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WorksheetsChapter 3: Decision Making
Total questions: 20
Worksheet time: 20mins
The process by which managers respond to opportunities and threats facing their
organization by analyzing options and taking actions is known as:
Brainstorming
Intuition
Decision making
Bounded rationality
Heuristics
Managers make decisions when they are involved in which managerial function?
Planning
Controlling
Leading
Organizing
All of the above
Mary schedules a meeting with Clarise, a subordinate, because Clarise's
performance has dropped below a certain level. What type of decision does this represent?
Intuition
Groupthink
Programmed
Nonprogrammed
Satisficing
When an organization's accounting department sends out a bill to a new customer,
what type of decision does this represent?
Programmed
Nonprogrammed
Intuition
Groupthink
Bounded rationality
Nonroutine decisions made in response to novel situations in business are known as:
Intuitive decisions
Creative decisions
Programmed decisions
Heuristic decisions
Nonprogrammed decisions
In the administrative model of decision making, when the number of possible
alternatives to a decision is so large that the manager cannot possibly evaluate all of them
before making a decision, this is called:
Satisficing
Bounded rationality
Brainstorming
Devil's advocacy
Optimizing
When managers know the possible outcomes of a decision and can assign
probabilities to each of these outcomes in terms of their likelihood of occurrence in the future, this is known as:
Uncertainty
Certainty
Risk
Bounded rationality
Dialectical inquiry
When managers cannot assign probabilities of future occurrence to possible
alternatives to a decision, this is known as:
Certainty
Risk
Bounded rationality
Uncertainty
Dialectical inquiry
When uncertainty exists, the probabilities of alternative outcomes __________ be determined and the future outcomes are _________.
Can; known
Cannot; known
Can; unknown
Cannot; unknown
None of the above
When a manager makes a decision based on a generalization from a very small sample of information, this is known as:
Dialectical inquiry
Systematic errors
Devil's advocacy
Representative bias
The illusion of control
1. Managers make decisions whenever they are engaged in planning, organizing, leading, or controlling.
True
False
A routine decision is called a nonprogrammed decision.
True
False
Nonprogrammed decision-making is always required for routine decisions.
True
False
A common reason for poor decisions is that managers fail to specify the criteria that are important for making that particular decision.
True
False
Managers can be reactive in recognizing the need for a decision, but not proactive.
True
False
When a manager generalizes inappropriately from a small sample to a new situation and makes a poor decision as a result, representativeness bias has occurred.
True
False
When the members of a group try hard to agree, even when it is done without accurately assessing the information available to the group, we say that groupthink has occurred.
True
False
The ability of a decision-maker to discover novel ideas that lead to feasible alternatives in decision-making is known as creativity.
True
False
Group creativity can be increased by using brainstorming techniques.
True
False
When the outcomes of decision alternatives are known and their probabilities can be determined, a situation of uncertainty exists.
True
False
