Ch07 Test Bank

Schermerhorn-Management, 11
th
edition Test Bank
Chapter 7: The Decision-Making Process
Learning About Yourself
1. Self-confidence means being willing to act with the conviction needed to succeed in the situations
we face.
Ans: True
es!onse: "age 1#$
%ifficult&: 'as&
ef: (earning About )ourself
AA*SB: +ndividual %&namics
Bloom,s Ta-onom&: .nowledge
Information, Technology, and Management
/. At the organi0ation1s boundaries, information in the e-ternal environment is accessed and
managers use this intelligence information to deal effectivel& with com!etitors and ke&
stakeholders.
Ans: True
es!onse: "age 12/-123
%ifficult&: Moderate
ef: +nformation, Technolog&, and Management
AA*SB: Strateg&
Bloom,s Ta-onom&: *om!rehension
3. 4rgani0ations send some information to selected stakeholders and the e-ternal environment for
the !ur!ose of image building, financial re!orting, and !roduct advertising.
Ans: 5alse
es!onse: "age 126
%ifficult&: 7ard
AA*SB: 'nvironmental +nfluence
Bloom,s Ta-onom&: A!!lication
8. As a result of the increasing use of information technolog&, individuals and teams can
communicate more easil& and share information, and coordination and control among decision
makers can be increased
*o!&right 9 /611:ohn ;ile& < Sons, +nc.
2-1
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edition Test Bank
Ans: True
es!onse: "age 121
AA*SB: +nformation Technologies
#. +nformation s&stems use the latest in information technolog& to collect, organi0e, and distribute
data in such as wa& that the& become meaningful as information.
Ans: True
es!onse: "age 121
2. Management +nformation s&stems use technolog& to !rocesses, organi0e, s&nchoni0e, and
distribute data.
Ans: 5alse
es!onse: "age 121
%ifficult&: 'as&
$. +nformation technolog& is changing organi0ations b& breaking down traditional barriers that
!revent !eo!le and de!artments from communicating and sharing information.
Ans: True
es!onse: "age 121
%ifficult&: 'as&
=. A management information s&stem is designed to use information technolog& to meet the s!ecific
information needs of managers as the& make a variet& of decisions on a da&-to-da& basis.
Ans: True
es!onse: "age 121
2-/
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edition Test Bank
%ifficult&: 'as&
>. ?either su!!l& chain management nor customer relationshi! management can be im!roved with
information technolog& @+TA connections.
Ans: 5alse
es!onse: "age 12/
%ifficult&: 7ard
16. As a result of the growth of management information s&stems, more managers are needed to
coordinate the flow, sharing and !rocessing of information.
Ans: 5alse
es!onse: "age 121
11. Management with anal&tics involves s&stematic gathering and !rocessing of data to make it
useful as information.
Ans: True
es!onse: "age 1#=
%ifficult&: 'as&
AA*SB: Strateg&
1/. Management with anal&tics involves s&stematic gathering and !rocessing of information to make
it useful as data.
Ans: 5alse
es!onse: "age 1#=
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AA*SB: Strateg&
13. Management with anal&tics involves random gathering of information to make it useful as data.
Ans: 5alse
es!onse: "age 1#=
AA*SB: Strateg&
18. Bathering and !rocessing of information to make it useful as data is referred to as management
with anal&tics.
Ans: True
es!onse: "age 1#=
%ifficult&: 'as&
AA*SB: Strateg&
1#. *om!uter com!etenc& is the abilit& to utili0e com!uters and information technolog& to locate,
retrieve, evaluate, organi0e, and anal&0e information for decision making.
Ans: 5alse
es!onse: "age 1#=
12. +nformation com!etenc& is the abilit& to use technolog& to locate, retrieve, evaluate, organi0e,
and anal&0e information for decision making.
Ans: True
es!onse: "age 1#=
2-8
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edition Test Bank
1$. %ata are raw facts and observations.
Ans: True
es!onse: "age 1#=
%ifficult&: 'as&
1=. +nformation is data made useful and meaningful for decision-making.
Ans: True
es!onse: "age 1#=
%ifficult&: 'as&
1>. Timeliness, Cualit&, com!leteness, relevance, and understandabilit& are characteristics of useful
information.
Ans: True
es!onse: "age 1#>
/6. +nformation that is complete is accurate, reliable, and can be used with confidence.
Ans: 5alse
es!onse: "age 1#>
/1. +nformation that is understandable is clear and easil& understood b& the user and is free from
unnecessar& detail.
Ans: True
es!onse: "age 1#>
2-#
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%ifficult&: 'as&
//. +nformation technolog& assists us in acCuiring, storing, and !rocessing information.
Ans: True
es!onse: "age 1#>
%ifficult&: 'as&
/3. ;hat im!act is the increasing use of information technolog& @+TA having on organi0ationsD
Ans: The increasing use of information technolog& @+TA is dramaticall& affecting how organi0ations
o!erate and how the& interface with their environments. +n terms of internal organi0ational
as!ects, +T has had the following effects:
+ndividuals and teams can communicate more easil& and can electronicall& share
information.
The organi0ation can o!erate with fewer middle managers.
4rgani0ations can be flattened and o!erate with fewer levels of management.
The s!eed of decision making can be increased.
*oordination and control among decision makers can be increased.
+n terms of relationshi!s with their e-ternal environments, +T has hel!ed organi0ations manage
more effectivel& in the following wa&s:
+T hel!s with customer relationshi! management b& !roviding information regarding
customer needs, !references, and satisfactions.
+T hel!s organi0ations in all as!ects of su!!l& chain management.
+T hel!s organi0ations to monitor outsourcing and other business contracts.
es!onse: "age 121-12/
Bloom,s Ta-onom&: S&nthesis
Information and Managerial Decisions
/8. "erformance threat is a situation in which something is obviousl& wrong or has the !otential to go
wrong.
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Ans: True
es!onse: "age 123
%ifficult&: 'as&
ef: +nformation and Managerial %ecisions
AA*SB: 4!erations Management
/#. "erformance threat is a situation in which something is !ossibl& wrong or has the !otential to go
wrong.
Ans: 5alse
es!onse: "age 123
/2. "erformance threat is a situation in which something is currentl& right but has the !otential to go
wrong.
Ans: 5alse
es!onse: "age 123
/$. ;hen something is obviousl& wrong or has the !otential to go wrong we are faced with a
!erformance threat.
Ans: True
es!onse: "age 123
/=. The management !rocesses of !lanning, organi0ing, leading, and controlling is ultimatel& driven
b& information.
Ans: True
es!onse: "age 123-123
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AA*SB: (eadershi! "rinci!les
/>. +n management, +T has !lanning, organi0ing, leading, and controlling advantages.
Ans: True
es!onse: "age 12/
%ifficult&: 'as&
36. A performance threat is a situation in which something is obviousl& wrong or has the !otential to
go wrong.
Ans: 5alse
es!onse: "age 123
31. A performance opportunity occurs when actual !erformance is less than desired !erformance.
Ans: 5alse
es!onse: "age 123
3/. "roblem solving is the !rocess of choosing among more than / alternative courses of action for
dealing with a !roblem.
Ans: 5alse
es!onse: "age 123
%ifficult&: 'as&
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edition Test Bank
33. "roblem solving is the !rocess of identif&ing a discre!anc& between actual and desired states, and
then taking a!!ro!riate corrective action.
Ans: True
es!onse: "age 123
%ifficult&: 'as&
38. A decision is a choice among alternative !ossible courses of action.
Ans: True
es!onse: "age 123
%ifficult&: 'as&
3#. "roblem solving and decision making are de!endent on Cualit& information being available to the
right !eo!le at the right time.
Ans: True
es!onse: "age 123
Bloom,s Ta-onom&: Anal&sis
32. Managers who unwillingl& ignore information that would otherwise signal the !resence of a
!roblem are !roblem deniers.
Ans: 5alse
es!onse: "age 123
%ifficult&: 'as&
3$. "roblem solvers are managers who tr& to solve !roblems but onl& when forced to b& the situation.
2->
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Ans: True
es!onse: "age 123
%ifficult&: 'as&
3=. "roblem seekers activel& !rocess information and constantl& look for !roblems to solve or
o!!ortunities to e-!lore.
Ans: True
es!onse: "age 128
%ifficult&: 'as&
3>. "roblem avoiders ignore information that would otherwise signal the !resence of a !roblemE
!roblem seekers tr& to solve !roblems as the& ariseE and !roblem solvers activel& !rocess
information and look for !roblems to solve or o!!ortunities to e-!lore.
Ans: 5alse
es!onse: "age 123-128
86. A !erson who a!!roaches !roblems in a rational, ste!-b&-ste!, and anal&tical fashion is engaging
in s&stematic thinking.
Ans: True
es!onse: "age 128
%ifficult&: 'as&
81. S&stematic thinkers are likel& to deal with onl& certain as!ects of a !roblem simultaneousl&,
consider reasonable hunches, and Fum! Cuickl& from one issue to another.
Ans: 5alse
es!onse: "age 128
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8/. S&stematic thinkers are likel& to break a com!le- !roblem into smaller com!onents, make a !lan
before taking action, and search for information to facilitate !roblem solving in a ste!-b&-ste!
fashion.
Ans: True
es!onse: "age 128
83. +ntuitive thinkers a!!roach !roblems in an infle-ible but s!ontaneous fashion.
Ans: 5alse
es!onse: "age 128
%ifficult&: 'as&
88. +ntuitive thinkers will broadl& and Cuickl& evaluate a !roblem situation, e-!lore and abandon
alternatives ver& Cuickl&, and consider a number of alternatives and o!tions simultaneousl&.
Ans: True
es!onse: "age 128
8#. Managers should use s&stematic thinking in high uncertaint& situations where limited facts and
few decision !recedents e-ist.
Ans: 5alse
es!onse: "age 128
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82. Multidimensional thinking is the ca!acit& to view man& !roblems at once, in relationshi! to one
another, and across long and short time hori0ons.
Ans: True
es!onse: "age 128
AA*SB: Strateg&
8$. *ognitive st&les are the various wa&s individuals deal with information while making decisions.
Ans: True
es!onse: "age 12#
8=. The four cognitive st&les are sensation thinkers, intuitive thinkers, intuitive feelers, and
s&stematic feelers.
Ans: 5alse
es!onse: "age 12#
%ifficult&: 7ard
8>. "rogrammed decisions use solutions alread& available from !ast e-!erience to solve structured
!roblems.
Ans: True
es!onse: "age 122
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#6. A !rogrammed decision is made when students are !laced on academic !robation for not
maintaining a minimum grade !oint average.
Ans: True
es!onse: "age 122
#1. A !rogrammed decision is made when a new and unfamiliar !roblem arises and a novel solution
is crafted to meet the demands of the uniCue situation at hand.
Ans: 5alse
es!onse: "age 122
#/. Most !roblem situations encountered b& middle-level managers can be classified as routine and
structured.
Ans: 5alse
es!onse: "age 122
%ifficult&: 'as&
#3. Gnstructured !roblems are ones that are familiar, straightforward, and clear with res!ect to the
information needs.
Ans: 5alse
es!onse: "age 122
%ifficult&: 'as&
#8. Gnstructured !roblems are full of ambiguities and information deficiencies, and reCuire
non!rogrammed decisions that craft novel solutions to meet the demands of a uniCue situation.
2-13
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Ans: True
es!onse: "age 122
##. *onsidering an em!lo&ee1s reCuest for tuition reimbursement of a Fob-related course taken at the
local communit& college dis!la&s a non!rogrammed decision.
Ans: 5alse
es!onse: "age 122
%ifficult&: 7ard
#2. A crisis is an une-!ected !roblem that can lead to disaster if not resolved Cuickl& and
a!!ro!riatel&.
Ans: True
es!onse: "age 122
%ifficult&: 'as&
#$. Most managers react to crisis situations b& readil& involving others in solving the !roblem.
Ans: 5alse
es!onse: "age 122
%ifficult&: 'as&
#=. "roactive managers tr& to identif& those situations likel& to be susce!tible to a crisis, and then
develo! basic contingenc& !lans for crisis management.
Ans: True
es!onse: "age 12$
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#>. A crisis ma& be made worse if critical decisions are made with !oor or inadeCuate information
and from a limited !ers!ective.
Ans: True
es!onse: "age 12$
26. An a!!ro!riate guideline for crisis management is to take the time to understand what is going on
with the crisis situation and the conditions under which the crisis must be resolved.
Ans: True
es!onse: "age 12$
21. An a!!ro!riate rule for crisis management is to never back off of a crisis because there will never
be a better o!!ortunit& than the !resent time to resolve a crisis situation.
Ans: 5alse
es!onse: "age 12$
2/. An a!!ro!riate guideline for crisis management is to never Hfight fire with fireI b& creating an
alternate crisis for the !ur!ose of gaining attention.
Ans: 5alse
es!onse: "age 12$
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23. A certain environment is the decision environment in which com!lete information is available
about !ossible alternative courses of action and their outcomes.
Ans: True
es!onse: "age 12=
%ifficult&: 'as&
28. ;hen decision makers lack com!lete information on action alternatives and their conseCuences
but have some knowledge of the !robabilities associated with the various outcomes, the& are
o!erating in an environment of uncertaint&.
Ans: 5alse
es!onse: "age 12=
2#. Gncertaint& is the most difficult decision environment for an& manager.
Ans: True
es!onse: "age 12=
%ifficult&: 'as&
The Decision-Making Process
22. The decision-making !rocess involves a set of activities and events entails the identification of a
!roblem, making a decision, and the evaluation of results.
Ans: True
es!onse: "age 12>
ef: The %ecision-Making "rocess
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2$. %ecision making is a si--ste! !rocess that begins with generating alternative solutions and ends
with im!lementing the solution.
Ans: 5alse
es!onse: "age 12>
%ifficult&: 'as&
2=. The first ste! in the decision-making !rocess involves gathering information, !rocessing
information, and deliberating.
Ans: True
es!onse: "age 12>
%ifficult&: 'as&
2>. A ke& as!ect of !roblem identification and definition involves classif&ing and !rioriti0ing goals
b& determining roughl& what a decision might accom!lish.
Ans: 5alse
es!onse: "age 12>
$6. *ommon mistakes in defining !roblems include: focusing on s&m!toms instead of causes,
choosing the wrong !roblem to address, and defining the !roblem too broadl& or too narrowl&.
Ans: True
es!onse: "age 12>-1$6
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$1. Beneration and evaluation of alternative course of action is the decision making stage at which
!eo!le assemble the facts and information that will be hel!ful for !roblem solving.
Ans: True
es!onse: "age 1$6
$/. A costJbenefit anal&sis com!ares the costs of im!lementing an alternative with its e-!ected
benefits.
Ans: True
es!onse: "age 1$1
%ifficult&: 'as&
$3. T&!ical criteria for evaluating alternative solutions include benefits, costs, timeliness,
acce!tabilit&, and ethical soundness.
Ans: True
es!onse: "age 1$1
$8. The second ste! of the decision-making !rocess will be effective when the search for alternatives
is com!leted ra!idl&.
Ans: 5alse
es!onse: "age 1$1
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$#. The second ste! of the decision-making !rocess will be effective when alternatives meet ethical
standards that are acce!table to the organi0ation1s various stakeholders.
Ans: True
es!onse: "age 1$1
%ifficult&: 7ard
$2. The third ste! of the decision-making !rocess involves selecting a !referred course of action.
Ans: True
es!onse: "age 1$1
%ifficult&: 'as&
$$. According to classical decision theor&, managers make rational choices in a certain world because
the& have com!lete information regarding all !ossible alternatives and their conseCuences.
Ans: True
es!onse: "age 1$1
%ifficult&: 7ard
$=. According to classical decision theor&, managers choose the satisfactor& alternative to an&
!roblem that is !resented to them.
Ans: 5alse
es!onse: "age 1$/
%ifficult&: 'as&
$>. A manager who chooses the alternative giving the absolute best solution to a !roblem is making
an o!timi0ing decision.
Ans: True
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es!onse: "age 1$1
%ifficult&: 'as&
=6. Making decisions within the constraints of limited information and alternatives is known as
bounded rationalit&.
Ans: True
es!onse: "age 1$/
%ifficult&: 'as&
=1. The behavioral decision model describes decision making with com!lete information, where the
manager faces a clearl& defined !roblem and knows all !ossible action alternatives as well as
their conseCuences.
Ans: 5alse
es!onse: "age 1$/
=/. The behavioral decision model describes decision making where !eo!le are assumed to act onl&
in terms of what the& !erceive about a given situation.
Ans: True
es!onse: "age 1$/
%ifficult&: 'as&
=3. According to the behavioral decision model, managerial decisions are rational onl& within the
boundaries defined b& available information.
Ans: True
es!onse: "age 1$/
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=8. According to the behavioral decision model, com!etent managers even with cognitive
limitations can make !erfectl& rational decisions in highl& ambiguous situations.
Ans: 5alse
es!onse: "age 1$/
%ifficult&: 'as&
=#. ;hen a manager chooses the first satisfactor& alternative that comes to his or her attention during
the decision-making !rocess, satisficing occurs.
Ans: True
es!onse: "age 1$/
=2. The satisficing error refers to the failure to adeCuatel& involve those !ersons who are most likel&
to be directl& im!acted b& the decision result.
Ans: 5alse
es!onse: "age 1$/
=$. +m!lementation is the decision making stage at which !roblem-solving actions are initiated.
Ans: True
es!onse: "age 1$/
%ifficult&: 'as&
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==. The failure to adeCuatel& involve the !eo!le whose su!!ort is necessar& to ensure a !lan1s
im!lementation is a maFor reason for difficulties in the im!lementation stage of decision making.
Ans: True
es!onse: "age 1$/
%ifficult&: 7ard
=>. The final stage of the decision-making !rocess is evaluating results.
Ans: True
es!onse: "age 1$3
%ifficult&: 'as&
>6. +n the final stage of the decision-making !rocess, the manager needs to e-amine onl& negative
conseCuences of the chosen course of action so that these can be avoided in the future.
Ans: 5alse
es!onse: "age 1$3
>1. +n the final stage of the decision-making !rocess, a modified or new solution ma& need to be
generated if the original solution a!!ears to be inadeCuate.
Ans: True
es!onse: "age 1$3
%ifficult&: 7ard
Issues in Managerial Decision Making
2-//
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>/. ;hen !eo!le face com!le- environments and have limited information, the& often use heuristics
to sim!lif& decision-making.
Ans: True
es!onse: "age 1$8
ef: +ssues in Managerial %ecision Making
>3. The anchoring and adFustment heuristic occurs when !eo!le use information Hreadil& availableI
from memor& as a basis for assessing a current situation or event.
Ans: 5alse
es!onse: "age 1$8
>8. The availabilit& heuristic bases decisions on recent information or events.
Ans: True
es!onse: "age 1$8
%ifficult&: 'as&
>#. The re!resentativeness heuristic involves making decisions based on alterations to a !reviousl&
e-isting value or starting !oint.
Ans: 5alse
es!onse: "age 1$#
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>2. ;hen a !roblem is evaluated and resolved in the !ositive or negative conte-t in which it is
!erceived, a framing error occurs.
Ans: True
es!onse: "age 1$2
>$. *onfirmation error occurs when the decision maker focuses onl& on how the decision is received
b& ever&one involved in order to gain confirmation of the decision made.
Ans: 5alse
es!onse: "age 1$2
%ifficult&: 'as&
>=. 'scalating commitment refers to the tendenc& to increase effort and !erha!s a!!l& more resources
to !ursue a course of action that is not working.
Ans: True
es!onse: "age 1$2
>>. Avoiding the escalation of commitment tra! in decision making can be accom!lished b&: setting
advance limits on involvement, determining wh& the !articular course of action is right, kee!ing
in mind the costs involved, and not letting others influence &our decision.
Ans: True
es!onse: "age 1$2
%ifficult&: 7ard
166. *reativit& in management is generating a novel idea or uniCue a!!roach to solving !erformance
!roblems or e-!loiting !erformance o!!ortunities.
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Ans: True
es!onse: "age 1$2
AA*SB: Strateg&
161. The three com!onent model of creativit& includes task e-!ertise, task motivation, and time
management skills.
Ans: 5alse
es!onse: "age 1$$
%ifficult&: 7ard
AA*SB: *reativit&
16/. A !erson or team doesn1t need task e-!ertise to make creative decisions.
Ans: True
es!onse: "age 1$$
AA*SB: Strateg&
163. 4ne of the most im!ortant creativit& skills is the willingness to Cuestion assum!tions.
Ans: True
es!onse: "age 1$$
%ifficult&: 'as&
AA*SB: Strateg&
168. Some of the characteristics that describe creative !eo!le are resourceful, s&stematic and intuitive
in !roblem solving, think outside the bo-, transfer learning from one setting to others.
Ans: True
es!onse: "age 1$$
%ifficult&: 7ard
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16#. Two of the most im!ortant situational creativit& drivers are management su!!ort and
organi0ational culture.
Ans: True
es!onse: "age 1$$
%ifficult&: 7ard
162. ;hen a manager is testing ethical reasoning, it is im!ortant for himJher to ask the following
s!otlight Cuestions: H7ow would + feel if m& famil& found out about this decisionDI and H7ow
would + feel if this decision were !ublished in the local news!a!erDI
Ans: True
es!onse: "age 1$8
AA*SB: 'thical es!onsibilities
16$. An& discomfort in answering the s!otlight Cuestions signifies that the decision ma& have ethical
shortcomings.
Ans: True
es!onse: "age 1$8
16=. 4nl& maFor managerial decisions need to meet the criteria of the s!otlight Cuestions since these
decisions are the ones most likel& under the scrutin& of the !ublic.
Ans: 5alse
es!onse: "age 1$8
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16>. 7ow can managers ensure the& are making ethical decisionsD
Ans: An& decision that managers make should be ethical. An& decision that managers make should
meet the Hs!otlight CuestionsI test of Ste! 3 of the decision-making !rocess. The Hs!otlight
CuestionsI test should address two s!otlight Cuestions: H7ow would + feel if m& famil& found out
about this decisionDI and H7ow would + feel if this decision were !ublished in the local
news!a!erDI +f a manager e-!eriences an& discomfort in answering these Cuestions honestl&, the
decision !robabl& has ethical shortcomings. +n addition to the two s!otlight Cuestions, managers
should ask and answer the following Cuestions:
%oes the decision satisf& all constituents or stakeholdersD
%oes the decision res!ect the rights and duties of ever&oneD
+s the decision consistent with the canons of FusticeD
+s the decision consistent with m& res!onsibilities to careD
es!onse: "age 1$8
Information, Technology, and Management
116. KKKKKKKKKKKK involves s&stematic gathering and !rocessing of data to make it useful as
information.
A. Management with anal&tics
B. *om!uter com!etenc&
*. +nformation com!etenc&
%. Business !lan
'. ?one of the above
Ans: A
es!onse: "age 1#=
%ifficult&: 'as&
AA*SB: Strateg&
111. ;hen a com!an& is engaged in the s&stematic gathering and !rocessing of data to make it useful
as information the& are utili0ing:
A. Management b& obFectives
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B. *om!uter com!etenc&
%. Management with anal&tics
Ans: %
es!onse: "age 1#=
AA*SB: Strateg&
11/. AB*, +nc. has been involved in gathering and !rocessing data s&stematicall& from man& of their
internal de!artments. The& are utili0ing this data in order to make it useful as information. This is
an e-am!le of:
A. 'ntre!reneurshi!
B. Management with anal&tics
%. Business !lan
Ans: B
es!onse: "age 1#=
AA*SB: Strateg&
113. Management with anal&tics involves s&stematic gathering and !rocessing of KKKKKKK to make it
useful as KKKKKKKKK.
A. numbers, statistics
B. information, information
*. statistics, re!orts
%. information, data
'. data, information
Ans: '
es!onse: "age 1#=
AA*SB: Strateg&
118. KKKKKKKKKK is the abilit& to understand com!uters and use them to best advantage.
A. +ntellectual ca!ital.
2-/=
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edition Test Bank
B. *om!uter com!etenc&.
*. +nformation com!etenc&.
%. .nowledge management.
'. *om!uter s&stems su!!ort.
Ans: B
es!onse: "age 1#=
%ifficult&: 'as&
11#. KKKKKKKKKK is the abilit& to utili0e com!uters and information technolog& to locate, retrieve,
evaluate, organi0e, and anal&0e information for decision making.
A. +ntellectual ca!ital.
B. *om!uter com!etenc&.
*. +nformation com!etenc&.
%. .nowledge management.
'. %ecision su!!ort management.
Ans: *
es!onse: "age 1#=
112. KKKKKKKKKK are raw facts and observations.
A. %ata.
B. +nformation.
*. %ecisions.
%. "erce!tions.
'. 5iles.
Ans: A
es!onse: "age 1#=
%ifficult&: 'as&
11$. KKKKKKKKKK is KKKKKKKKKK made useful and meaningful for decision making.
A. +nformation understandabilit&.
B. Timeliness data.
2-/>
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edition Test Bank
*. %ata information.
%. '-commerce information.
'. +nformation data.
Ans: '
es!onse: "age 1#=
11=. ;hich of the following is ?4T a characteristic of useful informationD
A. The information is available when needed.
B. The information is accurate and reliable.
*. The information is com!lete and sufficient for the task at hand.
%. The information is a!!ro!riate for the task at hand.
'. The information will enable the user to be involved in making decisions and increase the
likelihood of hisJher commitment to those decisions.
Ans: '
es!onse: "age 1#>
11>. Gseful information meets the test of five criteria. These criteria are KKKKKKKKKK.
A. Timeliness, Cuantit&, com!leteness, relevance, and understandabilit&.
B. Timeliness, Cualit&, com!leteness, relevance, and understandabilit&.
*. Timeliness, Cualit&, com!leteness, relevance, and acce!tance.
%. Timeliness, Cuantit&, Cualit&, com!leteness, and acce!tance.
'. Timeliness, com!leteness, relevance, a!!licabilit&, and acce!tance.
Ans: B
es!onse: "age 1#>
1/6. KKKKKKKKKK meets the s!ecific information needs of managers as the& make decisions on a dail&
basis.
A. An e-tranet.
B. An intranet.
2-36
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*. A management information s&stem.
%. An enter!rise-wide network.
'. An interorgani0ational information s&stem.
Ans: *
es!onse: "age 121
1/1. KKKKKKKKKK use the latest in information technolog& to collect, organi0e, and distribute data in
such as wa& that the& become meaningful as information.
A. ?etwork !ortals.
B. +nformation s&stems.
*. *om!uter networks.
%. S&stems anal&sis !ackages.
'. +nformation control !ortals.
Ans: B
es!onse: "age 121
%ifficult&: 'as&
1//. The advantages of a!!ro!riate information technolog& @+TA utili0ation include all of the following
'L*'"T:
A. M+S utili0ation allows for better and timelier access to useful information, as well as for
involving more !eo!le in the !lanning !rocess.
B. M+S utili0ation allows for more ongoing and informed communication among all !arts of the
organi0ation, hel!ing ensure better coordination and integration.
*. M+S utili0ation allows for better and more freCuent communication with all organi0ation
members and ke& environmental stakeholders.
%. M+S utili0ation allows for greater reliance on com!uter and information technolog& in
addressing the challenges faced b& an organi0ation.
'. M+S utili0ation allows for more immediate and com!lete measurement of !erformance
results, thereb& allowing real-time solutions to !erformance !roblems.
Ans: %
es!onse: "age 12/-123
%ifficult&: 7ard
2-31
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edition Test Bank
1/3. +nformation technolog& facilitates all of the following e-ce!t:
A. "la&s a role in customer relationshi! management
B. *reates functional barriers between organi0ations
*. *ontrols costs in su!!l& chain management
%. Allows outsourcing and other business
Ans: B
es!onse: "age 12/
%ifficult&: 7ard
Information and Managerial Decisions
1/8. '-!lain how risk, certaint&, and uncertaint& influence the decisions that managers make.
Ans: *ertaint&, risk, and uncertaint& re!resent the three decision environments within which
managerial decision making and !roblem solving take !lace. *ertain environments offer
sufficient information about !ossible action alternatives and their outcomes. ;hile this
environment is ideal for decision making, ver& few managerial decisions actuall& occur in certain
environments. isk environments lack com!lete information about action alternatives and their
conseCuences, but offer some estimates of !robabilities associated with the !otential outcomes of
!ossible action alternatives. Gncertain environments occur when information is so !oor that
managers are unable even to assign !robabilities to the likel& outcomes of known alternatives.
isk environments and uncertain environments re!resent the vast maForit& of decision-making
and !roblem-solving situations encountered b& managers.
es!onse: "age 12$-12=
%ifficult&: 7ard
Bloom,s Ta-onom&: 'valuation
1/#. %ealing with a situation in which something is obviousl& wrong or has the !otential to go wrong
is an e-am!le of:
A. "erformance threat
B. "erformance review
*. "erformance o!!ortunit&
%. "erformance deficienc&
2-3/
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edition Test Bank
Ans: A
es!onse: "age 123
%ifficult&: 'as&
1/2. A KKKKKKKKKKKKKK is a situation in which something is obviousl& wrong or has the !otential to
go wrong is an e-am!le of:
A. "erformance creation
B. "erformance review
%. "erformance threat
Ans: %
es!onse: "age 123
1/$. AB* com!an& has been dealing with a !roblem in their accounting de!artment in which there is
obviousl& something wrong or has the !otential to go wrong, this is an e-am!le of a:
A. "erformance review
B. "erformance threat
%. "erformance indicator
Ans: B
es!onse: "age 123
1/=. ick is faced with a uniCue situation in his role as manager, he has a situation where something is
obviousl& wrong or has the !otential to go wrong. ick is facing a:
A. "erformance review
B. "erformance conce!t
%. "erformance threat
2-33
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Ans: %
es!onse: "age 123
1/>. 5ull utili0ation of +T !rovides advantages to the management !rocess of !lanning, organi0ing,
leading, and controlling. B& !roviding more and better communication among all !arts and
im!roving coordination and integration, +T addresses:
A. "lanning advantages
B. 4rgani0ing advantages
*. (eading advantages
%. *ontrolling advantages
'. %isci!lining advantages
Ans: B
es!onse: "age 123
%ifficult&: 7ard
136. ;hen a com!an& is involved in the act of !roblem solving, the& are utili0ing the !rocess of
KKKKKKKKKK.
A. *hoosing among alternative courses of action for dealing with a !roblem.
B. +dentif&ing a discre!anc& between actual and desired states, and then taking a!!ro!riate
corrective action.
*. A!!roaching a !roblem in a rational and logical manner.
%. A!!roaching a !roblem in an aggressive, corrective manner.
'. 5inding a !erformance deficienc&.
Ans: B
es!onse: "age 123
%ifficult&: 'as&
131. A@nA KKKKKKKKKK is a choice among alternative !ossible courses of action.
A. "roblem.
B. "erformance deficienc&.
*. "erformance o!!ortunit&.
%. %ecision.
'. Action !lan.
2-38
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Ans: %
es!onse: "age 123
%ifficult&: 'as&
13/. "roblem solving and decision making are de!endent on Cualit& KKKKKKKKKK being available to
the right !eo!le at the right time.
A. "roducts.
B. Services.
*. +nformation.
%. *ontrol.
'. Boals.
Ans: *
es!onse: "age 123
%ifficult&: 'as&
133. A KKKKKKKKKK is a situation in which something is obviousl& wrong or has the !otential to go
wrong.
A. "erformance issue.
B. "erformance threat.
%. %ecision situation.
'. Management challenge.
Ans: B
es!onse: "age 123
%ifficult&: 'as&
138. A KKKKKKKKKK occurs when an actual situation turns out either better than antici!ated or offers
the !otential to be better than antici!ated.
A. "erformance issue.
B. "erformance deficienc&.
%. %ecision situation.
'. Management challenge.
2-3#
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edition Test Bank
Ans: *
es!onse: "age 123
%ifficult&: 'as&
13#. ;hen Bob faces a !roblem he !refers to attack the !roblem in a rational, ste!-b&-ste!, and
anal&tical fashion. Bob is engaging in KKKKKKKKKK.
A. isk anal&sis.
B. Gncertaint& anal&sis.
*. S&stematic thinking.
%. +ntuitive thinking.
'. Strategic o!!ortunism.
Ans: *
es!onse: "age 128
%ifficult&: 'as&
132. S&stematic thinkers are likel& to KKKKKKKKKK.
A. Make a !lan for solving a !roblem but e-!lore and abandon alternatives ver& Cuickl&.
B. Break a com!le- !roblem into smaller com!onents, make a !lan before taking action, and
search for information to facilitate !roblem solving in a ste!-b&-ste! fashion.
*. Broadl& and Cuickl& evaluate the !roblem situation and the !ossible alternative course of
action.
%. el& on nonverbal cues and hunches to solve !roblems.
'. %eal with man& as!ects of a !roblem simultaneousl&, consider hunches, and Fum! Cuickl&
from one issue to another.
Ans: B
es!onse: "age 128
13$. Someone who a!!roaches !roblems in a fle-ible and s!ontaneous fashion is engaging in
KKKKKKKKKK.
A. isk anal&sis.
B. Gncertaint& anal&sis.
*. S&stematic thinking.
2-32
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%. +ntuitive thinking.
'. Strategic o!!ortunism.
Ans: *
es!onse: "age 128
%ifficult&: 'as&
13=. +ntuitive thinkers are likel& to do all of the following 'L*'"T:
A. Broadl& and Cuickl& evaluate a !roblem situation.
B. '-!lore and abandon alternatives ver& Cuickl&.
*. *onsider a number of alternatives and o!tions simultaneousl&.
%. *onsider hunches and Fum! Cuickl& from one issue to another.
'. Solve !roblems in a ste!-b&-ste! fashion.
Ans: '
es!onse: "age 128
%ifficult&: 'as&
13>. Managers should use KKKKKKKKKK in high uncertaint& situations where limited facts and few
decision !recedents e-ist.
A. S&stematic thinking.
B. +ntuitive thinking.
*. The nominal grou! techniCue.
%. The brainstorming techniCue.
'. %ecision tree anal&sis.
Ans: B
es!onse: "age 128
186. All of the following are cognitive st&les in decision making e-ce!t:
A. Sensation thinkers
B. +ntuitive thinkers
*. Sensation feelers
%. +nformational thinker
'. +ntuitive feeler
2-3$
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edition Test Bank
Ans: %
es!onse: "age 12#
%ifficult&: 'as&
181. KKKKKKKKKK is the ca!acit& to view man& !roblems at once, in relationshi! to one another, and
across long and short time hori0ons.
A. +ntuitive thinking.
B. '-!ert thinking.
*. Strategic thinking.
%. Multidimensional thinking.
'. Alternative thinking.
Ans: %
es!onse: "age 128
AA*SB: Strateg&
18/. KKKKKKKKKK is the abilit& to remain focused on long-term obFectives while being fle-ible in
dealing with short-term !roblems and o!!ortunities in a timel& manner.
A. +ndividual o!!ortunism.
B. S&stem o!!ortunism.
*. Strategic o!!ortunism.
%. *om!etitive o!!ortunism.
'. +ntuitive o!!ortunism.
Ans: *
es!onse: "age 128
AA*SB: Strateg&
183. KKKKKKKKKK use solutions alread& available from !ast e-!erience to solve KKKKKKKKKK.
A. "rogrammed decisions structured !roblems.
B. ?on!rogrammed decisions structured !roblems.
*. "rogrammed decisions unstructured !roblems.
%. ?on!rogrammed decisions unstructured !roblems.
'. *risis decisions structured !roblems.
2-3=
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edition Test Bank
Ans: A
es!onse: "age 122
%ifficult&: 'as&
188. KKKKKKKKKK are ones that are familiar, straightforward, and clear with res!ect to the information
needs.
A. '-!ected !roblems.
B. Gnstructured !roblems.
*. S&stematic decisions.
%. Structured !roblems.
'. Administrative decisions.
Ans: %
es!onse: "age 122
%ifficult&: 'as&
18#. KKKKKKKKKK are full of ambiguities and information deficiencies, and reCuire KKKKKKKK that craft
novel solutions to meet the demands of a uniCue situation.
A. Structured !roblems !rogrammed decisions
B. Structured !roblems non!rogrammed decisions
*. Gnstructured !roblems non!rogrammed decisions
%. Gnstructured !roblems. !rogrammed decisions
'. Structured !roblems crisis decisions.
Ans: *
es!onse: "age 122
182. A@nA KKKKKKKKKK is made when a new and unfamiliar !roblem arises and a novel solution is
crafted to meet the demands of the uniCue situation at hand.
A. "rogrammed decision.
B. ?on!rogrammed decision.
*. Structured decision.
%. Gnstructured decision.
2-3>
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'. %ifficult decision.
Ans: B
es!onse: "age 122
%ifficult&: 'as&
18$. An une-!ected !roblem that can lead to disaster if not resolved Cuickl& and a!!ro!riatel& is
known as KKKKKKKKKK.
A. A structured !roblem.
B. An unstructured !roblem.
*. A non!rogrammed decision.
%. A !rogrammed decision.
'. A crisis.
Ans: '
es!onse: "age 122
%ifficult&: 'as&
18=. Terrorism in the !ost->J11 world, ethical scandals, outbreaks of work!lace violence, information
technolog& failures, and man-made environmental disasters are all e-am!les of KKKKKKKKKK
!roblems that managers sometimes face.
A. outine.
B. *reative.
*. *risis.
%. '-!ected.
'. "rogrammed.
Ans: *
es!onse: "age 122
%ifficult&: 'as&
18>. KKKKKKKKKK refers to the !re!aration of managers and others to deal with une-!ected high-im!act
events that threaten an organi0ation1s well-being.
A. 5iscal res!onsibilit&.
B. 7igh conte-t !lanning.
*. elief antici!ation management.
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%. +m!act avoidance goal setting.
'. *risis management.
Ans: '
es!onse: "age 12$
%ifficult&: 'as&
1#6. ;hich of the following is not an a!!ro!riate rule or guideline for crisis managementD
A. Take the time to understand what is going on with the crisis situation and the conditions
under which the crisis must be resolved.
B. Attack the crisis as Cuickl& as !ossible to kee! it as small as !ossible.
*. .now when to back off and wait for a better o!!ortunit& to make !rogress with the crisis.
%. ?ever Hfight fire with fireI b& starting another crisis to get !eo!le1s attention.
'. es!ect the danger of the unfamiliar and value the ske!tic.
Ans: %
es!onse: "age 12$
1#1. A KKKKKKKKKK is the decision environment in which com!lete information is available about
!ossible alternative courses of action and their outcomes.
A. "robabilit& environment.
B. Gncertain environment.
*. isk environment.
%. *ertain environment.
'. ?ormal environment.
Ans: %
es!onse: "age 12=
1#/. The ideal, but seldom achieved, condition for managerial !roblem solving is characteri0ed b&
KKKKKKKKKK.
A. (ow risk, because managers seek little stimulation.
B. 7igh risk, because that is when high !rofits are !ossible.
*. Gncertaint&, because that offers the greatest chance for creativit&.
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%. ?ormalit&, because that is the condition under which all the business school !rinci!les work.
'. *ertaint&, because the manager sim!l& has to locate the alternative offering the best solution.
Ans: '
es!onse: "age 12=
1#3. ;hen decision makers lack com!lete information on action alternatives and their conseCuences
but have some knowledge of the !robabilities associated with the various outcomes, the& are
o!erating in an environment of KKKKKKKKKK.
A. *ertaint&.
B. isk.
*. Gncertaint&.
%. SubFectivit&.
'. 'Cuifinalit&.
Ans: B
es!onse: "age 12=
%ifficult&: 'as&
1#8. ;hen managers are unable to even assign !robabilities to the outcomes attached to various
!roblem-solving alternatives, KKKKKKKKKK.
A. A state of crisis e-ists.
B. Gncertaint& e-ists.
*. Managers cannot rel& on creativit&.
%. ?o solutions are !ossible.
'. The !lanning s&stem must rel& on managers1 intuition.
Ans: B
es!onse: "age 12=
%ifficult&: 'as&
1##. The most difficult decision environment for an& manager to deal with is KKKKKKKKKK.
A. *ertaint&.
B. isk.
*. Gncertaint&.
2-8/
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edition Test Bank
%. "robabilit&.
'. +nnovation.
Ans: *
es!onse: "age 12=
%ifficult&: 'as&
The Decision-Making Process
1#2. A!!l& the ste!s in the decision-making !rocess to a decision that &ou have made or are in the
!rocess of making. B& a!!l&ing this model to &our own decision situation, what insights do &ou
gain regarding how effective &ou are as a decision makerD
Ans: 5igure 2.# from the te-t de!icts a five-ste! decision-making !rocess. These ste!s are described
below.
Ste! 1: identif& and define the !roblem. This is a stage of information gathering,
information !rocessing, and deliberation.
Ste! /: generate and evaluate alternative solutions. Several !otential solutions are
formulated at this stage. More information is gathered, data are anal&0ed, and the
advantages and disadvantages associated with !ossible alternative courses of action are
identified.
Ste! 3: choose a !referred course of action and conduct the Hethics double-check.I +n this
ste!, a decision is made to !ursue a !articular course of action and the ethical
im!lications of it are e-amined.
Ste! 8: im!lement the action. +n this ste!, a!!ro!riate action !lans must be established
and full& im!lemented.
Ste! #: evaluate results. 'valuation involves com!aring accom!lishments to obFectives.
The students should evaluate their own decision situation in light of the activities that occur that
each ste! of the above !rocess.
es!onse: "age 12>-1$3
1#$. The KKKKKKKKKK involves a set of activities and events that begins with identification of a
!roblem, includes making a decision, and ends with the evaluation of results.
A. *ontrol !rocess.
B. 4rgani0ing !rocess.
*. (eading !rocess.
%. %ecision-making !rocess.
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'. ?egotiation !rocess.
Ans: %
es!onse: "age 12>
%ifficult&: 'as&
1#=. %ecision making is a KKKKKKKKKK !rocess that begins with KKKKKKKKKK and ends with
KKKKKKKKKK.
A. 5ive-ste! M identif&ing and defining the !roblem M evaluating results.
B. 5ive-ste! M identif&ing and defining the !roblem M im!lementing the solution.
*. 5our-ste! M identif&ing and defining the !roblem M im!lementing the solution.
%. Si--ste! M generating alternative solutions M evaluating the results.
'. Si--ste! M generating alternative solutions M im!lementing the solution.
Ans: A
es!onse: "age 12>
1#>. The first ste! in the decision-making !rocess involves KKKKKKKKKK.
A. Benerating alternative solutions and evaluating them.
B. Selecting a !referred solution.
*. +m!lementing the !referred solution.
%. +dentif&ing and defining the !roblem.
'. 'valuating the results.
Ans: %
es!onse: "age 12=
126. A ke& as!ect of KKKKKKKKKK involves clarif&ing goals b& determining e-actl& what a decision
should accom!lish.
A. 'valuation of solutions.
B. +m!lementation of solutions.
*. "roblem identification and definition.
%. Beneration of solutions.
'. *hoosing a !referred solution.
2-88
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Ans: *
es!onse: "age 12>
121. Stating a !roblem as the need to Hbuild a better mousetra!I instead of the need to Hget rid of
miceI is an e-am!le of which t&!e of error in identif&ing and defining a !roblemD
A. *hoosing the wrong !roblem to deal with.
B. 5ocusing on s&m!toms instead of causes.
*. %efining a !roblem too broadl& or too narrowl&.
%. Selective !erce!tion.
'. %oing the routine rather than the une-!ected.
Ans: *
es!onse: "age 12>
12/. KKKKKKKKKK is the decision making stage at which !eo!le assemble the facts and information that
will be hel!ful for !roblem solving.
A. +dentification and !roblem definition.
B. Beneration and evaluation of alternative courses of action.
*. Selection of the !referred course of action and making the Hethics double check.I
%. +m!lementation of the decision solution.
'. 'valuation of results.
Ans: B
es!onse: "age 1$6
123. *om!aring the costs of im!lementing an alternative with its e-!ected benefits is called a@nA
KKKKKKKKKK.
A. +nventor& of alternatives.
B. *ost-benefit anal&sis.
*. %ecision matri-.
%. "a&off table.
'. *hart of !robabilities.
2-8#
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edition Test Bank
Ans: B
es!onse: "age 1$1
%ifficult&: 'as&
128. ;hich of the following features will likel& !revent the second ste! of the decision-making
!rocess from being effectiveD
A. The !ros and cons of !ossible alternative courses of action should be identified
B. Bringing more !eo!le into the decision !rocess adds information and !ers!ective to !roblem
solving.
*. %ecisions are onl& as good as the Cualit& of alternatives that are considered.
%. The search for alternatives should be com!leted Cuickl&.
'. Alternatives should meet ethical standards that are acce!table to the organi0ation1s various
stakeholders.
Ans: %
es!onse: "age 1$1
12#. T&!ical criteria for evaluating alternative solutions to a given situation include all of the following
'L*'"T:
A. Benefits and costs.
B. Timeliness.
*. Acce!tabilit&.
%. 'ase of im!lementation.
'. 'thical soundness.
Ans: %
es!onse: "age 1$1
%ifficult&: 'as&
122. The third ste! of the decision-making !rocess involves KKKKKKKKKK.
A. Benerating alternative solutions and evaluating them.
B. Selecting a !referred course of action
*. +m!lementing the solution.
%. Bathering information, !rocessing information, and deliberating.
2-82
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'. 'valuating the results.
Ans: B
es!onse: "age 1$1
%ifficult&: 'as&
12$. The KKKKKKKKKK describes decision making with com!lete information, where the manager faces
a clearl& defined !roblem and knows all !ossible action alternatives as well as their
conseCuences.
A. *lassical decision model.
B. Administrative decision model.
*. Behavioral decision model.
%. Bounded rationalit& decision model.
'. "olitical decision model.
Ans: A
es!onse: "age 1$1
12=. A manager who chooses the alternative giving the absolute best solution to a !roblem is making
a@nA KKKKKKKKKK.
A. ;ise decision
B. 4!timi0ing decision
*. Managerial decision
%. (imiting decision
'. S&stematic decision.
Ans: B
es!onse: "age 1$1
%ifficult&: 'as&
12>. KKKKKKKKKK indicates that decisions are rational onl& within the boundaries defined b& the
available information.
A. Bounded rationalit&.
B. Available rationalit&.
*. (imited decision making.
2-8$
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edition Test Bank
%. *lassical decision making.
'. 4!timal rationalit&.
Ans: A
es!onse: "age 1$/
%ifficult&: 'as&
1$6. The KKKKKKKKKK describes decision making where !eo!le are assumed to act onl& in terms of
what the& !erceive about a given situation.
A. '-ecutive decision model.
B. "ersonal decision model.
*. Biased decision model.
%. Behavioral decision model.
'. %escri!tive decision model.
Ans: %
es!onse: "age 1$/
1$1. ;hen Bill is faced with a decision he will usuall& choose the first satisfactor& alternative that
comes to his attention. Bill is utili0ing KKKKKKKK for his decision making.
A. rationali0ation.
B. intuition.
*. satisficing.
%. o!timi0ation.
'. utilitarianism.
Ans: *
es!onse: "age 1$/
1$/. The KKKKKKKKKK is !articularl& useful in describing how !eo!le make decisions under conditions
of risk and uncertaint&.
A. *lassical decision model.
B. '-ecutive decision model.
*. Behavioral decision model.
2-8=
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edition Test Bank
%. %escri!tive decision model.
'. "olitical decision model.
Ans: *
es!onse: "age 1$/
1$3. KKKKKKKKKK is the decision-making stage at which !roblem-solving actions are initiated.
B. Solution generation and evaluation.
*. Solution selection and Hethics double check.I
%. +m!lementation.
'. 'valuation.
Ans: %
es!onse: "age 1$/
1$8. The failure to adeCuatel& involve the !eo!le whose su!!ort is necessar& to ensure a !lan1s
im!lementation is a maFor reason for difficulties in the KKKKKKKKKK stage of decision making.
B. Solution generation and evaluation.
*. Solution selection and Hethics double check.I
%. +m!lementation.
'. 'valuation.
Ans: %
es!onse: "age 1$/
1$#. The final stage of the decision-making !rocess is KKKKKKKKKK.
A. +dentif&ing and defining !roblems.
B. Benerating and evaluating solutions.
*. Selection a course of action.
%. +m!lementing the solution.
'. 'valuating results.
2-8>
th
edition Test Bank
Ans: '
es!onse: "age 1$3
%ifficult&: 'as&
1$2. ;hich of the following does ?4T accuratel& describe the evaluation of results in the decision-
making !rocessD
A. The decision-making !rocess is not com!lete until results are evaluated
B. The !rocess must be renewed when results are not achieved.
*. 4nl& negative conseCuences of the chosen course of action need to be e-amined.
%. 'valuation is made easier if the solution involves clear obFectives with measurable targets and
timetables.
'. A modified or new solution ma& need to be generated if the original solution a!!ears to be
inadeCuate.
Ans: *
es!onse: "age 1$3
Issues in Managerial Decision Making
1$$. ;hen !eo!le face com!le- environments and have limited information, the& often use
sim!lif&ing strategies for decision making. These sim!lif&ing strategies are known as
KKKKKKKKKK.
A. Gncertaint& reduction.
B. 7euristics.
*. 4!timi0ing.
%. ationali0ation.
'. ;ork sim!lification.
Ans: B
es!onse: "age 1$8
2-#6
th
edition Test Bank
1$=. ;hich statement about heuristics is correctD
A. The availabilit& heuristic occurs when !eo!le use information from memor& as a basis for
assessing a current situation or event.
B. The re!resentativeness heuristic occurs when !eo!le assess the likelihood of something
occurring based on its similarit& to a stereot&!ed set of occurrences.
*. The anchoring and adFustment heuristic involves making decisions based on alterations to a
!reviousl& e-isting value or starting !oint.
%. All of the above.
'. ?one of the above.
Ans: %
es!onse: "age 1$8-1$#
1$>. The KKKKKKKKKK occurs when !eo!le use information Hreadil& availableI from memor& as a basis
for assessing a current situation or event.
A. e!resentativeness heuristic.
B. Availabilit& heuristic.
*. 'scalation heuristic.
%. Satisficing heuristic.
'. Anchoring and adFustment heuristic.
Ans: B
es!onse: "age 1$8
1=6. The KKKKKKKKKK occurs when !eo!le assess the likelihood of something occurring based on its
similarit& to a stereot&!ed set of occurrences.
Ans: A
es!onse: "age 1$#
2-#1
th
edition Test Bank
1=1. The KKKKKKKKKK involves making decisions based on alterations to a !reviousl& e-isting value or
starting !oint.
Ans: '
es!onse: "age 1$#
1=/. ;hen a !roblem is evaluated and resolved in the !ositive or negative conte-t in which it is
!erceived, a@nA KKKKKKKKKK occurs.
A. (ack of !artici!ation error.
B. 'scalation error.
*. 5raming error.
%. Brou! decision error.
'. Satisficing error.
Ans: *
es!onse: "age 1$2
1=3. KKKKKKKKKoccurs when focusing onl& on information that confirms a decision alread& made.
A. 5raming error
B. Satisficing
*. 7euristics
%. *onfirmation error
'. 'scalation error
Ans: %
es!onse: "age 1$2
2-#/
th
edition Test Bank
1=8. The tendenc& to increase effort and !erha!s a!!l& more resources to !ursue a course of action
that is not working is known as KKKKKKKKKK.
A. *ost-benefit im!act.
B. 7euristics.
*. 'scalating commitment.
%. 'scalating cost im!act.
'. Satisficing.
Ans: *
es!onse: "age 1$2
1=#. The generation of a novel idea or uniCue a!!roach to solving !erformance !roblems or e-!loiting
!erformance o!!ortunities isKKKKKKKKKKKKK.
A. 7euristics
B. Satisficing
*. *reativit&
%. *ost-benefit-anal&sis
'. %iversit&
Ans: *
es!onse: "age 1$2
1=2. The three com!onent model of creativit& that the te-t defines as !ersonal creativit& drivers in
organi0ations is:
A. Task e-!ertise, task motivation, creativit& skills
B. Task e-!ertise, task com!letion, creativit& skills
*. *reativit& skills, goal oriented, task com!letion
%. *reativit& skills, task e-!ertise, goal oriented
Ans: A
es!onse: "age 1$$
2-#3
th
edition Test Bank
1=$. Situational creativit& drivers in organi0ations where !eo!le, management, and traditional
organi0ational environments all mi- include:
A. Brou! creativit& skills, management su!!ort, organi0ational culture
B. Brou! creativit& skills, management su!!ort, heuristics
*. Management su!!ort, organi0ational culture, goal orientation
%. Management su!!ort, organi0ational culture, task e-!ertise
'. Brou! creativit& skills, management su!!ort, task e-!ertise
Ans: A
es!onse: "age 1$$
%ifficult&: 'as&
1==. An& decision about to be made should meet the KKKKKKKKKK.
A. S!otlight Cuestions.
B. Bounded rationalit& limitations.
*. +ntellectual ca!ital reCuirements.
%. Brou! decision-making criteria.
'. *reativit& guidelines.
Ans: A
es!onse: "age 1$8
1=>. ;hich of the following statement does ?4T accuratel& describe an attribute or feature of ethical
decision makingD
A. The Hs!otlight CuestionsI should address the Cuestion: H7ow would + feel if m& famil& found
out about this decisionDI
B. The Hs!otlight CuestionsI should address the Cuestion: H7ow would + feel if this decision
were !ublished in the local news!a!erDI
*. The Hs!otlight CuestionsI should be done during ste! 3 of the decision-making !rocess.
%. An& discomfort in answering the Hs!otlight CuestionsI signifies that the decision ma& have
ethical shortcomings.
'. 4nl& maFor managerial decisions need to meet the criteria of the Hs!otlight Cuestions.I
Ans: '
es!onse: "age 1$8
2-#8
th
edition Test Bank
1>6. Managers can !roceed with confidence in im!lementing a decision solution when the decision
meets all of the following criteria 'L*'"T:
A. Gtilit&.
B. ights.
*. :ustice.
%. Su!!ort.
'. *aring.
Ans: %
es!onse: "age 1$8
2-##

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