Assume Your Boss Asks You to Create a Spreadsheet to Evaluate

question 29

Multiple Choice

Assume your boss asks you to create a spreadsheet to evaluate the key variables that early contingency theories suggested were important for determining the appropriateness of managerial actions. Which variables would you need to include in the spreadsheet?

• A)Size of the organization, how customized the technology is, how turbulent/predictable the environment is, and what kind of individuals are employed by the organization
• B)Size of the organization, how customized the technology is, whether or not the organization operates globally, and the degree of political unrest in the environment
• C)Complexity of government regulations, stability of the environment, and interdependence across divisions of the organization
• D)Age of the organization, size of the industry, barriers to entry due to high capital requirements, and how customized the technology is
• E)Age of the organization, how customized the technology is, what type of products the organization sells, and how employees are compensated

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Definitions:

Mean

The average value of a set of numbers, calculated by dividing the sum of the numbers by the count of numbers.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize, control, or eliminate them.

Potential Project Risks

Identified factors that may negatively affect the success or progression of a project.

Risk Mitigation

The process of identifying, analyzing, and taking steps to reduce or eliminate the risks associated with an activity or project.