Chapter 6 Decision Making: The Essence of the Manager
TRUE/FALSE QUESTIONS
THE DECISION-MAKING PROCESS
s Job
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. Rational analysis and intuitive decision making are complementary. 14. Programmed decisions tend to be repetitive and routine. 15. Rules and policies are basically the same.
16. A policy is an explicit statement that tells a manager what he or she ought or ought not to do. 17. The solution to nonprogrammed decision making relies on procedures, rules, and 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 likelihood of certain outcomes. 21. Risk is a situati on in which a decisi on maker has n either certa inty nor reas on able probability estimates. 22. People who have a low tolerance for ambiguity and are rational in their way of thinking are said to have a
directive style. 23. Decision makers with an analytic style have a much lower tolerance for ambiguity than do directive types. 24. Individuals with a conceptual style tend to be very broad in their outlook and will look at many alter natives. 25. Behavioral-style decisi on makers work well with others. 26. Most managers have characteristics of analytic decision makers. 27. Accordi ng to the boxed feature, Managing Workforce Diversity, to
decisi ons faster tha n a homoge neous group of employees.
diverse employees tend
28. The anchoring effect describes when decision makers fixate on initial information as a starting point and the
n, 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 when decision makers forget that current choices cannot correct the past.
DECISION MAKING FOR T ODAY 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. Managers need to understand cultural differences to make effective decisions in today -moving
world.
33. Accordi ng to the boxed feature, Focus on Leadership, whe n ide ntify ing problems, man agers might
be from a culture that is focused on problem solving, or their culture might be one of situation accepta nce. 34. According to the boxed feature, “ Focus on Leadership, ” findings from studies by Geert Hofstede and from
GLOBE researchers show that in high un certa inty avoida nee coun tries, decisi on maki ng tends to be based more on in tuiti on tha n on formal an alysis. 35. Highly reliable organizations (HROs) are easily tricked by their success.
MULTIPLE-CHOICE QUESTIONS
For each of the followi ng choose the an swer thartnost completelya nswers the questi on.
THE DECISION-MAKING PROCESS
36. 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. 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 evaluat ing the
decision ' s effectivenesthe _________________ . a. decision-making process b. man agerial process c. maximin style
d. boun ded rati on ality approach 38. _______________ is the existenee of a discrepancy between an existing and a desired state of
affairs.
a. An opport unity b. A solution c. A weakness d. A problem 39. 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
40. Which of the followi ng stateme nts is true concerning problem ide ntificati on? a. Problems are gen erally obvious.
b. A symptom and a problem are basically the same.
c. Well-trai ned man agers gen erally agree on what is con sidered a problem.
d. The problem must be such that it exerts some type of pressure on the manager to act. 41. What is the second step in the decision-making process?
a. identifying decision criteria
b. allocating weights to the criteria c. an alyz ing alter natives d. identifying a problem
42. To determ ine the _____________ , a man ager must determ ine what is releva nt or importa nt to
resol ving the problem.
a. geocentric behavior needed
b. nu mber of allowable alter natives c. weighting of decision criteria
d. decision criteria
43. What is the third step in the decision-making process?
a. allocating weights to the criteria b. an alyz ing the alter natives c. select ing the best alter native d. impleme nting the alter native
44. If all criteria in the decision making are equal, weighting the criteria ______________ .
a. improves decision making when large numbers of criteria are invoIved b. is not needed
c. produces excellent decisions d. improves the criteria
45. 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 importanee, must receive some weighting. d. Assign the most important criterion a score, and then assign weights against that standard. 46. What is the step where a decisi on maker wan ts to be creative in coming up with possible alter native?
a. allocating weights to the criteria b. an alyz ing alter natives c. develop ing alter natives d. identifying decision criteria 47. When an alyz ing alter natives, what becomes evide nt?
a. the stre ngths and weak nesses of each alter native b. the weight ing of alter natives c. the list of alter natives d. the problem
48. Whe n develop ing alter natives in the decisi on-mak ing process, what must a man ager do?
a. list alter natives
b. evaluate alter natives c. weight alter natives
d. impleme nt alter natives 49. Selecti ng an alter native in the decisi on-mak ing process is accomplished by _______________
a. choos ing the alter native with the highest score b. choosing the one you like best
c. selecti ng the alter native that has the lowest price d. selecti ng the alter native that is the most reliable 50. In Step 6 of the decisi on-mak ing process, each alter native is evaluated by apprais ing it aga inst the
a. b. c. d. subjective goals of the decision maker criteria
assessed values
implementation strategy
51. _____________ in cludes conveying a decisi on to those affected and gett ing their commitme nt to it.
a. Select ing an alter native
b. Evaluating the decision effectiveness c. Impleme nting the alter natives d. An alyz ing alter natives 52. Which of the followi ng is importa nt in effectively impleme nting the chose n alter native in the decisi on-mak
ing 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 chose n alter native 53. 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
54. Which of the following is important to remember in evaluating the effectivenessof the decisionmaking
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.
THE MANAGER AS DECISION MAKER