ORGB CERTIFICATION EVALUATION
QUESTIONS AND SOLUTIONS PREMIUM
REVIEW MATERIAL
●● nonprogrammed decisions are..
Answer: .. a new and complex decision that requires a creative solution
●● the 8 steps of the decision making process are..
Answer: 1. recognize the problem and the need for a decision
2. identify the objective of the decision
3. gather and evaluate data and diagnose the situation
4. list and evaluate alternatives
5. select the best course of action
6. implement the decision
7. gather feedback
8. follow up.
●● effective decisions are..
Answer: .. a timely decision that meets a desired objective and is
acceptable to those individuals affected by it
●● rationality refers to..
,Answer: .. a logical, step-by-step approach to decision making, with a
thorough analysis of alternatives and their consequences
●● what are the 4 assumptions of the rational model of decision making,
which comes from basic economic theory?
Answer: 1. The outcome will be completely rational.
2. The decision maker has a consistent system of preferences, which is
used to choose the best alternative.
3. The decision maker is aware of all the possible alternatives.
4. The decision maker can calculate the probability of success for each
alternative
●● in the rational model, the decision maker strives to..
Answer: .. *optimize*, or select the best possible alternative
however, given the assumptions of the model, it is *unrealistic* (due to
time constraints and limits of human knowledge and information
processing capabilities)
●● bounded rationality theory suggests..
Answer: .. that there are limits to how a rational a decision maker can
actually be
●● what are the 4 assumptions of bounded rationality theory?
,Answer: 1. Managers select the first alternative that is satisfactory.
2. Managers recognize that their conception of the world is simple.
3. Managers are comfortable making decisions without determining all
the alternatives.
4. Managers make decisions by rules of thumb, or heuristics.
●● bounded rationality assumes that managers *satisfice*, which
means..
Answer: .. to select the first alternative that is "good enough", because
costs in time and effort are too great to optimize
●● heuristics are..
Answer: .. shortcuts in decision making that save mental activity
●● which is more realistic: the rational model or bounded rationality
theory?
Answer: bounded rationality theory.
one of the reasons managers face limits to their rationality is that they
must make decisions under risk and time pressure
●● what are the 4 steps in good problem solving according to the Z
model?
, Answer: 1. examine the facts and details: use sensing to gather
information about the problem.
2. generate alternatives: use intuiting to develop possibilities.
3. analyze the alternatives objectively: use thinking to logically
determine the effects of each alternative.
4. weigh the impact: use feeling to determine how the people involved
will be affected.
●● escalation of commitment is..
Answer: .. the tendency to continue to support a failing course of action
●● cognitive style is..
Answer: .. an individual's preferred method for gathering information
and evaluating alternatives
●● risk aversion is..
Answer: .. the tendency to choose options that entail fewer risks and less
uncertainty
●● intuition is..
Answer: .. a fast, positive force in decision making that is utilized at a
level below consciousness and involves learned patterns of information
●● creativity is..
QUESTIONS AND SOLUTIONS PREMIUM
REVIEW MATERIAL
●● nonprogrammed decisions are..
Answer: .. a new and complex decision that requires a creative solution
●● the 8 steps of the decision making process are..
Answer: 1. recognize the problem and the need for a decision
2. identify the objective of the decision
3. gather and evaluate data and diagnose the situation
4. list and evaluate alternatives
5. select the best course of action
6. implement the decision
7. gather feedback
8. follow up.
●● effective decisions are..
Answer: .. a timely decision that meets a desired objective and is
acceptable to those individuals affected by it
●● rationality refers to..
,Answer: .. a logical, step-by-step approach to decision making, with a
thorough analysis of alternatives and their consequences
●● what are the 4 assumptions of the rational model of decision making,
which comes from basic economic theory?
Answer: 1. The outcome will be completely rational.
2. The decision maker has a consistent system of preferences, which is
used to choose the best alternative.
3. The decision maker is aware of all the possible alternatives.
4. The decision maker can calculate the probability of success for each
alternative
●● in the rational model, the decision maker strives to..
Answer: .. *optimize*, or select the best possible alternative
however, given the assumptions of the model, it is *unrealistic* (due to
time constraints and limits of human knowledge and information
processing capabilities)
●● bounded rationality theory suggests..
Answer: .. that there are limits to how a rational a decision maker can
actually be
●● what are the 4 assumptions of bounded rationality theory?
,Answer: 1. Managers select the first alternative that is satisfactory.
2. Managers recognize that their conception of the world is simple.
3. Managers are comfortable making decisions without determining all
the alternatives.
4. Managers make decisions by rules of thumb, or heuristics.
●● bounded rationality assumes that managers *satisfice*, which
means..
Answer: .. to select the first alternative that is "good enough", because
costs in time and effort are too great to optimize
●● heuristics are..
Answer: .. shortcuts in decision making that save mental activity
●● which is more realistic: the rational model or bounded rationality
theory?
Answer: bounded rationality theory.
one of the reasons managers face limits to their rationality is that they
must make decisions under risk and time pressure
●● what are the 4 steps in good problem solving according to the Z
model?
, Answer: 1. examine the facts and details: use sensing to gather
information about the problem.
2. generate alternatives: use intuiting to develop possibilities.
3. analyze the alternatives objectively: use thinking to logically
determine the effects of each alternative.
4. weigh the impact: use feeling to determine how the people involved
will be affected.
●● escalation of commitment is..
Answer: .. the tendency to continue to support a failing course of action
●● cognitive style is..
Answer: .. an individual's preferred method for gathering information
and evaluating alternatives
●● risk aversion is..
Answer: .. the tendency to choose options that entail fewer risks and less
uncertainty
●● intuition is..
Answer: .. a fast, positive force in decision making that is utilized at a
level below consciousness and involves learned patterns of information
●● creativity is..
