Business Administration Interview Questions and Answers Page 4

What is the difference between centralization and decentralization?

Centralization is said to be a process where decision making is in the hands of a few managers or authority is concentrated. Only one or a few people have the authority to make decisions.

On the other hand, decentralization is a systematic delegation of authority at all the levels of the management of an organization. In decentralization, authority is delegated to different levels of management according to their knowledge and experience and they have the power to take decisions at different stages.

What is the main difference between Vertical and Horizontal Organizations?

Vertical- The vertical organization's structure is in a descending order from the top to bottom where the chain of command is distributed and the person at the top has the maximum power.

Horizontal- A horizontal organization has a team of employees working in the same designation and each person has pre-defined duties. These set of employees have similar lines of work with a less defined chain of command.

What do you understand the concept of departmentalization?

Departmentalization can be understood as the dividing of an organization into different departments where the tasks are assigned according to the departments' specializations in the organization.

What do you understand by Job enrichment?

Job enrichment can be considered a motivational technique that every organization uses in order to boost the morale of its employees. It gives additional responsibilities to the employees so that they manage their duties more by themselves.

What are the different types of management skills required?

People Skills- If you have the right people with the right skills, the output you will get from them will be more. So, managers have to give and receive constructive feedback to encourage continuous improvement.

Time Management- A manager should have the quality of being able to distinguish between what is important and what can wait. He should, accordingly, get into the proactive mode and should not be reactive every time.

Project Management- When managers have the skill of strategic thinking along with those of brainstorming and decision-making for any project, the end result that comes is always the best.

Conflict Management- Conflicts are a very common part of any organization, but its management gets difficult at some point in time. So negotiating skills in managers are always helpful for keeping projects and people on the track of achieving goals and objectives.

Other Skills- Stress-management skills are especially important during the times of conflicts. Office management skills such as procurement, reporting, hiring, and budgeting can also help keep things operating smoothly.

How do business policies help in business management?

An effective business policy must have the following features.

Specific- A business policy must always be specific in order to avoid difficulties in its implementation.

Clear- Policies mentioned must be very clear so that there is no misunderstanding.

Reliable- If the policies are reliable, they can be efficiently followed by the subordinates.

Appropriate- Appropriate policies are always helpful in achieving the organization's goals.

Simple- A policy must be simple and easy to be understood by all in the organization.

Flexible- A policy should be flexible to apply so that it gets easier for the line managers to use them as per the scenario in a repetitive manner.

Stable- If policies are not stable they will create uncertainties in the minds of those who look into it for guidance.