1) Programmed decisions are useful when there is no predetermined structure on which to

rely.

A. True

B. False

2) Managers often ignore problems.

A. True

B. False

3) Bill Simmons is the manager of a small restaurant and must decide how much money he owes his suppliers. This is an example of a nonprogrammed decision.

A. True

B. False

4) In the fourth state of decision making, problem diagnosis is linked to the development of alternatives.

A. True

B. False

5) Choosing a ready-made alternative takes less time than designing a custom-made solution.

A. True

B. False

6) Contingency plans are best developed following the final stage of decision making-evaluating the decision.

A. True

B. False

7) One advantage of using a group for decision making is that one person dominates.

A. True

B. False

8) Discounting the future is said to partly explain governmental budget deficits and environmental destruction.

A. True

B. False

9) In decision making, it is always better to use a group than an individual.

A. True

B. False

10) Which of the following does NOT describe good plans in organizations?

A. They provide a clear road map

B. They are purposeful

C. They may be formal or informal

D. They are flexible

11) The targets or ends the manager wants to reach are called:

A. Plans

B. Mission statement

C. Vision

D. Goals

12) Plans are:

A. Targets a manager wants to reach

B. Specific to differing industries

C. Inappropriate when resources are scarce

D. Actions taken to achieve goals

13) A plan which focuses on ongoing activities and may become a more permanent policy or rule is called a(n):

A. Single-use plan

B. Strategy

C. Mission statement

D. Standing plan

14) A policy developed for the yearly graduation ceremony at Easy Town High School can be described as a(n):

A. Single-use plan

B. Contingency plan

C. "What-if" plan

D. Standing plan

15) _____________ plans might be referred to as what-if plans.

A. Strategic

B. Contingency

C. Standing

D. Single-use

16) Coordination refers to

A. Division of labor within an organization

B. The performance of specific tasks by specific people

C. The need for specific tasks in the functional fields

D. The linking of the various components of an organization

17) An organization chart conveys all of the following EXCEPT:

A. Who reports to whom

B. How decisions are made

C. How the work is divided

D. The work performed by each unit

18) The assignment of different tasks to different people or groups is the:

A. Organization structure

B. Division of labor

C. Value chain

D. Strategic plan

19) Incremental decision making occurs when managers make small decisions and move cautiously toward a bigger solution.

A. True

B. False

20) Managers often ignore problems for all of the following reasons EXCEPT:

A. Getting involved is risky

B. It is easier to procrastinate or to get busy with less demanding activities

C. Managers are often too busy to make decisions

D. They cannot be sure how much time, energy, or trouble lies ahead

21) Characteristics of managerial decisions include all of the following EXCEPT:

A. Uncertainty

B. Lack of structure

C. Convention

D. Risk

22) The state that exists when decision makers have insufficient information is:

A. Uncertainty

B. Probability

C. Risk

D. Certainty

23) Shakil works for a large contractor. Company policy requires that in hiring subcontractors, at least three bids must be received and that the lowest bid which meets specifications will be accepted. Shakil's decisions regarding the hiring of subcontractors would be classified as:

A. Programmed

B. Reprehensible

C. Lacking structure

D. Minimizing

24) Managers of Shadow Blinds are contemplating whether to open the company's first international branch in Europe or Asia. These managers are facing a _______ decision.

A. Programmed

B. Nonprogrammed

C. Well structured

D. Routine

25) The initial step in the decision-making process is to:

A. Evaluate the decision

B. Identify the problem

C. Implement the decision

D. Select an alternative

26) Once a problem is identified and properly diagnosed, the next stage in the decision making process involves:

A. Evaluating consequences

B. Generating alternative solutions

C. Evaluating information

D. Evaluating alternatives

27) Kathy has received two job offers. One is from a firm in a town that Kathy would like to live in but the other offer would pay more. Kathy is having a difficult time making a decision due to experiencing:

A. Organizational conflict

B. Psychological conflict

C. Physical location conflict

D. Internal conflict

28) The essential characteristic of great companies, according to Collins and Porras, was their relentless focus on beating the competition.

A. True

B. False

29) Collins and Porras argue that organizations must focus on both purpose beyond profit AND pragmatic pursuit of profit.

A. True

B. False

30) A critical characteristic of success, for all the great companies studied in Built to Last,was a set of common values that all the companies followed.

A. True

B. False

31) A performance gap can occur when performance is good but someone realizes that it could be better.

A. True

B. False

32) The key to successful change is people.

A. True

B. False

33) When management realizes that its current practices are no longer appropriate and the company must break out of its present mold by doing things differently, this is called freezing.

A. True

B. False

34) Susan has the opportunity to either go along with her coworkers and participate in filling out inaccurate time records OR tell her manager what is happening. This is an example of:

A. An ethical issue

B. A situation that is not a problem

C. A time when Susan should ignore the problem

D. A moral rights issue

35) People in the ____________ stage make decisions based on concrete rewards and punishments and immediate self-interest.

A. Principled

B. Deontology

C. Preconventional

D. Conventional

36) A situation, problem or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called:

A. An ethical issue

B. A personal issue

C. Business ethics

D. Ethical

37). Satisficing is achieving the best possible outcome.

A. True

B. False

38). Affective conflict is differences in perspectives or judgments about issues whereas cognitive conflict is emotional and directed at other people.

A. True

B. False

39. Some experts advise that in today's complex business significant problems should always be tackled by groups.

A. True

B. False

40. Which is the first step in the formal planning process?

A. Goal and plan evaluation.

B. Implementation

C. Monitor and Control

D. Situational Analysis

41. Which of the steps in the formal planning process involves studying past events, examining current conditions, and forecasting future trends?

A. Situational analysis

B. Monitor and control

C. Goal and plan evaluation

D. Alternative goals and plans

42. If expansion to Australia does not materialize, Widget, Inc.'s backup plan is to expand to Asia. This backup plan is an example of:

A. Strategic plan

B. Standing

C. Contingency plan

D. Single-use plan