CME Problem Solving & Decision Making 3

Question 1

A manager uses 'satisficing' when making a decision. What does this mean?

Accepted Answer

Choosing the first option that meets a minimum acceptable threshold

Answer

Satisficing, coined by Herbert Simon, means selecting the first solution that is 'good enough' rather than searching for the optimal one.

Question 2

Which analytical tool maps the probability and financial impact of different decision outcomes in a tree-like structure?

Accepted Answer

Decision tree

Answer

A decision tree visually represents choices, chance events, and their associated probabilities and payoffs to guide complex decisions.

Question 3

A cross-functional team consistently avoids challenging the group's consensus to maintain harmony. This is an example of:

Accepted Answer

Groupthink

Answer

Groupthink occurs when the desire for cohesion overrides critical evaluation, leading to poor decision quality.

Question 4

In force field analysis, 'restraining forces' are best described as:

Accepted Answer

Barriers that resist or hinder change

Answer

Restraining forces in Lewin's force field analysis are the obstacles and resistances that work against a proposed change.

Question 5

Which problem-solving approach involves generating a large number of ideas without immediate judgment or criticism?

Accepted Answer

Brainstorming

Answer

Brainstorming defers judgment to maximize the quantity and diversity of ideas generated before evaluation begins.

(CME) Certified Management Executive Practice Test