Introduction to Management (MB111) : October 2004 Suggested Answers

Suggested Answers

Introduction to Management (MB111) : October 2004

1. Answer : (c)Reason : The three general types of managerial roles identified by Mintzberg are: interpersonal,informational, decisional roles.

2. Answer : (d)Reason : L.A. Allen defined organizing as "the process of identifying and grouping the work to beperformed, defining and delegating responsibility and authority, and establishingrelationships for the purpose of enabling people to work most effectively together inaccomplishing objectives".In the area of diversity, organizing involves establishing task forces or committees toexplore issues and provide ideas, carefully choosing work assignments to support thecareer development of all employees, and evaluating the extent to which diversity goalsare being achievedHence, from above discussion, we can infer that option (d) is correct.

3. Answer : (d)Reason : Scientific management conducts business or affairs by standards established, by facts ortruths gained through systematic observation, experiment, or reasoning.

4. Answer : (b)Reason : The social responsiveness of an organization can be measured on the basis of fairtreatment of employees; fair pay and safe working conditions.Hence from above discussion, we can infer that option (b) is correct.

5. Answer : (c)Reason : Immoral Management not only ignores ethical concerns, it is also actively opposed toethical behaviour.A characteristic of Immoral Management is that managers show lack of concern aboutothers' desire to be treated fairly.Hence from above discussion, we can infer that option (c) is correct.Options (a), (b), (d) and (e) are all characteristics of Moral Management.

6. Answer : (d)Reason : A standing plan is used for activities that recur regularly over a period of time and arepredetermined courses of action developed for repetitive situations. Hence, statement I isnot true.

7. Answer : (b)Reason : The various steps in the planning process are as follows:i. Analyze opportunities.ii. Establish organizational objectives.iii. Determine planning premises.iv. Identify alternatives.v. Evaluate alternatives by weighing them in the light of premises and goalsvi. Select the best alternative.vii. Implement the plan.viii. Review the implemented plan.Hence, from above discussion, we can infer that option (b) is correct.

8. Answer : (b)Reason : Strategic plan is used to establish overall objectives for the organization and position theorganization in terms of its environment.Facts for strategic planning are generally more difficult to gather than facts for tacticalplanning. 15Hence, from above discussion, we can infer that option (b) is correct.

9. Answer : (d)Reason : Plans that apply to the entire organization, that establish the organization's overallobjectives, and that seek to position the organization in terms of its environment arecalled Strategic plans.Hence, from above discussion, we can infer that option (d) is correct.

10. Answer : (b)Reason : Planning is a primary function as it precedes the execution of all other managementfunctions. So it is not a secondary function.Hence from above discussion, we can infer that option (b) is not a characteristic ofplanning.Options (a), (c), (d) and (e) are all characteristics of planning.

11. Answer : (d)Reason : The eight key result areas in which Peter Drucker advises managers to set strategic goalsinclude market standing, innovation, human resources, financial resources, physicalresources, productivity, social responsibility, and profit requirements. Inventory control isnot included.

12. Answer : (b)Reason : In strategic planning, facts are difficult to gather, and plans cover long periods of time.

13. Answer : (b)Reason : Margaret is a top executive with her company. Recently she has devoted her skills andtalents to the development of new organizational objectives and the manner in which herfirm can achieve those goals. It could be stated that Margaret is engaged in planning.

14. Answer : (a)Reason : When decision makers construct simplified models that extract the essential features froma problem without capturing all the complexities of a problem, they are acting underbounded rationality.

15. Answer : (e)Reason : As a practice, though not documented, a brokerage house tries to promote its ownemployees into a broker's slot whenever one becomes available. This is an example of anorm. Norms are standards set by a group that regulate and foster uniformity in memberbehaviors.(a) Rules are statements of actions that must be taken or not taken to a givensituation.(b) A procedure is a guide to action that explains in detail the manner in whichactivities are to be performed. (c) A policy is defined as a general guidelines for decisionmaking.(d)Management by objectives is an organizational planning technique in whichspecific goals are set collaboratively for the organization as a whole and every unit andindividual within it.

16. Answer : (b)Reason : (a) Equifinality is a general principle that suggests that open systems can accomplishtheir tasks and meet their objectives through different courses of action.(b) Dynamic homeostasis refers to the process of maintaining the internal balancenecessary for survival by importing needed resources from the environment.(c) Entropy is the tendency of a system to break down/degrade/become disorganized/getdisintegrated.(d) Differentiation is the tendency of a system to move towards increased specializationof various tasks.

17. Answer : (a)Reason : Power is a much broader concept than authority, and is the ability of individuals or groupsto induce or influence the beliefs or action of other persons and groups.Hence, from above discussion, we can infer that option (a) is correct. 1

8. Answer : (b)Reason : MBO is the joint setting of goals and objectives by superiors and subordinates and 16clarifying on the objective itself.The final step of a typical MBO process is that successful achievement of objectives isreinforced by performance based rewards.Hence, from above discussion, we can infer that option (b) is correct.

19. Answer : (d)Reason : Using the BCG matrix requires considering market shares and growth of markets inwhich products are selling.

20. Answer : (b)Reason : Strategic Management is the process by which managers find out ways to achieve acompetitive advantage for the organization's product or service offerings.Hence, from above discussion, we can infer that option (b) is correct.Options (a), (c), (d) and (e) are all incorrect regarding Strategic Management.

21. Answer : (b)Reason : Rahul, in the given example, made a satisficing decision.

22. Answer : (a)Reason : Anil, in the example given, is operating under conditions of uncertainty.

23. Answer : (c)Reason : The characteristic of decision-making under risk is that the decision-maker hasincomplete information about available alternatives, but has a good idea of the probabilityof particular outcomes for each alternative.Hence, from above discussion, we can infer that option (c) is correct.

24. Answer : (d)Reason : Sometimes cohesive “in groups” let the desire for unanimity override sound judgementwhen generating and evaluating alternative courses of action.Hence, from above discussion, we can infer that option (d) would generally not beconsidered an advantage of group decision-making.Options (a), (b), (c) and (e) are all advantages of group decision-making.

25. Answer : (c)Reason : Satisficing Model, proposed by Herbert Simon, states that instead of searching for theperfect or ideal decision, managers frequently settle for one that will adequately servetheir purposes.Hence, from above discussion, we can infer that option (c) is correct.

26. Answer : (e)Reason : If a group of Afro- American female managers meet once a month to discuss possiblecareer paths within their organization, this is an example of an interest group.Nominal group members are generally used to generate creative and innovativealternatives or ideas. Delphi groups is a form of group decision making which aims toachieve a consensus of expert opinion. Interacting form is the most common form ofgroup decision making. It is decision-making group in which members openly discuss ,argue about, and agree on the best alternative. A quality circle is a small group ofoperations employees who periodically brainstorm on how to increase the firm’s output,improve quality, or improve the efficiency of the workplace.

27. Answer : (d)Reason : Systematic evaluation of alternatives in the decision-making process is usually done onthe basis of five general criteria. They are feasibility, quality, acceptability, costs andethics.Hence, from above discussion, we can infer that option (d) is correct

28. Answer : (b)Reason : "Before a health claim may be paid, the following steps must be taken," is an example ofa procedure.

29. Answer : (c)Reason : At the pre-conventional stage of moral development, the decisions are influenced 17exclusively by personal interest and are made in terms of self-benefit as defined by therewards and punishments resulting from different types of behavior. Decisions made byexecutives at the conventional stage of moral development are influenced by theexpectations of others, including obedience to the law, response to the expectations ofsignificant others, and a general sense of what is expected. At the post-conventionalstage of moral development, the decisions are influenced by personal ethical principles ofwhat is right. These may or may not be in accordance with the rules or law of society.

30. Answer : (d)Reason : Tyrone excels at deriving nonprogrammed decisions.

31. Answer : (d)Reason : Span of Control is the concept that defines the number of subordinates that report to amanager and that indirectly specifies the number of levels of management in anorganization.Hence from above discussion, we can infer that option (d) is correct.

32. Answer : (c)Reason : Divisional Structure is a type of departmentation in which positions are groupedaccording to similarity of product, services or markets.Individuals are unable to develop in-depth areas of specialization to the same extent as ina functional structure.Hence from above discussion, we can infer that option (c) is not an advantage ofDivisional Structure.Options (a), (b), (d) and (e) are all advantages of Divisional Structure.

33. Answer : (a)Reason : (a) A functional structure suits small or medium-sized organizations that have a limitednumber of products or services.(b) A product structure is suitable to extremely large, complex and multi-productorganizations, where large differences in the product or service lines make coordinationwithin a functional design extremely slow and inefficient.(c) A territorial structure is adopted by organizations that operate over wide geographicareas such as banking, insurance, and transportation firms.(d) Large organizations requiring functional expertise and which operate in uncertainenvironments adopt a hybrid structure.(e) A matrix structure is usually found in construction, in the installation of electronicdata processing systems, in aerospace, or in a consultancy firm.

34. Answer : (a)Reason : Economies of scale and the ability to coordinate interdependent projects is the primarystrength of the matrix structure.

35. Answer : (b)Reason : (a) Survey feedback lets people know where they stand in relation to others onimportant organizational issues so that constructive problem solving can take place.(b) In process consultation, the consultant observes the group and gives feedbackregarding dysfunctions in such areas as decision-making, handling of conflicts, andcommunication patterns. The main aim of this technique is to help group membersgain the skills they need to identify and resolve group dynamics issues on their own.(c) Team building aims at helping work groups become effective at taskaccomplishment. The consultant helps in assessing group tasks, member roles andstrategies for accomplishing work tasks.(d) Third-party intervention is concerned with helping individuals, groups, or departmentsresolve, through problem solving and conciliation, serious conflicts that may becaused by suboptimal interpersonal relations or may relate to specific work issues.(e) Techno structural activities are intended to improve work technology and/or

36. Answer : (a)Reason : In Departmentation by Process or Equipment, activities are grouped on the basis ofprocesses or equipment. 18This type of Departmentation enables an organization to get the benefits of specialization,and makes optimum maintenance of resources and equipment.Hence from above discussion, we can infer that option (a) is false regardingDepartmentation by Process or Equipment.Options (b), (c), (d) and (e) are all true regarding Departmentation by Process orEquipment.

37. Answer : (a)Reason : Strategic Business Units (SBUs) are distinct little businesses set up as units in a largercompany to ensure that a certain product or product line is promoted and handled asthough it were an independent business.An SBU has a mission for itself that is unique and different from the missions of otherSBUs.Hence, from above discussion, we can infer that option (a) is not correct regardingStrategic Business Unit (SBU).Options (b), (c), (d) and (e) are all correct regarding Strategic Business Unit (SBU).

38. Answer : (e)Reason : Span of control refers to the number of subordinates, a superior can supervise efficientlyand effectively.The factors that determine an effective span of control are:I. Clarity and Delegation of Authority.II. Use of Objective Standards.III. Rate of Change.Hence, from above discussion, we can infer that option (e) is correct.

39. Answer : (a)Reason : Bethany is the only direct supervisor for all fourteen employees within her department.The practices of her company stipulate that employees only have to report to oneimmediate supervisor. This concept is referred to as unity of command.

40. Answer : (d)Reason : In the mentioned question AT&T is pursuing a corporate level strategy, which is definedas the set of strategic alternatives that an organization chooses from as it manages itsoperations simultaneously across several industries and several markets. Whereas abusiness level strategy is a set of strategic alternatives than an organization chooses fromas it conducts business in a particular industry or market. The strategy formulated by aspecific functional area in an effort to carry out business-unit strategy is Functional levelstrategy. Internal growth strategy is used for development of a firm in its own operations.A company is said to be pursuing a diversification strategy when it enters a new line ofbusiness.

41. Answer : (d)Reason : This is an aspect of organization structure that involves the specification of task activitiesassociated with a particular job.

42. Answer : (c)Reason : Staff authority is created when a purchasing department is created because the hospitaladministrator cannot effectively handle all purchasing.

43. Answer : (a)Reason : In the given example, Akram possesses coercive power since he is capable of coercingworkers into being in time.

44. Answer : (d)Reason : Organization Chart is a vital tool for providing information about organizationalrelationships.Its shows authority relationships and neglects significant informal and informationalrelationshipsHence from above discussion, we can infer that option (d) is false with respect toOrganization Chart. 19Options (a), (b), (c) and (e) are all true with respect to Organization Chart.

45. Answer : (d)Reason : Work Sampling Test is used as a means of measuring practical ability on a specific job.The applicant completes some job activity under structured conditions.Hence from above discussion, we can infer that option (d) is correct.

46. Answer : (d)Reason : Skills Inventory is a computerized database containing basic information about eachemployee that can be used to assess the likely availability of individuals for meetingcurrent and future human resource needs.Hence, from above discussion, we can infer that option (d) is correct.

47. Answer : (b)Reason : Job analysis is the process of determining the tasks that make up a job and the skills,abilities and responsibilities an employee needs to accomplish that job.Hence, from above discussion, we can infer that option (b) is correct.

48. Answer : (a)Reason : Empowerment allows the workforce total decision making power over their workprocessesEmpowerment, according to most definitions, must not be confused with giving theworkforce total control over company policy and strategy or anything above workplacelevel involvement.

49. Answer : (d)Reason : According to Referent power, people or groups may exercise influence, because othersbelieve in them and their ideas.Hence, from above discussion, we can infer that option (d) is correct

50. Answer : (c)Reason : The selection process consists of the following steps:(i) Preliminary Screening.(ii) Application Blank.(iii) Selection Test.(iv) Comprehensive Interview.(v) Reference Check.(vi) Physical examination of the candidate.(vii) Making the selection.Hence, from above discussion, we can infer that option (c) is correct.

51. Answer : (a)Reason : When a manager interviews a job candidate by asking him a list of questions from anoutline is an example of a structured interview. In this the interviewee has apredetermined set of questions that are asked in sequence with virtually no deviations. (b)A stress interview relies on a series of harsh rapid-fire questions that are indeed to upsetthe applicant and show how the applicant handles stress. (c) Unstructured interviews areinformal and unorganized.(d) A Comprehensive interview is an in-depth selectioninterview is designed to find out more about the applicant as an individual, and in general,obtain information of interest to the interviewer so that the suitability of the candidate forthe job and the organization can be determined. (e)Semi-structured interview is acombination of structured and unstructured interview.

52. Answer : (d)Reason : External recruitment will lead to job dissatisfaction among the potential internalcandidates of he organization.

53. Answer : (a)Reason : Behaviourally anchored rating scales contain sets of specific behaviours that representgradations of performance, are used as common reference points (or anchors) for ratingemployees on various job dimensions. 20Hence, from above discussion, we can infer that option (a) is correct.

54. Answer : (c)Reason : (a) Work simplification involves teaching workers the concepts of time and motionstudies, layout of work situations, and workflow analysis in order to improve workmethods.(b) Time-event network is a logical extension of the Gantt chart and uses Critical PathMethod to help in planning and controlling operations.(c) Value engineering involves analyzing the operations of the products or service,estimating the value of each operation, and modifying that operation so that the costis lowered.(d) Total Quality Management (TQM) calls for active participation of all the membersat all levels of the organization in order to ensure its (the organization’s) long-termcommitment to improvement of quality.(e) A quality circle is a group of people who belong to an organizational area and whomeet regularly to solve the problems they face at work.

55. Answer : (d)Reason : Compensation consists of wages paid directly for time worked or the number of unitsproduced, as well as more indirect benefits that employees receive as part of theiremployment relationships with an organization.Hence, from above discussion, we can infer that option (d) is correct.

56. Answer : (c)Reason : Mr. Jackson is good at conceptual skills which refer to the ability to think andconceptualize abstract situations. It is the ability to understand and coordinate the fullrange of corporate objectives and activities. (a)Technical skills include knowledge of andproficiency in activities involving method, process and procedures. (b) Design skills arethe ability to solve problems in ways that will benefit the enterprise. (d)Human skills arethe ability to work well with other people both individually and in a group. (e) PR skillsare the skill the manager maintains with his subordinates and people related to thebusiness.

57. Answer : (c)Reason : The conflict-resolution approach that corresponds with a high level of assertiveness and alow level of cooperativeness, is referred to as Forcing.Hence, from above discussion, we can infer that option (c) is correct.

58. Answer : (c)Reason : In negotiation and agreement method of overcoming resistance to change, managementneutralizes potential or actual resistance by exchanging something of value forcooperation.Hence, from above discussion, we can infer that option (c) is correct.

59. Answer : (e)Reason : The points that a manager should avoid in order to make their formal and informalappraisal programs effective are:I. Shifting Standards.II. Rater Bias.III. Different Rater Patterns.IV. Halo Effect.Hence, from above discussion, we can infer that option (e) is correct.

60. Answer : (d)Reason : It is valence that is explained in the given example.

61. Answer : (a)Reason : Self-actualization need is the drive to become all that one is capable of becoming.

62. Answer : (d)Reason : Motivation factors give rise to good feelings and raise performance levels by influencing 21the "will to work well".Recognition of work can be classified as a motivator according to Herzberg’s Two-FactorTheory of Motivation.Hence, from above discussion, we can infer that option (d) is correct.

63. Answer : (b)Reason : According to Vroom-Yetton Model, if a manager obtains the necessary information fromsubordinates, and then makes the decision himself/herself, then he would be usingAutocratic II leadership style.Hence, from above discussion, we can infer that option (b) is correct

64. Answer : (c)Reason : Expectancy Theory of Motivation holds that a person’s perception of achieving a prizedreward or goal through effective performance will motivate the individual.Hence, from above discussion, we can infer that option (c) is correct.The other theories are not applicable in this case.

65. Answer : (c)Reason : According to Maslow's Hierarchy of Needs Theory, physiological needs are the basicneeds of food, clothing and shelter.These needs are at the bottom of the hierarchy.Hence, from above discussion, we can infer that option (c) is correct.

66. Answer : (e)Reason : Alderfer proposed a condensed version of Maslow's Need Hierarchy theory with onlythree groups of core needs. viz., existence, relatedness and growth. According to thisERG theory, different needs can emerge simultaneously, and people can move backwardand forward through the need continuum as circumstances change. There is everypossibility that a higher-level need may emerge before a lower-level need, given the rightcircumstances.Hence, from above discussion, we can infer that option (e) is not true about Alderfer'sERG theory.Options (a), (b), (c) and (d) are all true about Alderfer's ERG theory.

67. Answer : (b)Reason : As per McGregor, Theory X managers assume that people prefer to be directed, wish toavoid responsibility, have little ambition, and above all, want security.Hence, from above discussion, we can infer that option (b) is not correct about his theory.Options (a), (c), (d) and (e) are all correct about his theory.

68. Answer : (d)Reason : According to the goal-setting theory all of the following statements are true except thestatement that goals should be set by upper management members.

69. Answer : (a)Reason : When a manager evaluates an employee highly on all aspects of his/her job performanceeven though, in reality, the employee excels at only one aspect, the manager is guilty ofhalo effect.

70. Answer : (a)Reason : Directive leadership style has a positive effect on satisfaction and expectancies ofsubordinates working on unstructured tasks. All the other statements are true of the pathgoaltheory of leadership.

71. Answer : (b)Reason : According to Hersey and Blanchard, when followers are in the initial “readiness” stage,the leader's behavior should be one of high task and low relationship.

72. Answer : (c)Reason : An autocratic leader tends to centralize authority, dictate work methods, and makeunilateral decisions. 22

73. Answer: (b)Reason : Leadership style 5,5 is known as 'organization-man-management' or 'middle-of-the-roadmanagement.' In this style managers show a moderate amount of concern for both peopleand production and have difficulty in bringing about innovation and change.

74. Answer : (c)Reason : Fiedler's least preferred coworker (LPC) questionnaire purports to measure the leader'sbehavioral orientation as either task-oriented or employee-oriented.

75. Answer : (b)Reason : Path-goal theory states that it is a leader's job to assist followers in attaining their goalsand to provide the necessary direction and support.

76. Answer : (d)Reason : Fiedler’s situational leadership is a contingency theory that focuses on the situation.

77. Answer : (a)Reason : Trait Theory of Leadership assumes that leaders share certain inborn personality traits.Hence, from above discussion, we can infer that option (a) is correct. 78. Answer : (b)Reason : According to the Ohio State studies, a leader who is high in initiating structure ischaracterized by behavior that attempts to organize work, work relationships, and goals. 79. Answer : (a)Reason : Charismatic leaders are perceived as agents of radical change rather than as caretakers ofthe status quo. 80. Answer : (b)Reason : A message that is generated by the receiver in response to the sender’s original messageis known as feed back. (b) is correct answer. 81. Answer : (c)Reason : The communication process is made up of various components. The message is the actualphysical product from the source encoding.Hence, from above discussion, we can infer that option (c) is correct. 82. Answer : (d)Reason : With regard to the time element of controls, concurrent controls monitor activities whilethey are being carried out.Hence from above discussion, we can infer that option (d) is correct. 83. Answer : (d)Reason : The steps in controlling are actual performance, measurement of performance,comparison of actual and standard, analysis of courses of deviation and corrective actionplan. (d) is correct answer. 84. Answer : (c)Reason: Debit service coverage ratio explains the relationship between the funds available:i. For servicing the the long term outside liabilities on one hand and amount of interestandii. Installment of long term outside liabilities on the other side.So, (c) is correct answer. 85. Answer : (e)Reason : Budgets are a means of translating diverse activities and outcomes into a commonmeasure. Organizational activities like equipment capabilities, physical units, types ofmachines and raw material availability come under production budget. (e) is correctanswer. 86. Answer : (c)Reason : MIS (Management Information System) incorporates an unusually wide variety ofknowledge areas. 23Hence from above discussion, we can infer that option (c) is not true about ManagementInformation System (MIS).Options (a), (b), (d) and (e) are all true about Management Information System (MIS).87. Answer : (d)Reason : Many large organizations today employ computerized inventory systems, whichautomatically place purchase orders wherever replenishments becomes necessary. It is aself-regulating control system which once put into operation, can automatically monitorthe situation. This type of control system is known cybernetic control system. It all othercontrol systems relies on human discretion. So (d) is correct answer. 88. Answer : (a)Reason : Current ratio is the ratio of current assets to total current liabilities and measures anorganization’s ability to meet short-term obligations.Hence from above discussion, we can infer that option (a) is correct. 89. Answer : (b)Reason : Debt-equity ratio indicates what percentage of the organization’s assets creditorsfurnish.(a) Current ratio is the ratio of current assets to current liabilities (c)Return oninvestment (ROI) is the ratio of net income to total assets.(d) Net profit margin is the ratioof net income to net sales. (e)Inventory turnover is the ratio of cost of goods sold toinventory. 90. Answer : (c)Reason : J.S.Adam’s equity theory points out that people are motivated to maintain fairrelationship between their performance and reward in comparison to others. (a) Maslow’sneed hierarchy classifies human needs into five categories: physiological, safety,belongingness, esteem, and self-actualization needs and states that they follow an order.A satisfied need no longer motivates. (b)Herzberg’s two-factor model distinguishesbetween motivators and hygiene factors. The presence of the former (motivators) causessatisfaction but their absence doesn’t cause dissatisfaction. The absence of the latter(hygiene factors) causes dissatisfaction but their presence doesn’t guarantee satisfaction..(d) Victor Vroom’s expectancy theory holds that people will be motivated to do things toachieve some goals to the extent that they expect that certain actions on their part willhelp them to achieve the goal. (e)Alderfer’s ERG theory categorizes human needs intothree: existence, relatedness, and growth needs. 91. Answer : (d)Reason: Inventory control system helps a manger to manage the inputs in such a way that they(inputs) are available at right time, at right place and in the right quantity with minimumcost of maintenance. 92. Answer : (a)Reason : It is the effort-performance linkage that is explained in the given example. 93. Answer : (c)Reason : Operations Management oversees the transformation process that converts resources suchas labor and raw materials into finished goods and services.Hence, from above discussion, we can infer that option (c) is true regarding OperationsManagement.Options (a), (b), (d) and (e) are all false regarding Operations Management. 94. Answer : (c)Reason : A successful JIT program requires that suppliers be located in close proximity of thecompany, so that materials can arrive as and when needed.Hence from above discussion, we can infer that option (c) would generally not beassociated with a successful JIT program.Options (a), (b), (d) and (e) would all be associated with a successful JIT program. 95. Answer : (d)Reason : Labor is common to both the productivity measures: total productivity and partialproductivity. 2496. Answer : (c)Reason : MIS (Management Information System) can be defined as an integrated, user-machinesystem for providing information to support managerial, operational and decision-makingfunctions in an organization.The first necessary step to effectively operate an MIS is determining information needs.Hence from above discussion, we can infer that option (c) is correct. 97. Answer : (c)Reason : (a) Flexi time, a system of flexible working hours, motivates the employees and henceimproves Quality of Work Life.(b) Job enrichment attempts to design a job in such a way that it becomes moreinteresting and challenging so that the jobholder makes meaning out of that. Thedegree of job enrichment determines the degree of QWL.(c) Job enlargement involves performing a variety of jobs or operations at the sametime. It does not motivate an employee because the basic nature of the job remainsthe same and hence no improvement in QWL.(d) Creation of autonomous workgroups helps in creating positive feelings amongemployees. They may be given freedom to choose their own teams, etc. which helpsimprove QWL.(e) Participation in decision-making, particularly in matters directly concerned with anindividual’s working, has an important bearing on his/her satisfaction andperformance. Higher degree of participation improves QWL. 98. Answer : (a)Reason : Ethnocentric (or home-country) orientation is an approach to international managementwhereby executives assume those practices that work in the headquarters.Hence, from above discussion, we can infer that option (a) is correct.The other orientations are not applicable in this case. 99. Answer : (b)Reason : Polycentric attitude is based on the notion that it is best to give foreign subsidiaries,staffed by local nationals, a great deal of managerial freedom.Hence, from above discussion, we can infer that option (b) is correct. 100. Answer : (c)Reason : Multinational corporation is an organisation that engages in production or serviceactivities through its own affiliates in several countries, maintains control over thepolicies of those affiliates and manager from a global prospective. (c) is correct answer.