CH9 - Decision-Making (MCQs)
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Questions and Answers

Which of the following statements about decision-making is true?

  • Decisions are only made at the executive level of an organization.
  • Decisions occur at every level, and even small decisions can have a big impact. (correct)
  • Only strategic decisions influence company performance.
  • Routine decisions do not require any judgment or creativity.

    • Which of the following best defines a programmed decision?

  • A decision made in response to a unique and unfamiliar situation.
  • A routine decision that follows established policies or rules. (correct)
  • A decision that requires managers to use creativity and judgment.
  • A decision that always results in an optimal outcome.

    • Which of the following is an example of a non-programmed decision?

  • Approving an employee’s overtime request.
  • Determining an employee’s sick leave eligibility.
  • Developing a marketing campaign for a new product. (correct)
  • Processing a routine customer order.

    • What is the difference between strategic and operational decisions?

    <p>Strategic decisions focus on long-term goals, while operational decisions focus on daily operations. (A)</p> Signup and view all the answers

    Which of the following is a decentralized (bottom-up) decision?

    <p>Employees making scheduling and resource allocation decisions. (B)</p> Signup and view all the answers

    What is the first step in the rational decision-making process?

    <p>Define the problem or opportunity. (C)</p> Signup and view all the answers

    What is status quo bias in decision-making?

    <p>The tendency to avoid change unless the incentive to change is compelling. (B)</p> Signup and view all the answers

    Which of the following is NOT one of the six stages of the rational decision-making process?

    <p>Ignore potential risks and consequences. (D)</p> Signup and view all the answers

    What is escalation of commitment?

    <p>Persisting with a failing course of action despite negative outcomes. (B)</p> Signup and view all the answers

    Which bias causes individuals to rely too much on an initial piece of information when making decisions?

    <p>Anchoring and adjustment bias (B)</p> Signup and view all the answers

    Which concept suggests that decision-making is often limited by available information, time, and resources?

    <p>Bounded rationality (B)</p> Signup and view all the answers

    What is satisficing?

    <p>Selecting the first satisfactory solution instead of the optimal one. (A)</p> Signup and view all the answers

    Which of the following describes intuition in decision-making?

    <p>Using expertise and past experience to make decisions quickly. (B)</p> Signup and view all the answers

    Which leadership style involves employees in decision-making and encourages participation?

    <p>Democratic leadership (A)</p> Signup and view all the answers

    Which of the following is a common error in group decision-making?

    <p>Groupthink, where members prioritize agreement over critical evaluation. (A)</p> Signup and view all the answers

    Which component is NOT part of Teresa Amabile’s three-component model of creativity?

    <p>Financial incentives (C)</p> Signup and view all the answers

    Which ethical standard focuses on producing the greatest good for the greatest number of people?

    <p>Utilitarian standard (A)</p> Signup and view all the answers

    Which ethical standard is concerned with treating people fairly based on a defensible standard?

    <p>Fairness standard (B)</p> Signup and view all the answers

    What is moral disengagement in decision-making?

    <p>Detaching from ethical self-regulation, allowing unethical behavior. (B)</p> Signup and view all the answers

    Where are decisions made in an organization?

    <p>At all levels of the organization. (C)</p> Signup and view all the answers

    Which of the following best describes non-programmed decisions?

    <p>Unique, complex decisions that require judgment and creativity. (C)</p> Signup and view all the answers

    Who proposed the three methods of moral disengagement?

    <p>Albert Bandura (D)</p> Signup and view all the answers

    Which psychologist explored leadership styles relevant to group decision-making?

    <p>Kurt Lewin (B)</p> Signup and view all the answers

    What is a key characteristic of the nominal group technique?

    <p>Ideas are written down before being shared with the group. (B)</p> Signup and view all the answers

    Which of the following is impacted by decision-making?

    <p>All of the above (D)</p> Signup and view all the answers

    What is an example of the halo effect in decision-making?

    <p>Evaluating an employee more favorably because of a single positive characteristic. (B)</p> Signup and view all the answers

    What is the first step in the rational decision-making process?

    <p>Defining the problem or opportunity. (C)</p> Signup and view all the answers

    What is an example of availability bias?

    <p>Overestimating the likelihood of an event because past instances are easily remembered. (A)</p> Signup and view all the answers

    What is post-decisional justification?

    <p>Remembering our decisions as better than they actually were. (A)</p> Signup and view all the answers

    Flashcards

    Decision-Making Levels

    Decisions occur at every level; even small ones can have a big impact.

    Programmed Decision

    A routine decision that follows established policies or rules.

    Non-Programmed Decision

    A decision made without established policies, often unique to a situation.

    Strategic vs Operational Decisions

    Strategic decisions focus on long-term goals, operational on daily tasks.

    Signup and view all the flashcards

    Decentralized Decision

    A decision made by employees rather than top management.

    Signup and view all the flashcards

    First Step of Rational Decision-Making

    The first step is to define the problem or opportunity clearly.

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