Introduction to Management-II(MB112): April 2007

Question Paper
Introduction to Management-II(MB112): April 2007

• Answer all questions.
• Each question carries one mark.
1. According to the Japanese management practices, what 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?
(a) Ringi
(b) Henko
(c) Kacho
(d) Sushin Kayo
(e) Habatsu.
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2. Standards constitute the foundation of the control process and are guidelines established as the basis for
measurement. Which of the following cannot be stated about standards?
(a) They constitute the criteria on which employee performance and employee behavior can be evaluated
(b) Measuring performance against standards necessitates the need for managers to watch every step in the
execution of plans
(c) They are incorporated into goals during the planning process
(d) Sometimes standards need to be developed during the control process
(e) They are expressed numerically.
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3. Which of the following refers 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?
(a) Data management
(b) Data validation
(c) Data security
(d) Data integrity
(e) Data sufficiency.
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4. Which of the following is the best explanation of why Japanese companies tend to make decisions by consensus?
(a) It is a reflection of the larger societal cultural value on groups
(b) It is more efficient and timely than any other method
(c) It is a carryover from post-World War II influences from Americans
(d) The Japanese government mandates it
(e) Their style differs from that of Americans.
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5. A message that is generated by the receiver in response to the sender’s original message is known as feedback. It is
a very important component of the communication process. Feedback returns the message to the sender and
provides a check on
(a) How well the receiver is doing
(b) How well the sender is doing
(c) Whether understanding has been achieved
(d) What the sender should do the next time a message is sent
(e) The ability of the receiver to perform the task.
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6. In which of the following methods of overcoming resistance to change, is a leader or an influential person among
the potential resisters given a seemingly desirable role in the change process, in order to gain the leader’s
cooperation?
(a) Facilitation and support
(b) Negotiation and agreement
(c) Manipulation
(d) Explicit and implicit coercion
(e) Cooptation.
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7. The primary objective of which of the following theories is to provide a profile of an effective leader?
(a) Michigan studies
(b) Path-goal theory
(c) Managerial grid
(d) Trait theory
(e) Contingency theories.
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8. An organization incurs several costs in maintaining inventory. The cost of not having the inventory of the
product requested by the customer is called
(a) Carrying cost
(b) Item cost
(c) Ordering cost
(d) Stock-out cost
(e) Superfluous cost.
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9. Which of the following is/are objectives of sensitivity training?
I. It helps individuals gain insights into their behavior and helps them analyze the way they appear to others.
II. It helps individuals develop the skills necessary for diagnosing and understanding of group processes.
III. It exposes managers to theories, principles and new developments in management.
(a) Only (I) above
(b) Only (III) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
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10. Which of the following responsibility centers are also referred to as ‘engineered expense centers?’
(a) Discretionary expense centers
(b) Standard cost centers
(c) Profit centers
(d) Revenues centers
(e) Investment centers.
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11. An extension of Herzberg’s and Maslow’s content theories of motivation comes from the work of Clayton
Alderfer. All of the following statements can be considered true about Alderfer’s ERG theory except
(a) The theory revised Maslow's theory to make the needs and the sequence of needs less rigid
(b) The theory integrates five needs into three
(c) The theory indicates that all three needs can be functional simultaneously
(d) The existence group is concerned with material requirements for survival
(e) The third set of needs is related to extrinsic needs.
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12. Hazard Analysis and Critical Control Point method (HACCP) is used in the food manufacturing industry to
prevent germs from causing harm to food. With respect to HACCP, which of the following principles involves
identifying the maximum or minimum level at which the food safety hazard has to be controlled to reduce it to an
acceptable level?
(a) Hazard analysis
(b) Identifying control points
(c) Critical limits
(d) Establish corrective actions
(e) Record keeping.
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13. Creative thoughts are the result of hard work and there are various techniques to foster creativity. Which of the
following is one of the best-known techniques for facilitating creativity, developed by Alex F. Osborn?
(a) Brainstorming
(b) Synectics
(c) Delphi technique
(d) Nominal group technique
(e) Simulation.
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14. During which stage of the basic control process model must the manager have strong diagnostic skills and a certain
level of expertise?
(a) Establishing standards
(b) Measuring performance
(c) Analyzing causes of deviation
(d) Comparing performance against standards
(e) Evaluating results and taking necessary corrective action.
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15. Which of the following intervention techniques is used to help organization members enhance their own
effectiveness by showing them how to evaluate and make appropriate changes in task design, work methods and
organization structure?
(a) Technostructural activities
(b) Skill development
(c) Team building
(d) Process consultation
(e) Survey feedback.
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16. Which of the following is not an example of noise in the communication process?
(a) Poor telephone connection
(b) Ambiguous symbols leading to faulty encoding
(c) Inattentive receiver
(d) Prejudices in understanding the message
(e) Improper feedback.
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17. Leaders help a group attain objectives through the best use of its capabilities. Which of the following is not a
feature of leadership?
(a) It involves the use of coercive influence to shape the group’s goals
(b) It is a process in which one individual exerts influence over others
(c) It involves employees or followers who by the degree of their willingness to accept direction, help to
define the leader's status
(d) It involves authority and responsibility, in terms of deciding the way ahead and being held
responsible for the success or failure in achieving the agreed objectives
(e) It involves an unequal distribution of power between leaders and group members.
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18. In a formal appraisal, managers must evaluate employees not only on their present performance, but also on their
ability to perform different tasks effectively in the future. Which of the following are approaches for formal
performance appraisals?
I. Superior’s rating of subordinates.
II. Group of superiors rating subordinates.
III. Peer assessment.
IV. Subordinate’s ratings.
(a) Both (I) and (II) above
(b) Both (II) and (III) 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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19. The motivation process is composed of various elements. Which of the following elements implies a felt
deprivation of physiological or psychological well-being?
(a) Drive
(b) Want
(c) Need
(d) Incentive
(e) Goal.
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20. Which of the following is not an extrinsic reward?
(a) Money
(b) Satisfaction
(c) Amenities
(d) Promotion
(e) Perks.
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21. Which of the following reflects a change in goals or operating philosophy and involves implementation of a
new policy thus preparing the entire organization, or a major part of it, to adopt significant transformation in
goals and direction in terms of scope and magnitude?
(a) Routine change
(b) Planned change
(c) Negotiable change
(d) Flexible change
(e) Educative change.
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22. Which of the following statements is not true with respect to creative individuals in an organization?
(a) They come up with new and unusual ideas
(b) They are seldom satisfied with status quo
(c) They object to conformity
(d) They stick to intellectual and rational aspects of their personalities in problem solving and do not use the
emotional aspect
(e) They may follow their ideas doggedly and irritate others.
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23. Which of the following are reasons why productivity of knowledge workers is more difficult to measure than
productivity of industrial workers?
I. The quality of a knowledge worker’s output cannot be determined immediately.
II. The output of a knowledge worker often contributes only indirectly to the achievement of the end-result.
III. Upgraded skills of knowledge workers due to rapid technological advances make output measurement
difficult.
IV. Knowledge workers often assist other organizational units and this contribution is difficult to measure.
(a) Both (I) and (II) above
(b) Both (III) and (IV) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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24. Potential pitfalls of using budgets as control tools include
I. Placing too much emphasis on relatively insignificant organizational expenses.
II. Changing budgets periodically.
III. Increasing budgeted expenses year after year without adequate information.
IV. Having inexperienced people on the budget committees.
(a) Only (II) above
(b) Both (I) and (IV) above
(c) Both (I) and (III) above.
(d) (I), (II), and (III) above
(e) All (I), (II), (III) and (IV) above.
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25. Existence need in ERG theory corresponds to which of the following needs in Maslow’s need hierarchy theory?
(a) Self-actualization
(b) Esteem
(c) Social
(d) Safety
(e) Physiological.
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26. Performance appraisal is a continuous process that focuses on organization's objectives, task accomplishment,
and personal development. Which of the following is not an objective of a performance appraisal?
(a) Identification of potential
(b) Compensation administration
(c) Work-force planning
(d) Validation of selection procedures
(e) Enhancing superior-subordinate interpersonal relationship.
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27. Motivation theories can be broadly classified into two main categories by looking at their major areas of thrust.
viz., Content theories and Process theories. Content theories of motivation focus on
(a) The level of satisfaction employees have with their job
(b) Achieving one’s potential and self-fulfillment
(c) Equitable distribution of tasks
(d) Analyzing what motivates people
(e) The dynamics of motivation and how the motivation process takes place.
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28. All of the following are good suggestions for verbal presentations, except
I. Avoid interrupting others.
II. Avoid using a monotone.
III. Use fillers such as ‘like’etc.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) Both (II) and (III) above.
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29. Which of the following is not true with respect to ratio analysis?
(a) It is used by managers to assess the significance of financial data collected from various sources by
studying the ratios between various items in a financial statement
(b) It makes the related information comparable and yields significant results
(c) It helps a manager or an analyst to compare the current performance of an organization with its
performance in the past or with the performance of its competitors
(d) A ratio is generally expressed as a percentage or a rate
(e) Ratios can be meaningful even when studied in isolation.
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30. Which of the following is the last and most critical step in the operations research methodology?
(a) Deriving a solution from the model
(b) Constructing a mathematical model
(c) Testing the method
(d) Putting the solution into effect
(e) Providing controls.
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31. The marketing department has just sent a four-page report to the engineering department, concerning plans for a
new product launch that will take place in the next two months. This would be an illustration of which of the
following forms of communication?
(a) Downward communication
(b) Upward communication
(c) Two-way communication
(d) Diagonal communication
(e) Horizontal communication.
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32. Firms with international business have several advantages over firms that operate only within the home country.
Which of the following is not an advantage to a multinational corporation?
(a) Business opportunity in various countries and ability to raise funds for their operations throughout the
world
(b) Ability to establish production facilities in countries where their products can be produced most
efficiently, effectively and economically
(c) Access to natural resources and materials that may not be available to domestic firms
(d) Recruitment from a worldwide labor pool enables MNCs to select the most suitable candidates for filling
key positions in their firms
(e) Developing countries have become more adept in international negotiations and have become aware of
their resources.
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33. Which of the following is not true about a comprehensive interview?
(a) The unstructured interview yields more valid data than a structured interview
(b) The structured interview is useful if a large number of candidates have to be interviewed
(c) In an unstructured interview the candidate is allowed to talk freely on general questions
(d) Structured interviews are mechanical and may convey disinterest to the candidate
(e) Structured interviews do not allow the interviewer to probe interesting or unusual issues that may arise
during the interview.
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34. As per the Ohio State Studies, limiting the self-guidance of the follower and specifically defining procedures for
followers task performance may be referred to as
(a) Position power
(b) Initiating structure
(c) Maturity
(d) Consideration
(e) Relationship behavior.
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35. With respect to the various types of controls, which of the following statements is not true?
(a) Steering controls are used following completion of activity
(b) Preventive controls are used prior to the start of activity and feedback controls follow completion of
activity
(c) Concurrent controls are used during the performance of activity and feedforward controls prior to start of
activity
(d) Quality control tests of output are an example of concurrent control
(e) Comparison of employee input per hour with established standards is an example of steering control.
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36. As the future cannot be predicted with absolute accuracy, career plans are developed in an environment of
uncertainty. In this uncertainty, what should an individual do to formulate a career strategy?
(a) Develop contingency plans
(b) Develop long-range personal and professional goals
(c) Analyze environment threats and opportunities
(d) Develop short-range career objectives and action plans
(e) Monitor progress.
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37. Information is one of the important resources for managers. For information to be useful to managers, it must
possess certain attributes. The information attribute which is oriented towards past, present or future activities and
events is known as
(a) Information time horizon
(b) Information timeliness
(c) Information relevance
(d) Information frequency
(e) Information scope.
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38. Graphic Rating Scales and Behaviorally Anchored Rating Scales (BARS) are behavior-oriented performance
assessment tools. Which of the following is not true about BARS?
(a) BARS minimizes subjective interpretation inherent in graphic rating scales
(b) BARS makes use of ‘anchors’ (common reference points of performance)
(c) BARS concentrates on job-specific behaviors and hence is highly meaningful
(d) BARS is a simple and cost-effective rating method
(e) BARS can be applied in organizations where a large number of people perform similar jobs.
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39. Managers vary in their assumptions about people working in an organization. Which of the following manager
types would best describe an individual who believes that most people dislike work and will avoid it whenever
possible?
(a) Creative manager
(b) Transformational manager
(c) Theory Y manager
(d) Theory X manager
(e) Autocratic manager.
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40. Which of the following is not a strength of appraisal against verifiable objectives?
(a) Luck plays an important role in the performance of an individual
(b) It is operational in nature
(c) There is credibility because the appraisal is objective in nature
(d) It is carried out with mutual cooperation from superiors and subordinates
(e) It does not form a separate component from the job.
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41. The process of performance appraisal occurs both informally and formally. Which of the following is/are true
about informal appraisals?
I. They usually occur on a day to day basis.
II. Superior’s rating, peer assessment and subordinate rating are the approaches used in informal appraisals.
III. The feedback is usually spontaneously expressed or alternatively the subordinate can get immediate
feedback from the superior as and when the job is completed.
(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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42. Several theories of motivation have been developed by various behavioral scientists. David C. Mc Clelland
contributed to the understanding of motivation by identifying which of the following needs?
I. Affiliation need.
II. Achievement need.
III. Power need.
IV. Physiological need.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (III) above.
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
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43. In the Japanese management style, the management function of controlling is characterized by
I. Control by superior.
II. Focus on individual performance.
III. Saving face.
IV. Extensive use of quality control circles.
(a) Both (I) and (II) above
(b) Both (III) and (IV) above
(c) (I), (II) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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44. A wide range of factors affect a given plan which can be grouped as: facts, risk and uncertainty. Which of the
following is/are not true about these three factors?
I. Known things about a task such as manpower requirements, machine capacity, costs etc. are called facts.
II. Sum of the elements of uncertainty is more than the sum of facts and risks.
III. Uncertainty arises from risk.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) Both (II) and (III) above.
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45. Which of the following control systems do lower-level managers’ use more frequently?
I. Financial control system.
II. Budgetary control system.
III. Quality control system.
IV. Inventory control system.
(a) Both (I) and (II) above
(b) Both (II) and (III) above
(c) Both (III) and (IV) above
(d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
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46. Several kinds of tests used in the selection process. Which of the following selection tests explore alertness,
comprehension and reasoning abilities of applicants?
(a) Work Sampling tests
(b) Knowledge tests
(c) Personality tests
(d) Intelligence tests
(e) Performance tests.
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47. The inability of organizations to adapt to the changing environment is called
(a) Organizational inflexibility
(b) Organizational conflict
(c) Retrenchment
(d) Organizational restructuring
(e) Grapevine.
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48. Which of the following is not an application of office automation systems?
(a) Voice mail
(b) Internet
(c) Groupware
(d) Teleconferencing
(e) Graphics.
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49. Manager inventory chart is used in replacement planning of human resource management in an organization.
Which of the following cannot be a possible disadvantage of the manager inventory chart?
(a) A fair assessment of the individual cannot be made using the data on the chart
(b) It does not show the position to which a manager may be promoted
(c) Updating the chart is time consuming and requires a lot of effort
(d) Top-level managers may be reluctant to share their charts with other top level managers
(e) Managers who do not perform satisfactorily cannot be identified.
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50. Productivity can be improved through several techniques. Which of the following techniques involves analyzing
the operations of the product or service, estimating the value of each operation, and modifying or improving the
operation so that the cost is reduced?
(a) Time-event networks
(b) Value engineering
(c) Work simplification
(d) Quality circles
(e) Total quality management.
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51. With respect to the equity theory, when employees perceive an inequity, they might resort to all of the following
except
(a) Resign from the organization
(b) Induce others to change their inputs or outcomes
(c) Change their own inputs or outcomes
(d) Work harder on their job
(e) Reduce quantity or quality of output.
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52. The selection process involves choosing the candidates who best meet the qualifications and have the greatest
aptitude for the job. There are various steps in the selection process. Which of the following steps usually precedes
the others in the selection process?
(a) Selection test
(b) Comprehensive interview
(c) Application blank
(d) Reference check
(e) Physical examination of the candidate.
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53. Which of the following statements is/are true about executive support systems?
I. They provide market intelligence, investment intelligence and technology intelligence.
II. They make greater use of analytical models and are less interactive.
III. They support decision-making at the top level of management.
(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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54. Which of the following factors will be least likely to enhance the quality of the controlling process?
(a) Making the control activities the goals of the control process
(b) Instituting different kinds of organizational goals
(c) Taking timely corrective action
(d) Communicating the mechanics of the control process
(e) Recognizing good performance.
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55. One of the underlying assumptions of direct control is that performance can be measured. The performance of
which of the following cannot be measured, thus making measurement a shortcoming?
I. Creativity.
II. Foresight and judgement in decision-making.
III. Inputs and outputs.
IV. Effectiveness of research.
(a) Only (I) above
(b) Both (I) and (III) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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56. Which of the following is not a limitation of operations research?
(a) The magnitude of calculations hikes up the cost of operations research
(b) Qualitative factors such as human resources cannot be quantified
(c) It emphasizes the logical physical presentation of a problem in the form of a model
(d) There is a gap between practicing managers and trained operations researchers
(e) It provides solutions only when all elements related to a problem are quantified.
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57. In a performance appraisal system, managers can obtain information from an individual’s inputs, activities
performed and outputs. Performance appraisal based on this information leads to corrective actions. In this context,
which if the following would fall under ‘activities performed’ by an individual?
(a) Employee skills
(b) Job performance
(c) Goods produced
(d) Results obtained
(e) Training.
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58. In which leadership style did Lewin find work quality and group satisfaction to be the highest?
(a) Transactional
(b) Laissez-faire
(c) Autocratic
(d) Democratic
(e) Transformational.
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59. In which of the following responsibility centers, does the control system examine the role of assets in generating
profit apart from measuring the monetary value of inputs and outputs?
(a) Profit centers
(b) Investment centers
(c) Revenue centers
(d) Standard cost centers
(e) Discretionary expense centers.
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60. One important issue involving leadership is the argument that managers and leaders are not necessarily one and
the same. As per the argument, a major difference between management and leadership is that leadership
includes
(a) Bringing together resources to achieve organizational goals
(b) Designing organizational structures
(c) Bringing about order and consistency
(d) The ability to inspire people
(e) Drawing up formal plans.
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61. Of the various leadership styles suggested by the path-goal theory, which of the following statements is/are true
about ‘instrumental leadership’?
I. It involves creating a pleasant organizational climate.
II. It involves providing clear guidelines to subordinates.
III. It shows concern for subordinates.
IV. It corresponds to task-centered leadership described in other leadership theories.
(a) Only (II) above
(b) Both (I) and (III) above
(c) Both (II) and (IV) above
(d) (I), (II) and (III) above
(e) (I), (III) and (IV) above.
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62. Which is the control system that helps the manger to match actual and the planned revenues and various
organizational activities?
(a) Financial control
(b) Budgetary control
(c) Quality control
(d) Inventory control
(e) Systems control.
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63. Which financial control element, describes the company in terms of its assets, liabilities and net worth?
(a) Balance sheet
(b) Income statement
(c) Budget
(d) Ratio analysis
(e) Cash flow statement.
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64. “Successful leaders adapt their styles to the demands of a situation” is the theme of which of the following
leadership theories?
(a) Hersey and Blanchard
(b) Vroom-Yetten
(c) Path-goal
(d) Fiedler’s contingency
(e) Likert’s system of management.
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65. Which of the following theories proposes that the factors that help prevent dissatisfaction on the job do not
necessarily lead to satisfaction?
(a) Vroom's expectancy theory
(b) Adam's equity theory
(c) Herzberg's motivation-hygiene theory
(d) McClelland's three-needs theory
(e) Mc Gregor’s theory X.
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66. Which of the following forms of control regulates the activities or methods an organization uses to produce the
goods and services it supplies to customers and clients?
(a) Strategic control
(b) Tactical control
(c) Operational control
(d) Human resources control
(e) Financial control.
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67. The theory that states that it is a leader's job to assist followers in attaining their goals and to provide the necessary
direction and support is
(a) Fiedler's contingency model
(b) Path-goal theory
(c) Hersey and Blanchard's model
(d) The Ohio State studies
(e) The managerial grid.
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68. The effectiveness of a formal performance appraisal system depends on the quality of control techniques used.
Which of the following is/are control techniques used in a formal appraisal system?
I. Standards.
II. Information.
III. Corrective action.
(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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69. Which of the following statements about revenue centers is/are true?
I. Sales and marketing departments are examples of revenue centers.
II. In revenue centers, outputs are measured in monetary terms and directly compared with input costs.
III. A revenue center cannot be responsible for changes in profit levels.
(a) Only (II) 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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70. A PERT network is an important tool for improving productivity in an organization. The network depicts the
sequence of activities needed to complete a project and the
(a) Costs associated with each activity
(b) Time required for each activity
(c) Stage of project reached
(d) Manpower required by each activity
(e) Cumulated amount of work completed.
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71. In non-directive counseling, a manager should
I. Raise appropriate questions.
II. Create an atmosphere of privacy to help the employee communicate freely.
III. Encourage the employee to find solutions through examples set by others.
(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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72. Which of the following does not constitute a set of decisions that are included in an operations management
program?
(a) Capacity decisions
(b) Facilities decisions
(c) Quality decisions
(d) Materials/inventory decisions
(e) Budgeting decisions.
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73. Which of the following 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?
(a) Economic order quantity
(b) Linear programming
(c) Reorder point
(d) Kanban
(e) Distribution logistics.
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74. Which of the following is an on-the-job training technique?
(a) Organizational socialization
(b) Creation of “assistant-to” positions
(c) Performance appraisal
(d) Job enlargement
(e) Job analysis.
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75. Which of the following is/are advantages of preventive control?
I. Greater accuracy at work is achieved.
II. Corrective actions improve the processes and make them more effective.
III. It discourages managers implementing controls through self exercised control.
(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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76. Which of the following is computer software that displays spatial data from the real world such as giving the
position of objects with respect to a known coordinate system or place, describes their attributes and provides
numerous details about objects?
(a) Geographical information system
(b) Transaction processing system
(c) Office automation system
(d) Decision support system
(e) Executive support system.
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77. Sheetal’s supervisor just told her that if she works overtime this weekend she could have two days off next week.
Last month Sheetal worked one weekend and still has not received her promised two days off. This is an example
of which variable in Vroom’s expectancy theory?
(a) Effort-performance linkage
(b) Performance-reward linkage
(c) Effort-reward linkage
(d) Attractiveness
(e) Instrumentality.
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78. To help managers decide which leadership style to choose, particularly when decisions had to be made,
management scholars Robert Tannenbaum and Warren H. Schmidt devised a continuum of leader
behaviors. Which of the following are approaches at the two ends of this continuum?
(a) Employee centered and job centered
(b) Initiating structure and consideration
(c) Position power and task structure
(d) Task and relationship
(e) Boss-centered and subordinate-centered.
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79. Productivity is one of the major concerns of managers as it helps organizations survive in a competitive
environment. Which of the following is/are factor(s) that affect productivity?
I. Time spent by employees in learning new technology reduces their productivity.
II. Social and legal obligations make it necessary for organizations to employ people without adequate skills.
III. Workers going on strike as they believe that employers are exploiting them by increasing their workload on
the pretext of improving productivity.
(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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80. Blake and Mouton’s Managerial Grid is an approach to defining leadership styles based on a manager’s concern
for people and concern for production. Which of the following styles of management assumes that exertion of
minimum effort to get required work done is appropriate to sustain organization membership?
(a) Authority-obedience management
(b) Team management
(c) Country Club management
(d) Impoverished management
(e) Organization-man management.
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81. With respect to the three management models by Raymond E. Miles, which of the following is/are assumption/s
of the ‘human relations model’ of management?
I. People want to contribute to meaningful goals.
II. Most people can exercise far more creativity, responsible self-direction and self-control than their present
jobs demand.
III. People desire to belong and to be recognized as individuals.
IV. What workers do is less important than what they earn for doing it.
(a) Only (III) above
(b) Only (IV) above
(c) Both (I) and (II) above
(d) Both (III) and (IV) above
(e) (I), (II) and (III) above.
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82. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes. Which
of the following is a traditional way of coping with conflict and involves agreeing in part with the other person's
point of view?
(a) Problem Solving
(b) Forcing
(c) Smoothing
(d) Compromise
(e) Avoidance.
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83 Which of the following is/are financial statements used by managers, creditors, investment analysts, shareholders,
unions and other stakeholders to evaluate the performance of the organization?
I. Balance sheet.
II. Income statement.
III. Ratio analysis.
(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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84. Human resource planning consists of resource demand forecasting and resource supply forecasting. Which of the
following does not pertain to human resources supply forecasting?
(a) Current inventory
(b) Turnover rate
(c) Strategic plans
(d) Production levels
(e) Movement among jobs rate.
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85. Which of the following statements is not true of internationalization of organizations?
(a) To reach organizational objectives, management may extend its activities to include an emphasis on
organizations in foreign countries
(b) In general, the larger the organization, the greater the likelihood that it participates in international
activities of some sort
(c) A manager’s failure to understand different national sovereignties, national conditions, and national
values and institutions can lead to poor investment decisions
(d) Personal adjustments that employees of multinational corporations must make can influence how
productively they work
(e) Generally speaking, a multinational organization transcends any home country, whereas a transnational
organization does not.
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86. As per Maslow’s categorization of needs, which of the following elements at the workplace would constitute
‘social needs’?
I. Appropriate office layout.
II. Opportunity to handle challenging projects.
III. Teamwork.
IV. Wages.
(a) Both (I) and (III) above
(b) Both (II) and (IV) above
(c) (I), (II) and (III) above
(d) (I), (III) and (IV) above
(e) (II), (III) and (IV) above.
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87. Many opportunities for manager development can be found on the job. One such opportunity is cross-training.
Cross-training is also called
(a) Job enrichment
(b) Job enlargement
(c) Job satisfaction
(d) Job rotation
(e) Job sharing.
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88. In which of Likert’s systems of management are managers autocratic – retaining all decision-making powers,
hardly trusting subordinates, and using negative motivation tactics like fear and punishment?
(a) Benevolent-authoritative
(b) Consultative
(c) Participative
(d) Participative-authoritative
(e) Exploitative-authoritative.
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89. Amongst the orientation toward international business, which attitude regards home-country practices as superior
to foreign-country practices?
(a) Regiocentric
(b) Ethnocentric
(c) Polycentric
(d) Geocentric
(e) Isocentric.
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90. Ratio is an index that measures one variable relative to another and is generally expressed as a percentage or a rate.
The ratio that tests how leveraged an organization is, may be referred to as
(a) Current ratio
(b) Return-on-investment
(c) Debt ratio
(d) Net profit margin
(e) Inventory turnover ratio.
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91. Which of the following is/are not assumptions on which Edgar H. Schein based his study of human behavior?
I. Rational- economic assumptions.
II. Social assumptions.
III. Self-actualization assumptions.
IV. Physiological assumptions.
(a) Only (IV) above
(b) Both (I) and (II) above
(c) Both (II) and (IV) above
(d) Both (III) and (IV) above
(e) (I), (II) and (III) above.
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92. Which of the following is/are disadvantage/s of internal recruitment?
I. Unsuccessful contenders may become disgruntled.
II. Selection is more susceptible to office politics.
III. The probability of mistake is higher.
IV. The new employee may have a slower start because of the need for organization orientation.
(a) Only (I) above
(b) Both (I) and (II) above
(c) Both (II) and (IV) above
(d) Both (III) and (IV) above
(e) (I), (II) and (III) above.
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93. Which of the following is the ability to develop new ideas and is a function of knowledge, imagination, and
evaluation?
(a) Innovation
(b) Entrepreneurship
(c) Creativity
(d) Intrapreneurship
(e) Change.
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94. Which of the following is/are the characteristics of the ‘leading’ function adopted in US Management style?
I. Leader acting as a social facilitator and group member.
II. Paternalistic style of management.
III. Often divergent values, individualism that sometimes hinders cooperation.
IV. Face-to-face confrontation; emphasis on clarity.
V. Communication primarily top-down.
(a) Both (I) and (II) above
(b) (I), (II) and (IV) above
(c) (II), (III) and (V) above
(d) (III), (IV) and (V) above
(e) (I), (III), (IV) and (V) above.
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95. Which of the following actions does an organization undertake, if manpower demand is high and manpower
supply is low?
I. Outplacement.
II. Layoffs.
III. Internal promotions.
IV. Training and development.
(a) Only (II) above
(b) Both (I), and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (IV) above
(e) (I), (III) and (IV) above.
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96. According to Bernard M. Bass, a transformational leader displays or creates
I. Charisma.
II. Inspiration.
III. Intellectual stimulation.
IV. A feeling that each individual follower counts.
(a) Only (I) above
(b) Both (I) and (IV) above
(c) Both (II) and (III) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
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97. Human resource management is the management of various activities that are designed to enhance the
effectiveness of an organization’s manpower in achieving organizational goals. Which of the following is not a
part of the human resource management function in most organizations?
(a) Sanctioning
(b) Performance appraisal
(c) Training
(d) Human resource planning
(e) Compensation.
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98. Organizations make use of five major types of information systems. Which of the following systems records any
event or activity that involves the interaction of the organization with external agents?
(a) Transaction processing system
(b) Office automation system
(c) Decisions support system
(d) Executive support system
(e) Management information system.
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99. Which of the following is usually the first step followed in the recruitment procedure?
(a) Designing job description
(b) Developing a job specification
(c) Performing job analysis
(d) Attracting a pool of applicants
(e) Selecting best recruits.
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100. Simulation models are used in which of the following steps of operations research?
(a) Formulating the problem
(b) Constructing a mathematical model
(c) Testing the method
(d) Providing controls
(e) Putting the solution into effect.
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