Questions MNGMNT PDF
Questions MNGMNT PDF
Questions MNGMNT PDF
In the past three to four decades, many management theorists, and writers have made
remarkable contribution in the study of management. By studying the various approaches
to management analysis, we can understand the concept of management and have a
better understanding of managerial functions. Which approach to management
emphasizes managing people by understanding their individual psychological needs?
(a) Empirical Approach (b) Decision Theory Approach
(c) Management Science Approach (d) Interpersonal Behavior Approach
(e) Contingency Approach.
2. The communication process is made up of various components. Which of the following is
the actual physical product from the source?
(a) Feedback (b) Filter (c) Message
(d) Channel (e) Understanding.
3. Which of the following would not be an accurate depiction of the differences between
strategic and tactical planning?
Strategic planning is developed mainly by upper-level management and tactical planning is
generally developed by lower-level management
Facts for strategic planning are generally easier to gather than facts for tactical planning
Strategic plans generally contain less details than tactical plans
Strategic plans generally cover a longer period of time than tactical plans
Managers who are engaged in the development of strategic plans tend to work in more
uncertainty than those managers engaged in the development of tactical plans.
4. Which of the following statements concerning grapevine is not correct?
Grapevine is generally used irregularly in organizations
Grapevine can and often does generate harmful rumors
Grapevine is used largely to serve the self-interests of people within it
Some managers use grapevine to their advantage
In time, and with proper pressure, grapevine can be eliminated.
5. The conflict-resolution approach that corresponds with a high level of assertiveness and a
low level of cooperativeness, is referred to as
(a) Compromising (b) Collaborating (c) Forcing
(d) Avoiding (e) Accommodating.
6. Mr. Sunil works for “Energy Engineering Works.” Apart from the regular compensation, the
company provides him with things such as tuition reimbursement, recreational
opportunities etc. What is the name given to these things of value?
(a) Incentives (b) Benefits (c) Rewards
(d) Compensation (e) Social benefits.
7. The fact that 70-80 percent of a manager’s time is taken up by his interactions with others,
highlights the need for effective communication for successful management. Which of the
following strategies is not likely to improve communication effectiveness?
Avoiding non-verbal cues
Using simple, unambiguous language
Using active listening techniques
Using appropriate and consistent nonverbal cues
Using the feedback loop in the communication process.
8. Two factor theory of motivation provides useful insights into the relationship between
individual and situational or hygiene factors. Which of the following is a hygiene factor?
(a) Achievement (b) Interpersonal
relations (c) Recognition
(d) Challenging work (e) Increased responsibility.
9. Identify the sequence of different steps in controlling.
Measurement of performance.
Comparison of actual and standard.
Analysis of causes of deviation.
Actual performance.
Corrective action plan.
(a) (III), (IV), (V), (I), (II) (b) (II), (III), (IV), (V), (I)
(c) (I), (II), (IV), (III), (V) (d) (IV), (I), (II), (III), (V)
(e) (V), (IV), (III), (II), (I).
10.JIT (Just-In-Time) inventory control is an approach to inventory control, which stipulates
that materials should arrive just, as they are needed, in the production process. Which of
the following would generally not be associated with a successful JIT program, for the
purpose of inventory control?
Well-organized receiving and handling of materials purchased from suppliers
Strong management commitment
Suppliers located in diverse and distant locations
High quality of materials purchased from suppliers
Dependable and long-lasting relationships with suppliers and customers.
Answers
11. Information that originates outside the organization is known as external information.
Which of the following is/are example(s) of external information in an organization?
Daily receipts and expenditures
Salesperson Quotas
Descriptions of customer satisfaction with products and services
Quantity of an item in hand or in inventory
Cost and selling price of the company’s item.
12. Which of the following decision-making models emphasizes short-run solution of a
problem rather than long-term goal accomplishment?
(a) Rational model (b) Satisficing model (c) Incremental
model
(d) Garbage-can model (e) Decision tree.
13. Sofia works in one of seven research and development departments at General
Automobile Corporation. This would suggest that General Automobiles has a
(a) Functional structure (b) Divisional structure (c) Flat
structure
(d) High degree of centralization (e) Tall structure.
14. Which of the following information processing systems gives the output in the form of
summary and exception reports that are useful to the managers?
(a) Decision support system (b) Management information system
(c) Office automation system (d) Transaction processing system
(e) Executive support system.
15. In which of Likert’s four systems of leadership, managers do not have complete
confidence and trust in subordinates but nevertheless, solicit advice from
subordinates while retaining the right to make final decision?
(a) Participative leadership style (b) Benevolent-authoritative leadership style
(c) Consultative leadership style (d) Exploitative-authoritative leadership style
(e) Trait theory of leadership style.
16. Performance appraisals are important in an organization because they
Provide systematic judgments to support promotions.
Provide a basis for coaching.
Provide a basis for counseling.
Let subordinates know where they stand with the boss.
(a) Only (I) above (b) Only (II)
above
(c) Both (I) and (IV) above (d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
17. Ratio analysis helps a manager to compare the performance of the organization with
its previous performance or the performance of its competitors. Which of the
following is a ratio of creditors’ contribution to that of the owners?
(a) Current ratio (b) Debt-equity ratio
(c) Return on investment (ROI) (d) Net profit
margin (e) Inventory turnover.
18. Which of the following inventory techniques uses cards to monitor inventory
movement?
(a) ABC Analysis (b) JIT
Approach (c) Kanban
(d) Kaizen (e) Economic Order Quantity.
19. A decision support system (DSS) is an interactive computer system used to plan and
make decisions. Which of the following is/are true with regard to Decision Support
System (DSS)?
Executive decisions are the focal points in DSS.
DSS specializes in easy-to-use software.
DSS employs interactive processing.
The control and use of DSS rests with the central information management
department.
(a) Only (I) above (b) Both (I) and (II) above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
20. Which of the following is/are postulates of the path – goal theory?
The leader clearly defines the path to goal attainment for subordinates.
The leader motivates subordinates to participate in decision-making.
The leader sets clear and specific goals for subordinates.
The leader suitably rewards employees as per their performance.
Only (II) above (b) Only (IV) above
(c) Both (II) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
Answers
11. Answer : (c)Reason : Descriptions of customer satisfaction with products and services are
examples of external information in an organization. Hence from above discussion, we can infer
that option (c) is correct.
Options (a), (b), (d) and (e) are all examples of internal information in an organization.
12. (c)Reason : Incremental model emphasizes short-run solution of a problem rather than long-
term goal accomplishment. (a) Rational model is a model of managerial decision-making, which
suggests that managers engage in completely rational decision process, ultimately make optimal
decisions and process, and understand all information relevant to their decisions at the time they
make them. (b) Satisficing model describe the way modern managers must, of necessity, make
decisions with incomplete information by choosing from among the few most likely alternatives.
(d) Garbage can model is a non-rational model of management decision-making stating that
mangers behave in virtually a random pattern in making non-programmed decisions. (e)
Decision tree is a quantitative decision-making tool based on a graphic model that displays the
structure of a sequence of alternative courses of action and usually shows the payoff associated
with various paths and the probabilities associated with future conditions.
13. (b)Reason : Sofia works in one of seven research and development departments at General
Automobile Corporation and this suggests that General Automobile has a divisional structure.
i.e. to say divisional structure is a type of departmentation in which positions are grouped
according to similarity of products, services or markets. (a) Functional structure is a type of
departmentation in which positions are grouped according to their main functional or specialized
area. (c) Flat structure is a structure that has few hierarchical levels and wide spans of control.
(d) High degree of centralization is the tendency to restrict delegation of decision-making in an
organization structure, usually by holding authority at or near the top of the organization
structure. (e) Tall structure is a structure that has many hierarchical levels and narrow spans of
control.
14. (b)Reason : MIS (Management Information System) gives the output in the form of summary
and exception reports that are useful to the manager.
15. (c)Reason : When managers have substantial but not complete confidence and trust in
subordinates and solicit advice from subordinates while retaining the right to make final decision,
Likert’s four systems of management describes it as consultative leadership style. (a) In
Participative leadership style the manager has complete trust and confidence in the
subordinates in all the matters. (b) In Benevolent leadership style the managers have a
patronizing confidence and trust in subordinates, solicit some ideas and opinions from
subordinates, motivate with rewards and some fear and punishment, permit some upward
communication and allow some delegation of decision-making but with close policy control. (d)
In exploitative-authoritative leadership style the managers represents doctorial leadership
behavior with all decisions made by the manager. (e) Trait theory of leadership style assumes
that leaders share certain inborn personality traits.
16. (e)Reason : Performance appraisals are important in an organization because they provide
systematic judgements to support promotions; provide a basis for coaching; provide a basis for
counseling; and let subordinates know where they stand with the boss.
17. (b)Reason : Debt-equity ratio indicates what percentage of the organization’s assets creditors
furnish. (a) Current ratio is the ratio of current assets to current liabilities. (c) Return on
investment (ROI) is the ratio of net income to total assets. (d) Net profit margin is the ratio of net
income to net sales. (e) Inventory turnover is the ratio of cost of goods sold to inventory.
18. Answer : (c)Reason : Kanban is a subsystem of the JIT approach involving a simple parts
movement system that depends on cards and containers to pull parts from one work center to
another. (a)ABC analysis is a technique of inventory management, in which the inventory is
distributed based on price & usage of the inventory. (b) A JIT is an approach to inventory control
that emphasizes having materials arrive just as they are needed in the production process.
(d) Kaizen is a Japanese term implying continuous improvement.
(e) EOQ is an inventory control method developed to minimize ordering plus holding
s, while avoiding stock out costs.
19. Answer : (d)Reason : The following are the characteristics of
DSS:
(I) Executive decisions are the focal points in DSS.
(II) DSS specializes in easy-to-use software
(III) DSS employs interactive processing.
The control and use of DSS rests with the users and not the central information management
department
Statement given in (IV) is incorrect; hence option (d) is the correct answer.
20. : (e) Reason : According to Path-Goal theory, the leader clearly defines the path to goal
attainment for subordinates, when leader motivates subordinates to participate in decision-
making and sets clear and specific goals to the organization and a leader should suitably reward
employees as per their performance. So, all the statements mentioned are true for path-goal
theory.
21. Behaviorally Anchored Rating Scales (BARS) is a sophisticated performance rating
method. Which of the following is not true with regard to BARS?
BARS minimizes subjective interpretation inherent in graphic rating scales
BARS makes use of ‘anchors’ (common reference points of performance)
BARS concentrates on job-specific behaviors and hence is highly meaningful
BARS is a simple and cost-effective rating method
BARS can be applied in organizations where a large number of people perform similar
jobs.
22. Which of the following is not true with regard to functional authority?
Functional authority is the authority staff members have over line members within
the limits of their functions
Functional authority has the same effect as line authority but it doesn’t have the right
that line authority has, to punish violations or deviations in order to ensure
compliance
Functional authority is limited to those areas where a staff member has some
technical competence
The use of functional authority should be restricted to the procedural aspects of a function
Functional authority is in sync with the principle of unity of command.
23. Creativity is an important factor in managing people. Which of the following is not
true with regard to the creative process?
Creativity is the ability to develop new ideas
The creative process starts with unconscious scanning
ntuition connects the unconscious with the conscious
nsight leads to intuition
Insight is tested against organizational reality.
24. According to "expectancy theory", the probability of an individual acting in a particular
way depends on
The personality of the individual and the likelihood it will change.
The company and its potential to be moving in the right direction.
The situation.
The strength of that individual's belief that the act will have a particular outcome and
on whether the individual values that outcome.
(a) Only (I) above (b) Only (IV) above
(c) Both (I) and (III) above (d) Both (II) and (IV) above
(e) (I), (III) and (IV) above.
25. Which of the following techniques for improving productivity aims at reducing costs
by analyzing and improving individual operations of a product or service?
(a) Work simplification (b) Time-event network (c) Value
engineering
(d) Total Quality Management (e) Quality Circle.
26. Span of control an important factor, which is to be taken into account when
undertaking organizational design. Maintaining a large span of control within an
organization is most effective in all except one of the following situations?
When subordinates prefer autonomy
When tasks are routine
When jobs are similar but have varying performance measures
When subordinates are highly trained
When managers are competent.
27. Functional job analysis is a widely used systematic job analysis approach. Which of
the following dimensions of an individual’s job does functional job analysis focus on?
Data, people and jobs pertaining to the individual’s job.
Interpersonal relationships required to perform the job.
Tools and equipment used by the worker.
Products and services produced by the worker.
(a) Both (I) and (II) above (b) Both (I) and (III) above
(c) Both (II) and IV) above (d) (I), (III) and (IV) above
(e) (II), (III) and (IV) above.
Answers
21. (d)Reason : BARS minimizes subjective interpretation inherent in graphic rating scales. They
make use of ‘anchors’ (common reference points of performance) and they concentrate on job-
specific behaviors and hence are highly meaningful. However, BARS are time-consuming and
costly to develop, as they should cover each dimension of all jobs in the department. As a result,
BARS tend to be used in situations in which relatively large numbers of individuals perform
similar jobs.
22. (e)Reason : The authority to control other departments, related to specific tasks, is known as
functional authority. It is defined as the formal authority staff members have over line members
within the limits of their functions. It has the same effect as line authority but it does not have the
right that line authority has, to punish violations or deviations in order to ensure compliance.
Functional authority is limited to those areas where a staff person has some technical
competence. The use of functional authority should be restricted to the procedural aspects of a
function. But functional authority violates the principle of unity of command since authority over
specific functional activities is exercised not only by line managers but also by staff managers.
23. (d)Reason : Creativity is the ability to develop new ideas. The creative process comprises four
phases: unconscious scanning, intuition, insight, and logical formulation. Intuition connects the
unconscious with the conscious, and leads to insight. In the final phase of the creative process,
insight is tested against organizational reality.
24. : (b)Reason : According to "expectancy theory", the probability of an individual acting in a
particular way depends on the strength of that individual's belief that the act will have a particular
outcome and on whether the individual values that outcome. Hence option (b) is the correct
answer.
25. Answer : (c)Reason : Value engineering involves analyzing the operations of the products or
service, estimating the value of each operation, and modifying that operation so that the cost is
lowered.
(a) Work simplification involves teaching workers the concepts of time and motion studies,
layout of work situations, and workflow analysis in order to improve work methods.
(b) Time-event network is a logical extension of the Gantt chart and uses Critical Path Method to
help in planning and controlling operations.
(d) Total Quality Management (TQM) calls for active participation of all the members at all levels
of the organization in order to ensure its (the organization’s) long-term commitment to
improvement of quality.
(e) A quality circle is a group of people who belong to an organizational area and who meet
regularly to solve the problems they face at work.
26. (c) Reason : Maintaining a large span of control within an organization is most effective in all
situations except when jobs are similar but have varying performance measures.
27. (d)Reason : Functional Job Analysis focuses on the following dimensions of an individual job:
I. Data, people and jobs pertaining to the individual’s job.
III. Tools and equipment used by the worker.
Products and services produced by the worker.
Hence, from above discussion, we can infer that option (d) is correct.
28. (d)Reason : Organization culture is the collection of shared values, beliefs, rituals, stories,
myths, and specialized language that foster a feeling of community among organization
members. Organizational culture is distinctive and it differentiates one organization from another.
It is based on certain norms, which define the internal environment of an organization. When the
members of an organization interact with each other, they use a common language, and follow
the same norms and hence organizational culture ensures consistency in their behavior. It is
perceived by the members of the organization as well as by outsiders. Though organizational
culture is fairly stable, it keeps evolving from time to time.
29. (e)Reason : MBO helps in better managing the organizational resources and activities through
clarity of objectives, role clarity, periodic feedback on performance, and participation by
managers. It provides the key result areas (KRAs) where organizational efforts are needed,
which leads to clarity in organizational action. Since MBO allows participation of employees in
objective setting and a rational performance appraisal, it provides the greatest opportunity for
personnel satisfaction. Also, MBO stimulates organizational change and provides a framework
and guidelines for planned change, enabling the top management to initiate, plan, direct, and
control the direction and speed of change. However, MBO has some limitations also, which
include inflexibility in the organization, particularly when the objectives need to be changed.
30. : (d)Reason : The characteristics of the planning process usually adopted in Japanese
Management style are: (1) Long-term orientation, (2) Collective decision-making, (3) Decisions
flowing bottom to top and back, (4) Slow decision-making. Hence, (d) is the correct answer.
31. Which of the following refers to the flow of information among persons at different
levels, who have no direct reporting relationships?
(a) Horizontal communication (b) Diagonal communication
(c) Upward communication (d) Downward communication
(e) Forward communication.
32. Every organization structure, even a poor one, can be charted. Which of the following
is false with respect to Organization Chart?
It is a vital tool for providing information about organizational relationships
It provides a visual map of the chain of command
Charting an organization structure can show up the complexities and inconsistencies,
which can be corrected
It shows authority relationships as well as informal and informational relationships
It helps managers and new personnel to know how and where they fit into the
organization structure.
33. As Arvind Misra is reviewing the progress of his organization in meeting its
organizational goals, he is struck by the fact that his organization has an organizational
structure that might be causing problems. The current structure diffuses accountability,
makes it difficult to respond to changing conditions quickly, and results in situations
where someone might have two bosses. Which of the following organization forms
best fits these disadvantages being experienced by Mr. Misra?
(a) Geographical structure (b) Matrix structure (c) Divisional
structure
(d) Customer structure (e) Functional structure.
34. The garbage-can model is effective in which of the following situation/s?
When managers have no specific goal preferences.
When the means of achieving goals are unclear.
When there are frequent changes in the participants involved in decision-making.
When the degree to which decision-makers can determine optimal decisions is limited
by the individuals’ capacity and intelligence.
(a) Only (IV) above (b) Both (I) and (II)
above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
35. Which of the following is true about the conclusions drawn from the trait approach to
leadership?
The trait approach identifies traits that consistently separate leaders from nonleaders
There are certain traits that guarantee that a leader will be successful
The trait approach is based on early research that assumes that a good leader is born,
not made
Leadership is a simple issue of describing the traits of successful leaders
The trait approach is based on early research that assumes that a good leader is
made, not born.
36. Which of the following information systems has low-volume data and analytical models
as data inputs?
(a) Management Information System (b) Decision Support System
(c) Executive Support System (d) Transaction Processing System
(e) Office Automation System.
37. An objective is the object or aim of an action. Management by Objectives (MBO) is a
management process that is popular in many organizations. It is the joint setting of
goals and objectives by superiors and subordinates. A major difference between
traditional objective setting and MBO is
In MBO, there are multiple objectives covering a range of organisational activities
In traditional objective setting the objectives, once formulated, provide direction for
management decisions
In traditional objective setting the objectives, once established, form the criteria against
which actual accomplishments can be measured
In MBO, organisation members may actually pursue objectives other than the formal
organisational objectives
Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and
‘bottom up’ process.
38. In the Japanese management style, the controlling function is characteristic of
Focus on individual performance.
Control by peers.
Extensive use of quality control circles.
ixing blame.
(a) Both (I) and (II) above (b) Both (I) and (III) above
(c) Both (I) and (IV) above (d) Both (II) and (III) above
(e) Both (II) and (IV) above.
39. The strengths and weaknesses of each alternative become obvious in which step of
the decision making-process?
(a) Identifying the problem (b) Identifying the decision criteria
(c) Analyzing the alternatives (d) Implementing the alternative
(e) Obtaining the needed resources.
40. The recruitment procedure is initiated when a vacancy occurs and is reported to the
HR department. Which of the following is usually the first step followed in the
recruitment procedure?
Designing job description
Developing a job specification
Performing job analysis
Attracting a pool of applicants
Selecting best recruits.
Answers
41.Managers making ethical decisions may belong to any of the three levels of moral
development. Which of the following stages describes the conventional level of moral
development?
Following rules only when it is in one’s immediate interest
Valuing rights of others and upholding absolute values and rights, regardless of the
majority's opinion
Sticking to rules to avoid physical punishment
Living up to what is expected by people who are close to oneself
Following self-chosen ethical principles even if they violate the law.
42.Direct control is the control that is exercised after the deviations from plans have occurred.
Which of the following is not an underlying assumption of direct control?
Performance can be measured
Personal responsibility is absent
The time expenditure is warranted
Mistakes can be discovered in time
The individual who is responsible will take corrective steps.
43.Which function of management involves filling, and keeping filled, the positions in the
organization structure?
(a) Organizing (b) Planning (c) Staffing
(d) Controlling (e) Leading.
44.Which of the following is not true about ‘power’?
Power requires no formal position
Power works both ways – downward and upward
Power is derived from many sources
Formal authority is a type of power
Power is a narrow term compared to authority.
45.In an organization, a superior has the right to get tasks accomplished by his subordinates,
but the responsibility remains with the superior. This principle which intends to eliminate
the practice of “passing the buck”, is known as
(a) Authority on par with responsibility (b) Hierarchy of authority
(c) Unity of direction (d) Downward delegation of
authority
(e) Unity of command.
46.Robert Owen was one of the prominent contributors to preclassical management thought.
Which of the following did Robert Owen advocate/propose?
Division of labor
Legislative reforms to improve working conditions of labor
Profit-sharing plan
Study of management
Emphasis on the importance of business skills for running a business.
47.Informal communication is also referred to as
(a) Grapevine (b) Buzz (c) Pipeline
(d) Noise (e) Uproar.
48.An intervention, in Organization Development (OD) terms, is a systematic attempt to
correct an organizational deficiency uncovered through diagnosis. Which of the following
intervention techniques is concerned with the interpersonal relations and dynamics
operating in work groups?
(a) Technostructural activity (b) Team building (c) Skill development
(d) Process consultation (e) Survey feedback.
49.Why do such companies as Ford, Federal Express, Boeing, or Proctor & Gamble put
together cross-functional teams?
Because each member has unique knowledge that adds value to the overall decision
Because it is cheaper than hiring consultants
Because decisions can be reached at almost twice the speed of other decision format
styles
Because it diffuses risk (blame) of a wrong decision choice
Because of inadequate availability of manpower.
50.Which of the following is an advantage of the functional structure?
t follows principle of occupational specialization
t permits growth and diversity of products and services
There is better face-to-face communication with local interests
There is improved environmental monitoring
t improves coordination in a region.
Answers
Answers
Answers
Answers
Answers
91. Which of the following skills is most important for first level managers and
includes knowledge of and proficiency in activities involving methods, processes
and procedures?
(a) Human (b) Conceptual (c)
Design
(d) Technical (e) Administrative.
92. The Gantt Chart (invented by Henry L. Gantt), still used today in the production
planning area of many organizations was the first simple visual device to
maintain production control. It is essentially a bar graph with
(a) Time on the horizontal axis; the activities to be scheduled on the vertical
axis
(b) Time on the vertical axis; project completion on the horizontal axis
(c) Time on the horizontal axis; project completion on the vertical axis
(d) Time on the vertical axis; the activities to be scheduled on the horizontal
axis
(e) Time on either axis; the activities to be scheduled on the other axis.
93. Controls can be classified based on timing or stage in the production process.
Which of the following statements is not true about the various types of
controls?
(a) Steering controls are used following completion of activity
(b) Preventive controls are used prior to the start of activity and feedback
controls follow completion of activity
(c) Concurrent controls are used during the performance of activity and
feedforward controls prior to start of activity
(d) Quality control tests of output are an example of concurrent control
(e) Comparison of employee input per hour with established standards is an
example of steering control.
94. Which of the following arguments against a firm being socially responsible
indicates the belief that businesses are being socially responsible when they
attend only to economic interests?
(a) Too much power (b) Violation of profit
maximization
(c) Excessive costs (d) Lack of social
skills
(e) Lack of accountability.
95. Practicing ethical guidelines enables managers to become followers of moral
management approach. They facilitate ethical business decisions. Which of the
following is not an ethical guideline for managers?
(a) Upholding human dignity (b) Obeying the law
(c) Non-allowance for participation of stakeholders in the decision-making
process
(d) Primum Non-Nocere (e) Telling the truth.
96. The most general form of standing plans that specifies the broad parameters
within which organization members are expected to operate in pursuit of
organizational goals are called
(a) Procedures (b) Programmes
(c) Single-use
plans (d) Policies (e) Rules.
97. Programmes and budgets are examples of
(a) Single-use plans (b) Standing
rules (c) Procedures
(d) Gantt chart components (e) Critical paths.
98. Management by Objectives (MBO) is a joint setting of goals and objectives by
superiors and subordinates. If you were responsible for setting up an MBO
program, which of the following steps would you need to complete before the
others?
(a) Establish specific goals for various departments, subunits and individuals
(b) Formulate action plans
(c) Clarify organizational roles
(d) Implement and maintain self-control
(e) Do performance appraisal.
99. Which of the following is not true regarding programmed decisions?
(a) They are made in well-structured situations
(b) They are based on established policies and procedures
(c) They require managers to exercise discretion
(d) They are made mostly by lower-level managers
(e) They limit the managers’ flexibility.
100 Direct control is the control that is exercised after the deviations from plans have
. occurred. Which of the following is not the underlying assumption of direct
control?
(a) Performance can be measured
(b) Personal responsibility is absent
(c) The time expenditure is warranted
(d) Mistakes can be discovered in time
(e) The individual who is responsible will take corrective steps.
Answers
(d)
: Technical skills are most important for first level managers and include knowledge of and
proficiency in activities involving methods, processes, and procedures.
(a)
A Gantt chart is essentially a bar graph with time on the horizontal axis and the activities to be
scheduled on the vertical axis. Hence from above discussion, we can infer that option (a) is
correct.
(a)
Steering controls are used during the performance of activity. So option (a) is the answer.
(b)
: The belief that businesses are being socially responsible when they attend only to economic
interests is known as “Violation of profit maximization” argument against a firm being socially
responsible. Hence from above discussion, we can infer that option (b) is correct.
(c)
: Non-allowance for participation of stakeholders in the decision-making process is not an
ethical guideline for managers. Hence from above discussion, we can infer that option (c) is
correct. Options (a), (b), (d) and (e) are all ethical guidelines for managers.
(d)
: The most general form of standing plans that specifies the broad parameters within which
organization members are expected to operate in pursuit of organizational goals are called
policies.
(a)
Programmes and budgets are examples of single-use plans.
(c)
: MBO (Management By Objectives) is the process of joint setting of goals/objectives by the
superior and the subordinate, and clarifying on the objective itself.
ous steps in the MBO Process are:
overall organizational goals.
rganizational roles.
h specific goals for various departments, subunits and individuals.
e action plans.
nt and maintain self-control.
dic review.
rmance appraisal.
Hence, from above discussion, we can infer that option (c) is correct.
(c)
Programmed decisions require managers to exercise little discretion.
(b)
The underlying assumptions of direct control are:
Performance can be measured.
Personal responsibility exists.
The time expenditure is warranted.
Mistakes can be discovered in time.
The individual who is responsible will take corrective steps.
Hence, from above discussion, we can infer that option (b) is not the underlying assumption of
direct control. Options (a), (c), (d) and (e) are all underlying assumptions of direct control.
01. Xeta Electronics Ltd. is faced with the problem of allocating resources to its
newly set up computer peripherals division, because of some practical
constraints like limited availability of resources, time, man-hours etc. Which of
the following decision-making techniques can help it solve the problem?
(a) Linear Programming (b) Decision tree (c) Simulation
(d) Waiting-line method (e) Game theory.
102.The concept of span of management concerns
(a) Seeing that managers at the same level have equal numbers of
subordinates
(b) Employee skill and motivation levels
(c) Supervision of one less than the known number of subordinates
(d) A determination of the number of individuals a manager can effectively
supervise
(e) The nature of organization structure.
103.Several fundamental aspects pertaining to the organization need to be
considered to describe the process of organizing. Which of the following steps
are involved in the process of organizing?
I. The objectives of the organization should be established.
II. The supportive objectives and plans should be formulated.
III. Emphasis on extreme occupational specialization.
IV. Authority should be delegated to the head of each group to perform their
activities.
(a) Both (I) and (II) above (b) Both (II) and (III) above
(c) Both (II) and (IV) above (d) (I), (II) and (III) above
(e) (I), (II) and (IV) above.
104.There are three major forms of divisional structures: product division,
geographic division and customer division. Which of the following statements
is not true about Customer Division or Departmentation?
(a) It is set up to service particular types of clients or customers
(b) It can address the special and widely varied needs of customers for
clearly defined services
(c) It is accompanied by the benefits of specialization
(d) Coordination between sales and other functions becomes easier
(e) Facilities and manpower, specialized for certain customer groups may be
under-employed.
105.A matrix structure is a type of departmentalization that superimposes a
horizontal set of divisional reporting relationships into a hierarchical functional
structure. The major disadvantage of the matrix structure is
(a) Duplication of resources (b) Lack of employee satisfaction
(c) Lack of economies of scale (d) Its propensity to foster power,
struggles
(e) Monotony of work.
106.Which of the following management information systems is an interactive
computer system that provides managers with the necessary information for
making intelligent decisions?
(a) Transaction processing system (b) Decision support system
(c) Office automation system (d) Executive support system
(e) Line support system.
107.Which of the following statements is not true of internationalization of
organizations?
(a) To reach organizational objectives, management may extend its activities
to include an emphasis on organizations in foreign countries
(b) In general, the larger the organization, the greater the likelihood that it
participates in international activities of some sort
(c) A manager’s failure to understand different national sovereignties,
national conditions, and national values and institutions can lead to poor
investment decisions
(d) Personal adjustments that employees of multinational corporations must
make can influence how productively they work
(e) Generally speaking, a multinational organization transcends any home
country, whereas a transnational organization does not.
108.Which of the following can be said to be an appropriate technique for line
personnel in reducing the line-staff conflict?
(a) Emphasize the objectives of the organization as a whole
(b) Make proper use of the staff abilities
(c) Obtain any necessary skills they do not already possess
(d) Deal intelligently with resistance to change rather than view it as an
immovable barrier
(e) Ignore the abilities of the staff personnel.
109.From the delegator’s aspect, all of the following are the factors affecting the
delegation of authority except
(a) Love for authority (b) Fear of exposure
(c) Attitude towards subordinates (d) Fear of criticism
(e) Personality traits of the superiors.
110.The characteristic of an organization that describes the degree to which the
organization monitors and responds to changes in the external environment is
termed as
(a) Open-systems focus (b) Means-end
orientation (c) Control
(d) Unit integration (e) Closed-system focus.
Answers
(a)
: Linear programming is a mathematical technique used in optimum allocation of
resources in the organization.
Decision tree is a graphical method for identifying alternative actions, estimating
probabilities, and indicating the resulting expected pay-off.
Simulation is the technique of developing a model that represents a real or existing
system for solving complex problems that cannot be readily solved by other techniques.
Waiting-line or queuing model is a mathematical model that describes the operating
characteristics of queuing situations, in which service is provided to persons or units
waiting in line.
Game theory is a technique for determining the strategy that is likely to produce
maximum profits in a competitive situation.
(d)
: The concept of span of management concerns a determination of the number of
individuals a manager can effectively supervise.
(e)
: Several fundamental aspects pertaining to the organization need to be considered to
describe the process of organizing. It follows a logical sequence and consists of the
following steps.
objectives of the organization should be established.
supportive objectives and plans should be formulated.
hority should be delegated to the head of each group to perform their activities.
(d)
Customer Departmentation is done to service particular types of clients or customers.
Coordination between sales and other functions becomes difficult, as Customer-based
Departmentation is applicable only to the sales function.
Hence from above discussion, we can infer that option (d) is not true about Customer
Departmentation.
Options (a), (b), (c) and (e) are all true about Customer Departmentation.
(d)
: The major disadvantage of the matrix structure is its propensity to foster power
struggles.
(b)
Decision support system is an interactive computer system that provides managers with
the necessary information for making intelligent decisions.
(e)
Generally speaking, a transnational organization transcends any home country, whereas
a multinational organization does not.
(b)
: Making proper use of the staff abilities is an appropriate technique for line personnel in
reducing line-staff conflict. Hence, from above discussion, we can infer that option (b) is
correct.
(d)
: From the delegator’s aspect, all of the following are the factors affecting the delegation
of authority except Fear of criticism.
(a)
: Open-system focus is characteristic of organization that describes the degree to which
the organization monitors and responds to changes in the external environment.
121. It is a normal practice to categorize management into three basic levels: top management,
middle management and supervisory or first-level management. The managers at these
three levels require different kinds of skills to perform the functions associated with their
jobs. The major difference in skill requirements between middle and top managers is that
(a) Top managers must generally be more skilled than middle managers in every respect
(b) Top managers require better interpersonal skills but less conceptual skills than middle
managers
(c) Top managers generally require better technical and interpersonal skills than middle
managers
(d) Top managers generally require higher level conceptual skills but less technical skills
(e) Middle managers require better technical and conceptual skills than top managers.
122. According to the Scientific Management School of Thought, which of the following is defined
as the systematic, objective and critical examination of all the factors governing the
operational efficiency of a specified activity to bring about improvement?
123. Today, many organizations are involved in social activities. The belief that businesses are
being socially responsible when they attend only to economic interests is known as which
argument against a firm being socially responsible?
(a) Technology
(e) Structure.
125. Which of the following is/are subsystem(s) that are frequently an integral part of
‘Management by Objectives (MBO)’?
I. Manpower planning.
II. Compensation.
126. When decision makers construct simplified models that extract the essential features from a
problem without capturing all the complexities of a problem, they are acting under which of
the following?
(c) Uncertainty
(d) Heuristics
(e) Kinesics.
127. There are both advantages and disadvantages of group decision-making. Which of the
following would generally not be considered an advantage of group decision-making?
(a) Groups generally come up with more and better decision alternatives than an
individual
can
(b) The members of the group tend to support the implementation of the decision more
fervently than they would if the decision had been made by an individual
(c) A group can bring much more information and experience to bear on a decision or
(d) The group is more likely to use "groupthink" when coming to a decision
128. Rate of change is one of the factors that determines effective span of management. Changes
occur more rapidly in certain organizations than in others. This rate of change
(a) Determines how efficient subordinates are without guidance from their superiors
(c) Determines the degree to which policies can be formulated and the stability that can
be achieved in the policies
I. Divestiture.
II. Focus.
IV. Differentiation.
130. Divisional structure is a type of departmentation in which positions are grouped according to
similarity of products, services or markets. Which of the following is not an advantage of
divisional Structure?
(a) Each unit or division can respond or react quickly, when required, because they
normally do not need to coordinate with other divisions before taking an action
(c) Individuals are able to develop in-depth areas of specialization to the same extent as
in
a functional structure
Answers
Reason : The major difference in skill requirements between middle and top
managers is that top managers generally require higher level conceptual skills
but less technical skills than middle managers.
Hence, from above discussion, we can infer that option (d) is correct.
Hence, from above discussion, we can infer that option (a) is correct.
Reason : The belief that businesses are being socially responsible when they
attend only to economic interests is known as “Violation of profit maximization”
argument against a firm being socially responsible.
Hence from above discussion, we can infer that option (b) is correct
Reason : Bonuses, awards and promotions form part of the rewards system.
Reason : The following are subsystems that are frequently an integral part of
‘management by objectives’:
I. Manpower planning.
II. Compensation.
Reason : When decision makers construct simplified models that extract the
essential features from a problem without capturing all the complexities of a
problem, they are acting under bounded rationality.
Reason: Sometimes cohesive “in groups” let the desire for unanimity override
sound judgment when generating and evaluating alternative courses of action.
Hence, from above discussion, we can infer that option (d) would generally
not be considered an advantage of group decision-making.
Options (a), (b), (c) and (e) are all advantages of group decision-making.
I. Cost leadership.
II. Differentiation.
III. Focus.
Hence, from above discussion, we can infer that option (d) is correct.
Hence from above discussion, we can infer that option (c) is not an
advantage of divisional structure.
Options (a), (b), (d) and (e) are all advantages of divisional structure.
131. Delegate means to grant or confer on subordinates certain tasks and duties along with
sufficient authority, to accomplish these. Which of the following points is most likely to
increase the effectiveness of delegation?
(a) Detail how the required tasks are to be completed for the subordinate
(b) Predetermine the desired results and performance standards for the delegated task
organization goals
133. In modern times, organizations have been trying to create a corporate culture with a distinct
identity by moulding the behavior of their members. The original source of an organization’s
culture is most strongly associated with
(e) The make-up of organizational members when the organization was established.
134. The selection process involves choosing the candidates who best meet the qualifications and
have the greatest aptitude for the job. Different kinds of selection devices are used for the
purpose. Which of the following selection devices involves presenting applicants with a
miniature model of a job and have them perform a task that is central to that job?
136. Apart from on-the-job training, there are many other approaches to manager development.
Development of organizing and intervening skills in group processes, usually takes place in
case of
(e) Cooptation.
137. Every organization makes minor structural adjustments in reaction to changes. The forces of
change can be internal or external to the organization. Which of the following is not an
internal force of change?
(b) Technology
(e) Workforce.
138. Lyman Porter and his colleagues classified the underlying nature of people into six models.
Which of the following views proposes that people are unpredictable, subjective, relative
and unique in nature?
(a) Rational
(b) Emotional
(c) Behavioristic
(d) Self-actualizing
(e) Phenomenological.
139. Different behavioral scientists have developed different theories on motivation. One such
behavioral scientist by the name of Herzberg gave the two-factor theory of motivation.
According to Herzberg’s motivation-hygiene theory, which of the following are hygiene
factors?
(d) Working conditions, relationship with subordinates, supervision and work itself
140. The managerial grid identified five specific leadership styles. Which leader believes that
thoughtful attention to the needs of people for a satisfying relationship leads to a
comfortable, friendly organizational atmosphere and work tempo?
(a) Task
(d) Team
(e) Impoverished.
Answers
Hence, from above discussion, we can infer that option (c) is correct.
Reason : The following are reasons for line-staff conflict from the viewpoint of
staff personnel:
Statement (II) and (IV) are reasons for line-staff conflict from the
viewpoint of line personnel.
Hence, from above discussion, we can infer that option (d) is correct.
Hence, from above discussion, we can infer that option (a) is correct.
Options (a), (c), (d) and (e) are all internal forces of change.
Reason: According to the managerial grid, the country club leader believes that
thoughtful attention to the needs of people for a satisfying relationship leads to
a comfortable, friendly organizational atmosphere and work tempo.
141. The Managerial Grid, propounded by Blake and Mouton, is based on a manager’s concern for
people and concern for production. The most effective management style as characterized
by the Managerial Grid is
(a) High concern for people and low concern for production
(b) High concern for people and high concern for production
(c) Low concern for people and high concern for production
(d) Low concern for people and low concern for production
(e) Moderate concern for people and moderate concern for production.
142. In an effective organization, information flows in various directions. Which of the following
information flows takes place among persons at different levels, who have no direct
relationships?
(a) Downward
(b) Upward
(c) Horizontal
(d) Diagonal
(e) Formal.
143. Which of the following is a measure of how appropriate organizational goals are, and how
well an organization is achieving those goals?
(a) Leverage
(b) Profitability
(c) Liquidity
(d) Reliability
(e) Serviceability.
145. According to the Tannenbaum and Schmidt model of leadership, which of the following
statement(s) describe more of a boss centered leadership?
146. The process of assessing the organization's strategy and environmental demands and then
determining the appropriate organizational structure is called
147. Hazard Analysis and Critical Control Point Method (HACCP) is used in the food manufacturing
industry to identify and prevent microbial and other germs from causing harm to food.
Which of the following principles involves identification of preventive measures the
manufacturing units can adopt, to control food safety hazards that arise during processing?
149. Which of the following statements is/are true about executive support systems?
II. They make greater use of analytical models and are less interactive.
150. In which of the following orientations toward international business, does a firm analyze the
needs of customers worldwide and then adopts standardized practices for all the markets it
serves?
(a) Ethnocentric
(b) Polycentric
(c) Geocentric
(d) Regiocentric
(e) Unicentric.
Answers
Reason : The following statements are true about executive support systems:
The executive support systems make less use of analytical models and are
highly interactive. Hence, statement (II) is not true about ESS.
161. Departmentalization divides a large and complex organization into smaller and more
flexible administrative units. A type of departmentalization in which similar specialists and
people with common skills, knowledge and orientations are grouped together, is referred to
as
(c) It is similar to line authority except that staff personnel with functional authority do
not have a right to punish violations from the intended course of action
(d) It should not be delegated too much down the line as such delegation may create
problems
163. Every organization structure, even a poor one, can be charted. Which of the following is
false with respect to Organization Chart?
(c) Charting an organization structure can show up the complexities and inconsistencies,
which can be corrected
(e) It helps managers and new personnel to know how and where they fit into the
organization structure.
164. Various selection devices are used to choose candidates who best meet the qualifications
and have the greatest aptitude for the job. Asking a candidate for an automotive
mechanic’s position to assemble and disassemble part of an engine motor would be an
example of what kind of selection device?
(a) Stress both performance in the position the individual holds and the success with
which the individual is attaining organizational objectives
(c) Ensure that the appraisal is acceptable to both the evaluator and the evaluated
(d) Ensure that the appraisal provides a base for improving individuals' productivity
within the organization by making them better equipped to produce
166. Managers can adopt various methods to overcome initial resistance to change. In which of
the following methods of overcoming resistance to change, management neutralizes
potential or actual resistance by exchanging something of value for cooperation?
(b) Manipulation
167. Douglas McGregor identified two opposing perspectives (Theory X and Theory Y) that he
believed typified managerial views of employees and suggested that management must
start with the basic question of how managers see themselves in relation to others. Which
of the following is not true about his theory?
(c) Theory Y managers assume that the average person will accept, even seek,
responsibility
(e) Theory Y managers assume that people are internally motivated to accomplish the
goals and objectives.
168. The manager of Master Products Ltd., a leading manufacturer of electrical components,
instructed Tarun, Shreya, Aparna, and Sheila, who all worked together, to teach each other
their job skills to be more effective. What is this called?
(a) Cross-training
(c) Training
(d) Simulation
(e) Apprenticeship.
169. Senthil is a salesperson for Cloud 9 Corporation's Chennai office. If the salespersons meet
their sales goals for the month, they are given an all-expense-paid trip to a Salgaonkar Club
football game. Football is not one of Chennai's favorite sports, and the Salgaonkar Club is
definitely not Senthil's favorite team. Which component of Vroom’s expectancy theory
influences Senthil’s performance?
(d) Valence
(e) Instrumentality.
170. Which of the following statements is/are true with respect to content theories of
motivation?
IV. Herzberg’s hygiene factors correspond to McClelland’s need for affiliation, Maslow’s
social needs and Alderfer’s existence needs.
Hence, from above discussion, we can infer that option (b) is correct.
Hence from above discussion, we can infer that option (d) is false with respect to
Organization Chart.
Options (a), (b), (c) and (e) are all true with respect to Organization Chart.
Hence from above discussion, we can infer that option (c) is correct.
Emphasizing the evaluator's impression of the individual's work habits is least likely
to improve the effectiveness of the appraisal process.
Hence, from above discussion, we can infer that option (b) is correct.
166. Answer : (c)
Hence, from above discussion, we can infer that option (c) is correct.
Hence, from above discussion, we can infer that option (b) is not correct about his
theory.
Options (a), (c), (d) and (e) are all correct about his theory.
Reason : Tarun, Shreya, Aparna and Sheila all worked together, and to be more
effective they taught each other their job skills. This process is called job rotation or
cross-training. This is defined as a job design approach that involves periodically
shifting workers through a set of jobs in a planned sequence. (b) Role perception is
the individual’s understanding of the behavior needed to accomplish a task or
perform a job. (c) Training is the systematic development of knowledge, skills and
attitudes required by an individual to perform adequately a given job or a task. (d)
Simulation is a quantitative planning technique that uses mathematical models to
imitate reality. (e) Apprenticeship is providing training in basic skills and impart
knowledge in specified trades to apprentices in order to improve opportunities for
employment or to help them promote their own business.
Reason : The following statements are true with respect to content theories of
motivation:
The following statements are not true with respect to content theories of
motivation:
171. The managerial grid, propounded by Robert Blake and Jane Srygley Mouton, is a well-
developed approach to defining leadership styles. It identifies five distinct leadership styles.
According to this grid, the (9, 9) manager
(a) Gives thoughtful attention to the needs of people, for a satisfying relationship leads
to a comfortable, friendly atmosphere and work tempo
(b) Believes that concern for people and tasks are compatible and that tasks need to be
carefully explained and decisions endorsed by subordinates to achieve a high level of
commitment
(c) Believes in compromise, so that decisions are taken but only if endorsed by
subordinates
(e) Is task-oriented and stresses the quality of the decision over the wishes of
subordinates.
172. Of the various leadership styles suggested by the path-goal theory, which of the following
statements is/are true about ‘supportive leadership’?
173. Communication can well be treated as the force that binds the organizational participants
together. We cannot expect effective management without communication. Which of the
following factors does not help in effective communication?
(a) Considering the total physical and human setting whenever you communicate
174. Controls can be classified on the basis of their timing or stage in the production process.
With regard to the time element of controls, which of the following controls monitor
activities while they are being carried out?
(a) Feedback
(b) Feedforward
(c) Precontrol
(d) Concurrent
(e) Preliminary.
175. Financial ratios are particularly important to managerial control in an organization.
One such financial ratio, viz., return on investment, is a ratio that attempts to measure a
firm's
(a) Leverage
(b) Profitability
(c) Liquidity
(d) Reliability
(e) Serviceability.
176. Which of the following statements is/are true about investment centers?
II. In investment centers, outputs are measured in monetary terms and directly compared
with input costs.
III. It helps top management calculate the mere inflow and outflow of currency, rather
than giving a total picture of profitability.
177. Operations Management is a tool by which management can create and improve upon its
operations. Which of the following statements is true regarding Operations Management?
(b) Operations Management is concerned with only the input stage of product
development
(c) The outputs of the operations system include both goods and services
(d) Labour is part of the transformation stage and is not considered an input
(e) The techniques of Operations Management are not applicable to other disciplines
such as finance, marketing and human resource management.
178. Which of the following controls is the cause of an unsatisfactory outcome traced back to
the individual responsible for it, who is then made to correct the practice?
179. According to the Japanese management practices, what refers to “my/one’s company”
where people are treated as family members?
(a) Ringi
(b) Henko
(c) Kacho
(d) Kaisha
(e) Habatsu.
Answers
171. Answer : (b)
Reason : As per the managerial grid, the (9,9) manager believes that concern for
people and tasks are compatible and that tasks need to be carefully explained and
decisions endorsed by subordinates to achieve a high level of commitment.
Hence, from above discussion, we can infer that option (b) is correct.
Hence, from above discussion, we can infer that option (d) does not help in effective
communication.
Reason : With regard to the time element of controls, concurrent controls monitor
activities while they are being carried out.
Hence from above discussion, we can infer that option (d) is correct.
Reason : Return on investment is the ratio of earnings before taxes to that of total
assets. So, it attempts to measure profitability.
Hence, from above discussion, we can infer that option (b) is correct.
176. Answer : (a)
Hence, from above discussion, we can infer that option (c) is tru e regarding
Operations Management.
Options (a), (b), (d) and (e) are all false regarding Operations Management.
Reason : In direct control the cause of an unsatisfactory outcome traced back to the
individual responsible for it who is then made to correct the practice.
182. As the size of the organization increases the more sophisticated the organizational structure
becomes. Hence management is categorized into three basic levels i.e. top-level
management, middle level-management and supervisory-level management. Which of the
following is false with regard to functions of supervisory management?
183. Which stage of the creativity process links the unconscious state of mind with the conscious
state?
(b) Intuition
(c) Insight
(e) Decision.
III. Determination of how many people working with each other report to a
single manager.
(e) Flexibility.
186. Which of the following is the best explanation of why Japanese companies tend to make
decisions by consensus?
187. Information provided by market intelligence agencies is part of which of the following types
of information systems?
188. Which of the following responsibility centers are also referred to as ‘engineered expense
centers?’
189. Lawrence is a new interviewer who just finished an interview with Pauline. Her professional
style and her flawless grooming immediately struck him. Lawrence gave Pauline a very good
evaluation although her previous work experience and educational background were not that
exceptional. What rating error did Lawrence succumb to?
(e) Stereotyping.
190. Which of the following statements is false concerning Vroom's expectancy theory?
(b) Managers’ must understand which rewards employees will positively value
(c) The employee must see the connection between performance and rewards
(e) There are two crucial linkages among effort-performance-reward in the theory.
Answers
Reason : The given example is that of an operational plan. Operational plans help in
day-to-day functioning and are developed by lower level managers. They consider
time-frames of less than a year.
Reason : The intuition stage of the creative process links the unconscious state of
mind with the conscious state.
Statement (III) – Determination of how many people working with each other
report to a single manager.
Statement (IV) – Determination of the number of individuals a manager can
effectively supervise.
Reason : MBO helps in better managing the organizational resources and activities
through clarity of objectives, role clarity, periodic feedback on performance, and
participation by managers. It provides the key result areas (KRAs) where
organizational efforts are needed, which leads to clarity in organizational action. Since
MBO allows participation of employees in objective setting and a rational
performance appraisal, it provides the greatest opportunity for personnel satisfaction.
Also, MBO stimulates organizational change and provides a framework and guidelines
for planned change, enabling the top management to initiate, plan, direct, and control
the direction and Pace of change. However, MBO has some limitations also, which
include inflexibility in the organization, particularly when the objectives need to be
changed.
A transaction processing system (TPS) records and executes the routine, day-to-day
transactions required to conduct an organization’s business.
Reason : Lawrence has succumbed to Halo error, which is a common tendency to rate
subordinates high or low on all performance measures based on one of their
characteristics where as in rater prejudice managers allow their personal biases to
distort the rating they give to their subordinates. In shifting standards, managers rate
each subordinate by different standards and expectations. In different rater patterns,
managers differ in their rating styles. Some may rate harshly, others may rate easily.
Whereas stereotyping is the process of categorizing or labeling people on the basis of
a single attribute rating a person based on the characteristics of the group to which he
or the she belongs.
Reason : The theory is concerned with reality not perceptions is false with regard to
Vroom’s expectancy theory.
191. Mark's Embroidery produces custom-made embroidery products. One department sells to
retail customers, another department sells to catalog customers and a third department sells
only to college bookstores. Mark's Embroidery is departmentalized by
(a) Product
(b) Customer
(d) Process
(e) Function.
192. “When managers have substantial but not complete confidence and trust in subordinates
and solicit advice from subordinates while retaining the right to make final decision”, Likert’s
four systems of management describes it as
194. Which of the following statement(s) is/are true with respect to ‘discretionary expense
centers’?
II. Budgets for discretionary expense centers are developed only in terms of
maximum resources that can be consumed by them in a particular period.
III. For assessing the budgetary performance, the expense constraints are established at
the discretion of the manager.
195. Quantitative techniques are very useful in making decisions under conditions of varying
degrees of uncertainty. Torque Engineering Co. Ltd. faces the problem of allocating resources
to its newly set up hydraulic pumps division. Which of the following decision-making
techniques can help solve the problem?
(c) Simulation
197. Which of the following refers to the process that helps new employees adapt to the
organization’s culture?
(a) Grapevine
(b) Orientation
(c) Socialization
(d) Introduction
(e) Training.
198. Adaptability is essential for present day organizations to survive. Which of the following are
characteristics of adaptable organizations?
199. Ratio analysis is a performance evaluation technique that involves determining and
evaluating financial ratios. In this regard, which of the following ratios measures a firm’s
financial risk?
(a) Profitability
(b) Liquidity
(c) Activity
(d) Leverage
200. Which of the following is a measure of how appropriate organizational goals are and how
well an organization is achieving those goals?
Answers
Reason : When managers have substantial but not complete confidence and trust in
subordinates and solicit advice from subordinates while retaining the right to make
final decision, Likert’s four systems of management describes it as consultative
leadership style.(a) In Participative leadership style the manager has complete trust
and confidence in the subordinates in all the matters.(b) In Benevolent leadership
style the managers have a patronizing confidence and trust in subordinates, solicit
some ideas and opinions from subordinates, motivate with rewards and some fear
and punishment, permit some upward communication and allow some delegation of
decision-making but with close policy control.(d) In exploitative-authoritative
leadership style the managers represents doctorial leadership behavior with all
decisions made by the manager. (e) Trait theory of leadership style assumes that
leaders share certain inborn personality traits.
Reason : J.S.Adam’s equity theory points out that people are motivated to maintain
fair relationship between their performance and reward in comparison to others. (a)
Maslow’s need hierarchy classifies human needs into five categories : physiological,
safety, belongingness, esteem, and self-actualization needs and states that they
follow an order. A satisfied need no longer motivates. (b) Herzberg’s two-factor model
distinguishes between motivators and hygiene factors. The presence of the former
(motivators) causes satisfaction but their absence doesn’t cause dissatisfaction. The
absence of the latter (hygiene factors) causes dissatisfaction but their presence
doesn’t guarantee satisfaction. (d) Victor Vroom’s expectancy theory holds that
people will be motivated to do things to achieve some goals to the extent that they
expect that certain actions on their part will help them to achieve the goal. (e)
Alderfer’s ERG theory categorizes human needs into three : existence, relatedness,
and growth needs.
Reason : The following statements are true with respect to ‘discretionary expense
centers’:
II. Budgets for discretionary expense centers are developed only in terms
of maximum resources that can be consumed by them in a particular period.
III. For assessing the budgetary performance, the expense constraints are
established at the discretion of the manager.
Game theory is a technique for determining the strategy that is likely to produce
maximum profits in a competitive situation.
Reason: Socialization refers to the process that helps new employees adapt to the
organization’s culture.
Reason : Leverage ratio’s indicate the firms financial risk. (a) Profitability ratios
provide a firms overall economic performance (b) Liquidity ratios measure a firm’s
capacity to meet its short-term financial obligations. (c) Activity ratios reflects a firm’s
efficiency in resource utilization.
Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.
Alternative Proxies: