Introduction to Management (MB111) : October 2004

Question Paper
Introduction to Management (MB111) : October 2004
• Answer all questions.
• Marks are indicated against each question.
1. The three general types of managerial roles identified by Mintzberg are
(a) Interpersonal, administrative, informational
(b) Decisional, interpersonal, organizational
(c) Interpersonal, informational, decisional
(d) Interpersonal, informational, organizational
(e) Organizational, decisional, administrative.
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2. In the area of diversity, establishing task forces or committees to explore issues and provide ideas,
carefully choosing work assignments to support the career development of all employees, and
evaluating the extent to which diversity goals are being achieved would most likely be classified under
which of the following managerial roles?
(a) Planning (b) Staffing (c) Leading (d) Organizing
(e) Controlling.
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3. The kind of management that conducts the business or affairs by standards established, by facts or
truths gained through systematic observation, experiment, or reasoning is referred to as
(a) Administrative management (b) Behavioral management
(c) Bureaucracy (d) Scientific management
(e) Classical management.
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4. Keith Davis and William C. Frederick have worked on the concept of social responsiveness. And
according to them the social responsiveness of an organization can be measured on the basis of which
of the following criteria?
(a) Contributions to profit-oriented projects
(b) Fair treatment of employees; fair pay and safe working conditions
(c) Unequal employment opportunity
(d) Unsafe and poor quality products to customers
(e) Disregard to environment pollution.
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5. Archie B.Carroll, an eminent researcher in the area of social responsibility, identified three types of
management based on how ethical or moral their decisions and actions are. In this regard, which of the
following is a characteristic of Immoral Management?
(a) Managers strive for success, but never violate the parameters of ethical standards
(b) Managers follow the law not only in letter, but also in spirit
(c) Managers show lack of concern about others' desire to be treated fairly
(d) This type of management strives to follow ethical principles and precepts
(e) It is in the best interests of the organization in the long run.
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6. 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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7. Which of the following steps in the planning process should be completed before the others can be
addressed?
(a) Put plans into action
(b) State organizational objectives
(c) List alternative ways of reaching objectives
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(d) Develop premises on which to base each alternative
(e) Evaluate alternatives by weighing them in the light of premises and goals.
8. Which of the following would not be an accurate depiction of the differences between strategic and
tactical planning?
(a) Strategic planning is developed mainly by upper-level management and tactical planning is
generally developed by lower-level management
(b) Facts for strategic planning are generally easier to gather than facts for tactical planning
(c) Strategic plans generally contain less detail than tactical plans
(d) Strategic plans generally cover a longer period of time than tactical plans
(e) 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.
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9. Plans that apply to the entire organization, that establish the organization's overall objectives, and that
seek to position the organization in terms of its environment are called _____ plans.
(a) Short-term (b) Temporary (c) Operational
(d) Strategic (e) Tactical.
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10. Planning is an essential ingredient in successful achievement of goals and objectives. It is a prerequisite
not only for success but even for surviving in a complex and competitive world. In this scenario, which
of the following is not a characteristic associated with the management function of planning?
(a) It is goal-oriented
(b) It is a secondary function
(c) It is an intellectual or rational process
(d) It is forward-looking
(e) It is an integrated process.
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11. Formulation and definition of objectives of an organization is the basic requirement of effective
management and they serve as guidelines for managerial actions. In this context, the eight key result
areas in which Peter Drucker advises managers to set objectives include all of the following except
(a) Market standing (b) Productivity (c) Public responsibility
(d) Inventory control (e) Manager performance and development.
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12. Based on the organizational level the plans can be strategic, tactical or operational. In this regard, which
of the following best describes strategic planning?
(a) Facts are difficult to gather, and plans cover short periods of time
(b) Facts are difficult to gather, and plans cover long periods of time
(c) Facts are difficult to gather, and plans are developed mainly by lower level managers
(d) Facts are easy to gather, and plans are developed mainly by higher level managers
(e) Facts are easy to gather, and plans are developed mainly by lower level managers.
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13. Margaret is a top executive with her company. Recently she has devoted her skills and talents to the
development of new organizational objectives and the manner in which her firm can achieve those
goals. It could be stated that Margaret is engaged in ______.
(a) Resource allocation (b) Planning (c) Implementation
(d) Forecasting (e) Effort coordination.
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14. 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?
(a) Bounded rationality (b) Unbounded rationality (c) Uncertainty
(d) Heuristics (e) Kinesics.
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15. 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 a (n)
(a) Rule (b) Procedure (c) Policy
(d) MBO (e) Norm.
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16. The open-system view of organizations stresses the need for adaptability in the organizational structure,
and the interdependence of the system and the external environment. Open-system organizations have
several common characteristics. Bajaj Auto’s entry into the motorcycles market in light of a fast
declining demand for scooters is an attempt to achieve which of the following?
(a) Equifinality (b) Dynamic homeostasis
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(c) Entropy (d) Differentiation
(e) Focus.
17. This is a much broader concept than authority, and is the ability of individuals or groups to induce or
influence the beliefs or action of other persons and groups.
(a) Power (b) Responsibility (c) Delegation
(d) Discipline (e) Authority.
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18. Management By Objectives (MBO) is a system aimed at achieving organizational objectives,
enhancement of employee commitment and participation. In this regard, which of the following is a
final step of a typical MBO process?
(a) The organization’s overall objectives and strategies are formulated
(b) Successful achievement of objectives is reinforced by performance based rewards
(c) The action plans are implemented
(d) Progress towards objectives is periodically reviewed, and feedback is provided
(e) Major objectives are allocated among divisional and departmental units.
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19. The BCG matrix provides a framework for evaluating the relative performance of various businesses in
which a diversified organization works. In this regard, which of the following factors are considered in
a BCG matrix?
(a) Types of risk associated with product development
(b) Threats that economic conditions can create in future
(c) Social factors
(d) Market shares and growth of markets in which products are selling
(e) Political pressures.
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20. Today most of the business enterprises engage in strategic management, although the degrees of
sophistication and formality vary considerably. In this scenario, identify the correct statement from the
following with respect to Strategic Management.
(a) It seeks to maximize profit
(b) It identifies areas where the organization can build a competitive advantage
(c) It is short-term in nature
(d) It has little relevance to small organizations
(e) It is irrelevant to non-profit organizations.
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21. The strap of Rahul's backpack tears off as he starts to throw it over his shoulder. On the way to school,
he stops at the first store that carries backpacks, walks in, and purchases one off the front rack. Rahul
has just made what type of a decision?
(a) Irrational decision (b) Satisficing decision (c) Risky decision
(d) Optimal decision (e) Group decision.
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22. Anil, the manager of Internet Made Easy, is concerned. He is trying, like all technological based
companies, to stay ahead of the competition by being the first to offer the new services available on the
Internet. His business offers training to local businesses, and so he must offer the latest available
information; however, he must also advertise the classes and the content, which means going to the
publisher with that information six weeks before a class is to begin. What should his next series of
classes offer? Anil is operating under which of the following conditions?
(a) Uncertainty (b) Certainty (c) Risk
(d) Optimal decision-making (e) Maximin.
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23. Based on the degree of certainty involved, every decision-making situation falls into one of the three
categories. i.e., certainty, risk and uncertainty. In this regard, which of the following is a characteristic
of decision-making under risk?
(a) The decision-maker has complete information about available alternatives, and has a good idea of
the probability of particular outcomes for each alternative
(b) The decision-maker has complete information about available alternatives, but has no idea of the
probability of particular outcomes for each alternative
(c) The decision-maker has incomplete information about available alternatives, but has a good idea
of the probability of particular outcomes for each alternative
(d) Future environment is unpredictable and everything is in a state of flux
(e) The decision-maker is not aware of all alternatives, the risks associated with each, or the
consequences of each alternative, or their probabilities.
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24. Groups rather than a single individual most often make major decisions in organizations. Group
decision-making is the norm in most large and complex organizations and it is associated with certain
advantages and disadvantages. In this regard, 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 problem than
an individual acting alone
(d) The group is more likely to use "groupthink" when coming to a decision
(e) A group is able to give different perspectives to a problem.
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25. Which of the following decision-making models states that instead of searching for the perfect or ideal
decision, managers frequently settle for one that will adequately serve their purposes?
(a) Incremental Model (b) Garbage-can Model
(c) Satisficing Model (d) Rational Model
(e) Group Decision-Making Model.
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26. Major decisions in organizations are most often made by groups rather than a single individual. Group
decision-making is the norm in most large and complex organizations. In this scenario, 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 a(n)
(a) Nominal group (b) Delphi group (c) Interacting group
(d) Quality circle (e) Interest group.
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27. Decision-making is a systematic process and involves a series of steps. Any decision-making process
would basically contain seven steps and one among them is evaluating the alternatives. In this step, the
systematic evaluation of alternatives is usually done on the basis of five general criteria. They are
feasibility, quality, acceptability, costs and ______.
(a) Reliability (b) Durability (c) Serviceability
(d) Ethics (e) Aesthetics.
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28. Plans can be classified in a number of ways on the basis of the organizational level, frequency of use
and the time frame. Rules, procedures, policies and strategies are different types of plans. Which of the
following is the appropriate term to describe, "Before a health claim may be paid, the following steps
must be taken”?
(a) Rule (b) Procedure (c) Policy
(d) Nonprogrammed decision (e) Strategy.
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29. Executives making ethical decisions pass through three stages of moral development – preconventional,
conventional, and (principle or) post-conventional. Which of the following statements is
true of the conventional stage of moral development?
(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.
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30. Tyrone currently holds a management position at XYZ Corporation. He is excellent at time
management and does not hesitate to delegate tasks to subordinates. Tyrone feels the most challenged
and performs at his best level when unique problems arise at his company. He is most often one of the
first managers to come up with an effective resolution for the problem. Which of these can be stated of
Tyrone?
(a) Tyrone is excellent with programmed decisions
(b) Tyrone relies too heavily on the work of others
(c) Tyrone is apparently risk averse
(d) Tyrone excels at deriving nonprogrammed decisions
(e) Tyrone is an excellent resource allocation manager.
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31. Organizations are growing in size, in complexity and in geographical coverage, thereby increasing the
workload of executives. In this scenario, the concept that defines the number of subordinates that report
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to a manager and that indirectly specifies the number of levels of management in an organization is
called
(a) Authorized line of responsibility (b) Unity of command
(c) Unity of direction (d) Span of control (e) Responsibility factor.
32. Link well Ltd. is a one-year-old electrical equipment company, which has adopted functional structure
in its operations, but was facing lot of problems in coordination with its various other branches. The
management decided to change to divisional structure from the existing functional structure. Identify
from the following, which 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
(b) Coordination is simplified as each division is similar to an organization, containing the various
functions within it
(c) Individuals are able to develop in-depth areas of specialization to the same extent as in a
functional structure
(d) It helps the organization to focus on serving a particular customer
(e) It helps to fix responsibility and accountability for performance.
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33. United 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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34. Lifestyle Ltd. is a construction company with its projects distributed all over the country and abroad.
The company adopted functional structure in its operations and then changed its structure to divisional
structure. All these changes in the organization structure could not help the company from its low level
performance. Now, the company is thinking of adopting the matrix structure. Identify the primary
strength of the matrix structure.
(a) Economies of scale and the ability to coordinate interdependent projects
(b) Propensity to foster power struggles
(c) Employee satisfaction
(d) Duplication of activities and resources
(e) Local market expertise.
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35. In an attempt to help its employees resolve group dynamics issues on their own, Centura Synthetics has
engaged a consultant who would observe the employees at work and give them feedback regarding
dysfunctions in conflict resolution etc. Which of the following Organization Development (OD)
intervention techniques was Centura employing?
(a) Survey feedback (b) Process consultation
(c) Team building (d) Third-party intervention
(e) Techno structural activities.
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36. Which of the following statements is false regarding departmentation by process or equipment?
(a) It enables an organization to get the benefits of generalization
(b) The basic purpose is to get economic benefits
(c) It hinders the coordination of various functions
(d) Responsibility for profits is at the top
(e) It results in conflicts between different managers at different levels on matters such as allocation
of funds, providing facilities to different processes etc.
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37. BLL Ltd. is a two-year-old company with many product lines and is operating with many SBU’s to
make sure that all its products receive the same attention as if the product was developed, produced and
marketed by an independent company. Identify the statement, which is not correct regarding Strategic
Business Unit (SBU)?
(a) It does not have a separate mission and its mission is same as that of the organization as a whole
(b) It has well defined competitor groups
(c) It efficiently manages its resources in prime areas
(d) It should have a proper size, that is, it should be neither too small nor too large
(e) A business manager is appointed for each SBU and delegated the responsibility for guiding and
promoting the product.
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38. Which of the following factors determine(s) an effective span of control?
I. Clarity and Delegation of Authority.
II. Use of Objective Standards.
III. Rate of Change.
(a) Only (I) above (b) Only (II) above
(c) Only (III) above (d) Both (I) and (II) above
(e) All of the above.
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39. Bethany is the only direct supervisor for all fourteen employees within her department. The practices of
her company stipulate that employees only have to report to one immediate supervisor. This concept is
referred to as ____.
(a) Unity of command (b) Span of control
(c) Departmentalization (d) Decentralization (e) Formalization.
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40. 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) Internal growth strategy
(c) Diversification strategy (d) Corporate – Level strategy
(e) Business – Level strategy.
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41. In this age of increasing employee turnover, companies need to invent methods of quickly filling up the
positions rendered vacant. Companies will be greatly benefited if they define the duties and
responsibilities of various positions in the organization. The term that describes the determination of an
individual’s work related responsibilities is
(a) Job organization (b) Job specialization (c) Job rotation
(d) Job design (e) Job enlargement.
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42. A purchasing department may be created because the hospital administrator cannot effectively handle
all purchasing. The purchasing department would evaluate the vendors and suggest the appropriate ones
for purchasing the materials. What type of position authority has been created?
(a) Accountability (b) Line authority (c) Staff authority
(d) Responsibility (e) Expert power.
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43. Akram has the ability to ‘dock’ paychecks of employees who arrive at work past 9:05 a.m. What kind of
power does Akram possess?
(a) Coercive power (b) Legitimate power (c) Expert power
(d) Referent power (e) Reward power.
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44. Luminous Ltd., a company, dealing in packaged food, was facing lot of problems in its operations
leading to under-performance of its employees. After analysis, it was found that the employees were not
clear about their roles in the company and the organizational chart was not clear. In this scenario, which
of the following is false with respect to organization chart?
(a) It is a vital tool for providing information about organizational relationships
(b) It provides a visual map of the chain of command
(c) Charting an organization structure can show up the complexities and inconsistencies, which can be
corrected
(d) Its shows authority relationships as well as informal and informational relationships
(e) It helps managers and new personnel to know how and where they fit into the organization
structure.
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45. A person, who had applied for the post of a service representative, is asked to handle a simulated
situation involving a complaining customer, by the company. Which of the following selection devices
is being made use of?
(a) Application Blank (b) Intelligence Test (c) Personality Test
(d) Work Sampling Test (e) Knowledge Test.
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46. Which of the following is a computerized database containing basic information about each employee
that can be used to assess the likely availability of individuals for meeting current and future human
resource needs?
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(a) Manpower Inventory (b) Replacement Planning (c) Succession Planning
(d) Skills Inventory (e) Inventory Record File.
47. The process of determining the tasks that make up a job and the skills, abilities and responsibilities an
employee needs to accomplish that job is known as
(a) Job description (b) Job analysis (c) Skills inventory
(d) Job specification (e) Human resource inventory.
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48. Which of the following statements is not true of Empowerment?
(a) It allows the workforce some decision making power over their work processes
(b) It means that the workforce can change some of its working arrangements with managerial or
supervisor approval
(c) It does not allow the workforce to make a contribution to the organizational strategy
(d) It is a management tool that allows limited decision making to the workforce
(e) It allows the workforce total decision-making power over their work processes.
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49. According to which of the following powers, people or groups may exercise influence, because others
believe in them and their ideas?
(a) Position (b) Legitimate (c) Expert
(d) Referent (e) Coercive.
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50. There is a vast array of selection methods available for an organization. Each selection method enables
management to obtain information regarding the applicant. The size of the company, the number of
candidates needed, and the importance of the position to be filled are the major factors that determine
the steps in the selection process and the selection process usually follows a standard pattern. In this
regard, which of the following steps usually precedes the others in the selection process?
(a) Selection Test (b) Comprehensive Interview (c) Application Blank
(d) Reference Check (e) Physical examination of the candidate.
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51. The selection process involves mutual decision-making and the organization decides whether or not to
make a job offer and how attractive the offer should be. The selection process involves various types of
interviews. 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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52. Recruitment is the process of identifying and attempting to attract job candidates who are capable of
effectively filling job vacancies and it can be conducted both internally and externally. In this regard,
which of the following is a disadvantage to external recruitment?
(a) There will be new ideas entering organization
(b) Candidates may have broader experience
(c) Candidates may be familiar with competitors
(d) Potential internal candidates may be resentful
(e) Candidates may have new specialties.
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53. Which of the following contain sets of specific behaviours that represent gradations of performance and
are used as common reference points (or anchors) for rating employees on various job dimensions?
(a) Behaviourally anchored rating scales
(b) Graphic rating scales
(c) Behaviour rating scales
(d) Behaviour scales
(e) Performance rating scales.
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54. In addition to Operations Research (OR) techniques, there are several other techniques that can be used
for improving productivity in organizations. Decibel Acoustics Ltd. has undertaken an exercise to
reduce costs by analyzing and improving individual operations of its products. Which of the following
techniques for improving productivity is Decibel said to have employed?
(a) Work simplification (b) Time-event network
(c) Value engineering (d) Total Quality Management (TQM)
(e) Quality Circles.
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55. Which of the following consists of wages paid directly for time worked or the number of units
produced, as well as more indirect benefits that employees receive as part of their employment
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relationships with an organization?
(a) Remuneration (b) Fringe Benefit (c) Payment
(d) Compensation (e) Incentive.
56. Mr. Jackson is the most successful manager of CRIPS Inc. During his tenure, the company has never
looked back. One of the reasons for his success is his ability to think through abstract situations. It is the
ability to understand and coordinate full range of corporate objectives and activities. Which of the
following skills is Mr. Jackson good at?
(a) Technical skills (b) Design skills (c) Conceptual skills
(d) Human skills (e) PR skills.
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57. 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.
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58. There are various methods that managers can adopt to help 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?
(a) Facilitation and support (b) Manipulation
(c) Negotiation and agreement (d) Explicit and implicit coercion
(e) Education and communication.
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59. Performance appraisal is the process of evaluating individual job performance as a basis for making
objective human resource decisions. The process of performance appraisal occurs both informally and
formally or systematically. Which of the following points should a manager avoid in order to make their
formal and informal appraisal programs effective?
I. Shifting Standards.
II. Rater Bias.
III. Different Rater Patterns.
IV. Halo Effect.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) (II) and (IV) above (e) All of the above.
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60. 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. Senthil’s performance might be influenced by the _____ part of Vroom's expectancy
theory.
(a) Effort-performance linkage (b) Performance-reward linkage
(c) Effort-reward linkage (d) Valence
(e) Instrumentality.
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61. Zeeshan has a job that pays well, desires to make a contribution to the organization, and has an active
social life. His overpowering drive now is to become all that he is capable of becoming. At which level
of Maslow’s need hierarchy is Zeeshan?
(a) Self-actualization (b) Safety (c) Social
(d) Esteem (e) Physiological.
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62. To make individual employees perform to the best of their ability in any type of organization, a
manager must know what motivates his workers. It is not an easy task to increase employee motivation
because employees respond in different ways to their jobs and their organization practices. To
overcome these situations many theories have been developed and one among them is the Herzberg’s
two-factor theory. According to Herzberg’s Two-Factor Theory of Motivation, which of the following
can be classified as a motivator?
(a) Supervision (b) Job Security (c) Working Conditions
(d) Recognition of work (e) Socializing in work.
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63. According to Vroom-Yetton Model, if a manager obtains the necessary information from subordinates,
and then makes the decision himself/herself, then he would be using which of the following leadership
styles?
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(a) Autocratic I (b) Autocratic II (c) Consultative I
(d) Consultative II (e) Group Participation.
64. Motivational theories can be divided into two types namely, content theories and process theories.
Process theories are concerned with the mechanics of motivation and focus on the dynamics of
motivation and how the motivation takes place. Which of the following theories holds that a person’s
perception of achieving a prized reward or goal through effective performance will motivate the
individual?
(a) Mc Clelland’s Needs Theory of Motivation
(b) Maslow’s Hierarchy of Needs Theory
(c) Expectancy Theory of Motivation
(d) Alderfer’s ERG Theory
(e) Equity Theory.
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65. One of the most popular explanations of human motivations was developed by the Psychologist,
Abraham Maslow, and popularized during the early 1960’s. Maslow’s hierarchy of needs theory argues
that needs form a five-level hierarchy. Identify the need, which is at the bottom of hierarchy as per
Maslow’s theory.
(a) Security need (b) Social need (c) Physiological need
(d) Esteem need (e) Self-actualization need.
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66. Numerous theories have been developed by behavioral scientists about how management can motivate
employees. These theories assist managers in their understanding of why an individual chooses to work,
why he may continue to work for a firm for a considerable amount of time, and how to boost the morale
of a worker and motivate him to produce at his level or highest possible level. One of the theories is
Alderfer's ERG theory. Which of the following is not true about Alderfer's ERG theory?
(a) Alderfer proposed a condensed version of Maslow's Need Hierarchy theory with only three groups
of core needs.viz., existence, relatedness and growth
(b) The existence needs are related to Maslow’s physiological and safety needs
(c) The relatedness needs are the desire to establish and maintain interpersonal relationships
(d) The growth needs are the desires to be creative and to have opportunities for personal development
(e) ERG theory assumes a rigid hierarchy where a lower level need must be substantially gratified
before one can move on.
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67. Another view about the nature of people was presented by Douglas Mc Gregor in his book, “The
Human Side of Enterprise”. Mc Gregor identified two opposing perspectives 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. McGregor 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?
(a) Theory X managers view people as having an inherent dislike of work
(b) Theory X managers assume that people do not want to be directed
(c) Theory Y managers assume that the average person will accept, even seek, responsibility
(d) Theory Y managers view people as responsible and conscientious
(e) Theory Y managers assume that people are internally motivated to accomplish the goals and
objectives.
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68. The success or failure of managers depends on their leadership qualities. It is the manager’s
responsibility to achieve organizational goals, and he can do this only by helping others to find
solutions and overcome obstacles. There are various leadership theories and they go a long way in
assisting the managers to achieve their goals. One of the theories is the goal-setting theory. According
to the goal-setting theory, identify the statement, which is not true.
(a) People are more motivated if there are concrete targets or objectives
(b) Individuals must buy into the goals
(c) Set targets should be challenging
(d) Goals should be set by upper management members
(e) Goals should be specific and quantifiable.
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69. Apart from the tendency to judge subordinates, there are a number of other pitfalls managers must avoid
in order to make their formal and informal appraisal programs effective. When a manager evaluates an
employee highly on all aspects of his/her job performance even though, in reality, the employee excels
at only one aspect, the manager is guilty of
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(a) The halo effect (b) Stereotyping (c) Attribution error
(d) Selective perception (e) Rater bias.
70. According to the path-goal theory of leadership, the main function of a leader is to clarify and set goals
with subordinates, to help them to find the best path for achieving the goals, and to remove the obstacles
to their performance and need satisfaction. All of the following statements with respect to path-goal
theory are true except
(a) Directive leadership is appropriate if tasks already are well structured
(b) Directive leadership will create greater dissatisfaction if the task and the authority or rule system
are dissatisfying
(c) Supportive leadership is less important if the primary work group provides social support to its
members
(d) If the task or authority system is dissatisfying, supportive leadership is especially appropriate,
because it offers one positive source of gratification in an otherwise negative situation
(e) A directive style is more appropriate when subordinates' ability is low.
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71. Attempts to explain and understand leadership led to the formulation of various leadership theories.
There are four broad categories of leadership theories and they are trait theory, behavioral theory,
situational or contingency theory, and transformational theory. Hersey and Blanchard gave one of the
leadership theories named Situational theory of leadership. According to Hersey and Blanchard, when
followers are in the initial “readiness” stage, the leader's behavior should be
(a) High task and high relationship
(b) High task and low relationship
(c) Low task and high relationship
(d) Low task and low relationship
(e) High task and medium relationship.
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72. Leadership is defined as the art or process of influencing people so that they will strive willingly and
enthusiastically toward the achievement of group goals. A leader who tends to centralize authority,
dictate work methods, and make unilateral decisions is a(n) _____ leader.
(a) Democratic (b) Laissez-faire (c) Autocratic
(d) Democratic-consultative (e) Impoverished.
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73. The managerial grid, propounded by Robert Blake and Mouton is a well-developed approach to
defining leadership styles. They argue that managerial behavior is a function of two variables. i.e.,
concern for production and concern for people. They use managerial grid as a framework to help
managers learn what their leadership style is and to track their movement toward the ideal management
style. According to managerial grid, which of the following managerial styles is also known as
'organization-man-management'?
(a) Impoverished management
(b) Middle-of-the-road management
(c) Country club management
(d) Team management
(e) Authority-obedience.
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74. Fiedler's least preferred coworker (LPC) questionnaire purports to measure the leader's behavioral
orientation as either _____ or _____.
(a) Initiating consideration; initiating structure
(b) Employee-oriented; production-oriented
(c) Task-oriented; employee-oriented
(d) Delegating; participating
(e) Delegating; relegating.
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75. There are various leadership theories, which guide the managers and help them in achieving the desired
goals. The theory that states that it is a leader's job to assist followers in attaining their goals and to
provide the necessary direction and support is
(a) Fiedler's Contingency Model (b) Path-Goal Theory
(c) Hersey and Blanchard's Model (d) The Ohio State Studies
(e) The Managerial Grid.
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76. Fred E. Fiedler provided a starting point for situational leadership research. Fiedler and his associates at
the University of Illinois suggested a contingency theory of leadership which holds that people become
leaders not only because of the attributes of their personalities but also because of various situational
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factors and the interactions between leaders and managers. In this regard, situational leadership is a
contingency theory that focuses on
(a) The followers (b) The least-preferred coworker
(c) The leader's preferred style (d) The situation
(e) The culture of the organization.
77. Attempts to explain and understand leadership led to the formulation of various leadership theories. In
this regard, which of the following leadership theories assumes that good leaders are born?
(a) Trait Theory (b) Situational Theory (c) Behavioral Theory
(d) Contingency Theory (e) Path-Goal Theory.
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78. According to the Ohio State studies, a leader who is high in _____ is characterized by behavior that
attempts to organize work, work relationships, and goals.
(a) Enthusiasm (b) Initiating structure (c) Consideration
(d) Production-orientation (e) Self-confidence.
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79. Which of the following types of leaders are perceived as agents of radical change rather than as
caretakers of the status quo?
(a) Charismatic (b) Transactional (c) Autocratic
(d) Democratic (e) Visionary.
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80. When a junior employee tells a manager what he thinks of the manager has just asked him to do, and be
sure that he understood the same correctly, the junior employee is using
(a) Selective perception (b) Feedback (c) Semantics
(d) Grapevine (e) Downward communication.
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81. The communication process is made up of various components. The _____ is the actual physical
product from the source encoding.
(a) Feedback (b) Filter (c) Message (d) Channel
(e) Understanding.
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82. Organizations practice control in a number of different areas and at different levels. Managers need to
consider the types of control that they wish to use. With regard to the time element of controls, which of
the following controls monitors activities while they are being carried out?
(a) Feedback (b) Feedforward (c) Precontrol (d) Concurrent
(e) Preliminary.
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83 Control is an essential part of every organization; it is exercised to ensure that what is done is what is
intended. The control function plays an important role, right from the top level to the bottom level of an
organization. Although control systems must be tailored to specific situations, such systems generally
follow the same basic process. Identify the sequence of different steps in controlling.
I. Measurement of performance.
II. Comparison of actual and standard.
III. Analysis of causes of deviation.
IV. Actual performance.
V. Corrective action plan.
(a) (III), (IV), (V), (I) and (II) above (b) (II), (III), (IV), (V) and (I) above
(c) (I), (II), (IV), (III) and (V) above (d) (IV), (I), (II), (III) and (V) above
(e) (V), (IV), (III), (II) and (I) above.
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84. Ratio analysis, the process of determining and evaluating financial ratios is a major tool in assessing the
significance of various financial data. There are various ratios, which are used in the analysis of
financial data. One among them is the debt service coverage ratio. Which of the following is indicated
by the debt service coverage ratio?
(a) Excess of current assets over current liabilities
(b) Number of times the value of fixed assets covers the amount of loan
(c) Number of times the company’s earnings cover the payment of interest and repayment of principal
of long debt
(d) Effective utilization of assets
(e) Both (b) and (d) above.
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85. Budget is a formal quantitative statement of resources allocated for planned activities over stipulated
periods of time. In this regard, which of the following types of budgets is commonly expressed in
physical units and includes types and capacities of machines and availability of raw materials?
(a) Sales budget (b) Cash budget (c) Cost budget
(d) Accounting budget (e) Production budget.
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86. Which of the following is not true about Management Information System (MIS)?
(a) It can be defined as an integrated, user-machine system for providing information to support
managerial, operational and decision-making functions in an organization
(b) Many of the terms used in MIS are imprecise and controversial
(c) It incorporates a limited variety of knowledge areas
(d) MIS problems are not easy to define or structure
(e) The body of knowledge in MIS is relatively recent and limited.
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87. Controlling is the management function that is aimed at regulating organizational activities so that
actual performance conforms to expected organizational standards and goals. In this regard, which of
the following types is a self-regulating control system, which once put into operation can automatically
monitor the situation?
(a) Strategic control system (b) Tactical control system
(c) Operational control system (d) Cybernetic control system
(e) Noncybernetic control system.
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88. If you were looking to investigate how productive your assets were in meeting short-term obligations,
you would be most likely to use which of the following ratios?
(a) Current ratio (b) Inventory turnover (c) Debt ratio
(d) Return on investment (e) Net Profit Margin.
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89. 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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90. Rohan, 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 theory
(d) Expectancy theory (e) ERG theory.
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91. Which control system helps manager to regulate and supply inputs to obtain maximum production
without any interruption?
(a) Budgetary control (b) Financial control (c) Quality control
(d) Inventory control (e) Strategic control.
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92. Ketan has just been asked to type up a report in two days using a software program he has never seen
before. Furthermore, fifteen graphs, bar charts, and pie charts are an integral part of the report. He will
have to use a color printer in a different department because their department does not have one. Ketan
wonders if he will be able to get his project accomplished on time and in the format wanted by his
manager. This is an example of which variable in Vroom's expectancy theory?
(a) Effort-performance linkage (b) Performance-reward linkage
(c) Effort-reward linkage (d) Attractiveness (e) None of the above.
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93. Operations management (OM) may be defined as the total set of managerial activities employed by the
organization to transform resource inputs into product outputs. Operations management is the
management of direct resources (like manpower, technology, capital, equipment and information) that
are required to produce the goods and services provided by an organization. Which of the following
statements is true regarding Operations Management?
(a) Operations managers are not found in the service sector
(b) Operations management concerns 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
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(e) The techniques of operations management are not applicable to other disciplines such as finance,
marketing and human resource management.
94. The history of operations research shows that more attention has been given to inventory control rather
than any other practical area of operations and there are different types of inventory controls like
Economic Order Quantity, Kanban, Just In Time etc. Which of the following would generally not be
associated with a successful JIT program?
(a) Well-organized receiving and handling of materials purchased from suppliers
(b) Strong management commitment
(c) Suppliers located in diverse and distant locations
(d) High quality of materials purchased from suppliers
(e) Dependable and long-lasting relationships with suppliers and customers.
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95. 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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96. In order to discharge managerial functions effectively, managers at all levels require vital information
with speed, brevity precision and economy. In this regard, the first necessary step to effectively operate
a Management Information System (MIS) is
(a) Summarizing data
(b) Analyzing data
(c) Determining information needs
(d) Gathering appropriate information
(e) Generating reports from gathered data.
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97. Quality of Work Life (QWL) aims at integrating the socio-psychological needs of people in the
organization, the unique requirements of a particular technology, the structure and processes of the
organization, and the existing socio-cultural milieu. It is concerned with the impact of work on people
as well as on organization effectiveness. All of the following practices help improve QWL except one.
Identify this practice.
(a) Flextime (b) Job enrichment
(c) Job enlargement (d) Creation of autonomous work groups
(e) Participation in decision-making.
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98. Which of the following orientations is an approach to international management whereby executives
assume those practices that work in the headquarters?
(a) Ethnocentric (b) Polycentric (c) Regiocentric
(d) Geocentric (e) None of the above.
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99. If an employee of a multinational company indicates that she believes that since she is a citizen of the
host country, she would be best suited to manage the company; her attitude toward the operation of the
organizational would most likely be classified as
(a) Ethnocentric attitude (b) Polycentric attitude (c) Regiocentric attitude
(d) Gendercentric attitude (e) Geocentric attitude.
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100. Derick computers has an organizational model that consists of the subsidiaries in each country in which
it is does business with the ultimate control exercised by Derick computers. This describes the
organizational model as
(a) Global (b) International (c) Multinational
(d) Transnational (e) National.