Management & Organization

Synergy is when two or more resources interact or cooperate to produce a combined effect that is greater than the sum of its separate parts. TRUE. FALSE.

The Horizontal Division of Labour works on the basis of allocating staff resources to areas that require those skills. TRUE. FALSE.

Organizational structure (OS) is the systematic arrangement of human resources in an organization so as to achieve common business objectives. TRUE. FALSE.

A multi-divisional structure is designed to manage diversification without controlling bureaucratic costs and control-loss problems. TRUE. FALSE.

Adizes traced the path of large and small organizations, and realized that most go through an unpredictable cycle of growth and change. TRUE. FALSE.

A firm’s break-even point occurs at the point where total revenue equals total costs. TRUE. FALSE.

In a process-based organization, the process owners replace departmental managers and many other leadership positions. TRUE. FALSE.

Management is a distinct process consisting of planning, organizing, activating and controlling to determine and accomplish the objectives by the use of people and resources. TRUE. FALSE.

A plan is defined as a pattern of purposes, policies, programmes, actions, decisions, or resource allocations that define what an organization is, what it does, and why it doe. TRUE. FALSE.

The manager who makes a quick decision is consistently more effective at timing the decision than one who takes more time to study the problem in detail and develop more alternative solutions. TRUE. FALSE.

The rational approach to decision making is the practice of selecting the first alternative that meets the decision maker’s minimum standard of satisfaction. TRUE. FALSE.

A manager’s freedom to make decisions depends largely on the manager’s position within the organization and its structure. TRUE. FALSE.

Although planning, organizing, and controlling are all managerial functions, planning is the primary management function. TRUE. FALSE.

The preparation of a plan can be more important than the plan produced. TRUE. FALSE.

As the rate of environmental change increases, planning becomes more difficult and planning horizons become shorter with less risks. TRUE. FALSE.

A plan that will achieve an objective in 15 months would generally be an operational plan. TRUE. FALSE.

Corporate strategy deals with what businesses an organization will be in and how its resources will be distributed among those businesses. TRUE. FALSE.

Operating systems consist of the activities and processes necessary to transform inputs into outputs. TRUE. FALSE.

Brainstorming is a method of generating ideas and sharing knowledge to solve a particular commercial or technical problem, in which participants are encouraged to think without interruption. TRUE. FALSE.

The Delphi method, also known as the estimate–talk–estimate technique, is a systematic and quantitative method of forecasting. TRUE. FALSE.

Management is a distinct process consisting of planning, organizing, activating (leading), and controlling in order to achieve organizational objectives through the use of people and resources. TRUE. FALSE.

Mass production focuses on low-cost production by using standardized and repetitive processes to manufacture the same line of products. TRUE. FALSE.

A PESTEL analysis is a framework used to analyze and monitor macro-environmental factors that may significantly affect an organization’s performance. TRUE. FALSE.

Synergy occurs when the combined effect of two or more resources is greater than the sum of their individual effects. TRUE. FALSE.

Corporate strategy defines the scope of a business in terms of the industries and markets in which it competes. TRUE. FALSE.

Brainstorming is a technique used to generate ideas in which participants work individually without interaction or interruption. TRUE. FALSE.

A diversification strategy is a corporate-level strategy aimed at increasing growth by expanding the range of products or markets in which a company operates. TRUE. FALSE.

The horizontal division of labour allocates staff resources according to the specific skills required by different tasks or functions. TRUE. FALSE.

Organizational structure refers to the systematic arrangement of roles and human resources to achieve common business objectives. TRUE. FALSE.

A differentiation strategy seeks to gain a competitive advantage by offering products or services that are perceived as unique in the marketplace. TRUE. FALSE.

Mass production is an industrial technique used to produce large quantities of similar products in continuous flows along production lines. TRUE. FALSE.

The break-even point of a firm is reached when total revenue equals total costs. TRUE. FALSE.

Greiner’s model of organizational growth helps explain the crises organizations face as they develop and expand. TRUE. FALSE.

In a process-based organization, process owners completely replace departmental managers and eliminate most leadership roles. TRUE. FALSE.

A strategy can be defined as a pattern of decisions, actions, and resource allocations that explain what an organization does and why it does it. TRUE. FALSE.

Adizes’ model suggests that organizations go through a predictable life cycle of growth and change. TRUE. FALSE.

The Delphi method is a forecasting technique based on structured expert judgment rather than purely quantitative data. TRUE. FALSE.

A diversification strategy is a practice used by firms to help expand and grow their business activities. TRUE. FALSE.

A multi-divisional structure is designed to manage diversification while controlling bureaucratic costs and loss of control. TRUE. FALSE.

Differentiation strategy involves leveraging a company’s unique brand or capabilities to achieve competitive advantage, especially in saturated markets. TRUE. FALSE.