BUSI 340 quiz 4 Liberty University complete answers

BUSI 340 quiz 4 Liberty University complete answers

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Question 1

An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this?

Question 2

ABC Corporation

Dora and Keith are managers at ABC Corporation. Keith is having problems in his department with a lack of innovation. In response, he consults the corporate procedures manual and speaks with his boss about the right way to solve the problem. Dora is also having a similar problem in her own department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to deal with the problem. Dora is an example of a(n) _______________ thinker.

Question 3

Which of the following is NOT a reason people engage in satisficing rather than maximization?

Question 4

A higher level of employee involvement is preferable when:

Question 5

Which of the following is true at the highest level of employee involvement?

Question 6

Which of the following ultimately energize us to select the preferred choice?

Question 7

The rational decision making model begins with:

Question 8

When decision makers choose to continue an existing course of action because it is the less painful option at the time, this is known as:

Question 9

Incubation and verification are the:

Question 10

The most accurate view of intuition is that it is:

Question 11

The benefits of employee involvement increase with:

Question 12

Prospect theory and closing costs are two reasons why people:

Question 13

Perceptual defense causes us to:

Question 14

ABC Corporation

Dora and Keith are managers at ABC Corporation. Keith is having problems in his department with a lack of innovation. In response, he consults the corporate procedures manual and speaks with his boss about the right way to solve the problem. Dora is also having a similar problem in her own department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to deal with the problem. Keith is an example of a(n) ________________ thinker.

Question 15

Escalation of commitment can be minimized by ensuring that:

Question 16

Which of the following decision‑making activities tends to make the most use of tacit knowledge?

Question 17

In the creative process, which of the following refers to the experience of suddenly becoming aware of a unique idea?

Question 18

Paragon Company

Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors. He has several choices and has done research into which company provides the best services and products. One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well‑known to provide the highest quality products available. According to the Rational Choice Paradigm of decision making, Alvin should select the vendor that offers the most:

Question 19

The purely rational model of decision making is rarely practiced in reality because it:

Question 20

People tend to be more creative when they:

Question 21

Sarine's Dolls With funding from her family, Sarine is currently developing a new line of dolls for her business which she hopes will take her company to the next level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be like she envisioned. Unfortunately, she then found out that there was a patent protecting the way the dolls arms were connected, so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public in the dolls, she decided that they needed to be marketed differently in order to sell. So Sarine allocated more resources to marketing and had the packaging of the dolls redesigned and created new set of advertising materials. The cost of manufacturing these dolls has now exceeded four times the initial proposed cost, but she is determined to make it work. She is embarrassed by how this has gone, but continues to put on a brave front. Sarine is most likely making decisions to continue with these dolls at this point because of:

Question 22

The rational choice paradigm selects the choice with the highest utility through the calculation of:

Question 23

The illumination stage in the creative process:

Question 24

Employees should NOT make the decision alone (without the manager's involvement) when:

Question 25

Which of the following statements is true about scenario planning?

 

Question 1 Paragon Company Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors. He has several choices and has done research into which company provides the best services and products. One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available. According to the Rational Choice Paradigm of decision making, Alvin should select the vendor that offers the most:

Question 2 The availability heuristic refers to the tendency:

Question 3 Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions?

Question 4 Which of the following is the lowest level of employee involvement?

Question 5 When decision makers choose to continue an existing course of action because it is the less painful option at the time, this is known as:

Question 6 Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as:

Question 7 InnoBLAST, Inc. George is a manager for InnoBLAST Inc., a web-based applications company. In an attempt to promote new ideas, George decides to allow his engineering team to devote 15% of their work time to whatever projects they would like to work on and reduces their assigned workload. He then institutes a 30 minute period each morning where the team members are asked to look over their current project list for the day and develop more knowledge about a task before they move on to work on their assigned tasks. George is attempting to promote:

Question 8 Which of the following is true at the highest level of employee involvement?

Question 9 InnoBLAST, Inc. George is a manager for InnoBLAST Inc., a web-based applications company. In an attempt to promote new ideas, George decides to allow his engineering team to devote 15% of their work time to whatever projects they would like to work on and reduces their assigned workload. He then institutes a 30 minute period each morning where the team members are asked to look over their current project list for the day and develop more knowledge about a task before they move on to work on their assigned tasks. The time period set aside each morning should help promote which stage of the creative process?

Question 10 Perceptual defense causes us to:

Question 11 The Director of Nursing is looking throughout the hospital for a new format of a work schedule for nurses. She evaluates each schedule system as soon as she learns about it. Eventually, she finds a schedule that is "good enough" for her needs and ends her search even though there may be better schedules available that she hasn't yet learned about. The Director of Nursing is engaging in:

Question 12 Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to:

Question 13 Prospect theory and closing costs are two reasons why people:

Question 14 Which of the following decision-making activities tends to make the most use of tacit knowledge?

Question 15 Which of these is also referred to as participative management?

Question 16 Employees should NOT make the decision alone (without the manager's involvement) when:

Question 17 Which of the following ultimately energize us to select the preferred choice?

Question 18 _____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value.

Question 19 The benefits of employee involvement increase with:

Question 20 Selene and Rita Selene and Rita are both engineers at a highly innovative technology company. They are both very creative people. Selene has 15 years of engineering background, a high need for achievement and strong task motivation, whereas Rita prides herself on her high openness to experience, strong self-direction and her ability to evaluate the potential usefulness of ideas. According to the characteristics of creative people, which areas are Selene's strongest?

Question 21 During a meeting, senior executives of a consumer products company were addressing the problem of being late in detecting several consumer trends, such as the trend toward using seethrough plastics in kitchenware. While trying to determine the source of this problem, one executive said: "The main problem here is that we need to find a better industrial design firm to design our products." Which of the following best describes the decision-making problem that this executive is exhibiting?

Question 22 Decision makers tend to rely on their implicit favorite when they:

Question 23 Selene and Rita Selene and Rita are both engineers at a highly innovative technology company. They are both very creative people. Selene has 15 years of engineering background, a high need for achievement and strong task motivation, whereas Rita prides herself on her high openness to experience, strong self-direction and her ability to evaluate the potential usefulness of ideas. According to the characteristics of creative people, which areas are Rita's strongest?

Question 24 In the creative process, which of the following refers to the experience of suddenly becoming aware of a unique idea?

Question 25 Which of the following is one of the assumptions of the rational choice paradigm?

 

Which of the following statements is true about scenario planning

Which of these represent the final step in the rational choice decision making process

Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions

The benefits of employee involvement increase with

An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this

The concept of bounded rationality holds that

Availability heuristic refers to the tendency

Perceptual defense causes us to

What effect do mental models have on the decision-making process

The Director of Nursing is looking throughout the hospital for a new format of a work schedule for nurses. She evaluates each schedule system as soon as she learns about it. Eventually, she finds a schedule that is "good enough" for her needs and ends her search even though there may be better schedules available that she hasn't yet learned about. The Director of Nursing is engaging in

_____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value

The insight stage in the creative process

What do impromptu storytelling, morphological analysis, and artwork have in common

Which of these is also referred to as participative

A nonprogrammed decision is applicable in any

Which of the following is true at the highest level of employee involvement

During a meeting, senior executives of a consumer products company were addressing the problem of being late in detecting several consumer trends, such as the trend toward using see-through plastics in kitchenware. While trying to determine the source of this problem, one executive said: "The main problem here is that we need to find a better industrial design firm to design our products." Which of the following best describes the decision-making problem that this executive is exhibiting

Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as

Incubation and verification are the

Which of the following decision-making activities tends to make the most use of tacit knowledge

Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to

The first stage of the creative process is

Decision structure, risk of conflict, and decision commitment are the

One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this argument

Which of the following involves listing different dimensions of a system and the elements of each dimension and then looking at each combination

 

Question 1 Which of the following statements is true about scenario planning?

Question 2 Which of these represent the finalstep in the rational choice decision making process?

Question 3 Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions?

Question 4 The benefits of employee involvement increase with:

Question 5 An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this?

Question 6 The concept of bounded rationality holds that:

Question 7 Availability heuristic refers to the tendency:

Question 8 Perceptual defense causes us to:

Question 9 What effect do mental models have on the decision-making process?

Question 10 The Director of Nursing is looking throughout the hospitalfor a new format of a work schedule for nurses. She evaluates each schedule system as soon as she learns about it. Eventually, she finds a schedule that is "good enough" for her needs and ends her search even though there may be better schedules available that she hasn't yet learned about. The Director of Nursing is engaging in:

Question 11 _____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value.

Question 12 The insight stage in the creative process:

Question 13 What do impromptu storytelling, morphological analysis, and artwork have in common?

Question 14 Which of these is also referred to as participative management?

Question 15 A nonprogrammed decision is applicable in any:

Question 16 Which of the following is true at the highest level of employee involvement?

Question 17 During a meeting, senior executives of a consumer products company were addressing the problem of being late in detecting several consumer trends, such as the trend toward using see-through plastics in kitchenware. While trying to determine the source of this problem, one executive said: "The main problem here is that we need to find a better industrial design firm to design our products."Which of the following best describes the decisionmaking problem that this executive is exhibiting?

Question 18 Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as:

Question 19 Incubation and verification are the:

Question 20 Which of the following decision-making activities tends to make the most use of tacit knowledge?

Question 21 Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to:

Question 22 The first stage of the creative process is:

Question 23 Decision structure, risk of conflict, and decision commitment are the:

Question 24 One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this argument?

Question 25 Which of the following involves listing different dimensions of a system and the elements of each dimension and then looking at each combination?

 

(blank) is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value.

Which of the following decision­making activities tends to make the most use of tacit knowledge?

Which of the following is true at the highest level of employee involvement

The rational decision making model begins with

Employees should not make the decision alone (without the manager's involvement) when

The purely rational model of decision making is rarely practiced in reality because it

Perceptual defense causes us to

Availability heuristic refers to the tendency

Satisficing refers to:

A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her inspiration for a new marketing plan. According to the creative process model, which of the following is the next stage in the creative process after such an inspiration?

A nonprogrammed decision is applicable in any

A higher level of employee involvement is preferable when

Which of the following is the lowest level of employee involvement

What effect do mental models have on the decision-making process?

The first stage of the creative process is

The insight stage in the creative process

(blank) is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs

Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as

Escalation of commitment can be minimized by ensuring that

Decision makers tend to rely on their implicit favorite when they

One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this argument?

What do impromptu storytelling, morphological analysis, and artwork have in common

Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions

The concept of bounded rationality holds that

Which of these is also referred to as participative management

 

 

Employees should not make the decision alone (without the manager's involvement) when

The tendency to define problems in terms of a preferred solution occurs because

Decision makers tend to rely on their implicit favorite when they

Which of these represent the final step in the rational choice decision making process

The first stage of the creative process is

Prospect theory and closing costs are two reasons why people

Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to

Perceptual defense causes us to

_____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value

Incubation and verification are the

Which of the following decision-making activities tends to make the most use of tacit knowledge?

The insight stage in the creative process

The concept of bounded rationality holds that

Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions

Which of the following statements is true about scenario planning

You have just received seed money for a new e-commerce business and you want to hire a dozen people with a high level of creative potential. To hire the most creative people, you would select applicants who have

One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this argument

Which of the following is assisted by incubation in the creative process

A nonprogrammed decision is applicable in any

An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this

A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her inspiration for a new marketing plan. According to the creative process model, which of the following is the next stage in the creative process after such an inspiration

Decision structure, risk of conflict, and decision commitment are the

Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as

The purely rational model of decision making is rarely practiced in reality because it

The Director of Nursing is looking throughout the hospital for a new format of a work schedule for nurses. She evaluates each schedule system as soon as she learns about it. Eventually, she finds a schedule that is "good enough" for her needs and ends her search even though there may be better schedules available that she hasn't yet learned about. The Director of Nursing is engaging in

 

Which of the following is the lowest level of employee involvement

Prospect theory and closing costs are two reasons why people

Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as

Satisficing refers to

Incubation and verification are the

After choosing among several computer server systems, the Director of Information Systems feels very positive about the final choice. However, some of this optimism is due to the fact that the Director forgot about few of the limitations of the chosen system and unconsciously downplays the importance of the positive features of the rejected systems. The Director of Information Systems is engaging in

People tend to be more creative when they

Which of the following involves listing different dimensions of a system and the elements of each dimension and then looking at each combination

Escalation of commitment can be minimized by ensuring that

Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions

Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to

The benefits of employee involvement increase with

An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this

Decision structure, risk of conflict, and decision commitment are the

Decision makers tend to rely on their implicit favorite when they

Which of these represent the final step in the rational choice decision making process

Perceptual defense causes us to

Availability heuristic refers to the tendency

Which of the following refers to calculating the conventionally accepted "right answer" to a logical problem

One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this argument

In the creative process, which of the following refers to the experience of suddenly becoming aware of a unique idea

What effect do mental models have on the decision-making process

What do impromptu storytelling, morphological analysis, and artwork have in common

You have just received seed money for a new e-commerce business and you want to hire a dozen people with a high level of creative potential. To hire the most creative people, you would select applicants who have

A higher level of employee involvement is preferable when

 

1.
Decision making is a nonconscious process of moving toward a desirable state of affairs. 
 
True    False
 

2.
Subjective expected utility refers to how much the selected alternative benefits or satisfies the decision maker. 
 
True    False
 

3.
Nonprogrammed decisions require all steps in the decision model because the problems are new, complex, or ill-defined. 
 
True    False
 

4.
Rational choice decision process recommends choosing the alternative with a moderate subjective expected utility. 
 
True    False
 

5.
The last step in the rational decision-making model is to evaluate the decision outcomes. 
 
True    False
 

6.
One reason why the problem identification stage is imperfect is that various stakeholders try to frame the decision maker's view of the situation. 
 
True    False
 

7.
Preconceived mental models formed by our cognitive structure help us make better and accurate decisions. 
 
True    False
 

8.
The decision-making process is more effective when problems are defined in terms of their solutions. 
 
True    False
 

9.
Decision makers have a need to reduce uncertainty, so they tend to engage in solution-focused problem identification. 
 
True    False
 

10.
According to bounded rationality theory, people make the best decisions when their perceptions are "bounded" or framed by past experience. 
 
True    False
 

11.
The rational choice paradigm assumes that decision makers have limited information-processing capabilities and engage in a limited search for alternatives. 
 
True    False
 

12.
Decision makers typically look at alternatives sequentially and compare each alternative with an implicit favorite. 
 
True    False
 

13.
One of the reasons people use satisficing rather than maximization when making decisions is that it takes more information processing capacity than people possess or are willing to use to choose the best alternative. 
 
True    False
 

14.
Research suggests that decision makers do not evaluate several alternatives when they find an opportunity. 
 
True    False
 

15.
The emerging emotional view of decision making states that people form preferences toward alternatives as soon as they receive information about those alternatives. 
 
True    False
 

16.
When in a positive mood, people pay more attention to details and follow a nonprogrammed decision routine. 
 
True    False
 

17.
When making important decisions, we "listen in" on our emotions to guide our preference among the decision alternatives. 
 
True    False
 

18.
Intuition allows us to draw on our tacit knowledge to guide our decision preferences. 
 
True    False
 

19.
Intuition is based on mental templates or models representing tacit knowledge about a situation. 
 
True    False
 

20.
Intuition is independent of the programmed decision routines that speed up our response to pattern matches or mismatches. 
 
True    False
 

21.
Scenario planning is a systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those environments. 
 
True    False
 

22.
Post-decisional justification causes decision makers to forget what decision they made. 
 
True    False
 

23.
Post-decisional justification gives people an excessively optimistic evaluation of their decisions, until they receive very clear and undeniable information to the contrary. 
 
True    False
 

24.
Escalation of commitment occurs when employees increase their support for a decision because most of their colleagues also support that decision. 
 
True    False
 

25.
Escalation of commitment is likely to occur when the perceived costs of terminating the project are high or unknown. 
 
True    False
 

26.
The prospect theory effect motivates us to avoid losses. 
 
True    False
 

27.
Involving several people in the evaluation weakens the decision evaluation process. 
 
True    False
 

28.
The incubation stage of creativity is more effective when the decision maker sets aside all other activities and focuses attention on the issue or problem. 
 
True    False
 

29.
Incubation is the stage of creativity in which the problem is simmering at the back of your mind while you are doing something else. 
 
True    False
 

30.
Divergent thinking refers to calculating the conventionally accepted "right answer" to a logical problem. 
 
True    False
 

31.
The ideas that appear during the insight stage of creativity are quickly forgotten unless documented. 
 
True    False
 

32.
The ideas that form during the insight stage of creativity need to be verified through conscious evaluation and experimentation. 
 
True    False
 

33.
Creative people have practical intelligence and not cognitive intelligence. 
 
True    False
 

34.
Knowledge and experience can undermine creativity because it can lead to routinization of that knowledge. 
 
True    False
 

35.
Creative people tend to have a high need for affiliation. 
 
True    False
 

36.
Creative people are more embarrassed when they make mistakes. 
 
True    False
 

37.
Employees tend to be less creative in organizations that punish failure. 
 
True    False
 

38.
Task significance and autonomy are important conditions for creativity in organizations. 
 
True    False
 

39.
Creativity tends to suffer during times of downsizing and corporate restructuring. 
 
True    False
 

40.
People are most creative when management puts intense time pressures on them to complete tasks. 
 
True    False
 

41.
Creative ideas can emerge when asking people unfamiliar with the problem to explore the problem with you. 
 
True    False
 

42.
Morphological analysis is a test used to identify people with a creative personality. 
 
True    False
 

43.
A potentially useful creative practice is to list different dimensions of a system and the elements of each dimension, then think through the potential commercial usefulness of each combination. 
 
True    False
 

44.
Cross-pollination is recommended to encourage creativity in organizations. 
 
True    False
 

45.
In organizational settings, creativity usually occurs alone rather than with other people. 
 
True    False
 

46.
The higher the level of employee involvement, the more influence people have over the decision process. 
 
True    False
 

47.
Employee involvement potentially improves the decision-making quality and commitment of employees. 
 
True    False
 

48.
Employee involvement tends to weaken synergy in the decision-making process. 
 
True    False
 

49.
Employees are more committed to implementing a solution when they are involved in making the decision. 
 
True    False
 

50.
High employee involvement would be difficult to achieve when conflict is likely among employees. 
 
True    False
 

51.
_____ is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs. 
 



A. 
Decision making
 

B. 
Bounded rationality
 

C. 
Divergent thinking
 

D. 
Prospect theory
 

E. 
Scenario planning
 
 

52.
The rational decision making model begins with: 
 



A. 
evaluating alternatives.
 

B. 
identifying an opportunity.
 

C. 
searching for alternatives.
 

D. 
implementing the solution.
 

E. 
searching for information about outcomes to each alternative.
 
 

53.
A nonprogrammed decision is applicable in any: 
 



A. 
routine situation where the company has a ready-made solution.
 

B. 
decision that does not relate directly to the employee's job description.
 

C. 
nonroutine situation in which employees must search for alternative solutions.
 

D. 
decision that is clearly within the employee's job description.
 

E. 
decision that affects the employee's performance.
 
 

54.
Which of these represent the final step in the rational choice decision making process? 
 



A. 
Developing a list of solutions
 

B. 
Implementing the selected alternative
 

C. 
Choosing the best alternative
 

D. 
Evaluating decision outcomes
 

E. 
Recognizing the opportunities
 
 

55.
The purely rational model of decision making is rarely practiced in reality because it: 
 



A. 
ignores the fact that problems must be defined before alternatives are chosen.
 

B. 
assumes that human beings make decisions based on their emotions and abilities.
 

C. 
assumes that people are efficient and logical in their information processing.
 

D. 
ignores the fact that people evaluate their decision after an alternative has been chosen and implemented.
 

E. 
does not consider the problems associated with implementing each of the alternatives.
 
 

56.
One school of management thought states that organizational decisions and actions are influenced mainly by what attracts management's attention, rather than by the objective reality of the external or internal environment. Which of the following practices is closely associated with this argument? 
 



A. 
Rational choice paradigm
 

B. 
Programmed decision making
 

C. 
Perceptual defense
 

D. 
Decisive leadership
 

E. 
Stakeholder framing
 
 

57.
What effect do mental models have on the decision-making process? 
 



A. 
They perpetuate assumptions that make it difficult to see new opportunities.
 

B. 
They allow decision makers to obtain accurate information from the surroundings.
 

C. 
They reduce the importance of developing alternative solutions to the problem.
 

D. 
They allow decision makers to maximize the potential of their decision making.
 

E. 
They help people to be more creative in decision making.
 
 

58.
During a meeting, senior executives of a consumer products company were addressing the problem of being late in detecting several consumer trends, such as the trend toward using see-through plastics in kitchenware. While trying to determine the source of this problem, one executive said: "The main problem here is that we need to find a better industrial design firm to design our products." Which of the following best describes the decision-making problem that this executive is exhibiting? 
 



A. 
The executive is engaging in escalation of commitment.
 

B. 
The executive is being too creative.
 

C. 
The executive is involved in participative decision making.
 

D. 
The executive is engaging in groupthink.
 

E. 
The executive is defining the problem in terms of a solution.
 
 

59.
The tendency to define problems in terms of a preferred solution occurs because: 
 



A. 
it provides a comforting solution.
 

B. 
decision makers prefer ambiguity rather than decisiveness.
 

C. 
it avoids the escalation of commitment problems.
 

D. 
it avoids problems of bounded rationality.
 

E. 
it helps in minimizing the biases caused by mental models.
 
 

60.
Perceptual defense causes us to: 
 



A. 
defend the solutions we propose.
 

B. 
defend those who agree with us when we identify a problem.
 

C. 
defend the perception we have after making a decision.
 

D. 
block out bad news or information that threatens our self-concept.
 

E. 
justify our actions to defend our position.
 
 

61.
The concept of bounded rationality holds that: 
 



A. 
our perception of a rational reality is bounded by nonrationality.
 

B. 
decision makers process limited and imperfect information and therefore rarely select the best choice.
 

C. 
decision makers have limited alternatives to make decisions.
 

D. 
decision makers are bound to project images of themselves as rational thinkers.
 

E. 
our realities are bounded by our own perceptions so that everyone's reality is different.
 
 

62.
Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions? 
 



A. 
Decision makers evaluate all alternatives simultaneously.
 

B. 
Decision makers use factual information to choose alternatives.
 

C. 
Decision makers choose the alternative with the highest payoff.
 

D. 
Decision makers have limited information processing abilities.
 

E. 
Have to make a selection from very limited alternatives.
 
 

63.
Decision makers tend to rely on their implicit favorite when they: 
 



A. 
select an appropriate decision style.
 

B. 
evaluate decision alternatives sequentially.
 

C. 
want to avoid escalation of commitment.
 

D. 
want to make more creative decisions.
 

E. 
have to make a selection from very limited alternatives.
 
 

64.
Availability heuristic refers to the tendency: 
 



A. 
to choose an alternative that is good enough rather than the best.
 

B. 
for people to influence an initial anchor point.
 

C. 
to evaluate probabilities of events or objects by the degree to which they remember other events or objects.
 

D. 
to estimate the probability of something occurring by how easily we can recall those events.
 

E. 
for decision makers to evaluate alternatives sequentially rather than comparing them all at once.
 
 

65.
The Director of Nursing is looking throughout the hospital for a new format of a work schedule for nurses. She evaluates each schedule system as soon as she learns about it. Eventually, she finds a schedule that is "good enough" for her needs and ends her search even though there may be better schedules available that she hasn't yet learned about. The Director of Nursing is engaging in: 
 



A. 
escalation of commitment.
 

B. 
satisficing.
 

C. 
perceptual defense.
 

D. 
post-decisional justification.
 

E. 
open rationalization.
 
 

66.
Satisficing refers to: 
 



A. 
the tendency to choose an alternative that is good enough rather than the best.
 

B. 
the feeling employees experience when they are not involved in a decision in which they would have made a valuable contribution.
 

C. 
a desirable outcome of decision making when several employees participate in the decision process.
 

D. 
the feeling employees experience when they make the right decision.
 

E. 
the tendency for decision makers to evaluate alternatives sequentially rather than comparing them all at once.
 
 

67.
Which of the following ultimately energizes us to select the preferred choice? 
 



A. 
Logic
 

B. 
Emotions
 

C. 
Rational logic
 

D. 
Creativity
 

E. 
Intuition
 
 

68.
The most accurate view of intuition is that it is: 
 



A. 
a trait that people acquire mainly through heredity.
 

B. 
more likely to be found in men than women.
 

C. 
acquired more quickly by people whose careers extend to several unrelated industries.
 

D. 
the ability to know when an opportunity exists and select the best course of action without conscious reasoning.
 

E. 
unacceptable way of making decisions in an organizational setup.
 
 

69.
Which of the following decision-making activities tends to make the most use of tacit knowledge? 
 



A. 
Intuition
 

B. 
Decision support systems
 

C. 
Escalation of commitment
 

D. 
Data mining
 

E. 
Intelligent systems
 
 

70.
Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as: 
 



A. 
action scripts.
 

B. 
insights.
 

C. 
rational formulae.
 

D. 
solution-focused problems.
 

E. 
implicit favorites.
 
 

71.
Which of the following statements is true about scenario planning? 
 



A. 
It is the unwitting selectivity in the acquisition and use of evidence.
 

B. 
It is the process of planning a solution based on employee preferences.
 

C. 
It is a disciplined method for imagining possible futures.
 

D. 
It is an act of reframing the problem in a unique way and generating different approaches to the issue.
 

E. 
It is the act of calculating the conventionally accepted right answer to a logical problem.
 
 

72.
After choosing among several computer server systems, the Director of Information Systems feels very positive about the final choice. However, some of this optimism is due to the fact that the Director forgot about few of the limitations of the chosen system and unconsciously downplays the importance of the positive features of the rejected systems. The Director of Information Systems is engaging in: 
 



A. 
escalation of commitment.
 

B. 
rational maximization.
 

C. 
rational choice thinking.
 

D. 
confirmation bias.
 

E. 
impulsive buying.
 
 

73.
_____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value. 
 



A. 
Implicit favorite
 

B. 
Bounded rationality
 

C. 
Intuition
 

D. 
Nonprogrammed decision making
 

E. 
Prospect theory effect
 
 

74.
Prospect theory and closing costs are two reasons why people: 
 



A. 
engage in escalation of commitment.
 

B. 
define problems in terms of preferred solutions.
 

C. 
make non-programmed decisions rather than programmed decisions.
 

D. 
demonstrate satisficing behaviors.
 

E. 
encourage employee involvement.
 
 

75.
Escalation of commitment can be minimized by ensuring that: 
 



A. 
there are ready-made alternatives to resolve the problem.
 

B. 
those who make the decision are different from those who implement and evaluate it.
 

C. 
the team leader has strong opinions about the preferred options for a problem.
 

D. 
organizational goals are relatively ambiguous.
 

E. 
negative information is screened out to protect the self-esteem of the decision makers.
 
 

76.
Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to: 
 



A. 
minimize reliance on an implicit favorite.
 

B. 
avoid relying on mental models to recognize problems or opportunities.
 

C. 
minimize escalation of commitment.
 

D. 
minimize problem identification.
 

E. 
reduce the incidence of satisficing.
 
 

77.
Incubation and verification are the: 
 



A. 
stages of the creative process.
 

B. 
elements of bounded rationality.
 

C. 
elements of the MARS model.
 

D. 
stages of team decision making.
 

E. 
two steps in perceptual modeling.
 
 

78.
The first stage of the creative process is: 
 



A. 
divergent thinking.
 

B. 
preparation.
 

C. 
experimentation.
 

D. 
insight.
 

E. 
intuition.
 
 

79.
An organization asks its employees to reframe the problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this? 
 



A. 
Verification
 

B. 
Preparation
 

C. 
Experimentation
 

D. 
Insight
 

E. 
Incubation
 
 

80.
Which of the following refers to calculating the conventionally accepted "right answer" to a logical problem? 
 



A. 
Divergent thinking
 

B. 
Convergent thinking
 

C. 
Logical validity
 

D. 
Escalation of commitment
 

E. 
Confirmation bias
 
 

81.
Which of the following is assisted by incubation in the creative process? 
 



A. 
Escalation of commitment
 

B. 
Prospect theory effect
 

C. 
Convergent thinking
 

D. 
Divergent thinking
 

E. 
Decision choice
 
 

82.
In the creative process, which of the following refers to the experience of suddenly becoming aware of a unique idea? 
 



A. 
Incubation
 

B. 
Illumination
 

C. 
Preparation
 

D. 
Verification
 

E. 
Convergent thinking
 
 

83.
The insight stage in the creative process: 
 



A. 
provides a tested solution to complex problems.
 

B. 
occurs after the verification stage in the process.
 

C. 
generates long-lasting thoughts in the memory.
 

D. 
is characterized by convergent thinking.
 

E. 
can be quickly lost if not documented.
 
 

84.
A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her inspiration for a new marketing plan. According to the creative process model, which of the following is the next stage in the creative process after such an inspiration? 
 



A. 
Preparation
 

B. 
Incubation
 

C. 
Verification
 

D. 
Insight
 

E. 
Morphological analysis
 
 

85.
You have just received seed money for a new e-commerce business and you want to hire a dozen people with a high level of creative potential. To hire the most creative people, you would select applicants who have: 
 



A. 
no experience in this industry, high analytic intelligence, and relatively low need for achievement.
 

B. 
high degree of nonconformity, value self-direction, and relatively low need for affiliation.
 

C. 
strong mental models regarding their field of knowledge, high synthetic intelligence, and relatively high need for social approval.
 

D. 
high need for affiliation, high need for achievement and high need for social approval.
 

E. 
low openness to experience, high need for social approval, and relatively low need for affiliation.
 
 

86.
People tend to be more creative when they: 
 



A. 
have a reasonable level of job security.
 

B. 
are secluded from others in the organization.
 

C. 
are under extreme time-pressure.
 

D. 
have relatively low experience.
 

E. 
have low openness to experience.
 
 

87.
What do impromptu storytelling, morphological analysis, and artwork have in common? 
 



A. 
They are forms of cross-pollination.
 

B. 
They increase the risk of bounded rationality.
 

C. 
They are forms of associative play.
 

D. 
They significantly weaken the creative process.
 

E. 
They are used mainly to improve the rational choice process.
 
 

88.
Which of the following involves listing different dimensions of a system and the elements of each dimension and then looking at each combination? 
 



A. 
Cross pollination
 

B. 
Impromptu storytelling
 

C. 
Redefining the problem
 

D. 
Morphological analysis
 

E. 
Illumination
 
 

89.
Which of these is also referred to as participative management? 
 



A. 
Employee involvement
 

B. 
Escalation of commitment
 

C. 
Creativity
 

D. 
Implicit favorite
 

E. 
Divergent thinking
 
 

90.
Which of the following is the lowest level of employee involvement? 
 



A. 
Consult with individuals
 

B. 
Receive information from individuals
 

C. 
Decide alone
 

D. 
Facilitate the team's decision
 

E. 
Consult with the team
 
 

91.
Which of the following is true at the highest level of employee involvement? 
 



A. 
Participation involves asking employees for information.
 

B. 
The entire decision making process is handed over to the employees.
 

C. 
Specific employees provide information to the management, and management makes the recommendations.
 

D. 
Employees tend to disagree with each other regarding the preferred solution.
 

E. 
Employees are told about the problem and they provide recommendations to the decision maker.
 
 

92.
The benefits of employee involvement increase with: 
 



A. 
the routineness and similarity of the problem or opportunity.
 

B. 
management's knowledge of the situation.
 

C. 
the standardization and repetitiveness of the problem or opportunity.
 

D. 
the number and similarity of employees involved in the decision.
 

E. 
the novelty and complexity of the problem or opportunity.
 
 

93.
Decision structure, risk of conflict, and decision commitment are the: 
 



A. 
three conditions required for bounded rationality.
 

B. 
factors that support implicit favorites.
 

C. 
contingencies of employee involvement.
 

D. 
factors that lead to escalation of commitment.
 

E. 
constraints of team decision making.
 
 

94.
A higher level of employee involvement is preferable when: 
 



A. 
management and employees possess the same information regarding the problem.
 

B. 
the problem relates to a nonprogrammed decision.
 

C. 
employee's goals and norms conflict with the organization's objectives.
 

D. 
employees are likely to disagree with each other regarding the preferred solution.
 

E. 
most of the employees in the organization are less experienced.
 
 

95.
Employees should not make the decision alone (without the manager's involvement) when: 
 



A. 
their goals and norms conflict with the organization's objectives.
 

B. 
they lack commitment to decisions made by the boss alone.
 

C. 
they possess more knowledge than the manager.
 

D. 
employees are likely to disagree with each other regarding the preferred solution.
 

E. 
the problem calls for a nonprogrammed decision.
 
 

1. Decision making is a nonconscious process of moving toward a desirable state of affairs. 
2. Subjective expected utility refers to how much the selected alternative benefits or satisfies the decision maker. 
3. The rational choice paradigm has dominated decision-making philosophy in Western societies for most of written history. 
4. The rational choice paradigm selects the choice with the highest utility through the calculation of objective expected utility. 
5. The first step in the rational choice paradigm is to identify the problem or recognize an opportunity. 
6. Nonprogrammed decisions require all steps in the decision model because the problems they present are new, complex, or ill-defined. 
7. The rational choice paradigm assumes that obtaining all possible information about all possible alternatives and their outcomes when selecting the choice with the highest subjective expected utility is a complex and time-consuming procedure. 
8. The rational choice decision paradigm recommends choosing the alternative with the lowest subjective expected utility. 
9. The last step in the rational decision-making model is to evaluate the decision outcomes. 
10. One reason why the problem identification stage is imperfect is that various stakeholders try to frame the decision maker's view of the situation. 
11. Solution-focused problem identification fails to fully diagnose the underlying causes of a problem that need to be addressed. 
12. Decision makers have a need to reduce uncertainty, so they tend to engage in solution-focused problem identification. 
13. Preconceived mental models formed by our cognitive structure help us make better and accurate decisions. 
14. According to bounded rationality theory, people make the best decisions when their perceptions are bounded or framed by past experience. 
15. The rational choice paradigm assumes that decision makers have limited information-processing capabilities and engage in a limited search for alternatives. 
16. Decision makers typically look at alternatives sequentially and compare each alternative with an implicit favorite. 
17. Although the implicit favorite comparison process seems to be hardwired in human decision making, it often undermines effective decision making. 
18. The representativeness heuristic is a natural tendency to assign higher probabilities to objects or events that are easier to recall from memory. 
19. The clustering illusion is the tendency to see patterns from a small sample of events when those events are, in fact, random. 
20. One of the reasons people use satisficing rather than maximization when making decisions is that they lack the capacity and motivation to process the huge volume of information required to identify the best choice. 
21. Research suggests that decision makers do not evaluate several alternatives when they find an opportunity. 
22. The emerging emotional view of decision making states that people form preferences toward alternatives as soon as they receive information about those alternatives. 
23. When in a positive mood, people pay more attention to details and follow a nonprogrammed decision routine. 
24. When making important decisions, we listen in on our emotions to guide our preference among the decision alternatives. 
25. Intuition allows us to draw on our tacit knowledge to guide our decision preferences. 
26. Intuition is based on mental templates or models representing tacit knowledge about a situation. 
27. Intuition relies on the programmed decision routines that speed up our response to pattern matches or mismatches. 
28. Scenario planning is a systematic process of thinking about alternative futures and what an organization should do to anticipate and react to those environments. 
29. Postdecisional justification deflates the decision maker's initial evaluation of the decision. 
30. Postdecisional justification gives people an excessively optimistic evaluation of their decisions, until they receive very clear and undeniable information to the contrary. 
31. Escalation of commitment occurs when employees increase their support for a decision because most of their colleagues also support that decision. 
32. The four main influences of escalation of commitment are self-justification effect, self-enhancement effect, prospect theory effect, and sunk costs effect. 
33. The prospect theory effect motivates us to avoid losses. 
34. Escalation of commitment is likely to occur when the perceived costs of terminating the project are high or unknown. 
35. Involving several people in the evaluation of a decision weakens the decision evaluation process. 
36. Creativity is defined as reframing a problem in a unique way and generating different approaches to the issue. 
37. The incubation stage of creativity is more effective when the decision maker sets aside all other activities and focuses attention on the issue or problem. 
38. Incubation is the stage of creativity in which the problem is simmering at the back of your mind while you are doing something else. 
39. Divergent thinking refers to calculating the conventionally accepted right answer to a logical problem. 
40. The ideas that appear during the illumination stage of creativity are quickly forgotten unless documented. 
41. The ideas that form during the illumination stage of creativity need to be verified through logical evaluation and experimentation. 
42. Creative people need to have practical intelligence but not cognitive intelligence. 
43. Knowledge and experience can undermine creativity because the mental models of people tend to become more rigid. 
44. Creative people tend to have a high need for affiliation. 
45. Creative people are more embarrassed when they make mistakes. 
46. Task significance and autonomy are important conditions for creativity in organizations. 
47. Creativity tends to suffer during times of downsizing and corporate restructuring. 
48. People are most creative when management puts intense time pressures on them to complete tasks. 
49. Creative ideas can emerge when asking people unfamiliar with the problem to explore the problem with you. 
50. Morphological analysis is a test used to identify people with a creative personality. 
51. A potentially useful creative practice is to list different dimensions of a system and the elements of each dimension, then think through the potential commercial usefulness of each combination. 
52. Cross-pollination is recommended to encourage creativity in organizations. 
53. In organizational settings, creativity usually occurs alone rather than with other people. 
54. A low level of employee involvement occurs when employees are individually asked for specific information but the problem is not described to them. 
55. Employee involvement potentially improves both the decision-making quality and the commitment of employees. 
56. Employee involvement tends to weaken the decision-making process. 
57. Employees are more committed to implementing a solution when they are involved in making the decision. 
58. The four outcomes of employee involvement are decision structure, source of decision knowledge, decision commitment, and risk of conflict. 
59. High employee involvement would be difficult to achieve when conflict is likely among employees. 
60. _____ can be best defined as a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs. 
A. Decision making
B. Bounded rationality
C. Divergent thinking
D. Prospect theory
E. Scenario planning

61. Which of the following statements is true about the rational choice paradigm? 
A. It is a very recent decision-making philosophy that emerged after World War II.
B. It includes the components of subjective expected utility and the systematic decision-making process.
C. It has remained alien to Western societies for many centuries.
D. It selects the choice with the highest utility through the calculation of objective expected utility.
E. It recommends the avoidance of logic or all information in the decision-making process.

62. In the context of decision making, the rational choice paradigm selects the choice with the highest utility through the calculation of: 
A. subjective expected utility.
B. selective expected utility.
C. solution-focused utility.
D. rational expected utility.
E. rational selective utility.

63. Which of the following statements is true about the rational choice decision process? 
A. It usually ends with the selection of an alternative with the highest value.
B. It involves searching for ready-made solutions and allows for custom-made solutions too.
C. It usually begins with choosing the type of decision process, such as programmed or nonprogrammed decisions.
D. It excludes the probability of good or bad outcomes occurring.
E. It is usually carried out without calculating the subjective expected utility from alternatives.

64. A nonprogrammed decision is applicable in any: 
A. routine situation where the company has a ready-made solution.
B. decision that does not relate directly to the employee's job description.
C. unprecedented situation in which employees must search for alternative solutions.
D. standard operating procedure that has been resolved in the past.
E. decision that affects employee performance.

65. Which of these is the final step in the rational choice decision-making process? 
A. Developing a list of solutions
B. Implementing the selected alternative
C. Choosing the best alternative
D. Evaluating decision outcomes
E. Recognizing the opportunities

66. The rational choice paradigm is rarely practiced in reality because it: 
A. ignores the fact that problems must be defined before alternatives are chosen.
B. assumes that human beings make decisions based on their emotions and abilities.
C. assumes that people are perfectly rational in their decision making.
D. ignores the fact that people evaluate their decision after an alternative has been chosen and implemented.
E. does not consider the problems associated with implementing each of the alternatives.

67. In the context of the rational choice paradigm, which of the following statements is true about the issues with problem identification? 
A. The tendency to engage in perceptual defense is a constant among decision makers.
B. Various studies indicate that indecisive leadership hardly influences in identifying a problem or a situation.
C. People usually fail to block out bad news as a coping mechanism in understanding the problem.
D. A mental model of the external world is the best way in problem framing.
E. Employees, suppliers, customers, and other stakeholders present (or hide) information in ways that makes the decision maker see the situation as a problem or an opportunity.

68. During a meeting, senior executives of a consumer products company were addressing the problem of being late in detecting several consumer trends, such as the trend toward using see-through plastics in kitchenware. While trying to determine the source of this problem, one executive said: "The main problem here is that we need to find a better industrial design firm to design our products." Which of the following best describes the decision-making problem that this executive is exhibiting? 
A. The executive is engaging in escalation of commitment.
B. The executive is shifting away from the problem by blaming it on external factors.
C. The executive is lacking creativity and rationality to solve the problem.
D. The executive is engaging in groupthink.
E. The executive is defining the problem in terms of a solution.

69. The tendency to define problems in terms of a preferred solution occurs because it: 
A. provides a comforting solution.
B. gives decision makers more ambiguity than decisiveness.
C. avoids the escalation of commitment problem.
D. avoids problems of bounded rationality.
E. helps in minimizing the biases caused by mental models.

70. Perceptual defense refers to the: 
A. defending of the solutions we propose.
B. defending of those who agree with us when we identify a problem.
C. defending of the perception we have after making a decision.
D. blocking out of bad news or information that threatens our self-concept.
E. justifying of our actions to defend our position.

71. What effect do mental models have on the decision-making process? 
A. They adversely influence evaluations that make it difficult to see new opportunities.
B. They allow decision makers to obtain accurate information from the surroundings.
C. They reduce the importance of developing alternative solutions to the problem.
D. They allow decision makers to maximize the potential of their decision making.
E. They help people to be more creative in decision making.

72. The concept of bounded rationality holds that: 
A. our perception of a rational reality is bounded by nonrationality.
B. decision makers process limited and imperfect information and rarely select the best choice.
C. decision makers have limited alternatives to make decisions.
D. decision makers are bound to project images of themselves as rational thinkers.
E. our realities are bounded by our own perceptions, so everyone's reality is different.

73. Which of the following is one of the assumptions of the rational choice paradigm? 
A. Decision makers evaluate alternatives against an implicit favorite.
B. Decision makers choose an alternative that is good enough.
C. Decision makers have well-articulated goals.
D. Decision makers evaluate alternatives sequentially.
E. Decision makers process perceptually distorted information.

74. Which of the following is an observation from organizational behavior that contradicts the rational choice paradigm assumptions? 
A. Decision makers evaluate all alternatives simultaneously.
B. Decision makers use factual information to choose alternatives.
C. Decision makers choose the alternative with the highest payoff.
D. Decision makers have limited information-processing abilities.
E. Decision makers use absolute standards to evaluate alternatives.

75. Decision makers tend to rely on their implicit favorite when they: 
A. select an appropriate decision style.
B. evaluate decision alternatives sequentially.
C. want to avoid escalation of commitment.
D. want to make more creative decisions.
E. have to make a selection from very limited alternatives.

76. The availability heuristic refers to the tendency: 
A. to choose an alternative that is good enough rather than the best.
B. of people to be influenced by an initial anchor point and not move beyond it.
C. to evaluate probabilities of events or objects by how closely it resembles another event.
D. to estimate the probability of something occurring by how easily we can recall those events.
E. of decision makers to evaluate alternatives sequentially rather than comparing them all at once.

77. The Director of Nursing is looking throughout the hospital for a new format of work schedule for nurses. She evaluates each schedule system as soon as she learns about it. Eventually, she finds a schedule that is good enough for her needs and ends her search even though there may be better schedules available that she hasn't yet learned about. In this case, the Director of Nursing is engaging in: 
A. escalation of commitment.
B. satisficing.
C. perceptual defense.
D. postdecisional justification.
E. open rationalization.

78. Satisficing refers to: 
A. the tendency to choose an alternative that is good enough rather than the best.
B. the feeling employees experience when they are not involved in a decision in which they would have made a valuable contribution.
C. a desirable outcome of decision making when several employees participate in the decision process.
D. the feeling employees experience when they make the right decision.
E. the tendency for decision makers to evaluate alternatives sequentially rather than comparing them all at once.

79. Which of the following is NOT a reason people engage in satisficing rather than maximization? 
A. They lack the capacity and motivation to process a huge volume of information.
B. They rely on sequential evaluation of new alternatives.
C. Decisions with many alternatives can be cognitively and emotionally draining.
D. Alternatives present themselves over time, not all at once.
E. It allows them to choose the alternative with the highest payoff.

80. Which of the following ultimately energize us to select the preferred choice? 
A. Logical inferences
B. Emotions
C. Rational thoughts
D. Creative activities
E. Intuitions

81. Which of the following statements is true about intuition? 
A. All emotional signals are intuition.
B. It relies on nonaction scripts.
C. It excludes comparison of observations that are deeply held patterns learned through experience.
D. It is both an emotional experience and a rapid nonconscious analytic process.
E. The extent to which our gut feelings in a situation represent intuition is independent on our level of experience in that situation.

82. Which of the following statements is true about action scripts? 
A. They effectively shorten the decision-making process.
B. They are a form of nonprogrammed decision-making routine.
C. They are very specific in nature.
D. They hardly influence the intuition of a decision maker.
E. They are collectively known as the clustering illusion.

83. Intuition relies on programmed decision routines that speed up our response to pattern matches or mismatches. These programmed decision routines are referred to as: 
A. action scripts.
B. illuminations.
C. rational formulae.
D. solution-focused problems.
E. implicit favorites.

84. Which of the following statements is true about confirmation bias? 
A. It gives people excessively negative evaluation of their decisions.
B. It overemphasizes the negative features of the selected alternative.
C. It is otherwise known as postdecisional justification.
D. It usually undermines the decision maker's initial evaluation of the decision.
E. It involves the intentional and conscious selectivity in the acquisition and use of evidence.

85. After choosing among several computer server systems, the Director of Information Systems feels very positive about the final choice. However, some of this optimism is due to the fact that the Director forgot about few of the limitations of the chosen system and unconsciously downplays the importance of the positive features of the rejected systems. The Director of Information Systems is engaging in: 
A. escalation of commitment.
B. rational maximization.
C. rational choice thinking.
D. confirmation bias.
E. impulsive buying.

86. _____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value. 
A. Implicit favoritism
B. Bounded rationality
C. Intuition
D. Nonprogrammed decision making
E. Prospect theory effect


87. Prospect theory and closing costs are two reasons why people: 
A. engage in escalation of commitment.
B. define problems in terms of preferred solutions.
C. make nonprogrammed decisions rather than programmed decisions.
D. demonstrate satisficing behaviors.
E. encourage employee involvement.

88. Which of the following statements is true about the self-enhancement effect? 
A. It increases the risk of escalation of commitment even though it supports a positive self-concept.
B. It occurs along with self-justification and both have the same mechanism.
C. It is the tendency to experience stronger negative emotions when losing something of value than the positive emotions when gaining something of equal value.
D. It is a deliberate attempt to maintain a favorable public image.
E. It avoids any distorting of information so as to recognize the problem sooner.

89. Escalation of commitment can be effectively minimized by ensuring that: 
A. there are ready-made alternatives to resolve all problems.
B. those who make the decision are different from those who implement and evaluate it.
C. the team leader has strong opinions about the preferred options for a problem.
D. organizational goals are relatively ambiguous.
E. negative information is screened out to protect the self-esteem of decision makers.

90. Establishing a preset level at which the decision is abandoned or reevaluated is recommended mainly to: 
A. minimize reliance on an implicit favorite.
B. avoid relying on mental models to recognize problems or opportunities.
C. minimize escalation of commitment.
D. minimize problem identification.
E. reduce the incidence of satisficing.

91. Incubation and verification are: 
A. stages of the creative process.
B. elements of bounded rationality.
C. elements of the MARS model.
D. stages of team decision making.
E. two steps in perceptual modeling.

92. The first stage of the creative process is: 
A. divergent thinking.
B. preparation.
C. experimentation.
D. illumination.
E. intuition.

93. An organization asks its employees to reframe their problems in a unique way and generate different approaches to the problems. Which of the following stages in the creative process would assist this? 
A. Verification
B. Preparation
C. Experimentation
D. Illumination
E. Incubation

94. Which of the following is a true statement regarding divergent thinking? 
A. It is usually assisted by illumination and verification.
B. It aids in applying concepts or processes from completely different areas of life.
C. It calculates conventionally accepted right answers to a logical problem.
D. It avoids reframing a problem in a unique way and ensures only a single approach to a problem.
E. It fails to break away from existing mental models of a decision maker.

95. Which of the following is the final stage of the creative process? 
A. Preparation
B. Incubation
C. Gestation
D. Verification
E. Illumination

96. In the creative process, which of the following refers to the experience of suddenly becoming aware of a unique idea? 
A. Incubation
B. Illumination
C. Preparation
D. Verification
E. Convergent thinking

97. The illumination stage in the creative process: 
A. provides a tested solution to complex problems.
B. occurs after the verification stage in the process.
C. generates long-lasting thoughts in the memory.
D. is characterized by convergent thinking.
E. can be quickly lost if not documented.

98. A marketing specialist needed to find a new way of marketing a company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her inspiration for a new marketing plan. According to the creative process model, which of the following is the next stage in the creative process after such inspiration? 
A. Preparation
B. Incubation
C. Verification
D. Illumination
E. Morphological analysis

99. You have just received fresh investments for a new e-commerce business and you want to hire a dozen people with a high level of creative potential. To hire the most creative people, you would select applicants who have: 
A. no experience in this industry, high analytic intelligence, and relatively low need for achievement.
B. high degree of nonconformity, strong self-direction value, and relatively low need for affiliation.
C. strong mental models regarding their field of knowledge, high synthetic intelligence, and relatively high need for social approval.
D. high need for affiliation, high need for achievement, and high need for social approval.
E. low openness to experience, high need for social approval, and relatively low need for affiliation.

100. People tend to be more creative when they: 
A. have a reasonable level of job security.
B. are secluded from others in the organization.
C. are under extreme time pressure.
D. have relatively low experience.
E. have low openness to experience.

101. Which of the following statements is true about organizational conditions and their effects on creativity? 
A. The authority to experiment usually hampers creativity among employees.
B. Lack of pressure always seems to produce the highest creativity among employees.
C. Extreme time pressures are well-known creativity inhibitors.
D. It is usually clear how much pressure should be exerted on employees to produce creative ideas.
E. Competition among coworkers always adversely decreases creativity among employees.

102. Which of the following involves listing different dimensions of a system and the elements of each dimension and then looking at each combination? 
A. Cross-pollination
B. Impromptu storytelling
C. Redefining the problem
D. Morphological analysis
E. Illumination

103. Which of these is also referred to as participative management? 
A. Employee involvement
B. Escalation of commitment
C. Cross-pollination
D. Implicit favorite
E. Divergent thinking

104. Which of the following statements is true of employee involvement? 
A. At the lowest level of involvement, the entire decision-making process is handed over to employees.
B. Under specific conditions, it improves the evaluation of alternatives.
C. At the highest level of involvement, employees are described the problem individually.
D. It usually fails to influence or improve decision quality.
E. It restricts diverse perspectives and keeps employees from expressing themselves.

105. Which of the following is true at the highest level of employee involvement? 
A. Participation involves asking employees for information.
B. The entire decision-making process is handed over to employees.
C. Specific employees provide information to the management, and management makes the recommendations.
D. Employees tend to disagree with each other regarding the preferred solution.
E. Employees are told about the problem and they provide recommendations to the decision maker.

106. Decision structure, source of decision knowledge, decision commitment, and risk of conflict are the: 
A. conditions required for bounded rationality.
B. factors that support implicit favorites.
C. contingencies of employee involvement.
D. factors that lead to escalation of commitment.
E. constraints of team decision making.

107. The benefits of employee involvement increase with: 
A. the routineness and similarity of the problem or opportunity.
B. management's knowledge of the situation.
C. the standardization and repetitiveness of the problem or opportunity.
D. the number and similarity of employees involved in the decision.
E. the novelty and complexity of the problem or opportunity. 

108. A higher level of employee involvement is preferable when: 
A. management and employees possess the same information regarding the problem.
B. the problem relates to a nonprogrammed decision.
C. employee's goals and norms conflict with the organization's objectives.
D. employees are likely to disagree with each other regarding the preferred solution.
E. most of the employees in the organization are inexperienced.

109. Which of the following statements is true about the contingencies of employee involvement? 
A. The degree of involvement depends on whether employees will agree on the preferred solution.
B. If employee goals and norms conflict with the organization's goals, a high level of employee involvement is advisable.
C. If conflict is likely to occur, high involvement would be easy to achieve.
D. If employees are unlikely to accept a decision made without their involvement, then a high level of participation is usually necessary.
E. The benefits of employee involvement decrease with the novelty and complexity of the problem or opportunity.

110. Paragon Company
Alvin, the production manager of Paragon Company, wants to select the best supplier of raw materials from among several vendors. He has several choices and has done research into which company provides the best services and products. One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available.
According to the rational choice paradigm of decision making, Alvin should select the vendor that offers the most: 
A. discounts.
B. deliveries.
C. utility.
D. expectancy.
E. quality.

111. Paragon Company
Alvin, the production manager of Paragon Company, wants to select the best supplier of raw materials from among several vendors. He has several choices and has done research into which company provides the best services and products. One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available.
According to the rational choice decision-making process, the first step in solving this problem would be to: 
A. choose the best decision process.
B. evaluate the decision inputs.
C. research the problem.
D. identify the problem or opportunity.
E. let all of these steps occur simultaneously.

112. Sarine's Dolls
With funding from her family, Sarine is currently developing a new line of dolls for her business, which she hopes will take her company to the next level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be the way she had envisioned. Unfortunately, she then found out that there was a patent protecting the way the doll's arms were connected, so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public toward the dolls, she decided that they needed to be marketed differently in order to sell. So Sarine allocated more resources to marketing and had the packaging of the dolls redesigned and created a new set of advertising material. The cost of manufacturing these dolls has now exceeded four times the initial proposed cost, but she is determined to make it work. She is embarrassed by how this has gone, but she continues to put on a brave front.
Sarine is most likely making decisions to continue with these dolls at this point because of: 
A. self-justification.
B. self-enhancement.
C. decline of commitment.
D. prospect theory.
E. closing costs.

113. Sarine's Dolls
With funding from her family, Sarine is currently developing a new line of dolls for her business, which she hopes will take her company to the next level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be the way she had envisioned. Unfortunately, she then found out that there was a patent protecting the way the doll's arms were connected, so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public toward the dolls, she decided that they needed to be marketed differently in order to sell. So Sarine allocated more resources to marketing and had the packaging of the dolls redesigned and created a new set of advertising material. The cost of manufacturing these dolls has now exceeded four times the initial proposed cost, but she is determined to make it work. She is embarrassed by how this has gone, but she continues to put on a brave front.
What could Sarine have done differently in order to avoid this escalation of commitment with her decisions? 
A. She should have ensured that the people who evaluate the decisions are not the people who originally made them.
B. She should have publicly established a preset level at which the decision could have been abandoned or reevaluated.
C. She could have found a source of systematic and clear feedback.
D. She could have involved several people in the evaluation of the decision.
E. All of these would be effective.

114. InnoBLAST Inc.
George is a manager at InnoBLAST Inc., a web-based applications company. In an attempt to promote new ideas, George decides to allow his engineering team to devote 15 percent of their work time to whatever projects they would like to work on and reduces their assigned workload. He then institutes a 30-minute period each morning where the team members are asked to look over their current project list for the day and develop more knowledge about a task before they move on to work on their assigned tasks.
George is attempting to promote: 
A. employee relations.
B. employee creativity.
C. employee work-life balance.
D. a learning-oriented culture.
E. task orientation.

115. InnoBLAST Inc.
George is a manager at InnoBLAST Inc., a web-based applications company. In an attempt to promote new ideas, George decides to allow his engineering team to devote 15 percent of their work time to whatever projects they would like to work on and reduces their assigned workload. He then institutes a 30-minute period each morning where the team members are asked to look over their current project list for the day and develop more knowledge about a task before they move on to work on their assigned tasks.
The time period set aside each morning primarily helps promote _____ stages of the creative process. 
A. preparation and illumination
B. incubation and verification
C. illumination and verification
D. verification and preparation
E. preparation and incubation

116. ABC Corporation
Dora and Keith are managers at ABC Corporation. Keith is having problems in his department due to lack of innovation. In response, he consults the corporate procedures manual and speaks with his boss about the right way to solve the problem. Dora is also having a similar problem in her own department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to deal with the problem.
Keith is an example of a(n) _____ thinker. 
A. divergent
B. innovative
C. procedural
D. convergent
E. illumination

117. ABC Corporation
Dora and Keith are managers at ABC Corporation. Keith is having problems in his department due to lack of innovation. In response, he consults the corporate procedures manual and speaks with his boss about the right way to solve the problem. Dora is also having a similar problem in her own department but decides to confront it by hosting team luncheons where she can learn new perspectives and discuss new "outside the box" ways to deal with the problem.
Dora is an example of a(n) _____ thinker. 
A. divergent
B. conservative
C. procedural
D. convergent
E. illumination

118. Selene and Rita
Selene and Rita are both engineers at a highly innovative technology company. They are both very creative people. Selene has 15 years of engineering background, a high need for achievement, and strong task motivation, whereas Rita prides herself on her high openness to experience, strong self-direction, and her ability to evaluate the potential usefulness of ideas.
According to the characteristics of creative people, which are Selene's strongest areas? 
A. Independent imagination and experience
B. Persistence and practical intelligence
C. Cognitive and practical intelligence
D. Experience and persistence
E. Experience only

119. Selene and Rita
Selene and Rita are both engineers at a highly innovative technology company. They are both very creative people. Selene has 15 years of engineering background, a high need for achievement, and strong task motivation, whereas Rita prides herself on her high openness to experience, strong self-direction, and her ability to evaluate the potential usefulness of ideas.
According to the characteristics of creative people, which are Rita's strongest areas? 
A. Independent imagination and experience
B. Persistence and practical intelligence
C. Cognitive and practical intelligence
D. Experience and persistence
E. Intelligence and independent imagination

 
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