Management Introduction Questions and Answers 311 to 320

Management Introduction 

Questions 311 to 320


311.
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.
312.
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.
313.
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.
314.
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.
315.
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.
316.
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.
317.
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.
318.
When managers delegate authority, they must allocate commensurate
(a) Responsibility                                   (b) Power                                              
(c) Money
(d)   Influence                                         (e) Respect.
319.
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.
320.
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.


Answers

311.
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.
312.
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.
313.
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.
314.
Answer : (b)
Reason : Equifinality implies reaching the same result by different means. Hence, option (b) is correct.
315.
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.
316.
Answer : (c)
Reason : In the given example, Hari possesses expert power since he possesses expert knowledge in the specified functional area.
317.
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.
318.
Answer : (a)
Reason : When managers delegate authority, they must allocate commensurate responsibility.
319.
Answer : (b)
Reason : Managers need fewer formal rules and regulations in an organization with a strong culture.
320.
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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