Decision Making

This question bank verified by Studydeets
All Questions
Filter by:
Question 1
Free
Multiple Choice

 _____ is the process of identifying issues and making choices from alternative courses of action.

Choose correct answer/s
A

Problem solving

B

Environmental scanning

C

Decision making

D

Strategic positioning

Check answer
Question 2
Free
Multiple Choice

 Which of the following is the first step in rational decision making?

Choose correct answer/s
A

Identifying possible courses of action

B

Identifying the objectives

C

Defining a problem or opportunity

D

Computing the optimal decision

Check answer
Question 3
Free
Multiple Choice

 Which of the following is the last step in rational decision making?

Choose correct answer/s
A

Computing the optimal decision

B

Rating each course of action on each of the objectives

C

Weighing the objectives according to importance

D

Identifying possible courses of action

Check answer
Question 4
Free
Multiple Choice

 Mary, a team leader, found that a few of her team members' performance had been deteriorating. They had been coming late to work and had not been completing tasks on time. In order to improve her team's performance, Mary identified three options to deal with these underperformers: fire them, train them, or transfer them to another team. What is the next step Mary should pursue in rational decision making?

Choose correct answer/s
A

She should rate the options to see which one will improve her team's performance.

B

She should identify the objectives and goals of her decision related to the problem.

C

She should immediately fire all the underperformers to solve the problem.

D

She should understand the problem or opportunity that has to be dealt with.

Check answer
Question 5
Free
Multiple Choice

 Bounded rationality refers to

Choose correct answer/s
A

decisions being based on a certain starting point.

B

simple and straightforward rational decisions.

C

decisions made easily without any restrictions.

D

making decisions within a set of constraints.

Check answer
Question 6
Multiple Choice

 The act of choosing a solution that is good enough is called

Choose correct answer/s
A
framing.
B
reasoning.
C
satisficing.
D
discounting.
To unlock the question
Question 7
Multiple Choice

 Under conditions of _____ , individuals have information about objectives, priorities, and potential courses of action, but they do not have all the information about the possible outcomes for each course of action.

Choose correct answer/s
A
certainty
B
rationality
C
risk
D
unambiguity
To unlock the question
Question 8
Multiple Choice

 The factor that distinguishes conditions of risk from conditions of uncertainty is that in conditions of risk:

Choose correct answer/s
A
individuals have all of the information they need to make the best possible decision.
B
individuals have information about the potential courses of action.
C
individuals have the information to make optimal decisions that are clear and obvious.
D
individuals have information about the possible outcomes for each course of action.
To unlock the question
Question 9
Multiple Choice

 John, a top executive, is in a situation where he has to quickly decide between two projects that came in simultaneously from two major clients. Since his team is not big enough to complete both projects at a time, he cannot accept both. He has a hunch and just like that accepts one of the clients' projects without any considerations. This scenario is an example of

Choose correct answer/s
A
rational decision making.
B
bounded rationality.
C
intuitive decision making.
D
context-independent decisions.
To unlock the question
Question 10
Multiple Choice

 Rules of thumb or short-cuts that individuals use to save time when making complex decisions are known as

Choose correct answer/s
A
biases.
B
rationales.
C
intuitions.
D
heuristics.
To unlock the question
Question 11
Multiple Choice

 Peter is a senior manager in an organization that is currently laying off its employees. It is Peter's responsibility to convey this message to the laid-off employees. Harry is one among them with whom Peter had a conflict a year ago. Therefore, in an attempt to avoid any such conflicts again, Peter requested a human resources representative to convey the message instead. In this case, Peter used the _____ heuristic.

Choose correct answer/s
A
intuitive
B
availability
C
representativeness
D
adjustment
To unlock the question
Question 12
Multiple Choice

 Martin decided to hire Ann for the associate's position because she reminded him of a former associate who had excelled in the position. Martin has used which of the following heuristics?

Choose correct answer/s
A
Availability
B
Adjustment
C
Representativeness
D
Playfulness
To unlock the question
Question 13
Multiple Choice

 The team members were reluctant to try a new format with which they were unfamiliar; the old format had served them well for many years. Their decision to stick with the old format is an example of the _____ bias.

Choose correct answer/s
A
confirmation
B
framing
C
status quo
D
discounting
To unlock the question
Question 14
Multiple Choice

 When the research team presented alternatives in terms of a chance for losses, the board chose the risk-seeking alternative, but when the team presented the alternatives in terms of opportunities for gain in the following meeting, the board switched to the risk-averse alternative. The board had succumbed to the _____ bias.

Choose correct answer/s
A
framing
B
discounting
C
status quo
D
confirmation
To unlock the question
Question 15
Multiple Choice

 Vinita buys a stock assuming that she can make profit out of it. However, shortly thereafter the stock value drops and she loses money. Her financial planner thinks the stock value will drop further and advises her to sell the stock. However, the market value has dropped so much already that Vinita believes it is due to rebound; she doesn't want to sell at the lowest point and lose money. She holds onto the stock in hopes to regain her loss. Instead she loses more money. This phenomena is referred to as

Choose correct answer/s
A
intuitive decision making.
B
representativeness heuristic.
C
escalation of commitment.
D
rational decision making.
To unlock the question
Question 16
Multiple Choice

 Which of the following statements best describes the appropriateness framework?

Choose correct answer/s
A
The process that individuals use to save time when making complex decisions
B
The process by which individuals make choices based on a certain starting point
C
The process of making decisions based on societal norms or expectations
D
The process of identifying issues and making choices from alternative courses of action
To unlock the question
Question 17
Multiple Choice

 Tom negotiated with the customer and priced the customer's order at a special discount within the bounds of established rules and guidelines.Tom has made a(n)  _____ decision.

Choose correct answer/s
A
emotional
B
unstructured
C
intuitive
D
programmed
To unlock the question
Question 18
Multiple Choice

 Which of the following statements about nonprogrammed decisions is true?

Choose correct answer/s
A
These decisions generally do not require a higher-level employee to execute.
B
These decisions are made under conditions of certainty.
C
These decisions are made in response to novel, poorly defined, or unstructured situations.
D
These decisions are made in response to recurring organizational problems.
To unlock the question
Question 19
Multiple Choice

 A model of decision making that seeks to maximize economic or other outcomes using a rational choice process is known as the _____ model.

Choose correct answer/s
A
garbage can
B
political
C
classical
D
administrative
To unlock the question
Question 20
Multiple Choice

 Top management's decision on how to integrate a newly acquired firm is most likely a(n) _____ decision.

Choose correct answer/s
A
emotional
B
programmed
C
intuitive
D
nonprogrammed
To unlock the question