Chapter Four: Foundations of Decision MakingMultiple Choice Questions1. __________ is not one of the eight steps in the decision making process.a. Identifying the problemb. Analyzing alternative solutionsc. Implementing the decisiond. Delegating the decision making2. Which of the following sequences is correct for the decision-making Process?a. Identify decision criteria, analyze alternatives, allocate weights to criteriab. Analyze alternatives, select an alternative, implement the alternativec. Select an alternative, evaluate decision effectiveness, weight the criteriad. Analyze alternatives, develop alternatives, allocate weights to criteria3. Once a problem is formulated, the next step is toa. Select an alternativeb. List all possible Solutionsc. Observe a discrepancyd. Decide what is critical in the decision4. When a manager who is contemplating all the features a new purchaseshould have prioritizes the most important, he or she is practicinga. selection of criteriab. problem formulationc. weighting of criteriad. analyzing alternatives5. After implementation has been accomplisheda. The decision-making process is completeb. The control function of management become importantc. The alternatives are rankedd. The manager must complete written evaluation forms6. When a plant manager who is trying to reduce turnover of production workersnotices that turnover has decreased by 10 percent four months after he instituted a new training program, at which step in the rational decision-making process is this manager?a. Identify the problem.b. Evaluate the decision criteria.c. Analyze the alternatives.d. Evaluate the results.7. According to the concept of bounded rationality, decision makers are limitedby _______.a. less than complete informationb. environmentc. timed. All of the above.8. __________ is selecting the first minimally acceptable alternative.a. Bounded rationalityb. Unbounded rationalityc. Satisficingd. Rational decision-making9. Suppose that you need a math elective to take in order to graduate. There arefive different courses you could take. You call one friend and, on the basis of her terrific experience in one course, you choose that one. What would Herbert Simon call what you have just done?a. Bounded rationalityb. Unbounded rationalityc. Escalation of commitmentd. Rational decision-making10. ______________ occurs when a manager purchases stock in a company andrefuses to sell it even after it has dropped 40 percent in value over the past 6 months.a. Optimizingb. Satisficingc. Bounded Rationalityd. Escalation of Commitment11. ____________ is one of the disadvantages of group decisions that typicallyresults in groups that are very cohesive.a. Conflictb. Groupthinkc. Dominationd. Compromise12. Which of the following is an advantage of group decision-making whencompared to individual decision-making?a. The group process takes less time.b. Groupthink may occur.c. More decision alternatives are generated.d. One person can dominate the group.13. Bounded rationality refers to the idea thata. Managers are bound by ethical considerations to be rationalb. Managers will promote rationalization as an aid to decision makingc. Managers employ model construction to simplify decision makingd. Managers are to behave according to rational guidelines within thebounds of their authority in the workplace14. The tendency for decision makers to base their judgments on information thatis readily accessible to them is best described asa. Escalation of commitmentb. Representative heuristicc. Bounded rationalityd. None of the above15. “Decision making under risk” means ____________.a. the decision has no data on which to base his or her decisionb. the decision maker is used to dealing with high-risk situationsc. the decision maker knows all of the risks involved in the situationd. the decision maker can estimate the risk involved in making a decision16. How do managers know when they have a disparity or discrepancy in thedecision-making process? The best way is to compare their current state and some standard. Which of the following would not be a relevant standard?a. previously set goalsb. past performancec. the performance of some unit in or out of the organizationd. use future projections17. Putting a decision into action and conveying the decision to the persons whowill be affected by it is known asa. problem identification.b. decision implementation.c. rational decision making.d. irrational decision making.18.When decisions must be made with limited information because fullknowledge of the problem is unavailable and the probability of outcomes is unknown, the condition of __________ exists.a. uncertaintyb. certaintyc. riskd. bounded rationality19. Which of the following is not an assumption of the rational decision-makingmodel?a. The problem is clear and unambiguous.b. A single well-defined goal is to be achieved.c. Preferences change slowly.d. Final choice will maximize economic payoff.20. Creativity is formed when the elements of creative skills, expertise, and _____intersect.a. personalityb. experiencec. task motivationd. None of the above.21. In the decision-making process known as bounded rationality,a. the final choice maximizes economic payoff.b. the final choice minimizes economic payoff.c. the first choice that is "good enough" is chosen.d. all "good enough" choices are selected.22. Jane just conducted the performance appraisals of five of her employees. Herappraisal was heavily influenced by the performance of the individuals during the last month. Jane's bias is an example ofa. availability heuristic.b. representative heuristic.c. escalation of commitment.d. optimal decision making.23. The decision-making process concludes witha. analysis of alternatives.b. identification of a problem.c. identification of decision criteria.d. evaluation of decision effectiveness.24. Problems where information is ambiguous or incomplete are which type ofproblem?a. well-structuredb. ill-structuredc. programmedd. nonprogrammed25. Well-structured problems area. Newb. Closely aligned with the assumptions of perfect rationalityc. Ambiguousd. Characterized by limited information26. When a decision maker relies on a programmed decision, he or Shea. may fall back on rules, procedures, or policiesb. will develop many alternatives from which to select a solutionc. will spend considerable time on the decisiond. must be dealing with a unique or unusual problem27. A procedure can be defined as aa. method to guide a manager's thinking in one general direction.b. hierarchy of authority relationships in an organization.c. series of interrelated sequential steps for problem solving.d. collection of explicit statements about what a manager can or cannot do.28. A rule is BEST described by which of the following?a. A general guideline designed to direct a manager's focus.b. A series of interrelated sequential steps.c. A prohibition against desired activity.d. An explicit and specific statement of correct behavior.29. A policy typically containsa. parameters to constrain behavior, not specific rules.b. nothing but explicit, unambiguous terminology.c. a sequence of steps to follow for approved decision making.d. specific rules.30. "Whenever possible, we promote from within" is an example of which of thefollowing?a. ruleb. procedurec. policyd. nonprogrammed decision31. "Only employees with top-secret clearance may enter the sealed room," is anexample of aa. rule.b. procedure.c. policy.d. nonprogrammed decision.32. As managers move up the organizational hierarchy, problems are more likelyto becomea. well-structured.b. ill-structured.c. programmed.d. nonprogrammed.33. A conceptual style of decision-making reflects an individual whoa. thinks intuitively and has a low tolerance for ambiguity.b. thinks rationally and has a high tolerance for ambiguity.c. thinks intuitively and has a high tolerance for ambiguity.d. thinks rationally and has a low tolerance for ambiguity.34. Peggy Juarez uses a decision-making style characterized by low tolerance forambiguity and a rational way of thinking. They generally turn out to be fast decisions of a short run nature. What style does Peggy use?a. analyticb. conceptualc. directived. behavioral35. Which of the following is not true about group decisions?a. Group decisions are faster.b. Group decisions tend to be more accurate.c. Group decisions are more creative.d. Group decisions are more widely accepted.36. Group decisions will usually be Superior to individual decisions whena. speed is a concern.b. accuracy is critical.c. minimizing the tendency of groupthink is importantd. flexibility is needed.37. Which of the following is NOT an example of a situation in which groupthinkoccurs?a. Group members rationalize any resistance to the assumptions they havemade.b. Group members apply direct pressure on those who express doubts.c. Group members avoid openly showing lack of consensus.d. Group members question those who are silent and try to sway them.38. Bounded rationality differs from the rational model in that decision makers:a. act irrationally.b. focus on easy-to-find choices.c. seek advice from employees.d. act outside the boundaries set by their organizations.39. Which of the following is not a method by which group decision making can beimproveda. brainstormingb. nominal group techniquec. groupthinkd. electronic meetings40. The basic premise for the decision-making model is that individuals differ alongtwo dimensionsa. degree of risk preference and position within the organizational hierarchy.b. experience and communication skills.c. way they think and tolerance for ambiguity.d. personality and attention to detail.。