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Chapter 8 True / False 1. Decision making is choosing one alternative from among several. a. True b. False ANSWER: True 2. Nonprogrammed decisions require problem solving that identifies answers to unique questions or issues. a. True b. False ANSWER: True 3. Programmed decisions are common at the higher levels of the organization. a. True b. False ANSWER: False 4. Decisions in organizations can be classified according to their frequency and information conditions. a. True b. False ANSWER: True 5. Decision rules are used to make programmed decisions. a. True b. False ANSWER: True 6. Susan's recent decision about which company her conglomerate should buy was a programmed decision. a. True b. False ANSWER: False 7. A nonprogrammed decision usually recurs often enough for decision rules to be developed. a. True b. False ANSWER: False

8. The decision maker who lacks enough information to estimate the probability of outcomes faces a condition of certainty. a. True b. False ANSWER: False 9. The rational decision-making process begins with the identification of a problem. a. True b. False ANSWER: False 10. The rational decision-making process assumes that managers follow an unsystematic, random process when evaluating alternatives. a. True b. False ANSWER: False 11. The behavioral model focuses on human behaviors and tendencies when evaluating the decisionmaking process. a. True b. False ANSWER: True 12. Post-decision dissonance is doubt about a choice already made. a. True b. False ANSWER: True 13. The final stage of the rational decision-making process involves implementing the decision. a. True b. False ANSWER: False 14. Contingency plans are alternative actions that can be taken if the primary course of action is disrupted or rendered inappropriate. a. True b. False ANSWER: True 15. A crucial assumption of the behavioral approach to decision-making is that decision makers operate with bounded rationality rather than with the perfect rationality assumed by the rational approach. a. True

b. False ANSWER: True 16. Suboptimizing involves selecting the first acceptable solution that meets minimal requirements. a. True b. False ANSWER: False 17. The practical approach combines elements of both the rational and behavioral approaches. a. True b. False ANSWER: True 18. Insight represents a period of less intense conscious concentration during which knowledge and ideas develop. a. True b. False ANSWER: False 19. Verification is the final step in the creative process. a. True b. False ANSWER: True 20. The creative process generally involves seven different steps that have to occur before a creative idea can be generated. a. True b. False ANSWER: False 21. The Delphi technique is a method to systematically gather the judgments of experts who work closely together at a common worksite. a. True b. False ANSWER: False 22. Group polarization is the tendency for group members to converge on a common decision outcome or solution. a. True b. False ANSWER: False

23. An illusion of invulnerability and stereotyped views of "enemy" leaders are symptoms of groupthink. a. True b. False ANSWER: True 24. In problem-solving tasks, groups usually develop more and better solutions than do individuals. a. True b. False ANSWER: True 25. In the nominal group technique, group members share their ideas with each other and then vote on them in private. a. True b. False ANSWER: True 26. The administrative model of decision making does not attempt to prescribe how managers should make decisions. a. True b. False ANSWER: True Multiple Choice 27. Decision making is a. finding the answer to a question. b. choosing one alternative from among several. c. staffing positions within the organizational hierarchy. d. motivating employees to pursue organizational goals. e. fixing problems that arise in the operations of the business. ANSWER: b 28. A decision maker's actions should be guided by a. personal opinions. b. a goal. c. an operating budget. d. interpersonal relationships. e. a code of honor. ANSWER: b

29. Which of the following statements about programmed decisions is FALSE? a. Information is readily available. b. Specific methods for handling them exist. c. They are highly structured. d. Judgment and creativity are the basis of solution. e. Goals are clear and well known. ANSWER: d 30. Which of the following statements about nonprogrammed decisions is FALSE? a. The decisions are poorly structured. b. The problem situation is nonroutine. c. The consequences of decision making are far reaching. d. The decisions are rarely a responsibility of top management. e. Goals are often vague. ANSWER: d 31. Decisions that recur infrequently and have no decision rules are ____ decisions. a. certain b. risk c. programmed d. nonprogrammed e. uncertain ANSWER: d 32. Nonprogrammed decisions are usually made by a. all employees within an organization. b. union workers. c. upper management. d. middle management. e. lower management. ANSWER: c 33. One basis for making programmed decisions is a. a lack of information. b. a set of decision rules. c. creativity. d. movement. e. group formation. ANSWER: b

34. If a customer voices a complaint about food taste and temperature, certain restaurants always offer a complimentary meal. This represents a. a standard decision. b. a decision rule. c. a nonprogrammed decision. d. experience. e. cognitive dissonance. ANSWER: b 35. Nonprogrammed decisions are most common at what level of the organization? a. Lower b. Top c. Managerial d. Subordinate e. Middle ANSWER: b 36. ____ decisions tend to involve situations that occur often in a company. a. Nonprogramme d b. Procedural c. Repetitive d. Major e. Programmed ANSWER: e 37. If a Human Resources manager can estimate the probability that a certain percentage of employees will take advantage of a proposed benefit plan, the manager is operating under a condition of a. certainty. b. estimation. c. risk. d. uncertainty. e. rationalization. ANSWER: c 38. What information condition lies between certainty and uncertainty in making decisions? a. Risk b. Coin tossing c. Problem solving d. Decision rules e. Guesswork

ANSWER: a 39. The rational decision-making approach assumes decision makers a. have complete information. b. are objective. c. are systematic in their approach to decisions. d. work in an organization that encourages logical choices. e. all of these ANSWER: e 40. According to the rational decision-making approach, what is the second step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type ANSWER: a 41. Which of the following represents the step of the rational decision-making approach in which the outcomes of the decision are compared to the desired goal? a. Analyze the decision b. Control: measure and adjust c. Determine the goal d. Collect data e. Analyze the situation ANSWER: b 42. The decision-making conditions of certainty, uncertainty, and risk are relevant while the decision maker is a. stating the situational goal. b. identifying the problem. c. evaluating alternatives. d. generating alternatives. e. determining the decision type. ANSWER: c 43. Jim is using the rational decision-making process to decide a course of action for the marketing department. While selecting a preferred alternative, a fellow worker asks, "What if something unexpected happens during the implementation of the alternative we have selected?" This type of question is an example of ____.

a. implementing the plan. b. developing marketing strategies. c. planning for contingencies. d. negative thinking. e. groupthink. ANSWER: c 44. Contingency plans are a part of what phase of the decision-making process? a. Stating the goal b. Evaluating alternatives c. Choosing an alternative d. Implementation e. Alternative generation ANSWER: c 45. When ______________ arises, a decision maker questions the decision made and searches for information to bolster it. a. post-decision uncertainty b. conflict reduction c. rationalization bias d. post-decision dissonance e. positive reinforcement ANSWER: d 46. According to the rational decision-making approach, evaluate the alternatives a. puts the decision into action. b. involves assessing all possible alternatives. c. involves selecting an alternative with the highest payoff. d. is the most crucial step. e. diagnoses the problem. ANSWER: b 47. The last step in the rational decision-making process is a. Create a contingency plan b. Determine the type of decision c. Evaluate alternatives d. Control: Measure and Adjust e. Implement the plan ANSWER: d

48. The behavioral approach to decision-making is characterized by all of the following EXCEPT a. it uses procedures b. it uses rules of thumb c. it uses suboptimizing d. it uses logic e. it uses satisficing ANSWER: d 49. ____ refers to the inability of human beings to process an unlimited amount of information, causing most decisions to be made in a partially irrational manner. a. Post-decision dissonance b. Groupthink block c. Satisficing d. Bounded rationality e. Suboptimizing ANSWER: d 50. When ____, the decision maker knowingly accepts less than the best possible outcome. a. optimizing b. suboptimizing c. compromising d. satisficing e. narrowing ANSWER: b 51. The sales department at a local company determines that Product A will moderately boost sales and have a shorter production schedule, so it is decided that this product will be manufactured and sold without considering other options. In choosing this product, the sales department is a. controlling. b. engaged in bounded rationality. c. suboptimizing. d. satisficing. e. using procedures and rules of thumb. ANSWER: d 52. An innate belief about something without conscious consideration is called a. escalation of commitment. b. coalition. c. intuition.

d. groupthink. e. self-reaction. ANSWER: c 53. Jim purchases stock in a public company and refuses to sell it even after repeated drops in the original price he paid for the stock. Jim has decided to purchase more of the stock in anticipation of making a profit, and has decided to keep the stock in the face of increasing losses. Jim is suffering from a. organizational delusion. b. problem misidentification. c. escalation of commitment. d. groupthink. e. suboptimizing. ANSWER: c 54. Managers who are cautious and try to adhere to the rational decision-making model a. are more likely to make mistakes. b. frequently make decisions that lead to big losses. c. have a lower risk propensity than other managers. d. frequently make decisions that lead to big successes. e. suffer from bounded rationality. ANSWER: c 55. ____ is the extent to which a decision maker is willing to gamble when making a decision. a. Individual ethics b. Risk propensity c. Individual stressors d. Organizational culture e. Leadership style ANSWER: b 56. A person's beliefs about what constitutes right and wrong behavior are called a. hypervigilance. b. ethics. c. self-reactions. d. rationalizations. e. escalations of commitment. ANSWER: b 57. Which of the following statements about ethical dilemmas is FALSE? a. They may center on direct personal gain. b. They may center on indirect personal gain.

c. They may center on risk propensity. d. They may center on simple personal preferences. e. All of these are true ANSWER: c 58. According to research, the common attributes of creative individuals include which of the following? a. Being forced to work at a very young age b. Living in a highly developed country c. Changing basic personality attributes as a teenager d. Being raised in an environment that nurtured creativity e. Having fewer brothers and sisters ANSWER: d 59. Being able to see differences between situations, phenomena, or events is a creative ability called ____ thinking. a. referent b. convergent c. divergent d. emergent e. parallel ANSWER: c 60. The creative process normally begins with a period of ____. a. Verification b. Insight c. Incubation d. Preparation e. Application ANSWER: d 61. While driving home from a hard day at work, Susan finally realizes the solution to the problem she had been having with a certain customer. Susan just reached which stage of the creative process? a. Instigation b. Insight c. Incubation d. Verification e. Preparation ANSWER: b 62. One important method for enhancing creativity is to make it a part of the organization's ____.

a. standard operating procedures. b. decision-making processes. c. culture. d. strategic plans. e. none of the above. ANSWER: c 63. Which of the following includes conditions conducive to groupthink? a. Group cohesiveness, leader's promotion of personal preferences, insulation from expert opinions b. Group cohesiveness, members' promotion of personal preferences, best decision is goal c. Group cohesiveness, leader promotion of personal preferences, critical thinking urged d. Members' promotion of personal preferences, best decision is goal, critical thinking urged e. Group cohesiveness, member's promotion of personal preferences, insulation from expert opinions ANSWER: a 64. All of the following are symptoms of groupthink EXCEPT a. an illusion of invulnerability. b. collective efforts to rationalize or discount warnings. c. a lack of idea promotion from the group leader. d. stereotyped views of enemy leaders. e. direct pressure on members who present contrary views. ANSWER: c 65. All of the following are features of group discussion that contribute to group polarization EXCEPT a. group members could take an extreme view of an opinion b. task uncertainty can be impacted by the decision c. persuasive arguments can encourage polarization d. members may feel they are not individually responsible e. members will accept a more radical decision from their own ANSWER: b 66. Which of the following statements about brainstorming is FALSE? a. It's used in the idea generation phase of decision making. b. Members present ideas and clarify them. c. Ideas are recorded in secret. d. Ideas are recorded on a flip chart. e. It does not provide resolution to the problem.

ANSWER: c 67. All of the following are used in the nominal group technique of decision-making EXCEPT a. individuals convene to address an issue. b. the issue is described to the group. c. each proposed idea must be wholly original. d. initially, no discussion among the members is permitted. e. members take turns reporting their ideas. ANSWER: c 68. The Delphi technique is designed for use by groups a. that are very large b. that are very small. c. that do not meet face-to-face. d. that have suffered from groupthink in the past. e. that are familiar with the rules of brainstorming. ANSWER: c 69. According to the rational decision-making approach, what is the fifth step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type ANSWER: c 70. According to the rational decision-making approach, what is the fourth step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type ANSWER: b 71. According to the rational decision-making approach, what is the third step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives

d. State the situational goal e. Determine the decision type ANSWER: e 72. According to the rational decision-making approach, what is the first step of the decision-making process? a. Identify the problem b. Generate alternatives c. Evaluate alternatives d. State the situational goal e. Determine the decision type ANSWER: d 73. Being able to see similarities between situations, phenomena, or events is a creative ability called ____ thinking. a. referent b. convergent c. divergent d. emergent e. parallel ANSWER: b 74. The second step of the creative process is __________. a. verificatio n b. insight c. incubation d. preparation e. application ANSWER: c 75. The third step of the creative process is ___________. a. verificatio n b. insight c. incubation d. preparation e. application ANSWER: b 76. The fourth step of the creative process is ___________. a. Verification

b. Insight c. Incubation d. Preparation e. Application ANSWER: a 77. According to prospect theory, people are more motivated by a. the threat of losing something than by the prospect of gaining something. b. the prospect of gaining something than by the threat of losing something. c. internal values than by external rewards. d. external rewards than by internal values. e. none of these ANSWER: a 78. In ________, the decision maker examines alternatives only until a solution that meets minimal requirements is found. a. optimizing b. suboptimizing c. compromising d. satisficing e. narrowing ANSWER: d 79. A(n) _______ is an informal alliance of individuals or groups formed to achieve a common goal. a. group b. coalition c. team d. armada e. union ANSWER: b 80. Satisficing refers to making a(n) _________ rather than _________ decision. a. intuitive, rational b. short-term, longterm c. correct, incorrect d. optimal, satisfactory e. satisfactory, optimal ANSWER: e

81. Which of the following is true about intuition? a. it is largely arbitrary b. it evolves over time c. it's not based on rationality d. it's similar to guessing e. all of these ANSWER: b 82. What term refers to the tendency of people to make more extreme decisions in a group than when alone? a. brainstorming b. groupthink c. escalation of commitment d. group polarization e. risk propensity ANSWER: d 83. What mode of thinking occurs when people are deeply involved in a cohesive in-group and members’ strivings for unanimity override their motivation to realistically appraise alternative courses of action? a. brainstorming b. groupthink c. escalation of commitment d. group polarization e. risk propensity ANSWER: b 84. In the study of groupthink, what term refers to self-appointed members who shield the group from conflicting information? a. group rationalizers b. group poles c. risky shifters d. self censors e. mindguards ANSWER: e 85. When groupthink occurs, silence is viewed as agreement. This most directly contributes to the a. shared illusion of invulnerability. b. shared illusion of unanimity. c. stereotyped views of "enemy" leaders.

d. unquestioned belief in the group's inherent morality. e. collective efforts to rationalize or dismiss warnings. ANSWER: b 86. To help prevent groupthink, leaders should assign the role of “_____________” to each group member to allow each member to freely voice objections and doubts. a. warning dismisser b. risky shifter c. unquestioned believer d. mindguard e. critical evaluator ANSWER: e 87. Which of the following is true about brainstorming? a. the number of ideas should be limited b. ideas should be criticized and judged quickly c. ideas should not be written down d. implausible ideas should not be suggested e. none of these ANSWER: e 88. Which of the following is a structured variation of a small-group discussion to reach consensus? a. prospect theory b. brainstorming c. the Delphi technique d. the nominal group technique e. none of these ANSWER: d 89. The Delphi technique uses which of the following to gather opinions from experts? a. conference calls b. group meetings c. interviews d. questionnaires e. stream-of-consciousness journals ANSWER: d 90. The Delphi technique is a useful way to gather opinions from experts who a. don't like each other. b. desire anonymity.

c. live far away from each other. d. all of these e. none of these ANSWER: d 91. Creative thinking is enhanced by which of the following? a. attraction to complexity b. high levels of energy c. intelligence d. openness e. all of these ANSWER: e 92. The risk of groupthink may be curbed by increasing the ____________ of senior management. a. homogeneity b. size c. male-to-female ratio d. diversity e. none of these ANSWER: d 93. What term refers to the act of persisting with a failing course of action? a. brainstorming b. groupthink c. escalation of commitment d. group polarization e. risk propensity...