Introduction to Management-II (MB112): July 2006:Suggested Answers

Suggested Answers Introduction to Management-II (MB112): July 2006

1.
Answer : (b)
Reason : Targets of performance most accurately describe the term “standards.”
<>
2.
Answer : (a)
Reason : Physiological assumptions are not assumptions on which Edgar H. Schein based his study of human behavior.
<>
3.
Answer : (e)
Reason : A job description is a written statement of what a jobholder does, how it's done, and why it's done. Hence, from above discussion, we can infer that option (e) is correct.
<>
4.
Answer : (b)
Reason : The path-goal theory indicates that effective leadership is dependent on clearly defining for subordinates the paths to goal attainment, and the degree to which the leader is able to improve the chances of subordinates to achieve their goals. There is no scope for delegated leadership in path-goal theory, as it is more appropriate for authoritarian people.
<>
5.
Answer : (d)
Reason : Productivity program is not an element in ‘resource supply forecasting.’
<>
6.
Answer : (d)
Reason : According to the University of Michigan studies, leaders who monitored work closely to ensure that prescribed mehtods were followed and productivity standards met were job centered.
<>
7.
Answer : (d)
Reason : Salesperson Quotas is an example of internal information in an organization. Hence from above discussion, we can infer that option (d) is correct. Options (a), (b), (c) and (e) are all examples of external information.
<>
8.
Answer : (c)
Reason : The Economic Order Quantity (EOQ) is an inventory control method developed to minimize ordering and holding costs, while avoiding stockout costs.
<>
9.
Answer : (b)
Reason : Decision Support System (DSS) is an information system that helps the managers in decision-making. It uses low-volume data and analytical models as data inputs. Hence from above discussion, we can infer that option (b) is correct.
<>
10.
Answer : (d)
Reason : Intelligence tests explore alertness, comprehension and reasoning abilities of applicants. (a) Work sampling tests are a means of measuring practical ability of the candidate on a specific job. (b) Knowledge tests evaluate the applicant’s knowledge about the company, its competitors and customers, its products,
<>
the target market and the like. (c)Personality tests are means of measuring characteristics such as patterns of thoughts, feelings etc., of an individual. (e) Performance tests are same as work sampling tests.
11.
Answer: (a)
Reason : Organizational development relies on the use of interventions, which are change strategies developed and initiated with the help of a change agent. Hence, from above discussion, we can infer that option (a) is correct.
<>
12.
Answer: (a)
Reason : According to Maslow, a need stops motivating when it is substantially satisfied.
<>
13.
Answer: (c)
Reason : The statement ‘the needs identified in Maslow's hierarchy run in descending order’ is false. All other options are correct in case of Maslow’s Hierarchy of Needs Theory.
<>
14.
Answer: (a)
Reason : Making the control activities the goals of the control process will be least likely to increase the quality of the controlling process. Hence, from above discussion, we can infer that option (a) is correct.
<>
15.
Answer: (c)
Reason : A successful JIT program requires that suppliers be located in close proximity of the company, so that materials can arrive as and when needed. Hence from above discussion, we can infer that option (c) would generally not be associated with a successful JIT program. Options (a), (b), (d) and (e) would all be associated with a successful JIT program.
<>
16.
Answer: (b)
Reason : The budgetary control system helps a manager to match the actual and the planned revenues and costs of various organizational activities.
<>
17.
Answer: (a)
Reason : The following are intervention techniques used by organization development specialists:
I. Team building.
II. Third-party intervention.
III. Technostructural activities.
Planned progression and coachng are on-the-job training techniques.
<>
18.
Answer: (a)
Reason : Data managementrefers to the standards and procedures for the storage and preservation of data in a form that ensures access across a variety of applications and uses.
<>
19.
Answer: (e)
Reason : Performance appraisals are important in an organization because they provide systematic judgements to support promotions; provide a basis for coaching; provide a basis for counseling; and let subordinates know where they stand with the boss.
<>
15
16
20.
Answer : (b)
Reason : Communication is best described as the process of sharing information.
<>
21.
Answer : (b)
Reason : In organizations, people who act as catalysts and assume the responsibility for managing the change process are called change agents. Hence from above discussion, we can infer that option (b) is correct.
<>
22.
Answer : (c)
Reason : The conflict-resolution approach that corresponds with a high level of assertiveness and a low level of cooperativeness, is referred to as Forcing. Hence, from above discussion, we can infer that option (c) is correct.
<>
23.
Answer : (b)
Reason : Skills inventory 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. Thus it is used in forecasting manpower supply. (a) Forecasting manpower demand implies assessing how many people with what abilities the organization will need in the foreseeable future to remain in action. (c) Replacement planning is a means of identifying potential candidates to fill specific managerial positions. (d) Succession planning provides the organization with a well-qualified pool of individuals from which top-level and middle level managers can be selected in future. (e) Planning human resource actions is the matching of projected human resource needs with projected availability of human resources.
<>
24.
Answer : (b)
Reason : Feedback control is a control type based on timing that involves regulation exercised after a product or service has been completed, to ensure that they meet the standards necessary for the transformation process. Hence, from above discussion, we can infer that option (b) is correct.
<>
25.
Answer : (b)
Reason : The following statements describe more of a subordinate centered leadership:
I. A manager more likely asks the group to make a decision.
II. A manager permits subordinates to function within limits.
<>
26.
Answer : (a)
Reason : In the benevolent-authoritative system of management, managers are patronizing but have confidenc and trust in subordinates.
<>
27.
Answer : (a)
Reason : Sanctioning means giving formal permission or approval. It not a part of the human resource management function in most organizations. Hence, from above discussion, we can infer that option (a) is correct. Options (b), (c), (d) and (e) are all parts of the human resource management function in most organizations.
<>
28.
Answer: (d)
Reason : The correct sequence of the steps involved in training individuals is: determining training needs, designing the training programme, administering the training programme, and evaluating the training programme.
<>
29.
Answer: (e)
Reason : BARS contain set of specific behaviors that represent gradation of performance used as common reference points for rating employees. Ratings on job performance and evaluation jointly by manager and sub-ordinates. BARS provide job specific and job related evaluation. Option (e) is correct answer.
<>
30.
Answer: (a)
Reason : If a training program attempts to sharpen logic, reasoning, or defining problems, it is most likely teaching Problem-solving skills.
<>
31.
Answer: (c)
Reason : Organizations that exhibit a style of management that combines traits of Japanese and American companies are called theory Z organizations.
<>
32.
Answer: (d)
Reason : Maintaining sufficient inventory helps an organization in which of the following ways:
I. Dealing with uncertainties in demand and supply.
II. Making economical purchase of materials.
III. Handling unexpected shortge.
<>
33.
Answer: (d)
Reason: Position analysis questionnnaire identifies the following aspects of a job:
I. Sources of information critical to job performance.
II. Interpersonal relationships required to perform the job.
IV. Physical working conditions and reactions of individuals to those conditions.
<>
34.
Answer: (e)
Reason : All four statements are approaches for formal performance appraisals.
<>
35.
Answer: (c)
Reason : Achievement, recognition, and growth are examples of motivators in Herzberg’s theory.
<>
36.
Answer: (c)
Reason : Theory Y assumes that commitment to objectives is a function of the rewards associated with achievement.
<>
37.
Answer: (c)
Reason : Leaders who guide or motivate their followers toward established goals by clarifying role and task requirements are using transactional leadership.
<>
38.
Answer: (a)
Reason : Inventory that can be converted into cash within one year is an example of a current asset
<>
39.
Answer: (e)
Reason : It does not form a separate component from the job is
<>
17
18
not a weakness of appraisal against verifiable objectives.
40.
Answer : (b)
Reason : The Japanese Management organizing process usually involves
(1) Collective responsibility and accountability.
(2) Ambiguity of decision responsibility.
(3) Informal organization structure.
Hence, (b) is the correct answer.
<>
41.
Answer : (c)
Reason : Herzberg's motivation-hygiene theory proposes that the factors that help prevent dissatisfaction on the job do not necessarily lead to satisfaction.
<>
42.
Answer : (b)
Reason : If manpower demand is high and manpower supply is high, (I) selection and (III) promotions are undertaken.
<>
43.
Answer : (c)
Reason : Operations Management oversees the transformation process that converts resources such as labor and raw materials into finished goods and services. Hence, from above discussion, we can infer that option (c) is true regarding Operations Management. Options (a), (b), (d) and (e) are all false regarding Operations Management.
<>
44.
Answer : (d)
Reason : Diagonal information flow takes place among persons at different levels who have no direct relationships. Hence, from above discussion, we can infer that option (d) is correct.
<>
45.
Answer : (d)
Reason : Kurt Lewin explored three leadership styles. viz., autocratic, democratic and laissez faire. Hence, from above discussion, we can infer that option (d) is correct.
<>
46.
Answer : (c)
Reason : Kacho refers to a manager whose task is not only to supervise people at work but also to show fatherly concern for their subordinate’s private life.
<>
47.
Answer : (c)
Reason : According to Hersey and Blanchard, when provided with an able and willing follower, the leader primarily deals with the exceptions.
<>
48.
Answer : (c)
Reason : In negotiation and agreement method of overcoming resistance to change, management neutralizes potential or actual resistance by exchanging something of value for cooperation. Hence, from above discussion, we can infer that option (c) is correct.
<>
49.
Answer : (b)
Reason : The attitude that regards home-country practices as superior to foreign-country practices is known as an ethnocentric attitude.
<>
50.
Answer: (e)
Reason : The third set of needs are related to extrinsic needs is the statement which cannot be considered true about Alderfer's ERG theory.
<>
51.
Answer: (c)
Reason : The characteristics of the planning process usually adopted in US Management style are: (1) Short-term orientation, (2) Decisions initiated at the top, flowing down, (3) Fast decision-making. Hence, (c) is the correct answer.
<>
52.
Answer: (e)
Reason : The following are advantages of external recruitment
III. Candidates may have broader experience.
IV. Candidates may be familiar with competitors.
V. Candidates are a source of potential new ideas.
<>
53.
Answer: (a)
Reason: Sensitivity training is concerned with (i) better understanding of group processes, (ii) development of organizing and intervening skills in group processes and (iii) better insight into one's own behaviour and the way one is viewed by others. Hence, from above discussion, we can infer that option (a) is correct.
<>
54.
Answer: (b)
Reason : Simulation models used in constructing mathematical models.
<>
55.
Answer: (d)
Reason : Directing negative feedback toward behaviour that is uncontrollable, is not a useful suggestion for providing effective feedback in an appraisal review, as the situation might become more uncontrollable. Hence, from above discussion, we can infer that option (d) is not a useful suggestion for providing effective feedback in an appraisal review. Options (a), (b), (c) and (e) are all useful suggestions for providing effective feedback in an appraisal review.
<>
56.
Answer: (c)
Reason : Process theory focuses on the dynamics of motivation and how the motivation process takes place. Hence, from above discussion, we can infer that option (b) is correct. The other theories are not applicable in this case.
<>
57.
Answer: (d)
Reason : The following statements are true about staffing:
I. It is necessary to take into account the internal and external organizational factors while staffing.
II. Staffing is a process, which influences other managerial functions like leading and controlling.
III. It involves selecting individualswhose goals are congruent with those of the organization.
<>
58.
Answer: (c)
Reason : The following statements is/are true about certified management audit:
III. It takes a longer time to carry out than an accounting audit.
<>
19
20
IV. It requires objective standards that should be applied impartially.
Statement (I) - it appraises an organization’s position – where it is, where it is heading, whether objectives are met, whether revision of plans is required – refers to enterprise self audit.
The responsibility of conducting a certified mananagement audit should be given to an external firm that individuals with sufficient knowledge. Hence statement (II) is not true about certified management audit.
59.
Answer : (e)
Reason : For an information system to be effective, it should provide both internal and external information that is timely and accurate.
<>
60.
Answer : (b)
Reason : The following statements are true about tactical control:
I. It focuses on implementing plans at the department levels.
III. It involves weekly, fortnightly and monthly reporting cycles.
Statement (II) – It monitors day-to-day results is true about operational control.
Statement (IV) – It involves monitoring critical environmental factors is true about strategic control.
<>
61.
Answer : (b)
Reason : The following are disadvantages of internal recruitment:
I. Unsuccessful contenders may become disgruntled.
II. Selection is more susceptible to office politics.
<>
62.
Answer : (a)
Reason : The following statements is true about investment centers:
I. The control system examines the role of assets in generating profit.
<>
63.
Answer : (a)
Reason : The trait approach is based on early research that assumes that a good leader is born, not made.
<>
64.
Answer : (a)
Reason : Fiedler defined leader-member relations as the degree of confidence, trust, and respect subordinates have in their leader.
<>
65.
Answer : (c)
Reason : The following are assumptions of the traditional model of management:
I. Work is inherently distasteful to most people.
IV. What workers do is less important than what they earn for doing it.
Statement (II) - Most people can exercise far more creative, responsible self-direction and self-control than their present jobs demand is an assumption of the human resources model.
Statement (III) - People desire to belong and to be recognized as individuals is an assumptin of the human
<>
relations model.
66.
Answer: (b)
Reason : Quality control system is are used by all levels of managment
<>
67.
Answer: (b)
Reason : The following are elements of job specification:
I. Education
II. Work experience.
V. Communication skills.
Statements (III) and (IV) are elements of job description.
<>
68.
Answer: (e)
Reason : The following are corrective controls:
I. Feed forward controls.
II. Yes-no controls.
III. Feedback controls.
<>
69.
Answer: (b)
Reason : Perception is the process that individuals use to acquire and make sense out of information from the environment. Hence, from above discussion, we can infer that option (b) is correct.
<>
70.
Answer: (d)
Reason : The following statements are true about executive support systems:
I. They provide market intelligence, investment intelligence and technology intelligence.
III. They support decision-making at the top level of management.
The executive support system makes less use of analytical models and is highly interactive. Hence, statement (II) is not true about ESS.
<>
71.
Answer: (e)
Reason: The information attribute which is prepared or presented to users often enough to be up-to-date is known asInformation frequency.
<>
72.
Answer: (b)
Reason : Return on investment is the ratio of earnings before taxes to that of total assets. So, it attempts to measure profitability. Hence, from above discussion, we can infer that option (b) is correct.
<>
73.
Answer: (a)
Reason : Initiating structure is the extent to which a leader defines his or her own role and those of subordinates so as to achieve organizational goals.
<>
74.
Answer: (c)
Reason: The following are characteristics exhibited by achievement-oriented people:
III. They take a realistic approach to risk.
IV. They have an intense desire for success.
Statement (I) holds good for affiliation oriented people. Statement (II) holds good for power oriented people.
<>
75.
Answer: (d)
Reason : According to Fiedler, leader-member relations, task structure, position power are the primary factors that
<>
21
22
should be used as a basis for moving leaders into more appropriate situations.
76.
Answer : (b)
Reason : Results-oriented appraisal implies evaluating an individual based on actual job performance. Hence, from above discussion, we can infer that option (b) is correct.
<>
77.
Answer : (d)
Reason : A manager who re-designs the jobs of her subordinates so that they include a better chance for personal growth is using job enrichment, which is defined as a job design approach that upgrades the job-task mix in order to increase significantly the potential for growth, achievement, responsibility and recognition. Job analysis is defined as a systematic collection and recording of information concerning the purpose of a job, its major duties etc. Job description is a statement of duties, working conditions and other significant requirements associated with a particular job. Job rotation is a job design approach that involves periodically shifting workers through a set of jobs in a planned sequence.
<>
78.
Answer : (d)
Reason : Creative individuals use the emotional aspect aspects of their personalities in problem solving besides intellectual and rational aspects.
<>
79.
Answer : (b)
Reason : Ratio is an index that measures one variable relative to another.
<>
80.
Answer : (a)
Reason : Warehousing leadtimes is an input not an output in the distribution logistics model.
<>
81.
Answer : (d)
Reason : Kanban is a subsystem of the just-in-time approach and involves the use of cards and containers to move parts and components from one work area to another.
<>
82.
Answer : (b)
Reason : The following are prerequisites for effective listening:
I. Avoiding premature evaluation.
III. Practicing active listening.
Being flexible and not expecting the message to follow a fixed pattern is a prerequisite, hence statement (II) is not applicable. Trying to benefit from one’s own rapid ‘thought process’ and not from the ‘talk processes’ of the speaker is a prerequisite. Therefore, statement (III) is not applicable.
<>
83.
Answer : (d)
Reason : The following statements are true about feedforward controls:
I. They are future-oriented.
III. They are preliminary controls.
Quality control inspections are examples of concurrent controls.
Statements (III) and (IV) are disadvantages of external recruitment.
<>
84.
Answer: (e)
Reason : The phenomenological view proposes that people are unpredictable, subjective, relative and uniques in nature.
<>
85.
Answer: (d)
Reason : The following are steps involved in the enterprise self audit:
I. Study the outlook of the industry in which the firm is operating.
II. Appraise the position of the firm.
III. Re-examine the basic objectives and major policies of the firm.
<>
86.
Answer: (c)
Reason : Management sudit is not one of the principles on which HACCP preventive control systems should be based.
<>
87.
Answer: (c)
Reason : Reference check involves furnishing information of persons who can assure the recruiting firm that the information given by the applicant is reliable.
<>
88.
Answer: (e)
Reason: All the options given are potential barriers to successful controlling.
<>
89.
Answer: (e)
Reason : The first stage in a corporation’s multinationalization is when the corporation exports its products.
<>
90.
Answer: (a)
Reason : Valence is the motivatinal component that refers to the preference of an individual for a particular outcome.
<>
91.
Answer: (d)
Reason : Statements (I) and (II) are true about planned change. Planned change aims at change in employee behavior; therfore statement (III) is not true.
<>
92.
Answer: (b)
Reason : Satisfaction is an intrinsic reward.
<>
93.
Answer: (c)
Reason : According to the managerial grid, the country club leader believes that thoughtful attention to the needs of people for a satisfying relationship leads to a comfortable, friendly organizational atmosphere and work tempo.
<>
94.
Answer: (e)
Reason : improper feedback is not an example of noise. Noise occurs while sending the message, during transmission or while receiving the message. As feedback takes place after the message is delivered and decoded, improper feedback cannot be considered as noise.
<>
95.
Answer: (d)
Reason : People with a need for affiliation strive to develop friendships, prefer to work in cooperative situations and work toward a high degree of mutual understanding in their relationships.
<>
96.
Answer: (c)
<>
23
24
Reason : In direct control the cause of an unsatisfactory outcome traced back to the individual responsible for it who is then made to correct the practice.
97.
Answer : (d)
Reason : The following statements are true with respect to asset management ratios:
I. They are a test of the relationship between sales and various assets of a firm.
II. They are also called activity ratios.
III. A higher percentage indicates that a lesser investment is needed in assets and the profitablity is better. Hence statement (III) is not true.
<>
98.
Answer : (b)
Reason : According to Kurt Lewin, a laissez-faire leader allows his employees complete freedom to make decisions and to complete work in whatever way they think is best.
<>
99.
Answer : (e)
Reason : Inventory schedule is an output in the inventory control model.
<>
100.
Answer : (e)
Reason : The following are assumptions of preventive control:
I. Application of fundamentals can be evaluated.
III. Well qualified managers can make minimum mistakes.
IV. Management concepts, tools, principles and techniques are effective standards for measuring managerial standards and performance.
Statement (II) – personal responsibility exists is an assumption of direct control.
<>
<>