FOM Answer04.docx
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FOM Answer04.docx
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FOMAnswer04
FundamentalsofManagement,8e(Robbinsetal.)
Chapter4FoundationsofDecisionMaking
1)Indecisionmaking,aproblemcanbedefinedasadiscrepancybetweenwhatexistsandwhattheproblemsolverdesirestoexist.
Answer:
TRUE
Explanation:
Aproblemisadifferencebetweenadesiredstateandanexistingstate.Forexample,supposeapersonishungry—theexistingstateofnothavingfood.Thedesiredstateistoobtainfood.Sotheproblemisdefinedasthedifferencebetweentheno-foodstateandthefoodstate.
Diff:
2PageRef:
72
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
2)Thesecondstepinthedecision-makingprocessisidentifyingaproblem.
Answer:
FALSE
Explanation:
Theidentificationofaproblemisthefirststepinthedecision-makingprocess.Onceyouhaveidentifiedaproblem,youcandecidehowtosolveit.
Diff:
1PageRef:
73
Objective:
4.4
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
3)Adecisioncriteriondefinesfactorsthatarerelevantinadecision.
Answer:
TRUE
Explanation:
Decisioncriteriaarecomprisedoffactorsthatwillaffectadecision.Ifthedecisionisbetweendrivingorridingabiketowork,criteriamightincludecost,weather,convenience,ecologicalconsiderations,time,clothing,andsoon.
Diff:
2PageRef:
73
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
4)Managersidentifyaproblembycomparingthecurrentstateofaffairstosomestandard.
Answer:
TRUE
Explanation:
Thestandardforcomparisonmightbeagoalthathasbeenset,orcomparisonwithsomehistoricalstandardorstandardsetbyacompetitor.Forexample,amanagermightdetectadiscrepancybetweenagoalof100unitssoldandtheexistingstateofonly50unitssold.Thisdiscrepancyconstitutesaproblemthatmustbesolved.
Diff:
3PageRef:
73
Objective:
4.1
5)Allcriteriaareequallyimportantinthedecision-makingprocess.
Answer:
FALSE
Explanation:
Criteriahavedifferingvalues,dependingontheirimportance.Theimportanceofanindividualcriterionisindicatedbyhowitisweighted.Thegreatertheweightassignedtothecriterion,thegreateritsimportance.
Diff:
2PageRef:
73
AACSB:
Analyticskills
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
6)Identifyingthewrongproblemisjustasmuchafailureforamanagerasidentifyingtherightproblemandfailingtosolveit.
Answer:
TRUE
Explanation:
Problemidentificationisacriticalpartofproblemsolvinganddecisionmaking.Solvingthewrongproblemdoesnothingtofurtheramanager'sgoalssoitisofnovalue.
Diff:
2PageRef:
73
AACSB:
Analyticskills
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
7)Thefinalstepofthedecision-makingprocessistoimplementthealternativethathasbeenselected.
Answer:
FALSE
Explanation:
Implementationofthebestalternativeisthesecond-to-laststepintheprocess.Thefinalstepoftheprocessistoappraisetheresultofthedecisiontoseeifitsolvedtheproblem.
Diff:
1PageRef:
75
AACSB:
Analyticskills
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
8)Aheuristiccansimplifythedecision-makingprocess.
Answer:
TRUE
Explanation:
Aheuristicisaruleofthumbthatisusedtosimplifythedecision-makingprocessbyallowingthedecisionmakertofocusonjustafewvariables,ratherthanallvariables.Whenusedwisely,heuristicsmakedecisionmakingeasierandsimpler.
Diff:
1PageRef:
75
AACSB:
Analyticskills
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
9)Becauseheuristicssimplifythedecision-makingprocess,theyareunlikelytoleadtoerrors.
Answer:
FALSE
Explanation:
Byvirtueoftheirsimplicity,heuristicscanleadtomanydifferentkindsofbiasesanderrors.Usingheuristicsluresdecisionmakersintoignoringcriticalelementsofthesituationandoversimplifyingtheproblem.
Diff:
1PageRef:
75
AACSB:
Analyticskills
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
10)Decisionmakerswho"cherry-pick"informationthatmatcheswhattheyalreadyknowareguiltyofconfirmationbias.
Answer:
TRUE
Explanation:
Confirmationbiasmeansthatthedecisionmakerhasalreadymadeuphisorhermindandisseekingonlytheinformationthatwillconfirmthatposition.Cherry-pickingisawayofpreferentiallyselectinginformationthatsupportsyourpositionandignoringallotherinformation.
Diff:
1PageRef:
76
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
11)Abasketballcoachwhotakesaverygoodshooteroutofagamebecauseshemissedherlasttwoshotshasavailabilitybias.
Answer:
TRUE
Explanation:
Availabilitybiasisthetendencytooveraccentuaterecenthistoryanddiscountlong-termpatterns.Thisbasketballcoachisignoringlong-termpatterns—theplayerisagoodshooter—infavorofveryrecenthistory—twomissedshots—soheisdisplayingavailabilitybias.
Diff:
1PageRef:
76
Objective:
4.1
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
12)Arationaldecisionwillneverfailtoprovidethebestandmostsuccessfulsolutiontoaproblem.
Answer:
FALSE
Explanation:
Arationaldecisionislogicalandobjectiveandwillmaximizethelikelihoodofsolvingaproblemorachievingagoal.Thatsaid,adecisioncanbearrivedatthrougharationalprocessandstillbewrongduetothedecisionmakerlackingcompleteinformationaboutthesituation.
Diff:
3PageRef:
78
Objective:
4.2
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
13)Maximizingvaluemeansadecisionwillhavethebestpossibleoutcomeforthepartiesinvolved.
Answer:
TRUE
Explanation:
Maximizingvalueisamatterofmakingadecisionthatresultsintheideal,orbestpossible,solution.Abaseballmanager,forexample,wantstomakeadecisionthatwillnotonlyscoreruns,afavorableoutcome,butwinthegame,theidealormaximaloutcome.
Diff:
2PageRef:
79
Objective:
4.2
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
14)Oneassumptionofboundedrationalityisthatmanagerscananalyzeallrelevantinformationaboutallalternativesforasituation.
Answer:
FALSE
Explanation:
Theideaofboundedrationalitysaysthatdecisionmakerscanneveranalyzeallinformationforthealternativesinvolved.Sodecisionmakersneedtoputlimitsonhowmuchinformationtheywillanalyze.
Diff:
2PageRef:
79
Objective:
4.2
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
15)Asynonymforthewordsatisficeismaximize.
Answer:
FALSE
Explanation:
Thewordssatisficeandmaximizeareoppositesratherthansynonyms.Whenamanagerdoesnothaveenoughinformationtomaximize,orfindthebestpossiblesolutiontoaproblem,heorshemustcompromise,orsatisfice.Whenyousatisficeyouacceptnotthebestsolution,butasolutionthatis"goodenough."
Diff:
2PageRef:
79
Objective:
4.2
16)Oneassumptionofboundedrationalityisthatmanagersusuallymakerationaldecisions.
Answer:
TRUE
Explanation:
Boundedrationalityassumesthatmanagersarelogical,objective,andfairlyrationalwhentheymakedecisions.However,sincemanagersoftendon'thaveaccesstoalloftherelevantinformationforagivensituation,theymustboundtheirrationalitywithinthelimitsoftheinformationtheyactuallyhave.
Diff:
2PageRef:
79
Objective:
4.2
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
17)Intuitivedecisionmakingissystematic,logical,andorderly.
Answer:
FALSE
Explanation:
Intuitivedecisionsmaybeperfectlysound,buttheyarenotarrivedatthroughasystematicanalysisofalternatives.Instead,intuitivedecisionsarequicklymadeandrelyonexperience,unconsciousreasoning,feelings,andhunches.
Diff:
2PageRef:
80
AACSB:
Reflectivethinkingskills
Objective:
4.2
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
18)Intuitivedecisionmakingcannotbeapartoftherationaldecision-makingprocess.
Answer:
FALSE
Explanation:
Intuitivedecisionsarenotarrivedatinadeliberative,systematicmanner,buttheycanbeobjectiveandlogical,sotheyareconsideredrational.
Diff:
2PageRef:
80
AACSB:
Reflectivethinkingskills
Objective:
4.2
LearningOutcome:
Identifythedifferenttypesofdecisionsmanagersmakeanddiscusshowtheymakedecisions
19)Theexpression"throwinggoodmoneyafterbad"isanexampleofanescalationofcommitment.
Answer:
TRUE
Explanation:
Throwinggoodmoneyafterbadtypicallydenotesasituationinwhichmoneyhasalreadybeenwastedonanunsuccessfulventure—"badmoney."Throwingmore"goodmoney"intothesituationsimplybecauseofthe"badmoney"alreadycommittedisaclearexampleofescalationofcommitment.
Diff:
2PageRef:
79
Objective:
4.2
20)Emotionsshouldalwaysbestrictlyignoredinadecision-makingprocess.
Answer:
FALSE
Explanation:
Decisionsthatwereaccompaniedbystrongfeelingswerefoundtobemorereliablethanthoset
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