CHAPTER 5PROBLEM SOLVING AND DECISION MAKING

MULTIPLE CHOICE
1. A problem is technically defined as a discrepancy between the
a
.
past and present.
b
.
future and present.
c
.
person's wishes and desires.
d
.
ideal and actual conditions.
ANS: D PTS: 1 DIF: !F: p. 1"#
NAT: AA$S%: Analytic& Strate'y
#. The purpose of decision (a)in' is to
a
.
analy*e a proble(.
b
.
sol+e a proble(.
c
.
collaborate..
d
.
in+ol+e people in the decisions.
ANS: % PTS: 1 DIF: , !F: p. 1""
NAT: AA$S%: !eflecti+e Thin)in'& $reation of -alue
.. In (a)in' a decision& the alternati+e should be chosen that (ost clearly
a
.
is fa+ored by top (ana'e(ent.
b
.
achie+es the 'oal of the decision.
c
.
sa+es the or'ani*ation (oney.
d
.
leads to inno+ation.
ANS: % PTS: 1 DIF: , !F: p. 1"/
NAT: AA$S%: Analytic& $reation of -alue
0. A (a1or reason that decision (a)in' is often not such a rational process is that there are
a
.
too (any sta'es in decision (a)in' for (ost people to cope with.
b
.
natural biases a'ainst dia'nosin' proble(s.
c few bounds to hu(an decision2(a)in' capability.
.
d
.
li(its to how (uch infor(ation people can process and recall.
ANS: D PTS: 1 DIF: D !F: p. 1"3
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
". The purpose of a heuristic in decision (a)in' is to
a
.
si(plify the decision2(a)in' process.
b
.
find a rapid way to e4plore (ore alternati+es.
c
.
obtain input fro( a lar'e nu(ber of people.
d
.
e+aluate whether a decision was effecti+e.
ANS: A PTS: 1 DIF: , !F: p. 1"5
NAT: AA$S%: !eflecti+e Thin)in'& Indi+idual Dyna(ics
6. To say that a decision is based on political considerations (eans that it is not based on
a
.
alliances with others.
b
.
thou'hts of ac7uirin' power.
c
.
both sides of an issue.
d
.
the ob1ecti+e (erits of the situation.
ANS: D PTS: 1 DIF: D !F: p. 160
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
/. (otional intelli'ence 'enerally deals with the ability to
a
.
connect with people and understand their e(otions.
b
.
stay in control while ta)in' tests.
c
.
)nowin' how to throw a tantru( for effect.
d
.
usin' co((on sense to earn a li+in'.
ANS: A PTS: 1 DIF: !F: p. 16#
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
3. %illy is usually hea+ily influenced by the first infor(ation he recei+es on a topic. 8e is under the
influence of a process called
a
.
anchorin'.
b
.
rationali*in'.
c
.
trial and error.
d
.
e(otional intelli'ence.
ANS: A PTS: 1 DIF: !F: p. 160
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
5. A reco((endation for beco(in' (ore adept at (a)in' decisions under crisis conditions is
a
.
to establish a special co((ittee.
b
.
to a+oid ta)in' ris)s.
c
.
to anticipate crises
d
.
to a+oid spea)in' to the (edia.
ANS: $ PTS: 1 DIF: , !F: p. 16"
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
19. :ulio was 'oin' to reco((end a new billin' syste( for the hospital where he wor)s. 8owe+er& he
does not want to upset the e4ecuti+e who installed the syste(& so he does not (a)e the
reco((endation. :ulio has fallen into the
a
.
o+erconfidence trap.
b
.
status 7uo trap.
c
.
anchorin' trap.
d
.
creati+ity rut.
ANS: % PTS: 1 DIF: , !F: p. 160
NAT: AA$S%: !eflecti+e Thin)in'& Indi+idual Dyna(ics
11. A fre7uent decision2(a)in' error durin' a crisis is to
a
.
(ethodically search for alternati+es
b
.
beco(e less rational and (ore e(otional.
c
.
beco(e (ore rational and less e(otional.
d
.
welco(e differences of opinion.
ANS: % PTS: 1 DIF: !F: p. 13"
NAT: AA$S%: $o((unication& ;eadership Principles
1#. The purpose of +isuali*ation for (a)in' better decisions under crisis is to
a
.
rehearse in your (ind how you will react to the crisis.
b
.
thin) of all the ti(es you ha+e failed in the past.
c
.
en'a'e in a pleasant fantasy to reduce your stress.
d
.
i(a'ine how an'ry your boss will be if your fail.
ANS: A PTS: 1 DIF: , !F: p. 16"
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
1.. ,ar)etin' e4ecuti+e :as(ine li)es to (a)e a decision 7uic)ly as soon as enou'h infor(ation is
a+ailable& and she also li)es to 'enerate lots of options. 8er decision2(a)in' style is therefore
characteri*ed as&
a
.
decisi+e.
b
.
fle4ible.
c
.
hierarchic.
d
.
inte'rati+e.
ANS: % PTS: 1 DIF: , !F: p. 16/
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
10. Infor(ation technolo'y e4ecuti+e Darryl li)es to pore o+er a lot of infor(ation before (a)in' a
decision& and he also li)es to co((it to one course of action. 8is decision2(a)in' style is therefore
characteri*ed as
a
.
decisi+e.
b
.
fle4ible.
c
.
hierarchic.
d
.
inte'rati+e.
ANS: $ PTS: 1 DIF: , !F: p. 16/
NAT: AA$S%: !eflecti+e Thin)in'& Indi+idual Dyna(ics
1". A (a1or ad+anta'e of 'roup decision (a)in' is that
a
.
it (a)es efficient use of ti(e.
b
.
it results in low ris) ta)in'.
c
.
(e(bers are li)ely to be co((itted to a decision.
d
.
it eli(inates passin' the bla(e onto others.
ANS: $ PTS: 1 DIF: , !F: p. 163
NAT: AA$S%: !eflecti+e Thin)in'& <roup Dyna(ics
16. A distin'uishin' feature of the no(inal 'roup techni7ue is that
a
.
criticis( and discussion are disallowed.
b
.
a s(all 'roup of people is asse(bled.
c
.
alternati+es are rated and the best2rated one is chosen.
d
.
the 'roup is placed on a ti'ht ti(e li(it.
ANS: $ PTS: 1 DIF: D !F: p. 1/#
NAT: AA$S%: !eflecti+e Thin)in'& <roup Dyna(ics
1/. The condition of 'roupthin) is li)ely to occur when 'roup (e(bers
a
.
stri+e too hard for consensus.
b
.
thin) of the(sel+es as inferior.
c
.
use the step2by2step approach to decision (a)in'.
d
.
ha+e different perspecti+es.
ANS: A PTS: 1 DIF: D !F: p. 165
NAT: AA$S%: !eflecti+e Thin)in'& <roup Dyna(ics
13. $reati+ity can be defined si(ply as the process of
a
.
doin' two thin's at once.
b
.
de+elopin' no+el ideas that can be put into action.
c
.
pro+idin' feedbac).
d
.
i(ple(entin' a plan
ANS: % PTS: 1 DIF: !F: p. 1/.
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
15. A )ey aspect of lateral thin)in' is that it
a
.
focuses on few answers to a proble(.
b
.
is needed (ore in (anufacturin' than in (ar)etin'.
c
.
decreases the nu(ber of wasted alternati+e solutions.
d
.
leads to (any different solutions to a proble(.
ANS: D PTS: 1 DIF: !F: p. 1/0
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
#9. The type of (oti+ation necessary for creati+ity is a
a
.
desire to earn lar'e financial bonuses.
b
.
passion for the tas).
c
.
dri+e to win o+er others in co(petition.
d
.
state of inner peace and har(ony.
ANS: % PTS: 1 DIF: D !F: p. 1/"
NAT: AA$S%: !eflecti+e Thin)in'& ,oti+ation $oncepts
#1. A research study showed that with respect to wor) creati+ity& encoura'e(ent fro( fa(ily and friends
a
.
had *ero i(pact.
b
.
resulted in interference.
c
.
(ade a contribution.
d
.
(ade a contribution pro+idin' that the super+isor 'a+e little encoura'e(ent.
ANS: $ PTS: 1 DIF: , !F: p. 1/"
NAT: AA$S%: !eflecti+e Thin)in'& ,oti+ation $oncepts
##. =hich one of the followin' is the (ost reco((ended approach for a (ana'er to enhance creati+ity
within the 'roup>
a
.
Staff the 'roup with people of 7uite si(ilar intellectual bac)'rounds.
b
.
?eep ris) ta)in' to a (ini(u(.
c
.
<i+e support in ter(s of financial rewards and reco'nition.
d
.
Pre+ent lethar'y by (a)in' (any discoura'in' co((ents.
ANS: $ PTS: 1 DIF: , !F: p. 1//
NAT: AA$S%: Analytic& Strate'y
#.. The flow e4perience refers to
a
.
the ulti(ate in+ol+e(ent in wor)
b
.
a condition of hei'htened focus& producti+ity& and happiness.
c
.
both a @ b
d
.
a desi'n that allows for the flow of ideas& such as co((on (eetin' areas.
ANS: $ PTS: 1 DIF: D !F: p. 1/"
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
#0. ,ana'ers can establish a creati+e at(osphere by
a
.
allottin' ti(e and (oney carefully.
b
.
'i+in' e(ployees the freedo( to choose how to acco(plish a 'oal.
c
.
'i+in' e(ployees the ri'ht type and a(ount of challen'e.
d
.
all of the choices
ANS: D PTS: 1 DIF: D !F: pp. 1/621//
NAT: AA$S%: Analytic& ;eadership Principles
#". Self2help techni7ues for i(pro+in' creati+ity 'enerally ai( toward
a
.
'ettin' people in+ol+ed in new hobbies.
b
.
encoura'in' 'roup proble( sol+in'.
c
.
i(pro+in' one's sense of hu(or.
d
.
i(pro+in' the fle4ibility of one's thin)in'.
ANS: D PTS: 1 DIF: !F: p. 13#
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
TRUE/FALSE
1. Aou )now you ha+e a problem when the conditions that e4ist with respect to a particular situation are
(uch different than what you want.
ANS: T PTS: 1 DIF: , !F: p. 1"#
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
#. A well2planned and hi'hly structured or'ani*ation reduces the nu(ber of nonpro'ra((ed
decisions by for(ulatin' policies.
ANS: T PTS: 1 DIF: , !F: p. 1"#
NAT: AA$S%: !eflecti+e Thin)in'& Bperations ,ana'e(ent
.. =alt Disney na(in' his cartoon (ouse C,ic)eyC instead of C,orti(erC pro+ed to be a satisficing
decision.
ANS: F PTS: 1 DIF: D !F: p. 1"5
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
0. A (a1or techni7ue for i(pro+in' decision (a)in' is to di' for alternati+es rather than accept the first
possibility that co(es to (ind.
ANS: T PTS: 1 DIF: , !F: p. 1"6
NAT: AA$S%: Analytic& Strate'y
". An e4a(ple of a heuristic would be not to spend (ore than .9D of your net inco(e on debt other than
a ho(e (ort'a'e.
ANS: T PTS: 1 DIF: , !F: p. 1"5
NAT: AA$S%: Analytic& Bperations ,ana'e(ent
6. The effecti+e decision (a)er atte(pts to (ini(i*e hunches and intuition in the process of (a)in' a
decision.
ANS: F PTS: 1 DIF: D !F: pp. 1"52169
NAT: AA$S%: Analytic& ;eadership Principles
/. Perfectionism usually enhances decision (a)in' because the decision (a)er )nows e4actly what he or
she wants.
ANS: F PTS: 1 DIF: , !F: p. 161
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
3. A proble( (any pessi(istic decision (a)ers face is that they )eep searchin' for 'ood alternati+e
solutions to proble(s.
ANS: F PTS: 1 DIF: D !F: p. 161
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
5. $o'niti+e Eor traditionalF intelli'ence carries a profound influence in decision2(a)in' effecti+eness.
ANS: T PTS: 1 DIF: !F: p. 161
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
19. The ability to supply (ana'ers with hi'h27uality infor(ation for(s the (a1or 1ustification for
infor(ation syste(s.
ANS: T PTS: 1 DIF: , !F: p. 16.
NAT: AA$S%: Technolo'y& Infor(ation Technolo'y
11. -isuali*ation to i(pro+e decision (a)in' under crisis& centers around rehearsin' in your (ind the
worst possibilities that could occur.
ANS: T PTS: 1 DIF: , !F: p. 16"
NAT: AA$S%: !eflecti+e Thin)in'& ;eadership Principles
1#. Accordin' to the decision2(a)in' styles of Decision Dyna(ics& the two di(ensions of decision
(a)in' are how infor(ation is used& and how (any options are e4plored.
ANS: T PTS: 1 DIF: D !F: p. 166
NAT: AA$S%: Analytic& Strate'y
1.. Aou use an inte'rati+e decision2(a)in' style when you e4plore one option& and use less infor(ation.
ANS: F PTS: 1 DIF: , !F: p. 16/
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
10. <roupthin) ta)es place where there is so (uch consensus that (e(bers lose their ability to e+aluate
their ideas critically.
ANS: T PTS: 1 DIF: , !F: p. 165
NAT: AA$S%: Analytic& <roup Dyna(ics
1". The no(inal 'roup techni7ue pro+ides infor(ation about how people react to decision alternati+es.
ANS: T PTS: 1 DIF: !F: p. 1/9
NAT: AA$S%: Analytic& <roup Dyna(ics
16. $reati+e thin)ers 'enerally stic) closely to followin' the rules.
ANS: F PTS: 1 DIF: D !F: p. 1/0
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
1/. ;ateral thin)in' would be re7uired to unco+er new (ar)ets for the products or ser+ices of one's fir(.
ANS: T PTS: 1 DIF: D !F: p. 1/0
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
13. A 'enerally effecti+e practice for fosterin' creati+ity is to punish people for atte(ptin' creati+e
solutions that fail to sol+e the proble(.
ANS: F PTS: 1 DIF: , !F: p. 1/"
NAT: AA$S%: !eflecti+e Thin)in'& 8!,
15. ,any people are poor decision (a)ers because they procrastinate& or delay ta)in' action without a
+alid reason.
ANS: T PTS: 1 DIF: , !F: p. 166
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
#9. $onflict and tension that put people on ed'e can also foster creati+ity.
ANS: T PTS: 1 DIF: , !F: p. 1/"
NAT: AA$S%: Analytic& <roup Dyna(ics
#1. !is) ta)in' does not enhance creati+ity.
ANS: F PTS: 1 DIF: , !F: p. 1/6
NAT: AA$S%: Analytic& Indi+idual Dyna(ics
##. The e4perience if Ideo& the desi'n fir(& is that preparin' for brainstor(in' (eetin's inhibits
spontaneity so (uch that preparation is not worth the effort.
ANS: F PTS: 1 DIF: D !F: p. 139
NAT: AA$S%: !eflecti+e Thin)in'& <roup Dyna(ics
#.. A powerful approach to de+elopin' an inno+ati+e or'ani*ation is to syste(atically
'ather ideas fro( people inside and outside the fir(.
ANS: T PTS: 1 DIF: !F: p. 131
NAT: AA$S%: Analytic& Strate'y
#0. A well2accepted (ethod of sti(ulatin' creati+ity is to en'a'e in physical e4ercise.
ANS: T PTS: 1 DIF: !F: p. 130
NAT: AA$S%: Analytic& Strate'y
#". Playin' the roles of artist& 1ud'e& and lawyer is a (ethod for a tea( leader to encoura'e creati+e
proble( sol+in' a(on' tea( (e(bers.
ANS: F PTS: 1 DIF: D !F: p. 130
NAT: AA$S%: !eflecti+e Thin)in'& Indi+idual Dyna(ics
ESSAY
1. =hen Andrew Schu(an bou'ht 8a((ondGs $andies& he learned than an asse(bly2line wor)er had
drea(ed up the desi'n of the co(panyGs candy. So Schu(an decided to offer a H"9
bonus to asse(bly2line wor)ers who ca(e up with successful ideas to cut (anufacturin' costs.
1. =hat does this story illustrate about findin' new ideas>
#. 8ow does the candy co(pany encoura'e creati+ity>
ANS:
Identify IdanIddd
1. The story illustrates that co(panies should encoura'e su''estions and create a (echanis( for
collectin' ideas.
#. The candy co(pany offers rewards to e(ployees for useful ideas.he
Dia'nose the
Proble(
PTS: 1 DIF: D !F: p. 1"1
NAT: AA$S%: !eflecti+e Thin)in'& Strate'y
#. Describe the role of intuition in decision (a)in'.
ANS:
ffecti+e decision (a)ers rely on their hunches and intuition. Intuition is a way of arri+in' at a
conclusion without usin' the step2by2step lo'ical process. Intuition can be based (ostly on e4perience
or (ostly on feelin'. The fact that e4perience contributes to intuition (eans that decision (a)ers can
beco(e (ore intuiti+e by sol+in' (any difficult proble(s because accu(ulated facts are an asset to
intuition.
PTS: 1 DIF: , !F: p. 169
NAT: AA$S%: !eflecti+e Thin)in'& Indi+idual Dyna(ics
.. Describe what actions an or'ani*ation can ta)e to encoura'e e(ployees to thin) (ore creati+ely.
ANS:
An or'ani*ation can pro+ide challen'e& freedo(& resources& rewards and reco'nition for inno+ati+e
ideas and allocate ti(e for inno+ati+e thin)in'& build on the ideas of others& and ha+e 'reater di+ersity
in 'roups.
PTS: 1 DIF: , !F: pp. 1/621/3 NAT: AA$S%: Analytic& Strate'y
0. Describe what you can do in the ne4t se+eral years to increase your creati+ity.
ANS:
1 ?eep trac) of your ori'inal ideas by (aintainin' an idea noteboo) or
co(puter fileI #. Stay current in your field and be curious about your en+iron(entI ..I(pro+e your
sense of hu(orI 0. Adopt a ris)2ta)in' attitude when you try to find creati+e solutionsI
". Identify the ti(es when you are (ost creati+eI and 6. =hen faced with a creati+ity bloc)& step bac)
fro( the proble(.
PTS: 1 DIF: D !F: pp. 13.2130
NAT: AA$S%: Analytic& Indi+idual Dyna(ics