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The sales department at a local company determines that Product A will moderately boost sales and have a shorter production schedule, so it is decided that this product will be manufactured and sold without considering other options.In choosing this product, the sales department is


A) controlling.
B) engaged in bounded rationality.
C) suboptimizing.
D) satisficing.
E) using procedures and rules of thumb.

F) B) and E)
G) D) and E)

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The rational decision-making approach assumes decision makers


A) have complete information.
B) are objective.
C) are systematic in their approach to decisions.
D) work in an organization that encourages logical choices.
E) all of these

F) B) and D)
G) All of the above

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Post-decision ____________________ refers to the doubt, tension, or regret that often follows making a decision when more than one alternative was attractive.

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Which of the following is true about brainstorming?


A) the number of ideas should be limited
B) ideas should be criticized and judged quickly
C) ideas should not be written down
D) implausible ideas should not be suggested
E) none of these

F) D) and E)
G) A) and B)

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The rational decision-making process assumes that managers follow an unsystematic, random process when evaluating alternatives.

A) True
B) False

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One important method for enhancing creativity is to make it a part of the organization's ____.


A) standard operating procedures.
B) decision-making processes.
C) culture.
D) strategic plans.
E) none of the above.

F) A) and D)
G) B) and D)

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Nonprogrammed decisions are most common at what level of the organization?


A) Lower
B) Top
C) Managerial
D) Subordinate
E) Middle

F) B) and C)
G) A) and D)

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An illusion of invulnerability and stereotyped views of "enemy" leaders are symptoms of groupthink.

A) True
B) False

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The practical approach combines elements of both the rational and behavioral approaches.

A) True
B) False

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Susan's recent decision about which company her conglomerate should buy was a programmed decision.

A) True
B) False

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Compare and contrast the classifications of programmed and nonprogrammed decisions.Give an example of each type of decision.

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​Match each of the following situations with the concept it most clearly illustrates. -escalation of commitment


A) Hugh needs to buy a new laptop.He searches online until he finds the first laptop that fits his price and performance needs, then he immediately buys it.
B) In a hand of poker, Kevin makes a bid and Julie calls.Later, Kevin makes a higher bid, and Julie calls again.At the end of the hand, when Julie goes all in, Kevin's almost certain she has the better cards.However, because he's already invested so much in the hand, Kevin feels obliged to call.
C) On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly.Still, something about the guy seems "off" to Nina, and though she can't put her finger on what it is, she hires someone else.
D) Simone knows that the laptop she's about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online.However, she desperately needs a laptop immediately, so goes ahead with the purchase.

E) B) and D)
F) A) and D)

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According to the rational decision-making approach, evaluate the alternatives


A) puts the decision into action.
B) involves assessing all possible alternatives.
C) involves selecting an alternative with the highest payoff.
D) is the most crucial step.
E) diagnoses the problem.

F) A) and D)
G) B) and C)

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Managers who are cautious and try to adhere to the rational decision-making model


A) are more likely to make mistakes.
B) frequently make decisions that lead to big losses.
C) have a lower risk propensity than other managers.
D) frequently make decisions that lead to big successes.
E) suffer from bounded rationality.

F) B) and E)
G) B) and D)

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The rational decision-making process begins with the identification of a problem.

A) True
B) False

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Which of the following statements about brainstorming is FALSE?


A) It's used in the idea generation phase of decision making.
B) Members present ideas and clarify them.
C) Ideas are recorded in secret.
D) Ideas are recorded on a flip chart.
E) It does not provide resolution to the problem.

F) D) and E)
G) None of the above

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One of the strengths of the ___________________________________ to decision-making is that is forces the decision maker to consider a decision in a logical, sequential manner, and the in-depth analysis of alternatives enables the decision maker to choose on the basis of information rather than emotion or social pressure.

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Decisions that recur infrequently and have no decision rules are ____ decisions.


A) certain
B) risk
C) programmed
D) nonprogrammed
E) uncertain

F) C) and D)
G) A) and D)

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In problem-solving tasks, groups usually develop more and better solutions than do individuals.

A) True
B) False

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When groupthink occurs,silence is viewed as agreement.This most directly contributes to the


A) shared illusion of invulnerability.
B) shared illusion of unanimity.
C) stereotyped views of "enemy" leaders.
D) unquestioned belief in the group's inherent morality.
E) collective efforts to rationalize or dismiss warnings.

F) C) and E)
G) A) and B)

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