Question 1

Groupthink causes the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.

Accepted Answer

A) True 
 B)False

Question 2

The classical decision-making model assumes that managers require very little or no information in order to make an optimum decision.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a guideline to promoting individual creativity in an organization?

Accepted Answer

A)   Creativity increases when managers pressure employees to deliver creative solutions quickly.
B)   Building a shared vision can curb an individual's sense of creativity.
C)   Creativity results when employees have an opportunity to experiment.
D)   Employees must be penalized for ideas that seem outlandish.
E)   Contests and rewards reduce the importance of coming up with creative ideas.F) B) and D)
G) A) and B)

Question 4

_____ is the decision-making method in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

Accepted Answer

A)   Delphi technique
B)   Dialectical inquiry
C)   Brainstorming
D)   Nominal group technique
E)   Devil's advocacyF) C) and D)
G) D) and E)

Question 5

Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously. What type of decision would this represent?

Accepted Answer

A)   Automatic
B)   Rule-based
C)   Predetermined
D)   Nonprogrammed
E)   InconsequentialF) All of the above
G) A) and B)

Question 6

Which of the following is true of a learning organization?

Accepted Answer

A)   Allowing individuals to develop a personal sense of mastery is detrimental to organizational learning.
B)   Organizations need to encourage employees to develop and use complex mental models.
C)   Individual learning is more important than team learning in increasing organizational learning.
D)   Building a shared vision can curb an individual's sense of creativity.
E)   Creativity increases when managers pressure employees to deliver creative solutions quickly.F) A) and E)
G) B) and C)

Question 7

Decision making in response to threats occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholder groups.

Accepted Answer

A) True 
 B)False

Question 8

Steven, a marketing manager, wants to budget the advertising for a new product launch. He is trying to determine the amount of money that the company can afford to spend on advertising. Which criterion of decision making is he focusing on?

Accepted Answer

A)   Legality
B)   Ethicality
C)   Economic feasibility
D)   Practicality
E)   Product sustainabilityF) A) and E)
G) C) and D)

Question 9

Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. What type of decision is this?

Accepted Answer

A)   Intuitive
B)   Groupthink
C)   Satisficing
D)   Programmed
E)   BoundedF) D) and E)
G) A) and C)

Question 10

Which of the following is an assumption made by the classical model?

Accepted Answer

A)   There is no optimum decision.
B)   There is more than one alternative.
C)   There is only one alternative.
D)   Managers have access to all the information they need.
E)   Managers are not capable of making the right decisions.F) C) and E)
G) C) and D)

Question 11

Mistakes in decision making that some managers make repeatedly are known as:

Accepted Answer

A)   dialectical errors.
B)   programmed decisions.
C)   nonprogrammed decisions.
D)   intuitive judgments.
E)   systematic errors.F) A) and B)
G) A) and C)

Question 12

Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35. This can be classified as a(n)  _____ decision.

Accepted Answer

A)   programmed
B)   heuristic
C)   brainstormed
D)   intuitive
E)   creativeF) B) and C)
G) None of the above

Question 13

Which of the following would be considered a programmed decision by James Calloway, CEO of FSE Inc.?

Accepted Answer

A)   Launching a new promotional campaign
B)   Hiring additional staff
C)   Entering a new market
D)   Expanding operations internationally
E)   Developing a new product lineF) A) and D)
G) B) and E)

Question 14

Discuss the four sources of bias that can adversely affect the way managers make decisions.

Accepted Answer

not answered
Explanation:Four sources of...

Question 15

Dialectical inquiry is easier to implement than devil's advocacy to blunt the effects of groupthink in group decision making.

Accepted Answer

A) True 
 B)False

Question 16

The first step in the decision-making process is to recognize the need for a decision.

Accepted Answer

A) True 
 B)False

Question 17

To deal with opportunities and threats, managers must select one solution from a set of alternatives. This process is known as _____.

Accepted Answer

A)   groupthink
B)   intuition
C)   decision making
D)   bounded rationality
E)   heuristicsF) C) and D)
G) B) and D)

Question 18

The tendency of managers to ignore critical information is not as serious as the existence of incomplete information.

Accepted Answer

A) True 
 B)False

Question 19

_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Accepted Answer

A)   Uncertainty
B)   Incomplete information
C)   Risk
D)   Ambiguity
E)   Cognitive limitationF) D) and E)
G) A) and C)

Question 20

Which of the following is an accurate description of satisficing?

Accepted Answer

A)   Viewing problems from a fresh perspective to come up with creative alternative solutions to specific problems
B)   Generating creative alternatives to solve problems and taking advantage of opportunities by abandoning existing mind-sets
C)   Conducting a retrospective analysis to see what can be learned from past successes or failures
D)   Searching for and choosing acceptable or satisfactory ways to respond to problems and opportunities rather than trying to make the optimal decision
E)   Seeking and using information that is consistent with prior beliefs and ignoring information that contradicts those beliefsF) C) and D)
G) A) and E)

Exam 7: Decision Making, Learning, Creativity, and Entrepreneurship

The first step in the decision-making process is to recognize the need for a decision.

Correct AnswerverifiedShow Answer

To deal with opportunities and threats, managers must select one solution from a set of alternatives. This process is known as _____.

Correct AnswerverifiedShow Answer

Steven, a marketing manager, wants to budget the advertising for a new product launch. He is trying to determine the amount of money that the company can afford to spend on advertising. Which criterion of decision making is he focusing on?

Correct AnswerverifiedShow Answer

The tendency of managers to ignore critical information is not as serious as the existence of incomplete information.

Correct AnswerverifiedShow Answer

Decision making in response to threats occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholder groups.

Correct AnswerverifiedShow Answer

The classical decision-making model assumes that managers require very little or no information in order to make an optimum decision.

Correct AnswerverifiedShow Answer

Which of the following is a guideline to promoting individual creativity in an organization?

Correct AnswerverifiedShow Answer

_____ is the decision-making method in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

Correct AnswerverifiedShow Answer

Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously. What type of decision would this represent?

Correct AnswerverifiedShow Answer

Barbara, a school superintendent, hires an additional teacher whenever the student enrollment in a grade goes beyond 35. This can be classified as a(n) _____ decision.

Correct AnswerverifiedShow Answer

Which of the following is an assumption made by the classical model?

Correct AnswerverifiedShow Answer

_____ is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Correct AnswerverifiedShow Answer

Which of the following is an accurate description of satisficing?

Correct AnswerverifiedShow Answer

Discuss the four sources of bias that can adversely affect the way managers make decisions.

Correct Answerverifiednot answeredExplanation:Four sources of...View AnswerShow Answer

Which of the following would be considered a programmed decision by James Calloway, CEO of FSE Inc.?

Correct AnswerverifiedShow Answer

Dialectical inquiry is easier to implement than devil's advocacy to blunt the effects of groupthink in group decision making.

Correct AnswerverifiedShow Answer

Which of the following is true of a learning organization?

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Peggy, a foreman at a petrochemical plant, asks the plant superintendent to hire an additional worker whenever overtime hours for the previous month increase by more than 15 percent over the headcount. What type of decision is this?

Correct AnswerverifiedShow Answer

Mistakes in decision making that some managers make repeatedly are known as:

Correct AnswerverifiedShow Answer

Groupthink causes the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.

Correct AnswerverifiedShow Answer

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Explanation:Four sources of...
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