Management Leading and Collaborating in a Competitive World Thomas Bateman 13th Edition- Test Bank
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Sample Test
Management, 13e (Bateman)
Chapter 3 Managerial Decision Making
1) Important, difficult decisions tend to be nonprogrammed, and
they demand creative approaches.
Answer: TRUE
Explanation: Important, difficult decisions tend to be
nonprogrammed, and they demand creative approaches. There are a variety of
possible solutions, all of which have merits and drawbacks. The decision maker
must create or impose a method for making the decision; there is no
predetermined structure on which to rely.
Difficulty: 2 Medium
Topic: Non-programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
2) The manager of a jewelry store faces conflict when she must
decide whether to cut hours for all employees or lay off two employees.
Answer: TRUE
Explanation: Individual decision makers experience
psychological conflict when several options are attractive or when none of the
options is attractive. For instance, a manager may have to decide whom to lay
off when she does not want to lay off anyone.
Difficulty: 2 Medium
Topic: Types of Conflict
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
3) Contingency plans should be developed only after a decision
has been made and implemented.
Answer: FALSE
Explanation: While a manager is evaluating alternatives,
he or she should predict the consequences that will occur if the various
options are put into effect; that is, the best time to imagine scenarios and
develop contingency plans is during the alternative evaluation process.
Difficulty: 2 Medium
Topic: Contingency Plans
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
4) Following all six stages of the decision-making process
guarantees successful decisions.
Answer: FALSE
Explanation: Even if managers reflect on their decision-making
activities and conclude that they executed each step conscientiously, they
still will not know whether the decision will work; after all, nothing
guarantees a good outcome.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
5) When Holden words his suggestions as positively as possible,
his managers are more likely to be interested in them because of the bias known
as the framing effect.
Answer: TRUE
Explanation: Framing effects refer to how problems or
decision alternatives are phrased or presented and how these subjective
influences can override objective facts.
Difficulty: 2 Medium
Topic: Framing Effects
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
6) The most constructive type of conflict is affective conflict.
Answer: FALSE
Explanation: The most constructive type of conflict is
cognitive conflict, or differences in perspectives or judgments about issues.
In contrast, affective conflict is emotional and directed at other people.
Affective conflict is likely to be destructive to the group because it can lead
to anger, bitterness, goal displacement, and lower-quality decisions.
Difficulty: 2 Medium
Topic: Cognitive Conflict
Learning Objective: 03-05 Identify procedures to use in
leading a decision-making group.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) According to some, the most fundamental unit of value is
ideas.
Answer: TRUE
Explanation: Some say that the most fundamental unit of
value is ideas. Creativity is more than just an option; it is essential to
survival.
Difficulty: 2 Medium
Topic: Creativity
Learning Objective: 03-06 Explain how to encourage
creative decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
8) Complimenting one another and telling stories are examples of
behaviors that can make brainstorming less effective.
Answer: TRUE
Explanation: Brainstorming isn’t necessarily as effective
as some people think. Sometimes in a brainstorming session people engage in
noncreative behaviors, including cocktail party-type conversations
(complimenting one another, repeating ideas, telling stories) that are nice but
do not promote creativity.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-06 Explain how to encourage
creative decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
9) The confrontational model of decision making arises when
people disagree on goals or compete with one another for resources.
Answer: FALSE
Explanation: The coalition model of decision making arises
when people disagree on goals or compete with one another for resources. The
decision process becomes political as groups of individuals band together and
try collectively to influence the decision.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-07 Discuss the processes by which
decisions are made in organizations.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) All companies should have a crisis management plan.
Answer: TRUE
Explanation: Although many companies do not concern
themselves with crisis management, it is imperative for it to be on management’s
agenda. Every company should have an effective plan for crisis management.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-08 Describe how to make decisions
in a crisis.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
11) What is the usual state of affairs in managerial decision
making?
1. A)
clear-cut procedures
2. B)
routine situations
3. C)
low risk
4. D)
automatic solutions
5. E)
lack of structure
Answer: E
Explanation: Lack of structure is the usual state of
affairs in managerial decision making. Although some decisions are routine and
clear cut, for most there is no automatic procedure to follow. Problems are
novel and unstructured, leaving the decision maker uncertain about how to
proceed.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
12) Aziz is the owner of a record store and must decide on next
week’s work schedule for his employees. This is an example of a ________
decision.
1. A)
nonprogrammed
2. B)
programmed
3. C)
reprogrammed
4. D)
risky
5. E)
complex
Answer: B
Explanation: A nonprogrammed decision is a new, novel,
complex decision having no proven answers. Making the weekly schedule is a
situation Aziz encounters frequently, and he can use proven formulas to
accomplish it. Making the schedule is therefore a programmed decision.
Difficulty: 2 Medium
Topic: Programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
13) If a manager faces a programmed decision, that means
1. A) a
clear structure or procedure exists for arriving at the right decision.
2. B)
the decision maker has no predetermined structure on which to rely.
3. C)
there are unlimited possible solutions, each of which has merits or drawbacks.
4. D)
the decision maker should be creative in choosing what to do.
5. E)
the decision most likely carries substantial risk.
Answer: A
Explanation: If a manager faces a programmed decision, it
means a clear procedure or structure exists for arriving at the right decision.
Nonprogrammed decisions are used when there is no predetermined structure on
which to rely.
Difficulty: 2 Medium
Topic: Programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
14) Risk exists when the probability of an action being
successful is less than ________ percent and losses may be higher than gains.
1. A) 20
2. B) 40
3. C) 60
4. D) 80
5. E)
100
Answer: E
Explanation: When you can estimate the likelihood of
various consequences but still do not know with certainty what will happen, you
are facing risk. Risk exists when the probability of an action being successful
is less than 100 percent and losses may occur.
Difficulty: 1 Easy
Topic: Management
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
15) When a manager must consider opposing pressures from
different sources, the manager faces
1. A)
risk.
2. B)
conflict.
3. C)
certainty.
4. D)
groupthink.
5. E)
vigilance.
Answer: B
Explanation: Important decisions are more difficult
because of the conflict that managers face. Conflict, which exists when a
manager must consider opposing pressures from different sources, occurs at two
levels—psychological conflict and conflict between people.
Difficulty: 1 Easy
Topic: Conflict
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
16) Emil has been going through the decision-making process. He
diagnosed a problem with the shipping service his company used, identified
alternative shipping services, evaluated those companies, made a choice, and
implemented it. Which of the following statements is an accurate description of
Emil’s decision-making process?
1. A)
Emil has successfully completed the decision-making process.
2. B)
Emil now needs to evaluate the decision he made.
3. C)
Emil left out the first step of the decision-making process.
4. D)
Emil did steps three and four of the decision-making process in reverse order.
5. E)
Emil left out the second step of the decision-making process.
Answer: B
Explanation: The ideal decision-making process includes
six stages: (1) identify and diagnose the problem, (2) generate alternative
solutions, (3) evaluate alternatives, (4) make the choice, (5) implement the
decision, and (6) evaluate the decision. Emil still needs to perform the last
step.
Difficulty: 3 Hard
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) Safa has identified a problem that consists of a gap between
what her company is doing now and what it can do to create a more profitable
future. The “problem” that Safa has identified is also a(n)
1. A)
opportunity.
2. B) danger.
3. C)
benefit.
4. D)
trap.
5. E)
secret.
Answer: A
Explanation: The problem may actually be an opportunity
that needs to be exploited: a gap between what the organization is doing now
and what it can do to create a more positive future. In that case, decisions
involve choosing how to seize the opportunity.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
18) Zorah, the manager of a gift shop, needs a fast solution
when an employee asks for a day off during the busiest shopping week of the
year. A ________ solution will be most helpful to Zorah in this situation.
1. A) customized
2. B)
ready-made
3. C)
creative
4. D)
personal
5. E)
one-time
Answer: B
Explanation: Because a ready-made solution is an idea that
has been seen or tried before, it is likely to be implemented more quickly than
a custom-made solution, which is designed specifically for the problem at hand.
The given scenario illustrates a problem that is likely to recur.
Difficulty: 3 Hard
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) When choosing a phone plan, Felix decides on the first
option that meets the company’s requirements rather than investigating all
available options. This is an example of
1. A) maximizing.
2. B)
compromising.
3. C)
optimizing.
4. D)
satisficing.
5. E)
framing.
Answer: D
Explanation: Satisficing is choosing the first option that
is minimally acceptable or adequate. When satisficing, individuals compare
their choices against their goals, not against other options. The search for
alternatives stops at the first alternative that is okay.
Difficulty: 2 Medium
Topic: Satisficing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
20) In the decision-making process, ________ means achieving the
best possible balance among several goals.
1. A)
maximizing
2. B)
compromising
3. C)
optimizing
4. D)
satisficing
5. E)
framing
Answer: C
Explanation: Optimizing means that a manager achieves the
best possible balance among several goals.
Difficulty: 1 Easy
Topic: Optimizing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
21) When decision makers carefully and conscientiously execute
all six stages of decision making, the decision makers are said to have
exercised
1. A)
optimizing.
2. B)
maximizing.
3. C)
satisficing.
4. D)
vigilance.
5. E)
diligence.
Answer: D
Explanation: Vigilance occurs when decision makers
carefully and conscientiously execute all six stages of decision making,
including making provisions for implementation and evaluation.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
22) Which of the following is a psychological bias that can act
as a barrier to good decision making?
1. A)
framing effects
2. B)
affective conflict
3. C)
cognitive conflict
4. D)
groupthink
5. E)
dialectic
Answer: A
Explanation: People have biases that interfere with
objective rationality. Illusion of control, discounting the future, and framing
effects represent only a few of the many documented subjective psychological
biases in decision making.
Difficulty: 2 Medium
Topic: Framing Effects
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
23) Szandór is a small business owner who thinks it is more
important to spend money on marketing his current product line than to invest
in research to develop new products. Which psychological bias is Szandór
displaying?
1. A)
framing effects
2. B)
discounting the future
3. C)
illusion of control
4. D)
affective conflict
5. E)
cognitive conflict
Answer: B
Explanation: Often, decision makers discount the future.
That is, in their evaluation of alternatives, they weigh short-term costs and
benefits more heavily than longer-term costs and benefits.
Difficulty: 3 Hard
Topic: Decision Making Bias
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) The belief that one can influence events even when one has
no power over what will happen is known as
1. A)
framing effects.
2. B)
discounting the future.
3. C)
illusion of control.
4. D)
affective conflict.
5. E)
cognitive conflict.
Answer: C
Explanation: The belief that one can influence events even
when one has no power over what will happen is known as illusion of control.
Difficulty: 1 Easy
Topic: Illusion of Control
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
25) Which of the following statements about group decision
making is true?
1. A)
Group decisions should rarely be used to address significant business problems.
2. B)
Individual decisions are generally more difficult to reach than group
decisions.
3. C) If
enough time is available, groups usually make higher-quality decisions than
most individuals.
4. D) If
enough time is available, most individuals usually make higher-quality
decisions than a group.
5. E)
There are far more disadvantages than advantages to group decision making.
Answer: C
Explanation: If enough time is available, groups usually
make higher-quality decisions than most individuals acting alone. However,
groups are often inferior to the best individual in decision making.
Difficulty: 2 Medium
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
26) Which of the following is a disadvantage of group decision
making?
1. A)
drawing on more perspectives
2. B)
having a larger pool of information
3. C)
understanding the decision
4. D)
experiencing groupthink
5. E)
being more committed to a decision
Answer: D
Explanation: One potential disadvantage of using a group
to make decisions is groupthink. Groupthink is a phenomenon that occurs in
decision making when group members avoid disagreement as they strive for
consensus.
Difficulty: 2 Medium
Topic: Groupthink
Learning Objective: 03-04Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
27) In goal displacement, a decision-making group
1. A)
loses sight of its original goal and a new, less-important goal emerges.
2. B)
becomes so eager to avoid conflict that it adopts a goal or decision too quickly.
3. C)
generates as many goals as it can but does not allow criticism of people or
ideas.
4. D)
disagrees on goals, or the members compete with one another for resources.
5. E) is
unsure about goals and is in disagreement about what to do.
Answer: A
Explanation: The goal of group members should be to come
up with the best-possible solution to the problem. But when goal displacement
occurs, new goals emerge to replace the original ones. Sometimes saving face
and defeating the other person’s idea become more important than solving the
problem.
Difficulty: 2 Medium
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
28) The three requirements for effective group decision making
are an appropriate leadership style, the constructive use of disagreement and
conflict, and the enhancement of
1. A)
conflict.
2. B)
groupthink.
3. C)
satisficing.
4. D)
creativity.
5. E)
framing.
Answer: D
Explanation: The leader of a decision-making body must
attempt to minimize process-related problems. Furthermore, total and consistent
agreement among group members can be destructive and can lead to groupthink.
Finally, the group may need to be creative in generating ideas, especially if
custom-made solutions to problems are needed.
Difficulty: 2 Medium
Topic: Creativity
Learning Objective: 03-05 Identify procedures to use in
leading a decision-making group.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
29) ________ conflict is differences in perspectives or
judgments about issues.
1. A)
Affective
2. B)
Intellectual
3. C)
Cognitive
4. D)
Emotional
5. E)
Judgmental
Answer: C
Explanation: The most constructive type of conflict is
cognitive conflict, or differences in perspectives or judgments about issues.
In contrast, affective conflict is emotional and directed at other people.
Difficulty: 1 Easy
Topic: Cognitive Conflict
Learning Objective: 03-05 Identify procedures to use in
leading a decision-making group.
Bloom’s: Remember
AACSB: Teamwork
Accessibility: Keyboard Navigation
30) Which of the following statements about brainstorming is
true?
1. A)
Criticism of ideas during the session produces better results.
2. B)
Praise of ideas during the session produces better results.
3. C)
The group should generate as many ideas as possible.
4. D)
Each person keeps his or her ideas private until the end of the session.
5. E)
Participants should avoid building on previous ideas.
Answer: C
Explanation: A common technique used to elicit creative
ideas is brainstorming. Brainstorming is a process in which group members
generate as many ideas about a problem as they can. As the ideas are presented,
they are posted so that everyone can read them, and people can use the ideas as
building blocks. Criticism of other people or their ideas is not allowed.
Difficulty: 2 Medium
Topic: Creativity
Learning Objective: 03-06 Explain how to encourage
creative decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
31) According to Simon’s bounded rationality, which of the
following factors prevents decision makers from being truly rational?
1. A)
They have complete information about alternatives and consequences.
2. B)
The problems they face are too simple and require little thought.
3. C)
Human beings are not exposed to very much information.
4. D)
People have too much time on their hands and overthink decisions as a result.
5. E)
People, including those in the same organization, have conflicting goals.
Answer: E
Explanation: According to Simon’s bounded rationality,
decision makers cannot be truly rational because (1) they have imperfect,
incomplete information about alternatives and consequences; (2) the problems
they face are so complex; (3) human beings simply cannot process all the
information to which they are exposed; (4) there is not enough time to process
all relevant information fully; and (5) people, including managers within the
same firm, have conflicting goals.
Difficulty: 2 Medium
Topic: Bounded Rationality
Learning Objective: 03-07 Discuss the processes by which
decisions are made in organizations.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
32) Nasim’s employees have requested that he switch the office
to flextime so that they can better manage their childcare and commuting
schedules. Nasim is reluctant to make a drastic change all at once, so he
agrees to experiment with staggering the starting and ending times of the
workday over a 90-minute period for three months. If, at the end of that time,
productivity does not decline, he will consider implementing a more extreme
version of flextime. What model of decision-making is Nasim using?
1. A)
bounded rationality
2. B)
incremental
3. C)
coalition
4. D)
garbage can
5. E)
crisis
Answer: B
Explanation: The incremental model of decision making
occurs when decision makers make small decisions, take little steps, and move
cautiously in piecemeal fashion toward a bigger solution.
Difficulty: 3 Hard
Topic: Decision Making Process
Learning Objective: 03-07 Discuss the processes by which
decisions are made in organizations.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) The ________ model of decision making occurs when people are
not sure of their goals, or disagree about the goals, and likewise are unsure
of or in disagreement about what to do.
1. A)
bounded rationality
2. B)
incremental
3. C)
coalition
4. D)
garbage can
5. E)
crisis
Answer: D
Explanation: The garbage can model of decision making
occurs when people are not sure of their goals, or disagree about the goals,
and likewise are unsure of or are in disagreement about what to do. This model
implies that some decisions are chaotic and almost random.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-07 Discuss the processes by which
decisions are made in organizations.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
34) During a crisis that involved a toxic spill, the executives
of Grenier Chemical were straightforward in sharing the bad news with the
public and providing daily updates on the containment and cleanup process. What
is the likely long-lasting effect of this communication strategy?
1. A) a
loss of respect for the company
2. B) a
gain of credibility for the company
3. C) an
increase of anger against the company
4. D) a
decrease of trust in the company
5. E) an
increase in the company’s legal liability
Answer: B
Explanation: As a leader during a crisis, do not pretend
that nothing happened. Communicate and reinforce the organization’s values. Do
not ignore the problems or downplay them and reassure too much; do not create
false hopes. Give people the bad news straight—you will gain credibility, and
when the good news comes, it will really mean something.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-08 Describe how to make decisions
in a crisis.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
35) Which of the following is a new area in which business
crises might occur?
A)pollution
1. B)
labor issues
2. C)
natural disasters
3. D)
crime
4. E)
information technology
Answer: E
Explanation: Information technology is a new area for
crises. Businesses, homes, government agencies, hospitals, and other
organizations send critical information through the Internet and private
networks around the clock, and any technical failure could be magnified by the
speed and widespread use of information technology.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-08 Describe how to make decisions
in a crisis.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
36) Which of the following is a characteristic of managerial
decisions that contributes to the difficulty in making a decision?
1. A)
guaranteed success
2. B)
certainty
3. C)
conflict
4. D)
structure
5. E)
speed
Answer: C
Explanation: Several characteristics of managerial
decisions contribute to their difficulty and pressure. Most managerial
decisions lack structure and entail risk, uncertainty, and conflict.
Difficulty: 2 Medium
Topic: Conflict
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
37) Which of the following decisions is likely to be a
programmed decision?
1. A)
decisions about diversification into new products and markets
2. B)
decisions with uncertainty regarding cause-and-effect relationships
3. C)
decisions about reorganization of state government agencies
4. D)
decisions regarding periodic reorders of inventory
5. E)
decisions involving the purchase of experimental equipment
Answer: D
Explanation: Programmed decisions have been encountered
and made before. They have objectively correct answers and can be solved by
using simple rules, policies, or numerical computations. Decisions about
periodic reorder of inventory are examples of programmed decisions.
Difficulty: 2 Medium
Topic: Programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
38) Which of the following decisions is likely to be a
nonprogrammed decision?
1. A)
decisions with certainty regarding cause-and-effect relationship
2. B)
decisions concerning diversification into new products and markets
3. C)
decisions regarding rules and definite procedures
4. D)
decisions concerning a merit system for promotion of state employees
5. E)
decisions that depend on numerical computations
Answer: B
Explanation: Nonprogrammed decisions are decisions concerning
new, novel, complex decisions having no proven answers. They have a variety of
possible solutions, all of which have merits and drawbacks. Decisions
concerning diversification into new products and markets are likely to be
nonprogrammed decisions.
Difficulty: 2 Medium
Topic: Non-programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
39) Important, difficult decisions that require creative
approaches tend to be
1. A)
vigilant decisions.
2. B)
programmed decisions.
3. C)
non-vigilant decisions.
4. D)
nonprogrammed decisions.
5. E)
structured decisions.
Answer: D
Explanation: Nonprogrammed decisions are new, novel, complex
decisions having no certain outcomes. Important, difficult decisions tend to be
nonprogrammed, and they demand creative approaches.
Difficulty: 2 Medium
Topic: Non-programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
40) Yolanda is trying to decide how to diversify her company so
that it produces a larger variety of products and competes in new markets. This
is a(n) example of a ________ decision.
1. A)
routine
2. B)
programmed
3. C)
cognitive
4. D)
nonprogrammed
5. E)
noncognitive
Answer: D
Explanation: Yolanda is facing a nonprogrammed decision;
that is, it is a new, novel, complex decision having no certain outcomes.
Difficulty: 2 Medium
Topic: Non-programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
41) Ariel, a federal government employee, works in acquisition
and procurement. Federal policies require that in contracting with suppliers,
at least three bids must be received, and the lowest bid that meets
specifications will be accepted. In this case, Ariel is dealing with a(n)
1. A)
cognitive conflict.
2. B)
programmed decision.
3. C)
affective conflict.
4. D)
nonprogrammed decision.
5. E)
unstructured problem.
Answer: B
Explanation: Programmed decisions have been encountered
and made before, have objectively correct answers, and are solvable by using
simple rules, policies, or numerical computations. Ariel faces a programmed
decision because a clear procedure or structure exists for arriving at the
right decision.
Difficulty: 2 Medium
Topic: Programmed Decisions
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
42) The state that exists when the probability of success is
less than 100 percent and losses may occur is called
1. A)
conflict.
2. B)
probability analysis.
3. C)
risk.
4. D)
certainty.
5. E)
policy formulation.
Answer: C
Explanation: Risk exists when the probability of an action
being successful is less than 100 percent and losses may occur. If a decision
is a wrong one, the person may lose money, time, reputation, or other important
assets.
Difficulty: 1 Easy
Topic: Management
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
43) Which of the following is the best definition of conflict?
1. A) a
situation that includes opposing pressures from different sources
2. B)
the state that exists when decision makers have accurate, comprehensive
information
3. C) a
novel, complex decision with no right or wrong answers
4. D)
the state that exists when the probability of success is less than 100 percent
5. E)
creative ideas that have never been seen or tried before
Answer: A
Explanation: Conflict occurs when there are opposing
pressures from different sources, occurring on the level of psychological
conflict or of conflict between individuals or groups.
Difficulty: 1 Easy
Topic: Conflict
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
44) Joaquín, a human resources manager, has to lay off either of
two department heads, Coral or Mike, because the downsizing process that is
going on in the organization calls for the merging of their two departments.
However, Joaquín cannot decide whom to lay off, since they are both excellent
managers and he does not want to dismiss either of them. In this case, Joaquín
is having a difficult time making a decision due to experiencing ________
conflict.
1. A)
interdependence
2. B)
organizational
3. C)
cognitive
4. D)
psychological
5. E)
affective
Answer: D
Explanation: Conflict occurs when there are opposing
pressures from different sources, occurring on the level of psychological
conflict or of conflict between individuals or groups. For instance, a manager
may have to decide whom to lay off when he or she does not want to lay off
anyone.
Difficulty: 3 Hard
Topic: Types of Conflict
Learning Objective: 03-01 Describe the kinds of decisions
you will face as a manager.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) In an ideal decision-making process, the initial step is to
1. A)
select an alternative.
2. B)
evaluate the decision.
3. C)
challenge the status quo.
4. D)
generate alternatives.
5. E)
identify the problem.
Answer: E
Explanation: The ideal decision-making process includes
six phases. The decision makers should (1) identify and diagnose the problem,
(2) generate alternative solutions, (3) evaluate alternatives, (4) make the
choice, (5) implement the decision, and (6) evaluate the decision.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
46) The manager of the Silver Sands Hotel noticed a tremendous
decrease in the number of convention bookings. He promptly ordered the redecoration
of the hotel’s meeting rooms. Customer feedback later indicated that the
problem had not been the meeting facilities but poor service from the cleaning
staff. In this scenario, to try and solve the problem, the manager should have
first tried to
1. A)
generate alternate solutions.
2. B)
hire more qualified employees.
3. C)
identify the problem.
4. D)
reduce the price of all products.
5. E)
spend more on marketing and advertisement.
Answer: C
Explanation: Rather than promptly changing the
decorations, the manager must dig deeper and attempt to identify the problem
causing the decrease in the number of customers.
Difficulty: 3 Hard
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) Once a solution to a problem is chosen, the next phase in
the decision-making process involves
1. A)
evaluating alternatives.
2. B)
evaluating consequences.
3. C)
generating information.
4. D) implementing
the decision.
5. E)
generating alternative solutions.
Answer: D
Explanation: The fifth phase of decision making involves
implementing the solution that was chosen in the previous step.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
48) When a solution is specifically designed for a particular
problem or set of problems, it is referred to as
1. A)
groupthink.
2. B) a
programmed decision.
3. C) a
ready-made solution.
4. D) a
contingency plan.
5. E) a
custom-made solution.
Answer: E
Explanation: Custom-made solutions must be designed for
specific problems. This technique often combines ideas into new, creative
solutions.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
49) Alternative courses of action that can be implemented based
on how the future unfolds are referred to as
1. A)
programmed decisions.
2. B)
contingency plans.
3. C)
ready-made solutions.
4. D)
satisficing plans.
5. E)
maximizing plans.
Answer: B
Explanation: Sometimes decision makers can build in
safeguards against an uncertain future by considering the potential
consequences of several different scenarios. They then generate contingency
plans, which are alternative courses of action that can be implemented depending
on how the future unfolds.
Difficulty: 1 Easy
Topic: Contingency Plans
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
50) Celeste is the manager of Classy Clutches, a store that
sells designer purses. Celeste knows that the economy greatly affects her
business. Therefore, she is developing alternative courses of action for each
of the four possible economic outcomes that may occur over the next four to six
years. In this scenario, Celeste is
1. A)
implementing a decision.
2. B)
generating contingency plans.
3. C)
making a programmed decision.
4. D)
engaging in satisficing.
5. E)
following the garbage can model.
Answer: B
Explanation: Sometimes, decision makers can build in
safeguards against an uncertain future by considering the potential
consequences of several different scenarios. They then generate contingency
plans, which are alternative courses of action that can be implemented depending
on how the future unfolds. This is what Celeste is doing in the given scenario.
Difficulty: 2 Medium
Topic: Contingency Plans
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
51) ________ requires searching thoroughly for a complete range
of alternatives, carefully assessing each alternative, comparing one to
another, and then choosing or creating the very best.
1. A) Benchmarking
2. B)
Maximizing
3. C)
Framing
4. D)
Satisficing
5. E)
Optimizing
Answer: B
Explanation: The maximizing decision realizes the greatest
positive consequences and the fewest negative consequences. Maximizing requires
searching thoroughly for a complete range of alternatives, carefully assessing
each alternative, comparing one to another, and then choosing or creating the
very best.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
52) Kai needs to hire a new landscaping service to take care of
the small garden outside his dental office. He knows what tasks he wants done
and how much he is willing to pay per week, and he hires the first service that
agrees to his terms. Such an action is referred to as
1. A)
optimizing.
2. B)
satisficing.
3. C)
maximizing.
4. D)
minimizing.
5. E)
framing.
Answer: B
Explanation: Satisficing is choosing the first option that
is minimally acceptable or adequate. Satisficing means that a search for
alternatives stops after finding one that is okay.
Difficulty: 2 Medium
Topic: Satisficing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
53) Gemma, an administrative assistant in the print shop of a
large company, orders office supplies biweekly; today, she needs copier paper
and ink cartridges. She looks at the office supply catalog and, because the
consequences are not huge, quickly picks a selection for each product that is
priced acceptably. In this scenario, Gemma is using
1. A)
management by exception.
2. B)
optimizing.
3. C)
satisficing.
4. D)
the garbage can model.
5. E)
maximizing.
Answer: C
Explanation: When individuals satisfice, they compare
their choices against their goals, not against other options. Satisficing is
choosing an option that is acceptable (the first items Gemma saw that were
priced acceptably), although not necessarily the best or perfect.
Difficulty: 2 Medium
Topic: Satisficing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
54) Managers who optimize their decisions will attempt to
1. A)
choose the first, minimally acceptable alternative.
2. B)
select the decision that is fastest to make.
3. C)
find the least expensive option available in the market.
4. D)
decide on whatever produces the least challenge or conflict.
5. E)
achieve the best possible balance among several goals.
Answer: E
Explanation: Optimizing means that a manager achieves the
best possible balance among several goals. An optimizing strategy is the one
that achieves the best balance among multiple goals.
Difficulty: 2 Medium
Topic: Optimizing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
55) Rakesh, a manager at Fieldston Brothers Department Store,
needs to purchase a new secure display case for the jewelry department. He
wants one that is high in quality and security, yet low in price. After
evaluating the options, he chooses a case that is neither the highest quality
available nor the lowest in price available, but has a good combination of
attributes. In this case, Rakesh’s choice best illustrates
1. A)
the garbage can model.
2. B)
satisficing.
3. C) optimizing.
4. D)
the coalition model.
5. E)
bounded rationality.
Answer: C
Explanation: Optimizing is achieving the best possible
balance among several goals. Rakesh balanced goals of high quality, security,
and low price.
Difficulty: 3 Hard
Topic: Optimizing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) Swann Brothers Chocolatiers is a new company that makes
specialty, gourmet confections and markets to upscale restaurants and the
general public, particularly hip, young people with money to spend on luxuries.
They need to find a location for their new shop and kitchen. The real estate
agent they have contracted shows them several available commercial spaces in
the area. Given their goals, if they are optimizing their decision, which of
the following represents their best choice?
1. A) a
former nail salon in a trendy neighborhood recently voted “most walkable”
2. B) a
former candy store with a small prep area in a busy, discount outlet mall
3. C) a
former shoe store in a strip mall with lots of drive-by visibility but little
walk-by traffic
4. D) a
former restaurant two doors down from a competitor, Herrmann’s Confectioner’s
5. E) a
former café in a historic building surrounded by trendy restaurants and chic
boutiques
Answer: E
Explanation: Optimizing means that you achieve the best
possible balance among several goals. The former café represents a good balance
of the criteria Swann Brothers are using to choose the right location for their
shop. The historic location conveys the right image, and the surrounding
businesses will attract the kind of patrons they are seeking. Because the
location is a former café, it likely already has the proper facilities
necessary for the business and will require little to no renovation.
Difficulty: 3 Hard
Topic: Optimizing
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) The final phase in the decision-making process is
1. A)
anticipating the results.
2. B)
implementing the solution.
3. C)
diagnosing remaining issues.
4. D)
criteria analysis.
5. E)
evaluating the decision.
Answer: E
Explanation: The final stage in the decision-making
process is evaluating the decision. It involves collecting information on how
well the decision is working.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making “rational”
decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
58) Negative feedback received during the final evaluation of
the decision either means that ________ or the decision was a bad one.
1. A)
the problem cannot be solved
2. B)
more financing is required to implement the changes
3. C)
the manager is not capable of rational decisions
4. D)
implementation will require more time
5. E)
not enough resources were allocated to the problem
Answer: D
Explanation: Decision evaluation is useful whether the
conclusion is positive or negative. Negative feedback means that either (1)
implementation will require more time, resources, effort, or thought or (2) the
decision was a bad one.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-02 Summarize the steps in making
“rational” decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
59) Vigilance in decision making means the
1. A)
customer realizes increased value as a result of the decision.
2. B)
manager has carefully completed all stages in the decision-making process.
3. C)
manager has overdone the decision-making process.
4. D)
employees have full control over the decision-making process.
5. E)
employees have been monitored to see their reactions to the decision.
Answer: B
Explanation: Vigilance occurs when the decision makers
carefully and conscientiously execute all six phases of decision making,
including making provisions for implementation and evaluation.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
60) Illusion of control, discounting the future, and framing
effects are all examples of
1. A)
social realities.
2. B)
psychological biases.
3. C)
goal displacement.
4. D)
vigilance.
5. E)
time pressures.
Answer: B
Explanation: People have biases that interfere with
objective rationality. Illusion of control, discounting the future, and framing
effects represent only a few of the many documented subjective psychological
biases in decision making.
Difficulty: 2 Medium
Topic: Decision Making Bias
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
61) The psychological bias known as “illusion of control” refers
to a belief that
1. A)
the employees will always agree with the decisions made by the manager.
2. B)
one can influence events even when one has no control over what will happen.
3. C)
employees do not have confidence in a manager’s abilities.
4. D)
one has no control and therefore does not put any effort into the decision.
5. E)
managers’ with wider spans of control tend to perform effectively.
Answer: B
Explanation: The illusion of control is a belief that one
can influence events even when one has no control over what will happen. In
business, such overconfidence can lead to failure because decision makers
ignore risks and fail to objectively evaluate the odds of success.
Difficulty: 2 Medium
Topic: Illusion of Control
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
62) Parker believes that as long as he pays good wages and
treats his workers fairly, he can keep employee turnover to a minimum even
though his store is located in a community that is known for having a transient
population. Parker’s belief is an example of which of the following
psychological biases?
1. A)
illusion of control
2. B)
framing effects
3. C)
discounting the future
4. D)
time pressure
5. E)
social realities
Answer: A
Explanation: The illusion of control is a belief that one
can influence events even when one has no control over what will happen. In
business, such overconfidence can lead to failure because decision makers
ignore risks and fail to objectively evaluate the odds of success.
Difficulty: 3 Hard
Topic: Illusion of Control
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) Which of the following is a decision bias influenced by the
way in which a problem or decision alternative is phrased or presented?
1. A)
groupthink
2. B)
satisficing
3. C)
goal displacement
4. D)
framing effects
5. E)
illusion of control
Answer: D
Explanation: Framing effects refers to a decision bias
influenced by the way in which a problem or decision alternative is phrased or
presented and how these subjective influences can override objective facts.
Difficulty: 2 Medium
Topic: Framing Effects
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
64) Which of the following involves weighting short-term costs
and benefits more heavily than longer-term costs and benefits?
1. A)
framing effects
2. B)
cognitive conflict
3. C)
illusion of control
4. D)
social realities
5. E)
discounting the future
Answer: E
Explanation: Often decision makers discount the future.
That is, in their evaluation of alternatives, they weigh short-term costs and
benefits more heavily than longer-term costs and benefits.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
65) Discounting the future refers to
1. A)
valuing long-term benefits and costs more heavily than short-term benefits and
costs.
2. B)
overestimating the long-term effects of the decision.
3. C)
underestimating the short-term effects of the decision.
4. D)
valuing short-term benefits and costs more heavily than longer-term benefits
and costs.
5. E)
making quick decisions with whatever information is at hand.
Answer: D
Explanation: Often decision makers discount the future.
That is, in their evaluation of alternatives, they weigh short-term costs and
benefits more heavily than longer-term costs and benefits.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
66) Which of the following is the best example of a manager
discounting the future?
1. A) a
manager believing that he or she can control the outcome of any decision
2. B) a
manager planning for the long-term stability of a company
3. C) a
manager depending on programmed decisions for all issues
4. D) a
manager framing the decision alternatives to influence selection
5. E) a
manager focusing on quarterly profits instead of the long-term vision
Answer: E
Explanation: Often decision makers discount the future.
That is, in their evaluation of alternatives, they weigh short-term costs and
benefits more heavily than longer-term costs and benefits.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
67) Real-time information is information that
1. A) is
obtained with little or no delay.
2. B) is
based only on past performance.
3. C)
focuses on futuristic forecasts.
4. D) is
based on adjusted predictions.
5. E) is
discounted for the future.
Answer: A
Explanation: Instead of relying on old data, long-range
planning, and futuristic forecasts, managers should focus on real-time
information: current information obtained with little or no time delay.
Difficulty: 1 Easy
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
68) Each morning, Atlas Hardware’s CEO has a computer-based
conference with all store managers. The previous day’s data and challenges are
discussed so that problems can be quickly and effectively resolved or even
avoided. In this case, Atlas Hardware is utilizing ________ to retain a
competitive edge.
1. A)
social realities
2. B) real-time
information
3. C)
psychological biases
4. D)
framing effects
5. E)
nonprogrammed decisions
Answer: B
Explanation: Managers under time pressure can make
decisions that are timely and of high quality in part by using real-time
information. The CEO of Atlas Hardware is relying on frontline managers for
real-time information to stay competitive.
Difficulty: 2 Medium
Topic: Decision Making Process
Learning Objective: 03-03 Recognize the pitfalls you
should avoid when making decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
69) ________ is an advantage of using a group for decision
making.
1. A)
Intellectual stimulation
2. B)
Domination by one member
3. C)
Groupthink
4. D)
Satisficing
5. E)
Goal displacement
Answer: A
Explanation: Group discussion provides an opportunity for
intellectual stimulation, and it can get people thinking and unleash their
creativity to a far greater extent than would be possible with individual
decision making.
Difficulty: 2 Medium
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
70) Terra is the owner of Arcadia Salon and Spa and is looking
to add some new spa services. Terra interviewed her staff to get their opinions
and ideas, and she invited everyone to participate in deciding which ideas to
advance. Staff members were then aware of the various options and recognized
the benefits and costs of each. In this scenario, involving the staff has
helped people to
1. A)
dominate the discussion.
2. B)
use groupthink to gain buy-in.
3. C)
please everyone completely.
4. D)
believe in the illusion of control.
5. E)
understand the decisions.
Answer: E
Explanation: People who participate in a group discussion
are more likely to understand why the decision was made. They will have heard
the relevant arguments both for the chosen alternative and against the rejected
alternatives.
Difficulty: 3 Hard
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Analyze
AACSB: Teamwork
Accessibility: Keyboard Navigation
71) Which of the following is a disadvantage of group decisions?
1. A)
People tend to settle for satisficing.
2. B)
There is a smaller pool of information.
3. C)
The employees are not intellectually stimulated.
4. D)
There are multiple perspectives to the decision.
5. E)
There is more transparency among employees.
Answer: A
Explanation: Satisficing is more likely with groups. Most
people do not like meetings and will do what they can to end them. This may
include criticizing members who want to continue exploring new and better
alternatives. The result is a satisficing rather than an optimizing or maximizing
decision.
Difficulty: 2 Medium
Topic: Satisficing
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
72) Allowing one person to control a discussion or decision is
known as
1. A)
groupthink.
2. B)
devil’s advocacy.
3. C)
individual dominance.
4. D)
vigilance.
5. E)
dialectic.
Answer: C
Explanation: Sometimes one group member dominates the
discussion. When this occurs, such as when a strong leader makes his or her
preferences clear, the result is the same as it would be if the dominant
individual made the decision alone. This explains individual dominance.
Difficulty: 1 Easy
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Remember
AACSB: Teamwork
Accessibility: Keyboard Navigation
73) Imani, a manager at Scribbles Specialty Paper Company, was
disappointed with her team’s discussion regarding next year’s marketing
campaign. Van, a fellow manager, pushed all his ideas through; they were good,
but nobody else got a word in or had the opportunity to share. This group
experienced
1. A)
vigilance.
2. B)
individual dominance.
3. C)
satisficing.
4. D)
intellectual stimulation.
5. E)
goal displacement.
Answer: B
Explanation: Individual dominance refers to a strong group
member who makes his or her preferences clear as Van did, with the result being
the same as it would be if Van made the decision alone.
Difficulty: 3 Hard
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Analyze
AACSB: Teamwork
Accessibility: Keyboard Navigation
74) A phenomenon that occurs in decision making when group
members avoid disagreement as they strive for consensus is known as
1. A)
goal displacement.
2. B)
domination.
3. C)
intuition.
4. D)
groupthink.
5. E)
satisficing.
Answer: D
Explanation: Pressure to avoid disagreement can lead to a
phenomenon called groupthink. It occurs when people choose not to disagree or
raise objections because they do not want to break up a positive team spirit.
They want to think as one, tolerate no dissent, and strive to remain cordial.
Difficulty: 1 Easy
Topic: Groupthink
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Remember
AACSB: Teamwork
Accessibility: Keyboard Navigation
75) When a group accepts an alternative that seems to please the
members of the group, but the group has not taken the time or effort to explore
many options, the group has
1. A)
exercised groupthink.
2. B)
stimulated the intellects of its members.
3. C)
made an optimizing decision.
4. D)
exercised vigilance.
5. E)
participated in goal displacement.
Answer: A
Explanation: Pressure to avoid disagreement can lead to a
phenomenon called groupthink. It occurs when people choose not to disagree or
raise objections because they do not want to break up a positive team spirit.
They want to think as one, tolerate no dissent, and strive to remain cordial.
Difficulty: 2 Medium
Topic: Groupthink
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
76) Groups that are excessively concerned with maintaining a
positive team spirit are likely to experience
1. A)
individual dominance.
2. B)
goal displacement.
3. C)
brainstorming.
4. D)
groupthink.
5. E)
maximizing.
Answer: D
Explanation: Pressure to avoid disagreement can lead to a
phenomenon called groupthink. It occurs when people choose not to disagree or
raise objections because they do not want to break up a positive team spirit.
They want to think as one, tolerate no dissent, and strive to remain cordial.
Difficulty: 2 Medium
Topic: Groupthink
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Understand
AACSB: Teamwork
Accessibility: Keyboard Navigation
77) A condition that occurs when a decision-making group loses
sight of its original goal and a new, possibly less important, goal emerges is
known as
1. A)
goal displacement.
2. B)
groupthink.
3. C) a
framing effect.
4. D)
goal alignment.
5. E)
goal realization.
Answer: A
Explanation: The goal of group members should be to come
up with the best possible solution to a problem. But when goal displacement
occurs, new goals emerge to replace the original ones. Winning an argument
becomes the new goal.
Difficulty: 1 Easy
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Remember
AACSB: Teamwork
Accessibility: Keyboard Navigation
78) White Gazebo Wedding Planners has had great success through
partnering with other local businesses to offer all-in-one wedding package
deals. Recently, they have been working with Zephyr Hot Air Balloon Tours to
offer a premium wedding package that includes a sunset balloon tour. However,
Zephyr’s team have designed an advertising brochure that many White Gazebo
staff feel does not reflect well upon their image as a modern, non-traditional
wedding planner. Rahim, the owner/manager, Maria, the assistant manager, Greg,
the head of marketing, and Tisha, the web designer, have a meeting to address
this issue, but the discussion does not go as planned. Based on your knowledge
of goal displacement, which scenario below most likely took place?
1. A)
Maria and Greg begin discussing the artistic merits of the brochure, but they
soon begin arguing about who should discuss the problem with Zephyr.
2. B)
Greg says that his team will go ahead and design a new brochure, and because it
is late Friday afternoon, the other team members defer to his judgment.
3. C)
Maria, Greg, and Rahim debate the problems with the brochure, while Tisha sits
around, only half listening and playing games on her phone.
4. D)
Maria and Tisha have come up with several viable solutions, but Greg keeps
interrupting them, generally dominating the conversation.
5. E)
Rahim suggests they scrap the whole collaboration with Zephyr because it is the
simplest solution and requires little effort or thought.
Answer: A
Explanation: Goal displacement often occurs in groups. The
goal of group members should be to come up with the best possible solution to
the problem. But when goal displacement occurs, new goals emerge to replace the
original ones. It is common for two or more group members to have different
opinions and present their conflicting cases. Attempts at rational persuasion become
heated disagreement. In this case, the argument between Maria and Greg best
represents goal displacement, where winning the argument has become the new
goal.
Difficulty: 3 Hard
Topic: Conflict
Learning Objective: 03-04 Evaluate the pros and cons of using
a group to make decisions.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) ________ occurs when a group member is more interested in
winning an argument than solving a problem.
1. A)
Framing
2. B)
Goal displacement
3. C)
Groupthink
4. D)
Satisficing
5. E)
Synergy
Answer: B
Explanation: The goal of group members should be to come
up with the best possible solution to a problem. But when goal displacement
occurs, new goals emerge to replace the original ones. Winning an argument
becomes the new goal.
Difficulty: 1 Easy
Topic: Groups and Teams
Learning Objective: 03-04 Evaluate the pros and cons of
using a group to make decisions.
Bloom’s: Remember
AACSB: Teamwork
Accessibility: Keyboard Navigation
80) Leaders of decision-making groups should
1. A)
discourage cognitive conflict.
2. B)
encourage groupthink.
3. C)
help the group satisfice.
4. D)
ask for members’ opinions.
5. E)
dominate the discussion.
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