MBA Management 5 — Questions and Answers
Question 1: In project management, the Critical Path Method (CPM) is used to:
- Allocate budget across departments
- Identify the longest sequence of dependent tasks that determines minimum project duration (Correct answer)
- Assess team member performance during a project
- Prioritize customer requirements in product development
Correct answer: Identify the longest sequence of dependent tasks that determines minimum project duration
CPM identifies the critical path — the longest chain of dependent activities — which sets the earliest possible project completion date.
Question 2: Which leadership theory proposes that leaders adjust their style (directing, coaching, supporting, delegating) based on follower readiness and competence?
- Path-Goal Theory
- Leader-Member Exchange Theory
- Situational Leadership Theory (Correct answer)
- Transformational Leadership Theory
Correct answer: Situational Leadership Theory
Situational Leadership Theory by Hersey and Blanchard argues that effective leaders adapt their style to the development level of each follower.
Question 3: A company discovers that a competitor has launched a similar product. Management convenes an emergency meeting to decide a response. This is an example of which type of decision?
- Programmed decision
- Nonprogrammed decision (Correct answer)
- Routine operational decision
- Administrative decision
Correct answer: Nonprogrammed decision
Nonprogrammed decisions address novel, unstructured, high-stakes situations that require unique analysis and judgment.
Question 4: When a matrix organization assigns an employee to report to both a functional manager and a project manager, this violates which classical management principle?
- Division of labor
- Scalar chain
- Unity of command (Correct answer)
- Esprit de corps
Correct answer: Unity of command
Unity of command states that each employee should report to only one superior; matrix structures deliberately break this principle for flexibility.
Question 5: A startup uses OKRs (Objectives and Key Results) to align employee goals with company strategy. OKRs are best described as:
- A financial budgeting framework
- A goal-setting framework linking qualitative objectives to measurable outcomes (Correct answer)
- A performance review scoring system
- A customer satisfaction measurement tool
Correct answer: A goal-setting framework linking qualitative objectives to measurable outcomes
OKRs pair an ambitious qualitative Objective with specific, measurable Key Results to drive focused organizational alignment.
Question 6: Which type of organizational culture, as described by Cameron and Quinn's Competing Values Framework, emphasizes flexibility, creativity, and external focus?
- Hierarchy culture
- Market culture
- Clan culture
- Adhocracy culture (Correct answer)
Correct answer: Adhocracy culture
Adhocracy culture prioritizes innovation, risk-taking, and adaptability, making it common in entrepreneurial and tech-driven organizations.
Question 7: In supply chain management, 'just-in-time' (JIT) inventory is designed primarily to:
- Maximize warehouse storage capacity
- Reduce inventory holding costs by receiving goods only as needed (Correct answer)
- Increase safety stock to prevent stockouts
- Diversify the supplier base for risk management
Correct answer: Reduce inventory holding costs by receiving goods only as needed
JIT minimizes inventory carrying costs by synchronizing production and delivery with actual demand.
MBA Management 5
In project management, the Critical Path Method (CPM) is used to: