SCENARIO 3-11

question 47

Multiple Choice

SCENARIO 3-11
Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over 10-weeks sometime in the past.

-Referring to Scenario 3-11,you will expect an increase in the DJIA to be associated with

• A)an increase in the S&P 500 index
• B)a decrease in the S&P 500 index
• C)no predictable change in the DJIA
• D)no predictable change in the S&P 500 index

---

Definitions:

Weber's Bureaucracy Theory

A theory proposed by Max Weber, focusing on the division of labor, hierarchy, and rules as means to achieve an efficient organization.

Classical Management

An approach to management based on structured hierarchy, clear functions, and an emphasis on planning, organizing, leading, and controlling.

Psychological Failure

A breakdown in psychological functioning, which can impair mental health and emotional well-being.

Bureaucratic Organization

A bureaucratic organization is a structured, formalized organization characterized by a clear hierarchy of authority, fixed area of activity, and strict rules and procedures designed to increase efficiency.