Organizational Structure

Question 1

A _____ is a choice made from available alternatives.

Answer 1

decision

Question 2

According to Kahneman, System 1 thinking is _____.

Answer 2

intuitive and largely unconscious

Question 3

List the steps of the rational model of decision making in the correct order, with the first step listed at the top and the last step listed at the bottom.

Answer 3

1. Identify the problem/opportunity
2. Think of alternative solutions
3. Evaluate alternatives and select a solution
4. Implement and evaluate the solution chosen

Question 4

Select all that apply

Which of the following function as the first stage in rational decision making by managers?

Answer 4

customer complaints

poor product quality

sales shortfalls

Question 5

Select all that apply

Which of the following are true regarding the second stage in the rational model of decision making?

Answer 5

Creativity precedes innovation and has been described as the source of all intellectual property.

Once you have identified a problem or an opportunity and diagnosed its causes, you need to come up with both obvious and creative alternative solutions.

Question 6

Which of the following is an accurate description of decision making?

Answer 6

the process of identifying and choosing alternative courses of action

Question 7

What is the third stage of the rational model of decision making?

Answer 7

Evaluate alternatives and select a solution

Question 8

Select all that apply

According to Kahneman, which of the following characteristics describe System 2 thinking?

Answer 8

Deliberate, analytical, conscious

Question 9

In the fourth stage of rational decision making, managers will _____.

Answer 9

implement and evaluate the chosen solution

Question 10

Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization’s best interests?

Answer 10

the rational model

Question 11

Select all that apply

Which of these assumptions are made in the rational model of decision making?

Answer 11

Managers will always select the course of action that they know will most benefit the organization.

Managers have complete, error-free information about alternative courses of action and their consequences.

Managers are able to make logical decisions without prejudice or emotional blind spots.

Question 12

The first stage in the rational decision-making process involves _____.

Answer 12

identifying the problem

Question 13

Which models are characteristic nonrational models of decision making?

Answer 13

Models that describe how managers actually make decisions rather than how they should

Question 14

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?

Answer 14

Employees with ideas

Question 15

The concept that suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time and money, and their cognitive capacity, values, skills, habits, and unconscious reflexes, is known as ______________ rationality.

Answer 15

bounded

Question 16

Select all that apply

Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?

Answer 16

Is it ethical?

Is it feasible?

Is it ultimately effective?

Question 17

Which model of decision making emphasizes choosing the first solution that meets the criteria rather than the optimal choice?

Answer 17

satisficing

Question 18

Select all that apply

Successful implementation of major decisions requires which of the following?

Answer 18

Careful planning and sensitivity to those affected by the decision

Question 19

“Going with your gut,” or _____, is making a choice without the use of conscious thought or logical inference.

Answer 19

intuition

Question 20

The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them.

Answer 20

prescriptive

Question 21

Select all that apply

Which of these are reasons for chief executive officers (CEOs) getting increasingly ousted for ethical violations in the 21st century?

Answer 21

Globalization allows businesses to operate in regions where ethical risks are greater.

The 24/7 news cycle places more scrutiny on unethical behavior.

Digital communications are more susceptible to hackers and whistleblowers.

Question 22

Satisficing and intuition are two ____________ models of decision making.

Answer 22

nonrational

Question 23

A graph of decisions and their possible consequences used to create a plan is known as a(n) ______.

Answer 23

decision tree

Question 24

Simon believed that managers can never act truly logically because of their __________.

Answer 24

bounded rationality

Question 25

Evidence-based management attempts to introduce which factor into the decision-making process?

Answer 25

rationality

Question 26

"Close enough is good enough" best characterizes which model of decision making?

Answer 26

satisficing

Question 27

Making a choice without the use of conscious thought or logical inference is known as using \_\_\_.

Answer 27

intuition

Question 28

# Select all that apply Which of these are examples of business analytics?

Answer 28

Time-series forecast Portfolio analysis

Question 29

# True or False CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.

Answer 29

True

Question 29

# True or False CEOs are at a higher risk of being fired for ethical violations than ever before because the public has become less forgiving of unethical behavior.

Answer 29

True

Question 30

Constance Bagley's decision tree is specifically designed for use when \_\_\_\_\_.

Answer 30

making ethical choices

Question 31

A data-mining technique used to predict future behavior and anticipate the consequences of change is known as _____ modeling.

Answer 31

predictive

Question 32

Evidence-based decision relies on \_\_\_\_\_\_.

Answer 32

observations about what actually works

Question 33

# Select all that apply Which of the following are examples of Big Data?

Answer 33

surveillance data social network communications data in corporate databases web browsing data trails

Question 34

A person's decision-making style is a combination of how a person perceives something as well as \_\_\_\_\_.

Answer 34

how they respond to it

Question 35

Sophisticated forms of business data analysis are known as business \_\_\_\_\_\_\_\_\_.

Answer 35

analytics

Question 36

Value orientation reflects the extent to which an individual focuses on which of the following dimensions?

Question 37

People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task-oriented. They are efficient, logical, and practical in their approach to solving problems and making decisions. Which style do they use?

Answer 37

directive

Question 38

# True or False Predictive modeling is a groupthink technique.

Answer 38

False

Question 39

# Select all that apply Analytical decision makers:

Answer 39

take time to make decisions may overanalyze a situation

Question 40

Stores of data that are so large or complex that it is difficult to process them using traditional database management applications are known as \_\_\_\_\_.

Answer 40

Big Data

Question 41

# Select all that apply Decision-making styles vary along which two dimensions?

Answer 41

Tolerance for ambiguity Value orientation

Question 42

# Select all that apply People with a conceptual decision-making style are likely to do which of the following?

Answer 42

Rely on intuition, find creative solutions, and take risks

Question 43

\_\_\_\_\_\_\_\_\_\_\_\_\_ reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions.

Answer 43

value orientation

Question 44

# Select all that apply People with a behavioral decision making style are more likely to:

Answer 44

have a hard time saying no and avoid conflict

Question 45

People with a(n) _______ decision-making style have a low tolerance for ambiguity and are task oriented. They are efficient, logical, and practical in their approach to solving problems and making decision. Which style do they use?

Answer 45

directive

Question 46

# Select all that apply Which of these describe how knowledge of decision-making styles affects managers' work?

Answer 46

It gives managers an understanding of how different people reach different conclusions. It allows managers to better identify personal strengths and weaknesses.

Question 47

Which one of the following best describes the decisions made by a person with an analytical style?

Answer 47

Carefully considers lots of information and alternatives.

Question 48

\_\_\_\_\_\_ are strategies such as "rules of thumb" that simplify decision-making.

Answer 48

heuristics

Question 49

In the ______ bias, managers use information readily available from memory to make judgments.

Answer 49

availability

Question 50

Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks?

Answer 50

conceptual

Question 51

Which decision-making style is the most people-oriented of the four styles?

Answer 51

behavioral

Question 52

The _____ bias reflects our tendency to generalize from a small sample or single event.

Answer 52

representativeness

Question 53

Knowledge of decision-making styles can assist managers in many ways **except** for which one of the following?

Answer 53

It increases the biases of the managers toward their favorite style.

Question 54

Heuristics are strategies that ______ the process of making decisions.

Answer 54

simplify

Question 55

"Don't tell me the truth; just tell me what I want to hear" is an example of the _______ bias.

Answer 55

confirmation

Question 56

# True or False The availability bias means that your manager may give more weight to your most recent work rather than everything you have done over the course of year.

Answer 56

True

Question 57

Apex Enterprises spent a large amount of money to customize a pumping system it bought many years ago. A supplier is now offering a new pumping system that will save the company money in the long term. However, Apex decides to keep the older system because it has already spent so much money on the older system. What type of bias is this an example of?

Answer 57

sunk-cost

Question 58

A manager that hires all applicants that have graduated from a certain college because a particularly good employee came from that same college is an example of \_\_\_\_\_.

Answer 58

representativeness bias

Question 59

Sam gave employees a 5% raise last year and expects to give the same percentage raise this year, even though it will push his company's salaries above what is normally paid in the industry. This is an example of the _____ bias.

Answer 59

anchoring and adjustment

Question 60

The _____ bias occurs when people seek data to support their point of view and disregard information that does not support it.

Answer 60

confirmation

Question 61

You fall prey to the overconfidence bias when you ______ your knowledge or expertise in a decision situation.

Answer 61

overestimate

Question 62

In the ______ bias, managers use information readily available from memory to make judgments.

Answer 62

availability

Question 63

Which of these is another term for hindsight bias?

Answer 63

the “I knew it all along” effect

Question 64

The ______ bias is demonstrated when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

Answer 64

sunk cost

Question 65

The tendency of decision makers to be influenced by the way a situation or problem is presented to them is referred to as the ___ bias.

Answer 65

framing

Question 66

Samantha had never traveled to New York City before, but she had been on a recent business trip to Houston. When she learned that the hotel room she wanted in New York City cost $300 per night, she was shocked, because she thought the hotel rooms would be priced similarly to those in Houston. This is an example of the _____ bias.

Answer 66

anchoring and adjustment

Question 67

Artificial intelligence aids human decision making by exhibiting superior performance in which of the following activities?

Answer 67

Building and analyzing models and simulations to make predictions

Question 68

# True or False Overconfidence bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them.

Answer 68

False

Question 69

# Select all that apply Which of these are areas in which experts believe AI can be applied to decision making?

Answer 69

assisted intelligence, augmented intelligence, and autonomous intelligence

Question 70

The tendency of people to view events as being more predictable than they really are is referred to as ___ bias.

Answer 70

hindsight

Question 71

Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect?

Answer 71

economic growth will double

Question 72

Bob was unsure how his boss was going to react to his proposal, so he was careful to put an upbeat "spin" on the situation to emphasize the positive aspects rather than the negative aspects. Bob's method of presenting the situation demonstrates the ___ bias.

Answer 72

framing

Question 73

In what way is artificial intelligence expected to make business and personal data safer?

Answer 73

By monitoring and deflecting the activities of hackers

Question 74

What type of bias refers to the tendency to make decisions based on an initial figure that may or may not be in line with market realities?

Answer 74

anchoring and adjustment

Question 75

Which of the following is an **advantage** of group decision making?

Answer 75

intellectual stimulation

Question 76

Artificial intelligence lacks which key feature of human intelligence?

Answer 76

common sense

Question 77

When rivals are focused on winning an argument rather than the goal of a meeting and the topics of the meeting are not discussed, it is an example of \_\_\_\_\_.

Answer 77

goal displacement

Question 78

An __ intelligence system learns from human inputs in order to assist humans in making better decisions.

Answer 78

augmented

Question 79

By 2035, artificial intelligence is expected to have what effect on labor productivity?

Answer 79

It will increase labor productivity by as much as 40%

Question 80

One thing groupthink teaches us is that cohesiveness:

Answer 80

isn't always a good thing

Question 81

# Select all that apply Which of the following are ways in which artificial intelligence is expected to improve the interactions between businesses and employees or consumers?

Answer 81

Tailoring products to the personal needs and preferences of individual consumers. Eliminating human bias from human resources decisions. Reducing work demands and freeing up more time for family or leisure.

Question 82

All of the following are advantages to group decision making EXCEPT \_\_\_\_\_.

Answer 82

superiors can dominate or intimidate the group

Question 83

Match each symptom of groupthink with its explanation. a. sense of invulnerability b. rationalization c. illusion of unanimity d. the wisdom of crowds

Answer 83

a. sense of invulnerability - Group members have the illusion that nothing can go wrong, breeding excessive optimism and risk taking. b. rationalization - Pet assumptions underlying the group's decisions are protected from critical questions. c. illusion of unanimity - A group member's silence is interpreted as consent. d. the wisdom of crowds - Groupthink's pressure to conform can lead members with different ideas to censor themselves.

Question 84

Goal _____ occurs when the primary goal is subsumed by a secondary goal.

Answer 84

displacement

Question 85

# Select all that apply What are three characteristics that affect decision making by a group?

Answer 85

The knowledge, size, and efficiency of the group

Question 86

Turbine Manufacturing uses artificial intelligence in its factories to automate basic tasks, freeing human employees to perform more high-level finishing and quality assurance tasks. Which area of artificial intelligence does this illustrate?

Answer 86

assisted intelligence

Question 87

Even though not everyone in the meeting agreed with the final decision, the group decided to proceed and replace all existing machine parts in the warehouse. In this situation, the group had \_\_\_\_\_.

Answer 87

reached a consensus

Question 88

# Select all that apply What are common results of groupthink?

Answer 88

Loss of new ideas Failure to consider new information

Question 89

What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart?

Answer 89

brainstorming

Question 90

# Select all that apply What are symptoms of groupthink?

Answer 90

an illusion of unanimity rationalization a sense of invulnerability

Question 91

Electronic brainstorming, also called \_\_\_\_\_, is a technique used to help members of a group come together over a computer network to generate ideas and alternatives for solving problems.

Answer 91

brainwriting

Question 92

All the following are characteristics of group decision-making EXCEPT \_\_\_\_\_.

Answer 92

groups make decisions quickly

Question 93

In the devil's advocacy technique, the group assigns one person to do which of the following?

Answer 93

uncover all possible objections to a plan or idea

Question 94

A consensus is reached when all members are able to express their opinions \_\_\_\_\_\_.

Answer 94

and reach agreement to support the final decision

Question 95

The managers of Coastal Imports are having a meeting to decide whether the company should raise prices on its best-selling products. During the meeting, the team engages in a debate in which one side argues that the company should lower its prices while the other side argues in favor of raising them. Which problem-solving technique is the group using?

Answer 95

the dialectic method

Question 96

After a major product launch, managers at McLaughlin Industries meet to evaluate outcomes and how those outcomes differ from what the group expected. This approach is part of which group problem-solving technique?

Answer 96

project post-mortem

Question 97

Michelle met with her five employees around a table and asked each of them to take five minutes to write down what they personally thought their new facility should include. She then collected the information and wrote it on the white board for all of them to view and decide upon. Michelle is using the _____ technique.

Answer 97

brainstorming

Question 98

Brainwriting is the process of brainstorming by using \_\_\_\_\_.

Answer 98

a computer network

Question 99

During meetings, Stacy challenges new ideas, even those that she agrees with, in order to make sure that her team has considered every angle. What role is Stacy playing?

Answer 99

devil's advocate

Question 100

In the ______ method, groups engage in a structured debate between opposing positions (*thesis* and *antithesis*) with the aim of reaching a consensus.

Answer 100

dialectic

Question 101

What is the goal of conducting a project post-mortem?

Answer 101

To determine what could be done better and incorporate those insights into future decisions