Test Bank For Organizational Behavior 12 Edition John R Schermerhorn

Test Bank for Organizational Behavior, 12 Edition :
John R. Schermerhorn
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Test Bank for Organizational Behavior, 12 Edition : John R. Schermerhorn
Schermerhorn, Hunt, Osborn & Uhl-Bien – Organizational Behavior, 12th edition Chapter 9 Test Bank
File: ch9, Chapter 9: Decision-Making and Creativity
True/False
1. Decision-Making is the process of choosing a course of action for dealing with a problem or
opportunity.
Ans: True
Page: 196
Level: Easy
Learning Objective 1: Describe what is involved in the decision-making process.
Section Reference: Steps in Decision Making
2. Rational Decision-Making is a five-step process that starts with recognition and definition of
the problem or opportunity, and ends with evaluation of results and any needed follow-up.
Ans: True
Page: 196
Level: Easy
3. Decision-Making choices usually have a moral dimension that might be overlooked.
Ans: True
Page: 197
Level: Easy
Section Reference: Ethical Reasoning and Decision Making
4. Teams may suffer from lack of participation error in the stage of decision-making where
alternative courses of action are identified and analyzed.
Ans: False
Page: 197
Level: Easy
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5. A moral dilemma is defined as a situation in which a decision-maker faces two or more

ethically uncomfortable alternatives.
Ans: True
Page: 198
Level: Easy
6. Consideration of the moral problem might change decisions, but seldom would change how
the decision is implemented.
Ans: False
Page: 198
Level: Medium
7. The justice criteria asks if the decision satisfies all constituents or stakeholders.
Ans: False
Page: 199
Level: Medium
8. The utility question asks if the decision respects the rights and duties of everyone.
Ans: False
Page: 199
Level: Medium

9. Programmed decisions are made as standardized responses to recurring

situations and routine problems.
Ans: True
Page: 200
Level: Easy
Section Reference: Types of Decisions
10. Programmed decisions implement solutions that have already been determined by past
experience as appropriate for the problem at hand.
Ans: True
Page: 200
Level: Easy
11. Examples of programmed decisions include reordering inventory automatically when stock
falls below a predetermined level and issuing a written reprimand to someone who violates a
specific work rule.
Ans: True
Page: 200
Level: Medium
12. Nonprogrammed decisions address routine problems that arise on a regular basis and for
which standard solutions have been derived.
Ans: False
Page: 200
Level: Medium
13. Nonprogrammed decisions are created to deal uniquely with a problem at hand.

Ans: True
Page: 200
Level: Easy
14. An example of a nonprogrammed decision is when a senior marketing manager who has to
respond to the introduction of a new product by a foreign competitor.
Ans: True
Page: 200
Level: Easy
15. The most extreme type of programmed decision is the crisis decision.
Ans: False
Page: 200
Level: Medium
16. Acts of terrorism and workplace violence are examples of crisis decisions.
Ans: True
Page: 200
Level: Difficult
17. When a crisis occurs, managers should disregard skeptics as these people foster disagreement
and lack of commitment.
Ans: False
Page: 200
Level: Medium


18. Unfortunately, formal crisis management programs are decreasing in popularity in

organizations.
Ans: False
Page: 200
Level: Easy
19. Decisions in organizations are typically made under three different conditions or
environments: certainty, jeopardy, and skepticism.
Ans: False
Page: 201
Level: Difficult
Section Reference: Decision Environments
20. Certain environments exist when information is sufficient to predict the results of each
alternative in advance of implementation.
Ans: True
Page: 201
Level: Easy
21. Certainty is a less than ideal condition for managerial problem solving and Decision-Making.
Ans: False
Page: 201
Level: Easy

22. Certainty is the norm in decision situations.
Ans: False
Page: 201
Level: Medium
23. Risk environments exist when decision makers lack complete certainty regarding the
outcomes of various courses of action, but they are aware of the probabilities associated with
their occurrence.
Ans: True
Page: 201
Level: Easy
24. When dealing with risk environments, probabilities are assigned through objective statistical
procedures rather than intuition.
Ans: False
Page: 201
Level: Medium
25. Uncertain environments exist when managers have so little information that they cannot even
assign probabilities to various alternatives and their possible outcomes.
Ans: True
Page: 202
Level: Easy

26. Of the three decision-making environments (certainty, risk, and uncertainty), risk
environments are the most difficult for decision makers.
Ans: False
Page: 202
Level: Medium
27. Responses to uncertain environments seldom involve intuition, educated guesses, or hunches.
Ans: False
Page: 202
Level: Medium
28. Risk management focuses on anticipating risk in situations and factoring risk alternatives into
the decision-making process.
Ans: True
Page: 202
Level: Medium
Section Reference: Risk Management in Decision Making
29. Threats to a brand or the firm’s reputation are referred to as reputation risks.
Ans: True
Page: 202
Level: Easy
30. In the classical decision model, the problem is not clearly defined, knowledge of possible
action alternatives and their consequences is limited, and the manager chooses a satisfactory
solution to the problem.

Ans: False
Page: 203
Level: Medium
Learning Objective 2: Outline the alternative decision-making models including the classical,
behavioral, and intuitive decision models.
Section Reference: Classical Decision Model
31. In the behavioral decision model, the manager faces a clearly defined problem, knows all
possible action alternatives and their consequences, and then chooses the alternative that
offers the optimum solution to the problem.
Ans: False
Page: 203
Level: Medium
Section Reference: Behavioral Decision Model
32. Classical decision theory models view the manager as acting in a world of complete
certainty.
Ans: True
Page: 203
Level: Easy
33. Behavioral decision theory models view the manager as acting in a world of complete
certainty.
Ans: False
Page: 203
Level: Medium

34. The behavioral decision model allows for an optimizing decision that gives the absolute best
solution to the problem.
Ans: False
Page: 203
Level: Medium
35. Classical decision theory appears to fit very well in today’s chaotic world of globalizing
high-tech organizations.
Ans: False
Page: 203
Level: Medium
36. Behavioral decision theory models accept the notion of bounded rationality and suggest that
people act only in terms of what they perceive about a given situation.
Ans: True
Page: 203
Level: Easy
37. Behavioral scientists are cautious about applying classical decision theory to many decision
situations because they recognize that human beings have cognitive limitations that restrict
their information-processing capabilities.
Ans: True
Page: 203
Level: Medium

38. Bounded rationality refers to the idea that, while individuals reason well and are logical, they
have their limits with respect to interpreting and making sense of things within the context of
their personal situations.
Ans: True
Page: 203
Level: Easy
39. The behavioral decision maker is viewed as acting most often under uncertain conditions and
with limited information.
Ans: True
Page: 203
Level: Easy
40. Bounded rationality is choosing the first alternative that appears to give an acceptable or
satisfactory resolution of the problem.
Ans: False
Page: 203-204
Level: Difficult
41. A key element in Decision-Making under risk and uncertainty is intuition.
Ans: True
Page: 204
Level: Easy

Section Reference: Systematic and Intuitive Thinking
42. Intuition adds elements of flexibility and spontaneity to Decision-Making, thereby offering
potential for creativity and innovation.
Ans: True
Page: 204
Level: Easy
43. Jeff Bezos of Amazon.com believes there is a place for both systematic and intuitive
decision-making in management.
Ans: True
Page: 204
Level: Medium
44. Teams engaged in systematic thinking would be expected to make a plan before taking
action.
Ans: True
Page: 204
Level: Easy
45. Judgment, or the use of one’s intellect, is important in all aspects of Decision-Making.
Ans: True
Page: 205

Level: Easy
Learning Objective 3: Identify the key decision-making traps and issues.
Section Reference: Judgmental Heuristics
46. Heuristics are simplifying strategies or “rules of thumb” used to make decisions.
Ans: True
Page: 205
Level: Easy
47. The availability heuristic involves assessing a current event based on past occurrences that
are easily available in one’s memory.
Ans: True
Page: 205
Level: Easy
48. The representativeness heuristic bases a decision on similarities between the situation at hand
and stereotypes of similar occurrences.
Ans: True
Page: 205
Level: Medium
49. An example of the application of the anchoring and adjustment heuristic is the team leader
who selects a new member not because of any special qualities of the person, but only
because the individual comes from a department known to have produced high performers in
the past.
Ans: False
Page: 205
Level: Difficult


50. In managing the decision-making process, one of the first issues to address is whether to
actually address the decision situation.
Ans: True
Page: 206
Level: Medium
Section Reference: Knowing When to Decide
51. Research shows that to prevent future errors, small problems should get the same time and
attention as bigger ones.
Ans: False
Page: 206
Level: Easy
Section Reference: Knowing When to Decide
52. A mistake commonly made by many new managers and team leaders is presuming that they
must solve every problem by making every decision themselves.
Ans: True
Page: 207
Level: Easy
Section Reference: Knowing Who to Involve
53. Creativity is more likely to occur when a person has a lot of task expertise.
Ans: True
Page: 212
Level: Medium
Learning Objective 4: Discuss what can be done to stimulate creativity in decision making.
Section Reference: Personal Creativity Drivers

54. Switching members among teams to gain insights from diverse backgrounds and experiences
is known as associative play.
Ans: False
Page: 213
Level: Medium
Section Reference: Team Creativity Drivers
Multiple Choice
55. The process of choosing a course of action for dealing with a problem or opportunity is
__________.
a) selection making
b) decision shaping
c) decision-making
d) judgment resolution
e) judgment generation
Ans: c
Page: 196
Level: Easy
56. Which of the following is NOT one of the five basic steps involved in the rational decision
model?
a) recognize and define the problem or opportunity.
b) identify and analyze alternative courses of action, and estimate their effects on the
problem or opportunity.
c) choose a preferred course of action.
d) inform relevant stakeholders of the decision and its consequences.
e) implement the preferred course of action.
Ans: d
Page: 196
Level: Easy


57. The first step in the rational decision model is _______________.

a) choosing a preferred course of action
b) recognizing and defining the problem or opportunity
c) identifying the alternative courses of action
d) evaluating the results
e) implementing the preferred course of action
Ans: b
Page: 196-197
Level: Medium
58. The lack-of-participation error occurs in which phase of the rational decision model?
a) evaluating results
b) identifying alternatives
c) implementing preferred course of action
d) choosing a preferred course of action
e) recognizing the problem
Ans: c
Page: 197
Level: Medium
59. When a decision maker faces two or more ethically uncomfortable alternatives, it is referred
to as a __________________.
a) criteria question
b) moral dilemma
c) justice decision
d) moral problem
e) rational decision
Ans: b
Page: 198
Level: Medium


60. Which of the following is NOT one of Cavanagh’s criteria questions for assessing ethics in
decision-making?
a) Does the decision satisfy all constituents or stakeholders?
b) Does the decision respect the rights of everyone?
c) Is the decision consistent with the canons of justice?
d) Does the decision make sense?
e) Is the decision consistent with my responsibility to care?
Ans: d
Page: 199
Level: Medium
61. Which of the following is Cavanagh’s utility question for assessing ethics in Decision-
Making?
a) Does the decision satisfy all constituents or stakeholders?
b) Does the decision respect the rights and duties of everyone?
c) Is the decision consistent with the canons of justice?
d) Is the decision consistent with my responsibilities to care?
e) None of the above.
Ans: a
Page: 199
Level: Medium
62. A decision is exposed to public scrutiny and forces decision-makers to consider it in the
context of full transparency with the use of __________.
a) rational decision-making
b) spotlight questions
c) satisficing
d) moral dilemmas
e) criteria questions

Ans: b
Page: 199
Level: Medium
63. Which of the following is considered to be a spotlight question as mentioned in the text?
a) What might my friend do if he was in a similar situation as me?
b) How would I feel if my family found out about this decision?
c) If I make this decision, will I be able to sleep at night?
d) Would most other people in society make the same decision as I would?
e) None of the above.
Ans: b
Page: 199
Level: Difficult
64. __________ are routine problems that arise on a regular basis and which can be addressed
through standard responses.
a) Arbitrary decisions
b) Nonprogrammed decisions
c) Fixed decisions
d) Programmed decisions
e) Standardized decisions
Ans: d
Page: 200
Level: Easy
65. Examples of __________ decisions include reordering inventory automatically when stock
falls below a predetermined level and issuing a written reprimand to someone who violates a
specific work procedure.
a) uniform
b) standardized
c) programmed
d) fixed

e) nonprogrammed
Ans: c
Page: 200
Level: Medium
66. __________ decisions are specifically crafted or tailored to the situation at hand.
a) Ad hoc
b) Discretionary
c) Nonprogrammed
d) Arbitrary
e) Elective
Ans: c
Page: 200
Level: Easy
67. Acts of terrorism and IT failures are examples of which type of decision?
a) rational decisions
b) ethical decisions
c) non-programmed decisions
d) programmed decisions
e) crisis decisions
Ans: e
Page: 200
Level: Medium
68. Problem-solving decisions in organizations are typically made under three different
conditions or environments. These are __________.
a) confidence, chance, and doubt
b) certainty, risk, and uncertainty
c) conviction, hazard, and concern

d) certainty, jeopardy, and skepticism

e) confidence, hazard, and doubt
Ans: b
Page: 201
Level: Medium
69. __________ is an ideal condition for managerial problem solving and Decision-Making.
a) Certainty
b) Risk
c) Uncertainty
d) Turbulence
e) Chaos
Ans: a
Page: 201
Level: Easy
70. __________ environments exist when decision makers lack complete certainty regarding the
outcomes of various courses of action, but they are aware of the probabilities associated with
their occurrence.
a) Jeopardy
b) Hazard
c) Risk
d) Assured
e) Uncertain
Ans: c
Page: 201
Level: Easy
71. When dealing with risk environments, managers may assign __________ through objective
statistical procedures or through personal intuition.
a) potentialities

b) expectations
c) prospects
d) probabilities
e) feasibilities
Ans: d
Page: 201
Level: Difficult
72. __________ environments exist when managers have so little information that they cannot
even assign probabilities to various alternatives and their possible outcomes.
a) Uncertain
b) Risk
c) Unpredictable
d) Jeopardy
e) Hazard
Ans: a
Page: 201
Level: Easy
73. The most difficult environment for decision makers to cope with is the __________
environment.
a) risk
b) certain
c) expectant
d) uncertain
e) statutory
Ans: d
Page: 202
Level: Easy
74. All of the following statements about uncertain environments are correct EXCEPT:

a) uncertain environments provide little, if any, information to predict expected results

for decision-making alternatives.
b) behavioral responses to uncertain environments seldom involve intuition, educated
guesses, or hunches.
c) uncertain environments require unique, novel, and often totally innovative
alternatives to existing patterns of behavior.
d) an uncertain decision environment may be characterized as a rapidly changing
organizational setting in terms of external conditions.
e) an uncertain decision environment may be characterized as a rapidly changing
organizational setting in terms of the personnel who influence problem and choice
definitions.
Ans: b
Page: 202
Level: Difficult
75. KPMG’s practice that focuses on helping executives identify threats to their firm and manage
them is known as __________.
a) operational risk
b) enterprise risk management
c) strategic management
d) uncertainty avoidance management
e) reputation risk management
Ans: b
Page: 202
Level: Medium
76. Threats to overall business success are called __________ risks.

a) strategic
b) operational
c) financial
d) reputation
e) functional
Ans: a
Page: 202
Level: Easy


77. The __________ model views decision makers as acting in a world of complete certainty.
a) behavioral decision
b) true decision
c) cognitive decision
d) classical decision
e) aesthetic decision
Ans: d
Page: 203
Level: Easy
78. __________ accepts the notion of bounded rationality and assumes that decision makers act
only in terms of what they perceive about a given situation.
a) Behavioral decision theory
b) Perceptive decision theory
c) Cognitive decision theory
d) Classical decision theory
e) Visual decision theory
Ans: a
Page: 203
Level: Easy
79. Behavioral scientists are cautious about applying classical decision theory to many decision
situations because they recognize that human beings have __________ that restrict their
information-processing capabilities.

a) sociological limitations
b) cognitive limitations
c) subjective limitations
d) emotional limitations
e) psychological limitations
Ans: b
Page: 203
Level: Medium
80. The __________ model accepts the notion of bounded rationality and suggests that people
act only in terms of what they perceive about a given situation.
a) behavioral decision theory
b) rational decision theory
c) rigid decision theory
d) scientific decision theory
e) potential investment decision theory
Ans: a
Page: 203
Level: Medium
81. __________ is consistent with the rational model where a decision is approached in a step-
by-step and analytical fashion.
a) Scientific thinking
b) Strategic thinking
c) Systematic thinking
d) Irrational thinking
e) Satisficing
Ans: c
Page: 204
Level: Medium

82. A key element in Decision-Making under risk and uncertainty is __________.

a) discernment
b) unrestrained rationality
c) recognition
d) intuition
e) assimilation
Ans: d
Page: 204
Level: Easy
83. Which of the following statements pertaining to intuition is incorrect?

a) A key element in Decision-Making under certainty is intuition.
b) Intuition is the ability to know or recognize quickly and readily the possibilities of a
given situation.
c) Intuition adds elements of flexibility to Decision-Making.
d) Intuition adds elements of spontaneity to Decision-Making.
e) Intuition offers potential for creativity and innovation.
Ans: a
Page: 204
Level: Difficult
84. __________, or the use of one’s intellect, is important in all aspects of Decision-Making.
a) Intuition
b) Attitudinal formation
c) Judgment
d) Perceiving
e) Sensing
Ans: c
Page: 205

Level: Easy
85. __________ are simplifying strategies or “rules of thumb” used to make decisions.
a) Hindsights
b) Disciplines
c) Regulations
d) Codes
e) Heuristics
Ans: e
Page: 205
Level: Easy
86. __________ can lead to systematic errors that affect the quality, and perhaps ethical
implications, of any decision that is made.
a) Disciplines
b) Regulations
c) Heuristics
d) Rules
e) Codes
Ans: c
Page: 205
Level: Easy
87. An example of the __________ is a product development specialist who bases a decision to
not launch a new product on her recent failure with another product offering.
a) representativeness heuristic
b) accessibility heuristic
c) hindsight heuristic
d) utility heuristic
e) availability heuristic

Ans: e
Page: 205
Level: Difficult
88. An example of the application of the __________ is the team leader who selects a new
member not because of any special qualities of the person, but only because the individual
comes from a department known to have produced high performers in the past.
a) productiveness heuristic
b) accessibility heuristic
c) anchoring and adjustment heuristic
d) representativeness heuristic
e) suitability heuristic
Ans: d
Page: 205
Level: Difficult
89. An example of the application of the __________ is the executive who makes salary increase
recommendations for key personnel by simply adjusting their current base salaries by a
percentage amount.
a) representativeness heuristic
b) anchoring and adjustment heuristic
c) equivalence heuristic
d) incremental change heuristic
e) availability heuristic
Ans: b
Page: 205
Level: Difficult
90. A form of selective perception, the __________ involves seeking only those cues in a
situation that support a preexisting opinion.
a) documentation trap
b) confirmation error

c) validation pitfall
d) authentication trap
e) affirmation pitfall
Ans: b
Page: 206
Level: Medium
Section Reference: Decision Biases
91. Individual decisions are also called __________ decisions.

a) authority
b) consultative
c) solitary
d) valid
e) hindsight
Ans: a
Page: 208
Level: Easy
92. The central premise of the decision-making model developed by Vroom, Yetton, and Jago is
that __________.
a) decisions should be made in the most cost-efficient manner possible
b) group Decision-Making is superior to authority or consultative Decision-Making
c) authority decisions are superior to consultative decisions
d) consultative decisions are superior to authority decisions
e) the decision-making method used should always be appropriate to the problem being
solved
Ans: e
Page: 208
Level: Medium
93. The key problem attributes of the Vroom, Yetton, and Jago decision-making model include
all of the following EXCEPT:

a) the required quality of the decision.

b) the commitment needed from subordinates.
c) the leader’s commitment to participation.
d) commitment probability.
e) goal congruence.
Ans: c
Page: 209
Level: Difficult
94. In the Vroom, Yetton, and Jago decision-making model, __________ are made when the
manager or team leader uses information that he or she possesses and decides what to do
without involving others.
a) groupthink decisions
b) authority decisions
c) consultative decisions
d) group decisions
e) minority decisions
Ans: b
Page: 209
Level: Easy
95. A decision maker tells subordinates that lunch schedule is needed and asks them when they
would like to schedule their lunch and why before making a decision. This is an example of a
________________ decision.
a) groupthink
b) authority
c) consultative
d) strategic
e) minority
Ans: c
Page: 208
Level: Medium


96. A decision maker holds a meeting to get everyone’s agreement on a system for deciding how
to make a lunch schedule. This is an example of a(n) _________ decision method.
a) groupthink
b) authority
c) consultative
d) team
e) minority
Ans: d
Page: 208
Level: Medium
97. In the Vroom, Yetton, and Jago decision-making model, __________ involves the manager
solving the problem or making the decision alone, using information available at the time.
a) variant 1 of authority decisions
b) variant 2 of authority decisions
c) variant 1 of consultative decisions
d) variant 2 of consultative decisions
e) variant 3 of authority decisions
Ans: a
Page: 208
Level: Difficult
obtaining the necessary information from subordinate(s) or other group members and then
deciding on the problem solution

Ans: b
Page: 208
Level: Difficult
sharing the problem with relevant subordinates or other group members individually, getting
their ideas and suggestions without bringing them together as a group, and. then making a
decision that may or may not reflect the subordinates’ input.
Ans: c
Page: 208
Level: Difficult
100. In the Vroom, Yetton, and Jago decision-making model, __________ involves the
manager sharing the problem with subordinates or other group members, collectively
obtaining their ideas and suggestions, and then making a decision that may or may not reflect
the subordinates’ input.
Ans: d
Page: 208
Level: Difficult
101. What Decision-Making concept is reflected in the popular adage, “If at first you don’t
succeed, try, try again?”

a) Intuition
b) Escalating commitment
c) Bounded rationality
d) Non-programmed Decision-Making
e) Satisficing
Ans: b
Page: 210
Level: Easy
Section Reference: Knowing When to Quit
102. __________ is a form of decision entrapment that leads people to do things that the facts
of a situation do not justify.
a) Intuition
b) Nonprogrammed Decision-Making
c) Satisficing
d) Bounded rationality
e) Escalating commitment
Ans: e
Page: 211
Level: Moderate
103. All of the following statements relating to escalating commitment are correct EXCEPT:
a) the tendency to escalate commitments often outweighs the willingness to disengage
from them.
b) decision makers may rationalize negative feedback resulting from an escalated
commitment as a temporary condition.
c) an escalated commitment may result in a decision maker protecting his or her ego by
not admitting that the original decision was a mistake.
d) once it is determined that a chosen course of action is “not working,” decision makers
will re-group and select a different course of action.
e) decision makers may characterize any negative results from an escalated commitment
as a “learning experience” can be overcome with added future effort.
Ans: d
Page: 211
Level: Easy

104. All of the following are ways to avoid getting trapped in escalating commitments
EXCEPT:
a) setting limits in advance on your involvement and commitment to a particular course
of action.
b) making your own decisions.
c) carefully determining just why you are continuing a course of action.
d) reminding yourself of the costs of a course of action.
e) All of the above are ways to avoid getting trapped in escalating commitments.
Ans: e
Page: 211
Level: Difficult
105. All of the following approaches can be used to increase creativity EXCEPT:
a) establishing high expectations for creativity.
b) using associative play.
c) switching members among teams.
d) using analogies.
e) using metaphors to describe a problem.
Ans: a
Page: 213
Level: Easy
Fill in the blank
106. __________ is the process of choosing a course of action for dealing with a problem or
opportunity.
Ans: Decision-Making
Page: 196

Level: Easy
107. The 5-step process of choosing a course of action for dealing with a problem is referred
to as ________.
Ans: the rational decision model

Page: 196
Level: Easy
108. A(n) ________ exists when the decision-maker faces two or more ethically
uncomfortable alternatives.
Ans: moral dilemma

Page: 198
Level: Easy
109. __________ is the philosophical study of morality.
Ans: Ethics
Page: 198
Level: Easy
110. __________ decisions simply implement solutions that have already been determined by
past experience as appropriate for the problem at hand.
Ans: Programmed
Page: 200
Level: Easy

111. A(n) __________ occurs when an unexpected problem can lead to disaster if not resolved
quickly and appropriately.
Ans: crisis decision

Page: 200
Level: Easy
112. __________ environments exist when information is sufficient to predict the results of
each alternative in advance of implementation.
Ans: Certain
Page: 201
Level: Easy
113. A(n) __________ is the degree of likelihood of an event’s occurrence.
Ans: probability
Page: 201
Level: Easy
114. __________ is a short-hand term suggesting that, while humans are capable of exercising
reason and logic, they have their limits.
Ans: Bounded rationality

Page: 203
Level: Medium

115. __________ is choosing the first alternative that appears to give an acceptable or
satisfactory resolution of the problem.
Ans: Satisficing
Page: 204
Level: Easy
116. __________ is the ability to know or recognize quickly and readily the possibilities of a
given situation.
Ans: Intuition
Page: 204
Level: Easy
117. Many managers use simplifying strategies or “rules of thumb” as a means of making it
easier to deal with uncertainty and limited information in problem situations. These
simplifying strategies are called __________.
Ans: heuristics
Page: 205
Level: Easy
118. The __________ involves assessing a current event based on past occurrences that are
easily available in one’s memory.
Ans: availability heuristic

Page: 205
Level: Difficult

119. The __________ bases a decision on similarities between the situation at hand and one’s
stereotypes of similar occurrences.
Ans: representativeness heuristic.

Page: 205
Level: Easy
120. The __________ involves assessing an event by taking an initial value from historical
precedent or an outside source, and then incrementally adjusting this value to make a current
assessment.
Ans: anchoring and adjustment heuristic

Page: 205
Level: Medium
121. The __________ is the tendency to seek confirmation for what is already thought to be
true and to neglect opportunities to acknowledge or find disconfirming information.
Ans: confirmation error

Page: 206
Level: Easy
122. The __________ is a tendency for the decision maker to overestimate the degree to which
he or she could have predicted an event that has already taken place.
Ans: hindsight trap

Page: 206
Level: Easy

123. __________ developed a framework for helping managers choose the Decision-Making
methods most appropriate for various problem situations to insure both better choices and
implementation.
Ans: Victor Vroom, Phillip Yetton, and Arthur Jago

Page: 208
Level: Easy
124. In the Vroom, Yetton, and Jago decision-making model, __________ decisions are made
when the manager or team leader solicits input from other people and then, based on this
information and its interpretation, makes a final choice.
Ans: consultative
Page: 208
Level: Easy
125. In the Vroom, Yetton, and Jago decision-making model, __________ decisions are made
by both consulting with others and allowing them to help make the final choice.
Ans: team
Page: 208
Level: Easy
126. The generation of a novel idea or unique approach to solving performance problems or
exploiting performance opportunities is known as __________.
Ans: creativity
Page: 211
Level: Easy

Section Reference: Stages of Creative Thinking
127. Switching members among teams to gain insights from diverse experiences when
working on problems is referred to as ___________.
Ans: cross pollination

Page: 213
Level: Medium
Essay
128. Define Decision-Making. What are the five basic steps involved in the rational decision
model?
Suggested Answer: Decision-Making is the process of choosing a course of action for dealing
with a problem or opportunity. The five basic steps involved in the rational decision model are:
recognize and define the problem or opportunity; (2) identify and analyze alternative courses of
action, and estimate their effects on the problem or opportunity; (3) choose a preferred course of
action; (4) implement the preferred course of action; and (5) evaluate the results and follow up as
necessary.
Page: 196-197
Level: Difficult
129. Describe the difference between programmed and Nonprogrammed decisions. Provide an
example of each type of decision.
Suggested Answer: Programmed decisions simply implement solutions that have already been
determined by past experience as appropriate for the problem at hand. Examples of programmed
decisions are reordering inventory automatically when stock falls below a predetermined level
and issuing a written reprimand to someone who violates a certain work procedure.
Nonprogrammed decisions are created to deal specifically with a unique problem at hand. An
example is a senior marketing manager who has to respond to the introduction of a new product
by a foreign competitor. Although past experience may help deal with this competitive threat, the

immediate decision requires a creative solution based on the unique characteristics of the present
market situation.
Page: 200
Level: Easy
130. Explain the basic differences between the classical decision model and the behavioral
decision model.
Suggested Answer: Classical decision theory views the manager as operating in a world of
complete certainty. In classical decision theory, the problem is clearly defined, knowledge exists
regarding all possible alternatives and their consequences, and choices focus on the “optimum”
alternative. Behavioral decision theory views the world as one of bounded rationality, which
suggests that people act only in terms of what they perceive about a given situation. It also
recognizes that human beings have cognitive limitations that restrict their information-processing
capabilities. In behavioral decision theory, the problem is not clearly defined, knowledge is
limited regarding alternatives and their consequences, and choices focus on a “satisfactory”
alternative.
Page: 203
Level: Medium
131. Describe the concept of escalating commitment. Explain why escalating commitment can
occur.
Suggested Answer: An organization’s natural desire to continue on a selected course of action

reinforces some natural tendencies among decision makers. Once the agonizing process of
making a choice is apparently completed, executives make public commitments to
implementation, and implementation begins, managers are often reluctant to change their minds
and admit a mistake. Instead of backing off, the tendency is to press on to victory. This is called
escalating commitment – continuation and renewed efforts on a previously chosen course of
action, even though it is not working. Escalating commitment is reflected in the popular adage,
“If at first you don’t succeed, try, try again.”
Page: 210-211
Level: Medium

Test Bank for Organizational Behavior, 12 Edition : John R. Schermerhorn
132. Define creativity and identify the individual and the team creativity drivers.
Suggested Answer: Creativity is the generation of novel idea or unique approach to solving
performance problems or exploiting performance opportunities. Individual creativity drivers are
task expertise, creativity skills, and task motivation whereas team drivers are decision
techniques, creative membership, and external support.
Page: 211-212
Level: Medium
Section Reference: Personal Creativity Drivers
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File: ch9, Chapter 9: Decision-Making and Creativity

3. Decision-Making choices usually have a moral dimension that might be overlooked.

Copyright © 2010 John Wiley & Sons, Inc. 13-1

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Section Reference: Steps in Decision Making

5. A moral dilemma is defined as a situation in which a decision-maker faces two or more

Copyright © 2010 John Wiley & Sons, Inc. 13-2

9. Programmed decisions are made as standardized responses to recurring

Copyright © 2010 John Wiley & Sons, Inc. 13-3

Copyright © 2010 John Wiley & Sons, Inc. 13-4

Learning Objective 1: Describe what is involved in the decision-making process.

18. Unfortunately, formal crisis management programs are decreasing in popularity in

Copyright © 2010 John Wiley & Sons, Inc. 13-5

22. Certainty is the norm in decision situations.

Copyright © 2010 John Wiley & Sons, Inc. 13-6

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41. A key element in Decision-Making under risk and uncertainty is intuition.

Copyright © 2010 John Wiley & Sons, Inc. 13-10

Copyright © 2010 John Wiley & Sons, Inc. 13-11

Copyright © 2010 John Wiley & Sons, Inc. 13-12

Learning Objective 3: Identify the key decision-making traps and issues.

Copyright © 2010 John Wiley & Sons, Inc. 13-13

Copyright © 2010 John Wiley & Sons, Inc. 13-14

Learning Objective 1: Describe what is involved in the decision-making process.

57. The first step in the rational decision model is _______________.

Copyright © 2010 John Wiley & Sons, Inc. 13-15

Learning Objective 1: Describe what is involved in the decision-making process.

Copyright © 2010 John Wiley & Sons, Inc. 13-16

Copyright © 2010 John Wiley & Sons, Inc. 13-17

Copyright © 2010 John Wiley & Sons, Inc. 13-18

d) certainty, jeopardy, and skepticism

Copyright © 2010 John Wiley & Sons, Inc. 13-19

Copyright © 2010 John Wiley & Sons, Inc. 13-20

a) uncertain environments provide little, if any, information to predict expected results

76. Threats to overall business success are called __________ risks.

Copyright © 2010 John Wiley & Sons, Inc. 13-21

Learning Objective 1: Describe what is involved in the decision-making process.

Copyright © 2010 John Wiley & Sons, Inc. 13-22

Copyright © 2010 John Wiley & Sons, Inc. 13-23

Section Reference: Systematic and Intuitive Thinking

82. A key element in Decision-Making under risk and uncertainty is __________.

83. Which of the following statements pertaining to intuition is incorrect?

Copyright © 2010 John Wiley & Sons, Inc. 13-24

Copyright © 2010 John Wiley & Sons, Inc. 13-25

Copyright © 2010 John Wiley & Sons, Inc. 13-26

91. Individual decisions are also called __________ decisions.

Copyright © 2010 John Wiley & Sons, Inc. 13-27

a) the required quality of the decision.

Copyright © 2010 John Wiley & Sons, Inc. 13-28

Learning Objective 3: Identify the key decision-making traps and issues.

Copyright © 2010 John Wiley & Sons, Inc. 13-29

Copyright © 2010 John Wiley & Sons, Inc. 13-30

Copyright © 2010 John Wiley & Sons, Inc. 13-31

Section Reference: Knowing When to Quit

Fill in the blank

Copyright © 2010 John Wiley & Sons, Inc. 13-32

Ans: the rational decision model

Ans: moral dilemma

109. __________ is the philosophical study of morality.