Wildstorming is a process where the group focuses on ideas that are impossible and then tries to imagine what would need to happen to make them possible.

TRUE/FALSE

1. All decisions have major consequences and require much thought.

(False)

2. Decision making requires action as a solution.

(False)

3. Programmed decisions are unique, creative decisions.

(False)

4. A decision rule is an automated response to a problem or issue that occurs frequently.

(True)

5. An example of a nonprogrammed decision is deciding whether to merge with another firm.

(True)

6. Strategic decisions are usually made by middle level managers.

(False)

7. Tactical decisions are those concerned with how things get done.

(True)

8. The rational decision-making model limits the number of alternatives considered.

(False)

9. The first step of both the rational decision-making model and the creative decision-making process is to identify the problem.

(True)

10. The most difficult step of the rational decision-making process is to establish the decision criteria.

(False)

11. Analysis paralysis is when more and more time is spent on gathering information and thinking about it, but no decisions are made.

(True)

12. People are always interested in making an optimal decision.

(False)

13. To satisfice is to accept the first alternative that meets minimum criteria.

(True)

14. In the intuitive decision-making process, only one choice is considered at a time.

(True)

15. Innovation and creativity are the same thing.

(False)

16. Immersion is to conscious thought as incubation is to unconscious thought.

(True)

17. The three factors that evaluate the level of creativity in the decision-making process are fluency, flexibility, and originality.

(True)

18. Creativity is the interaction between personality traits, attributes, and serendipity.

(False)

19. While setting high idea quotas appears to logically maximize the effectiveness of brainstorming, in reality it has just the opposite effect.

(False)

20. Wildstorming is a process where the group focuses on ideas that are impossible and then tries to imagine what would need to happen to make them possible.

(True)

21. The intuitive decision-making model is best used when the decision maker has experience with the problem and there is time pressure.

(True)

22. The rational decision-making process is best used when the decision is important and you are trying to maximize outcomes.

(True)

23. Hindsight bias is the opposite of framing bias.

(False)

24. Given research on anchoring bias, individuals are more likely to focus on “60% of all people taking the test pass”, rather than “40% of all people taking the test fail.”

(False)

25. Escalation of commitment is also known as “sunken cost fallacy.”

(True)

26. One way to avoid escalation of commitment is to have identifiable turning back points.

(True)

27. Group decisions tend to be more creative than individual ones, but they are often not more effective than those made by individuals.

(False)

28. Groupthink is one of the reasons cited for the tragedy of the Challenger space shuttle.

(True)

29. Group decisions regularly outperform the decision of the group’s best member.

(False)

30. Individual decision making produces a greater commitment to the ultimate decision than does group decision making.

(False)

31. Groupthink is characterized by symptoms like questioning the morality of the group.

(False)

32. Having a devil’s advocate in meetings is a technique that can help avoid groupthink.

(True)

33. The nominal group technique involves using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.

(False)

34. Research shows that consensus decision making is less accurate and can even make group members feel less satisfied with a decision.

(False)

35. Group decision support systems could make employees more reluctant to share information due to lack of control.

(True)

36. Decision trees are helpful in avoiding errors such as overconfidence bias.

(False)

37. Unethical decisions in bank lending is likely one of the causes of the current economic crisis in the United States.

(True)

38. One basic question to ask to ascertain the ethics of a decision is:  “How would I feel if this decision was broadcast on the news?”

(True)

39. American managers tend to value quick decision making while Chinese managers favor more reflective decision making.

(True)

40. Ingar Skaug, CEO of Wilhelmsen Lines, empowered his employees to make their own decisions when he assumed his position at the global maritime company.

(True)