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The ___________ model of decision making arises when two or more groups form, each representing a different preference, and each tries to use power and negotiation to sway the decision.


A) bounded rationality
B) incremental
C) garbage can
D) coalitional
E) affective rationality

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

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Ari works for the federal government in acquisitions. Policy requires that in contracting with suppliers, at least three bids must be received and the lowest bid that meets specifications will be accepted. Ari's decisions regarding the contracts with suppliers would be classified as


A) Minimized.
B) Programmed.
C) Structured.
D) Logical.
E) Maximized.

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

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When business managers ignore risks and fail to objectively evaluate the odds of success for their decisions, it is an example of which of the following psychological biases?


A) Illusion of control.
B) Framing effects.
C) Discounting the future.
D) Time pressure.
E) Social realities.

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

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The vice president of production tells the group that in his area of the company, many managers don't even agree about what their goals are and certainly cannot agree on what action to take. His managers are using which model of decision making?


A) Bounded rationality.
B) The incremental model.
C) The garbage can model.
D) The coalitional model.
E) The crisis model.

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

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The president of Effectively Organized Inc. responds most positively to the model that is the most cautious. She explains that the budget process is the easiest decision for her because she breaks it into smaller pieces and builds the decisions as she goes. The president seems to prefer which model?


A) Bounded rationality.
B) The incremental model.
C) The garbage can model.
D) The coalitional model.
E) The crisis model.

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

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The owner's belief that he should make every decision himself by diagnosing the problem as he sees it and then immediately implementing a solution is


A) Correct.
B) A mistake that often leads to suboptimal decisions.
C) An example of vigilance.
D) An example of satisficing.
E) An example of maximizing.

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

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Evaluating the decision is always useful, whether the outcome has been positive or negative.

A) True
B) False

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Andersen Tree Farm in Kansas is looking for ways to be more environmentally friendly. Managers interviewed frontline staff to get their opinions and ideas, and invited everyone to participate in deciding which ideas to advance. Staff members were then aware of the various options and recognized the benefits and costs of each. In this scenario, involving the staff most likely helped them to


A) Dominate the discussion and reinforce the organizational structure.
B) Use groupthink to gain buy-in.
C) Please everyone completely.
D) Displace obsolete goals in favor of new ones.
E) Understand the decisions and be more committed to them.

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

Correct Answer

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Omar dreaded annual performance reviews. His company had few performance standards, and worse still, if his employees did not like their reviews, they went over his head, and Omar's boss often overturned decisions! These interpersonal factors that decrease the effectiveness of the organization's decisions are best described as


A) Time pressures.
B) Gut feelings.
C) The illusion of control.
D) A lack of control.
E) Social realities.

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

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Complimenting one another and telling stories are examples of behaviors that can make brainstorming less effective.

A) True
B) False

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The manager of the Capitol Restaurant noted that the restaurant had experienced a decreased number of evening customers. The manager promptly ordered the chef to rewrite the evening menu. Customer feedback later indicated that the problem had not been the menu but poor service from the wait staff. The manager's decision to have the menu revised suggests that he failed to


A) Challenge the status quo.
B) Evaluate the alternatives and consequences.
C) Properly diagnose the cause of the problem.
D) Evaluate the decision and its consequences.
E) Identify a solution.

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

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Describe the elements of an effective crisis management plan.

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Which of the following best describes the requirements of the dialectic method?


A) Someone intentionally presents negative arguments to force further investigation of the alternative under consideration.
B) A structured debate between two conflicting courses of action is held.
C) Conflict generated within the group is minimized by enforcing group unity.
D) Conflict generated within the group is maximized by including not only factual counterarguments but also personal attacks.
E) The leader performs the role of peacekeeper when attacks are directed at individuals.

F) C) and E)
G) All of the above

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Another way of referring to "risk" is "taking a risk."

A) True
B) False

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__________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.


A) Benchmarking
B) Maximizing
C) Minimizing
D) Satisficing
E) Optimizing

F) D) and E)
G) C) and D)

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Important, difficult decisions that require creative approaches tend to be


A) Qualitative decisions.
B) Programmed decisions.
C) Noneconomic decisions.
D) Nonprogrammed decisions.
E) Policy decisions.

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

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Discounting the future refers to


A) Valuing longer-term benefits and costs more heavily than shorter-term benefits and costs.
B) Overestimating the long-term effects of the decision.
C) Underestimating the short-term effects of the decision.
D) Valuing short-term benefits and costs more heavily than longer-term benefits and costs.
E) Making quick decisions with whatever information is at hand.

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

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Uncertainty exists when the manager


A) Faces two conflicting issues.
B) Knows the risk involved in making the decision.
C) Has accurate and comprehensive information to make the decision.
D) Has insufficient information to make the decision.
E) Knows that the probability of success is less than 100 percent.

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

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Conflict exists when the manager must consider opposing pressures from different sources.

A) True
B) False

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In trying to make a conflict between two employees less personal and emotional, their manager asks each of them to approach the problem from a different viewpoint than their original one. This is an example of encouraging the use of


A) Cognitive conflict.
B) Affective conflict.
C) A devil's advocate.
D) Vigilance.
E) Groupthink.

F) A) and C)
G) None of the above

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