Introduction to Management - I (MB111) : January 2007

Question Paper Introduction to Management - I (MB111) : January 2007
• Answer all questions.
• Each question carries one mark.
1.
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.

2.
Which of the following are weaknesses of the Delphi method of group decision-making?
I. It is difficult to carry out the process with a large group.
II. It requires a skilled group facilitator.
III. There is too much emphasis on obtaining consensus.
IV. It consumes considerable amount of time.
V. It does not produce accurate results.
(a)
Both (I) and (IV) above
(b)
Both (II) and (III) above
(c)
(I), (II) and (V) above
(d)
(III), (IV) and (V) above
(
e)
All (I), (II), (III), (IV) and (V) above.

3.
Companies can achieve a sustainable competitive advantage with
I. Non-physical assets, such as customer database information.
II. Online ordering systems and other continual product and process innovations.
III. Employee knowledge sharing.
(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.

4.
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 maximize 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.

5.
Which of the following statements is/are not true about managerial functions?
I. Time spent by top-level managers in planning and organizing is much more than that spent by middle level and first level managers.
II. Leading is substantially more important for higher-level managers than first level supervisors.
III. Time spent on controlling is similar at all levels.
(a)
Only (I) above
(b)
Only (II) above
(c)
Only (III) above
(d)
Both (I) and (III) above
(e)
Both (II) and (III) above.

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6.
Several models are used in managerial decision-making. The garbage-can model is effective in which of the following situations?
I. When managers have no specific goal preferences.
II. When the means of achieving goals are unclear.
III. When there are frequent changes in the participants involved in decision-making.
IV. When the degree to which decision-makers can determine optimal decisions is limited by the individuals' capacity and intelligence.
(a)
Only (IV) above
(b)
Both (I) and (II) above
(c)
Both (III) and (IV) above
(d)
(I), (II) and (III) above
(e)
All (I), (II), (III) and (IV) above.

7.
Which of the following is/are integral part(s) of an effective organizing effort?
I. Rationale for the orderly use of management system resources.
II. Responsibility.
III. Authority.
IV. Delegation.
(a)
Only (II) above
(b)
Both (I) and (II) above
(c)
Both (III) and (IV) above
(d)
(I), (II) and (III) above
(e)
All (I), (II), (III) and (IV) above.

8.
Delegation includes the three stages - 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.

9.
Line-staff conflict is the major source of friction in organizations. Which of the following best describes line-staff conflict?
(a)
Conflict between two or more individuals with perceived differences in values, goals, or needs
(b)
Conflict among an individual's self values, goals, or needs
(c)
Intergroup conflict arising from perceived differences between those directly involved in producing or selling products and those that support functions such as information systems and human resources
(d)
Conflict on account of work delegated without conferring respobsibility
(e)
Conflict due to resistance to change.

10.
With respect to factors that affect reorganization, when a single change triggers off a sequence of related changes, it is called the
(a)
Halo effect
(b)
Hawthorne effect
(c)
Domino effect
(d)
Sensitivity effect
(e)
Environmental effect.

11.
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.

12.
An organization that groups activities according to women's footwear, men's footwear, apparel, accessories, and leggings would use ___ departmentalization.
(a)
Functional
(b)
Product
(c)
Customer
(d)
Geographic
(e)
Matrix.

13.
Under which of Porter's five sections for analyzing a firm's task environment would 'an absolute cost advantage' most likely appear as a decision variable?
(a)
The nature of rivalry
(b)
New entrants
(c)
Substitutes
(d)
Bargaining power of buyers
(e)
Bargaining power of suppliers.

14.
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.

15.
An open system model is based on organization-environment interaction. A business takes the inputs, processes and transforms them and gives the output. There is a set of interactive subsystems in such a system. Identify from the following, the interactive subsystems.
(a)
Technicaland managerial
(b)
Managerial and accounting
(c)
Accounting, non-technical and organizational
(d)
Technical, managerial and boundary spanning
(e)
Boundary spanning, accounting and organizational.

16.
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.

17.
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.

18.
Which of the following is not a responsibility of the Chief Executive?
(a)
Formulating the organization mission
(b)
Anticipating future trends and looking for opportunities
(c)
Devising policies and procedures for the smooth functioning of the organization
(d)
Establishing departmental policies
(e)
Managing material, financial and human resources of an organization.

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19.
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.

20.
Which of the following are steps that can help overcome problems associated with the Management by Objectives 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.

21.
Managers need fewer formal rules and regulations in an organization with which of the following characteristics?
(a)
Weak culture
(b)
Strong culture
(c)
Tall structure
(d)
Culture never impacts structure
(e)
Flat structure.

22.
Which of the following is not a limitation of strategic planning?
(a)
It is very expensive
(b)
It does not yield obvious and immediate results
(c)
It can be a lengthy and time-consuming process
(d)
It encourages firms to adopt risky decisions
(e)
It takes time for the process to function smoothly.

23.
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.

24.
Operational plans are stated in specific, quantitative terms related to normal departmental activities and serve as the department manager's guide to day-to-day operations. Which of the following is not considered an organizational benefit of a properly executed operational plan?
(a)
Ability to visualize alternative ways to utilize resources
(b)
Ability to evaluate the plan's effectiveness
(c)
Opportunity to use feedback for continued incremental learning
(d)
Ability to predict the effects of modifications in operations on the efficiency of operations
(e)
Opportunity to offer promotions within various department levels.

25.
As an organization grows in size and complexity, specialization of various tasks becomes a necessity, in most of the cases. Which of the following refers to the tendency of a system to move towards increased specialization of various tasks?
(a)
Equifinality
(b)
Focus
(c)
Differentiation
(d)
Dynamic Homeostasis
(e)
Cost leadership.

26.
It is essential that an organization clearly defines every managerial position. Which of the following is not a benefit of position descriptions?
(a)
They identify duties and responsibilities that are overlapping or neglected
(b)
They help in deciding upon the organization design
(c)
They provide guidance regarding candidate requirements, salary levels, and training needs of new employees
(d)
They help managers determine the tasks to be done and the employees who should do them
(e)
They act as means of control over the organization by furnishing standards against which the necessity of the position can be ascertained.

27.
An organization that has four sales regions, North, Midwest, South, and Southwest is using _____ departmentalization.
(a)
Functional
(b)
Product
(c)
Customer
(d)
Geographic
(e)
Matrix.

28.
All of the following are considered coordination mechanisms except
(a)
Grapevine
(b)
Teams
(c)
Task forces
(d)
Profit sharing
(
e)
Liaisons.

29.
The success of an organization greatly depends on the decisions that managers make. Various types of decision-making techniques are used by managers. Which of the following decision-making techniques provides many useful insights into situations involving elements of competition?
(a)
Linear programming
(b)
Break-even analysis
(c)
Game Theory
(d)
Queuing theory
(e)
Marginal analysis.

30.
Which of the following structures is an organization design made up of self-contained units?
(a)
Functional
(b)
Customer
(c)
Divisional
(d)
Matrix
(e)
Network.

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. Who among the following belongs to middle management cadre in a big organization?
(a)
Managing director
(b)
General manager
(c)
Regional manager
(d)
Branch manager
(e)
Assistant manager.

32.
Practicing ethical guidelines enable managers to become followers of moral management approach. They facilitate ethical business decisions. Which of the following is not an ethical guideline for managers?
(a)
Upholding human dignity
(b)
Obeying the law
(c)
Non-allowance for participation of stakeholders in the decision-making process
(d)
Primum Non-Nocere
(e)
Telling the truth.

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33.
The efficiency, with which an organization accomplishes its goals and objectives, is largely dependent on the structure it adopts. Which of the following is not an advantage of ‘matrix structure’?
(a)
It facilitates decentralization of decisions
(b)
It adds strong horizontal coordination to projects and, thereby, increases the probability of success that is normally impossible through a functional design alone
(c)
It facilitates monitoring of environmental conditions with respect to both the projects and the functional areas
(d)
A matrix organization is always extremely fast in responding to changes
(e)
It allows effective use of human resources.

34.
Which of the following types of departmentation was used to classify tribes, clans and armies in the past?
(a)
Departmentation by simple numbers
(b)
Departmentation by time
(c)
Departmentation by geographical area
(d)
Departmentation by process
(e)
Departmentation by function.

35.
The job of managers is to get work done by others. Which of the following is the process by which managers allocate a chunk of their work to subordinates along with sufficient authority to accomplish the work?
(a)
Delegation
(b)
Decentralization
(c)
Centralization
(d)
Feedback
(e)
Briefing.

36.
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.

37.
Which strategic business units (SBU) mapped on the BCG matrix, either need more investment or can be considered for withdrawal?
(a)
Question marks
(b)
Bulls
(c)
Dogs
(d)
Cash cows
(e)
Stars.

38.
Which of the elements of structure includes making efficient use of workers' special skills?
(a)
Chain of command
(b)
Authority
(c)
Work specialization
(d)
Departmentalization
(e)
Decentralization.

39.
When all managers within an organization are involved in various ways in the management of the organization, then it is referred to as
(a)
Top-down management
(b)
Bottom-up management
(c)
Unity of command
(d)
Unity of direction
(e)
Centralization.

40.
Which of the following is not a component of McKinsey's 7-S framework?
(a)
Strategy
(b)
Structure
(c)
Shared standards
(d)
Style
(e)
Systems.

41.
The continual analysis and measurement of actual operations against the established standards developed during the planning process is termed as
(a)
Controlling
(b)
Monitoring
(c)
Leading
(d)
Organizing
(e)
Reporting.

42.
Max Weber, a German contemporary of Henri Fayol, coined the term "bureaucracy", based on the German word "buro" meaning office, to identify large organizations that operated on a rational basis. All of the following are characteristics of bureaucracy except
(a)
Centralized authority
(b)
Formalized rules and regulations
(c)
Standardized operating tasks
(d)
Wide spans of control
(e)
Multiple hierarchical levels.

43.
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.

44.
Managers involved in strategic planning aim at translating the broad intentions of the firm into more concrete and measurable strategic plans, policies and budget allocations. There are various steps involved in the strategic planning process. The final step in strategic planning answers the question
(a)
What business have we been in?
(b)
How much money have we lost?
(c)
How effective have our strategies been?
(d)
What business should we have we been in?
(e)
Who have been our customers?

45.
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.

46.
According to Moskowitz, which of the following is not a characteristic of the work environment in well-managed companies?
(a)
It highlights distinction in ranks
(b)
It makes people feel they are part of a team
(c)
It encourages open communication
(d)
It stresses quality
(e)
It lays emphasis on profit sharing.

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47.
Depending upon their ability to achieve set targets, Jack Welch speaks of four types of managers. Which of the following is not a description of these types of managers?
(a)
Managers who live up to the expectations of the company
(b)
Managers who neither share the company's values nor do they achieve their targets
(c)
Managers who share the values of the company but their performance is dismal
(d)
Managers who fulfill all commitments and give results but do not share the company's values
(e)
Managers who deliver beyond the company's expectations.

48.
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.

49.
Which of the following is not a function of the supervisory level of management?
(a)
Making detailed, short-range operational plans
(b)
Maintaining close contact with employees involved in operations
(c)
Reviewing performance of subordinates
(d)
Analyzing managerial performance to determine capability and readiness for promotion
(
e)
Making specific task assignments.

50.
Which of the following is defined as management which conducts business by standards established, by facts or truths gained through systematic observation, experiment, or reasoning?
(a)
Administrative management
(b)
Modern management
(c)
Bureaucratic management
(d)
Scientific management
(e)
Systems management.

51.
Plans form an integral part of any organization. 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
(a)
Tactical plans
(b)
Strategic plans
(c)
Short-term plans
(d)
Standing plans
(e)
Operational plans.

52.
In which step of the extended model of the planning process, does an organization focus on its strengths and weaknesses, competition, and customers’ needs?
(a)
Formulating supporting plans
(b)
Comparing alternatives in the light of goals
(c)
Considering planning premises
(d)
Being aware of opportunity
(e)
Setting objectives or goals.

53.
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 description 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.

54.
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. Which of the following is the first step in the managerial decision-making process?
(a)
Identifying resources and constraints
(b)
Identifyinga problem
(c)
Analyzing alternatives
(d)
Allocating weights to the criteria
(e)
Developing decision criteria.

55.
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.

56.
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)
Analyzingthe alternatives
(d)
Implementing the alternative
(e)
Obtaining the needed resources.

57.
The behavioral school of management emphasized what the classical theorists ignored - the human element. While classical theorists viewed the organization from a production point of view, the behavioral theorists viewed it from the individual's point of view. The behavioral science theories were mainly influenced by the concepts of
(a)
Bureaucracy and psychology
(b)
Psychology and sociology
(c)
Sociology and science
(d)
Sociology and bureaucracy
(
e)
Science and literature.

58.
The characteristic of organization that describes the degree to which the organization monitors and responds to changes in the external environment is termed
(a)
Open-systems focus
(b)
Means-end orientation
(c)
Control
(d)
Unit integration
(e)
Closed-system focus.

59.
The decision-making process concludes with
(a)
Analysis of alternatives
(b)
Identification of a problem
(c)
Identification of decision criteria
(d)
Evaluation of decision effectiveness
(e)
Develop planning premises.

60.
Which of the following refers to the practice of employees deliberately working at a slower pace than their capabilities?
(a)
Commandeering
(b)
Bounded rationality
(c)
Soldiering
(d)
Espiritde corps
(e)
Satisficing.

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61.
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.

62.
Management might strive to encourage ethical behavior in organizations in order to
(a)
Be morally correct
(b)
Fight competition
(c)
Gain profit
(d)
Deal with suppliers
(
e)
Improve their products.

63.
The major approaches utilized by managers to induce employees to accomplish the planned actions associated with implementation, should normally include all of the following except
(a)
Authority
(b)
Coercion
(c)
Persuasion
(d)
Feedback
(e)
Policy.

64.
Which of the following is defined as the possibility that individuals selected to participate in a study may show higher productivity only because of the added attention they receive from the researchers rather than any other factor being tested in the study?
(a)
Bank wiring observation
(b)
Hawthorne effect
(c)
Halo effect
(d)
Illumination effect
(e)
Interview phase observation.

65.
In which of the following organizations, sometimes called network organizations or virtual organizations, is there increased interdependence between the organization and its environment?
(a)
Closed
(b)
Simple
(c)
Divisional
(d)
Boundaryless
(e)
Hybrid.

66.
A scalar chain
(a)
Defines the communication path in an organization
(b)
Defines the roles and responsibilities in an organization
(c)
Explains the organizational structure
(d)
Outlines the critical activities in a process
(e)
Defines the controls in the organization.

67.
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 decision-making techniques. Resource allocation problems can best be solved using which of the following decision-making techniques?
(a)
Break-even analysis
(b)
Probability theory
(c)
Linear programming
(d)
Queuing theory
(e)
Marginal analysis.

68.
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 is a disadvantage of group decision-making?
(a)
Greater comprehension
(b)
Logrolling
(c)
Greater pool of knowledge
(d)
Different perspectives to a problem
(e)
Increased acceptance.

69.
Which of the following factors would have a tendency to increase the span of management in an organization?
(a)
Subordinates are physically distant
(b)
Subordinates have similar functions
(c)
Subordinates have complex tasks
(d)
Subordinates' work needs close coordination
(e)
Manager spends much time in planning.

70.
Various moderating variables determine whether a manager 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. Which of the following individual characteristics indicates the degree to which people believe they are masters of their own fate?
(a)
Perception
(b)
Value
(c)
Attitude
(d)
Locus of Control
(e)
Ego Strength.

71.
A local firm has earned a good reputation because of quality paper bags manufactured by it. Moreover, it is environmental conscious and makes use of only recycled paper for manufacturing the bags. So when the firm advertises that it uses only recycled paper products, it is
(a)
Meeting its social obligation
(b)
Being socially responsive
(c)
Meeting its ethical responsibilities
(d)
Paying attention to the bottom line
(e)
Paying attention to the top line.

72.
JetBlue Airways found that there was an excess of pilots in the general labor pool. JetBlue want to have a non-union employee base. Because of the excess supply of pilots JetBlue was able to hire competent pilots who were willing to forego union privileges. Which of the following statements best characterizes what JetBlue was able to do with respect to the internal and external environments?
(a)
Internal and external environmental forces were in conflict with one another
(b)
Internal and external environmental forces do not have to be in conflict with one another; in this case they were complimentary
(c)
Internal and external environments are completely different and do not have anything to do with one another
(d)
The real issue in the story was one of managerial control and exploitation and not really related to the internal or external environments
(e)
JetBlue was trying to fulfill its social responsibility towards its external environment.

73.
Standing plans that furnish broad guidelines for channeling management thinking in specified direction are called
(a)
Procedures
(b)
Programmes
(c)
Single-use plans
(d)
Policies
(e)
Rules.

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74.
The only thing that is permanent in this world is change. Changes will happen in the internal environment or external environment, no matter what management does. Planning can’t eliminate change, but managers usually plan in order to
(a)
Decide what needs to be done when a change in environment takes place
(b)
Anticipate changes and develop the most-effective response to changes
(c)
Have the appropriate materials available when the demand for them comes about
(d)
Be prepared for when changes in management at the top occur
(e)
Recruit new people if old employees leave.

75.
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.

76.
A well-known approach to implementing goal theory is Management by Objectives (MBO). Which of the following statements about MBO is not true?
(a)
Employees and supervisors agree on a set of goals
(b)
Goal achievement has no preset time frame
(c)
Each person knows exactly what is expected of him or her
(d)
It results in a hierarchy of objectives that links specific objectives with each succeeding organizational level
(e)
Overall objectives are broken down into specific objectives.

77.
In order to understand the opportunities and threats faced by an organization, managers should analyze their organization’s environment. There are various tools available for the purpose. What are the three most effective tools that managers can use to analyze their organization’s environment?
(a)
Benchmarking, planning, and evaluating
(b)
Environmental scanning, forecasting, and benchmarking
(c)
Strategic planning, environmental scanning, and TQM
(d)
Forecasting, budgeting, and time management
(e)
Strategic planning, environmental scanning, and management control.

78.
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.

79.
With its Everyday Low Pricing (EDLP) strategy, Wal-Mart generally follows which of the following generic strategies to meet or beat competitors?
(a)
Focus
(b)
Differentiation
(c)
Market segmentation
(d)
Cost leadership
(e)
Niche strategy.

80.
Anusheel Gupta is considering the following questions as he approaches a planning period: (a) What industries should we get into or out of? (b) In which businesses should the corporation invest money? Which of the following levels would be appropriate to address the questions facing Mr. Gupta?
(a)
Corporate level
(b)
Operational level
(c)
Business level
(d)
Functional level
(e)
Departmental level.

81.
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.

82.
Bounded rationality differs from the rational model in that decision makers
(a)
Act irrationally
(b)
Focus on easy-to-find choices
(c)
Seek advice from employees
(d)
Act outside the boundaries set by their organizations
(e)
Seek advice from experts.

83
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.

84.
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. 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.

85.
Which of the following is not true regarding programmed decisions?
(a)
They are made in well-structured situations
(b)
They are based on established policies and procedures
(c)
They require managers to exercise discretion
(d)
They are made mostly by lower-level managers
(e)
They limit the managers’ flexibility.

86.
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, with people and positions?
(a)
Risk analysis
(b)
Risk communication
(c)
Decision trees
(d)
Utility theory
(e)
Game theory.

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87.
Which of the following is not allowed in a brainstorming session?
(a)
Clear definition of the problem
(b)
Criticism of poor ideas
(c)
Large number of alternatives
(d)
Recording of all alternatives
(e)
Building on alternatives generated.

88.
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, one is written
(b)
One is a short term group, the other long term
(c)
One is visual, the other is verbal
(d)
One is face-to-face, the other keeps group members anonymous
(e)
One uses experts, the other uses the layman.

89.
Which of the following forms of departmentation adopts parts of both functional and divisional structures at the same level of management?
(a)
Matrix
(b)
Flexible
(c)
Hybrid
(d)
Mixed
(e)
Partly functional.

90.
Organization design decisions are typically made by
(a)
Senior management
(b)
Middle-level management
(c)
Lower-level management
(d)
Trainees
(e)
Consultants.

91.
Strategic Business Unit (SBU) is a more recent form of organization structure adopted by several companies. Which of the following is not correct regarding Strategic Business Unit (SBU)?
(a)
All SBUs of an organization have the same mission
(b)
An SBU has well defined competitor groups
(c)
An SBU efficiently manages its resources in prime areas
(d)
An SBU should have a proper size, that is 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.

92.
The benefits associated with adopting the divisional organization structure include all but which one of the following?
(a)
Development of managers' skills
(b)
Reduced specialization
(c)
Improved service
(d)
Coordination among business functions
(e)
Accountability for performance.

93.
Downsizing results in
I. Flatter organization structure.
II. Taller organization structure.
III. Reduction in the work force.
IV. Product organization structure.
(a)
Only (I) above
(b)
Both (I) and (III) above
(c)
Both (II) and (IV) above
(d)
Both (I) and (IV) above
(e)
(I), (III) and (IV) above.

94.
Which of the following is/are advantages of ‘customer departmentation?’
I. It encourages concentration on customer needs.
II. Develops expertise in customer area.
III. Each division of the organization can react quickly when required.
(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.

95.
Which of the following is the employer-employee authority relationship that follows the chain of command?
(a)
Staff authority
(b)
Referent power
(c)
Line authority
(d)
Functinal authority
(e)
Expert power.

96.
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.

97.
Which type of power is best described as power derived from the satisfaction people receive from identifying themselves with the leader?
(a)
Coercive
(b)
Referent
(c)
Legitimate
(d)
Reward
(e)
Expert.

98.
Decentralizing an organization is a structural change aimed at
I. Reducing the cost of coordination.
II. Increasing the controllability of subunits.
III. Increasing motivation.
IV. Developing multiple power centers.
(a)
Only (I) above
(b)
Both (I) and (II) above
(c)
Both (III) and (IV) above
(d)
(I), (II) and (III) above
(e)
All (I), (II), (III) and (IV) above.

99.
An important issue in organizing is the extent to which authority is centralized, or its opposite, decentralization, in a formal organization structure. Centralization is at one end of a continuum and at the other end is decentralization. Centralization refers to
(a)
The number of employees a manager can supervise
(b)
The degree to which jobs within the organization are standardized
(c)
The degree to which decision making is concentrated at a single point in the organization
(d)
The unity of command within an organization
(e)
The systematic delegation of authority in an organization-wide context.

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100.
Which of the following refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed?
(a)
Responsibility
(b)
Authority
(c)
Span of control
(d)
Unity of command
(e)
Unity of direction.