Managerial Decision Making MCQs

What is managerial decision making?

a. The process of making decisions solely by managers
b. A systematic approach to making choices in an organization
c. The random selection of options by leaders
d. Delegating decision-making tasks to subordinates

Answer: b

In managerial decision making, what does the term “bounded rationality” refer to?

a. Making decisions without any constraints
b. Limitations on information and cognitive ability influencing decisions
c. Unlimited access to resources for decision making
d. A decision-making approach based on emotions

Answer: b

Which of the following is NOT a step in the rational decision-making model?

a. Identifying the problem
b. Generating alternative solutions
c. Choosing the easiest option
d. Implementing the decision

Answer: c

What is a characteristic of programmed decisions?

a. Unique and non-repetitive
b. Routine and repetitive
c. Based on intuition only
d. Unstructured and uncertain

Answer: b

The decision-making style that involves seeking as much information as possible before making a decision is known as:

a. Analytical
b. Directive
c. Conceptual
d. Behavioral

Answer: a

Which type of decision-making model suggests that decision makers follow a series of predefined steps?

a. Intuitive model
b. Administrative model
c. Normative model
d. Political model

Answer: c

What is the focus of the “satisficing” decision-making approach?

a. Maximizing benefits
b. Finding the best possible solution
c. Accepting the first alternative that meets minimum criteria
d. Avoiding risks at all costs

Answer: c

In the context of decision-making, what does the acronym SWOT stand for?

a. Strengths, Weaknesses, Opportunities, Threats
b. Seek, Weigh, Optimize, Target
c. Strategic, Wise, Organized, Tactical
d. Study, Work, Organize, Test

Answer: a

Which type of decision-making bias involves giving preference to information that confirms existing beliefs?

a. Confirmation bias
b. Anchoring bias
c. Hindsight bias
d. Availability bias

Answer: a

The Delphi technique is commonly used for:

a. Voting on decisions
b. Group decision making
c. Analyzing financial data
d. Individual decision making

Answer: b

What is the primary purpose of decision support systems (DSS)?

a. To automate all decision-making processes
b. To provide information and support for decision-making tasks
c. To replace human decision makers
d. To limit access to decision-related information

Answer: b

Which factor is NOT typically considered in cost-benefit analysis?

a. Financial costs
b. Time constraints
c. Environmental impact
d. Employee preferences

Answer: d

What is a key advantage of group decision making?

a. Faster decision-making process
b. Reduced diversity of perspectives
c. Limited creativity
d. Lack of consensus

Answer: a

In decision making, what does the term “escalation of commitment” refer to?

a. Increasing financial investments in a failing course of action
b. Quick and decisive action to resolve a problem
c. Consistently choosing the most conservative option
d. Delegating decisions to lower-level employees

Answer: a

Which of the following is an example of a non-programmed decision?

a. Ordering office supplies
b. Hiring a new employee
c. Routine maintenance tasks
d. Setting the thermostat in the office

Answer: b

What is the purpose of a decision tree in decision analysis?

a. Representing decisions and their consequences in a visual format
b. Predicting the future with absolute certainty
c. Eliminating the need for decision making
d. Prioritizing tasks in a decision-making process

Answer: a

The Pareto Principle, also known as the 80/20 rule, suggests that:

a. 80% of outcomes result from 20% of causes
b. All decisions have equal impact
c. Equitable distribution leads to optimal outcomes
d. Rapid decision-making is always the best approach

Answer: a

Which ethical decision-making principle focuses on treating others with fairness and impartiality?

a. Utilitarianism
b. Justice
c. Deontology
d. Virtue ethics

Answer: b

What is the purpose of a decision matrix?

a. Displaying decision outcomes in a graphical format
b. Identifying and evaluating criteria for decision making
c. Eliminating the need for decision analysis
d. Focusing solely on intuition in decision making

Answer: b

What does the acronym VUCA stand for in the context of decision making?

a. Volatility, Uncertainty, Complexity, Ambiguity
b. Vision, Understanding, Collaboration, Adaptability
c. Validity, Urgency, Competency, Analysis
d. Velocity, Uniqueness, Consistency, Agility

Answer: a

The term “groupthink” refers to:

a. Encouraging diverse opinions in group decision making
b. The tendency for group members to conform and avoid conflict
c. The use of technology in decision support systems
d. Random decision making without group consensus

Answer: b

Which decision-making model emphasizes the importance of organizational politics?

a. Political model
b. Administrative model
c. Normative model
d. Rational model

Answer: a

What is the purpose of a cost-effectiveness analysis in decision making?

a. Identifying the most cost-efficient option
b. Maximizing financial investments
c. Ignoring financial considerations
d. Prioritizing long-term gains over short-term costs

Answer: a

The “availability heuristic” is a cognitive bias that involves:

a. Relying on readily available information when making decisions
b. Seeking expert opinions for all decisions
c. Ignoring past experiences in decision making
d. Avoiding all risks in decision making

Answer: a

Which type of decision-making style is characterized by a low tolerance for ambiguity?

a. Analytical
b. Directive
c. Conceptual
d. Behavioral

Answer: b

What is the primary role of decision-making software?

a. Automating all decision-making processes
b. Providing tools and support for decision-making tasks
c. Replacing human decision makers
d. Reducing the complexity of decisions

Answer: b

The OODA loop (Observe, Orient, Decide, Act) is commonly associated with:

a. Military decision making
b. Scientific research
c. Individual decision making
d. Group decision making

Answer: a

What is the role of risk assessment in decision making?

a. Eliminating all risks before making a decision
b. Identifying potential risks and their impacts
c. Ignoring risks for the sake of expediency
d. Relying solely on intuition without considering risks

Answer: b

What does the acronym SMART stand for in the context of goal-setting in decision making?

a. Specific, Measurable, Achievable, Relevant, Time-bound
b. Systematic, Motivational, Appropriate, Realistic, Timely
c. Strategic, Meaningful, Actionable, Result-oriented, Time-sensitive
d. Simple, Manageable, Aspirational, Realistic, Timed

Answer: a

In decision-making terms, what is the purpose of a feedback loop?

a. Repeating the decision-making process multiple times
b. Providing information on the outcomes of decisions
c. Avoiding the need for continuous improvement
d. Ignoring the impact of decisions on future outcomes

Answer: b