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Fundamentals of Management 8Th Edition Ricky Griffin Test Bank Full Chapter PDF
Fundamentals of Management 8Th Edition Ricky Griffin Test Bank Full Chapter PDF
Fundamentals of Management 8Th Edition Ricky Griffin Test Bank Full Chapter PDF
1. The process of choosing one alternative from among a set of alternatives is called _____.
a. rational ignorance
b. altruism
c. bounded rationality
d. decision making
e. groupthink
ANSWER: d
RATIONALE: Decision making is the act of choosing one alternative from among a set of alternatives.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Knowledge
NOTES: Digital Story: Engage
3. Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five
machines from different manufacturers. Ryan was engaged in _____.
a. decision making
b. optimizing
c. rationalizing
d. brainstorming
e. social loafing
ANSWER: a
RATIONALE: This scenario illustrates decision making. Decision making is the act of choosing one
alternative from among a set of alternatives.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
4. Which of the following statements is true about the process of decision making?
a. It ends when the decision situation has been defined.
b. It includes putting the chosen alternative to practice.
c. The first step in the process is to identify alternatives to a problem.
d. The process is said to be complete when a set of alternatives to a problem has been created.
e. In a business scenario, the decision-making process is always aimed at finding a way to increase profits.
ANSWER: b
RATIONALE: The decision-making process includes recognizing and defining the nature of a decision
situation, identifying alternatives, choosing the “best” alternative, and putting it into practice.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Comprehension
NOTES: Digital Story: Connect
5. A(n) _____ decision is a decision that is relatively structured or recurs with some frequency (or both).
a. custom-made
b. novel
c. unstructured
d. intuitive
e. programmed
ANSWER: e
RATIONALE: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both).
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
6. Decisions regarding standard organizational transactions are most likely to be _____ decisions.
a. unstructured
b. infrequent
c. programmed
d. intuitive
e. irrational
ANSWER: c
RATIONALE: Many decisions regarding basic operating systems and procedures and standard
organizational transactions are programmed decisions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
7. Nutrimax Inc. sponsors a football championship in Oriel in August every year. The championship is organized by the
Oriel Football Association (OFA) to encourage new talent, and Nutrimax bears all the expenses incurred during the
championship. The Oriel regional manager of Nutrimax sends across a check to the OFA in July of each year in order for
them to prepare for the championship. The regional manager’s decision about when to send the check to OFA is a(n)
_____ decision.
a. programmed decision
b. unstructured decision
c. intuitive decision
d. contingency decision
e. satisficing decision
ANSWER: a
RATIONALE: The regional manager is making a programmed decision in this scenario. A programmed
decision is a decision that is relatively structured or recurs with some frequency (or both).
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
8. When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock
is almost empty, she's making a(n) _____ decision.
a. programmed
b. unstructured
c. intuitive
d. irrational
e. strategic
ANSWER: a
RATIONALE: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both).
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
9. A nonprogrammed decision:
a. is relatively more frequent that programmed decisions.
b. is highly structured.
c. requires more time and resources than programmed decisions.
d. is typically regarding daily organizational transactions.
e. typically applies to basic operating systems and procedures.
ANSWER: c
RATIONALE: A nonprogrammed decision is a decision that is relatively unstructured and occurs less
frequently than a programmed decision. Managers faced with such decisions must treat each
one as unique, investing enormous amounts of time, energy, and resources into exploring the
situation from all perspectives.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: LO: MGMT.GRIF.16. 4-1 - 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
10. Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of
_____ decisions.
a. frequent
b. nonprogrammed
c. structured
d. operational
e. programmed
ANSWER: b
RATIONALE: Most of the decisions made by top managers involving strategy (including mergers,
acquisitions, and takeovers) and organization design are nonprogrammed.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Comprehension
NOTES: Digital Story: Connect
12. Venus Electronics Inc. decided to explore markets in different countries. It has now set up a branch in Selenasia. This
is an example of a(n) _____ decision.
a. structured
b. nonprogrammed
c. standard
d. programmed
e. operational
ANSWER: b
RATIONALE: This scenario illustrates a nonprogrammed decision. Nonprogrammed decisions are relatively
unstructured and occur less frequently than programmed decisions.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
14. Which of the following statements is true in the context of decision making under a state of risk?
a. The decision maker clearly knows the alternatives.
b. The decision maker uses probability estimates to assess alternatives.
c. The decision maker is least likely to choose a bad alternative.
d. The decision maker has an accurate understanding of payoffs of all the alternatives.
e. The decision maker seldom considers his or her past experience while making the decision.
ANSWER: b
RATIONALE: A state of risk is a condition in which the availability of each alternative and its potential
payoffs and costs are all associated with probability estimates.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 102
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Comprehension
NOTES: Digital Story: Connect
15. In decision making, a condition of _____ exists when a decision maker knows what the alternatives are and what
conditions are associated with each alternative.
a. risk
b. uncertainty
c. certainty
d. imperfect information
e. ambivalence
ANSWER: c
RATIONALE: When the decision maker knows with reasonable certainty what the alternatives are and what
conditions are associated with each alternative, a state of certainty exists.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 102
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
16. When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand
that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of
_____.
a. imperfect information
b. ambiguity
c. risk
d. certainty
e. unclear alternatives
ANSWER: d
RATIONALE: Irene is making a decision under a state of certainty.When the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative, a state of certainty exists.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 102
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
18. Which of the following statements is true in the context of decision making under a condition of uncertainty?
a. A decision maker greatly relies on intuition, judgment, and experience.
b. A decision maker clearly knows all the risks associated with alternatives to a problem.
c. A decision maker puts in least effort and uses a pre-determined structure for decision making.
d. A decision maker is able to estimate the payoffs and risks associated with alternatives.
e. A decision maker identifies only two alternatives to the decision situation.
ANSWER: a
RATIONALE: Most of the major decision making in contemporary organizations is done under a state of
uncertainty, where the decision maker does not know all the alternatives, the risks associated
with each, or the likely consequences of each alternative. Intuition, judgment, and experience
always play major roles in the decision-making process under conditions of uncertainty.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 103
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Comprehension
NOTES: Digital Story: Connect
19. Professor Campbell needs to recommend a biology textbook for his senior class. Only two well-known publishers,
Educate and WordTree, publish biology textbooks in the state, and both publishers are known for the clarity and
extensiveness of their content. When Campbell chooses a textbook from one of the two publishers, he is making a
decision in a state of _____.
a. certainty
b. irrationality
c. risk
d. imperfect information
e. ambiguity
ANSWER: a
RATIONALE: Campbell is making the decision in a state of certainty. When the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative, a state of certainty exists.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 102
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
22. The _____ decision model is a prescriptive approach that tells managers how they should make decisions; it assumes
that managers are logical and rational and that their decisions will be in the organization’s best interests.
a. behavioral
b. classical
c. administrative
d. bureaucratic
e. probabilistic
ANSWER: b
RATIONALE: The classical decision model is a prescriptive approach that tells managers how they should
make decisions; it assumes that managers are logical and rational and that their decisions will
be in the organization’s best interests.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 104
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Knowledge
NOTES: Digital Story: Engage
25. Tina works at a coffee shop. One of the four coffee machines at the coffee shop has not been functioning well; the
same machine has broken down thrice in two weeks. Now, Tina is looking at the machine and trying to decide if the
problem is a bad machine or if people are just using the machine wrong. Tina is currently _____.
a. implementing an alternative
b. evaluating the results of a chosen alternative
c. consulting with other decision makers
d. recognizing and defining the decision situation
e. eliminating feasible alternatives
ANSWER: d
RATIONALE: Tina is currently in the first step of the rational decision-making model. The first step in
rational decision making is recognizing that a decision is necessary.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 105
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
26. Libra Inc. chose to settle a lawsuit for $75 million. In the context of the rational decision-making model, when
executives of the company begin to compare the cost of the settlement to those of other financial institutions, they will be
_____.
a. developing a set of rational alternatives
b. evaluating the possible alternatives
c. consulting with other decision makers
d. recognizing and defining the decision situation
e. following up and evaluating the results of a chosen alternative
ANSWER: e
RATIONALE: The final step of the rational decision-making model is illustrated in the scenario. The final
step in the decision-making process requires that managers evaluate the effectiveness of their
decision—that is, they should make sure that the chosen alternative has served its original
purpose.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 109
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
27. After being laid off by their companies, many individuals recognized three options they could choose from before they
could secure new jobs: to spend less, to use savings, or to use credit. In the context of the steps involved in the rational
decision-making model, they were _____.
a. monitoring implementation
b. selecting the best alternative
c. identifying alternatives
d. implementing alternatives
e. evaluating decision effectiveness
ANSWER: c
RATIONALE: The laid-off employees were in the second step of the rational decision-making process. The
second step in the decision-making process is identifying appropriate alternatives. Once the
decision situation has been recognized and defined, the second step is to identify alternative
courses of effective action.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 105
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
28. In general, while identifying alternatives, the more important the decision, _____.
a. the more alternatives should be generated
b. the lesser the time needed to make the decision
c. the lesser the chances of managers making the right decision
d. the more the tendency of managers to ignore intuitions
e. the lesser the chances of managers using expert opinion to make the decision
ANSWER: a
RATIONALE: In general, while identifying alternatives, the more important the decision, the more
alternatives should be generated.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 105
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
29. Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting
to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests
more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making
process is Christine in?
a. Identifying alternatives
b. Implementing an alternative
c. Defining the decision situation
d. Selecting the best alternative
e. Evaluating the decision effectiveness
ANSWER: a
RATIONALE: Christine is in the second step of the rational decision-making process. The second step in the
rational-decision making process is identifying alternatives. Once the decision situation has
been recognized and defined, the second step is to identify alternative courses of effective
action. Developing both obvious, standard alternatives and creative, innovative alternatives is
generally useful.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 105
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
31. Delta Corp. introduced a new set of policies, giving its employees more flexibility in work timings. This decision was
made in response to complaints from employees about fatigue. Which step of the rational decision-making process is
illustrated in the scenario?
a. Defining the situation
b. Evaluating the possible alternatives
c. Selecting the alternative
d. Implementing an alternative
e. Evaluating decision effectiveness
ANSWER: d
RATIONALE: Delta Corp. has implemented an alternative in the scenario. After an alternative has been
selected, the next step is to put it into effect.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 108
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
32. When the prices of oil came down, the demand for sport utility vehicles (SUVs) increased. Automakers chose to
increase production of full-size SUVs as the profit from large vehicles is greater than that from small vehicles. Which step
in the rational decision-making model is illustrated in the scenario?
a. Developing a set of rational alternatives
b. Evaluating the possible alternatives
c. Selecting the best alternative and implementing it
d. Recognizing and defining the decision situation
e. Evaluating decision effectiveness
ANSWER: c
RATIONALE: Automakers are implementing an alternative in the scenario. After an alternative has been
selected, the next step is to put it into effect.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 108
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
33. In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of
alternatives before choosing one?
a. Identifying alternatives
b. Implementing the chosen alternative
c. Defining the situation
d. Following up the implementation
e. Evaluating alternatives
ANSWER: e
RATIONALE: The third step in the decision-making process is evaluating each of the alternatives. Each
alternative should be evaluated in terms of its feasibility, satisfactoriness, and consequences.
The first question to ask is whether an alternative is feasible, i.e. if it is within the realm of
probability and practicality.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 107
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-2 - LO: 4-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: Rational Perspectives on Decision Making
KEYWORDS: Bloom's: Comprehension
NOTES: Digital Story: Connect
34. Peter was looking for alternatives to double his plant's production capacity, and he considered acquiring the
production plant of a rival company. The engineers in Peter's company advised him against it because acquiring the new
plant would only increase their company's production by 15 percent. Therefore, Peter's idea failed the test for _____ in the
context of the rational decision-making process.
a. feasibility
b. satisfactoriness
c. bounded rationality
d. satisficing
e. escalation of commitment
ANSWER: b
RATIONALE: Peter's idea failed the test for satisfactoriness. The third step in the rational decision-making
process is evaluating each of the alternatives. Each alternative should be evaluated in terms
of its feasibility, satisfactoriness, and consequences.
POINTS: 1
DIFFICULTY: Challenging
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cease from active assertion of their claims, and that in the event of
more than one of them being present with the clan, precedence for
the occasion would be decided by lot.
APPENDIX VII
GENEALOGICAL TABLES SHOWING THE
KINSHIP OF CERTAIN HIGHLAND CHIEFS AND
LEADERS IN 1745.
MACDONALDS
Clanranald Branch
Glengarry Branch
Keppoch Branch
Glencoe Branch
CAMERONS
MACKENZIES
Lord Cromartie’s Regiment
Barisdale’s Regiment
MACLEODS
MACKINNONS
MACLEANS
FRASERS
MACPHERSONS
MACINTOSHES
FARQUHARSONS