Chapter 6 Decision-Making: The Essence of the Managers JobTrue/False Questions4.The first step in the decision-making process is identifying a problem.True (easy)6.It is possible at the end of the decision-making process that you may be required to start the decision process over again.True (easy)10.Decision-making is synonymous with managing.True (easy)12.One assumption of rationality is that we cannot know all of the alternatives.False (difficult)13.Accepting solutions that are good enough is termed satisfying.False (easy)15.Managers regularly use their intuition in decision-making.True (easy)16.Rational analysis and intuitive decision-making are complementary.True (moderate)18.Programmed decisions tend to be repetitive and routine.True (easy)21.Most managerial decisions in the real world are fully nonprogrammed.False (easy)24.Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates.False (difficult)25.An optimistic manager will follow a maximin approach.False (moderate)Multiple ChoiceTHE DECISION-MAKING PROCESS34.A series of eight steps that begins with identifying a problem and decision criteria and allocating weights to those criteria; moves to developing, analyzing, and selecting an alternative that can resolve the problem; implements the alternative; and concludes with evaluating the decisions effectiveness is the _.a.decision-making process. (easy)b.managerial process.c.maximin style.d.bounded rationality approach.e.legalistic opportunism process.36.A discrepancy between an existing and a desired state of affairs describes which of the steps in the decision-making process?a.criteria weight allocationb.analysis of alternativesc.problem identification (difficult)d.decision effectiveness evaluatione.decision criteria identification38.Which of the following must be present in order to initiate the decision-making process?a.plenty of timeb.pressure to act (moderate)c.a lack of authorityd.a lack of resourcese.environmental certainty39.Managers arent likely to characterize something as a problem if they perceive _.a.they dont have authority to act. (difficult)b.pressure to act.c.a discrepancy.d.they have sufficient resources.e.they have budgetary authority.44.Selecting an alternative in the decision-making process is accomplished by _.a.choosing the alternative with the highest score. (easy)b.choosing the one you like best.c.selecting the alternative that has the lowest price.d.selecting the alternative that is the most reliable.e.choosing the alternative you think your boss would prefer.47.Which of the following is the final step in the decision-making process?a.identifying the problemb.evaluating the decisions effectiveness (easy)c.identifying decision criteriad.selecting an alternative that can resolve the probleme.allocating weights to alternatives.48.Which of the following is important to remember in evaluating the effectiveness of the decision-making process?a.Ignore criticism concerning the decision-making.b.You may have to start the whole decision process over. (difficult)c.Restart the decision-making process if the decision is less than 50% effective.d.90% of problems with decision-making occur in the implementation step.e.Keep track of problems with the chosen alternative, but only change those issues that upper management demand.49.Decision-making is synonymous with _.a.managing. (easy)b.leading.c.controlling.d.planning.e.organizing.51.Which of the following is not an organizing decision?a.What are the organizations long-term objectives? (moderate)b.How many employees should I have report directly to me?c.How should jobs be designed?d.How much centralization should there be in the organization?e.When should the organization implement a different structure?52.Which of the following is not a leading decision?a.How do I handle employees who appear to be low in motivation?b.What is the most effective leadership style in a given situation?c.How will a specific change affect worker productivity?d.When is the right time to stimulate conflict?e.How should jobs be designed? (moderate)53.Which of the following is not a controlling decision?a.What activities in the organization need to be controlled?b.How should those activities be controlled?c.When is a performance deviation significant?d.When is the right time to stimulate conflict? (moderate)e.What type of management information system should the organization have?54.Managers are assumed to be _; they make consistent, value-m