Ch 3: The Nature Of Managerial Decision-making

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  • 1/20 Questions

    Decision making refers to the process through which managers and leaders identify and resolve problems and capitalize on opportunities.

    • True
    • False
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About This Quiz

This quiz evaluates understanding of managerial decision-making in business. It covers the decision-making process, distinguishing between true and false statements, and understanding the advantages of group decision-making.

Ch 3: The Nature Of Managerial Decision-making - Quiz

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  • 2. 

    Decision making refers to the process through which managers and leaders identify and resolve problems and capitalize on opportunities.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because decision making is indeed a process used by managers and leaders to identify and solve problems as well as take advantage of opportunities. It involves gathering information, analyzing options, evaluating alternatives, and selecting the best course of action. By making effective decisions, managers and leaders can steer their organizations towards success and achieve their goals.

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  • 3. 

    To ensure an effective strategy implementation,  proper planning and consideration of the resources necessary to carry out the decision.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because effective strategy implementation requires proper planning and consideration of the necessary resources. Without proper planning, a strategy may not be executed efficiently or may fail altogether. Additionally, without considering the resources needed, it may be difficult to allocate the necessary time, money, and manpower to carry out the decision effectively. Therefore, to ensure successful strategy implementation, it is important to plan and consider the resources required.

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  • 4. 

    A rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement is true. Rational decision making involves a systematic approach to problem-solving. It begins with defining the problem, followed by identifying and evaluating various alternatives or solutions. Finally, the decision-maker selects the optimal solution based on logical reasoning and analysis. This process ensures that decisions are made based on careful consideration of available options, leading to more effective and efficient outcomes.

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  • 5. 

    The decision-making process is complete even if the decision has not been evaluated

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that the decision-making process is considered complete even if the decision has not been evaluated. However, this is incorrect. The evaluation of a decision is a crucial step in the decision-making process. Without evaluating the decision, it is impossible to determine its effectiveness or whether it aligns with the desired outcomes. Therefore, the statement is false.

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  • 6. 

    Which of the following is not an advantage of group-decision making? 

    • Greater acceptance and commitment to decisions

    • Less information, data, and facts accumulated

    • Problems viewed from various aspects

    • Greater satisfaction from employees

    Correct Answer
    A. Less information, data, and facts accumulated
    Explanation
    Group decision-making is generally considered advantageous because it leads to greater acceptance and commitment to decisions, allows problems to be viewed from various aspects, and results in greater satisfaction from employees. However, the option "Less information, data, and facts accumulated" is not an advantage of group decision-making. In fact, group decision-making often involves pooling together a diverse range of information, data, and facts from different group members to make a well-informed decision.

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  • 7. 

    There are 2 types of decision making; â€‹Programmed Decisions and â€‹Condition Under Certainty. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement in the question is incorrect. There are actually three types of decision making: programmed decisions, non-programmed decisions, and semi-programmed decisions. Programmed decisions are routine decisions that can be made using established rules or procedures. Non-programmed decisions are unique and require a custom solution. Semi-programmed decisions are a combination of both. Therefore, the correct answer is false.

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  • 8. 

    Nominal group technique is a structured process designed to stimulate creative group decision-making in which agreement is lacking or the members have incomplete knowledge concerning the nature of the problem

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that the nominal group technique is indeed a structured process that aims to stimulate creative group decision-making. It is particularly useful when there is a lack of agreement among group members or when they have incomplete knowledge about the problem at hand. Therefore, the statement "Nominal group technique is a structured process designed to stimulate creative group decision-making in which agreement is lacking or the members have incomplete knowledge concerning the nature of the problem" is true.

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  • 9. 

    Select the rules of brainstorming 

    • Ideas are not criticized as they are being generated.

    • Freewheeling is not allowed

    • Quality is not important

    • The less the ideas, the better.

    Correct Answer
    A. Ideas are not criticized as they are being generated.
    Explanation
    The correct answer is "Ideas are not criticized as they are being generated." In brainstorming, it is important to create a non-judgmental and open environment where all ideas are welcomed without criticism. This encourages participants to freely express their thoughts and helps in generating a wide range of ideas. By suspending judgment, individuals feel more comfortable sharing their ideas, leading to a more creative and innovative brainstorming session.

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  • 10. 

    The 1st step in decision-making process is by identifying the objectives.  

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The 1st step in the decision-making process is not by identifying the objectives. The correct first step is to recognize the problem or opportunity that requires a decision. Once the problem or opportunity is identified, then the objectives can be determined and the decision-making process can proceed.

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  • 11. 

    The problem arise when there is any situation that has the potential to provide additional beneficial outcomes. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that problems arise when there is a potential for additional beneficial outcomes. However, this is not necessarily true. Problems can arise in a variety of situations, not just when there is potential for additional beneficial outcomes. Therefore, the correct answer is False.

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  • 12. 

    In condition under decision making, risk can be defined as 

    • Some information is clear, and enough to answer all questions

    • All the Information is complete, but it is not enough to answer all questions about the outcomes

    • Some information is available, but it is not enough to answer all questions about the outcomes

    • Decision maker know exactly what will happen and able to predict the outcome precisely

    Correct Answer
    A. Some information is available, but it is not enough to answer all questions about the outcomes
    Explanation
    The correct answer is "Some information is available, but it is not enough to answer all questions about the outcomes." This option suggests that there is some information present, but it is insufficient to provide a complete understanding of the potential outcomes. This implies that there is still uncertainty and a level of risk involved in the decision-making process.

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  • 13. 

    Which of the following is referring to the programmed decision making. 

    • Deals with unique, unusual or exceptional problem. It is unstructured and requires higher level management

    • A decision that is relatively unstructured and occurs frequently.

    • It is structured whereby decision that can be handled by a unique approach for example enter a new market.

    • A decision that is fairly structured or recurs with some frequency.

    Correct Answer
    A. A decision that is fairly structured or recurs with some frequency.
    Explanation
    The correct answer refers to programmed decision making, which is a decision that is fairly structured or recurs with some frequency. This type of decision can be handled using a unique approach and does not require higher level management. It is different from other options which describe unstructured, unique, or exceptional problems that require higher level management.

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  • 14. 

    The following is the disadvantages of Group Decision Making, Except. 

    • Social pressure to conform

    • Minority domination

    • Concern fo groups goals rather than individual

    • Greater time requirement

    Correct Answer
    A. Concern fo groups goals rather than individual
    Explanation
    The correct answer is "Concern for group goals rather than individual." This is a disadvantage of group decision making because it can lead to the neglect of individual needs and preferences. Group members may prioritize the overall goals of the group over the needs and desires of individual members, which can result in dissatisfaction and lack of motivation among individuals. This can also lead to a lack of diversity in decision making, as the focus is on the collective rather than considering different perspectives and ideas.

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  • 15. 

    —The process by which a course of action is selected as the way to deal with a specific problem is refer to opportunity. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because the process by which a course of action is selected as the way to deal with a specific problem is actually referred to as decision-making, not opportunity.

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  • 16. 

    The following is the steps in decision making, except. 

    • Identify Problems

    • Setting objective

    • Look for available options

    • Selecting available alternative

    Correct Answer
    A. Setting objective
    Explanation
    The given answer is "Setting objective." This step is not part of the decision-making process. The correct steps in decision making are: 1) Identify Problems, 2) Look for available options, and 3) Selecting available alternative. "Setting objective" is not a separate step but rather a part of the overall decision-making process.

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  • 17. 

    Which of the following is Technique for Quality in Group Decision Making.

    • Attribute Listing

    • Problem Reversal

    • Mind Map

    • Dialectical Inquiry

    Correct Answer
    A. Dialectical Inquiry
    Explanation
    Dialectical Inquiry is a technique for quality in group decision making. It involves creating an open and constructive dialogue among group members to explore different perspectives and challenge assumptions. This technique encourages critical thinking, encourages the exploration of alternative solutions, and helps to identify potential biases or flaws in the decision-making process. By engaging in dialectical inquiry, groups can make more informed and effective decisions.

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  • 18. 

    The decision-making process becoming ineffective when (choose more than 1 answer)

    • The leader becomes more psychologically distant from the other members.

    • The group’s tolerance of direction from the leader is greater, and the team’s decision making becomes more centralized.

    • The demands on the leaders time and attention are greater

    • The atmosphere is more friendly, personal and, in general,satisfying.

    Correct Answer(s)
    A. The leader becomes more psychologically distant from the other members.
    A. The group’s tolerance of direction from the leader is greater, and the team’s decision making becomes more centralized.
    A. The demands on the leaders time and attention are greater
    Explanation
    When the leader becomes more psychologically distant from the other members, it creates a communication gap and hinders effective decision-making. Additionally, if the group's tolerance of direction from the leader is greater, it indicates that there is less open discussion and input from team members, leading to centralized decision-making. Moreover, if the demands on the leader's time and attention are greater, it can result in rushed or uninformed decisions. These factors collectively contribute to an ineffective decision-making process.

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  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 27, 2016
    Quiz Created by
    Nabilazwa
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