CME Problem Solving & Decision Making 2 — Questions and Answers
Question 1: A manager notices declining team productivity but cannot pinpoint the cause. Which problem-solving step should come first?
- Implement corrective actions immediately
- Define and scope the problem clearly (Correct answer)
- Brainstorm solutions with the team
- Consult upper management for guidance
Correct answer: Define and scope the problem clearly
Clearly defining and scoping the problem is the essential first step before any analysis or solution generation can be meaningful.
Question 2: Which decision-making model assumes that decision-makers have complete information and always choose the optimal solution?
- Bounded rationality model
- Garbage can model
- Classical rational model (Correct answer)
- Incremental model
Correct answer: Classical rational model
The classical rational model assumes perfect information, unlimited cognitive capacity, and selection of the optimal solution.
Question 3: A team is debating two equally promising solutions. Using a decision matrix, what is the primary advantage?
- It eliminates the need for discussion
- It provides a structured, weighted comparison of options (Correct answer)
- It guarantees the mathematically best outcome
- It speeds up the decision by removing qualitative factors
Correct answer: It provides a structured, weighted comparison of options
A decision matrix enables systematic, weighted comparison of alternatives against defined criteria, reducing subjectivity.
Question 4: Which cognitive bias causes managers to favor information that confirms their existing beliefs when solving problems?
- Availability heuristic
- Anchoring bias
- Confirmation bias (Correct answer)
- Escalation of commitment
Correct answer: Confirmation bias
Confirmation bias leads decision-makers to seek and prioritize information that supports their pre-existing views.
Question 5: During a root cause analysis, a team uses '5 Whys.' What is the primary goal of this technique?
- To assign blame to the responsible party
- To identify the deepest underlying cause of a problem (Correct answer)
- To generate five potential solutions simultaneously
- To document all symptoms of the problem
Correct answer: To identify the deepest underlying cause of a problem
The 5 Whys technique iteratively asks 'why' to drill past symptoms and surface the true root cause of a problem.
Question 6: When facing a high-stakes decision with significant uncertainty, which approach is most appropriate for a Certified Management Executive?
- Defer the decision until certainty is achieved
- Use scenario planning to evaluate multiple possible futures (Correct answer)
- Choose the option with the highest average expected value only
- Rely solely on past experience to guide the decision
Correct answer: Use scenario planning to evaluate multiple possible futures
Scenario planning allows executives to evaluate strategic options across multiple plausible futures, reducing exposure to blind spots.
Question 7: What distinguishes programmed decisions from non-programmed decisions in management?
- Programmed decisions are made by computers; non-programmed are made by people
- Programmed decisions address routine situations; non-programmed address novel, complex issues (Correct answer)
- Programmed decisions require more time; non-programmed are faster
- Programmed decisions are strategic; non-programmed are operational
Correct answer: Programmed decisions address routine situations; non-programmed address novel, complex issues
Programmed decisions use established rules for recurring situations, while non-programmed decisions require judgment for unique, complex problems.
CME Problem Solving & Decision Making 2
A manager notices declining team productivity but cannot pinpoint the cause.
Which problem-solving step should come first?