c. looking “outside the box” in your search
d. analyzing all the opportunities until you find the perfect job
118. If you use a shortened process of searching for a job, it is likely that you ___________ rather
than maximized in your decision process. a. minimized b. rationalized c. satisficed d. agreed
119. During your job search, you depend on __________ decision making by making your decision
based on accumulated judgment and experience. a. experiential b. legal c. intuitive d. formidable
Is the Picture Clear? (Scenario)
Sharon was the regional manager of a large cable television company. She faced many problems and decisions daily, such as how to price each market, who to hire, what kind of technology she should purchase, and how she should handle the increasing customer complaints. She needed some help sorting these issues out.
120. When a customer calls and requests a refund for a partial month’s usage of cable, the fact that
such situations are routine and most likely have a standard response would make the response a ______________ decision. a. standard b. routine c. policy
d. programmed
121. Sometimes Sharon follows a ______________, a series of interrelated sequential steps for
responding to a structured problem. a. rule b. policy c. procedure d. suggestion
122. Sometimes Sharon instructs her local managers to follow ______________ when confronted
with problem situations. These establish parameters for the manager making the decision rather than specifically stating what should or should not be done. a. rules
b. procedures c. policies
d. orders
123. Unfortunately, Sharon also faces issues containing information that is ambiguous or incomplete,
such as what kind of technology to purchase. These are known as ______________ problems. a. unstructured b. variable c. random d. hit-and-miss
Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks assigned to her. Different situations demand different decision-making processes.
124. Michelle finds a situation that instructs her in specific, interrelated, sequential steps to respond to
a problem. This is referred to as a _____________. a. rule b. policy
c. broad guideline d. procedure
125. Michelle finds a company directive that specifically restricts her from taking certain actions.
This is a _____________. a. rule b. policy
c. broad guideline d. procedure
126. As she learns the general guidelines of the job, Michelle is given more decision-making authority.
The guidelines establish parameters for decision making and are referred as a _____________. a. rule b. policy
c. broad guideline d. procedure
127. Michelle eventually finds a problem that has no cut-and-dry solution. The problem is unique and
will never occur again. This problem is referred to as _____________. a. flexible
b. programmed c. adaptable
d. nonprogrammed
Decision-Making Conditions (Scenario)
Sandy Jo is the manager for TrucksRUs, a medium-sized hauling service located in the Southeast. She is responsible for scheduling trucks, initiating new routes, and staffing both existing and new routes. She is currently struggling with existing information about the profitability of existing and future truck routes.
128. Sandy Jo can make accurate decisions if she is willing to pay $5,000 for research about the
profitability of various truck routes. If she pays for the research, she believes that she is operating under a condition of ____________. a. certainty b. risk
c. uncertainty d. maximax
129. Joe, Sandy Jo’s best driver, tells her that he believes he can estimate that there is a 75 percent
probability that they can get the business of Pork Brothers, Inc., if they initiate a truck route through rural North Carolina. Joe is operating under a condition of ______________. a. certainty b. risk
c. uncertainty d. maximax
130. Sandy Jo knows that she is operating in an uncertain environment. She is basically an optimist,
and we would, therefore, expect her to follow a ______________ strategy. a. certainty b. risk
c. uncertainty d. maximax
131. Sandy Jo knows that she is operating in an uncertain environment. She is basically a pessimist,
and we would, therefore, expect her to follow a ______________ strategy. a. certainty b. risk
c. minimax d. maximin
132. Sandy Jo wishes to minimize her regret and will probably opt for a ______________ strategy.
a. certainty b. risk
c. minimax d. maximax
ESSAY QUESTIONS
THE DECISION-MAKING PROCESS
133. In a short essay, list and discuss the eight steps in the decision-making process.
THE MANAGER AS DECISION MAKER
134. In a short essay, discuss the assumptions of rationality and the validity of those assumptions.
135. In a short essay, discuss bounded rationality and satisficing.
136. In a short essay, discuss the difference between structured and unstructured problems. Include
specific examples of each type of problem to support your answer. Next, discuss the type of decisions that would be used to address each of these problems.
137. In a short essay, discuss the differences among a procedure, a rule, and a policy. Include specific
examples of each to support your answer.
138. In a short essay, describe the four decision-making styles.
139. In a short essay, discuss six of the twelve common decision errors and biases that managers
make.
DECISION MAKING FOR TODAY’S WORLD
140. In a short essay, identify and discuss the five habits shared by highly reliable organizations
(HROs).
ANSWERS:
1. (False; moderate; p. 157) 2. (False; easy; p. 158)
3. (True; moderate; p. 158) 4. (True; easy; p. 159)
5. (True; moderate; p. 159) 6. (False; moderate; p. 160) 7. (True; easy; p. 161)
8. (True; moderate; p. 162) 9. (False; difficult; p. 162) 10. (True; moderate; p. 163) 11. (True; moderate; p. 163) 12. (True; easy; p. 164)
13. (True; moderate; p. 164) 14. (True; easy; p. 165)
15. (False; moderate; p. 166) 16. (False; moderate; p. 166) 17. (False; moderate; p. 166) 18. (False; easy; p. 167)
19. (False; moderate; p. 167) 20. (True; easy; p. 167) 21. (False; difficult; p. 168) 22. (True; moderate; p. 171) 23. (False; moderate; p. 171) 24. (True; moderate; p. 171) 25. (True; easy; p. 171)
26. (False; moderate; p. 171)
27. (False; moderate; p. 172; AACSB: Diversity) 28. (True; moderate; p. 173) 29. (False; moderate; p. 173) 30. (True; moderate; p. 173) 31. (False; difficult; p. 175)
32. (True; moderate; p. 175; AACSB: Diversity) 33. (True; easy; p. 175; AACSB: Diversity) 34. (False; moderate; p. 175) 35. (False; easy; p. 176) 36. (c; moderate; p. 156) 37. (a; easy; p. 156) 38. (d; easy; p. 156) 39. (a; easy; p. 158)
40. (d; moderate; p. 158) 41. (a; moderate; p. 158) 42. (d; moderate; p. 158) 43. (a; moderate; p. 158)