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CHAPTER 9: MANAGERIAL DECISION MAKING
Managers are o 昀琀 en referred to as: A. decision makers. B . peace makers.
C . con 昀氀 ict creators.
D an unnecessary layer of employees.
E . pro 昀椀 t suppressor.
_____ is a vital part of good management because decisions determine how the organiza 琀椀 on
solves its problems, allocates resources, and accomplishes its goals. A. Organizing
B. Compe 琀椀琀椀 ve visioning C. Proper alignment
D. Good decision making E. Leadership
Which of the following is a choice made from available alterna 琀椀 ves? A. Decision B. Plan C. Goal D . Tac 琀椀 c E . Strategy
Mark, a produc 琀椀 on manager at Kaylie's Kookware, recently chose to schedule his workers to
work over 琀椀 me. His alterna 琀椀 ve 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 iden 琀椀 fying 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. Illstructured E . Novel
Programmed decisions are made in response to _____ organiza 琀椀 onal problems. A. unusual B . recurring C . signi 昀椀 cant lOMoARcPSD| 49153326 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 shi 昀琀 employees
for viola 琀椀 ng this policy. This is an example of:
A. a programmed decision.
B . a nonprogrammed decision.
C . an insigni 昀椀 cant decision. D . poor management.
E . personal grudge.
Nordstrom Department store's "No ques 琀椀 ons asked - Return's Policy" is an example of a(n): A. programm ed decision.
B . nonprogrammed decision. C. novel decision. D . poor management.
E . unstructured decision.
If your instructor has an a 琀琀 endance policy, she/he is using a(n):
A. programmed decision. B . unique approach.
C . condi 琀椀 on of ambiguity.
D. nonprogram med decision.
E . none of these.
Nonprogrammed decisions are made in response to situa 琀椀 ons that are: A. unique. B. unstructured.
C. important to the organiza 琀椀 on. D. all of these
E . unique and important to the organiza 琀椀 on.
Good examples of _____ decisions are strategic decisions. A. non programmed B . programmed
C . insigni 昀椀 cant D . recurring E . structured
When a small community hospital decides to add a radia 琀椀 on 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 opera 琀椀 ons. This is an example of a: lOMoARcPSD| 49153326 A. programme d decision.
B . nonprogrammed decision. C. decision rule.
D . structured decision.
E . bad community decision.
At the start of every shi 昀琀, Carl, a delivery truck driver, plans out his route based on the addresses
that he will be visi 琀椀 ng to drop o 昀昀 packages. This can best be described as what kind of decision? A. Programmed B Nonprogrammed C . Wicked
D . Administra 琀椀 ve E . Intui 琀椀 ve
Associated with the condi 琀椀 on of _____ is the lowest possibility of failure. A. ambi guity B . uncertai nty C . certainty D. risk E . all of these
Which of the following means that all the informa 琀椀 on the decision-maker needs is fully available? A. Certainty B. Risk C . Uncertaint y 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 compe 琀椀琀椀 on, and the quality
of his product will interact to in 昀氀 uence market share. Bobby is opera 琀椀 ng under a condi 琀 椀 on of _____. A. risk B . ambiguity C. certainty D . uncertainty
E . brainstormi ng
Under condi 琀椀 ons of _____, sta 琀椀 s 琀椀 cal analyses are useful. A. certainty B . ambiguity C. risk D . uncertainty E . con 昀氀 ict lOMoARcPSD| 49153326
Which of the following means that a decision has clear-cut goals and that good informa 琀椀 on is
available, but the future outcomes associated with each alterna 琀椀 ve 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 informa 琀椀 on about
alterna 琀椀 ves 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 informa 琀椀 on about alterna 琀椀
ves and future events is incomplete, the condi 琀椀 on of _____ exists. A. risk B . uncertainty C . ambiguity D . certainty E . problema 琀椀 c
Which of the following has the highest possibility of failure?
A. The condi 琀椀 on of certainty
BThe condi 琀椀 on of ambiguity
CThe condi 琀椀 on of uncertainty D The condi 琀椀 on of risk E . All of these
The four posi 琀椀 ons on the possibility of failure scale include certainty, risk, ambiguity, and _____. A. uncertainty B . con 昀氀 ict C . necessity D . indecision E . possibility
_____ is by far the most di 昀케cult situa 琀椀 on for a decision-maker. A. Certainty B. Risk C . Uncertainty D . Ambiguity E . Brainstorming lOMoARcPSD| 49153326
Which of the following means that the goals to be achieved or the problem to be solved is unclear,
alterna 琀椀 ves are di 昀케cult to de 昀椀 ne, and informa 琀椀 on about outcomes is unavailable? A. Certainty B.Risk C . Uncertainty D . Ambiguity E . Brainstorming
The condi 琀椀 on under which ambiguity occurs is when:
A. alterna 琀椀 ves are di 昀케cult to de 昀椀 ne.
B . objec 琀椀 ves are well de 昀椀 ned.
C informa 琀椀 on about outcomes is readily available.
D . all the alterna 琀椀 ves are known.
E . decisions are already made
_____ decisions are associated with con 昀氀 icts over goals and decision alterna 琀椀 ves, rapidly
changing circumstances, fuzzy informa 琀椀 on, and unclear links among decision elements. A. Nonprogrammed B . Programmed C . Wicked
D . Conven 琀椀 onal E . Irra 琀椀 onal
During the fallout of the global 昀椀 nancial crisis of the late 2000s, 昀椀 nance 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 . Conven 琀椀 onal
D . Wicked decision problem
E . Irra 琀椀 onal decision
Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organiza 琀
椀 on's best economic interests. Her decisions should be based on which of the following models?
A. The administra 琀椀 ve model of decision making
B . The garbage can model of decision making
C . The scien 琀椀昀椀 c management model of decision making
D . The classical model of decision making
E . The humanis 琀椀 c model of decision making
Which of these assump 琀椀 ons are included in the classical model of decision making?
A. Problems are unstructured and ill de 昀椀 ned.
B. The decision-maker strives for condi 琀椀 ons of certainty. lOMoARcPSD| 49153326
C . Criteria for evalua 琀椀 ng alterna 琀椀 ves are unknown.
DThe decision-maker selects the alterna 琀椀 ves that will minimize the economic return to the organiza 琀椀 on.
E . The situa 琀椀 on is always uncertain.
All of the following are characteris 琀椀 cs of the classical decision making model except:
A. clear-cut problems and goals.
B. condi 琀椀 ons of certainty.
C . ra 琀椀 onal choice by individual for maximizing outcomes.
D . limited informa 琀椀 on about alterna 琀椀 ves and their outcomes.
E . all of these are characteris 琀椀 cs of classical decision making model.
The _____ model of decision making is most valuable when applied to _____.
A. administra 琀椀 ve; programmed
decisions B . classical; nonprogrammed decisions
C . classical; programmed decisions
D . classical; ambiguous decisions
E . administra 琀椀 ve; structured decisions
Which model of decision making is associated with sa 琀椀 s 昀椀 cing, bounded ra 琀椀 onality, and uncertainty? A. Classical
B. Administra 琀椀 ve
C . Quan 琀椀 ta 琀椀 ve D . Ra 琀椀 onal E . Poli 琀椀 cal
The _____ model of decision making describes how managers actually makes decisions in situa 琀
椀 ons characterized by nonprogrammed decisions, uncertainty, and ambiguity. A. norma 琀椀 ve B . classical
C . administra 琀椀 ve
D. scien 琀椀昀椀 c management E . objec 琀椀 ve
The concept that people have the 琀椀 me and cogni 琀椀 ve ability to process only a limited amount
of informa 琀椀 on on which to base decisions is known as:
A. sa 琀椀 s 昀椀 cing.
B . bounded ra 琀椀 onality.
C Classical model of decision making. lOMoARcPSD| 49153326
D . norma 琀椀 ve approach.
E . scien 琀椀昀椀 c approach.
Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not
have enough 琀椀 me to iden 琀椀 fy and/or process all the informa 琀椀 on she needs to make
decisions. Melissa's situa 琀椀 on is most consistent with which of the following concepts?
A. Bounded ra 琀椀 onality
B The classical model of decision making
C. Sa 琀椀 s 昀椀 cing D. Brainstorming
E . Scien 琀椀昀椀 c management
The essence of _____ is to choose the 昀椀 rst solu 琀椀 on available.
A. bounded ra 琀椀 onality B. crea 琀椀 vity
C. decision maximiza 琀椀 on
D. sa 琀椀 s 昀椀 cing
E . the classical model of decision making
Most managers se 琀琀 le for a _____ rather than a _____ solu 琀椀 on.
A. minimizi ng; maximizi ng
B . sa 琀椀 s 昀椀 cing; maximizing
C . top-level; bo 琀琀 omline
D . maximizing; sa 琀椀 s 昀椀 cing E . challenging; simple
All of the following are characteris 琀椀 cs of the administra 琀椀 ve decision making model except:
A. vague problem and goals.
B. condi 琀椀 ons of certainty.
C . limited informa 琀椀 on about alterna 琀椀 ves and their
outcomes. D. sa 琀椀 sfying choice.
E . all of these are characteris 琀椀 cs of administra 琀椀 ve decision making model.
The _____ model of decision-making is useful for making nonprogrammed decisions when condi 琀
椀 ons are uncertain, informa 琀椀 on is limited, and there are managerial con 昀氀 icts about what
goals to pursue or what course of ac 琀椀 on to take. A. classical B . func 琀椀 onal
C . bureaucra 琀椀 c D. poli 琀椀 cal lOMoARcPSD| 49153326
E . administra 琀椀 ve
The _____ model closely resembles the real environment in which most managers and
decisionmakers operate. A. norma 琀椀 ve
B . administra 琀椀 ve C . descrip 琀椀 ve D . classical E . poli 琀椀 cal
Je 昀昀 erson Inc. is an informa 琀椀 on technology consul 琀椀 ng 昀椀 rm located in Washington
D.C. Decisions at Je 昀昀 erson are complex and involve many people, with a signi 昀椀 cant amount
of disagreement and con 昀氀 ict. Which decision-making model 昀椀 ts best for this organiza 琀椀 on? A. Poli 琀椀 cal B . Func 琀椀 onal C . Classical
D . Administra 琀椀 ve
All of these are basic assump 琀椀 ons of the poli 琀椀 cal model except:
A. organiza 琀椀 ons are made up of groups with diverse interests, goals, and values.
B. informa 琀椀 on is clear and complete.
C. managers do not have the 琀椀 me, resources, or mental capacity to iden 琀椀 fy all dimensions of theproblem.
D . managers engage in the push and pull of debate to decide goals and discuss alterna 琀椀 ves. E .
all of these are basic assump 琀椀 ons of the poli 琀椀 cal 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 inves 琀椀 gate further.
She is at what stage of the managerial decision making process?
A. Diagnosis and analysis of causes
B . Development of alterna 琀椀 ves C . Recogni 琀椀 on of decision requirement
D . Evalua 琀椀 on and feedback
E . Selec 琀椀 on of desired alterna 琀椀 ves
_____ is the step in the decision-making process in which managers analyze underlying causal
factors associated with the decision situa 琀椀 on. A. Analysis B . Diagnosis C . Recogni 琀椀 on lOMoARcPSD| 49153326 D . Judgment
E . Iden 琀椀昀椀 ca 琀椀 on
Which of the following is the 昀椀 rst step in the managerial decision making process?
A. Evalua 琀椀 on and feedback
B . Development of alterna 琀椀 ves
C . Recogni 琀椀 on of decision requirement
D . Diagnosis and analysis of causes
E . Selec 琀椀 on of desired alterna 琀椀 ves
_____ is the last step in the decision making process.
A. Evalua 琀椀 on and feedback
B . Development of alterna 琀椀 ves
C . Implementa 琀椀 on of chosen alterna 琀椀 ve
D . Selec 琀椀 on of desired requirement
E . Recogni 琀椀 on of decision requirement
"When did it occur" and "how did it occur" are ques 琀椀 ons associated with which step of the decision making process?
A. Diagnosis and analysis of causes
B. Recogni 琀椀 on of decision requirement
C. Development of alterna 琀椀 ves
D. Selec 琀椀 on of desired alterna 琀椀 ve E . None of these
When managers ask ques 琀椀 ons such as “What is the state of disequilibrium a 昀昀 ec 琀椀 ng
us?”, they are in which stage of the managerial decision-making process?
A. Selec 琀椀 on of a desired alterna 琀椀 ve
B . Development of alterna 琀椀 ves
C . Diagnosis and analysis of causes
D . Recogni 琀椀 on of decision requirement
E . Evalua 琀椀 on and feedback
The decision-maker must _____ once the problem has been recognized and analyzed.
A. evaluate and provide feedback
B . choose among alterna 琀椀 ves
C . generate alterna 琀椀 ves
D . priori 琀椀 ze the alterna 琀椀 ves
E . reanalyze the problem
Ryan is a manager at Dream Catchers. Dream Catchers is currently opera 琀椀 ng in an environment
of high uncertainty. As a result, Ryan will:
A. most likely be making programmed decisions. lOMoARcPSD| 49153326
B . probably have an easy 琀椀 me genera 琀椀 ng alterna 琀椀 ves.
C . probably have a di 昀케cult 琀椀 me genera 琀椀 ng alterna 琀椀 ves.
D . most likely rely on the classical model of decision making.
E . wait un 琀椀 l environment becomes certain.
Once the desired alterna 琀椀 ve is developed, it should be _____. A. analyzed B . evaluated C . selected D . recognized
E . iden 琀椀昀椀 ed
The _____ step in the decision making process involves using managerial, administra 琀椀 ve, and
persuasive abili 琀椀 es to translate the chosen alterna 琀椀 ve into ac 琀椀 on. A . recogni 琀椀 on B . analysis C . evalua 琀椀 on
D . implementa 琀椀 on E . feedback
Genna is collec 琀椀 ng data on how well the organiza 琀椀 on has done since their new strategy
was implemented. She is in what stage of the managerial decision making process?
A. The genera 琀椀 on of alterna 琀椀 ves
B . Implementa 琀椀 on of the chosen alterna 琀椀 ve
C . Evalua 琀椀 on and feedback
D . Recogni 琀椀 on of the decision requirement
E . Selec 琀椀 on of desired alterna 琀椀 ve
Which style is used by people who prefer simple, clear-cut solu 琀椀 ons to problems? A. Behavioral B . Conceptual C . Direc 琀椀 ve
D . Analy 琀椀 cal E . Classical
Research has iden 琀椀昀椀 ed four major decision styles. These include all of the following except _____. A. behavioral B . conceptual C . analy 琀椀 cal
D . authorita 琀椀 ve E . direc 琀椀 ve lOMoARcPSD| 49153326
Managers are considered to have a(n) _____ style when they prefer to consider complex solu 琀椀
ons based on as much data as they can gather. A. behavioral B . conceptual C . direc 琀椀 ve
D . analy 琀椀 cal E . classical
Which of these styles is adopted by managers who have a deep concern for others as individuals? A. Behavioral B . Classical C . Analy 琀椀 c 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 . analy 琀椀 c C. logical D . behavioral