Decision Making by Individuals
Decision Making by Individuals and Groups
TRUE FALSE
1. By using the Z problem-solving model, managers can use only their preferences to make decisions.
(A) True
(B) False
Answer : (B)
2. According to the Z model, Intuiting is used to gather information about a problem.
(A) True
(B) False
Answer : (B)
3. Over optimism is one of the reasons for escalation of commitment.
(A) True
(B) False
Answer : (A)
4. Individuals with higher self-esteem and those who are given an opportunity to affirm an important value are less likely to de-escalate.
(A) True
(B) False
Answer : (B)
5. Those prone to making risky decisions are less likely to take the lead in group discussions.
(A) True
(B) False
Answer : (B)
6. Research indicates that men are more risk averse than women and that younger, less experienced managers are more risk averse than older managers.
(A) True
(B) False
Answer : (B)
7. Managers never use their intuition to make decisions.
(A) True
(B) False
Answer : (B)
8. Incubation means seeking out new experiences and opportunities to learn because creativity grows from a base of knowledge.
(A) True
(B) False
Answer : (B)
9. Illumination is conducted to determine if a solution or idea is valid.
(A) True
(B) False
Answer : (B)
10. Devil's advocacy or dialectical inquiry facilitates groupthink.
(A) True
(B) False
Answer : (B)
11. A quality circle is a team that is part of an organization's structure and is empowered to act on its decisions regarding product and service quality.
(A) True
(B) False
Answer : (B)
12. Styles of decision making remain uniform among cultures.
(A) True
(B) False
Answer : (B)
13. The United States is a culture with high uncertainty avoidance.
(A) True
(B) False
Answer : (B)
14. Power distance does not affect decision making.
(A) True
(B) False
Answer : (B)
15. Time orientation does not affect the frame of reference of a decision.
(A) True
(B) False
Answer : (B)
16. Feminine cultures value quick, assertive decisions.
(A) True
(B) False
Answer : (B)
17. When individuals in a group are racially dissimilar, they engage in less open information sharing.
(A) True
(B) False
(B)
18. Strategic decision making in firms can vary widely by culture.
(A) True
(B) False
Answer : (A)
19. Participation buffers employees from the negative experiences of organizational politics.
(A) True
(B) False
Answer : (A)
20. As an economy becomes increasingly based on knowledge work, participative decision making decreases. (A) True
(B) False
Answer : (B)
21. The capability to become physically involved in participative activities is an individual prerequisite for participative decision making.
(A) True
(B) False
Answer : (B)
MULTICHOICE
22. Which of the following is true of programmed decisions?
(A) They are new and complex decisions.
(B) They require creative solutions.
(C) They have an established decision rule.
(D) They require detailed judgement.
(C)
23. _____ are new and complex decisions that require considerable judgment.
(A) Programmed decisions
(B) Routine decisions
(C) Simple decisions
(D) Nonprogrammed decisions
Answer : (D)
24. Alex, a manager at WizzWare Inc., is in charge of making a decision about merging with another company. This decision is a _____.
(A) programmed decision
(B) simple decision
(C) routine decision
(D) nonprogrammed decision
Answer : (D)
25. In the context of the decision-making process, after a solution is implemented, the next step is to:
(A) monitor the situation.
(B) calculate the probability of success.
(C) evaluate alternatives.
(D) evaluate data.
Answer : (A)
26. Which of the following is an assumption of the rational model of decision making?
(A) The outcome will be completely irrational.
(B) The decision maker is aware of all the possible alternatives.
(C) The decision maker cannot calculate the probability of success for each alternative.
(D) The decision maker has an inconsistent system of preferences, which is used to choose alternatives.
(B)
27. The rational model of decision making assumes that the:
(A) decision maker has an inconsistent system of preferences.
(B) decision maker is not aware of all the possible alternatives.
(C) outcomes will be completely irrational.
(D) decision maker can calculate the probability of success for each alternative.
Answer : (D)
28. In the rational model, the decision maker strives to:
(A) satisfice.
(B) optimize.
(C) support a failing Assignment of action.
(D) develop shortcuts.
Answer : (B)
29. The _____ rests on the idea that there are constraints that force a decision maker to be less than completely rational. (A) rational model
(B) truth-wins rule
(C) bounded rationality model
(D) two-thirds-majority rule
Answer : (C)
30. The bounded rationality model assumes that managers:
(A) select the alternative that is rational.
(B) always select the best possible alternative.
(C) recognize that their conception of the world is complex.
(D) are comfortable making decisions without identifying all the options.
Answer : (D)
31. Bounded rationality assumes that managers _____ because the costs of optimizing in terms of time and effort are too great.
(A) satisfice
(B) optimize
(C) examine facts and details
(D) reject heuristics
Answer : (A)
32. Which of the following is an assumption of the bounded rationality model?
(A) Managers are aware of all the possible alternatives.
(B) Managers have a consistent system of preferences, which is used to choose the best alternative.
(C) Managers can calculate the probability of success for each alternative.
(D) Managers develop shortcuts, called heuristics, to make decisions in order to save mental activity. Answer : (D)
33. One of the reasons managers face limits to their rationality is that they:
(A) are aware of all the possible alternatives.
(B) must make decisions under risk and time pressure.
(C) have a consistent system of preferences.
(D) do not calculate the probability of success for each alternative.
Answer : (C)
34. Which of the following preferences is used in the final step of the Z problem-solving model to determine how the people involved will be affected?
(A) Feeling
(B) Sensing
(C) Intuiting
(D) Thinking
Answer : (A)
35. Using the _____ can help an individual develop his nonpreferences. truth-wins rule
two-thirds-majority rule bounded rationality model
Z problem-solving model
Answer : (D)
36. In situations characterized by _____, individuals who make decisions that turn out to be poor choices tend to hold fast to those choices, even when substantial costs are incurred.
(A) escalation of commitment
(B) path dependency
(C) group polarization
(D) participative decision making
Answer : (A)
37. Jake, the CEO of WinWest Inc., decided to launch a high-risk product. Despite the product's persistent failure, he was unwilling to withdraw it from the market. This scenario is an example of
_____.
(A) path dependency
(B) risk aversion
(C) escalation of commitment
(D) participative decision making
Answer : (C)
38. Cognitive style is defined as an individual's:
(A) preferred method for gathering information and evaluating alternatives.
(B) tendency to choose options that entail fewer risks and less uncertainty.
(C) tendency to continue to support a failing Assignment of action.
(D) new, complex decision that requires a creative solution.
Answer : (A)
39. Which of the following statements is true in the context of risk aversion?
Women are more risk averse than men.
Younger managers are more risk averse than more experienced managers.
Successful managers are more risk averse than unsuccessful managers.
Men are more risk averse than women.
Answer : (A)
40. In the context of personality, attitudes, and values, the left side of the brain is the center for
_____.
(A) creative functions
(B) planning
(C) incubation
(D) innovative ideas
Answer : (B)
41. _____ has been described as the ability to know or recognize quickly and readily the possibilities of a situation.
(A) Preparation
(B) Intuition
(C) Verification
(D) Illumination
Answer : (B)
42. Which of the following is an assumption of intuition?
(A) It involves learned patterns of information.
(B) It is used at a level above consciousness.
(C) It is a negative force in decision making.
(D) It is slow.
Answer : (A)
43. The use of intuition may lead to more _____ as intuition allows an individual to take on another's role with ease. effective decisions
heuristics creativity ethical decisions
Answer : (D)
44. In the context of creativity, _____ occurs when an individual senses an insight for solving a problem.
(A) incubation
(B) illumination (C) verification
(D) preparation
Answer : (B)
45. _____ are simple rules used to determine final group decisions.
(A) Heuristics
(B) Social decision schemes
(C) Nominal group techniques
(D) Mindguards
Answer : (B)
46. One social decision scheme is the _____, in which a group supports whatever position is taken by most of its members.
(A) majority-wins rule
(B) truth-wins rule
(C) two-thirds-majority rule
(D) first-shift rule
Answer : (A)
47. The advantages of group decision making include:
(A) no pressure within the group to conform and fit in.
(B) more knowledge through the pooling of group member resources.
(C) less amount of time required.
(D) decreased acceptance of and commitment to the decision.
Answer : (B)
48. Which of the following encourages groupthink?
(A) Low cohesiveness
(B) Diversity among group members
(C) Domination of the group by one forceful member
(D) Time constraints
Answer : (D)
49. Which of the following is a symptom of groupthink?
(A) Illusions of group immorality
(B) Illusions of vulnerability
(C) Low cohesiveness
(D) Peer pressure
Answer : (D)
50. A _____ is a small group of employees who work voluntarily on company time, typically one hour per week, to address work-related problems such as quality control, cost reduction, production planning and techniques, and even product design.
(A) quality circle
(B) quality team
(C) social group
(D) planning team
Answer : (A)
51. Which of the following is true of quality circles?
(A) They extend participative decision making into teams.
(B) They are included in total quality management.
(C) They are empowered to act on their own recommendations.
(D) They are generated from the top down.
Answer : (A)
52. Which of the following is true of quality teams?
(A) They emphasize the generation of ideas.
(B) They operate in parallel fashion to an organization's structure.
(C) They extend participative decision making into teams.
(D) They make data-based decisions about improving product and service quality.
Answer : (D)
53. Recent research examining the effects of cultural diversity on decision making has found that when individuals in a group are racially dissimilar, _____.
(A) they engage in less open information sharing
(B) they discourage dissenting perspectives
(C) they arrive at better decisions than racially similar groups
(D) they tend to make decisions slower than racially similar groups
Answer : (C)
54. Participative decision making is associated with:
(A) the ability to know the possibilities of a situation.
(B) less creativity among employees.
(C) reduced productivity.
(D) employee job satisfaction.
Answer : (D)
55. The organizational foundations include a _____ that is essential because of the uncertainty within the organization.
(A) nominal group technique
(B) social organizational scheme
(C) supportive organizational culture
(D) social comparison approach
Answer : (C)
56. Which of the following is an individual prerequisite for participative decision making?
(A) The capability to prevent critical analysis of decisions
(B) The motivation to act autonomously
(C) The motivation to protect a group from negative feedback
(D) The capability to become psychologically detached in participative activities Answer : (B)
ESSAY
57. What are the elements of the decision making process?
Graders Info :
Answers will vary.Decision making is a process involving a series of steps. The first step is recognizing the problem; that is, the manager realizes that a decision must be made. Identifying the real problem is important; otherwise, the manager may be reacting to symptoms rather than dealing with the root cause of the problem. Next, a manager must identify the objective of the decision. In other words, the manager must determine what is to be accomplished by the decision. The third step in the decision-making process is gathering information relevant to the problem. The manager must accumulate sufficient information about why the problem occurred. This involves conducting a thorough diagnosis of the situation and going on a fact-finding mission. The fourth step is listing and evaluating alternative Assignments of action. During this step, a thorough "what-if" analysis should be conducted to determine the various factors that could influence the outcome. It is important to generate a wide range of options and creative solutions in order to be able to move on to the next step. Next, the manager selects the alternative that best meets the decision objective. If the problem has been diagnosed correctly and sufficient alternatives have been identified, this step is much easier. After the solution is implemented, the situation must then be monitored to see whether the decision met its objective. Consistent monitoring and periodic feedback are essential parts of the follow-up process. Please see the section "The Decision-Making Process" for more information.
58. Describe the individual and organizational influences on creativity.
Graders Info :
Answers will vary.Several individual variables are related to creativity. One group of factors involves the cognitive processes that creative individuals tend to use. One such cognitive process is divergent thinking, meaning the individual's ability to generate several potential solutions to a problem. In addition, associational abilities and the use of imagery are associated with creativity. Unconscious processes such as dreams are also essential cognitive processes related to creative thinking.
Personality factors have also been related to creativity in studies of individuals from several different occupations.
The organizational environment in which people work can either support creativity or impede creative efforts. Creativity killers include focusing on how work is going to be evaluated, being closely monitored while you are working, and competing with other people in win-lose situations. In contrast, creativity facilitators include feelings of autonomy, being part of a team with diverse skills, and having creative supervisors and coworkers. High-quality, supportive relationships with supervisors are related to creativity. Plus, high-quality, cohesive social networks can have a positive impact on creative decision making. Such social networks encourage creative decision making by facilitating shared sense-making of relevant information and consensus building. In addition, flexible organizational structures and participative decision making have been associated with creativity. Please see the section "Individual Influences on Decision Making" for more information.
59. Describe the advantages of group decision making.
Graders Info :
Answers will vary.The advantages of group decision making include (1) more knowledge and information through the pooling of group member resources, (2) increased acceptance of and commitment to the decision because the members had a voice in it, and (3) greater understanding of the decision because members were involved in the various stages of the decision process. Please see the section "The Group Decision-Making Process" for more information.
60. Describe the effect of diversity and culture on decision making.
Graders Info :
Answers will vary.Styles of decision making vary greatly among cultures. In the United States, a culture with low uncertainty avoidance, decisions are seen as opportunities for change. Power distance also affects decision making. The individualist/collectivist dimension has implications for decision making. Japan, with its collectivist culture, favors group decisions. The United States has a more difficult time with group decisions because it is an individualistic culture. The time orientation and masculine/feminine dimensions have an impact on decision making as well. Recent research examining the effects of cultural diversity on decision making has found that when individuals in a group are racially dissimilar, they engage in more open information sharing, encourage dissenting perspectives, and arrive at better decisions than racially similar groups. Please see the section "Diversity and Culture in Decision Making" for more information.
61. Describe the foundations for participation and empowerment.
Graders Info :
Answers will vary.The organizational foundations for participation and empowerment include a supportive organizational culture and a team-oriented work design. A supportive work environment is essential because of the uncertainty within the organization. A second organizational foundation for participative decision making concerns the design of work. A team-oriented work design is a key organizational foundation because it leads to broader tasks and a greater sense of responsibility. Please see the section "Participation in Decision Making" for more information.
