Laudon Mis15e Chapter-12

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 efficiency production costs and more add up to large annual values. !) Improved decision making enables senior e"ecutives e"ecu tives to more accurately foresee future financial trends. #) Improved decision making strengthens customer and supplier intimacy which reduces costs. $) Improved decision making creates a better organi%ational culture. Answer& B #ifficulty& '& !hallenging AA!(B& Analytical thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? +) When there is no well,understood or agreed,on procedure for making a decision it is said to be& A) undocumented. B) unstructured. !) documented. #) semi,structured. $) ad,hoc. Answer& B #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? ') If you can follow a definite d efinite procedure to make a business decision you yo u are making a/n) 00000000 decision. A) ad,hoc B) procedural !) unstructured #) semistructured $) structured Answer& $ #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? ) Which type of decision is calculating gross pay for hourly workers? A) (emi,structured B) 2rocedural 1 !opyright 3 +415 2earson $ducation Inc.

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!) (tructured #) 6nstructured $) Ad hoc Answer& ! #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? 7) Which type of decision is deciding whether to introduce a new product line? A) (tructured B) 6nstructured !) ecurring #) 8onrecurring $) 2rocedural Answer& B #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? 9) :he decision to approve a capital budget is an e"ample of a/n) 00000000 decision. A) structured B) ad hoc !) semi,structured #) undocumented $) unstructured Answer& $ #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? ;) :he decisions involved in creating and producing a corporate intranet can be b e classified as 00000000 decisions. A) semistructured B) procedural !) ad hoc #) structured $) unstructured Answer& A #ifficulty& +& -oderate











A) procedural B) structured !) ad hoc #) unstructured $) semi,structured Answer& B #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? <) :he 00000000 phase of decision making finds or recogni%es a problem need or opportunity. A) choice B) design !) implementation #) analysis $) intelligence Answer& $ #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? 14) Which of the following is not one one of the (imon=s four stages of decision d ecision making? A) Implementation B) Intelligence !) Analysis #) !hoice $) #esign Answer& ! #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? 11) Which of the following is not one one of the five observed ways in which managerial behavior differs from the classical description of managers? A) -anagers perform a great deal of work at an unrelenting pace. B) -anagers perform a low number of activities for a high percentage of time. . time. . !) -anagers prefer current specific ad,hoc information. #) -anagers prefer oral forms of communication. $) -anagers give high priority to maintaining a diverse web of contacts.











1+) :he role of liaison falls into which of -int%berg=s managerial classifications? A) #ecisional B) Informational !) Interpersonal #) (ymbolic $) eading Answer& ! #ifficulty& '& !hallenging AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? 1') -int%berg outlined three categories of managerial roles& A) interpersonal informational and decisional. B) control leadership oversight. !) operational management and e"ecutive. #) cultural organi%ational and technical. $) middle management senior management e"ecutive Answer& A #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? 1) :he role of entrepreneur falls into which of -int%berg=s managerial classifications? A) #ecisional B) Informational !) Interpersonal #) (ymbolic $) eading Answer& A #ifficulty& '& !hallenging AA!(B& eflective thinking *& 1+,+& What are the different types of decisions and how does the the decision,making process work? 17) According to -int%berg managers in their informational role act as& A) figureheads for the organi%ation. B) leaders. !) nerve centers of the organi%ation. #) negotiators.











decision making? 19) Which of the following systems support a manager=s role as leader o f an organi%ation? A) #(( B) :elepresence systems !) $,mail #) -I( $) $(( Answer& B #ifficulty& '& !hallenging AA!(B& Analytical thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? 1;) All of the following managerial roles can be supported by information systems except: A) liaison. B) resource allocator. allocator. !) nerve center #) disseminator. $) negotiator. Answer& $ #ifficulty& '& !hallenging AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? 15) When managers represent their company in the outside world and perform symbolic duties they are acting in their& A) decisional role. B) managerial role. !) informational role. #) interpersonal role. $) leadership role. Answer& # #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? 1<) As discussed in the chapter te"t the three main reasons that investments in information technology do not always always produce positive results are& A) management support technical logistics and user compliance.











#ifficulty& +& -oderate AA!(B& Information technology *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? +4) :he concept of management 00000000 describes situations in which managers act on preconceived notions that re@ect information that does not conform to their prior conceptions. A) filters B) backgrounds !) biases #) inefficiency $) politics Answer& A #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? +1) Which uality dimension of information is concerned that the data d ata values of an information source fall within a defined range? A) :imeliness B) !onsistency !) !ompleteness #) Accessibility $) alidity Answer& $ #ifficulty& '& !hallenging AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? ++) :he dimension of 00000000 describes whether data da ta elements are consistently defined. A) completeness B) accuracy !) validity #) consistency $) integrity Answer& # #ifficulty& '& !hallenging AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making?













$) highly structured. Answer& $ #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? +) Which of the following describes how the (imon framework of decision,making works in high,velocity decision environments? A) *nly the initial step is performed by the software the final three steps are handled by humans. B) :he first two steps of (imon=s framework are eliminated and the final two steps are handled by software algorithms. !) :he first three steps of the process are handled by software algorithms and the final step is handled by e"perienced managers. #) All four steps are performed by humans with the support of high,speed high,volume #(( and $((. $) All four steps of the process are handled by software algorithms humans are eliminated from the decisions because they are too slow. slow. Answer& $ #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? +7) 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. !) handle semistructuredsemi structured decisions. structured decisions. #) control themselves and respond to new environments. $) be applied to situations outside of the financial world. Answer& # #ifficulty& '& !hallenging











or intuition is necessary. Answer& CA($ #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? +5) -iddle management face primarily semi,structured decisions. Answer& :6$ #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? +<) (tructured decision making is most prevalent at lower organi%ational levels. Answer& :6$ #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? '4) :he design phase of decision making consists of discovering identifying and understanding the problems occurring in the organi%ation. Answer& CA($ #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? '1) :he choice phase of (imon=s decision,making model includes choosing among solution alternatives. Answer& :6$ #ifficulty& +& -oderate AA!(B& eflective thinking











AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? ') A structured decision is repetitive and routine for which known kn own procedures provide solutions. Answer& :6$ #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? '7) :he third stage in (imon=s description of decision making is implementation. Answer& CA($ #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,1& What are the different types of decisions and how does the the decision,making process work? '9) In your position of office manager at a legal firm you are in charge of hiring temporary legal assistants and clerical workers. #escribe how (imon=s decision,making process applies to this decision. !ould that decision be aided by an information system in any way and if so how? Answer& :he decision,making process is& is& 1. Intelligenc Intelligence e or problem discover discovery& y& >ow many temps temps need to be hired hired for how long and what skills would they need? +. #esign #esign or solution solution discovery& discovery& What temp temp agencies are available available and what are their prices? prices? '. !hoice !hoice or choosing solutions solutions&& $valuate $valuate the offerings offerings of the temp agencies agencies and evaluate the abilities of temps as per need. . Implementa Implementation tion or solution solution testing& testing& $valuate $valuate the work of each temp against against assignments assignments and other needs. An information system that displayed the temps available for hire along with pertinent information such as rate and past assignments and evaluations would help in this process. #ifficulty& +& -oderate











#ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? '5) $"plain why even well,designed information systems do not always help improve a firm=s decision making. Answer& (tudent answers will vary but should include the three three main reasons for information information systems not always producing positive results& 1. inform informati ation on uality uality +. managem management ent filt filters ers and '. organi%ati organi%ational onal inertiaGpo inertiaGpoliti litics. cs. A sample answer is& :here are three main reasons that implementing a well,designed information system might not result in better decisions. Cirst the information produced by a system may be incomplete and inaccurate. :he uality of information will depend on the uality of data gathered and may reuire a minimum amount of data to be gathered. Inaccurate data and incomplete data can degrade the uality of decision making. (econd management filters can also stymie good decision makingEa manager who has a bias against some types of activities or solutions or is overly optimistic or pessimistic will make decisions that are skewed towards their own perspective rather than actual facts. Cinally Cinally organi%ational inertia and politics can hamper decision making. Information systems can reuire organi%ational change in roles and business processes that employees want to resist or a system system can produce information that suggests that a change is necessary but employees ignore in order to maintain the status uo in roles and responsibilities. #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? '<) Behavioral models of management see managers as being 00000000 than does the classical model. A) more systematic











#) *rgani%ing $) !ontrolling Answer& A #ifficulty& '& !hallenging AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making? 1) Which of the following BI tools or abilities has been driving the movement toward Dsmart cities?D A) *A2 B) !hi,suare analysis !) 2redictive analytics #) #ata mining $) Big data analytics Answer& $ #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? +) :he dimension of 00000000 in information uality describes whether the structure of data is consistent. A) integrity B) accuracy !) timeliness #) completeness $) consistency Answer& A #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,+& >ow do information information systems support the activities of managers and management management decision making?













!) operational #) transactional $) production Answer& ! #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 7) Which of the following companies is not identified identified in the te"t as one of the leading producers of business intelligence and analytics products? A) Hoogle B) -icrosoft !) (A2 #) IB$) (A( Answer& A #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 9) Which of the following is not one one of the si" main elements in the business intelligence environment discussed in this chapter? A) -anagerial users and methods











!) eports and the drill,down feature #) (cenarios and models $) Ad hoc report creation Answer& A #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? <) Which of the following are most likely to rely primarily on the drill,down functionality of BI for their decision,making needs? A) I: developers B) -iddle managers !) *perational employees #) Business analysts $) (enior e"ecutives Answer& B #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 74) A/n)00000000 report is produced when a user enters various values in a pivot table to filter data. A) drill,down











!) predictive analytics. #) big data analytics. $) parameteri%ed reports. Answer& ! #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 7') Which of the following are most likely to rely primarily on p roduction reports for their decision,making needs? A) *perational supervisors B) (enior managers !) Analytic modelers #) Business analysts $) $"ecutives Answer& A #ifficulty& +& -oderate AA!(B& Analytical thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 7) Which type of information system uses data visuali%ation technology to ana ly%e and display data for planning and decision making in the form of digiti%ed maps? A) HI(











#) (upplier performance $) #irect and indirect spending Answer& ! #ifficulty& '& !hallenging AA!(B& Analytical thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 7;) Fou Fou can use location analytics to determine how best to route your yo ur deliveries of products to retail outlets. Answer& :6$ #ifficulty& 1& $asy AA!(B& eflective thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 75) A HI( is a #(( designed specifically to work with spatial information. Answer& :6$ #ifficulty& 1& $asy AA!(B& Information technology *& 1+,'& >ow do business intelligence and business analytics support decision making? 7<) Big data is too unwieldy to analy%e for consumer preferences. Answer& CA($ #ifficulty& 1& $asy











#ifficulty& '& !hallenging AA!(B& Analytical thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 9+) What is a HI(? #escribe at least three ways in which a HI( could be used by b y modern business. Answer& Heographic information systems /HI() are a special category of #(( that use data visuali%ation technology to analy%e and display data for planning and decision making in the form of digiti%ed maps. HI( can best be used to support decisions that reuire knowledge about the geographic distribution of people or other resources in scientific research resource management and development planning. HI( have modeling capabilities allowing managers to change data and automatically revise business scenarios to find better solutions. Cor instance a company could cou ld display its customers on a map and then design the most efficient delivery route for its products. A second way in which it could cou ld be used would be to analy%e demographic information to decide where to open branch restaurants. A third use could be customer demographic data and map information to locate people who are likely to become customers for the company=s services. #ifficulty& '& !hallenging AA!(B& Analytical thinking *& 1+,'& >ow do business intelligence and business analytics support decision making? 9') Fou Fou are an analyst for a firm that imports and distributes specialty oils and vinegars and your company wants you to evaluate their options for taking advantage of cutting edge business













Answer& B #ifficulty& 1& $asy AA!(B& Information technology *& 1+,'& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group make decisions more efficiently? 97) An information information system for a building company that tracks construction costs for various pro@ects across the 6nited (tates would be categori%ed as a type of& A) B2-. B) -I(. !) J2I. #) H((. $) H#((.











make decisions more efficiently? 95) :he leading methodology for understanding the really important information needed by a firm=s e"ecutives is called the 00000000 method. A) digital dashboard B) balanced scorecard !) J2I #) data visuali%ation $) predictive analytics Answer& B #ifficulty& +& -oderate AA!(B& eflective thinking *& 1+,& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group











B) $(( !) !#(( #) HI( $) H#(( Answer& $ #ifficulty& +& -oderate AA!(B& Information technology *& 1+,& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group make decisions more efficiently? ;+) :he management methodology of using a firm=s strategy to generate operational targets for the business and measuring progress towards them using the firm=s enterprise systems is called& A) benchmarks.











*& 1+,& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group make decisions more efficiently? ;7) H#((& A) are designed to allow meeting attendees to share their thoughts in real,time with their peers. B) support decisions that reuire knowledge about the geographic distribution of resources. !) are only used with geographically dispersed attendees. #) facilitate the solution of unstructured problems. $) provide tools that allow managers to visuali%e data. Answer& # #ifficulty& +& -oderate AA!(B& Information technology *& 1+,& >ow do different different decision,making constituencies in an organi%ation use business











*& 1+,& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group make decisions more efficiently? ;<) -I( typically produce fi"ed regularly scheduled reports based on data e"tracted and summari%ed from the firm=s underlying transaction processing systems. Answer& :6$ #ifficulty& 1& $asy AA!(B& Information technology *& 1+,& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group make decisions more efficiently? 54) #(( are a special category of location analytics.













Answer& CA($ #ifficulty& '& !hallenging AA!(B& Information technology *& 1+,& >ow do different different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group











5<) #escribe the balanced scorecard model and its role in $((. Answer& :he balanced score card is a framework framework for operationali%ing a firm=s firm=s strategic plan plan by focusing on measurable outcomes on four dimensions of firm performance& financial business process customer customer and learning and growth. 2erformance on each dimension is measured using ey performance indicators /J2Is) which are the measures proposed by senior management for k ey











<+) Fou Fou are a city transportation planner and are interested in improving the city=s bus service. What types of analytic tools might help you do this and how would you use them? Answer& :o help plan an efficient bus system you could use some kind of decision support system /#((). Ideally Ideally you will want to use predictive analytics to see how potential changes in











*& 1+,& >ow do different decision,making constituencies in an organi%ation use business intelligence and what is the role of information systems in helping people working in a group make decisions more efficiently? <9) What are managerial roles and what are the three main categories of managerial roles?











Answer& CA($ #ifficulty& 1& $asy AA!(B& Application Application of knowledge *& 1+,' >ow do business intelligence intelligence and business analytics support support decision making?

Laudon Mis15e Chapter-12

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