Question

Nikita is the manager of a local small hotel. Just today Nikita received word that a major convention will be coming to town next month, and the demand for hotel rooms is expected to skyrocket. In a conversation with the owner, she asked, "What should our approach to pricing be for the week of the convention? Should we require payment in full at the time of the reservation?" Which management method is Nikita using?

Multiple Choice

• the synergy method

• scientific management

• the systems viewpoint

• the devil's advocate method

• the contingency viewpoint

Answer 1

Answer is: The Contingency Viewpoint.

Reason: Here the pricing strategy is depending on multiple factors such as the demand, the uncertainty in coming for the reservation, etc. For this the owner wants to take a full payment during the reservation. When the business owner or manager considers multiple factors while coming to a conclusion, it is known as Contingency viewpoint.

Why other options are not correct:

ð Synergy method considers two different ways to come at a conclusion, and few parts from part one being used in part two. Here the case is not same. Hence it is an incorrect option.

ð Scientific Management analyzes and synthesizes the workflow. Here the pricing doesn’t require any analysis of workflow. It simply depends on the demand and probability of appearance. Hence this is an incorrect option.

ð System Viewpoint depends on the capability of the system to meet certain demand. But the pricing doesn’t depend on the capability to meet the requirement. Hence it is an incorrect option.

ð Devil’s advocacy encourages the prevention of group thinking and only one person takes the decision. But here the owner is discussing the case with the manager. Hence it is an incorrect option.

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