Organizational Decision-Making

Description: This quiz covers the topic of Organizational Decision-Making, which is a crucial aspect of understanding how organizations function and make choices.
Number of Questions: 15
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Tags: organizational behavior decision-making management
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Which of the following is NOT a type of organizational decision-making?

  1. Programmed decision-making

  2. Non-programmed decision-making

  3. Bounded rationality

  4. Satisficing


Correct Option: C
Explanation:

Bounded rationality is a concept that describes the limits of human decision-making due to cognitive constraints, whereas programmed and non-programmed decision-making are types of decision-making processes, and satisficing is a decision-making strategy.

The rational model of decision-making assumes that decision-makers:

  1. Have complete information about all alternatives

  2. Can evaluate all alternatives objectively

  3. Choose the alternative that maximizes the organization's utility

  4. All of the above


Correct Option: D
Explanation:

The rational model of decision-making assumes that decision-makers have complete information, can evaluate alternatives objectively, and choose the option that maximizes the organization's utility.

Which of the following is NOT a factor that influences organizational decision-making?

  1. Organizational culture

  2. Power dynamics

  3. Environmental uncertainty

  4. Decision-maker's personal preferences


Correct Option: D
Explanation:

While organizational culture, power dynamics, and environmental uncertainty are factors that influence organizational decision-making, decision-maker's personal preferences are not considered a direct factor.

In programmed decision-making, decisions are made:

  1. Based on established rules and procedures

  2. In response to routine and predictable situations

  3. Without the need for extensive analysis

  4. All of the above


Correct Option: D
Explanation:

Programmed decision-making involves making decisions based on established rules, procedures, and routines, in response to routine and predictable situations, without the need for extensive analysis.

Non-programmed decision-making is characterized by:

  1. Novel and unstructured situations

  2. Lack of clear rules and procedures

  3. High levels of uncertainty

  4. All of the above


Correct Option: D
Explanation:

Non-programmed decision-making involves making decisions in novel and unstructured situations, where there are no clear rules or procedures to follow, and high levels of uncertainty exist.

In the context of organizational decision-making, satisficing refers to:

  1. Choosing the first alternative that meets a minimum level of acceptability

  2. Searching for the best possible alternative

  3. Optimizing the decision outcome

  4. None of the above


Correct Option: A
Explanation:

Satisficing is a decision-making strategy where decision-makers choose the first alternative that meets a minimum level of acceptability, rather than searching for the best possible alternative or optimizing the decision outcome.

Which of the following is NOT a type of organizational decision-making environment?

  1. Certainty

  2. Risk

  3. Uncertainty

  4. Ambiguity


Correct Option: D
Explanation:

Certainty, risk, and uncertainty are types of organizational decision-making environments, whereas ambiguity is not a specific type of environment but rather a characteristic of decision-making situations where information is incomplete or unclear.

Groupthink is a phenomenon that can occur in organizational decision-making, characterized by:

  1. Excessive conformity and suppression of dissent

  2. Illusion of unanimity and invulnerability

  3. Pressure to conform to group norms

  4. All of the above


Correct Option: D
Explanation:

Groupthink is a phenomenon where group members strive for unanimity and conformity, leading to the suppression of dissent and critical thinking, and an illusion of invulnerability and unanimity.

Which of the following is NOT a technique for improving organizational decision-making?

  1. Brainstorming

  2. Nominal group technique

  3. Delphi method

  4. Groupthink


Correct Option: D
Explanation:

Brainstorming, nominal group technique, and Delphi method are techniques for improving organizational decision-making, whereas groupthink is a phenomenon that can hinder effective decision-making.

The escalation of commitment phenomenon refers to:

  1. The tendency to continue investing in a failing course of action despite negative evidence

  2. The sunk cost effect

  3. Confirmation bias

  4. All of the above


Correct Option: D
Explanation:

The escalation of commitment phenomenon encompasses the tendency to continue investing in a failing course of action despite negative evidence, the sunk cost effect (the influence of past investments on future decisions), and confirmation bias (the tendency to seek information that confirms existing beliefs).

Which of the following is NOT a factor that contributes to organizational inertia?

  1. Resistance to change

  2. Path dependence

  3. Institutional isomorphism

  4. Environmental dynamism


Correct Option: D
Explanation:

Resistance to change, path dependence, and institutional isomorphism are factors that contribute to organizational inertia, whereas environmental dynamism refers to the rate of change in the external environment and is not a factor that directly contributes to inertia.

The concept of bounded rationality suggests that:

  1. Decision-makers have limited cognitive resources

  2. Decision-makers simplify complex problems to make them more manageable

  3. Decision-makers make decisions based on incomplete information

  4. All of the above


Correct Option: D
Explanation:

Bounded rationality recognizes that decision-makers have limited cognitive resources, simplify complex problems, and make decisions based on incomplete information, leading to satisficing and other heuristics.

Which of the following is NOT a type of organizational decision-making bias?

  1. Confirmation bias

  2. Hindsight bias

  3. Framing bias

  4. Bounded rationality


Correct Option: D
Explanation:

Confirmation bias, hindsight bias, and framing bias are types of organizational decision-making biases, whereas bounded rationality is a concept that describes the limits of human decision-making due to cognitive constraints.

The concept of organizational ambidexterity refers to:

  1. An organization's ability to balance exploration and exploitation

  2. The ability to adapt to changing environments

  3. The capacity to learn and innovate

  4. All of the above


Correct Option: D
Explanation:

Organizational ambidexterity encompasses an organization's ability to balance exploration (seeking new opportunities) and exploitation (refining existing capabilities), adapt to changing environments, and learn and innovate.

Which of the following is NOT a characteristic of effective organizational decision-making?

  1. Timeliness

  2. Accuracy

  3. Transparency

  4. Groupthink


Correct Option: D
Explanation:

Timeliness, accuracy, and transparency are characteristics of effective organizational decision-making, whereas groupthink is a phenomenon that can hinder effective decision-making due to excessive conformity and suppression of dissent.

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