Future Business Leaders of America (FBLA) Business Management Practice Test

What is the effect of isolating groups from each other according to management principles?

1. It boosts individual performance

2. It boosts group performance

3. It enhances communication

4. It decreases levels of competition

The correct answer is: It boosts group performance

Isolating groups from each other typically leads to a decrease in overall group performance. When teams or departments operate in silos, they miss opportunities for collaboration, sharing of ideas, and leveraging each other’s strengths. Lack of interaction can lead to redundancy in work, reduced innovation, and inconsistencies in goals and strategies across the organization. Effective teamwork and open communication channels are crucial for maximizing performance; therefore, when groups are isolated, synergies that can enhance productivity and creativity are lost. By fostering inter-group communication and collaboration, organizations can see improved performance and better outcomes, highlighting the importance of teamwork in management principles. In contrast, boosting individual performance might occur in isolated settings, but at the cost of the collective effectiveness of the organization. Enhanced communication cannot happen in isolation, and while competition might decrease due to lack of visibility of others' work, this is not a desired effect overall in a well-functioning organization.