Question Paper
Introduction to Management (MB111) January 2006
• Answer all questions.
• Each question carries one mark.
1. 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.
2. Leadership expert, Bernard M. Bass, was the main proponent of transformational leadership. Which of
the following behaviors is most consistent with transformational leadership?
(a) Letting subordinates know what is expected of them
(b) Showing concern for the well-being and needs of subordinates
(c) Consulting with subordinates, encouraging their suggestions and carefully considering their ideas
when making decisions
(d) Motivating individuals to perform beyond normal expectations by inspiring subordinates to focus
on broader missions that transcend their own immediate interests
(e) Managers solving the problems or making the decisions themselves.
3. Value engineering involves four steps as stated below. What is the correct sequence of these steps?
I. Identifying each part’s relative contribution value to the final unit or product.
II. Dividing the product into parts and operations.
III. Finding a new approach for the items of high cost and low value.
IV. Identifying the costs for each part and operation.
(a) (I), (II), (III), (IV) (b) (II), (I), (III), (IV) (c) (II), (IV), (I), (III)
(d) (IV), (III), (II), (I) (e) (III), (II), (IV), (I).
4. 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.
5. Which of the following is a form of conformity whereby group members withhold information or
discussion in order to give the appearance of agreement?
(a) Group conformity (b) Groupthink (c) Minority domination
(d) Group domination (e) Logrolling.
6. Which of the following is/are potential barriers to successful controlling?
I. Overemphasizing short-term production as opposed to long-term production.
II. Periodic review of standards.
III. Inflexibility.
IV. Identification of only major exceptions.
(a) Only (III) above (b) Only (IV) above
(c) Both (I) and (III) above (d) Both (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
7. Which of the following is not a step in the controlling process?
(a) Taking corrective action
(b) Establishing planned activities
(c) Comparing performance to standards
(d) Measuring performance
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(e) Analysis of causes of deviation.
8. An objective is the object or aim of an action. Management by Objectives (MBO) is a management
process that is popular in many organizations. It is the joint setting of goals and objectives by superiors
and subordinates. A major difference between traditional objective setting and MBO is
(a) In MBO, there are multiple objectives covering a range of organizational activities
(b) In traditional objective setting; the objectives, once formulated, provide direction for management
decisions
(c) In traditional objective setting; the objectives, once established, form the criteria against which
actual accomplishments can be measured
(d) In MBO, organization members may actually pursue objectives other than the formal
organizational objectives
(e) Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’
process.
9. In Japanese Management style, the staffing function is characteristic of
I. Young people hired out of school.
II. Rapid advancement desired.
III. Slow promotion through ranks.
IV. Promotions based on multiple criteria.
V. Appraisal of short-term results.
(a) (I), (II) and (III) above (b) (I), (III) and (IV) above
(c) (I), (III) and (V) above (d) (II), (III) and (IV) above
(e) (II), (IV) and (V) above.
10. Various leadership studies were conducted in the past to explain and understand leadership. Which of
the following leadership studies called the dimensions of leadership behavior "initiating structure" and
"consideration"?
(a)
(b) Blake and Mouton's managerial grid
(c) House's path-goal theory
(d)
(e) Fiedler’s contingency approach.
11. 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.
12. Which of the following is/are finding(s) of Hawthorne Studies?
I. Workplace culture sets its own production standards.
II. Fatigue is the main factor affecting the output.
III. Job performance depends on the individual worker.
(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.
13. The bargaining power of buyers, as described by Porter, is high when
(a) There are only a few players in the industry
(b) Their purchases form a large chunk of the sellers’ total sales
(c) There are no substitutes for products being purchased
(d) Products or services are critical to the buyer’s business
(e) There are great differences in products, in terms of features, manufactured by various suppliers.
14. Every company wants to gain competitive advantage over its competitors. If a company is able to be
unique in its industry in a manner widely valued by the market, it is likely to follow a
(a) Diversification strategy (b) Differentiation strategy
(c) Focus strategy (d) Cost-leadership strategy
(e) Growth strategy.
15. From the viewpoint of line personnel, major reason(s) for line-staff conflict is that staff personnel
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I. Encroach line authority.
II. Dilute the authority of line managers.
III. Take credit for success.
IV. Lack a first-hand experience of operations.
(a) Only (I) above (b) Only (IV) above
(c) Both (I) and (II) above (d) Both (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
16. Which controls are probably least useful when exact measurement is difficult and the environment is
fluctuating rapidly?
(a) Strategic (b) Tactical (c) Administrative
(d) Performance (e) Production.
17. Amit Vaish believes that work is as natural as play or rest and, therefore, employees should exercise
self-direction and self-control to accomplish objectives. He believes employee involvement in decisionmaking
is essential to the long-term success of his company. What kind of manager does Mr. Amit
appear to be?
(a) Theory X manager (b) Theory Y manager (c) Theory Z manager
(d) Inner-directed manager (e) Democratic manager.
18. Operations Management is a tool by which management can create and improve upon its operations.
Which of the following statements is true regarding Operations Management?
(a) Operations managers are not found in the service sector
(b) Operations Management is concerned with only the input stage of product development
(c) The outputs of the operations system include both goods and services
(d) Labor is part of the transformation stage and is not considered an input
(e) The techniques of Operations Management are not applicable to other disciplines such as finance,
marketing and human resource management.
19. Every organization structure, even a poor one, can be charted. Which of the following is false with
respect to ‘Organization Chart’?
(a) It is a vital tool for providing information about organizational relationships
(b) It provides a visual map of the chain of command
(c) Charting an organization structure can show up the complexities and inconsistencies, which can be
corrected
(d) It shows authority relationships as well as informal and informational relationships
(e) It helps managers and new personnel to know how and where they fit into the organization
structure.
20. 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.
21. Tina is the department chair of a local college. She is preparing the 2005 schedule of classes. She
knows approximately how many students will be in the classes from the pre-registration that is required.
She also knows how many faculty members are available and which classes they can teach. As she
prepares the 2005 schedule of classes, unless something extraordinary occurs, she is operating under the
condition of
(a) Uncertainty (b) Certainty (c) Risk (d) Probability (e)
Minimax.
22. When all managers within an organization are involved in various ways in the management of the
organization, it is referred to as
(a) Top-down management (b) Bottom-up management
(c) Unity of command (d) Unity of direction
(e) Centralization.
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23. Organizational development (OD) is a systematic, integrated and planned approach to improve
enterprise effectiveness. Which of the following are strategies developed and initiated with the help of a
change agent, used in organizational development?
(a) Interventions (b) Plans (c) Policies
(d) Innovations (e) Programs.
24. Which characteristic of an open system pertains to the ability of a system to repair itself, survive, and
grow by importing resources from its environment and transforming them into outputs?
(a) Negative entropy (b) Cycle of events
(c) Feedback mechanisms (d) Dynamic homeostasis
(e) Equifinality.
25. A decision maker is faced with the following scenario: no alternative is clearly correct, past decisions
are of little help, and, therefore, a unique decision must be made. Which of the following terms best
describes this form of decision?
(a) Programmed decision (b) Nonprogrammed decision
(c) Preprogrammed decision (d) Post-programmed decision
(e) Risk programmed decision.
26. Which of the following appraises an organization’s position and helps it determine where it is, where it
is heading with its current plans and programs, whether it is meeting its objectives, and whether any
revision of plans is required to enable the organization to achieve its predefined goals and objectives?
(a) Management audit (b) Social audit
(c)
(e) Operational audit.
27. Which of the following models places equal “very strong emphasis” on all three of the leadership
perspectives – the leader, the follower, and the situation?
(a) Blake and Mouton’s Managerial Grid
(b) Fiedler’s Contingency Leadership Model
(c) House’s Path-Goal Theory
(d) Vroom and Yetton’s Normative Decision Model
(e) Hersey and Blanchard’s Situational Leadership Model.
28. 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) One of the primary reasons for internationalization is exploring new markets
(e) What works at home is always appropriate in another nation.
29. To overcome the criticisms of Maslow's Need Hierarchy theory, motivation researcher Clayton Alderfer
proposed an alternative theory known as ERG theory. Which of the following is not true about
Alderfer's ERG theory?
(a) Alderfer proposed a condensed version of Maslow's Need Hierarchy theory with only three groups
of core needs, viz., existence, relatedness and growth
(b) The existence needs are related to Maslow’s physiological and safety needs
(c) The relatedness needs are the desire to establish and maintain interpersonal relationships
(d) The growth needs are the desires to be creative and to have opportunities for personal
development
(e) ERG theory assumes a rigid hierarchy where a lower level need must be substantially gratified
before one can move on.
30. From the delegator’s aspect, which of the following is not a factor that affects delegation of authority?
(a) Love for authority (b) Fear of exposure
(c) Personality traits of the superior (d) Lack of self confidence
(e) Experiences of the superior.
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31. Among the characteristics of an open system, which of the following is an organization’s tendency
towards adjusting and maintaining itself in an ‘optimal situation’ in order to survive and continue
performing its tasks?
(a) Equifinality (b) Negative entropy
(c) Differentiation (d) Dynamic homeostasis
(e) Cycle of events.
32. Which of the following are the characteristics of the planning process usually adopted in the
Management style?
I. Short-term orientation.
II. Collective decision-making.
III. Decisions initiated at the top, flowing down.
IV. Fast decision-making.
V. Slow decision-making.
(a) (I), (II) and (III) above (b) (II), (III) and (IV) above
(c) (I), (III) and (IV) above (d) (II), (III) and (V) above
(e) (I), (IV) and (V) above.
33. All of the following would be considered to be steps in refreezing change effectively except
(a) Create early wins and reinforce desired behavior
(b) Help people see the progress of the change
(c) Tie every success to monetary reward
(d) Repeat the messages of the old and new maps over and over again
(e) Balance the new restraining forces and driving forces.
34. 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.
35. Which of the following involves a graphic representation of alternative courses of action and the
possible outcomes and risks associated with each action?
(a) Decision tree (b) Risk analysis (c) Utility theory
(d) Incremental analysis (e) Rational analysis.
36. JIT (Just-In-Time) inventory control is an approach to inventory control, which stipulates that materials
should arrive just, as they are needed, in the production process. Which of the following would
generally not be associated with a successful JIT program, for the purpose of inventory control?
(a) Well-organized receiving and handling of materials purchased from suppliers
(b) Strong management commitment
(c) Suppliers located in diverse and distant locations
(d) High quality of materials purchased from suppliers
(e) Dependable and long-lasting relationships with suppliers and customers.
37. Which of the following skills implies the ability to solve problems in ways that will benefit the
enterprise?
(a) Conceptual (b) Design (c) Human
(d) Technical (e) Administrative.
38. Program Evaluation and Review Technique (PERT), which is a logical extension of Gantt Chart, can be
used as a tool to improve productivity in an organization. PERT is especially useful in scheduling
(a) Plans (b) Processes (c) Projects
(d) Programs (e) Policies.
39. 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
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(c) It is a carryover from Post-World War II influences from Americans
(d) The Japanese government mandates it
(e) Their management style differs from that of Americans.
40. The process of identifying and attempting to attract candidates who are capable of effectively filling up
job vacancies is called
(a) Rushing (b) Recruitment (c) Selection
(d) Enlistment (e) Enrollment.
41. Control is an essential part of every organization. The management process is incomplete and
sometimes useless without the control function. Control function plays an important role of assisting
managers in
I. Coping with uncertainty.
II. Detecting irregularities in the organizational activities.
III. Centralizing authority.
IV. Avoiding complex situations.
(a) Both (I) and (II) above (b) Both (I) and (III) above
(c) Both (II) and (III) above (d) Both (III) and (IV) above
(e) Both (I) and (IV) above.
42. Which of the following is an approach to systematic job analysis?
(a) Job design (b) Job enlargement
(c) Position analysis questionnaire (d) Job description analysis
(e) Functional job specification
43. According to Henri Fayol’s principles, Espirit de Corps means
(a) Discipline (b) Equity (c) Sense of union
(d) Unity of command (e) Unity of Direction.
44. Which of the following is/are rule(s) observed in brainstorming?
I. The ideas are accepted only after due criticism from all members.
II. The emphasis is on obtaining as many ideas as possible.
III. Participants are encouraged to contribute towards improving the ideas of the other participants in
the group.
IV. The more radical the ideas, the more effective they make the brain storming technique.
(a) Only (II) above (b) Only (IV) above
(c) Both (I) and (III) above (d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
45. There can be different sources of resistance to change. For analytical purposes, they can be categorized
as individual and organizational sources. Which of the following is an organizational source of
resistance to change?
(a) Habit (b) Structural inertia
(c) Security (d) Fear of the unknown
(e) Selective information processing.
46. Which of the following factors does not enrich the job?
(a) Allowing the workers do their work independently
(b) Encouraging participation and involvement of workers
(c) Giving the workers financial incentives
(d) Providing feedback to the employees about the importance of their tasks to the finished product
(e) Giving people feedback on their job performance.
47. Performance rating can either be behavior-oriented or results-oriented. Within the behavior-oriented
category, two assessment means are Graphic Rating Scales and Behaviorally Anchored Rating Scales
(BARS). Which of the following is not true with regard to 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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48. Which of the following is not a type of information system?
(a) Transaction processing system (b) Office automation system
(c) Management information system (d) Decision support system
(e) Customer support system.
49. Decentralization applies to the systematic delegation of authority in an organization-wide context. In
which of the following cases would a company be least likely to adopt a decentralized structure?
(a) The product line is homogeneous
(b) The raw materials are distantly located
(c) Quick decisions have to be taken
(d) Creativity is desirable
(e) Comparison of performance of different organizational units is needed.
50. 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.
51. 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.
52. The major disadvantage of the divisional structure is
(a) High administration costs
(b) It requires people with general managerial capabilities
(c) Managerial vacuum
(d) Duplication of activities and resources
(e) It is slow in responding to changes.
53. Which of the following is not true about the differences between authority and power?
(a) Authority is the right to do something; power is the ability to do something
(b) Authority is the legitimate power given by an organization to a member holding a position; power
requires no formal position
(c) Authority is derived only through position; power is derived through many sources
(d) Authority is a broader concept; power is a narrow concept
(e) Authority can be delegated; power cannot be delegated.
54. Social audit is a technique for
(a) Measuring the social infrastructure within an organization
(b) Measuring the social impact of an organization in relation to its stakeholders
(c) Measuring the level of success or failure of an innovation
(d) Showing a total picture of how a business will operate
(e) Independent appraisal of an organization’s management by an outside firm.
55. Which of the following statements is not true of line authority?
(a) A line manager has expertise in a specialized field
(b) A line manager directs others
(c) A line manager delegates authority
(d) A line manager has veto power
(e) A line manager exerts control over subordinates.
56. Which of the following are characteristics of a closed system?
I. It is perfectly deterministic and predictable.
II. There is no exchange between the system and the external environment.
III. It is a realistic view.
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IV. It is flexible and adaptable.
(a) Both (I) and (II) above (b) Both (I) and (IV) above
(c) Both (II) and (III) above (d) Both (III) and (IV) above
(e) (I), (II) and (III) above.
57. Despite the many advantages of planning, there may be some obstacles and limitations in this process,
since nothing is perfect on this earth, as a general rule of law. Which of the following would not be
considered a potential advantage of planning?
(a) It helps mangers to be future oriented
(b) It enhances decision coordination
(c) It increases the amount of time available for other managerial functions
(d) It emphasizes organizational objectives
(e) It helps in offsetting uncertainty and risk.
58. Which theory of motivation highlights the need for achievement, need for affiliation and the need for
power?
(a) Maslow’s need theory (b) McClelland’s needs theory
(c) Herzberg’s two factor theory (d) Alderfer’s ERG theory
(e) The Porter-Lawler model.
59. In order to manage their businesses effectively, successful global management requires
(a) Rigid application of home-country practices
(b) Biasness towards home-country managers
(c) Recruitment of people mainly from the home country
(d) Enhanced sensitivity to differences in national customs and practices
(e) Ignoring the differences in cultural values across various countries.
60. Shivani Sondhi has been assigned the task of planning a strategy to enhance creativity in her
organization. Which of the following would be the best suggestion for Ms. Sondhi to explore, in order
to meet her objective of enhancing creativity?
(a) Mandate that all employees think creatively
(b) Hire a Vice-President of Creativity
(c) Use diversity in the organization to expand perspectives on creative efforts – stress conformity less
(d) Creativity in an organization is either there or it is not – it is a natural process and cannot be
controlled
(e) Conduct a training program.
61. The strengths and weaknesses of each alternative become obvious in which step of the decision makingprocess?
(a) Identifying the problem (b) Identifying the decision criteria
(c) Analyzing the alternatives (d) Implementing the alternative
(e) Obtaining the needed resources.
62. The theory that an individual tends to act in a certain way, with the expectation that the act will be
followed by a given outcome and according to the attractiveness of the outcome is
(a) Vroom’s expectancy theory
(b) Adam’s equity theory
(c) Herzberg’s motivation-hygiene theory
(d) McClelland’s three-needs theory
(e) Maslow’s need hierarchy theory.
63. 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 tells whether the information pertains to
the situation at hand or not, is known as
(a) Information accuracy (b) Information timeliness
(c) Information relevance (d) Information completeness
(e) Information frequency.
64. Which of the following is a broad approach to job enrichment?
(a) Value engineering (b) Social responsiveness
(c) T Group training (d) Total quality management
(e) Quality of work life.
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65. According to Kurt Lewin, a leader who allows his employees complete freedom to make decisions and
to complete work in whatever way they think is best, is using which leadership style?
(a) Democratic-participative (b) Laissez-faire
(c) Autocratic (d) Democratic-consultative
(e) Team management.
66. Performance appraisals are important in an organization because they
I. Provide systematic judgements to support promotions.
II. Provide a basis for coaching.
III. Provide a basis for counseling.
IV. Let subordinates know where they stand with the boss.
(a) Only (I) above (b) Only (II) above
(c) Both (I) and (IV) above (d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
67. According to the Japanese management practices, what refers to “my/one’s company” where people are
treated as family members?
(a) Ringi (b) Henko (c) Kacho
(d) Kaisha (e) Habatsu.
68. Mary Chu is honored to finally be able to visit her home country of
be personally fulfilled by visiting ancient Chinese religious sites and historical monuments that she has
heard of all her life. To Mary, this visit will be the crowning accomplishment in her life and will help
her to raise her own talents because of the expertise gained. Which of Maslow's Need Hierarchy
categories would most likely apply in the above situation?
(a) Security (b) Social (c) Esteem
(d) Basic (e) Self-actualization.
69. When Sony first introduced the laser disk as a new way to view movies, it was classified as a
_________ because it had high market attractiveness but low relative market share. The product was
eventually withdrawn from the market place as VHS technology and DVDs became more popular.
(a) Question mark (b) Star (c) Cash cow (d) Dog (e) Cat.
70. 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.
71. Inventory is vital to organizations, as it represents considerable costs. So, various methods have been
developed to control inventory related costs. Which is the inventory control method developed to
minimize ordering and holding costs, while avoiding stock-out costs?
(a) Mathematical model (b) Linear programming
(c) Economic order quantity (d) JIT inventory system
(e) Kanban.
72. Robert Owen was one of the prominent contributors to preclassical management thought. Which of the
following did Robert Owen advocate/propose?
(a) Division of labor
(b) Legislative reforms to improve working conditions of labor
(c) Profit-sharing plan
(d) Study of management
(e) Emphasis on the importance of business skills for running a business.
73. 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.
74. The managerial grid, propounded by Robert Blake and Jane Srygley Mouton, is a well-developed
approach to defining leadership styles. It identifies five distinct leadership styles. According to this grid,
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the (9,9) manager
(a) Gives thoughtful attention to the needs of people, for a satisfying relationship leads to a
comfortable, friendly atmosphere and work tempo
(b) Believes that concern for people and tasks are compatible and that tasks need to be carefully
explained and decisions endorsed by subordinates to achieve a high level of commitment
(c) Believes in compromise, so that decisions are taken but only if endorsed by subordinates
(d) Exerts minimum effort to get required work done
(e) Is task-oriented and stresses the quality of the decision over the wishes of subordinates.
75. The aim of managers is to improve productivity, efficiency and effectiveness. Which of the following
is/are way(s) to improve productivity?
I. By producing more output with the same inputs.
II. By reducing inputs, but maintaining the same level of outputs.
III. By increasing outputs and reducing inputs.
IV. By reducing both inputs and outputs.
(a) Only (I) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
76. If you were attempting to use group decision-making, but the members of the group were located
throughout the world, which of the following group decision-making techniques would be most
attractive?
(a)
(c) Interacting group technique (d) Autocratic decision-making
(e) Brainstorming.
77. Which of the following management information systems is an interactive computer system that
provides managers with the necessary information for making intelligent decisions?
(a) Transaction processing system (b) Decision support system
(c) Office automation system (d) Executive support system
(e) Line support system.
78. Which of the following is not a component of McKinsey’s 7-S framework?
(a) Strategy (b) Structure (c) Shared perceptions
(d) Style (e) Systems.
79. The fact that 70-80 percent of a manager’s time is taken up by his interactions with others, highlights
the need for effective communication for successful management. Which of the following strategies is
not likely to improve communication effectiveness?
(a) Avoiding non-verbal cues
(b) Using simple, unambiguous language
(c) Using active listening techniques
(d) Using appropriate and consistent nonverbal cues
(e) Using the feedback loop in the communication process.
80. Why do such companies as Ford, Federal Express, Boeing, or Proctor & Gamble put together crossfunctional
teams?
(a) Because each member has unique knowledge that adds value to the overall decision
(b) Because it is cheaper than hiring consultants
(c) Because decisions can be reached at almost twice the speed of other decision format styles
(d) Because it diffuses risk (blame) of a wrong decision choice
(e) Because of inadequate availability of manpower.
81. Which theories of work motivation deal with the way different variables combine to influence the
amount of effort people put forth?
(a) Process (b) Content (c) Demand (d) Objectives (e) Needs.
82. The eight key result areas in which Peter Drucker advises managers to set objectives include all of the
following except
(a) Market standing (b) Productivity
(c) Public responsibility (d) Inventory control
(e) Manager performance and development.
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83 Which of the following is not a factor that would make Management by Objectives (MBO) more
effective?
(a) Emphasis on short-term goals (b) Top management support
(c) Formulating clear objectives (d) Training for MBO
(e) Encouraging participation.
84. Which of the following steps in the planning process involves plans to buy equipment, materials, and
hire and train workers?
(a) Formulating supporting plans
(b) Comparing alternatives in the light of goals
(c) Considering planning premises
(d) Identifying alternatives
(e) Numberizing plans by making budgets.
85. 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.
86. Which of the following phrases most accurately describes the term “standards”?
(a) The code around which the organization rallies
(b) Targets of performance
(c) Strategic vision
(d) The mission of the organization
(e) Inherent or distinguishing characteristic of an organization.
87. 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 stretch communication (d) Diagonal communication
(e) Horizontal communication.
88. Which of the following refers to the process that helps new employees adapt to the organization’s
culture?
(a) Grapevine (b) Orientation (c) Socialization
(d) Introduction (e) Training.
89. Which of the following is not true about grapevine?
(a) It refers to the informal communication network present through the organization
(b) It is not bound by the authority relationships defined by the organization
(c) It is inevitable and valuable
(d) It survives on information that is not available to the entire group
(e) It impedes quick and effective communication.
90. 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.
91. As organizations attempt to form international strategy and build organizational structures, the
organization will most likely choose the __________ structure if it has high foreign sales and high
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international product diversity.
(a) Geographic (b) International division
(c) World wide product division (d) Matrix
(e) Divisional.
92. Sanjit Mallik is a new divisional manager who wishes to reorganize his division. His primary problem
seems to be that his subordinates (followers) seem unwilling or unable to grasp the fact that new
learning tasks are necessary before the division can be brought up to its full potential. Which of the
following leadership models or theories would most likely be of use to Mr. Mallik as he prepares to
solve his problem?
(a) Blake and Mouton’s Managerial Grid
(b) Hersey and Blanchard’s Situational Leadership Model
(c) Fiedler’s Leadership Contingency Theory
(d) House’s Path-Goal Theory
(e) Vroom and Yetton’s Normative Decision Model.
93 Which of the following financial ratios measure the ability of an organization to meet its short-term
obligations by using its current assets?
(a) Current (b) Asset management (c) Debt management
(d) Liquidity (e) Profitability.
94. Paresh Patel is concerned about how his family business is going to effectively compete in the crowded
restaurant business environment in
his problems and planning in a correct fashion would be to determine who his direct competitors are
and what their strengths and weaknesses are. At which organizational level is Mr. Patel currently
addressing his planning efforts?
(a) Corporate level (b) Business level (c) Functional level
(d) Operational level (e) Departmental level.
95. Employees are one of the key stakeholders of a business enterprise. Which of the following is not an
obligation or duty of management towards its employees?
(a) Treating workers as main pillars of the organization
(b) Developing administrative processes that promote cooperation between employers and employees
(c) Adopting a progressive labor policy
(d) Providing fair wages and other financial benefits
(e) Charging reasonable prices for their products.
96. Which of the following is/are limitations of Maslow’s hierarchy of needs theory?
I. The theory does not address the fact that needs do not always emerge in a hierarchical manner.
II. The theory does not explain how a person prioritizes the needs at a particular level of hierarchy.
III. Maslow’s categorization of human needs is not exhaustive.
(a) Only (III) above (b) Both (I) and (II) above
(c) Both (I) and (III) above (d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
97. The classical idea of management thought can be divided into two separate schools – the scientific
management and the
(a) Administrative school (b) Classical school
(c) Bureaucratic school (d) Modern school
(e) Neo-classical school.
98. Which of the following is true about conclusions of the trait approach to leadership?
(a) The trait approach identifies traits that consistently separate leaders from non-leaders
(b) There are certain traits that guarantee that a leader will be successful
(c) The trait approach is based on early research that assumes that a good leader is born, not made
(d) Leadership is a simple issue of describing the traits of successful leaders
(e) The trait approach is based on early research that assumes that a good leader is made, not born.
99. There are various means of assessing internal labor supply. Which of the following is a means of
identifying potential candidates to fill specific managerial positions?
(a) Succession Planning (b) Replacement Planning
(c) Resources Planning (d) Requirements Planning
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(e) Operational Planning.
100. 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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