California State University, Northridge

MGT 360

Organizational Behavior, Version 1.1

Bauer & Erdogan

FWK Test Item File

Chapter 11

TRUE/FALSE

1)All decisions have major consequences and require much thought.

2. Decision making requires action as a solution.

3. Programmed decisions are unique, creative decisions.

4. A decision rule is an automated response to a problem or issue that occurs frequently.

5. An example of a nonprogrammed decision is deciding whether to merge with another firm.

6. Strategic decisions are usually made by middle level managers.

7. Tactical decisions are those concerned with how things get done.

8. The rational decision-making model limits the number of alternatives considered.

9. The first step of both the rational decision-making model and the creative decision-making process is to identify the problem.

10. The most difficult step of the rational decision-making process is to establish the decision criteria.

11. Analysis paralysis is when more and more time is spent on gathering information and thinking about it, but no decisions are made.

12. People are always interested in making an optimal decision.

13. To satisfice is to accept the first alternative that meets minimum criteria.

14. In the intuitive decision-making process, only one choice is considered at a time.

15. Innovation and creativity are the same thing.

16. Immersion is to conscious thought as incubation is to unconscious thought.

17. The three factors that evaluate the level of creativity in the decision-making process are fluency, flexibility, and originality.

18. Creativity is the interaction between personality traits, attributes, and serendipity.

19. While setting high idea quotas appears to logically maximize the effectiveness of brainstorming, in reality it has just the opposite effect.

20. Wildstorming is a process where the group focuses on ideas that are impossible and then tries to imagine what would need to happen to make them possible.

21. The intuitive decision-making model is best used when the decision maker has experience with the problem and there is time pressure.

22. The rational decision-making process is best used when the decision is important and you are trying to maximize outcomes.

23. Hindsight bias is the opposite of framing bias.

24. Given research on anchoring bias, individuals are more likely to focus on “60% of all people taking the test pass”, rather than “40% of all people taking the test fail.”

25. Escalation of commitment is also known as “sunken cost fallacy.”

26. One way to avoid escalation of commitment is to have identifiable turning back points.

27. Group decisions tend to be more creative than individual ones, but they are often not more effective than those made by individuals.

28. Groupthink is one of the reasons cited for the tragedy of the Challenger space shuttle.

29. Group decisions regularly outperform the decision of the group’s best member.

30. Individual decision making produces a greater commitment to the ultimate decision than does group decision making.

31. Groupthink is characterized by symptoms like questioning the morality of the group.

32. Having a devil’s advocate in meetings is a technique that can help avoid groupthink.

33. The nominal group technique involves using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

34. Research shows that consensus decision making is less accurate and can even make group members feel less satisfied with a decision.

35. Group decision support systems could make employees more reluctant to share information due to lack of control.

36. Decision trees are helpful in avoiding errors such as overconfidence bias.

37. Unethical decisions in bank lending is likely one of the causes of the current economic crisis in the United States.

38. One basic question to ask to ascertain the ethics of a decision is: “How would I feel if this decision was broadcast on the news?”

39. American managers tend to value quick decision making while Chinese managers favor more reflective decision making.

40. Ingar Skaug, CEO of Wilhelmsen Lines, empowered his employees to make their own decisions when he assumed his position at the global maritime company.

FILL IN THE BLANK

41.                                                    is making choices among alternative courses of action including inaction.

42.                             decisions occur frequently and have automated responses developed for them, while                 decisions are unique and require conscious thinking, information gathering and careful alternative generation.

43. Automated responses that we use to make decisions are called                                     

                        .

44.                                decisions set the course for an organization and are made by CEOs, while                                        decisions are those that make the organization run and are made daily by employees.

45. “How should we market the new product line?” is an example of a                                                 

decision made by managers.

46. When a decision is important and outcomes need to be maximized, use the

                            to make your decision.

47. The                                                                                                recognizes the limitations of the decision-making process and thus the tendency of individuals to satisfice in their decisions.

48. When time pressures arise, as when a life or death situation occurs, and an individual has expertise in the area, the                                                                                                                                         

                            is often used to make decisions.

49. The generation of new, imaginative ideas is                                              .

50. The phase of the creative decision-making process where the individual sets the problem aside and does not consciously think about it for a while is the

                                            phase.

51. The insightful or “eureka” moment in the creative decision-making process is the

                               phase.

52. In assessing the level of creativity in the decision-making process,                             is the number of ideas a person is able to generate.

53.                                                is how different ideas generate in the creative decision- making process are from one another.

54. The uniqueness of ideas generated during the creative decision-making process is      .

55. Some experts suggest that creativity is the interaction among the three factors of

                                         ,                                             , and                                              .

56. Ideas for enhancing organizational creativity focus on team composition, team process,            and                                           .

57. The group process of generating ideas that follow a set of guidelines including no criticism of ideas during the process, the notion that no idea is too crazy, and that builds on other ideas is         .

58. Since research suggests that the quantity of ideas leads to better quality ideas in the end, setting                                                                                                  where the group must reach a set number of ideas before they are done brainstorming is a recommended practice.

59.                                           is a variation on brainstorming where the group focuses on ideas that are impossible and then imagines what would need to happen to make them possible.

60. A decision-making trap where people overestimate their ability to predict future events is called                                                                           .                           .

61. When you say, “I know I should have taken this car in for service when I first heard the noises, and now it’s just quit on me,” you are exhibiting the decision- making trap,                              .

62. Maria relied on knowing what an outstanding worker Gordon was to hire Gordon’s sister for the entry-level position. Gordon’s sister is very unreliable. Maria fell into the decision-making trap of    in making her hiring decision.

63. The tendency for people to focus on television ads that say, “Medicine X is 60% effective in reducing symptoms” does not look at the fact that that statement means that “Medicine X fails to reduce those symptoms 40% of the time.” This tendency is called                       .

64. The old adage, “Don’t throw good money after bad” is another way to describe the decision-making trap of                                                                                                                                      also known as the “sunken costs fallacy.”

65. Research suggests that                                                  decision making offers fewer ideas than

                       decision making.

66.                                is the group pressure phenomenon that increases the risk of the group making flawed decisions by leading to a reduction in mental efficiency, reality testing, and moral judgment.

67. One of the symptoms of                          is the illusion of invulnerability that is shared by all group members and creates excessive optimism and encourages them to take extreme risks.

68. The                                                                                     is a tool designed to help group decision making by ensuring that all members participate fully.

69. The                                                     is a group process using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

70. When the goal is to gain support for a particular idea or plan of action, the

                    form of decision should be used as it is inclusive, participatory, cooperative and democratic in nature.

71. An interactive computer-based system that combines communication and decision technologies to help groups make better decisions is a                                                                                

                                                                                                    .

72. A                                                                   is a diagram where answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree.

73. In Japan, nemawashi refers to building                                                 within a group before a decision is made.

SHORT ANSWERS

74. What is the difference between a programmed and an unprogrammed decision? Given an example of each.

75. Give an example of a strategic decision and indicate who usually makes it.

76. Give an example of a tactical decision and indicate who makes it.

77. Give an example of an operational decision and indicate who makes it.

78. Compare the rational decision-making and the bounded rationality model.

79. Differentiate between the intuitive and creative decision-making processes.

80. What are the three factors that are used to evaluate the level of creativity in the decision-making process?

81. Describe two decision-making traps and how to avoid them.

82. Do groups make better decisions than individuals?

83. What are two symptoms of groupthink?

84. Describe the steps in the nominal group technique.

85. What is the difference between majority rule and consensus?

86. Explain how group decision support systems can become counterproductive.

87. What are two basic questions that can be asked to assess the ethics of a decision?

88. Briefly describe how decision making differs around the globe.

ESSAY

89. Using the rational decision-making model as a template, discuss a recent decision you made.

90. Darlene is a new manager at XYZ Corporation. She is most interested in enhancing the creativity of her department. What recommendations would you suggest to her?

91. You work for a company that was a sub-contractor for the Challenger space shuttle. Cognizant of the groupthink that made the fateful launch decision, you want to ensure that such a condition does not exist in your firm. The company executives have decided that a seminar is necessary to define groupthink, its causes, and provide recommendations do avoid it in the future. You are in charge of that seminar.

92. Ron is the owner of a small business. He is deciding whether to expand his operation to a second location or remain only at his original site. He decides to perform a “premortem” on the project and has asked your assistance in making sure he covers all appropriate steps in the process. What recommendations would you provide him?