Managerial Skill

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CHAPTER 6

MANAGERIAL DECISION MAKING AND INFORMATION TECHNOLOGY

True/False Questions

*1.Because everybody makes decisions everyday, decision making is easy.

2. Decision making is the process of identifying problems and opportunities and then resolving them.

*3. The two categories of decision processes rely on either real or imagined problems.

4.A determination made from available alternatives is called a decision.

5.Johnne Morria works for a backpack manufacturer. He has been instructed to decide what primary need women backpackers have that men users do not have. He will be making a nonprogrammed decision.

6.Decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions are called programmed decisions.

7. Under conditions of risk, enough information is available to allow the probability of a successful outcome for each alternative to be estimated.

*8.Uncertainty refers to a situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcome is unavailable.

9.Fortunately, most decisions are not characterized by ambiguity.

10.By far the most difficult decision situation is uncertainty.

11.The classical decision-making model assumes that the decision maker is rational, and makes the optimal decision each time.

*12.The use of computerized information systems and databases has decreased the effectiveness of the classical approach of decision making.

13.Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

14.Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.

15.The administrative model of decision making relies on the same assumptions as those of the classical model.

16.The process of analyzing underlying causal factors associated with the decision situation is called diagnosis.

*17.The evaluation stage of the decisions process involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

18.Feedback provides decision makers with information that can precipitate a new decision cycle.

19.The directive style is used by people who prefer simple, clear-cut solutions to problems.

*20.The bureaucratic style is often adopted by managers who like to consider complex solutions based on as much data as they can gather.

*21. The three major components of the Vroom-Jago model are leader participation styles, follower participation styles, and a series of decision rules.

22.By making mistakes, people go through the process of decision learning, which means that they gain valuable experience and knowledge to perform more effectively in the future.

*23.A devil's advocate acts like a jury foreman and encourages groups to reach a quick decision.

24.Facts that are raw, unsummarized, and unanalyzed are called data.

25.Data that are converted into meaningful and useful context for the receiver are called information.

26.Office automation systems are systems that combine modern hardware and software to handle the tasks of publishing and distributing information.

27.The transaction processing system (TPS) is software developed for banking organizations to enable them to process the great volume of checks and debit transactions in today's business world.

28.MISs typically support strategic decision making needs of mid-level and top management.

29.The Internet is a collection of central servers for accessing information on-line.

30.The extranet is a network that links the computer systems of buyers and sellers to allow the transmission of structured...
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