business managment data bank
True / False Questions
1. (p. 88) Managers often ignore proble
2. (p. 89) Managers
tyically fe ill-structured problems, leaving the decision maker uncertain about
how to proceed.
3. (p. 89) Bill Simmons
is the manager of a small restaurant and must decide how much money he owes his
suppliers. This is an example of a non-programmed decision.
4. (p. 89,
Table 3.1) Programmed decisions are useful when there is no
predetermined structure on which to rely.
5. (p. 90) Risk is not a
fact of life in management decisions.
6. (p. 90) According to
research, managers prefer uncertainty to certainty because it makes the job
more challenging and interesting.
7. (p. 91) Conflict exists when the
manager must consider opposing pressures from different sources.
8. (p. 92) In the fourth
state of decision making, problem diagnosis is linked to the development of
9. (p. 92-93) Choosing a
ready-made alternative is takes less time than designing a custom-made
10. (p. 93) Contingency
plans are best developed following the final stage of decision
making--evaluating the decision.
11. (p. 95) Satisficing is
achieving the best possible outcome.
12. (p. 96) Those who implement a
decision must understand the choice and must be committed to it.
13. (p. 98) Following all
six stages of the decision making process guarantees successful
14. (p. 100) The illusion
of control is a belief that one can influence events even when one has no
control over what will happen.
15. (p. 101) Discounting
the future is said to partly explain governmental budget deficits and
16. (p. 102) In decision making, it is
always better to use a group than an individual.
17. (p. 102) Some experts
advise that in today's complex business environment, significant problems
should always be tackled by groups.
18. (p. 102) One advantage
of using a group for decision making is that one person dominates.
19. (p. 105) The job of a
"devil's advocate" is to create destructive conflict.
20. (p. 105) Affective conflict is
differences in perspectives or judgments about issues, whereas cognitive conflict
is emotional and directed at other people.
21. (p. 106) In
brainstorming, group members generate as many ideas about a problem as they
22. (p. 108) Incremental
decision making occurs when managers make small decisions and move cautiously
toward a bigger solution.
23. (p. 108) The garbage
can model of decision making arises when people disagree on goals or compete
with one another for resources.
24. (p. 1113) Decision making under
crisis conditions will inevitably result in poor decisions and negative