60 Questions
True or false: The decision-making process involves choosing from two or more alternatives.
True
True or false: Decision making is a simple act of choosing among alternatives.
False
True or false: Top level managers make decisions about weekly or monthly production schedules.
False
True or false: The decision-making process consists of eight steps.
True
True or false: A problem is a desired goal or purpose.
False
True or false: Decision making is a comprehensive process.
True
True or false: Biases have no effect on decision making.
False
True or false: Every decision starts with a problem.
True
True or false: Identifying the problem is the first step in the decision-making process.
True
True or false: Problems can be easily distinguished from symptoms of the problem.
False
True or false: Decision criteria are factors that are important to resolving the problem.
True
True or false: Decision criteria are always of equal importance.
False
True or false: Developing alternatives is the final step in the decision-making process.
False
True or false: The alternative with the highest total weight is always chosen.
True
True or false: Decision making is only important for managers in an organization.
False
True or false: Rational decision making assumes that managers make decisions that are consistent and value-maximizing.
True
True or false: Managerial decision making always meets all the tests of rationality.
False
True or false: Bounded rationality means that managers are limited by their ability to process information when making decisions.
True
True or false: Satisficing means that managers choose the first alternative encountered that satisfactorily solves the problem.
True
True or false: Intuitive decision making relies on a systematic and thorough analysis of the problem.
False
True or false: Almost one-third of managers and organizational employees emphasize 'gut feeling' over cognitive problem solving and decision making.
True
True or false: Intuitive decision-making is based on experience, feelings, and accumulated judgment?
True
True or false: Programmed decisions involve problems that are new or unusual and for which information is ambiguous or incomplete?
False
True or false: Non-programmed decisions are repetitive decisions that can be handled by a routine approach?
False
True or false: Unstructured problems involve goals that are clear and familiar?
False
True or false: Linear thinking style is a person's preference for internal sources of information, such as feelings and intuition?
False
True or false: Nonlinear thinking style is a person's tendency to use external data and facts to guide decisions and actions?
False
True or false: The way a person approaches decision making is likely affected by his or her thinking style?
True
True or false: Different employees may have different decision-making styles?
True
True or false: The source of information used and the way it is processed are the two dimensions that determine a person's decision-making style?
True
Which of the following is NOT an assumption of rational decision making?
The decision maker would select the alternative that maximizes the likelihood of achieving the goal
According to the text, what is the meaning of bounded rationality?
Managers are limited by their ability to process information when making decisions
What is the phenomenon called when there is an increased commitment to a previous decision despite evidence that it may have been wrong?
Escalation of commitment
Which of the following is true about intuitive decision making?
It is a subconscious process of making decisions
According to the text, why do managers use intuition in decision making?
Because it is based on experience, feelings, and accumulated judgment
Which step in the decision-making process involves appraising each alternative's strengths and weaknesses?
Step 5: Analyzing Alternatives
What is the meaning of satisficing in decision making?
Choosing the first alternative encountered that satisfactorily solves the problem
What are decision criteria?
Factors that are important to resolving the problem
According to the text, what are managers limited by when making decisions?
Their ability to process information
What is the purpose of allocating weights to decision criteria?
To prioritize decision criteria based on their importance
What is the purpose of developing alternatives in the decision-making process?
To evaluate each alternative's strengths and weaknesses
What is the final step in the decision-making process?
Step 8: Evaluate Decision Effectiveness
What is the purpose of implementing the chosen alternative?
To gain commitment from those who will carry out the alternative
How is the soundness of a decision judged in the decision-making process?
By the outcomes resulting from the chosen alternative
Which of the following is NOT one of the eight steps in the decision-making process?
Implementing the decision
Which of the following is NOT one of the four ways managers make decisions?
Linear decision making
Which of the following is NOT a classification of decisions based on decision-making conditions?
Satisficing decisions
Which of the following is NOT a decision-making style?
Rational thinking style
Which of the following is NOT an effective decision-making technique?
Groupthink
Which of the following is NOT true about decision making?
Decision making is a simple act of choosing among alternatives
Which of the following is NOT true about problems in the decision-making process?
Problems can be easily distinguished from symptoms of the problem
Which one of the following is true about intuitive decision making?
It is a method of processing information with internal insights and feelings.
What is the definition of a structured problem?
A problem that has clear goals, is familiar, and has easily defined information.
What is the definition of a non-programmed decision?
A decision that is unique and nonrecurring.
What is the definition of a procedure?
A series of interrelated sequential steps that a manager can use to respond to a well-structured problem.
What is the definition of a rule?
An explicit statement that limits what a manager or employee can or cannot do in carrying out the steps involved in a procedure.
What is the definition of a policy?
A general guideline for making a decision about a structured problem.
What is the definition of an unstructured problem?
A problem that is new or unusual and for which information is ambiguous or incomplete.
What is the definition of a linear thinking style?
A person's habit of processing information through rational, logical thinking to guide decisions and actions.
What is the definition of a nonlinear thinking style?
A person's preference for internal sources of information (feelings and intuition).
Study Notes
Decision Making Process
- The decision-making process involves choosing from two or more alternatives.
- Decision making is a comprehensive process.
Steps in Decision Making
- The decision-making process consists of eight steps.
Problem Identification
- A problem is not a desired goal or purpose.
- Every decision starts with a problem.
- Identifying the problem is the first step in the decision-making process.
- Problems can be difficult to distinguish from symptoms of the problem.
Decision Criteria
- Decision criteria are factors that are important to resolving the problem.
- Decision criteria are not always of equal importance.
Developing Alternatives
- Developing alternatives is not the final step in the decision-making process.
Evaluating Alternatives
- The alternative with the highest total weight is not always chosen.
Implementing the Chosen Alternative
- Decision making is not only important for managers in an organization.
- The final step in the decision-making process is implementing the chosen alternative.
Rational Decision Making
- Rational decision making assumes that managers make decisions that are consistent and value-maximizing.
- Managerial decision making does not always meet all the tests of rationality.
Bounded Rationality
- Bounded rationality means that managers are limited by their ability to process information when making decisions.
Intuitive Decision Making
- Intuitive decision making relies on experience, feelings, and accumulated judgment.
- Almost one-third of managers and organizational employees emphasize 'gut feeling' over cognitive problem solving and decision making.
- Intuitive decision making is based on experience, feelings, and accumulated judgment.
Decision Making Styles
- The way a person approaches decision making is likely affected by his or her thinking style.
- Different employees may have different decision-making styles.
- The source of information used and the way it is processed are the two dimensions that determine a person's decision-making style.
Thinking Styles
- Linear thinking style is a person's preference for internal sources of information, such as feelings and intuition.
- Nonlinear thinking style is a person's tendency to use external data and facts to guide decisions and actions.
Decision Making Assumptions
- One assumption of rational decision making is that managers are not limited by their ability to process information.
Escalation of Commitment
- Escalation of commitment is the phenomenon called when there is an increased commitment to a previous decision despite evidence that it may have been wrong.
Satisficing
- Satisficing means that managers choose the first alternative encountered that satisfactorily solves the problem.
Procedures, Rules, Policies, and Programs
- A procedure is a series of steps that outlines the way to perform a task.
- A rule is a specific guide that outlines what should be done in a specific situation.
- A policy is a general guide that outlines what should be done in a specific situation.
- A program is a series of steps that outlines how to handle repetitive problems.
Problem Classification
- Structured problems involve clear goals and familiar solutions.
- Unstructured problems involve unclear goals and unfamiliar solutions.
- Non-programmed decisions involve new, unusual, or ambiguous problems.
- Programmed decisions involve repetitive, routine problems.
Test your knowledge on the role of managers as decision-makers with this quiz. Explore how decision making is an integral part of the managerial functions of planning, organizing, leading, and controlling. Discover the importance of efficient decision making in an organization.
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