Management, 13e, Global Edition are being developed.

Belinda can choose

(Robbins) only one. She has decided to focus on
Chapter 2 Managers as Decision Makers target market size, production costs, and
net profits. These are Belinda's ________.
1) Abby listened to the weather report A) alternatives
this morning before work. As a result, B) criterion weights
she drove her car and carried an C) decision criteria
umbrella instead of riding her motorcycle D) problems
to work. Whether she realizes it or not,
Abby ________. 6) To determine the ________, a manager
A) analyzed criteria must determine what is relevant or
B) implemented a decision important to resolving a problem.
C) assigned weights to criteria A) bounded rationality of a decision
D) evaluated a decision B) escalation of commitment
C) cost of implementation
2) Which of the following statements is D) decision criteria
true concerning problem identification?
A) Problems are generally obvious. 7) Amanda, a single parent, is looking for
B) A symptom and a problem are one and a new job. Considering that she has two
the same. school-going children, she is particularly
C) Generally, what is a problem for one keen on finding an employer who can
manager is a problem for all other managers. provide her with alternative work
D) Effectively identifying problems is not arrangements such as flexible work hours
easy. and telecommuting. In terms of the
decision-making process, these represent
3) Sales of the high-end units have Amanda's ________.
declined. The owners want Arnold, the A) decision criteria
CEO, to increase revenues to previous B) problems
levels. His first action should be C) alternatives
________. D) heuristics
A) to identify previous sales levels
B) to determine why sales are off 8) Max is planning to go away to college
C) to compare costs for three new models next year and is currently trying to figure
under development out which colleges he should apply to. He
D) to immediately begin production on the would like to major in English Literature
lowest cost model at an accredited liberal arts college, but is
also looking for a university that offers
4) After identifying a problem, the next financial aid. In terms of the decision-
step in the decision-making process is making process, these represent Max's
________. ________.
A) identifying decision criteria A) problems
B) allocating weights to decision criteria B) alternatives
C) analyzing alternatives C) decision criteria
D) developing alternatives D) heuristics

5) Belinda wants to introduce a new 9) After identifying the decision criteria

model to the product line. Three models that are important or relevant to
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resolving a problem, the next step in the
decision-making process is ________. 14) Carla has identified several possible
A) allocating weights to the criteria sources for an unusual grain for her
B) analyzing the alternatives to solving the artisan bread. Now she is comparing
problem their prices, quality, and delivery times.
C) reducing the number of criteria through At what step is she in the decision-making
the process of elimination process?
D) implementing the alternative A) develop alternatives
B) analyze alternatives
10) Bryan must select a new supplier for C) select an alternative
lighting fixtures for his company's mobile D) implement the alternative
homes. He has decided quality is more
important than price but price is more 15) Which of the following is important in
important than lead times. Bryan will use effectively implementing the chosen
these priorities to ________. alternative in the decision-making
A) analyze alternatives process?
B) set his decision criteria A) evaluating each alternative by using the
C) allocate weights to the criteria established criteria
D) develop alternatives B) being creative while implementing the
alternatives
11) Creativity is most essential in which of C) allowing those impacted by the outcome
the following steps of the decision-making to participate in the process
process? D) ignoring criticism concerning your
A) analyzing alternatives chosen alternative
B) allocating weights to the decision criteria
C) developing alternatives 16) The final step in the decision-making
D) identifying decision criteria process is to ________.
A) determine the criteria for the next
12) Carla is searching the Internet for decision
sources for an unusual grain used in the B) analyze the process of allocating weights
production of an artisan bread. Carla is to the decision criteria
at the ________ step in the decision C) evaluate the outcome of the decision
making process. D) implement the chosen alternative
A) identify-the-problem
B) identify-decision-criteria 17) It is important for Diane to review the
C) allocate-weights results of her decision to increase
D) develop-alternatives production of Model 36CKTS because
________.
13) In the decision-making process, while A) she was unsure of her decision
________, the decision maker puts the B) she wants to impress her supervisor
decision into action by conveying it to C) results may vary from expectations
those affected by it and getting their D) she doesn't trust her subordinates to
commitment to it. maintain quality at the higher production
A) selecting an alternative levels
B) evaluating a decision's effectiveness
C) implementing an alternative 18) The decision-making process begins by
D) analyzing alternatives identifying decision criteria.
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Answer: FALSE process information
C) is unaware of all the possible alternatives
19) A decision criterion defines what is and consequences
important or relevant to resolving a problem. D) is fully objective and logical
Answer: TRUE
27) Abigail is shopping for a new copier
20) In the decision-making process, after for her company. She has set her price
allocating weights to the decision criteria, range between $5,000 and $6,000. The
the decision maker lists viable alternatives copier must handle a minimum of 10,000
that could resolve the problem. copies per month and have a useful life
Answer: TRUE expectancy of five years. If Abigail selects
the first copier she finds that meets these
21) Once the alternatives to solving a criteria, we would say she is ________.
problem have been identified, the next step A) using perfect rationality
in the decision-making process is selecting B) using bounded rationality
one of these alternatives. C) using intuition
Answer: FALSE D) satisficing

22) Implementing an alternative refers to the 28) When managers make decisions that
process of choosing the best alternative. are rational but limited by their ability to
Answer: FALSE process the information, they are
following the concept of ________.
24) Managers are assumed to use A) cognitive decision making
________ if they make logical and B) bounded rationality
consistent choices to maximize value. C) escalation of commitment
A) rational decision making D) intuitive decision making
B) intuitive decision making
C) bounded rationality 29) Evelyn's Internet search for
D) evidence-based management information about "vendor for machine
screws" yielded more than 100,000 items.
25) Dylan must choose among four Evelyn did not have time or resources to
candidates to fill his open accounting pursue each of these so she limited her
clerk position. If Dylan uses rational search to only vendors in her state. By
decision making, he will ________. doing this, Evelyn used ________.
A) disregard the fact the one of the A) perfect rationality
candidates is the owner's nephew B) bounded rationality
B) rely on his initial impressions of the C) satisficing
candidates to make this decision D) intuition
C) use his extensive experience and
accumulated judgment to make his decision 30) Managers cannot possibly analyze all
D) select the candidate who attended the information on all alternatives; they tend
college of his best worker to ________, rather than ________.
A) maximize; satisfice
26) It is assumed that a rational decision B) neutralize; satisfice
maker ________. C) satisfice; neutralize
A) faces unclear and ambiguous problems D) satisfice; maximize
B) is unlimited by his or her ability to
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31) ________ results in a solution that is B) quality-initiated decisions
considered "good enough." C) science-based decisions
A) Escalating D) programmed decisions
B) Linear thinking
C) Intuition 36) Intuitive decision making ________.
D) Satisficing A) is the systematic use of the best available
evidence to improve decision making
32) Julie is keen on joining Columbia practice
University to pursue a master's degree in B) generally results in poor decisions and
economics. However, after three months hence managers should learn to ignore their
of applying and waiting for an acceptance gut feelings
letter, she finally decides to attend NYU, C) is the process of making decisions based
which was one of her backup colleges. on experience, feelings, and accumulated
This is an example of ________. judgment
A) maximizing D) complements rational decision making
B) neutralizing but not bounded rational decision making
C) minimizing
D) satisficing 37) Gilda has an idea that would
streamline operations, reduce costs, and
33) Edgar hired a graduate from his alma increase profits. Her idea requires the
mater, thinking he would be a successful cooperation of several departments, some
first line supervisor. Unfortunately the of which have demonstrated a resistance
new hire hasn't worked out as well as to change. By considering the context in
hoped. Edgar decided to invest time and which the changes must happen and the
money in training for the new hire but people in her organization, Gilda is using
saw little improvement. Next he assigned ________.
a successful supervisor to mentor the A) evidence-based management
young employee. The problems persisted. B) bounded rationality
Edgar is displaying ________. C) intuition
A) bounded rationality D) positive employee relations
B) irrational behavior
C) poor judgment 38) Farrah has called together her
D) escalation of commitment management team to review information
about customer satisfaction gathered by
34) Farrell has a knack for selecting an external research company. Farrah is
candidates who become very successful engaging in ________.
workers. When asked how he does it, he A) perfect rationality
answered that he "listened to his gut." B) bounded rationality
Farrell is really ________. C) evidence-based management
A) using his intuition D) relationship management
B) using bounded rationality
C) using perfect rationality 39) One assumption of rational decision
D) satisficing making is that the decision maker is not
aware of all possible alternatives and
35) Which of the following is an aspect of consequences.
intuition? Answer: FALSE
A) experienced-based decisions
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40) According to the concept of bounded C) unstructured
rationality, managers make decisions D) programmed
rationally, but are limited by their ability to
process information. 50) Harriet's machine has stopped
Answer: TRUE working again. She consulted the
operator's manual troubleshooting guide
41) The phenomenon of escalation of to find a solution. Harriet used ________.
commitment refers to an increased A) a programmed decision
commitment to a previous decision despite B) a non-programmed decision
evidence that it may have been wrong. C) a structured decision
Answer: TRUE D) a non-structured decision

42) Intuitive decision making complements 51) A procedure ________.

rational decision making but not bounded A) is an explicit statement that tells a
rational decision making. manager what can or cannot be done
Answer: FALSE B) is a series of sequential steps a manager
uses to respond to a structured problem
C) is used mainly for unstructured, rather
46) ________ are straightforward, than structured, problems
familiar, and easily defined. D) is subject to the interpretation of the
A) Programmed problems decision maker
B) Structured problems
C) Non-structured problems 52) One of the workers in Henry's
D) Nonprogrammed problems department submitted his two weeks'
notice so Henry needs to hire a
47) Garrett looked at the list of orders for replacement. The HR department issued
the coming week and made out the a set of instructions Henry must follow to
production schedule. He has done this so initiate the search for candidates. In
many times he could do it in his sleep. other words, there is a ________ Henry
This situation represents ________. must follow.
A) a structured problem A) policy
B) an unstructured problem B) practice
C) a linear problem C) procedure
D) a programmed problem D) program

48) Structured problems align well with 53) A(n) ________ is an explicit statement
which type of decisions? that tells a manager what can or cannot
A) programmed be done.
B) analogous A) agenda
C) organic B) objective
D) nonlinear C) rule
D) solution
49) A(n) ________ decision is a repetitive
decision that can be handled by a routine 54) "All employees must be at their work
approach. stations and ready to work by the time
A) nonprogrammed the buzzer sounds." This is an example of
B) structured ________.
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A) a policy C) are accompanied by ambiguous or
B) a procedure incomplete information
C) a practice D) do not require the decision maker to go
D) a rule through an involved decision process

55) A policy ________. 60) After nearly 30 years of growth, sales

A) typically serves as a guideline for at Ida's company have begun to decline.
decision making by setting general None of the managers have been able to
parameters determine the cause. Some say the entire
B) specifically states what should or should economy is in recession; others blame a
not be done change in suppliers; still others say the
C) is a series of sequential steps a manager work ethic among employees just isn't
uses to respond to a structured problem what it used to be. This is an example of
D) is used when dealing with unstructured ________.
problems and non-programmed decisions A) a structured problem
B) an unstructured problem
56) "We expect to maintain the highest C) a programmed problem
standards of quality in our D) a non-programmed problem
workmanship." This is an example of
________. 61) Nonprogrammed decisions ________.
A) a procedure A) involve standardized solutions
B) a rule B) are usually made by lower-level
C) a policy managers
D) a practice C) are associated with clear and specific
goals
57) A(n) ________ typically contains an D) are unique and nonrecurring
ambiguous term that leaves interpretation
up to the decision maker. 62) When problems are ________,
A) rule managers must rely on ________ in order
B) procedure to develop unique solutions.
C) edict A) structured; nonprogrammed decision
D) policy making
B) structured; pure intuition
58) "Smoking and the consumption of C) unstructured; nonprogrammed decision
alcohol are strictly prohibited inside the making
work premises." This is most likely an D) unstructured; programmed decision
example of a(n) ________. making
A) rule
B) objective 63) Lower-level managers typically
C) procedure confront ________.
D) policy A) unstructured problems
B) new and unusual problems
59) Unstructured problems ________. C) programmed decisions
A) refer to the usual problems faced by D) nonprogrammed decisions
organizations
B) are generally solved using procedures, 64) Ian is a plant manager in a multi-site
rules, and policies corporation. He often deals with
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situations involving new customers and
new products. These are often ________. 69) In the late 1970s, Apple launched the
A) non-linear problems and risky decisions Apple computer for individual use. It
B) structured problems and programmed was a radical concept; there was no
decisions precedent for this type of product. Under
C) uncertain problems and linear decisions these circumstances, Apple faced a
D) unstructured problems and situation of ________.
unprogrammed decisions A) certainty
B) uncertainty
65) ________ is a situation where a C) risk
manager has the ability to make accurate D) necessity
decisions because the outcome of every
alternative is known. 70) Which of the following best describes
A) Certainty the psychological orientation of an
B) Risk individual making a "maximax" choice?
C) Bureaucracy A) optimist
D) Contingency B) cynic
C) pessimist
66) It is time for Jane to order aluminum D) defeatist
tubing again. She typically orders from
one of three vendors. She knows the 71) James has calculated the possible
price, delivery time, and quality of each profits from three different scenarios for
vendor. In this situation, Jane has the expansion of his recreation park, each
________. for a different amount of advertising and
A) certainty promotion. He has chosen to implement
B) uncertainty the scenario that offers the greatest profit.
C) risk James has decided to ________.
D) structure A) maximax
B) maximin
67) The manager of an apparel store C) minimax
estimates how much to order for the D) minimin
current spring season based on last
spring's sales figures. The store manager 72) What is the psychological orientation
is operating under which of the following of a decision maker who makes a
decision-making conditions? "maximin" choice?
A) uncertainty A) optimist
B) risk B) realist
C) structure C) pessimist
D) certainty D) idealist

68) ________ is a situation in which a 73) Depending on the weather and the
decision maker cannot make reasonable amount of advertising, Kyle has
probability estimates. developed six scenarios for his summer
A) Necessity profits from his lawn care business. His
B) Risk business has failed to reach his
C) Uncertainty expectations in the past, so he fears the
D) Certainty worst. Kyle will likely choose the option
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that ________. D) programmed
A) maximizes the maximum possible payoff
B) maximizes the minimum possible payoff 84) Before making a decision, Kathryn
C) minimizes the maximum regret gathers as much information as she can
D) minimizes the minimum losses then analyzes it to check for trends and
patterns. Kathryn prefers ________.
74) A programmed decision is a repetitive A) linear thinking
decision that can be handled by a routine B) non-linear thinking
approach. C) intuitive thinking
Answer: TRUE D) judgmental thinking
85) Rules of thumb that managers use to
75) Rules and procedures are the same. simplify decision making are known as
Answer: FALSE ________.
A) heuristics
76) A policy is an explicit statement that B) folksonomies
tells a manager what can or cannot be done. C) algorithms
Answer: FALSE D) sophisms

77) Nonprogrammed decision making relies 86) Lucas always seems to "know"
on procedures, rules, and policies. exactly what to do in any given situation.
Answer: FALSE At least that's what he'll tell you. But his
ideas don't always work and his overall
78) Risk is the condition in which a decision performance as scored by his supervisor
maker is able to estimate the likelihood of isn't nearly as great as he thinks it is.
certain outcomes. Lucas is exhibiting the ________.
Answer: TRUE A) selective perception bias
B) the anchoring effect
82) The ________ thinking style is C) self-serving bias
characterized by a person's preference D) overconfidence bias
for using external data and facts and
processing this information through 87) Many new car buyers choose to buy a
rational, logical thinking to guide car with little or no money down and
decisions and actions. payments for many years because of the
A) linear ________.
B) non-linear A) overconfidence bias
C) programmed B) immediate gratification bias
D) non-programmed C) framing bias
D) availability bias
83) The ________ thinking style is
characterized by a preference for internal 88) The ________ describes how decision
sources of information and processing makers fixate on initial information as a
this information with internal insights, starting point and then, once set, fail to
feelings, and hunches to guide decisions adequately adjust for subsequent
and actions. information.
A) non-programmed A) anchoring effect
B) nonlinear B) selective perception effect
C) linear C) confirmation bias
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D) framing bias B) selective perception bias
C) confirmation bias
89) Sophie is in charge of recruitment at D) hindsight bias
her company. During a particular
interview, the first thing Sophie noticed 93) The ________ occurs when decision
about the applicant was that he was makers select and highlight certain
improperly attired. Though the candidate aspects of a situation while excluding
possessed the necessary qualifications and others.
effectively answered all her questions, A) framing bias
Sophie rejected him. This is an example of B) availability bias
the ________. C) representation bias
A) availability bias D) confirmation bias
B) self-serving bias
C) anchoring effect 94) It hasn't rained in several days;
D) confirmation bias therefore it is unlikely to rain today. This
is an example of the ________.
90) Lila believes the global climate is A) self-serving bias
changing. Every storm, every volcano B) availability bias
eruption, every earthquake is, in her C) representation bias
mind, evidence of this climate change. D) randomness bias
Lila has fallen victim to ________.
A) framing bias 95) The premier of Transylvania prefers
B) selective perception bias darkened rooms, flinches in bright light,
C) confirmation bias and has unusually long incisors. His
D) representation bias political opponents claim he is a vampire.
This is an example of the ________.
91) When decision makers seek out A) representation bias
information that reaffirms their past B) confirmation bias
choices and discount information that C) selective perception bias
contradicts past judgments, they are D) randomness bias
exhibiting the ________.
A) hindsight bias 96) Whenever anyone praises Mark for
B) availability bias his good performance, he has the
C) representation bias tendency to attribute his success to his
D) confirmation bias personal qualities such as his ability to
thrive under pressure and his eye for
92) Mildred was persuaded by a fast- detail. However, any negative
talking salesperson to carry an expensive performance feedback is always met with
brand of yarns in her retail needlecraft excuses such as unsupportive team
shop. Seldom does a customer buy this members or insufficient time. This is an
brand, but on those rare occasions example of the ________.
Mildred tells herself she made the right A) self-serving bias
decision. The yarns have been sitting on B) confirmation bias
the shelf for several months and she has C) representation bias
yet to profit from them. Mildred suffers D) hindsight bias
from the ________.
A) immediate gratification bias 97) "There are no coincidences. If
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something bad has happened to you, you
must have done something to deserve it." 104) A few decades ago, Walmart opened
This statement might be made by stores in Germany. After a few years, it
someone with the ________. closed all of them. The shopping habits of
A) framing bias Europeans differed so much from that of
B) self-serving bias Americans that the stores could not
C) availability bias become profitable. What was Walmart's
D) randomness bias mistake?
A) It did not understand cultural differences.
98) "We can't stop now. We've already B) It did not create standards for good
invested $100,000 in the project." This decision making.
speaker is acting on the ________. C) It did not know when it was time to call it
A) anchoring effect quits.
B) availability bias D) It did not use an effective decision-
C) representation bias making process.
D) sunk costs error
105) To make effective decisions in
99) Martie had arranged for a high- today's fast-moving world, managers
profile speaker to deliver the keynote need to ________.
address at her college's annual function. A) build organizations that shun complexity
However, due to unforeseen B) know when it is time to call it quits
circumstances, the speaker was forced to C) ignore cultural differences
drop out at the last moment. Martie D) build organizations that rely on their past
reacts to this news by saying, "I knew all successes
along that this would happen." This is an
example of the ________. 106) An effective decision-making process
A) anchoring effect ________.
B) availability bias A) focuses on matters of importance
C) self-serving bias B) focuses on consistency more than logic
D) hindsight bias C) avoids subjective and intuitive thinking
D) is complex but reliable
100) The anchoring effect describes when
decision makers fixate on initial information 107) Design thinking suggests that
as a starting point and then, once set, fail to managers should look at problem
adequately adjust for subsequent identification collaboratively and
information. integratively with the goal of ________.
Answer: TRUE A) unveiling a rational approach to address
the situation
101) The availability bias describes the B) analyzing the situation with deductive
actions of decision makers who try to create reasoning
meaning out of random events. C) developing solutions which somehow
Answer: FALSE seem inevitable
D) gaining a deep understanding of the
102) The sunk costs error occurs when situation
decision makers forget that current choices
cannot correct the past.
Answer: TRUE
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