CHAPTER FOUR: DECISION-MAKING – AN ESSENCE TO

PROBLEM SOLVING

1. . The text explicitly states that the manager's personality is the most important factor
influencing the decision-making process. True
2. . While environmental factors are mentioned, the text doesn't claim they exclusively
influence managers' decisions. It emphasizes personal factors as well. False
3. The attributes listed accurately define useful information for managerial decision-
making. True.
4. . Skill levels significantly impact problem-solving, as highlighted with the example of
technical difficulties. False
5. True. Resources are acknowledged as influential, but the text doesn't state they
always slow down the process.
6. . Hierarchical organizations with rigid structures are described as hindering creativity
and problem-solving. False
7. . While uncertainty is mentioned, the text doesn't claim it's the only decision-making
condition. Certainty and risk are also discussed. False
8. . The definitions of directive, analytical, conceptual, and behavioral decision-making
styles accurately reflect the provided descriptions. True
9. . The directive style description mentions efficiency and action but not necessarily a
short-run focus. False
10. . The behavioral style description highlights a preference for collaboration,
receptiveness, and open communication. True

1. The most important factor influencing managerial decision-making is:

a) Experience

b) Personality

c) Resources

d) Information Systems

2. Managers often rely on intuition based on:

a) Analytical calculations

b) Feelings and emotions

c) Organizational policies

d) Statistical data
3. Environmental factors:

a) Have no impact on managerial decisions

b) Should be considered during the decision-making process

c) Only affect organizational structure

d) Are irrelevant for problem-solving

4. Useful information for managerial decisions should be:

a) Vague and open to interpretation

b) Complete and accurate

c) Based solely on personal opinions

d) Difficult to access and utilize

5. A manager's skill level:

a) Is irrelevant to problem-solving

b) Significantly impacts the decision-making process

c) Can be ignored if experience is high

d) Has no bearing on creativity and innovation

6. Hierarchical organizations with rigid structures:

a) Encourage creativity and problem-solving

b) Stifle innovation and hinder decision-making

c) Provide clear guidelines for optimal choices

d) Are essential for maintaining order and control

7. Under uncertainty, managers may rely on:

a) Intuition and "gut feelings"

b) Precise calculations and risk analysis

c) Official company policies

 d) Past experiences only

8. Directive decision-makers are:

a) Open to collaboration and diverse opinions

b) Action-oriented and focused on facts

c) Highly emotional and impulsive

d) Hesitant to make choices without consensus

9. Analytical decision-makers:

a) Prefer quick decisions based on limited information

b) Tend to overanalyze situations and consider multiple options

c) Are easily swayed by emotions and personal biases

d) Dislike gathering data and analyzing information

10. Behavioral decision-makers:

a) Prefer to work alone and avoid social interaction

b) Value teamwork and open communication

c) Make decisions based solely on logic and rationality

d) Are uncomfortable with ambiguity and uncertainty

CHAPTER FIVE: THE PROBLEM-SOLVING/DECISION-MAKING

FRAMEWORK

1. . Many business problems are subtle and not readily apparent, requiring careful
attention to warning signs. False
2. . Undervaluing a problem's significance and failing to allocate enough resources is a
common error. True
3. . Overreacting to minor issues can waste resources and distract from important
problems. True
4. . The level of verification needed depends on the complexity and ambiguity of the
problem. True
5. . McKinsey & Company's "Forces at Work" technique helps analyze external
pressures influencing problems. True
6. . Formal problem definition involves agreement on what a solution will look like. True
7. . Identifying the root cause allows for effective problem prevention. True
8. . The problem tree visually maps causes and effects of a problem to identify
solutions. True
9. . The five whys method repeatedly asks "why" to drill down to root causes. True
10. . The fishbone diagram helps brainstorm potential causes through categorized
factors. True

1. Which of the following is NOT a common error in problem identification?

o a) Overreacting to minor issues

o b) Blindsided by subtle problems
o c) Lack of communication with stakeholders
o d) Improper resource allocation

2. The Five Whys method encourages:

o a) Random brainstorming
o b) Systematic questioning
o c) Statistical analysis
o d) Expert opinions
3. The primary purpose of root-cause analysis is to:

o a) Generate short-term solutions

o b) Define the exact scope of the problem
o c) Identify the underlying reason for the problem
o d) Develop a communication plan
4. The fishbone diagram helps categorize potential causes based on:

o a) Product stages
o b) Employee hierarchies
o c) Major factors influencing the process
o d) Financial ratios
5. The 80/20 rule, as applied to the Pareto Chart, suggests that:

o a) 80% of problems have multiple root causes

o b) 20% of causes contribute to 80% of the problem
o c) All causes deserve equal attention
o d) Statistical analysis is unreliable
1. A company faces declining sales, but attributes it to a competitor's new marketing
campaign. This demonstrates which error in problem identification?

o a) Blindness
o b) Misappropriation
o c) Overreaction
o d) Confirmation bias
2. "Forces at Work" analysis is primarily used in:

o a) Internal process improvement

o b) Analyzing external pressures on a firm
o c) Identifying root causes of technical failures
o d) Developing communication strategies
3. According to the Problem Tree, branches represent:

o a) Potential solutions
o b) Consequences of the main problem
o c) Contributing factors to the main problem
o d) Historical background of the issue
4. A scatter plot diagram is most useful for:

o a) Prioritizing root causes

o b) Exploring correlations between variables
o c) Generating creative solutions
o d) Developing a detailed action plan
5. FMEA focuses on analyzing potential:

o a) Customer preferences
o b) Market trends
o c) Defects or failures in a product or process
o d) Employee motivation levels
 CHAPTER SIX THE PROBLEM-SOLVING/DECISION-MAKING
FRAMEWORK

1. . Alternatives generation is a creative process focused on developing innovative

solutions. True
2. . Vertical thinking relies on existing knowledge and logic, not seeking contradictory
requirements. False
3. . Brainstorming encourages free-flowing ideas, quantity, and suspension of judgment.
True
4. . Storyboarding visualizes ideas and explores connections between them. True
5. . Mind mapping helps break down problems and form manageable solutions. True
6. . Group sketching uses visual thinking to build ideas collaboratively. True
7. . Word banks stimulate word association and generate new ideas. True
8. . Reverse brainstorming identifies potential mistakes to avoid unwanted outcomes.
True
9. . Evaluating alternatives considers costs, benefits, timeliness, acceptability, and
ethics. True
10. . Group decision making can offer superior results for complex problems requiring
pooled knowledge. True

1. Which of the following is NOT a characteristic of vertical thinking in problem-solving?

o a) Relies on existing knowledge and logic

o b) Generates a wide range of creative solutions
o c) Focuses on identifying root causes
o d) Often leads to quickly arriving at the optimal solution (Correct answer)
2. TRIZ, an acronym for Theory of Inventive Problem Solving, is particularly useful for
overcoming problems characterized by:

o a) Unclear objectives and goals

o b) Seemingly contradictory requirements (Correct answer)
o c) Limited resources and budget
o d) Lack of skilled personnel
3. During a brainstorming session, it's important to:

o a) Critically evaluate every idea as it's proposed

o b) Focus on developing detailed plans for each solution
o c) Encourage free-flowing, unconventional ideas (Correct answer)
o d) Stick to a strict timeline and agenda
4. Storyboarding can be helpful for:

o a) Identifying the root cause of a problem

o b) Visualizing and connecting different solution ideas (Correct answer)
o c) Evaluating the financial feasibility of each option
o d) Gaining consensus within a decision-making group
5. Word banks are most effective for:

o a) Prioritizing the urgency of different problems

o b) Breaking down complex problems into manageable parts (Correct answer)
o c) Generating solutions without considering resources
o d) Measuring the overall impact of a chosen solution

CHAPTER SEVEN PROBLEM-SOLVING STYLES AND PROBLEM

SOLVER PERSONALITY

1. . The Big Five Model proposes five core personality factors: Conscientiousness,
Agreeableness, Extraversion, Openness to Experience, and Neuroticism. True
2. . The Big Five Model views each trait as a spectrum, not a binary category.
Individuals fall somewhere between the two extremes of each trait. False
3. . High conscientiousness individuals are organized, disciplined, detail-oriented, and
capable of completing tasks and achieving goals. True
4. . Low agreeableness individuals might be perceived as suspicious, manipulative, and
uncooperative, making them less trustworthy and well-liked. True
5. . Introverts don't necessarily dislike social events, but they find them draining and
require periods of solitude to recharge. False
6. . High openness to experience individuals are creative, artistic, and enjoy variety and
independence. They're curious about their surroundings and embrace new
experiences. True
7. True. Low openness individuals prefer routine and familiarity, struggle with change
and novelty, and find abstract thinking challenging.
8. . High neuroticism individuals tend to be anxious, insecure, moody, and prone to
negative emotions like sadness and self-pity. True
9. . The Big Five traits remain relatively stable across adulthood, with some slight
changes observed, like increased agreeableness and conscientiousness. True
10. . Soto & John (2012) found more significant trends within specific facets of the Big
Five (e.g., adventurousness, depression) than in the overall traits themselves. True
1. Conscientious individuals are best described as:

a) Impulsive and disorganized b) Detail-oriented and goal-driven c) Trusting and

altruistic d) Moody and insecure

Answer: b) Detail-oriented and goal-driven

2. People high in agreeableness are likely to:

a) Be suspicious and manipulative b) Prioritize personal gain over cooperation c) Be

helpful and cooperative d) Avoid social interaction

Answer: c) Be helpful and cooperative

3. Introverts, compared to extroverts, typically:

a) Gain energy from being around others b) Seek out social situations regularly c)
Prefer listening to others rather than talking d) Experience difficulty meeting new
people

Answer: c) Prefer listening to others rather than talking

4. Those open to experience tend to:

a) Dislike change and prefer routine b) Embrace intellectual and creative pursuits c)
Avoid unfamiliar environments and experiences d) Be rigid and traditional in their
thinking

Answer: b) Embrace intellectual and creative pursuits

5. Individuals high in neuroticism are more likely to:

a) Remain calm and resilient in stressful situations b) Experience anxiousness and

negative emotions c) Have high self-esteem and confidence d) Be optimistic and
positive thinking

Answer: b) Experience anxiousness and negative emotions

6. Which Big Five trait tends to increase most with age?

a) Openness to experience b) Conscientiousness c) Extraversion d) Neuroticism

Answer: b) Conscientiousness

7. High conscientiousness individuals are likely to approach problem-solving with:

a) Impulsive brainstorming and quick solutions b) Attention to detail and a focus on

thoroughness c) Emotional reactivity and avoidance of challenges d) A lack of
commitment and follow-through
Answer: b) Attention to detail and a focus on thoroughness

8. Openness to experience can contribute to problem-solving through:

a) A tendency to stick to tried-and-tested methods b) A reluctance to consider

unconventional solutions c) Creative thinking and exploration of new approaches d) A
preference for familiar and predictable solutions

Answer: c) Creative thinking and exploration of new approaches

9. Neuroticism can hinder problem-solving by:

a) Increasing focus and determination b) Promoting flexibility and open-mindedness

c) Leading to anxiety and negativity d) Enhancing analytical and critical thinking skills

Answer: c) Leading to anxiety and negativity

10. Which Big Five trait is least associated with collaborative problem-solving?

a) Openness to experience b) Conscientiousness c) Extraversion d) Agreeableness

Answer: d) Agreeableness

-----------------------------------------------------------------------------------------------------------------

Ch 8-10

1. Critical thinking hinders the building of new ideas. (False)

2. Teamwork and problem-solving have an inverse relationship. (False)

3. Improved thinking capacity and decision-making only benefit individuals in their

professional lives. (False)

4. Formal communication channels always flow vertically within an organization's

hierarchy. (False)

5. Nonverbal cues like body language and facial expressions have no meaning in
business communication. (False)

6. Upward communication is mainly used to inform managers about employee needs

and concerns. (True)

7. Diagonal communication is discouraged in organizations as it undermines

established hierarchical structures. (False)

8. The "nine Cs" of business communication emphasize conciseness, clarity, and

completeness. (True)
9. Filtering information to make it more favorable to the receiver is considered an
acceptable communication practice. (False)

10. Emotional responses have no place in the problem-solving process. (False)

11. Information overload rarely occurs in modern organizations due to efficient

communication systems. (False)

12. Defensive communication tactics can be helpful in protecting oneself from

criticism during problem-solving discussions. (False

13. Cultural differences in communication styles have no impact on business

interactions. (False)

14. Effective communication is not essential for leveraging team expertise in

problem-solving. (False)

15. Managing stakeholder expectations through clear communication plays no role in

ensuring successful problem-solving outcomes. (False)

1. According to the text, which of the following is NOT a professional benefit of

improved critical thinking and decision-making?

a) Building teamwork and closer relationships with colleagues

b) Generating new ideas and solutions to problems

c) Avoiding stagnation and fostering creativity in the workplace

d) Increasing profits by satisfying clients with innovative solutions

2. Critical thinking can promote open-mindedness in society, leading to what benefit?

a) Reduced social conflict and improved compatibility

b) Increased competition and individual advancement

c) Stricter adherence to established norms and traditions

d) Emphasis on emotional responses and personal beliefs

3. Which personal benefit of improved critical thinking is highlighted in the text?

a) Ability to control one's genes and pass them on to offspring

b) Enhanced social status and influence within a peer group

c) Reduced misunderstandings and improved focus at work

d) Increased physical strength and stamina

4. When employing critical thinking to solve problems, which of the following is an

important step?

a) Jumping straight to the first solution that comes to mind

b) Relying solely on intuition and gut feeling

c) Analyzing arguments and selecting the most feasible option

d) Accepting any solution proposed by authority figures

5. Critical thinking can contribute to teamwork by:

a) Encouraging individual competition and independent action

b) Promoting respect for hierarchy and unquestioning obedience

c) Facilitating open discussion and diverse perspectives

d) Discouraging collaboration and focusing on individual blame

6. Why is effective communication considered crucial for problem-solving in

organizations?

a) To maintain secrecy and prevent unauthorized information sharing

b) To assert managerial authority and enforce obedience to commands

c) To share expertise, assess impacts, and make informed decisions

d) To promote gossip and spread rumors within the workplace

7. Which communication flow type involves direct interaction between employees on

the same level?

a) Downward communication

b) Upward communication

c) Diagonal communication

d) Formal communication

8. What is one of the "nine Cs" of effective business communication?

a) Complexity

b) Creativity

c) Confusion

d) Certainty

9. A potential barrier to effective communication in the workplace is:

a) Openness and honesty among colleagues

b) Filtering information to make it appear favorable

c) Actively listening to understand different viewpoints

d) Providing clear and concise messages

10. Managing stakeholder expectations through communication is important

because:

a) It improves public image and avoids negative press coverage

b) It builds confidence and ensures buy-in for proposed solutions

c) It minimizes workload and reduces the need for employee engagement

d) It demonstrates control and dominance over organizational processes

1. Communication is defined as:

a) The transfer of information and data

b) The exchange of feelings and emotions

c) The transfer and understanding of meanings

d) The control of messages within an organization

2. Which of the following is NOT a type of organizational communication?

a) Formal communication

b) Informal communication

c) External communication

d) Diagonal communication
3. In verbal communication, the message travels:

a) Through written documents

b) Orally, from speaker to listener

c) Visually, through body language

d) All of the above

4. Which of the nine Cs of effective communication emphasizes brevity and clarity?

a) Completeness

b) Concreteness

c) Conciseness

d) Creativity

5. One potential barrier to effective communication is:

a) Openness and honesty

b) Filtering information

c) Active listening

d) Clear and concise messages

6. Diagonal communication in an organization typically occurs:

a) Between employees and their immediate supervisors

b) Across different departments and levels

c) Within small, close-knit teams

d) Through official company channels

7. Upward communication allows employees to:

a) Give orders and directions to their superiors

b) Provide feedback and suggestions to management

c) Announce company decisions and policies

d) Delegate tasks and responsibilities

8. Which communication principle focuses on tailoring messages to the audience's

perspective?

a) Correctness

b) Consideration

c) Completeness

d) Credibility

9. Effective problem-solving in organizations relies on:

a) Individual decision-making without consultation

b) Communication to share expertise and perspectives

c) Hierarchical authority to dictate solutions

d) Focusing only on immediate symptoms of problems

10. Managing stakeholder expectations through communication is important for:

a) Avoiding unnecessary paperwork and documentation

b) Building trust and ensuring buy-in for solutions

c) Demonstrating control and dominance over the process

d) Minimizing employee involvement in problem-solving