MBA Management 3 — Questions and Answers
Question 1: Which organizational structure groups employees by function (e.g., marketing, finance, operations) across the entire company?
- Divisional structure
- Matrix structure
- Functional structure (Correct answer)
- Network structure
Correct answer: Functional structure
A functional structure organizes the company by specialized departments, enabling deep expertise and efficiency within each function.
Question 2: In Herzberg's Two-Factor Theory, which of the following is classified as a 'motivator' rather than a 'hygiene factor'?
- Company policy
- Salary
- Recognition for achievement (Correct answer)
- Working conditions
Correct answer: Recognition for achievement
Motivators like recognition, achievement, and growth drive job satisfaction, while hygiene factors only prevent dissatisfaction.
Question 3: A CEO delegates authority to regional managers who then adapt strategy for local markets. This describes which management principle?
- Centralization
- Decentralization (Correct answer)
- Scalar chain
- Unity of command
Correct answer: Decentralization
Decentralization pushes decision-making authority down to lower organizational levels closer to the action.
Question 4: The concept of 'span of control' in management refers to:
- The geographic reach of a company's operations
- The number of subordinates a manager directly supervises (Correct answer)
- The range of products a firm offers
- The degree of vertical integration in a supply chain
Correct answer: The number of subordinates a manager directly supervises
Span of control is the number of direct reports a manager can effectively oversee.
Question 5: Which stage of Tuckman's group development model is characterized by conflict and competition as team members assert their roles?
- Forming
- Storming (Correct answer)
- Norming
- Performing
Correct answer: Storming
The Storming stage involves interpersonal conflict as team members compete for roles and challenge the leader.
Question 6: A company implements a policy requiring all major expenditure decisions to be approved by headquarters. This is an example of:
- Decentralization
- Empowerment
- Centralization (Correct answer)
- Lateral communication
Correct answer: Centralization
Centralization concentrates decision-making authority at the top of the organizational hierarchy.
Question 7: Porter's Five Forces model is primarily used to:
- Assess employee performance
- Analyze the competitive intensity and attractiveness of an industry (Correct answer)
- Plan human resource allocation
- Design organizational hierarchies
Correct answer: Analyze the competitive intensity and attractiveness of an industry
Porter's Five Forces evaluates industry competition through buyer power, supplier power, threat of substitutes, threat of new entrants, and rivalry.
MBA Management 3
Which organizational structure groups employees by function (e.g., marketing, finance, operations) across the entire company?