Introduction to Management-I (MB111): July 2006

Question Paper Introduction to Management-I (MB111): July 2006

• Answer all questions.
• Marks are indicated against each question.
1.
Management by Objectives (MBO) is a management process that is popular in many organizations. It is the joint setting of goals and objectives by superiors and subordinates. If you were responsible for setting up an MBO program, which of the following steps would you need to complete before the others?
(a) Establish specific goals for various departments, subunits and individuals
(b) Formulate action plans
(c) Clarify organizational roles
(d) Implement and maintain self-control
(e) Do performance appraisal.
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2.
Which of the following is a function of how much decision-making authority is pushed down to lower levels in the organization?
(a) Departmentalization (b) Decentralization (c) Span of control
(d) Power (e) Authority.
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3.
The fact that managers make consistent, value-maximizing choices within specified constraints is known as
(a) Implementation of the alternative (b) Decision implementation
(c) Rational decision making (d) Irrational decision making
(e) Environmental scanning.
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4.
Organizations that adopt a matrix structure generally pass through some structural stages. Which of these structural stages is a traditional structure and follows the unity of command principle?
(a) Functional (stage 1) (b) Temporary overlay (stage 2)
(c) Permanent overlay (stage 3) (d) Mature matrix (stage 4)
(e) Hybrid matrix (stage 5).
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5.
Management is best understood as
I. A process.
II. Reaching organizational goals.
III. Utilizing people and other resources.
(a) Only (I) above (b) Only (III) above
(c) Both (I) and (II) above (d) Both (I) and (III) above
(e) All (I), (II) and (III) above.
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6.
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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7.
A production manager of a manufacturing organization is trying to determine how to organise the production department, so that it can produce more units per day and achieve the targets in a specified time. Identify the managerial function.
(a) Organising (b) Leading (c) Controlling
(d) Marketing (e) Auditing.
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8.
Which of the following is a ‘common organizational requirement’ with respect to Porter’s differentiation strategy?
(a) Strong coordination among functions in R&D, product development and marketing
(b) Strong marketing abilities
(c) Creative flair
(d) Corporate reputation for quality and technological leadership
(e) Cooperation from channels.
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9.
Which of the following is generally not an important component of a plan?
(a) The evaluation of relevant information
(b) The assessment of probable future developments
(c) A statement of a recommended course of action
(d) A statement of manager intuition
(e) Strategy based on rationality.
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10.
Which stage of the decision-making process is either nonexistent or given little attention in programmed decision making?
(a) Analysis of alternatives (b) Development of the alternatives
(c) Identification of decision criteria (d) Identification of problem
(e) Implementation of the solution.
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11.
Functional structure is a type of departmentation in which positions are grouped according to their main functional area. Which of the following is a disadvantage of functional departmentation?
(a) Specialization (b) Managerial vacuum
(c) Power and prestige (d) Coordination
(e) Stability.
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12.
Span of control refers to the number of subordinates a superior can supervise efficiently and effectively. 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 (I), (II) and (III) above.
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13.
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 this information six weeks before a class is to begin. He also has to think what he should offer in his next series of classes. 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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14.
Which of the following refers to the involvement of employees in civic activities?
(a) Volunteerism (b) Fund-raising (c) Recycling
(d) Valuing diversity (e) Quality of work life.
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15.
Decentralization applies to the systematic delegation of authority in an organization-wide context. In which of the following cases would a company be least likely to adopt a decentralized structure?
(a) The product line is homogeneous
(b) The raw materials are distantly located
(c) Quick decisions have to be taken
(d) Creativity is desirable
(e) Comparison of performance of different organizational units is needed.
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16.
The behavioral approach began with
(a) The Hawthorne studies (b) The mental revolution
(c) The industrial revolution (d) Motion studies
(e) The Bethlehem Steel studies.
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17.
Delegate means to grant or confer on subordinates certain tasks and duties along with sufficient authority, to accomplish these. Which of the following points is most likely to increase the effectiveness of delegation?
(a) Detail how the required tasks are to be completed, for the subordinate
(b) Predetermine the desired results and performance standards for the delegated task
(c) Explain the relevance of delegated tasks to larger projects or to department or organization goals
(d) Maintain the authority necessary to accomplish the main tasks
(e) Retain the decision-making power for the delegated tasks.
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18.
Which of the following is the strength of the functional structure?
(a) It focuses on results
(b) It gains advantages due to work specialization
(c) Employees have more than one boss
(d) It is based solely on teams
(e) It has clear focus on each product.
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19.
The success of an organization greatly depends on the decisions that managers make. Due to this reason, managerial approaches to decision-making have been the subject of considerable curiosity and research. There are different types of decisions that are taken. The concepts of "minimax" and "maximini" are used in which of the following decision-making techniques?
(a) Utility Theory (b) Game Theory
(c) Preference Theory (d) Simulation
(e) Ratio Analysis.
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20.
The business level strategies described by Michael E. Porter are also referred to as
(a) Generic strategies (b) Functional strategies
(c) Operational strategies (d) Corporate strategies
(e) Tactical strategies.
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21.
Open systems can accomplish their tasks and meet their objectives through different courses of action. Open systems do not need a single ‘best’ method to achieve their objectives and accomplish their goals. Which of the following terms implies this concept of reaching the same result by different means?
(a) Differentiation (b) Equifinality
(c) Dynamic Homeostasis (d) Cost Leadership
(e) Entropy.
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22.
Problems are encountered at all levels in an organization, and managers at various levels have to solve them or manage them in the best possible way. Which of the following is a series of interrelated sequential steps that can be used to respond to a well-structured problem?
(a) Rule (b) Policy (c) Budget
(d) Procedure (e) Norm.
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23.
The success of an organization greatly depends on the decisions that managers make. Decision-making is the process by which a course of action is selected so as to deal with a specific problem. It is a systematic process and involves a series of steps. Feedback is usually used in which of the following stages of the decision-making process?
(a) Problem identification stage
(b) Resources and constraints identification stage
(c) Alternative evaluation stage
(d) Monitoring stage
(e) Implementation stage.
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24.
The concept of social audit proposed in the 1950s by Howard R. Bowen is technique for
(a) Measuring the social infrastructure within an organisation
(b) Measuring the social impact of an organisation in relation to its stakeholders
(c) Measuring the level of success or failure of an innovation
(d) Showing a total picture of how a business will operate
(e) Independent appraisal of an organization’s management by an outside firm.
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25.
Using the BCG matrix requires considering which of the following factors?
(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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26.
The principle, where individuals in an organization work in co-ordination and contribute to the achievement of organizational goals, is called
(a) Unity of direction (b) Unity of command (c) Hierarchy of authority
(d) Authority on Par (e) Downward delegation.
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27.
Jim's work team takes care of handling supplies and parts for the entire department. This team maintains a strong supporting focus on providing quality customer care. Which of the following is most likely to be the type of decision the members of Jim's team make?
(a) Operational (b) Strategic (c) Nonprogrammed
(d) Tactical (e) Rational.
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28.
Plans can be categorized on the basis of their frequency of use. Based on the extent of use, they can be of two types: single-use plans and standing plans. Which of the following statements is/are true with respect to standing plans?
I. Standing plans are developed for activities that do not occur 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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29.
The general type of managerial role identified by Mintzberg that includes the specific roles of entrepreneur, disturbance handler, resource allocator, and negotiator, is
(a) Decisional (b) Interpersonal (c) Informational
(d) Administrative (e) Organizational.
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30.
From the viewpoint of line personnel, major reason/s for line-staff conflict is/are that staff personnel
I. Encroach line authority.
II. Dilute the authority of line managers.
III. Take credit for success.
IV. Lack a first-hand experience of operations.
(a) Only (I) above (b) Only (IV) above
(c) Both (I) and (II) above (d) Both (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
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31.
It is a normal practice to categorize management into three basic levels: (1) top management, (2) middle management and (3) supervisory or first-level management. The managers at these three levels require different kinds of skills to perform the functions associated with their jobs. The major difference in skill requirements between middle and top managers is that
(a) Top managers must generally be more skilled than middle managers in every respect
(b) Top managers require better interpersonal skills but less conceptual skills than middle managers
(c) Top managers generally require better technical and interpersonal skills than middle managers
(d) Top managers generally require higher level conceptual skills but less technical skills than middle managers
(e) Middle managers require better technical and conceptual skills than top managers.
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32.
After all factors have been determined, weights have been assigned, and alternatives have been identified, the next step in decision making is to
(a) Identify the problem (b) Identify the decision criteria
(c) Analyze the alternatives (d) Implement the alternative
(e) Obtain the needed resources.
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33.
In recent years, research has proved that culture has a tremendous impact on management practices. Which of the following is not a characteristic of Organizational Culture?
(a) It may vary in strength (b) It is indistinct in nature
(c) It is based on certain norms (d) It promotes dominant and stable values
(e) It shapes philosophy and rules.
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34.
People avoid planning for several reasons. Which of the following is/are organizational problems/reasons for avoiding planning?
I. Faulty reward schemes.
II. Experience.
III. The ‘get stuck in’ culture.
IV. Resistance to change.
(a) Only (I) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
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35.
Which of the following is 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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36.
There are three major forms of divisional structure: product division, geographic division and customer division. Geographic Divisions are divisions designed to serve different geographic areas. Which of the following statements is false regarding Geographic Division or Departmentation?
(a) It allows a manager to pay special attention to the needs and problems of the local markets
(b) It provides facilities to local customers
(c) It helps managers get extensive knowledge of specialized activities
(d) Product function can be organized on the basis of territory by establishing plants in a particular region
(e) It requires more persons with managerial capabilities.
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37.
In order to understand the role of management, in the late 1960s, Henry Mintzberg devised a new approach – the managerial roles approach. According to him, which of the following managerial roles involves transmitting selected information to outsiders?
(a) Figure head (b) Leader (c) Liaison
(d) Spokesperson (e) Entrepreneur.
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38.
Authority is vital for a manager. Exercising authority over the roles of other departments, related to specific tasks is known as
(a) Line authority (b) Formal authority
(c) Functional authority (d) Staff authority
(e) Informal authority.
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39.
Which of the following is not one of the philosophies of the management science approach?
(a) Managers can improve the organization by using scientific methods
(b) Mathematical techniques can solve organizational problems
(c) Models should be used to represent the system
(d) Individual work is better than teamwork
(e) Observation of the system must take place.
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40.
Production planning is the decision-making area that determines when and where and in what quantity a manufacturer is to produce goods. In production planning areas of many organizations, which of the following methods is used for comparing the actual and planned performances?
(a) Unity of command (b) Unity of direction
(c) Scalar chain (d) Gantt chart
(e) Time and motion study.
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41.
Which of the following cannot be considered a limitation of decentralization?
(a) It makes having a uniform policy more difficult
(b) It may result in loss of some control by upper level managers
(c) It hampers product diversification
(d) It involves considerable expenses for training managers
(e) It increases complexity of coordination.
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42.
Once the best available alternative has been selected, it must be effectively implemented to achieve the objective for which it was selected. It is very much possible for a good decision to become ineffective due to poor implementation. Which of the following is important in effectively implementing the chosen alternative in the decision-making process?
(a) Double-checking your analysis for potential errors
(b) Ignoring criticism concerning your chosen alternative
(c) Getting upper-management support
(d) Allowing those impacted by the outcome to participate in the process
(e) Getting lower-management support.
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43.
Strategic management is a process for achieving strategic goals, given available environmental and internal conditions. It falls in the purview of top management. Which of the following statements is correct regarding strategic management?
(a) It seeks to maximise profit
(b) It identifies areas where the organisation can build a competitive advantage
(c) It is short-term in nature
(d) It has little relevance to small organisations
(e) It is irrelevant to non-profit organisations.
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44.
Armugam works in an organization where a large amount of collaboration occurs and decision-making authority is decentralized. There are few rules, and duties are adaptable. This is an example of which of the following?
(a) Strategic organization (b) Mechanistic organization
(c) Organic organization (d) Bureaucratic organization
(e) Matrix organization.
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45.
Planning is a prerequisite not only for achieving success but also for surviving in a complex and competitive world. Planning gives direction, reduces the impact of change, minimizes waste and redundancy, and
(a) Sets the standards used in controlling
(b) Eliminates departments that are found to be not needed within the plan
(c) Sets the basis used for promotion of individuals within the organization
(d) Establishes the workloads for each of the departments
(e) Determines which manager will head which department.
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46.
Organizing is a continuous process of determining
I. Which tasks are to be performed?
II. How individuals can be motivated to perform tasks?
III. How tasks can be grouped into jobs and various units?
IV. What are the authority and reporting relationships?
(a) Both (I) and (III) above (b) Both (I) and (IV) above
(c) Both (III) and (IV) above (d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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47.
Andrew Ure and Charles Dupin were prominent contributors to preclassical management thought. Which of the following did they advocate/propose?
(a) Division of labor
(b) Legislative reforms to improve working conditions of labor
(c) Profit-sharing plan
(d) Management education
(e) Emphasis on the importance of business skills for running a business.
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48.
Which of the following are characteristics of Weber’s Ideal bureaucracy?
I. Working for maximum output.
II. Specialization of labor.
III. Obtaining harmony in group action.
IV. Well-defined hierarchy.
V. Career advancement based on merit.
(a) Both (I) and (III) above (b) Both (II) and (V) above
(c) Both (III) and (V) above (d) (I), (III) and (IV) above
(e) (II), (IV) and (V) above.
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49.
The strengths and weaknesses of each alternative become obvious in which step of the decision making-process?
(a) Identifying the problem (b) Identifying the decision criteria
(c) Analyzing the alternatives (d) Implementing the alternative
(e) Obtaining the needed resources.
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50.
Strategy “Guru” Michael E. Porter developed the “five competitive forces” model in order to analyse the nature and intensity of competition in a given industry. The profit potential available to business operating in a particular industry is directly affected by the collective strength of these forces. Which of the following is not one of Porter’s five competitive forces?
(a) Threat of substitutes (b) Threat of technological advances
(c) Threat of new entrants (d) Bargaining power of suppliers
(e) Bargaining power of customers.
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51.
In a business situation things are so complex, that without proper plans this complexity cannot be handled. Planning is a prerequisite not only for achieving success but also for surviving in a complex and competitive world. Which of the following is not a characteristic 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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52.
The major disadvantage of the divisional structure is
(a) Diseconomies of scale
(b) Requires people with general managerial capabilities
(c) Managerial vacuum
(d) Duplication of activities and resources
(e) It is slow in responding to changes.
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53.
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. There are both advantages and disadvantages of group decision-making. Which of the following would generally not be considered an advantage of group decision-making?
(a) Groups generally come up with more and better decision alternatives than an individual
(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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54.
Division of labor tends to result in
(a) Human motivation (b) Revolt from workers
(c) Specialized work (d) Decreased work skill
(e) Piece-rate incentive system.
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55.
Social responsiveness refers to the development of organizational decision processes that enable managers to anticipate, respond to and manage the areas of social responsibility. 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) Biased employment opportunity
(d) Questionable quality products to customers
(e) Ignoring environmental pollution.
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56.
The repetitive process by which an organization receives inputs from its environment, processes them and produces the output required by a system is called
(a) Negative entropy (b) Dynamic homeostasis
(c) Feedback (d) Equifinality (e) Cycle of events.
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57.
Power is a much broader concept than authority, and it is the ability of individuals or groups to induce or influence the beliefs or actions of other persons and groups. Power can be derived from many sources. The manager’s source of power that comes directly from his formal position within the organization is called
(a) Advisory (b) Expert (c) Reward
(d) Coercive (e) Legitimate.
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58.
Carrying out strategic plans involves synchronization of major internal elements. Which of the following is not one of these elements?
(a) Technology (b) Human resources (c) Structure
(d) Reward system (e) Strategic control system.
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59.
Which of the following is/are mechanisms for ethical management?
I. Code of ethics.
II. Ethics hot line.
III. Adhering to golden rule.
IV. Allowing room for participation.
(a) Only (I) above (b) Both (I) and (II) above
(c) Both (III) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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60.
Which of the following statements is not true of staff authority?
(a) A staff manager is a generalist
(b) A staff manager assists others
(c) A staff manager serves authority
(d) A staff manager makes plans
(e) A staff manager solves special problems.
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61.
In a business situation things are so complex, that without proper plans this complexity cannot be handled. Planning basically involves defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans
(a) As to which shift will perform what work functions
(b) To establish the quality and quantity of work to be accomplished
(c) To determine which manager will head which department
(d) To integrate and coordinate organizational work
(e) To influence and motivate human resources toward achieving those goals.
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62.
A plan that comprises general guidelines, does not lock managers into a specific course of action and does not have defined objectives is referred to as
(a) Operational plan (b) Tactical plan (c) Strategic plan
(d) Directional plan (e) Short-term plan.
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63.
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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64.
Programmes and budgets are examples of
(a) Single-use plans (b) Standing rules (c) Procedures
(d) Gantt chart components (e) Critical paths.
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65.
Just as organizations define goals at different levels, they also establish plans at different levels. On the basis of the organizational level, plans can be strategic, tactical and operational. 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 details 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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66.
With respect to SWOT analysis of the competitive environment in which a company operates, which of the following cannot be a potential ‘threat’ for a company?
(a) Costly new regulatory requirements
(b) Loss of sales to substitute products
(c) Obsolete facilities
(d) Technological changes that undermine demand for a product
(e) Growing bargaining power of customers.
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67.
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. There are different group decision-making techniques. Two such techniques are Nominal Group technique and Delphi technique. The difference between the Nominal Group technique and the Delphi technique is
(a) One is a verbal approach, the other is written
(b) One is a short term group, the other is long term
(c) One is visual, the other is verbal
(d) One is face-to-face, the other keeps group members anonymous
(e) One uses experts, the other uses the layman.
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68.
Managers making ethical decisions may belong to any of the three levels of moral development. Which of the following stages describes the pre-conventional level of moral development??
(a) Following rules only when it is in one’s immediate interest
(b) Living up to what is expected by people who are close to oneself
(c) Maintaining conventional order by fulfilling obligations to which one has agreed
(d) Valuing rights of others, and upholding non-relative values and rights, regardless of the majority's opinion
(e) Following self-chosen ethical principles even if they violate the law.
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69.
Planning is the first function of management and can be defined as the process by which managers set missions and objectives, assess the future and develop courses of action to accomplish these objectives. However, there is no shortage of myths and misconceptions about planning. Which of the following statements is a common misconception about planning?
(a) The end result of planning is only one of its purposes
(b) Planning cannot eliminate change
(c) Planning that proves inaccurate is a waste of management’s time
(d) The process of planning can, in itself, be valuable even if the results are inaccurate
(e) Planning is only a constraint if management stops planning after doing it once.
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70.
A method under which a manager is given specific objectives to achieve and is evaluated according to the accomplishment of these objectives is called
(a) Means-ends analysis (b) Operational objectives
(c) Individual objectives (d) Management by objectives
(e) Management by exception.
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71.
Group decisions tend to be
(a) Made more quickly (b) More accurate (c) Less creative
(d) More efficient (e) In the interest of decision-makers.
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72.
According to the Scientific Management School of Thought, which of the following is defined as the systematic, objective and critical examination of all the factors governing the operational efficiency of a specified activity to bring about improvement?
(a) Work Methods Study (b) Micromotion Study
(c) Time Study (d) Motion Study (e) Performance Study.
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73.
Which of the following is not a strength of a ‘management by objective’ (MBO) program?
(a) It aids planning by emphasizing collaborative efforts between managers and subordinates
(b) It clarifies management’s expectations from subordinates
(c) It aids in scanning the business environment
(d) It improves the flow of information and communication between managers and subordinates
(e) It improves the performance review and evaluation process by providing feedback.
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74.
Many factors influence the design of effective organization structures. Which of the following is not one of the structural methods for promoting innovation, that help in implementing strategies and organizational goals?
(a) Roles (b) Efficiency (c) Reservations
(d) Differentiation (e) Transfer process.
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75.
Which of the following involves major changes in organizational structure and changes in some major components of the organization?
(a) Restructuring (b) Span of control (c) Transfer
(d) Planning (e) Organizing.
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76.
The success of an organization greatly depends on the decisions that managers make. Due to this reason, managerial approaches to decision-making have been the subject of considerable curiosity and research. There are different types of decisions that are taken. Which of the following is an example of a Programmed Decision?
(a) Decision involving strategy
(b) Decision involving mergers and acquisitions
(c) Decision involving organization design
(d) Decision involving what to do about a failing product line
(e) Decision involving the manager of a retail shop instituting a policy, which states “Exchanges will be permitted on all purchases within 15 days.”
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77.
Which of the following is/are features of competitive advantage?
I. It is strongest when it is extremely difficult for or expensive for competitors to copy.
II. It is possible for a firm to build a competitive advantage over all other competitors.
III. It should ultimately create increased value for customers.
IV. It is generated on the basis of organizational competencies.
(a) Only (I) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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78.
Which of the following is/are steps that can help overcome problems associated with the MBO process?
I. Motivational assessment.
II. Group action.
III. Appraisal of appraisers.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
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79.
Reengineering involves changing the culture of an organization into a team culture. When adopting a team culture, a company must consider several organizational issues. Which of the following is not true with regard to these issues?
(a) Team members should be clear about their roles and responsibilities
(b) Team members should be responsible for achieving results
(c) Team members should possess enough knowledge and skills
(d) Authority and power should be retained by the team leader
(e) The team should share the rewards.
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80.
Departmentation by ‘time’ is one of the oldest forms of departmentation, generally used at lower levels of the organization. Which of the following cannot be considered a disadvantage of departmentation by ‘time?’
(a) Lack of supervision in the night shifts
(b) Employees may find it difficult to switch from one shift to another
(c) Coordination and communication becomes a problem with several shifts operating
(d) Employees may postpone work in order to get paid overtime
(e) Workers may concentrate on the total system rather than concentrating on narrow and specified technical aspects.
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81.
Which of the following is a limitation of the sociotechnical systems approach to management?
(a) It ignores planning, organizing and controlling
(b) Emphasis only on blue-collar and lower level office work
(c) Too broad a field for study of management
(d) Studies experiences through cases
(e) There is no one best way to do things.
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82.
Which of the following structures combines the advantages of the functional specialization with the focus and accountability of product departmentalization?
(a) Team-based structure (b) Boundaryless organization
(c) Matrix structure (d) Network structure
(e) Hybrid structure.
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In manufacturing organizations, where production is the result of different processes or types of equipment, the activities are grouped on the basis of such processes or equipment. 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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84.
Identify from the following the main components of an informal organization.
I. Unofficial, power and politics.
II. Official, authority and responsibility.
III. Position, delegated by management.
IV. Person, norms, sanctions.
(a) Both (I) and (II) above (b) Both (I) and (IV) above
(c) Both (II) and (III) above (d) Both (II) and (IV) above
(e) Both (III) and (IV) above.
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85.
Which of the following statements is/are true about business level strategies for organizations involved in multiple businesses?
I. The focus is on determining the best ways of operating a business.
II. They attempt to find out means to achieve a competitive advantage.
III. They are developed by the top management.
IV. They respond appropriately to the changing environment.
(a) Only (I) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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86.
Henri Fayol, a French industrialist and a mining engineer, was one of the major contributors to the classical approach of management. As per the classical ideas of management thought, Fayol stressed the need of
(a) Technical activities (b) Commercial activities
(c) Financial activities (d) Accounting activities
(e) Managerial activities.
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87.
Every organization structure, even a poor one, can be charted. 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) It 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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88.
Which of the following skills are important at all levels in the organization?
(a) Conceptual (b) Design (c) Human
(d) Technical (e) Administrative.
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89.
Despite many advantages of planning, there may be some obstacles and limitations in this process, since nothing is perfect on this earth, as a general rule of law. Which of the following would not be considered a potential advantage of planning?
(a) It helps mangers to be future oriented
(b) It enhances decision coordination
(c) It increases the amount of time available for other managerial functions
(d) It emphasizes organizational objectives
(e) It helps in offsetting uncertainty and risk.
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90.
Which strategic business units (SBU) mapped on the BCG matrix, generate considerable income and require investment of more funds for future growth?
(a) Question marks (b) Bulls (c) Dogs
(d) Cash cows (e) Stars.
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91.
Conditions of uncertainty exist when future environment is unpredictable and everything is in a state of flux. The decision-maker is not aware of all alternatives, the risks associated with each, or the consequences of each alternative, or their probabilities. Which approach to decision-making under conditions of uncertainty believes that individual attitudes toward risk vary with events, people and positions?
(a) Risk analysis (b) Risk communication (c) Decision trees
(d) Utility theory (e) Game theory.
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92.
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) Break-even analysis (c) Intuition
(d) Bounded rationality (e) Garbage-can.
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93.
Delegation includes the three stages of briefing, monitoring progress, and evaluation and feedback. Which of the following is included in the ‘monitoring progress’ stage?
(a) Discuss the areas of the task that are sensitive to error or risk
(b) Explain the desired outcome
(c) Indicate the need for progress reports and intermediate deadlines
(d) Allow the person to proceed with the task without interference
(e) Make sure everyone learns form the experience.
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94.
Complex interactions between the manager’s stage of moral development and the various moderating variables determine whether he will act in an ethical or unethical manner. Moderating variables include individual characteristics, structural design of the organization, the organizational culture and the intensity of the ethical issue. The strength of a person's convictions refers to which of the following individual characteristics?
(a) Value (b) Ego Strength (c) Attitude
(d) Perception (e) Locus of Control.
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95.
Which of the following types of departmentation was used in classifying tribes, clans, and armies?
(a) Departmentation by time (b) Departmentation by simple numbers
(c) Departmentation by process (d) Departmentation by geographical area
(e) Departmentation by function.
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96.
The phenomenon in which an employee reports a real or perceived wrongdoing under the control of his or her employer, to those who may be able to take remedial action, is known as
(a) Shirking (b) Blackmailing (c) Soldiering
(d) Whistle-blowing (e) Forming.
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97.
Which of the following is/are factor(s) which force an organization to reorganize?
I. Merger or acquisition. II. Government policies.
III. Forays into new markets. IV. Labor union demands.
(a) Only (I) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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98.
Divisional structure is a type of departmentation in which positions are grouped according to similarity of products, services or markets. There are three major forms of divisional structure: product division, geographic division and customer division. Which of the following statements is not true about Customer Division or Departmentation?
(a) It is set up to service particular types of clients or customers
(b) It can address the special and widely varied needs of customers for clearly defined services
(c) It is accompanied by the benefits of specialization
(d) Coordination between sales and other functions becomes easier
(e) Facilities and manpower, specialized for certain customer groups may be under -employed.
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99.
A system comprises a set of interactive sub-systems. Which sub-system consists of jobs that require the interaction of personnel with the general environment?
(a) Technical (b) Boundary spanning (c) Managerial
(d) Feedback (e) Public relations.
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100.
SWOT analysis helps companies identify their strengths and weaknesses and, opportunities and threats in the environment it operates. Which of the following cannot be considered a potential ‘resource strength’ for a company?
(a) Cost advantages
(b) Ability to take advantage of economies of scale
(c) Strong brand name
(d) Integrating forward or backward
(e) Sophisticated use of e-commerce technologies and processes.
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