About This Chapter
This topic covers topic-based exam questions based on key concepts such as the anchoring bias, the attribution theory, the availability bias, the bounded rationality, and the collaboration. It features top MCQs for preparation as well as objective True or False questions, designed to evaluate your understanding and enhance exam readiness. An answer key is provided for self-assessment and review. The learning objectives include: What decision-making problems can prevent employees from translating their learning into accurate decisions? What steps can organizations take to foster learning?
Question 1
Multiple Choice
Easy
Anchoring bias Exam

________ is the tendency to rely too heavily on one trait or piece of information when making decisions.

  • Framing
  • Recency
  • Contrast
  • Anchoring
  • Representativeness
Correct Answer: Anchoring
Explanation:

Anchoring refers to the tendency to rely too heavily, or "anchor," on one trait or piece of information when making decisions even when the anchor might be unreliable or irrelevant.

Glossary:

Norming: The third stage of team development, during which members realize that they need to work together to accomplish team goals and consequently begin to.

Question 2
Multiple Choice
Hard
Attribution theory Exam

Pamela's sales have been slipping for the last four quarters, but this has not adversely affected her performance ratings. As her boss, Paul, observes, "Things are tough all over, and especially in that northeastern territory where she's working. I do not think anybody else could have done any better, given the same situation." This indicates ________ attribution.

  • high distinctiveness resulting in an internal
  • high consensus resulting in an external
  • low consensus resulting in an external
  • high consensus resulting in an internal
  • low consensus resulting in an internal
Correct Answer: high consensus resulting in an external
Explanation:

Consensus, one of three dimensions whereby decision makers attribute cause, refers to whether others acted the same way under similar situations. In this case, Paul's observation that nobody else could have done better in the same situation indicates high consensus. As a result, he attributes Pamela's poor sales to external factors-economic conditions nationwide, particularly in her sales territory-rather than to any internal factors such as Pamela's ability, motivation, or attitudes.

Glossary:

Consensus: Used by decision makers to attribute cause; whether other individuals behave the same way under similar circumstances.

Question 3
Multiple Choice
Medium
Attribution theory Exam

________ is when we attribute our failures to external factors and our successes to internal factors.

  • The ratio bias effect
  • The self-serving bias
  • The gambler's fallacy
  • Escalation of commitment
  • The fundamental attribution error
Correct Answer: The self-serving bias
Explanation:

The self-serving bias occurs when we attribute our own failures to external factors and our own successes to internal factors.

Glossary:

Self-Serving Bias: When one attributes one’s own failures to external factors and success to internal factors.

Question 4
Multiple Choice
Hard
Attribution theory Exam

Blaine's coworker, Tamika, has accused him of sexual harassment, but Blaine denies it. Though there is little evidence to support either person's claims, their supervisor, Yessi, is inclined to believe Tamika. She knows that Blaine had a DUI just a few years back, and he was once reprimanded for mismanaging company funds. Yessi's judgment is one of ________ attribution.

  • high distinctiveness resulting in an internal
  • low distinctiveness resulting in an external
  • low distinctiveness resulting in an internal
  • low consensus resulting in an external
  • low consensus resulting in an internal
Correct Answer: low distinctiveness resulting in an internal
Explanation:

Distinctiveness, one of three dimensions whereby decision makers attribute cause, refers to whether the person being judged has acted in a similar fashion under different circumstances. Because of Blaine's past record, Tamika's allegations indicate that he has been known to act in a morally questionable, reckless manner both inside and outside the office. This indicates low distinctiveness-in other words, his alleged sexual harassment is not so different from the DUI or the mismanagement of company funds-which in turn is linked with internal attribution. Had Blaine been known as a man of sterling character with no blemishes on his record, it might have been easier to question Tamika's assertions in the absence of corroborating evidence.

Glossary:

Distinctiveness: Used by decision makers to attribute cause; whether the person being judged acts in a similar fashion under different circumstances.

Question 5
Multiple Choice
Hard
Attribution theory Exam

When a worker comes late to the work site, others are likely to make an external attribution under conditions of

  • high consensus, low distinctiveness, and high consistency.
  • high consensus, high distinctiveness, and low consistency.
  • low consensus, high distinctiveness, and high consistency.
  • low consensus, low distinctiveness, and high consistency.
  • low consensus, low distinctiveness, and low consistency.
Correct Answer: high consensus, high distinctiveness, and low consistency.
Explanation:

An external attribution, such as bad traffic or a power outage, will occur if there is high consensus, high distinctiveness, and low consistency.

Glossary:

Consensus: Used by decision makers to attribute cause; whether other individuals behave the same way under similar circumstances.

Question 6
Multiple Choice
Hard
Attribution theory Exam

Jamarcus, a manager at the corporate headquarters of Shurway Shipping & Packing Supply, has just received a complaint about Wanda, a receptionist, having been rude a customer who called the office. After apologizing to the caller, Jamarcus asks Wanda to report to his office. Confronted with the situation, she says that she has been having a bad day and the caller was extremely rude to her. She apologizes and says she will not do it again. Jamarcus, knowing that Wanda has never had any negative interactions with clients in her ten years with the company, is inclined to believe that this particular caller was indeed rude, and he therefore takes no further action. This is an example of ________ attribution by Jamarcus.

  • high distinctiveness resulting in an internal
  • high consistency resulting in an internal
  • low consistency resulting in an external
  • low consistency resulting in an internal
  • low consensus resulting in an internal
Correct Answer: low consistency resulting in an external
Explanation:

Consistency, one of three dimensions whereby decision makers attribute cause, refers to whether the person being judged has acted in the same way under similar circumstances. Wanda's record indicates that the run-in with the caller is an anomaly, not part of a consistent pattern on her part. Therefore it is reasonable to attribute her behavior to external circumstances-in other words, the caller was rude, and Wanda was having a bad day.

Glossary:

Consistency: Used by decision makers to attribute cause; whether this individual has behaved this way before under similar circumstances.

Question 7
Multiple Choice
Hard
Availability bias Exam

The senator was having trouble getting support for his pet piece of legislation, called The Omnibus Tax Increase Act. After soliciting input from his staff, he renamed it An Act to Protect the American Way of Life. Suddenly, public opinion was on his side, and he soon had the votes he needed. The reason lies in a decision-making bias known as

  • recency.
  • contrast.
  • framing.
  • anchoring.
  • representativeness.
Correct Answer: framing.
Explanation:

Framing is the tendency to make different decisions based on how a question or situation is phrased. In contrast to An Act to Protect the American Way of Life, The Omnibus Tax Increase Act would not sound very appealing to most voters-even though they are exactly the same piece of legislation.

Glossary:

Forming: The first stage of team development, during which members try to get a feel for what is expected of them, what types of behaviors are out of bounds, and who’s in charge.

Question 8
Multiple Choice
Easy
Availability bias Exam

________ is the tendency for people to base their judgments on information that is easier to recall.

  • Fundamental attribution error
  • Social identity theory
  • Availability bias
  • Stereotyping
  • Satisficing
Correct Answer: Availability bias
Explanation:

The availability bias is the tendency for people to base their judgments on information that is easier to recall. For example, it is easier for almost everyone to remember words in which the letter "R" is the first letter as opposed to the third.

Glossary:

Availability Bias: The tendency for people to base their judgments on information that is easier to recall.

Question 9
Multiple Choice
Medium
Bounded rationality Exam

The concept of bounded rationality suggests that we are likely to

  • choose the first acceptable alternative.
  • evaluate all alternatives simultaneously.
  • pick the alternative that minimizes value.
  • use accurate information to evaluate alternatives.
  • develop an exhaustive list of alternatives to consider as solutions.
Correct Answer: choose the first acceptable alternative.
Explanation:

Bounded rationality is the notion that decision makers simply do not have the ability or resources to process all available information and alternatives to make an optimal decision. Bounded rationality says that we are likely to pick the first acceptable alternative (satisficing).

Glossary:

Bounded Rationality: The notion that people do not have the ability or resources to process all available information and alternatives when making a decision.

Question 10
Multiple Choice
Easy
Bounded rationality Exam

The notion that decision makers simply do not have the ability or resources to process all available information and alternatives to make an optimal decision is known as

  • intuition.
  • satisficing.
  • bounded rationality.
  • social identity theory.
  • the rational decision-making model.
Correct Answer: bounded rationality.
Explanation:

Although most employees perceive themselves as rational decision makers, the reality is that they are all subject to bounded rationality. Bounded rationality is the notion that decision makers simply do not have the ability or resources to process all available information and alternatives to make an optimal decision.

Glossary:

Bounded Rationality: The notion that people do not have the ability or resources to process all available information and alternatives when making a decision.

Question 11
Multiple Choice
Medium
Collaboration Exam

Renee has just told her subordinates that the company is about to invest in them by making a systematic effort to facilitate the acquisition of job-related knowledge and behavior. She is referring to

  • satisficing.
  • heuristics.
  • expertise.
  • learning.
  • training.
Correct Answer: training.
Explanation:

Training represents a systematic effort by organizations to facilitate the learning of job-related knowledge and behavior.

Glossary:

Training: A systematic effort by organizations to facilitate the learning of job-related knowledge and behavior.

Question 12
True False
Easy
Collaboration Exam

Communities of practice are groups of employees who work together and learn from one another by collaborating over an extended period of time.

True
False
Correct Answer: True
Explanation:

Communities of practice are groups of employees who work together and learn from one another by collaborating over an extended period of time.

Glossary:

Communities Of Practice: Groups of employees who learn from one another through collaboration over an extended period of time.

Question 13
Multiple Choice
Easy
Collaboration Exam

Groups of employees, or ________, work together and learn from one another by collaborating over an extended period of time.

  • organic models of community
  • organic models of attribution
  • communities of shared aims
  • organic models of practice
  • communities of practice
Correct Answer: communities of practice
Explanation:

Communities of practice are groups of employees who work together and learn from one another by collaborating over an extended period of time. Many companies are adopting this newer form of informal social learning.

Glossary:

Communities Of Practice: Groups of employees who learn from one another through collaboration over an extended period of time.