 Question 1

1 out of 1 points

A manager is determining what kind of new computers she should purchase for her
department. She has made a list of five different computer models for consideration. Which
stage of the decision-making process is this?
Answer
Selected Answer:
development of alternatives
Correct Answer:
development of alternatives
Response Having a list of models means that the manager is beyond identifying
Feedback: decision criteria. She has identified a group of possible choices-in other
words, she has developed a list of alternatives. Analysis of the alternatives
will be the next step in the process, followed by actually selecting one
particular alternative. The manager would have identified decision criteria
earlier in the process.

 Question 2

1 out of 1 points

Which of the following is an example of a structured problem?

Answer
Selected Answer:
deciding shipping options for a vacuum cleaner
Correct Answer:
deciding shipping options for a vacuum cleaner
Response A structured problem should be straightforward and clear-cut. Of the four
Feedback: choices, only "determining shipping options" requires a simple analysis of
choices and priorities. The other options-designing a new product, hiring a
person to represent you in the legal system, and choosing a football player to
lead your team-all are much less defined and more open ambiguity than the
correct choice; in other words they are unstructured problems.

 Question 3

1 out of 1 points

Which of the following is used to exclusively generate creative ideas in a group setting?
 Answer
Selected Answer:
brainstorming
Correct Answer:
brainstorming
Response Nominal group technique and electronic meetings are meetings in which
Feedback: groups cannot only generate ideas, but also come to decisions, so neither is
exclusively an idea-generating technique. Brainstorming is used exclusively
for generating ideas, so it is the correct response here. Groupthink is a
negative condition that afflicts groups so it is an incorrect response.

 Question 4

1 out of 1 points

One well-accepted model states that individual creativity requires ________, or a

commanding understanding of a subject matter.
Answer
Selected Answer:
expertise
Correct Answer:
expertise
Response A complete understanding of a subject matter or expertise is a necessary
Feedback: component of creativity, according to the model. Task motivation, high
interest, and intuition are all required for creativity, but none of them
describe a thorough understanding of a subject.

 Question 5

1 out of 1 points

Which of the following is NOT assumed in a rational decision?

Answer
Selected Answer:
many alternatives and consequences are known
Correct Answer:
many alternatives and consequences are known
Response The ideal rational decision will feature a clear and specific goal, a problem
Feedback: that is clear and unambiguous, and value is maximized. This ideal decision
 would also require that all, not just many alternatives and consequences,
would be known.

 Question 6

1 out of 1 points

Group decision making typically increases the legitimacy of a decision because the decision
was made ________.
Answer
Selected Answer:
democratically
Correct Answer:
democratically
Response It is hard to argue that a decision that was decided in a democratic manner is
Feedback: not legitimate, making "democratically" the correct response. The period of
time in which a decision was made does not increase its legitimacy. Group
decisions are not likely to be made by experts, so that is not a correct
response. Finally, a group decision from a group in which all members were
not equally empowered would tend to have less, rather than more legitimacy.

 Question 7

1 out of 1 points

A manager wants to invest in one of three start-up companies. All three of the companies
seem to have a good business plan. None of the companies has a track record. The manager
is operating under which condition?
Answer
Selected Answer:
uncertainty
Correct Answer:
uncertainty
Response None of the start-ups has a track record, so the manager cannot reasonably
Feedback: assign probable chances of success for any of them. This means that he is
operating under a condition of uncertainty. Risk would require that the
manager could make reasonable estimates of success for each company.
Certainty would mean that the manager would know how each company
would fare. "Low certainty" is not a recognized decision-making condition.
 Question 8

1 out of 1 points

A retail clothing store manager who estimates how much to order for the current spring
season based on last spring's outcomes is operating under what kind of decision-making
condition?
Answer
Selected Answer:
risk
Correct Answer:
risk
Response The ability to make accurate estimates is the critical element in this question.
Feedback: If the manager can make good estimates, he is operating under risk. If all
outcomes are known, then certainty would apply, while if the situation is too
vague for good estimates, uncertainty would apply. Seasonal is not a
recognized decision-making condition so it is incorrect.

 Question 9

1 out of 1 points

Intuitive decision making can complement ________.

Answer
Selected Answer:
both rationality and bounded rationality
Correct Answer:
both rationality and bounded rationality
Response Intuitive decision making does not conflict with a rational mode of thinking.
Feedback: Instead, intuitive decision making uses experience and feelings to provide
shortcuts to rational decision making. For these reasons, it is clear that both
formal rationality and bounded rationality can have intuitive elements.

 Question 10

1 out of 1 points

Which term best characterizes a decision that has bounded rationality?

Answer
Selected Answer:
 good enough
Correct Answer:
good enough
Response Rather than thought to be perfect or rigorous and thorough, a bounded
Feedback: rationality decision is considered to be just "good enough."

 Question 11

1 out of 1 points

________ can cause people in a group to fail to express their true opinions.
Answer
Selected Answer:
Pressure to conform
Correct Answer:
Pressure to conform
Response Individuals often don't want to be the "squeaky wheel" in a group, so rather
Feedback: than speak up, they feel pressure to conform and go along with the prevailing
group views. Ambiguous responsibility might encourage, rather than
discourage, people to speak up, since it would allow them to escape
consequences for their views. Years of experience also might encourage
people to express their views, since experience might make them feel more
comfortable in the group. Finally, a group that lacks balance would not
predictably affect how eagerly people in a group speak up.

 Question 12

1 out of 1 points

Which of the following is a drawback to seeking diverse views in decision making?

Answer
Selected Answer:
more time consuming
Correct Answer:
more time consuming
Response A major drawback to seeking diverse views is that it takes time to reconcile
Feedback: these views and hammer out a decision that takes all of their best points into
account. Since seeking diverse views is more time-consuming, it does not
make for an easier decision-making process, eliminating that choice. Less
reliable decision can be ruled out because there is no evidence that seeking
 diverse views in any way compromises the quality of the decision itself.

 Question 13

0 out of 1 points

Decisions made by individuals typically suffer from suspicions that the decision maker
________.
Answer
Selected Answer:
is not rational
Correct Answer:
did not consult all interested parties
Response Most organization members trust decision makers to a degree, so individual
Feedback: decisions do not usually suffer from feelings that the decision maker is not
honest or rational. Similarly, it is assumed that the decision maker applied
some kind of analytical skill to the situation. The primary worry for most
organization members is that the decision maker did not get diverse enough
viewpoints to make the decision.

 Question 14

1 out of 1 points

Which of the following traits do all creative people seem to share?

Answer
Selected Answer:
They love their work.
Correct Answer:
They love their work.
Response A large part of creativity is perseverance, so individuals who do not truly
Feedback: love what they do usually do not have the stamina to solve the problems they
are faced with. Getting along well with others and saving time do not help
individuals persevere or aid in the creative process in some other way, so
they are incorrect responses. Not liking to work hard is the opposite of the
case for creative people, as they typically work much harder than other
people in pursuit of their goals.

 Question 15
1 out of 1 points

It is assumed that a rational decision maker ________.

Answer
Selected Answer:
would be objective and logical
Correct Answer:
would be objective and logical
Response A perfectly rational decision maker would always make a "good" decision
Feedback: based on sound reasoning, but he or she could still make the wrong choice in
a given situation. A rational decision maker would face both easy and
difficult problems. Subjectivity and impracticality are not characteristics of a
rational decision maker. The important characteristics of a rational decision
maker are that he or she is rational and logical, meaning that being objective
and logical is the correct response.

 Question 16

1 out of 1 points

Which model of decision making takes advantage of unconscious reasoning?

Answer
Selected Answer:
intuitive
Correct Answer:
intuitive
Response Intuitive decision making uses feelings, memories, experiences, and
Feedback: unconscious reasoning to arrive at decisions. Unlike strictly rational decision
making, intuitive decision making is not a systematic approach. Intuitive
decision making is rational to a degree, making non-rational an incorrect
choice. Factual is not a correct choice because it is not recognized as a
decision making model.

 Question 17

1 out of 1 points

The three main models that managers use to make decisions are ________.
Answer
Selected Answer:
 rational, bounded rational, and intuitive
Correct Answer:
rational, bounded rational, and intuitive
Response Models that managers use to make decisions include the rational model, the
Feedback: bounded rational model, and the intuitive model. The rational model focuses
on being logical and objective. The bounded rational model assumes
limitations on the rational model and makes "good enough" decisions. The
intuitive model employs emotions and subconscious modes of thinking
within a rational context. The other three choices are all incorrect because
they include categories that do not identify decision-making methods:
irrational, unintuitive, and systematic.

 Question 18

1 out of 1 points

Which of the following is an example of an unstructured problem?

Answer
Selected Answer:
choosing the best wardrobe for an executive
Correct Answer:
choosing the best wardrobe for an executive
Response An unstructured problem requires judgment and discrimination among
Feedback: options in a situation in which not all information is available. Only
"choosing the best wardrobe for an executive" fits this description, as
choosing a wardrobe is a subjective act that can be accomplished in many
different ways. The other choices-finding prices, comparing mileage, or
measuring pollution-are straightforward and do not include this ambiguous,
subjective element, so they are incorrect responses.

 Question 19

0 out of 1 points

Decisions, Decisions (Scenario)

Sondra needed help. Her insurance company's rapid growth was necessitating making some
IT changes, but what changes? Should they modify the servers that they currently used, or
purchase an entirely new system? Sondra was confused and needed help in making the
correct decision.
 Sondra has decided to purchase a new system. After obtaining permission, she has ordered
the system from a reputable company. Which stage of the decision-making process is she
carrying out in making the order?
Answer
Selected Answer:
selecting an alternative
Correct Answer:
implementing the alternative
Response In deciding on a new system, Sondra selected an alternative. Prior to that she
Feedback: first identified the problem and after identifying criteria, weighting the
criteria, and developing alternatives, she analyzed those alternatives. Note
that selecting an alternative is not the correct response, because in ordering
the new system Sondra was going beyond merely selecting an alternative and
actually implementing the selected alternative, making implementing the
alternative the correct response.

 Question 20

1 out of 1 points

Mid-level managers in a country with high power distance are ________ than managers from
a low power distance country.
Answer
Selected Answer:
less likely to make risky decisions
Correct Answer:
less likely to make risky decisions
Response High power distance means that leaders have a disproportionate amount of
Feedback: power when compared to subordinates-usually resulting in mid-level
managers making inordinately safe decisions to avoid disapproval from their
superiors. This makes "less likely to make risky decisions" the correct
response. Similarly, high power distance would decrease, rather than
increase, the likelihood of mid-level managers disagreeing with leaders.

 Question 21

1 out of 1 points

Which of the following is LEAST likely to be a decision criterion for a high-tech bicycle
buyer who cares primarily about performance?
 Answer
Selected Answer:
warranty
Correct Answer:
warranty
Response A buyer who is looking for performance would care how sturdy and light the
Feedback: frame was, and how efficient the gears and brakes were. The warranty does
not directly affect performance so it would be least likely to be a decision
criterion for the bike buyer.

 Question 22

1 out of 1 points

A judge consults guidelines before handing down an award for damages in a legal case.
What kind of decision making is she doing?
Answer
Selected Answer:
following a policy
Correct Answer:
following a policy
Response The judge needs to interpret the situation, so she is following a policy. A rule
Feedback: is much too simple and confined for this kind of decision. The decision is
clearly unprogrammed. Finally, the judge must take all kinds of subjective
and human elements into account for the case, so a procedure is an incorrect
choice.

 Question 23

1 out of 1 points

The decision-making process consists of a series of eight steps that identify a problem and
work toward ultimately ________.
Answer
Selected Answer:
solving the problem
Correct Answer:
solving the problem
Response The goal of the decision-making process is to solve the problem that has been
 Feedback: identified. The process assumes that there is a solution to the problem, so
determining if there is a solution to the problem is not correct. The process
includes making a plan to solve the problem and breaking the problem down
into steps. However, ultimately the decision maker wants to implement the
best alternative to solve the problem, then evaluate this alternative to see if it
actually resulted in a successful solution.

 Question 24

1 out of 1 points

The ________ blends the nominal group technique with sophisticated computer technology.
Answer
Selected Answer:
electronic meeting
Correct Answer:
electronic meeting
Response Of the choices, only the electronic meeting combines the anonymous aspect
Feedback: of nominal group technique with computer technology. In an electronic
meeting, participants type in comments without identifying themselves, thus
ensuring that all comments will be taken on an equal basis. A personal
meeting, virtual meeting, or preliminary meeting cannot supply the
anonymity of an electronic meeting, so all three choices are incorrect.

 Question 25

1 out of 1 points

Which three conditions do decision makers face?

Answer
Selected Answer:
certainty, risk, uncertainty
Correct Answer:
certainty, risk, uncertainty
Response The choice indicating certainty, risk, and uncertainty represents the correct
Feedback: choice, citing the three recognized conditions that decision makers face.
Certainty, uncertainty, confidence is eliminated because confidence is not a
recognized decision-making condition. Similarly, the other two choices are
wrong because "risk" is the only recognized decision-making category-"high
risk" and "low risk" are not recognized.