Question

11. financial crisis of 2008 revealed a huge failure at the major banks. The banks did not know their risk positions in credit-default derivatives. It often took months to process contracts and reconcile with counterparties. This type of activity falls under

a. contingency management

b. systems approach to management

c. operations management

12. Walmart is the master of supply chain management, finding the best sources for high-quality materials and supplies at the lowest cost. Walmart excels at

a. financial management

b. systems management

c. operations management

13. Gantt promoted a task-and-bonus pay plan that modified Taylor’s “a fair day’s pay for a fair day’s work” premise. If a worker took more than the standard time, his pay was docked. If he took less time, he was paid for the additional pieces of work and a bonus of up to 20% more. This was also known as

a. the incentive system

b. a bonus plan

c. the progressive rate system

Answer 1

The answer to question 11:

In the management of an organization, different approaches are there to explain the management concepts.

Contingency approach refers to the management style in which the leaders expect the unexpected events in business and respond to the situations accordingly. The sudden troubles in the banking system was unexpected. Hence, the correct answer is option (a) – contingency management.

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The answer to question 12:

Walmart is a retail store that sells the products at the lowest cost using different operations management strategies. Walmart uses different strategies related to supply chain and logistics management, store management, and use technology to provide low cost services. Hence, the correct option is (c) – operations management.

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The answer to question 13:

The payment system developed by Gantt provided the opportunity to earn more to the workers who wanted to work hard. This system is also known as progressive rate system. Hence, the correct option is (c) – progressive rate system.