Get WGU (IAC1) Principles of Management at Western Governors University Exam Practice Questions - Real and Updated

Answer : B

A feature of a bureaucracy (vertical) organization is that formal position authority is generally the primary means of running the organization. This means that decisions and directives come from a hierarchical chain of command, and roles, responsibilities, and processes are clearly defined and standardized.

Formal Position Authority (Answer B): Bureaucratic organizations rely on a clear hierarchy where authority and decision-making processes are well-defined and based on formal positions.

Decentralized Decision Making (Answer A), Collaboration Across Departments (Answer C), and Answering to Multiple Bosses (Answer D): These features are more characteristic of organic or matrix organizations rather than traditional bureaucracies.

Answer : B

The activity of creating a corporate project team to develop a new product is called intrapreneurship. Intrapreneurship refers to the practice of fostering innovation and entrepreneurial skills within an organization by allowing employees to act like entrepreneurs while working within the company. This approach encourages the development of new products and services and enhances organizational growth.

Answer : B

The purpose of the Six Sigma Quality approach is to analyze the causes of product defects and to reduce variability in manufacturing and business processes. Six Sigma uses statistical methods to identify and eliminate defects, aiming for near perfection in production processes. It involves steps like defining the problem, measuring key aspects, analyzing the data, improving processes, and controlling the future process performance.

Answer : D

Entrepreneurs who want to start a new business need to assess levels of risk and innovation involved in establishing a new venture. The tool commonly used to assess these dimensions is the Entrepreneurial Strategy Matrix.

Entrepreneurial Strategy Matrix (Answer D): This matrix helps entrepreneurs evaluate their business ideas by plotting the level of innovation (low to high) against the level of risk (low to high). This analysis aids in understanding the feasibility and potential success of the new venture by identifying which strategies are likely to succeed given the level of risk and innovation involved.

Collaboration Tracking Matrix (Answer A) and Innovation Creation Diagram (Answer B): These are not standard tools used to assess risk and innovation in entrepreneurship as described in the textbook.

Entrepreneurial Loss Function Diagram (Answer C): This is not a recognized tool for assessing risk and innovation in entrepreneurial ventures as per the principles of management.

Answer : C

A benefit of a boundaryless organization is that employees may express their opinions freely. Boundaryless organizations eliminate traditional barriers between departments and hierarchical levels, fostering open communication, collaboration, and a free flow of information across the organization. This openness encourages employees to share their ideas and opinions without fear of repercussions, enhancing innovation and problem-solving.