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1) A problem exists when a manager sees a way for the firm to achieve a more desirable state than the one it's currently in

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1) A problem exists when a manager sees a way for the firm to achieve a more desirable state than the one it's currently in.

 

 

 

2) The classical model argues that managers will choose the alternative that maximizes the desired outcome.

 

 

 

3) It is important to monitor and evaluate results in order to detect problems with the original decision and its implementation.

 

 

 

4) While the rational model shows how decisions should be made, it falls short of describing how decisions are actually made.

 

 

 

5) The bounded rationality model focuses on the decision maker as an optimizer.

 

 

 

6) High levels of certainty for both the problem formulation and the problem solution phases characterize the programmed decision-making process.

 

 

 

7) Standard operating procedures (SOP) are often used for nonprogrammed decisions.

 

 

 

8) In implementing the choice, group responsibility is generally superior to individual responsibility.

 

 

 

9) Victims of groupthink tend to collectively rationalize and discount warning signs that should lead them to reconsider earlier decisions.

 

 

 

10) In a group decision-making process, appointing a devil's advocate will prevent groupthink.

 

 

 

11) Escalation of commitment can lead to positive consequences for organizations.

 

 

 

 

12) High involvement while evaluating results is significantly related to higher levels of satisfaction and work group performance.

 

 

13) Participation decreases the likelihood that employees will work for rewards and outcomes they value.

 

 

 

14) In high-velocity environments, decision-making groups must not be afraid to act.

 

 

 

 

 

15) Conducting a dialectical inquiry can be a particularly good way to overcome groupthink and escalation-of-commitment pitfalls.

 

 

 

16) During the brainstorming process, individual members meet as a group, but they begin by silently and independently generating ideas to solve a problem.

 

 

 

 

17) The nominal group technique is ineffective against groupthink.

 

 

 

 

18) The Delphi technique is used to improve problem formulation.

 

 

 

19) Technology is helpful for routine but complex decisions.

 

 

20) Compared to computer-mediated groups, face-to-face groups take longer to complete their tasks and members experience less satisfaction.

 

 

 

21) The process of decision making involves several steps that can be divided into distinct categories. The formulation phase involves ________.

A) generating alternatives

B) diagnosing the factors affecting the problem or opportunity

C) selecting the preferred solution

D) implementing the decided course of action

 

 

 

22) The process of decision making involves several steps that can be divided into distinct categories. The solution phase involves ________.

A) diagnosing the factors affecting the problem or opportunity

B) identifying a problem or opportunity

C) acquiring information

D) implementing the decided course of action

 

 

 

 

 

23) Which of the following represents the earliest attempt to model decision-making processes?

A) the retrospective decision model

B) the bounded rationality model

C) the rational model

D) the administrative model

 

 

24) In a classical model, once you have identified a problem or opportunity, the next step is to ________.

A) analyze the alternatives generated

B) determine the criteria for selecting among the alternatives to deal with it

C) generate alternatives that achieve the results you want

D) select feasible alternatives

 

 

 

25) Kenneth is a manager for a content management firm. He realizes that the firm requires five technicians to maintain and update the firm's servers. Which of the following actions would suggest that Kenneth is developing objectives and criteria according to the classical model?

A) Kenneth decides to poach technicians from its competitor to understand its database management techniques.

B) Kenneth realizes that the firm's data storage capacity has to be doubled in the next six months.

C) Kenneth decides that these technician require 5 percent interpersonal skills, 50 percent technical knowledge, 15 percent motivation, and 30 percent problem solving ability.

D) Kenneth selects twenty resumes from a job portal.

 

 

 

 

26) Even when a situation is similar to another situation that occurred in the past, it's often worthwhile to pursue new, creative alternatives. Which of the following is a valid rationale for this statement?

A) Pursuing new, creative alternatives for a situation helps an organization gain the reputation of being an innovative firm.

B) No two situations are identical and subtle differences may make a past solution less effective today.

C) Using past solutions for new problems is discouraged in firms that operate in today's dynamic environment.

D) Pursuing new, creative alternatives for a situation makes it easier for the manager to implement and monitor them.

 

 

27) While ________ in the classical model, you need to determine which alternatives would produce minimally acceptable results, eliminate alternatives that are unlikely to achieve the minimally acceptable outcome, and examine the feasibility of the remaining alternatives.

A) analyzing alternatives

B) selecting alternatives

C) generating alternatives

D) developing objectives and criteria

 

 

 

28) In the classical model of decision making, the ________ asserts that managers choose the alternative that they believe maximizes the desired outcome.

A) retrospective decision model

B) bounded rationality model

C) subjectively expected utility model

D) administrative model

 

 

 

 

29) In which of the following steps of the classical model do managers access sources and reasons for potential resistance to the decision?

A) monitoring and evaluation results

B) implementing the decision

C) selecting alternatives

D) generating alternatives

 

 

30) During the implementation step of the classical model, managers ________.

A) determine the chronology and sequence of actions designed to overcome resistance to the decision

B) eliminate alternatives that are unlikely to achieve the minimally acceptable outcome

C) determine which of the remaining alternatives will produce the most satisfactory outcome

D) choose the alternative that maximizes the desired outcome

 

 

31) Lance Crooger, the CEO of Heithz Co., realizes that the company is losing its competitive advantage due to lack of transparency and communication within the organization. He notices that customers are shifting to competitors' products because of Heithz's lack of effective customer service—agents who are directly in touch with the customers did not have decision-making authority. After following the rational model of decision-making process, Lance concludes that decentralizing the organizational hierarchy will solve most of the problems and provide Heithz's customer service agents with decision-making ability, resulting in better services. However, Lance realizes that most of Heithz's senior management will be against this decision because they will feel that their subordinates will receive more power. Lance is now determining ways to tackle senior management resistance. Which step of the rational model is Lance presently in?

A) analyzing alternatives

B) selecting alternatives

C) implementing the decision

D) monitoring and evaluating results

 

 

 

 

32) It is important to monitor and evaluate results in a decision-making process in order to ________.

A) assess sources and reasons for potential resistance to the decision

B) detect problems with the original decision and its implementation

C) determine the chronology and sequence of actions designed to overcome resistance to the decision

D) choose the alternative that maximizes the desired outcome

 

 

33) Which of the following assumption is made while pursing the rational model of decision making?

A) The problem or opportunity is unclear.

B) Decision makers are not rational.

C) The firm's objectives are unclear.

D) Decision makers are not biased.

 

 

34) ________ is the tendency for information to lose its certainty as it is passed along.

A) Information bias

B) Cognitive complexity

C) Stereotyping

D) Uncertainty absorption

 

 

 

 

35) Which of the following defines selective perception?

A) a tendency to ignore or avoid certain information, especially ambiguous information

B) a tendency for information to lose its certainty as it is passed along

C) deciding about an alternative on the basis of characteristics ascribed by others

D) a reluctance to give or receive negative information

 

 

 

36) Preston rejects Jose for the position of customer-relations manager because of his perception that Mexicans are disloyal. This is an example of ________.

A) cognitive complexity

B) stereotyping

C) uncertainty absorption

D) information bias

 

 

 

37) "I hate Irish men because they are drunkards." This statement is an example of ________.

A) stereotyping

B) information bias

C) cognitive complexity

D) selective perception

 

 

38) Kiera, an HR executive, updates Mason, the accounts manager: "We have received 500 resumes for the position of accountants. It's gonna take forever to screen these. Any ideas?" Mason suggests, "Rule out anyone without 2 years of accounting experience." This is an example of ________.

A) uncertainty absorption

B) selective perception

C) cognitive complexity

D) information bias

 

 

 

 

39) The administrative model is also known as the ________.

A) bounded rationality model

B) retrospective decision model

C) implicit favorite model

D) rational model

 

 

 

40) The ________ assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information-processing capabilities than they possess.

A) retrospective decision model

B) administrative model

C) rational model

D) implicit favorite model

 

 

 

 

41) Rather than using explicit criteria and weights to evaluate alternatives, the bounded rationality model argues that people use ________.

A) holism

B) experience

C) heuristics

D) perception

 

 

42) Heuristic is a rule that guides the search for alternatives into areas that have ________.

A) high probabilities for yielding success

B) interchangeable alternatives

C) maximum options

D) information-processing capabilities

 

 

43) Seth Craig, a senior manager in a financial consulting firm, is interviewing candidates for the position of accounting executive. He has short-listed three candidates—Kenneth, Nora, and Lance—for the final round of interview. Seth is well aware that Lance has had performance problems in his previous job, but still favors him for this position. Which of the following is most similar to this situation?

A) Quest Inc., a mobile phone manufacturer, is losing market share. Austin, a senior marketing manager, consults a marketing research firm to identify the problem. The market research analysis report by the firm suggests that Quest lacks product innovation and after-sales support. Austin is aware that his research department needs improvement and his customer-service agents lack interpersonal skills, but forms his own team to conduct a market research again, because he does not like the research firm's report.

B) Roselyn, an HR executive working for a construction equipment manufacturing firm, has 300 applicants for a sales manager's opening in her firm. She needs to close this position by the end of the week and decides to eliminate any applicant with less than 5 years of sales experience. She is aware that she might miss out on good candidates if she takes this route, but is helpless due to time constraints.

C) Tender, a toy manufacturing firm, uses a traditional supply chain to market its products. It realizes that the sales of its products have dipped significantly in one of the areas of the city. Conducting marketing research reveals that its competitors deal directly with customers, which allows them to provide attractive offers to customers. Tender decides to pursue disintermediation, dealing directly with its customers, before its starts losing marketing share.

D) Leander favors Janis for the position of product manager because she has graduated from a highly reputed business school under full scholarship. Leander is aware that Janis does not have sufficient experience, but does not think that is important.

 

 

44) ________ is the tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results.

A) Altruism

B) Satisficing

C) Groupthink

D) Rational ignorance

 

 

 

 

45) The ________ focuses on the decision maker as a satisficer.

A) retrospective decision model

B) implicit favorite model

C) rational model

D) bounded rationality model

 

 

 

46) The ________ focuses on how decision makers attempt to rationalize their choices after they are made.

A) retrospective decision model

B) administrative model

C) rational model

D) bounded rationality model

 

 

 

47) The retrospective decision model is also known as the ________.

A) implicit favorite model

B) rational model

C) administrative model

D) bounded rationality model

 

 

48) ________ is an individual's tendency to highlight the positive features of their implicit favorite over the alternatives.

A) Rational ignorance

B) Selective perception

C) Cognitive complexity

D) Perceptual distortion

 

 

 

 

49) It is Christmas and Lora and her parents are shopping. Lora's attention is caught by a pair of Levi's jeans, which she immediately likes. Although there are several other brands available in the shelf and Levi's is comparatively expensive, Lora insists that Levi's jeans are better in quality and design. She manages to convince her parents that her choice is the best and buys the pair. This is an example of ________.

A) perceptive distortion

B) selective perception

C) cognitive complexity

D) uncertainty absorption

 

 

 

50) Which of the following statements is true about programmed decisions?

A) Top managers usually face these decisions.

B) They are made in response to problems that are either complex or novel.

C) These decisions are made when the nature of the problem is well-defined.

D) Past decisions are of little help while making these decisions.

 

 

 

51) Which of the following is an example of a programmed decision?

A) improving sales in an area that has until recently seen a dip in sales

B) analyzing the feasibility of starting a new subsidiary in a different country

C) creating rules and procedures to maintain a safe work environment

D) coming up with the best way to communicate with the target market

 

 

 

52) Which of the following statements is true about nonprogrammed decisions?

A) These decisions are made when the nature of the problem is well-defined.

B) Lower-level managers typically encounter these decisions.

C) These decisions are usually made through structured, bureaucratic techniques.

D) Past decisions are of little help while making these decisions.

 

 

53) Managers have a tendency to let their programmed activities overshadow their nonprogrammed activities because ________.

A) the outcomes of nonprogrammed decisions are more uncertain

B) the outcomes of programmed decisions are recognized and appreciated more by top management

C) the outcomes of nonprogrammed decisions are more predictable and routine

D) the outcomes of programmed decisions directly affect the employees of the organization

 

 

 

 

54) Clifton, a project manager, has to make a series of decisions, both simple and complex, by the end of the month. Which of the following suggests that Clifton has the tendency known as Gresham's law of planning?

A) Clifton gives priority to complicated problems, like planning a course of action to improve sales volumes in certain localities of the city and calculating the feasibility of opening new subsidiaries in other states. He then moves on to simpler problems, like creating the compensation systems for sales executives and the hiring process of the organization.

B) Clifton alternates between a simple and a complex problem. He solves a complex problem, like calculating the feasibility of opening subsidiaries in other states and then solves a simpler problem, like creating rules that would avoid cafeteria overcrowding. He follows this process till all his decisions are made.

C) Clifton starts the process by making easy decisions, like forming rules that would reduce accidents at workplaces and avoid cafeteria overcrowding. He then concentrates on the plan of action for complicated problems, like a sales dip in one of the areas of the city and the feasibility of opening subsidiaries in other states.

D) Clifton prioritizes complex problems, like planning a course of action to improve sales volumes in certain localities and calculating the feasibility of opening subsidiaries in other states. He believes that simpler problems can be escalated or passed down, but his expertise is required mostly on complex issues.

 

 

55) Which of the following statements is true about individual and group decision making?

A) When evaluating alternatives, group judgment is often superior to individual judgment.

B) When identifying alternatives, group efforts ensure that different and unique solutions are identified.

C) When choosing alternatives, individual effort often leads to greater acceptance of the final outcome.

D) When implementing a choice, group responsibility is generally superior to individual responsibility.

 

 

 

56) When ________ in the decision-making process, involving group members leads to greater acceptance of the final outcome.

A) identifying alternatives

B) choosing alternatives

C) implementing the choice

D) evaluating alternatives

 

 

 

57) Which of the following occurs when agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action?

A) escalation of commitment

B) cognitive dissonance

C) groupthink

D) perceptive distortion

 

 

 

58) ________ is a symptom of groupthink where group members often reassure themselves about obvious dangers, become overly optimistic, and are willing to take extraordinary risks.

A) Self-censorship

B) Illusion of invulnerability

C) Illusion of morality

D) Illusion of unanimity

 

 

59) Groups that fall prey to groupthink have a(n) ________, where they ignore the obvious ethical consequences of their decisions.

A) illusion of invulnerability

B) illusion of unanimity

C) illusion of morality

D) self-censorship

 

 

60) Groups suffering from groupthink tend to minimize the seriousness of the doubts members raise and put tremendous pressure on them to agree to the group's consensus. This symptom of groupthink is known as ________.

A) self-censorship

B) illusion of invulnerability

C) illusion of morality

D) illusion of unanimity

 

 

 

61) Groups suffering from groupthink assume that individuals who remain silent agree with them. This symptom of groupthink is known as ________.

A) illusion of invulnerability

B) illusion of unanimity

C) illusion of morality

D) self-censorship

 

 

62) Klint, a mobile manufacturer, has experienced a dip in sales in a particular area of the city. Boret, the marketing head, wants to address the problem in its embryonic stage before the trend continues in other areas. He feels that removing channel partners from the supply chain (disintermediation) would solve the problem. He conducts a group meeting with senior managers of his department to identify the problem and find a feasible solution. During the meeting, Boret starts off with the problem and suggests possible solutions, emphasizing disintermediation. All his other colleagues, though some of them are not convinced with disintermediation, are silent. Boret assumes that they agree with his decision. This symptom of groupthink is known as ________.

A) illusion of invulnerability

B) self-censorship

C) illusion of morality

D) illusion of unanimity

 

 

 

 

63) Victims of groupthink often appoint themselves as mindguards to ________.

A) minimize the seriousness of the doubts members raise and put tremendous pressure on them to agree to the group's consensus

B) stereotype leaders of opposition groups in harsh terms and refuse to listen to their opinions or negotiate with them

C) reassure themselves about obvious dangers, become overly optimistic, and be willing to take extraordinary risks

D) protect the leader and other members of the group from adverse information that could cause conflict over the correctness of a course of action

 

 

 

64) Which of the following consequences of groupthink is similar to retrospective decision making?

A) Groups ignore possible roadblocks to their choice and, as a result, fail to develop contingency plans.

B) Group members show interest in facts that support their preferred alternative and either ignore or disregard facts that fail to support it.

C) Group members spend little time considering nonobvious advantages to alternative courses of action.

D) Groups frequently fail to reexamine their chosen action after new information or events suggest they need a change in course.

 

 

65) Groupthink can be prevented by appointing a member to serve as the ________, a person whose role is to challenge the majority position.

A) dialectical inquiry

B) public defender

C) devil's advocate

D) scrivener

 

 

 

 

66) Leo coordinates group meetings. Which of the following actions would make him a devil's advocate?

A) Leo makes sure that the members of the group do not digress from the topic.

B) Leo focuses on providing relevant information to help group member make accurate decisions.

C) Leo's primary job is to see that opposing group members do not get personal or violent during discussions.

D) Leo focuses on challenging the decision that most of the group members agree on.

 

 

 

67) Which of the following occurs when decision makers adhere to a course of action after they know it is a mistake?

A) escalating commitment

B) rational ignorance

C) superrationality

D) satisficing

 

 

68) Which of the following is an example of escalating commitment?

A) Polie is good at making hand-stitched decorative items like curtains, cushions, and so on. She starts selling them and notices that the demand for her items is increasing in neighboring areas. She hires two helpers and trains them to create more items to match the increasing demand.

B) Loana starts her dream restaurant without any business experience. After six months, it becomes clear that her restaurant is not a successful venture. Loana continues to invest in the restaurant because she feels that she can turn it into a successful venture.

C) Orlando, a senior manager in a manufacturing firm, wants to eliminate channel partners from the selling process. As a trial, he eliminates channel partners of one area of the city to see if it has an impact. This action results in increased sales in the area. Orlando then eliminates channel partners of the entire city and expects similar results.

D) Beth is a highly motivated individual. Her motivation not only helps her productivity at work, but also motivates her colleagues to work better than they normally do.

 

 

 

69) Which of the following occurs when managers "throw good money after bad"?

A) satisficing

B) rational ignorance

C) escalating commitment

D) superrationality

 

 

70) ________ is a belief that future courses of action are rational and correct.

A) Cognitive complexity

B) Rosy retrospection

C) Prospective rationality

D) Cognitive dissonance

 

 

71) Individuals with ________ convince themselves that they can "pull victory out of the jaws of defeat."

A) cognitive complexity

B) superrationality

C) prospective rationality

D) cognitive dissonance

 

 

 

72) Which of the following defines a cross-functional team?

A) a group of people who prepare for and respond to any emergency incident

B) a self-organized semi-autonomous team whose members determine, plan, and manage their day-to-day activities and duties

C) a team consisting of people from the same department formed to solve a problem within the department

D) a work group composed of employees from different departments to work together on problem solving

 

 

73) Multiple advocacy is like the devil's advocate approach except that ________.

A) more than one opposing view is presented

B) disagreement in group decisions is minimum

C) multiple corporations are involved in decision making

D) disagreement in group decisions do not exist

 

 

 

74) Which of the following statements is true about multiple advocacy?

A) It is devil's advocacy when multiple corporations are involved.

B) Each group involved in making a decision is assigned the responsibility of representing the opinions of its constituents.

C) It occurs when a group or individual is assigned the role of questioning the underlying assumptions of problem formulation.

D) It forces group members to "think outside the box" and look at new ways to analyze the problem.

 

 

 

75) ________ occurs when a group or individual is assigned the role of questioning the underlying assumptions of problem formulation.

A) Devil's advocacy

B) Multiple advocacy

C) Dialectical inquiry

D) Brainstorming

 

 

 

 

76) Which of the following statements is true about dialectical inquiry?

A) It is like the devil's advocate approach except that more than one opposing view is presented.

B) It forces group members to "think outside the box" and look at new ways to analyze the problem.

C) Each group involved in making a decision is assigned the responsibility of representing the opinions of its constituents.

D) It is a frequently used mechanism to provide a maximum number of ideas in a short period of time.

 

 

 

77) Which of the following techniques is used to improve problem formulation?

A) brainstorming

B) nominal group technique

C) dialectical inquiry

D) Delphi technique

 

 

 

78) ________ is a process of generating many creative solutions but not immediately evaluating their merit.

A) Brainstorming

B) Delphi technique

C) Dialectical inquiry

D) Multiple advocacy

 

 

 

79) Which of the following statements is true about brainstorming?

A) It is like the devil's advocate approach except that more than one opposing view is presented.

B) It forces group members to "think outside the box" and look at new ways to analyze the problem.

C) Each group involved in making a decision is assigned the responsibility of representing the opinions of its constituents.

D) It is a frequently used mechanism to provide a maximum number of ideas in a short period of time.

 

 

80) The ________ allows the group to meet formally, but it does not allow members free discussion.

A) nominal group technique

B) multiple advocacy approach

C) Delphi technique

D) devil's advocacy approach

 

 

 

81) Which of the following statements is true about the nominal group technique?

A) It never allows decision-making participants to meet face-to-face.

B) In this technique, everyone independently considers the problem without other members of the group influencing them.

C) Each group involved in making a decision is assigned the responsibility of representing the opinions of its constituents.

D) It is like the devil's advocate approach except that more than one opposing view is presented.

 

 

 

 

82) The ________ never allows decision-making participants to meet face-to-face.

A) nominal group technique

B) Delphi technique

C) multiple advocacy approach

D) dialectical inquiry

 

 

83) Which of the following statements is true about the Delphi technique?

A) In this technique, a problem is identified and members are asked through a series of carefully designed questionnaires to provide potential solutions.

B) Each group involved in making a decision is assigned the responsibility of representing the opinions of its constituents.

C) It forces group members to "think outside the box" and look at new ways to analyze the problem.

D) In this technique, a group or individual is assigned the role of questioning the underlying assumptions of problem formulation.

 

 

 

84) Which of the following is a decision-making strategy that uses questionnaires?

A) devil's advocacy

B) Delphi technique

C) dialectical inquiry

D) nominal group technique

 

 

 

85) Which of the following techniques is used to improve the problem-solution process?

A) brainstorming

B) dialectical inquiry

C) devil's advocacy

D) multiple advocacy

 

 

86) List the steps of the rational model.

 

87) List the decision-making process according to the bounded rationality model.

 

88) What is perceptual distortion? Explain it with an example.

 

 

89) Differentiate between programmed and nonprogrammed decisions.

 

90) Describe Gresham's law of planning.

 

 

 

91) List the general factors that influence a decision's quality. How do they influence a decision's quality?

 

 

92) List and explain the symptoms of groupthink according to the psychologist Irving Janis.

 

 

93) Define escalation of commitment. How can its effects be minimized?

 

 

94) List and explain strategies to improve problem formulation.

 

 

95) List and explain strategies to improve the problem-solution process.