CH-4 Planning and Decision Making – Effective Management : Exam Guide

Chapter 4: Planning and Decision Making TRUE/FALSE 1. Planning offers three important benefits. They are intensified effort, synergy, and direction. Answer: False Planning has four important benefits: intensified effort, persistence, direction, and creation of task strategies. In addition, planning has been proven to work for both companies and individuals. 2. Planning can impede change, create a false sense of certainty, and lead to the detachment of planners. Answer: True 3. Planning is one of the best ways to improve organizational and individual performance. Answer: True 4. Once, Gateway, the computer company, set a goal of reaching over $1 billion in quarterly sales in a single year. This goal does not satisfy all of the S.M.A.R.T. guidelines because it is not attainable or meaningful within Gateway's competitive environment. Answer: False One of the S.M.A.R.T .guidelines is the need for a goal to be realistic and measurable, not reachable and meaningful. 5. Lipitor, manufactured by Pfizer, had $3.3 billion in sales. Pfizer executives announced that Lipitor sales would total $13 billion in one year's time despite the recent release of a generic version of the product. This is not an example of a stretch goal because it meets all of the S.M.A.R.T. guidelines. Answer: False Pfizer's goal is unreasonably ambitious given last year's sales figures and its new competition. 6. Planning is a three-step process consisting of first setting goals, next developing effective action plans, and finally tracking progress toward goal achievement. Answer: False Planning consists of a total of five steps: (a) setting goals, (b) developing commitment to the goals, (c) developing effective action plans, (d) tracking progress toward goal achievement, and (e) maintaining flexibility in planning. See Exhibit 4.1. 7. S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely. Answer: False S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely. 8. Both proximal and distal goals are used to provide additional motivation and rewards for employees. Answer: True 9. The two approaches to maintaining flexibility while an organization is in the planning stage are outcome-based planning and change-based planning. Answer: False The two approaches are options-based planning and learning-based planning. 10. The basic purpose of learning-based planning is constant improvement. Answer: True 11. Learning-based planning makes the same assumptions as traditional planning. Answer: False In contrast to traditional planning, which assumes that initial action plans are correct and will lead to success, learning-based planning assumes that action plans need to be continually tested, changed, and improved as companies learn better ways of achieving goals. 12. Encouraging worker participation in goal setting, making goals public, and getting top management's support are all recommended ways to increase goal commitment. Answer: True 13. Planning works best when the goals and action plans at the bottom and middle of the organization support the goals and action plans at the top of the organization. Answer: True 14. Developing a vision and mission statement is the sole responsibility of middle management. Answer: False Top managers are responsible for creating the organizational vision and mission. 15. Yahoo's mission statement is “to connect people to their passions, their communities, and the world's knowledge. To ensure this, Yahoo offers a broad and deep array of products and services to create unique and differentiated user experiences and consumer insights by leveraging connections, data, and user participation." This is not a good mission statement because it lacks a finish line and a time frame. Answer: True 16. A mission is a statement of a company's purpose or reason for existing. Answer: False This is the definition of a purpose statement, or vision. The mission, which flows from the vision, is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a timeframe. 17. Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. Answer: True 18. Tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two years. Answer: True 19. Management by objectives (MBO) is so successful because it allows managers to focus on qualitative goal setting. Answer: False One of the disadvantages of MBO is the fact it focuses on quantitative, easily measured goals. 20. Management by objectives is a two-step process in which managers and their employees discuss possible goals, and then meet regularly to review progress toward accomplishment of those goals. Answer: False Management by objectives is a four-step process in which managers and their employees (a) discuss possible goals, (b) participatively select goals that are challenging, attainable, and consistent with the company's overall goals, (c) jointly develop tactical plans that lead to accomplishment of tactical goals and objectives, and (d) meet regularly to review progress toward accomplishment of those goals 21. One of the disadvantages of MBO is that managers are frequently unable to give employees feedback on their performance. Answer: False Managers are quite able to do this; they are just reluctant to do so. 22. The three kinds of operational plans are single-use plans, standing plans, and budgets. Answer: True 23. Standing plans deal with unique, one-time-only events. Answer: False This is the definition of single-use plans. Standing plans are created once and then used repeatedly to handle frequently recurring events. 24. Budgeting is a critical management task, one that most managers could do better. Answer: True 25. After realizing how difficult shopping is for visually-impaired people, the manufacturer of L'Occitane, a French beauty products company, started printing all of its labels in Braille. Now that the practice is established, the coding and printing of these labels is an example of a procedure. Answer: True 26. The three kinds of standing plans are policies, procedures, and rules and regulations. Answer: True 27. All decision making is rational. Answer: False Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Not all decision making is this logical. 28. The term decision making is used to refer to the process of choosing a solution from available alternatives. Answer: True 29. The process of rational decision making emphasizes the use of systematic procedures to arrive at optimal solutions. The process of decision making does not. Answer: True 30. The first step in the rational decision-making process is to generate alternative courses of action. Answer: False The first step is to define the problem. 31. The six steps in the rational decision-making process are as follows: (1) frame the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision. Answer: False The six steps in the rational decision-making process are as follows: (1) define the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision. See Exhibit 4.6. 32. Groups can do a much better job than individuals engaged in decision-making when defining the problem and computing the optimal decision. Answer: False Groups can do a much better job than individuals in two important steps of the decision-making process: defining the problem and generating alternative solutions. 33. In the rational decision-making process, decision criteria must be identified and weighted before alternatives can be evaluated. Answer: True 34. Relative comparisons either compare each decision criterion to a standard or rank the criteria on their own merits. Answer: False This is the definition of absolute comparisons. Relative comparisons refer to a process in which each decision criterion is compared directly to every other criterion. 35. Both absolute comparisons and relative comparisons are methods for identifying decision criteria. Answer: False These are methods for weighting the criteria, not identifying them. 36. When generating alternative courses of action within the rational decision-making process, the identification of a relatively few alternatives will facilitate evaluation. Answer: False It is generally desirable to identify as many alternatives as possible. 37. It is highly doubtful that rational decision making can always help managers choose optimal solutions that provide maximum benefits to their organizations. Answer: True 38. The bounded rationality model argues that managers try to take a rational approach to decision making but are restricted by real-world constraints, incomplete and imperfect information, and their own limited decision-making capabilities. Answer: True 39. Groupthink is more likely to occur in a highly cohesive group that is insulated from others and has no established procedure for systematically defining problems and exploring alternatives. Answer: True 40. Numerous studies show that groups consistently outperform individuals on complex tasks. Answer: True 41. Cognitive conflict is another name for c-type conflict. Answer: True 42. The nominal group technique typically produces poorer quality decisions than do either the devil's advocacy or dialectical inquiry approaches. Answer: True 43. Because it is a time-consuming, labor-intensive, and expensive process, the Delphi technique is best reserved for important long-term issues and problems. Answer: True 44. According to the What Really Works, "Devil's Advocacy and Dialectical Inquiry," well-structured problems can be solved with programmed decisions that ignore negative consequences. Answer: True 45. Devil's advocacy and dialectical inquiry are two methods that introduce structured a-type conflict into the group decision-making process. Answer: False They introduce structured c-type conflict into the group decision-making process. 46. If available time is limited, then you should use the stepladder technique for decision making. Answer: False The stepladder technique requires time for group members to consider the problem or decision on their own, to present their ideas to the group, and to thoroughly discuss all ideas and alternatives with the group. 47. Face-to-face brainstorming is a much more effective method for generating alternatives than electronic brainstorming. Answer: False Electronic brainstorming overcomes the disadvantages associated with face-to-face brainstorming, and tends to be the more effective method for generating alternatives. 48. Production blocking and evaluation apprehension are both disadvantages associated with electronic brainstorming. Answer: False These are disadvantages associated with face-to-face brainstorming, which are overcome by electronic brainstorming. 49. In electronic brainstorming, the number and quality of ideas generally increase with group size. Answer: True MULTIPLE CHOICE 1. Health Canada is preparing a revised Food Guide, which will reflect the evolving cultural profile of the country, from ethnic diversity and the aging population to changing family structure and increased home and work pressures. The aim of the new guide, which will replace the version written in 1992, is to provide "all Canadians with a vast array of food selections that broadens and enhances their healthy food choices.” Which classical management function would be instrumental in achieving this goal? A. motivating B. research and development C. planning D. marketing E. optimizing Answer: C Planning is choosing a goal and developing a method to achieve that goal. 2. A manager is involved in _____________ when he or she chooses a goal and develops a method or strategy to achieve that goal. A. goal-setting B. planning C. strategizing D. benchmarking E. keystoning Answer: B Planning is choosing a goal and developing a method to achieve that goal. 3. Planning is ultimately based upon: A. how a planner deals with bounded rationality B. choosing a goal and developing a method or strategy to achieve that goal C. the relationship between organizational line and staff personnel D. whether the mission statement is internally or externally oriented E. the personality type of the individual engaged in planning Answer: B 4. According to a 2004 PCPS research study, 60 percent of CPA firms have owners in the 55 to 62 year age bracket, and more than half of the firms have at least one partner retiring in the next five years. Yet, according to the study, 81 percent have not named a successor in the event of death or catastrophic illness. These CPA firms need to engage in: A. motivating B. research and development C. planning D. marketing E. optimizing Answer: C Planning is choosing a goal and developing a method to achieve that goal. In this case, the goal is to find a successor. 5. Wal-Mart Stores Inc. has been trying to rekindle growth in its U.S. operations. Sales at its U.S. stores have declined due to remodeling projects, limited opportunities for growth, and problems with its clothes offerings. In addition, the low-income shoppers who patronize Wal-Mart have less money to spend due to higher gas prices. Wal-Mart will need to rely on which management function to achieve its growth goals? A. optimizing B. planning C. strategizing D. benchmarking E. keystoning Answer: B Planning is choosing a goal and developing a method to achieve that goal. 6. Planning has been proven effective for: A. companies that operate on five different continents B. nonprofit organizations C. employees D. small companies with fewer than five employees E. all of these Answer: E 7. One of the benefits of planning is how it: A. encourages employees to work more slowly B. encourages people to try a variety of different ways to do others' jobs C. reduces employee turnover D. eliminates all discriminatory practices E. does none of these Answer: E 8. One of the benefits of planning is how it: A. improves vertical integration of departments B. encourages people to engage in behaviors directly related to goal accomplishment C. encourages people to remain with the company, rather than go to work for the competition D. eliminates the need for change agents E. makes a long-term mission statement redundant Answer: B 9. How does a company benefit from planning? A. increased use of groupthink B. less solidified group cohesion C. more compliance with organizational culture D. intensified effort, persistence, direction, and creation of task strategies E. the ability to make greater use of devil's advocacy Answer: D 10. One of the benefits of planning is how it: A. encourages people to work harder for extended periods B. encourages people to try a variety of different ways to do others' jobs C. reduces employee turnover D. creates a mechanistic environment E. does none of these Answer: A 11. The use of _____________ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning. A. assumptions B. commitment C. detachment D. tactics E. benchmarking Answer: A 12. Health Canada is preparing a revised Food Guide, which will reflect the evolving cultural profile of the country, from ethnic diversity and the aging population to changing family structure and increased home and work pressures. The aim of the new guide, which will replace the version written in 1992, is to provide "all Canadians with a vast array of food selections that broadens and enhances their healthy food choices.” There is a potential for the creators of the new Food Guide to assume they have reached all of the important audiences in a language that everyone can understand. This assumption reflects: A. one of the pitfalls of planning. B. why benchmarking is often ineffective C. the need for rules and regulations D. the importance of distal goals E. the need to welcome mission statement modification Answer: A One of the pitfalls of planning is a false sense of certainty based on faulty assumptions. 13. Which of the following is a possible outcome of planning? A. Planning may lead to a mechanistic organizational chart. B. Planning may harm individual and organizational performance. C. Planning can eliminate the need for formalization. D. Planning will allow the company to know about all changes in its external environment before they occur. E. All of these are possible outcomes of planning. Answer: B 14. According to the text, which of the following is a pitfall of planning? A. the acceptance of satisficing solutions B. a false sense of certainty based on faulty assumptions C. the inability of organizational line personnel to accept the long-term benefit of planning D. the requirement for expensive employee training before plans can be effectively implemented E. outsourcing Answer: B 15. The last step in effective planning is to: A. maintain flexibility in planning B. develop long-term action plans C. develop goal commitment D. acculturate the employees E. track progress toward goal achievement Answer: A See Exhibit 4.1. 16. According to the S.M.A.R.T. guidelines, goals should be: A. Aggregated B. Reliable C. Timely D. Motivated E. all of these Answer: C The S.M.A.R.T. goals are specific, measurable, attainable, realistic, and timely. 17. According to the S.M.A.R.T. guidelines, goals should be: A. Service-oriented B. Measurable C. Rational D. Tactical E. Actionable Answer: B The S.M.A.R.T. goals are specific, measurable, attainable, realistic, and timely. 18. According to the S.M.A.R.T. guidelines, goals should be: A. Synergistic B. Maximized C. Accelerated D. Role-related E. none of these Answer: E The S.M.A.R.T. goals are specific, measurable, attainable, realistic, and timely. 19. Which of the following is NOT one of the characteristics of S.M.A.R.T. goals? A. Synergistic B. Measurable C. Timely D. Attainable E. Realistic Answer: A The S.M.A.R.T. goals are specific, measurable, attainable, realistic, and timely. 20. People who live in Baton Rouge, Louisiana, love to complain about traffic, but they have a right to complain about Interstate 110 with its truly epic traffic engineering blunders that make every drive along it a dance with death. The first step in planning how to correct these blunders would be to: A. develop effective action plans B. determine the interstate vision C. maintain flexibility D. set goals E. develop goal commitment Answer: D This is the first step in making plans work. See Exhibit 4.1. 21. The new Army Strategic Planning Guidance (ASPG) set long-term goals for the U.S. Army for the next 10 to 20 years. One of these goals is to "improve capabilities for homeland defense." In terms of the S.M.A.R.T. goals, this goal: A. is neither service-oriented nor temporally based B. is tactical C. is not synergistic with other goals D. is rational but not timely E. lacks measurability and specificity Answer: E S.M.A.R.T. stands for Specific, Measurable, Attainable, Realistic, and Timely. 22. Wal-Mart Stores Inc. has been trying to rekindle growth in its U.S. operations. Sales at its U.S. stores have been declining due to remodeling projects, limited opportunities for U.S. growth, and problems with its clothes offerings. In addition, the low-income shoppers who patronize Wal-Mart may have less money to spend due to higher gas prices. Wal-Mart has been very candid about its need to implement a growth strategy for its U.S. stores. Why has Wal-Mart been so public about this goal? A. to establish a competitive advantage B. to create resource munificence C. to maintain valid benchmarks D. to encourage goal commitment E. to alleviate stakeholder criticism Answer: D Goal commitment is the determination to achieve a goal; it is not automatic. One method to gain goal commitment is to make the goal public. 23. Which of the following is a commonly used method for increasing goal commitment? A. encouraging worker participation in goal setting B. keeping goals private C. setting ethical goals D. using an ombudsman to set goals E. all of these Answer: A Goal commitment is the determination to achieve a goal. 24. Which of the following is a commonly used method for increasing goal commitment? A. reward whistleblowing B. make goals public C. get the union's support D. use the equity theory E. establish a median goal for all employees Answer: B Goal commitment is the determination to achieve a goal. 25. The most popular approach to increasing goal commitment is: A. encouraging workers' participation in goal setting B. making goals public C. getting top management's support D. assigning realistic and attainable goals E. management by mentoring Answer: A Goal commitment is the determination to achieve a goal. 26. People who live in Baton Rouge, Louisiana, love to complain about traffic, but they have a right to complain about Interstate 110 with its truly epic traffic engineering blunders that make every drive along it a dance with death. The Department of Transportation has planned to correct the worst mistakes and reduce traffic accidents on the road as it passes through the city. After setting its goals, it publicized them in the local newspaper. How would this influence how well the plan worked? A. It would encourage goal commitment. B. It would make the plans inflexible. C. It would create a dynamic environment between the plans and the community. D. It would make action plans unnecessary. E. It would create an automatic method for checking progress. Answer: A The second step in how to make plans work is goal commitment. Another method of developing goal commitment is to develop the goals participatively. 27. A manufacturer of snowboards could set a(n) _____________ goal to increase revenues by 8 percent over the next five years and a(n) _____________ goal to increase sales next June in Aspen, Colorado, by 3 percent. A. tactical; strategic B. operational; tactical C. distal; proximal D. operational; strategic E. proximal; distal Answer: C Proximal goals are short-term goals. Distal goals are long-term goals. 28. Which of the following is an accepted method for tracking progress toward goal achievement? A. setting response and stimulus goals B. gathering and providing performance feedback C. using operant and classical conditioning D. mechanistic and dynamic feedback E. data warehousing and data mining Answer: B 29. People who live in Baton Rouge, Louisiana, love to complain about traffic, but they have a right to complain about Interstate 110 with its truly epic traffic engineering blunders that make every drive along it a dance with death. The goal was to correct the most obvious blunders and reduce traffic accidents along the stretch of 110 that passes through the city. A Department of Transportation manager examining weekly accident reports prepared by Baton Rouge law enforcement would be using which of the accepted methods for tracking progress toward goal achievement? A. setting realistic and attainable goals B. gathering and providing performance feedback C. developing concrete action plans D. making sure goals are measurable E. comparing dynamic with mechanistic goals Answer: B The weekly accident reports are a form of feedback. 30. A(n) _____________ lists the specific steps, people, resources, and time period for accomplishing a goal. A. strategy B. proximal goal C. distal goal D. action plan E. subordinate objective Answer: D 31. Managers can monitor _____________ to track progress toward goal achievement. A. action plans and their implementation B. proximal and distal goals C. one-way and two-way evaluative techniques D. framing and non-framing goals E. open-ended and close-ended techniques Answer: B 32. _____________ can help organizations to maintain flexibility as they plan. A. Environmental munificence B. Learning-based planning and options-based planning C. Formalization D. Liaisons E. Group cohesiveness Answer: B Learning-based planning emphasizes developing better ways of achieving goals by continually testing, changing, and improving plans and strategies. The goal of options-based planning is to keep options open by making small, simultaneous investments in many options or plans. 33. The goal of _____________ is to keep options open by making small, simultaneous investments in many options or plans. A. operant planning B. learning-based planning C. traditional planning D. motivational planning E. options-based planning Answer: E 34. For options-based planning to work, the organization must: A. have slack resources B. use cross-functional teams C. have broad spans of management D. have tall organizational structures E. use decentralization Answer: A The goal of options-based planning is to keep options open by making small, simultaneous investments in many options or plans. Slack resources are a cushion of extra resources. 35. _____________ planning emphasizes developing better ways of achieving goals by continually testing, changing, and improving plans and strategies. A. Learning-based B. Options-based C. Conditioned D. Functional E. Operant Answer: A 36. The basic purpose of _____________ is constant improvement. A. options-based planning B. learning-based planning C. traditional planning D. operant planning E. the establishment of planning windows Answer: B Learning-based planning emphasizes developing better ways of achieving goals by continually testing, changing, and improving plans and strategies. 37. Planning works best when the goals and action plans at the _____________ of the organization support the goals and action plans at the _____________ of the organization. A. bottom and top; middle B. top and middle; bottom C. bottom and middle; top D. group level; individual level E. staff level; line level Answer: C 38. Top management is responsible for developing long-term _____________ that make clear how the company will serve customers and position itself against competitors in the next two to five years. A. standing plans B. tactical plans C. operational plans D. strategic plans E. mission statements Answer: D Strategic plans make clear how the company will serve its customers and position itself against competitors. 39. _____________ is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years. A. An action team B. Middle management C. Planning staff D. A change agent E. Top management Answer: E 40. A(n) _____________ is a statement of a company's purpose or reason for existing. A. vision B. action plan C. strategy D. competitive profile E. mission Answer: A 41. Over the next three years, Procter & Gamble will improve its bargaining position with giant retailers like Wal-Mart, which will improve its ability to introduce new products. This is P&G's: A. vision B. mission C. strategic plan D. policy E. special-use plan Answer: C A strategy makes clear how the company will position itself against competitors. 42. The _____________ for White House Foods is "In all we do, we do our best." This has been true since the company began 97 years ago and shall remain so. A. vision B. action plan C. strategy D. competitive profile E. mission Answer: A A vision is a statement of purpose. It should be enduring. 43. The manufacturer of Michelin tires is not in the tire business. Its _____________ is to protect those who ride on its tires. A. transformational mission B. vision C. strategic mission D. mission target E. motivational mission Answer: B A vision should be brief, enduring, inspirational, clear, and consistent with widely shared company beliefs and values. 44. The organization's _____________ does not change over time. A. mission B. vision C. strategy D. operational plan E. action plan Answer: B 45. Seeds of Change is a company that markets certified organic food. A statement found at the marketer's Web site reads, "At Seeds of Change, we’re committed to making delicious foods that are healthy for you as well as the planet." This statement is most likely the company's _____________ because it will not change over time. A. vision B. mission C. statement of value D. discretionary responsibility E. action-based goal Answer: A A vision should be brief, enduring, inspirational, clear, and consistent with widely shared company beliefs and values. 46. A(n) _____________ should be brief, enduring, inspirational, clear, and consistent with widely shared company beliefs and values. A. organizational strategy B. mission statement C. vision D. value statement E. action plan Answer: C 47. The _____________ flows directly from the _____________. A. vision; tactical plans B. action plan; contingency plans C. mission; operational plans D. mission; vision E. strategy; action plans Answer: D 48. Most people who have watched the television show Star Trek are familiar with the Starship Enterprise's _____________ "To explore strange new worlds, to seek out new life and new civilization, to boldly go where no man has gone before." A. plan of action B. tactical plan C. mission D. actionable goal E. strategy Answer: C A mission is a statement of an organization’s overall goal. It unifies the organization. 49. The New Mexico Nurses Association is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people. This is the organization's: A. vision B. action plan C. strategy D. competitive profile E. mission Answer: E A mission is a statement of a company's overall goal that unifies company-wide efforts. 50. An Ottawa company that designs and manufactures fiber-optic networking components is opening a manufacturing operation at the University of Arizona Science and Technology Park. This _____________ supports the company's goal to double the size of its manufacturing operation within the next five years. A. standing plan B. tactical plan C. operational plan D. strategic plan E. mission statement Answer: B Tactical plans specify how a company will use its resources to support goal achievement. 51. A company's mission: A. flows from its strategy B. unifies company-wide efforts C. can never be accomplished, only approached D. is not in accordance with the S.M.A.R.T. guidelines E. identifies its organizational culture Answer: B 52. Which of the following statements about a company's mission is true? A. A company's mission flows from its vision. B. A company's mission is a more specific goal that unifies company-wide efforts. C. A company's mission possesses a finish line and a timeframe D. Once a company's mission has been accomplished, a new one should be chosen. E. All of these statements about a company's mission are true. Answer: E 53. General Electric once launched a promotion called “Ecoimagination” as part of its strategy to remain one of the top-rated global companies. One _____________ plan for accomplishing this objective involved commercials emphasizing both its environmental sensitivity and its corporate creativity. A. contingency B. single-use C. standing D. visionary E. tactical Answer: E Tactical plans specify how a company will use its resources to support goal achievement. 54. Miller Brewing Co. says it will resume direct attacks on Bud Light in an effort to keep Miller Lite's momentum going. Miller executives said the company had been "out-executed" in discounting activity by both A-B and Molson Coors during the Memorial Day holiday. In response, Miller said it would "adjust relative pricing gaps where competitor discounts have impacted its sales." Miller has also announced that new television commercials will resume direct comparisons with Bud Light, following a spate of recent Miller Lite ads that did not knock the competition. Changes in its pricing and in its advertising reflect changes in _____________ plans. A. contingency B. strategic C. operational D. visionary E. tactical Answer: E Tactical plans specify how a company will use its resources to support goal achievement. 55. _____________ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. A. Strategic B. Tactical C. Operational D. Single-use E. Dialectical Answer: B 56. Who is responsible for the creation of tactical plans? A. team leaders B. lower-level managers C. middle managers D. top managers E. staff advisers Answer: C Tactical plans specify how a company will use its resources, budgets, and people to accomplish specific tasks. 57. Management by objectives (MBO) is a management technique often used to develop and carry out: A. single-use plans B. standing plans C. operational plans D. tactical plans E. hierarchical plans Answer: D 58. Which of the following is NOT a step in the management by objectives (MBO) process? A. jointly discuss possible goals B. participatively select goals that are challenging C. jointly develop operational plans D. meet regularly to review progress toward goal accomplishment E. participate in the selection of goals that are consistent with the company's overall goals Answer: C 59. Mayor Michael R. Bloomberg has announced a comprehensive plan to improve New York City's telecommunications infrastructure. One _____________ is to dedicate a portion of federal funds for rebuilding lower Manhattan, strengthening downtown Manhattan's fiber-optic infrastructure, and developing a wireless network to provide back-up capabilities. A. contingency B. strategic C. operational D. visionary E. tactical Answer: E Tactical plans specify how resources will be used to support goal achievement. 60. According to the text, which of the following is a disadvantage associated with management by objectives (MBO) programs? A. excessive paperwork B. conflict between manager and employees over nature and types of goals C. a managerial reluctance to provide feedback to employees D. difficulty in evaluating qualitative goals E. all of these Answer: E 61. When done correctly, management by objectives (MBO) is an extremely effective method for: A. brainstorming B. developing policies and procedures C. broadening the span of transformation D. problem framing E. tactical planning Answer: E 62. Who is primarily responsible for developing operational plans? A. lower-level managers B. middle managers C. top managers D. staff advisers E. any of these Answer: A Operational plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months. 63. The U.S. Secretary of Health and Human Services introduced a National Diabetes Plan to address this growing public health problem. As part of this plan, diabetes advocates were invited to attend three "town hall meetings" held in Cincinnati, Little Rock, and Seattle. _____________ were used to make these meetings a success. A. Special-use plans B. Tactical plans C. Operational plans D. Strategic plans E. Mission statements Answer: C Operational plans direct the behaviors, efforts, and priorities of operative employees. 64. The U.S. Secretary of Transportation unveiled a new plan to improve safety along the nation's railroads during a visit to Columbia, S.C. The _____________ offers specific plans for preventing train accidents caused by human error and minimizing the dangers of crew fatigue. A. special-use plan B. tactical plan C. operational plan D. strategic plan E. mission statement Answer: C Operational plans direct the behaviors, efforts, and priorities of operative employees. 65. _____________ plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months. A. Strategic B. Tactical C. Operational D. Standing E. Procedural Answer: C 66. There are three kinds of _____________ plans. They are single-use plans, standing plans, and budgets. A. strategic B. tactical C. operational D. MBO E. actionable Answer: C 67. What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer? A. single-use plan B. contingency plan C. scenario plan D. standing plan E. role-model plan Answer: A 68. In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and including evacuating buildings. What kind of a standing plan is described in this example? A. rules and regulations B. procedures C. policies D. organizational norms E. security governances Answer: B Procedures are standing plans that indicate the specific steps that should be taken in response to a particular event. 69. _____________ are types of standing plans. A. Policies and procedures B. Targeted plans C. Long-term tactical strategies D. MBO guidelines E. Transformational plans Answer: A 70. _____________ are standing plans that indicate the specific steps that should be taken in response to a particular event. A. Policies B. Procedures C. Actionable plans D. Options-based plans E. Single-use plans Answer: B 71. Budgets are an example of _____________ planning. A. strategic B. tactical C. operational D. actionable E. single-use Answer: C 72. New employees were instructed to never wear loose-fitting clothes when working around the canning machine. These instructions are an example of what kind of a standing plan? A. rules and regulations B. procedures C. policies D. organizational norms E. security governances Answer: A Rules and regulations specify what must happen and what must not happen. 73. Marriott International has a detailed manual explaining to its hotel managers how to respond in the event of emergencies, such as hurricanes. The emergency plan outlines levels of storms and what the response should be for each type. The plan includes anything from where to park cars to making sure you can rent a room in a corner of the building where there are trees. This would be an example of a(n): A. standing plan B. budget C. multiple-use plan D. options-based plan E. forecast Answer: A A standing plan is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events. 74. Harrah's casino in Nevada was sued because it had _____________ that required all "beverage" employees to have their appearances reengineered by an image consultant. Women were required to wear a lot of makeup, including lipstick, powder, mascara, blush, and certain acceptable shades of nail polish. A. rules and regulations B. procedures C. policies D. organizational norms E. security governances Answer: A Rules and regulations specify what must happen and what must not happen. 75. _____________ are a type of operational plan. A. Single-use plans B. Contingency plans C. Short-term strategies D. Mission modifications E. Benchmarks Answer: A 76. The _____________ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events. A. standing plan B. budget C. multiple-use plan D. options-based plan E. forecast Answer: A 77. A _____________ is a standing plan that indicates the general course of action that should be taken in response to a particular event of situation. A. policy B. procedure C. rule D. regulation E. heuristic Answer: A 78. During a routine service call in June 2007, a Comcast cable repairman fell asleep on the couch of customer Brian Finkelstein. Finkelstein's ensuing video, complete with soundtrack and commentary on the company's poor equipment, high prices, and lousy customer service, quickly becomes a viral hit on the Web. What kind of plan did Comcast most likely use to deal with this negative publicity? A. strategic plan B. procedural plan C. action program D. single-use plan E. regulated plan Answer: D The event was a unique, one-time-only event. 79. In 2006, news carriers and retailers in Worcester, Mass., got an unexpected bonus with their usual shipment of the Telegram & Gazette: the credit and debit card numbers of 240,000 subscribers to the paper and its sister publication the Boston Globe. The security breach was the result of a recycling program in which paper from the Telegram & Gazette's business office was reused to wrap bundles of newspapers. What kind of plans dictated how the newspapers were to be delivered? A. tactical plans B. action programs C. operational plans D. procedural plans E. stretch plans Answer: C Operational plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months. 80. Which of the following is the most specific type of standing plan? A. policies B. procedures C. rules and regulations D. forecasts E. MBO plans Answer: C 81. Japanese-based Bandai, the world's third-biggest toymaker, plans to acquire several smaller companies in an effort to knock Mattel out of its first place in the industry. It will need to use _____________ in order to select toy manufacturers that are suitable for its portfolio. A. rational decision making B. trend analysis C. satisficing D. selection of optimal solutions E. framing constraints Answer: A Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Not all decision making is this logical. 82. _____________ is the process of choosing a solution from available alternatives. A. Decision making B. Problem identification C. Heuristics D. Multivariable selection E. Problem solving Answer: A 83. _____________ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. A. Problem identification B. Rational decision making C. Benchmarking D. Multivariable selection E. Keystoning Answer: B 84. Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from engaging in _____________ to determine how best to expand into those market. A. intuitive conditioning B. benchmarking C. decision making D. organizational design E. conditioned learning Answer: C Decision making is the process of choosing a solution from available alternatives. 85. Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee as people in the United States do and that it needs to change this habit, Starbucks has begun a _____________ process with problem identification. A. rational decision-making B. trend analysis C. satisficing D. selection of optimal solutions E. framing constraints Answer: A The first step in rational decision making is problem identification and definition. 86. The first step in rational decision making is to: A. conduct a systematic environmental analysis B. define the problem C. evaluate the alternatives D. choose the solutions E. create a management team Answer: B See Exhibit 4.6. 87. The European Union encourages companies to abandon national boundaries and offer the same products to all of the member countries. Allianz, Germany's largest insurance group, is considering converting from a German company to a European company. If it makes this decision rationally, it will first: A. create decision criteria based on national GNPs B. identify problems arising from tax and regulatory issues C. decide whether to expand to one nation at a time D. create a committee to make the final decision E. avoid the use of bounded rationality Answer: B Problem identification and definition is the first step in rational decision making. See Exhibit 4.6. 88. A _____________ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing). A. service gap B. benchmark C. condition of uncertainty D. minimum threshold E. problem Answer: E 89. Which of the following is NOT one of the six steps in the rational decision-making process? A. identify decision criteria B. weight the decision criteria C. compute the optimal decision D. evaluate the effectiveness of the decision E. generate alternative courses of action Answer: D See Exhibit 4.6. 90. Which of the following is one of the six steps in the rational decision-making process? A. choose a minimally acceptable alternative solution B. evaluate the effectiveness of the decision C. weight the criteria D. introduce the decision to those who will be impacted by it E. identify customer service gaps Answer: C See Exhibit 4.6. 91. The manager of a company that manufactures cleaning supplies has just learned the company will be boycotted by environmental action groups that contend its products are pollutants. In terms of the rational decision-making process, this manager has just: A. identified decision criteria B. framed the problem C. defined the problem D. generated alternative courses of action E. created a scenario Answer: C Problem identification and definition is the first step in the rational decision-making process. 92. Which of the following is one of the conditions that must be met in order for managers to solve a problem? A. Managers must be aware of the gap between the existing and desired states. B. Managers must have readily identifiable benchmarks. C. Managers must positively frame the problem. D. Managers must have a supportive organizational design. E. All of these conditions must be met. Answer: A 93. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time expanding globally and building its reputation on exacting production standards, it recognized this unauthorized bottler was a(n): A. standard of malfeasance B. problem C. benchmark D. keystone issue E. absolute criteria Answer: B A problem exists when there is a gap between a desired state--what managers want--and an existing state--the situation that the managers are facing. 94. In order for managers to solve a problem, they must: A. be aware of the gap between the existing and desired states B. be motivated to reduce this gap C. have the knowledge, skills, and abilities to solve the problem D. have the resources to solve the problem E. satisfy all of these conditions Answer: E 95. Once a manager who is engaged in rational decision making identifies the problem, he or she must then: A. identify decision criteria B. weight the criteria C. generate alternative courses of action D. engage in benchmarking E. identify service gaps Answer: A See also Exhibit 4.6. 96. _____________ for determining which event planner to select for a fundraiser to raise money to research a cure for arthritis would be experience, cost, and services provided. A. Valences B. Evaluative methods C. Planning resources D. Decision criteria E. Appraisal criteria Answer: D Decision criteria are used to guide judgments. 97. One method of weighting decision criteria uses _____________, which is a process where each decision criterion is compared directly to every other criterion. A. absolute comparisons B. relative comparisons C. valences D. minimum threshold rule E. comparative ranking scales Answer: B 98. In determining which country to expand into next, Starbucks looks at discretionary income, social class composition, what people do in their free time, annual coffee consumption, its competition, and the political issues. In terms of rational decision making, these would be termed: A. standards of evaluation B. keystone issues C. standards of rationality D. benchmarks E. decision criteria Answer: E Decision criteria are the standards used to guide judgments and decisions. 99. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time expanding globally and building its reputation on exacting production standards, in the _____________ stage of the rational decision-making process, Coke decided it had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it. A. problem definition B. criteria weighting C. generation of alternative courses of action D. identification of decision criteria E. finding the optimal solution Answer: C Coke is looking at possible courses of action that would solve the problem. 100. According to the rational decision-making model, when a manager generates alternative courses of action, he or she should: A. generate as many alternatives as possible B. generate only as many alternatives as needed to reach a decision C. generate as many alternatives as time will allow D. generate relatively few satisficing alternatives E. discover the ideal alternative courses of action Answer: A 101. _____________ are used to weight the criteria in the rational decision-making model (i.e., decide which criteria are more or less important). A. Dictionary rules B. Minimum threshold rules C. Formalized heuristics D. Absolute comparisons E. All of these Answer: D 102. With _____________, each decision criterion is compared to a standard or ranked on its own merits. A. absolute comparisons B. relative comparisons C. valences D. minimum threshold rule E. comparative ranking scales Answer: A 103. Which step in the rational decision-making model often takes much longer and is much more expensive than the other steps? A. defining the problem B. identifying decision criteria C. evaluating each alternative D. computing the optimal decision E. determining the satisficing solution Answer: C 104. As a company that manufactures janitorial cleaning supplies tries to develop more environmentally-friendly products that can clean as well as its current ones, the company's manager must assess various alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the _____________ step in the rational decision-making model. A. generate alternative courses of action B. evaluate each alternative C. compute the optimal decision D. satisfice each alternative E. bounded rationality Answer: B The company must evaluate each alternative ingredient. 105. When Coca-Cola discovered it had an unauthorized bottler selling Coke in the Colombian jungle, it used the rational decision-making process to find a solution. What do you know about the stage in which Coke evaluated its possible courses of action? A. Coke found this stage to be the least expensive of all the stages. B. Coke found this stage to be the most time-consuming of all the stages. C. This stage was the last stage in the process for Coca-Cola. D. The stage required Coke to use complex mathematical models. E. None of these statements accurately describe this stage. Answer: B 106. The final step in the rational decision-making process is computing the optimal decision by determining: A. each alternative's optimal value B. each alternative's average value C. the weights associated with each criterion D. the averages associated with each criterion E. the valence of each alternative Answer: A See also Exhibit 4.6. 107. In the final step of the rational decision-making model, _____________ are used to compute _____________. A. criterion weights; the average value for each alternative B. criterion ratings and weights; the average value for each alternative C. criterion ratings; the optimal value for each alternative D. criterion ratings and weights; the optimal value for each alternative E. optimal valences; criterion ratings Answer: D 108. In the rational decision-making process, each alternative's optimal value is determined by _____________ the rating for each criterion _____________, and then summing those scores for each alternative course of action. A. dividing; by a weighted percentage B. multiplying; by the average of all criteria C. subtracting; from the rating for the adjacent criteria D. adding; to the weight for that criterion E. multiplying; by the weight for that criterion Answer: E 109. Which of the following statements about rational decision making is true? A. In general, managers do not need to complete all six steps of the rational decision-making model to make effective decisions. B. Rational decision making is not done on a strategic or tactical level. C. The rational decision-making model describes the way decisions should be made. D. Bounded rationality does not influence how managers actually make decisions. E. All of these statements about rational decision making are true. Answer: C In general, managers who diligently complete all six steps of the rational decision-making model will make better decisions than those who don't. The way in which managers actually make decisions is more accurately described as bounded (or limited) rationality. Rational decision making is done on both a strategic and a tactical level. 110. Which of the following statements about rational decision making is true? A. In general, managers who diligently complete all six steps of the rational decision-making model will make better decisions than those who don't. B. Rational decision making can help managers choose optimal solutions that provide maximum benefits to their organizations. C. The rational decision-making model describes the way decisions should be made. D. The way in which managers actually make decisions is more accurately described as bounded (or limited) rationality. E. All of these statements about rational decision making are true. Answer: E 111. Marie-Helene de Taillac is a well-known European designer of understated, very delicate jewelry. Once she determined that further growth was impossible without changing how she distributed her product, she decided to open her own retail outlet to sell her product rather than letting department stores sell it. Since she made the decision without really examining the costs involved in implementing her decision, she has engaged in _____________ behavior. A. benchmarking B. laddering C. satisficing D. maximizing E. leapfrogging Answer: C She chose an alternative solution that was "good enough.” 112. Rational decision making: A. has five steps that must be performed in order to identify solution that will be satisficing B. ends with the selection of an optimal solution that provides maximum benefits to the organization C. is conflict-free D. is not concerned about costs E. begins with the establishment of a budget Answer: B 113. As mangers try to take a rational approach to decision making, they must contend with bounded rationality, which means they are restricted by: A. real-world constraints B. benchmarking C. methodology validity D. information overload E. all of these Answer: A 114. Japanese-based Bandai, the world's third-biggest toymaker, plans to acquire several smaller companies in an effort to knock Mattel out of its first place in the industry. Due to _____________, it will not have access to all of the information it would need to make a 100% satisfactory selection of the toy manufacturers it needs to acquire to reach its goal. A. bounded rationality B. satisficing standards C. resource maximization barriers D. rational munificence E. synergistic issues Answer: A Real-world constraints limit Bandai's decision-making capabilities. 115. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time expanding globally and building its reputation on exacting production standards, Coke decided it had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it. Legal action was not feasible due to the differences in ethical and legal environments between the United States and Colombia. In this case, bounded rationality was created by: A. real-world constraints B. incomplete and imperfect information C. Coke's own limited decision-making capabilities D. information overload E. all of these Answer: A The inadvisability of legal action was a constraint on its decision-making abilities. 116. _____________ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. A. Maximizing B. Optimizing C. Availability bias D. Negative frame E. Satisficing Answer: E 117. In making rational decision, most managers _____________ rather than _____________. A. maximize; satisfice B. optimize; maximize C. satisfice; maximize D. optimize; idealize E. maximize; optimize Answer: C 118. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time expanding globally and building its reputation on exacting production standards, Coke decided it had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it. Legal action was not feasible due to unfamiliarity with the ethical and legal environments in Colombia. Coke’s desire to build a global brand prevented it from ignoring the Colombian bottler. Because of _____________, legal action was not a viable solution to the problem. A. bounded rationality B. satisficing standards C. resource maximization barriers D. rational munificence E. synergistic issues Answer: A Real-word constraints limited Coke’s decision-making capabilities. 119. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time expanding globally and building its reputation on exacting production standards, Coke decided it had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it. Legal action was not feasible due to unfamiliarity with the ethical and legal environments in Colombia. Coke’s desire to build a global brand prevented it from ignoring the Colombian bottler. Coke had to engage in _____________ and buy the bottler. A. satisficing behavior B. making an optimal decision C. positive framing D. maximizing the solution E. eliminating uncertainty Answer: A Coke chose a “good enough” solution to its problem due to bounded rationality. 120. Groupthink occurs in: A. newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions B. groups in which members have dissimilar backgrounds C. standing committees whose members are under no pressure to agree D. groups whose members are elected to serve as figureheads E. highly cohesive groups where there is a great deal of pressure to agree with each other Answer: E 121. Groupthink is most likely to occur when: A. the group is leaderless B. the group is culturally diverse C. there is an established procedure for problem solving D. the group is insulated from others with different perspectives E. any of these conditions occur Answer: D Groupthink occurs when the group leader begins by expressing a strong preference for a particular decision. Groupthink occurs when members have similar cultural backgrounds. The absence of an established procedure leads to groupthink. 122. Which of the following steps in the decision-making process can be done better by groups than by individuals? A. defining the problem and generating alternatives B. creating cohesive solutions to organization problems as a whole C. creating weighted alternatives and coping with bounded rationality D. dealing with the problems associated with bounded rationality E. evaluating how optimal the solution to the problem is and comparing it to other courses of action Answer: A 123. Which of the following statements explains why groups can produce better solutions than individuals in decision-making situations? A. Formal groups have no group norms. B. Groups cannot experience information overload. C. Groups become committed to solutions they help choose. D. Groups take additional time to carefully evaluate all options. E. All of these are reasons why groups can produce better solutions than individuals in a decision-making situation. Answer: C 124. Which of the following statements about group decision making is true? A. The pitfalls of group decision making are inevitable. B. Managers cannot overcome the problems associated with group decision making. C. One potential problem with group decision making is time availability. D. Ethnocentrism can be used to overcome the pitfalls of group decision making. E. Structured conflict is one of the primary pitfalls of group decision making. Answer: C Managers have techniques they can use to prevent the problems of group decision making. One of these techniques is structured conflict. Cultural diversity can be used to overcome groupthink. 125. _____________ is the emotional reaction that can occur when disagreements become personal rather than professional. A. A-type conflict B. C-type conflict C. Emotive empowerment D. Organizational disharmony E. Norm disruption Answer: A 126. The _____________ approach to decision making is a method in which an individual or a subgroup is assigned the role of a critic. A. dialectical inquiry B. groupthink C. devil's advocacy D. Delphi E. dyadic communications Answer: C 127. Volkswagen has decided to cut costs by eliminating 5,000 jobs annually until its business has been restored to profitability--a goal that could take as many as ten years to accomplish. Union representatives have responded to this decision with emotional outbursts of anger. VW has created: A. a-type conflict B. c-type conflict C. emotive empowerment D. organizational disharmony E. norm disruption Answer: A A-type conflict is the emotional reaction that can occur when disagreements become personal rather than professional. 128. The first step in a devil's advocacy program is to: A. select a devil's advocate B. create decision criteria C. gather all the relevant information D. establish a numeric value for each alternative E. generate a potential solution Answer: E 129. Studies of the proper use of the devil's advocacy and dialectical inquiry approaches have shown that these methods: A. lead to more a-type conflict B. lead to improved decision mentoring C. lead to less acceptance of decisions once they have been made D. introduce c-type conflict into the decision-making process E. eliminate all organizational conflict Answer: D 130. Which of the following is an approach to structured conflict? A. group intervention B. nominal group technique C. dialectical inquiry D. electronic brainstorming E. Delphi technique Answer: C 131. Because it is a time-consuming, labor-intensive, and expensive process, _____________ is best reserved for important long-term issues and problems. A. the Delphi technique B. brainstorming C. the devil's advocacy D. the dialectical inquiry E. keystoning Answer: A 132. The _____________ is a decision-making method in which a panel of experts responds to questions and to each other until an agreement is reached on how a specific issue should be handled. A. dialectical inquiry technique B. nominal group technique C. Delphi technique D. electronic brainstorming technique E. feedback method Answer: C 133. The nominal group technique improves group decision making by: A. requiring the selection of co-leaders to prevent member dominance B. providing predetermined group norms C. eliminating group cohesiveness D. decreasing a-type conflict E. encouraging all members to have an equal voice in the decision-making process Answer: D 134. The first step in the Delphi technique is to: A. appoint a mediator B. assemble a panel of experts C. generate several possible solutions D. set up a groupthink E. decrease a-type conflict Answer: B 135. The _____________ is a method for group decision making that ensures each member’s contributions are independent and are considered and discussed by the group. A. nominal dialectical inquiry B. sequential presentation C. open door technique D. stepladder technique E. incremental approach Answer: D 136. Which of the following statements about the stepladder technique is true? A. When used with rational decision making, the stepladder technique improves individual decision-making capabilities. B. The stepladder technique begins with discussion between two group members, who share their thoughts, ideas, and recommendations before jointly making a tentative decision. C. Another name for the stepladder technique is the dialectical inquiry method of goal setting. D. The stepladder technique eliminates bounded rationality from decision making. E. The stepladder technique is ineffective in group decision making because it inevitably results in groupthink. Answer: B The stepladder technique is a method for group decision making that ensures each member’s contributions are independent and are considered and discussed by the group. 137. Which of the following resources is most important to the success of the stepladder technique of decision making? A. production resources B. atmosphere C. time D. information E. labor Answer: C For this technique to work, group members must have enough time to consider the problem on their own, to present their ideas to other members, and to discuss all ideas and alternatives. 138. According to the What Really Works, "Devil's Advocacy and Dialectical Inquiry," A. most of the decisions managers face are well-structured problems that recur frequently under conditions of certainty B. most of the decisions managers face are less than optimal due to groupthink C. most of the decisions managers face occur under conditions of risk D. very few of the decisions managers face are well-structured problems that recur frequently under conditions of certainty E. most decisions are made optimally if both the devil's advocacy and dialectical inquiry techniques are used Answer: A 139. Which of the following is NOT one of the rules for effective brainstorming? A. The more ideas, the better. B. Select an open-minded group leader. C. All ideas are acceptable. D. Criticism is not allowed. E. Use other members’ ideas to come up with more ideas. Answer: B 140. Electronic brainstorming, in which group members use computers to communicate and generate alternative solutions, overcomes the disadvantages associated with: A. dialectical inquiry B. the nominal group technique C. the Delphi technique D. face-to-face brainstorming E. synergistic inquiry Answer: D 141. Which of the following is the most effective method for generating alternatives? A. individual analysis B. Delphi technique C. face-to-face brainstorming D. electronic brainstorming E. evaluation comprehension Answer: D 142. Which of the following is a disadvantage of face-to-face brainstorming that is overcome by electronic brainstorming? A. assimilation blocking B. production blocking C. delegation errors D. group norm evaluation E. negative valence Answer: B One example of production blocking is having to wait your turn to share your idea. 143. Refer to What Would You Do? How can Ford benefit from planning? A. Planning encourages employees to engage in behaviors directly related to goal accomplishment. B. Planning encourages employees to work harder for extended periods of time. C. Planning encourages the development of task strategies. D. Planning benefits- both companies and individuals. E. Planning does all of the above. Answer: E Planning offers several important benefits: intensified effort, persistence, direction, and creation of task strategies. 144. Refer to What Would You Do? Unfortunately, for Ford planning is not a cure-all. Which of the following best describes potential problems associated with planning? A. the acceptance of satisficing solutions B. a false sense of certainty based on faulty assumptions C. the inability of organizational line personnel to accept the long-term benefit of planning D. the requirement for expensive employee training before plans can be effectively implemented E. outsourcing Answer: B There are three potential pitfalls for planners: being slow to adapt to changes in their environment, making incorrect assumptions about the future, and being too detached from implementing the plans. 145. Refer to What Would You Do? Ford would use _____________ to determine what specific jobs can be eliminated and/or combined and how the number of Ford employees will be reduced. A. short-term strategies B. proximal goals C. distal goals D. action plans E. subordinate objectives Answer: D An action plan lists specific steps (how), people (who), resources (what), and time period (when) for accomplishing a goal. 146. Refer to What Would You Do? Ford has set _____________ goals designed to increase sales, reduce its costs, and improve quality. A. options-based B. process-based C. proximal D. related E. distal Answer: E Distal goals are long-term or primary goals. 147. Refer to What Would You Do? Which of the following can be used to give Ford flexibility in an uncertain environment? A. conditioned learning B. dialectical learning C. the elimination of substitutable competition D. slack resources E. the threat of organizational chaos Answer: D Slack resources are a cushion of extra resources that can be used with options-based planning to adapt to unanticipated change, problems, or opportunities. SHORT ANSWER 1. What is planning? What are its benefits? Answer: Planning is choosing a goal and developing a method to achieve that goal. Planning is one of the best ways to improve organizational and individual performance. It encourages people to work harder (intensified effort), to work hard for extended periods (persistence), to engage in behaviors directly related to goal accomplishment (directed behavior), and to think of better ways to do their jobs (task strategies). But most important, companies that plan have larger profits and faster growth than companies that don't plan. 2. Briefly describe the benefits and pitfalls of planning. Answer: Planning refers to choosing a goal and developing a method or strategy to achieve that goal. Planning has numerous benefits. It is one of the best ways to improve both organizational and individual performance. It encourages people to work harder (intensified effort), to work hard for extended periods (persistence), to engage in behaviors directly related to goal accomplishment (directed behavior), and to think of better ways to do their jobs (task strategies). But most important, companies that plan have larger profits and faster growth than companies that don't plan. However, planning also has three potential pitfalls. Companies that are overly committed to their plans may be slow to adapt to changes in their environment. Planning is based on assumptions about the future, and when those assumptions are wrong, plans are likely to fail. Finally, planning can fail when planners are detached from the implementation of plans. 3. List the steps in effective planning. Answer: Planning consists of a total of five steps: (a) setting goals, (b) developing commitment to the goals, (c) developing effective action plans, (d) tracking progress toward goal achievement, and (e) maintaining flexibility in planning. 4. Identify and explain the purpose of the S.M.A.R.T. guidelines. Answer: One way of writing effective goals for yourself, your job, or your company is to use the S.M.A.R.T. guidelines. S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely. The purpose of the S.M.A.R.T. guidelines is to give managers an easy-to-remember acronym that can help them to set effective goals during their stressful and busy daily activities. 5. Identify three ways of increasing goal commitment. Which one is most commonly used by managers? Answer: Managers can bring about goal commitment in three ways. The first, and most popular approach, is to set goals participatively. Rather than assigning goals to workers, managers and employees choose goals together. The second technique is making the goal public, by having individuals and work units tell others about their goals. The third way of increasing goal commitment is to obtain top management's support. Top management can show support for a plan or program by providing funds, speaking publicly about the plan, or participating in the plan itself. 6. Briefly identify and explain the two accepted methods of tracking progress toward goal achievement. Answer: There are two accepted methods of tracking progress. The first is to set proximal goals and distal goals. Proximal goals are short-term goals or subgoals, whereas distal goals are long-term or primary goals. The idea behind setting proximal goals is that they may be more motivating and rewarding than waiting to achieve far-off distal goals. The second method of tracking progress is to gather and provide performance feedback. Regular, frequent performance feedback allows workers and managers to track their progress toward goal achievement and make adjustments in effort, direction, and strategies. 7. Identify the four basic steps in the management by objectives process. Answer: Management by objectives is a four-step process in which managers and employees (a) discuss possible goals; (b) participatively select goals; (c) jointly develop tactical plans; and (d) meet regularly to review progress toward goal accomplishment. 8. List and briefly describe the three kinds of operational plans. Answer: The three kinds of operational plans are (a) single-use plans, which cover unique, one-time-only events; (b) standing plans, which save managers time, because they are created once and then used repeatedly to handle frequently recurring events, and (c) budgets, which are quantitative plans, through which managers decide how to allocate available money to best accomplish company goals. 9. List and briefly describe the three kinds of standing plans, and comment on their relative specificity. Answer: The three types of standing plans are policies, procedures, and rules and regulations, which increase in specificity in that order. Policies are the least specific type of standing plan. They indicate the general course of action that company managers should take in response to a particular event or situation. Procedures are more specific than policies, because they indicate the series of steps that should be taken in response to a particular event. Rules and regulations are even more specific than procedures, because they specify what must happen or not happen. They describe precisely how a particular action should be performed. 10. Define the terms decision making and rational decision making. Briefly differentiate between them. Answer: Decision making is the process of choosing a solution from available alternatives. Rational decision making is a systematic process in which managers define problems, evaluate alternatives, and choose optimal solutions that provide maximum benefits to their organizations. Thus, rational decision making is more structured, and would be one of the approaches that might be used in the more general process of decision making. 11. List the six steps in the rational decision-making process. Answer: The six steps in the rational decision-making process are (1) define the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision. See Exhibit 4.6. 12. What three conditions must exist before managers begin the rational decision-making process? Answer: In order for managers to make decisions to solve problems, three things are necessary. First, they have to be aware of the gap between the desired and existing states in the situation that they are facing. That is, they have to know there is a problem before they can begin solving it. Second, they have to be motivated to reduce the gap. Finally, they must have the knowledge, skills, abilities, and resources to fix the problem. 13. Briefly explain what decision criteria are. Identify two approaches that may be used to weight these criteria. Answer: Decision criteria are the standards used to guide judgments and decisions. Typically, the more criteria that a potential solution meets, the better that solution should be. After identifying decision criteria, the next step in the rational decision-making process is deciding which criteria are more or less important. While there are numerous mathematical models for weighting decision criteria, all require the decision maker to provide an initial ranking of the decision criteria. Some use absolute comparisons, in which each criterion is compared to a standard or ranked on its own merits. Another method is relative comparisons, in which each criterion is compared directly to every other criterion. 14. Identify and explain the step in the rational decision-making process that is based upon a mathematical procedure. Answer: There is one step in the rational decision-making process that is based upon a mathematical procedure. It is the final step, "computing the optimal decision." This is done in order to determine each alternative's optimal value. Rational managers then choose the alternative with the highest optimal value as their decision. The optimal values are determined by multiplying the rating for each criterion (step 5) by the weight for that criterion (step 3), and then summing those scores for each alternative course of action that have been generated (step 4). 15. Briefly explain what is meant by bounded rationality. List the three reasons that typically prevent managers from making rational decisions. Answer: The way in which managers actually make decisions in the real world is more accurately described as bounded (or limited) rationality. Bounded rationality means that managers try to take a rational approach to decision making, but are restricted by real-world constraints, incomplete and imperfect information, and their own limited decision-making capabilities. 16. Briefly identify the two types of conflict that may spontaneously occur in group decision-making situations. Comment on the probable effectiveness of group decisions given each type of conflict. Answer: The two types of conflict that might spontaneously occur in a group are c-type conflict and a-type conflict. C-type conflict, or cognitive conflict, focuses on problem- and issue-related differences of opinion. In c-type conflict, group members disagree because their different experiences and expertise lead them to different views of the problem and its potential solutions. However, c-type conflict is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution. By contrast, a-type conflict, meaning "affective conflict," refers to the emotional reactions that can occur when disagreements become personal rather than professional. A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy. So, unlike c-type conflict, a-type conflict undermines team effectiveness by preventing teams from engaging in the kinds of activities, such as c-type conflict, that are critical to team effectiveness. Thus, c-type conflict can enhance the quality of group decisions, while a-type conflict will probably reduce the effectiveness of those decisions. 17. Briefly explain how structured conflict can be used to improve group decision making. Answer: The two types of conflict that might spontaneously occur in a group are c-type conflict and a-type conflict. C-type conflict, or cognitive conflict, focuses on problem- and issue-related differences of opinion. In c-type conflict, group members disagree because their different experiences and expertise lead them to different views of the problem and its potential solutions. However, c-type conflict is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution. By contrast, a-type conflict, meaning "affective conflict," refers to the emotional reactions that can occur when disagreements become personal rather than professional. A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy. Group decisions work best when group members encourage c-type conflict, and don't work as well when groups become mired in a-type conflict. The devil's-advocacy and dialectical-inquiry approaches improve group decisions because they bring structured c-type conflict into the decision-making process. By contrast, the nominal group technique and the Delphi technique both improve decision making by reducing a-type conflict through limited interactions between group members. 18. Briefly compare and contrast electronic brainstorming with face-to-face brainstorming. Answer: Both face-to-face brainstorming and electronic brainstorming are techniques designed to facilitate the generation of a large number of alternative solutions by helping group members to build on each other's ideas. Both techniques require group members to present as many ideas as possible, including those that might seem wild and crazy, without any criticism or evaluation. Face-to-face brainstorming suffers from two disadvantages: production blocking (in which a member must wait to share an idea) and evaluation apprehension (in which fear of what others might think causes holding back of ideas). Both of these disadvantages are overcome by electronic brainstorming, in which group members use computers to communicate and generate alternative solutions. Studies show that electronic brainstorming is much more effective than face-to-face brainstorming. ESSAY 1. Describe a planning effort that you are acquainted with (either through reading or personal experience), and evaluate how the benefits and pitfalls of planning described in the chapter were manifest in that case. That is to say, you should explain how, if at all, the benefits of planning described in the text were manifest in your case. Similarly, you should identify any of the significant pitfalls of planning that might have been manifest in your case. Comment on the extent to which your case seems to substantiate or refute the claims made for the benefits and pitfalls of planning, as described in the text. Answer: Planning is defined as choosing a goal and developing a method or strategy to achieve that goal. Student case examples should clearly identify both the goal of the planning effort and the method to be used to achieve it. Better answers will appropriately integrate more of the benefits and pitfalls of planning, which are summarized below. Adequate answers will simply restate text examples. Better answers will be original, appropriate applications of the text material applied to a case or scenario not presented in the text or class lecture. Either way, answers should clearly indicate how the events and outcomes in the case that is presented either substantiate or refute the statements made about the benefits and pitfalls of planning in the text. Planning has numerous benefits. It is one of the best ways to improve both organizational and individual performance. It encourages people to work harder (intensified effort), to work hard for extended periods (persistence), to engage in behaviors directly related to goal accomplishment (directed behavior), and to think of better ways to do their jobs (task strategies). But most important, companies that plan have larger profits and faster growth than companies that don't plan. However, planning also has three potential pitfalls. Companies that are overly committed to their plans may be slow to adapt to changes in their environment. Planning is based on assumptions about the future, and when those assumptions are wrong, plans are likely to fail. Finally, planning can fail when planners are detached from the implementation of plans. 2. Cheryl Trump, of New York City, is the daughter of a well-known financier. She is currently in her first year of college, but has decided that she definitely wants to earn an MBA, as soon as possible after earning her four-year college degree. Outline the five steps in effective planning. Use the guidelines for effective planning to develop an appropriate plan for Cheryl. Answer: Planning consists of a total of five steps: (a) setting goals, (b) developing commitment to the goals, (c) developing effective action plans, (d) tracking progress toward goal achievement, and (e) maintaining flexibility in planning. In terms of (a) setting goals, goals need to be specific and challenging in order to direct behavior and increase effort. Cheryl's present goal is specific, but could be made more challenging by targeting any one of the top 25 MBA programs in the country as her goal. In terms of (b) developing commitment to her goal, we can assume that if Cheryl has selected this goal on her own (i.e., participatively), and understands all of its implications, then she is probably already sufficiently committed to it at a personal level. She might enhance this commitment by making a public statement of her goal and soliciting (and receiving) support from her parents in achieving it. In terms of (c) developing effective action plans, Cheryl should research the MBA degree and how it contributes to career success. Thereafter, she should draw up a concrete written plan, outlining the specific steps, people, resources, and time period for accomplishing her goal. Her research will probably lead her to conclude that she should gain several years of work experience in her desired industry before enrolling in an MBA program. In terms of (d) tracking progress toward goal achievement, Cheryl should set a series of integrated proximal and distal goals, where the proximal goals (e.g., maintain a high GPA, arrange for an internship while in college, network as much as possible to develop connections for a later job search) and clearly related subgoals will move her forward to her distal (long-term or primary) goals. Examples of distal goals might be, obtaining an entry-level position in finance at a major corporation upon graduation, and then obtaining company support to pursue a top-flight MBA degree within five years of beginning work. Further, she should utilize her grades as well as contact with her professors while in college to solicit feedback and evaluate her progress, and use her performance appraisals and other contacts as sources of feedback once she begins working full-time after graduation. Finally, in terms of (e) maintaining flexibility in planning, Cheryl should be ready to revise her overall plan, if, at any point along the way, insurmountable obstacles become apparent. For example, if it should become clear that she cannot earn a high GPA in college, then she should lower her sights and shoot for a less prestigious MBA program. 3. Identify and briefly define two methods that organizations can use to maintain flexibility as they plan. Then explain how the two methods differ from traditional planning. Answer: Two methods that organizations can use to maintain flexibility as they plan are options-based planning and learning-based planning. The goal of options-based planning is to keep options open by making small, simultaneous investments in many options or plans. Then when one or a few of these plans emerge as likely winners, you invest even more in these plans while discontinuing or reducing investment in the others. Learning-based planning assumes that action plans need to be continually tested, changed, and improved as companies learn better ways of achieving goals. Because the purpose is constant improvement, learning-based planning not only encourages flexibility in action plans, but it also encourages frequent reassessment and revision of organizational goals. Both of these approaches differ significantly from traditional planning. In part, options-based planning is the opposite of traditional planning. For example, the purpose of a traditional action plan is to commit people and resources to a particular course of action. However, the purpose of options-based planning is to leave those commitments open. Holding options open gives you choices and those choices give you flexibility. In a parallel manner, learning-based planning makes different assumptions than traditional planning. Traditional planning assumes that initial action plans are correct and will lead to success. However, learning-based planning assumes that action plans need continual testing and revision. This emphasis on constant improvement promotes flexibility in action plans that would not otherwise exist. 4. Compare and contrast the planning done at the top, middle, and bottom levels of an organization. Answer: Planning at all levels of management must follow the five steps in effective planning (i.e., (a) setting goals, (b) developing commitment to the goals, (c) developing effective action plans, (d) tracking progress toward goal achievement, and (e) maintaining flexibility in planning). Similarly, planning at all three levels of management is interrelated. That is, proper planning requires that the goals at the bottom and middle of the organization support the objectives at the top of the organization. However, there are significant differences in the objectives and timetables of the planning process at the top, middle, and lower levels of the organization. Top management develops strategic plans that indicate how a company will serve customers and position itself against competitors over a two- to five-year period. Strategic planning starts with the creation of an organizational vision and mission. Middle managers use techniques like management by objectives to develop tactical plans that direct behavior, efforts, and priorities over the next six months to two years. Finally, lower-level managers develop operational plans that guide daily activities in producing or delivering an organization's products and services. Operational plans typically span periods ranging from 30 days to six months. There are three kinds of operational plans: single-use plans, standing plans (policies, procedures, and rules and regulations), and budgets. Thus, all three levels of planning should follow the same steps, but the objectives and timetables are different at each level, and plans at all levels must be carefully developed to ensure their effective interdependence in achieving overall organizational goals. 5. Describe the management by objectives (MBO) process. Which type of manager would be responsible for MBO? What is the probable value of MBO to managers? Answer: Management by objectives is a management technique often used by middle managers to develop and carry out tactical plans. Middle management is responsible for developing and carrying out tactical plans to accomplish the organization's mission. Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. Whereas strategic plans and objectives are used to focus company efforts over the next two to five years, tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two years. Management by objectives, or MBO, is a four-step process in which managers and their employees (1) discuss possible goals, (2) participatively select goals that are challenging, attainable, and consistent with the company's overall goals, (3) jointly develop tactical plans that lead to accomplishment of tactical goals and objectives, and (4) meet regularly to review progress toward accomplishment of those goals. When done right, MBO is an extremely effective method of tactical planning. The results from 70 different organizations strongly support the effectiveness of management by objectives. On average, companies that effectively use MBO will outproduce those that don't use MBO by an incredible 44.6 percent! And in companies where top management is committed to MBO, that is, where objective setting begins at the top, the average increase in performance is an even more astounding 56.5 percent. By contrast, when top management does not participate in or support MBO, the average increase in productivity drops to 6.1 percent. In all, though, there is a 97 percent chance that companies that use MBO will outperform those that don't! Thus, MBO can make a very big difference to the companies that use it. It should be noted that the performance of individual managers using MBO will probably be better in organizations where top management participates in and supports MBO. However, even if top management support is absent, the performance of individual managers is likely to be higher with MBO than without it. 6. Explain the difference between decision making and rational decision making from the standpoint of managerial effectiveness. Answer: Decision making is the general process of choosing a solution from available alternatives. As such, the defining characteristic is choice. No parameters are placed on the quality of the decision to be achieved, or on the techniques to be used in making the choice. It may be either a structured or an unstructured procedure. Rational decision making, on the other hand, is a specific, structured approach to decision making that can be particularly valuable to managers. Rational decision making is a systematic process in which managers define problems, evaluate alternatives, and choose optimal solutions that provide maximum benefits to their organizations. Thus, rational decision making is more structured, and imposes upon the process the parameters of systematization (i.e., following a series of six steps), evaluation of alternatives (against specific criteria), and selection (or "choice") of an alternative on the basis of optimization (i.e., obtaining the best possible outcome for the organization, in terms of the defined decision criteria). In general, managers who diligently complete all six steps of the rational decision-making model will make better decisions than those who don't. However, it's highly doubtful that rational decision making can always help managers "choose optimal solutions that provide maximum benefits to their organizations." The terms "optimal" and "maximum" suggest that rational decision making leads to perfect or near-perfect decisions. Of course, for managers to make perfect decisions, they have to operate in perfect worlds with no real-world constraints. Since this is not the case, there are a variety of limits to rational decision making. These include constraints on decision making ability imposed by the real world, incomplete and imperfect information, and the managers’ own limited decision-making capabilities (as described in the bounded rationality model). 7. Discuss the role and appropriateness of group decision making in relation to individual decision making. Identify the disadvantages of group decision making over individual decision making, and specify some techniques that can be used to overcome these disadvantages. Answer: When done properly, group decision making can lead to much better decisions than individual decision making. In fact, numerous studies show that groups consistently outperform individuals on complex tasks. Groups can do a much better job than individuals in two important steps of the decision-making process: defining the problem and generating alternative solutions. Four reasons explain why. First, because group members usually possess different knowledge, skills, abilities, and experiences, groups will be able to view problems from multiple perspectives. Second, groups can find and access much more information than can individuals. Third, the increased knowledge and information available to groups make it easier for them to generate more alternative solutions. Studies show that generating lots of alternative solutions is a critical part of improving the quality of decisions. Fourth, if groups are involved in the decision-making process, group members will be more committed to making chosen solutions work. However, group decisions suffer from some disadvantages that do not hinder individual decision making. These problems include groupthink, slowness, discussions dominated by just a few individuals, and unfelt responsibility for decisions. Group decisions work best when group members encourage c-type conflict (i.e., cognitive conflict, which focuses on problem- and issue-related differences of opinion), and don't work as well when groups become mired in a-type conflict (i.e., affective conflict, which refers to the negative emotional reactions that can occur when disagreement focuses on individual- or personality-oriented issues). Specific techniques can be used to improve group decision making and avoid its disadvantages. The devil's-advocacy and dialectical-inquiry approaches improve group decisions because they bring structured c-type conflict into the decision-making process. By contrast, the nominal group technique and the Delphi technique both improve decision making by reducing a-type conflict through limited interactions between group members. The stepladder technique improves group decision making by making sure that each group member's contributions are independent by adding each group member to the discussion one at a time. Finally, because it overcomes the problems of production blocking and evaluation apprehension, electronic brainstorming is a more effective method of generating alternatives than face-to-face brainstorming. Thus, groups are most appropriate for use in decision making (1) when dealing with complex tasks, particularly for use in defining the problem and generating alternative solutions; (2) when those groups are properly managed in order to minimize the potential problems associated with group decision making. 8. Define the two types of conflict that may spontaneously occur in group decision-making situations. List and explain the approaches to structured conflict that may help to enhance the quality of group decisions. Be sure to comment on the research results evaluating their effectiveness. Answer: Most people view conflict negatively. However, the right kind of conflict can lead to much better group decision making. C-type conflict, or cognitive conflict, focuses on problem- and issue-related differences of opinion. In c-type conflict, group members disagree because their different experiences and expertise lead them to different views of the problem and its potential solutions. However, c-type conflict is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution. By contrast, a-type conflict, meaning "affective conflict," refers to the emotional reactions that can occur when disagreements become personal rather than professional. A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy. So, unlike c-type conflict, a-type conflict undermines team effectiveness by preventing teams from engaging in the kinds of activities, such as c-type conflict, that are critical to team effectiveness. Devil's advocacy and dialectical inquiry are two methods that introduce structured c-type conflict into the group decision-making process. Devil's advocacy creates c-type conflict by assigning an individual or a subgroup the role of critic. This individual criticizes and questions a proposed solution, in order to help decision makers decide whether to use, change, or not use the original proposed solution. Dialectical inquiry creates c-type conflict by forcing decision makers to state the assumptions of a proposed solution (a thesis) and to then generate a solution that is the opposite (antithesis) of the proposed solution. It takes the form of a debate between advocates of the thesis and antithesis, and similarly helps decision makers decide whether to use, change, or not use the original proposed solution. When properly used, both the devil's advocacy and dialectical inquiry approaches introduce c-type conflict into the decision-making process. Further, contrary to the common belief that conflict is bad, studies show that these methods lead to less a-type conflict, improved decision quality, and greater acceptance of decisions once they have been made. In meta-analytic research on the effectiveness of these techniques, each technique has been compared to decisions obtained by following experts' advice. While the estimated probabilities of success may seem small (55 percent for dialectical inquiry and 58 percent for devil's advocacy), they very likely understate the effects of both techniques. In other words, the probabilities of success would have been much larger if both techniques had been compared to unstructured decision-making processes, which are typical of the average group or manager's approach. Test Bank for Effective Management Chuck Williams 9781285866246