Organizational Decision-Making Concepts

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Questions and Answers

What differentiates strategic decisions from routine decisions?

Strategic decisions are taken by lower management.

Routine decisions have long-term effects.

Routine decisions require development of alternatives.

Strategic decisions relate to policy matters and are taken at the top level. (correct)

Which type of decision can have its power delegated to a subordinate?

Personal Decision

Strategic Decision

Organizational Decision (correct)

Non-Programmed Decision

Which of the following decisions involves specific circumstances and is typically non-repetitive?

Non-Programmed Decision (correct)

Routine Decision

Operative Decision

Programmed Decision

Policy decisions are primarily concerned with which of the following?

Determining basic policies for the organization. Signup and view all the answers

What is a primary advantage of departmentation by product?

Performance of individual products can be assessed easily Signup and view all the answers

Which decision type typically involves lower-level management and follows established procedures?

Programmed Decision Signup and view all the answers

Which of the following is a disadvantage of departmentation by product?

Increased management costs due to service duplication Signup and view all the answers

How do operative decisions relate to policy decisions?

Operative decisions are less critical and derived from policies. Signup and view all the answers

In which situation would a personal decision likely be made?

Choosing whether to accept a job offer. Signup and view all the answers

Which departmentation method is most suitable for organizations with a large geographical market?

Departmentation by territory Signup and view all the answers

What is a key benefit of departmentation by territory?

Better co-ordination and supervision of local activities Signup and view all the answers

Which type of decision is key for long-term impact on organizational structure and objectives?

Strategic Decision Signup and view all the answers

What challenge is associated with departmentation by function?

Unclear accountability for product performance Signup and view all the answers

Which of the following outcomes is NOT associated with departmentation by product?

Operational cost reduction Signup and view all the answers

How does departmentation by product facilitate management's focus?

By concentrating on product-specific roles Signup and view all the answers

What issue may arise due to departmentation by function?

Difficulty in accurately measuring performance Signup and view all the answers

What is a key advantage of formal communication within an organization?

It means orderly flow of information. Signup and view all the answers

Which communication method is characterized by the flow of information from lower to higher levels in an organization?

Upwards Communication Signup and view all the answers

Which of the following is NOT an advantage of informal communication?

Improves formal documentation. Signup and view all the answers

What is the purpose of downward communication?

To communicate policies and instructions. Signup and view all the answers

Which type of communication is often informal and characterized by rapid information exchange?

Informal Communication Signup and view all the answers

Which form of communication is recognized for being formal and documented?

Written Communication Signup and view all the answers

Which communication direction involves individuals of the same status sharing information?

Horizontal Communication Signup and view all the answers

What is one of the main attributes of gestural communication?

It supplements verbal communication. Signup and view all the answers

What is the primary focus of managers regarding employees' physiological needs?

Ensuring appropriate salaries and breaks Signup and view all the answers

How can managers help fulfill employees' esteem needs?

By appreciating and rewarding their achievements Signup and view all the answers

What criticism does Maslow’s Hierarchy of Needs Theory face regarding its application to different individuals?

It assumes everyone has the same needs at all times Signup and view all the answers

According to the discussed theories, what does Theory X suggest about employees?

Employees require strict supervision and control Signup and view all the answers

Which of the following accurately describes an implication of Theory Y?

Organizations benefit from treating employees as self-motivated Signup and view all the answers

What management practice can help in satisfying employees' social needs?

Encouraging teamwork and organizing social events Signup and view all the answers

What does the limitation of Maslow's theory suggest about concepts like the starving artist?

Higher-order needs can motivate even when basic needs are unmet Signup and view all the answers

What is a significant characteristic of the managerial approach associated with Theory X?

Assumption of negative employee behavior Signup and view all the answers

What is the main focus of Herzberg's Two-Factor Theory?

Job enrichment to boost motivation and performance Signup and view all the answers

Which of the following is NOT considered a quality of a leader?

Effective decision-making Signup and view all the answers

According to the content, what limitation of the Two-Factor Theory involves the response analysis by raters?

Potential bias in analysis by raters Signup and view all the answers

What is a key difference between leaders and managers as described in the content?

Leaders guide and influence behavior towards common objectives Signup and view all the answers

Which of the following statements regarding employee dissatisfaction in the Two-Factor Theory is accurate?

Dissatisfaction is often attributed to external factors Signup and view all the answers

Which quality is shared by both leaders and managers?

Confidence Signup and view all the answers

What is one of the limitations stated about Herzberg's Two-Factor Theory?

It lacks a clear correlation between satisfaction and productivity Signup and view all the answers

Which of the following qualities is specific to managers and not mentioned among leaders?

Patience Signup and view all the answers

Study Notes

Organizational and Personal Decisions

Organizational decisions impact the working of the organization.
Personal decisions affect the decision maker's personal life.

Routine and Strategic Decisions

Routine decisions follow established rules and policies.
Strategic decisions are made at the top level of management and influence the organization's structure, objectives, and working conditions.

Programmed and Non-Programmed Decisions

Programmed decisions are made routinely within specific procedures.
Non-programmed decisions are non-repetitive and made in response to specific circumstances.

Policy and Operative Decisions

Policy decisions determine the organization's basic policies and are made at the top level of management.
Operative decisions are less important and relate to the day-to-day operations of the business.

Departmentation by Product

Each product division can be seen as a viable profit center for accountability.
Marketing strategies become more pragmatic.
Decentralization is facilitated.

Demerits of Departmentation by Product

Increased management costs.
High operating costs can prevent small and medium-sized businesses from adopting this method.
Coordination issues may arise at the top.

Departmentation by Territory

Suitable for organizations with a wide geographical market.
Markets are divided into sales territories, each managed by a territory executive.

Merits of Departmentation by Territory

Benefits of local operations are achieved.
Local customer groups receive full attention.
Better coordination and supervision of activities in a specific area are achieved.

Formal Communication

Orderly flow of information throughout the organization.
The source of formal communication is known.
Responsibility for actions can be fixed.
Facilitates control.

Informal Communication

It co-exists with the formal communication system.
Used when managers find it difficult to collect information from workers.
Known as "grapevine".

Directions of Communication

Downwards Communication: Information flows from a higher to lower level in the organization.
Upwards Communication: Information flows from a lower to higher level in the organization.
Horizontal Communication: Information flows among individuals at the same level.

Methods of Expression in Communication

Oral Communication: Communication through spoken words.
Written Communication: Communication through written messages.
Gestural Communication: Communication through gestures.

Maslow's Hierarchy of Needs Theory Implications

Physiological Needs: Managers should provide adequate salaries and breaks.
Safety Needs: Managers should provide job security, a safe work environment, and retirement benefits.
Social Needs: Managers should encourage teamwork and organize social events.
Esteem Needs: Managers should appreciate and reward employees.
Self-actualization Needs: Managers should provide challenging jobs and growth opportunities.

Limitations of Maslow's Theory

Different employees may be driven by different needs.
The theory is not empirically supported.
The theory is not applicable in all cases.

Theory X and Theory Y Implications

Theory X assumes employees dislike work and lack ambition. Managers need to use a strict, controlling approach.
Theory Y assumes employees are creative and motivated. Managers should create a supportive and participatory environment.

Limitations of Two-Factor Theory

Overlooks situational variables.
Assumes a correlation between satisfaction and productivity.
Reliability is uncertain.
Ignores blue-collar workers.

Leadership

The ability of managers to motivate subordinates.
Leaders are individuals who guide and direct others.
The ability to influence people to work towards common objectives.

Qualities of a Leader

Ability to inspire.
Vision.
Confidence.
Positive attitude.
Good communication skills.
Open-mindedness.
Enthusiasm.

Qualities of a Manager

Discipline.
Commitment to work.
Confidence.
Effective decision-making.
Competence.
Patience.
Etiquette.

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Description

Explore the various types of decisions within organizations, including routine, strategic, programmed, and non-programmed decisions. This quiz delves into how these decisions impact both the organization and individual lives. Test your understanding of departmentalization and decision-making processes.