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Chapter 7

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Jul 12th, 2023
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question
Level of Difficulty: 2 MediumTopic: Group Decision Making: How to Work with Others64. Which of the following statements about biased decision making is true?A. Hindsight helps you correctly assess what you should have known beforehand.B.When you are making a decision and you have considerable experience in that area, you are thenmost likely to be overconfident.C.When confronted with a choice, people with strong prior beliefs tend to make their decisions basedon their beliefs even if their beliefs are false.D. Sometimes a single event can allow you to determine the trend.E.You could confidently make a decision about something by asking 20 of your friends and decidingbased on their preferences.
answer
C.When confronted with a choice, people with strong prior beliefs tend to make their decisions basedon their beliefs even if their beliefs are fals
question
65. Which of the following is a step in the rational decision-making model?A. Seek consensus among leadership.B. Identify the problem or opportunity.C. Improve the chosen solution.D. Test solutions on a small scale.E. Implement a holding pattern.
answer
B. Identify the problem or opportunity.
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66. The rational model of decision making is also called the ______ model.A. balancedB. satisficingC. incrementalD. classicalE. intuitional
answer
D. classical
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67. Diagnosis is used in which stage of the rational decision-making model?A. Identify the problem or opportunityB. Think up alternative solutionsC. Evaluate alternativesD. Select a solutionE. Implement a solution
answer
A. Identify the problem or opportunity
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68. Which of the following is true about women investors?A. They tend to trade more often than men.B. They do less research before investing than men.C. Their portfolios have a higher average gain than men's.D. They are increasingly being drawn to careers in finance.E. They tend to chase hot tips.
answer
C. Their portfolios have a higher average gain than men's.
question
69. When evaluating a solution in decision making, answering yes to which of the following questionsshould cause you to reconsider choosing it?A. Is there enough time?B. Are the costs reasonable?C. Is it ethical?D. Is the technology available?E. Do you consider it merely good enough?
answer
E. Do you consider it merely good enough?
question
70. In the final stage of the rational model of decision making, you shouldA. provide justification for the choice.B. select a solution.C. seek high-level support.D. evaluate the results.E. identify the winners and losers.
answer
D. evaluate the results.
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71. Which of the following is NOT a recommended option when you discover that an action is notworking after a decision?A. Give the chosen solution more time.B. Abandon the solution in favor of the status quo.C. Try another alternative.D. Go back to the beginning of the decision-making process.E. Change the chosen solution slightly.
answer
B. Abandon the solution in favor of the status quo.
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72. Which of the following is an assumption upon which the rational model of decision making rests?A. Decision makers can logically evaluate the alternatives.B. Consequences of any actions cannot be known.C. Decision makers typically have emotional blind spots.D. A decision maker will choose the option that is most ethical.E. Decision makers are unable to process all of the available information.
answer
A. Decision makers can logically evaluate the alternatives.
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73. Which of the following is one of the nonrational models of decision making?A. BoundaryB. ClassicalC. Goal displacementD. SatisficingE. Attitudinal
answer
D. Satisficing
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74. The concept of bounded rationality is most closely related to the _________ model of decisionmaking.A. classicalB. rationalC. satisficingD. incrementalE. intuition
answer
C. satisficing
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75. Nicole and other managers in her firm have some ties to Europe and are investigating opportunities forglobal expansion. They are struggling to understand the risks, given the complexity of world marketstoday and recent global instabilities. The difficulty Nicole's team is facing prevents perfectly rationaldecision making, and is an example ofA. risk aversion.B. bounded rationality.C. groupthink.D. defensive avoidance.E. anchoring and adjustment.
answer
B. bounded rationality.
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76. Alexis manages a clothing store in the mall. They were understaffed, and she thought she would haveto work all day and help close the store that evening until a young man came in for an applicationaround noon. Alexis told him he could have the job if he could come back at 4 p.m. to begin work.Here, Alexis was engaged inA. relaxed avoidance.B. confirmation bias.C. satisficing.D. heuristics.E. analytics.
answer
C. satisficing.
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77. Which of the following is NOT a hindrance to perfectly rational decision making?A. Conflicting goalsB. Imperfect informationC. Information overloadD. Limited cognitive capacityE. Lack of intuition
answer
E. Lack of intuition
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78. The incremental model of decision making suggests that managers make decisions byA. using processes that have worked in past experience.B. experimenting with alternatives in a controlled setting, one by one.C. choosing something that is good enough.D. taking small steps to alleviate a problem.E. involving several lower-level employees.
answer
D. taking small steps to alleviate a problem.
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79. Jerome's accounts payable department is behind schedule as the month-end close is approaching. Thishas been happening every month, but he hasn't found time to provide additional training. Instead heasks all of his employees to work eight hours of overtime that week and reassigns some tasks. This isan example of using the ________ model.A. rationalB. predictiveC. intuitionD. incrementalE. coalition
answer
D. incremental
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80. Jenna manages a retail store and she has been noticing long lines at checkout lately. She is unsureabout increasing staffing levels right now, so she chooses to reconfigure the physical orientation of thecheckout space to alleviate the problem for the time being. Jenna is using the ________ model.A. incrementalB. coalitionC. rationalD. predictiveE. intuition
answer
A. incremental
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81. Making a choice without the use of conscious thought or logical interference is calledA. reactive decision.B. irrational insight.C. intuition.D. instinctual choice.E. heuristics.
answer
C. intuition.
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82. Which of the following is an implementation principle for evidence-based management described byPfeffer and Sutton?A. See yourself as outsiders do.B. If all else fails, speed the spread of good practices.C. Reserve evidence-based management for top executives.D. Treat your organization as a trophy.E. Understand what happens when people succeed.
answer
A. See yourself as outsiders do
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83. Which of the following is NOT a reason why it is hard to bring the best evidence to bear on yourdecisions?A. Stories are more persuasive than evidence.B. People are trying to mislead you.C. The evidence leads to an unethical solution.D. The evidence doesn't quite apply.E. There's too much evidence.
answer
C. The evidence leads to an unethical solution.
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84. Redbox uses the large amount of data that it collects at its video and game rental kiosks to determineways to improve customer retention and to encourage multiple rentals at the same time. The chain isusingA. quantitative decision making.B. data correlation.C. heuristics.D. business analytics.E. the Delphi technique.
answer
D. business analytics.
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85. Which of the following is characteristic of companies that use analytics?A. Use of predictive modelingB. Having a single, focused application for its useC. Information overloadD. Use of competitive intelligenceE. Making decisions intuitively
answer
A. Use of predictive modeling
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86. The stores of data so vast that conventional database management systems cannot handle them andwhich instead require very sophisticated analysis software and supercomputing-level hardware areknown asA. big data.B. heuristics.C. information escalation.D. incremental diagnostics.E. boundless resources.
answer
A. big data.
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87. Amanda was asked by her boss to create a handbook for new hires because several employees hadrecently complained, saying they felt lost when they first started because procedures didn't seem to beformalized. Amanda herself had not felt that way, perhaps because she has aA. high tolerance for ambiguity.B. value orientation focused on people.C. conceptual decision style.D. high propensity for risk.E. low value orientation.
answer
A. high tolerance for ambiguity.
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88. A person with high tolerance for ambiguity hasA. a high need for structure or control.B. a strong people orientation.C. an analytical mind.D. defensive avoidance tendencies.E. comfort with uncertain situations.
answer
E. comfort with uncertain situations.
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89. Which of the following is a decision-making style based on the dimensions of value orientation andtolerance for ambiguity?A. professionalB. personalC. technologicalD. behavioralE. mechanical
answer
D. behavioral
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90. An analytical decision-making style reflects a person who is ______ in his value orientation and______ in his tolerance for ambiguity.A. task/technical; highB. task/technical; lowC. people/social; highD. people/social; lowE. managerial; low
answer
A. task/technical; high
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91. A person with a conceptual decision-making style is __________ in her value orientation and__________ in her tolerance for ambiguity.A. managerial; highB. task/technical; lowC. people/social; highD. people/social; lowE. managerial; low
answer
C. people/social; high
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92. A person who is oriented toward people and social concerns and has a low tolerance for ambiguity is______ in her decision-making style.A. analyticalB. relaxedC. conceptualD. directiveE. behavioral
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E. behavioral
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93. A person who is oriented toward task and technical concerns and has a low tolerance for ambiguity is______ in his decision-making style.A. analyticalB. behavioralC. conceptualD. directiveE. heuristic
answer
D. directive
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94. Ryan is an efficient manager who is very good at meeting his deadlines and quite decisive. Still, hisemployees find him to be too controlling at times and unable to see the long-term consequences of hisactions. Ryan is most likely ______ in his decision-making style.A. analyticalB. autocraticC. behavioralD. conceptualE. directive
answer
E. directive
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95. Charlie has a reputation for being slow to reach a final decision but being able to decide a reasonedcourse of action regardless of the uncertainty. He is very thorough in collecting information andevaluating more alternatives than other managers are. Charlie is most likely ______ in his decisionmakingstyle.A. analyticalB. behavioralC. conceptualD. directiveE. relaxed
answer
A. analytical
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96. Karl is very creative and prefers to look at the long-term issues when making a decision. He considersa wide variety of possible actions based on an open mind about the possibilities. Sometimes hiscoworkers find him indecisive because of these tendencies. Karl is probably ______ in his decisionmakingstyle.A. analyticalB. behavioralC. conceptualD. directiveE. relaxed
answer
C. conceptual
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97. Savannah is a warm and likeable manager who is extremely supportive of her employees, but shesometimes doesn't say no when she needs to and is somewhat passive in enforcing her decisions. Herdecision-making style is most likelyA. analytical.B. heuristic.C. behavioral.D. conceptual.E. directive.
answer
C. behavioral
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98. Scott has received training in resolving ethical dilemmas and currently oversees the development of anethical code for his workplace. Scott is a(n)A. member of the principles board.B. morality team member.C. social responsibility chief.D. ethics officer.E. chief executive officer.
answer
D. ethics officer.
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99. A graph of decisions and their possible consequences is known as a(n)A. decision tree.B. Gantt chart.C. results chart.D. outcome matrix.E. fishbone diagram.
answer
A. decision tree
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100. According to Harvard professor Constance Bagley, ethical decisions can be facilitated with a(n)A. goal statement.B. improved legal department.C. cross-department task force.D. decision tree.E. brainstorming session.
answer
D. decision tree.
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101. Which of the following questions about a proposed action is NOT a key question in Bagley's ethicaldecision tree?A. Is it legal?B. Does it maximize shareholder value?C. Is it ethical?D. Would it be ethical not to do it?E. Should the effect of it be disclosed to shareholders?
answer
E. Should the effect of it be disclosed to shareholders?
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102. It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing toanother country where costs are somewhat higher but workplace standards are more tightly controlled.In using Bagley's ethical decision tree, you determine it would be unethical NOT to relocate, so youshouldA. relocate the facility, but don't tell shareholders about potentially smaller profits.B. warn the manufacturer that you will relocate should a violation occur again.C. continue to use the facility, despite your objections, because this will maximize shareholder value.D. relocate the facility, and tell the shareholders how this will affect their returns.E. continue to use the facility, because it is benefitting your company, and all workers, even underageones.
answer
D. relocate the facility, and tell the shareholders how this will affect their returns.
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103. When a manager decides to take no action in the belief that there will be no great negativeconsequences, she is engaged inA. limited reaction.B. relaxed avoidance.C. relaxed change.D. decreased involvement.E. defensive avoidance.
answer
B. relaxed avoidance.
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104. Carla heard from a client that a product similar to a popular one at her retail store was now atWalmart, imported from China, and costing just over half of her sales price. But Carla isn't reallyworried because she believes in her customers' loyalty, so she has no plans to make changes. Carla ispracticingA. relaxed change.B. defensive avoidance.C. postponed action.D. relaxed avoidance.E. delayed decision.
answer
D. relaxed avoidance.
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105. Which of the following responses to a challenge would be considered most like satisficing?A. PanicB. Relaxed avoidanceC. Relaxed changeD. Decreased involvementE. Defensive avoidance
answer
C. Relaxed change
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106. When a manager realizes that complete inaction will have negative consequences but opts for the firstavailable alternative that involves low risk, it is calledA. relaxed change.B. defensive avoidance.C. postponed action.D. relaxed avoidance.E. delayed decision.
answer
A. relaxed change.
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107. Passing the buck or procrastinating about a decision are examples of which type of reaction to achallenge?A. PanicB. Relaxed avoidanceC. Relaxed changeD. Decreased involvementE. Defensive avoidance
answer
E. Defensive avoidance
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108. Erik has been putting off a decision about firing several workers who have been ignoring safetyregulations on the factory floor. After all, he thinks, his boss will eventually notice and take action.Erik is experiencing a(n) ______ reaction.A. relaxed changeB. relaxed avoidanceC. defensive avoidanceD. unresponsiveE. delayed change
answer
C. defensive avoidance
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109. Robin is very worried about potentially having to lay off several of her staff. She can't sleep well, herstomach is bothering her, and she snaps at her employees. She doesn't know what to do but won't talkwith anyone about it. Robin is experiencing a ______ reaction to a challenge.A. relaxed changeB. defensive avoidanceC. panicD. deciding to decideE. heuristic
answer
C. panic
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110. In deciding to decide about a problem or opportunity, a manager should evaluate the importance of thesituation, the credibility of the information, andA. the equitability of the outcomes.B. the availability of heuristics.C. the urgency of the situation.D. the cost of the solution.E. the ethics of making no change.
answer
C. the urgency of the situation.
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111. Casey has a simple rule that he follows when it comes to new hiring; if four or more of his staff areworking 20% or more overtime, he hires another employee. Casey is usingA. relaxed change.B. heuristics.C. the Delphi technique.D. rational models.E. brainwriting.
answer
B. heuristics.
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112. Managers tend to give more weight to more recent behavior. This is due to theA. heuristic bias.B. halo effect.C. recency effect.D. availability bias.E. representativeness bias.
answer
D. availability bias.
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113. As Janine prepares to perform Ian's performance review, she carefully reviews notes she madethroughout the year, rather than relying just on what she remembers. Janine is attempting to avoid the______ bias.A. sunk-costB. adjustmentC. representativenessD. availabilityE. escalation of commitment
answer
D. availability
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114. Meg hired a great candidate from UCLA who has a big career ahead, and every year since Meg insistson going on a recruiting visit to that campus. Meg is convinced that hiring from UCLA in the futurewill produce the same level of success. This is an example of a(n)A. heuristic bias.B. professional effect.C. anchoring effect.D. availability bias.E. representativeness bias.
answer
E. representativeness bias.
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115. Angelina is interviewing for an open position since she recently let go an employee for excessiveabsenteeism. Though she thinks that Ivy is the best candidate for the job, she has small children,which seemed to be the source of the last employee's absenteeism. Angelina is reluctant to hire Ivy,which is a(n) ______ bias.A. anchoring and adjustmentB. confirmationC. availabilityD. representativenessE. escalation of commitment
answer
D. representativeness
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116. When managers add up all the money already spent on a project and conclude it is too costly to simplyabandon it, it is known as a(n) ________ bias.A. anchoring and adjustmentB. confirmationC. availabilityD. representativenessE. sunk cost
answer
E. sunk cost
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117. Managers at Thomas Canyon Credit Union have given employees raises year after year based on whatthey had given the year before, even though now their employees were quite underpaid compared tosimilar positions with other credit unions. This is an example of a(n)A. anchoring and adjustment bias.B. escalation of commitment bias.C. sunk-cost bias.D. availability bias.E. representativeness bias.
answer
A. anchoring and adjustment bias.
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118. Many investment advisors attribute their successful outcomes to skill, even when it is more likelyluck, which is an example of which bias?A. Overconfidence.B. Escalation of commitment bias.C. Hindsight.D. Availability.E. Framing.
answer
A. Overconfidence.
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119. The tendency for decision-makers to be influenced by the way a situation or problem is presented tothem is known as the ________ bias.A. overconfidence.B. escalation of commitment bias.C. hindsight.D. availability.E. framing.
answer
E. framing.
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120. Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs tobe replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________bias.A. anchoring and adjustmentB. confirmationC. availabilityD. representativenessE. escalation of commitment
answer
E. escalation of commitment
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121. The idea that decision makers find the notion of an actual loss more painful than giving up thepossibility of a gain is calledA. a heuristic.B. an availability bias.C. a representativeness bias.D. the prospect theory.E. satisficing.
answer
D. the prospect theory.
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122. Which of the following is an advantage of group decision making?A. GroupthinkB. Deeper commitment to the decisionC. Less thought requiredD. A quicker decisionE. More flexibility in the final decision
answer
B. Deeper commitment to the decision
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123. Which of the following is a disadvantage of group decision making?A. Lower commitment to the decisionB. Lower levels of confidence in judgmentsC. Different perspectivesD. Greater discomfort with the final decisionE. Satisficing
answer
E. Satisficing
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124. Spencer talked with Allie after their task force meeting, and they discovered that neither of them hadbeen in favor of dropping some items from next year's budget, yet neither spoke up. Both wanted to besupportive of the group instead. This is an example ofA. goal displacement.B. satisficing.C. groupthink.D. heuristics.E. self-selection.
answer
C. groupthink.
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125. The tendency of a group to settle on a decision that is good enough is calledA. goal displacement.B. satisficing.C. groupthink.D. heuristics.E. pseudo-optimization.
answer
B. satisficing.
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126. Because Greg and Karen were having an argument about the order of their respective projects on thewebsite, they were unable to work with the rest of the management team to come up with a staffingschedule. This is an example of what potential problem that occurs in groups?A. Goal displacementB. SatisficingC. GroupthinkD. HeuristicsE. Availability bias
answer
A. Goal displacement
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127. The ______ a group is, the ______ the quality of the decision.A. more diverse; lowerB. larger; lowerC. more confident; higherD. more knowledgeable; lowerE. more creative, lower
answer
B. larger; lower
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128. Which of the following characteristics of groups may lead to groupthink?A. Too little information available to the groupB. Errors in the information available to the groupC. OverconfidenceD. Disagreements among the membersE. Diversity in the group
answer
C. Overconfidence
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129. Anders has assembled a task force that is composed of people who don't know each other well. Heshould expect this group to make better decisions ifA. it is a large group.B. the members have common knowledge.C. the group is very confident.D. time pressure is high.E. individuals have unique, specialized knowledge.
answer
B. the members have common knowledge.
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130. Which of the following statements about group decision making is true?A. Individuals are always better than groups in decision making.B. Groups are always better than individuals in decision making.C. Groups minimize satisficing.D. Groups are faster at making decisions.E. Managers should utilize groups for decision making on a selective basis.
answer
E. Managers should utilize groups for decision making on a selective basis.
question
131. Which of the following is a practical guideline in determining whether to use group decision making?A. When it can encourage satisficingB. When it can increase speedC. When it can produce groupthinkD. When it can increase developmentE. When a decision occurs infrequently
answer
D. When it can increase development
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132. The process of involving employees in setting goals, making decisions, solving problems, and makingchanges is calledA. conjoint management.B. escalation of commitment.C. satisficing.D. goal displacement.E. participative management.
answer
E. participative management.
question
133. Research on the effects of participative management (PM) on employees' performance and satisfactionindicates thatA. PM has no effect on either.B. PM has a small positive effect on both.C. PM has a large effect on satisfaction, but a small effect on performance.D. PM has a large positive effect on both.E. PM has a large effect on performance, but no significant effect on satisfaction.
answer
B. PM has a small positive effect on both.
question
134. Which of the following is a factor that helps participative management work?A. Top management is occasionally involved.B. Employees trust managers.C. PM is implemented without interference from TQM.D. Employees work in interdependent jobs.E. Employees need more training.
answer
B. Employees trust managers.
question
135. Which of the following is NOT a rule for brainstorming suggested by IDEO?A. Go for quality over quantity.B. Defer judgment.C. Stay focused on the topic.D. Encourage wild ideas.E. Be visual.
answer
A. Go for quality over quantity.
question
136. _________ uses physically dispersed experts who fill out questionnaires to generate ideas and thejudgments are combined into an expert consensus.A. BrainstormingB. PMC. TQMD. BrainwritingE. The Delphi technique
answer
E. The Delphi technique
question
137. Cara was enthusiastic about the new decision technique being used at her office. Everyone gathered ina room with their computers and typed responses anonymously. These appeared on the screen in thefront of the room. Cara felt comfortable participating fully even though she was new to the company,and by the great number of comments, it seemed that everyone else did, too. Cara participated inA. the Delphi technique.B. collaborative management.C. a group-driven computer-aided system.D. a chauffeur-driven computer aided system.E. brainstorming.
answer
C. a group-driven computer-aided system.
question
138. Which of the following is NOT one of the suggestions for decision making recommended bymanagement consultant Odette Pollar?A. Decide in a timely fashion.B. Don't agonize over minor decisions.C. Separate outcome from process.D. Never stop gathering facts.E. When overwhelmed, narrow your choices.
answer
D. Never stop gathering facts.
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question
Level of Difficulty: 2 MediumTopic: Group Decision Making: How to Work with Others64. Which of the following statements about biased decision making is true?A. Hindsight helps you correctly assess what you should have known beforehand.B.When you are making a decision and you have considerable experience in that area, you are thenmost likely to be overconfident.C.When confronted with a choice, people with strong prior beliefs tend to make their decisions basedon their beliefs even if their beliefs are false.D. Sometimes a single event can allow you to determine the trend.E.You could confidently make a decision about something by asking 20 of your friends and decidingbased on their preferences.
answer
C.When confronted with a choice, people with strong prior beliefs tend to make their decisions basedon their beliefs even if their beliefs are fals
question
65. Which of the following is a step in the rational decision-making model?A. Seek consensus among leadership.B. Identify the problem or opportunity.C. Improve the chosen solution.D. Test solutions on a small scale.E. Implement a holding pattern.
answer
B. Identify the problem or opportunity.
question
66. The rational model of decision making is also called the ______ model.A. balancedB. satisficingC. incrementalD. classicalE. intuitional
answer
D. classical
question
67. Diagnosis is used in which stage of the rational decision-making model?A. Identify the problem or opportunityB. Think up alternative solutionsC. Evaluate alternativesD. Select a solutionE. Implement a solution
answer
A. Identify the problem or opportunity
question
68. Which of the following is true about women investors?A. They tend to trade more often than men.B. They do less research before investing than men.C. Their portfolios have a higher average gain than men's.D. They are increasingly being drawn to careers in finance.E. They tend to chase hot tips.
answer
C. Their portfolios have a higher average gain than men's.
question
69. When evaluating a solution in decision making, answering yes to which of the following questionsshould cause you to reconsider choosing it?A. Is there enough time?B. Are the costs reasonable?C. Is it ethical?D. Is the technology available?E. Do you consider it merely good enough?
answer
E. Do you consider it merely good enough?
question
70. In the final stage of the rational model of decision making, you shouldA. provide justification for the choice.B. select a solution.C. seek high-level support.D. evaluate the results.E. identify the winners and losers.
answer
D. evaluate the results.
question
71. Which of the following is NOT a recommended option when you discover that an action is notworking after a decision?A. Give the chosen solution more time.B. Abandon the solution in favor of the status quo.C. Try another alternative.D. Go back to the beginning of the decision-making process.E. Change the chosen solution slightly.
answer
B. Abandon the solution in favor of the status quo.
question
72. Which of the following is an assumption upon which the rational model of decision making rests?A. Decision makers can logically evaluate the alternatives.B. Consequences of any actions cannot be known.C. Decision makers typically have emotional blind spots.D. A decision maker will choose the option that is most ethical.E. Decision makers are unable to process all of the available information.
answer
A. Decision makers can logically evaluate the alternatives.
question
73. Which of the following is one of the nonrational models of decision making?A. BoundaryB. ClassicalC. Goal displacementD. SatisficingE. Attitudinal
answer
D. Satisficing
question
74. The concept of bounded rationality is most closely related to the _________ model of decisionmaking.A. classicalB. rationalC. satisficingD. incrementalE. intuition
answer
C. satisficing
question
75. Nicole and other managers in her firm have some ties to Europe and are investigating opportunities forglobal expansion. They are struggling to understand the risks, given the complexity of world marketstoday and recent global instabilities. The difficulty Nicole's team is facing prevents perfectly rationaldecision making, and is an example ofA. risk aversion.B. bounded rationality.C. groupthink.D. defensive avoidance.E. anchoring and adjustment.
answer
B. bounded rationality.
question
76. Alexis manages a clothing store in the mall. They were understaffed, and she thought she would haveto work all day and help close the store that evening until a young man came in for an applicationaround noon. Alexis told him he could have the job if he could come back at 4 p.m. to begin work.Here, Alexis was engaged inA. relaxed avoidance.B. confirmation bias.C. satisficing.D. heuristics.E. analytics.
answer
C. satisficing.
question
77. Which of the following is NOT a hindrance to perfectly rational decision making?A. Conflicting goalsB. Imperfect informationC. Information overloadD. Limited cognitive capacityE. Lack of intuition
answer
E. Lack of intuition
question
78. The incremental model of decision making suggests that managers make decisions byA. using processes that have worked in past experience.B. experimenting with alternatives in a controlled setting, one by one.C. choosing something that is good enough.D. taking small steps to alleviate a problem.E. involving several lower-level employees.
answer
D. taking small steps to alleviate a problem.
question
79. Jerome's accounts payable department is behind schedule as the month-end close is approaching. Thishas been happening every month, but he hasn't found time to provide additional training. Instead heasks all of his employees to work eight hours of overtime that week and reassigns some tasks. This isan example of using the ________ model.A. rationalB. predictiveC. intuitionD. incrementalE. coalition
answer
D. incremental
question
80. Jenna manages a retail store and she has been noticing long lines at checkout lately. She is unsureabout increasing staffing levels right now, so she chooses to reconfigure the physical orientation of thecheckout space to alleviate the problem for the time being. Jenna is using the ________ model.A. incrementalB. coalitionC. rationalD. predictiveE. intuition
answer
A. incremental
question
81. Making a choice without the use of conscious thought or logical interference is calledA. reactive decision.B. irrational insight.C. intuition.D. instinctual choice.E. heuristics.
answer
C. intuition.
question
82. Which of the following is an implementation principle for evidence-based management described byPfeffer and Sutton?A. See yourself as outsiders do.B. If all else fails, speed the spread of good practices.C. Reserve evidence-based management for top executives.D. Treat your organization as a trophy.E. Understand what happens when people succeed.
answer
A. See yourself as outsiders do
question
83. Which of the following is NOT a reason why it is hard to bring the best evidence to bear on yourdecisions?A. Stories are more persuasive than evidence.B. People are trying to mislead you.C. The evidence leads to an unethical solution.D. The evidence doesn't quite apply.E. There's too much evidence.
answer
C. The evidence leads to an unethical solution.
question
84. Redbox uses the large amount of data that it collects at its video and game rental kiosks to determineways to improve customer retention and to encourage multiple rentals at the same time. The chain isusingA. quantitative decision making.B. data correlation.C. heuristics.D. business analytics.E. the Delphi technique.
answer
D. business analytics.
question
85. Which of the following is characteristic of companies that use analytics?A. Use of predictive modelingB. Having a single, focused application for its useC. Information overloadD. Use of competitive intelligenceE. Making decisions intuitively
answer
A. Use of predictive modeling
question
86. The stores of data so vast that conventional database management systems cannot handle them andwhich instead require very sophisticated analysis software and supercomputing-level hardware areknown asA. big data.B. heuristics.C. information escalation.D. incremental diagnostics.E. boundless resources.
answer
A. big data.
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87. Amanda was asked by her boss to create a handbook for new hires because several employees hadrecently complained, saying they felt lost when they first started because procedures didn't seem to beformalized. Amanda herself had not felt that way, perhaps because she has aA. high tolerance for ambiguity.B. value orientation focused on people.C. conceptual decision style.D. high propensity for risk.E. low value orientation.
answer
A. high tolerance for ambiguity.
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88. A person with high tolerance for ambiguity hasA. a high need for structure or control.B. a strong people orientation.C. an analytical mind.D. defensive avoidance tendencies.E. comfort with uncertain situations.
answer
E. comfort with uncertain situations.
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89. Which of the following is a decision-making style based on the dimensions of value orientation andtolerance for ambiguity?A. professionalB. personalC. technologicalD. behavioralE. mechanical
answer
D. behavioral
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90. An analytical decision-making style reflects a person who is ______ in his value orientation and______ in his tolerance for ambiguity.A. task/technical; highB. task/technical; lowC. people/social; highD. people/social; lowE. managerial; low
answer
A. task/technical; high
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91. A person with a conceptual decision-making style is __________ in her value orientation and__________ in her tolerance for ambiguity.A. managerial; highB. task/technical; lowC. people/social; highD. people/social; lowE. managerial; low
answer
C. people/social; high
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92. A person who is oriented toward people and social concerns and has a low tolerance for ambiguity is______ in her decision-making style.A. analyticalB. relaxedC. conceptualD. directiveE. behavioral
answer
E. behavioral
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93. A person who is oriented toward task and technical concerns and has a low tolerance for ambiguity is______ in his decision-making style.A. analyticalB. behavioralC. conceptualD. directiveE. heuristic
answer
D. directive
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94. Ryan is an efficient manager who is very good at meeting his deadlines and quite decisive. Still, hisemployees find him to be too controlling at times and unable to see the long-term consequences of hisactions. Ryan is most likely ______ in his decision-making style.A. analyticalB. autocraticC. behavioralD. conceptualE. directive
answer
E. directive
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95. Charlie has a reputation for being slow to reach a final decision but being able to decide a reasonedcourse of action regardless of the uncertainty. He is very thorough in collecting information andevaluating more alternatives than other managers are. Charlie is most likely ______ in his decisionmakingstyle.A. analyticalB. behavioralC. conceptualD. directiveE. relaxed
answer
A. analytical
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96. Karl is very creative and prefers to look at the long-term issues when making a decision. He considersa wide variety of possible actions based on an open mind about the possibilities. Sometimes hiscoworkers find him indecisive because of these tendencies. Karl is probably ______ in his decisionmakingstyle.A. analyticalB. behavioralC. conceptualD. directiveE. relaxed
answer
C. conceptual
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97. Savannah is a warm and likeable manager who is extremely supportive of her employees, but shesometimes doesn't say no when she needs to and is somewhat passive in enforcing her decisions. Herdecision-making style is most likelyA. analytical.B. heuristic.C. behavioral.D. conceptual.E. directive.
answer
C. behavioral
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98. Scott has received training in resolving ethical dilemmas and currently oversees the development of anethical code for his workplace. Scott is a(n)A. member of the principles board.B. morality team member.C. social responsibility chief.D. ethics officer.E. chief executive officer.
answer
D. ethics officer.
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99. A graph of decisions and their possible consequences is known as a(n)A. decision tree.B. Gantt chart.C. results chart.D. outcome matrix.E. fishbone diagram.
answer
A. decision tree
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100. According to Harvard professor Constance Bagley, ethical decisions can be facilitated with a(n)A. goal statement.B. improved legal department.C. cross-department task force.D. decision tree.E. brainstorming session.
answer
D. decision tree.
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101. Which of the following questions about a proposed action is NOT a key question in Bagley's ethicaldecision tree?A. Is it legal?B. Does it maximize shareholder value?C. Is it ethical?D. Would it be ethical not to do it?E. Should the effect of it be disclosed to shareholders?
answer
E. Should the effect of it be disclosed to shareholders?
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102. It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing toanother country where costs are somewhat higher but workplace standards are more tightly controlled.In using Bagley's ethical decision tree, you determine it would be unethical NOT to relocate, so youshouldA. relocate the facility, but don't tell shareholders about potentially smaller profits.B. warn the manufacturer that you will relocate should a violation occur again.C. continue to use the facility, despite your objections, because this will maximize shareholder value.D. relocate the facility, and tell the shareholders how this will affect their returns.E. continue to use the facility, because it is benefitting your company, and all workers, even underageones.
answer
D. relocate the facility, and tell the shareholders how this will affect their returns.
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103. When a manager decides to take no action in the belief that there will be no great negativeconsequences, she is engaged inA. limited reaction.B. relaxed avoidance.C. relaxed change.D. decreased involvement.E. defensive avoidance.
answer
B. relaxed avoidance.
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104. Carla heard from a client that a product similar to a popular one at her retail store was now atWalmart, imported from China, and costing just over half of her sales price. But Carla isn't reallyworried because she believes in her customers' loyalty, so she has no plans to make changes. Carla ispracticingA. relaxed change.B. defensive avoidance.C. postponed action.D. relaxed avoidance.E. delayed decision.
answer
D. relaxed avoidance.
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105. Which of the following responses to a challenge would be considered most like satisficing?A. PanicB. Relaxed avoidanceC. Relaxed changeD. Decreased involvementE. Defensive avoidance
answer
C. Relaxed change
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106. When a manager realizes that complete inaction will have negative consequences but opts for the firstavailable alternative that involves low risk, it is calledA. relaxed change.B. defensive avoidance.C. postponed action.D. relaxed avoidance.E. delayed decision.
answer
A. relaxed change.
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107. Passing the buck or procrastinating about a decision are examples of which type of reaction to achallenge?A. PanicB. Relaxed avoidanceC. Relaxed changeD. Decreased involvementE. Defensive avoidance
answer
E. Defensive avoidance
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108. Erik has been putting off a decision about firing several workers who have been ignoring safetyregulations on the factory floor. After all, he thinks, his boss will eventually notice and take action.Erik is experiencing a(n) ______ reaction.A. relaxed changeB. relaxed avoidanceC. defensive avoidanceD. unresponsiveE. delayed change
answer
C. defensive avoidance
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109. Robin is very worried about potentially having to lay off several of her staff. She can't sleep well, herstomach is bothering her, and she snaps at her employees. She doesn't know what to do but won't talkwith anyone about it. Robin is experiencing a ______ reaction to a challenge.A. relaxed changeB. defensive avoidanceC. panicD. deciding to decideE. heuristic
answer
C. panic
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110. In deciding to decide about a problem or opportunity, a manager should evaluate the importance of thesituation, the credibility of the information, andA. the equitability of the outcomes.B. the availability of heuristics.C. the urgency of the situation.D. the cost of the solution.E. the ethics of making no change.
answer
C. the urgency of the situation.
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111. Casey has a simple rule that he follows when it comes to new hiring; if four or more of his staff areworking 20% or more overtime, he hires another employee. Casey is usingA. relaxed change.B. heuristics.C. the Delphi technique.D. rational models.E. brainwriting.
answer
B. heuristics.
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112. Managers tend to give more weight to more recent behavior. This is due to theA. heuristic bias.B. halo effect.C. recency effect.D. availability bias.E. representativeness bias.
answer
D. availability bias.
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113. As Janine prepares to perform Ian's performance review, she carefully reviews notes she madethroughout the year, rather than relying just on what she remembers. Janine is attempting to avoid the______ bias.A. sunk-costB. adjustmentC. representativenessD. availabilityE. escalation of commitment
answer
D. availability
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114. Meg hired a great candidate from UCLA who has a big career ahead, and every year since Meg insistson going on a recruiting visit to that campus. Meg is convinced that hiring from UCLA in the futurewill produce the same level of success. This is an example of a(n)A. heuristic bias.B. professional effect.C. anchoring effect.D. availability bias.E. representativeness bias.
answer
E. representativeness bias.
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115. Angelina is interviewing for an open position since she recently let go an employee for excessiveabsenteeism. Though she thinks that Ivy is the best candidate for the job, she has small children,which seemed to be the source of the last employee's absenteeism. Angelina is reluctant to hire Ivy,which is a(n) ______ bias.A. anchoring and adjustmentB. confirmationC. availabilityD. representativenessE. escalation of commitment
answer
D. representativeness
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116. When managers add up all the money already spent on a project and conclude it is too costly to simplyabandon it, it is known as a(n) ________ bias.A. anchoring and adjustmentB. confirmationC. availabilityD. representativenessE. sunk cost
answer
E. sunk cost
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117. Managers at Thomas Canyon Credit Union have given employees raises year after year based on whatthey had given the year before, even though now their employees were quite underpaid compared tosimilar positions with other credit unions. This is an example of a(n)A. anchoring and adjustment bias.B. escalation of commitment bias.C. sunk-cost bias.D. availability bias.E. representativeness bias.
answer
A. anchoring and adjustment bias.
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118. Many investment advisors attribute their successful outcomes to skill, even when it is more likelyluck, which is an example of which bias?A. Overconfidence.B. Escalation of commitment bias.C. Hindsight.D. Availability.E. Framing.
answer
A. Overconfidence.
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119. The tendency for decision-makers to be influenced by the way a situation or problem is presented tothem is known as the ________ bias.A. overconfidence.B. escalation of commitment bias.C. hindsight.D. availability.E. framing.
answer
E. framing.
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120. Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs tobe replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________bias.A. anchoring and adjustmentB. confirmationC. availabilityD. representativenessE. escalation of commitment
answer
E. escalation of commitment
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121. The idea that decision makers find the notion of an actual loss more painful than giving up thepossibility of a gain is calledA. a heuristic.B. an availability bias.C. a representativeness bias.D. the prospect theory.E. satisficing.
answer
D. the prospect theory.
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122. Which of the following is an advantage of group decision making?A. GroupthinkB. Deeper commitment to the decisionC. Less thought requiredD. A quicker decisionE. More flexibility in the final decision
answer
B. Deeper commitment to the decision
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123. Which of the following is a disadvantage of group decision making?A. Lower commitment to the decisionB. Lower levels of confidence in judgmentsC. Different perspectivesD. Greater discomfort with the final decisionE. Satisficing
answer
E. Satisficing
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124. Spencer talked with Allie after their task force meeting, and they discovered that neither of them hadbeen in favor of dropping some items from next year's budget, yet neither spoke up. Both wanted to besupportive of the group instead. This is an example ofA. goal displacement.B. satisficing.C. groupthink.D. heuristics.E. self-selection.
answer
C. groupthink.
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125. The tendency of a group to settle on a decision that is good enough is calledA. goal displacement.B. satisficing.C. groupthink.D. heuristics.E. pseudo-optimization.
answer
B. satisficing.
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126. Because Greg and Karen were having an argument about the order of their respective projects on thewebsite, they were unable to work with the rest of the management team to come up with a staffingschedule. This is an example of what potential problem that occurs in groups?A. Goal displacementB. SatisficingC. GroupthinkD. HeuristicsE. Availability bias
answer
A. Goal displacement
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127. The ______ a group is, the ______ the quality of the decision.A. more diverse; lowerB. larger; lowerC. more confident; higherD. more knowledgeable; lowerE. more creative, lower
answer
B. larger; lower
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128. Which of the following characteristics of groups may lead to groupthink?A. Too little information available to the groupB. Errors in the information available to the groupC. OverconfidenceD. Disagreements among the membersE. Diversity in the group
answer
C. Overconfidence
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129. Anders has assembled a task force that is composed of people who don't know each other well. Heshould expect this group to make better decisions ifA. it is a large group.B. the members have common knowledge.C. the group is very confident.D. time pressure is high.E. individuals have unique, specialized knowledge.
answer
B. the members have common knowledge.
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130. Which of the following statements about group decision making is true?A. Individuals are always better than groups in decision making.B. Groups are always better than individuals in decision making.C. Groups minimize satisficing.D. Groups are faster at making decisions.E. Managers should utilize groups for decision making on a selective basis.
answer
E. Managers should utilize groups for decision making on a selective basis.
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131. Which of the following is a practical guideline in determining whether to use group decision making?A. When it can encourage satisficingB. When it can increase speedC. When it can produce groupthinkD. When it can increase developmentE. When a decision occurs infrequently
answer
D. When it can increase development
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132. The process of involving employees in setting goals, making decisions, solving problems, and makingchanges is calledA. conjoint management.B. escalation of commitment.C. satisficing.D. goal displacement.E. participative management.
answer
E. participative management.
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133. Research on the effects of participative management (PM) on employees' performance and satisfactionindicates thatA. PM has no effect on either.B. PM has a small positive effect on both.C. PM has a large effect on satisfaction, but a small effect on performance.D. PM has a large positive effect on both.E. PM has a large effect on performance, but no significant effect on satisfaction.
answer
B. PM has a small positive effect on both.
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134. Which of the following is a factor that helps participative management work?A. Top management is occasionally involved.B. Employees trust managers.C. PM is implemented without interference from TQM.D. Employees work in interdependent jobs.E. Employees need more training.
answer
B. Employees trust managers.
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135. Which of the following is NOT a rule for brainstorming suggested by IDEO?A. Go for quality over quantity.B. Defer judgment.C. Stay focused on the topic.D. Encourage wild ideas.E. Be visual.
answer
A. Go for quality over quantity.
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136. _________ uses physically dispersed experts who fill out questionnaires to generate ideas and thejudgments are combined into an expert consensus.A. BrainstormingB. PMC. TQMD. BrainwritingE. The Delphi technique
answer
E. The Delphi technique
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137. Cara was enthusiastic about the new decision technique being used at her office. Everyone gathered ina room with their computers and typed responses anonymously. These appeared on the screen in thefront of the room. Cara felt comfortable participating fully even though she was new to the company,and by the great number of comments, it seemed that everyone else did, too. Cara participated inA. the Delphi technique.B. collaborative management.C. a group-driven computer-aided system.D. a chauffeur-driven computer aided system.E. brainstorming.
answer
C. a group-driven computer-aided system.
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138. Which of the following is NOT one of the suggestions for decision making recommended bymanagement consultant Odette Pollar?A. Decide in a timely fashion.B. Don't agonize over minor decisions.C. Separate outcome from process.D. Never stop gathering facts.E. When overwhelmed, narrow your choices.
answer
D. Never stop gathering facts.