Traditionally, decision-making by managers that is reasoned step-by-step has been considered preferable to intuitive decision-making. However, a recent study found that top managers used intuition significantly more than did most middle- or lower-level managers. This confirms the alternative view that intuition is actually more effective than careful, methodical reasoning.
The conclusion above is based on which of the following assumptions?
A. Methodical, step-by-step reasoning is inappropriate for making many real-life management decisions.
B. Top managers have the ability to use either intuitive reasoning or methodical, step-by-step reasoning in making decisions.
C. The decisions made by middle- and lower-level managers can be made as easily by using methodical reasoning as by using intuitive reasoning.
D. Top managers use intuitive reasoning in making the majority of their decisions.
E. Top managers are more effective at decision-making than middle- or lower-level managers.
OA IS E WHY IS B incorrect
decision making
This topic has expert replies
-
- Master | Next Rank: 500 Posts
- Posts: 234
- Joined: Fri Oct 01, 2010 7:28 pm
- Location: chennai
- Thanked: 5 times
- Followed by:4 members
- chris@magoosh
- GMAT Instructor
- Posts: 88
- Joined: Tue Jan 17, 2012 5:01 pm
- Thanked: 54 times
- Followed by:37 members
Interesting, question. Let's first take apart the argument, and then see why the validity of the argument depends on (E) more than it does (B).
Upper-level management relies on intuitive reasoning more than middle-level management, which relies more on methodical reasoning. Therefore, intuitive decision making is better.
What's the assumption here? That upper-level managers make good decisions. The correct answer will expose this assumption:
E. Top managers are more effective at decision-making than middle- or lower-level managers. THE ANSWER.
Now let's look at (B).
Even if the managers can only use intuitive reasoning, the argument doesn't necessarily fall apart. If top managers can only use intuitive reasoning but in doing so make more effective decisions than lower managers, then the argument still holds ------> Intuitive reasoning is better than methodical reasoning.
Again, the assumption here is that upper-level managers make more effective decisions. Hence (E).
Upper-level management relies on intuitive reasoning more than middle-level management, which relies more on methodical reasoning. Therefore, intuitive decision making is better.
What's the assumption here? That upper-level managers make good decisions. The correct answer will expose this assumption:
E. Top managers are more effective at decision-making than middle- or lower-level managers. THE ANSWER.
Now let's look at (B).
Even if the managers can only use intuitive reasoning, the argument doesn't necessarily fall apart. If top managers can only use intuitive reasoning but in doing so make more effective decisions than lower managers, then the argument still holds ------> Intuitive reasoning is better than methodical reasoning.
Again, the assumption here is that upper-level managers make more effective decisions. Hence (E).