Managerial Decision Making Quiz

What is the primary focus of decision making in management?

• Maximizing profits

• Increasing employee satisfaction

• Minimizing costs

• Responding to opportunities and threats

Which type of decision is characterized by routine and automatic processes?

• Non-programmed decision

• Programmed decision

• Strategic decision

• Operational decision

What is an example of a programmed decision?

• Responding to a sudden market change

• Launching a new product line

• Hiring new workers when overtime increases by 10%

• Addressing a customer complaint

What type of decision making occurs in response to unpredictable opportunities?

• Programmed decision

• Non-programmed decision

• Strategic decision

• Routine decision

What does the term 'bounded rationality' refer to?

• The process of evaluating all alternatives

• The use of intuition in decision making

• Cognitive limitations in decision making

• The ability to make perfect decisions

Which of the following is NOT a reason for incomplete information in decision making?

• Overconfidence

• Information costs

• Time constraints

• Lack of access to data

What does 'satisficing' mean in the context of decision making?

• Choosing the best possible option

• Making decisions based on intuition

• Searching for a satisfactory response

• Evaluating all possible alternatives

What is the difference between risk and uncertainty in decision making?

• There is no difference

• Risk can be calculated; uncertainty cannot

• Risk is always negative; uncertainty is always positive

• Risk involves known probabilities; uncertainty does not

Which model of decision making assumes that managers can evaluate all alternatives?

• Administrative Model

• Contingency Model

• Classical Model

• Behavioral Model

What is a characteristic of the Administrative Model?

• It acknowledges uncertainty and risk

• It is a purely intuitive approach

• It focuses solely on programmed decisions

• It assumes perfect information