Chapter 6 Decision Making: The Essence of the Manager
TRUE/FALSE QUESTIONS
s Job
THE DECISION-MAKING PROCESS
1. Problem identification is purely objective.
2. The second step in the decision-making process is identifying a problem. 3. A decision criterion defines what is relevant in a decision.
4. The fourth step of the decision-making process requires the decision maker to list viable alternatives
that could resolve the problem.
5. Once the alternatives have been identified, a decision maker must analyze each one. 6. The step in the decision-making process that involves choosing a best alternative
is termed implementation.
THE MANAGER AS DECISION MAKER
7. Making decisions is with the essence of management. 8. Managerial decision making is assumed to be rational.
9. One assumption of rationality is that we cannot know all of the alternatives. 10.
Managers tend to operate under assumptions of bounded rationality.
11.Studies of the events leading up to the Challenger space shuttle disaster point to an escalation of
commitment by decision makers
12. Managers regularly use their intuition in decision making. 13. 14. 15.
Rational analysis and intuitive decision making are complementary. Programmed decisions tend to be repetitive and routine. Rules and policies are basically the same.
.
16. A policy is an explicit stateme nt that tells a man ager what he or she ought or ought not to do. 17. The soluti on to non programmed decisi on
policies.
18. Most man agerial decisi ons in the real world are fully non programmed. 19. The ideal situation for making decisions is low risk. 20. Risk is the condition
in which the decision
maker is able to estimate the
making relies on procedures, rules, and
likelihood of certa in outcomes.
21. Risk is a situation in which a decision maker has neither
reas on able probability estimates.
22. People who have a low tolera nee for ambiguity and are rati onal in their way of
thi nki ng are said to have a directive style.
23. Decisi on makers with an an alytic style have a much lower tolera nee for ambiguity tha n do directive
types.
24.ln dividuals with a
con ceptual style tend to be very broad in their outlook and
certainty
nor
will look at many alter natives.
25. Behavioral-style decisi on makers work well with others.
26. Most man agers have characteristics of an alytic decisi on makers. 27. Accordi ng
to the boxed feature, “ Managing Workforce Diversity, ” diverse
employees tend to make decisi ons faster tha n a homoge neous group of employees. 28. The an chori ng effect describes whe n decisi on makers fixate on in itial in formatio n
as a starting
point and then,
once set, they fail to adequately adjust for
subseque nt in formati on.
29. The availability bias describes whe n decisi on makers try to create meaning out of ran dom eve nts. 30. The sunk cost error is whe n decisi on makers forget that curre nt choices cannot correct the past.
DECISION MAKING FOR QDAY S WORLD
31. Today ' s bus in ess world revolves around making decisi ons, usually with complete or adequate
information, and under minimal time pressure.
32. Ma nagers n eed to un dersta nd cultural differe nces to make effective decisi ons in today ' s fast -moving world. 33. According
to the boxed feature, “ Focus on Leadership, ”
when identifying
problems, man agers might be from a culture that is focused on problem sol ving, or their culture might be one of situatio n accepta nee. 34. According to the boxed feature,
countries, an alysis.
35. Highly reliable orga ni zati ons (HROs) are easily tricked by their success. MULTIPLE-CHOICE QUESTIONS For each of the following
questio n.
choose the answer that most completely answers the
decision
“ Focus on Leadership, ” findings from studies by
than on formal
Geert Hofstede and from GLOBE researchers show that in high un certa inty avoida nee
making tends to be based more on intuition
THE DECISION-MAKING PROCESS
36. Decisi on maki ng is typically described as ____________________ , which is a view that
is too simplistic.
a. deciding what is correct b. putting preferences on paper c. choos ing among alter natives d. processing information to completion
37. A series of eight steps that beg ins with ide ntify ing a problem and con cludes with
evaluating the decision ' s effectiveness i s the _______________________________ . a. decision-making process b. man agerial process c. maximin style
d. boun ded rati on ality approach 38. ___________________ is the existenee
desired state of affairs.
of a discrepancy
between an existing
and a