Unit 1 : Nature & functions of management :

1)Which one of the following statements is not correct?

a) Management is a goal-oriented process.
b)Management is a continuous process.
c) Management is a dynamic process.
d)Management is a rigid process.
2)Which one of the following is not an importance of management?
a) Integrating various interest groups
b)Developing society
c) Disciplining employees
d)Inculcating creativity
3)Management is not
a) an applied science.
b)a pure science.
c) an art.
d)an art and science both.
4)In which category does management fall?
a) Well-established profession
b)Semi-profession
c) Emerging profession
d)Marginal profession
5)Top management is concerned with formulation of
a) guidelines for supervisors.
b)long-term plans.
c) short-term plans.
d)None of these.
6)Coordination is
a) a management function.
b)the essence of management.
c) an objective of management.
d)a social objective.
7)The element that aims at integrating group efforts to achieve group objectives is called _.
a) Cooperation
b)Coordination
c) Management
d)Directing
8)Managing Director is the position of ___ level of management in a large company.
a) Top
b)Middle
c) Lower
d)Middle and Lower
9)Management is multidimensional because it has dimension(s).
a) One
b)Two
c) Three
d)Four
10) Management is a _ directed process as it aims at achieving specified goals.
a) Continuously
b)Future
c) Goal
d)Deliberately
11) _ is a systematised body of knowledge that explains certain general truths or
operation of general laws.
a) Science
b) Art
c) Profession
d)Art and Profession both
12) Identify the feature of co-ordination being highlighted in the given statement:
“Coordination is not a one time function, it begins at the planning stage and continue
till controlling.”
a) Coordination ensures unity of action
b)Coordination is an all pervasive function
c) Coordination is a continuous process
d)Coordination is a deliberate function
13) Co-ordination is considered to be the essence of management because
a) It is a common thread that runs through all the activities within the organisation
b)It is implicit and inherent in all functions of the organisation
c) It is a force that binds all the functions of management
d)All of the above.
14) This function of Management related to placing the right person at the right job is
a) Organising
b)Staffing
c) Planning
d)Controlling
15) This function of management relating to laying down the foundation for carrying out
the other functions of management successfully is
a) Organising
b)Staffing
c) Planning
d)Controlling
16) Organising as a function of management involves deciding
a) What activities and resources are required
b)Who will do a particular task
c) Where will it be done
d)All of the above
17) The main task of this level of management is to determine the overall
organisational objectives and strategies for their realisation.
a) Operational management
b)Middle level management
c) First line managers
d)Top level management
18) Which of the following statements is not true for lower level management?
a) Analyse the business environment and its implications for the survival of the business.
b)Ensure the quality of the output
 c) They strive to reduce the wastage of resources
d)They ensure that the safety standards are maintained within the organisation.

19) Which of the following is a function of top level management?

a) Ensuring quality of output
b)Assigning necessary duties and responsibilities to their departments
c) Taking responsibility for all the activities of the business and its impact on the society
d)Ensuring that the safety standards are maintained within the organisation.
20) Which of the following is not a designation related to middle level management?
a) Operations Head
b)Sales Manager
c) Chief Operating Officer.
d)Divisional Manager.
21) Management principles can be applied to all types of activities.”
a) True
b)False
22) “Coordination is required at all levels of management in all management functions.”
a) True
b)False
23) “Management involves the decisions by a manager and it is not a group activity.”
a) True
b)False
24) Top management level is responsible for implementing plans and strategies of the
organisation.
a) True
b)False
25) Successful organisations do not achieve goals by chance but by following a deliberate
process known as
a) Planning
b)Co-ordination
c) Controlling
d)Management
26) Management is essential for the organisations which are
a) Non-profit organisations
b)Service organisations
c) Social organisations
d)All of the above
27) People in the organisations carry out diverse tasks with the aim to achieve.
a) Different objectives
b)Common objectives
c) Both of the above
d)None of the above
28) Successful management ensures that
a) Goals are achieved with least cost
b)Timely achievement of goals
c) Both of the above
d)None of the above
29) Efficiency is concerned with
 a) Doing the right thing.
b)Doing things right
c) Achieving end results
d) None of the above
30) Effectiveness relates to
a) Doing the right task.
b) Completing activities
c) Achieving goals
d) All of the above
31) Management is said to be poor if it is
a) Efficient but ineffective
b) Effective but inefficient
c) Both inefficient and ineffective
d) All of the above
32) Which of the following is not a function of management?
a) Management is all pervasive
b) Management is multi-dimensional
c) Identification of threats & warnings
d) Location of business
33) Name two broad categories of business activities:-
a) Trade & commerce
b) Trade & Industry
c) Industry & commerce
d) None of these
34) Which one of the following is not an economic objective of the business:-
a) Social environment
b) Survival
c) Profit
d) Growth
35) Which factor doesn’t describe management as science:-
a) Systematized body of knowledge
b) Universal validity
c) Ethical code of conduct
d) Principles based on experimentation
36) Earning of a profit is considered to be subsidiary objective of the business:-
a) True.
b) False
37) Which of the following management functions are closely related?
a) planning and organizing
b) staffing and control
c) planning and control
d) planning and staffing
38) The last function in the sequence, which culminates in the attainment of organization
objectives, is:
a) organizing
b) coordinating
c) controlling
d) planning
39) In terms of the sequential relationship, the first function requiring managerial attention is:
a) planning
b) coordinates
c) directing
d) controlling
40) Main functions of administrative management are:
a) planning, organizing ,staffing, directing and controlling
b) planning ,organizing, directing and controlling
c) planning ,organizing, staffing and directing
d) planning,organizing,controlling and representation
41) Successful coordination of activities results from effectively carrying out the function:
a) planning
b) organizing
c) staffing
d) directing
e) all of these
42) Control function of management cannot be performed without:
a) planning
b) organizing
c) staffing
d) motivation
43) Which level of management is responsible for establishing a vision for the
organization, developing broad plans and strategies, and directing subordinate
managers?
a) first level managers
b) middle managers
c) executive managers
d) second level managers
44) Which level of management is responsible for implementing programs that are intended
to carry out the broader objectives of an organization set by executives?
a) supervisory managers
b) middle managers
c) first level managers
d) chief financial managers
45) Which type of managers are responsible for reporting to middle managers?
a) employees
b) managers
c) executive managers
d) second level managers
46) Which of the following characterize a manager as being efficient?
a) They use a minimum amount of resources for the amount of outputs produced.
b) The devote a large amount of time to planning
c) They achieve their goals.
d) They interview, select, and train people who are most suitable to fill open jobs.
47) Which of the following characterize a manager as being effective?
a) They use a minimum amount of resources for the amount of outputs produced.
b) They devote a large amount of time to planning.
c) They achieve their goals.
 d) They interview, select, and train people who are most suitable to fill open jobs.

48) Which term best describes the process of obtaining, deploying, and utilizing a
variety of essential resources to contribute to an organization’s success?
a) planning
b) organizing
c) staffing
d) management
49) Find the odd one out
a) board of directors
b) chief executive
c) foremen
d) shareholders
50) Management is a------Activity.
a) single
b) group
c) both group and single.
d) None
1-d 2-c 3-b 4-c 5 –b 6-b 7 -b 8-a 9-c 10 - c
11 - a 12 - c 13 - d 14 -b 15 –c 16 - d 17 - d 18 - a 19 - d 20 -c
21 - a 22 - a 23 - b 24 - b 25 –d 26 - d 27 - b 28 - c 29 - b 30 - d
31 - c 32 - c 33 - c 34 - a 35 –c 36 - b 37 - c 38 - c 39 - a 40 - b
41 - e 42 - a 43 - c 44 - b 45 –b 46 - d 47 - c 48 - d 49 - c 50 - b

Evolution of thoughts:

1) Under mechanism of scientific management, scientific task setting includes:

a) Time study
b) Motion study
c) Method study
d) All of the above

2) Fedrick Winslow Taylor’s Mechanism of Scientific Management includes

a) Scientific task setting
b) Planning the task
c) Standardization of tools and equipments
d) All of the above

3) Frederick Winslow Taylor is best known for the introduction of which approach to job
design?
a) Behavioural approach
b) Ergonomics
c) Scientific management
d) Division of labour

4) Scientific management is comprised of which of the following two elements?

a) Technology assessment and environmental design
 b) Method study and work measurement
c) Method study and job design
d) Work measurement and job design

5) The ‘father’ of Scientific Management is:

a) Henri Gantt
b) W. Edwards Deming
c) Tom Peters
d) Henry Ford
e) Frederick W. Taylor

6) Who was the first to formalise the concept of the division of labour?
a) Edward Demming, 1950
b) Adam Smith, 1776
c) Fredrick Taylor, 1911
d) Jay Forester, 1963

7) Henry Fayol was a

a) Social scientists
b) Mining engineer
c) Accountant
d) Production engineer

8) Which of the following statement best described the principle of ‘Division of work’?
a) work should be divided into small tasks
b) labour should be divided
c) resource should be divided among jobs
d) it leads to specialisation

9) Which of the following is Not a principle of management given by Taylor?

a) Science, not rule of Thumb
b) Functional foremanship
c) Maximum ,not restricted output
d) Harmony not discord

10) Management should find ' One best way ' to perform a task. Which technique of
scientific management is defined in this sentence?
a) Time study
b) Motion study
c) Fatigue study
d) Method study

11) Who is known as 'the Father of Modern Theory of Management’?

a) Harold Koontz.
b) Henry Fayol
c) F.W. Taylor
 d) Max Weber

12) The main aim of Taylor was to.................

a) improve labour relations
b) improve productivity
c) To attempt a general theory of management
d) None of these

13) Method study is ..................

a) preliminary survey of production Process
b) study of the movement of a work
c) study of operational efficiency
e) All of the above
14) Henry fayol is well known...........
e) As the father of modern management
f) for formulating general principles of management
g) for promoting trade unionism
h) None of these

15) Unity of command implies

i) A subordinate should receive orders from all the superiors
j) individuals must sacrifice in the larger interest
k) be accountable to one and only one superior
l) None of these

16) Purpose of time study is ...........

m) to remove wastage of time
n) to give timely assistance
o) to determine fair days work
p) watching time

17) The scientific technique of task setting is known as ......................

a. work study
b.motion study
c. time study
d.method study

18) What is the full form of MBO?

a. Management By Opportunity
b.Method By opportunity
c. Management By Objectives
d.Method By Objective

19) Management by Objectives concept was developed by-----------.

a. Peter.F.Drucker
 b.Fayol
c. Chester Bernard
d.None
20) MBO offers the basis for assessing the---------------------.
a.Techniques
b. Performance
c.Authority
d. Subject
21) The process of MBO starts with--------.
a.setting up of obligation
b. Fetron plan
c.Review
d. All
22) Principles of management are not
a. behavioural.
b. absolute.
c. universal.
d. flexible.

23) Principles of management provide

a. readymade solutions to problems.
b. general guidelines.
c. methods and procedures.
d. rules and regulations.

24) Management principles differ from pure science principles because management principles
are
a. vague.
b. situation-bound.
c. rigid.
d. easy to learn.

25) Principles of management are significant because these result in_ _.

a. taking initiative.
b. adapting to new technology.
c. employee satisfaction.
d. optimum utilisation of resources.

26) Which one of the following is not a principle of scientific management?

a. Functional foremanship
b. Development of personnel
c. Harmony, not discord
d. Maximum, not restricted output
 27) Management should find ‘one best way’ to perform a task. Which technique of scientific
management is defined in this sentence?
a. Time Study
b.Method Study
c. Fatigue Study
d.Motion Study.
28) Unity of command is related to
a.superiors and subordinates.
b.management and workers.
c.planned actions.
d. cooperation among employees.

28) Gang plank is related to

a. communication.
b.motivation.
c. supervision of workers.
d.incentives to workers.

29) Management principles are flexible whereas principles are rigid.

a. Pure Science
b.Employment
c. Scientific Management
d.Art

30) denotes concentration of authority at the top level.

a. Decentralisation
b.Centralisation
c. Coordination
d.Delegation

31) is the technique in which each worker is supervised by eight supervisors.

a. Functional foremanship
b.Unity of action
c. Centralisation
d.Simplification of work

32) _ principle of management puts emphasis on judicious application of penalties

by the management.
a. Esprit de corps
b. Order
c. Division of work
d. Discipline

34) _ principle of management states that there should be a place for

everything and everything should be in its place.
a) Equity
b) Discipline
 c) Order
d) Esprit de corps

35) means one plan, one boss.

a) Unity of direction
b) Unity of command
c) Centralisation
d) Gang Plank

36) involves harmony and team spirit among employees.

a) Discipline
b) Esprit de corps
c) Order
d) Standardisation

37) “Unity of command means one employee getting orders and instructions from one
supervisor”.
a) True
b) False

38) Time study involves analysing movements involved in performing an activity.

a) True
b) False

39) Scalar chain involves direct communication between two employees at horizontal level.
a) True
b) False

40) Discipline principle of management leads to development of team spirit.

a) True
b) False
41) The principals of management are significant because of
a) increase in efficiency
b) Initiative
c) optimum utilisation of resources
d) Adaptation of changing technology
42) Observe the following management principles and pick the odd one out. Justify your
answer.
a) unity of command
b) unity of direction
c) maximum output
d) equity

43) Which scholar's definition on management is " Management is the art of getting things
done through and with people in formally organised groups"?
a) Harold Koontz
b) J.N. Schulze
 c) S. George
d) Henry Fayol

44) Which of the following is not a Management Principle ?

a) Order
b) Discipline
c) Equity
d) Cooperation

45) The term hierarchy implies.........

a) departmentalisation
b) a definite ranking order
c) specialisation
d) None of these

46) Scientific analysis of work under scientific management requires......

a) time study
b) motion study
c) Both a & b
d) work study

47) Management by objective is

a) goal oriented
b) work oriented
c) none of the above

48) Which scholar introduced the functional type of organisation?

a) F.W. Taylor
b) Chester Bernard
c) Allen
d) Max Weber

49) _ is known as the founder of Human Relation School.

a) Henry Fayol
b) Elton Mayo
c) Peter Drucker
d) F.W. Taylor

50) Principle of Management is concerned with promoting team spirit.

a) Equity
b) Scaler
c) Unity of Command
d) Espirit de Crops
1-d 2-d 3-c 4-b 5-e 6-b 7 -b 8-b 9-d 10 - d
11 - b 12 - b 13 - a 14 -a 15 - c 16 - c 17 - c 18 - c 19 - a 20 - b
21 - a 22 - b 23 - b 24 - b 25 - d 26 - a 27 - b 28 - a 29 - a 30 - a
31 - b 32 - a 33 - d 34 - c 35 - a 36 - b 37 - a 38 - b 39 - b 40 - b
41 - d 42 - c 43 - a 44 - d 45 - b 46 - c 47 - a 48 - a 49 - b 50 - d

Analytical questions:
1. What are the characteristics of management?
2. Briefly explain the nature of management?
3. Briefly explain the importance of management?
4. Distinguish between administration and management ?
5. Explain various levels of management ?
6. Is management art or science ? explain
7. Discuss taylor’s scientific management .
8. Explain the principle of management or explain fayol’s principles or 14 principles of
management.
9. Explain Elton mayo’s principle.