Decision-Making Process and Problem Solving

1. A manager sets a goal to improve employee productivity by 20% within six months. Which of the following best ensures this goal is effective?

• A. Making it broad and flexible so employees can interpret it in their own way

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  B. Focusing only on increasing work hours rather than overall efficiency

• C. Avoiding communication about the goal to reduce pressure on employees

• D. Setting specific, measurable, and time-bound targets to track progress

2. A company notices declining customer satisfaction scores. What is the best first step in the problem-solving process?



D. Increasing the marketing budget to attract new customers instead

• A. Immediately implementing new customer service policies without further analysis

• B. Identifying the root cause by gathering data and customer feedback

• C. Cutting costs in customer service to offset potential financial lossesering data and customer feedback

• D. Increasing the marketing budget to attract new customers instead

3. When evaluating decision criteria, which of the following should a manager consider most?

• A. The impact on employees, customers, and long-term business goals

• B. Only short-term financial gains are more important to sustain growth of the business

• C. The personal preferences of top executives should be at top priority as they know the business more

• D. The easiest and least time-consuming option

4. A company must choose between two suppliers: one offers lower costs but inconsistent quality, while the other has higher costs but reliable service. What is the best decision-making approach?

• A. Select the cheaper supplier because cost savings are always the priority

• B. Choose the more expensive supplier without further evaluation

• C. Weigh the risks and benefits of both options, considering long-term impact

• D. Delay the decision indefinitely to avoid potential consequences

5. When generating alternative solutions, which method encourages the most innovative thinking?

• A. Brainstorming ideas without immediate criticism

• B. Sticking to proven solutions to avoid risks

• C. Following only the suggestions of top management

• D. Ignoring employee input to maintain efficiency

6. Which of the following best explains why a structured decision-making process is important?

• A. It eliminates all uncertainty and 100 percent guarantees success of the business.

• B. It ensures consistency, reduces biases, and improves the quality of decisions.

• C. It replaces critical thinking with rigid procedures.

• D. It removes the need for flexibility in responding to unexpected challenges.

7. A business is considering automation to improve efficiency, but employees fear job losses. What is the best way to evaluate alternatives?

• A. Comparing different automation strategies while considering employee retraining opportunities

• B. Ignoring employee concerns and implementing automation immediately in the company to ensure a smooth process

• C. Delaying automation indefinitely to avoid conflict among employees who can perform easy tasks manageable to them

• D. Choosing the cheapest automation solution without considering employee impact

8. A company has three possible locations for a new office, each with advantages and disadvantages. Which decision-making tool would be most effective in selecting the best option?

• A. Choosing the location closest to the CEO’s residence for convenience as they must be in top priority

• B. A coin toss to ensure an unbiased selection among all the employees who work hard to ensure success

• C. A decision matrix weighing criteria such as cost, accessibility, and future growth potential

• D. Selecting the option with the lowest rent without considering other factors

9. After making a major decision, what is the most important step to ensure its effectiveness?

• A. Avoiding further evaluation to prevent second-guessing

• B. Implementing the decision and monitoring its impact over time

• C. Assuming the decision will work as planned without adjustments

• D. Making immediate changes if there is any initial resistance

10. A company must decide whether to launch a new product in a competitive market. What is the best approach?

• A. Conduct market research, analyze competitors, and evaluate financial risks before deciding

• B. Launch the product immediately without research to stay ahead of competitors' advance technology in processing

• C. Avoid the decision entirely to prevent possible failure of the product creation as this can lead to a lot of confusion

• D. Choose the cheapest production method and rely on marketing to boost sales