Decision-Making and Ethics: Quiz :Managing the Organization (Strategic Leadership and Management Specialization) Answers 2025

Question 1

From a natural system view of the organization, decision-making tends to be a systematic and logical process.

❌ True
✅ False

Explanation:
The natural system view emphasizes informal processes, social relationships, and human behavior. Decision-making is often political, intuitive, and influenced by norms, not purely systematic or logical.

Question 2

An assumption of a rational decision-making process is that there are limits on the capacity to gather and process relevant information.

❌ True
✅ False

Explanation:
Rational decision-making assumes complete information and unlimited cognitive capacity. Limits on information processing are associated with bounded rationality, not full rationality.

Question 3

Managers work until they reach an optimal solution in a boundedly rational decision-making process.

❌ True
✅ False

Explanation:
In bounded rationality, managers satisfice, meaning they stop once they find a solution that is “good enough,” not optimal.

Question 4

Employing intuitive decision making rather than rational decision making is useful when the decision maker lacks deep subject matter expertise.

❌ True
✅ False

Explanation:
Intuition is most effective when decision-makers have deep expertise and experience. Without expertise, intuition can be unreliable.

Question 5

In a negotiation, you should not make the first offer to ensure that you aren’t influenced by anchoring bias.

❌ True
✅ False

Explanation:
Making the first offer can actually create the anchor, giving you an advantage if you are well-prepared.

Question 6

Controllability bias is based on a belief that you will be able to control future outcomes.

✅ True
❌ False

Explanation:
Controllability bias occurs when people overestimate their ability to influence outcomes, even when outcomes are largely uncertain or external.

Question 7

Keeping what we have rather than taking a better alternative is known as the _________.

✅ Status quo bias
❌ Availability bias
❌ Endowment effect
❌ Prospect effect

Explanation:
Status quo bias refers to a preference for maintaining the current state, even when better options exist.

Question 8

Ethical fading occurs when

❌ Managers reflect on prior decisions to help influence future decisions
❌ Supervisors lean on veteran employees to impact decisions, to make sure ethics are upheld
✅ Managers fail to recognize the potential ethical components of the decisions that they make.
❌ Government regulations make it harder for companies to choose right from wrong

Explanation:
Ethical fading happens when the ethical dimension of a decision disappears from view, allowing unethical behavior to occur unintentionally.

Question 9

This type of rationalization occurs when we reframe unethical behavior as helping to further some larger noble cause.

❌ Displacement of Responsibility
❌ Advantageous Comparison
❌ Euphemistic Labeling
✅ Moral Justification

Explanation:
Moral justification reframes unethical actions as serving a higher or noble purpose, making them seem acceptable.

Question 10

In practice, it is difficult to implement the utilitarianism ethical decision-making test because people don’t always agree about what is fair, both in terms of outcome and process.

❌ True
✅ False

Explanation:
This difficulty is more closely associated with justice-based ethics, not utilitarianism. Utilitarianism focuses on maximizing overall good, not fairness.

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