Question

0.5 points for each question correctly answered. Which of the following does not belong to the assumptions underlying the classical model of decision making? 1. All information on possible alternatives is available to managers Managers have the ability to correctly process all the available information . Managers have very good levels of intuition Managers know which course of action is going to be the best for the organization . Which of the following does not belong to the assumptions underlying the administrative model of decision making? 2. Individuals make decisions in a way which is not 100% rational . Individuals and organizations always look for the best possible decision . There are a number of limitations to our ability to process information Information is incomplete Which of the following is not a valid explanation for the incompleteness of information? 3. . Weakness of information systems . Uncertainty and risk . Time constraints . Ambiguity of information The first criteria used by General Electric to structure its organization is the line of business (Aircrafts, Financial services, Plastics, TV channels, Engines...). It's an example of: 4. . Functional structure Divisional structure . Geographical structure . Matrix structure S. To design its structure, IBM has used Vertical lines-S&D (Sales and Distribution), IGF (IBM Global Financing) and Marketing- and Horizontal lines STG (System Technology Group), GTS (Global Technology Service), GBS Global Business Server), and SWG (Soft Ware Group). This is an example of: . Functional structure .Divisional structure . Geographical structure Matrix structure When people first think of George Clooney appearing in ads as the main explanation for the success of 6. Nespresso, this is an example of: Heuristic bias . Cognitive bias Systematic error . Representativeness bias 7. When a company decides to stick year after year to the annual evaluation process, although a number of articles have shown that the practice results in inaccurate appraisal of employees, this is a case of .Heuristic bias . Cognitive bias Systematic error .Representativeness bias To deal with opportunities and threats, managers must select one solution from a set of alternatives. This process is known as 8. . groupthink Intuition * decision making . heuristics Decisions that are based on rules and guidelines are known as 9. brainstormed decisions programmed decisions intuitive decisions creative decisions 10. Nonroutine decisions made in response to novel situations in business are known as - rule-based decisions e automatic decisions 11. Which of the following is an assumption made by the classical model of decision making? There is no optimum decision There is only one alternative . Managers have access to all the information they need .Managers are not capable of making the right decisions 12. Managers must rely on their to make the best decision when faced with uncertainty and ambiguty * intuition and judgment cognitive biases * bounded rationalty usion of control 13. The first step in the classical model of the managerial decision-making process is to choose between alternatives . list alternatives implement the chosen alternative define criteria to evaluate the alternatives 14. Another name for contingency planning is: . single-use planning . business planning . divisional-Jevel planning . scenario planning 15. As a part of its yearly planning activities, General Electric Aircraft, one of GE main businesses, generates a liot e possible future scenarios and creates a plan to respond to each of these forecasts. General Electric Aircraht is iet af practicing: . single-use planning . ad-hoc planning . divisional-level planning . functional planning

Answer 1

Answering the first 4 questions as HOMEWORKLIB Guidelines:

1. The classical model of decision making is used for a well defined problem and the managers have fair idea about the various alternatives. Hence there are no risks associated with the decision. The managers tend to take the decision, which will be most suitable for the company.

No intuition of the manager will be used in classical decision making.

Answer: Option C – Managers have very good levels of intuition.

2. The administrative model of decision making happens when the manager chooses the second best solution because of time or budget constraints. There is limited rationality associated with the decision making process.

So, the statement that individuals and organizations look for the best possible decision in administrative decision making model is not correct.

Answer: Option B – Individuals and organizations always look for the best possible decision

3. Incompleteness of information happens when there is a weakness of the information system, the available information is ambiguous or there are uncertainties associated with it.

Time constraint is not a valid explanation for incompleteness of information.

Answer: Option C – Time constraints

4. GE divided its structure based on the line of business and the products associated. This is a clear example of a divisional structure as the business is divided into various divisions.

Answer: Option B – Divisional structure