Question 1

A(n)________ occurs when decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance.

Accepted Answer

A) anchoring effect 
B) confirmation bias 
C) overconfidence bias 
D) sunk costs error 
E) self-serving bias 
A) anchoring effect 
B) confirmation bias 
C) overconfidence bias 
D) sunk costs error 
E) self-serving bias

Question 2

Refer to the Scenario below to answer the questions that follow.
Management Decisions: Declining Income (Scenario)
Net income has fallen for the second consecutive quarter,and Amanda is understandably worried.She knows there will be a lot of questions for her at the board of directors' meeting Wednesday,and she will be expected to reveal her plan to avoid any third-quarter losses.Amanda begins to analyze the company's financial reports to try to determine the cause of the loss.After much consideration,it appears that expenses have risen dramatically over the last few months.Amanda wonders why.She decides a meeting of the department heads is in order first thing tomorrow morning.At the meeting,Amanda would like to generate several possible solutions to the increased expenses.She wonders how to effectively explore all the options.Next morning,the first option presented at the meeting is to downsize the Research and Development department,since it is not essential to current operations.Several managers believe the plan will help stem the losses and immediately move to approve it.However,Amanda suggests that they need to look further at the issue and explore other potential solutions.Several suggestions are made,many of which appear to be viable.Amanda wonders what to do next.
-Amanda's group has proposed a solution that does not have much data or evidence to support it.However,based on Amanda's 20 years of experience,the solution just feels right and so she proposes it to the board of directors.Amanda has made her decision based on ________.

Accepted Answer

A) heuristics 
B) intuition 
C) hindsight bias 
D) overconfidence bias 
E) availability bias 
A) heuristics 
B) intuition 
C) hindsight bias 
D) overconfidence bias 
E) availability bias

Question 3

"Before a health claim may be paid,the following steps must be taken." This is an example of a ________.

Accepted Answer

A) rule 
B) precedent 
C) procedure 
D) policy 
E) heuristic 
A) rule 
B) precedent 
C) procedure 
D) policy 
E) heuristic

Question 4

Sometimes Sharon follows a ________,a series of interrelated sequential steps for responding to a structured problem.

Accepted Answer

A) rule 
B) policy 
C) procedure 
D) precedent 
E) regulation 
A) rule 
B) policy 
C) procedure 
D) precedent 
E) regulation

Question 5

Michael is CEO of a computer software company.Sales are down and losses are mounting.Michael decides to lay off 50 employees in an effort to avoid bankruptcy and preserve the remaining 200 jobs.His decision is based on the ________ view of ethics.

Accepted Answer

A) utilitarian 
B) principled 
C) rights 
D) theory of justice 
E) integrative social contracts theory 
A) utilitarian 
B) principled 
C) rights 
D) theory of justice 
E) integrative social contracts theory

Question 6

A leading proponent of the classical view argues that any time managers decide to spend their organization's resources for "social good" they are ________.

Accepted Answer

A) contributing social benefits in the name of goodwill 
B) complying with government regulations 
C) helping to make society a better place for everyone to live 
D) adding to the costs of doing business 
E) promoting a positive corporate image 
A) contributing social benefits in the name of goodwill 
B) complying with government regulations 
C) helping to make society a better place for everyone to live 
D) adding to the costs of doing business 
E) promoting a positive corporate image

Question 7

Managers regularly use their intuition in decision making.

Accepted Answer

A) True 
 B)False

Question 8

Compare the utilitarian view of ethics with the rights view of ethics.

Accepted Answer

The utilitarian view of ethics maintains

Question 9

Having a written code of ethics ensures that an organization's members will behave ethically.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following decisions involves the management function of controlling?

Accepted Answer

A) How should jobs be designed? 
B) How difficult should individual goals be? 
C) How do I handle employees who appear to be low in motivation? 
D) When is the right time to stimulate conflict? 
E) When is a performance deviation significant? 
A) How should jobs be designed? 
B) How difficult should individual goals be? 
C) How do I handle employees who appear to be low in motivation? 
D) When is the right time to stimulate conflict? 
E) When is a performance deviation significant?

Question 11

List and describe the advantages and disadvantages of group decision making.

Accepted Answer

Advantages • More complete information a

Question 12

Which of the following is an aspect of bounded rationality?

Accepted Answer

A) decreased commitment to previous decisions 
B) managers are rational decision makers 
C) managers accept decisions that are good enough 
D) all information is analyzed for all alternatives 
A) decreased commitment to previous decisions 
B) managers are rational decision makers 
C) managers accept decisions that are good enough 
D) all information is analyzed for all alternatives

Question 13

________ is a situation in which a manager can make accurate decisions because the outcome of every alternative is known.

Accepted Answer

A) Certainty 
B) Risk 
C) Uncertainty 
D) Maximax 
E) Maximin 
A) Certainty 
B) Risk 
C) Uncertainty 
D) Maximax 
E) Maximin

Question 14

The type of decision making in which the solution is considered "good enough" is known as which of the following?

Accepted Answer

A) minimizing 
B) rationalizing 
C) maximizing 
D) satisficing 
E) optimizing 
A) minimizing 
B) rationalizing 
C) maximizing 
D) satisficing 
E) optimizing

Question 15

Rules of thumb that managers use to simplify decision making are called ________.

Accepted Answer

A) intuition 
B) heuristics 
C) rules 
D) policies 
E) procedures 
A) intuition 
B) heuristics 
C) rules 
D) policies 
E) procedures

Question 16

Which of the following is the step in the decision-making process that follows identifying a problem and decision criteria?

Accepted Answer

A) allocate weights to criteria 
B) analyze alternatives 
C) select an alternative 
D) implement the alternative 
E) evaluate decision effectiveness 
A) allocate weights to criteria 
B) analyze alternatives 
C) select an alternative 
D) implement the alternative 
E) evaluate decision effectiveness

Question 17

Ethics refers to the rules and principles that define right and wrong conduct.

Accepted Answer

A) True 
 B)False

Question 18

A manager who pays employees the minimum wages and benefits required by law is most likely taking a(n)________ approach to social responsibility.

Accepted Answer

A) obstructionist 
B) defensive 
C) accommodative 
D) reactive 
E) proactive 
A) obstructionist 
B) defensive 
C) accommodative 
D) reactive 
E) proactive

Question 19

An optimistic manager will follow a maximin approach.

Accepted Answer

A) True 
 B)False

Question 20

Managers who take a defensive approach to social responsibility ________.

Accepted Answer

A) view their business as a public entity 
B) use organizational resources to actively promote the interests of stockholders and stakeholders 
C) rely on legally established rules to take the minimal socially responsible position 
D) engage in unethical behaviour and try to hide their behaviour from organizational stakeholders and society at large 
E) go beyond legal requirements and choose to support social responsibility in a balanced fashion 
A) view their business as a public entity 
B) use organizational resources to actively promote the interests of stockholders and stakeholders 
C) rely on legally established rules to take the minimal socially responsible position 
D) engage in unethical behaviour and try to hide their behaviour from organizational stakeholders and society at large 
E) go beyond legal requirements and choose to support social responsibility in a balanced fashion

A(n)________ occurs when decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance.

"Before a health claim may be paid,the following steps must be taken." This is an example of a ________.

Sometimes Sharon follows a ________,a series of interrelated sequential steps for responding to a structured problem.

Michael is CEO of a computer software company.Sales are down and losses are mounting.Michael decides to lay off 50 employees in an effort to avoid bankruptcy and preserve the remaining 200 jobs.His decision is based on the ________ view of ethics.

A leading proponent of the classical view argues that any time managers decide to spend their organization's resources for "social good" they are ________.

Managers regularly use their intuition in decision making.

Compare the utilitarian view of ethics with the rights view of ethics.

Having a written code of ethics ensures that an organization's members will behave ethically.

Which of the following decisions involves the management function of controlling?

List and describe the advantages and disadvantages of group decision making.

Which of the following is an aspect of bounded rationality?

________ is a situation in which a manager can make accurate decisions because the outcome of every alternative is known.

The type of decision making in which the solution is considered "good enough" is known as which of the following?

Rules of thumb that managers use to simplify decision making are called ________.

Which of the following is the step in the decision-making process that follows identifying a problem and decision criteria?

Ethics refers to the rules and principles that define right and wrong conduct.

A manager who pays employees the minimum wages and benefits required by law is most likely taking a(n)________ approach to social responsibility.

An optimistic manager will follow a maximin approach.

Managers who take a defensive approach to social responsibility ________.

Managers and Management

Environmental Contraints on Managers

Planning and Strategic Management

Organizational Structure and Design

Operations Management

Human Resource Management

Leadership

Motivating Employees

Understanding Groups and Teams

Foundations of Control

Managing Innovation and Change

Filters

Exam 4: Decision Making

A(n)________ occurs when decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance.

"Before a health claim may be paid,the following steps must be taken." This is an example of a ________.

Sometimes Sharon follows a ________,a series of interrelated sequential steps for responding to a structured problem.

Michael is CEO of a computer software company.Sales are down and losses are mounting.Michael decides to lay off 50 employees in an effort to avoid bankruptcy and preserve the remaining 200 jobs.His decision is based on the ________ view of ethics.

A leading proponent of the classical view argues that any time managers decide to spend their organization's resources for "social good" they are ________.

Managers regularly use their intuition in decision making.

Compare the utilitarian view of ethics with the rights view of ethics.

Having a written code of ethics ensures that an organization's members will behave ethically.

Which of the following decisions involves the management function of controlling?

List and describe the advantages and disadvantages of group decision making.

Which of the following is an aspect of bounded rationality?

________ is a situation in which a manager can make accurate decisions because the outcome of every alternative is known.

The type of decision making in which the solution is considered "good enough" is known as which of the following?

Rules of thumb that managers use to simplify decision making are called ________.

Which of the following is the step in the decision-making process that follows identifying a problem and decision criteria?

Ethics refers to the rules and principles that define right and wrong conduct.

A manager who pays employees the minimum wages and benefits required by law is most likely taking a(n)________ approach to social responsibility.

An optimistic manager will follow a maximin approach.

Managers who take a defensive approach to social responsibility ________.

Managers and Management

Environmental Contraints on Managers

Planning and Strategic Management

Organizational Structure and Design

Operations Management

Human Resource Management

Leadership

Motivating Employees

Understanding Groups and Teams

Foundations of Control

Managing Innovation and Change

Filters