Management, 10e (Robbins)
Chapter 6 Managers as Decision Makers
1) Problem identification is purely objective. Answer: FALSE
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process
2) The second step in the decision-making process is identifying a problem. Answer: FALSE
Diff: 1 Page Ref: 122
Topic: The Decision-Making Process
3) A decision criterion defines what is relevant in a decision. Answer: TRUE
Diff: 2 Page Ref: 122
Topic: The Decision-Making Process
4) The fourth step of the decision-making process requires the decision maker to list viable alternatives that could resolve the problem. Answer: TRUE
Diff: 1 Page Ref: 123
Topic: The Decision-Making Process
5) Once the alternatives have been identified, a decision maker must analyze each one.
Answer: TRUE
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
6) The step in the decision-making process that involves choosing a best alternative is termed implementation. Answer: FALSE
Diff: 2 Page Ref: 123
Topic: The Decision-Making Process
7) Making decisions is with the essence of management. Answer: TRUE
Diff: 1 Page Ref: 120 Topic: Decision-Making Styles
8) Managerial decision making is assumed to be rational.
1
Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall
Answer: TRUE
Diff: 2 Page Ref: 124 Topic: Decision-Making Styles
9) One assumption of rationality is that we cannot know all of the alternatives. Answer: FALSE
Diff: 3 Page Ref: 124 Topic: Decision-Making Styles
10) Managers tend to operate under assumptions of bounded rationality. Answer: TRUE
Diff: 2 Page Ref: 125 Topic: Decision-Making Styles
11) Studies of the events leading up to the Challenger space shuttle disaster point to an escalation of commitment by decision makers. Answer: TRUE
Diff: 2 Page Ref: 126 Topic: Decision-Making Styles
12) Managers regularly use their intuition in decision making. Answer: TRUE
Diff: 1 Page Ref: 126 Topic: Decision-Making Styles
13) Rational analysis and intuitive decision making are complementary. Answer: TRUE
Diff: 2 Page Ref: 126 Topic: Decision-Making Styles
14) Programmed decisions tend to be repetitive and routine. Answer: TRUE
Diff: 1 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
15) Rules and policies are basically the same. Answer: FALSE
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
16) A policy is an explicit statement that tells a manager what he or she ought or ought not to do.
2
Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall
Answer: FALSE
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
17) The solution to nonprogrammed decision making relies on procedures, rules, and policies.
Answer: FALSE
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
18) Most managerial decisions in the real world are fully nonprogrammed. Answer: FALSE
Diff: 1 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
19) The ideal situation for making decisions is low risk. Answer: FALSE
Diff: 2 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
20) Risk is the condition in which the decision maker is able to estimate the likelihood of certain outcomes. Answer: TRUE
Diff: 1 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
21) Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates. Answer: FALSE
Diff: 3 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
22) Most managers have characteristics of linear thinking style decision makers. Answer: FALSE
Diff: 2 Page Ref: 131
Topic: Types of Decisions and Decision-Making Conditions
23) According to the boxed feature, \employees tend to make decisions faster than a homogeneous group of employees. Answer: FALSE
Diff: 2 Page Ref: 132 Topic: Decision-Making Styles
3
Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall
Skill: AACSB: Multicultural and Diversity
24) The anchoring effect describes when decision makers fixate on initial
information as a starting point and then, once set, they fail to adequately adjust for subsequent information. Answer: TRUE
Diff: 2 Page Ref: 133 Topic: Decision-Making Styles
25) The availability bias describes when decision makers try to create meaning out of random events. Answer: FALSE
Diff: 2 Page Ref: 134 Topic: Decision-Making Styles
26) The sunk cost error is when decision makers forget that current choices cannot correct the past. Answer: TRUE
Diff: 2 Page Ref: 134 Topic: Decision-Making Styles
27) Today's business world revolves around making decisions, usually with complete or adequate information, and under minimal time pressure. Answer: FALSE
Diff: 3 Page Ref: 135
Topic: Effective Decision Making in Today's World
28) Managers need to understand cultural differences to make effective decisions in today's fast-moving world. Answer: TRUE
Diff: 2 Page Ref: 135
Topic: Effective Decision Making in Today's World Skill: AACSB: Multicultural and Diversity
29) Highly reliable organizations (HROs) are easily tricked by their success. Answer: FALSE
Diff: 1 Page Ref: 136
Topic: Effective Decision Making in Today's World
30) Decision making is typically described as ________, which is a view that is too simplistic.
A) deciding what is correct
4
Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall
B) putting preferences on paper C) choosing among alternatives
D) processing information to completion Answer: C
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process
31) A series of eight steps that begins with identifying a problem and concludes with evaluating the decision's effectiveness is the ________. A) decision-making process B) managerial process C) maximin style
D) bounded rationality approach Answer: A
Diff: 1 Page Ref: 121
Topic: The Decision-Making Process
32) ________ is the existence of a discrepancy between an existing and a desired state of affairs. A) An opportunity B) A solution C) A weakness D) A problem Answer: D
Diff: 1 Page Ref: 121
Topic: The Decision-Making Process
33) In identifying the problem, a manager ________.
A) compares the current state of affairs with where they would like to be B) expects problems to be defined by neon lights C) looks for discrepancies that can be postponed
D) will not act when there is pressure to make a decision Answer: A
Diff: 1 Page Ref: 122
Topic: The Decision-Making Process
34) Which of the following statements is true concerning problem identification? A) Problems are generally obvious.
B) A symptom and a problem are basically the same.
C) Well-trained managers generally agree on what is considered a problem.
D) The problem must be such that it exerts some type of pressure on the manager to act.
5
Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall