Question : Statement 1: Effective management involves a top-down approach, where decisions flow from top-level management to lower levels.
Statement 2: Top-level managers have the most experience and knowledge to make crucial decisions.
Option 1: Both statements are true
Option 2: Both are incorrect
Option 3: Statement 1 is true, and Statement 2 is false.
Option 4: Statement 1 is false, and Statement 2 is true.
Correct Answer: Statement 1 is false, and Statement 2 is true.
Solution : The correct answer is (d) Statement 1 is false, and Statement 2 is true.
Statement 1:** Effective management does not necessarily involve a top-down approach. In fact, many organizations are moving towards a more participative management style, where decisions are made with input from all stakeholders, including employees at all levels. This is because lower-level employees often have the best understanding of the day-to-day operations of the organization and the needs of customers.
Statement 2: Top-level managers typically have the most experience and knowledge to make crucial decisions. They have a broad understanding of the organization's industry, competitive landscape, and financial situation. They are also responsible for setting the organization's overall strategy and direction.
