Question : One way to think of the management hierarchy is as a chain of communication. The highest management makes all decisions in an organisation, therefore information moves slowly because it must pass through multiple levels. Response time is also a factor. This slows down decision-making and makes it challenging for an organisation to adjust to changing operating conditions.
Option 1: Centralised
Option 2: Decentralised
Option 3: Large
Option 4: Small
Correct Answer: Centralised
Solution : Centralization refers to the concentration of power in a small number of top-level decision-makers. Hence, the correct option is 1.
Question : When decision making authority is retained organisation is said to be by higher management level an __________.
Option 1: Decentralised
Option 2: Centralised
Option 3: Fragmented
Option 4: None of the above
Question : In many organisations, the top management actively participates in making all decisions, while in some, even the lower levels of management have this authority. Because decision-making power is shared with lower levels, those levels are positioned close to the action. The statement "Decision making authority is shared with lower levels and is therefore located nearest to the points of action" highlights a management approach.
Option 1: Authority
Option 2: Delegation
Option 3: Accountability
Option 4: Decentralisation
Question : The management principles are flexible to adapt to dynamic business environment. The given statement shows which significance of principles of management?
Option 1: Scientific decisions
Option 2: Effective administration
Option 3: Optimum utilisation of resources
Option 4: Meeting changing environment requirements
Question : Case Study: XYZ Corporation
XYZ Corporation is a manufacturing company known for producing high-quality electronic devices. It is divided into three levels of management: top management, middle-level management, and lower-level management. The company's main objective is to expand its market reach and maintain a strong reputation for innovation and customer satisfaction.
XYZ Corporation's management team is known for its ability to adapt to changing market conditions and technology advancements. This demonstrates the management principle of:
Option 1: Unity of direction
Option 2: Scalar chain
Option 3: Initiative
Option 4: Flexibility
Question : Decisions must be based on facts thoughtful and justifiable in terms of the intended purpose. The given statement shows which significance of principles of management?
Option 1: Optimum utilisation of resources
Option 3: Scientific decisions
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