Exam Prep Ch7 Data And Decision Making - Management Canada 5e | Complete Test Bank by John R. Schermerhorn Jr. DOCX document preview.
CHAPTER 7
DATA AND DECISION MAKING
Question type: True/False
1) The three career competency “must-haves” are computer competency, information competency and analytical competency.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
2) Computer competency is the ability to utilize computers and information technology to locate, retrieve, evaluate, organize, and analyze information for decision making.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
3) Information competency is the ability to use technology to locate, retrieve, evaluate, organize, and analyze information for decision making.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
4) Analytical competency is the ability to understand new technologies and to use them to their best advantage.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
5) The raw facts and observations made useful and meaningful for decision making is called information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
6) Timeliness, quality, completeness, relevance, and understandability are qualities of useful information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
7) Information that is clear and easily understood by the user and is free from unnecessary detail is considered relevant information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
8) The management process of planning, organizing, leading, and controlling is ultimately driven by information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
9) A management information system is designed to use information technology to meet the specific information needs of managers as they make a variety of decisions on a day-to-day basis.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
10) Management information systems use the latest in information technology to collect, organize, and distribute data in such a way that they become meaningful as information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
11) C-suite refers to an application that assists organizations in collecting, organizing and sharing data within the organization.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
12) Internal information flows upward in the form of goals, instructions and feedback.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
13) At the organization’s boundaries, information in the external environment is accessed and managers use this intelligence information to deal effectively with competitors and key stakeholders.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
14) Organizations send public information to stakeholders and the external environment for image building, financial reporting, and product advertising.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
15) Information technology is changing organizations by breaking down traditional barriers that prevent people and departments from communicating and sharing information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
16) Neither supply chain management nor customer relationship management can be improved with information technology (IT) connections.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
17) Data mining is the process of analyzing data in order to produce information that is useful to decision-makers.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
18) The Five “Vs” of big data are Volume, Variety, Veracity, Velocity and Value.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
19) If big data has limited value, it is irrelevant if the other four “Vs” are satisfied..
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
20) Business intelligence sorts and reports data in such a way as to provide competitive, big picture and dashboard information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
21) Because of the increasing use of information technology, individuals and teams can communicate more easily and share information, and coordination and control among decision makers can be increased.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloomcode: Comprehension
Difficulty: EAsu
AACSB: Analytic
22) Because of the growth of management information systems, more managers are needed to coordinate the flow, sharing, and processing of information.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
23) Problem solving is the process of identifying a discrepancy between actual and desired states, and then taking appropriate corrective action.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
24) Problem solving and decision making are dependent on quality information being available to the right people at the right time.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
25) A performance threat occurs when the actual performance is less than desired or is moving in an unfavourable direction.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
26) A performance deficiency occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
27) A performance opportunity occurs when actual performance is less than desired performance.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
28) A performance opportunity offers a chance for a better future if the right steps are taken.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
29) Managers who ignore information that would otherwise signal the presence of a problem are problem deniers.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
30) Problem avoiders deal reasonably well with performance threats but miss many performance opportunities.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
31) Problem solvers are managers who try to solve problems but only when forced to by the situation.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
32) Problem seekers actively process information and constantly look for problems to solve or opportunities to explore.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
33) Problem avoiders ignore information that would otherwise signal the presence of a problem; problem seekers try to solve problems as they arise; and problem solvers actively process information and look for problems to solve or opportunities to explore.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
34) A person who approaches problems in a rational, step-by-step, and analytical fashion is engaging in systematic thinking.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
35) Systematic thinkers are likely to deal with many aspects of a problem simultaneously, consider hunches, and jump quickly from one issue to another.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
36) Systematic thinkers are likely to break a complex problem into smaller components, make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
37) Intuitive thinking tends to work best in situations where facts are limited and few decision precedents exist.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
38) Intuitive thinkers will broadly and quickly evaluate a problem situation, explore and abandon alternatives very quickly, and consider a number of alternatives and options simultaneously.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
39) Multidimensional thinking is the capacity to view many problems at once, in relationship to one another, and across short-term and long-term horizons.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
40) Strategic opportunism is the ability to remain focused on long-term objectives while being flexible in dealing with short-term problems and opportunities in a timely manner.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
41) Cognitive styles are the various ways individuals deal with information while making decisions.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
42) The four cognitive styles are sensation thinkers, intuitive thinkers, intuitive feelers, and systematic feelers.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
43) Sensation thinkers are comfortable with abstraction and unstructured situations.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
44) Intuitive feelers prefer broad and global issues, and they value flexibility and human relations.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
45) Structured problems can be dealt with through programmed decisions as they are routine and occur over and over again.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
46) Programmed decisions use solutions already available from past experience to solve structured problems.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
47) When a program chair places students on academic probation for not maintaining a minimum grade point average this is a programmed decision.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
48) Unstructured problems are ones that are familiar, straightforward, and clear with respect to the information needs.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
49) Unstructured problems are full of ambiguities and information deficiencies and require nonprogrammed decisions that craft novel solutions to meet the demands of a unique situation.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
50) A nonprogrammed decision is made when a new and unfamiliar problem arises, and a novel solution is crafted to meet the demands of the unique situation at hand.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
51) Most problem situations encountered by higher-level managers can be classified as routine and structured.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
52) A crisis is an unexpected problem that can lead to disaster if not resolved quickly and appropriately.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
53) Most managers react to crisis situations by readily involving others in solving the problem.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
54) Proactive managers try to identify those situations that are likely to be susceptible to a crisis, and then develop basic contingency plans for crisis management.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
55) A crisis may be made worse if critical decisions are made with poor or inadequate information and from a limited perspective.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
56) An appropriate guideline for crisis management is to take the time to understand what is going on with the crisis situation and the conditions under which the crisis must be resolved.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
57) An appropriate guideline for crisis management is to never “fight fire with fire” by starting another crisis to get people’s attention.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
58) Decision making in a certain environment requires the use of probabilities to estimate the likelihood that a particular outcome will occur.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
59) When decision makers lack complete information on action alternatives and their consequences and have calculated the probabilities associated with the various outcomes, they are operating in a risk environment.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
60) When decision makers have information on all possible action alternatives and their consequences, have calculated probabilities associated with the various alternatives, they are operating in a risk environment.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
61) Uncertainty is the most difficult decision environment for any manager.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
62) Uncertain environments force managers to rely heavily on intuition, judgment, informed guessing, and hunches.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
63) The first step in the decision-making process involves gathering information, processing information, and deliberating.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
64) A key aspect of problem identification and definition involves clarifying goals by determining exactly what a decision should accomplish.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
65) Common mistakes made in defining a problem include focusing on symptoms instead of causes, choosing the wrong problem to address, and defining the problem too broadly or too narrowly.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
66) Generation and evaluation of alternative courses of action is the decision-making step where people assemble the facts and information that will be helpful for problem solving.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
67) A cost/benefit analysis compares the costs of implementing an alternative with its expected benefits.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
68) Typical criteria for evaluating alternative solutions include benefits, costs, timeliness, acceptability, and ethical soundness.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
69) The second step of the decision-making process will be effective when the search for alternatives is completed rapidly.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
70) The second step of the decision-making process will be effective when alternatives meet ethical standards that are acceptable to the organization’s various stakeholders.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
71) The third step of the decision-making process involves selecting a preferred course of action.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
72) A classical decision model describes decision making within the constraints of limited information and alternatives.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
73) According to classical decision theory, managers make rational choices in a certain world because they have complete information regarding all possible alternatives and their consequences.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
74) A manager who chooses the alternative that yields the absolute best solution to a given problem is making an optimizing decision.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
75) Making decisions within the constraints of limited information and alternatives is known as bounded rationality.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
76) The behavioural decision model describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
77) The behavioural decision model describes decision making where people are assumed to act only in terms of what they perceive about a given situation.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
78) According to the behavioural decision model, competent managers⎯even with cognitive limitations⎯can make perfectly rational decisions in highly ambiguous situations.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
79) When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process, satisficing occurs.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
80) Implementation is the decision-making stage at which problem-solving actions are initiated.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
81) The lack-of-participation error refers to the failure to adequately involve those persons whose support is necessary to ensure a decision’s implementation.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
82) The failure to adequately involve the people whose support is necessary to ensure a plan’s implementation is a major reason for difficulties in the implementation stage of decision making.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
83) The final stage of the decision-making process is evaluating results.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
84) When evaluating the results of a decision or course of action, a manager needs to examine only negative consequences of the chosen course of action.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
85) In the evaluation stage of the decision-making process, a modified or new solution may need to be generated if the original solution appears to be inadequate.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
86) The decision-making process is not complete until results are evaluated.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
87) The final step in the decision-making process is ethical assessment of each step in the process.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
88) A spotlight question tests the ethics of a decision by exposing it to scrutiny through the eyes of family and community members.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
89) The four criteria against which a decision should be tested are utility, rights, justice and environment.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
90) An ethics check should address the questions: “How would I feel if my family found out about this decision?” and “How would I feel if this decision were published in the local newspaper?”
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
91) Only major managerial decisions need to meet the criteria of an ethics check.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
92) Examining the ethics of a proposed decision may result in both better decisions and the prevention of costly litigation.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
93) System 1 thinking is described as automatic, deliberate and associative.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
94) When people face complex environments and have limited information, they often use heuristics to simplify decision making.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
95) When a problem is evaluated and resolved in the positive or negative context in which it is perceived, a framing error occurs.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
96) The anchoring and adjustment bias occurs when people use information “readily available” from memory as a basis for assessing a current situation or event.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
97) The representativeness bias involves making decisions based on alterations to a previously existing value or starting point.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
98) A person decides that a group is aggressive after finding out that some members of that group are aggressive. This is an example of representativeness bias.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
99) A confirmation error occurs when focusing only on information that is consistent with a decision already made.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
100) Escalating commitment refers to the tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
101) Avoiding the escalation of commitment trap in decision making can be accomplished by setting advance limits on involvement, determining why the particular course of action is right, keeping in mind the costs involved, and not letting others influence your decision.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
102) Big-C creativity occurs when average people come up with unique ways to deal with daily events and situations.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
103) Little-C creativity occurs when average people come up with unique ways to deal with daily events and situations.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
104) The first step in design thinking is visualizing and brainstorming potential solutions in collaboration with others.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
105) Creative people are good at making connections among seemingly unrelated facts or events.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloomcode: Knowledge
Difficulty: Easy
AACSB: Analytic
106) Creativity potential blossoms best when it has management support and the right organizational culture.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloomcode: Knowledge
Difficulty: Easy
AACSB: Analytic
107) Task expertise, task motivation, and time management are personal creativity drivers.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
108) One of the most important creativity skills is the willingness to question assumptions.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
109) Some of the characteristics that describe creative people are resourceful, systematic, and intuitive in problem solving, think outside the box, transfer learning from one setting to others.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
110) Two of the situational creativity drivers are management support and organizational culture.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
111) The three stages in integrative thinking are to articulate and examine models, explore new possibilities and assess prototypes.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
Question type: Multiple Choice
112) ___ is the ability to utilize computers and information technology to locate, retrieve, evaluate, organize, and analyze information for decision making.
a) Intellectual capital
b) Computer competency
c) Information competency
d) Knowledge management
e) Decision support management
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
113) The ability to evaluate and examine information to make actual decisions and solve real problems is known as ___ competency.
a) innovation
b) analytical
c) technological
d) interpersonal
e) information
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
114) Charlie is enjoys working with all kinds of technological devices and is able to learn their functions quickly and can spot new ways to apply the technology to various functions at work. Which of the following can best describe Charlie’s ability?
a) technological competency
b) business competency
c) information competency
d) entrepreneurial competency
e) analytical competency
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
115) ___ is ___ made useful and meaningful for decision making.
a) Information; understandability
b) Timeliness; data
c) Data; information
d) E-commerce; information
e) Information; data
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
116) Which of the following is not a characteristic of useful information?
a) The information is available when needed.
b) The information is accurate and reliable.
c) The information is complete and sufficient for the task at hand.
d) The information is appropriate for the task at hand.
e) The information will enable the user to be involved in making decisions and increase the likelihood of his/her commitment to those decisions.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
117) Useful information meets the test of five criteria. These criteria are ___.
a) timeliness, quantity, completeness, relevance, and understandability
b) timeliness, quality, completeness, relevance, and understandability
c) timeliness, quality, completeness, relevance, and acceptance
d) timeliness, quantity, quality, completeness, and acceptance
e) timeliness, completeness, relevance, applicability, and acceptance
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
118) ___ meets the specific information needs of managers as they make decisions on a daily basis.
a) An extranet.
b) An intranet.
c) A management information system.
d) An enterprise-wide network.
e) An inter-organizational information system.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
119) ___ use the latest in information technology to collect, organize, and distribute data in such a way that they become meaningful as information.
a) Network portals
b) Management information systems
c) Computer networks
d) Systems analysis packages
e) Information control portals
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
120) The advantages of appropriate management information system (MIS) utilization include all of the following except
a) allows for better and timelier access to useful information, as well as for involving more people in the planning process.
b) allows for more ongoing and informed communication among all parts of the organization, helping ensure better coordination and integration.
c) allows for better and more frequent communication with all organization members and key environmental stakeholders.
d) allows for greater reliance on computer and information technology in addressing the challenges faced by an organization.
e) allows for more immediate and complete measurement of performance results, thereby allowing real-time solutions to performance problems.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
121) The term ___ describes the systematic evaluation and analysis of information to make decisions.
a) tactics
b) assay
c) heuristics
d) analytics
e) strategy
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
122) Which of the following is not one of the Five “Vs” of Big Data?.
a) value
b) veracity
c) volume
d) variety
e) variable
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
123) ___ is the process of tapping information systems to extract and report data in organized ways that are helpful to decision makers.
a) Analytics
b) Strategic opportunism
c) Satisficing
d) Heuristics
e) Business intelligence
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
124) One of the current trends in business intelligence is data visualization in the form of ____________.
a) data launching
b) executive dashboards
c) executive panels
d) performance metrics
e) intuitive dashboards
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
125) ___ is the process of identifying a discrepancy between an actual and a desired state of affairs, and then taking action to resolve it.
a) Error mapping
b) Scenario planning
c) Problem solving
d) Risk taking
e) Opportunity seeking
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
126) Problem solving and decision making are dependent on quality ___ being available to the right people at the right time.
a) products
b) services
c) information
d) control
e) goals
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
127) A company purchased a new computer system for the purpose of streamlining the processing of customer orders. The objective is to decrease processing time so that 98% of all orders are shipped within 24 hours of being received. After operating the new system for three months, it was discovered that the company hipped 90% of orders with 24 hours in the first month, 94% in the second month and 91% of all orders were shipped within 24 hours. This situation is an example of a(n) ___.
a) performance opportunity
b) ethical situation
c) performance threat
d) work process weakness
e) planning weakness
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
128) A ___ occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated.
a) performance issue
b) performance deficiency
c) performance opportunity
d) decision situation
e) management challenge
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
129) Managers who are passive in gathering information and are unwilling to make decisions and deal with problems are referred to as problem ___.
a) seekers
b) creators
c) defenders
d) avoiders
e) claimers
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
130) An IT program manager realized that there were a few defects in the company’s new application. The defects were not discovered until after a significant number of packages had been shipped to customers. The IT manager has decided to assume that the customers will likely not use the defective application and so therefore no harm will be done. As a result the IT manager decides that it will be more costly and take considerable effort to rectify the problem, and so decides to do nothing. This manager is a problem ___.
a) seeker
b) creator
c) defender
d) avoider
e) claimer
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
131) Managers who are regarded as problem solvers
a) will try to solve problems only when they are forced by the situation.
b) are unwillingly gather information, not wanting to make decisions or deal with problems.
c) will anticipate performance threats and opportunities and take action to gain an advantage.
d) will ignore information that would otherwise signal the presence of a performance threat.
e) actively process information and constantly look for problems to solve.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
132) The marketing manager of a firm receives a number of complaints from customers about late delivery of products. After reviewing the complaints, the manager takes appropriate measures to rectify the issues in the supply chain. This manager is a ___.
a) problem defender
b) problem avoider
c) problem claimer
d) problem seeker
e) problem solver
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
133) Which of the following traits is associated with problem seekers?
a) They are passive in information gathering, not wanting to make decisions or deal with problems.
b) They are willing to make decisions and try to solve problems, but only when forced by the situation.
c) They ignore information that would otherwise signal the presence of a performance opportunity or threat.
d) They are reactive in gathering information to solve problems after, but not before, they occur.
e) They anticipate performance threats and opportunities and take action to gain an advantage.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
134) A medical officer in a multispecialty hospital has made it part of the job to regularly review customer service procedures in order to highlight any opportunities for improvement. If there are any deficiencies remedial measures are put into place as soon possible. This trait of the medical officer show that the manager is a ___.
a) problem defender
b) problem avoider
c) problem claimer
d) problem seeker
e) problem solver
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
135) Which of the following best describes systematic thinking?
a) Systematic thinking is often imaginative and works best in situations where facts are limited, and few decision precedents exist.
b) A quick and broad evaluation of the situation and the possible alternative courses of action is undertaken.
c) It makes managers deal with many aspects of a problem at once and consider hunches based on past experience.
d) Systematic thinking makes a person approach a problem in a rational, step-by-step, analytical fashion.
e) With systematic thinking it is always possible for the firm’s top managers to make systematic fact-based decisions.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
136) Addison takes time to examine problems and break them down into segments to see where the actual problems lie and how they can be solved. Addison divides the problems into smaller components and then addresses them in a logical and integrated fashion. This approach to problem solving is an example of ___.
a) problem seeking
b) systematic thinking
c) multidimensional thinking
d) intuitive thinking
e) strategic opportunism
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
137) Dr. Morales initially conducts basic medical tests for all patients. Once the test results have been reviewed Dr. Morales suggests more specific tests for the patients. Before suggesting any course of treatment all reports and results are re-examined and reviewed. This type of problem solving in a step-by-step fashion is known as ___ thinking.
a) heuristic
b) systematic
c) intuitive
d) spontaneous
e) flexible
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
138) Systematic thinkers are likely to ___.
a) make a plan for solving a problem but explore and abandon alternatives very quickly
b) break a complex problem into smaller components; make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion
c) broadly and quickly evaluate the problem situation and the possible alternative course of action
d) rely on nonverbal cues and hunches to solve problems
e) deal with many aspects of a problem simultaneously, consider hunches, and jump quickly from one issue to another
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
139) Intuitive thinkers are likely to do all of the following except
a) broadly and quickly evaluate a problem situation.
b) explore and abandon alternatives very quickly.
c) consider a number of alternatives and options simultaneously.
d) consider hunches and jump quickly from one issue to another.
e) solve problems in a step-by-step fashion.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
140) Managers should use ___ in situation with high uncertainty and where limited facts and few decision precedents exist.
a) systematic thinking
b) intuitive thinking
c) the nominal group technique
d) the brainstorming technique
e) decision tree analysis
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
141) Finley manages a bake shop and has noticed that cupcakes are disappearing at a faster rate than the sales reflect. This problem does not seem to be happening with any of the other products the shop sells. Finley has also noticed that the newest employee disappears at break time and for long periods of time. Finley follows the new employee to the parking lot and observes the employee taking three cupcakes from a paper bag and eating them on the spot. Finley is demonstrating _____________ thinking.
a) multidimensional
b) strategic
c) cognitive
d) intuitive
e) sensation
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
142) Casey is a manager at a mining firm and is good at handling crisis situations. Casey is spontaneous in problem solving, and typically provides alternative courses of action within a matter of a couple of days of identifying a problem. This type of problem-solving approach shows that Casey is a(n) ___ thinker.
a) systematic
b) analytical
c) intuitive
d) systemic
e) lateral
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
143) ___ is the capacity to view many problems at once, in relationship to one another, and across long and short time horizons.
a) Intuitive thinking
b) Expert thinking
c) Strategic thinking
d) Multidimensional thinking
e) Alternative thinking
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
144) Cassidy has been managing a local restaurant for a number of years. The restaurant’s head office has noticed that Cassidy often deals with many issues and problems simultaneously such as staff shortages, issues with product delivery and general restaurant maintenance. Cassidy is also able to map many problems into one network. Recently Cassidy devised a staff scheduling process that helped to ensure that there would always be sufficient staff working, while at the same time not having too many staff working and doing nothing. This process will save the company considerable time and money for quite some time. Cassidy’s displays ___ thinking.
a) critical
b) multidimensional
c) lateral
d) intuitive
e) heuristic
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
145) Which of the following skills refers to the ability to remain focused on long-term objectives while being flexible enough to resolve short-term problems and opportunities in a timely manner?
a) information competency
b) strategic opportunism
c) systematic thinking
d) management analytics
e) performance planning
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
146) Kadin has the ability to remain focused on long-term objectives, such as the company’s goal towards long-term environmental protection measures. At the same time Kadin is able to recognize and resolve short-term problems and issues, such as a recent vacation scheduling problem among the staff. These skills have allowed Kadin to be very successful in the role of department manager. This skill set demonstrates ___.
a) technological competency
b) strategic opportunism
c) systematic thinking
d) information competency
e) intuitive thinking
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
147) ___ tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving.
a) Intuitive feelers
b) Intuitive thinkers
c) Sensation feelers
d) Intuitive seekers
e) Sensation thinkers
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
148) Kerry emphasizes the impersonal, tends to take a realistic approach to problem solving, and prefers facts and clear goals. Kerry likes to be in situations of high control and prefers problem solving in a certain environment. Kerry can be regarded as a(n) ___.
a) sensation feeler
b) idealistic thinker
c) sensation thinker
d) intuitive feeler
e) intuitive thinker
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
149) The ___ are comfortable with unstructured situations, and they tend to be idealistic and prone toward intellectual and theoretical positions.
a) intuitive feelers
b) intuitive thinkers
c) sensation feelers
d) sensation seekers
e) sensation thinkers
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
150) Morgan tends to emphasize the impersonal and takes a logical approach to problem solving, and usually avoids details. Morgan is prone to intellectual and theoretical positions and is comfortable with unstructured situations. These traits show that Morgan is a(n) ___.
a) sensation feeler
b) idealistic thinker
c) sensation thinker
d) intuitive feeler
e) intuitive thinker
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
151) Sensation thinkers differ from intuitive thinkers as intuitive thinkers
a) are insightful and prefer broad and global issues.
b) are comfortable with abstraction and unstructured situations.
c) like hard facts, clear goals, certainty, and situations of high control.
d) tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving.
e) are open communicators and sensitive to feelings and values.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
152) ___ are insightful, comfortable with intangibles, and value flexibility and human relationships.
a) Sensation feelers
b) Intuitive thinkers
c) Sensation seekers
d) Sensation thinkers
e) Intuitive feelers
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
153) Oakley values flexibility and human relations while making decisions and prefers broad and global issues rather than narrow and specific issues. Oakley tends to avoid details during problem solving and is comfortable with intangibles. These traits demonstrate a(n) ___.
a) sensation feeler
b) idealistic thinker
c) sensation thinker
d) intuitive feeler
e) intuitive thinker
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
154) ___ are open communicators, tend to be realistic, and emphasize both analysis and human relations.
a) Intuitive feelers
b) Intuitive thinkers
c) Sensation feelers
d) Intuitive seekers
e) Sensation thinkers
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
155) Bao focuses on facts and tends to take a realistic approach to problem solving and emphasizes analysis. Bao is an open communicator, responsive to feelings, and values human relations. These characteristics show that Bao is a(n) ___.
a) sensation thinker
b) intuitive feeler
c) intuitive thinker
d) sensation feeler
e) idealistic thinker
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
156) Problems that are familiar, straightforward, and clear with respect to information needs are called ___ problems.
a) ambiguous
b) undefined
c) structured
d) framing
e) uncertain
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
157) Parker has been asked to prepare a report comparing the profits the company earned in the current financial year in its domestic market to the previous year’s report for the same market. This is a(n) ___ problem.
a) unstructured
b) structured
c) ambiguous
d) framing
e) uncertain
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
158) A ___ decision applies a solution from past experience to a routine problem.
a) unique
b) nonprogrammed
c) tactical
d) nonrecurring
e) programmed
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
159) Hadley manages the customer service division and usually makes decisions to resolve customer complaints based on previous experiences and the standard procedures set by the company. The type of decision being made by Hadley is a(n) ___ decision.
a) unstructured
b) tactical
c) nonrecurring
d) programmed
e) unique
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Reflective Thinking
160) Which of the following is true of unstructured problems?
a) They are clear with respect to information needs.
b) They can be resolved using readily available solutions from past experiences.
c) They can be resolved with a high degree of certainty.
d) They are ambiguous and contain information deficiencies.
e) They are routine and occur over and over again.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
161) Sumaira has been asked to prepare a report on the best advertising campaign for a new product the company is launching in a new market. Because of the nature of the product and the demographic being targeted the company wants Sumaira to come up with a new and unique campaign, with a focus on social media. The type of problem being faced by Sumaira is a(n) ___ problem.
a) integrated
b) anticipated
c) computational
d) certain
e) unstructured
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
162) A(n) ___ is made when a new and unfamiliar problem arises and a novel solution is crafted to meet the demands of the unique situation at hand.
a) programmed decision
b) nonprogrammed decision
c) structured decision
d) unstructured decision
e) difficult decision
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
163) ___ are full of ambiguities and information deficiencies, and require ___ that craft novel solutions to meet the demands of a unique situation
a) Structured problems; programmed decisions
b) Structured problems; nonprogrammed decisions
c) Unstructured problems; nonprogrammed decisions
d) Unstructured problems; programmed decisions
e) Structured problems; crisis decisions
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
164) An unexpected problem that can lead to disaster if not resolved quickly and appropriately is known as ___.
a) a structured problem
b) an unstructured problem
c) a nonprogrammed decision
d) a programmed decision
e) a crisis
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
165) A ___ decision occurs when an unexpected problem arises that can lead to disaster if not resolved quickly and appropriately.
a) nonprogrammed
b) strategic
c) crisis
d) programmed
e) standard
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
166) Terrorism in the post-9/11 world, ethical scandals, outbreaks of workplace violence, information technology failures, and man-made environmental disasters are all examples of ___ problems that organizations and managers face.
a) unstructured
b) structured
c) crisis
d) non-programmed
e) programmed
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
167) ___ refers to the preparation of managers and others to deal with unexpected high-impact events that threaten an organization’s well-being.
a) Fiscal responsibility
b) High context planning
c) Relief anticipation management
d) Impact avoidance goal setting
e) Crisis management
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
168) Which of the following is not a rule or guideline for crisis management?
a) Take the time to understand what is going on with the crisis situation and the conditions under which the crisis must be resolved.
b) Attack the crisis as quickly as possible to keep it as small as possible.
c) Know when to back off and wait for a better opportunity to make progress with the crisis.
d) Never “fight fire with fire” by starting another crisis to get people’s attention.
e) Respect the danger of the unfamiliar and value the sceptic.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
169) A(n) ___ environment offers complete information on possible action alternatives and their consequences.
a) uncertain
b) speculative
c) risk
d) certain
e) unanticipated
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
170) To assist in their promotions and appraisals, Ellery analyzed and graded the previous year’s team members performance. Ellery is sure of the decisions made on promotions, salary raises and appraisals because all the factual information was used in the decision process. This type of environment is referred to as a(n) ___.
a) uncertain environment
b) risk environment
c) certain environment
d) threat environment
e) unanticipated environment
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
171) A(n) ___ environment lacks complete information on alternatives and their consequence. However this environment does offer “probabilities” of the likely outcomes for possible action alternatives.
a) uncertain
b) secure
c) risk
d) certain
e) definite
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
172) The manager at a shoe retail store is trying to estimate how much stock to order for the current spring season based on last spring's outcomes. The manager is operating under what kind of decision-making condition?
a) reliability
b) risk
c) uncertainty
d) certainty
e) crisis
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
173) Chikashi, a manager at a hotel, decided to launch a new type of cuisine in the hotel’s restaurant because the restaurant was incurring losses due to negative feedback on its existing cuisine. Chikashi had to make a decision immediately to improve the situation and was aware of the possible consequences of this action. Chikashi had to make the decision in a(n) ___ environment.
a) uncertain
b) risk
c) certain
d) secure
e) anticipated
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
174) A(n) ___ environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.
a) anticipated
b) risk
c) certain
d) threat
e) uncertain
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
175) Taylor is assigned the task of marketing a new experimental drug to consumers in a developing country. However, Taylor is not aware of the potential side-effects of the drug. Moreover, the demand for this drug in that developing country is completely unknown, nor can probabilities be assigned to the likely outcomes of the marketing strategies to sell this drug. This decision-making environment can be referred to as a(n) ___.
a) uncertain environment
b) risk environment
c) certain environment
d) threat environment
e) unanticipated environment
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
176) The ideal, but seldom achieved, condition for managerial problem solving is characterized by ___.
a) low risk, because managers seek little stimulation
b) high risk, because that is when high profits are possible
c) uncertainty, because that offers the greatest chance for creativity
d) normality, because that is the condition under which all the business school principles work
e) certainty, because the manager simply has to locate the alternative offering the best solution
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
177) The customer service manager for The Keg is authorized to distribute dry-cleaning vouchers to customers who complain about spilled drinks on their clothes during their dining experience in the restaurant. This is an example of a ___ decision to a(n) ___ problem.
a) nonprogrammed; routine
b) nonprogrammed; unstructured
c) nonprogrammed; technical
d) programmed; exclusive
e) programmed; structured
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
178) The ___ involves a set of activities and events that begins with identification of a problem, includes making a decision, and ends with the evaluation of results.
a) control process
b) organizing process
c) leading process
d) decision-making process
e) negotiation process
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
179) Decision making is a ___ process that begins with ___ and ends with ___.
a) Five-step; identifying and defining the problem; evaluating results
b) Five-step; identifying and defining the problem; ethical reasoning
c) Four-step; identifying and defining the problem; implementing the solution
d) Six-step; generating alternative solutions; evaluating the results
e) Six-step; identifying and defining the problem; ethical reasoning
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
180) Which of the following is the first step in a decision-making process?
a) generating alternative solutions
b) evaluating results
c) evaluating alternative solutions
d) identifying and defining a problem
e) choosing a preferred course of action
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
181) Which of the following is a common mistake that can occur in the first step of decision making?
a) choosing the first alternative that gives a satisfactory solution
b) abandoning the search for alternatives too quickly
c) lack-of-participation error
d) focusing on symptoms instead of causes
e) not measuring the performance results
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
182) Adara does not seem to be as productive as normal and the manager is concerned. The manager wants to talk to Adara and solve the problem. Which of the following is the first step the manager should take in the decision-making process?
a) Generate and evaluate alternative solutions to improve her performance.
b) Choose a preferred course of action for performance improvement.
c) Identify and define the problem that is causing the productivity issues.
d) Talk to Adara’s family.
e) Evaluate solutions before consulting Adara.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
183) A key aspect of ___ involves clarifying goals by determining exactly what a decision should accomplish.
a) evaluation of solutions
b) implementation of solutions
c) problem identification and definition
d) generation of solutions
e) choosing a preferred solution
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
184) Stating a problem as the need to “build a better mousetrap” instead of the need to “get rid of mice” is an example of which type of error in identifying and defining a problem?
a) choosing the wrong problem to deal with
b) focusing on symptoms instead of causes
c) defining a problem too broadly or too narrowly
d) selective perception
e) doing the routine rather than the unexpected
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
185) A production manager is trying to solve a problem that has resulted in defective products and understands that the problem is due to a technical failure which must be corrected immediately to avoid further loss. The next step in the manager’s decision-making process after collecting all the details regarding the problem is to
a) choose a preferred course of action.
b) evaluate the implemented solution.
c) implement the decision.
d) define the problem.
e) generate and evaluate alternative solutions.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
186) ___ is the decision-making stage at which people assemble the facts and information that will be helpful for problem solving.
a) Identification and problem definition
b) Generation and evaluation of alternative courses of action
c) Selection of the preferred course of action and making the “ethics double-check”
d) Implementation of the decision solution
e) Evaluation of results
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
187) Comparing the costs of implementing an alternative with its expected benefits is called a(n) ___.
a) inventory of alternatives
b) cost-benefit analysis
c) decision matrix
d) payoff table
e) chart of probabilities
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
188) Which of the following features will likely prevent the second step of the decision-making process from being effective?
a) The pros and cons of possible alternative courses of action should be identified.
b) Bringing more people into the decision process adds information and perspective to problem solving.
c) Decisions are only as good as the quality of alternatives that are considered.
d) The search for alternatives should be completed quickly.
e) Alternatives should meet ethical standards that are acceptable to the organization’s various stakeholders.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
189) Typical criteria for evaluating alternative solutions include all of the following except
a) benefits and costs
b) timeliness
c) acceptability
d) ease of implementation
e) ethical soundness
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
190) The third step of the decision-making process involves ___.
a) generating alternative solutions and evaluating them
b) selecting a preferred course of action
c) implementing the solution
d) gathering information, processing information, and deliberating
e) evaluating the results
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
191) A classical decision model differs from a behaviour decision model in that the classical model
a) assumes that people act with only partial knowledge about the available action alternatives and their consequences.
b) describes decision making with limited information and alternatives.
c) recognizes cognitive limitations to our human information-processing capabilities.
d) describes how many decisions get made in the ambiguous and fast-paced problem situations.
e) assumes that the choice of preferred course of action is made by a decision maker who is fully informed about all possible alternatives.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
192) The ___ describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences.
a) classical decision model.
b) administrative decision model.
c) behavioural decision model.
d) bounded rationality decision model.
e) political decision model.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
193) Which of the following describes decision making with complete information?
a) classical decision model
b) satisficing decision
c) bounded rationality
d) behavioural decision model
e) cognitive limitation
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
194) A(n) ___ decision chooses the alternative that gives the absolute best solution to a problem.
a) satisficing
b) intuitive
c) optimizing
d) experimental
e) heuristic
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
195) Devon, a manager at an IT firm, likes to focus on facts when making decisions. When faced with a well-defined problem and all the information regarding the possible action alternatives as well as their consequences is available, Devon is most likely to make a(n) ___ decision that gives the best possible solution for a problem.
a) intuitive
b) optimizing
c) satisficing
d) heuristic
e) experimental
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
196) Which of the following describes making decisions within the constraints of limited information and alternatives?
a) decision optimization
b) management analytics
c) bounded rationality
d) classical decision model
e) business intelligence
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
197) The ___ describes decision making where people are assumed to act only in terms of what they perceive about a given situation.
a) executive decision model.
b) personal decision model.
c) biased decision model.
d) behavioural decision model.
e) descriptive decision model.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
198) Which of the following recognizes that there are cognitive limitation on a person’s information-processing capabilities?
a) classical decision model
b) certain environment
c) optimizing decision
d) behavioural decision model
e) unstructured environment
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
199) Drew is an operations manager with an approved budget of $555,000 to buy four new machines which will increase production by 15%. After seeing what the suppliers had to offer, Drew quickly realized that the model that would best suit the company’s needs was very expensive and therefore only three machines could be purchased. In an attempt to purchase the fourth machine Drew requested a budget increase and was denied. Drew then purchased only the three machines. This is an example of ___.
a) evaluating results
b) bounded rationality
c) rational decision making
d) classical decision model
e) cost benefit analysis
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
200) When a manager chooses the first satisfactory alternative that comes to their attention during the decision-making process, ___ occurs.
a) rationalization
b) intuition
c) satisficing
d) optimization
e) utilitarianism
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
201) The ___ is particularly useful in describing how people make decisions under conditions of risk and uncertainty.
a) classical decision model
b) executive decision model
c) behavioural decision model
d) descriptive decision model
e) political decision model
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
202) Cassidy is not keen on collecting facts and information while solving problems and is more spontaneous in decision making and usually chooses the first possible alternative to solve a problem. The type of decision being made in such situations is known as a(n) ___ decision.
a) absolute best
b) satisficing
c) conditional
d) optimizing
e) fully informed
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
203) ___ is the decision-making stage at which problem-solving actions are initiated.
a) Identification and problem definition
b) Solution generation and evaluation
c) Solution selection and “ethics double-check”
d) Implementation
e) Evaluation
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
204) ___ is failure to involve in a decision the persons whose support is needed to implement it.
a) Framing error
b) Lack-of-participation error
c) Bounded rationality
d) Confirmation error
e) Strategic opportunism
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
205) The failure to adequately involve the people whose support is necessary to ensure a plan’s implementation is a major reason for difficulties in the ___ stage of decision making.
a) identification and problem definition
b) solution generation and evaluation
c) solution selection and “ethics double-check”
d) implementation
e) evaluation
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
206) Corey has been assigned to implement performance improvement procedures in the organization and is nearing the final stage of the decision-making process. In order to make sure that the performance improvement procedures that have been implemented have been effective, Corey should ___.
a) analyze the performance improvement procedures
b) identify and define the factors affecting performance
c) generate and evaluate alternative course of action
d) choose a preferred course of action
e) evaluate the results
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
207) Which of the following does not accurately describe the evaluation of results in the decision-making process?
a) The decision-making process is not complete until results are evaluated.
b) The process must be renewed when results are not achieved.
c) Only negative consequences of the chosen course of action need to be examined.
d) Evaluation is made easier if the solution involves clear objectives with measurable targets and timetables.
e) A modified or new solution may need to be generated if the original solution appears to be inadequate.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
208) After purchasing new computers for the department, Blair is comparing the performance of the new computers to the computers they replaced. Which stage of the decision-making process is Blair carrying out?
a) Generate and evaluate alternative courses of action.
b) Identify and define the problem.
c) Evaluate results.
d) Implement the decision.
e) Decide on a preferred course of action.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
209) Brady evaluated seven different computer models and decided that the Dell model was the best choice for the company’s purposes. After obtaining permission, Brady ordered the computers from a reputable company. Which stage of the decision-making process is Blair carrying out?
a) Generate and evaluate alternative courses of action.
b) Identify and define the problem.
c) Evaluate results.
d) Implement the decision.
e) Decide on a preferred course of action.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
210) The decision-making process ends with the
a) choice of a preferred course of action.
b) evaluation of implemented solutions.
c) implementation of the decision.
d) ethical reasoning assessment.
e) generation of alternative solutions.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
211) Any decision should meet the ___.
a) ethics double-check
b) bounded rationality limitations
c) intellectual capital requirements
d) group decision-making criteria
e) creativity guidelines
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
212) Which of the following statement does not accurately describe an attribute or feature of ethical decision making?
a) The “ethics double-check” should address the question: “How would I feel if my family found out about this decision?”
b) The “ethics double-check” should address the question: “How would I feel if this decision were published in the local newspaper?”
c) The “ethics double-check” should be done during step 3 of the decision-making process.
d) Any discomfort in answering the “ethics double-check” questions signifies that the decision may have ethical shortcomings.
e) Only major managerial decisions need to meet the criteria of the “ethics double-check.”
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
213) Examining the ___ a proposed decision may result in both better decisions and the prevention of costly litigation.
a) implementation strategy for
b) ethical reasoning of
c) expected results of
d) required resources for
e) top management support for
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
214) Which of the following questions does not address the ethical criteria for decision making that managers should use?
a) Does the decision satisfy all constituents or stakeholders?
b) Does the decision respect the rights and duties of everyone?
c) Does the decision fulfill the organization’s strategic objectives?
d) Is the decision consistent with the canons of justice?
e) Is the decision consistent with my responsibilities to care?
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
215) When people face complex environments and have limited information, they often use simplifying strategies for decision making. These simplifying strategies are known as ___.
a) uncertainty reduction
b) heuristics
c) optimizing
d) rationalization
e) work simplification
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
216) When a problem is evaluated and resolved in the positive or negative context in which it is perceived, a(n) ___ occurs.
a) lack-of-participation error
b) escalation error
c) framing error
d) group decision error
e) satisficing error
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
217) Which statement about heuristics is correct?
a) The availability bias occurs when people use information from memory as a basis for assessing a current situation or event.
b) The representativeness bias occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences.
c) The anchoring and adjustment bias involves making decisions based on alterations to a previously existing value or starting point.
d) all of the above
e) none of the above
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
218) Catalina, the manager of a law firm, makes a decision about the pay raise of the firm’s interns based only on their current salaries. This type of decision making can lead to ___.
a) a lack-of-participation error
b) availability bias
c) representativeness bias
d) a framing error
e) a confirmation error
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
219) The ___ bias occurs when people use information “readily available” from memory as a basis for assessing a current situation or event.
a) representativeness
b) availability
c) escalation
d) satisficing
e) anchoring and adjustment
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
220) The ___ bias occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences.
a) representativeness
b) availability
c) escalation
d) satisficing
e) anchoring and adjustment
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
221) The ___ bias involves making decisions based on alterations to a previously existing value or starting point.
a) representativeness
b) availability
c) escalation
d) satisficing
e) anchoring and adjustment
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
222) The ___ occurs when decisions are influenced by inappropriate allegiance to a previously existing value or starting point.
a) confirmation error
b) lack-of-participation error
c) representativeness bias
d) anchoring and adjustment bias
e) availability bias
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
223) The ___ bases a decision on recent information or events.
a) framing error
b) availability bias
c) representativeness bias
d) confirmation error
e) anchoring bias
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
224) Based on recollection of a recent product failure, the manager of a company decides not to invest in a new product, even though the readily available information is infallible and irrelevant. This is an example of ___.
a) a confirmation error
b) a framing error
c) availability bias
d) an escalating commitment
e) anchoring bias
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
225) The ___ occurs when people assess likelihood of something happening based on its similarity to a stereotyped set of occurrences.
a) availability bias
b) lack-of-participation error
c) representativeness bias
d) confirmation error
e) adjustment bias
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
226) Harper, who leads the design team in an automobile firm, decides not to invest in a particular technology that helps to improve the fuel efficiency of cars, as other automobile companies who had invested in similar technologies had not achieved much success. The type of decision-making error made by Harper is known as ___.
a) availability bias
b) confirmation error
c) adjustment bias
d) lack-of-participation error
e) representativeness bias
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
227) Hunter is a very successful car salesperson who generates considerable revenue for the dealership. The general manager is impressed with Hunter’s performance and decides to hire Hunter’s cousin as a salesperson, assuming they will be as successful as Hunter in selling cars. However, Hunter’s cousin fails to live up to expectations. The type of decision-making error made by the general manager is known as ___.
a) availability bias
b) confirmation error
c) adjustment bias
d) lack-of-participation error
e) representativeness bias
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
228) Jordan has had problems in the past with employees who smoke because they always took more than fifteen minutes on their breaks. During an interview with a potential new employee, Jordan notices that the candidate smells of smoke. Jordan does not know definitively if the candidate smokes or if they walked through a group of smokers on the way to the interview. Jordan decided not to hire the candidate even though the candidate had the necessary qualifications and effectively answered all of the interview questions. This is an example of ___.
a) availability bias
b) a framing error
c) anchoring and adjustment bias
d) representation bias
e) a confirmation error
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
229) Rajiv was asked to prepare a report on the estimated costs of introducing a new product into the market. Rajiv estimated the costs by slightly increasing the costs the company had incurred while introducing a product into the market the previous year. This might not be accurate, because a number of other factors should also have been considered while calculating the estimated costs for the current year. This type of decision-making error is known as ___.
a) availability bias
b) confirmation error
c) representativeness bias
d) anchoring and adjustment bias
e) lack-of-participation error
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
230) A(n) ___ occurs when focusing only on information that validates a decision already made.
a) confirmation error
b) escalating commitment
c) lack-of-participation error
d) anchoring and adjustment bias
e) framing error
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
231) The tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working is known as ___.
a) cost-benefit impact
b) heuristics
c) escalating commitment
d) escalating cost impact
e) satisficing
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
232) ___ is the continuation of a course of action even though it is not working.
a) Confirmation error
b) Escalating commitment
c) Lack-of-participation error
d) Framing error
e) Strategic opportunism
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
233) Ryan, the marketing manager at a company, decides to invest more money to promote a technology that has earlier failed at the market due to its technical incompetency. Ryan is unwilling to accept that the product lacks the competitive edge to survive in the market and is not ready to admit any mistakes and applies more resources to pursue a course of action that is not working. This type of decision-making trap is known as ___.
a) confirmation error
b) escalating commitment
c) framing error
d) strategic opportunism
e) lack-of-participation error
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
234) Ludo authorizes the expenditure of an additional $200,000 for the production of a new product despite mounting concerns from top management that it will be unprofitable. Ludo’s behaviour illustrates the phenomenon of ___.
a) confirmation bias
b) representation bias
c) anchoring bias
d) availability bias
e) escalation of commitment
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
235) The generation of a novel idea or unique approach to solving performance problems or exploiting performance opportunities is ___.
a) heuristics
b) satisficing
c) creativity
d) cost benefit analysis
e) diversity
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
236) Big-C creativity occurs when
a) extraordinary things are done by average people.
b) ordinary things are done by exceptional people.
c) average people come up with unique ways to deal with issues.
d) extraordinary things are done by exceptional people.
e) ordinary things are done by average people.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
237) ___ unlocks creativity in decision making through a process of experiencing, ideation, and prototyping.
a) Problem solving
b) Escalating commitment
c) Business Intelligence
d) Design thinking
e) Strategic opportunism
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
238) The ideation step in design thinking involves
a) accepting problems as they are delivered.
b) defining problems by research and observation.
c) visualizing and brainstorming potential solutions in collaboration with others.
d) looking for answers to assigned problems through standard procedures.
e) testing and modifying the potential solution over and over to achieve the best outcome.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
239) The three-component model of creativity that the text defines as personal creativity drivers in organizations is
a) task expertise, task motivation, creativity skills
b) task expertise, task completion, creativity skills
c) creativity skills, goal oriented, task completion
d) creativity skills, task expertise, goal oriented
e) external rewards, personal ambition, management support
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
240) Situational creativity drivers in organizations where people, management, and traditional organizational environments all mix include
a) group creativity skills, management support, organizational culture.
b) group creativity skills, management support, heuristics.
c) management support, organizational culture, goal orientation.
d) management support, organizational culture, task expertise.
e) group creativity skills, management support, task expertise.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
241) In the context of individual and group decision making, the “right” decision method is the one that ___.
a) provides for a timely decision
b) provides for a quality decision
c) promotes the commitment of people who will be involved in implementing the decision
d) a and b
e) a, b, and c
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
242) The potential advantages of group decision making include all of the following except
a) it makes greater amounts of information, knowledge, and expertise available to solve problems.
b) it increases the number of action alternatives that are examined.
c) it increases the likelihood of minority domination.
d) it increases the understanding and acceptance of outcomes by members.
e) it increases the commitment of team members to implementing the final plans.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
Question type: Essay
243) Briefly describe what internal information and external information are and how they are used in organizations?
Within organizations, people need vast amounts of internal information to make decisions and solve problems in their daily work. They need information from their immediate work setting and from other parts of the organization. Internal information flows downward in such forms as goals, instructions, and feedback; it flows horizontally in ways that assist in cross-functional coordination and problem solving; and it flows upward in such forms as performance reports, suggestions for improvement, and even disputes. The ability of technology to gather and move information quickly within an organization can be a great asset to decision making. It helps top levels stay informed while freeing lower levels to make speedy decisions and take the actions they need to best perform their jobs.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
244) List and briefly describe the five criteria that to determine if available data is useful and meaningful for decision making
1. Timely—The information is available when needed; it meets deadlines for decision making and action.
2. High quality—The information is accurate, and it is reliable; it can be used with confidence.
3. Complete—The information is complete and sufficient for the task at hand; it is as current and up to date as possible.
4. Relevant—The information is appropriate for the task at hand; it is free from extraneous or irrelevant material.
5. Understandable—The information is clear and easily understood by the user; it is free from unnecessary detail.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
245) What are data mining and Big Data? List and describe the Five “Vs” of Big Data including how each of the five “Vs” help to get the most out of data when solving problems.
The Five “Vs” are: Volume, Variety, Veracity, Velocity and Value
Volume: data must exist in ‘super-large’ quantities. With the right software it becomes increasingly easy to collect and handle big data.
Variety: Technology makes it easy to collect and take advantage of data from many different sources. This variety of data makes arriving at the correct or best decision easier.
Veracity: Before it can be used for decision making, data must be tested for its veracity or legitimacy.
Velocity: Big data must reflect information in real time.
Value: Big data must be worth the time, effort and resources that go into data collection. Without value, an appropriate or correct decision cannot be achieved.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Synthesis
Difficulty: Hard
AACSB: Reflective Thinking
246) Information, in more general terms, is data plus conceptual commitments and interpretations. Information is frequently data extracted, filtered or formatted in some way. When is information truly useful for management and provide an example of information for a business?
Timely—the information is available when needed; it meets deadlines for decision making and action.
High quality—the information is accurate and it is reliable; it can be used with confidence.
Complete—the information is complete and sufficient for the task at hand; it is as current and up to date as possible.
Relevant—the information is appropriate for the task at hand; it is free from extraneous or irrelevant materials.
Understandable—the information is clear and easily understood by the user; it is free from unnecessary detail.
Information is data that have been given meaning by way of context. A spreadsheet is often used to make information from the data stored within it. A good example would be an income statement for a business. It is still a list of dollar figures, but now it has a relevant context.
Learning Objective 7.1: Discuss the role of information, data, and analytics in management.
Section Reference 7.1: Information, Technology, and Management
Bloom’s: Application
Difficulty: Medium
AACSB: Reflective Thinking
247) Differentiate between programmed and nonprogrammed decisions.
Nonprogrammed decisions craft novel solutions to meet the demands of the unique situation at hand. Managers use nonprogrammed decisions to deal with unstructured problems that are new or unusual situations full of ambiguities and information deficiencies. They often involve choice of strategies and objectives in some situations of uncertainty.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
248) Provide specific examples, other than those from your textbook, of the following types of decisions, and include in your answer why your example belongs in its category:
a) Programmed decisions
b) Nonprogrammed decisions
c) Crisis
a) Programmed decisions:
absent employee
late employee
product return
angry customer
fire drill
void the cash register
b) Nonprogrammed decisions
customer fight
drunk customer
employee becoming seriously ill at work
customer injuring themselves
c) Crisis
bomb threat
wildcat strike
dangerous weather
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Evaluation
Difficulty: Hard
AACSB: Reflective Thinking
249) Explain how risk, certainty, and uncertainty influence the decisions that managers make.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Synthesis
Difficulty: Hard
AACSB: Analytic
250) Compare and contrast the four basic types of cognitive styles. Which problem-solving style is better and can team members with different problem-solving styles impact on the decision-making process?
Sensing people seek specific factual data and information from their environment, whereas intuitive people gather global or more abstract data. After gathering data, people make decisions based on their thinking or feeling. Thinking people tend to solve a problem by breaking it into logical parts and then analyzing them, whereas feeling people make decisions based on instinct.
One problem-solving style is not better than another. Many people exhibit characteristics of each style at various times and in different situations. In a project environment, it is important to achieve a balance by integrating all four psychological functions.
The particular combination of problem-solving styles of team members can affect the team process and its decisions. For example, there is likely to be more conflict and divergence in a team with three strong sensation thinkers and three intuitive feelers than if all six members have the same problem-solving style. Although different viewpoints should stimulate creativity and innovative solutions, if differences are not facilitated properly, those can also lead to conflict, which may hurt the team spirit.
Learning Objective 7.2: Identify different ways managers approach and deal with problems.
Section Reference 7.2: Problem Solving and Managerial Decisions
Bloom’s: Synthesis
Difficulty: Hard
AACSB: Reflective Thinking
251) Apply the six steps in the decision-making process to a decision that you have made or are in the process of making. By applying this model to your own decision situation, what insights do you gain regarding how effective you are as a decision maker?
Step 1: identify and define the problem. This is a stage of information gathering, information processing, and deliberation.
Step 2: generate and evaluate alternative solutions. Several potential solutions are formulated at this stage. More information is gathered, data are analyzed, and the advantages and disadvantages associated with possible alternative courses of action are identified.
Step 3: choose a preferred course of action and conduct the “ethics double-check.” In this step, a decision is made to pursue a particular course of action and the ethical implications of it are examined.
Step 4: implement the action. In this step, appropriate action plans must be established and fully implemented.
Step 5: evaluate results. Evaluation involves comparing accomplishments to objectives.
Step 6: ethical reasoning. Each step in the process should be assessed with ethical reasoning, including four ethics criteria.
The students should evaluate their own decision situation in light of the activities that occur that each step of the above process.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Evaluation
Difficulty: Hard
AACSB: Reflective Thinking
Solution:
252) How can managers ensure they are making ethical decisions?
Does the decision satisfy all constituents or stakeholders?
Does the decision respect the rights and duties of everyone?
Is the decision consistent with the canons of justice?
Is the decision consistent with my responsibilities to care?
Managers can proceed with confidence when they can answer affirmatively to these questions. Clearly, examining the ethics of a proposed decision may result in both better decisions and the prevention of costly litigation.
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
253) What is the role of ethical reasoning in the decision-making process? How can ethical reasoning be checked in decision making?
We sometimes have to take special care to stay tuned into virtues—things like fairness, kindness, compassion, and generosity—and guard against vices—things like greed, anger, ignorance, and lust. One way to check ethical reasoning in decision making is to ask and
Answer pointed questions that bring critical thinking into the process. Gerald Cavanagh and his associates, for example, suggest that a decision should test positive on these four ethics criteria.
1. Utility—Does the decision satisfy all constituents or stakeholders?
2. Rights—Does the decision respect the rights and duties of everyone?
3. Justice—Is the decision consistent with the canons of justice?
4. Caring—Is the decision consistent with my responsibilities to care?
Learning Objective 7.3: Explain the six steps in the decision-making process.
Section Reference 7.3: The Decision-Making Process
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
254) How does design thinking help in making creative decisions?
Experiencing involves defining problems by research and observation and not simply accepting them as delivered.
Ideation involves visualizing and brainstorming potential solutions in collaboration with others.
Prototyping involves testing and modifying the potential solution over and over to achieve the best outcome.
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
255) The text discusses creative decision making as more likely to occur when people involved have stronger creativity skill sets. Identify at least six of those skills listed.
Identify problems, plan, make decisions
Hold one’s ground in face of criticism
Accept responsibility for what happens
Be resourceful, even in difficult situations
Be both systematic and intuitive in problem solving
Think “outside of the box” (divergent thinking)
Synthesize and find correct answers (convergent thinking)
Use “lateral thinking,” looking at diverse ways to solve problems
Transfer learning from one setting to others
“Step back,” be objective, question assumptions
Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making.
Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Document Information
Connected Book
Management Canada 5e | Complete Test Bank
By John R. Schermerhorn Jr