Introduction to Management (MB111) – July 2004

Question Paper
Introduction to Management (MB111) – July 2004
• Answer all questions.
• Each question carries one mark.
1. Management By Objectives (MBO) is a system for achieving organizational objectives,
enhancement of employee commitment and participation. Which of the following is not an
advantage of MBO?
(a) Role clarity (b) Clarity in organizational action
(c) Personnel satisfaction (d) Basis for organizational
change
(e) Flexibility.
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2. Corporate Social Responsibility (CSR) is seriously considering the impact of the company’s
actions on society. Which of the following is not true with regard to corporate social
responsibility?
(a) CSR involves fulfilling obligations to various interest groups
(b) CSR involves three types of behavior – positive, neutral and negative
(c) The management of every organization must be conscious of its CSR
(d) The organization’s obligations to the interest groups may vary from society to society
(e) CSR is essentially the same as Social Responsiveness.
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3. If an MNC feels that “It is best to give foreign subsidiaries, staffed by local nationals, a
great deal of managerial freedom”, its orientation is known as
(a) Ethnocentric (b) Polycentric (c)
Regiocentric
(d) Geocentric (e) None of the above.
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4. Raj, Ramesh and Rajesh are all making decisions about how to approach the team project.
They have only one week to write a 75-page analysis of the government’s suit against
Microsoft. In addition, they all work full-time, which decision-making model will they
probably rely on?
(a) Rational (b) Intuition (c) Garbage
can
(d) Bounded rationality (e) None of the above.
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5. Which of the following is not one of the Key Result Areas suggested by Peter Drucker?
(a) Innovation (b) Productivity (c)
Profitability
(d) Physical distribution (e) Public responsibility.
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6. 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.
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7. Susan is a General manager at “Divine Corporation” and she is in charge of making sure
that the IT department stays in close contact with the marketing department during the
implementation of a new e-commerce effort with David as its project manager. Which role
is Susan playing?
(a) A figure head role (b) A liaison role
(c) A project manager role (d) An operational task role
(e) A multi-tasking role.
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8. If a group of Afro-American female managers meet once a month to discuss possible career
paths within their organization, this is an example of an
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(a) Nominal group (b) Delphi group (c) Interacting group
(d) Quality circle (e) Interest group.
9. Which of the following is a myth about planning?
(a) Planning is all pervasive and extends throughout the organization
(b) Planning involves choice
(c) Planning is a rational process
(d) Planning reduces flexibility
(e) None of the above.
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10. According to the open system model of organizing a boundary-spanning sub-system helps
the organization in interacting with
(a) The external environment (b) Its divisional
heads
(c) Its Informal organization (d) Its labor union
(e) None of the above.
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11. A person who focuses on innovation and creativity and transforms a dream or an idea into a
profitable venture by operating within the organizational environment is known as
(a) Scientist (b) Organizer (c)
Entrepreneur
(d) Innovator (e) None of the above.
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12. According to Bottom-up approach of organizational model, when does a subordinate
identify the communication from his superior as being authoritative and try to comply with
it?
(a) When the subordinate understands the message
(b) When the subordinate feels that it serves his/her personal interests
(c) When the subordinate is in a position to comply with it
(d) When the subordinate believes that it matches with the organization’s purpose
(e) All of the above.
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13. 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.
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14. Richard has been unemployed for three months. When his wife asked him, why he was not
looking for a job, Richard responded, “If I am lucky, I will get my old job back.” Richard
would be considered as having an
(a) High ego strength (b) External Locus of control (c) Intuition type
personality
(d) Internal locus of control (e) Low ego strength.
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15. The four basic functions of management are
(a) Planning, leading, coordinating and controlling
(b) Controlling, memorizing, leading and organizing
(c) Planning, leading, organizing and controlling
(d) Coordinating, planning, organizing and challenging
(e) Coordinating, planning, organizing and staffing.
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16. Risk is a situation where the decision maker
(a) Knows, with reasonable certainty, what the alternatives are and what conditions and
outcomes are associated with each alternative
(b) Has incomplete information about available alternatives but has a good idea of the
probability of particular outcomes associated with each alternative
(c) Is not aware of all available alternatives and the probability of the outcomes
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associated with each alternative
(d) Both (b) and (c) of the above
(e) Both (a) and (c) of the above.
17. BCG matrix is a portfolio approach that compares various businesses in a firm’s portfolio
on the basis of relative market share and market growth rate. In this regard, sometimes
called “problem children” or “wildcats”, which of these are new products with a potential
for success, but need a lot of cash for development?
(a) Cash cows (b) Dogs (c) Stars
(d) Question marks (e) Both (a) and (b) above.
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18. A written document that explains what the corporate culture considers to be "right" and
"wrong" behavior is called an
(a) Vision statement (b) Ethics training (c) Code of ethics
(d) Ethics audit (e) Mission statement.
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19. The principles of management have evolved through different schools of thought.
Achieving cooperation of human beings rather than chaotic individualism is a principle of
which of the following management schools of thought?
(a) Early views of management (b) Human relations approach
(c) Scientific management (d) Administrative theory
(e) Bureaucracy.
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20. Which of the following forms of decision-making involves seeking expert opinion
iteratively through anonymous participation?
(a) Brainstorming (b) Nominal group (c) Delphi group
(d) Interactive group (e) None of the above.
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21. Control is of three types – feed forward, concurrent, and feedback control. Which of the
following is not an example of feed forward control?
(a) Sales forecast (b) Budgetary control (c) Inventory
control
(d) Programme Evaluation and Review Technique (PERT) (e) Quality control.
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22. As a practice, though not documented, a brokerage house tries to promote its own
employees into a broker's slot whenever one becomes available This is an example of an:
(a) Rule (b) Procedure (c) Policy (d)
MBO (e) Norms.
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23. Which of the following is not a limitation of FW Taylor’s scientific management?
(a) It takes aggressive mechanical view of production and sidelines human aspect at
the workplace
(b) It advocates close and strict supervision of work based on authoritarian approach
(c) Production standards are set by the management
(d) It fails to consider internal and external environmental influences upon the
organization
(e) It overlooks the social needs of workers and overemphasizes their economic needs.
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24. 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 (e) Both (a) and (c)
above.
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25. When a firm buys all or part of another business, such as Philip Morris acquired Kraft and
General Foods, the organization redesign is called an
(a) Integration (b) Merger (c) Divestiture (d) Acquisition
(e) Synergy.
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26. Establishment of, and the agreement by managers and planners to utilise, consistent
assumptions critical to plans under consideration is _______________.
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(a) Organization climate (b) Organization culture (c)
Premising
(d) Strategic planning (e) Training.
27. Which of the following is instrumental in distorting the message in communication?
(a) Sender (b) Receiver (c) Encoding (d) Decoding
(e) Noise.
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28. When Vision Informatics Ltd invited external experts for performance appraisal, the
employees resisted the move To overcome the resistance, the management invited the leader
of the employees’ union to participate in the decision-making process. Which of the
following measures to overcome resistance did Vision Informatics adopt?
(a) Participation and involvement
(b) Facilitation and support
(c) Negotiation and agreement
(d) Manipulation and co-optation
(e) Education and communication.
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29. According to Porter’s Five Competitive Forces Model which of the following pull(s) prices
down and push(es) cost of doing business up?
(a) Rivalry (b) The threat of new entrants
(c) The bargaining power of suppliers
(d) The threat of substitutes (e) Both (a) and (b) above.
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30. Middle level management is responsible for
(a) Intermediate strategic plans (b) Intermediate tactical plans
(c) Long range strategic plans (d) Long range tactical plans
(e) Short range operational plans.
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31. According to Henri Fayol, business operations of an organization can be divided into six
activities. Which of the following is not one of those six activities?
(a) Technical (b) Security (c) Accounting (d)
Financial (e) Legal.
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32. The process of maintaining the internal balance necessary for survival by importing needed
resources from the environment is known as
(a) Negative entropy (b) Dynamic homeostasis (c)
Differentiation
(d) Equifinality (e) Feedback mechanism.
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33. Productivity can be measured in two ways: total productivity and partial productivity. In
both the cases it is expressed as a ratio of outputs to inputs. Which one of the following
inputs is common to both the measures?
(a) Capital (b) Energy (c) Materials (d) Labor
(e) Technology.
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34. Which of the following statements is/are true?
I. Standing plans are developed for activities that do not recur regularly over a period
of time.
II. A policy is a standing plan that specifies the broad parameters within which
organization members are expected to operate in pursuit of organization’s goals.
III. Rules are one of the standing plans that spell out specific actions that must be taken
or not taken in a given situation.
(a) Only (I) above (b) Only (II) above (c) Both (I)
and (II) above
(d) Both (II) and (III) above (e) All (I), (II) and (III) above.
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35. Executives making ethical decisions pass through three stages of moral development –
pre-conventional, conventional, and (principle or) post-conventional. Which of the
following statements is true of the conventional stage of moral development?
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(a) Decisions are influenced exclusively by personal interest
(b) Decisions are made in terms of the rewards and punishments resulting from different
types of behavior
(c) Decisions are influenced by the expectations of others
(d) Decisions are influenced by personal ethical principles
(e) Decisions may or may not be in accordance with the rules or laws of society.
36. In a formal organization the source of leader power is delegated by management whereas in
an informal organization the source of leader power is
(a) Given by shareholders (b) Given by position (c) Given
by person
(d) Given by group (e) All of the above.
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37. Madhu has to decide how many cashiers to schedule for Saturday at Quick Buy Grocery. He
has developed a chart that gives number of customers and the probability of each. Madhu is
dealing with
(a) Risk (b)
Uncertainty (c) Certainty
(d) Programmed decisions (e) Non-programmed decisions.
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38. Which of the following theories of motivation does not, at least in part, take into account of
the physiological needs?
(a) Alderfer’s ERG theory (b) Mc Clelland’s Acquired Needs theory
(c) Maslow’s Hierarcy of Needs theory
(d) Herzberg’s Two Factors theory (e) None of the above.
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39. Mahesh strongly believes that employees should value organizational goals more than
individual goals. Which of the following are we talking about?
(a) Perception (b) Attitude (c) Personality (d) Values
(e) Learning.
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40. Which of the following are questionable assumptions underlying the direct control?
(a) Performance can not be measured
(b) Personal responsibility does not exist
(c) Time and expenditure is warranted
(d) Mistakes cannot be discovered in time
(e) All of the above.
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41. A small group gathered in the conference room to discover the impact they had on others, to
explore and express their feelings, and to learn more about them. What is this Organization
Development (OD) application called?
(a) Team building (b) Hostile confrontation (c) Strategic
intervention
(d) Sensitivity training (e) Process consultation.
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42. Which of the following is not used in conflict resolution?
(a) Avoidance (b) Problem solving (c) Compromise
(d) Forcing (e) Job rotation.
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43. Colors is a medium-sized manufacturer of readymade garments having presence in AP,
Tamilnadu, and Karnataka. Which of the following forms of organization structures best
suits the company?
(a) Functional structure (b) Product structure (c)
Territorial structure
(d) Hybrid structure (e) Matrix structure.
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44. Ravi, a new recruit in Solaris Systems, perceives that his outcomes (pay, perks etc) are
lower as compared to his inputs (qualifications, experience etc) in relation to his colleagues.
Which of the following theories of motivation explains this phenomenon?
(a) Need hierarchy (b) Two-factor model (c) Equity
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theory
(d) Expectancy theory (e) ERG theory.
45. Organizational Development (OD) cannot be used for which of the following?
(a) Adapting to mergers (b) Creating barriers to change (c)
Managing conflict
(d) Revitalizing organizations (e) Strengthening interpersonal trust.
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46. Organizational culture is the collection of shared values, beliefs, rituals, stories, myths and
specialized language that foster a feeling of community among organization members.
Which of the following is not a characteristic of organization culture?
(a) It differentiates one organization from another
(b) It defines the internal environment of an organization
(c) It ensures consistency in the behavior of organization members
(d) It remains absolutely stable throughout the life of an organization
(e) It is perceived by the organization members as well as by outsiders.
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47. Divisional organization structure takes three forms: product division, geographic division
and customer division. Which of the following is an advantage of a product divisional
structure?
(a) It addresses the special and widely varied needs of customers for clearly defined
services
(b) It encourages the development of expertise in functional areas
(c) It allows better understanding of local markets
(d) It brings about order and clarity to the activities of the organization
(e) It facilitates comparison of the performance of various product lines.
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48. Tangent Electronics Ltd is faced with the problem of allocating resources to its newly set up
computer peripherals division. Which of the following decision-making techniques can help
solve the problem?
(a) Linear Programming (b) Decision tree (c) Simulation
(d) Waiting-line method (e) Game theory.
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49. Which of the following conflict resolution techniques emphasizes on the areas of agreement
and common goals and de-emphasizes disagreements?
(a) Avoidance (b) Forcing (c) Compromise (d) Problem solving (e)
Smoothing.
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50. Which of the following is the most accurate statement regarding the effect of corporate
culture on performance and responsiveness?
(a) Only tangible aspects of the organization have a real effect on performance and
responsiveness
(b) Corporate culture is the sole determinant of organization performance and
responsiveness
(c) Corporate culture affects performance and responsiveness in two main ways-some
values support responsiveness and some values act as guide
(d) Only top management and leadership affect an organization’s performance and
responsiveness
(e) Top management does not play any role.
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51. Which leadership studies called the dimensions of leadership behavior “initiating structure”
and “consideration”?
(a) University of Michigan studies
(b) Blake and Mouton’s managerial grid
(c) House’s path-goal theory
(d) Ohio State studies
(e) Fiedler’s contingency approach.
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52. There is a set of motivational techniques available to the managers to improve the
productivity and performance of employees. Which one of the following is not a
motivational technique?
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(a) Rewards (b) Participation (c) Quality of work life
(d) Job enrichment (e) Job analysis.
53. Innovation differs from change in that, innovation tends to be more difficult because it
(a) Takes place much quickly
(b) Relies on incorporating significant new ideas
(c) Is reactive in nature and correct responses are difficult to manage
(d) Must take place after change occurs
(e) All of the above.
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54. Behaviorally Anchored Rating Scales (BARS) is a sophisticated performance rating method.
Which of the following is not true with regard to BARS?
(a) BARS minimizes subjective interpretation inherent in graphic rating scales
(b) BARS makes use of ‘anchors’ (common reference points of performance)
(c) BARS concentrates on job-specific behaviors and hence is highly meaningful
(d) BARS is a simple and cost-effective rating method
(e) BARS can be applied in organizations where a large number of people perform similar
jobs.
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55. 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 (c) Geographical
location
(d) Process (e) Function.
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56. Blake and Mouton’s Managerial Grid is an approach to defining leadership styles based on a
manager’s concern for people and concern for production. Which of the following styles of
management assumes that exertion of minimum effort to get required work done is
appropriate to sustain organization membership?
(a) Authority-obedience management
(b) Team management
(c) Country Club management
(d) Impoverished management
(e) Organization-man management.
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57. While making decisions managers generate a number of alternatives to solve a particular
problem. The criterion on which they do not evaluate the alternatives is
(a) Quality (b) Ethics (c) Cost (d)
Feasibility (e) Habit.
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58. Vamsi, a candidate for the position of Professional Service Representative in Zydus Cadila,
was required to make a presentation on a new anti-asthma inhaler before a panel of
physicians in the company, as part of the selection process. Which of the following tests was
Vamsi undergoing?
(a) Knowledge test (b) Work sample test (c) Intelligence test
(d) Personality test (e) None of the above.
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59. Which of the following types of managers have a strong inclination to minimize
expenditure?
(a) Moral managers (b) Intentional amoral managers
(c) Unintentional amoral managers (d) Immoral managers
(e) Amoral managers.
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60. The determination of an individuals work related responsibilities is called
(a) Job organization (b) Job specialization (c) Job
rotation
(d) Job design (e) Job enlargement.
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61. Mc Gregor suggested that there are two sets of assumptions that shape the way managers
treat their employees. Which of the following is not correct about his theory?
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(a) Theory Y assumes that an average person will accept, even seek responsibility
(b) Theory Z is a combination of theory X and theory Y
(c) Theory X managers assume that lower- order needs dominate individuals
(d) Theory X managers see people as irresponsible and lazy
(e) Theory Y views people as responsible and conscientious.
62. A skills inventory is a computerized database containing basic information about each
employee that can be used to assess the availability of candidates for meeting current and
future human resource needs. Which of the following is an application of skills inventory?
(a) Forecasting manpower demand
(b) Forecasting manpower supply
(c) Replacement training
(d) Succession planning
(e) Planning human resource actions.
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63. Decentralization is the systematic delegation of authority in an organization-wide context.
Which of the following factors does not influence the degree of decentralization in an
organization?
(a) Size of the organization
(b) External environment
(c) Geographical location of the organization
(d) Geographical dispersion of the organization
(e) Competence of the managers.
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64. Which of the following leadership models recommends a dynamic and flexible leadership
style rather than static style and is based on the premise that leaders need to alter their
behaviors depending on one major situational factor – the readiness of followers?
(a) Fiedler’s Contingency Approach to Leadership
(b) Path-Goal Theory
(c) Vroom-Yetton’s Model
(d) Hersey and Blanchard’s Situational Leadership Model
(e) Transformational Leadership Theory.
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65. 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.
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66. 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 phenomenon called?
(a) Cross-training (b) Role perception (c) Training
(d) Simulation (e) Apprenticeship.
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67. Xavier has decided that to make his small company a success, he should give his employees
the authority, tools and information they need to do their jobs with greater autonomy. What
does this approach describe?
(a) Authority (b) Power (c)
Empowerment
(d) Teamwork (e) Inspirational leadership.
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68. When a manager listens to only part of what another manager is saying at a meeting because
he "already knows what that manager will say next," this is an example of:
(a) Downward communication (b) Selective perception (c) Horizontal
communication
(d) Semantic distortion (e) None of the above.
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69. Which of the following models of people proposes that people are unpredictable, subjective,
relative and unique?
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(a) Rational (b) Emotional (c)
Behavioristic
(d) Phenomenological (e) Economic.
70. When a manager interviews a job candidate by asking him a list of questions from an
outline, this is an example of what type of interview?
(a) Structured (b) Stress (c)
Unstructured
(d) Comprehensive (e) Semi-structured.
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71. Which of the following is true of a budget?
(a) Comparison of two significant figures
(b) An assessment of the effectiveness of the organization’s transformation process
(c) A formal verification of an organization’s accounts, records, operating activities
(d) A numerical plan for allocating resources over a specific period
(e) A comprehensive study of the industry.
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72. A key difference between the theories of Fiedler and Hersey and Blanchard is that
(a) Fiedler considered only task characteristics, while Hersey and Blanchard focused on
the individual
(b) Hersey and Blanchard placed a greater emphasis on task characteristics than did
Fiedler
(c) Fiedler examined a variety of characteristics, while Hersey and Blanchard focused
solely on the individual
(d) All of the above
(e) Both (a) and (b) above.
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73. The four phases of Creative process are
I. Logical formulation
II. Intuition
III. Unconscious scanning and
IV. Insight.
The order in which the process takes place is
(a) (I), (II), (III) and (IV)
(b) (II), (III), (IV) and (I)
(c) (III), (II), (IV) and (I)
(d) (IV), (I), (III) and (II)
(e) (III), (I), (IV) and (II).
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74. Mr. Arbind, the CEO of EEC Inc has identified the benefits that a company can derive by
practicing job rotation. But he is unable to find the position in which he can rotate his
managers and trainees. So, from the given list, help him to identify the suitable
position/positions for job rotation?
I. Non-supervisory work
II. Observation assignment
III. Top-level management position.
(a) Only (I) above (b) Only (II) above (c) Only
(III) above
(d) Both (I) and (III) above (e) Both (I) and (II) above.
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75. What is the budget that expresses what individual costs should be at one specified volume
called?
(a) Variable budget (b) Cash budget (c) Fixed budgets
(d) Expense budget (e) Operating budget.
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76. Communication is the transfer of information from a sender to a receiver, with the
information being understood by the receiver. In this process what is the term associated
with the selection of appropriate symbols, such as words, numbers or digits by the sender?
(a) Modelling (b) Encoding (c) Channel (d) Decoding
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(e) Feedback.
77. Ratio analysis helps a manager 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.
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78. One of the principles of management states “In an organization, the operations that have the
same objective should be directed by one manager using one plan”. The principle is known
as
(a) Authority (b) Discipline (c) Unity of
command
(d) Unity of direction (e) Equity.
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79. If the degree of centralization in an organization is low, the controls should be
(a) Reduced in number (b) Increased in breadth (c)
Externally imposed
(d) Informal or self control (e) Loose and informal.
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80. The difference between the Nominal group technique and the Delphi technique is
(a) One is a verbal approach, one is written
(b) One is a short term group, the other long term
(c) One is visual, the other is verbal
(d) One is face-to-face, the other keeps group member anonymous
(e) One utilizes a devil's advocate, the other does not.
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81. As a manager, you decide that every afternoon, you are going to spend time with your
employees to find out what’s happening. This is called
(a) The grapevine
(b) Management by wandering around
(c) Horizontal communication
(d) Downward communication
(e) Upward communication.
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82. Titan has offered diamond-studded watches in the ‘jewellery watch segment’ under the
brand name of Tanishq. What type of marketing has Titan attempted?
(a) Buzz marketing (b) Direct marketing (c) Niche
marketing
(d) Societal marketing (e) Ethical marketing.
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83 Communication is the transfer of information in the form of an understandable message
through a channel from a sender to others. If Boeing Aerospace Co. has difficulty
communicating with the British Air Force because of the abbreviations used by the British
military, this is a problem in
(a) The grapevine (b) Feedback (c) Semantics (d) Encoding (e) None
of the above.
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84. Which of the following is/are the finding(s) of Hawthorne Studies?
(a) Workplace culture sets its own standards
(b) Fatigue is the main factor affecting the output
(c) Job performance depends on the individual worker
(d) Both (a) and (b) of the above
(e) Both (b) and (c) of the above.
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85. The basic method of _______ control is an improvement over _______ control, because it
tries to shorten or to eliminate the delay between performance and feedback about the
performance
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(a) Feedback, Feedforward (b) Concurrent, Feedback (c) Feedback,
Concurrent
(d) Feedforward, Feedback (e) Steering, Concurrent.
86. Which of the following is not true with regard to the Porter and Lawler model of
motivation?
(a) It’s built on Vroom’s expectancy theory
(b) It means motivation is not a simple cause-and-effect matter
(c) It assumes that satisfaction leads to performance
(d) It emphasizes reward structure
(e) It assumes performance leads to intrinsic as well as extrinsic rewards.
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87. When a shop foreman at a Ford Motor Co. plant orders a worker to change the way he is
working in order to improve the productivity of the production line, which principle is the
foreman using?
(a) Delegation (b) Authority (c) Unity of
command
(d) Division of work (e) Span of control.
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88. The idea that a marketing manager should focus his efforts only on those lines of the budget
that deviate significantly from planned expenditures is part of which principle?
(a) Decentralization (b) Centralization (c) Exception
(d) Planned change (e) Delegation.
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89. What is the name given to a group that is created by an organization to accomplish a
relatively narrow range of purposes within a stated or implied time horizon?
(a) Functional group (b) Task group (c)
Informal group
(d) Formal group (e) Interest group.
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90. Irena has been assigned to work on the development of a budget that plans future
investments in major assets such as building and heavy machinery. Irena is working on a(n)
(a) Cash budget (b) Capital budget (c)
Revenue budget
(d) Operating budget (e) Expense budget.
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91. Organizations that have divisional structure but do not treat the divisions as autonomous
businesses may opt to set up
(a) Standard Cost Centers (b) Revenue Centers (c) Profit
Centers
(d) Investment Centers (e) None of the above.
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92. Advertisements for products and services such as life insurance policies, mouthwash and
deodorants play upon fear. By showing the unfortunate consequences that a consumer faces
if he doesn’t use the service or product, advertisers force the consumers to purchase the
product or service Such ads use
(a) Legitimate power (b) Coercive power (c)
Expert power
(d) Referent power (e) Reward power.
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93. When a manager asks another manager how he makes important marketing decisions and is
told: "Oh, I just go with my gut-feeling," this marketing manager is using what decisionmaking
approach?
(a) Programmed (b) Rational (c) Intuitive (d)
Satisficing (e) Irrational.
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94. ______ is the practice of comparing, on some measurable scale, the performance of a key
business operation in-house vis-à-vis a similar operation in another organization.
(a) Reengineering (b) Benchmarking (c) Total Quality
Management (TQM)
(d) Forecasting (e) Lobbying.
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95. A strategy refers to the determination of the purpose and the basic long-term objectives of
an enterprise, and the adoption of courses of action and allocation of resources necessary to
achieve these aims. In this context, if AT & T decided to buy “Media One”, a cable
company, it was pursuing a
(a) Functional – Level strategy (b) Cost leadership strategy
(c) Focus strategy (d) Corporate – Level strategy
(e) Business – Level strategy.
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96. ________ means recruitment of employees immediately upon graduation, generation of
employment until retirement, and mandatory retirement.
(a) Seniority system (b) Continuous training (c)
Shushin Koyo
(d) Kacho (e) Kanban.
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97. Managers at different levels in the organizational hierarchy require various sets of skills.
Finding rational and implementable solutions to the problems faced by the organization falls
under which of the following sets of skills?
(a) Technical skills (b) Human skills (c)
Conceptual skills
(d) Design skills (e) None of the above.
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98. According to "expectancy theory", the probability of an individual acting in a particular way
depends on:
(a) The personality of the individual and the likelihood it will change
(b) The company and its potential to be moving in the right direction
(c) The situation
(d) The strength of that individual's belief that the act will have a particular outcome and
on whether the individual values that outcome
(e) Both (a) and (c) above.
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99. A functional-level strategy is concerned with the question
(a) What business are we in?
(b) How do we compete?
(c) How do we support our chosen strategy?
(d) What business do we buy?
(e) Where to market our products?
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100. Controlling is the management function that is aimed at regulating organizational activities
so that actual performance conforms to expected organizational standards and goals. What
is this type of control in which the manager does not receive the information in time to stop
the damage?
(a) Feed forward (b) Concurrent (c) Feedback (d) Yes - No
(e) Steering.
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END OF
QUESTION
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