MPA Organizational Theory and Management 2 ā Questions and Answers
Question 1: The concept of 'bounded rationality,' associated with Herbert Simon, suggests that decision-makers:
- Always make fully optimal decisions given complete information
- Make 'satisficing' decisions because of cognitive limits, incomplete information, and time constraints (Correct answer)
- Are motivated primarily by self-interest in organizational decisions
- Follow rigid rules established by Weber's bureaucratic model
Correct answer: Make 'satisficing' decisions because of cognitive limits, incomplete information, and time constraints
Simon's bounded rationality holds that decision-makers cannot achieve perfect rationality because of cognitive limitations and incomplete information, so they 'satisfice' ā finding solutions that are 'good enough' rather than optimal.
Question 2: What is 'principal-agent theory' in public administration?
- A theory about how police principals direct field agents
- A framework explaining problems that arise when one party (agent) acts on behalf of another (principal) but may have differing interests (Correct answer)
- A model for recruiting senior executive service employees
- A theory about how legislative principals control the judiciary
Correct answer: A framework explaining problems that arise when one party (agent) acts on behalf of another (principal) but may have differing interests
Principal-agent theory analyzes the challenges that arise when agents (bureaucrats, contractors) may not fully act in the interests of their principals (legislators, citizens) due to information asymmetry and divergent goals.
Question 3: Which organizational structure features functional departments reporting to a central authority with clear top-down command?
- Matrix structure
- Network structure
- Hierarchical (line) structure (Correct answer)
- Collegial structure
Correct answer: Hierarchical (line) structure
A hierarchical or line structure organizes authority in a clear vertical chain of command, with functional units reporting upward to a single executive authority.
Question 4: What is 'organizational culture' in a public agency context?
- The formal mission statement and strategic plan of an agency
- The shared values, beliefs, norms, and assumptions that shape behavior within an organization (Correct answer)
- The demographic composition of the agency's workforce
- The set of procedures documented in the agency's operations manual
Correct answer: The shared values, beliefs, norms, and assumptions that shape behavior within an organization
Organizational culture encompasses the informal shared values, assumptions, and behavioral norms that influence how employees think and act within an agency, often powerfully shaping outcomes.
Question 5: Which theory of leadership focuses on adapting leadership style to the readiness and competence of followers?
- Transformational leadership theory
- Transactional leadership theory
- Situational leadership theory (Correct answer)
- Servant leadership theory
Correct answer: Situational leadership theory
Situational leadership theory (Hersey and Blanchard) holds that effective leaders adapt their style ā directing, coaching, supporting, or delegating ā based on the development level of each follower.
Question 6: What does 'new public management' (NPM) advocate as a reform strategy for government?
- Expanding the size and scope of the federal bureaucracy
- Applying private-sector management techniques like competition, performance measurement, and customer service to government (Correct answer)
- Strengthening civil service protections and reducing political appointments
- Centralizing all government functions under a single executive authority
Correct answer: Applying private-sector management techniques like competition, performance measurement, and customer service to government
NPM, influential in the 1980sā90s, promoted market mechanisms, decentralization, performance management, and customer orientation in government as alternatives to traditional bureaucracy.
MPA Organizational Theory and Management 2
The concept of 'bounded rationality,' associated with Herbert Simon, suggests that decision-makers: