Management Chap 04

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

• It ends when the decision situation has been defined.
• It includes putting the chosen alternative to practice.
• The first step in the process is to identify alternatives to a problem.
• The process is said to be complete when a set of alternatives to a problem has been created.
• In a business scenario, the decision-making process is always aimed at finding a way to increase profits.

Decisions regarding standard organizational transactions are most likely to be _____ decisions.

• unstructured
• infrequent
• programmed
• intuitive
• irrational

When the low-indicator light turns red on the frozen drink machine, Karen follows an established set of procedures to refill and reset the machine. In doing so, she's making a(n) _____ decision.

• programmed
• unstructured
• intuitive
• irrational
• strategic

The first step in rational decision making is

• identifying alternatives.
• implementing an alternative.
• selecting the best alternative.
• recognizing and defining the decision situation.
• evaluating alternatives.

Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of _____ decisions.

• frequent
• nonprogrammed
• structured
• operational
• programmed

Which of the following statements is true in the context of decision making under a state of risk?

• The decision maker clearly knows the alternatives.
• The decision maker uses probability estimates to assess alternatives.
• The decision maker is least likely to choose a bad alternative.
• The decision maker has an accurate understanding of payoffs of all the alternatives.
• The decision maker seldom considers his or her past experience while making the decision.

R&D at Venus Electronics Inc. has created an innovative new device. Management now needs to decide if Venus should launch this device as its next new product. This is an example of a(n) _____ decision.

• structured
• nonprogrammed
• standard
• programmed
• operational

When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of

• imperfect information.
• ambiguity
• risk.
• certainty
• unclear alternatives.

Which of the following disadvantages of group decisions typically results from the group being very cohesive?

• Disagreement
• Groupthink
• Lower acceptance of the final decision
• Minimal participation of members
• Conflicts

In general, while identifying alternatives, the more important the decision,

• the more alternatives should be generated.
• the less the time needed to make the decision.
• the less the chances of managers making the right decision.
• the more the tendency of managers to ignore intuitions.
• the less the chances of managers using expert opinion to make the decision.