robbins_mgmt10_tb_06
Management, 10e (Robbins)
Chapter 6 Managers as Decision Makers
1) Problem identification is purely objective.
Answer: FALSE
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process
2) The second step in the decision-making process is identifying a problem. Answer: FALSE
Diff: 1 Page Ref: 122
Topic: The Decision-Making Process
3) A decision criterion defines what is relevant in a decision.
Answer: TRUE
Diff: 2 Page Ref: 122
Topic: The Decision-Making Process
4) The fourth step of the decision-making process requires the decision maker to list viable alternatives that could resolve the problem.
Answer: TRUE
Diff: 1 Page Ref: 123
Topic: The Decision-Making Process
5) Once the alternatives have been identified, a decision maker must analyze each one.
Answer: TRUE
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
6) The step in the decision-making process that involves choosing a best alternative is termed implementation.
Answer: FALSE
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
7) Making decisions is with the essence of management.
Answer: TRUE
Diff: 1 Page Ref: 120
Topic: Decision-Making Styles
8) Managerial decision making is assumed to be rational.
Topic: Decision-Making Styles
9) One assumption of rationality is that we cannot know all of the alternatives. Answer: FALSE
Diff: 3 Page Ref: 124
Topic: Decision-Making Styles
10) Managers tend to operate under assumptions of bounded rationality. Answer: TRUE
Diff: 2 Page Ref: 125
Topic: Decision-Making Styles
11) Studies of the events leading up to the Challenger space shuttle disaster point to an escalation of commitment by decision makers.
Answer: TRUE
Diff: 2 Page Ref: 126
Topic: Decision-Making Styles
12) Managers regularly use their intuition in decision making.
Answer: TRUE
Diff: 1 Page Ref: 126
Topic: Decision-Making Styles
13) Rational analysis and intuitive decision making are complementary. Answer: TRUE
Diff: 2 Page Ref: 126
Topic: Decision-Making Styles
14) Programmed decisions tend to be repetitive and routine.
Answer: TRUE
Diff: 1 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
15) Rules and policies are basically the same.
Answer: FALSE
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
16) A policy is an explicit statement that tells a manager what he or she ought or ought not to do.
Topic: Types of Decisions and Decision-Making Conditions
17) The solution to nonprogrammed decision making relies on procedures, rules, and policies.
Answer: FALSE
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
18) Most managerial decisions in the real world are fully nonprogrammed. Answer: FALSE
Diff: 1 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
19) The ideal situation for making decisions is low risk.
Answer: FALSE
Diff: 2 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
20) Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes.
Answer: TRUE
Diff: 1 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
21) Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates.
Answer: FALSE
Diff: 3 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
22) Most managers have characteristics of linear thinking style decision makers. Answer: FALSE
Diff: 2 Page Ref: 131
Topic: Types of Decisions and Decision-Making Conditions
23) According to the boxed feature, "Managing Workforce Diversity," diverse employees tend to make decisions faster than a homogeneous group of employees. Answer: FALSE
Diff: 2 Page Ref: 132
Topic: Decision-Making Styles
Skill: AACSB: Multicultural and Diversity
24) The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, they fail to adequately adjust for subsequent information.
Answer: TRUE
Diff: 2 Page Ref: 133
Topic: Decision-Making Styles
25) The availability bias describes when decision makers try to create meaning out of random events.
Answer: FALSE
Diff: 2 Page Ref: 134
Topic: Decision-Making Styles
26) The sunk cost error is when decision makers forget that current choices cannot correct the past.
Answer: TRUE
Diff: 2 Page Ref: 134
Topic: Decision-Making Styles
27) Today's business world revolves around making decisions, usually with complete or adequate information, and under minimal time pressure.
Answer: FALSE
Diff: 3 Page Ref: 135
Topic: Effective Decision Making in Today's World
28) Managers need to understand cultural differences to make effective decisions in today's fast-moving world.
Answer: TRUE
Diff: 2 Page Ref: 135
Topic: Effective Decision Making in Today's World
Skill: AACSB: Multicultural and Diversity
29) Highly reliable organizations (HROs) are easily tricked by their success. Answer: FALSE
Diff: 1 Page Ref: 136
Topic: Effective Decision Making in Today's World
30) Decision making is typically described as ________, which is a view that is too simplistic.
A) deciding what is correct
B) putting preferences on paper
C) choosing among alternatives
D) processing information to completion
Answer: C
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process
31) A series of eight steps that begins with identifying a problem and concludes with evaluating the decision's effectiveness is the ________.
A) decision-making process
B) managerial process
C) maximin style
D) bounded rationality approach
Answer: A
Diff: 1 Page Ref: 121
Topic: The Decision-Making Process
32) ________ is the existence of a discrepancy between an existing and a desired state of affairs.
A) An opportunity
B) A solution
C) A weakness
D) A problem
Answer: D
Diff: 1 Page Ref: 121
Topic: The Decision-Making Process
33) In identifying the problem, a manager ________.
A) compares the current state of affairs with where they would like to be
B) expects problems to be defined by neon lights
C) looks for discrepancies that can be postponed
D) will not act when there is pressure to make a decision
Answer: A
Diff: 1 Page Ref: 122
Topic: The Decision-Making Process
34) Which of the following statements is true concerning problem identification?
A) Problems are generally obvious.
B) A symptom and a problem are basically the same.
C) Well-trained managers generally agree on what is considered a problem.
D) The problem must be such that it exerts some type of pressure on the manager to act.
Answer: D
Diff: 2 Page Ref: 122
Topic: The Decision-Making Process
35) What is the second step in the decision-making process?
A) identifying decision criteria
B) allocating weights to the criteria
C) analyzing alternatives
D) identifying a problem
Answer: A
Diff: 2 Page Ref: 122
Topic: The Decision-Making Process
36) To determine the ________, a manager must determine what is relevant or important to resolving the problem.
A) geocentric behavior needed
B) number of allowable alternatives
C) weighting of decision criteria
D) decision criteria
Answer: D
Diff: 2 Page Ref: 122
Topic: The Decision-Making Process
37) What is the third step in the decision-making process?
A) allocating weights to the criteria
B) analyzing the alternatives
C) selecting the best alternative
D) implementing the alternative
Answer: A
Diff: 2 Page Ref: 122
Topic: The Decision-Making Process
38) If all criteria in the decision making are equal, weighting the criteria ________.
A) improves decision making when large numbers of criteria are involved
B) is not needed
C) produces excellent decisions
D) improves the criteria
Answer: B
Diff: 3 Page Ref: 122
Topic: The Decision-Making Process
39) In allocating weights to the decision criteria, which of the following is helpful
to remember?
A) All weights must be the same.
B) The total of the weights should sum to 1.0.
C) Every factor criterion considered, regardless of its importance, must receive some weighting.
D) Assign the most important criterion a score, and then assign weights against that standard.
Answer: D
Diff: 3 Page Ref: 122
Topic: The Decision-Making Process
40) What is the step where a decision maker wants to be creative in coming up with possible alternative?
A) allocating weights to the criteria
B) analyzing alternatives
C) developing alternatives
D) identifying decision criteria
Answer: C
Diff: 1 Page Ref: 123
Topic: The Decision-Making Process
41) When analyzing alternatives, what becomes evident?
A) the strengths and weaknesses of each alternative
B) the weighting of alternatives
C) the list of alternatives
D) the problem
Answer: A
Diff: 1 Page Ref: 123
Topic: The Decision-Making Process
42) When developing alternatives in the decision-making process, what must a manager do?
A) list alternatives
B) evaluate alternatives
C) weight alternatives
D) implement alternatives
Answer: A
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
43) Selecting an alternative in the decision-making process is accomplished by ________.
A) choosing the alternative with the highest score
B) choosing the one you like best
C) selecting the alternative that has the lowest price
D) selecting the alternative that is the most reliable
Answer: A
Diff: 1 Page Ref: 123
Topic: The Decision-Making Process
44) In Step 6 of the decision-making process, each alternative is evaluated by appraising it against the ________.
A) subjective goals of the decision maker
B) criteria
C) assessed values
D) implementation strategy
Answer: B
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
45) ________ includes conveying a decision to those affected and getting their commitment to it.
A) Selecting an alternative
B) Evaluating the decision effectiveness
C) Implementing the alternatives
D) Analyzing alternatives
Answer: C
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
46) Which of the following is important in effectively implementing the chosen alternative in the decision-making process?
A) getting upper-management support
B) double-checking your analysis for potential errors
C) allowing those impacted by the outcome to participate in the process
D) ignoring criticism concerning your chosen alternative
Answer: C
Diff: 2 Page Ref: 123-124
Topic: The Decision-Making Process
47) The final step in the decision-making process is to ________.
A) pick the criteria for the next decision
B) reevaluate the weightings of the criteria until they indicate the correct outcome
C) evaluate the outcome of the decision
D) reassign the ratings on the criteria to find different outcomes
Answer: C
Diff: 2 Page Ref: 124
Topic: The Decision-Making Process
48) Which of the following is important to remember in evaluating the effectiveness of the decision-making process?
A) You should ignore criticism concerning the decision-making process.
B) You may have to start the whole decision process over.
C) You will have to restart the decision-making process if the decision is less than
50 percent effective.
D) Ninety percent of problems with decision making occur in the implementation step.
Answer: B
Diff: 3 Page Ref: 124
Topic: The Decision-Making Process
49) Managers are assumed to be ________; they make consistent,
value-maximizing choices within specified constraints.
A) rational
B) leaders
C) organized
D) satisficers
Answer: A
Diff: 1 Page Ref: 124
Topic: Decision-Making Styles
50) It is assumed that a perfectly rational decision maker ________.
A) does not follow rational assumptions
B) does not consider value maximizing as an objective
C) offers inconsistent decisions
D) would be objective and logical
Answer: D
Diff: 2 Page Ref: 124
Topic: Decision-Making Styles
51) Managers can make rational decisions if ________.
A) the problem is ambiguous
B) the goals are unclear
C) the alternatives are limited
D) time constraints exist
Answer: C
Diff: 3 Page Ref: 124
Topic: Decision-Making Styles
52) Which of the following is not a valid assumption about rationality?
A) The problem is clear and unambiguous.
B) A single, well-defined goal is to be achieved.
C) Preferences are clear.
D) Preferences are constantly changing.
Answer: D
Diff: 3 Page Ref: 124
Topic: Decision-Making Styles
53) When managers circumvent the rational decision-making model and find ways to satisfice, they are following the concept of ________.
A) jurisprudence
B) bounded rationality
C) least-squared exemptions
D) self-motivated decisions
Answer: B
Diff: 2 Page Ref: 125
Topic: Decision-Making Styles
54) Because managers can't possibly analyze all information on all alternatives, managers ________, rather than ________.
A) maximize; satisfice
B) maximize; minimize
C) satisfice; minimize
D) satisfice; maximize
Answer: D
Diff: 2 Page Ref: 125
Topic: Decision-Making Styles
55) The type of decision making in which the solution is considered "good enough" is known as ________.
A) intuition
B) satisfying
C) maximizing
D) satisficing
Answer: D
Diff: 2 Page Ref: 125
Topic: Decision-Making Styles
56) When a decision maker chooses an alternative under perfect rationality, she
________ her decision, whereas under bounded rationality she chooses a ________ decision.
A) minimizes; satisficing
B) satisfices; maximizing
C) maximizes; satisficing
D) maximizes; minimizing
Answer: C
Diff: 3 Page Ref: 125
Topic: Decision-Making Styles
57) An increased commitment to a previous decision despite evidence that it may have been wrong is referred to as ________.
A) economies of commitment
B) escalation of commitment
C) dimensional commitment
D) expansion of commitment
Answer: B
Diff: 2 Page Ref: 126
Topic: Decision-Making Styles
58) Intuitive decision making is ________.
A) not utilized in organizations
B) a conscious process based on accumulated judgment
C) making decisions based on experience, feelings, and accumulated judgment
D) important in supporting escalation of commitment
Answer: C
Diff: 2 Page Ref: 126
Topic: Decision-Making Styles
59) In studying intuitive decision making, researchers have found that ________.
A) managers do not make decisions based on feelings or emotions
B) managers use data from their subconscious mind to help make their decisions
C) rational thinking always works better than intuitive
D) accumulated experience does not support intuitive decisions
Answer: B
Diff: 2 Page Ref: 126
Topic: Decision-Making Styles
60) All of the following are aspects of intuition except ________.
A) experienced-based decisions
B) affect-initiated decisions
C) cognitive-based decisions
D) programmed decisions
Answer: D
Diff: 1 Page Ref: 127
Topic: Decision-Making Styles
61) ________ are straightforward, familiar, and easily defined.
A) Unstructured problems
B) Structured problems
C) Unique problems
D) Nonprogrammed problems
Answer: B
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
62) Structured problems align well with which type of decision making?
A) programmed
B) satisficing
C) intuition
D) gut feeling
Answer: A
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
63) ________ decision making is relatively simple and tends to rely heavily on previous solutions.
A) Nonprogrammed
B) Linear
C) Satisficing
D) Programmed
Answer: D
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
64) A procedure ________.
A) is an explicit statement detailing exactly how to deal with a decision
B) is a series of interrelated sequential steps to respond to a structured problem
C) is a set of guidelines that channel a manager's thinking in dealing with a problem
D) allows a manager to use broad decision-making authority
Answer: B
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
65) A ________ is an explicit statement that tells a manager what he or she can or cannot do.
A) procedure
B) policy
C) rule
D) solution
Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
66) A policy ________.
A) typically contains an ambiguous term
B) is used frequently when a manager faces a structured problem
C) allows little discretion on the part of the manager
D) offers strict rules as to how a problem should be solved
Answer: A
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
67) What is a difference between a policy and a rule?
A) A policy establishes parameters.
B) A rule establishes parameters.
C) A policy is more explicit.
D) A rule is more ambiguous.
Answer: A
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
68) A ________ typically contains an ambiguous term that leaves interpretation up to the decision maker.
A) system
B) rule
C) solution
D) policy
Answer: D
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
69) A business school's statement that it "strives for productive relationships with local organizations" is an example of a ________.
A) rule
B) policy
C) procedure
D) commitment
Answer: B
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
70) Unstructured problems ________.
A) are easily solved
B) present familiar circumstances
C) force managers to deal with incomplete or ambiguous information
D) are routine
Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
71) Nonprogrammed decisions are best described as ________.
A) recurring, but difficult to make
B) very similar to problems in other areas of the organization
C) requiring more aggressive action on the decision maker's thought processes
D) unique and nonrecurring
Answer: D
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
72) When problems are ________, managers must rely on ________ in order to develop unique solutions.
A) structured; nonprogrammed decision making
B) structured; pure intuition
C) unstructured; nonprogrammed decision making
D) unstructured; programmed decision making
Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
73) Lower-level managers typically confront what type of decision making?
A) unique
B) nonroutine
C) programmed
D) nonprogrammed
Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
74) Which of the following is likely to make the most programmed decisions?
A) the CEO of PepsiCo
B) the vice president of General Motors Cadillac Division
C) the head of the Minute Maid Division at Coca-Cola
D) the manager of the local McDonald's
Answer: D
Diff: 1 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
75) ________ is a situation in which a manager can make accurate decisions because the outcome of every alternative is known.
A) Certainty
B) Risk
C) Uncertainty
D) Maximax
E) Maximin
Answer: A
Diff: 1 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
76) If an individual knows the price of three similar cars at different dealerships, he or she is operating under what type of decision-making condition?
A) risk
B) uncertainty
C) certainty
D) factual
Answer: C
Diff: 1 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
77) A retail clothing store manager who estimates how much to order for the current spring season based on last spring's outcomes is operating under what kind of decision-making condition?
A) seasonal
B) risk
C) uncertainty
D) certainty
Answer: B
Diff: 3 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
78) ________ is a situation in which a decision maker has neither certainty nor reasonable probability estimates available.
A) Certainty
B) Risk
C) Uncertainty
D) Maximax
Answer: C
Diff: 1 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
79) Nonprogrammed decisions are typically made under a condition of ________.
A) certainty
B) low levels of risk
C) uncertainty
D) reliability
Answer: C
Diff: 3 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
80) A person at a horse racetrack who bets all of his or her money on the
odds-based long shot to "win" (rather than "place" or "show") is making what kind of choice?
A) maximax
B) maximin
C) minimax
D) minimin
Answer: A
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
81) What best describes the psychological orientation of an individual making a "maximax" choice?
A) optimist
B) realist
C) pessimist
D) satisficer
Answer: A
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
82) Optimistic managers could be expected to utilize their maximax orientation when they ________.
A) maximize the maximum payoff
B) maximize the minimum payoff
C) minimize the maximum regret
D) minimize the minimum regret
Answer: A
Diff: 1 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
83) What is the psychological orientation of a decision maker who makes a "maximin" choice?
A) optimist
B) realist
C) pessimist
D) satisficer
Answer: C
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
84) Which of the following best describes "maximizing the minimum possible payoff"?
A) maximax
B) maximin
C) minimax
D) minimin
Answer: B
Diff: 2 Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
85) A manager who desires to minimize his or her maximim "regret" will opt for a ________ choice.
A) maximax
B) maximin
C) minimax
D) minimin
Topic: Types of Decisions and Decision-Making Conditions
86) Many managers use ________ or rules of thumb to simplify their decision making.
A) heuristics
B) biases
C) errors
D) habits
Answer: A
Diff: 1 Page Ref: 133
Topic: Decision-Making Styles
87) When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting ________.
A) self-serving bias
B) the anchoring effect
C) immediate gratification bias
D) overconfidence bias
Answer: D
Diff: 1 Page Ref: 133
Topic: Decision-Making Styles
88) When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting
________.
A) availability bias
B) the anchoring effect
C) self-serving bias
D) confirmation bias
Answer: D
Diff: 2 Page Ref: 133
Topic: Decision-Making Styles
89) When decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events, they are using ________.
A) availability bias
B) framing bias
C) selective perception bias
D) representation bias
Topic: Decision-Making Styles
90) What is the tendency for decision makers to falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known?
A) the hindsight bias
B) the sunk costs error
C) the randomness bias
D) the selective perception bias
Answer: A
Diff: 2 Page Ref: 134
Topic: Decision-Making Styles
91) To make effective decisions in today's fast-moving world, managers need to ________.
A) use the five-stage decision-making process
B) know when it is time to call it quits
C) ignore cultural differences
D) identify their style of decision making
Answer: B
Diff: 1 Page Ref: 135
Topic: Effective Decision Making in Today's World
92) What is a characteristic that the experts say an effective decision-making process has?
A) It is inconsistent.
B) It acknowledges only objective thinking.
C) It focuses on all factors even those that do not seem important.
D) It requires only as much information and analysis as is necessary. Answer: D
Diff: 2 Page Ref: 136
Topic: Effective Decision Making in Today's World
93) What term is used by Navy aviators to describe a gut feeling that something isn't right?
A) leemers
B) the creeps
C) uneasiness
D) regret
Answer: A
Diff: 3 Page Ref: 136
Topic: Effective Decision Making in Today's World
94) Managers of highly reliable organizations (HROs) get the input of ________ and let them make decisions.
A) CEOs
B) frontline workers
C) customers
D) suppliers
Answer: B
Diff: 1 Page Ref: 136
Topic: Effective Decision Making in Today's World
95) When highly reliable organizations (HROs) face complexity, they ________.
A) try to simplify data
B) aim for deeper understanding of the situation
C) defer to the experts
D) act, then think
Answer: B
Diff: 2 Page Ref: 136
Topic: Effective Decision Making in Today's World
Decisions, Decisions (Scenario)
Sondra needed help. Her insurance company's rapid growth was necessitating making some changes, but what changes? Should they add to the existing information system or should they buy a new system? She was given the responsibility of analyzing the company's present information system and deciding what the company should do that would give them plenty of room. She was confused and needed help in making the correct decision.
96) According to the decision-making process, the first step Sondra should take is to ________.
A) analyze alternative solutions
B) identify decision criteria
C) evaluate her decision's effectiveness
D) identify the problem
Answer: D
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process