BUSİNESS MANAGEMENT - Deneme Sınavı - 4

Many organizations use management by objectives (MBO) instead of this traditional perspective. MBO is a process by which managers and employees at all levels set mutually agreed- upon goals. Those participatively set goals are used for motivating employees14 as well as for evaluating performance.

Most organizations have a two-phase process in making budgets. In the first phase, managers form a proposed budget. This provides a plan of the amount of money needed and is submitted to a superior or budget review committee. Then, by the end of the second phase, the manager receives an approved budget.

The decision-making process does not necessarily end with putting the decision into effect. The decision maker has to follow it up in order to check whether it is producing the expected benefits and generating some unexpected costs. At this stage, the decision maker or the implementer needs to collect information in order to see whether things are going in the right direction. In determining whether things are on track, one needs to know that implementation does not usually bring immediate results. In that case, the person who is making the decision should have a good enough idea about how long to wait before starting to collect and analyze the results.

Even though the time horizons for long-term and short-term might change from one sector to the other and from one company to the other, for most business organizations long-term planning has a time horizon that is more than 3 years, whereas short-term planning is done for a period less than a year. For this reason, the correct answer is A.

By looking at the present through the collection of hourly, daily, monthly data, short-term planning shapes the near future of the organization. This planning addresses short-term concerns like the condition of machinery and equipment used in production. For example, instant planning for the repair of a machine breakdown (calling and waiting for the service personnel) or fixing a small quality problem in a product (returning it back to the relevant phase of production for a reworking) are things that happen in the short run. For this reason, the correct answer is E.

The first step of the planning process is to identify organizational goals and objectives. For this reason, the correct answer is E.

Organizational goals should be measurable, results-oriented, realistic, challenging, and have a clear time frame. They should be stated in terms of anticipated outcomes rather than actions. For this reason, the answer is D.

In terms of time horizon, tactical planning often focused on 1–2 years in the future. For this reason, the answer is D.

An operational plan presents information to direct people in their day-to-day tasks that will support and enable the tactical plan. For this reason, the correct answer is C.

Decision making is the process of identifying a problem or opportunity and selecting among available alternatives to solve the problem or capitalize on the opportunity. For this reason, the correct answer is B.

The decision-making process does not start unless the relevant person or people see a problem or opportunity. A problem can be defined as an unfavorable difference between a desired position and a current position, whereas an opportunity can be defined as a possibility for bettering a position. For this reason, the correct answer is C.

Bounded rationality is the idea that in decision making, rationality is limited by the information at hand, the cognitive limitations of the human mind, and the finite amount of time to make a decision. The bounded rationality model is built on the fact that managers, as human beings, are limited by their ability to process information, therefore, they tend to satisfice rather than optimize. For this reason, the correct answer is A.