An explicit statement in the programmed decisions that tells managers what can or cannot be done.

 True/False Questions

THE DECISION-MAKING PROCESS

1.      A discrepancy between an existing and a desired state of affairs is an opportunity.

         (False; moderate; p. 134)

2.      The first step in the decision-making process is identifying a problem.

         (True; easy; p. 134)

3.      The final step in the decision-making process is implementing the chosen alternative.

         (False; moderate; p. 138)

4.      It is possible that at the end of the decision-making process you may be required to start the decision process over again.

         (True; easy; p. 138)

5.      A decision criterion defines what is relevant in a decision.

         (True; moderate; p. 136)

6.      The step in the decision-making process that involves choosing a best alternative is termed implementation.

         (False; moderate; p. 138)

THE MANAGER AS DECISION MAKER

7.      Decision making is synonymous with managing.

         (True; easy; p. 139)

8.      Managerial decision making is assumed to be rational.

         (True; moderate; p. 139)

9.      One assumption of rationality is that we cannot know all of the alternatives.

         (False; difficult; p. 139)

10.    Accepting solutions that are “good enough” is termed satisfying.

         (False; easy; p. 140)

11.    Managers tend to operate under assumptions of bounded rationality.

         (True; moderate; p. 140)

12.    Managers regularly use their intuition in decision making.

         (True; easy; p. 141)

13.    Rational analysis and intuitive decision making are complementary.

         (True; moderate; p. 141)

14.    A policy is an explicit statement that tells a manager what he or she ought or ought not to do.

         (False; moderate; p. 142)

15.    Programmed decisions tend to be repetitive and routine.

         (True; easy; p. 142)

16.    Rules and policies are basically the same.

         (False; moderate; p. 142)

17.    Nonprogrammed decisions are unique and nonrecurring.

         (True; moderate; p. 143)

18.    Most managerial decisions in the real world are fully nonprogrammed.

         (False; easy; p. 143)

19.    Organizational efficiency is facilitated by the use of programmed decision making.

         (True; moderate; p. 142)

20.    The ideal situation for making decisions is low risk.

         (False; moderate; p. 142)

21.    Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates.

         (False; difficult; p. 144)

22.    An optimistic manager will follow a maximin approach.

         (False; moderate; p. 146)

23.    People who have a low tolerance for ambiguity and are rational in their way of thinking are said to have a directive style.

         (True; moderate; p. 147)

24.    Decision makers with an analytic style have a much lower tolerance for ambiguity than do directive types.

         (False; moderate; p. 147)

25.    Individuals with a conceptual style tend to be very broad in their outlook and will look at many alternatives.

         (True; moderate; p. 147)

26.    Behavioral-style decision makers work well with others.

         (True; easy; p. 147)

27.    Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes.

(True; easy; p. 144)

MANAGING WORKFORCE DIVERSITY

28.    According to the boxed feature, “Managing Workforce Diversity,” diverse employees tend to make decisions faster than a homogeneous group of employees.

         (False; moderate; p. 149)

29.    Programmed decision making facilitates organizational efficiency.

         (True; moderate; p. 149)

Multiple-Choice Questions

For each of the following choose the answer that most completely answers the question.

THE DECISION-MAKING PROCESS

30.    Decision making is (simplistically) typically described as which of the following?

a.      deciding what is correct

b.      putting preferences on paper

c.      choosing among alternatives

d.      processing information to completion

         (c; moderate; p. 134)

31.    A series of eight steps that begins with identifying a problem and decision criteria and allocating weights to those criteria; moves to developing, analyzing, and selecting an alternative that can resolve the problem; implements the alternative; and concludes with evaluating the decision’s effectiveness is the ___________.

a.      decision-making process

b.      managerial process

c.      maximin style

d.      bounded rationality approach

         (a; easy; p. 134)

32.    A(n) ____________ is the existence of a discrepancy between existing and a desired state of affairs.

a.      opportunity

b.      solution

c.      weakness

d.      problem

         (d; easy; p. 134)

33.    The first step in the decision-making process is which of the following?

a.      developing decision criteria

b.      allocating weights to the criteria

c.      analyzing alternatives

d.      identifying a problem

         (d; moderate; p. 134)

34.    In identifying the problem, a manager _________________.

a.      compares the current state of affairs with where they want to be

b.      expects problems to be defined by neon lights

c.      looks for discrepancies that can be postponed

d.      will not act when there is pressure to make a decision

         (a; easy; p. 135)

35.    The process of selecting decision criteria is accomplished by ________________.

a.      massaging the data that will support a given decision

b.      flipping a coin to produce a 50-50 chance of being right

c.      determining what is relevant in making the decision

d.      examining the difference in the opportunities available

         (c; challenging; p. 136)

36.    Which of the following statements is true concerning problem identification?

a.      Problems are generally obvious.

b.      A symptom and a problem are basically the same.

c.      Well-trained managers generally agree on what is considered a problem.

d.      The problem must be such that it exerts some type of pressure on the manager to act.     

e.      To be considered a problem, managers must be aware of the discrepancy but not have the resources necessary to take action.

         (d; moderate; p. 134)

37.    If all criteria in the decision making are equal, weighting the criteria ______________.

a.      improves decision making when large numbers of criteria are involved

b.      is not needed

c.      produces excellent decisions

d.      improves the criteria

         (b; easy; p. 136)

38.    The final step in the decision-making process is to _______________.

a.      pick the criteria for the next decision

b.      reevaluate the weightings of the criteria until they indicate the correct outcome

c.      evaluate the outcome of the decision

d.      reassign the ratings on the criteria to find different outcomes

         (c; challenging; p. 138)

39.    Which of the following must be present in order to initiate the decision-making process?

a.      plenty of time

b.            pressure to act

c.             a lack of authority

d.      a lack of resources

         (b; moderate; p. 134)

40.    To determine the _____________, a manager must determine what is relevant or important to resolving the problem.

a.      geocentric behavior needed

b.      number of allowable alternatives

c.      weighting of decision criteria

d.      decision criteria

         (d; moderate; p. 136)

41.    Which of the following is the step in the decision-making process that follows identifying a problem and decision criteria?

a.             allocating weights to the criteria

b.                  analyzing the alternatives

c.      selecting the best alternative

d.      implementing the alternative

         (a; moderate; p. 136)

42.    In allocating weights to the decision criteria, which of the following is helpful to remember?

a.      All weights must be the same.

b.      The total of the weights should sum to 1.0.

c.      Every factor criterion considered, regardless of its importance, must receive some weighting.

d.      Assign the most important criterion a score, and then assign weights against that standard.          

         (d; difficult; p. 136)

43.    In Step 6 of the decision-making process, each alternative is evaluated by appraising it against the _____________.

a.      subjective goals of the decision maker

b.            criteria

c.      assessed values

d.      implementation strategy

         (b; moderate; p. 138)

44.    Selecting an alternative in the decision-making process is accomplished by __________________.

a.             choosing the alternative with the highest score

b       choosing the one you like best

c.      selecting the alternative that has the lowest price

d.      selecting the alternative that is the most reliable

         (a; easy; p. 138)

45.    ______________ includes conveying a decision to those affected and getting their commitment to it.

a.      selecting an alternative

b.      evaluation of decision effectiveness

c.      implementation of the alternatives

d.      analyzing alternatives

         (c; moderate; p. 138) 

46.    Which of the following is important in effectively implementing the chosen alternative in the decision-making process?

a.      getting upper-management support

b.      double-checking your analysis for potential errors

b.            allowing those impacted by the outcome to participate in the process

d.      ignoring criticism concerning your chosen alternative

         (c; moderate; p. 138)

47.    Which of the following is the final step in the decision-making process?

a.      identifying the problem

b.      evaluating the decision’s effectiveness

c.      identifying decision criteria

d.      selecting an alternative that can resolve the problem

         (b; easy; p. 138)

48.    Which of the following is important to remember in evaluating the effectiveness of the decision-making process?

a.      ignore criticism concerning the decision-making process

b.                  you may have to start the whole decision process over    

c.      Restart the decision-making process if the decision is less than 50 percent effective.

d.      Ninety percent of problems with decision making occur in the implementation step.

         (b; difficult; p. 138)

THE MANAGER AS DECISION MAKER

49.    Managers are assumed to be ______________; they make consistent, value-maximizing choices within specified constraints.

a.      rational

b.      leaders

c.      organized

d.      satisficers

         (a; easy; p. 139)

50.    It is assumed that a perfectly rational decision maker ______________.

a.      does not follow rational assumptions

b.      does not consider value maximizing as an objective

c.      offers inconsistent decisions

d.      would be objective and logical

         (d; moderate; p. 139)

51.    Rational managerial decision making assumes that decisions are made in the best ______________ interests of the organization.

a.      economic

b.      pay-off

c.      statistical

d.      budgetary

         (a; moderate; p. 139) 

52.    Managers can make rational decisions if ­­­­­­­­­­­­­­­_________________.

a.      the problem is simple

b.      the goals are clear

c.      the alternatives are limited

d.      all of the above

         (d; challenging; p. 140)

53.    Managers can make rational decisions if ______________.

a.      the costs of finding and evaluating alternatives is low

b.      the organizational culture does not encourage risk taking

c.      outcomes are concrete and measurable

d.      a and c

         (d; challenging; p. 140)

54.    Which of the following is not a valid assumption about rationality?

a.      the problem is clear and unambiguous.

b.      a single well-defined goal is to be achieved.

c.      preferences are clear.

d.      preferences are constantly changing.        

         (d; difficult; p. 140)

55.    In “bounded rationality,” managers construct ______________ models that extract the essential features from problems.

a.      multiple

b.      binding

c.      interactive

d.         simplified

         (d; difficult; p. 140)

56.    According to the textbook, because managers can’t possibly analyze all information on all alternatives, managers ______________, rather than ______________.

a.      maximize; satisfice

b.      maximize; minimize

c.      satisfice; minimize

d.            satisfice; maximize

         (d; moderate; p. 140)

57.    When managers circumvent the rational decision-making model and find ways to satisfice, they are following the concept of _________________.

a.      jurisprudence

b.      bounded rationality

c.      least-squared exemptions

d.      self-motivated decisions

         (b; moderate; p. 140)

58.    The type of decision making in which the solution is considered “good enough” is known as which of the following?

a.      intuition

b.      rationalization

c.      maximizing

d.         satisficing

         (d; moderate; p. 140)

59.    When a decision maker chooses an alternative under perfect rationality, she chooses a ______________ decision, whereas under bounded rationality she chooses a ______________ decision.

a.      minimizing; satisficing

b.      satisficing; maximizing

c.      maximizing; satisficing

d.      maximizing; minimizing

(c; difficult; p. 140)

60.    An increased commitment to a previous decision despite evidence that it may have been wrong, is referred to as _______________.

a.      economies of commitment

b.      escalation of commitment

c.      dimensional commitment

d.            expansion of commitment

         (b; moderate; p. 141)

61.    Managerial decisions are strongly influenced by ________________.

a.      the organization’s culture

b.      internal politics

c.      power considerations

d.      all of the above

         (d; easy; p. 141)

62.    Intuitive decision making is _______________.

a.      not utilized in organizations

b.      a conscious process based on accumulated judgment

c.      making decisions based on experience, feelings, and accumulated judgment

d.      important in supporting escalation of commitment

         (c; moderate; p. 141)

63.    In studying intuitive decision making, researcher have found that __________________.

a.      managers do not make decisions based on feelings or emotions

b.      managers use data from their subconscious mind to help make their decisions

c.      rational thinking always works better than intuitive

d.      accumulated experience does not support intuitive decisions

         (b; moderate; p. 141) 

64.    According to the textbook, all of the following are aspects of intuition except __________________.

a.      experienced-based decisions

b.      affect-initiated decisions

c.      cognitive-based decisions

d.      programmed decisions

         (d; easy; p. 141)

65.    According to the textbook, _____________ are straightforward, familiar, and easily defined problems.

a.      poorly structured problems

b.            structured problems

c.      unique problems

d.      nonprogrammed problems

         (b; moderate; p. 142)

66.    Structured problems align well with which type of decision making?

a.      programmed

b.      satisficing

c.      intuition

d.      gut feeling

         (a; moderate; p. 142)

67.    The most efficient way to handle structured problems is through ______________ decision making.

a.      linear

b.      unique

c.      focused

d.      programmed

         (d; moderate; p. 142)

68.    ______________ decision making is relatively simple and tends to rely heavily on previous solutions.

a.      Nonprogrammed

b.      Linear

c.      Satisficing

d.      Programmed

         (d; moderate; p. 142)

69.    Programmed decision making tends to rely on which of the following?

a.      the problem solver’s ability to think on his or her feet

b.      the development of a clear set of alternative solutions

c.      previous solutions

d.      identification of the actual problem

         (c; easy; p. 142)

70.    A procedure _______________.

a.      is an explicit statement detailing exactly how to deal with a decision

b.      is a series of interrelated sequential steps to respond to a structured problem

c.      is a set of guidelines that channel a manager’s thinking in dealing with a problem

d.      allows a manager to use broad decision-making authority

         (b; moderate; p. 142)

71.    A ______________ is an explicit statement that tells a manager what he or she can or cannot  do.

a.      procedure

b.      policy

c.      rule

d.      solution

         (c; moderate; p. 142)

72.    A policy ____________.

a.      typically contains an ambiguous term

b.      is used frequently when a manager faces a well-structured problem

c.      allows little discretion on the part of the manager

d.      offers strict rules as to how a problem should be solved

         (a; moderate; p. 142)

73.    Which of the following factors contrasts the difference between a policy and a rule?

a.      a policy establishes parameters     

b.      a rule establishes parameters

c.      a policy is more explicit

d.      a rule is more ambiguous

         (a; difficult; p. 142)

74.    According to the textbook, a ______________ typically contains an ambiguous term that leaves interpretation up to the decision maker.

a.      system

b.      rule

c.      solution

d.      policy

         (d; moderate; p. 142)

75.    A business school’s statement that it “strives for productive relationships with local organizations” is an example of a ________________.

a.      rule

b.            policy       

c       procedure

d.      commitment

         (b; moderate; p. 142)

76.    Poorly structured problems _____________.

a.      are easily solved

b.      present new or unusual circumstances

c.      force managers to deal with incomplete or ambiguous information

d.      b and c

         (d; moderate; p. 143)

77.    Nonprogrammed decisions are best described as ________________.

a.      recurring, but difficult to make

b.      very similar to problems in other areas of the organization

c.      requiring more aggressive action on the decision maker’s thought processes

d.      unique and nonrecurring

         (d; moderate; p. 143)

78.    When problems are ______________, managers must rely on ______________ in order to develop unique solutions.

a.      well structured; nonprogrammed decision making

b.      well structured; pure intuition

c.      poorly structured; nonprogrammed decision making

d.      poorly structured; programmed decision making

         (c; moderate; p. 143)

79.    Which of the following terms is associated with nonprogrammed decisions?

a.             unique

b       recurring

c.      routine

d.      repetitive

         (a; moderate; p. 143)

80.    Lower-level managers typically confront what type of decision making?

a.      unique

b.      nonroutine

c.      programmed

d.      nonprogrammed

         (c; moderate; p. 142)

Is an explicit statement that limits what a manager or employees can or Cannot do?

What is a programmed decision in management?

Is a situation in which a decision maker has neither certainty nor reasonable probability estimates available?

How do managers make programmed decisions?