Kafli 6 Flashcards
In the context of the generic elements involved in making a decision, which of the following is the final step?
A.
Defining success criteria based on the desired end-goal
B.
Organising and formulating the agenda
C.
Observing to see if everything is moving as planned
D.
Taking the lead and putting the plan to action
C.
Observing to see if everything is moving as planned
Which of the following is at the centre of an organisation’s decision-making process and continuously informs choices at each step in the process?
A.
Setting objectives and success criteria related to the resolution of an issue
B.
Collecting data on tasks, processes and contexts related to an issue
C.
Acting or leading to implement a decision to resolve an issue
D.
Observing the effects of a decision that has been implemented to resolve an issue
B.
Collecting data on tasks, processes and contexts related to an issue
Saran, a manager, adopts the ‘idea discovery process’ to set realistic and acceptable objectives and success criteria to resolve an organisational issue. Which of the following statements is most likely true in this context?
A.
Saran is likely to disregard the presence of forces that may hinder him from implementing a decision to resolve the issue.
B.
Saran is likely to devote time to understand the claims related to the issue by interacting with stakeholders to evaluate the strength of their views.
C.
Saran is likely to restrict his search for information within the initial claim that ‘an issue has arisen that requires a decision’.
D.
Saran is likely to set unsuccessful objectives because according to Paul Nutt, the ‘idea discovery process’ usually leads to failure.
B.
Saran is likely to devote time to understand the claims related to the issue by interacting with stakeholders to evaluate the strength of their views.
Identify a true statement about programmed, or structured, decisions.
A.
They address familiar problems, and information about such problems is easy to define and obtain.
B.
They address novel or unusual issues that require unique solutions.
C.
They arise rarely, and people are unaware of the methods to deal with such decisions.
D.
They are typically based on unclear or vague information.
A.
They address familiar problems, and information about such problems is easy to define and obtain.
Which of the following statements accurately differentiates between a procedure and a policy?
A.
A procedure specifies what a person can or cannot do in a given scenario, while a policy is a series of interconnected steps to address a structured problem.
B.
A procedure is a sequence of interconnected steps to address a structured problem, while a policy is a guideline that establishes some general principles for decision-making.
C.
A procedure is a guideline that establishes some general principles for decision-making, while a policy sets out what a person can or cannot do in a given scenario.
D.
A procedure is a measure against which the results of a decision can be evaluated, while a policy is a series of interconnected steps to address a structured problem.
B.
A procedure is a sequence of interconnected steps to address a structured problem, while a policy is a guideline that establishes some general principles for decision-making.
Which of the following is an example of a non-programmed decision?
A.
Making a decision on how to approach a novel (unusual) crisis situation
B.
Making a decision while formulating the annual budget
C.
Making a decision on employees’ performance ratings
D.
Making a decision on managing and stocking inventory
A.
Making a decision on how to approach a novel (unusual) crisis situation
Identify a true statement about certainty in the context of a decision.
A.
Certainty describes a situation in which decision makers can vaguely estimate the likelihood of the alternative outcomes using statistical methods.
B.
Certainty describes a situation in which decision makers are unclear about their goals, which makes the alternative ways of achieving the goals equally fluid.
C.
Certainty is when decision makers have little information about which course of action is most likely to succeed in helping them achieve their goals.
D.
Certainty is when all the information that decision makers need is available to them.
D.
Certainty is when all the information that decision makers need is available to them.
Which of the following scenarios most likely exemplifies the concept of ambiguity in the context of decision-making?
A.
A sales manager divides his team into four groups and asks each group to complete a project. However, he does not specify the goals of the project and gives vague instructions to his team members.
B.
A company launching a new product knows that it wants to improve its sales by 20% in the next two years. However, the company is not sure of achieving its objective because it cannot predict the likelihood of events that may impact the product’s success.
C.
An entrepreneur starting a catering business knows what she wants to achieve but is unsure if her new venture will succeed because she cannot predict future events that may impact her business.
D.
A company assesses the background of a job applicant with the help of the details provided by the applicant in the job application form. As a result, the company is able to estimate the degree of the applicant’s person–environment fit in the company.
A.
A sales manager divides his team into four groups and asks each group to complete a project. However, he does not specify the goals of the project and gives vague instructions to his team members.
Fiona, an entrepreneur, starts a software development company and wants to attain at least 5% of market share within the next two years. She has a few plans about how to achieve her goal but does not have enough information about them to decide the best plan. Moreover, she cannot predict other factors such as competitors’ actions that may affect the growth of her company in the market. In the context of decision-making, which of the following concepts does this scenario most likely exemplify?
A.
Ambiguity
B.
Uncertainty
C.
Satisficing
D.
Dependency
B.
Uncertainty
Which of the following statements is true of the rational model of decision-making?
A.
It describes the ways in which people make decisions in uncertain and ambiguous situations.
B.
It analyses the ways in which people make decisions when they disagree over goals and how to pursue them.
C.
It is based on the assumption that people make consistent choices in order to maximise economic value within specified constraints.
D.
It reflects the perspective that a company consists of groups with different interests, goals and values.
C.
It is based on the assumption that people make consistent choices in order to maximise economic value within specified constraints.
Which of the following models of decision-making is based on the concepts of bounded rationality and satisficing?
A.
The negotiated model
B.
The adaptive model
C.
The judgmental model
D.
The rational model
C.
The judgmental model
Identify a true statement about the negotiated model of decision-making.
A.
It states that an organisation acts as a political system that establishes the relative power of individuals and functions.
B.
It states that decisions are made when four independent streams of activities meet, usually by chance.
C.
It focuses on explaining the ways in which people make decisions in situations where the goal is clear.
D.
It is based on the assumption that decision makers make consistent choices to maximise economic value within specified constraints.
A.
It states that an organisation acts as a political system that establishes the relative power of individuals and functions.
Which of the following terms refers to mental shortcuts or simple rules that simplify the process of decision-making?
A.
Heuristics
B.
Operational plans
C.
Activity plans
D.
Competences
A.
Heuristics
Syed, a human resources manager in an investment company, has to decide whether or not to revise the company’s employee recruitment process. The existing recruitment process has been in use for the last eight years, and Syed believes that the process is effective. However, research shows that the existing process has been mostly ineffective and has resulted in high turnover. However, Syed ignores this evidence and decides not to revise the process based on his belief. Which of the following concepts related to decision-making does this scenario most likely exemplify?
A.
Prior hypothesis bias
B.
Emotional attachment
C.
The illusion of control
D.
Representativeness bias
A.
Prior hypothesis bias
A company had launched a product line a year ago, and the product line was very successful. The managers of the company plan to launch a similar product line in the next few weeks. Their decision is based on the assumption that the new product line will lead to high profits because it is similar to previous year’s successful product line. They ignore information related to current market conditions, customer needs and the products of rival companies. Which of the following concepts related to decision-making does this scenario most likely exemplify?
A.
Representativeness bias
B.
Emotional attachment
C.
Prior hypothesis bias
D.
The illusion of control
A.
Representativeness bias
