Because everybody makes decisions everyday, decision making is easy. 2. Decision making is the process of identifying problems and opportunities and then resolving them. *3. The two categories of decision processes rely on either real or imagined problems. 4. A determination made from available alternatives is called a decision. 5. Johnne Morria works for a backpack manufacturer. He has been instructed to decide what primary need women backpackers have that men users do not have.
He will be making a nonprogrammed decision. 6. Decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions are called programmed decisions.
7. Under conditions of risk, enough information is available to allow the probability of a successful outcome for each alternative to be estimated. *8. Uncertainty refers to a situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcome is unavailable. 9.
Fortunately, most decisions are not characterized by ambiguity.
10. By far the most difficult decision situation is uncertainty. 11. The classical decision-making model assumes that the decision maker is rational, and makes the optimal decision each time. *12. The use of computerized information systems and databases has decreased the effectiveness of the classical approach of decision making. 13. Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality. 14.
Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. 15. The administrative model of decision making relies on the same assumptions as those of the classical model. 16. The process of analyzing underlying causal factors associated with the decision situation is called diagnosis. *17. The evaluation stage of the decisions process involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out. 8. Feedback provides decision makers with information that can precipitate a new decision cycle. 19. The directive style is used by people who prefer simple, clear-cut solutions to problems. *20. The bureaucratic style is often adopted by managers who like to consider complex solutions based on as much data as they can gather. *21. The three major components of the Vroom-Jago model are leader participation styles, follower participation styles, and a series of decision rules. 22.
By making mistakes, people go through the process of decision learning, which means that they gain valuable experience and knowledge to perform more effectively in the future. *23. A devil’s advocate acts like a jury foreman and encourages groups to reach a quick decision. 24. Facts that are raw, unsummarized, and unanalyzed are called data. 25. Data that are converted into meaningful and useful context for the receiver are called information. 26. Office automation systems are systems that combine modern hardware and software to handle the tasks of publishing and distributing information. 7. The transaction processing system (TPS) is software developed for banking organizations to enable them to process the great volume of checks and debit transactions in today’s business world. 28. MISs typically support strategic decision making needs of mid-level and top management. 29. The Internet is a collection of central servers for accessing information on-line. 30. The extranet is a network that links the computer systems of buyers and sellers to allow the transmission of structured data primarily for ordering, distribution, and payables and receivables. Multiple Choice Questions 1. The Wal-Mart manager that determined that the world’s largest retailer should establish a loan company to help it reduce credit card processing costs was serving as a(n): a. decision maker b. organizer c. gatekeeper d. benchmark auditor e. devil’s advocate *2. The realization that Wal-Mart could save money if it could process credit card payments and became a competitor in the financial industry is an example of: a. decision making b. operational planning c. decision making under conditions of confidence d. employee empowerment e. electronic brainstorming *3.
When a fake film critic gave one of Sony’s movies a very exaggerated positive review, Sony could either respond by ignoring it, apologizing, or letting the courts handle the issue. In other words, a(n) _____ had to be made. a. deal b. choice c. transaction d. bargain e. problem *4. When a fake film critic gave one of Sony’s movies a very exaggerated review, Sony could either respond by ignoring it, apologizing, or letting the courts handle the issue. Sony let the courts tell it how the issue would be handled. This is an example of: a. planning b. decision making c. organizing d. controlling . leading 5. Which of these refers to the process of identifying problems and then resolving them? a. organizing b. controlling c. decision making d. planning e. leading 6. _____ decisions are made in response to recurring organizational problems. a. Nonprogrammed b. Simple c. Complex d. Programmed e. Real *7. Making the choice between implementing a differentiation strategy and implementing an overall cost leadership strategy is an example of: a. a plan b. an objective c. alternative evaluation d. a decision e. a strategy *8. Which of these types of decisions use decision rules? . nonprogrammed b. bureaucratic c. programmed d. heuristic e. routine *9. Which of the following is an example of a nonprogrammed decision? a. the decision to reorder supplies b. the decision to develop a new product or service c. the decision to perform routine maintenance on one of the machines in manufacturing d. the decision to terminate an employee for violation of company rules e. the decision to hire a temporary worker to fill a vacant position 10. _______ decisions usually involve situations that are unique and often poorly defined. a. Nonprogrammed . Simple c. Complex d. Programmed e. Real
11. The choice that Wal-Mart, the world’s largest retailer, made when it decided to establish a loan company to help it reduce credit card processing costs was: a. nonprogrammed b. simple c. complex d. programmed e. real *12. Which of the following is an example of a programmed decision? a. decision to relocate a manufacturing plant b. decision to reorder more paint to complete a job c. decision to set up a new manufacturing assembly line d. decision to offer a new product line e. decision to discontinue cafeteria service 3. Managers try to obtain information about decisions’ alternatives that will reduce decision: a. sureness b. uncertainty c. trust d. certainty e. conviction 14. _______ means that a decision has clear-cut objectives and that good information is available, but the future outcomes associated with each alternative are subject to chance. a. Sureness b. Uncertainty c. Risk d. Certainty e. Ambiguity *15. A decision is least likely to fail when it is made under the condition of: a. ambiguity b. uncertainty c. certainty d. probability e. risk *
16. ____ means that all the information the decision maker needs is readily available. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Confidence *17. While other athletic shoe manufacturers have continued to target the same markets, Reebok has chosen to target children to increase its sales. According to financial experts, “Uncertainty over Reebok’s overall strategic direction explains why the company’s stocks were trading at a much lower rate than its competitors. ” The statement suggests that Reebok’s managers: a. have all the information they need to succeed in the new market they have chosen b. now which goals they want to achieve, but their information about the future is incomplete c. decision will produce the desired results d. have no idea what corporate objectives have been set for them e. are able to ignore environmental trends *18. Managers who are making decisions under conditions of _____ have the highest possibility for failure. a. certainty b. ambiguity c. uncertainty d. risk e. jeopardy *19. Statistical analyses are useful for decision making under conditions of: a. certainty b. ambiguity c. risk d. uncertainty e. conflict 20. ____ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Advocacy *
21. Colgate-Palmolive wants its product manager to introduce its Colgate Simply White in Europe. The manager is unsure if Europeans are interested in having whiter teeth. He also does not know for sure how the whitener’s U. S. competitors will respond to the plan or if changes will be needed to the product to meet European regulations. The manager is operating under a condition of: a. risk b. ambiguity c. ertainty d. uncertainty e. personal conflict *22. Which of the following is by far the most difficult situation for a decision maker? a. certainty b. risk c. uncertainty d. ambiguity e. normative *23. When the producers of the Survivor series cast contestants for each of its reality shows, they tried to find out as much as possible about the person and create predictive models that would show how participants would interact and how they would react to survival tests. Ideally, the television show’s producer wanted to produce the show under conditions of: a. certainty b. autonomy c. uncertainty . assurance e. confidence *24. When the producers of the Survivor series cast contestants for each of its reality shows, they tried to find out as much as possible about the person and create predictive models that would show how participants would interact and how they would react to survival tests. What happened, however, was an almost complete inability to determine outcomes because needed information was missing. In spite of their best efforts, the television show’s producers made decisions under conditions of: a. improbability b. risk c. uncertainty d. ambiguity e. autonomy *
25. ____ means that the goals to be achieved or the problem to be solved are unclear, alternatives are difficult to define, and information about outcomes is unavailable. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Goal conflict *26. Under which of the following conditions is ambiguity likely to occur? a. Alternatives are difficult to define. b. Objectives are well defined. c. Information about outcomes is readily available. d. All the alternatives are known. e. Decisions are already made. 27. The classical model of decision making is based on _____ assumptions. a. philosophical b. irrational c. economic d. uncertainty . technological *28. One of the assumptions of the classical model of decision making is: a. problems are unstructured and ill defined b. the decision maker strives for conditions of certainty c. criteria for evaluating alternatives are unknown d. the decision maker selects the alternatives that will minimize the economic return to the organization e. the situation is always uncertain *29. Electrolux, the Swedish appliance manufacturer, has decided to close manufacturing plants in countries like Spain and Ireland and build newer plants in countries where labor costs are much lower.
In other words, the company is making decisions that are in the organization’s best economic interests. Electrolux’s decisions would be based on which of the following models? a. the administrative model of decision making b. the participative model of decision making c. the scientific management model of decision making d. the classical model of decision making e. the humanistic model of decision making *30. The classical model of decision making appears to be _____, which means it defines how a decision maker should make decisions. a. normative b. scientific c. escriptive d. bureaucratic e. humanistic *31. The _____ model of decision making is most valuable when applied to _____ decisions. a. administrative, programmed b. classical, nonprogrammed c. classical, programmed d. political, ambiguous e. administrative, structured *32. Satisficing, bounded rationality, and conditions of uncertainty are all associated with the: a. classical model of decision making b. administrative model of decision making c. quantitative model of decision making d. rational model of decision making e. political model of decision making *33.
The _____ model of decision making describes how managers actually make decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity. a. normative b. classical c. administrative d. scientific management e. humanistic *34. The producers of the Survivor series of reality shows would have liked to engage in rational decision making, but this was not always the case. On one show, a participant was injured in a fire and had to be summarily removed. In another incident, a participant quit the show rather than take part in a survival test.
Both incidences required quick decisions on how the events would impact the show and its premise. The method used by the television show’s producers was more than likely the _____ model of decision making. a. normative b. classical c. administrative d. scientific management e. humanistic 35. The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as: a. satisficing b. bounded rationality c. classical model of decision making d. normative approach e. scientific approach *36.
The producers of the Survivor series of reality shows would have liked to engage in rational decision making, but this was not always the case. On one show, a participant was injured in a fire and had to be summarily removed. The incident required quick decision making on how the event would impact the show and its premise. There was not enough time to make the ideal decision, nor was there enough information available to determine how each alternative decision would influence the show and its participants. A decision had to be made using: a. bounded rationality b. the classical model of decision making c. satisficing . conflict resolution e. the scientific management approach to decision making 37. Managers who decide to choose the first solution available are engaged in: a. bounded rationality b. creative risk taking c. decision maximization d. satisficing e. the classical model of decision making 38. ______ means that people have limits, or boundaries, on how rational they can be. a. Bounded irrationality b. Classical bureaucratic c. Classical distinguished d. Bounded rationality e. Administrative bureaucracy *
39. The administrative model of decision making does NOT assume: a. the objectives of decisions are often vague . rational procedures are not always used c. criteria for evaluating alternatives are always known d. managers’ search for alternatives is limited e. most managers settle for a satisfying solution rather than a maximizing solution 40. _______ represents a quick apprehension of a decision situation based on past experience but without conscious thought. a. Satisfying b. Intuition c. Bounded rationality d. Illuminating e. Descriptive *41. The _______ approach describes how managers actually make decisions, and the ______ approach defines how a decision maker should make decisions. a. normative; descriptive . normative; classical c. descriptive; normative d. descriptive; administrative e. normative; administrative 42. Intuition is based on _____, but lacking in _____ . a. conscious thought; practicality b. experience; applicability c. a solid analysis; applicability d. experience; conscious thought e. thought-process; guts *43. On the X Games, the Olympics for extreme sports participants, the decision not to do a somersault on a motorcycle is often made when the bike is already in the air. Based on past experiences, but without any conscious thought, the rider feels conditions are not right for the trick.
These motorcyclists use _____ to make their decision. a. bounded perception b. satisficing c. bounded rationality d. autonomous heuristics e. intuition *44. The process of forming alliances among managers during the decision making process is known as: a. networking b. socializing c. coalition building d. satisficing e. normative collaboration *45. The _____ model closely resembles the real environment in which most managers and decision makers operate. a. normative b. collaborative c. descriptive d. classical e. political *46. On the reality television show Survivor, complete strangers are put into teams and asked to create teams.
The individual team members have conflicting goals, inconsistent viewpoints, and are making decisions under conditions of ambiguity. When they have to make a decision as a unit, their actions most closely resembles what happens with the _____ model of decision making. a. normative b. collaborative c. descriptive d. classical e. political *47. Which of the following statements is a basic assumption of the political model? a. Organizations are made up of groups with diverse interests, goals, and values. b. Information is ambiguous and incomplete. c.
Managers do not have the time, resources, or mental capacity to identify all dimensions of the problem. d. Managers engage in the push and pull of debate to decide goals and discuss alternatives. e. All of these are basic assumptions of the political model. 48. A manager who supports a specific alternative and talks with others and tries to persuade them to support the decision is: a. satisfying b. burning bridges c. coalition building d. winning friends and influencing people e. controlling *49. Which of the following is a characteristic of classical decision making model? . clear-cut problems and goals b. conditions of uncertainty c. conflicting goals d. limited information about alternatives and their outcomes e. all of the above *50. ______ is the last step in the decision making process. a. Evaluation and feedback b. Development of alternatives c. Implementation of chosen alternative d. Selection of desired requirement e. Decision resolution 51. The recognition of the decision requirement step in the managerial decision making process requires managers to: a. develop alternative solutions b. scan internal and external environments . use the classical model of decision making d. focus on generating ideas e. select undesirable alternatives *52. The assistant director of the human resource department at a large sports equipment manufacturing company believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision making process? a. diagnosis and analysis of causes b. development of alternatives c. recognition of decision requirement d. evaluation and feedback e. selection of desired alternatives *53.
Allison Durski oversees the complaint department for a company that manufactures sewing machines. She believes she is seeing an increase in complaints about the zipper attachment that goes on its more expensive model of machine. She thinks she needs to investigate further. She is at what stage of the managerial decision making process? a. diagnosis and analysis of causes b. development of alternatives c. recognition of decision requirement d. evaluation and feedback e. selection of desired alternatives *54. Allison Durski oversees the complaint department for a company that manufactures sewing machines.
She believes she is seeing an increase in complaints about the zipper attachment that goes on its more expensive model of machine. Durski has uncovered a(n): a. setback b. dilemma c. problem d. crisis e. obstruction *55. “When did it occur” and “how did it occur” are questions associated with which step of the decision making process? a. diagnosis and analysis of causes b. recognition of decision requirement c. development of alternatives d. selection of desired alternative e. environmental audit 56. Once the problem has been recognized and analyzed, the decision maker must: a. evaluate and provide feedback b. hoose among alternatives c. generate alternatives d. prioritize the alternatives e. reanalyze the problem *57. For a programmed decision: a. alternatives are usually difficult to identify b. alternatives are usually easy to identify c. there are usually few alternatives d. there are usually few alternatives, and they are difficult to identify e. there are no alternatives from which to choose–just a solution *58. _____ is the willingness to undertake risk with the opportunity to increase one’s return. a. Tunnel vision b. Risk propensity c. Risk aversion d. Decision resolution e. Decision myopia *59.
Wal-Mart, the world’s largest retailer, has decided to go into the loan business so it can save the costs of letting another company process its credit card payments. The success of this new strategy is not guaranteed, but Wal-Mart is willing to implement this strategy because of its potential payoff. This decision to implement shows a high degree of: a. tunnel vision b. risk propensity c. risk aversion d. thrill seeking e. decision myopia 60. The step in the decision making process that involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action is known as: a. ecognition b. analysis c. evaluation d. implementation e. feedback 61. In the ______ stage, decision makers gather information that tells how well the decision was implemented and whether it was effective in achieving its goals. a. developing alternatives b. problem awareness c. selection of desired alternative d. implementation e. evaluation and feedback 62. Feedback is important because: a. decision making is a continuous process b. it eliminates the ambiguity from the situation c. it does not require financial assessment d. the quantitative tools needed are easy to use e. t prevents the decision from failing
63. Teri is collecting data on how well the organization has done since their new strategy was implemented. She is in what stage of the managerial decision making process? a. the generation of alternatives b. implementation of the chosen alternative c. evaluation and feedback d. recognition of the decision requirement e. selection of desired alternative 64. The _____ style is used by people who prefer simple, clear-cut solutions to problems. a. behavioral b. conceptual c. directive d. analytical e. classical 65. When managers like to consider complex solutions based on as much data as hey can gather, they are considered to have a(n) _____ style. a. behavioral b. conceptual c. directive d. analytical e. classical *66. Electrolux has decided to improve its finances by closing expensive plants and opening new ones in less developed countries. Before Electrolux decided to close its manufacturing operation in Spain, its top management had to engage in a considerable amount of information gathering and then carefully consider all possible alternatives. It based its final decision on objective, rational data and used the _____ style of decision making. a. behavioral b. conceptual c. directive d. analytical e. classical 67.
Which of these styles is adopted by managers having a deep concern for others as individuals? a. behavioral b. classical c. analytic d. logical e. conceptual 68. The Vroom-Jago model: a. helps managers determine the appropriate amount of participation for subordinates b. helps managers implement the classical model of decision making c. is only useful in programmed decision situations d. forces managers to make decisions without participation e. helps managers avoid participation *69. According to Vroom and Jago, the appropriate degree of decision participation depends on the problem, the required level of decision quality, and: . the importance of goal satisficing b. the degree of uncertainty c. the importance of having employees commit to the decision. d. the use of bounded rationality e. how employees reacted to empowerment *70. Georgia Nut Candy manufactures traditional candy, such as peanut brittle. When its president was faced with a decision about opening a Georgia Nut retail store adjacent to a large university as a way of introducing its products to the a new market, he involved his subordinates in the decision making process. According to Vroom and Jago: a. f his subordinates typically go along with whatever the president decides, their involvement is not that important b. if the president does not have good information, there is no need to involve the subordinates c. if the subordinates do not share in the goals of the organization, the president should let them make the decision alone d. if the problem is ambiguous and poorly structured, there is a need for president to interact with his subordinates e. none of the above apply *71.
Which of the following is an example of a diagnostic question a manager can use to determine the appropriate degree of subordinate participation? a. group support for goals b. decision significance c. group expertise d. likelihood of commitment e. all of these *72. _____ is a technique that uses a face-to-face group to suggest a broad range of alternatives simultaneously for decision making. a. Gatekeeping b. Benchmarking c. Decision empowerment d. Decision spanning e. Brainstorming *73. Which of the following methods for effective decision making is superior to brainstorming? a. gatekeeping . electronic brainstorming c. decision empowerment d. benchmarking e. decision spanning 74. Which of the following is NOT a method used for effective decision making in turbulent environments? a. create functional participation b. electronic brainstorming c. engage in rigorous debate d. practice the five whys e. know when to bail 75. The tendency of organizations to invest time and money in a solution despite strong evidence that it is not appropriate is referred to as: a. technological decisions b. collective intuition c. decision learning d. team delay e. escalating commitment *76.
Which of these is the individual who is assigned the role of challenging assumptions made by the group? a. the group foreman b. the risk advocate c. the devil’s advocate d. the conflict spanner e. the gatekeeper *77. Figures on the length of railways, the number of airplane runways, and the miles of paved road within Bolivia would be _____ for a company that was thinking about setting up a distribution warehouse in that country. a. data b. timely updates c. statistics d. qualitative figures e. heuristics *78. A randomized list of the amount of money in individual bank accounts at a local bank would be an example of: a. ata b. timely updates c. statistics d. qualitative figures e. heuristics 79. What are the important attributes of useful information? a. time, content, and form b. quality, timeliness, and relevance c. space, completeness, and relevance d. price, quality, timeliness, and completeness e. product, price, place, and promotion *80. Which of the following is a content dimension characteristic of high-quality information? a. accuracy b. relevance c. conciseness d. clarity e. scope *81. A type of information system that supervisors routinely use to help with their record keeping is called a(n): a. anagement information system b. transaction processing system c. executive information system d. record keeping system e. expert system 82. Which of the following systems is classified as an operations information system? a. an information reporting system b. a transaction processing system c. an executive information system d. a decision support system e. a geographic information system
83. Which of the following systems is used to transform manual accounting procedures to electronic media? a. a transaction processing system b. an intranet c. an office automation system d. an extranet . a market processing system *84. A(n) _____ is a computer-based system that provides information and support for effective managerial decision making. a. management information system b. transaction processing system c. operations information system d. decision support system e. accounting information system *85. Shawn is a production manager at a local furniture manufacturer. He needs data on the anticipated number of orders and the current inventory. He is using a computer-based information system to help him make production decisions. What type of system is he using? a. transaction processing system b. an executive information system c. a production information system d. a management information system e. a market-processing system 86. A computer network that uses Internet technology but limits access to all or some of the organization’s employees is called a(n): a. extranet b. middleware c. groupware d. intranet e. GDSS *87. Zara is an extremely successful European retailer. Every morning its 500 plus store managers pull out their laptop computers and send information to the chain’s headquarters in Spain as well as trade news with each other.
They may write about how well a particular black dress is selling or problems with a belt design. These store managers are communicating through a(n): a. extranet b. middleware c. groupware d. intranet e. GDSS 88. The first step toward a successful e-business is: a. for managers to determine why they need such a business to begin with b. for research and development departments to create a condition of certainty c. to conduct a competitive analysis of infrastructures d. to locate a diverse marketplace e. for managers to create an ethics code to prevent abuse of consumers *89. ____ systems help companies track customers’ interactions with the firm and allow employees to call up a customer’s past sales and service records, outstanding orders, or unresolved problems. a. Marketing information b. Customer relationship management c. Expert d. Market-processing e. Transaction-processing *90. Eighteen months after its release, Dope Wars, a Beermat Software shareware game for PCs that allows users to play drug dealers in simulated competitive markets, scored its 2-millionth download online. Beermat needed a _____ system to handle the large volume of help requests it was getting from its customers. . marketing information b. customer relationship management c. expert d. market processing e. transaction processing *91. Today managers view knowledge as an important resource. Therefore, _____ is perceived to be extremely important in fostering cultures of learning. a. the elimination of group norms b. selective perception c. a directive leading style d. grapevining e. knowledge management *92. A magazine article on Corporate Alzheimer’s explains how difficult it is for many companies to gather information relevant to the company’s success and make sure this information is available throughout the organization.
This article is calling for the increased use of: a. the elimination of group norms b. selective perception c. a directive leading style d. grapevining e. knowledge management 93. File sharing that allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, control points, and Web pages is referred to as: a. P2P file sharing b. information overload c. B2B marketplace d. empowered employees e. instant messaging Scenario Questions *Scenario—Adidas For decades sportswear companies have been linking their brands to athletes and sports stars.
But in a fairly radical move for an industry that is adverse to moving from tried and tested formulae, Adidas has enlisted a star from the fashion world to help it sell more sports clothing and footwear. Adidas is operating in unknown territory, introducing sporting products to an audience more likely to read Vogue than Runner’s World. *1. When Adidas chose to make fashionable sportswear, it made a(n): a. nonprogrammed decision b. bureaucratic decision c. programmed decision d. heuristic decision e. routine decision *2.
Adidas knew its goal was increased market share, but doubt about how successful its new strategy would be indicates that the decision was made under conditions of: a. certainty b. ambiguity c. uncertainty d. risk e. jeopardy *3. Adidas more than likely used the _____ model to decision making. a. administrative b. participative c. scientific d. classical e. bureaucratic *4. The first step Adidas used in this decision-making process was to: a. diagnose and analyze the problem b. recognize decision requirement c. modify its mission statement d. create operational plans e. hire someone to head the coalition 5. It is problematic that when the corporate goal of increased market share was set, the company asked for possible strategies that could accomplish this goal. One effective method it could have used to locate alternative plans was: a. gatekeeping b. electronic brainstorming c. decision empowerment d. benchmarking e. decision spanning *Scenario—Transport4 The Gulf Coast of the United States bristles with oil refineries that churn out a combined 2. 5 billion barrels of gasoline, kerosene, jet fuel, and other petroleum products each year. That’s ten percent of the world’s annual supply.
But getting those resources to distribution centers around the country is a tricky logistics problem. A new Website called Transport4 is a centralized order processing system that collects customer shipping requests through the Web and then translates that order information back to each pipeline company’s own internal system. Transport4 simplifies a process that can be as complex as the tangle of pipelines criss-crossing the country. Traditionally, scheduling petroleum shipments to various locations around the country required separate phone calls, faxes, or even snail mail requests to the different pipeline operators serving those regions.
Even worse, each carrier had its own product code and scheduling protocol, which made the ordering process different for each company. Now, an oil company shipping to three regions can simply log on to Transport4’s password-protected Website and place the nominations using a new set of standardized company codes. The Transport4 system automatically routes the orders to the appropriate carriers, who then send scheduling information back to the Transport4 Website. The process takes minutes. *1. When an oil refinery decided to abandon its traditional oil logistics strategies and use Transport4, it was making a _____ decision. . nonprogrammed b. bureaucratic c. programmed d. heuristic e. routine *2. By using Transport4, oil refineries are able to make shipping decisions under conditions of: a. certainty b. ambiguity c. uncertainty d. risk e. jeopardy *3. The decision to abandon traditional logistics strategies and hire Transport4 to manage distribution was a simple and rational one for most companies. The efficiencies offered by Transport4 were clear.
Most likely a _____ style of decision making would have been used. a. behavioral b. conceptual c. directive d. analytical e. classical *4Transport4 is an example of a(n): . intranet web b. electronic domain c. e-business d. consolidated rote membership (CRM) system e. bricks and clicks business *5. Transport4 operates as a(n): a. extranet b. middleware c. groupware d. intranet e. GDSS *6. What type of system would Transport4 use to track its customers’ interactions and to allow it to know immediately when a customer’s shipment will arrive at its destination? a. marketing information system b. customer relationship management system c. expert system d. market processing system e. transaction processing system Short-Answer Questions *1. Define decision making. 2. In what type of situations would a manager rely on programmed decision making? *3. In what type of situations would a manager rely on nonprogrammed decision making? *4. What kind of information does a manager have when making a decision under conditions of certainty? *5. What kind of information does a manager have when making a decision under conditions of risk? *6. What kind of information does a manager have when making a decision under conditions of uncertainty? *7. What three characteristics exist for a manager when he or she is making decisions under conditions of ambiguity? *8.
What is the basis for the classical model of decision making? *9. Why is the classical model of decision making considered normative? *10. Which of the decision-making models describes how managers actually make decisions in difficult situations, such as those characterized by nonprogrammed decisions, uncertainty, and ambiguity? *11. Define bounded rationality. *12. When do decisions makers engage in satisficing? *13. Why is the administrative model of decision making called descriptive? *14. What is a coalition? *15. When does an organizational problem occur? 16. When do managers locate an opportunity? 7. List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes. *18. In which stage of the decision-making process do managers analyze the underlying causal factors associated with the situation? *19. Define risk propensity. *20. Which stage of the decision-making process involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out? *21. Why is feedback so important in the decision-making process? *22. How does the Vroom-Jago model help managers? *23.
Which style is often the style adopted by managers having a deep concern for others as individuals? *24. Which model can a manager use to gauge the appropriate amount of participation by subordinates in making a specific decision? *25. List the four major personal decision styles. 26. List the five guidelines of effective decision making in today’s businesses. *27. What is the role of the devil’s advocate in the decision-making process? *28. Define information technology. *29. Distinguish between data and information. *30. What is a transaction processing system? *31.
What is the name for a computer-based information system that supports a company’s day-to-day operations? *32. What is the function of office automation systems? *33. What is the name for a computer-based system that provides information and support for effective managerial decision making. *34. What is e-business? *35. What is an electronic data interchange (EDI)? *36. Briefly describe how the extranet is used as a communications system. *37. What is an intranet? 38. What is the name given to systems that help companies track customers’ interactions with the firm and allow employees to call up information on past transactions? 39. Define peer-to-peer (P2P) file sharing? Essay Questions 1. Explain the difference between programmed and nonprogrammed decisions and give an example of each. 2. Compare decision conditions of certainty, risk, uncertainty, and ambiguity. 3. Briefly describe the assumptions underlying the classical model of decision making. 4. What are the six steps in the managerial decision-making process? *5. Describe one situation that illustrates a nonprogrammed decision and one that illustrates a programmed decision. 6.
Assume that you are a marketing manager of a major corporation and that you are developing marketing strategies. In making decisions, would you use the classical model or the administrative model? Explain your choice. 7. How is information technology important to organizations? *8. List and describe the five leader decision styles identified by Vroom and Jago. 9. Briefly describe the characteristics of high-quality information along the three broad categories. 10. Differentiate between intranet and extranet. 11. Distinguish between management information systems and operations information systems.
Cite this Managerial Skill
Managerial Skill. (2016, Oct 01). Retrieved from https://graduateway.com/managerial-skill/