89. A(n) ____ decision-making model describes how decisions are made rather than prescribing how they
should be made.
90. Which of the following statements BEST describes bounded rationality?
91. Mario wants to replace his bathroom. He called the contractor who did his kitchen five years ago and hired
him. Mario used
92. Herbert Simon noted that managers generally fail to make rational decisions because they are limited by
their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did
Simon give this phenomenon?
93. Olga is house hunting in a “hot” market. Some homes sell within hours of listing. Olga finds one that meets
her minimum criteria and immediately makes an offer. This is an example of
94. Donald Davis has to decide what make and model of pickup trucks to buy for his extermination company
employees to drive. There are eight different manufacturers and countless models from which to choose. He
also plans to buy a pickup for himself later on. He checks out the Dodge models and selects the Dodge
full-sized model because he does not have much time to spend on the problem and because it will do the job.
What would Herbert Simon call what Davis has just done?
95. When a manager evaluates alternatives until she comes to one that meets some minimum standard of
sufficiency, selects it, and then goes on to other problems without considering the remaining rational
alternatives, she has engaged in
96. Hailey finds that her company is over billing the government for services. She tells her boss, who says he
will take care of it, but he does nothing. Hailey tells her government contact. What model of decision making
does Hailey’s behavior represent?
97. Which of the following is NOT a behavioral force that influences decision making?
98. A(n) ____ is an informal group allied together for a common purpose.
99. The CEO is retiring. There are two candidates remaining. Three division heads support Alex. The other four
division heads support Pat. These alliances can be called
100. Ryan Tool Company just purchased Coney Tools. The purchase came about because both the research and
development people and the production people at Ryan joined forces to lobby for the purchase of Coney rather
than another company. Both groups wanted Coney because of its up-to-date research and production facilities.
The behavioral force that influenced their decision making is referred to as
101. When Eric selected Janine for the marketing position, he had a feeling she would fit into the culture of the
department. Eric used ____ to fill the position.
102. William invested in an initial public offering. After a month he lost 5 percent. After a year he lost 50
percent. After two years he lost 80 percent. William’s decision to keep the investment is an example of
103. Renee made a bad decision. She stays with it, trying to convince others it was a good decision. This is an
example of
104. Charlie feels each of the alternatives is basically the same. He decides based on his gut feeling. Which of
the behavioral factors that influence decision making does Charlie’s behavior reflect?
105. YouTube was operating at a loss when Google bought it. Three years later it was still operating at a loss.
Google may have experienced ____.
106. If you make a decision that does not turn out as planned Warren Buffet advises, “When you find yourself
in a hole, stop digging.” What behavioral influence on decision making does this advice attempt to prevent?
107. A manager who has a low-risk propensity would
108. Diaz Nesamoney is a computer scientist who founded three successful software companies. Entrepreneurs
tend to have a high ____
109. A builder in Miami started constructing homes during the “hot” real estate market, even though he knew
there were a lot of speculators in the market. The market went cold, and the builder was stuck selling for very
low prices. The builder demonstrated
110. Ford announced that it planned to cut 10 percent of salaried work. The plan involved retirements,
reorganization, and eliminations. Which of the following behavioral aspects is most likely to be involved in this
decision?
111. Groups that are used to develop a consensus of expert opinion without the members of the group ever
meeting face to face are called ____ groups.
112. Which of the following is NOT an example of an interacting group?
113. A disadvantage of using interacting groups to make decisions is
114. The first step in using the Delphi procedure is to
115. A Delphi group is not used daily because it has disadvantages. Which of the following is NOT its
disadvantage?
116. The CIO at Canon is considering an information system upgrade. He goes to each of the division heads to
discuss their information needs and system capabilities. The CIO narrows the options, and contacts the
executives again, reaching agreement before purchasing a system. Which group decision-making technique
does this represent?
117. A(n) ____ group is the most common form of a decision-making group.
118. Which of the following statements does NOT describe a characteristic of the nominal group technique?
119. One advantage of group decision making is
120. Which of the following statements is an advantage of group decision making?
121. Which of the following disadvantages of group decisions typically results from the group being very
cohesive?
122. Circuit City went bankrupt because of a series of poor managerial decisions and a down turn in the
economy. In retrospect, it would seem that there was too much emphasis on the group reaching a consensus
decision. As a result, many decisions were made to avoid conflict. What disadvantage of group decision making
does this represent?
123. Caving into peer pressure is a disadvantage of ____.
124. Decision making includes recognizing and defining the nature of a decision situation, identifying
alternatives, choosing the “best” alternative, and ____________________.
125. According to the text, the word best as used with respect to selecting a decision alternative relates to the
____________________ of the decision.
126. In your personal finances, when you have budgeted properly, paying your tuition bill is a(n)
____________________ decision.
127. The decision by American Airlines to sell off its American Eagle regional carrier was a(n)
____________________ decision.
128. The circumstances that exist for the decision maker are conditions of certainty, risk, or
____________________.
129. Maria knows that the payoffs associated with her decision alternatives will be affected by the interest rate
announced at Tuesday’s Federal Reserve board meeting. She calculates there is a 70 percent chance that the
interest rate will rise and a 30 percent chance that it will stay the same. Maria is operating under the
decision-making condition known as ____________________.
130. Most of the significant decision making in organizations is done under the decision-making condition of
____________________.
131. A manager who really wants to approach a decision rationally and logically should try to follow the steps
in ____________________ decision making.
132. The first step in the rational decision-making model is ____________________ the decision situation.
133. When evaluating decision alternatives, the manager should check ____________________,
satisfactoriness, and probable consequences.
134. Charon Gray is evaluating one of the applicants for a job in her office. The individual meets two of the
three important qualifications set for the job but not the third. This applicant fails to meet the decision criterion
known as ____________________.
135. Implementing the chosen alternative is most closely related to the management function of
____________________.
136. Behavioral aspects of decisions include political forces, intuition, escalation of commitment, risk and
____________________.
137. Bounded rationality is a concept suggesting that decision makers are limited by their
____________________, unconscious reflexes, skills and habits.
138. One major element of politics, ____________________, is especially relevant to decision making in
groups and teams.
139. The administrative model of decision making looks at how decisions are ____________________ rather
than how they should be made.
140. The administrative model holds that managers have incomplete and imperfect information, are constrained
by bounded rationality, and tend to ____________________ when making decisions.
141. Gut feeling is another name for ____________________.
142. Everyone loved Steve’s idea when he first suggested it. Upon further evaluation some challenges arose, but
Steve was convinced he could make it work. When another alternative was introduced Steve clung to his
approach, convinced it was the best. Steve experienced a(n) ____________________.
143. A manager must remember that, just as behavioral processes such as politics and risk propensity affect the
decisions she makes, so, too, do her ____________________.
144. The components of managerial ethics are relationships of the firm to its employees, of employees to the
firm, and of the firm to other ____________________.
145. ____________________ are the most common form of decision-making group.
146. At least one member of the group or team might be assigned the role of ____________________.
147. Match the following. You may use a response once, more than once, or not at all.
1. Model that assumes manager has perfect
information
2
2. Choosing the best alternative
3
Programmed
3. Computers greatly facilitate
Uncertainty
4
are not clear
1
4. The manager’s alternatives and their probabilities
5. Political forces
5
Administrative
148. Special Exercises
When a dentist puts a crown or bridge in your mouth or just fills a cavity, there is a natural curing time for the
material used. In years past, dentists would advise patients who had had such dental work to avoid hot and cold
substances, gum, taffy, and hard candy for at least 48 hours. However, there is a polymer light technique that
cures the composite and requires the patient to take no special precautions. For years, Dr. Brown has avoided
buying any new equipment. He is a rational thinker and uses rational decision making. The following is what
took place when Dr. Brown decided to purchase some new equipment. Put them in the order according to the
rational decision-making model.
Dr. Brown fills the same cavity for the fourth time for a young boy who loves to eat taffy.
Dr. Brown decides to buy the Apollo eLight because it is cordless, guarantees safety, and cures composite materials in six seconds.
Dr. Brown discovers that there are 30 manufacturers of curing lights.
Dr. Brown buys the Apollo eLight made by Dental/Medical Diagnostics, Inc.
Dr. Brown calls patients on which he has used the polymer light technique and makes sure that they have had no adverse reactions.
Dr. Brown discovers that over half the curing lights available have heat output, six have cords, and only three can cure composite in less
than 10 seconds.
1.
Step 1
2.
Step 2
3.
Step 3
4.
Step 4
5.
Step 5
6.
Step 6
149. Compare and contrast the two types of decisions.
150. What are the similarities and differences between the two types of decisions?
151. Compare and contrast the three types of conditions under which managers make decisions by placing them
on a continuum of certainty.
152. If people do not use the classical decision-making model, why should you study it?
153. Use the six steps in the rational model of decision making to show how you arrived at your decision to
attend this school. (If you weren’t rational, pretend that you were.)
154. Compare and contrast the assumptions of the behavioral and rational models of decision making.
155. In evaluating a decision alternative, the decision maker should apply three criteria. Briefly discuss each
criterion.
156. Describe how intuition, political forces, risk propensity, ethics, and escalation of commitment could impact
decision making.
157. Briefly show how decision makers with both high and low propensity for risk might deal with escalation of
commitment.
158. Under what conditions is it better to use group or team decisions rather than individual decisions?
159. You have recently been hired to manage the international marketing division of a large company. Your
first job will be to revamp the marketing campaigns for three different products that your firm markets
internationally. You feel that you need input from a variety of people to accomplish your goal, so you have
decided to use groups. Briefly describe the group decision-making technique(s) you plan to use to accomplish
your goal.
Any of the three alternatives mentioned in the book would be appropriate alone or in combination with one or
more of the others. For example:
160. What are the advantages and disadvantages of Delphi groups over other decision-making processes?