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Exam 12: Decision Making Processes

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Question 1

Multiple Choice

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The first four steps of the rational approach to decision making are specifically designed to help a manager:

A) follow the scientific method.
B) devise a problem solution.
C) evaluate alternative solutions.
D) identify the problem.

E) B) and C)
F) None of the above

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Question 2

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A small university department was comprised of six male faculty members. During faculty meetings when the department was faced with a difficult decision, a faculty member would suggest they take a break. During the break, four faculty would adjourn to the coffee room and agree on the decision that would be made. This is an example of:

A) bounded rationality.
B) intuitive decision making.
C) a coalition.
D) crisis decision making.

E) All of the above
F) C) and D)

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C

Question 3

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Only by making mistakes can managers and organizations go through the process of ____ and acquire sufficient experience and knowledge to perform more effectively in the future.

Management knowledge refers to understanding and agreement about how to solve problems and reach organizational goals.

The garbage can model shows:

The point of the rational approach is that managers use systematic procedures to arrive at good decisions.

If organized anarchy existed in the decision environment of a company in the high tech industry, would your goal as a decision maker be to remove that organized anarchy, or to work with it? Explain. How could decisions at that company best be analyzed? How would managers go about using the model to improve decision processes?

Which step in the rational approach immediately follows developing alternative solutions?

When eighteenth-century politician and diplomat Benjamin Franklin was faced with a difficult problem, he would divide a sheet of paper into two columns labeled "Pro" and "Con" and write down various reasons for or against a particular decision. Over several days Franklin would narrow down the list based on a system of weighing the value of each pro or con until he reached a determination of the best decision. Franklin's approach can best be described as a _____ approach.

____ means organizations accept a satisfactory rather than a maximum level of performance, enabling them to achieve several goals simultaneously.

Management science is an excellent device for organizational decision making when problems are analyzable and when the variables can be identified and measured.

During the "specify decision objectives" step of the rational approach, the manager determines what performance outcomes should be achieved by a decision.

Management science, although cumbersome, cannot produce failures in decision making.

The Carnegie model and the incremental model disagree with each other on how decisions are made--the former claiming that they are made through a political process and the latter claiming that they emerge over time following careful objective analysis.

In intuitive decision making, experience and judgment rather than sequential logic or explicit reasoning are used to make decisions.

What is a decision interrupt? Give at least two examples from your own experience.

High-velocity environments call for decision makers to depend heavily on one or two savvy, trusted colleagues as counselors, even though everyone is ultimately involved in the decision.

Intuition is arbitrary and irrational.

_____ refers to the tendency of people in groups to suppress contrary opinions.

Many nonprogrammed decisions involve strategic planning because uncertainty is great and decisions are complex.