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Chapter6DecisionMaking:TheEssenceoftheManager’sJob

True/FalseQuestions

THEDECISION-MAKINGPROCESS

Problemidentificationispurelyobjective.

Thesecondstepinthedecision-makingprocessisidentifyingaproblem.

Adecisioncriteriondefineswhatisrelevantinadecision.

Thefourthstepofthedecision-makingprocessrequiresthedecisionmakertolistviablealternativesthatcouldresolvetheproblem.

Oncethealternativeshavebeenidentified,adecisionmakermustanalyzeeachone.

Thestepinthedecision-makingprocessthatinvolveschoosingabestalternativeistermedimplementation.

THEMANAGERASDECISIONMAKER

Makingdecisionsiswiththeessenceofmanagement.

Managerialdecisionmakingisassumedtoberational.

Oneassumptionofrationalityisthatwecannotknowallofthealternatives.

Managerstendtooperateunderassumptionsofboundedrationality.

StudiesoftheeventsleadinguptotheChallengerspaceshuttledisasterpointtoanescalationofcommitmentbydecisionmakers.

Managersregularlyusetheirintuitionindecisionmaking.

Rationalanalysisandintuitivedecisionmakingarecomplementary.

Programmeddecisionstendtoberepetitiveandroutine.

Rulesandpoliciesarebasicallythesame.

Apolicyisanexplicitstatementthattellsamanagerwhatheorsheoughtoroughtnottodo.

Thesolutiontononprogrammeddecisionmakingreliesonprocedures,rules,andpolicies.

Mostmanagerialdecisionsintherealworldarefullynonprogrammed.

Theidealsituationformakingdecisionsislowrisk.

Riskistheconditioninwhichthedecisionmakerisabletoestimatethelikelihoodofcertainoutcomes.

Riskisasituationinwhichadecisionmakerhasneithercertaintynorreasonableprobabilityestimates.

Peoplewhohavealowtoleranceforambiguityandarerationalintheirwayofthinkingaresaidtohaveadirectivestyle.

Decisionmakerswithananalyticstylehaveamuchlowertoleranceforambiguitythandodirectivetypes.

Individualswithaconceptualstyletendtobeverybroadintheiroutlookandwilllookatmanyalternatives.

Behavioral-styledecisionmakersworkwellwithothers.

Mostmanagershavecharacteristicsofanalyticdecisionmakers.

Accordingtotheboxedfeature,“ManagingWorkforceDiversity,”diverseemployeestendtomakedecisionsfasterthanahomogeneousgroupofemployees.

Theanchoringeffectdescribeswhendecisionmakersfixateoninitialinformationasastartingpointandthen,onceset,theyfailtoadequatelyadjustforsubsequentinformation.

Theavailabilitybiasdescribeswhendecisionmakerstrytocreatemeaningoutofrandomevents.

Thesunkcosterroriswhendecisionmakersforgetthatcurrentchoicescannotcorrectthepast.

DECISIONMAKINGFORTODAY’SWORLD

Today’sbusinessworldrevolvesaroundmakingdecisions,usuallywithcompleteoradequateinformation,andunderminimaltimepressure.

Managersneedtounderstandculturaldifferencestomakeeffectivedecisionsintoday’sfast-movingworld.

Accordingtotheboxedfeature,“FocusonLeadership,”whenidentifyingproblems,managersmightbefromaculturethatisfocusedonproblemsolving,ortheirculturemightbeoneofsituationacceptance.

Accordingtotheboxedfeature,“FocusonLeadership,”findingsfromstudiesbyGeertHofstedeandfromGLOBEresearchersshowthatinhighuncertaintyavoidancecountries,decisionmakingtendstobebasedmoreonintuitionthanonformalanalysis.

Highlyreliableorganizations(HROs)areeasilytrickedbytheirsuccess.

Multiple-ChoiceQuestions

Foreachofthefollowingchoosetheanswerthatmostcompletelyanswersthequestion.

THEDECISION-MAKINGPROCESS

Decisionmakingistypicallydescribedas________________,whichisaviewthatistoosimplistic.

decidingwhatiscorrect

puttingpreferencesonpaper

choosingamongalternatives

processinginformationtocompletion

Aseriesofeightstepsthatbeginswithidentifyingaproblemandconcludeswithevaluatingthedecision’seffectivenessisthe________________.

decision-makingprocess

managerialprocess

maximinstyle

boundedrationalityapproach

________________istheexistenceofadiscrepancybetweenanexistingandadesiredstateofaffairs.

Anopportunity

Asolution

Aweakness

Aproblem

Inidentifyingtheproblem,amanager_________________.

comparesthecurrentstateofaffairswithwheretheywouldliketobe

expectsproblemstobedefinedbyneonlights

looksfordiscrepanciesthatcanbepostponed

willnotactwhenthereispressuretomakeadecision

Whichofthefollowingstatementsistrueconcerningproblemidentification?

Problemsaregenerallyobvious.

Asymptomandaproblemarebasicallythesame.

Well-trainedmanagersgenerallyagreeonwhatisconsideredaproblem.

Theproblemmustbesuchthatitexertssometypeofpressureonthemanagertoact.

Whatisthesecondstepinthedecision-makingprocess?

identifyingdecisioncriteria

allocatingweightstothecriteria

analyzingalternatives

identifyingaproblem

Todeterminethe_____________,amanagermustdeterminewhatisrelevantorimportanttoresolvingtheproblem.

geocentricbehaviorneeded

numberofallowablealternatives

weightingofdecisioncriteria

decisioncriteria

Whatisthethirdstepinthedecision-makingprocess?

allocatingweightstothecriteria

analyzingthealternatives

selectingthebestalternative

implementingthealternative

Ifallcriteriainthedecisionmakingareequal,weightingthecriteria______________.

improvesdecisionmakingwhenlargenumbersofcriteriaareinvolved

isnotneeded

producesexcellentdecisions

improvesthecriteria

Inallocatingweightstothedecisioncriteria,whichofthefollowingishelpfultoremember?

Allweightsmustbethesame.

Thetotaloftheweightsshouldsumto1.0.

Everyfactorcriterionconsidered,regardlessofitsimportance,mustreceivesomeweighting.

Assignthemostimportantcriterionascore,andthenassignweightsagainstthatstandard.

Whatisthestepwhereadecisionmakerwantstobecreativeincomingupwithpossiblealternative?

allocatingweightstothecriteria

analyzingalternatives

developingalternatives

identifyingdecisioncriteria

Whenanalyzingalternatives,whatbecomesevident?

thestrengthsandweaknessesofeachalternative

theweightingofalternatives

thelistofalternatives

theproblem

Whendevelopingalternativesinthedecision-makingprocess,whatmustamanagerdo?

listalternatives

evaluatealternatives

weightalternatives

implementalternatives

Selectinganalternativeinthedecision-makingprocessisaccomplishedby__________________.

choosingthealternativewiththehighestscore

choosingtheoneyoulikebest

selectingthealternativethathasthelowestprice

selectingthealternativethatisthemostreliable

InStep6ofthedecision-makingprocess,eachalternativeisevaluatedbyappraisingitagainstthe_____________.

subjectivegoalsofthedecisionmaker

criteria

assessedvalues

implementationstrategy

______________includesconveyingadecisiontothoseaffectedandgettingtheircommitmenttoit.

Selectinganalternative

Evaluatingthedecisioneffectiveness

Implementingthealternatives

Analyzingalternatives

Whichofthefollowingisimportantineffectivelyimplementingthechosenalternativeinthedecision-makingprocess?

gettingupper-managementsupport

double-checkingyouranalysisforpotentialerrors

allowingthoseimpactedbytheoutcometoparticipateintheprocess

ignoringcriticismconcerningyourchosenalternative

Thefinalstepinthedecision-makingprocessisto_______________.

pickthecriteriaforthenextdecision

reevaluatetheweightingsofthecriteriauntiltheyindicatethecorrectoutcome

evaluatetheoutcomeofthedecision

reassigntheratingsonthecriteriatofinddifferentoutcomes

Whichofthefollowingisimportanttorememberinevaluatingtheeffectivenessofthedecision-makingprocess?

Youshouldignorecriticismconcerningthedecision-makingprocess.

Youmayhavetostartthewholedecisionprocessover.

Youwillhavetorestartthedecision-makingprocessifthedecisionislessthan50percenteffective.

Ninetypercentofproblemswithdecisionmakingoccurintheimplementationstep.

THEMANAGERASDECISIONMAKER

Managersareassumedtobe______________;theymakeconsistent,value-maximizingchoiceswithinspecifiedconstraints.

rational

leaders

organized

satisficers

Itisassumedthataperfectlyrationaldecisionmaker______________.

doesnotfollowrationalassumptions

doesnotconsidervaluemaximizingasanobjective

offersinconsistentdecisions

wouldbeobjectiveandlogical

Managerscanmakerationaldecisionsif_________________.

theproblemisambiguous

thegoalsareunclear

thealternativesarelimited

timeconstraintsexist

Whichofthefollowingisnotavalidassumptionaboutrationality?

Theproblemisclearandunambiguous.

Asingle,well-definedgoalistobeachieved.

Preferencesareclear.

Preferencesareconstantlychanging.

Whenmanagerscircumventtherationaldecision-makingmodelandfindwaystosatisfice,theyarefollowingtheconceptof_________________.

jurisprudence

boundedrationality

least-squaredexemptions

self-motivateddecisions

Becausemanagerscan’tpossiblyanalyzeallinformationonallalternatives,managers______________,ratherthan______________.

maximize;satisfice

maximize;minimize

satisfice;minimize

satisfice;maximize

Thetypeofdecisionmakinginwhichthesolutionisconsidered“goodenough”isknownas_________________.

intuition

satisfying

maximizing

satisficing

Whenadecisionmakerchoosesanalternativeunderperfectrationality,she______________herdecision,whereasunderboundedrationalityshechoosesa______________decision.

minimizes;satisficing

satisfices;maximizing

maximizes;satisficing

maximizes;minimizing

Anincreasedcommitmenttoapreviousdecisiondespiteevidencethatitmayhavebeenwrongisreferredtoas_______________.

economiesofcommitment

escalationofcommitment

dimensionalcommitment

expansionofcommitment

Intuitivedecisionmakingis_______________.

notutilizedinorganizations

aconsciousprocessbasedonaccumulatedjudgment

makingdecisionsbasedonexperience,feelings,andaccumulatedjudgment

importantinsupportingescalationofcommitment

Instudyingintuitivedecisionmaking,researchershavefoundthat__________________.

managersdonotmakedecisionsbasedonfeelingsoremotions

managersusedatafromtheirsubconsciousmindtohelpmaketheirdecisions

rationalthinkingalwaysworksbetterthanintuitive

accumulatedexperiencedoesnotsupportintuitivedecisions

Allofthefollowingareaspectsofintuitionexcept__________________.

experienced-baseddecisions

affect-initiateddecisions

cognitive-baseddecisions

programmeddecisions

_____________arestraightforward,familiar,andeasilydefined.

Unstructuredproblems

Structuredproblems

Uniqueproblems

Nonprogrammedproblems

Structuredproblemsalignwellwithwhichtypeofdecisionmaking?

programmed

satisficing

intuition

gutfeeling

______________decisionmakingisrelativelysimpleandtendstorelyheavilyonprevioussolutions.

Nonprogrammed

Linear

Satisficing

Programmed

Aprocedure_______________.

isanexplicitstatementdetailingexactlyhowtodealwithadecision

isaseriesofinterrelatedsequentialstepstorespondtoastructuredproblem

isasetofguidelinesthatchannelamanager’sthinkingindealingwithaproblem

allowsamanagertousebroaddecision-makingauthority

A______________isanexplicitstatementthattellsamanagerwhatheorshecanorcannotdo.

procedure

policy

rule

solution

Apolicy____________.

typicallycontainsanambiguousterm

isusedfrequentlywhenamanagerfacesastructuredproblem

allowslittlediscretiononthepartofthemanager

offersstrictrulesastohowaproblemshouldbesolved

Whatisadifferencebetweenapolicyandarule?

Apolicyestablishesparameters.

Aruleestablishesparameters.

Apolicyismoreexplicit.

Aruleismoreambiguous.

A______________typicallycontainsanambiguoustermthatleavesinterpretationuptothedecisionmaker.

system

rule

solution

policy

Abusinessschool’sstatementthatit“strivesforproductiverelationshipswithlocalorganizations”isanexampleofa________________.

rule

policy

procedure

commitment

Unstructuredproblems_____________.

areeasilysolved

presentfamiliarcircumstances

forcemanagerstodealwithincompleteorambiguousinformation

areroutine

Nonprogrammeddecisionsarebestdescribedas________________.

recurring,butdifficulttomake

verysimilartoproblemsinotherareasoftheorganization

requiringmoreaggressiveactiononthedecisionmaker’sthoughtprocesses

uniqueandnonrecurring

Whenproblemsare______________,managersmustrelyon______________inordertodevelopuniquesolutions.

structured;nonprogrammeddecisionmaking

structured;pureintuition

unstructured;nonprogrammeddecisionmaking

unstructured;programmeddecisionmaking

Lower-levelmanagerstypicallyconfrontwhattypeofdecisionmaking?

unique

nonroutine

programmed

nonprogrammed

Whichofthefollowingislikelytomakethemostprogrammeddecisions?

theCEOofPepsiCo.

thevicepresidentofGeneralMotorsCadillacDivision.

theheadoftheMinuteMaidDivisionatCoca-Cola.

themanagerofthelocalMcDonald’s.

______________isasituationinwhichamanagercanmakeaccuratedecisionsbecausetheoutcomeofeveryalternativeisknown.

Certainty

Risk

Uncertainty

Maximax

Maximin

Ifanindividualknowsthepriceofthreesimilarcarsatdifferentdealerships,heorsheisoperatingunderwhattypeofdecision-makingcondition?

risk

uncertainty

certainty

factual

Aretailclothingstoremanagerwhoestimateshowmuchtoorderforthecurrentspringseasonbasedonlastspring’soutcomesisoperatingunderwhatkindofdecision-makingcondition?

seasonal

risk

uncertainty

certainty

______________isasituationinwhichadecisionmakerhasneithercertaintynorreasonableprobabilityestimatesavailable.

Certainty

Risk

Uncertainty

Maximax

Nonprogrammeddecisionsaretypicallymadeunderaconditionof________________.

certainty

lowlevelsofrisk

uncertainty

reliability

Apersonatahorseracetrackwhobetsallofhisorhermoneyontheodds-basedlongshotto“win”(ratherthan“place”or“show”)ismakingwhatkindofchoice?

maximax

maximin

minimax

minimin

Whatbestdescribesthepsychologicalorientationofanindividualmakinga“maximax”choice?

optimist

realist

pessimist

satisficer

Optimisticmanagerscouldbeexpectedtoutilizetheirmaximaxorientationwhenthey_______________.

maximizethemaximumpayoff

maximizetheminimumpayoff

minimizethemaximumregret

minimizetheminimumregret

Whatisthepsychologicalorientationofadecisionmakerwhomakesa“maximin”choice?

optimist

realist

pessimist

satisficer

Whichofthefollowingbestdescribes“maximizingtheminimumpossiblepayoff”?

maximax

maximin

minimax

minimin

Amanagerwhodesirestominimizehisorhermaximim“regret”willoptfora______________choice.

maximax

maximin

minimax

minimin

Decisionmakersusingwhatdecision-makingstylemakefastdecisionsandfocusontheshortrun?

directive

behavioral

analytic

conceptual

Whattypesarecharacterizedascarefuldecisionmakerswiththeabilitytoadaptorcopewithuniquesituations?

directivedecisionmakers

behavioraldecisionmakers

analyticdecisionmakers

conceptualdecisionmakers

Whoareconcernedabouttheachievementsofthosearoundthemandarereceptivetosuggestionsfromothers?

directivedecisionmakers

behavioraldecisionmakers

analyticdecisionmakers

conceptualdecisionmakers

Manymanagersuse__________orrulesofthumbtosimplifytheirdecisionmaking.

heuristics

biases

errors

habits

Whendecisionmakerstendtothinktheyknowmorethantheydoorholdunrealisticallypositiveviewsofthemselvesandtheirperformance,theyareexhibiting_______________.

self-servingbias

theanchoringeffect

immediategratificationbias

overconfidencebias

Whendecisionmakersseekoutinformationthatreaffirmstheirpastchoicesanddiscountinformationthatcontradictspastjudgments,theyareexhibiting_______________.

availabilitybias

theanchoringeffect

self-servingbias

confirmationbias

Whendecisionmakersassessthelikelihoodofaneventbasedonhowcloselyitresemblesothereventsorsetsofevents,theyareusing_______________.

availabilitybias

framingbias

selectiveperceptionbias

representationbias

Whatisthetendencyfordecisionmakerstofalselybelievethattheywouldhaveaccuratelypredictedtheoutcomeofaneventoncethatoutcomeisactuallyknown?

thehindsightbias

thesunkcostserror

therandomnessbias

theselectiveperceptionbias

DECISIONMAKINGFORTODAY’SWORLD

Accordingtotheboxedfeature,“FocusonLeadership,”when_______________,managersmightcomefromaculturethatgathersfactsorfromaculturethatismoreintuitiveingatheringideasandpossibilities.

developingalternatives

implementingalternatives

searchingforinformation

identifyingproblems

Tomakeeffectivedecisionsintoday’sfast-movingworld,managersneedto_______________.

usethefive-stagedecision-makingprocess

knowwhenitistimetocallitquits

ignoreculturaldifferences

identifytheirstyleofdecisionmaking

Whatisacharacteristicthattheexpertssayaneffectivedecision-makingprocesshas?

Itisinconsistent.

Itacknowledgesonlyobjectivethinking.

Itfocusesonallfactors—eventhosethatdonotseemimportant.

Itrequiresonlyasmuchinformationandanalysisasisnecessary.

WhattermisusedbyNavyaviatorstodescribeagutfeelingthatsomethingisn’tright?

leemers

thecreeps

uneasiness

regret

Managersofhighlyreliableorganizations(HROs)gettheinputof_______________andletthemmakedecisions.

CEOs

frontlineworkers

customers

suppliers

Whenhighlyreliableorganizations(HROs)facecomplexity,they_______________.

trytosimplifydata

aimfordeeperunderstandingofthesituation

defertotheexperts

act,thenthink

SCENariosandQuestions

Foreachofthefollowingchoosetheanswerthatmostcompletelyanswersthequestion.

THEDECISION-MAKINGPROCESS

Decisions,Decisions(Scenario)

Sondraneededhelp.Herinsurancecompany’srapidgrowthwasnecessitatingmakingsomechanges,butwhatchanges?Shouldtheyaddtotheexistinginformationsystemorshouldtheybuyanewsystem?Shewasgiventheresponsibilityofanalyzingthecompany’spresentinformationsystemanddecidingwhatthecompanyshoulddothatwouldgivethemplentyofroom.Shewasconfusedandneededhelpinmakingthecorrectdecision.

Accordingtothedecision-makingprocess,thefirststepSondrashouldtakeisto_____________.

analyzealternativesolutions

identifydecisioncriteria

evaluateherdecision’seffectiveness

identifytheproblem

Accordingtothedecision-makingprocess,thesecondstepSondrashouldtakeisto____________.

analyzealternativesolutions

identifydecisioncriteria

evaluateherdecision’seffectiveness

allocateweightstothecriteria

Allocatingweightstothecriteriaisthestepinthedecision-makingprocessthatoccursbetweenidentifyingthedecisioncriteriaand______________.

developingthealternatives

selectingalternatives

implementingthealternative

identifyingtheproblem

WhenSondraisconveyingherdecisiontothoseaffectedandgettingtheircommitmenttoit,sheisperformingwhichstepinthedecision-makingprocess?

analyzingalternativesolutions

selectingalternatives

implementingthealternative

identifyingtheproblem

TheverylaststepSondrashouldtake,accordingtothedecision-makingprocess,isto__________.

analyzealternativesolutions

selectalternatives

implementthealternative

evaluatethedecision’seffectiveness

TheCar(Scenario)

Colleenisastudent,andherolderbrotherhasloanedheranoldcar.Thecarisinneedofseveralrepairsbeforeshewillfeelcomfortabledrivingit.

Colleenneedsavehicle,butshehastodecideifthevehicleisworthrepairing.Sheisfacinga(n)_____________,adiscrepancybetweenanexistingandadesiredstateofaffairs.

alternative

weightedproblemset

problem

certaintyavoidancesituation

Intalkingwithanautomotiverepairperson,Colleenneedstoprioritizetherepairs.Herfirstconcernissafetyofthevehicle.Thisstepinthedecision-makingprocessiscalled__________________.

weightingthedecisioncriteria

analyzingofalternatives

identifyingdecisioncriteria

selectinganalternative

THEMANAGERASDECISIONMAKER

TheCar(Scenario)

Colleenisastudent,andherolderbrotherhasloanedheranoldcar.Thecarisinneedofseveralrepairsbeforeshewillfeelcomfortabledrivingit.

Colleendecidestohavealloftheproblemsfixedonthecar.Sheassumesthattherepairpersonhasfoundalltheproblemsandthattherewillbenoproblemcorrectingtheimperfectionswithinaspecifiedbudget.Thisisanexampleofa__________decision.

parochial

irrational

ethical

rational

Colleen’sbrotherhasadifferentviewoftherepairs.Heassumesthattherepairpersonisusingthebestinformationavailable,buttheremaybeotherunexpectedrepairsthatmightsurfaceandthatahigherbudgetmightbemorereasonable.Heisusing______________.

rationaldecisionmaking

riskavoidance

boundedrationality

Stage4decisionmaking

Colleen’sbrotherfeelsthecarisworthrepairingbecausehehasownedseveralcarsmadebythesamemanufacturerasthiscar,andhehasdriventhiscarforseveralyears.Heisusing_________todeterminethatthecarhasvaluedespiteitsneedofrepair.

intuitivedecisionmaking

selectivecoordinationofthoughtprocesses

sunkcosts

returnoninvestment

TheFirstJob(Scenario)

Upongraduation,yousearchforajobwiththeuniversity’sjobplacementcenter.Althoughyouhavestudiedandpreparedtoworkinanadvertisingagency,thefirstjobthatyouareofferedisasupervisorinamanufacturingcompanyworkingtheafternoonshiftfrom3:00P.M.until11:00P.M.

IfyouhadmadealargersearchusingtheInternetandotheremploymentsearchprocesses,youmighthavebeenabletofindmoreemploymentopportunities.Thiswouldhavebeenamore_________decision-makingprocess.

nonprogrammable

uncertain

risky

perfectlyrational

Underboundedrationality,youwouldbeexpectedtosearchforajobby________________.

lookingatalltheopportunitiesthatcanbeanalyzedinthetimeavailable

lookingatalltheopportunitiesavailable

looking“outsidethebox”inyoursearch

analyzingalltheopportunitiesuntilyoufindtheperfectjob

Ifyouuseashortenedprocessofsearchingforajob,itislikelythatyou___________ratherthanmaximizedinyourdecisionprocess.

minimized

rationalized

satisficed

agreed

Duringyourjobsearch,youdependon__________decisionmakingbymakingyourdecisionbasedonaccumulatedjudgmentandexperience.

experiential

legal

intuitive

formidable

IsthePictureClear?(Scenario)

Sharonwastheregionalmanagerofalargecabletelevisioncompany.Shefacedmanyproblemsanddecisionsdaily,suchashowtopriceeachmarket,whotohire,whatkindoftechnologysheshouldpurchase,andhowsheshouldhandletheincreasingcustomercomplaints.Sheneededsomehelpsortingtheseissuesout.

Whenacustomercallsandrequestsarefundforapartialmonth’susageofcable,thefactthatsuchsituationsareroutineandmostlikelyhaveastandardresponsewouldmaketheresponsea______________decision.

standard

routine

policy

programmed

SometimesSharonfollowsa______________,aseriesofinterrelatedsequentialstepsforrespondingtoastructuredproblem.

rule

policy

procedure

suggestion

SometimesSharoninstructsherlocalmanagerstofollow______________whenconfrontedwithproblemsituations.Theseestablishparametersforthemanagermakingthedecisionratherthanspecificallystatingwhatshouldorshouldnotbedone.

rules

procedures

policies

orders

Unfortunately,Sharonalsofacesissuescontaininginformationthatisambiguousorincomplete,suchaswhatkindoftechnologytopurchase.Theseareknownas______________problems.

unstructured

variable

random

hit-and-miss

ManagingYourCareer(Scenario)

Michellehasanewjobandislearningtoperformthetasksassignedtoher.Differentsituationsdemanddifferentdecision-makingprocesses.

Michellefindsasituationthatinstructsherinspecific,interrelated,sequentialstepstorespondtoaproblem.Thisisreferredtoasa_____________.

rule

policy

broadguideline

procedure

Michellefindsacompanydirectivethatspecificallyrestrictsherfromtakingcertainactions.Thisisa_____________.

rule

policy

broadguideline

procedure

Asshelearnsthegeneralguidelinesofthejob,Michelleisgivenmoredecision-makingauthority.Theguidelinesestablishparametersfordecisionmakingandarereferredasa_____________.

rule

policy

broadguideline

procedure

Michelleeventuallyfindsaproblemthathasnocut-and-drysolution.Theproblemisuniqueandwillneveroccuragain.Thisproblemisreferredtoas_____________.

flexible

programmed

adaptable

nonprogrammed

Decision-MakingConditions(Scenario)

SandyJoisthemanagerforTrucksRUs,amedium-sizedhaulingservicelocatedintheSoutheast.Sheisresponsibleforschedulingtrucks,initiatingnewroutes,andstaffingbothexistingandnewroutes.Sheiscurrentlystrugglingwithexistinginformationabouttheprofitabilityofexistingandfuturetruckroutes.

SandyJocanmakeaccuratedecisionsifsheiswillingtopay$5,000forresearchabouttheprofitabilityofvarioustruckroutes.Ifshepaysfortheresearch,shebelievesthatsheisoperatingunderaconditionof____________.

certainty

risk

uncertainty

maximax

Joe,SandyJo’sbestdriver,tellsherthathebelieveshecanestimatethatthereisa75percentprobabilitythattheycangetthebusinessofPorkBrothers,Inc.,iftheyinitiateatruckroutethroughruralNorthCarolina.Joeisoperatingunderaconditionof______________.

certainty

risk

uncertainty

maximax

SandyJoknowsthatsheisoperatinginanuncertainenvironment.Sheisbasicallyanoptimist,andwewould,therefore,expecthertofollowa______________strategy.

certainty

risk

uncertainty

maximax

SandyJoknowsthatsheisoperatinginanuncertainenvironment.Sheisbasicallyapessimist,andwewould,therefore,expecthertofollowa______________strategy.

certainty

risk

minimax

maximin

SandyJowishestominimizeherre

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