Chapter 7 Kommt nochmal was anderes außer Fortnite

Question 1

Each month, Brian reviews sales data, analyzes market opportunities and threats, and determines organizational goals and actions for the coming month. This is an example of
A) groupthink.
B) intuition.
C) decision making.
D) bounded rationality.
E) brainstorming.

Answer 1

C

Question 2

________ decisions are routine and based on rules and guidelines.
A) Brainstormed
B) Nonprogrammed
C) Programmed
D) Intuitive
E) Creative

Answer 2

C

Question 3

Eleanor is responsible for monitoring the office supply closet and places an order when any item reaches a minimal level. What type of decision does this represent?
A) brainstormed decision
B) bounded decision
C) programmed decision
D) intuitive decision
E) creative decision

Answer 3

C
Explanation: Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 4

14) Caryn, an administrator of a day care program monitors child enrollment and hires additional caregivers as needed to maintain the legal ratios required for each age group. This is an example of a(n) ________ decision.
A) programmed
B) satisficing
C) brainstormed
D) intuitive
E) creative

Answer 4

A
Explanation: Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 5

15) Ayan is responsible for quality control for an automobile manufacturer and recently made the decision to suspend production when test results for completed cars fell below the manufacturer’s standards. What type of decision is this?
A) intuitive
B) groupthink
C) satisficing
D) programmed
E) creative

Answer 5

Answer: D
Explanation: Programmed decisions are decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur.

Question 6

16) Juan is faced with multiple choices of suppliers who have the same product at virtually the same price. He also knows there are many more suppliers out there that would be comparable; however, he has a short amount of time to make up his mind, so he chooses Elrood Gasket’s product. Why type of decision does this represent?
A) programmed
B) bounded
C) confirmation
D) groupthink
E) satisficing

Answer 6

Answer: E
Explanation: Satisficing decisions are decisions in which choosing an acceptable, or satisfactory, option occurs rather than attempting to make the best decision. Juan did not have the time to explore every alternative, every supplier.

Question 7

17) Programmed decision making is a(n) ________ process.
A) novel
B) routine
C) intuitive
D) ambiguous
E) creative

Answer 7

Answer: B
Explanation: Programmed decision making is a routine, virtually automatic process.

Question 8

18) A hurricane was approaching Miami, and although there was no evacuation order, the president of a local company decided to close the business and send his employees home. This is an example of a(n) ________ decision.
A) satisficing
B) automatic
C) guideline-based
D) predetermined
E) nonprogrammed

Answer 8

Answer: E
Explanation: Nonprogrammed decisions are nonroutine decisions made in response to unusual or novel opportunities and threats. Nonprogrammed decision making occurs when there are no ready-made decision rules that apply to the situation.

Question 9

19) During the last several months, workers’ overtime hours have increased by more than 15%. Based on decisions made by plant managers in the past, the current plant manager has decided to hire additional staff. This is an example of
A) reasoned judgment.
B) programmed decision making.
C) nonprogrammed decision making.
D) intuition.
E) the classical model.

Answer 9

Answer: B
Explanation: Programmed decision making occurs when managers have the information they need to create rules that will guide decision making.

Question 10

20) The manager of the Dairy Barn must decide whether to introduce a new frozen dessert that has not been previously sold. What type of decision would this represent?
A) automatic
B) rule-based
C) predetermined
D) nonprogrammed
E) inconsequential

Answer 10

Answer: D
Explanation: Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.

Question 11

21) A local pet groomer is considering expanding his services to include cats and needs to decide whether to invest in the necessary equipment and supplies. What type of decision does this represent for the groomer?
A) automatic
B) intuitive
C) bounded
D) nonprogrammed
E) rule-based

Answer 11

Answer: D
Explanation: Nonprogrammed decisions are made in response to unusual or novel opportunities and threats.

Question 12

22) In the classical model of decision making, managers
A) create heuristics to simplify the process.
B) identify and evaluate all possible alternatives before choosing a course of action.
C) apply representativeness bias to identify alternatives.
D) use intuition to select the most satisfactory solution.
E) use satisficing to select the optimum solution.

Answer 12

Answer: B
Explanation: The classical model is prescriptive, meaning it specifies how decisions should be made based on the assumption that the decision making can identify and evaluate all possible alternatives to choose the most appropriate course of action.

Question 13

23) In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ________ decision.
A) intuitive
B) creative
C) heuristic
D) subjective
E) optimum

Answer 13

Answer: E
Explanation: The optimum decision is the most appropriate decision possible in light of what they believe to be the most desirable consequences for the organization.

Question 14

24) In the classical model of decision making, it is assumed that
A) there is no optimum decision.
B) there is more than one alternative.
C) there is only one alternative.
D) managers have access to all the information they need.
E) managers will not apply their own preferences to make a decision.

Answer 14

Answer: D
Explanation: The classical model assumes managers will be able to generate a list of all alternatives and have access to all the information they need to make the optimum decision.

Question 15

25) A company’s senior management team was discussing moving its operations to a new location; however, the number of variables that would affect the move were so great that they could not begin to evaluate them all. This situation illustrates the concept of
A) programmed decision making.
B) bounded rationality.
C) dialectical inquiry.
D) illusion of control.
E) representativeness bias.

Answer 15

Answer: B
Explanation: March and Simon coined the term bounded rationality to describe the situation in which the number of alternatives a manager must identify is so great and the amount of information so vast that it is difficult for the manager to even come close to evaluating it all before making a decision.

Question 16

26) Jalen always strives to make optimum choices from the known alternatives but accepts that he will never have access to all available information and therefore must strive for the most satisfactory decisions. This realization is consistent with the ________ of decision making.
A) administrative model
B) representativeness bias
C) programmed form
D) classical model
E) illusion of control

Answer 16

Answer: A
Explanation: Jalen is facing bounded rationality, which is a concept within the administrative model of decision making.

Question 17

27) When deciding on schedules, the construction manager takes into account probabilities related to delays in materials or the potential for bad weather that could impact progress. The manager is accounting for
A) uncertainty.
B) incomplete information.
C) risk.
D) ambiguity.
E) cognitive limitation.

Answer 17

Answer: C
Explanation: Risk is present when managers know the possible outcomes of a particular course of action and can assign probabilities to them.

Question 18

28) High Tech Corp decides to develop a product based on a completely new technology, with no existing information on the possible challenges and outcomes of bringing such a product to market. This decision illustrates
A) satisficing ambiguity.
B) systematic error.
C) confirmation bias.
D) uncertainty.
E) blocking.

Answer 18

Answer: D
Explanation: When uncertainty exists, the probabilities of alternative outcomes cannot be determined and future outcomes are unknown.

Question 19

29) Managers for an organic grocery chain were deciding whether to open a new store in a neighborhood currently unserved by any competitors. One manager felt that the lack of competitive presence was an opportunity to capture the newest customers. Another manager viewed the lack of a competitor in the area as an indicator that the local community may not be interested in organic products. This difference in perspective illustrates the concept of
A) ambiguity.
B) satisficing.
C) confirmation bias.
D) groupthink.
E) illusion of control.

Answer 19

Answer: A
Explanation: A reason why information is incomplete is that much of the information managers have at their disposal is ambiguous information. Its meaning is not clear—it can be interpreted in multiple and often conflicting ways.

Question 20

30) Elaine, a college professor, needs to select a textbook for an upcoming course. Her time is limited so she plans to review a few books from the many choices and pick an acceptable textbook even though she may not even be reviewing the best book available. What is this strategy called?
A) optimizing
B) brainstorming
C) devil’s advocacy
D) satisficing
E) escalating commitment

Answer 20

Answer: D
Explanation: Satisficing is searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision.

Question 21

31) Managers must rely on their ________ to make the best decision when faced with uncertainty and ambiguity.
A) intuition and judgment
B) cognitive biases
C) bounded rationality
D) escalating commitment
E) illusion of control

Answer 21

Answer: A
Explanation: In the real world, managers must rely on their intuition and judgment to make what seems to them to be the best decision in the face of uncertainty and ambiguity.

Question 22

32) Jill’s coworkers describe her decision-making approach as satisficing, meaning that she
A) views problems from a fresh perspective and defines numerous alternative solutions to problems.
B) takes advantage of opportunities to abandon existing mind-sets and defines creative solutions to problems.
C) conducts a retrospective analysis to see what can be learned from past successes or failures.
D) searches for and chooses acceptable solutions rather than trying to make the optimal decision.
E) seeks and uses information consistent with prior beliefs and ignores information that contradicts those beliefs.

Answer 22

Answer: D
Explanation: When managers satisfice, they search for and choose acceptable, or satisfactory, ways to respond to problems and opportunities rather than trying to make the optimum decision.

Question 23

33) The first step in the managerial decision-making process is to
A) choose between alternatives.
B) assess alternatives.
C) learn from feedback.
D) recognize the need for a decision.
E) conduct a retrospective analysis.

Answer 23

Answer: D
Explanation: The first step in the decision-making process is to recognize the need for a decision.

Question 24

34) When generating alternatives to specific problems, it is important for managers to
A) view problems from a fresh perspective to enable creativity.
B) define alternatives that are aligned with existing managerial mindsets.
C) give more weight to others’ solutions to ensure personal biases do not come into play.
D) prioritize upper management perspectives to ensure buy-in.
E) wait until all possible alternatives are identified and fully researched before acting.

Answer 24

Answer: A
Explanation: Many managers find it difficult to view problems from a fresh perspective. Generating creative alternatives to solve problems and take advantage of opportunities may require that we abandon our existing mind-sets and develop new ones—something that usually is difficult to do.

Question 25

35) Jacob, a marketing manager, is determining if the company budget allows for advertising a new product. Which criterion of decision making is he addressing?
A) legality
B) ethicality
C) economic feasibility
D) practicality
E) product sustainability

Answer 25

Answer: C
Explanation: Managers must decide whether the alternatives are economically feasible—that is, whether they can be accomplished given the organization’s performance goals. Typically managers perform a cost-benefit analysis of the various alternatives to determine which one will have the best net financial payoff.

Question 26

36) Judy has thought of a novel solution to her company’s recent challenges fulfilling customer orders on time. She must now determine whether the company has the capabilities and resources required to implement the solution. Which criterion of decision making is she addressing?
A) legality
B) ethicality
C) economic feasibility
D) practicality
E) product sustainability

Answer 26

Answer: D
Explanation: Managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure the alternative will not threaten the attainment of other organizational goals.

Question 27

37) The president of Bank Fortuna is attempting to determine whether the bank has both the capability and the resources to open a branch facility in a new location. Which criterion of decision making is the president addressing?
A) practicality
B) ethicalness
C) legality
D) economic feasibility
E) functionality

Answer 27

Answer: A
Explanation: Managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure the alternative will not threaten the attainment of other organizational goals.

Question 28

38) When discussing solutions for increasing profitability of a new product, Dale raises a concern that one of the alternatives may negatively impact sales for other products. Dale’s concern demonstrates a focus on the ________ of the alternative.
A) sustainability
B) practicality
C) legality
D) ethicalness
E) functionality

Answer 28

Answer: B
Explanation: Managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure the alternative will not threaten the attainment of other organizational goals.

Question 29

39) Cora has been looking at several alternative locations for a new facility and performed a cost–benefit analysis in order to determine the net financial payoff of each location. Which criterion of decision making is Cora addressing?
A) economic feasibility
B) practicality
C) ethicalness
D) legality
E) functionality

Answer 29

Answer: A
Explanation: Managers must decide whether the alternatives are economically feasible—that is, whether they can be accomplished given the organization’s performance goals.

Question 30

40) The marketing manager of ToyBiz indicated that due to manufacturing efficiencies and market buzz, a new toy they were about to launch was likely to generate revenue beyond original projections. The lead designer reported that lab tests showed a risk that the toy could malfunction, possibly injuring a user, but that the design met required industry standards. By deciding to launch the toy as designed, what criterion of decision making were company executives ignoring?
A) economic feasibility
B) practicality
C) ethicalness
D) legality
E) functionality

Answer 30

Answer: C
Explanation: Managers must ensure that a possible course of action is ethical and will not unnecessarily harm any stakeholder group.

Question 31

41) When executing an effective decision-making process, it is
A) better to make a decision and not implement it than to not make a decision at all.
B) necessary to identify relevant information and assume it is complete.
C) necessary to make many subsequent and related decisions in order to implement a chosen alternative.
D) important to focus on the future after making a decision rather than revisiting the decision through retrospective analysis.
E) reasonable not to evaluate disadvantages if the advantages of an alternative are significantly high.

Answer 31

Answer: C
Explanation: Once a decision has been made and an alternative has been selected, it must be implemented, and many subsequent and related decisions must be made. Although the need to make subsequent decisions to implement the chosen course of action may seem obvious, many managers make a decision and then fail to act on it.

Question 32

42) Regan has identified alternatives to a work problem. After considering the pros and cons of each option, she has chosen and implemented a solution. What should Regan do next for an effective decision-making process?
A) reassess the need for the decision
B) evaluate the results of the solution
C) move on to the next decision
D) implement a second solution as a backup
E) brainstorm additional alternatives

Answer 32

Answer: B
Explanation: The final step in the decision-making process is learning from feedback. Managers who always strive to learn from past mistakes and successes are likely to continuously improve the decisions they make.

Question 33

43) Corey, a project manager, is responsible for tracking project issues. Each week, he provides details regarding the effectiveness of solutions and what experiences could be used to guide improved issue resolution in the future. Corey’s reporting is an example of the ________ step of the decision-making process.
A) practicality
B) choosing an alternative
C) feedback
D) implementation
E) criteria selection

Answer 33

Answer: C
Explanation: The final step in the decision-making process is learning from feedback. Effective managers always conduct a retrospective analysis to see what they can learn from past successes or failures.

Question 34

44) When deciding on the catering budget for her upcoming wedding, Kris was told that typically around 10% of invited guests usually decline. Kris is using a(n) ________ to simplify her decision making.
A) dialectical inquiry
B) cognitive bias
C) heuristic
D) confirmation bias
E) illusion of control

Answer 34

Answer: C
Explanation: Heuristics are rules of thumb that simplify the process of making decisions.

Question 35

45) Capable managers who repeatedly make the same mistakes that lead to poor decisions are making
A) dialectical errors.
B) programmed decisions.
C) nonprogrammed decisions.
D) intuitive judgments.
E) systematic errors.

Answer 35

Answer: E
Explanation: Systematic errors are errors that people make over and over and that result in poor decision making.

Question 36

46) ________ is a source of bias that causes managers to continue to pursue a course of action even when evidence may indicate the chosen alternative is not advised.
A) Illusion of control
B) Bounded rationality
C) Economic feasibility
D) Escalating commitment
E) Dialectical inquiry

Answer 36

Answer: D
Explanation: Escalating commitment is a source of cognitive bias resulting from the tendency to commit additional resources to a project even if evidence shows that the project is failing.

Question 37

47) DeMarcus has been general manager of the Surf and Turf Club restaurant for many years and always schedules extra staff for the busy Friday night shift. Business has been consistently slow on Fridays in recent months, but DeMarcus decides to continue with the extra staffing. His decision demonstrates
A) confirmation bias.
B) dialectical inquiry.
C) groupthink.
D) representativeness bias.
E) illusion of control.

Answer 37

Answer: A
Explanation: Decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions based on those beliefs even when presented with evidence that their beliefs are wrong. In doing so, they fall victim to confirmation bias.

Question 38

48) Julian decides to offer his marketing services at a tradeshow in order to acquire new customers. Due to bad weather in the area, not a lot of people showed up. Frustrated, Julian decides he will never offer his services at a tradeshow again. Julian’s decision demonstrates
A) confirmation bias.
B) dialectical inquiry.
C) escalating commitment.
D) representativeness bias.
E) groupthink.

Answer 38

Answer: D
Explanation: Representativeness bias is a cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode.

Question 39

49) ________ results from overestimating one’s own ability to influence actions and events.
A) Escalating commitment
B) Illusion of control
C) Confirmation bias
D) Representativeness bias
E) Dialectical inquiry

Answer 39

Answer: B
Explanation: Illusion of control is the tendency of decision makers to overestimate their ability to control activities and events.

Question 40

50) Rafael, who has committed large amounts of time and money to his house-painting business, continues to keep his business running despite incurring heavy losses. What form of cognitive bias is Rafael demonstrating?
A) escalating commitment
B) illusion of control
C) confirmation bias
D) representativeness bias
E) dialectical inquiry

Answer 40

Answer: A
Explanation: Escalating commitment is a source of cognitive bias resulting from the tendency to commit additional resources to a project even if evidence shows that the project is failing.

Question 41

51) To improve decision-making abilities, managers should
A) concentrate on planning for the future instead of analyzing past decisions.
B) ignore biases and personal style for making decisions.
C) rank various alternatives even when all relevant information is not available.
D) list the criteria that are being used to assess and evaluate alternatives and evaluate if the factors are appropriate.
E) pursue the most economically superior alternatives despite the threat of cannibalization to other areas of the business.

Answer 41

Answer: D
Explanation: Managers must become aware of biases and their effects, and they must identify their own personal style of making decisions. One recommended technique for examining decision-making style is for managers to list the criteria they typically use to assess and evaluate alternatives—the heuristics (rules of thumb) they typically employ, their personal biases, and so on—and then critically evaluate the appropriateness of these different factors.

Question 42

52) Alba is concerned that a proposed alternative may have unforeseen effects elsewhere in the organization. She suggests more time be spent evaluating the consequences, but everyone else on the team rallies behind the lead manager to quickly finalize the decision. Alba’s team is experiencing
A) groupthink.
B) illusion of control.
C) bounded rationality.
D) escalating commitment.
E) representativeness bias.

Answer 42

Answer: A
Explanation: Groupthink is a pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision.

Question 43

53) Stefan has been tasked with deciding how best to improve his company’s manufacturing process. Why should Stefan assemble a team and approach the decision as a group rather than going it alone?
A) He will be able to draw on the combined skills, competencies, and accumulated knowledge of group members to make the best decision.
B) He can save time by pursuing the decision as a group.
C) He can rally the group around his chosen course of action to show upper management his ideas have support.
D) He can use the group to distribute responsibility for the final decision, especially if there are unintended consequences.
E) He can increase perceived importance of his efforts by aligning more resources with the decision-making process.

Answer 43

Answer: A
Explanation: When managers work as a team to make decisions and solve problems, their choices of alternatives are less likely to fall victim to biases and errors. They are able to draw on the combined skills, competencies, and accumulated knowledge of group members and thereby improve their ability to generate feasible alternatives and make good decisions.

Question 44

54) Steve is part of a production team that has researched and chosen a new manufacturing process to improve product quality. He has discovered data that disputes some of the claims of the production team but decides to ignore the information and support the team’s original decision. Steve is being adversely influenced by
A) the illusion of control.
B) organizational learning.
C) groupthink.
D) devil’s advocacy.
E) representative bias.

Answer 44

Answer: C
Explanation: Groupthink is a pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision.

Question 45

55) Susan often defends unpopular or opposing alternatives for the sake of argument when discussing an issue. Susan is demonstrating
A) dialectical inquiry.
B) devil’s advocacy.
C) groupthink.
D) confirmation bias.
E) organizational learning.

Answer 45

Answer: B
Explanation: Devil’s advocacy is a critical analysis of a preferred alternative, made in response to challenges raised by a group member who, playing the role of devil’s advocate, defends unpopular or opposing alternatives for the sake of argument.

Question 46

56) Two separate groups of managers are given a problem to solve, and each group then presents its proposed solution to top management in an attempt to determine the best course of action. This process is called
A) devil’s advocacy.
B) groupthink.
C) dialectical inquiry.
D) classical decision making.
E) organizational learning.

Answer 46

Answer: C
Explanation: Dialectical inquiry is a critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt.

Question 47

57) Julia believes that it is important to find ways to motivate her employees to make decisions that raise effectiveness of the team and overall company. Julia is committed to
A) dialectical inquiry.
B) devil’s advocacy.
C) escalating commitment.
D) organizational learning.
E) personal mastery.

Answer 47

Answer: D
Explanation: Organizational learning is the process through which managers seek to improve employees’ desire and ability to understand and manage the organization and its task environment so employees can make decisions that continuously raise organizational effectiveness.

Question 48

58) The managers in Julio’s company sponsor monthly brainstorming sessions and reward employees with gift cards and recognition when an out-of-the box idea leads to organizational improvements. Julio’s company is an example of a(n) ________ organization.
A) learning
B) dialectical
C) skunkworks
D) intuitive
E) heuristic

Answer 48

Answer: A
Explanation: A learning organization is one in which managers do everything possible to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place.

Question 49

59) ________ is a decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action.
A) Groupthink
B) Dialectical inquiry
C) Intuition
D) Creativity
E) The illusion of control

Answer 49

Answer: D
Explanation: Creativity is a decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action.

Question 50

60) Ashraf wants his company to become a learning organization. What would you advise Ashraf to do to help achieve his goal?
A) Create one-size-fits-all training to ensure every employee approaches learning the same way.
B) Encourage employees to explore personal mental models and challenge them to consider new approaches.
C) Create a singular focus on team learning rather than on personal mastery.
D) Establish clear boundaries between teams so decisions can be made without distractions across teams.
E) Define a rewards program that encourages speed over creativity.

Answer 50

Answer: B
Explanation: As part of attaining personal mastery, organizations need to encourage employees to develop and use complex mental models—sophisticated ways of thinking that challenge them to find new or better ways of performing a task—to deepen their understanding of what is involved in a particular activity.

Question 51

61) What could a manager do to promote individual creativity in an organization?
A) A manager could closely monitor all employee actions.
B) A manager should reward decision-making speed.
C) A manager can give employees space to experiment.
D) A manager must restrain from providing feedback on ideas.
E) A manager should set specific performance goals requiring employees to demonstrate creativity.

Answer 51

Answer: C
Explanation: Creativity results when employees have an opportunity to experiment, to take risks, and to make mistakes and learn from them. Creativity declines when managers look over the shoulders of talented employees and try to “hurry up” a creative solution. And employees must not fear that they will be looked down on or penalized for ideas that might at first seem outlandish; sometimes those ideas yield truly innovative products and services.

Question 52

62) Yin observes that several of his employees have valuable creative talent. What could Yin do to promote individual creativity?
A) Pressure employees to deliver creative solutions quickly.
B) Tone down the importance of vital issues.
C) Reward employees who come up with creative ideas.
D) Redirect employees who are wasting time on outlandish ideas.
E) Promptly rank all ideas to discourage thinking that is too far from norms.

Answer 52

Answer: C
Explanation: Top managers must stress the importance of looking for alternative solutions and should visibly reward employees who come up with creative ideas. Being creative can be demanding and stressful. Employees must not fear that they will be looked down on or penalized for ideas that might at first seem outlandish; sometimes those ideas yield truly innovative products and services. Employees who believe they are working on important, vital issues are motivated to put forth the high levels of effort that creativity demands.

Question 53

63) Jaleel’s work group meets face-to-face and generates numerous alternatives to a product issue, many of them radical and a few out of the box. After identifying all alternatives, the group discusses the pros and cons of each and agrees on a short list of the best solutions. Jaleel’s group is using ________ as part of its decision-making process.
A) the Delphi technique
B) dialectical inquiry
C) brainstorming
D) a nominal group technique
E) devil’s advocacy

Answer 53

Answer: C
Explanation: Brainstorming is a group problem-solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.
Difficulty: 2 Medium

Question 54

64) Alaina anticipated some controversy getting managers from different functional teams to agree on the best course of action. She convened the managers face-to-face, and after presenting the issue at hand, gave them each 30 minutes to jot down their ideas and solutions. After discussing each idea in turn, each manager ranked the solutions and the one with the highest ranking was selected. Alaina used ________ to facilitate the decision making.
A) the Delphi technique
B) production blocking
C) brainstorming
D) the nominal group technique
E) the illusion of control

Answer 54

Answer: D
Explanation: Nominal group technique is the decision-making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

Question 55

65) ________ is a written approach to creative problem solving by a group.
A) The Delphi technique
B) Production blocking
C) Brainstorming
D) Nominal group technique
E) Devil’s advocacy

Answer 55

Answer: A
Explanation: Both the nominal group technique and brainstorming require that managers meet to generate creative ideas and engage in joint problem solving. Another way is to use the Delphi technique, which is a written approach to creative problem solving.

Question 56

66) While facilitating a brainstorming session, Raul noticed periods of confusion and silence during which participants seemed unable to process the many ideas being floated. The efficiency of Raul’s decision-making process was thereby limited due to the effects of
A) production blocking.
B) satisficing.
C) groupthink.
D) systematic errors.
E) escalating commitment.

Answer 56

Answer: A
Explanation: Production blocking refers to the loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.

Question 57

67) After realizing that members of his rural community regularly drove over 15 miles for a touchless car wash, Ethan took out a small business loan and partnered with a local gas station to provide the service locally. Ethan exhibited traits of a(n)
A) entrepreneur.
B) devil’s advocate.
C) learning organization.
D) product champion.
E) intrapreneur.

Answer 57

Answer: A
Explanation: Entrepreneurs are individuals who notice opportunities and decide how to mobilize the resources necessary to produce new and improved goods and services.

Question 58

68) While home from college one summer, Jerome rallied his friends to make and deliver sandwiches to homeless individuals in their town. The one-time effort was so well-received, Jerome worked to solicit cash and grocery donations from local businesses so that the following summer his group was able to make deliveries weekly. Jerome could be considered a(n)
A) social entrepreneur.
B) intrapreneur.
C) product champion.
D) skunkworks specialist.
E) devil’s advocate.

Answer 58

Answer: A
Explanation: Social entrepreneurs are individuals who pursue initiatives and opportunities to address social problems and needs in order to improve society and well-being, such as reducing poverty, increasing literacy, protecting the natural environment, or reducing substance abuse.

Question 59

69) Li believes his destiny is in his own hands and is open to taking risks and trying new things. He is very confident in his abilities and has a strong drive to achieve success for himself. Li demonstrates characteristics of a(n)
A) intuitive decision maker.
B) entrepreneur.
C) social entrepreneur.
D) devil’s advocate.
E) middle manager.

Answer 59

Answer: B
Explanation: Entrepreneurs are likely to possess a particular set of personality characteristics, including openness to experience, internal locus of control, high self-esteem, and high need for achievement.

Question 60

70) ________ are intrapreneurial managers who leave their current organizations because of a lack of opportunity and start their own companies.
A) Satisficing managers
B) Social entrepreneurs
C) Entrepreneurs
D) Product champions
E) Devil’s advocates

Answer 60

Answer: C
Explanation: Intrapreneurial managers who feel they are getting nowhere often decide to leave their current organizations and start their own companies to take advantage of their new product ideas. In other words, intrapreneurs become entrepreneurs and found companies that often compete with the companies they left.

Question 61

71) Meghan is tasked with leading a project team to quickly prototype an innovative product idea and accelerate its time to market. The team will operate independently of other development groups and report directly to the CEO. Meghan’s project is an example of
A) a dialectical inquiry.
B) production blocking.
C) entrepreneurship.
D) a skunkworks.
E) an escalating commitment.

Answer 61

Answer: D
Explanation: A skunkworks is a group of intrapreneurs who are deliberately separated from the normal operation of the organization to encourage them to devote all their attention to development new products. The idea is that they will become so intensely involved in the project that development time will be relatively brief and quality of the final product will be enhanced.

Question 62

72) To avoid groupthink and minimize bias, an organization can use ________ to have separate groups of managers propose solutions to a problem before coming together to critique each solution and arrive at an even better option.
A) production blocking
B) devil’s advocacy
C) skunkworks
D) dialectical inquiry
E) classical decision making

Answer 62

Answer: D
Explanation: Dialectical inquiry is a critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt.

Question 63

73) When encouraging creativity via the nominal group technique,
A) a questionnaire is sent to the group members to gather ideas.
B) group members meet face-to-face and begin by vocalizing ideas without evaluation.
C) group members exchange ideas online.
D) group members critique each proposed alternative as it is presented.
E) group members write down their ideas before sharing them with the group.

Answer 63

Answer: E
Explanation: Nominal group technique is a decision-making technique in which group members meet. One manager outlines the problem to be addressed. Group members work individually, write down ideas and solutions, and read their suggestions to the whole group. Managers take turns reading their suggestions to the group. No criticism or evaluation of alternatives is allowed until all alternatives have been read. When all alternatives have been discussed, each group member ranks all the alternatives from most preferred to least preferred, and the alternative that receives the highest ranking is chosen.

Question 64

74) Building a(n) ________ is NOT easy and requires that managers change their management assumptions radically.
A) learning organization
B) administrative model
C) intuitive organization
D) heuristic organization
E) classical model

Answer 64

Answer: A
Explanation: Building a learning organization requires that managers change their management assumptions radically. Developing a learning organization is neither a quick nor an easy process.

Question 65

75) Roberta noticed some opportunities to increase literacy in her community so she pursued volunteer support and a government grant to establish an education program. This is an example of
A) entrepreneurship.
B) social entrepreneurship.
C) intrapreneurship.
D) skunkworks.
E) personal mastery.

Answer 65

Answer: B
Explanation: Social entrepreneurship is pursuing initiatives and opportunities to address social problems and needs to improve society and well-being, such as reducing poverty, increasing literacy, protecting the natural environment, or reducing substance abuse.

Question 66

76) When making nonroutine decisions, how do managers tend to view their decision-making skills?
A) Managers tend to lack confidence in nonroutine decisions.
B) Managers usually learn from their mistakes
C) Managers tend to be overconfident about their intuition and judgments.
D) Most managers believe they are more prone to making bad decisions than others.
E) Managers tend to make programmed decisions and delegate nonroutine decisions.

Answer 66

Answer: C
Explanation: Not only do managers, and all people, tend to be overconfident about their intuition and judgments, but they also tend not to learn from mistakes. Surveys have found that the majority of people think they are above average, make better decisions, and are less prone to making bad decisions than others.

Question 67

77) During a performance review discussion, Simone stated that she “could not evaluate Bob too highly.” Brenda interpreted Simone’s comments as favorable, but Stan believed she was indicating low performance. Simone’s statement illustrates the problem of
A) groupthink.
B) bounded rationality.
C) intuition.
D) ambiguous information.
E) uncertainty.

Answer 67

Answer: D
Explanation: Much of the information managers have at their disposal is ambiguous information. Its meaning is not clear—it can be interpreted in multiple and often conflicting ways.

Question 68

78) Rosa’s Pizzeria recently learned its cheese supplier will be retiring within the month. To quickly identify a new supplier among the numerous options, Rosa plans to evaluate three companies and make the best decision based on that sample. Rosa is using a(n) ________ strategy to make this decision.
A) entrepreneurial
B) ambiguous
C) programmed
D) groupthink
E) satisficing

Answer 68

Answer: E
Explanation: Satisficing is a strategy where decision makers explore a limited sample of all potential alternatives and choose acceptable, or satisfactory, way to respond to problems or opportunities rather than trying to make the optimum decision.

Question 69

79) Heuristics are
A) errors that people make over and over and that result in poor decision making.
B) rules of thumb that simplify decision making.
C) the tendency to base decisions on strong prior beliefs.
D) a pattern of biased decision making.
E) the tendency to overestimate one’s own ability to control activities and events.

Answer 69

Answer: B
Explanation: According to Kahneman and Tversky, because all decision makers are subject to bounded rationality, they tend to use heuristics, which are rules of thumb that simplify the process of making decisions.

Question 70

80) Rachel believes strongly that her alternative to a problem is the best solution. When lobbying for her solution with the team, she focuses only on aspects of the evaluation document consistent with her claims. What is Rachel demonstrating?
A) confirmation bias
B) representativeness bias
C) illusion of control
D) production blocking
E) devil’s advocacy

Answer 70

Answer A
Explanation: Decision makers who have strong beliefs about the relationship between two variables tend to make decisions based on those beliefs even when presented with evidence that those initial beliefs may be wrong. In addition, decision makers tend to seek and use information consistent with those existing beliefs.

Question 71

81) To foster a learning organization, managers should empower employees and allow them to develop a sense of ________ through experimentation, creativity, and exploration.
A) entrepreneurship
B) groupthink
C) illusion of control
D) personal mastery
E) shared vision

Answer 71

Answer: D
Explanation: Learning theorist Peter Senge identified five principles for creating a learning organization. Principle 1: For organizational learning to occur, top managers must allow every person in the organization to develop a sense of personal mastery. Managers must empower employees and allow them to experiment, create, and explore what they want.

Question 72

82) Christian has been a highly valued employee for many years and never failed to deliver on challenging tasks. He is struggling on a recent assignment but has decided not to seek help as he’s sure he will succeed in the end. Christian is demonstrating
A) representativeness bias.
B) ethicalness.
C) entrepreneurship.
D) illusion of control.
E) escalating commitment.

Answer 72

Answer: D
Explanation: Illusion of control is the tendency of decision makers to overestimate their ability to control activities and events. It causes managers to overestimate the odds of a favorable outcome and, consequently, to make inappropriate decisions.

Question 73

83) The marketing team at TM Co. decides to focus its advertising efforts for a new product on the radio rather than television based on the cost–benefit analysis for each option. After a month, the team reconvenes to review the first month’s sales data and radio advertising expenses. This is which step in an effective decision-making process?
A) satisficing
B) implement alternatives
C) choose alternatives
D) evaluate alternatives
E) feedback

Answer 73

Answer: E
Explanation: The final step in the decision-making process is learning from feedback. Effective managers always conduct a retrospective analysis to see what they can learn from past successes and failures.

Question 74

84) Jordan works for a bank and decides whether to approve small business loans. He researches market saturation and the health of existing businesses before deciding how likely the prospective small business owner is to succeed. Jordan is making a(n) ________ decision.
A) heuristic
B) devil’s advocate
C) nonprogrammed
D) rule-based
E) routine

Answer 74

Answer: C
Explanation: Nonprogrammed decision making is required for nonroutine decisions and are made in response to unusual or novel opportunities or threats.

Question 75

85) Highly innovative and creative companies tend to
A) give employees freedom to experiment and learn.
B) monitor employees closely.
C) rely on upper management to make all decisions.
D) develop rigid guidelines for evaluating ideas.
E) lack a shared vision.

Answer 75

Answer: A
Explanation: Highly innovative companies are well known for the wide degree of freedom they give their managers and employees to experiment and develop innovative goods and services.