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Introduction to Organization and Management Principles (FDNMANP)

Chapter 7 · The Decision-Making Process

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Source-grounded the decision-making process study materials for FDNMANP_C17A. Original practice questions; chapter references included.

Jade Laurence EmpleoPublic20 questionsIntroduction to Organization and Management Principles (FDNMANP)Updated
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Original practice exam based on chapter concepts, not an official/sample Canvas quiz. Choose the one best answer using this textbook's terminology. Adapted under CC BY-SA 4.0. https://pressbooks.openedmb.ca/management/?p=150

Questions

01A manager repeatedly overlooks unsafe working conditions because the familiar dashboard shows only profit. What best explains this?
  1. A cognitive script is filtering what counts as a problem.
  2. All decisions occur under certainty.
  3. More data automatically eliminates bias.
  4. Programmed decisions never involve values.
Dyck et al. (2026), Chapter 7, 7.2
02An inventory system reorders supplies at a standard threshold. What decision type is used?
  1. Random by necessity
  2. Programmed
  3. A one-time strategic dilemma
  4. Non-programmed
Dyck et al. (2026), Chapter 7, 7.3
03A manager designs a first-ever response to an unfamiliar regulatory requirement. What type is it?
  1. Non-programmed
  2. Do nothing
  3. A standing rule already in use
  4. Programmed solely because a manager makes it
Dyck et al. (2026), Chapter 7, 7.3
04A manager knows two outcomes and can estimate each outcome's payoff and probability, but cannot guarantee the result. Which condition fits?
  1. Complete uncertainty
  2. Risk
  3. Total agreement
  4. Certainty
Dyck et al. (2026), Chapter 7, 7.4.1
05A skilled artisan senses a machine problem but cannot explain every cue behind the judgment. What kind of knowledge is central?
  1. Explicit only
  2. No knowledge
  3. A formal contract
  4. Tacit
Dyck et al. (2026), Chapter 7, 7.4.1
06Managers share goals and have reliable comparative information about all options. Which approach best fits?
  1. Random
  2. Classical rational
  3. Political
  4. Trial and error only
Dyck et al. (2026), Chapter 7, 7.4.3
07Managers know the consequences of alternatives but disagree about whose priorities should prevail. Which approach fits?
  1. No decision is possible
  2. Political
  3. Classical rational with full consensus
  4. Random
Dyck et al. (2026), Chapter 7, 7.4.3
08A team agrees that quality must improve but lacks evidence about which workflow is best. It runs small pilots. Which approach is used?
  1. Trial and error
  2. Random
  3. Full classical optimization
  4. Political
Dyck et al. (2026), Chapter 7, 7.4.3
09A firm buys a fashionable technology before deciding what organizational problem it should solve. Which approach best matches the warning?
  1. Administrative satisficing based on clear adequacy criteria
  2. Programmed reordering
  3. A deliberate pilot with agreed goals
  4. Random
Dyck et al. (2026), Chapter 7, 7.4.3
10A manager stops searching after finding a supplier that meets a defined acceptable standard. Which concept fits?
  1. Satisficing
  2. Perfect optimization
  3. Opportunism
  4. Escalation of commitment
Dyck et al. (2026), Chapter 7, 7.4.3
11What makes bounded rationality relevant to decisions?
  1. Every manager has identical moral aims.
  2. Computers make all information certain.
  3. Decision-making can avoid alternatives.
  4. People lack complete information and unlimited processing capacity.
Dyck et al. (2026), Chapter 7, 7.4.3
12A decision looks financially cheaper but causes serious harm omitted from the comparison. What is the strongest lesson of the opening case?
  1. Legality and inner moral judgment are identical.
  2. Quantitative tools should never be used.
  3. The values and consequences included in analysis must be examined.
  4. A lower expected cost is always morally sufficient.
Dyck et al. (2026), Chapter 7, 7.0
13Which condition makes early employee participation especially useful?
  1. No one has relevant information.
  2. Participation always guarantees unanimity.
  3. Their knowledge and commitment are important, and there is time to involve them.
  4. Urgency leaves no possible time for consultation.
Dyck et al. (2026), Chapter 7, 7.5.1
14A manager continues funding a project despite repeated evidence it fails the agreed performance milestones. What concept fits?
  1. A programmed inventory decision
  2. Escalation of commitment
  3. Strategic learning
  4. Successful satisficing
Dyck et al. (2026), Chapter 7, 7.5.2
15A project leader presents only favorable feedback and dismisses every negative indicator. Which factor is most evident?
  1. Supplier certification
  2. Economies of scale
  3. Explicit uncertainty
  4. Information distortion
Dyck et al. (2026), Chapter 7, 7.5.2
16An organization keeps a harmful system mainly because it already has the structure in place. What factor fits?
  1. Customer power
  2. Rare resources
  3. Administrative inertia
  4. Entrepreneurial opportunity identification
Dyck et al. (2026), Chapter 7, 7.5.2
17Which practice helps reduce escalation of commitment?
  1. Set unacceptable-outcome criteria and performance milestones in advance.
  2. Treat all sunk costs as reasons to continue.
  3. Avoid independent feedback.
  4. Hide evidence that challenges the manager.
Dyck et al. (2026), Chapter 7, 7.5.2
18A bakery pays for certification to ensure purchased flour is really organic. How is that expense classified here?
  1. A sunk cost by definition
  2. Direct wheat-growing cost
  3. A revenue stream
  4. Transaction cost
Dyck et al. (2026), Chapter 7, 7.6
19When might internal production be preferred to purchasing an input?
  1. Whenever the quoted purchase price is lower, regardless of safeguards.
  2. Whenever a supplier exists.
  3. When the complete purchasing safeguards and uncertainty make buying more costly or unsuitable.
  4. Only when the firm never values stakeholders.
Dyck et al. (2026), Chapter 7, 7.6
20A SET bakery buys locally despite a cheaper foreign input because community and ecological effects matter to its mission. Which conclusion fits?
  1. SET firms need no financial viability.
  2. Transaction costs are always zero locally.
  3. Make-or-buy criteria can extend beyond the lowest purchase price.
  4. All local suppliers are guaranteed trustworthy.
Dyck et al. (2026), Chapter 7, 7.6
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