DSST Management 3 — Questions and Answers
Question 1: According to Maslow's hierarchy of needs, which level must be satisfied before esteem needs?
- Self-actualization
- Safety needs
- Social/belonging needs (Correct answer)
- Physiological needs
Correct answer: Social/belonging needs
Social needs (love and belonging) occupy the third tier, immediately below esteem needs in Maslow's hierarchy.
Question 2: A SWOT analysis examines an organization's Strengths, Weaknesses, Opportunities, and:
- Tactics
- Targets
- Threats (Correct answer)
- Trends
Correct answer: Threats
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, covering both internal and external factors.
Question 3: Which concept describes the tendency for groups to make riskier decisions than individuals would make alone?
- Groupthink
- Risky shift (Correct answer)
- Social loafing
- Anchoring bias
Correct answer: Risky shift
Risky shift (part of group polarization) occurs when group discussion pushes members toward more extreme, often riskier, decisions.
Question 4: Which budgeting approach requires managers to justify every expense from scratch each period?
- Incremental budgeting
- Rolling budget
- Zero-based budgeting (Correct answer)
- Flexible budgeting
Correct answer: Zero-based budgeting
Zero-based budgeting starts from zero each cycle, requiring justification for all expenditures rather than adjusting prior budgets.
Question 5: The managerial grid developed by Blake and Mouton identifies leadership styles based on concern for:
- Costs and quality
- People and production (Correct answer)
- Planning and control
- Innovation and stability
Correct answer: People and production
Blake and Mouton's managerial grid plots leadership style on two axes: concern for people and concern for production.
Question 6: Which term describes the formal authority a manager has over subordinates within the direct chain of command?
- Staff authority
- Functional authority
- Line authority (Correct answer)
- Advisory authority
Correct answer: Line authority
Line authority is the direct supervisory power a manager exercises over employees reporting to them.
Question 7: The 'equity theory' of motivation, proposed by Adams, suggests employees are motivated by:
- Achieving personal goals
- Receiving frequent praise
- Perceived fairness in the ratio of inputs to outcomes (Correct answer)
- Growth opportunities within the firm
Correct answer: Perceived fairness in the ratio of inputs to outcomes
Equity theory holds that employees compare their input/output ratio to others and seek fairness, adjusting effort accordingly.
DSST Management 3
According to Maslow's hierarchy of needs, which level must be satisfied before esteem needs?