Category: Management

➤ Why might a firm choose organic growth over a friendly merger?
Firms choose organic growth to maintain strategic control, protect company culture, and avoid integration risks that accompany friendly mergers. It lowers immediate debt and acquisition premiums. Organic strategies also build internal capabilities, foster innovation, and create sustainable competitive advantages through gradual market learning and stronger customer relationships, even if growth proceeds more slowly.

A major difference between exploratory and descriptive research is that exploratory research is characterized by the prior formulation of specific hypotheses.True or false
True
False

➤ When should you list “ability to type 40+ wpm” as required rather than preferred?
List typing speed as required when the role relies on fast, accurate input, such as data entry or transcription. Mark it preferred if speed boosts productivity but is not essential. Clarify testing expectations and allow flexibility for equally qualified candidates who can meet core responsibilities by other means.

➤ When do managers rely on reward or coercive power instead of legitimate power?
Managers use reward power to motivate performance through raises, bonuses, promotions, or recognition when positive incentives work. They use coercive power to enforce rules, correct serious misconduct, or deter harmful behavior through sanctions or disciplinary actions. Both should be applied sparingly and fairly to avoid resentment, reduced morale, or damage to trust and long-term commitment.

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