Management Introduction Questions and Answers 151 to 160

Management Introduction 

Questions 151 to 160


151.
According to which of the following management approaches, does managerial practice depend on circumstances?
(a)
Systems approach
(b)
Contingency approach
(c)
Mc Kinsey’s 7-S framework
(d)
Empirical approach
(e)
Human relations approach.
152.
Five different workers perform different tasks contributing to completion of one specific job for instance preparing a Big Mac at McDonald's. This division of labour refers to which of Fayol’s principles of management?
(a)
Work specialization
(b)
Scalar chain
(c)
Order
(d)
Authority and responsibility
(e)
Centralization.  
153.
Managers’ making ethical decisions may belong to any of the three levels of moral development. Which of the following stages describes the pre-conventional level of moral development?
(a)
Following rules only when it is in one’s immediate interest
(b)
Living up to what is expected by people who are close to oneself
(c)
Maintaining conventional order by fulfilling obligations to which one has agreed
(d)
Valuing rights of others, and upholding non-relative values and rights, regardless of the majority's opinion
(e)
Following self-chosen ethical principles even if they violate the law.
154.
The only thing that is permanent in this world is change. A change is bound to occur in the internal environment or external environment, no matter what management does. Planning can’t eliminate change, but managers usually plan in order to
(a)
Decide what needs to be done when a change in environment takes place
(b)
Anticipate changes and develop the most-effective response to changes
(c)
Have the appropriate materials available when the demand for them comes about
(d)
Be prepared for when changes in management at the top occur
(e)
Recruit new people if old employees leave.
155.
As an organization grows in size and complexity, specialization of various tasks becomes a necessity, in most of the cases. Which of the following refers to the tendency of a system to move towards increased specialization of various tasks?
(a)
Equifinality
(b)
Focus
(c)
Differentiation
(d)
Dynamic Homeostasis
(e)
Cost leadership.
156.
In order to understand the opportunities and threats faced by an organization, managers should analyze their organization’s environment. Various tools available for the purpose, what are the three most effective tools that managers can use to analyze the organization’s environment?
(a)
Benchmarking, planning and evaluating
(b)
Environmental scanning, forecasting and benchmarking
(c)
Strategic planning, environmental scanning and TQM
(d)
Forecasting, budgeting and time management
(e)
Strategic planning, environmental scanning and management control.
157.
Companies identify their strengths, weaknesses, opportunities and threats in the business environment through SWOT analysis. Which of the following constitutes ‘potential resource weaknesses’ for an organization?
I.     A weak balance sheet burdened with too much debt.
II.     Loss of sales to substitute products.
III.    Sub par e-commerce systems and capabilities relative to rivals.
IV.   Costly new regulatory requirements.
V.    Not attracting customers as rapidly as rivals due to ho-hum product attributes.
(a)
Both (I) and  (II) above
(b)
Both (IV) and (V) above
(c)
(I), (III) and (V) above
(d)
(II), (III) and (IV) above
(e)
All (I), (II), (III), (IV) and (V) above.
158.
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. Which of the following would generally not be considered an advantage of group decision-making?
(a)
Groups generally come up with more and better decision alternatives than an individual can
(b)
The members of the group tend to support the implementation of the decision more fervently than they would if the decision had been made by an individual
(c)
A group can bring much more information and experience to bear on a decision or a problem than an individual acting alone
(d)
The group is more likely to use "groupthink" when coming to a decision
(e)
A group is able to give different perspectives to a problem.
159.
Which of the following statements is/are true about the satisficing decision model?
I.     Managers seek alternatives only until they identify one that looks satisfactory.
II.     Managers search for the perfect or ideal decision.
III.    It is appropriate when the cost of searching for a better alternative exceeds the potential gain that is likely by following the satisficing approach.
(a)
Only (I) above
(b)
Only (II) above
(c)
Only (III) above
(d)
Both (I) and (III) above
(e)
Both (II) and (III) above.
160.
An organization can be described as an open system because it
I.     Has interrelated and interdependent parts (departments and divisions) that function as a whole.
II.     Gets inputs from and distributes outputs to the external environment.
III.    Impacts, and is impacted by, the external environment. 
IV.   Is perfectly deterministic and predictable.
(a)
Only (II) above  
(b)
Both (I) and (II) above  
(c)
Both (III) and (IV)  above
(d)
(I), (II) and (III) above 
(e)
All (I), (II), (III) and (IV) above.     

Answers


151.
Answer : (b)
Reason : According to contingency approach to management, managerial practice depends on circumstances.
152.
Answer : (a)
Reason : Work specialization involves different people each doing a specific job.
153.
Answer : (a)
Reason : Pre-conventional Level of Moral Development is influenced exclusively by personal interest. It is concerned with following rules only when it's of interest.
Hence from above discussion, we can infer that option (a) is correct.
154.
Answer : (b)
Reason : Planning can’t eliminate change, but managers usually plan in order to anticipate changes and develop the most-effective response to changes.
Hence from above discussion, we can infer that option (b) is correct.
155.
Answer : (c)
Reason : Differentiation is the tendency of a system to move towards increased specialization of                                 various tasks.
Hence, from above discussion, we can infer that option (c) is correct.
156.
Answer : (b)
Reason : Environmental scanning, forecasting, and benchmarking are the three most effective tools that managers can use to analyze their organization’s environment.
Hence from above discussion, we can infer that option (b) is correct.
157.
Answer : (c)
Reason : The following constitute ‘potential resource weaknesses’ for an organization:
I.     A weak balance sheet burdened with too much debt.
III.    Sub par e-commerce systems and capabilities relative to rivals.
V.    Not attracting customers as rapidly as rivals due to ho-hum product attributes.
Statement (II) and (IV) are potential threats to an organization.
158.
Answer : (d)
Reason : Sometimes cohesive “in groups” let the desire for unanimity override sound judgement when generating and evaluating alternative courses of action.
Hence, from above discussion, we can infer that option (d) would generally not be considered an advantage of group decision-making.
Options (a), (b), (c) and (e) are all advantages of group decision-making.
159.
Answer : (d)
Reason : The following statements are true about the satisficing decision model:
I.     Managers seek alternatives only until they identify one that looks satisfactory.
III.    It is appropriate when the cost of searching for a better alternative exceeds the potential gain that is likely by following the satisficing approach.
Statement (II) Managers search for the perfect or ideal decision is true with respect to rational decision making.
160.
Answer : (d)
Reason : An organization can be described as an open system because it
I.     Has interrelated and interdependent parts (departments and divisions) that function as a whole.
II.     Gets inputs from and distributes outputs to the external environment.
III.    Impacts, and is impacted by, the external environment. 
A closed system is perfectly deterministic and predictable.


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