PRM TEST REVIEW QUESTIONS & ANSWERS
What is a potential disadvantage of group decision making? - answers - individual
dominance
What is the organizational decision process model in which major solutions arise
through a series of smaller decisions? - answers - incremental mode
Robinson products. Incorporated is faced with unprecedented uncertainty in its
marketplace, due to changing consumer tastes. Kaitlyn sims' sales team is struggling to
decide on needed changes in the firm's long-term marketing strategy. To spark
constructive conflict and develop new ideas among her team members, kaitlyn -
answers - appoints a team member to take a devil's advocate position in evaluating
ideas
How do managers under time pressure best make decisions that are both timely and
high-quality? - answers - they focus on real-time information and monitor daily
operating measures on work in process.
___________ should be the second phase in an ideal six phase decision-making
process - answers - generating alternative solutions
Which of the following terms refers to the condition that causes new goals to replace the
original ones? - answers - goal displacement
_____________ refers to how the phrasing of a problem or decision alternatives can be
more influential than objective facts - answers - framing effect
A structured debate comparing two conflicting courses of action is referred to as -
answers - dialectic
_________ refers to people's belief that they can influence events even when they have
no power to determine what will happen - answers - illusion of control
Mclaughlin and ferris is an accounting firm that has a stiff, bureaucratic structure. The
company has a promotion scheme where people who have finished a certain number of
years in service get a pay hike and a promotion. For the human resource manager at
mclaughlin and ferris, this decision highlights which of the following types of decisions? -
answers - programmed
_______ conflict ocurrs when a manager must decide between several attractive
options or when there are no attractive options - answers - psychological
Rafael is the art director of bliss sleepwear, a company that designs and manufactures
high fashion pajamas, loungewear, and lingerie. He meets with his creative team to
,brainstorm ideas for their fall - winter catalogue. How could rafael best encourage the
most creative and exciting ideas from his team? - answers - by establishing an open
atmosphere in which team members feel free to express their craziest ideas because
they know they will not be judged
What is the role of a devil's advocate in constructive conflict? - answers - to criticize
ideas and point out problems
In the decision-making process, ___________ refers to choosing the first option that is
minimally acceptable or adequate - answers - satisficing
________________ are developed as alternative course of action that can be
implemented based on how the futue unfolds - answers - contingency plans
Giselle wants to apply the differentiation strategy to build competitive advantage in her
the plumbing company. Of the following strategies, which one best exemplifies the
differentiation strategy? - answers - offering a free hour of service to first-time
customers
A ____________ illustrates the four key drivers of a firm's long-term success and shows
how goals in each area are linked to others. - answers - strategy map
"within our industry, we have world-class talent, great name recognition, and a sterling
reputation. Over the next five years, i want us to upgrade our manufacturing plants and
further develop our proprietary designs and products. As we accumulate
these________________, our firm's performance will be enhanced," said suzette
coleman, chief operating officer. - answers - resources
______________ provides individuals and work units with a clear map to follow map to
follow in future activities - answers - planning
Which phase comes immediately before making a choice in the decision-making
process? - answers - evaluate alternatives
Hesitation to invest in promising research and development that will not pay off until far
into the future is an example of - answers - discounting the future
A potential negative outcome of group decision making is when members choose not to
disagree or raise objections because they do not want to break up a positive team spirit.
This is referred to as - answers - groupthink
____________ refers to a less-than perfect form of rationality in which decision makers
cannot be perfectly rational because decisions are complex and complete information is
unavailable or cannot be fully processed - answers - bounded rationality
, _________ is seen when a manager weighs short-term costs and benefits more heavily
than longer-term costs and benefits - answers - discounting the future
Two years after launching her firm's new strategy, lara reflected that it had not had the
positive impact that she had envisioned. Looking back, lara recalled that she and her
executive team—all strong leaders and managers—had worked behind closed doors for
months to create a strategy that was concise, easy to understand, and supported by all.
The executive team had rolled out the strategy in impressive fashion, and she knew that
her middle-level and frontline managers were good communicators, collaborators,
coordinators, and implementers. Among the barriers to strategy implementation, what
went wrong? - answers - top-down or laissez-faire senior management style
Which of the following takes place after a firm formulates its strategy? - answers -
implementation
What is true of operational planning - answers - it identifies specific plans and
procedures
The planning level with the shortest time horizon is known as________ planning -
answers - operational
Benchmarking is the process of assessing how well one company's basic functions and
skills compare with - answers - those of another company usually in the same industry
Planning begins with - answers - situational analysis
In a swot analysis, the lack of qualified workforce would be considered - answers -
weakness
The bcg matrix categorizes businesses within a conglomerate's portfolio as cash cows,
stars, question marks, and - answers - dogs
________ groups are consumer, environmental, and similar activist groups that attempt
to influence the industry - answers - social interest
During the covid-19 pandemic, many companies had to implement, or develop, new
________ due to the sudden change in the environment - answers - contingency plans
Which of the following is true of strategic planning - answers - strategic plans have a
strong external orientation and focus on the longer term
In the bcg matrix, low-growth, weak competitive positions businesses are called -
answers - dogs
The planning process is similar to the _______ process in that both have a series of
steps that are typically repeated in cycle - answers - decision -making
What is a potential disadvantage of group decision making? - answers - individual
dominance
What is the organizational decision process model in which major solutions arise
through a series of smaller decisions? - answers - incremental mode
Robinson products. Incorporated is faced with unprecedented uncertainty in its
marketplace, due to changing consumer tastes. Kaitlyn sims' sales team is struggling to
decide on needed changes in the firm's long-term marketing strategy. To spark
constructive conflict and develop new ideas among her team members, kaitlyn -
answers - appoints a team member to take a devil's advocate position in evaluating
ideas
How do managers under time pressure best make decisions that are both timely and
high-quality? - answers - they focus on real-time information and monitor daily
operating measures on work in process.
___________ should be the second phase in an ideal six phase decision-making
process - answers - generating alternative solutions
Which of the following terms refers to the condition that causes new goals to replace the
original ones? - answers - goal displacement
_____________ refers to how the phrasing of a problem or decision alternatives can be
more influential than objective facts - answers - framing effect
A structured debate comparing two conflicting courses of action is referred to as -
answers - dialectic
_________ refers to people's belief that they can influence events even when they have
no power to determine what will happen - answers - illusion of control
Mclaughlin and ferris is an accounting firm that has a stiff, bureaucratic structure. The
company has a promotion scheme where people who have finished a certain number of
years in service get a pay hike and a promotion. For the human resource manager at
mclaughlin and ferris, this decision highlights which of the following types of decisions? -
answers - programmed
_______ conflict ocurrs when a manager must decide between several attractive
options or when there are no attractive options - answers - psychological
Rafael is the art director of bliss sleepwear, a company that designs and manufactures
high fashion pajamas, loungewear, and lingerie. He meets with his creative team to
,brainstorm ideas for their fall - winter catalogue. How could rafael best encourage the
most creative and exciting ideas from his team? - answers - by establishing an open
atmosphere in which team members feel free to express their craziest ideas because
they know they will not be judged
What is the role of a devil's advocate in constructive conflict? - answers - to criticize
ideas and point out problems
In the decision-making process, ___________ refers to choosing the first option that is
minimally acceptable or adequate - answers - satisficing
________________ are developed as alternative course of action that can be
implemented based on how the futue unfolds - answers - contingency plans
Giselle wants to apply the differentiation strategy to build competitive advantage in her
the plumbing company. Of the following strategies, which one best exemplifies the
differentiation strategy? - answers - offering a free hour of service to first-time
customers
A ____________ illustrates the four key drivers of a firm's long-term success and shows
how goals in each area are linked to others. - answers - strategy map
"within our industry, we have world-class talent, great name recognition, and a sterling
reputation. Over the next five years, i want us to upgrade our manufacturing plants and
further develop our proprietary designs and products. As we accumulate
these________________, our firm's performance will be enhanced," said suzette
coleman, chief operating officer. - answers - resources
______________ provides individuals and work units with a clear map to follow map to
follow in future activities - answers - planning
Which phase comes immediately before making a choice in the decision-making
process? - answers - evaluate alternatives
Hesitation to invest in promising research and development that will not pay off until far
into the future is an example of - answers - discounting the future
A potential negative outcome of group decision making is when members choose not to
disagree or raise objections because they do not want to break up a positive team spirit.
This is referred to as - answers - groupthink
____________ refers to a less-than perfect form of rationality in which decision makers
cannot be perfectly rational because decisions are complex and complete information is
unavailable or cannot be fully processed - answers - bounded rationality
, _________ is seen when a manager weighs short-term costs and benefits more heavily
than longer-term costs and benefits - answers - discounting the future
Two years after launching her firm's new strategy, lara reflected that it had not had the
positive impact that she had envisioned. Looking back, lara recalled that she and her
executive team—all strong leaders and managers—had worked behind closed doors for
months to create a strategy that was concise, easy to understand, and supported by all.
The executive team had rolled out the strategy in impressive fashion, and she knew that
her middle-level and frontline managers were good communicators, collaborators,
coordinators, and implementers. Among the barriers to strategy implementation, what
went wrong? - answers - top-down or laissez-faire senior management style
Which of the following takes place after a firm formulates its strategy? - answers -
implementation
What is true of operational planning - answers - it identifies specific plans and
procedures
The planning level with the shortest time horizon is known as________ planning -
answers - operational
Benchmarking is the process of assessing how well one company's basic functions and
skills compare with - answers - those of another company usually in the same industry
Planning begins with - answers - situational analysis
In a swot analysis, the lack of qualified workforce would be considered - answers -
weakness
The bcg matrix categorizes businesses within a conglomerate's portfolio as cash cows,
stars, question marks, and - answers - dogs
________ groups are consumer, environmental, and similar activist groups that attempt
to influence the industry - answers - social interest
During the covid-19 pandemic, many companies had to implement, or develop, new
________ due to the sudden change in the environment - answers - contingency plans
Which of the following is true of strategic planning - answers - strategic plans have a
strong external orientation and focus on the longer term
In the bcg matrix, low-growth, weak competitive positions businesses are called -
answers - dogs
The planning process is similar to the _______ process in that both have a series of
steps that are typically repeated in cycle - answers - decision -making
