British Columbia Institute of Technology

BUSA 1305

Chapter 7 Problem Analysis and Decision Making

1)___is a rational and analytical way of looking at decisions.

1. 1. The decision-making process
   2. The scientific method
   3. Logical analysis
   4. Design thinking
   5. A decision tree

2. Which of the following is NOT a step in the decision-making process?                               .
   1. Identify the problem
   2. Select the best alternative
   3. Implement the decision
   4. Develop objectives
   5. Follow up and evaluate

3.                                                     is the first step in the decision-making process.

1. 1. Develop objectives
   2. Identify the problem
   3. Evaluate the problem
   4. Aggregate information
   5. Conduct research

4.                                                          is a(n) discrepancy between an existing and a desired state of affairs.
   1. A problem
   2. A disconnect
   3. An opportunity
   4. A deviation
   5. A flaw

5. Once the problem has been identified, you need to gather the facts and information relevant to the problem while                                                      
   1. identifying solutions
   2. identifying the decision criteria.
   3. evaluating alternatives
   4. conducting research
   5. performing an analysis

6. After collecting relevant information, the second step in the decision-making process is

                                                            ,which considers those existing beyond the obvious or those that may have been used previously

1. 1. developing alternatives
   2. identifying the solutions
   3. creating action items
   4. considering relevant options
   5. identifying actionable solutions

7. On which of the following, does selection of the best alternative in the decision-making process depend?
   1. Commitment to the alternative
   2. The supervisor's ingenuity in developing alternatives

1. 3. Supervisor's ingenuity in developing alternatives
   4. Quality of analysis
   5. Volume of alternatives presented

8. Step 6 involves putting the decision into action. If others will be affected by the decision, implementation also includes                                          and getting commitment.

1. 1. assigning responsibilities
   2. determining success potential
   3. conveying the decision to those affected
   4. considering possible deadlines
   5. centralizing authority

9. Supervisors may face three conditions as they make a decision:
   1. certainty, risk, and uncertainty.
   2. certainty, risk, and potential reward
   3. certainty, uncertainty, and solution
   4. risk, uncertainty, and reward
   5. certainty, risk, and de-risk alternatives

10. The last phase of the decision-making process is follow-up and evaluation. Briefly describe some items supervisors should consider at this phase.

11.                                                 permits decision makers to place a monetary value on the various consequences likely to result from the selection of a particular course of action.
    1. Analysis of variance
    2. Regression analysis

1. 3. Expected value analysis
   4. Financial analysis
   5. Decision trees

12. What method is a useful way to analyze hiring, marketing, investment, equipment purchase, pricing, and similar decisions that involve a progression of decisions?
    1. Analysis of variance
    2. Regression analysis
    3. Expected value analysis
    4. Marginal analysis
    5. Decision trees

13. What method deals with the additional cost in a particular decision, rather than the average cost?
    1. Analysis of variance
    2. Regression analysis
    3. Expected value analysis
    4. Marginal analysis
    5. Decision trees

14. The concept of marginal or incremental analysis helps decision makers to                                 .
    1. optimize returns or minimize costs
    2. determine global competition
    3. analyze marketing cost
    4. protect government expenditures
    5. establish accounting procedures

15. Briefly discuss the three conditions of decision-making, which include certainty, risk, and uncertainty.

16. Of the following, which is NOT one of the four decision styles?
    1. Directive
    2. Behavioral
    3. Empathetic
    4. Analytic
    5. Conceptual

17. People using the                                                    style have low tolerance for ambiguity and seek rationality.
    1. Directive
    2. Behavioral
    3. Empathetic
    4. Analytic
    5. Conceptual

18. Which of the following styles is characterized by efficiency and logic?
    1. Directive
    2. Behavioral
    3. Empathetic
    4. Analytic
    5. Conceptual

19.                  types have a greater tolerance for ambiguity, desire more information, and will consider more alternatives.
    1. Directive
    2. Behavioral
    3. Empathetic
    4. Analytic
    5. Conceptual

20. Individuals with a                                             style have a broad outlook and consider many alternatives.
    1. Directive
    2. Behavioral
    3. Empathetic
    4. Analytic
    5. Conceptual

21.                  supervisors are characterized as careful decision makers with the ability to adapt or cope with new situations.
    1. Directive
    2. Behavioral
    3. Empathetic
    4. Analytic
    5. Conceptual

22. Decision makers with the                                  style work well with others and are concerned with the achievement of their employees.
    1. directive
    2. behavioral
    3. empathetic
    4. analytic
    5. conceptual

23. There are four decision-making styles. Why is it helpful to understand all four styles?

24. The tendency for supervisors to base judgments on readily obtainable information is known as

                                                                   .

1. 1. representative heuristic
   2. availability heuristic
   3. escalation of commitment
   4. prejudgment
   5. premature decision-making

25. Which of the following helps explain why when conducting performance appraisals, supervisors tend to give more weight to more recent behaviors of an employee than behaviors of six or nine months ago?
    1. Retrospective heuristic
    2. Retrospective behavior
    3. Availability heuristic
    4. Representative heuristic
    5. Escalation of commitment

26. Which of the following tendencies causes individuals to match the likelihood of an occurrence with something that has familiarity?
    1. Retrospective heuristic
    2. Retrospective behavior
    3. Availability heuristic
    4. Representative heuristic
    5. Escalation of commitment

27. When young football players may think about someone from their local league who went on to play in the NFL fifteen years ago, this is an example of which tendency?
    1. Retrospective heuristic
    2. Retrospective behavior
    3. Availability heuristic
    4. Representative heuristic

1. 5. Escalation of commitment

28. The                                                       represents the tendency to “stay the course,” despite negative data that suggest one should do otherwise.
    1. retrospective heuristic
    2. retrospective behavior
    3. availability heuristic
    4. representative heuristic
    5. escalation of commitment

29. The                                         describes when decision makers fixate on initial information as a starting point and then fail to adjust for subsequent information.
    1. anchoring effect
    2. overconfidence bias
    3. framing bias
    4. hindsight effect
    5. randomness bias

30. Briefly discuss how can supervisors avoid the negative effects of decision errors and biases?

31. The                                               of a problem a supervisor faces in a decision-making situation often determines how the problem is treated

.A. type

2. complexity
3. magnitude
4. characteristics
5. simplicity

32. An example of a                                                             problem might include a supplier’s being late with an important delivery or a customer wanting to return a mail-order purchase.
    1. ill-structured
    2. simple
    3. complex
    4. well-structured
    5. ambiguous

33. Problems that are straight forward, the goal clear, familiar, and easily defined is a(n)

                                                                           .

1. 1. ill-structured
   2. simple
   3. complex
   4. well-structured
   5. ambiguous

34. Problems that are new or unusual or in which information is ambiguous or incomplete are known as

                                            problems.

1. 1. ill-structured
   2. simple
   3. complex
   4. well-structured
   5. ambiguous

35. The decision on whether to restructure the department or to invest in and implement new, unproven technology are examples of                                              problems.
    1. ill-structured
    2. simple
    3. complex

1. 4. well-structured
   5. ambiguous

36. Programmed, or routine, decision-making is the most efficient way to handle

                                                   problems.

1. 1. ill-structured
   2. simple
   3. complex
   4. well-structured
   5. ambiguous

37. Decisions are programmed to the extent that they are                                               , and to the extent that a definite approach has been worked out for handling them.
    1. unique but routine
    2. repetitive and routine
    3. rare and non-routine
    4. non-repetitive and non-routine
    5. non-repetitive and routine

38. In which situation is the “develop-the-alternatives” stage in the decision-making process either nonexistent or given little attention?
    1. Non-programmed decisions
    2. Repetitive decisions
    3. Complex decisions
    4. Programmed decisions
    5. Simple decisions

39.                                                 are decisions that are unique and non-recurring.

1. 1. Non-programmed decisions
   2. Repetitive decisions
   3. Complex decisions
   4. Programmed decisions
   5. Simple decisions

40. Explain why setting strategy in the organization is an example of a non-programmed decision.

41. There are advantages of group decision-making. Of the following, which is NOT one of those advantages??
    1. Provides more complete information.
    2. Generates more alternatives.
    3. Pressure to conform
    4. Increases acceptance of a solution.
    5. Increases legitimacy.

42. There are disadvantages of group decision-making. Of the following, which is NOT one of those disadvantages?
    1. Time-consuming.
    2. Pressure to conform.
    3. Ambiguous responsibility.
    4. Minority domination
    5. Too many alternatives generated

44. Explain the statement: The evidence indicates that, on average, groups make more accurate decisions than individuals. Is this statement always accurate? If not, what are the exception(s)?

45.                                                     is a simple technique for overcoming pressures for conformity that retard the development of creative alternatives.
    1. The nominal group technique
    2. Groupthink
    3. Electronic meetings
    4. Brainstorming
    5. the Delphi technique

46. One important suggestion for making better decisions is to tap into the                                        and drawing on diverse employees can prove valuable to a supervisor’s decision making.
    1. gender differences of the workgroup
    2. diversity of the workgroup
    3. educational differences of the workgroup
    4. sex and gender differences of the workgroup
    5. economic differences of the workgroup

47. Diversity as part of decision-making can have advantages. Of the following, which is NOT one of those advantages of drawing from diverse workgroups?
    1. Fresh perspectives on issues
    2. Differing interpretations on how a problem is defined
    3. More creative in generating alternatives
    4. Tendency to agree with supervisor’s position
    5. Likelihood that creative and unique solutions will be generated

48. Even though diversity in decision-making can be valuable, there are drawbacks. Of the following, which does NOT represent one of the drawbacks?
    1. More time is spent discussing the issues.
    2. Language barriers make communication difficult
    3. Different perspectives on problems and solutions
    4. Discomfort being closely involved in decision making
    5. Likelihood that creative and unique solutions will be generated

49. Design thinking has been described as “                                                        as designers approach design problems.”
    1. approaching manufacturing issues
    2. approaching management problems
    3. solving innovation problems
    4. creating new solutions
    5. solving R&D issues

50. Big data is a term for a collection of data sets so large and complex that it becomes difficult to process using        .
    1. non-traditional data processing applications
    2. supercomputers
    3. artificial intelligence
    4. traditional data processing applications.
    5. cloud computing

51. Explain how “design thinking” can benefit supervisors and organizations. How does it help make more effective decisions?

52. Profiting on a stock tip through insider information is an example of which rationalization viewpoint?
    1. “It’s in my (or the organization’s) best interest.”
    2. “No one will find out.”
    3. “I deserve it.”
    4. “It’s not really illegal or immoral.”
    5. “Because it helps the organization, the organization will condone it and protect me.”

53. Falsifying financial records if this improves the supervisor’s unit’s performance record is an example of which rationalization viewpoint?
    1. “It’s in my (or the organization’s) best interest.”
    2. “No one will find out.”
    3. “I deserve it.”
    4. “It’s not really illegal or immoral.”
    5. “Because it helps the organization, the organization will condone it and protect me.”

54. The allocation of big salary increases while ignoring the means by which results are achieved is an example of which rationalization viewpoint?
    1. “It’s in my (or the organization’s) best interest.”
    2. “No one will find out.”
    3. “I deserve it.”
    4. “It’s not really illegal or immoral.”
    5. “Because it helps the organization, the organization will condone it and protect me.

55. When a supervisor puts the organization above the law, common morality, or society itself this is an of which rationalization viewpoint?
    1. “It’s in my (or the organization’s) best interest.”
    2. “No one will find out.”
    3. “I deserve it.”
    4. “It’s not really illegal or immoral.”
    5. “Because it helps the organization, the organization will condone it and protect me.”

56. The                                                   is the a view in which decisions are made solely on the basis of their outcomes or consequences.
    1. justice

1. 2. rights
   3. management
   4. utilitarian
   5. intuitive

56. A view that calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights is the                                                                              .
    1. justice
    2. rights
    3. management
    4. utilitarian
    5. intuitive

58.                                                  is a view that requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs.
    1. justice
    2. rights
    3. management
    4. utilitarian
    5. intuitive