Question : Case Study 33: Creative Solutions
Creative Solutions, a design agency, is considering the concept of decentralization.
Question:
A limitation of decentralization is:
Option 1: Enhanced innovation
Option 2: Reduced decision-making speed
Option 3: Streamlined communication
Option 4: Improved employee empowerment
Correct Answer: Reduced decision-making speed
Solution : The correct answer is (b) Reduced decision-making speed
A limitation of decentralization is reduced decision-making speed. Decentralization involves dispersing decision-making authority across various levels of an organization. While this can promote employee empowerment, creativity, and innovation, it can also slow down decision-making processes as multiple decision-makers may need to be consulted or involved in the decision-making process. This can sometimes result in delays, especially in situations where quick and decisive decisions are necessary.
Decentralization benefits an organization by:
Option 1: Increasing role ambiguity
Option 2: Enhancing accountability
Option 3: Concentrating decision-making
Option 4: Limiting cross-functional collaboration
Question : Case Study 13: Creative Solutions
Creative Solutions, a design agency, has introduced job rotation to enhance employee development.
Job rotation benefits Creative Solutions by:
Option 2: Reducing employee accountability
Option 3: Enhancing employee skill sets
Option 4: Fostering centralization
The focus on employee development aligns with which principle of organizing for Creative Solutions?
Option 1: Equity
Option 2: Unity of command
Option 3: Scalar chain
Option 4: Unity of direction
Question : Statement 1: Marketing concept emphasizes building customer relationships through value creation.
Statement 2: Selling concept focuses on understanding customer needs to design better products.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
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