Chapter 11 & 12

Front 1

1) 
When Thelma's boss said, "What we have here is a morale problem" what was she doing? 
1) 
_______
A) 
hindsight
B) 
defining a problem in terms of functional specialty
C) 
defining a problem in terms of solution
D) 
confirmation bias
E) 
diagnosing a problem in terms of symptoms

Back 1

E

Front 2

2) 
When he heard that turnover was increasing, the human resource manager immediately told the president that salaries would have to be raised. Unfortunately, low pay wasn't the cause of the turnover. Which decision-making error did the manager commit? 
2) 
_______
A) 
He revealed a confirmation bias.
B) 
He defined the problem in terms of a solution.
C) 
He treated sunk costs improperly.
D) 
He escalated commitment.
E) 
He exhibited the knew-it-all-along effect.

Back 2

B

Front 3

3) 
Escalation of commitment to a failing course of action 
3) 
_______
A) 
only occurs in highly competitive situations.
B) 
only occurs if the decision-maker was personally responsible for the initial loss.
C) 
is what defines the occurrence of a risky shift.
D) 
is the most common outcome of information overload.
E) 
shows how people may treat sunk costs improperly.

Back 3

E

Front 4

4) 
According to the anchoring effect, people 
4) 
_______
A) 
don't adjust successive estimates enough in the face of new information.
B) 
depend too much on problem solutions developed by others.
C) 
tend to invest additional resources in an apparently failing course of action.
D) 
rely too much on the most recent information received.
E) 
resist problem solutions developed by others.

Back 4

A

Front 5

5) 
At what part of an organization would an ill-structured problem most likely be encountered? 
5) 
_______
A) 
Where the bottom of the hierarchy meets the middle
B) 
The middle of the hierarchy
C) 
The top of the hierarchy
D) 
Ill-structured problems are equally likely throughout the organizational hierarchy
E) 
The bottom of the hierarchy

Back 5

C

Front 6

6) 
Conventional (i.e. nonelectronic) brainstorming 
6) 
_______
A) 
is a decision-making technique in which the decision-makers do not meet face-to-face.
B) 
is a method of training discussion leaders to help groups make more effective decisions.
C) 
is a technique for evaluating solutions to problems.
D) 
is more effective at generating ideas than the nominal group technique.
E) 
is not a very effective technique for generating ideas.

Back 6

E

Front 7

7) 
You have just applied for a job and when completing the application form you were surprised to see questions about your age and marital status. Such questions would seem to violate equal employment and human rights legislation and not likely to be related to the job. It made you wonder why a company would ask these questions. What is a good explanation for this? 
7) 
_______
A) 
cognitive biases
B) 
bounded rationality
C) 
information overload
D) 
difficulties of nonprogrammed decision making
E) 
difficulties of programmed decision making

Back 7

E

Front 8

8) 
A key advantage of the use of electronic brainstorming groups is that 
8) 
_______
A) 
as group size increases, so does social loafing.
B) 
as group size increases, so does flaming.
C) 
as group size increases, so does the idea generation.
D) 
as group size increases, so do individual inhibitions.
E) 
None of the above.

Back 8

C

Front 9

9) 
Which of the following accurately depicts the relationship between personality and escalation? 
9) 
_______
A) 
people high on neuroticism and low on negative affectivity are more likely to escalate
B) 
people high on neuroticism and high on negative affectivity are less likely to escalate
C) 
people high on neuroticism and low on negative affectivity are less likely to escalate
D) 
people high on neuroticism and high on negative affectivity are more likely to escalate
E) 
people low on neuroticism and high on negative affectivity are more likely to escalate

Back 9

B

Front 10

10) 
Which of the following is an example of diffusion of responsibility? 
10) 
______
A) 
As Douglas accepted the award on behalf of his department he made a point of acknowledging the contributions of his colleagues.
B) 
Paul allows his secretary to make certain decisions without consulting him.
C) 
After her boss's decision turned out to be wrong, Sally said she knew all along that it was wrong.
D) 
A firing squad of ten soldiers was used to execute the prisoner.
E) 
The surgery team decided on a more conservative operating technique when they discussed the operation face-to-face.

Back 10

D

Front 11

11) 
Illusion of invulnerability, illusion of morality, and illusion of unanimity are all characteristics of 
11) 
______
A) 
groupthink.
B) 
maximization.
C) 
confirmation bias.
D) 
risky shift.
E) 
hindsight.

Back 11

A

Front 12

12) 
Which of the following represents the effectiveness of electronic brainstorming groups? 
12) 
______
A) 
once over the size of two members, electronic brainstorming groups perform worse than face-to-face groups in terms of quantity but not quality of ideas
B) 
once over the size of two members, electronic brainstorming groups perform better than face-to-face groups in terms of quality but not quantity of ideas
C) 
once over the size of two members, electronic brainstorming groups perform better than face-to-face groups in terms of quantity but not quality of ideas
D) 
once over the size of two members, electronic brainstorming groups perform better than face-to-face groups in terms of both quantity and quality of ideas
E) 
once over the size of two members, electronic brainstorming groups perform the same as face-to-face groups in terms of both the quantity and quality of ideas

Back 12

D

Front 13

13) 
A study of 356 decisions in medium and large organizations in the United States and Canada found that ________ of the decisions made in organizations fail. 
13) 
______
A) 
over 50 percent
B) 
one third
C) 
half
D) 
one quarter
E) 
10 percent

Back 13

C

Front 14

14) 
When people can brainstorm electronically, entering their ideas at computer terminals, 
14) 
______
A) 
group brainstorming works as well as individual brainstorming.
B) 
individual brainstorming is superior to group brainstorming.
C) 
group brainstorming is superior to individual brainstorming.
D) 
less flaming is likely to occur.
E) 
brainstorming is superior to the nominal group technique.

Back 14

A

Front 15

15) 
A devil's advocate is 
15) 
______
A) 
a genuinely evil person.
B) 
a person who smoothes over conflict.
C) 
a group member who bullies other members into accepting the group consensus.
D) 
a group member that everyone dislikes.
E) 
a person who intentionally stimulates controversy.

Back 15

E

Front 16

16) 
Research has shown that people tend to have a ________ to value information advice for which they have paid over free advice of equal quality. 
16) 
______
A) 
interpretation bias
B) 
confirmation bias
C) 
insight bias
D) 
insight forgiveness
E) 
cognitive bias

Back 16

E

Front 17

18) 
What does brainstorming and the nominal group technique (NGT) focus on? 
18) 
______
A) 
brainstorming focuses on the generation of ideas; NGT focuses on the generation and evaluation of ideas
B) 
brainstorming and NGT focus on the generation and evaluation of ideas
C) 
brainstorming and NGT focus on the generation of ideas
D) 
brainstorming and NGT focus on the evaluation of ideas
E) 
brainstorming focuses on the generation of ideas; NGT focuses on the evaluation of ideas

Back 17

A

Front 18

19) 
If we employ ________ to improve decisions, the participants never meet face-to-face. 
19) 
______
A) 
a devil's advocate
B) 
the Delphi technique
C) 
the nominal group technique
D) 
brainstorming
E) 
group discussion

Back 18

B

Front 19

20) 
Mark has two alternatives. There is a 50 percent chance that he will earn $120,000 if he accepts a government contract. If he decides not to accept the contract and instead continues on his present project he has an 80 percent chance of earning $100,000. If Mark is a perfectly rational decision-maker which of the following statements is true? 
20) 
______
A) 
His expected value of continuing on the present project is $80,000.
B) 
He will attempt to satisfice.
C) 
He will ignore economic criteria in making his decision.
D) 
He will accept the government contract.
E) 
He will revise his earnings estimate on the government contract to make it more attractive.

Back 19

A

Front 20

21) 
An Economic Person does not 
21) 
______
A) 
use economic gain to evaluate the correctness of decisions.
B) 
make rational decisions.
C) 
make decisions like the average consumer or manager.
D) 
have adequate information to make good decisions.
E) 
use logic in making decisions.

Back 20

C

Front 21

22) 
In what kind of decisions does mood have its greatest impact? 
22) 
______
A) 
Well-structured and unambiguous.
B) 
Certain and well-structured.
C) 
Uncertain and ill-structured.
D) 
Uncertain and ambiguous.
E) 
Certain and unambiguous.

Back 21

D

Front 22

23) 
Information overload is likely to lead to 
23) 
______
A) 
greater confidence by managers in their decisions.
B) 
higher quality decisions.
C) 
only relevant information influencing decision-making.
D) 
lower satisfaction with the ultimate decision.
E) 
fast decision-making.

Back 22

A

Front 23

24) 
The following illustrate the operation of bounded rationality except 
24) 
______
A) 
emotions and moods
B) 
cognitive biases
C) 
framing
D) 
maximization
E) 
political considerations

Back 23

D

Front 24

25) 
Which of the following is a problem frame? 
25) 
______
A) 
How the problem is solved
B) 
How the solution is implemented
C) 
How the decision-makers are rewarded
D) 
How the problem is stated
E) 
How the solution is evaluated

Back 24

D

Front 25

26) 
After group discussion, group members tend to make decisions that are ________ the positions of individual members before discussion. 
26) 
______
A) 
more risky than
B) 
more risky or more conservative than
C) 
less risky or less conservative than
D) 
more conservative than
E) 
equal to the average risk of

Back 25

B

Front 26

27) 
The well-structured problem does not exhibit which of the following characteristics? 
27) 
______
A) 
uncertainty about what to do
B) 
certainty about what to do
C) 
desired state is clear
D) 
existing state is clear
E) 
problem is repetitive and familiar

Back 26

A

Front 27

28) 
Which of the following accurately describes the effect of moods on decision making? 
28) 
______
A) 
Mood affects how but not what people think when making decisions.
B) 
Mood does not affect what or how people think when making decisions.
C) 
Only a positive mood has an affect on how people think when making decisions.
D) 
Mood affects what and how people think when making decisions.
E) 
Mood affects what but not how people think when making decisions.

Back 27

D

Front 28

29) 
What does brainstorming focus on? 
29) 
______
A) 
the generation and evaluation of ideas
B) 
the generation of ideas by groups and the evaluation of the ideas by individuals
C) 
the generation of ideas rather than the evaluation of ideas
D) 
the evaluation of ideas rather than the generation of ideas
E) 
the generation of ideas by individuals and evaluation of the ideas by groups

Back 28

C

Front 29

30) 
The ill-structured problem is one where the 
30) 
______
A) 
existing state is clear, desired state is unclear.
B) 
existing state is clear, desired state is clear.
C) 
existing state is clear but the method of getting to the desired state is unknown.
D) 
existing state is unclear, desired state is unclear.
E) 
existing state is unclear, desired state is clear.

Back 29

D

Front 30

31) 
What did Nobel Prize winner Herbert Simon recognize? 
31) 
______
A) 
the usefulness of programmed decision making
B) 
the perfectly rational characteristics of Economic Person do not exist in real decision makers
C) 
the usefulness of nonprogrammed decision making
D) 
the existence of groupthink
E) 
the characteristics of Economic Person

Back 30

B

Front 31

32) 
After meeting together, the members of the venture capital group decided not to fund any more projects for the year. Before the meeting, some members had been cautiously in favour of funding. What happened? 
32) 
______
A) 
Conservative shift
B) 
Groupthink
C) 
Diffusion of responsibility
D) 
Risky shift
E) 
Hindsight

Back 31

A

Front 32

33) 
Who failed to treat sunk costs properly? 
33) 
______
A) 
The salesperson who acted unethically
B) 
The devil's advocate in the meeting
C) 
The manager who escalated commitment
D) 
The leader of the group that exhibited groupthink
E) 
The politician who cancelled the public works project

Back 32

C

Front 33

34) 
Which of the following best describes the nominal group technique (NGT) and the Delphi technique? 
34) 
______
A) 
participants do not engage in face-to-face interaction in both
B) 
participants engage in face-to-face interaction in the Delphi technique but not the NGT
C) 
participants engage in face-to-face interaction for idea generation but not evaluation in both
D) 
participants engage in face-to-face interaction in both
E) 
participants engage in face-to-face interaction in the NGT but not the Delphi technique

Back 33

E

Front 34

35) 
Which of the following is an example of faulty hindsight? 
35) 
______
A) 
Alan erroneously predicted that his superiors would favour the reorganization plan.
B) 
Suki decided to spend more money upgrading her old computer instead of buying a new one.
C) 
The small business owner could never forget how she had been let down by a particular supplier.
D) 
When it became clear that the investment was a poor one, Pierre realized that he had known it was bad all along.
E) 
The small business owner who had been let down by a supplier gave the supplier another large order.

Back 34

D

Front 35

36) 
One is most likely to see a program used to make a(n) ________ decision. 
36) 
______
A) 
executive-level
B) 
routine
C) 
ill-structured
D) 
important
E) 
unique

Back 35

B

Front 36

37) 
Sales at the Smelly Cheese Company had been down all year. Management met to try and identify the problem. The marketing manager which convinced that the problem was poor marketing. The manager of human resources believed the problem was employee motivation. What is the difficulty they are having? 
37) 
______
A) 
too little information
B) 
problem defined in terms of solution
C) 
perceptual defence
D) 
problem defined in terms of functional specialty
E) 
problem diagnosed in terms of symptoms

Back 36

D

Front 37

38) 
Which of the following is probably an example of the irrational treatment of sunk costs? 
38) 
______
A) 
Mary obtained much more information than she needed in order to make a decision on the leasing arrangement.
B) 
The company president decided to cancel the expansion project even though construction work had already begun.
C) 
Janine had her travel agent book two flights for her to New York so that she was certain not to miss the big meeting.
D) 
The pilot feared landing on the remote airstrip because there had been an accident there the day before.
E) 
Jim studied the computer output for two hours before the big meeting, but he couldn't use the information. Before the next meeting he studied the output for four hours.

Back 37

E

Front 38

39) 
Decision-makers who establish an adequate level of acceptability for a solution and then screen solutions until one that exceeds this level is found are 
39) 
______
A) 
satisficers.
B) 
rationalizers.
C) 
maximizers.
D) 
diffusers.
E) 
optimizers.

Back 38

A

Front 39

40) 
Ineffective hiring decisions are a good example of 
40) 
______
A) 
bounded rationality
B) 
the difficulties of programmed decision making
C) 
confirmation bias
D) 
the difficulties of nonprogrammed decision making
E) 
escalation of commitment

Back 39

B

Front 40

41) 
What three things are noteworthy about the definition of decision making? 
41) 
______
A) 
choice, problem, and process
B) 
choice, process, and resources
C) 
problem, process, and resources
D) 
choice, problem, and resources
E) 
choice, problem, and program

Back 40

B

Front 41

42) 
You and a friend have decided to study for your final exams together. However, time to study for your organizational behaviour exam is running out. Your friend persuades you to only study only the first five of the ten chapters to be covered on the exam. When you get to the exam you quickly read through all of the questions and are surprised to see that in fact the majority of the questions are from the first five chapters you studied. You and your friend both receive very good grades on the exam. Your friend never misses an opportunity to remind you how smart it was to only study the first five chapters. What is this an example of? 
42) 
______
A) 
hindsight
B) 
confirmation bias
C) 
framing
D) 
anchoring effect
E) 
escalation of commitment

Back 41

A

Front 42

43) 
In evaluating alternative solutions, decision-makers with bounded rationality 
43) 
______
A) 
often consider the political acceptability of the solution to other organizational members.
B) 
tend to exhibit maximization.
C) 
know the probability that each alternative will work.
D) 
rarely engage in satisficing.
E) 
know the ultimate value of each alternative.

Back 42

A

Front 43

44) 
Which of the following is not a characteristic of groupthink? 
44) 
______
A) 
The group experiences much dissension and argument.
B) 
The group constructs unfavourable stereotypes of outsiders.
C) 
Group members censor themselves from bringing up issues which are contrary to the group consensus.
D) 
The group sees itself as morally correct.
E) 
Much conformity occurs in the group.

Back 43

A

Front 44

45) 
Which of the following is a cognitive bias that contributes to decision makers failure to acquire enough information to make a good decision? 
45) 
______
A) 
confirmation bias
B) 
perceptual defence
C) 
hindsight
D) 
satisficing
E) 
anchoring effect

Back 44

A

Front 45

46) 
Nonprogrammed decision-making 
46) 
______
A) 
may stimulate strong political considerations.
B) 
is used to solve repetitive problems.
C) 
is most likely to be required at lower levels of the organizational hierarchy.
D) 
is used to solve well-structured problems.
E) 
tends to involve much certainty.

Back 45

A

Front 46

47) 
Which of the following is a potential example of the risky shift? 
47) 
______
A) 
The board of directors voted to proceed with the expansion even though it would cost $10 million more than originally planned.
B) 
Three partners were uncertain about expanding their business. After discussing the matter, they decided to expand even though the economy was bad.
C) 
Steve decided to take an elective course in statistics even though he wasn't very good at quantitative subjects.
D) 
A drug company put a new drug on the market even though it was possible that the drug would provoke bad side effects.
E) 
A manager quit her secure job in a large company to start her own business even though she had to mortgage her house.

Back 46

B

Front 47

48) 
Which of the following is characteristic of well-structured problems? 
48) 
______
A) 
They often entail high risk.
B) 
They tend to be complex and involve a high degree of uncertainty.
C) 
They are unusual and have not been encountered before.
D) 
The existing state and the desired state are understood.
E) 
They frequently arouse controversy and conflict among those interested in the problem.

Back 47

D

Front 48

49) 
Which technique of improving decision-making involves the use of several waves of questionnaires and requires a lot of time? 
49) 
______
A) 
Electronic brainstorming
B) 
Brainstorming
C) 
The Delphi technique
D) 
The nominal group technique
E) 
Group discussion

Back 48

C

Front 49

50) 
Which of the following problems would most likely be solved with a program (that is, using programmed decision-making)? 
50) 
______
A) 
How many workers should we call out to staff the assembly line next week?
B) 
In which part of the country should we locate our new business?
C) 
Should this convict be granted parole?
D) 
Should we merge with this company or not?
E) 
Which candidate should we choose to be vice-president of marketing?

Back 49

A

Front 50

51) 
Research by Daniel Kahneman and Amos Tversky shows that 
51) 
______
A) 
when people view a problem as a choice between losses, they tend to make risky decisions
B) 
when people view a problem as a choice between losses, they tend to make poor decisions
C) 
when people view a problem as a choice between losses, they tend to make better decisions
D) 
when people view a problem as a choice between losses, they tend to make conservative decisions
E) 
when people view a problem as a choice between gains, they tend to make risky decisions

Back 50

A

Front 51

52) 
Which of the following is an example of an ill-structured problem? 
52) 
______
A) 
How much assistance should this client receive?
B) 
In which part of the country should we build a new plant?
C) 
Which of these 10 car loan applications should I approve?
D) 
How much weight should I carry?
E) 
all of the above

Back 51

B

Front 52

53) 
Escalation of commitment 
53) 
______
A) 
illustrates how decision-makers often ignore sunk costs.
B) 
involves committing more and more resources to a failing course of action.
C) 
only occurs when the decision-maker is responsible for beginning a course of action.
D) 
is the most common outcome of information overload.
E) 
runs counter to the general tendency for decision-makers to try to justify their actions.

Back 52

B

Front 53

54) 
According to the groupthink theory, group members who are overconfident and willing to assume great risks are suffering from 
54) 
______
A) 
the knew-it-all-along effect.
B) 
the conservative shift phenomenon.
C) 
an illusion of invulnerability.
D) 
an escalation of commitment.
E) 
an illusion of unanimity.

Back 53

C

Front 54

55) 
Absenteeism has become a problem at the Smelly Cheese Company so the human resource manager has decided to do something about it. He has decided to choose the first solution he comes across that will get the level to what it was in the previous year. What is this an example of? 
55) 
______
A) 
anchoring effect
B) 
sunk costs
C) 
satisficing
D) 
confirmation bias
E) 
framing

Back 54

C

Front 55

56) 
After graduating from university your are planning to get a job as an accountant. Your best friend Jay is planning on opening his own restaurant. He says he has thought a great deal about his this and believes he will be very successful and it is a good decision. You explain to him the fact that most new restaurants fail but it does factor into Jay's decision. What does this demonstrate? 
56) 
______
A) 
perceptual defence
B) 
sunk costs
C) 
base rates
D) 
hindsight
E) 
anchoring effect

Back 55

C

Front 56

57) 
At which stage of the rational decision-making model is information overload a particular problem? 
57) 
______
A) 
Search for relevant information
B) 
Monitor and evaluate chosen solution
C) 
Evaluate alternative solutions
D) 
Implement chosen solution
E) 
Problem identification

Back 56

A

Front 57

58) 
Satisficing is a concept that is most associated with 
58) 
______
A) 
implementing a solution.
B) 
searching for information.
C) 
monitoring a solution.
D) 
choosing a solution.
E) 
identifying a problem.

Back 57

D

Front 58

59) 
Which of the following is a benefit of using electronic brainstorming systems? 
59) 
______
A) 
Participation is more equally distributed among members.
B) 
The ability to "flame" someone anonymously.
C) 
People feel more accountable for electronic decisions.
D) 
Less risky decisions than face-to-face groups.
E) 
Impulsive communication.

Back 58

A

Front 59

60) 
Which of the following is an example of an ill-structured problem? 
60) 
______
A) 
The assistant bank manager must decide which automobile loan applications to approve.
B) 
The retailer must decide whether to reorder lawn chairs.
C) 
The welfare officer must decide how much assistance a particular client should receive.
D) 
The production manager must decide how many workers to schedule on the line next week.
E) 
The sales manager must decide what to do about sales that seem sluggish.

Back 59

E

Front 60

61) 
What is a strong cause of groupthink? 
61) 
______
A) 
Conflict exists within the group.
B) 
The group contains a devil's advocate.
C) 
The group leader favours a particular decision.
D) 
Group members feel too free to speak their minds.
E) 
The absence of mindguards.

Back 60

C

Front 61

62) 
Diffusion of responsibility might contribute to 
62) 
______
A) 
risky shifts.
B) 
information overload.
C) 
hindsight.
D) 
confirmation bias.
E) 
conservative shifts.

Back 61

A

Front 62

63) 
What is most likely to lead one to adopt a simplified, short-cut decision-making strategy that is likely to violate the rational model? 
63) 
______
A) 
A negative mood.
B) 
A positive mood.
C) 
A positive emotion.
D) 
A negative emotion.
E) 
The lack of emotion.

Back 62

B

Front 63

64) 
Which of the following most clearly involves a decision program? 
64) 
______
A) 
A medical ethics committee
B) 
A task force to improve company image
C) 
A corporate merger
D) 
A billion dollar investment decision
E) 
A standing order to a supplier

Back 63

E

Front 64

65) 
Managers must often rely upon others when making decisions and solving problems. At what stage of the rational decision-making process does reliance upon others often cause special problems? 
65) 
______
A) 
Solution choice
B) 
Solution implementation
C) 
Information search
D) 
Development of alternative solutions
E) 
Evaluation of alternative solutions

Back 64

B

Front 65

66) 
Which of the following is another name for a programmed problem solution technique? 
66) 
______
A) 
routines
B) 
rules
C) 
standard operating procedures
D) 
rules of thumb
E) 
All of the above

Back 65

E

Front 66

67) 
The following are difficulties that can result from bounded rationality in problem identification except 
67) 
______
A) 
problem defined in terms of functional specialty
B) 
problem diagnosed in terms of symptoms
C) 
problem defined in terms of solution
D) 
problem defined as ill-structured
E) 
perceptual defence

Back 66

D

Front 67

68) 
Which of the following is most accurate about electronic brainstorming groups? 
68) 
______
A) 
as they get larger, they tend to produce less ideas, and the ideas-per-person decreases
B) 
as they get larger, they tend to produce less ideas and the ideas-per-person remains stable
C) 
as they get larger, they tend to produce more ideas, but the ideas-per-person decreases
D) 
as they get larger, they tend to produce more ideas, and the ideas-per-person increases
E) 
as they get larger, they tend to produce more ideas, but the ideas-per-person remains stable

Back 67

E

Front 68

69) 
Managers who exhibit bounded rationality 
69) 
______
A) 
might be factoring political considerations into decisions.
B) 
might be subject to cognitive biases.
C) 
might be limited in their capacity to acquire and process information.
D) 
might be operating under time constraints.
E) 
all of the above.

Back 68

E

Front 69

70) 
The manager who wishes to diffuse responsibility for a potentially incorrect decision should 
70) 
______
A) 
make the decision herself.
B) 
disregard the rational decision-making model.
C) 
use a group to make the decision.
D) 
use nonprogrammed decision-making.
E) 
be prepared to accept the sunk costs associated with the decision.

Back 69

C

Front 70

71) 
Which is an example of a conservative shift? 
71) 
______
A) 
Coach Smith decided to play it safe and kick a field goal rather than having the injured quarterback try a pass.
B) 
The individual city councilors were moderately opposed to the expensive bond issue. During the council meeting, so many negative points were raised that the bond issue was soundly defeated.
C) 
After reading an article about the economy in Business Week Frank decided not to expand his small business.
D) 
Because of the recession, the construction firm lowered its profit margin to get more of its bids accepted.
E) 
Several board members were cautiously optimistic about the merger proposal before the meeting. During the board meeting, so many problems were cited that the proposal was unanimously defeated.

Back 70

B

Front 71

72) 
A program would most likely be used 
72) 
______
A) 
to solve a risky problem.
B) 
to solve a well-structured problem.
C) 
to solve an ill-structured problem.
D) 
to justify group decision-making.
E) 
to solve problems dealt with by top management.

Back 71

B

Front 72

73) 
Sharon framed the problem as a choice between two losses. What is she likely to do now? 
73) 
______
A) 
Ignore economic considerations
B) 
Make a conservative decision
C) 
Ignore sunk costs
D) 
Make a risky decision
E) 
Ignore sample sizes

Back 72

D

Front 73

74) 
Tendencies to acquire and process information in an error-prone way are known as ________. 
74) 
_____________

Back 73

cognitive biases

Front 74

75) 
Assuming after a decision has been made that one knew the decision was flawed before it was made is an example of ________. 
75) 
_____________

Back 74

the knew it all along effect or hindsigh

Front 75

76) 
When people view a problem as a choice between losses, they tend to make ________ decisions. 
76) 
_____________

Back 75

risky

Front 76

77) 
When the existing state of a situation is well-known and the desired state is also known, you are facing a ________ problem. 
77) 
_____________

Back 76

well - structured

Front 77

78) 
A standardized way of solving a problem is a(n) ________. 
78) 
_____________

Back 77

program

Front 78

79) 
The decision-making strategy of choosing the alternative with the greatest expected value is called ________. 
79) 
_____________

Back 78

maximization

Front 79

80) 
The product planning group decided to sit around thinking up as many new names for the new soap as it could. This is an example of ________. 
80) 
_____________

Back 79

brainstorming

Front 80

81) 
________ frequently arouse controversy and conflict among the people who are interested in the decision. 
81) 
_____________

Back 80

ill structured problems

Front 81

82) 
The tendency for a group to make a less risky decision than its individual members favour is called the ________. 
82) 
_____________

Back 81

conservative shift

Front 82

83) 
Receiving more information than is necessary to make an effective decision puts a person in a state of ________. 
83) 
_____________

Back 82

information overload

Front 83

84) 
If group pressure leads to reduced mental efficiency, poor reality testing, and lax moral judgments, ________ has probably occurred. 
84) 
_____________

Back 83

groupthink

Front 84

85) 
A formal decision-making technique in which group members generate ideas alone, share them without censure, and then discuss them systematically is called ________. 
85) 
_____________

Back 84

the nominal group technique

Front 85

86) 
Political considerations, time constraints, and limited information processing capacity mean that people exhibit ________ rather than perfect rationality. 
86) 
_____________

Back 85

bounded rationality

Front 86

87) 
A person appointed to identify and challenge the weaknesses of a proposed plan or strategy is known as a ________. 
87) 
_____________

Back 86

devil's advocate

Front 87

88) 
________ refers to the practice of accepting a solution to a problem that is not optimal but is good enough to meet pre-established criteria. 
88) 
_____________

Back 87

satisficing

Front 88

89) 
Permanently lost resources that often enter inappropriately into subsequent decision-making are called ________. 
89) 
_____________

Back 88

sunk costs

Front 89

90) 
The decision-making process that involves several formal rounds of questionnaires to gather information is ________. 
90) 
_____________

Back 89

the Delphi technique

Front 90

91) 
________ constitute assumptions and shortcuts that can improve decision making efficiency but lead to serious errors in judgment. 
91) 
_____________

Back 90

cognitive biases

Front 91

92) 
The tendency for group members to feel less anxious about the consequences of a decision because it was made by a group rather than an individual member is called ________. 
92) 
_____________

Back 91

diffusion of responsibility

Front 92

93) 
Sandra and her colleagues have been meeting to make a decision on how to address a new regulation. She has done a great deal of her own research directly through the agencies connected to the issue as well as discussed it with her clients. Her boss brought in a consultant to provide additional insight and what the consultant (and now her boss) are suggesting seem to go against what her clients and the government agencies have advised as the appropriate course of action. She thinks her boss may be experiencing ________. 
93) 
_____________

Back 92

cognitive bias

Front 93

94) 
________ refers to the often subtle aspects of the presentation of information about a problem that are assumed by decision-makers. 
94) 
_____________

Back 93

framing

Front 94

95) 
When a gap exists between an existing state and a desired state we have a(n) ________. 
95) 
_____________

Back 94

problem

Front 95

96) 
At the ________ stage of the rational decision-making model the assistance of others is often a particularly critical issue. 
96) 
_____________

Back 95

solution implementation

Front 96

97) 
Devoting more and more resources to a failing course of action is known as ________. 
97) 
_____________

Back 96

escalation of commitment

Front 97

98) 
For a(n) ________ problem, the existing and desired states are clear, and it is obvious how to get from one to another. 
98) 
_____________

Back 97

well - structured

Front 98

99) 
People who brainstorm alone generate ________ ideas than when brainstorming in groups. 
99) 
_____________

Back 98

more

Front 99

100) 
________ refers to the tendency to seek out information that conforms to one's own definition of or solution to a problem. 
100) 
____________

Back 99

confirmation bias

Front 100

101) 
The perfect prototype for ________ is Economic Person. 
101) 
____________

Back 100

perfect rationality

Front 101

definition for power

Back 101

ability to influence the behavior of others and resist unwanted influence in return

Front 102

Organizational Power (list 3)

Back 102

- legitimate power
- reward power
- coercive power

Front 103

Personal Power (list 2)

Back 103

- Referent Power
- expert power

Front 104

Legitimate Power definition

Back 104

derives from person's position or job in organization
- formally permitted to influence
- formal authority

Front 105

reward power definition

Back 105

- exists through exertion of influence by providing positive outcomes and preventing negative ones
- used to back up legitimate power
- can be used by any organization member

Front 106

Coercive Power

Back 106

- exert influence by use of punishment or threat
- managers using it is generally ineffective and provokes employee resistance

Front 107

Referent Power

Back 107

- powerholder well liked by others
- stems from identification
- available to everyone
- likely to generate commitment and enthusiasm

Front 108

Expert Power

Back 108

- when individual has special information or expertise that is valued
- the more crucial and unusual the greater the power
- most associated with employee effectiveness and generate commitment and enthusiasm

Front 109

Most Effective Influence Tactics (list 4)

Back 109

rational persuasion
consultation
inspirational appeals
collaboration

Front 110

moderately effective influence tactics (list 4)

Back 110

ingratiation - flattery, manners, humble
exchange - favors or trades
personal appeals
apprising

Front 111

least effective influence tactics (list 2)

Back 111

pressure
coalitions - seeking united support from other members

Front 112

what is shotgun style influencing tactic?

Back 112

high use of all influence tactics with emphasis on assertiveness and exchange