EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2025 – 2026
Weber's 5 main characteristic of an ideal bureaucracy - ANSWERS-1. Well
defined hierarchy
2. Formal rules and procedures
3. a clear division of labor (specialization)
4. impersonality, w/o reference or connection to a particular person
5. Careers based on merit
Flaws of classical viewpoint - ANSWERS-Too mechanistic (humans as cogs in a
machine)
Behavioral Viewpoint - ANSWERS-emphasized the importance of
understanding human behavior and of motivating employees toward
achievement
,Hugo Munsterberg - ANSWERS-1. Study jobs and determine which people are
best suited to specific jobs
2. Identify the psychological conditions under which employees do their best
work
3. Devise management strategies to influence employees to follow
management's interests
Industrial Psychology - ANSWERS-study of human behavior in the workplace
Mary Parker Follett - ANSWERS-1. Orgs operated as communities
2. conflicts should be resolved by talking over differences and collab on
solutions - integration
3. work process should be in control of workers with relevant knowledge,
rather than managers, who should act as facilitators.
Elton Mayo - ANSWERS-Hawthorne Experiment 1928, founder of the human
relations movement
Hawthorn Effect - ANSWERS-when people know that they are being
observed, they change their behavior to what they think the observer expects
or to make themselves look good
Human Relations Movement - ANSWERS-better human relations could
increase worker productivity [job satisfaction leads to better performance]
Planning - ANSWERS-setting goals and deciding how to achieve them
,Organizing - ANSWERS-arranging tasks, people and other resources to
accomplish the work
Leading - ANSWERS-motivating, directing, and influencing people to work
hard to achieve goals
Controlling - ANSWERS-monitoring performance, comparing it with goals, and
taking corrective action as needed.
Competitive Advantage - ANSWERS-the ability to produce outcomes more
EFFECTIVELY than competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - ANSWERS-1. Preference for the firms output
2. Cost advantage
Preference for the Firm's Output - ANSWERS-Value added - people choose the
firm's output over others/people are willing to pay more/premium
Cost Advantage - ANSWERS-Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will --
markets are the only thing putting pressure on prices.
, Economies of Scale - ANSWERS-[Efficiency] put downward pressure on costs
as output increases (bulk buying)
Economies of Scope - ANSWERS-[Efficiency] reduced cost because of shared
activities (similar packaging sizes for cigarettes and mac & cheese - 1 delivery
man - 1 dolly - shared activity)
Brand Name Recognition - ANSWERS-[Effectiveness] Association between
brand and something positive (Celebrity spokesperson, etc.)
Brand Loyalty - ANSWERS-[Effectiveness] the desire to pay more for the same
product (Switching costs)
Switching Costs - ANSWERS-costs that make customers reluctant to switch to
another product or service
Supply Channel - ANSWERS-[Efficiency & Effectiveness] Raw resources to end
users (integrated supply channel - downward pressure on costs OR flexible
supply channel)
Integrated Supply Chain - ANSWERS-all the activities that organizations
undertake to deliver value to the customer, such as working with suppliers
and distribution through convenient channels
Flexible Supply Chain - ANSWERS-Components of a supply system are
produced in different parts of the world then brought together to meet
consumer needs, allowing companies to choose from where they attain parts
to produce goods.