PART I.

MULTIPLE-CHOICE QUESTIONS (2 marks)

Question 1. Match the decision-making models with their main characteristics
1.​ Incremental model => B
2.​ Rational model => D
3.​ Carnegie model => C
4.​ Garbage Can model => A
Question 2. Match the following psychological phenomena with the correct examples in the
decision-making process:
1.​ Escalation of commitment => C
2.​ Groupthink => D
3.​ Bounded rationality => B
4.​ Satisficing => A
Question 3. The MULTINATIONAL MATRIX STRUCTURE is characterized by => C

Question 4. Which of the following is NOT a characteristic of a MECHANISTIC

STRUCTURE? => C

Question 5. A company that values stability, efficiency, and adherence to procedures belongs to
which type of culture? => B

Question 6. In a “guided missile” culture, the focus is on => A

Question 7. Suppose an international retailer wants to change its supply chain after Covid-19.
According to bounded rationality, why might managers fail to choose the optimal option?
(choose all correct answers):=> A and B

Question 8. Which of the following are characteristics of Administrative Management theories?

(choose multiple answers): => B and D

PART II. ESSAY QUESTIONS (8 marks)

Question 1. Based on management theory and organizational structure, explain and clarify
Apple’s five organizational orientations. Do they conflict or complement each other? "Apple's
organizational structure is hierarchical and functional, designed to foster innovation and maintain
a clear vision for the business.

1. Hierarchical Structure:

At its core, the hierarchical structure ensures a top-down vision that aligns with Apple’s strategy
of design excellence and innovation. Under Steve Jobs' term, every decision had to go through
him. Jobs and only Jobs made all business decisions that affected the company. However, under
the leadership of Tim Cook, this hierarchy in Apple’s corporate structure has changed slightly.
The company now has collaboration between different offices, departments, and teams within the
organization, such as the software team and the hardware team. Apple’s vice presidents have
more autonomy, which was limited and minimal under Jobs. As a result, the company’s
organizational structure is now flexible, but still has a spoke-and-wheel hierarchy, with Tim
Cook at the center. This hierarchy connects directly to functional departments (R&D, marketing,
operations) ensuring technical expertise and efficiency. These functions are organized into
product teams, where each division translates the company’s vision, allowing for specialization
and accountability. For example, Apple has a senior vice president of retail and a senior vice
president of worldwide marketing. These leadership positions address the business needs of each
functional area. They also play as advisors to the chairman. Cook then consults from their
perspective and runs the entire business with advice or management input from the senior vice
president, who supervises the detailed operations of each division.

2. Product-Based Grouping:

The lower or the subordinate manager formation follows a Product Based Divisional structure,
which represents a divisional approach. This type of interaction focuses on the different types of
goods and services that the organization produces and markets. Each vice president ensures that
his or her product line excels efficiently or performs well without any challenges so that the
entire company has a special reputation to ensure the success of the organization. The upper and
lower levels in Apple’s business structure have product-based divisions, which is a derivative of
the divisional organizational structure. Apple's structure relies heavily on distinct functional
divisions such as Software Engineering, Hardware Engineering, Operations, Marketing, and
Retail. Each function is led by senior vice presidents who report directly to the CEO. For
example, Apple has a senior vice president of Software Engineering (iOS and macOS), a senior
vice president of Hardware Engineering (Mac, iPhone, and iPad), and a senior vice president of
Hardware Technology (hardware components).

3. Functional Departments:

Apple has maintained a functional structure since Steve Jobs returned in 1997. Changing to
operate as independent business units, Jobs laid off the general managers of all the business
units, put the entire company under one P&L, and combined the disparate functional departments
of the business units into one functional organization. This way of operating is based on the
principle of deep expertise, when those with the most expertise and experience in a domain
should have decision rights for that domain. All important decisions converge at the CEO
position, where Tim Cook occupies the only position on the organizational chart where the
design, engineering, operations, marketing, and retail of any of Apple’s main products meet.
What is surprising—in fact, remarkable—is that Apple retains it today, even though the company
is nearly 40 times as large in terms of revenue and far more complex than it was in 1998, Apple
remains stable as a functional structure. This shows that the nature of the model does not change,
only expanding many new functions (such as AI, services), thereby strengthening professional
advantages instead of dividing according to P&L structure or separate departments like other
large corporations.

4. Collaboration:

One of the special features of Apple’s organizational structure is the close collaboration between
functional leaders. Instead of a single general manager responsible for an entire product, Apple
forces department heads to work together to make strategic decisions. Collaboration across
different departments is critical. Important decisions are made collectively, by department
leaders, not by individual general managers. Since no general manager is responsible for the
entire product, department leaders must collaborate. They share responsibility for the company’s
overall performance. This increases internal cohesion and encourages cross-functional learning.
Deep expertise within each department, combined with open collaboration between departments,
is essential to Apple’s innovation. Therefore, collaboration at Apple is not just teamwork, but a
mandatory organizational mechanism that helps departments work closely together to drive
innovation.

5. Decentralization:

One of the most distinct features of Apple’s organizational structure is the close collaboration
between functional leaders. Because there is a general manager responsible for all products.
They distribute decision-making authority throughout the entire company, rather than
concentrating it at the top. Major decisions are made collectively, by division heads, not by
individual general managers. This both increases internal cohesion and encourages
cross-departmental learning. Furthermore, deep domain expertise, coupled with open
collaboration across functions, is essential to Apple’s innovation.

Do they conflict or complement each other? These orientations form a logical sequence:
hierarchy defines direction → functions provide expertise → product teams provide focus →
collaboration ensures unity → hierarchy promotes adaptability. Rather than conflicting, they are
tightly integrated into a system that balances control and flexibility. This holistic approach
explains Apple’s ability to innovate, maintain efficiency and global competitiveness.

Question 2.

1. Identify management problems at the XYZ chain:

The XYZ restaurant chain is facing serious management problems: a 35% turnover rate,
especially among young employees, monotonous work with close supervision and limited
opportunities for growth. Harsh disciplinary policies do not improve productivity but increase
stress and disengagement. As a result, the company suffers from high recruitment and training
costs, reduced service quality and customer dissatisfaction.
2. Explain the causes of these problems (using at least one management theory studied):

The reasons can be explained by management theories. According to Maslow's Hierarchy of

Needs, employees' higher-level needs for social belonging, self-esteem and self-actualization are
not met, leading to demotivation and turnover. In addition, the Contingency Theory sheds light
on the fact that managers have adopted a "one best way" approach focused on revenue which is
not appropriate in the context of a young, multinational workforce. Failure to adapt leadership
style to situational needs has created conflict.

3. Propose two solutions based on one management theory, and evaluate the advantages
and disadvantages of these solutions:

There are two possible solutions to these problems. First, implement employee engagement
programs (mentoring, feedback channels, participation in decisions) to meet social and
self-esteem needs. This strengthens loyalty, although it may slow down decision-making.
Second, adopt an adaptive management style based on Contingency Theory: empower younger
employees with recognition and career paths, while maintaining discipline and incentives in
stable branches. This flexible approach is effective but requires solid management skills. Overall,
meeting both human needs and situational fit are critical to XYZ's long-term success.