Chapter 4: Decision Making

The process by which managers identify and resolve problems and capitalize on opportunities is referred to as

____________________

• organizing.

• motivating.

• decision-making.

• controlling.

Before a new resort, Ali does an exhaustive amount of marketing research of a variety of demographic variables. Which stage of the decision-making process requires managers to place a premium on obtaining accurate, reliable information about the organization's external environment?

• choosing implementation strategies

• evaluating alternativesc.identifying

• objectives

• reaching decisions

• identifying opportunities and diagnosing problems

The CEO of ITT Industries, knows that the identification of both long-range and short-range organizational targets is important in order for effective decision-making to occur. The identification of these targets occurs in the __________ step of the decision-making process.

• monitoring and evaluating

• identifying objectives

• generating alternatives

• reaching decisions

• identifying opportunities and diagnosing problems

Which step in the decision-making process best lends itself to the use of brainstorming, nominal group technique, and the Delphi technique?

• identifying objectives

• reaching decisions

• generating alternatives

• monitoring and evaluating

• choosing implementation strategies

Mr. Rahman, the CEO of East Company, often examines several alternatives before he moves forward on a major initiative. This process usually involves a fairly lengthy examination of each alternative before a final decision is made. This step in the decision-making process is referred to as

• identifying and diagnosing problems.

• identifying objectives.

• generating alternatives.

• the Delphi Technique.

• evaluating alternatives.

Sensitivity to the needs of the people who will be affected by a decision and proper consideration of the resources necessary to carry out the decision are key attributes of the __________ stage in the decision-making process.

• monitoring and evaluating

• choosing implementation strategies

• evaluating alternatives

• generating alternatives

• identifying opportunities and diagnosing problems

After purchasing a copy store near campus, Johan was relieved to discover that the decisions and behaviors of his employees at the copy store were usually routine, with the alternatives quite familiar to the decision-maker. Johan was glad that his employees faced __________ decisions because it meant that he could establish rules and policies to handle those situations when he could not be in the store.

• nonprogrammed

• programmed

• singular

• quaint

Which of the following is not true regarding the rational-economic decision-making model?

• Managers have "perfect" information.

• Objectives are known and agreed upon.

• It is descriptive in nature.

• Managers are rational, systematic and logical.

• Managers will work in the best interest of the organization.

The __________ decision model acknowledges human limitations to decision-making and addresses the issues of bounded rationality, intuition, satisficing, and escalation of commitment.

• rational-economic

• rational-alternative

• situational

• behavioral

• full-involvement

Critical of the more formal decision-making analyses, there are many advocates of __________, who suggest that managers should trust their feelings and experiences more often.

• bounded rationality

• intuition

• reserve vigilance

• satisficing

• cognitive limitation theory