Planning and managing organisations/PMAN103/Decision-making/Quiz

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Decision making.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Planning and Managing Organisations (PMAN103) micro-course. Please consult the Certify participation page for more information.

True - false questions

Indicate whether the following statements are true or false:

• The Nominal Group Technique (NGT) should be used routinely in all group decision- making meetings as it ensures that all members participate fully.
  • True
    • No. This technique should only be used to structure group meetings when members are grappling with problem solving or idea generation.
  • False
    • Correct. This technique should only be used to structure group meetings when members are grappling with problem solving or idea generation.
• Framing bias involves a decision maker choosing an alternative that is disadvantageous to an organization, simply because of how a situation or problem is presented.
  • True
    • Correct. It is important to be aware of this tendency and examine the situation or problem from different perspectives.
  • False
    • No. It is important to be aware of framing bias and examine the situation or problem from different perspectives.
• Even though each member of the decision-making team is given a single vote using the majority rule technique, this does not ensure “buy in” or support of the final decision by the entire team.
  • True
    • Correct. Those who did not vote for the decision may be unlikely to support it.
  • False
    • No. Those who did not vote for the decision may be unlikely to support it.
• A manager’s decision-making style is not as important as the modern tools and techniques available to improve effective decision making.
  • True
    • No. Managers need to be aware of their personal decision-making style, how it meshes with the style and goals of the organization, and if it allows for the inclusion of the team in the decision-making process.
  • False
    • Correct. Managers need to be aware of their personal decision-making style, how it meshes with the style and goals of the organization, and if it allows for the inclusion of the team in the decision-making process.

Multiple choice questions

• Which THREE of the following are common mistakes made by individuals during decision-making? (Choose all that apply - there are three correct answers)
  • Overconfidence bias
    • Yes. Individuals overestimate their ability to predict future events.
  • Confirmation bias
    • Yes. Individuals selectively gather information that supports their existing views.
  • Managerial bias
    • Incorrect. Managerial bias is not considered a common mistake in the context of the PMAN103 materials.
  • Anchoring
    • Yes. Individuals rely too heavily on a single piece of information.
• Which THREE of the following are disadvantages of group decision making? (Choose all that apply - there are three correct answers)
  • Coordination problems
    • Yes. There may be problems in coordinating people’s work or even in coordinating attendance at meetings.
  • Social loafing
    • Yes. The tendency of some members to put forth less effort while working within a group.
  • Groupthink
    • Yes. The tendency to avoid critical evaluation of ideas the group favours.
  • Diversity of opinions
    • Incorrect. Diversity of ideas and alternatives is an advantage not disadvantage.
• Which THREE of the following statements regarding a pre-mortem are true? (Choose all that apply - there are three correct answers)
  • It requires group members to take a backward perspective and think about future events as if they had already occurred.
    • Yes. It can save money and also forestall having to change course along the way.
  • It comes at the beginning of a project rather than the end, so that the project can be improved rather than analyzed.
    • ’’’Yes’’’. The group tries to predict causes of project failure before they happen.
  • It encourages each group member to create a list of all imaginable reasons that may lead to the failure of a project.
    • ’’’Yes’’’. The group is encouraged to look into a crystal ball and imagine the total failure of the project.
  • It allows the original plan to safely move forward once the process is over.
    • ’’’Incorrect’’’. The original plan should be revised to correct the flaws and avoid these potential problems.
• Which ONE of the following is a symptom of ‘group think’, where a decision-making group downplays negative information or warnings that might cause its members to reconsider their assumptions? (Select one answer)
  • Collective rationalization
    • Yes. That’s correct
  • Illusion of invulnerability
    • Incorrect.
  • Illusion of unanimity
    • Incorrect.
  • Stereotyped views of out-groups
    • Incorrect.