Management Concepts Truefalse Cheat Sheet For Course Code Mgt101
Management Concepts Truefalse Cheat Sheet For Course Code Mgt101
Key 3 đề:
1. True
Theory: Matrix departmentalization is characterized by a dual authority structure where employees report
to both a functional manager (responsible for their technical expertise and performance) and a project
manager (responsible for project timelines and deliverables). This structure is designed to improve
coordination across departments and maximize resource efficiency.
Example: In a construction project, an engineer might report to both the Engineering Manager (functional
manager) and the Project Manager overseeing the construction project.
2. False
Theory: Scientific Management, pioneered by Frederick Taylor, focuses on improving efficiency through
time and motion studies, task standardization, and performance-based incentives. It emphasizes how tasks
should be performed by workers, not the overall management structure of the organization.
Example: In a factory, workers are trained to use standardized tools and techniques to minimize time
wastage while assembling products.
3. True
Theory: The function being described is primarily leading (or directing), one of the four core functions of
management (Planning, Organizing, Leading, and Controlling). Leading involves motivating, directing,
and influencing team members to achieve organizational goals.
Example: A sales manager energizes their team by setting targets, providing incentives, and motivating
them to achieve high sales performance.
4. False
Theory: Top-level managers focus on strategic decision-making, long-term planning, and organizational
vision, not supervising frontline workers. Supervising operatives is primarily the responsibility of first-
line or operational managers.
Example: A CEO sets the company’s vision and direction, while a factory supervisor directly oversees
factory workers.
5. False
Theory: Frequent feedback is considered an essential leadership behavior for improving performance,
clarifying expectations, and fostering employee engagement. Effective feedback helps in timely
corrections and continuous improvement.
Example: A team leader providing regular performance reviews and constructive feedback helps team
members stay aligned with goals.
6. True
Theory: Complicated tasks are characterized by low divisibility (hard to break into smaller, independent
tasks) and low repetitiveness (each task is unique or customized). Such tasks require high levels of skill,
planning, and coordination.
Example: Designing a custom skyscraper involves unique specifications and cannot be broken into
simple, repetitive tasks.
7. True
Theory: A calm environment refers to a stable, predictable market with minimal uncertainty, allowing
firms to plan long-term strategies confidently without significant market disruption.
Example: A utility company operating in a region with stable demand and clear regulations operates in a
calm environment.
8. False
Theory: The matrix configuration is a hybrid structure, combining functional and project-based
configurations. It integrates both structures to leverage the strengths of functional expertise and project-
based focus.
Example: In an IT firm, software developers report to their functional IT manager while also working
under a Project Manager for specific client projects.
9. True
Theory: A transnational organization balances global efficiency with local responsiveness by
standardizing certain operations globally while allowing customization based on regional requirements.
Example: McDonald’s offers globally standardized processes but adjusts its menu to suit local tastes (e.g.,
McAloo Tikki Burger in India).
10. True
Theory: Fragmented tasks are highly divisible and can be broken down into smaller, manageable parts,
reducing the need for complex coordination. In contrast, complicated tasks are less divisible and require
significant coordination.
Example: In a car assembly line, fragmented tasks (e.g., installing doors, painting, etc.) can be done
independently, requiring minimal coordination.
11. False
Theory: Controlling is one of the four primary management functions (Planning, Organizing, Leading,
and Controlling). The controlling function focuses on monitoring performance, comparing it with goals,
and taking corrective actions when necessary. It ensures that the organization stays on track toward its
objectives.
The function most associated with energizing, directing, activating, and persuading others is leading.
Leading involves motivating employees, communicating effectively, and inspiring teams to achieve
organizational goals.
Example: A sales manager motivates their team with incentives and clear communication (leading), while
a financial controller ensures that budgets are adhered to and deviations are corrected (controlling).
12. True
Theory: The behavioral approach to management, emerging from the Human Relations Movement (e.g.,
Elton Mayo and the Hawthorne Studies), focuses on understanding human behavior, motivation, group
dynamics, and employee satisfaction in the workplace. This approach emphasizes the need for systems
and processes that address personnel challenges and improve relationships between managers and
employees.
Managers using this approach prioritize employee well-being, teamwork, and addressing personnel
conflicts systematically.
Example: A company introducing an employee assistance program (EAP) to support workers facing
personal or professional challenges demonstrates a behavioral approach.
13. True
Theory: The stakeholder view of social responsibility, proposed by R. Edward Freeman, asserts that
organizations must consider the interests of all stakeholders, not just shareholders. Stakeholders include
employees, customers, suppliers, local communities, and even the environment.
Organizations adopting this view aim to create long-term sustainable value rather than focusing solely on
short-term profit.
Example: A company reducing carbon emissions to meet environmental regulations while also supporting
local community projects shows a stakeholder-oriented approach.
14. False
Theory: External controls rely on external measures like rules, regulations, audits, or third-party oversight
to monitor performance and ensure compliance. These controls focus on accountability but do not
inherently build commitment.
In contrast, internal controls—such as shared values, organizational culture, and intrinsic motivation—are
more effective in building commitment because they foster a sense of ownership and responsibility
among employees.
Example: An external audit ensures financial compliance but does little to increase employees’ emotional
commitment to the company. However, an internal recognition program (e.g., "Employee of the Month")
may foster stronger employee commitment.
15. False
Theory: Top-level managers (e.g., CEOs, Presidents, and Executive Directors) focus primarily on long-
term strategic planning and setting the overall vision and direction of the organization. They are
responsible for defining goals, making high-level decisions, and ensuring the organization is prepared for
future challenges and opportunities.
In contrast, middle-level managers deal with tactical planning, and lower-level managers (first-line
managers) handle short-term operational planning.
Example: A CEO sets a five-year strategic plan for global expansion, while a store manager creates a
weekly staffing schedule to meet daily operational needs.
16. False
Theory: An organization is defined as a structured group of people working together to achieve a common
goal or set of goals. While individuals within the organization may have their own personal goals (e.g.,
career advancement), their activities are coordinated and aligned to achieve the organization’s collective
objectives.
The essence of an organization lies in coordination, cooperation, and shared purpose rather than
independence.
Example: In a hospital, doctors, nurses, and administrative staff have different roles, but they work
collaboratively toward the shared goal of providing quality healthcare services to patients.
19. False: A conceptual (technical) skill is the ability to use special skills or expertise to do one’s work.
20. False: First-line managers are responsible for directing the day-to-day activities of employees. (đã sửa
thành đúng)
Giải thích:
1 True
Theoretical Background: Intellectual capital refers to the collective knowledge, expertise, and
commitment of an organization’s workforce. Competency refers to an employee's skills, knowledge, and
ability, while commitment refers to their dedication and willingness to contribute. Both elements are
essential; without one, intellectual capital cannot be maximized.
Example: A highly skilled software engineer (competency) who is also passionate about their company's
goals (commitment) generates more intellectual capital than a similarly skilled engineer who lacks
motivation.
2 True.
Theoretical Background: Internships bridge the gap between academic knowledge and practical work
experience. They offer students an opportunity to develop professional skills, build networks, and gain
real-world experience.
Example: A marketing graduate who completes an internship at a digital marketing firm is more likely to
secure a job there post-internship based on their demonstrated skills and experience.
3 True.
Theoretical Background: Globalization involves the integration of economies and societies across the
globe. It facilitates the free flow of goods, services, capital, and knowledge across borders, enhancing
competition and creating global markets.
Example: A company like Apple sources parts globally (e.g., chips from Taiwan, screens from South
Korea) to assemble its products in China and sell them worldwide.
4 True.
Theoretical Background: The glass ceiling is an invisible barrier preventing women and minorities from
reaching top-level leadership positions, regardless of qualifications or achievements.
Example: A qualified female executive repeatedly overlooked for a CEO position in favor of less
qualified male counterparts exemplifies the glass ceiling effect.
5 True.
Theoretical Background: Talent encompasses knowledge (what an employee knows), learning ability
(how they acquire new knowledge and skills), and the application of these in real-world tasks (how they
use their knowledge and skills effectively).
Example: A software developer’s talent is reflected not just in their coding knowledge but in their ability
to adapt to new technologies and create innovative solutions.
6 True.
Theoretical Background: Prejudice involves preconceived judgments or stereotypes about individuals or
groups based on race, gender, religion, or other characteristics, leading to unfair treatment.
Example: Assuming someone is not good at math simply because of their ethnicity is an example of
prejudice.
7 True.
Theoretical Background: The modern job market values adaptability, continuous skill development, and
self-motivation. Traditional job security is often replaced by employability through lifelong learning.
Example: A graphic designer must continuously learn new design tools and trends to stay relevant.
8 True.
Theoretical Background: Successful organizations focus on building strong employer brands, fostering
employee engagement, and providing growth opportunities to attract and retain talent.
Example: Google is known for its innovation-friendly environment and ability to attract top talent through
competitive benefits and workplace culture.
9 True.
Theoretical Background: Charles Handy's Shamrock Organization model suggests three types of workers:
core employees (full-time essential staff), contract workers (specialists hired for specific projects), and
part-time workers (flexible and temporary staff).
Example: A tech firm may have core staff for daily operations, contract programmers for a specific app
launch, and part-time customer service representatives.
10 False.
Theoretical Background: Virtual spaces (e.g., video conferencing, remote collaboration tools) have
reduced the need for physical meetings and international travel by enabling real-time virtual interactions.
Example: Teams across continents now collaborate through Zoom instead of traveling for in-person
meetings.
11 False.
Theoretical Background: Effective managers must coordinate efforts across departments, teams, and
sometimes external stakeholders, not just a few internal employees.
Example: A project manager may coordinate with internal developers, marketing teams, and external
vendors.
12 True.
Theoretical Background: Middle managers bridge top management's strategic goals and frontline
operations, overseeing large teams or divisions.
Example: A regional sales manager oversees multiple local sales teams.
13 True.
19 False.
Theoretical Background: This statement confuses conceptual and technical skills:
Conceptual Skill: The ability to see the big picture, understand relationships between various
parts, and make strategic decisions.
Technical Skill: The expertise and proficiency in performing specific tasks or using tools and
technology.
Example:
Conceptual Skill: A senior executive deciding to enter a new market based on analysis of global trends.
Technical Skill: An engineer designing a circuit board.
20 False.
Theoretical Background: First-line managers, also known as frontline managers or supervisors, oversee
daily tasks and ensure employees meet performance standards. They are the link between staff and middle
management.
Example: A restaurant shift manager ensures servers deliver timely service and follow restaurant
protocols.
Chapter 3: Planning
True:
1. Planning is a five-step process that includes defining objectives, determining current status relative to
objectives, developing premises regarding future conditions, analyzing action alternatives and choosing
among them, and implementing the plan and evaluating results.
2. Effective planning improves focus and flexibility, provides an action orientation, helps to improve
coordination, and facilitates better control and time management.
3. Planning is the process of deciding how to what you want to accomplish and how to do it.
4. Planning creates a solid platform for further managerial efforts at allocating and arranging resources to
accomplish essential tasks, guiding the efforts of human resources to ensure high levels of task
accomplishment, monitoring task accomplishment, and taking necessary corrective action.
5. Managers must have the insight and courage to be flexible in response to new circumstances.
6. Short-range plans cover one year or less into the future.
7. Strategic plans set broad, comprehensive, and longer-term action directions for the entire organization.
8. Effective time management involves choices about the allocation of time to the most important
priorities
9. Top-level managers spend more time with long-range planning.
10. In the planning process, objectives refer to the specific results or desired outcomes that one intends to
achieve.
Giải thích:
1 True.
Theoretical Background: Planning is a structured process aimed at setting goals and determining the best
way to achieve them. The five-step planning process includes:
Defining objectives – Identifying goals.
Determining current status – Assessing the present situation.
Developing premises – Anticipating future conditions.
Analyzing action alternatives – Identifying and selecting the best course of action.
Implementing and evaluating the plan – Executing and reviewing outcomes.
Example: A retail company planning to open 10 new stores will first set objectives, evaluate financial
capacity, predict market trends, explore locations, and finally execute the store openings while monitoring
progress.
2 True.
Theoretical Background: Effective planning aligns team efforts, anticipates changes, enhances
coordination, and helps managers control resources and time efficiently. Focus ensures attention on
priorities, while flexibility allows adaptation to unforeseen changes.
Example: A software company uses project planning tools like Asana or Trello to manage team focus,
timelines, and resource allocation effectively.
3 True.
Theoretical Background: Planning involves setting goals (what to accomplish) and determining strategies
or tactics (how to achieve them).
Example: A startup plans to increase its customer base by 50% within a year by launching a digital
marketing campaign.
4 True.
Theoretical Background: Planning serves as a foundation for organizing, leading, and controlling. It
ensures efficient resource allocation, proper task distribution, and accountability through monitoring and
corrective measures.
Example: A construction project plan allocates materials, sets deadlines, and assigns specific
responsibilities to workers while allowing adjustments when delays occur.
5 True.
Theoretical Background: Flexibility is essential in a dynamic environment. Managers must adapt plans to
address market changes, unexpected risks, or unforeseen opportunities.
Example: A tourism agency shifts its focus from international to domestic tourism during global travel
restrictions.
6 True.
Theoretical Background: Planning can be categorized into short-range (less than 1 year), medium-range
(1–3 years), and long-range (3+ years). Short-range plans focus on immediate goals and day-to-day
operations.
Example: A restaurant plans its seasonal menu for the upcoming summer months.
7 True.
Theoretical Background: Strategic plans outline the overall direction and long-term goals of an
organization. They are typically formulated by top management.
Example: A multinational corporation plans to become carbon-neutral by 2040.
8 True.
Theoretical Background: Effective time management focuses on prioritizing high-impact tasks and
avoiding distractions or low-priority activities. Tools like Eisenhower Matrix help identify priorities.
Example: A marketing manager focuses on preparing a major product launch presentation instead of
spending time on routine email tasks.
9 True.
Theoretical Background: Top managers focus on strategic goals and long-term planning, while middle
and frontline managers handle medium- and short-term plans, respectively.
Example: A CEO plans a five-year growth strategy, while a department head plans monthly team
performance targets.
10 True.
Theoretical Background: Objectives are clear, measurable goals that guide planning and performance
evaluation. Objectives follow the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-
bound).
Example: A retail chain sets an objective to increase quarterly sales by 15%.
Chapter 4: Controlling
1. False: Output standards (critical performance) measure effort in terms of the amount work expended
in task performance.
2. False: Budgets do not provide points of control. They are (NOT) merely estimates of expenses.
3. Planning and controlling are critical to meeting personal and organizational goals and objectives.
4. Controlling is a four-step process that includes establishing objectives, measuring actual performance,
comparing results with objectives and standards, and taking corrective action as needed.
5. Controlling ensures that the right things happen, in the right way, at the right time.
6. Internal control occurs when motivated individuals and groups exercise self-discipline in fulfilling job
requirements.
7. The central question of feedback control is: “Now that we are finished, how did we do?”
8. When discipline is handled in a fair, consistent, and systematic way, it is a useful form of managerial
control.
9. Management by exception is the technique of focusing managerial attention on situations where the
difference between actual and desired performance is greatest.
10. False: The central question of feedforward (Feedback) control is: “What can be done to improve
things right now?
Giải thích:
1 False.
Theoretical Background: Output standards measure results or outcomes of task performance, such as
quantity, quality, or cost efficiency. In contrast, input standards measure effort or resources expended,
such as hours worked or resources consumed.
Example:
Output Standard: Producing 100 units of a product per day.
Input Standard: Working 8 hours a day on a production task.
2 False.
Theoretical Background: Budgets are essential tools for planning and control. They set financial
expectations, provide benchmarks for evaluating performance, and identify areas requiring corrective
action.
Example: A marketing department's annual budget allocates $100,000 for advertising. Managers compare
actual spending against this budget to ensure financial discipline.
3 True.
Theoretical Background: Planning sets goals and defines how to achieve them, while controlling ensures
that activities align with plans through performance measurement and corrective action. These functions
are interdependent.
Example: A fitness trainer creates a workout plan (planning) and monitors weekly progress (controlling)
to help a client reach their fitness goals.
4 True.
Theoretical Background: The control process follows these four steps:
Establish objectives and standards – Define desired performance levels.
Measure actual performance – Assess results using key performance indicators.
Compare results with objectives – Identify discrepancies.
Take corrective action – Adjust processes or strategies to address deviations.
Example: A sales manager sets a target of 1,000 units per month, monitors sales data weekly, identifies
shortfalls, and adjusts sales strategies accordingly.
5 True.
Theoretical Background: Effective control ensures that organizational activities align with objectives, are
executed efficiently, and are completed on schedule.
Example: A project manager ensures a software development project adheres to timelines, budget
constraints, and quality requirements.
6 True.
Theoretical Background: Internal control refers to self-discipline and personal accountability, where
employees monitor their behavior without external enforcement.
Example: A remote worker meets deadlines and maintains productivity without frequent check-ins from
their manager.
7 True.
Theoretical Background: Feedback control evaluates completed activities to determine whether
performance goals were met and identifies areas for improvement in future tasks.
Example: After completing a product launch, a marketing team conducts a review to analyze campaign
performance and lessons learned.
8 True.
Theoretical Background: Fair and consistent discipline creates trust, prevents resentment, and reinforces
accountability. It’s an important part of managerial control to ensure behavior aligns with organizational
policies.
Example: A manager consistently applies performance improvement plans for employees who fail to meet
deadlines.
9 True.
Theoretical Background: Management by exception (MBE) is a control principle where managers focus
only on significant deviations from set standards, allowing them to prioritize critical issues.
Example: A factory manager investigates only those production lines falling far below expected efficiency
levels instead of monitoring every line equally.
10 False.
Theoretical Background: Feedforward control focuses on preventing problems before they occur by
addressing potential risks in advance. The central question is: "What can we do to ensure things go right?"
Example: Before launching a product, a company performs quality tests to prevent future defects and
complaints.
Chapter 5: Organizing
1. The matrix structure makes use of permanent cross-functional teams to integrate functional expertise in
support of a clear divisional focus on a product, project, or program.
2. Network organizations own only the support functions and outsource core functions.
3. False: Divisional structures can create healthy rivalries as divisions compete for available resources.
(đã sửa đúng)
4. A divisional structure groups together people who work on the same product or process, serve similar
customers or work in the same geographic region.
5. Organizing is the process of arranging people and other resources to work together to accomplish a
common goal.
6. False: When an organization chart shows vice presidents of marketing, manufacturing, finance, and
human resources reporting directly to the president of a company, the top management group is organized
as a divisional (functional) structure.
7. An organization chart shows positions and job titles, lines of authority, and formal communication
channels for a company.
8. The functional chimneys problem can slow decision-making, diminish cooperation and commitment to
a common purpose, and interfere with coordination across functions.
9. In the management process of organizing, the strategic leadership challenge is to choose the best
organizational form to fit the strategy and other situational demands.
10. A project team is set up for a particular task or project and disbands once it is completed.
Giải thích:
1 True.
Theoretical Background: The matrix structure combines functional and divisional structures, where
employees report to both a functional manager and a project or product manager. Cross-functional teams
bring together expertise from different departments to focus on specific projects or objectives.
Example: In a tech company, engineers, marketers, and designers from different functional areas work
together under a project manager to develop a new smartphone model.
2 True.
Theoretical Background: In a network organization, core functions (e.g., strategy, R&D, intellectual
property management) are typically retained internally, while non-core functions (e.g., manufacturing,
customer service) are outsourced. The goal is flexibility and cost efficiency.
Example: A fashion brand might retain design and marketing in-house while outsourcing manufacturing
and logistics to third-party vendors.
3 False.
Theoretical Background: In a divisional structure, each division operates semi-independently and may
compete for corporate resources like budget allocations, staffing, and executive attention. While
competition can drive performance, it can also lead to internal conflicts if not managed carefully.
Example: Two regional sales divisions might compete to achieve the highest quarterly sales to secure
larger budgets in the next fiscal year.
4 True.
Theoretical Background: Divisional structures organize resources around specific outputs or market
segments, such as products, customers, or geographic regions. This allows each division to focus on
specialized goals.
Example: A multinational corporation may have separate divisions for North America, Europe, and Asia
to tailor operations to regional market needs.
5 True.
Theoretical Background: Organizing is one of the four key functions of management (planning,
organizing, leading, and controlling). It involves assigning tasks, grouping jobs into departments, and
coordinating resources effectively.
Example: A hospital organizes its staff into departments such as surgery, emergency care, and radiology,
each with clear roles and responsibilities.
6 False.
Theoretical Background: This example describes a functional structure, not a divisional structure. In a
functional structure, employees are grouped by their expertise or function (e.g., marketing, finance). In
contrast, a divisional structure groups employees by product, geography, or customer segment.
Example:
Functional Structure: VP of Marketing, VP of HR, VP of Finance.
Divisional Structure: VP of Product A, VP of Product B, VP of Product C.
7 True.
Theoretical Background: An organization chart visually represents the hierarchy, roles, and reporting
relationships within an organization. It helps employees understand their responsibilities and
communication channels.
Example: In an organization chart, a marketing manager reports to the VP of Marketing, who in turn
reports to the CEO.
8 True.
Theoretical Background: The functional chimneys problem occurs in functional structures when
departments operate in silos, focusing on their goals without considering overall organizational
objectives. This leads to poor coordination and inefficiencies.
Example: The marketing team launches a campaign without consulting the production team, leading to
product shortages.
9 True.
Theoretical Background: Organizational structure must align with the company’s strategy, size, industry,
and environmental factors. Strategic leadership involves selecting the appropriate structure to optimize
efficiency, communication, and goal achievement.
Example: A startup may choose a flat structure for agility, while a multinational corporation may adopt a
matrix structure for better cross-functional coordination.
10 True.
Theoretical Background: Project teams are temporary groups formed to complete a specific task or
objective. Once the project is completed, the team disbands, and members return to their primary roles or
move to other projects.
Example: A construction company forms a project team to build a bridge. After completing the project,
team members are reassigned to other projects.
Part III:
3 đề:
1. Explain understanding of functions of management and give example to applying functions of
management in a business.
2. You are the CEO of a tourism company with 20 employees. Design the organizational structure of
the company and suggest task design fit for the company.
3. As a CEO of the company, you are required to apply functions of management in a business.
Explain and give examples.
Key:
The functions of management, or management process is planning, organizing, leading, and
controlling the use of resources to accomplish performance goals, including:
Planning is the process of setting goals and objectives and making plans to accomplish
them.
Organizing is the process of defining and assigning tasks, allocating resources, and
providing resource support.
Leading is the process of raising enthusiasm and inspiring efforts to achieve goals,
Controlling is the process of measuring performance and taking action to ensure desired
results.
Q1+3: Example of Applying the Functions of Management in a Business: A Restaurant Business
1. Planning:
The restaurant owner and management team set clear goals:
Objective: Increase monthly sales by 15% over the next six months.
Plan: Introduce a new seasonal menu, launch a social media marketing campaign, and offer
weekly discounts on selected dishes.
2. Organizing:
To achieve the set goals, management:
Assigns specific tasks to staff members (e.g., the head chef designs the new menu, marketing
manager oversees the social media campaign).
Allocates resources, such as budgeting for social media ads and purchasing premium
ingredients for the seasonal menu.
Ensures proper staffing during peak hours to handle increased customer flow.
3. Leading:
The restaurant manager motivates and inspires the team:
Conducts weekly team meetings to communicate goals and celebrate progress.
Encourages staff to provide excellent customer service by offering performance-based
incentives.
Leads by example, maintaining a positive attitude and demonstrating dedication.
4. Controlling:
Management monitors performance and ensures goals are being met:
Tracks sales data weekly to measure progress toward the 15% increase.
Collects customer feedback to evaluate satisfaction with the new menu items.
If sales targets are not being met, adjusts strategies (e.g., increasing social media promotions
or introducing limited-time offers).
Q2:
Functional structure:
Tier 1: CEO
Tier 2: Operations Manager — Oversees daily operations and coordination
Sales & Marketing Department (5 employees):
Sales Executive (2)
Marketing Specialist (2)
Customer Relationship Manager (1)
Tour Operations Department (7 employees):
Tour Coordinator (2)
Tour Guides (5)
Finance & Administration Department (3 employees):
Finance Officer (1)
Administrative Assistant (2)
Customer Service Department (3 employees):
Customer Service Representatives (3)
IT & Digital Support (2 employees):
IT Specialist (1)
Website & Booking System Manager (1)
Specialization: Each department focuses on specific tasks related to their function, ensuring
efficiency and expertise in their respective areas.
Centralized Decision-Making: Strategic decisions are made at the top by the CEO, while
department heads focus on operational management.
Improved Coordination: Clear reporting lines ensure accountability and smooth workflow across
the company.
Task Design Fit for the Company:
A. Sales & Marketing Department
Tasks: Promoting tour packages, generating leads, managing social media campaigns, building
partnerships with hotels and airlines, analyzing customer trends.
Design Fit: Employees will work collaboratively to develop marketing campaigns and sales strategies.
Each team member will focus on specific market segments (e.g., local tourists, international tourists).
B. Tour Operations Department
Tasks: Planning tour itineraries, managing logistics, coordinating transportation and accommodations,
guiding tourists, ensuring safety during tours.
Design Fit: Tour Coordinators will handle logistics and schedules, while Tour Guides will execute the
tours on the ground.
C. Finance & Administration Department
Tasks: Managing budgets, tracking revenue and expenses, handling payroll, processing invoices, ensuring
compliance with financial regulations.
Design Fit: The Finance Officer oversees financial planning, while Administrative Assistants handle day-
to-day administrative tasks.
D. Customer Service Department
Tasks: Handling customer inquiries, resolving complaints, providing pre-trip and post-trip support,
managing feedback forms.
Design Fit: Representatives will rotate between online customer support and in-person assistance at the
office.
E. IT & Digital Support Department
Tasks: Managing the company’s website, handling booking systems, ensuring cybersecurity, providing
technical support for online services.
Design Fit: IT Specialist ensures the smooth operation of digital tools, while the Website Manager focuses
on optimizing the online booking experience.
Key Suggestions for Efficiency:
Clear Reporting Lines: Each department head reports directly to the Operations Manager, who in turn
reports to the CEO.
Regular Meetings: Weekly team meetings to ensure alignment and address challenges.
Cross-Department Collaboration: Sales & Marketing teams should work closely with Tour Operations for
seamless service delivery.
Performance Metrics: Clear KPIs for each department to measure performance and address bottlenecks.
The decision-making process begins with identification of a problem and ends with evaluation of
results.
Scenario: You are the CEO of a mid-sized hotel chain facing declining customer bookings over the
last six months.
Evaluation Metrics:
o Website traffic and online sales data.
o Social media campaign performance (e.g., likes, shares, and conversions).
o Customer reviews and feedback surveys.
Corrective Action:
If the results fall short, the company will:
Increase promotional offers for online shoppers.
Adjust the pricing strategy for the sustainable clothing line.
Reassess social media campaigns for better engagement.
Problem-Solving
Problem Identification:
Problem: Sales across multiple retail stores have been declining by 20% over the past three quarters.
Symptoms: Fewer customers visiting stores, reduced average transaction size, and increasing
inventory backlog.
Impact: Falling revenue, increasing operational costs, and potential store closures.
Goal: Identify root causes and implement strategies to reverse the sales decline.
2. Analysis:
Openness to Problem-Solving:
The CEO organizes cross-departmental meetings with managers from Sales, Marketing, Supply Chain,
and Customer Service to gather insights.
Input from Sales Team: Competitors offer better discounts and loyalty programs.
Input from Marketing Team: Outdated advertising strategies with low digital presence.
Input from Supply Chain Team: Certain products are frequently out of stock.
Input from Customer Service Team: Customers complain about inconsistent product availability
and poor in-store experiences.
Result: Four key problem areas are identified: pricing competitiveness, marketing strategy, inventory
management, and customer experience.
Systematic vs. Intuitive Thinking:
Systematic Thinking:
o Data analysis reveals the top-performing stores have better inventory turnover and more
promotional offers.
o Customer feedback surveys show dissatisfaction with product availability and lack of
personalized promotions.
Intuitive Thinking:
o The CEO senses that the physical store layout feels outdated and doesn’t align with
customer preferences.
o Based on experience, the CEO proposes a pilot redesign of two flagship stores to test
engagement.
Result: Data highlights inventory gaps and pricing issues, while intuition suggests store redesign and
improved in-store experience.
Multidimensional Thinking:
The CEO addresses the problem from multiple angles:
1. Pricing Strategy: Introduce competitive discounts and a customer loyalty program.
2. Marketing Campaign: Launch targeted digital marketing campaigns and improve social media
presence.
3. Inventory Management: Implement real-time inventory tracking and restocking systems.
4. Customer Experience: Redesign two flagship stores to enhance layout and create interactive in-
store experiences.
Result: Each department takes ownership of their area with measurable KPIs tied to improvements.
3. Results:
After six months of implementing the changes:
Sales increased by 30% across pilot stores.
Inventory turnover improved by 40%, reducing overstock and stockouts.
Customer satisfaction scores rose by 25%.
The digital marketing campaign increased website traffic by 50%, driving in-store visits.
Key Takeaway: By combining openness to diverse team insights, balancing systematic data analysis with
intuitive decision-making, and addressing the issue through multidimensional strategies, the CEO
successfully reversed declining sales and strengthened the company’s market position.