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Friday, January 6, 2012

Management Quiz - 16

1. The open-system view of organizations stresses the need for adaptability in the organizational structure, and the interdependence of the system and the external environment. Open-system organizations have several common characteristics. Bajaj Auto’s entry into the motorcycles market in light of a fast declining demand for scooters is an attempt to achieve which of the following?
[B]Dynamic homeostasis

2. This is a much broader concept than authority, and is the ability of individuals or groups to induce or influence the beliefs or action of other persons and groups.

3. Management By Objectives (MBO) is a system aimed at achieving organizational objectives, enhancement of employee commitment and participation. In this regard, which of the following is a final step of a typical MBO process?
[A]The organization’s overall objectives and strategies are formulated
[B]Successful achievement of objectives is reinforced by performance based rewards
[C]The action plans are implemented
[D]Progress towards objectives is periodically reviewed, and feedback is provided

4. The BCG matrix provides a framework for evaluating the relative performance of various businesses in which a diversified organization works. In this regard, which of the following factors are considered in a BCG matrix?
[A]Types of risk associated with product development
[B]Threats that economic conditions can create in future
[C]Social factors
[D]Market shares and growth of markets in which products are selling

5. Today most of the business enterprises engage in strategic management, although the degrees of sophistication and formality vary considerably. In this scenario, identify the correct statement from the following with respect to Strategic Management.
[A]It seeks to maximize profit
[B]It identifies areas where the organization can build a competitive advantage
[C]It is short-term in nature
[D]It has little relevance to small organizations

6. The strap of Rahul's backpack tears off as he starts to throw it over his shoulder. On the way to school, he stops at the first store that carries backpacks, walks in, and purchases one off the front rack. Rahul has just made what type of a decision?
[A]Irrational decision
[B]Satisficing decision
[C]Risky decision
[D]Optimal decision

7. Anil, the manager of Internet Made Easy, is concerned. He is trying, like all technological based companies, to stay ahead of the competition by being the first to offer the new services available on the Internet. His business offers training to local businesses, and so he must offer the latest available information; however, he must also advertise the classes and the content, which means going to the publisher with that information six weeks before a class is to begin. What should his next series of classes offer? Anil is operating under which of the following conditions?
[D]Optimal decision-making

8. Based on the degree of certainty involved, every decision-making situation falls into one of the three categories. i.e., certainty, risk and uncertainty. In this regard, 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

9. Groups rather than a single individual most often make major decisions in organizations. Group decision-making is the norm in most large and complex organizations and it is associated with certain advantages and disadvantages. In this regard, 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 problem than an individual acting alone
[D]The group is more likely to use "groupthink" when coming to a decision

10. Which of the following decision-making models states that instead of searching for the perfect or ideal decision, managers frequently settle for one that will adequately serve their purposes?
[A]Incremental Model
[B]Garbage-can Model
[C]Satisficing Model
[D]Rational Model

11. 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. In this scenario, if a group of Afro-American female managers meet once a month to discuss possible career paths within their organization, this is an example of a(n)
[A]Nominal group
[B]Delphi group
[C]Interacting group
[D]Interest group

12. Decision-making is a systematic process and involves a series of steps. Any decision-making process would basically contain seven steps and one among them is evaluating the alternatives. In this step, the systematic evaluation of alternatives is usually done on the basis of five general criteria. They are feasibility, quality, acceptability, costs and ______.

13. Plans can be classified in a number of ways on the basis of the organizational level, frequency of use and the time frame. Rules, procedures, policies and strategies are different types of plans. Which of the following is the appropriate term to describe, "Before a health claim may be paid, the following steps must be taken”?
[D]Nonprogrammed decision

14. Tyrone currently holds a management position at XYZ Corporation. He is excellent at time management and does not hesitate to delegate tasks to subordinates. Tyrone feels the most challenged and performs at his best level when unique problems arise at his company. He is most often one of the first managers to come up with an effective resolution for the problem. Which of these can be stated of Tyrone?
[A]Tyrone is excellent with programmed decisions
[B]Tyrone relies too heavily on the work of others
[C]Tyrone is apparently risk averse
[D]Tyrone excels at deriving nonprogrammed decisions

15. Organizations are growing in size, in complexity and in geographical coverage, thereby increasing the workload of executives. In this scenario, the concept that defines the number of subordinates that report to a manager and that indirectly specifies the number of levels of management in an organization is called
[A]Authorized line of responsibility
[B]Unity of command
[C]Unity of direction
[D]Span of control