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Management, 10e (Robbins)Chapter 6 Managers as Decision Makers30) Decision making is typically described as _, which is a view that is too simplistic.A) deciding what is correctB) putting preferences on paperC) choosing among alternativesD) processing information to completionAnswer: CDiff: 2 Page Ref: 121Topic: The Decision-Making Process31) A series of eight steps that begins with identifying a problem and concludes with evaluating the decisions effectiveness is the _.A) decision-making processB) managerial processC) maximin styleD) bounded rationality approachAnswer: ADiff: 1 Page Ref: 121Topic: The Decision-Making Process32) _ is the existence of a discrepancy between an existing and a desired state of affairs.A) An opportunityB) A solutionC) A weaknessD) A problemAnswer: DDiff: 1 Page Ref: 121Topic: The Decision-Making Process33) In identifying the problem, a manager _.A) compares the current state of affairs with where they would like to beB) expects problems to be defined by neon lightsC) looks for discrepancies that can be postponedD) will not act when there is pressure to make a decisionAnswer: ADiff: 1 Page Ref: 122Topic: The Decision-Making Process34) 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.Answer: DDiff: 2 Page Ref: 122Topic: The Decision-Making Process35) What is the second step in the decision-making process?A) identifying decision criteriaB) allocating weights to the criteriaC) analyzing alternativesD) identifying a problemAnswer: ADiff: 2 Page Ref: 122Topic: The Decision-Making Process36) To determine the _, a manager must determine what is relevant or important to resolving the problem.A) geocentric behavior neededB) number of allowable alternativesC) weighting of decision criteriaD) decision criteriaAnswer: DDiff: 2 Page Ref: 122Topic: The Decision-Making Process37) What is the third step in the decision-making process?A) allocating weights to the criteriaB) analyzing the alternativesC) selecting the best alternativeD) implementing the alternativeAnswer: ADiff: 2 Page Ref: 122Topic: The Decision-Making Process38) If all criteria in the decision making are equal, weighting the criteria _.A) improves decision making when large numbers of criteria are involvedB) is not neededC) produces excellent decisionsD) improves the criteriaAnswer: BDiff: 3 Page Ref: 122Topic: The Decision-Making Process39) In allocating weights to the decision criteria, which of the following is helpful to remember?A) All weights must be the same.B) The total of the weights should sum to 1.0.C) Every factor criterion considered, regardless of its importance, must receive some weighting.D) Assign the most important criterion a score, and then assign weights against that standard.Answer: DDiff: 3 Page Ref: 122Topic: The Decision-Making Process40) What is the step where a decision maker wants to be creative in coming up with possible alternative?A) allocating weights to the criteriaB) analyzing alternativesC) developing alternativesD) identifying decision criteriaAnswer: CDiff: 1 Page Ref: 123Topic: The Decision-Making Process41) When analyzing alternatives, what becomes evident?A) the strengths and weaknesses of each alternativeB) the weighting of alternativesC) the list of alternativesD) the problemAnswer: ADiff: 1 Page Ref: 123Topic: The Decision-Making Process42) When developing alternatives in the decision-making process, what must a manager do?A) list alternativesB) evaluate alternativesC) weight alternativesD) implement alternativesAnswer: ADiff: 2 Page Ref: 123Topic: The Decision-Making Process43) Selecting an alternative in the decision-making process is accomplished by _.A) choosing the alternative with the highest scoreB) choosing the one you like bestC) selecting the alternative that has the lowest priceD) selecting the alternative that is the most reliableAnswer: ADiff: 1 Page Ref: 123Topic: The Decision-Making Process44) In Step 6 of the decision-making process, each alternative is evaluated by appraising it against the _.A) subjective goals of the decision makerB) criteriaC) assessed valuesD) implementation strategyAnswer: BDiff: 2 Page Ref: 123Topic: The Decision-Making Process45) _ includes conveying a decision to those affected and getting their commitment to it.A) Selecting an alternativeB) Evaluating the decision effectivenessC) Implementing the alternativesD) Analyzing alternativesAnswer: CDiff: 2 Page Ref: 123Topic: The Decision-Making Process46) Which of the following is important in effectively implementing the chosen alternative in the decision-making process?A) getting upper-management supportB) double-checking your analysis for potential errorsC) allowing those impacted by the outcome to participate in the processD) ignoring criticism concerning your chosen alternativeAnswer: CDiff: 2 Page Ref: 123-124Topic: The Decision-Making Process47) The final step in the decision-making process is to _.A) pick the criteria for the next decisionB) reevaluate the weightings of the criteria until they indicate the correct outcomeC) evaluate the outcome of the decisionD) reassign the ratings on the criteria to find different outcomesAnswer: CDiff: 2 Page Ref: 124Topic: The Decision-Making Process48) Which of the following is important to remember in evaluating the effectiveness of the decision-making process?A) You should ignore criticism concerning the decision-making process.B) You may have to start the whole decision process over.C) You will have to restart the decision-making process if the decision is less than 50 percent effective.D) Ninety percent of problems with decision making occur in the implementation step.Answer: BDiff: 3 Page Ref: 124Topic: The Decision-Making Process49) Managers are assumed to be _; they make consistent, value-maximizing choices within specified constraints.A) rationalB) leadersC) organizedD) satisficersAnswer: ADiff: 1 Page Ref: 124Topic: Decision-Making Styles50) It is assumed that a perfectly rational decision maker _.A) does not follow rational assumptionsB) does not consider value maximizing as an objectiveC) offers inconsistent decisionsD) would be objective and logicalAnswer: DDiff: 2 Page Ref: 124Topic: Decision-Making Styles51) Managers can make rational decisions if _.A) the problem is ambiguousB) the goals are unclearC) the alternatives are limitedD) time constraints existAnswer: CDiff: 3 Page Ref: 124Topic: Decision-Making Styles52) Which of the following is not a valid assumption about rationality?A) The problem is clear and unambiguous.B) A single, well-defined goal is to be achieved.C) Preferences are clear.D) Preferences are constantly changing.Answer: DDiff: 3 Page Ref: 124Topic: Decision-Making Styles53) When managers circumvent the rational decision-making model and find ways to satisfice, they are following the concept of _.A) jurisprudenceB) bounded rationalityC) least-squared exemptionsD) self-motivated decisionsAnswer: BDiff: 2 Page Ref: 125Topic: Decision-Making Styles54) Because managers cant possibly analyze all information on all alternatives, managers _, rather than _.A) maximize; satisficeB) maximize; minimizeC) satisfice; minimizeD) satisfice; maximizeAnswer: DDiff: 2 Page Ref: 125Topic: Decision-Making Styles55) The type of decision making in which the solution is considered good enough is known as _.A) intuitionB) satisfyingC) maximizingD) satisficingAnswer: DDiff: 2 Page Ref: 125Topic: Decision-Making Styles56) When a decision maker chooses an alternative under perfect rationality, she _ her decision, whereas under bounded rationality she chooses a _ decision.A) minimizes; satisficingB) satisfices; maximizingC) maximizes; satisficingD) maximizes; minimizingAnswer: CDiff: 3 Page Ref: 125Topic: Decision-Making Styles57) An increased commitment to a previous decision despite evidence that it may have been wrong is referred to as _.A) economies of commitmentB) escalation of commitmentC) dimensional commitmentD) expansion of commitmentAnswer: BDiff: 2 Page Ref: 126Topic: Decision-Making Styles58) Intuitive decision making is _.A) not utilized in organizationsB) a conscious process based on accumulated judgmentC) making decisions based on experience, feelings, and accumulated judgmentD) important in supporting escalation of commitmentAnswer: CDiff: 2 Page Ref: 126Topic: Decision-Making Styles59) In studying intuitive decision making, researchers have found that _.A) managers do not make decisions based on feelings or emotionsB) managers use data from their subconscious mind to help make their decisionsC) rational thinking always works better than intuitiveD) accumulated experience does not support intuitive decisionsAnswer: BDiff: 2 Page Ref: 126Topic: Decision-Making Styles60) All of the following are aspects of intuition except _.A) experienced-based decisionsB) affect-initiated decisionsC) cognitive-based decisionsD) programmed decisionsAnswer: DDiff: 1 Page Ref: 127Topic: Decision-Making Styles61) _ are straightforward, familiar, and easily defined.A) Unstructured problemsB) Structured problemsC) Unique problemsD) Nonprogrammed problemsAnswer: BDiff: 2 Page Ref: 127Topic: Types of Decisions and Decision-Making Conditions62) Structured problems align well with which type of decision making?A) programmedB) satisficingC) intuitionD) gut feelingAnswer: ADiff: 2 Page Ref: 127Topic: Types of Decisions and Decision-Making Conditions63) _ decision making is relatively simple and tends to rely heavily on previous solutions.A) NonprogrammedB) LinearC) SatisficingD) ProgrammedAnswer: DDiff: 2 Page Ref: 127Topic: Types of Decisions and Decision-Making Conditions64) A procedure _.A) is an explicit statement detailing exactly how to deal with a decisionB) is a series of interrelated sequential steps to respond to a structured problemC) is a set of guidelines that channel a managers thinking in dealing with a problemD) allows a manager to use broad decision-making authorityAnswer: BDiff: 2 Page Ref: 127Topic: Types of Decisions and Decision-Making Conditions65) A _ is an explicit statement that tells a manager what he or she can or cannot do.A) procedureB) policyC) ruleD) solutionAnswer: CDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions66) A policy _.A) typically contains an ambiguous termB) is used frequently when a manager faces a structured problemC) allows little discretion on the part of the managerD) offers strict rules as to how a problem should be solvedAnswer: ADiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions67) What is a difference between a policy and a rule?A) A policy establishes parameters.B) A rule establishes parameters.C) A policy is more explicit.D) A rule is more ambiguous.Answer: ADiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions68) A _ typically contains an ambiguous term that leaves interpretation up to the decision maker.A) systemB) ruleC) solutionD) policyAnswer: DDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions69) A business schools statement that it strives for productive relationships with local organizations is an example of a _.A) ruleB) policyC) procedureD) commitmentAnswer: BDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions70) Unstructured problems _.A) are easily solvedB) present familiar circumstancesC) force managers to deal with incomplete or ambiguous informationD) are routineAnswer: CDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions71) Nonprogrammed decisions are best described as _.A) recurring, but difficult to makeB) very similar to problems in other areas of the organizationC) requiring more aggressive action on the decision makers thought processesD) unique and nonrecurringAnswer: DDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions72) When problems are _, managers must rely on _ in order to develop unique solutions.A) structured; nonprogrammed decision makingB) structured; pure intuitionC) unstructured; nonprogrammed decision makingD) unstructured; programmed decision makingAnswer: CDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions73) Lower-level managers typically confront what type of decision making?A) uniqueB) nonroutineC) programmedD) nonprogrammedAnswer: CDiff: 2 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions74) Which of the following is likely to make the most programmed decisions?A) the CEO of PepsiCoB) the vice president of General Motors Cadillac DivisionC) the head of the Minute Maid Division at Coca-ColaD) the manager of the local McDonaldsAnswer: DDiff: 1 Page Ref: 128Topic: Types of Decisions and Decision-Making Conditions75) _ is a situation in which a manager can make accurate decisions because the outcome of every alternative is known.A) CertaintyB) RiskC) UncertaintyD) MaximaxE) MaximinAnswer: ADiff: 1 Page Ref: 129Topic: Types of Decisions and Decision-Making Conditions76) If an individual knows the price of three similar cars at different dealerships, he or she is operating under what type of decision-making condition?A) riskB) uncertaintyC) certaintyD) factualAnswer: CDiff: 1 Page Ref: 129Topic: Types of Decisions and Decision-Making Conditions77) A retail clothing store manager who estimates how much to order for the current spring season based on last springs outcomes is operating under what kind of decision-making condition?A) seasonalB) riskC) uncertaintyD) certaintyAnswer: BDiff: 3 Page Ref: 129Topic: Types of Decisions and Decision-Making Conditions78) _ is a situation in which a decision maker has neither certainty nor reasonable probability estimates available.A) CertaintyB) RiskC) UncertaintyD) MaximaxAnswer: CDiff: 1 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions79) Nonprogrammed decisions are typically made under a condition of _.A) certaintyB) low levels of riskC) uncertaintyD) reliabilityAnswer: CDiff: 3 Page Ref: 129Topic: Types of Decisions and Decision-Making Conditions80) A person at a horse racetrack who bets all of his or her money on the odds-based long shot to win (rather than place or show) is making what kind of choice?A) maximaxB) maximinC) minimaxD) miniminAnswer: ADiff: 2 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions81) What best describes the psychological orientation of an individual making a maximax choice?A) optimistB) realistC) pessimistD) satisficerAnswer: ADiff: 2 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions82) Optimistic managers could be expected to utilize their maximax orientation when they _.A) maximize the maximum payoffB) maximize the minimum payoffC) minimize the maximum regretD) minimize the minimum regretAnswer: ADiff: 1 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions83) What is the psychological orientation of a decision maker who makes a maximin choice?A) optimistB) realistC) pessimistD) satisficerAnswer: CDiff: 2 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions84) Which of the following best describes maximizing the minimum possible payoff?A) maximaxB) maximinC) minimaxD) miniminAnswer: BDiff: 2 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions85) A manager who desires to minimize his or her maximim regret will opt for a _ choice.A) maximaxB) maximinC) minimaxD) miniminAnswer: CDiff: 2 Page Ref: 130Topic: Types of Decisions and Decision-Making Conditions86) Many managers use _ or rules of thumb to simplify their decision making.A) heuristicsB) biasesC) errorsD) habitsAnswer: ADiff: 1 Page Ref: 133Topic: Decision-Making Styles87) When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting _.A) self-serving biasB) the anchoring effectC) immediate gratification biasD) overconfidence biasAnswer: DDiff: 1 Page Ref: 133Topic: Decision-Making Styles88) When de
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