing solution
b.
The search for alternatives is limited because of information, human and resource
constraints
c.
Rational procedures will normally lead to the best solution in a complex organization
d.
Decision objectives are often vague, conflicting, and lack consensus among managers
e.
All of these are accepted
3. Which of the following steps would Vaughn not take in making his decision?
a.
Sense and recognize the decision requirement
b.
Implement the chosen alternative
c.
Create a set of alternatives
d.
Diagnose and analyze problem causes
e.
All of these would be included
COMPLETION
1. A(n) ____________________ is a choice made from available alternatives.
2. ____________________ is the process of identifying problems and opportunities and then resolving
them.
3. ____________________ decisions involve situations that have occurred often enough to enable
decision rules to be developed and applied in the future.
4. ____________________ decisions are made in response to situations that are unique, are poorly
defined and largely unstructured, and have important consequences for the organization.
5. ____________________ means that all the information the decision-maker needs is fully available.
6. ____________________ means that a decision has clear-cut goals and that good information is
available, but the future outcomes associated with each alternative are subject to chance.
7. Under conditions of ____________________, managers know what goal they wish to achieve, but
information about alternatives and future events is incomplete.
8. ____________________ means that the goals to be achieved or the problem to be solved is unclear,
alternatives are difficult to define, and information about outcomes is unavailable.
9. The ____________________ model of decision making is based on economic assumptions.
10. A normative decision making model defines how a manager ____________________ make decisions.
11. In many respects, the ____________________ model represents an “ideal” model decision-making
and can’t usually be attained by real people in real organizations.
12. The ____________________ model of decision making describes how managers actually make
decisions in difficult situations, such as those characterized by nonprogrammed decision, uncertainty,
and ambiguity.
13. The recognition that people have limits on how rational they can be is known as
____________________.
14. ____________________ means that decision-makers choose the first solution alternative that satisfies
minimal decision criteria.
15. A(n) ____________________ approach describes how managers actually make decisions, not how
they should.
16. ____________________ represents a quick apprehension of a decision situation based on past
experience but without conscious thought.
17. ____________________ is the process of forming alliances among managers.
18. A(n) ____________________ occurs when organizational accomplishment is less than established
goals.
19. ____________________ exists when managers see potential of enhancing performance beyond
current levels.
20. The step in the decision making process in which managers analyze the underlying causal factors
associated with the situation is called ____________________.
21. ____________________ is the willingness to undertake risk with the opportunity of gaining an
increased payoff.
22. The ____________________ stage involves the use of managerial, administrative, and persuasive
abilities to ensure that the chosen alternative is carried out.
23. ____________________ is important because decision making is a continuous, never ending process.
24. Differences among people with respect to how they perceive problems and make decisions is called
____________________.
25. The ____________________ style is often the style adopted by managers having a deep concern for
others as individuals.
26. People with a(n) ____________________ style usually are concerned with the personal development
of others and may make decisions that help others achieve their goals.
27. A(n) ____________________ is assigned the role of challenging the assumptions and assertions made
by the group.
SHORT ANSWER
1. List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing
and analyzing causes.
2. List the three guidelines of innovative group decision-making in today’s businesses.
ESSAY
1. Explain the difference between programmed and nonprogrammed decisions and give an example of
each.
2. Compare decision conditions of certainty, risk, uncertainty, and ambiguity.
3. Briefly describe the assumptions underlying the classical model of decision making.
4. Explain the four underlying assumptions of the administrative model.
5. List and describe the four basic assumptions of the political model.
6. What are the six steps in the managerial decision making process?
7. Explain how a manager selects the desired decision in the managerial decision making process.
8. Briefly describe the four major personal decision styles.