DSST Management 4 — Questions and Answers
Question 1: Which of the following best describes 'management by objectives' (MBO)?
- Managers set objectives without employee input
- Managers and employees jointly set goals and evaluate performance against them (Correct answer)
- Objectives are set by the board of directors only
- Performance is evaluated solely on financial metrics
Correct answer: Managers and employees jointly set goals and evaluate performance against them
MBO is a participative process where managers and subordinates collaboratively establish goals and use them as performance benchmarks.
Question 2: In project management, the critical path is defined as:
- The most expensive sequence of tasks
- The shortest possible project duration
- The longest sequence of dependent tasks determining project completion time (Correct answer)
- The path with the most resources allocated
Correct answer: The longest sequence of dependent tasks determining project completion time
The critical path is the longest chain of dependent activities; any delay on this path delays the entire project.
Question 3: Which type of control occurs during the transformation process to catch problems before output is complete?
- Feedforward control
- Concurrent control (Correct answer)
- Feedback control
- Preventive control
Correct answer: Concurrent control
Concurrent (steering) control monitors activities as they happen, allowing real-time corrections during the process.
Question 4: Chester Barnard's 'zone of indifference' refers to:
- Areas where managers lack authority
- The range of orders employees will follow without questioning them (Correct answer)
- Neutral territory between competing departments
- Tasks with no measurable outcome
Correct answer: The range of orders employees will follow without questioning them
Barnard's zone of indifference describes the set of directives an employee accepts and carries out without critical evaluation.
Question 5: Which of the following is an example of an informal organization?
- The official chain of command on an org chart
- A cross-functional task force appointed by the CEO
- A group of coworkers who regularly lunch together and share information (Correct answer)
- A standing committee with formal procedures
Correct answer: A group of coworkers who regularly lunch together and share information
Informal organizations arise spontaneously from social relationships and are not depicted in official organizational charts.
Question 6: The 'span of control' concept in management refers to:
- The geographic reach of a company's operations
- The number of subordinates a manager can effectively supervise (Correct answer)
- The range of products a division manages
- The duration of a manager's authority
Correct answer: The number of subordinates a manager can effectively supervise
Span of control specifies how many direct reports a single manager can oversee effectively.
Question 7: Which decision-making model assumes that managers have complete information and will select the optimal solution?
- Bounded rationality model
- Incremental model
- Rational model (Correct answer)
- Political model
Correct answer: Rational model
The rational (classical) model assumes perfect information, clear goals, and the ability to identify and choose the best possible alternative.
DSST Management 4
Which of the following best describes 'management by objectives' (MBO)?