Liberty University BUSI 240 Quiz 4

 Question 1
2 out of 2 points
Which of the following is true at the highest level of employee involvement?

Selected Answer: The entire decision making process is handed over to employees.
Response At the highest level of employee involvement process, the entire decision-
Feedback: making process is handed over to employees, where the original decision
maker serves only as a facilitator to guide the team's decision process and
keep everyone on track.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-05 Describe the benefits of employee involvement
and identify four contingencies that affect the optimal level of employee
involvement.
Level of Difficulty: 2 Medium
Topic: Employee Involvement in Decision Making
 Question 2
2 out of 2 points
Which of the following is one of the assumptions of the rational choice paradigm?
Selected Answer: Decision makers have well-articulated goals.
Response The rational choice paradigm assumes that organizational goals are clear and
Feedback: agreed-on. Unfortunately, organizational goals are often ambiguous or in
conflict with each other.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-02 Explain why people differ from the rational choice
paradigm when identifying problems/opportunities; evaluating/choosing
alternatives; and evaluating decision outcomes.
Level of Difficulty: 1 Easy
Topic: Problems with Goals
 Question 3
2 out of 2 points
Which of the following is an observation from organizational behavior that contradicts the
rational choice paradigm assumptions?
Selected Answer: Decision makers have limited information processing abilities.
Response The rational choice paradigm assumes that decision makers can calculate all
Feedback: alternatives and their outcomes. However, the observations from
organizational behavior found that decision makers have limited information
processing abilities.
Refer: Exhibit 7.2
AACSB: Analytic
Blooms: Understand
Topic: Problems with Information Processing
 Question 4
2 out of 2 points
The most accurate view of intuition is that it is:

Selected the ability to know when an opportunity exists and select the best course of
Answer: action without conscious reasoning.
Response Intuition refers to the ability to know when a problem or opportunity exists
Feedback: and to select the best course of action without conscious reasoning.
AACSB: Analytic
Blooms: Understand
Learning Objective: 07-03 Discuss the roles of emotions and intuition in
decision making.
Topic: Intuition and Making Choices
 Question 5
2 out of 2 points
Establishing a preset level at which the decision is abandoned or reevaluated is recommended

mainly to:
Selected Answer: minimize escalation of commitment.
Response One of the strategies to minimize escalation of commitment is to publicly
Feedback: establish a preset level at which the decision is abandoned or reevaluated. This
is similar to a stop-loss order in the stock market, whereby the stock is sold if
it falls below a certain price.
AACSB: Analytic
Blooms: Understand
decision making.
Topic: Evaluating Decision Outcomes More Effectively
 Question 6
2 out of 2 points
Intuition relies on programmed decision routines that speed up our response to pattern
matches or mismatches. These programmed decision routines are referred to as:
Selected Answer: action scripts.
Response Intuition relies on action scripts—programmed decision routines that speed up
Feedback: our responses to pattern matches or mismatches. Action scripts effectively
shorten the decision-making process by jumping from problem identification
to selection of a solution. In other words, action scripting is a form of
programmed decision making. Action scripts are generic, so we need to
consciously adapt them to the specific situation.
AACSB: Analytic
Blooms: Understand
decision making.
Topic: Intuition and Making Choices
 Question 7
2 out of 2 points
In the creative process, which of the following refers to the experience of suddenly becoming
aware of a unique idea?
Selected Answer: Illumination
Response Illumination (also called insight), the third stage of creativity, refers to the
Feedback: experience of suddenly becoming aware of a unique idea.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-04 Describe employee characteristics; workplace
conditions; and specific activities that support creativity.
Topic: The Creative Process
 Question 8
2 out of 2 points
Which of the following is NOT a reason people engage in satisficing rather than
maximization?
Selected Answer: It allows them to choose the alternative with the highest payoff.
Response Satisficing is selecting an alternative that is satisfactory or "good enough"
Feedback: rather than the alternative with the highest value (maximization).
AACSB: Analytic
Blooms: Understand
Topic: Problems with Maximization
 Question 9
2 out of 2 points
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?
Selected Answer: Incubation
Response Here, the organization is promoting divergent thinking. Incubation assists
Feedback: the process of divergent thinking.
AACSB: Analytic
Blooms: Understand
 Question 10
0 out of 2 points
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?
Selected Answer: Experience and persistence
Response Creative people have above-average intelligence to synthesize information,
Feedback: analyze ideas, and apply their ideas. Creative people also possess a cluster of
personality traits and values that support an independent imagination: high
openness to experience, moderately low need for affiliation, and strong values
around self-direction and stimulation.
AACSB: Analytic
Blooms: Apply
Level of Difficulty: 3 Hard
Topic: Characteristics of Creative People
 Question 11
2 out of 2 points
Which of these is the final step in the rational choice decision making process?
Selected Answer: Evaluating decision outcomes
Response The final step in rational choice decision making is evaluating the decision
Feedback: outcomes. It includes evaluating whether the gap has narrowed between "what
is" and "what ought to be." Ideally, this information should come from
systematic benchmarks so that relevant feedback is objective and easily
observed.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-01 Describe the rational choice paradigm of decision
making.
Topic: Rational Choice Paradigm of Decision Making
 Question 12
2 out of 2 points
What effect do mental models have on the decision-making process?

Selected They perpetuate assumptions that make it difficult to see new
Answer: opportunities.
Response Mental models are visual or relational images of the external world; they fill in
Feedback: information that we don't immediately see which helps us understand and
navigate in our surrounding environment. Many mental images are also
prototypes—they represent models of how things should be. These mental
models also blind us from seeing unique problems or opportunities because
they produce a negative evaluation of things that are dissimilar to the mental
model.
AACSB: Analytic
Blooms: Understand
Topic: Problems with Problem Identification
 Question 13
2 out of 2 points
_____ is a conscious process of making choices among one or more alternatives with the
intention of moving toward some desired state of affairs.
Selected Answer: Decision making
Response Decision making is a conscious process of making choices among one or
Feedback: more alternatives with the intention of moving toward some desired state of
affairs.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-01 Describe the rational choice paradigm of
decision making.
 Question 14
2 out of 2 points
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?
Selected Answer: The executive is defining the problem in terms of a solution.
Response Decision makers tend to define problems as veiled solutions. Decision makers
Feedback: engage in solution-focused problem identification because it provides
comforting closure to the otherwise ambiguous and uncertain nature of
problems.
AACSB: Analytic
Blooms: Apply
Topic: Problems with Problem Identification
 Question 15
0 out of 2 points
The availability heuristic refers to the tendency:
Selected to evaluate probabilities of events or objects by how closely it resembles
Answer: another event.
Response The availability heuristic is the tendency to estimate the probability of
Feedback: something occurring by how easily we can recall those events.
AACSB: Analytic
Blooms: Remember
Topic: Problems with Maximization
 Question 16
2 out of 2 points
Which of the following refers to calculating the conventionally accepted "right answer" to a
logical problem?
Selected Answer: Convergent thinking
Response Incubation assists divergent thinking—reframing the problem in a unique way
Feedback: and generating different approaches to the issue. This contrasts with
convergent thinking—calculating the conventionally accepted "right answer"
to a logical problem.
AACSB: Analytic
Blooms: Remember
 Question 17
2 out of 2 points
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:
Selected Answer: Self-justification
Response Decision makers typically want to appear rational and effective. One such
Feedback: impression-management tactic is to demonstrate the importance of a decision
by continuing to invest in it, whereas pulling the plug symbolizes the project's
failure and the decision maker's incompetence. This self-justification effect is
particularly evident when decision makers are personally identified with the
project, have staked their reputations to some extent on the project's success,
and have low self-esteem.
AACSB: Analytic
Blooms: Apply
decision making.
Topic: Evaluating Decision Outcomes
 Question 18
2 out of 2 points
The rational choice paradigm selects the choice with the highest utility through the calculation
of:
Selected Answer: subjective expected utility.
Response The rational choice paradigm selects the choice with the highest utility
Feedback: through the calculation of subjective expected utility.
AACSB: Analytic
Blooms: Remember
decision making.
 Question 19
2 out of 2 points
The purely rational model of decision making is rarely practiced in reality because it:
Selected Answer: assumes that people are perfectly rational in their decision making.
Response The rational choice paradigm seems so logical, yet it is impossible to apply
Feedback: in reality, because people are not and cannot be perfectly rational.
AACSB: Analytic
Blooms: Remember
decision making.
Topic: Problems with the Rational Choice Paradigm
 Question 20
2 out of 2 points
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:
Selected Answer: confirmation bias.
Response The Director is engaging in confirmation bias. Confirmation bias is the
Feedback: "unwitting selectivity in the acquisition and use of evidence." When evaluating
decisions, people with confirmation bias ignore or downplay the negative
features of the selected alternative and overemphasize its positive features.
AACSB: Analytic
Blooms: Apply
decision making.
Topic: Making Choices More Effectively
 Question 21
2 out of 2 points
Prospect theory and closing costs are two reasons why people:
Selected Answer: engage in escalation of commitment.
Response Four of the main influences that lead to escalation of commitment include
Feedback: self-justification, prospect theory effect, self enhancement, and sunk costs.
AACSB: Analytic
Blooms: Remember
decision making.
Topic: Escalation of Commitment
 Question 22
2 out of 2 points
The benefits of employee involvement increase with:

Selected Answer: the novelty and complexity of the problem or opportunity.
Response Programmed decisions are less likely to need employee involvement because
Feedback: the solutions are already worked out from past incidents. In other words, the
benefits of employee involvement increase with the novelty and complexity of
the problem or opportunity.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-05 Describe the benefits of employee involvement and
identify four contingencies that affect the optimal level of employee
involvement.
Topic: Contingencies of Employee Involvement
 Question 23
2 out of 2 points
Escalation of commitment can be minimized by ensuring that:
Selected those who make the decision are different from those who implement and
Answer: evaluate it.
Response One of the most effective ways to minimize escalation of commitment and
Feedback: confirmation bias is to ensure that the people who made the original decision
are not the same people who later evaluate that decision.
AACSB: Analytic
Blooms: Understand
decision making.
Topic: Evaluating Decision Outcomes More Effectively
 Question 24
0 out of 2 points
A nonprogrammed decision is applicable in any:

Selected Answer: decision that does not relate directly to the employee's job description.
Response Non-programmed decisions require all steps in the decision model because
Feedback: the problems are new, complex, or ill-defined. Such decisions do not follow
standard operating procedures.
AACSB: Analytic
Blooms: Remember
Learning Objective: 07-01 Describe the rational choice paradigm of decision
making.
Topic: Rational Choice Decision-Making Process
 Question 25
2 out of 2 points
Which of the following involves listing different dimensions of a system and the elements of
each dimension and then looking at each combination?
Selected Answer: Morphological analysis
Response An associative play activity, called morphological analysis, involves listing
Feedback: different dimensions of a system and the elements of each dimension and then
looking at each combination. This encourages people to carefully examine
combinations that initially seem nonsensical.
AACSB: Analytic
Blooms: Remember
Topic: Activities that Encourage Creativity

Liberty University BUSI 240 Quiz 4

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 Question 1

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

Refer: Exhibit 7.2

The most accurate view of intuition is that it is:

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

Selene and Rita

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

The benefits of employee involvement increase with:

A nonprogrammed decision is applicable in any:

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