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Management A Focus on

Leaders 2nd Edition McKee


Test Bank
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Management: A Focus on Leaders, 2e (McKee)
Chapter 6 The Human Side of Planning: Decision Making and Critical Thinking

1) Decision making almost always includes both a logical and an emotional component.
Answer: TRUE
Diff: 2 Page Ref: 182
Objective: 6.1 Define decision making

2) Many of the decisions you make each day are automatic programmed decisions.
Answer: TRUE
Diff: 2 Page Ref: 183
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

3) Choosing a title for your blog is a programmed decision.


Answer: FALSE
Diff: 2 Page Ref: 184
Objective: 6.1 Define decision making

4) When you say a decision is a "no-brainer" you are talking about a nonprogrammed decision.
Answer: FALSE
Diff: 2 Page Ref: 184
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

5) A schema is a mental file where you store a thought or a memory.


Answer: TRUE
1
Copyright © 2014 Pearson Education, Inc.
Diff: 2 Page Ref: 186
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

6) Accommodation is the act of force-fitting new information into an existing schema.


Answer: FALSE
Diff: 2 Page Ref: 186
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

2
Copyright © 2014 Pearson Education, Inc.
7) Stereotypes can provide a useful shortcut for making a decision.
Answer: TRUE
Diff: 2 Page Ref: 187
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

8) A celebrity spokesperson can provide a "halo effect" for a product.


Answer: TRUE
Diff: 2 Page Ref: 188
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

9) People exclusively use their sympathetic nervous system when they are being nice to one
another.
Answer: FALSE
Diff: 2 Page Ref: 189
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

10) Intuitive decision making is always illogical.


Answer: FALSE
Diff: 2 Page Ref: 189
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

11) Because brain cells that regulate emotion link up with pattern-recognition brain cells,
scientists warn people not to trust emotions in decision making.
Answer: FALSE
Diff: 2 Page Ref: 190
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

12) A problem exists when the current state of a person or thing conflicts with the desired state
of a person or thing.
Answer: TRUE
Diff: 2 Page Ref: 191
Objective: 6.3 Learn to apply a systematic approach to decision making

3
Copyright © 2014 Pearson Education, Inc.
13) The first step of the decision-making process is to list alternatives for solving a problem.
Answer: FALSE
Diff: 2 Page Ref: 191
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

14) The final step of the decision-making process is to see if your solution to the problem
worked.
Answer: TRUE
Diff: 2 Page Ref: 195
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

15) One reason that our decisions are made under conditions of bounded rationality is that we
can never get all of the information that a situation requires.
Answer: TRUE
Diff: 2 Page Ref: 196
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

16) When you satisfice, you will accept only the perfect solution to a problem.
Answer: FALSE
Diff: 2 Page Ref: 197
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

17) A good example of the 80/20 rule is that 80 percent of your customers cause 20 percent of
your problems.
Answer: TRUE
Diff: 2 Page Ref: 198
Objective: 6.4 Understand how to make sound decisions with incomplete information

18) Deduction involves starting with a specific case and using it to formulate a generalized rule.
Answer: FALSE
Diff: 2 Page Ref: 200
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.5 Improve your critical thinking skills

4
Copyright © 2014 Pearson Education, Inc.
19) The "status quo" thinking trap contends that people are always trying to "rock the boat."
Answer: FALSE
Diff: 2 Page Ref: 203
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.5 Improve your critical thinking skills

20) Mindfulness involves paying more attention to the factors that affect your decision making.
Answer: TRUE
Diff: 2 Page Ref: 206
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.7 Describe what you can do to improve critical thinking and sound decision making

21) Decision making is ________ process.


A) an unbiased
B) an unbiased cognitive, emotional, and neuropsychological
C) a cognitive, emotional, and neuropsychological
D) a cognitive, non-emotional, and neurophysiological
Answer: C
Diff: 2 Page Ref: 182
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

22) Programmed decisions are typically ________.


A) complex
B) difficult
C) routine
D) nonroutine
Answer: C
Diff: 2 Page Ref: 183
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

23) Which of the following is an example of a programmed decision?


A) deciding which shoes to wear to the gym
B) deciding which job candidate to hire
C) deciding which computer to buy
D) deciding which club to go to
Answer: A
Diff: 2 Page Ref: 183
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

5
Copyright © 2014 Pearson Education, Inc.
24) Nonprogrammed decisions are typically ________.
A) straightforward
B) uncomplicated
C) unexciting
D) unique
Answer: D
Diff: 2 Page Ref: 184
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

25) How does Ivor D'Souza of the National Library of Medicine believe leaders can get
employees involved in innovation?
A) by tapping into their intuition
B) by asking them open-ended questions
C) by listening to the top-performing 20 percent of staff
D) by running mindfulness training programs
Answer: B
Diff: 2 Page Ref: 184
Objective: 6.1 Define decision making

26) Deciding what to do in an ethical dilemma is a ________ decision because ________.


A) programmed; it involves ethics
B) nonprogrammed; it is simple
C) nonprogrammed; it requires analysis
D) programmed; it requires analysis
Answer: C
Diff: 2 Page Ref: 184
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.1 Define decision making

27) Pure, formal logic is frequently used in ________.


A) nonprogrammed decision making
B) programmed decision making
C) both programmed and nonprogrammed decision making
D) computer programming and mathematics
Answer: D
Diff: 2 Page Ref: 185
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

6
Copyright © 2014 Pearson Education, Inc.
28) A schema is ________.
A) a metaphor
B) a cognitive map of your entire brain
C) a mental "file" of a thought or memory
D) the filing system that cognitive scientists use
Answer: C
Diff: 2 Page Ref: 186
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

29) When a piece of information fits in with a mental category that you already have, you are
likely to ________.
A) store the information in a new schema
B) store the information in an existing schema
C) destroy an existing schema
D) ignore the information
Answer: B
Diff: 2 Page Ref: 186
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

30) When a piece of information does not fit in with an existing mental category, you are likely
to ________.
A) store the information in a new schema
B) discard the information from the existing schema
C) destroy an existing schema
D) ignore the information
Answer: A
Diff: 2 Page Ref: 186
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

7
Copyright © 2014 Pearson Education, Inc.
31) Creating a new schema to store a completely new and unique piece of information is called
________.
A) reconciliation
B) accommodation
C) assimilation
D) integration
Answer: B
Diff: 2 Page Ref: 186
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

32) Forcing a completely new and unique piece of information into an existing schema is called
________.
A) integration
B) accommodation
C) assimilation
D) manipulation
Answer: C
Diff: 2 Page Ref: 186
AACSB skills: Reflective thinking skills
Learning Outcome: 10. Discuss the processes and tools of developing different types of plans
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

33) Accommodation is a sign of ________.


A) a stubborn person who isn't able to see things in a new way
B) an open-minded person who can see things in a new way
C) a stubborn person who is very intelligent
D) an open-minded person who is not intelligent
Answer: B
Diff: 2 Page Ref: 186
AACSB skills: Reflective thinking skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

8
Copyright © 2014 Pearson Education, Inc.
34) Assimilation is a sign of ________.
A) a stubborn person who is very intelligent
B) an open-minded person who is able to see things in a new way
C) a stubborn person who isn't able to see things in a new way
D) an open-minded person who is not intelligent
Answer: C
Diff: 2 Page Ref: 186
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

35) Stereotypes are ________.


A) simplified schemas
B) overly complex schemas
C) pieces of information that don't fit into schemas
D) over-stuffed schemas
Answer: A
Diff: 2 Page Ref: 187
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

36) Which statement is most accurate?


A) Stereotypes are never useful.
B) Stereotypes are always useful.
C) Stereotypes can be useful.
D) Stereotypes are usually useful.
Answer: C
Diff: 2 Page Ref: 187
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

37) Which types of stereotypes are most likely to be harmful?


A) stereotypes about companies
B) stereotypes about products
C) stereotypes about ethnic groups
D) stereotypes about technologies
Answer: C
Diff: 2 Page Ref: 187
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

9
Copyright © 2014 Pearson Education, Inc.
38) The halo effect is a cognitive bias that ________.
A) sees a person in a positive light
B) sees a person in a negative light
C) associates a person with an ethnic group
D) only focuses on the positive aspects of past decisions
Answer: A
Diff: 2 Page Ref: 188
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

39) What does the devil effect typically focus on?


A) the group that a person belongs to
B) a single positive trait that is the first thing noticed by an observer
C) the unethical nature of stereotypes
D) a single negative trait that is the first thing noticed by an observer
Answer: D
Diff: 2 Page Ref: 188
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

40) Attractiveness creates ________ bias because it causes a person to confer ________ traits to
that person.
A) stereotype; positive
B) halo effect; positive
C) devil effect; negative
D) halo effect; positive or negative
Answer: B
Diff: 2 Page Ref: 188
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

10
Copyright © 2014 Pearson Education, Inc.
41) Decision making ________ has an emotional component.
A) frequently
B) never
C) always
D) almost never
Answer: A
Diff: 2 Page Ref: 188
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

42) The sympathetic nervous system controls ________.


A) conscious thought
B) unconscious processes, such as heart rate and breathing
C) all bodily processes
D) perceptions
Answer: B
Diff: 2 Page Ref: 189
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

43) Emotions strongly influence ________.


A) the information we choose to focus on
B) the information we choose to ignore
C) the information we choose to focus on or ignore
D) the information we assign the greatest value
Answer: C
Diff: 2 Page Ref: 189
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

44) Intuition employs ________ knowledge.


A) conscious
B) unconscious
C) purely logical
D) illogical
Answer: B
Diff: 2 Page Ref: 189
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

11
Copyright © 2014 Pearson Education, Inc.
45) Which statement is true?
A) Intuition is usually logical and useful.
B) Intuition is usually logical but not useful.
C) Intuition is usually illogical but still useful.
D) Intuition is usually illogical and not useful.
Answer: A
Diff: 2 Page Ref: 189
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

46) A chess player typically relies on which kind of decision making when considering a chess
move?
A) logical only
B) intuitive only
C) both logical and intuitive
D) neither logical and intuitive
Answer: C
Diff: 2 Page Ref: 190
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

47) What is the first step in the decision-making process?


A) ask the question
B) identify the problem
C) list alternatives
D) choose an alternative
Answer: B
Diff: 1 Page Ref: 191
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

48) Which sentence best defines a problem?


A) A problem exists when your current state is not in line with an ideal state.
B) A problem exists when your ideal state is not properly defined.
C) A problem exists when your current state is not in line with your desired state.
D) A problem exists when it is not possible for you to reach your ideal state.
Answer: C
Diff: 2 Page Ref: 191
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

12
Copyright © 2014 Pearson Education, Inc.
49) In the decision-making process, when you allocate weights to decision criteria you are
________.
A) identifying the categories that are important to you
B) identifying possible solutions
C) evaluating possible solutions
D) rating the categories by importance
Answer: D
Diff: 2 Page Ref: 193
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

50) Which kinds of decisions are hardest to evaluate?


A) a decision made by a single person
B) emotionally charged decisions
C) a decision made by a group
D) emotionally charged group decisions
Answer: D
Diff: 2 Page Ref: 195
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

51) Which statement best describes a key assumption of bounded rationality?


A) Information is never complete.
B) Information is never completely accurate.
C) Information is never complete nor is it completely accurate.
D) Information is either complete or completely accurate, but not both.
Answer: C
Diff: 2 Page Ref: 196
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

52) Bounded rationality assumes that the decision maker ________.


A) is completely rational
B) relies entirely on emotions, intuitions, and biases
C) relies on both rational and emotional thinking
D) is completely irrational
Answer: C
Diff: 2 Page Ref: 196
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

13
Copyright © 2014 Pearson Education, Inc.
53) When people satisfice, they select ________.
A) a less than optimal choice
B) the optimal choice under any conditions
C) the second-best choice
D) a choice that is likely to be inadequate
Answer: A
Diff: 2 Page Ref: 197
Objective: 6.4 Understand how to make sound decisions with incomplete information

54) The 80/20 rule holds that ________.


A) small inputs result in small outputs
B) small inputs often result in large outputs
C) large inputs often result in large outputs
D) inputs are completely unrelated to outputs
Answer: B
Diff: 2 Page Ref: 198
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

55) An inference uses ________ to draw a conclusion.


A) subconscious information
B) evidence or known information
C) presuppositions and assumptions
D) pure logic
Answer: B
Diff: 2 Page Ref: 200
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.5 Improve your critical thinking skills

56) A decision maker is using deduction when she begins with a ________ and uses it to
________.
A) specific conclusion; create a general rule
B) specific conclusion; draw another specific conclusion
C) general rule; create another general rule
D) general rule; draw a specific conclusion
Answer: D
Diff: 2 Page Ref: 200
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.5 Improve your critical thinking skills

14
Copyright © 2014 Pearson Education, Inc.
57) When a manager uses a spreadsheet to analyze sales data, which critical thinking skill is she
using?
A) recognition of assumptions
B) evaluation of arguments
C) interpretation
D) deduction
Answer: C
Diff: 3 Page Ref: 200
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.5 Improve your critical thinking skills

58) Which thinking trap is best described by the phrase "don't rock the boat"?
A) status quo
B) anchoring
C) sunk costs
D) confirming evidence
Answer: A
Diff: 3 Page Ref: 203
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

59) Which of the following describes the "sunk costs" thinking trap?
A) Let sleeping dogs lie.
B) Your first impression is usually right.
C) Don't throw good money after bad.
D) Always start with the low-hanging fruit.
Answer: C
Diff: 3 Page Ref: 203
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

60) Which thinking trap is best described by the term "cherry picking"?
A) sunk costs
B) confirming evidence
C) framing
D) anchoring
Answer: B
Diff: 3 Page Ref: 203
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

15
Copyright © 2014 Pearson Education, Inc.
61) Participants in the first stage of a brainstorming session typically ________.
A) offer ideas without any critiquing
B) critique each others' ideas harshly
C) prioritize ideas that have been suggested in previous sessions
D) listen to suggestions from experts
Answer: A
Diff: 2 Page Ref: 204
Objective: 6.6 Describe what HR can do to support critical thinking and sound decision making

62) The Delphi technique is essentially a focus group of ________.


A) ordinary citizens
B) employees
C) experts
D) managers
Answer: C
Diff: 2 Page Ref: 205
Objective: 6.6 Describe what HR can do to support critical thinking and sound decision making

63) Mindfulness requires a decision maker to be more aware of ________.


A) the available alternatives
B) the stakeholders
C) the factors that influence the decision
D) the importance of the decision
Answer: C
Diff: 2 Page Ref: 206
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.7 Describe what you can do to improve critical thinking and sound decision making

64) In single-loop learning, a person changes his ________ as a result of experience ________.
A) beliefs; but not the behavior that expresses those beliefs
B) behavior; but not the beliefs that underlie the behavior
C) behavior; as well as the beliefs that underlie the behavior
D) beliefs; as well as the behavior that expresses those beliefs
Answer: B
Diff: 2 Page Ref: 207
AACSB skills: Analytic skills
Objective: 6.7 Describe what you can do to improve critical thinking and sound decision making

16
Copyright © 2014 Pearson Education, Inc.
65) In double-loop learning, a person changes her ________ as a result of experience ________.
A) beliefs; but not the behavior that expresses those beliefs
B) behavior; but not the beliefs that underlie the behavior
C) behavior; as well as the beliefs that underlie the behavior
D) beliefs; as well as the situation that challenged those beliefs
Answer: C
Diff: 2 Page Ref: 207
AACSB skills: Analytic skills
Objective: 6.7 Describe what you can do to improve critical thinking and sound decision making

66) People who carry out double-loop learning are ________ to repeat problem behavior because
they have ________ the beliefs that underlie their behavior.
A) not likely; changed
B) not likely; not changed
C) likely; not changed
D) likely; changed
Answer: A
Diff: 2 Page Ref: 207
AACSB skills: Reflective thinking skills
Objective: 6.7 Describe what you can do to improve critical thinking and sound decision making

67) Paola is using a formal decision-making process to buy a new car. She has already identified
her problem as: Which car should she buy? Which of the following identifies criteria that Paola
might establish for her decision?
A) List all available models of cars currently on the market.
B) List characteristics such as price, reliability, and style.
C) Rank how important characteristics such as price, reliability, and style are to her.
D) Use data to rank such characteristics such as price, reliability, and style.
Answer: B
Diff: 2 Page Ref: 192
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

68) Brendan and Leo are looking to purchase their first home.Which of the following identifies
weighted decision criteria they might establish for this decision?
A) List house styles such as ranch, bungalow, and townhouse.
B) Make an unranked list of characteristics such as price, neighborhood, and lot size.
C) Rank the general importance of characteristics such as price, neighborhood, and lot size.
D) Use data to rank individual homes with respect to price, neighborhood, and lot size.
Answer: C
Diff: 2 Page Ref: 193
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

17
Copyright © 2014 Pearson Education, Inc.
69) Sabrina needs to decide where to travel during her sabbatical. Sabrina is very methodical, so
she starts a database with a file for each city she's dreamed of seeing, including Rome, Paris and
Ankara. This describes which step of the formal decision-making process?
A) listing alternatives
B) analyzing alternatives
C) listing decision criteria
D) listing weighted decision criteria
Answer: A
Diff: 2 Page Ref: 193
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

70) Chantal is facing one of the most important decisions of her life: finding a wedding planner!
When she interviews and evaluates proposals from different planners, Chantal is ________.
A) identifying problems
B) analyzing decision criteria
C) choosing an alternative
D) analyzing alternatives
Answer: D
Diff: 3 Page Ref: 194
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

71) Jose has spent the last three weekends test-driving new cars. At which stage of the decision-
making process will Jose actually buy his car?
A) when he finally identifies the problem
B) when he identifies a reasonable alternative
C) when he implements a specific alternative
D) when he evaluates his decision
Answer: C
Diff: 2 Page Ref: 195
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

18
Copyright © 2014 Pearson Education, Inc.
72) Cole has been directed by upper management to lay off five of his team members. Each
employee has merits, and he has worked with them for many years. At which stage of the
decision-making process will Cole's emotions and intuition most likely play an important role?
A) establishing decision criteria
B) analyzing alternatives
C) allocating weights to decision criteria
D) evaluating the decision
Answer: C
Diff: 3 Page Ref: 193
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

73) Marta is pregnant and has gone through a methodical process to find an OB/GYN. Once she
selects a doctor, why does Marta need to carry out the final step in the decision-making process?
A) to see if she successfully solved her problem
B) to see if there are other alternatives
C) to see if she selected the best doctor
D) to avoid having emotions affect her decision
Answer: A
Diff: 2 Page Ref: 195
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

74) Dawid is trying to decide which colleges to apply for admission. His college guidebooks
identify over 350 selective colleges, with key data and brief summaries. To begin listing
alternatives, Dawid's information is most likely ________.
A) complete and accurate for his purposes
B) incomplete, but included data is accurate
C) complete, but not entirely accurate
D) complete, but Dawid cannot evaluate the quality of the information
Answer: A
Diff: 3 Page Ref: 196
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

19
Copyright © 2014 Pearson Education, Inc.
75) Martin wrote a screenplay and wants to pitch it to production companies. The Hollywood
Creative Directory lists over 400 companies. Martin wants to find the best targets for his script,
but he doesn't have time to research that many companies. What will likely affect his decision-
making process?
A) the 80/20 rule
B) bounded rationality
C) recognition of assumptions
D) anchoring bias
Answer: B
Diff: 3 Page Ref: 198
AACSB skills: Analytic skills
Objective: 6.4 Understand how to make sound decisions with incomplete information

76) Jennifer has identified ten things she needs in a vacation spot. She winnows her list down to
the four most important issues: price, climate, outdoor activities, and food. What does this short
list represent?
A) a list of alternatives
B) a list of decision criteria
C) a weighted list of decision criteria
D) a weighted list of alternatives
Answer: C
Diff: 3 Page Ref: 193
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.3 Learn to apply a systematic approach to decision making

77) Sarah and Yuri are getting married and have tasted ten different wedding cakes. All of them
are great, but they can't seem to agree on a final selection. With so many other things to focus on,
they decide to go with the mid-priced cake and move on. Sarah and Yuri are ________.
A) being intuitive
B) satisficing
C) letting their emotions take over
D) being purely rational
Answer: B
Diff: 3 Page Ref: 197
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

20
Copyright © 2014 Pearson Education, Inc.
78) Nan wants to take her newly adopted son on his first real summer vacation. Nan considered a
camping trip, going to a big theme park, and even a cruise. But she decided to rent a cottage on
Cape Cod, because her parents took her there when she was little. Which sentence best describes
Nan's decision making?
A) She is relying on intuition.
B) She is relying on emotion.
C) She is being purely rational.
D) She is being purely irrational.
Answer: B
Diff: 3 Page Ref: 188
AACSB skills: Reflective thinking skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

79) Teresa has been researching a number of colleges. After seeing a TV profile of students at
Humboldt State, she decided to apply there because they seemed like "her kind of people."
Which sentence best describes her decision making?
A) She is relying on intuition.
B) She is relying on emotion.
C) She is being purely rational.
D) She is being irrational.
Answer: A
Diff: 3 Page Ref: 189
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

80) Many of Efraim's friends are applying to an experimental college in upstate New York. The
program sounds interesting, but he heard from someone that the school's sustainability reports
were rejected two years running. So that school is off his list. What is impacting Efraim's
decision making?
A) intuition
B) the devil effect
C) rationality
D) the halo effect
Answer: B
Diff: 3 Page Ref: 188
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

21
Copyright © 2014 Pearson Education, Inc.
81) Which statement is accurate?
A) Decision making is a purely rational process.
B) Decision making is not a purely rational process.
C) Decision making is a purely emotional process.
D) Decision making is not an emotional process.
Answer: B
Diff: 3 Page Ref: 185
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

82) You meet a dog named Sam. How are you likely to store this information in your brain?
A) in an existing "ordinary dog name" schema that includes other dogs that you know: Rover,
Barky, and Lucy
B) in a new "dog name" schema created especially for Sam, while retaining any other existing
"dog name" schemas
C) in a "name" schema that includes other individuals that you know: Bill, Nancy, and so on
D) after deleting any "ordinary dog name" schema that you already have, in a new "ordinary dog
name" schema for Sam
Answer: A
Diff: 3 Page Ref: 186
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

83) You meet a dog named Kitty. How would a person most likely store this information in the
brain?
A) in an existing "ordinary dog name" schema that includes other ordinary dogs that you already
know: Rover, Barky, and Fido
B) in an existing "cat name" schema that includes other cats that you know: Goldie, Sneaky, and
Snoozy
C) in a completely new "unusual dog name" schema that includes dogs with names that sound
like names for cats
D) in a completely new "unusual cat name" schema that includes cats with names that sound like
names for dogs
Answer: C
Diff: 3 Page Ref: 186
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

22
Copyright © 2014 Pearson Education, Inc.
84) Which of the following statements about stereotypes is NOT true?
A) They are often negative.
B) They reduce cognitive processing.
C) They are usually obvious.
D) They are resistant to change.
Answer: C
Diff: 3 Page Ref: 187
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

85) The halo effect ________ a form of stereotyping because ________.


A) is; it evaluates a person in a biased way
B) is not necessarily; it evaluates a person in a positive way
C) is; it evaluates a person in a positive way
D) is not necessarily; it does not associate a person with a group
Answer: D
Diff: 3 Page Ref: 188
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

86) Which of the following is NOT a lesson that the 80/20 rule teaches?
A) A small number of people can make a big difference in the outcome of events.
B) A large number of people can make a small difference in the outcome of events.
C) A small number of people can make a small difference in the outcome of events.
D) Pay attention to the people in your organization that make a difference.
Answer: C
Diff: 3 Page Ref: 198
AACSB skills: Analytic skills
Objective: 6.4 Understand how to make sound decisions with incomplete information

87) Which example uses deduction to draw a specific conclusion?


A) This triangle has three sides, therefore all triangles have three sides.
B) This figure has three sides, therefore all figures are triangles.
C) All triangles have three sides, therefore this three-sided figure is a triangle.
D) All figures do not have three sides, therefore this triangle is not a figure.
Answer: C
Diff: 3 Page Ref: 200
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

23
Copyright © 2014 Pearson Education, Inc.
88) Your tennis coach says that you have fallen into the "anchoring" thinking trap. Which of the
following statements best describes you?
A) Your serve has been way off for months, but you are reluctant to modify your service motion,
even though it is likely to help.
B) Your one-handed backhand has a fundamental flaw. Rather than work on a two-handed
backhand, you decide to improve on your existing shot.
C) If you hit a really bad shot, you tend to dwell on it rather than forgetting about it and moving
on.
D) If an opponent hits a few lucky shots in the beginning of the match, you stop going to the net
— even though it is your best strategy.
Answer: D
Diff: 3 Page Ref: 203
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

89) As CEO of a book store chain, Stuart led his company through a national expansion in the
1990s. As e-commerce expanded in the 2000s, followed by the growth of e-readers, Stuart
continued expansion plans based on the chain's original model. In 2012, the company folded.
What was Stuart's mistake?
A) anchoring bias
B) estimating and forecasting bias
C) sunk cost bias
D) framing bias
Answer: C
Diff: 3 Page Ref: 203
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

90) Most people end up "satisficing" when they make an important decision. Which of the
following is NOT a good explanation for this situation?
A) People are lazy and don't want to analyze their choices in a systematic way.
B) People are emotional, which frequently causes them to choose a less-than-optimal solution to
a problem.
C) For most problems, people lack complete information and enough time to properly analyze
the situation.
D) People are often too analytical in their approach to decision making.
Answer: D
Diff: 3 Page Ref: 197
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

24
Copyright © 2014 Pearson Education, Inc.
91) At a staff party, a colleague tells you that decision making is "strictly a rational process."
Explain how you would respond to this person.
Answer: Sample response: I would point out that almost all nonprogrammed decisions include
an element of emotion and intuition — and often to a large degree. For example, in deciding
whom to hire for an important position, managers pore over documents of qualifications,
recommendations, and work samples, but their decision often hinges on an emotional response:
"I didn't like that guy." Rather than try to deny this emotional component of almost all complex
decisions, a person should recognize it as one of the factors that will influence the final decision.
Diff: 3 Page Ref: 185
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

92) What is the difference between accommodation and assimilation?


Answer: Accommodation occurs when you encounter totally new information that does not fit
easily into any of your existing mental categories. Rather than try to force it into a category, you
create a new schema and a new way of thinking about the situation. Assimilation addresses the
same situation, but rather than creating a new mental category it tries to force the information
into an existing schema.
Diff: 3 Page Ref: 186
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

93) Why is assimilation considered harmful in some situations?


Answer: Sample response: Assimilation can be harmful when a person fails to create a new
mental category to reflect a change or new circumstance. A good example of this is a person who
characterizes goods made in China as "cheap junk." While that may have been true years ago,
most current Chinese products are of high quality. To remedy the situation, the person should
discard the old schema that characterizes Chinese products as "cheap junk" and create a new
schema of "quality products made in China." Creating this new category allows the person to see
the situation as it really is, not how it exists in his mind.
Diff: 3 Page Ref: 186
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

25
Copyright © 2014 Pearson Education, Inc.
94) Your boss tells you that stereotyping is not a bad thing, that it's just a shortcut that employs
common sense. How do you respond?
Answer: Sample response: While in limited cases stereotyping can be useful, in general it is
almost always a harmful practice. The worst aspect of stereotyping is that it see the person only
as part of a group, and fails to respect the individual's unique traits and abilities. You can use
stereotyping as a shortcut, but you should always be aware of the dangers it poses. For example,
when collecting money for an animal shelter, you may stereotype dog owners as likely
contributors. However, to extend this stereotype of dog owners supporting any political or social
justice view would not only be discriminatory, it would also likely be wrong.
Diff: 3 Page Ref: 187
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

95) You are the marketing manager for a software company. Focus group data for a new tutoring
product, Math Freak, shows that 15 percent of users showed a 50 point or higher improvement in
their test scores. Another 36 percent showed a small increase. The other 49 percent had no score
change or actually had their score drop. Your job is to maximize sales of Math Freak. Which
critical thinking skill will you draw upon?
Answer: Sample response: I would employ interpretation to help me articulate the focus group
data in a way that presents the benefits of the product to potential customers. While almost one-
half of users showed no improvement in test scores, over 50 percent did improve. So I would
direct my team to build a campaign around the message that "Math Freak improves test scores
for a majority of its users." This does not tell consumers the entire story, but it is not untruthful.
Interpreting the data this way achieves the objectives of my position, which is to maximize
product sales.
Diff: 3 Page Ref: 204
Objective: 6.5 Improve your critical thinking skills

96) What do you think is the most important step in the decision-making process? Explain your
position.
Answer: Sample response: In my opinion, identifying the problem is the most important step. If
you identify the wrong problem, the rest of your effort is worthless. On the other hand, choosing
the wrong alternative may produce the wrong solution, but with a bit of effort you can correct the
mistake and try a new solution. If you've identified the wrong problem, however, you can't
simply try a new solution. You need to begin again and go through the entire decision-making
process.
Diff: 3 Page Ref: 191
AACSB skills: Analytic skills
Objective: 6.3 Learn to apply a systematic approach to decision making

26
Copyright © 2014 Pearson Education, Inc.
97) In Star Trek, Spock is said to be a "perfectly rational being." Explain why even Spock is
often unable to make a perfectly rational decision when the starship is threatened by aliens.
Answer: Sample response: Though Spock may be perfectly rational, he still needs to deal with
bounded rationality. When the ship is threatened, information about the enemy is not usually
complete or accurate. Spock often does not know who the enemy is or what their strengths and
motives are. Spock cannot accurately evaluate the quality of his information either. In addition,
Spock often lacks the time to accurately analyze the threat, so again he works under conditions
of bounded rationality.
Diff: 3 Page Ref: 196
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.4 Understand how to make sound decisions with incomplete information

98) Your boss is giving a speech on decision making and would like some scientific evidence
about using intuition. Is intuitive decision making reliable? Explain.
Answer: Sample response: Scientists think that intuitive decision making is reliable and not
illogical. Rather than using conscious logic, intuitive thinking instead uses subconscious logic
based on reasoning and facts that are hidden from view, so it seems illogical, but it is not.
Perhaps more importantly, scientists have discovered that brain cells regulating emotion and
intuition have strong connection to pattern-recognition cells. Pattern recognition is an important
higher order skill that is seen as critical in decision making. So it appears that intuitive decision
making is not only valid, it may in some ways be superior to so-called rational decision making.
Diff: 3 Page Ref: 189
AACSB skills: Analytic skills
Learning Outcome: 09. Identify the different types of decisions managers make and discuss how
they make decisions
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

99) In your presentation at the last quarterly meeting, you were accused of falling into the
"confirming evidence" thinking trap. Describe how you can correct your position in the
upcoming meeting.
Answer: Sample response: By confirming evidence, I've been accused of "cherry picking" —
finding only the evidence that supports my position and ignoring evidence that contradicts what I
have to say. To correct the situation, I need to seek out a wide variety of sources that are critical
or supportive of my position. If the critical sources do not seem valid, I should explain in depth
why I think that they are not valid. If the critical sources are credible, I may need to modify some
of my positions.
Diff: 3 Page Ref: 203
AACSB skills: Analytic skills
Objective: 6.5 Improve your critical thinking skills

27
Copyright © 2014 Pearson Education, Inc.
100) Officials for the Motion Picture Academy's Oscar Awards are asking members to make
more rational decisions and eliminate all emotion and biases when voting. What is your response
to this request?
Answer: Sample response: I think the request is somewhat off-base, yet not totally unrealistic.
There is almost no way to be "objective" about a movie. Academy members are voting, for the
most part, on the emotional impact of a movie or actor. So asking them to eliminate their
emotional response seems wrong and counterproductive. In terms of eliminating personal biases,
voters could show improvement. For example, rumors often indicate that Hollywood people
"like" this director or "don't like" that actor. Here, voters could be more disciplined and
objective. They should vote based on what they see on the screen, not their feelings about the
people who made the movie.
Diff: 3 Page Ref: 189
AACSB skills: Analytic skills
Objective: 6.2 Compare and contrast how cognitive and emotional processes affect decision
making

28
Copyright © 2014 Pearson Education, Inc.

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