Types of Decisions: A Comprehensive Guide for Effective Decision-Making

Question 1

A key difference between routine and operational decisions lies in their frequency. Which of the following statements accurately reflects this distinction?

Accepted Answer

Routine decisions are made more frequently than operational decisions.

Answer

Operational decisions are made more frequently than routine decisions.

Answer

The frequency of decision-making is the same for both routine and operational decisions.

Answer

The frequency of decision-making is not a factor that distinguishes routine from operational decisions.

Question 2

When making decisions, which factor is essential to consider?

Accepted Answer

Values and ethics

Answer

Time constraints

Answer

Financial status

Answer

Availability of information

Question 3

In the analysis and evaluation stage of decision-making, which steps are crucial?

Accepted Answer

Identifying and assessing various options

Answer

Defining the issue and gathering data

Answer

Finalizing and implementing the decision

Question 4

Which type of decision is characterized by high importance, long-term impact, and infrequent occurrence within an organization?

Accepted Answer

Strategic

Answer

Routine

Answer

Programmed

Answer

Non-programmed

Question 5

What is the term for the stage in problem-solving where alternative solutions are identified and assessed?

Accepted Answer

Solution generation

Answer

Problem definition

Answer

Solution evaluation

Answer

Decision implementation

Question 6

What is the final stage in the decision-making process?

Accepted Answer

Solution implementation

Answer

Problem definition

Answer

Solution evaluation

Answer

Decision documentation

Question 7

Why is it crucial to take external factors into account when making decisions?

Accepted Answer

To ensure decisions are well-informed and comprehensive

Answer

To avoid wasting time and resources

Answer

To reduce stress and anxiety

Answer

To simplify the decision-making process

Question 8

Which characteristic is NOT associated with routine decisions?

Accepted Answer

High level of uncertainty

Answer

Repetitive nature

Answer

Minimal analysis required

Answer

Delegation to others

Question 9

Which type of decision involves novel and intricate challenges?

Accepted Answer

Non-programmed decisions

Answer

Programmed decisions

Answer

Strategic decisions

Answer

Tactical decisions

Question 10

Which problem-solving technique involves dividing a problem into smaller, more manageable components?

Accepted Answer

Decomposition

Answer

Lateral thinking

Answer

Mind mapping

Answer

Brainstorming

Question 11

Which cognitive bias refers to the tendency to favor information that aligns with our existing beliefs?

Accepted Answer

Confirmation bias

Answer

Halo effect

Answer

Availability heuristic

Answer

Hindsight bias

Question 12

Which decision-making style emphasizes participation and collaboration?

Accepted Answer

Democratic

Answer

Autocratic

Answer

Consultative

Answer

Laissez-faire

Question 13

Which problem-solving tool can be used to graphically represent and analyze complex problems?

Accepted Answer

Flowchart

Answer

Histogram

Answer

Scatterplot

Answer

Pie chart

Question 14

Which type of decision is typically made in response to sudden or unforeseen events?

Accepted Answer

Non-programmed decision

Answer

Routine decision

Answer

Strategic decision

Answer

Programmed decision

Question 15

Which factor does NOT typically influence decision-making?

Accepted Answer

Astrological signs

Answer

Personal beliefs

Answer

Available information

Answer

Social norms

Question 16

What is the initial stage of the rational decision-making process?

Accepted Answer

Gathering information

Answer

Generating alternatives

Answer

Evaluating alternatives

Answer

Implementing the decision

Question 17

What is the key distinction between routine and non-routine decisions?

Accepted Answer

Routine decisions occur frequently, while non-routine decisions occur less often

Answer

Routine decisions require more data, while non-routine decisions require less data

Answer

Routine decisions are made by lower-level employees, while non-routine decisions are made by higher-level employees

Answer

Routine decisions have a minor organizational impact, while non-routine decisions have a significant organizational impact

Question 18

Which of the following is NOT an advantage of effective decision-making?

Accepted Answer

Guaranteed success

Answer

Increased efficiency

Answer

Stimulated innovation

Answer

Reduced costs

Question 19

How do the advantages and disadvantages of different decision types affect the choice of an appropriate decision-making strategy?

Accepted Answer

Understanding the advantages and disadvantages of different decision types helps decision-makers choose the best approach for a given situation.

Answer

Decision-makers should not always avoid decisions with both advantages and disadvantages.

Answer

The most effective decision-making strategy is not always the one with the most advantages.

Question 20

Which decision type involves considerable uncertainty and extensive research?

Accepted Answer

Non-programmed decision

Answer

Routine decision

Answer

Strategic decision

Answer

Programmed decision

Question 21

What is the initial step in the decision-making process?

Accepted Answer

Problem identification

Answer

Information gathering

Answer

Evaluation of alternatives

Answer

Decision-making

Question 22

What is the fundamental distinction between a programmed and a non-programmed decision?

Accepted Answer

Level of uncertainty

Answer

Frequency of occurrence

Answer

Time available for decision-making

Answer

Number of people involved

Question 23

Which of the following is NOT a common difficulty encountered in decision-making?

Accepted Answer

Ample resources

Answer

Lack of information

Answer

Time constraints

Answer

Personal biases

Question 24

What is the primary aim of the rational decision-making model?

Accepted Answer

To reach the optimal decision

Answer

To reduce uncertainty

Answer

To minimize risk

Answer

To satisfy all stakeholders

Question 25

How do cognitive biases impact rational decision-making?

Accepted Answer

They distort information processing and evaluation

Answer

They introduce emotional biases

Answer

They limit the number of options we consider

Answer

They enhance our ability to make logical inferences

Question 26

Strategic decisions are typically made by:

Accepted Answer

Top-level managers

Answer

Low-level managers

Answer

Middle-level managers

Answer

Supervisors

Question 27

Which of the following factors does NOT influence decision-making?

Accepted Answer

Random chance

Answer

Individual values

Answer

Organizational culture

Answer

Peer pressure

Question 28

Non-programmed decisions involve:

Accepted Answer

Unstructured situations

Answer

Structured situations

Answer

Limited alternatives

Answer

Well-defined criteria

Question 29

Which of the following is a benefit of using a structured problem-solving approach?

Accepted Answer

Provides clear steps

Answer

Encourages creativity

Answer

Guarantees optimal solution

Answer

Eliminates biases

Question 30

The process of dividing a complex problem into smaller, more manageable parts is known as:

Accepted Answer

Decomposition

Answer

Aggregation

Answer

Prioritization

Answer

Delegation

Question 31

The expected value of a decision alternative refers to:

Accepted Answer

The sum of its benefits and costs weighted by their probabilities

Answer

Its probability of occurrence

Answer

Its potential benefits

Answer

Its potential costs

Question 32

The process of analyzing the potential outcomes of a decision under different scenarios is known as:

Accepted Answer

Scenario planning

Answer

Risk assessment

Answer

Sensitivity analysis

Answer

Monte Carlo simulation

Question 33

Which step in the decision-making process involves examining the pros and cons of different potential solutions?

Accepted Answer

Analyze alternatives

Answer

Identify the problem

Answer

Generate alternatives

Answer

Implement the decision

Question 34

Which characteristic is unique to non-programmed decisions?

Accepted Answer

Rarely encountered and require customized solutions

Answer

Highly structured and follow established procedures

Answer

Routine in nature and involve little uncertainty

Answer

Based on clearly defined criteria and rules

Question 35

When making strategic decisions, which factor is most important to consider?

Accepted Answer

Long-term consequences and implications

Answer

Short-term impact on current operations

Answer

Availability of immediate resources

Answer

Personal preferences and wishes

Question 36

Which of the following factors should not be considered when making a decision?

Accepted Answer

Influence and opinions of friends and peers

Answer

Personal values and beliefs

Answer

Available resources and constraints

Answer

Potential consequences and outcomes

Question 37

In the problem-solving process, what is the initial step?

Accepted Answer

Clearly defining the problem and its scope

Answer

Generating a list of potential solutions

Answer

Evaluating the feasibility and effectiveness of solutions

Answer

Implementing the chosen solution

Question 38

In what ways can social norms and cultural expectations influence the decisions we make?

Accepted Answer

Social norms and cultural expectations can shape our perceptions of acceptability and desirability, thereby influencing our decisions.

Answer

Social norms and cultural expectations have no impact on our decision-making process.

Answer

Social norms and cultural expectations influence decisions only in unfamiliar situations.

Question 39

When working in a group, how can you help reduce bias in decision-making?

Accepted Answer

Give each person a specific job to do

Answer

Let the group leader make most of the decisions

Answer

Focus only on the facts and ignore any potential biases

Question 40

What is the main difference between programmed and non-programmed decisions?

Accepted Answer

Programmed decisions follow set rules, while non-programmed decisions are unique and require a tailored approach.

Answer

Programmed decisions are made often, while non-programmed decisions are made less frequently.

Answer

Programmed decisions have low risk, while non-programmed decisions have high risk.

Answer

Programmed decisions are made by lower-level managers, while non-programmed decisions are made by top-level managers.

Question 41

Consider the ethical implications of prioritizing immediate profits over the long-term sustainability of a company.

Accepted Answer

Sacrificing long-term sustainability for short-term profits can harm a company's reputation and relationships.

Answer

Prioritizing profits over sustainability is always unethical.

Answer

Ethical considerations should not influence business decisions.

Answer

Companies should always prioritize sustainability over profits.

Question 42

Which of the following is **not** an advantage of using a structured decision-making process?

Accepted Answer

Greater flexibility and adaptability

Answer

Increased efficiency and effectiveness

Answer

Improved quality of decisions

Answer

Reduced bias and subjectivity

Question 43

Which type of decision involves following established procedures and rules?

Accepted Answer

Programmed Decision

Answer

Tactical Decision

Answer

Strategic Decision

Answer

Non-Programmed Decision

Question 44

Which decisions are made rarely and have long-term consequences for an organization?

Accepted Answer

Strategic Decision

Answer

Operational Decision

Answer

Tactical Decision

Answer

Routine Decision

Question 45

Which factors can influence the choice of decision-making type?

Accepted Answer

Time constraints, level of uncertainty, and organizational culture

Answer

Only level of uncertainty and organizational culture

Answer

Only time constraints and level of uncertainty

Question 46

Which model of decision-making involves analyzing information, generating alternatives, and evaluating outcomes?

Accepted Answer

Rational Model

Answer

Intuitive Model

Answer

Satisficing Model

Answer

Political Model

Question 47

Which concept refers to the tendency to make timely decisions that meet a minimum level of acceptance, rather than searching for an optimal solution?

Accepted Answer

Satisficing

Answer

Maximization

Answer

Optimization

Answer

Incrementalism

Question 48

Which term describes a decision made in response to an urgent and unexpected situation?

Accepted Answer

Crisis Decision

Answer

Routine Decision

Answer

Tactical Decision

Answer

Strategic Decision

Question 49

Which type of decision involves a high level of risk and requires the consideration of uncertain factors?

Accepted Answer

Non-Programmed Decision

Answer

Strategic Decision

Answer

Routine Decision

Answer

Programmed Decision

Question 50

Which concept refers to the extent to which stakeholders agree on the best course of action?

Accepted Answer

Consensus

Answer

Compromise

Answer

Collaboration

Answer

Cooperation

Question 51

Which type of bias occurs when decision-makers seek information that supports their existing beliefs?

Accepted Answer

Confirmation Bias

Answer

Framing Bias

Answer

Hindsight Bias

Answer

Availability Bias

Question 52

Which ethical principle emphasizes considering the perspectives and values of all stakeholders in decision-making?

Accepted Answer

Inclusivity

Answer

Accountability

Answer

Impartiality

Answer

Transparency