Management Quiz - 38 (B School Questions)

1. Subordinates are vital in an organization for implementation of the ideas set forth by top management. The willingness of subordinates to take on additional responsibilities, is a factor that affects the degree of
[A]Centralization
[B]Decentralization
[C]Decision-making
[D]Controlling



2. An important issue in organizing is the extent to which authority is centralized, or its opposite, decentralization, in a formal organization structure. Centralization is at one end of a continuum and at the other end is decentralization. Centralization refers to
[A]The number of employees a manager can supervise
[B]The degree to which jobs within the organization are standardized
[C]The degree to which decision making is concentrated at a single point in the organization
[D]The unity of command within an organization



3. Which of the following refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed?
[A]Responsibility
[B]Authority
[C]Span of control
[D]Unity of command



4. 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



5. There are three major forms of divisional structure: product division, geographic division and customer division. Geographic Divisions are divisions designed to serve different geographic areas. Which of the following statements is false regarding Geographic Division or Departmentation?
[A]It allows a manager to pay special attention to the needs and problems of the local markets
[B]It provides facilities to local customers
[C]It helps managers get extensive knowledge of specialized activities
[D]Product function can be organized on the basis of territory by establishing plants in a particular region



6. Strategic Business Unit (SBU) is a more recent form of organization structure adopted by several companies. Which of the following is not correct regarding Strategic Business Unit (SBU)?
[A]All SBUs of an organization have the same mission
[B]An SBU has well defined competitor groups
[C]An SBU efficiently manages its resources in prime areas
[D]An SBU should have a proper size, that is neither too small nor too large



7. Departmentation can be done through four major structural alternatives: Functional structure, Divisional structure, Hybrid structure, Matrix structure. Of these, Functional departmentalization groups jobs by
[A]Tasks they perform
[B]Territory they serve
[C]Type of customer they serve
[D]Products they manufacture



8. Which of the following factors determine(s) an effective span of control?
I. Clarity and Delegation of Authority.
II. Use of Objective Standards.
III. Rate of Change.
[A]Only (I) above
[B]Both (I) and (III) above
[C]Both (II) and (III) above
[D](I), (II) and (III) above



9. Purchasing agents are responsible for timely and reliable flow of raw materials and public relations staff is responsible for developing and maintaining a favorable public image of the organization. All these jobs, also known as interface functions form part of the
[A]Boundary spanning sub system
[B]Technical subsystem
[C]Operational subsystem
[D]Managerial subsystem



10. If in an organization, individuals have adequate authority and also responsibility in achievement of organizational goals, the situation is called
[A]Downward delegation
[B]Authority on par with responsibility
[C]Well-defined hierarchy of authority
[D]Unity of direction



11. 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. He also has to think what he should offer in his next series of classes. Anil is operating under which of the following conditions?
[A]Uncertainty
[B]Certainty
[C]Risk
[D]Optimal decision-making



12. 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



13. 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



14. Once the best available alternative has been selected, it must be effectively implemented to achieve the objective for which it was selected. It is very much possible for a good decision to become ineffective due to poor implementation. Which of the following is important in effectively implementing the chosen alternative in the decision-making process?
[A]Double-checking your analysis for potential errors
[B]Ignoring criticism concerning your chosen alternative
[C]Getting upper-management support
[D]Allowing those impacted by the outcome to participate in the process



15. Managers who use a rational, intelligent and systematic approach are more likely than others to come up with high quality solutions to the problems they face. There are two major types of decision-making models. viz., the Rational Model and the Non-rational Models. Which of the following is false regarding Rational Model of decision-making?
[A]Managers are completely involved in rational decision-making processes
[B]Managers possess and understand all information that is relevant to their decisions at the time they make them
[C]Managers always make decisions, which are in the best social interests of their firms
[D]This view was in vogue during the first half of the nineteenth century