27 free flashcards covering all 5 units. Study key concepts, terms, and exam-relevant topics.
A company decides to rebrand itself and creates a new vision statement, but its mission remains the same. What principle applies in this scenario?
Mission remains constant, vision adapts
The company's mission is its underlying purpose, which remains the same, while its vision is its future aspiration, which can change.
A company's {{blank}} statement outlines its overall goal and purpose, while its vision statement describes its desired future state.
mission
The correct answer is based on the definition of a mission statement, which is often confused with the vision statement.
A company decides to restructure, aiming to increase efficiency by widening the span of control. What principle applies?
Reduced bureaucracy
Widening the span of control reduces the number of management layers, increasing efficiency and reducing bureaucracy.
A wide span of control is often associated with a {{blank}} organizational structure.
flat
A flat organizational structure has fewer management layers, which is often achieved with a wide span of control.
A company decides to give more autonomy to its regional managers, allowing them to make decisions without needing approval from headquarters. Which principle applies?
Decentralization increases flexibility
By giving regional managers more autonomy, the company is adopting a decentralized approach, which can lead to faster decision-making and increased flexibility.
In a {{blank}} organization, decision-making authority is concentrated at the top level.
centralized
A centralized organization is characterized by a top-down approach, where decision-making authority is retained by top management.
A company decides to enter a new market and wants to conduct a SWOT analysis to inform its strategic planning decisions
Apply SWOT to identify market opportunities and threats
The company should use the SWOT analysis to identify its internal strengths and weaknesses, as well as external opportunities and threats in the new market
A SWOT analysis is used to identify a company's {{blank}} and external threats
internal strengths and weaknesses
The SWOT analysis framework includes internal factors such as strengths and weaknesses, as well as external factors like opportunities and threats
A company decides to implement a new reward system to boost employee performance. Which leadership style is being applied?
Transactional leadership
Because the company is using rewards to motivate performance, a characteristic of transactional leadership.
A leader's style can be categorized as either {{blank}} or transactional, with transformational leaders focusing on inspiring and motivating employees.
Transformational
Correct because transformational is the other category of leadership style.
A company decides to implement a new employee recognition program, but first, it must address the employees' concerns about job security. What principle applies here?
Lower-level needs precede higher-level needs
The company must address the employees' safety needs before implementing a program that targets higher-level needs like esteem or recognition.
According to Maslow's hierarchy, {{blank}} needs must be met before an individual can pursue higher-level psychological needs.
physiological
The correct answer is 'physiological' because Maslow's hierarchy proposes that basic physiological needs must be met before higher-level psychological needs can be addressed.
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