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Exam (elaborations)

OB CHAPTER 11 (1)

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Exam of 16 pages for the course NFDN 2006 at NFDN 2006 (OB CHAPTER 11 (1))

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  • July 18, 2024
  • 16
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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OB CHAPTER 11
The well-structured problem does not exhibit which of the following characteristics?
A) desired state is clear
B) problem is repetitive and familiar
C) certainty about what to do
D) uncertainty about what to do
E) existing state is clear - CORRECT ANSWER-D

Which of the following is another name for a programmed problem solution
technique?
A) standard operating procedures
B) routines
C) rules
D) rules of thumb
E) All of the above - CORRECT ANSWER-E

One is most likely to see a program used to make a(n) __________ decision.
A) unique
B) ill-structured
C) executive-level
D) important
E) routine - CORRECT ANSWER-E

Which of the following most clearly involves a decision program?
A) A corporate merger
B) A task force to improve company image
C) A standing order to a supplier
D) A medical ethics committee
E) A billion dollar investment decision - CORRECT ANSWER-C

The ill-structured problem is one where the
A) existing state is clear, desired state is unclear.
B) existing state is clear but the method of getting to the desired state is unknown.
C) existing state is unclear, desired state is clear.
D) existing state is clear, desired state is clear.
E) existing state is unclear, desired state is unclear. - CORRECT ANSWER-E

At what part of an organization would an ill-structured problem most likely be
encountered?
A) Ill-structured problems are equally likely throughout the organizational hierarchy
B) The middle of the hierarchy
C) Where the bottom of the hierarchy meets the middle
D) The top of the hierarchy

,E) The bottom of the hierarchy - CORRECT ANSWER-D

Which of the following problems would most likely be solved with a program (that is,
using programmed decision-making)?
A) Should this convict be granted parole?
B) Should we merge with this company or not?
C) How many workers should we call out to staff the assembly line next week?
D) In which part of the country should we locate our new business?
E) Which candidate should we choose to be vice-president of marketing? -
CORRECT ANSWER-C

Which of the following is characteristic of well-structured problems?
A) The existing state and the desired state are understood.
B) They frequently arouse controversy and conflict among those interested in the
problem. C) They tend to be complex and involve a high degree of uncertainty.
D) They often entail high risk.
E) They are unusual and have not been encountered before. - CORRECT
ANSWER-A

A program would most likely be used
A) to solve a well-structured problem.
B) to solve a risky problem.
C) to justify group decision-making.
D) to solve an ill-structured problem.
E) to solve problems dealt with by top management. - CORRECT ANSWER-A

Which of the following is an example of an ill-structured problem?
A) The assistant bank manager must decide which automobile loan applications to
approve.
B) The welfare officer must decide how much assistance a particular client should
receive.
C) The production manager must decide how many workers to schedule on the line
next
week.
D) The sales manager must decide what to do about sales that seem sluggish.
E) The retailer must decide whether to reorder lawn chairs. - CORRECT ANSWER-D

Economic Person does not
A) make rational decisions.
B) use economic gain to evaluate the correctness of decisions.
C) use logic in making decisions.
D) have adequate information to make good decisions.
E) make decisions like the average consumer or manager. - CORRECT ANSWER-E

, Nonprogrammed decision-making A) is most likely to be required at lower levels of
the organizational hierarchy.
B) may stimulate strong political considerations.
C) is used to solve repetitive problems.
D) tends to involve much certainty.
E) is used to solve well-structured problems. - CORRECT ANSWER-B

Managers who exhibit bounded rationality
A) might be subject to cognitive biases.
B) might be operating under time constraints.
C) might be factoring political considerations into decisions.
D) might be limited in their capacity to acquire and process information.
E) all of the above. - CORRECT ANSWER-E

In evaluating alternative solutions, decision-makers with bounded rationality
A) rarely engage in satisficing.
B) tend to exhibit maximization.
C) often consider the political acceptability of the solution to other organizational
members.
D) know the ultimate value of each alternative.
E) know the probability that each alternative will work. - CORRECT ANSWER-C

When he heard that turnover was increasing, the human resource manager
immediately told the president that salaries would have to be raised. Unfortunately,
low pay wasn't the cause of the turnover. Which decision-making error did the
manager commit?
A) He defined the problem in terms of a solution.
B) He exhibited the knew-it-all-along effect.
C) He treated sunk costs improperly.
D) He escalated commitment.
E) He revealed a confirmation bias. - CORRECT ANSWER-A

Information overload is likely to lead to
A) fast decision-making.
B) only relevant information influencing decision-making.
C) higher quality decisions.
D) lower satisfaction with the ultimate decision.
E) greater confidence by managers in their decisions. - CORRECT ANSWER-E

Mark has two alternatives. There is a 50 percent chance that he will earn $120,000 if
he accepts a government contract. If he decides not to accept the contract and
instead continues on his
present project he has an 80 percent chance of earning $100,000. If Mark is a
perfectly rational decision-maker which of the following statements is true?

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