Management Introduction
Questions 311 to 320
Non-programmed decisions are those that deal with unusual
or exceptional problems. They are the decisions for which predetermined
decision rules are impractical because the situations are novel and/or
ill-structured. When managers behave in a random fashion in making
non-programmed decisions, the manager’s approach falls into which of the
following decision-making models?
(a) Rational model (b)
Satisficing model
(c) Incremental model
(d)
Brainstorming model
(e) Garbage-can model.
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Based on the degree of certainty involved, every
decision-making situation falls into one of the three categories: (i)
certainty, (ii) risk and (iii) uncertainty. When predictability is lower, a
condition of risk exists. Which of the following is a characteristic of decision-making
under risk?
(a) The
decision-maker has complete information about available alternatives, and has
a good idea of the probability of particular outcomes for each alternative
(b) The
decision-maker has complete information about available alternatives, but has
no idea of the probability of particular outcomes for each alternative
(c) The
decision-maker has incomplete information about available alternatives, but
has a good idea of the probability of particular outcomes for each
alternative
(d) Future
environment is unpredictable and everything is in a state of flux
(e) The
decision-maker is not aware of all alternatives, the risks associated with
each, or the consequences of each alternative, or their probabilities.
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Major decisions in organizations are most often made by
groups rather than a single individual. Group decision-making is the norm in
most large and complex organizations. There are different group
decision-making techniques. Two such techniques are Nominal Group technique and
Delphi technique. The difference between the Nominal Group technique and the
Delphi technique is
(a) One
is a verbal approach, one is written
(b) One
is a short term group, the other is long term
(c) One
is visual, the other is verbal
(d) One
is face-to-face, the other keeps group members anonymous
(e) One consists of experts, the other does not.
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Open systems can accomplish their tasks and meet their
objectives through different courses of action. Open systems do not need a
single ‘best’ method to achieve their objectives and accomplish their goals.
Which of the following terms implies this concept of reaching the same result
by different means?
(a) Differentiation (b)
Equifinality
(c) Dynamic Homeostasis
(d) Cost Leadership (e)
Entropy.
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Divisional structure is a type of departmentation in which
positions are grouped according to similarity of products, services or
markets. Which of the following is not
an advantage of Divisional Structure?
(a) Each
unit or division can respond or react quickly, when required, because they
normally do not need to coordinate with other divisions before taking an
action
(b) Coordination
is simplified as each division is similar to an organization, containing the
various functions within it
(c) Individuals
are able to develop in-depth areas of specialization to the same extent as in
a functional structure
(d) It
helps the organization to focus on serving a particular customer
(e) It
helps to fix responsibility and accountability for performance.
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Hari is the only person
who completely understands the new computer network in the office area.
Whenever anyone has questions, he/she goes to Hari. Hari possesses_________
power.
(a) Coercive (b)
Reward
(c)
Expert
(d) Referent (e)
Legitimate.
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Centralization is the systematic and consistent
reservation of authority at central points within an organization. Which of
the following characteristics makes centralization more appropriate?
(a) The
environment is complex and uncertain
(b) Decisions
are relatively minor
(c) Lower
level managers are capable and experienced decision-makers
(d) The
company is geographically dispersed
(e) Lower
level managers are reluctant to be involved in decision-making.
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When managers delegate
authority, they must allocate commensurate
(a)
Responsibility (b) Power
(c)
Money
(d) Influence (e)
Respect.
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Managers need fewer
formal rules and regulations in an organization, which has one of the
following characteristics
(a)
Weak culture (b) Strong culture
(c)
Tall structure (d) Culture never impacts structure
(e)
Flat structure.
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A person who had applied for the post of a service
representative, is asked to handle a simulated situation involving a
complaining customer, by the company. Which of the following selection
devices is being made use of?
(a) Application Blank
(b)
Intelligence Test (c)
Personality Test
(d) Work Sampling Test (e)
Knowledge Test.
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Answers
Answer
: (e)
Reason : The
Garbage-can approach to decision-making holds that managers behave in a
random fashion in making non-programmed decisions. That is, decisions occur
by chance and depend on such factors as the participants who happen to be
involved in decision-making, the problems about which they happen to be
concerned at the moment. Hence, option (e) is the correct answer.
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Answer
: (c)
Reason : The
characteristic of decision-making under risk is that the decision-maker has
incomplete information about available alternatives, but has a good idea of
the probability of particular outcomes for each alternative. Hence, option
(c) is correct.
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Answer
: (d)
Reason : The preference
or utility theory is based on the belief that individual attitudes toward
risk vary with events, with people and positions.
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Answer
: (b)
Reason : Equifinality
implies reaching the same result by different means. Hence, option (b) is
correct.
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Answer
: (c)
Reason : Divisional
Structure is a type of departmentation in which positions are grouped
according to similarity of products, services or markets. Individuals are
unable to develop in-depth areas of specialization to the same extent as in a
functional structure. Hence, option (c) is not an advantage of divisional structure. Options (a), (b), (d)
and (e) all are advantages of the divisional structure.
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Answer
: (c)
Reason : In the given
example, Hari possesses expert power since he possesses expert knowledge in
the specified functional area.
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Answer
: (e)
Reason : Centralization
refers to the degree to which decision-making is concentrated at a single
point in the organization. The characteristic that makes centralization more
appropriate is when lower level managers are reluctant to be involved in decision-making.
Hence, option (e) is correct.
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Answer
: (a)
Reason : When managers delegate authority,
they must allocate commensurate responsibility.
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Answer
: (b)
Reason : Managers need fewer formal rules
and regulations in an organization with a strong culture.
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Answer
: (d)
Reason : Work
Sampling Test is used as a means of measuring practical ability on a specific
job. The applicant completes some job activity under structured conditions.
Hence, option (d) is correct.
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Characteristics of Decision Making
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