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Management Information Systems, 15e (Laudon) Chapter 12 Enhancing Decision Making 1) Which of the following statements b

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Management Information Systems, 15e (Laudon) Chapter 12 Enhancing Decision Making 1) Which of the following statements best describes the business value of improved decision making? A) Improved decision making creates better products. B) Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency, production, costs, and more add up to large annual values. C) Improved decision making enables senior executives to more accurately foresee future financial trends. D) Improved decision making strengthens customer and supplier intimacy, which reduces costs. E) Improved decision making creates a better organizational culture. Answer: B Difficulty: 3: Challenging AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 2) When there is no well-understood or agreed-on procedure for making a decision, it is said to be: A) undocumented. B) unstructured. C) documented. D) semi-structured. E) ad-hoc. Answer: B Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 3) If you can follow a definite procedure to make a business decision, you are making a(n) ________ decision. A) ad-hoc B) procedural C) unstructured D) semistructured E) structured Answer: E Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 4) Which type of decision is calculating gross pay for hourly workers? A) Semi-structured B) Procedural 1 Copyright © 2018 Pearson Education, Inc.

C) Structured D) Unstructured E) Ad hoc Answer: C Difficulty: 2: Moderate AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 5) Which type of decision is deciding whether to introduce a new product line? A) Structured B) Unstructured C) Recurring D) Nonrecurring E) Procedural Answer: B Difficulty: 2: Moderate AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 6) The decision to approve a capital budget is an example of a(n) ________ decision. A) structured B) ad hoc C) semi-structured D) undocumented E) unstructured Answer: E Difficulty: 2: Moderate AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 7) The decisions involved in creating and producing a corporate intranet can be classified as ________ decisions. A) semistructured B) procedural C) ad hoc D) structured E) unstructured Answer: A Difficulty: 2: Moderate AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 8) Checking store inventory is an example of a(n) ________ decision. 2 Copyright © 2018 Pearson Education, Inc.

A) procedural B) structured C) ad hoc D) unstructured E) semi-structured Answer: B Difficulty: 2: Moderate AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 9) The ________ phase of decision making finds or recognizes a problem, need, or opportunity. A) choice B) design C) implementation D) analysis E) intelligence Answer: E Difficulty: 1: Easy AACSB: Reflective thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 10) Which of the following is not one of the Simon's four stages of decision making? A) Implementation B) Intelligence C) Analysis D) Choice E) Design Answer: C Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 11) Which of the following is not one of the five observed ways in which managerial behavior differs from the classical description of managers? A) Managers perform a great deal of work at an unrelenting pace. B) Managers perform a low number of activities for a high percentage of time. . C) Managers prefer current, specific, ad-hoc information. D) Managers prefer oral forms of communication. E) Managers give high priority to maintaining a diverse web of contacts. Answer: B Difficulty: 2: Moderate AACSB: Information technology LO: 12-2: How do information systems support the activities of managers and management decision making? 3 Copyright © 2018 Pearson Education, Inc.

12) The role of liaison falls into which of Mintzberg's managerial classifications? A) Decisional B) Informational C) Interpersonal D) Symbolic E) Leading Answer: C Difficulty: 3: Challenging AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 13) Mintzberg outlined three categories of managerial roles: A) interpersonal, informational, and decisional. B) control, leadership, oversight. C) operational, management, and executive. D) cultural, organizational, and technical. E) middle management, senior management, executive Answer: A Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 14) The role of entrepreneur falls into which of Mintzberg's managerial classifications? A) Decisional B) Informational C) Interpersonal D) Symbolic E) Leading Answer: A Difficulty: 3: Challenging AACSB: Reflective thinking LO: 12-2: What are the different types of decisions and how does the decision-making process work? 15) According to Mintzberg, managers in their informational role act as: A) figureheads for the organization. B) leaders. C) nerve centers of the organization. D) negotiators. E) liaisons. Answer: C Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management 4 Copyright © 2018 Pearson Education, Inc.

decision making? 16) Which of the following systems support a manager's role as leader of an organization? A) DSS B) Telepresence systems C) E-mail D) MIS E) ESS Answer: B Difficulty: 3: Challenging AACSB: Analytical thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 17) All of the following managerial roles can be supported by information systems except: A) liaison. B) resource allocator. C) nerve center D) disseminator. E) negotiator. Answer: E Difficulty: 3: Challenging AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 18) When managers represent their company in the outside world and perform symbolic duties, they are acting in their: A) decisional role. B) managerial role. C) informational role. D) interpersonal role. E) leadership role. Answer: D Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 19) As discussed in the chapter text, the three main reasons that investments in information technology do not always produce positive results are: A) management support, technical logistics, and user compliance. B) organization, environment, culture. C) information quality, information integrity, and information accuracy. D) information quality, organizational culture, and management filters. E) organization, culture, and technology. Answer: D 5 Copyright © 2018 Pearson Education, Inc.

Difficulty: 2: Moderate AACSB: Information technology LO: 12-2: How do information systems support the activities of managers and management decision making? 20) The concept of management ________ describes situations in which managers act on preconceived notions that reject information that does not conform to their prior conceptions. A) filters B) backgrounds C) biases D) inefficiency E) politics Answer: A Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 21) Which quality dimension of information is concerned that the data values of an information source fall within a defined range? A) Timeliness B) Consistency C) Completeness D) Accessibility E) Validity Answer: E Difficulty: 3: Challenging AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 22) The dimension of ________ describes whether data elements are consistently defined. A) completeness B) accuracy C) validity D) consistency E) integrity Answer: D Difficulty: 3: Challenging AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 23) High-velocity decision making systems are growing rapidly for decisions classed as: A) semistructured. B) financial. C) ad hoc. D) predefined. 6 Copyright © 2018 Pearson Education, Inc.

E) highly structured. Answer: E Difficulty: 2: Moderate AACSB: Reflective thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 24) Which of the following describes how the Simon framework of decision-making works in high-velocity decision environments? A) Only the initial step is performed by the software; the final three steps are handled by humans. B) The first two steps of Simon's framework are eliminated and the final two steps are handled by software algorithms. C) The first three steps of the process are handled by software algorithms and the final step is handled by experienced managers. D) All four steps are performed by humans with the support of high-speed, high-volume DSS and ESS. E) All four steps of the process are handled by software algorithms; humans are eliminated from the decisions because they are too slow. Answer: E Difficulty: 2: Moderate AACSB: Analytical thinking LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 25) A drawback to high-velocity, automated decision-making systems is that they are unable to: A) handle high volumes of decisions. B) handle structured decisions. C) handle semistructuredsemi structured decisions. D) control themselves and respond to new environments. E) be applied to situations outside of the financial world. Answer: D Difficulty: 3: Challenging AACSB: Analytical thinking LO: 12-2: How do information systems support the activities of managers and management decision making? 26) Improving the quality of high-value decision making by an executive will save an organization far more money than improving the quality of lesser-value decisions made at a lower level. Answer: FALSE Difficulty: 2: Moderate AACSB: Information technology LO: 12-1: What are the different types of decisions, and how does the decision-making process work? 27) A structured decision cannot be made by following a well-defined set of procedures. "Feel" 7 Copyright © 2018 Pearson Education, Inc.

or intuition is necessary. Answer: FALSE Difficulty: 1: Easy AACSB: Application of knowledge LO: 12-3 How do business intelligence and business analytics support decision making?

Which of the following statements best describes the term business intelligence quizlet?

Which of the following best defines business intelligence? Business intelligence encompasses a vast array of information sources that can contribute to better decision making, along with software applications, technologies, and practices used to analyze it.

Which of the following is not one of the six main elements of the business intelligence environment quizlet?

Which of the following is not one of the six main elements in the business intelligence environment discussed in this chapter? support the structured decision making of senior executives.

Which of the following describes how the Simon framework of decision

Which of the following describes how the Simon framework of decision making works in high-velocity decision environments? All four steps of the process are handled by software algorithms; humans are eliminated from the decisions because they are too slow.

Which category s of information systems is best equipped to assist with semi structured decisions?

Spreadsheets As DSS Generators. Computer-based information systems that combine models and data to enable users to solve semistructured problems with extensive interactivity are typically referred to as decision support systems (DSSs).