CHAPTER 9: MANAGERIAL DECISION MAKING

Managers are often referred to as:

A. decision makers.
B. peace makers.
C . conflict creators.
D an unnecessary layer of employees.
E . profit suppressor.
_____ is a vital part of good management because decisions determine how the
organization solves its problems, allocates resources, and accomplishes its goals.
A. Organizing
B. Competitive visioning
C. Proper alignment
D. Good decision making
E. Leadership
Which of the following is a choice made from available alternatives?
A. Decision
B. Plan
C. Goal
D. Tactic
E. Strategy

Mark, a production manager at Kaylie's Kookware, recently chose to schedule

his workers to work overtime. His alternative was to hire more workers. He is
now monitoring the consequences of his choice. This is an example of _____.
A. planning
B. decision making
C . organizing
D . controlling
E leading
_____ refers to the process of identifying problems and then resolving them.
A. Organizing
B . Controlling
C Decision making
D . Planning
E . Leading
_____ decisions are associated with decision rules.
A. Non programmed
B . Unique
C. Programmed
D. Illustructured
E. Novel

Programmed decisions are made in response to _____ organizational problems.

A. unusual
B . recurring
C. Significant
D. Minor
E. Unique

Bierderlack has a policy that states that more than three absences in a six-month
period shall result in a suspension. Colleen, the manager, has just decided to
suspend one of her shift employees for violating this policy. This is an example of:
A. a programmed decision.
B . a nonprogrammed decision.
C . an insignificant decision.
D poor management.
E . personal grudge.
Nordstrom Department store's "No questions asked - Return's Policy" is an
example of a(n):
A. programmed decision.
B. nonprogrammed decision
C. novel decision.
D . poor management.
E . unstructured decision.
If your instructor has an attendance policy, she/he
is using a(n)
A. programmed decision.
B. unique approach.
C . condition of ambiguity.
D. nonprogram med decision.
E . none of these.
Nonprogrammed decisions are made in response to
situations that are:
A. unique.
B. unstructured.
C. important to the organization.
D. all of these
E . unique and important to the organization.
Good examples of _____ decisions are strategic decisions.
A. non programmed
B . programmed
C . insignificant
D . recurring
E . structured
When a small community hospital decides to add a radiation therapy unit, it is
considered a:
A. program med decision .
B . structured decision.
C . nonprogrammed decision.
D . poor management decision.
E . certainty decision.
Two area banks, Bank A and Bank B, decided to merge their operations. This is
an example of a:
A. programmed decision.
B.
nonprogrammeddecision.
C. decision rule.
D . structured decision.
E . bad community decision.
At the start of every shift, Carl, a delivery truck driver, plans out his route based
on the addresses that he will be visiting to drop off packages. This can best be
described as what kind of decision?
A. Programmed
B Nonprogrammed
C . Wicked
D . Administrative

E . Intuitive

Associated with the condition of _____ is the lowest possibility of failure.

A. ambiguity
B . uncertainty
C . certainty
D. risk
E . all of these
Which of the following means that all the information the decision-maker needs
is fully available?
A. Certainty
B. Risk
C . Uncertainty
D . Ambiguity
E . None of these
Bobby, a product manager, wants to increase the market share of his product. He
is unsure about how to go about it, not knowing for sure how costs, price, the
competition, and the quality of his product will interact to influence market
share. Bobby is operating under a condition of _____.
A. risk
B . ambiguity
C. certainty
D . uncertainty
E. brainstorming
Under conditions of _____, statistical analyses are useful.
A. certainty
B . ambiguity
C. risk
D . uncertainty
E . conflict
Which of the following means that a decision has clear-cut goals and that good
information is available, but the future outcomes associated with each alternative
are subject to chance?
A. Certainty
B. Risk
C . Uncertainty
D . Ambiguity
E . Brainstorming
_____ means that managers know which goals they wish to achieve, but
information about alternatives and future events is incomplete.
A. Certainty
B. Risk
C. Uncertainty
D. Ambiguity
E. Advocacy
When managers know which goals they wish to achieve, but information about
alternatives and future events is incomplete, the condition of _____ exists.
A. risk
B . uncertainty

C. ambiguity

D. certainty
E. problematic
Which of the following has the highest possibility of failure?
A. The condition of certainty
B The condition of ambiguity
CThe condition of uncertainty
D The condition of
risk
E . All of these
The four positions on the possibility of failure scale include certainty, risk,
ambiguity, and _____.
A. uncertainty
B . conflict
C . necessity
D . indecision
E . possibility
_____ is by far the most difficult situation for a decision-maker.
A. Certainty
B. Risk
C . Uncertainty
D . Ambiguity
E . Brainstorming
Which of the following means that the goals to be achieved or the problem to be
solved is unclear, alternatives are difficult to define, and information about
outcomes is unavailable?
A. Certainty
[Link]
C . Uncertainty
D . Ambiguity
E . Brainstorming
The condition under which ambiguity
occurs is when:
A. alternatives are difficult to define.
B . objectives are well defined.
C information about outcomes is readily available.
D . all the alternatives are known.
E . decisions are already made
_____ decisions are associated with conflicts over goals and decision alternatives,
rapidly changing circumstances, fuzzy information, and unclear links among
decision elements.
A. Nonprogrammed
 B . Programmed
C . Wicked
D . Conventional
E . Irrational
During the fallout of the global financial crisis of the late 2000s, finance
companies had to make important decisions in a highly ambiguous environment.
The decision to buyout failed banks could best be described as what type of
decision?
A. Bounded
B. Programmed
C . Conventional
D . Wicked decision problem
E . Irrational decision
Riley is a manager at the Tinker Tools. She is expected to make decisions that are
in the organization's best economic interests. Her decisions should be based on
which of the following models?
A. The administrative model of decision making
B . The garbage can model of decision making
C . The scientific management model of decision making
D . The classical model of decision making
E . The humanistic model of decision making
Which of these assumptions are included in the classical model of
decision making? A. Problems are unstructured and ill defined.
B. The decision-maker strives for conditions of certainty.
C . Criteria for evaluating alternatives are unknown.
DThe decision-maker selects the alternatives that will minimize the economic return
to the organization.
E . The situation is always uncertain.
All of the following are characteristics of the classical decision making
model except:
A. clear-cut problems and goals.
B. conditions of certainty.
C . rational choice by individual for maximizing outcomes.
D . limited information about alternatives and their outcomes.
E . all of these are characteristics of classical decision making model.
The _____ model of decision making is most valuable when applied to _____.
A. administrative; programmed decisions
B . classical; nonprogrammed decisions
C . classical; programmed decisions
D . classical; ambiguous decisions
 E . administrative; structured decisions
Which model of decision making is associated with satisficing, bounded
rationality, and uncertainty?
A. Classical
B. Administrative
C . Quantitative
D . Rational
E . Political
The _____ model of decision making describes how managers actually makes
decisions in situations characterized by nonprogrammed decisions, uncertainty,
and ambiguity.
A. normative
B . classical
C . administrative
D. scientific management
E . objective
The concept that people have the time and cognitive ability to process only a
limited amount of information on which to base decisions is known as:
A. satisficing.
B . bounded rationality.
C Classical model of decision making.
D . normative approach.
E . scientific approach.

Melissa is a manager at InStylez Clothing. Her job is very complex and she feels
that she does not have enough time to identify and/or process all the information
she needs to make decisions. Melissa's situation is most consistent with which of
the following concepts?
A. Bounded rationality
B The classical model of decision making
C. Satisficing
D. Brainstorming
E . Scientific management
The essence of _____ is to choose the first solution available.
A. bounded rationality
B. creativity
C. decision maximization
D. satisficing
E . the classical model of decision making
Most managers settle for a _____ rather than a _____ solution.
A. minimizing; maximizing
B . satisficing; maximizing
C . top-level; bottomline
D . maximizing; satisficing
E E . challenging; simple
All of the following are characteristics of the administrative decision making
model except: A. vague problem and goals.
B. conditions of certainty.
C . limited information about alternatives and their
outcomes. D. satisfying choice.
E . all of these are characteristics of administrative decision making model.
The _____ model of decision-making is useful for making nonprogrammed
decisions when conditions are uncertain, information is limited, and there are
managerial conflicts about what goals to pursue or what course of action to take.
A. classical
B . functional
C . bureaucratic
D. political
E . administrative
The _____ model closely resembles the real environment in which most managers
and decisionmakers operate.
A. normative
B . administrative
C . descriptive
D . classical
E . political
Jefferson Inc. is an information technology consulting firm located in
Washington D.C. Decisions at Jefferson are complex and involve many people,
with a significant amount of disagreement and conflict. Which decision-making
model fits best for this organization?
A. Political
B . Functional
C . Classical
D . Administrative
All of these are basic assumptions of the political model except:
A. organizations are made up of groups with diverse interests, goals, and values.
B. information is clear and complete.
C. managers do not have the time, resources, or mental capacity to identify all
dimensions of theproblem.
D . managers engage in the push and pull of debate to decide goals and discuss
alternatives.
E . all of these are basic assumptions of the political model.
Shirley works in the human resource department at Turtle Shells, Inc. She
believes she is seeing an increase in drinking problems among the workforce. She
thinks she needs to investigate further. She is at what stage of the managerial
decision making process?
A. Diagnosis and analysis of causes
B . Development of alternatives
C . Recognition of decision requirement
D . Evaluation and feedback
E . Selection of desired alternatives
_____ is the step in the decision-making process in which managers analyze
underlying causal factors associated with the decision situation.
A. Analysis
B.​ Diagnosis
C. Recognition
D. Judgement
E. Identification
is the first step in the managerial decision making process?
A. Evaluation and feedback
B . Development of alternatives
C . Recognition of decision requirement
D . Diagnosis and analysis of causes
E . Selection of desired alternatives
_____ is the last step in the decision making process.
A. Evaluation and feedback
B . Development of alternatives
C . Implementation of chosen alternative
D . Selection of desired requirement
E . Recognition of decision requirement
"When did it occur" and "how did it occur" are questions associated with which
step of the decision making process?
A. Diagnosis and analysis of causes
B. Recognition of decision requirement
C. Development of alternatives
D. Selection of desired alternative
E . None of these
When managers ask questions such as “What is the state of disequilibrium
affecting us?”, they are in which stage of the managerial decision-making
process?
A. Selection of a desired alternative
B . Development of alternatives
C . Diagnosis and analysis of causes
D . Recognition of decision requirement
E . Evaluation and feedback
The decision-maker must _____ once the problem has been recognized and
analyzed.
A. evaluate and provide feedback
B . choose among alternatives
C . generate alternatives
D . prioritize the alternatives
E . reanalyze the problem
Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in
an environment of high uncertainty. As a result, Ryan will:
A. most likely be making programmed decisions.
B . probably have an easy time generating alternatives.
C . probably have a difficult time generating alternatives.
D . most likely rely on the classical model of decision making.
E . wait until environment becomes certain.
Once the desired alternative is developed, it should be _____.
A. analyzed
B . evaluated
C . selected
D . recognized
E . identified
The _____ step in the decision making process involves using managerial,
administrative, and persuasive abilities to translate the chosen alternative into
action.
A . recognition
B . analysis
C . evaluation
D . implementation
E . feedback
Genna is collecting data on how well the organization has done since their new
strategy was implemented. She is in what stage of the managerial decision
making process?
A. The generation of alternatives
 B . Implementation of the chosen alternative
C . Evaluation and feedback
D . Recognition of the decision requirement
E . Selection of desired alternative
Which style is used by people who prefer simple, clear-cut solutions
to problems?
A. Behavioral
B . Conceptual
C . Directive
D . Analytical
E E . Classical
Research has identified four major decision styles. These include all of the
following except _____.
A. behavioral
B . conceptual
C . analytical
D . authoritative
E . directive
Managers are considered to have a(n) _____ style when they prefer to consider
complex solutions based on as much data as they can gather.
A. behavioral
B . conceptual
C . directive
D . analytical
E E . classical
Which of these styles is adopted by managers who have a deep concern for others
as individuals?
A. Behavioral
B . Classical
C . Analytic
D . Logical
E . Conceptual
People with a(n) _____ style usually are concerned with the personal
development of others and may make decisions that help others achieve their
goals.
A. classical
B . analytic
C. logical
D . behavioral