罗宾斯管理学第六章练习题

Chapter 6 –DecisionMaking: The Essence of the Manager’s Job

True/False Questions

A MANAGER’S DILEMMA

1、According to the pany pro “A Manager’s Dilemma,” Harley Davidson was mentioned as a major petitor to

Connondale Corporation、

False (easy)

2、The typ e of decision facing Mario Galasso in the featured box, “A Manager’s Dilemma,” can be described

as a nonprogrammed decision、

True (moderate)

THE DECISIONMAKING PROCESS

3、 A discrepancy between an existing and a desired state of affairs is an opportunity、

False (moderate)

4、The first step in the decisionmaking process is identifying a problem、

True (easy)

5、The final step in the decisionmaking process is implementing the chosen alternative、

False (moderate)

6、It is possible at the end of the decisionmaking process that you may be required to start the decision process

over again、

True (easy)

7、The price of a particular puter brand is a possible decision criterion、

True (moderate)

8、 A decision criterion defines what is relevant in a decision、

True (moderate)

9、The step in the decisionmaking process that involves choosing a best alternative is termed

implementation、

False (moderate)

THE MANAGER AS DECISION MAKER

10、Decisionmaking is synonymous with managing、

True (easy)

11、Managerial decisionmaking is assumed to be rational、

True (moderate)

12、One assumption of rationality is that we cannot know all of the alternatives、

False (difficult)

13、Accepting solutions that are "good enough" is termed satisfying、

False (easy)

14、Managers tend to operate under assumptions of bounded rationality、

True (moderate)

15、Managers regularly use their intuition in decisionmaking、

True (easy)

16、Rational analysis and intuitive decisionmaking are plementary、

True (moderate)

17、 A policy is an explicit statement that tells a manager what he or she ought or ought not to do、

False (moderate)

18、Programmed decisions tend to be repetitive and routine、

True (easy)

19、Rules and policies are basically the same、

False (moderate)

20、Nonprogrammed decisions are unique and nonrecurring、

True (moderate)

21、Most managerial decisions in the real world are fully nonprogrammed、

False (easy)

22、Organizational efficiency is facilitated by the use of programmed decisionmaking、

True (moderate)

23、The ideal situation for making decisions is low risk、

False (moderate)

24、Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates、

False (difficult)

25、An optimistic manager will follow a maximin approach、

False (moderate)

26、People who have a low tolerance for ambiguity and are rational in their way of thinking are said to have a

directive style、

True (moderate)

27、Decision makers with an analytic style have a much smaller tolerance for ambiguity than do directive

types、

False (moderate)

28、Individuals with a conceptual style tend to be very broad in their outlook and will look at many

alternatives、

True (moderate)

29、Behavioralstyle decision makers work well with others、

True (easy)

MANAGING WORKFORCE DIVERSITY

30、According to the boxed feature, “Managing Workforce Diversity,” diverse employees tend to make

decisions faster than a homogeneous group of employees、

False (moderate)

Multiple Choice

A MANAGER’S DILEMMA

31、According to the p any pro ” A Manager’s Dilemma”, which of the following best describes the type of

decision Mark Galasso is faced with in the introduction of his pany’s new dirt bike?

a.programmed decision

b.nonprogrammed (moderate)

c.universal

d.unethical

e.orthodox

32、All of the following are mentioned as major petitors of Connondale Corporation according to the pany pro

“A Manager’s Dilemma” EXCEPT:

a.Yamaha

b.Suzuki

c.Harley Davidson (easy)

d.Kawasaki

e.Honda

THE DECISIONMAKING PROCESS

33、Decisionmaking is (simplistically) typically described as which of the following?

a、 deciding what is correct

b、 putting preference on paper

c、 choosing among alternatives (moderate)

d、 processing information to pletion

e、 the end result of data collection

34、 A series of eight steps that begins with identifying a problem and decision criteria and allocating weights to

those criteria; moves to developing, analyzing, and selecting an alternative that can resolve the problem;

implements the alternative; and concludes with evaluating the decision's effectiveness is the ______________、

a、 decisionmaking process、 (easy)

b、 managerial process、

c、 maximin style、

d、 bounded rationality approach、

e、 legalistic opportunism process、

35、The first step in the decisionmaking process is which of the following?

a、 developing decision criteria

b、 allocating weights to the criteria

c、 analyzing alternatives

d、i dentifying a problem (moderate)

e、 implementing the decision's effectiveness

36、"A discrepancy between an existing and a desired state of affairs" describes which of the steps in the

decisionmaking process?

a、 criteria weight allocation

b、 analysis of alternatives

c、 problem identification (difficult)

d、 decision effectiveness evaluation

e、 decision criteria identification

37、Which of the following statements is true concerning problem identification?

a、P roblems are generally obvious、

b、 A symptom and a problem are basically the same、

c、W ell trained managers generally agree on what is considered a problem、

d、The problem must be such that it exerts some type of pressure for the manager to act、

(moderate)

e、T o be considered a problem, managers must be aware of the discrepancy but not have the resources

necessary to take action、

38、Which of the following must be present in order to initiate the decisionmaking process?

a、 plenty of time

b、p ressure to act (moderate)

c、 a lack of authority

d、 a lack of resources

e、 environmental certainty

39、Managers aren't likely to characterize something as a problem if they perceive ______________、

a、 they don't have authority to act、 (difficult)

b、 pressure to act、

c、 a discrepancy、

d、 they have sufficient resources、

e、 they have budgetary authority、

40、If a manager was purchasing a puter system, issues such as price and model are examples of which part of

the decisionmaking process?

a、 problem identification

b、 criteria weight allocation

c、 identifying decision criteria (difficult)

d、 evaluating decision effectiveness

e、 implementing the alternative

41、Which of the following is the step in the decisionmaking process that follows identifying a problem and

decision criteria?

a、 allocating weights to the criteria (moderate)

b、 analyzing the alternatives

c、 selecting the best alternative

d、 implementing the alternative

e、 evaluating the decision's effectiveness

42、In allocating weights to the decision criteria, which of the following is helpful to remember?

a、 All weights must be the same、

b、 The total of the weights should sum to 1、0、

c、 Every factor criterion considered, regardless of its importance, must receive some weighting、

d.Assign the most important criterion a score, and then assign weights against that standard、

(difficult)

e、 The most important and least important criteria should receive the inverse weighting standard、

43、In step six of the decisionmaking process, each alternative is evaluated by appraising it against the

______________、

a、 subjective goals of the decision maker、

b、c riteria、 (moderate)

c、 assessed values、

d、 implementation strategy、

e、 discrepancy status、

44、Selecting an alternative in the decisionmaking process is acplished by ______________、

a、 choosing the alternative with the highest score、 (easy)

b、 choosing the one you like best、

c、 selecting the alternative that has the lowest price、

d、 selecting the alternative that is the most reliabl

e、

e、 choosing the alternative you think your boss would prefer、

45、______________ includes conveying a decision to those affected and getting their mitment to it、

a、 Selecting an alternative

b、 Evaluation of decision effectiveness

c、 Implementation of the alternatives (moderate)

d、 Analyzing alternatives

e、 Developing alternatives

46、Which of the following is important in effectively implementing the chosen alternative in the

decisionmaking process?

a、 getting upper management support

b、 double checking your analysis for potential errors

c、 allowing those impacted by the oute to participate in the process (moderate)

d、 ignoring criticism concerning your chosen alternative

e、 implementing your chosen alternative quickly

47、Which of the following is the final step in the decisionmaking process?

a、 identifying the problem

b、e valuating the decision's effectiveness (easy)

c、 identifying decision criteria

d、 selecting an alternative that can resolve the problem

e、 allocating weights to alternatives、

48、Which of the following is important to remember in evaluating the effectiveness of the decisionmaking

process?

a、 Ignore criticism concerning the decisionmaking、

b、Y ou may have to start the whole decision process over、 (difficult)

c、 Restart the decisionmaking process if the decision is less than 50% effective、

d、 90% of problems with decisionmaking occur in the implementation step、

e、 Keep track of problems with the chosen alternative, but only change those issues that upper

management demand、

THE PERVASIVENESS OF DECISION MAKING

49、Decisionmaking is synonymous with ______________、

a、 managing、 (easy)

b、 leading、

c、 controlling、

d、 planning、

e、 organizing、

50、Which of the following is not a "planning" decision?

a、 What are the organization's longterm objectives?

b、 What strategies will best achieve those objectives?

c、 How many subordinates should I have report directly to me? (moderate)

d、 What should the organization's shortterm objectives be?

e、 How difficult should individual goals be?

51、Which of the following is not an "organizing" decision?

a、 What are the organization's longterm objectives? (moderate)

b、 How many employees should I have report directly to me?

c、 How should jobs be designed?

d、 How much centralization should there be in the organization?

e、 When should the organization implement a different structure?

52、Which of the following is not a "leading" decision?

a、 How do I handle employees who appear to be low in motivation?

b、 What is the most effective leadership style in a given situation?

c、 How will a specific change affect worker productivity?

d、 When is the right time to stimulate conflict?

e、 How should jobs be designed? (moderate)

53、Which of the following is not a "controlling" decision?

a、 What activities in the organization need to be controlled?

b、 How should those activities be controlled?

c、 When is a performance deviation significant?

d、W hen is the right time to stimulate conflict? (moderate)

e、 What type of management information system should the organization have?

THE MANAGER AS DECISION MAKER

54、Managers are assumed to be ______________; they make consistent, valuemaximizing choices within

specified constraints、

a、 rational (easy)

b、 leaders

c、 organized

d、 satisficers

e、 programmed

55、Rational managerial decisionmaking assumes that decisions are made in the best ______________

interests of the organization、

a、 economic (moderate)

b、 payoff

c、 statistical

d、 revenue

e、 budgetary

56、Which of the following is true about managerial rational decisionmaking?

a、 Most decisions managers face allow for rational decisionmaking、

b、M anagers can make rational decisions if provided the right set of assumptions、 (difficult)

c、 Rational decisionmaking is always possible if the goals are clear and straightforwar

d、

d、 Time pressure forces managers into rational decisionmaking、

e、 Rational decisionmaking is generally possible when the decision involves "things" but not people、

57、Which of the following is not a valid assumption about rationality?

a、 The problem is clear and unambiguous、

b、 A single welldefined goal is to be achieved、

c、 Preferences are clear、

d、 Preferences are constantly changing、 (difficult)

e、 No time or cost constraints exist、

58、In "bounded rationality," managers construct ______________ models that extract the essential features

from problems、

a、 multiple

b、 binding

c、 interactive

d、 simplified (difficult)

e、 past

59、Accordin g to the text, because managers can’t possibly analyze all information on all alternatives, managers

______________, rather than ______________、

a.maximize; satisfice

b.maximize; minimize

c.satisfice; minimize

d.satisfice; maximize (moderate)

60、The type of decisionmaking in which the solution is considered "good enough" is known as which of the

following?

a、 intuition

b、 rational

c、 maximizing

d、s atisficing (moderate)

e、 "gut feeling"

61、When a decisionmaker chooses an alternative under perfect rationality, she chooses a ______________

decision, while under bounded rationality she chooses a ______________ decision、

a、 minimizing; satisfying

b、 satisficing; maximizing

c、 maximizing; satisficing (difficult)

d、 maximizing; minimizing

e、 minimizing; maximizing

62、An increased mitment to a previous decision despite evidence that it may have been wrong is referred to as

_____________、

a.economies of mitment

b.escalation of mitment (moderate)

c.dimensional mitment

d.expansion of mitment

63、An unconscious process of making decisions on the basis of experience and accumulated judgment is

______________ decisionmaking、

a、 rational

b、i ntuitive (easy)

c、 bounded

d、 satisficing

e、 programmed

64、According to the text, all of the following are aspects of intuition EXCEPT:

a.experiencedbased decisions

b.affectinitiated decisions

c.cognitivebased decisions

d.values or ethicsbased decisions

e.programmed decisions (easy)

65、According to the text, _____________ are straightforward, familiar, and easily defined problems、

a.poorlystructured problems

b.wellstructured problems (moderate)

c.unique problems

d.nonprogrammed problems

e.programmed problems

66、Wellstructured problems align well with which type of decisionmaking?

a、programmed (moderate)

b、satisficing

c、i ntuition

d、"gut feeling"

e、"garbage can" approach

67、The most efficient way to handle wellstructured problems is through ______________ decisionmaking、

a、l inear

b、unique

c、f ocused

d、hitandmiss

e、p rogrammed (moderate)

68、______________ decisionmaking is relatively simple and tends to rely heavily on previous solutions、

a、N onprogrammed

b、Linear

c、S atisficing

d、Integrative

e、P rogrammed (moderate)

69、Programmed decisionmaking tends to rely on which of the following?

a、t he problem solver's ability to think on his/her feet

b、the development of a clear set of alternative solutions

c、p revious solutions (easy)

d、identification of the actual problem

e、a ccurate weighting of the decision criteria

70、 A ______________ is a series of interrelated sequential steps that a manager can use for responding to a

structured problem、

a、procedure (easy)

b、rule

c、p olicy

d、system

e、s olution

71、 A ______________ is an explicit statement that tells a manager what he or she ought or ought not to do、

a、p rocedure

b、policy

c、r ule (moderate)

d、solution

e、s ystem

72、 A ______________ provides guidelines to channel a manager's thinking in a specific direction、

a、s ystem

b、rule

c、s olution

d、policy (moderate)

e、p rocedure

73、Which of the following factors contrasts the difference between a policy and a rule?

a、 a policy establishes parameters (difficult)

b、 a rule establishes parameters

c、a policy is more explicit

d、 a rule is more ambiguous

e、a policy leaves little to interpretation

74、According to the text, a ______________ typically contains an ambiguous term that leaves interpretation up

to the decision maker、

a、s ystem

b、rule

c、s olution

d、policy (moderate)

e、p rocedure

75、 A business school's statement that it "strives for productive relationships with local organizations," is an

example of a ______________、

a、r ule、

b、policy、 (moderate)

c、p rocedure、

d、mitment、

e、c ontract、

76、Which of the following is a characteristic of poorlystructured problems?

a、T hey are typical、

b、They tend to be rehashed problems from the organization、

c、I nformation is straightforwar

d、

d、They tend to have inplete or ambiguous information、 (difficult)

e、T hey are fast breaking in nature、

77、When problems are ______________, managers must rely on ______________ in order to develop unique

solutions、

a.wellstructured; nonprogrammed decision making

b.wellstructured; pure intuition

c.poorlystructured; nonprogrammed decision making (moderate)

d.poorlystructured; programmed decision making

78、Which of the following terms is associated with nonprogrammed decisions?

a、 unique (moderate)

b、 recurring

c、 routine

d、 repetitive

e、 welldefined

79、Lowerlevel managers typically confront what type of decisionmaking?

b、 nonroutine

c、 programmed (moderate)

d、 nonprogrammed

e、 nonrepetitive

80、What type of decisionmaking facilitates organizational efficiency?

a、 nonprogrammed

b、 unique

c、 nonrepetitive

d、 nonroutine

e、 programmed (difficult)

81、Which of the following is an accurate statement concerning the impact of programmed decisions on

organizations?

a、 They maximize the need for managers to exercise discretion、

b、T hey decrease the need for highcost managerial talent、 (moderate)

c、 They increase the amount of judgment needed by managers、

d、 They decrease organizational efficiency、

e、 They are associated with Creative Operating Procedures、

82、______________ is a situation in which a manager can make accurate decisions because the oute of every

alternative is known、

a、 Certainty (easy)

b、 Risk

c、 Uncertainty

d、 Maximax

e、 Maximin

83、If an individual knows the price of three similar cars at different dealerships, he/she is operating under what

type of decisionmaking condition?

a、 risk

b、 uncertainty

c、 certainty (easy)

d、 factual

e、 unprogrammed

84、______________ is those conditions in which the decision maker is able to estimate the likelihood of

certain outes、

a、 Certainty

b、R isk (easy)

c、 Uncertainty

d、 Maximax

e、 Maximin

85、A retail clothing store manager who estimates how much to order for the current spring season based on last

spring's outes is operating under what kind of decisionmaking condition?

a、 seasonal

b、r isk (difficult)

c、 uncertainty

d、 certainty

e、 cyclical

86、______________ is a situation in which a decision maker has neither certainty nor reasonable probability

estimates available、

b、 Risk

c、 Uncertainty (easy)

d、 Maximax

e、 Maximin

87、A person at a horse racetrack who bets all of his/her money on the oddsbased longshot to "win" (rather than

"place" or "show") is making what kind of choice?

a、 maximax (moderate)

b、 maximin

c、 minimax

d、 minimin

88、Which of the following best describes “maximizing the minimum possible payoff?”

a、 maximax

b、m aximin (moderate)

c、 minimax

d、 minimin

89、An individual making a "maximin" type of choice has what type of psychological orientation concerning

uncertain decisionmaking?

a、 optimist

b、 realist

c、 pessimist (moderate)

d、 satisficer

e、 extremist

90、Which of the following would best describe the psychological orientation of an individual making a

“maximax” type of choice?

a、 optimist (moderate)

b、 realist

c、 pessimist

d、 satisficer

e、 extremist

91、According to the text, a manager who desires to mini mize his or her maximim “regret” will opt for a

______________ choice、

a、 maximax

b、 maximin

c、 minimax (moderate)

d、 minimin

92、All of the following are mentioned in the text as decisionmaking styles EXCEPT:

a.directive

b.egotistical (moderate)

c.analytic

d.conceptual

e.behavioral

93、Which of the following decisionmaking styles have low tolerance for ambiguity and are rational in their

way of thinking?

a.directive (moderate)

b.egotistical

c.analytic

d.conceptual

e.behavioral

94、A manager who "by tomorrow wants to know the most logical answer to the problem that will increase

profits for this month" has which of the following decisionmaking styles?

a、 analytic

b、d irective (difficult)

c、 conceptual

d、 behavioral

e、 empirical

95、The decisionmaking style that makes fast decisions and focuses on the short terms is referred to as the

______________ style、

a.directive (moderate)

b.egotistical

c.analytic

d.conceptual

e.behavioral

96、According to the text, which of the following decisionmaking styles often result in making decisions with

minimal information and assessing few alternatives?

a.directive (moderate)

b.egotistical

c.analytic

d.conceptual

e.behavioral

97、A(n) ____________type decision maker has much greater tolerance for ambiguity than do directive

types、

a、 conceptual

b、 behavioral

c、 empirical

d、a nalytic (moderate)

e、 spatial

98、According to the text, ______________ are best characterized as careful decision makers with the ability to

adapt or cope with unique situations、

a、 conceptual

b、 behavioral

c、 empirical

d、a nalytic (moderate)

e、 spatial

99、Which of the following is the decisionmaking style that would most likely look at as many alternatives as

possible and focus on the long run?

a、 analytical

b、 directive

c、 conceptual (moderate)

d、 behavioral

e、 spatial

100、Which of the following decisionmaking styles focus on the long run and are very good at finding creative solutions to problems?

a、 analytical

b、 directive

c、 conceptual (moderate)

d、 behavioral

e、 spatial

101、A manager who would decide what puter system to purchase for the department by holding a meeting and receiving feedback from his/her subordinates matches with which type of decisionmaking style?

a、a nalytical

b、behavioral (difficult)

c、c onceptual

d、directive

e、e mpirical

102、According to the text, ______________ style decision makers are concerned about the achievements of subordinates and are receptive to suggestions from others、

a、a nalytical

b、behavioral (difficult)

c、c onceptual

d、directive

e、e mpirical

103、_____________ style decision makers often use meetings to municate, although they try to avoid conflict、

a、A nalytical

b、Behavioral (difficult)

c、C onceptual

d、Directive

e、E mpirical

MANAGING WORKFORCE DIVERSITY

104、Which of the following is NOT men tioned in the featured box “Managing Workforce Diversity” as a valuable reason manager’s should use diverse employees in the decision making process?

a.Diverse employees can provide fresh perspectives on issues、

b.Diverse employees can offer differing interpretations on how a problem is defined、

c.Diverse employees tend to make decisions faster than a homogeneous group of employees、

(difficult)

d.Diverse employees usually are more creative in generating alternatives、

e.Diverse employees usually are more flexible in resolving issues、

105、All of the following are mentioned in the featured box “Managing Workforce Diversity” as drawbacks to using diversity in decision making EXCEPT:

a. a lack of a mon perspective among team members、

https://www.360docs.net/doc/8414684080.html,nguage barrier among team members、

c.seeking out diverse opinions can make the decisionmaking process overly simple、 (difficult)

d.difficulty to reach a single agreement or to agree on specific actions、

Scenarios

THE DECISIONMAKING PROCESS

Decisions, Decisions (Scenario)

Sondra needed help、Her insurance pany's rapid growth was necessitating making some changes, but what changes? Should they add to the existing system? Buy a new system? She was given the responsibility of analyzing the pany's information system and deciding what the pany should do that would give them plenty of room、 She was confused and needed help in making the correct decision、

106、According to the decisionmaking process, the first step Sondra should take would be to ______________、

a、 analyze alternative solutions、

b、 identify decision criteria、

c、 evaluate her decision's effectiveness、

d、 implement the chosen alternativ

e、

e、 identify the problem、 (moderate)

107、According to the decisionmaking process, the second step Sondra should take would be to ______________、

a、 analyze alternative solutions、

b、i dentify decision criteria、 (moderate)

c、 evaluate her decision's effectiveness、

d、 allocate weights to the criteria、

e、 identify the problem、

108、The very last step Sondra should take, according to the decisionmaking process, would be to ______________、

a、 analyze alternative solutions、

b、 select alternatives、

c、 implement the alternative、

d、 identify the problem、

e、 evaluate the decision's effectiveness、 (easy)

109、When Sondra is conveying her decision to those affected and getting their mitment to it, she is performing which step in the decisionmaking process?

a、 analyzing alternative solutions

b、 selecting alternatives

c、 implementing the alternative (moderate)

d、 identifying the problem

e、 evaluating the decision's effectiveness

110、Allocating weights to the criteria is the step in the decisionmaking process that occurs between identifying the decision criteria and ______________、

a、 developing the alternatives、 (difficult)

b、 selecting alternatives、

c、 implementing the alternative、

d、 identifying the problem、

e、 evaluating the decision's effectiveness、

THE MANAGER AS DECISION MAKER

Is the Picture Clear? (Scenario)

Sharon was the regional manager of a large cable television pany、Daily, she faced many problems and decisions such as how to price each market, who to hire, what kind of technology she should purchase and how she should handle increasing customer plaints、 She needed some help sorting these issues out、

111、You could tell Sharon that issues, which are straightforward, where the problem is familiar and easily defined, such as how to handle late payment by customers or customers wanting to receive refunds, are known as ______________ problems、

a、 routine

b、 standard

c、 wellstructured (moderate)

d、 conventional

e、 plex

112、Unfortunately, Sharon also faces issues that have information that is ambiguous or inplete, such as what kind of technology to purchase、 These are known as ______________ problems、

a、 poorlystructured (moderate)

b、 variable

c、 random

d、 hitandmiss

e、 vague

113、When a customer calls up and wants a refund for a partial month's usage of cable, the fact that such situations are routine and most likely have a standard response, would make the response a ______________ decision、

a、 standard

b、 routine

c、 policy

d、 fundamental

e、 programmed (moderate)

114、Sometimes Sharon follows a ______________,a series of interrelated sequential steps for responding to a structured problem、

a、 rule

b、 policy

c、 procedure (moderate)

d、 suggestion

e、 order

115、Sometimes Sharon instructs her local managers to follow ______________ when confronted with problem situations、 These establish parameters for the manager making the decision rather than specifically stating what should or should not be done、

a、 rules

b、 procedures

c、 policies (moderate)

d、 orders

e、 suggestions

DecisionMaking Conditions (Scenario)

Sandy Jo is the manager for TrucksRUs, a mediumsized hauling service located in the Southeast、She is responsible for scheduling trucks, initiating new routes, and staffing both existing and new routes、She is currently struggling with existing information about the profitability of existing and future truck routes、

116、Bubba, Sandy Jo's best driver tells her that he believes that he can estimate that there is a 75% probability that they can get the business of Pork Brothers Inc、if they initiate a truck route through rural North Carolina、 Bubba is operating under a condition of ______________、

a、 certainty、

b、r isk、 (difficult)

c、 uncertainty、

d、 maximax、

e、 maximin、

117、Sandy Jo can make accurate decisions if she is willing to pay $5,000 for research about the profitability of various truck routes、 If she pays for the research, she believes that she is operating under a condition of ______________、

a、 certainty、 (difficult)

b、 risk、

c、 uncertainty、

d、 maximax、

e、 maximin、

118、Sandy Jo knows that she is operating in an uncertain environment、 She is basically an optimist, and we would, therefore, expect her to follow a ______________ strategy、

a、 certainty

b、 risk

c、 uncertainty

d、m aximax (moderate)

e、 maximin

119、Sandy Jo knows that she is operating in an uncertain environment、 She is basically a pessimist, and we would, therefore, expect her to follow a ______________ strategy、

a、 certainty

b、 risk

c、 minimax

d、 maximax

e、 maximin (moderate)

120、Sandy Jo wishes to minimize her regret and will probably opt for a ______________ strategy、

a、 certainty、

b、 risk、

c、 minimax (moderate)

d、 maximax、

e、 maximin、

Essay Questions

THE DECISIONMAKING PROCESS

121、In a short essay, list and discuss the eight steps in the decisionmaking process、

Answer

a.Step 1: Identifying a problem – the decisionmaking process begins with the existence of a problem or a

discrepancy between an existing and a desired state of affairs、However, a discrepancy without pressure to take action bees a problem that can be postponed、

b.Step 2: Identify decision criteria – once the manager has identified a problem that needs attention, the

decision criteria important to resolving the problem must be identified、That is, managers must determine what’s relevant in making a decision、

c.Step 3: Allocating weights to the criteria: at this step, the decision maker must weigh the items in

order to give them the correct priority in the decision、 A simple approach is to give the most important criterion a weight of 10 and then assign weights to the rest against that standard、

d.Step 4: Developing alternatives –the fourth step requires the decision maker to list the viable

alternatives that could resolve the problem、 No attempt is made in this step to evaluate the alternative, only to list them、

e.Step 5: Analyzing alternatives – once the alternatives have been identified, the decision maker must

critically analyze each one、 From this parison, the strengths and weaknesses of each alternative bee evident、

f.Step 6: Selecting an alternative – the sixth step is the important act of choosing the best alternative from

among those considered、All the pertinent criteria in the decision have now been determined, weighted, and the alternatives have been identified and analyzed、

g.Step 7: Implementing the alternative –implementation involves conveying the decision to those

affected by it and getting their mitment to it、 If the people who must carry out a decision participate in the process, they’re more likely to enthusiastically support the oute than if they are just told what to do、

h.Step 8: Evaluating decision effectiveness –the last step in the decisionmaking process involves

appraising the oute of the decision to see if the problem has been resolved、 Did the alternative chose and implemented acplish the desired result? If not, the manager may consider returning to a previous step or may even consider starting the whole decision process over、

(difficult)

THE PERVASIVENESS OF DECISION MAKING

122、In a short essay, list three related questions that can apply to decisions for each of the following management functions: planning, organizing, leading, and control、 (Each of the management functions should each have at least three questions listed、)

Answer

Planning

a.What are the organization’s longterm objectives?

b.What strategies will best achieve those objectives?

c.What should the organiza tion’s shortterm objectives be?

d.How difficult should individual goals be?

Organizing

a.How many employees should I have reporting directly to me?

b.How much centralization should there be in the organization?

c.How should jobs be designed?

d.When should the organization implement a different structure?

Leading

a.How do I handle employees who appear to be low in motivation?

b.What is the most effective leadership style in a given situation?

c.How will a specific change affect worker productivity?

d.When is the right time to stimulate conflict?

Controlling

a.What activities in the organization need to be controlled?

b.How should those activities be controlled?

c.When is a performance deviation significant?

d.What type of management information systems should the organization have?

(difficult)

THE MANAGER AS DECISION MAKER

123、In a short essay, discuss the assumptions of rationality and the validity of those assumptions、Answer

A decision maker who was perfectly rational would be fully objective and logical、He or she would

carefully define a problem and would have a clear and specific goal、 Moreover, making decisions using rationality would consistently lead toward selecting the alternative that maximizes the likelihood of achieving that goal、 The assumptions of rationality apply to any decision、 Rational managerial decision making assumes that decisions are made in the best economic interests of the organization、 That is, the decision maker is assumed to be maximizing the organization’s interests, not his or her own interes ts、Managerial decision making can follow rational assumptions if the following conditions are met: The manager is faced with a simple problem in which the goals are clear and the alternatives limited, in which the time pressures are minimal and the cost of seeking out and evaluating alternatives is low, for which the organizational culture supports innovation and risk taking, and in which outes are relatively concrete and measurable、However, most decisions that managers face in the real world don’t mee t all those tests、(moderate)

124、In a short essay, discuss bounded rationality and satisficing、

Answer

Despite the limits to perfect rationality, managers are expected to follow a rational process when making decisions、 However, certain aspects of the decision making process are not realistic as managers make decisions、Instead, managers tend to operate under assumptions of bounded rationality, that is, they behave rationally within the parameters of a simplified decision making process that is limited by an individual’s ability to process information、Managers satisfice, rather than maximize because they can’t possibly analyze all information on all alternatives、That is, they accept solutions that are “good enough、” They are being rational within the limits of their information processing ability、

(easy)

125、In a short essay, list and discuss five different aspects of intuition、

Answer

a.experiencedbased decisions – managers make decisions based on their past experiences

b.affectinitiated decisions – managers make decisions based on feelings and emotions

c.cognitivebased decisions – managers make decisions based on skill, knowledge, and training

d.subconscious mental processing – managers use data from the subconscious mind to help them make

decisions、

e.values or ethicsbased decisions – managers make decisions based on ethical values or culture

(moderate)

126、In a short essay, discuss the difference between wellstructured and poorly structured problems、Include specific examples of each type of problem to support your answer、Next discuss the type of decisions that would be used to address each of these problems、

Answer

a.Wellstructured problems the goal of the decision marker is clear, the problem is familiar, and

information about the problem is easily defined and plete、Examples of these types of problems might include a customer’s wanting to return a purchase to a retail store, a supplier’s being late with an important delivery, a news team’s responding to an unexpected and fastbreaking event, or a college’s handling of a student wanting to drop a class、Such situations are called wellstructured problems since they are straightforward, familiar, and easily defined problems、In handling these problem situations, the manager uses a programmed decision、 Decisions are programmed to the extent that they are repetitive and routine and to the extent that a definite approach has been worked out for handling them、Because the problem is well structured, the manager doesn’t have to go to the trouble and expense of going through an involved decision progress、Programmed decision making is relatively simple and tends to rely heavily on previous solutions、

b.Poorlystructured problems –these problems are new or unusual and for which information is

ambiguous or inplete、For example, the selection of an architect to design a new corporate manufacturing facility in Bangkok is an example of a poorlystructured problem、 When problems are poorlystructured, managers must rely on nonproprammed decision making in order to develop unique solutions、 Nonprogrammed decisions are unique and nonrecurring、 When a manager confronts a poorlystructured problem, or one that is unique, there is no cutanddried solution、It requires a custommade response through nonprogrammed decision making、

(difficult)

127、In a short essay, discuss the differences between a procedure, a rule, and a policy、 Include specific examples of each to support your answer、

Answer

a. A procedure is a series of interrelated sequential steps that a manager can use for responding to a

structured problem、 The only real difficulty is in identifying the problem、Once the problem is clear, so is the procedure、For instance, a purchasing manager receives a request from the sales department for 15 Palm Pilots for use by the pany’s customer service representatives、The purchasing manager knows that there is a definite procedure for handling this decision、The decisionmaking process in this case is merely executing a simple series of sequential steps、

b. A rule is an explicit statement that tells a manager what he or she can or cannot do、Managers

frequently use rules when they confront a wellstructured problem because they are simple to follow and ensure consistency、 For example, rules about lateness and absenteeism permit supervisors to make disciplinary decisions rapidly and with a relatively high degree of fairness、

c. A policy provides guidelines to channel a manager’s thinking in a specific direction、 In contrast to a

rule, a policy establishes parameters for the decision maker rather than specifically stating what should or should not be done、 Policies typically contain an ambiguous term that leaves interpretation up to the decision maker、For instance, each of the following is a policy statement: “The custome r always es first and should always be satisfied,” “We promote from within, whenever possible,” and “employee wages shall be petitive within munity standards、”

(moderate)

128、In a short essay, list and discuss the three conditions that managers may face as they make decisions、Include specific examples of each condition to support your answer、

Answer

a.Certainty – the ideal situation for making decisions is one of certainty; that is, a situation in which a

manager can make accurate decisions because the oute of every alternative is known、 For example, when North Dakota’s state treasurer is deciding in which bank to deposit excess state funds, he knows exactly how much interest is being offered by each bank and will be earned on the funds、He is certain about the outes of each alternative、As might be expected, this condition isn’t characteristic of most managerial decision situations、It’s more idealistic than realistic、

b.Risk – a far more mon situation is one of risk, those conditions in which the decision maker is able to

estimate the likelihood of certain alternatives or outes、 The ability to assign probabilities to outes may be the result of personal experiences or secondary information、 Under the conditions of risk, managers have historical data that allow them to assign probabilities to different alternatives、

c.Uncertainty –occurs when certainty about the outes or reasonable probability estimates are unable to be

made about a decision、 Under conditions of uncertainty, the choice of alternative is influenced by the limited amount of information available to the decision maker、

(easy)

129、In a short essay, discuss the psychological orientation (optimistic, pessimist, etc、) of the decision maker as it relates to decision making under conditions of uncertainty (minimax, maximin, and maximax)、Answer

Based on the psychological orientation of the decision maker, the optimistic manager will follow a maximax choice (maximizing the maximum possible payoff), while the pessimist will follow a maximin choice (maximizing the minimum possible payoff)、The manager who desires to minimize his or her maximum “regret” will opt for a minimax choice、

(moderate)

130、In a short essay, list and discuss the four decisionmaking styles as described in the text、Answer

a.Directive style – people using the directive style have low tolerance for ambiguity and are rational in

their way of thinking、They’re efficient and logical、 Directive types make fast decisions and focus on the short run、Their efficiency and speed in making decisions often result in their making decisions with minimal information and assessing few alternatives、

b.Analytic style – decisionmakers with an analytic style have much greater tolerance for ambiguity than

do directive types、They want more information before making a decision and consider more alternatives than a directive style decisionmaker does、Analytic decisionmakers are best characterized as careful decisionmakers with the ability to adapt or cope with unique situations、

c.Conceptual style – individuals with a conceptual style tend to be very broad in their outlook and will

look at many alternatives、 They focus on the long run and are very good at finding creative solutions to problems、

d.Behavioral style –these decision markers work well with others、They’re concerned about the

achievements of subordinates and are receptive to suggestions from others、 They often use meetings to municate, although they try to avoid conflict、Acceptance by others is important to this decisionmaking style、

(moderate)