MGMT 303 FINAL EXAM PRACTICE TEST 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Non-rational model of decision making. Answer: assume that
decision making is nearly always certain and risky, making it difficult
for managers to make optimal decisions
Two non rational models:
1. Satisficing: managers seek alternatives until they find one that is
satisfactory, NOT optimal
2. Intuition: making a choice without the use of conscious thought or
logical inference. Stems from both:
-expertise: a persons explicit and tacit knowledge about a person, a
situation, an object, or a decision opportunity - is known as holistic
hunch
-automated: the involuntary emotional response to those same
matters
◉ Bounded rationality. Answer: suggests that the ability of decision
makers to be rational is limited by numerous constraints such as
complexity, time, money, and their cognitive capacity, values, skills,
habits, and unconscious reflexes
,◉ Stages in rational decision making styles. Answer: 1. identify the
problem or opportunity
2. think up alternative solutions
3. evaluate alternatives and select a solution
4. implement & evaluate the solution chosen
◉ What are the 4 decision making styles?. Answer: 1. directive:
people are efficient logical, practical, and systematic in their
approach to solving problems
-action oriented, decisive, like to focus on facts
2. analytical: considers more information and alternatives
3. conceptual: takes a broad perspective to problem solving
-likes to consider many options and future opportunities
4. behavioral: supportive, receptive to suggestions, show warmth
-prefers VERBAL to written
◉ Organizational (corporate) culture. Answer: the set of shared,
taken-for-granted implicit assumptions that a group holds and that
determines how it perceives, thinks about, and reacts to its various
environments
,◉ organizational culture - what are the norms, values, assumptions?.
Answer: Norms: organized and shared ideas regarding what
members should do and feel, how this behavior should be regulated,
and what sanctions should be applied when behavior does not
coincide with social expectations
Values: ideas & beliefs regarded as important to a person or group
-espoused values: explicitly stated values and norms preferred by an
organization
-enacted values: represent the values and norms actually exhibited
in the organization
Basic assumptions: represent the core values of the organizations
culture
-those taken for granted and highly resistant to change
◉ What is the competing values framework?. Answer: A framework
for categorizing organizational culture that shows how its core
values affect its culture
◉ Types of cultures (competing values framework). Answer: clan
culture:
-internal focused
, -values FLEXIBILITY rather than stability
-encourages collaboration among employees
adhocracy culture:
-attempts to create innovative products by being adaptable, creative,
and quick to respond to changes in the marketplace
market culture:
-focused on the external environment
-driven by competition and a strong desire to deliver results
hierarchy culture:
-apt to have a formalized structured work environment aimed at
achieving effectiveness through a variety of control mechanisms
◉ what are the 3 levels of organizational culture?. Answer: level 1:
observable artifacts: physical manifestations such as manner of
dress, awards, myths, and stories about the company
-visible behavior exhibited by managers and employees
level 2: espoused values
-espoused values: explicitly stated values and norms preferred by an
organization
QUESTIONS WITH ANSWERS GRADED A+
◉ Non-rational model of decision making. Answer: assume that
decision making is nearly always certain and risky, making it difficult
for managers to make optimal decisions
Two non rational models:
1. Satisficing: managers seek alternatives until they find one that is
satisfactory, NOT optimal
2. Intuition: making a choice without the use of conscious thought or
logical inference. Stems from both:
-expertise: a persons explicit and tacit knowledge about a person, a
situation, an object, or a decision opportunity - is known as holistic
hunch
-automated: the involuntary emotional response to those same
matters
◉ Bounded rationality. Answer: suggests that the ability of decision
makers to be rational is limited by numerous constraints such as
complexity, time, money, and their cognitive capacity, values, skills,
habits, and unconscious reflexes
,◉ Stages in rational decision making styles. Answer: 1. identify the
problem or opportunity
2. think up alternative solutions
3. evaluate alternatives and select a solution
4. implement & evaluate the solution chosen
◉ What are the 4 decision making styles?. Answer: 1. directive:
people are efficient logical, practical, and systematic in their
approach to solving problems
-action oriented, decisive, like to focus on facts
2. analytical: considers more information and alternatives
3. conceptual: takes a broad perspective to problem solving
-likes to consider many options and future opportunities
4. behavioral: supportive, receptive to suggestions, show warmth
-prefers VERBAL to written
◉ Organizational (corporate) culture. Answer: the set of shared,
taken-for-granted implicit assumptions that a group holds and that
determines how it perceives, thinks about, and reacts to its various
environments
,◉ organizational culture - what are the norms, values, assumptions?.
Answer: Norms: organized and shared ideas regarding what
members should do and feel, how this behavior should be regulated,
and what sanctions should be applied when behavior does not
coincide with social expectations
Values: ideas & beliefs regarded as important to a person or group
-espoused values: explicitly stated values and norms preferred by an
organization
-enacted values: represent the values and norms actually exhibited
in the organization
Basic assumptions: represent the core values of the organizations
culture
-those taken for granted and highly resistant to change
◉ What is the competing values framework?. Answer: A framework
for categorizing organizational culture that shows how its core
values affect its culture
◉ Types of cultures (competing values framework). Answer: clan
culture:
-internal focused
, -values FLEXIBILITY rather than stability
-encourages collaboration among employees
adhocracy culture:
-attempts to create innovative products by being adaptable, creative,
and quick to respond to changes in the marketplace
market culture:
-focused on the external environment
-driven by competition and a strong desire to deliver results
hierarchy culture:
-apt to have a formalized structured work environment aimed at
achieving effectiveness through a variety of control mechanisms
◉ what are the 3 levels of organizational culture?. Answer: level 1:
observable artifacts: physical manifestations such as manner of
dress, awards, myths, and stories about the company
-visible behavior exhibited by managers and employees
level 2: espoused values
-espoused values: explicitly stated values and norms preferred by an
organization
