Introduction to Management (MB111): April 2005

Question Paper

Introduction to Management (MB111): April 2005

• Answer all questions.
• Each question carries one mark.
1.
If a manager develops a new idea and gives a plan for development of a new product in his work
< Answer >atmosphere, and explains how various roles are to be played by different people in the organization, then he is carrying out which of the following roles?
(a) Liaison (b) Entrepreneur (c) Disseminator
(d) Disturbance handler (e) Negotiator.
2.
Whenever a senior official says “it is our company’s policy that we deliver customers’ packages atdoor step and the goods transportation is free” in an advertisement, the senior official action is that of acting as member of
< Answer >
(a) Middle management (b) Top management (c) First line management
(d) Audit management (e) Security management.
3.
In order to understand the role of management, in the late 1960s, Henry Mintzberg devised a newapproach – the managerial roles approach –by observing what managers actually do. A branch manager of manufacturing company, representing his company in local board of commerce, is acting in which of the managerial roles laid down by Mintzberg?
< Answer >
(a) Entrepreneur (b) Figure head (c) Spokesperson
(d) Resource Allocator (e) Recipient.
4.
In the past three to four decades, many management theorists and writers have made remarkablecontribution in the study of management. By studying the various approaches to management analysis, we can understand the concept of management and have a better understanding o
f managerial functions. Which approach to management emphasizes managing people by understanding their individual psychological needs?
(a) Empirical Approach (b) Decision Theory Approach
(c) Management Science Approach (d) Interpersonal Behaviour Approach
(e) Contingency Approach. < Answer >
5.
When managers engage in production planning and control, they determine what activities have tobe done, the order in which they are to be done, who is to do each, and when they are to be completed. This is done by using which of the following techniques?
< Answer >
(a) MIS system (b) ABC system (c) Gantt chart
(d) EOQ model (e) Break-even analysis.
6.
Henri Fayol, a French industrialist and a mining engineer, was one of the major contributors to theclassical approach of management. As per the classical ideas of management thought, Fayol stressed the need of
< Answer >
(a) Technical activities (b) Commercial activities (c) Financial activities
(d) Accounting activities (e) Managerial activities.
7.
According to Vroom-Yetton Model, if a manager obtains the necessary information from
< Answer >subordinates, and then makes the decision himself/herself, then he would be using which of the following leadership styles?
(a) Autocratic I (b) Autocratic II (c) Consultative I
(d) Consultative II (e) Group II.
8.
When five different workers each do one specific job preparing a Big Mac at McDonald's, they areengaging in
(a) Work specialization (b) Chain of command (c) Span of control
(d) Departmentalization (e) Decentralization. < Answer >
9.
Businesses operating globally have different orientations, depending on their management
philosophies. Which of the following orientations is an approach to international management whereby executives assume those practices that work in the headquarters?
(a) Ethnocentric (b) Polycentric (c) Regiocentric (d) Geocentric (e) Technocentric. < Answer >
10.
Which of the following are the characteristics of the planning process usually adopted in JapaneseManagement style?
< Answer >
I. Long-term orientation.
II. Individual decision-making.
III. Decisions flowing from bottom to top and back.
IV. Decisions initiated at the top, flowing down.
V. Slow decision-making.
(a) (I) and (II) above (b) (I) and (III) above (c) (II) and IV) above
(d) (I), (III) and (V) above (e) (II), (III) and (IV) above.
11.
Globalization has become the buzzword in today's corporate world. A large number of firms isexpanding their businesses globally to stay ahead of the cut-throat competition. Therefore i
t becomes necessary that managers manage their global 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. < Answer >
12.
There are different orientations toward international business. One such orientation is geocentricorientation. The view associated with this type of orientation can be said to be
< Answer >
(a) National (b) Narrow (c) Regional (d) Global (e) Culture-bound.
13.
There are different information systems that serve the needs of different organization members atdifferent organizational levels. Which of the following information systems has low-volume data and analytical models as data inputs?
< Answer >
(a) Management Information System (b) Decision Support System
(c) Executive Support System (d) Transaction Processing System
(e) Office Automation System.
14.
Information is one of the important resources for managers. For information to be useful tomanagers, it must possess certain attributes. The information attribute which tells whether the information pertains to the situation at hand or not, is known as
< Answer >
(a) Information Accuracy (b) Information Timeliness
(c) Information Relevance (d) Information Completeness
(e) Information Frequency.
15.
Management Information System (MIS) helps the manager to discharge his/her managerialfunctions in a more efficient manner. The first necessary step to effectively operate an MIS is
< Answer >
(a) Summarizing data (b) Analyzing data
(c) Determining information needs (d) Gathering appropriate information
(e) Generating reports from gathered data.
16.
An information system is an organized collection of data, equipment, procedures and peopleinvolved in the collection, storage and processing of data to produce information required in the management of an organization. For an information system to be effective, it should provide
< Answer >
(a) Internal timely information (b) External timely information
(c) Internal accurate information (d) External accurate information
(e) Internal and External information that is timely and accurate.
17.
Operations Management is a tool by which management can create andimprove upon itsoperations. Which of the following statements is true regarding Operations Management?
< Answer >
(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) Labour 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.
18.
Productivity can be measured in two ways: total productivity and partial productivity. In both thecases it is expressed as a ratio of outputs to inputs. Which one of the following inputs is common to both the measures?
< Answer >
(a) Capital (b) Energy (c) Materials (d) Labor (e) Technology.
19.
In addition to operations research, there are other techniques for improving productivity in anorganization. One such technique is ‘quality circle’. The term ‘quality circle’ refers to
< Answer >
(a) Acceptable standards shared by a group’s members
(b) A stage in the group development
(c) A temporary group to establish a specific task
(d) A work group that meets regularly to discuss, investigate and correct quality problems
(e) An organization’s long-term commitment to the continuous improvement of quality.
20.
Inventory is vital to organizations, as it represents considerable costs. So, various methods havebeen developed to control inventory related costs. Which isthe inventory control method developed to minimize ordering and holding costs, while avoiding stockout costs?
< Answer >
(a) Mathematical model (b) Linear programming (c) Economic order quantity
(d) JIT inventory system (e) Kanban.
21.
If you were looking to investigate how productive your assets were in meeting short-termobligations, you would be most likely to use which of the following ratios?
< Answer >
(a) Current ratio (b) Inventory turnover (c) Debt ratio
(d) Return on investment (e) Net Profit Margin.
22.
Ratio is an index that measures one variable relative to another and is generally expressed as apercentage or a rate. The ratio that tests how leveraged an organisation is, may be referred to as
< Answer >
(a) Current ratio (b) Return-on-investment (c) Debt ratio
(d) Net profit margin (e) Inventory turnover ratio.
23.
Managers need to consider the type of control system that they wish to use. Which control system
< Answer >helps managers to regulate and supply inputs to obtain maximum production without any interruption?
(a) Budgetary control (b) Financial control (c) Quality control (d) Inventory control (e) Clan control.
24.
A Funds Flow statement is
(a) A source of funds statement
(b) A statement of use of funds
(c) A statement of sources and uses of funds for a definite period between two definite dates
(d) An income statement
(e) A balance sheet.
< Answer >
25.
If a manager is evaluating the quality of the company’s product by examining complaint formssubmitted by customers, then he/she is using which of the following types of control?
< Answer >
(a) Concurrent control (b) Feedback control (c) Preventive control
(d) Yes-no control (e) Preliminary control.
26.
There can be various types of controls in an organization. Which of the following is a self-regulating control system that once put into operation, can automatically monitor the situation?
(a) Strategic control system (b) Tactical control system
(c) Operational control system (d) Cybernetic control system
(e) Noncybernetic control system.
< Answer >
27.
Even though control systems need to be tailored to suit specific situations, they all involve the samebasic process, that involves a sequence of steps. Which of the following is the first step in the control process?
< Answer >
(a) Comparing performance against standards (b) Measuring performance
(c) Setting performance standards (d) Determining deviations
(e) Taking corrective action.
28.
All managers need adequate and effective control systems to help them make sure that actualperformance more or less conforms to planned performance. Which of the following is not a characteristic of effective control systems?
< Answer >
(a) Emphasis on the exception (b) Flexibility (c) Timeliness
(d) Accuracy (e) Single criterion for measuring performance.
29.
In a meeting, when a senior manager communicates meaning in two very different ways, then thecommunication distortion is called
< Answer >
(a) Unclarified assumption (b) Premature evaluation (c) Insufficient adjustment (d) Semantics (e) Mental predisposition.
30.
In an effective organization, information flows in various directions. Which of the followinginformation flows takes place among persons at different levels, who have no direct relationships?
< Answer >
(a) Downward (b) Upward (c) Horizontal (d) Diagonal (e) Formal.
31.
When a junior employee tells a manager what he thinks of what the manager has just asked him todo, and be sure that he understood the same correctly, the junior employee is making use of
< Answer >
(a) Selective perception (b) Feedback (c) Semantics
(d) Grapevine (e) Downward communication.
32.
In an organization, communication flows in different directions. When instructions are receivedfrom Head Office to branches, the communication is called
< Answer >
(a) Downward communication (b) Upward communication
(c) Informal communication (d) Horizontal communication (e) Feedback.
33.
The managerial grid, propounded by Robert Blake and Jane Srygley Mouton, is a well-developedapproach to defining leadership styles. It identifies five distinct leadershipstyles. According to this grid, the (9,9) manager
< Answer >
(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.
34.
Behavioural or situational approaches to leadership typically focus on transactional leadership. i.e.,leadership involving an exchange relationship between leaders and followers. Transactional leaders usually
< Answer >
(a) Provide their followers with intellectual stimulation
(b) Inspire followers to exert extra effort towards achieving group goals
(c) Motivate subordinates to perform at expected levels
(d) Pay attention to the concerns and developmental needs of individual followers
(e) Change the awareness of followers by helping them to look at old problems in new ways.
35.
German Sociologist, Max Weber, introduced the concept of ‘charisma’ into discussions of
< Answer >leadership. Charismatic leadership is associated with all of the following characteristics except
(a) Ability to communicate vision in terms with which followers could readily identify
(b) Inability to focus on own weaknesses
(c) A compelling vision or sense of purpose
(d) Demonstrated consistency and focus in the pursuit of their vision
(e) Possession of divine grace.
36.
The trait theory was the result of the first systematic effort of psychologists and other researchers tounderstand leadership. Which of the following is the most appropriate conclusion drawn from the trait approach to leadership?
< Answer >
(a) The trait approach identifies traits that consistently separate leaders from nonleaders
(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 identified a number of important leader behaviours.
37.
Ravi, a new recruit in Solaris Systems, perceives that his outcomes (pay, perks etc.) are lower ascompared to his inputs (qualifications, experience etc.) in relation to his colleagues. Which of the following theories of motivation explains this phenomenon?
< Answer >
(a) Need hierarchy theory (b) Two-factor model (c) Equity theory
(d) Expectancy theory (e) ERG theory.
38.
Herzberg’s two-factor theory of motivation argues that hygiene factors are necessary to keepworkers from being dissatisfied, but only motivators can lead workers to feel satisfied and motivated. Which of the following can be regarded as one of Herzberg’s hygiene factors?
< Answer >
(a) The work itself (b) Responsibility (c) Supervision
(d) Career growth (e) Recognition of work.
39.
Motivation theories can be broadly classified into two main categories by looking at their major
< Answer >areas of thrust. viz., Content theories and Process theories. Content theory of motivation focuses on
(a) The level of satisfaction employees have with their job
(b) Achieving one’s potential and self-fulfilment
(c) Equitable distribution of tasks
(d) Analysing what motivates people
(e) The dynamics of motivation and how the motivation process takes place.
40.
Need is the origin for any motivated behaviour. Needs exist in each individual in varying degrees.Which of the following motivating needs is related to the desire to control and influence?
< Answer >
(a) Need for security (b) Need for power (c) Need for achievement
(d) Need for affiliation (e) Need for recognition.
41.
Douglas McGregor identified two opposing perspectives (Theory X and Theory Y) that he believed
< Answer >typified managerial views of employees and suggested that management must start with the basicquestion of how managers see themselves in relation to others. Which of the following is not correctabout his theory?
(a) Theory X managers view people as having an inherent dislike of work
(b) Theory X managers assume that people do not want to be directed
(c) Theory Y managers assume that the average person will accept, even seek, responsibility
(d) Theory Y managers view people as responsible and conscientious
(e) Theory Y managers assume that people are internally motivated to accomplish the goals and objectives.
42.
Managers can adopt various methods to overcome initial resistance to change. In which of thefollowing methods of overcoming resistance to change, management neutralizes potential or actualresistance by exchanging something of value for cooperation?
< Answer >
(a) Facilitation and support (b) Manipulation (c) Negotiation and agreement
(d) Explicit and implicit coercion (e) Education and communication.
43.
Cultural change is of utmost importance to bring about changes in the business processes of anorganization. Which of the following situational factors is most unlikely to facilitate cultural change?
< Answer >
(a) A dramatic crisis occurs (b) Leadership changes hands
(c) The culture is strong (d) The culture is weak
(e) The organisation is young and small.
44.
There can be different sources of resistance to change. For analytical purposes, they can becategorized as individual and organizational sources. Which of the following is an organizationalsource of resistance to change?
(a) Habit (b) Structural inertia (c) Security
(d) Fear of the unknown (e) Selective information processing.
< Answer >
45.
Problem-solving skills are most effectively acquired by managers using which of the followingtechniques?
(a) A mentor relationship (b) Planned Progression (c) Job rotation
(d) Simulation exercises (e) Classroom lectures.
< Answer >
46.
In order to reduce the subjective interpretation inherent in graphic rating scales, performanceappraisal experts have developed
(a) Formal appraisal (b) Informal appraisal
(c) Standard appraisal (d) Behaviorally anchored rating scales
(e) 360-degree appraisal.
< Answer >
47.
Supervisor’s rating of individual employees on characteristics using typically a five grade system iscalled
(a) Formal Appraisal (b) Informal Appraisal (c) BARS
(d) Graphic rating scale (e) 360-degree appraisal.
< Answer >
48.
A career strategy should be designed to overcome weaknesses and utilize strengths so as to takeadvantage of career opportunities. There are various steps in formulating a career strategy. Which ofthe following steps will precede the others in formulating a career strategy?
(a) Development of Strategic Career Alternatives
(b) Analysis of Personal Strengths and Weaknesses
(c) Consistency Testing and Strategic Choices
(d) Implementation of the Career Plan
(e) Monitoring Progress.
< Answer >
49.
Performance appraisal methods must consider various aspects of a job. Which of the following typesof appraisal implies evaluating an individual based on actual job performance?
(a) Behaviour-oriented (b) Results-oriented (c) Work-oriented
(d) Skills-oriented (e) Knowledge-oriented.
< Answer >
50.
The selection process involves choosing the candidates who best meet the qualifications and have thegreatest aptitude for the job. Different kinds of selection devices are used for the purpose. Asking acandidate for an automotive mechanic’s position to assemble and disassemble part of an enginemotor would be an example of what kind of selection device?
(a) Knowledge Test (b) Personality Test (c) Performance Test (d) Intelligence Test (e) Application Blank.
< Answer >
51.
Which of the following focuses on the qualifications a person must possess to perform a given jobsuccessfully?
(a) Job analysis (b) Job specification (c) Job description
(d) Job rotation (e) Job enrichment.
< Answer >
52.
The selection process involves choosing the candidates who best meet the qualifications and have thegreatest aptitude for the job. Different kinds of selection devices are used for the purpose. Theinterview, as a selection device, is most useful for which of the following types of occupations?
< Answer >
(a) Crane operator (b) Caretaker (c) Watchman (d) Bank manager (e) Office boy.
53.
There are three means of assessing internal labor supply. They are: (i) skills inventory, (ii)replacement planning and (iii) succession planning. Which of the following does not pertain to skills inventory while assessing internal labor supply?
(a) Employee skill (b) Employee interest (c) Employee turnover
(d) Employee performance (e) Employee knowledge.
< Answer >
54.
In recent years, research has proved that culture has a tremendous impact on management practices.Which of the following is not a feature of Organizational Culture?
(a) It is based on certain norms
(b) It promotes dominant and stable values
(c) It shapes philosophy and rules
(d) It focuses on profit
(e) It leads to observed behavioural regularities.
< Answer >
55.
Some researches focus their attention on the internal culture of an organization, while others examinethe impact of external culture on managerial practices. The most significant ways that culture istransmitted to employees in an organization, consist of
(a) Language, stories, rituals, and rewards
(b) Rituals, tales of woe, symbols, and language
(c) Stories, rituals, myths, and language
(d) Symbols, rituals, language, and systems
(e) Values, beliefs, stories and systems.
< Answer >
56.
Every organization structure, even a poor one, can be charted. Which of the following is false withrespect to Organization Chart?
< Answer >
(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.
57.
Centralisation is the systematic and consistent reservation of authority at central points within anorganization. Which of the following characteristics makes centralisation more appropriate?
(a) The environment is complex and uncertain
(b) Decisions are relatively minor
(c) Lower level managers are capable and experienced decision-makers
(d) The company is geographically dispersed
(e) Lower level managers are reluctant to be involved in decision-making.
< Answer >
58.
Power is a much broader concept than authority, and it is the ability of individuals or groups toinduce or influence the beliefs or actions of other persons and groups. Power can be derived frommany sources. The manager’s source of power that comes directly from his formal position within theorganization is called
(a) Advisory (b) Expert (c) Reward (d) Coercive (e) Legitimate.
< Answer >
59.
There can be different types of powers. Doctors, lawyers and engineers, who are respected for theirspecial knowledge or skill, are said to possess which of the following types of power?
(a) Legitimate Power (b) Expert Power (c) Referent Power
(d) Reward Power (e) Coercive Power.
< Answer >
60.
Decentralization applies to the systematic delegation of authority in an organization-wide context. In
< Answer >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.
61.
Functional structure is a type of departmentation in which positions are grouped according to their
< Answer >main functional area. Which of the following is a disadvantage of Functional Departmentation?
(a) Specialization (b) Managerial Vacuum (c) Power and Prestige
(d) Coordination (e) Stability.
62.
The efficiency with which an organization accomplishes its goals and objectives, is largely dependenton the structure it adopts. There are different types of structures. An organisational structure thatassigns specialists from different functional departments to work on one or more projects being ledby project managers, is most correctly referred to as a
(a) Functional structure (b) Matrix structure (c) Divisional structure (d) Geographic structure (e) Product structure.
< Answer >
63.
Mark's Embroidery produces custom-made embroidery products. One department sells to retailcustomers, another department sells to catalog customers and a third department sells only to collegebookstores. Mark's Embroidery is departmentalized by
(a) Product (b) Customer (c) Geographical location
(d) Process (e) Function
< Answer >
64.
Bela is the only direct supervisor for all fourteen employees within her department. The practices ofher company stipulate that employees only have to report to one immediate supervisor. This conceptis referred to as
(a) Unity of command (b) Span of control (c) Departmentalization
(d) Decentralization (e) Formalization.
< Answer >
65.
In an organization, a manager can pass on the right to get something accomplished to hissubordinates, but the obligation to do so remains with him or her. This situation, also called “passingthe buck”, is known as
(a) Autority on par with responsibility (b) Hierarchy of authority (c) Unity of direction
(d) Downward delegation of authority (e) Unity of command.
< Answer >
66.
Span of control refers to the number of subordinates, a superior can supervise efficiently and
< Answer >effectively. It is an important factor which is to be taken into account when undertakingorganizational design. Which of the following is not true about span of control?
(a) Wide spans of control empower employees
(b) Wide spans of control speed up decision-making
(c) Wide spans decrease flexibility
(d) Wide spans are related to a flat organization structure
(e) Wide spans of control imply fewer hierarchical levels.
67.
Trends in the past few years have centered on which of the following spans of control to enableorganizations become competitive in the business environment?
(a) Stable (b) Narrower (c) Deeper (d) Wider (e) Taller.
< Answer >
68.
Major decisions in organizations are most often made by groups rather than a single individual.Group decision-making is the norm in most large and complex organizations. 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) Delphi technique (b) Nominal group technique
(c) Interacting group technique (d) Autocratic decision-making
(e) Brainstorming.
< Answer >
69.
There are both advantages and disadvantages of group decision-making. Which of the followingwould generally not be considered an advantage of group decision-making?
< Answer >
(a) Groups generally come up with more and better decision alternatives than an individual can
(b) The members of the group tend to support the implementation of the decision more fervently than they would if the decision had been made by an individual
(c) A group can bring much more information and experience to bear on a decision or problem than an individual acting alone
(d) The group is more likely to use "groupthink" when coming to a decision
(e) A group is able to give different perspectives to a problem.
70.
The success of an organization greatly depends on the decisions that managers make. Due to thisreason, managerial approaches to decision-making have been the subject of considerable curiosity and research. There are different types of decision-making models. Which of the following models o
f managerial decision-making has its roots in the economic theory of the firm?
(a) Non-rational model (b) Rational model (c) Incremental model (d) Satisficing model (e) Brainstorming model. < Answer >
71.
Decision-making is the process by which a course of action is selected so as to deal with a specificproblem. It is a systematic process and involves a series of steps. Which of the following is the firststep in the managerial decision-making process?
(a) Identifying resources and constraints (b) Identifying a problem
(c) Analyzing alternatives (d) Allocating weights to the criteria
(e) Developing decision criteria.
< Answer >
72.
Which of the following is an example of a Programmed Decision?
(a) Decision involving strategy
(b) Decision involving mergers and acquisitions
(c) Decision involving organization design
(d) Decision involving what to do about a failing product line
(e) The Manager of a Retail Shop has put in place a policy which states that, "Exchanges will be permitted on all purchases within 15 days".
< Answer >
73.
The concepts of "minimax" and "maximini" are used in which of the following decision-makingtechniques?
< Answer >
(a) Utility Theory (b) Game Theory (c) Preference Theory
(d) Simulation (e) Ratio Analysis.
74.
Managers who use a rational, intelligent and systematic approach are more likely than others to comeup with high quality solutions to the problems they face. There are two major types of decision-making models. viz., the Rational Model and the Non-rational Models. Which of the following is notone of the assumptions of Rational Model of decision-making?
(a) Goal orientation
(b) Limits to an individual’s information-processing capacity
(c) Clear preferences
(d) Problem clarity
(e) No time or cost constraints.
< Answer >
75.
Which of the following decision-making models emphasizes short-runsolution of a problem rather
< Answer >than long-term goal accomplishment?
(a) Rational Model (b) Incremental Model (c) Garbage-can Model
(d) Game Theory (e) Decision Tree.
76.
Using the BCG matrix requires considering which of the following factors?
(a) Types of risk associated with product development
(b) Threats that economic conditions can create in future
(c) Social factors
(d) Market shares and growth of markets in which products are selling
(e) Political pressures.
< Answer >
77.
Strategic management is a process through which managers formulate and implement strategiesgeared toward optimizing strategic goal attainment, given available environmental and internalconditions. In the strategic management process, any organizational skills or resources that areexceptional or unique are the organization’s
(a) Potential external opportunities
(b) Potential internal strengths
(c) Core competencies
(d) Bargaining Power
(e) Marketing niche skills.
< Answer >
78.
Strategic management is a process for achieving strategic goals, given available environmental and
< Answer >internal conditions. It falls in the purview of Top Management. Which of the following statements iscorrect regarding Strategic Management?
(a) It seeks to maximise profit
(b) It identifies areas where the organisation can build a competitive advantage
(c) It is short-term in nature
(d) It has little relevance to small organisations
(e) It is irrelevant to non-profit organisations.
79.
Strategy “Guru” Michael E. Porter developed the “five competitive forces” model in order to analysethe nature and intensity of competition in a given industry. The profit potential available to businessoperating in a particular industry is directly affected by the collective strength of these forces. Whichof the following is not one of Porter’s five competitive forces?
(a) Threat of substitutes
(b) Threat of technological advances
(c) Threat of new entrants
(d) Bargaining power of suppliers
(e) Bargaining power of customers.
< Answer >
80.
A single-use plan is aimed at achieving a specific goal and designed to meet the needs of a uniquesituation. Once the goal is accomplished, the plan ceases to exist. Which of the following is a large-scale single-use plan that coordinates a complex set of activities necessary to achieve a majornonrecurring goal?
(a) Strategy (b) Project (c) Budget (d) Policy (e) Program.
< Answer >
81.
Despite the many advantages of planning, there may be some obstacles and limitations in thisprocess, 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.
< Answer >
82.
In a business situation things are so complex, that without proper plans this complexity cannot behandled. Planning is a prerequisite not only for achieving success but also for surviving in a complexand competitive world. Planning gives direction, reduces the impact of change, minimizes waste andredundancy, and
< Answer >
(a) Sets the standards used in controlling
(b) Eliminates departments that are found to be not needed within the plan
(c) Sets the basis used for promotion of individuals within the organization
(d) Establishes the workloads for each of the departments
(e) Determines which manager will head which department.
83
There can be different types of plans in an organization. A plan that comprises general guidelines,does not lock managers into a specific course of action and does not have defined objectives isreferred to as
(a) Operational plan (b) Tactical plan (c) Strategic plan (d) Directional plan (e) Short-term plan.
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84.
The MBO process is characterized by an emphasis on the clarity and balance of objective andparticipation of managers with accountability for results. The MBO process has many steps. Which of the following is a final step of a typical MBO process?
(a) The organisation’s overall objectives and strategies are formulated
(b) Successful achievement of objectives is reinforced by performance based rewards
(c) The action plans are implemented
(d) Progress towards objectives is periodically reviewed, and feedback is provided
(e) Major objectives are allocated among divisional and departmental units.
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85.
Today, many organizations are involved in social activities. Since the expectations of the societyhave changed, organizations have become more aware of their social responsibilities. A carefulanalysis of argument for and against the involvement of organizations in social welfare is necessary to determine whether an organization should implement social initiatives. The belief thatimprovement of the social environment benefits both society and business, is known as whatargument for social responsibility of business?
(a) Public expectation
(b) Business is a part of society
(c) Balance of responsibility and power
(d) Favourable public image
(e) Prevention is better than cure.
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86.
The phenomenon in which an employee reports a real or perceived wrongdoing under the control ofhis or her employer, to those who may be able to take remedial action, is known as
(a) Shirking (b) Blackmailing (c) Soldiering
(d) Whistle-blowing (e) Forming.
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87.
Complex interactions between the manager’s stage of moral development and the various moderatingvariables determine whether he will act in an ethical or unethical manner. Moderating variablesinclude individual characteristics, structural design of the organization, the organizational culture andthe intensity of the ethical issue. The strength of a person's convictions refers to which of the following individual characteristics?
(a) Value (b) Ego Strength (c) Attitude (d) Perception (e) Locus of Control.
< Answer >
88.
The concept of social audit was first proposed in the 1950s by Howard R. Bowen. There is evidencethat many organizations are increasingly going for social audits to improve their reputation in themarket. Social audit can be said to be a technique for
(a) Measuring the social infrastructure within an organisation
(b) Measuring the social impact of an organisation in relation to its stakeholders
(c) Measuring the level of success or failure of an innovation
(d) Showing a total picture of how a business will operate
(e) Independent appraisal of an organization’s management by an outside firm.
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89.
Which of the following stages in decision-making process attempts to understand the performancegap between predicted or expected level of performance and the actual level?
< Answer >
(a) Problem identification stage
(b) Resources and constraints identification stage
(c) Alternative evaluation stage
(d) Alternative selection stage
(e) Implementation stage.
90.
Authority, discipline, unity of command and unity of direction are
(a) Four of Fayol's fourteen principles of management
(b) Taylor's four principles of management
(c) Elements of Weber's ideal bureaucratic structure
(d) Principles of the human relations movement
(e) Key features of Contingency Theory.
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91.
During the 1950s, Herbert Simon, an economist, offered the concept of bounded rationality, whichsuggests that the ability of managers to be completely rational in making decisions is limited bycertain factors. Therefore, the use of bounded rationality leads to
(a) A satisficing decision
(b) A long and drawn-out decision-making process
(c) A very poor decision
(d) A very high number of alternatives from which to choose
(e) An optimum decision.
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92.
One of the major contingency approaches to leadership is Paul Hersey and Kenneth H. Blanchard’sSituational Leadership Model. According to this Model, which of the following leadership styleswould be most appropriate for someone with very low maturity?
(a) High relationship behavior and high task behavior
(b) High relationship behavior and low task behavior
(c) Low relationship behavior and high task behavior
(d) Low relationship behavior and low task behavior
(e) Moderate relationship behavior and moderate task behavior.
< Answer >
93.
Planning can be defined as the process by which managers set missions and objectives, assess thefuture and develop courses of action to accomplish these objectives. The amount of time spent inplanning would be the greatest for which of the following levels of management?
(a) Lower-level management (b) Middle-level management (c) First-line supervisors (d) Upper-level managers (e) Foremen.
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94.
On the basis of his studies, Fiedler identified three critical dimensions of the leadership situation.Which of the following are two of the three critical dimensions that Fiedler felt were important indetermining leader effectiveness?
(a) Leader-member relations and maturity of followers
(b) Task structure and leader-member relations
(c) Maturity of organization and subordinates
(d) Organizational success and position power
(e) Task structure and maturity of followers.
< Answer >
95.
When a Managing Director/Chairman creates a new department and defines the authority of thisdepartment within that organization, this is part of which function of management?
< Answer >
(a) Controlling (b) Forecasting (c) Organizing (d) Leading (e) Planning.
96.
According to research carried out by Ohio University researchers, leadership behavior that reflectsfriendship, mutual trust, respect, and warmth in the relationship between leader and followers is
(a) Employee-centered behavior (b) Consideration behavior
(c) Job-centered behavior (d) Structure behavior (e) Task behavior.
< Answer >
97.
The kind of control in which, the cause of an unsatisfactory outcome is traced back to the individualsresponsible for it and they are made to correct their practices is called
(a) Direct control (b) Indirect control (c) Positive control
(d) Preventive control (e) Reactive control.
< Answer >
98.
The enterprise self-audit is designed to force managers overcome troubles and adapt to the changingexternal environment. Which of the following statements regarding enterprise self-audit is false?
(a) It is usually carried out annually or every 3-5 years
(b) The outlook of the industry in which the firm is operating is studied
(c) Employee satisfaction levels are evaluated
(d) The firm’s objectives, plans, policies and facilities are re-examined
(e) It has to be carried out on a regular basis.
< Answer >
99.
A thorough understanding of managerial principles, functions and techniques and management
philosophy is necessary for a broad application of the principles of preventive control. All of thefollowing are assumptions of preventive control except
(a) The applications of management fundamentals can be evaluated
(b) Well qualified managers make minimum mistakes
(c) Managerial performance cannot be measured by using management fundamentals
(d) Some factors are beyond the control of the manager
(e) Managers should be evaluated periodically. < Answer >
100.
An effective preventive control system is one of the best methods for bringing about continuousimprovement in an organization. All of the following are steps for implementing effective control except
(a) The root cause of problems should be identified
(b) Training should be provided to employees
(c) All decisions should be taken at the top level
(d) Preventive action report forms have to be provided to employees
(e) Verification of actions done has to be mandatory.
< Answer >
Suggested Answers Introduction to Management (MB111) : April 2005
1.
Answer : (b)
Reason : Whenever an employee comes up with a new idea, and gives feasible plan to develop a new product, it is called entrepreneurship. So, (b) is correct answer.
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2.
Answer : (b)
Reason : It is only top management officials who are involved in announcing important policy decisions to impress the customers and capture market. So, (b) is correct answer.
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3.
Answer : (c)
Reason : Whenever any Managerial cadre person represents his company in board of commerce meeting, he will act as spokesperson of that particular company. (c) is correct answer.
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4.
Answer : (d)
Reason : Interpersonal Behaviour Approach to management emphasizes managing people by understanding their individual psychological needs.
Hence, from above discussion, we can infer that option (d) is correct.
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5.
Answer : (c)
Reason : Gantt chart is used in production planning and control, and shows what activities have to be done, the order in which they are to be done, who is to do each, and when they are to be completed.
Hence, from above discussion, we can infer that option (c) is correct.
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6.
Answer : (e)
Reason : As per the classical ideas of management thought, Fayol stressed the need of managerial activities. So, (e) is correct answer.
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7.
Answer : (b)
Reason : According to Vroom-Yetton Model, if a manager obtains the necessary information from subordinates, and then makes the decision himself/herself, then he would be using Autocratic II leadership style.
Hence, from above discussion, we can infer that option (b) is correct.
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8.
Answer : (a)
Reason : Work specialization involves different people each doing a specific job.
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9.
Answer : (a)
Reason : Ethnocentric (or home-country) orientation is an approach to international management whereby executives assume those practices that work in the headquarters.
Hence, from above discussion, we can infer that option (a) is correct.
The other orientations are not applicable in this case.
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10.
Answer : (d)
Reason : The characteristics of the planning process usually adopted in Japanese Management style are: (1) Long-term orientation, (2) Collective decision-making, (3) Decisions flowing bottom to top and back, (4) Slow decision-making. Hence, (d) is the correct answer.
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11.
Answer : (d)
Reason : Successful global management requires enhanced sensitivity to differences in national customs and practices.
Hence from above discussion, we can infer that option (d) is correct.
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12.
Answer : (d)
Reason : The view associated with geocentric attitude can be said to be global. In such a situation, executives believe that a global view is needed in both the headquarters of the parent company and its various subsidiaries.
Hence from above discussion, we can infer that option (d) is correct.
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13.
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.
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14.
Answer : (c)
Reason : The information attribute which tells whether the information pertains to the situation at hand or not, is known as Information Relevance.
Hence from above discussion, we can infer that option (c) is correct.
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15.
Answer : (c)
Reason : MIS (Management Information System) can be defined as an integrated, user-machine system for providing information to support managerial, operational and decision-making functions in an organization.
The first necessary step to effectively operate an MIS is determining information needs.
Hence from above discussion, we can infer that option (c) is correct.
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16.
Answer : (e)
Reason : For an information system to be effective, it should provide both internal and external information that is timely and accurate.
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17.
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.
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18.
Answer : (d)
Reason : Labor is a common input to both the productivity measures: total productivity and partial productivity.
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19.
Answer : (d)
Reason : The term ‘quality circle’ refers to a work group that meets regularly to discuss, investigate and correct quality problems.
Hence, from above discussion, we can infer that option (d) is correct.
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20.
Answer : (c)
Reason : The Economic Order Quantity (EOQ) is an inventory control method developed to minimize ordering and holding costs, while avoiding stockout costs.
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21.
Answer : (a)
Reason : Current ratio is the ratio of current assets to total current liabilities and measures an organization’s ability to meet short-term obligations.
Hence from above discussion, we can infer that option (a) is correct.
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22.
Answer : (c)
Reason : Debt ratio measures the percentage of total assets financed by debt (including current liabilities). So, it tests how leveraged an organisation is.
Hence, from above discussion, we can infer that option (c) is correct.
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23.
Answer : (d)
Reason : Inventory control system helps a manger to manage the inputs in such a way that they (inputs) are available at right time, at right place and in the right quantity with minimum cost of maintenance.
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24.
Answer : (c)
Reason : A Fund Flow statement is a statement of sources and uses of funds for a definite period between two dates.
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25.
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.
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26.
Answer : (d)
Reason : Cybernetic control system is a self-regulating control system that once put into operation, can automatically monitor the situation. All other control systems may rely on human discretion. So, (d) is the correct answer.
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27.
Answer : (c)
Reason : Controlling is the task of evaluating the performance and taking corrective actions to accomplish organizational objectives in accordance with predetermined ones. For this the first step is setting performance standards. So, (c) is the correct answer.
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28.
Answer : (e)
Reason : Effective control systems should have multiple criteria for measuring performance.
Hence, from above discussion, we can infer that option (e) is not a characteristic of effective control systems.
Options (a), (b), (c) and (d) are all characteristics of effective control systems.
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29.
Answer : (d)
Reason : Semantic distortion, either deliberate or accidental, acts as a barrier to effective communication. Such distortion takes place if the meaning is not communicated properly. So, (d) is correct answer.
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30.
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.
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31.
Answer : (b)
Reason : A message that is generated by the receiver in response to the sender’s original message is known as feedback. So, (b) is correct answer.
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32.
Answer : (a)
Reason : Most decisions in an organization flow through the organization structure level by level. i.e., Head Office to regional office, regional office to branches. The given example is that of downward communication. So, (a) is correct answer.
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33.
Answer : (b)
Reason : As per the managerial grid, the 9,9 manager 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.
Hence, from above discussion, we can infer that option (b) is correct.
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34.
Answer : (c)
Reason : Transactional leaders usually motivate subordinates to perform at expected levels.
Hence, from above discussion, we can infer that option (c) is correct.
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35.
Answer : (b)
Reason : Charismatic leaders innovate to do the right things, bring major changes and inspire followers to pursue extraordinary levels of effort. If they are unaware and unable to focus on their own weaknesses, they won’t be able to take themselves and others in the right direction.
Hence, from above discussion, we can infer that option (b) is not a characteristic of charismatic leadership.
Options (a), (c), (d) and (e) are all characteristics of charismatic leadership.
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36.
Answer : (c)
Reason : The trait approach is based on early research that assumes that a good leader is born, not made.
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37.
Answer : (c)
Reason : J.S. Adam’s equity theory points out that people are motivated to maintain fair relationship between their performance and reward in comparison to others. (a) Maslow’s need hierarchy classifies human needs into five categories: physiological, safety, belongingness, esteem, and self-actualization needs and states that they follow an order. A satisfied need no longer motivates. (b) Herzberg’s two-factor model distinguishes between motivators and hygiene factors. The presence of the former (motivators) causes satisfaction but their absence doesn’t cause dissatisfaction. The absence of the latter (hygiene factors) causes dissatisfaction but their presence doesn’t guarantee satisfaction. (d) Victor Vroom’s expectancy theory holds that people will be motivated to do things to achieve some goals to the extent that they expect that certain actions on their part will help them to achieve the goal. (e) Alderfer’s ERG theory categorizes human needs into three types: existence, relatedness, and growth needs.
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38.
Answer : (c)
Reason : According to Herzberg, hygiene factors help in maintaining the existing performance level but cannot by themselves motivate the employees to perform better.
Supervision is regarded as one of Herzberg’s hygiene factors.
Hence, from above discussion, we can infer that option (c) is correct.
Options (a), (b), (d) and (e) are all motivation factors.
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39.
Answer : (d)
Reason : Content theory of motivation focuses on analysing what motivates people.
Hence, from above discussion, we can infer that option (d) is correct.
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40.
Answer : (b)
Reason : According to Mc Clelland’s Needs Theory of Motivation, need for power refers to the desire to be influential and to have an impact on a group.
Hence, from above discussion, we can infer that option (b) is correct.
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41.
Answer : (b)
Reason : As per McGregor, Theory X managers assume that people prefer to be directed, wish to avoid responsibility, have little ambition, and above all, want security.
Hence, from above discussion, we can infer that option (b) is not correct about his theory.
Options (a), (c), (d) and (e) are all correct about his theory.
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42.
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.
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43.
Answer : (c)
Reason : The situational factor that is most unlikely to facilitate cultural change is a strong culture.
Hence, from above discussion, we can infer that option (c) is correct.
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44.
Answer : (b)
Reason : Structural inertia is an organization’s built-in mechanism to produce stability. e.g., formal rules and procedures for employees to follow. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability.
Hence, from above discussion, we can infer that option (b) is correct.
Options (a), (c), (d) and (e) are all individual sources of resistance to change.
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45.
Answer : (d)
Reason : Simulation exercises create conditions to depict the reality. Problem-solving skills are most effectively acquired using these exercises.
Hence, from above discussion, we can infer that option (d) is correct.
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46.
Answer : (d)
Reason : Behaviorally Anchored Rating Scales (BARS) is a sophisticated and useful rating method. BARS contain sets of specific behaviors that represent gradations of performance used as common reference points (anchors). (d) is correct answer.
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47.
Answer : (d)
Reason : Graphic rating scales use a number of factors, including general behaviors and characteristics on which employees are rated by superior. Superiors rate individuals on each factor, using a scale that typically has about five grades. So, (d) is correct answer.
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48.
Answer : (b)
Reason : The steps in formulating a career strategy are as follows:
(i) Preparation of a personal profile.
(ii) Development of long-range personal and professional goals.
(iii) Analysis of the environment.
(iv) Analysis of Personal Strengths and Weaknesses.
(v) Development of Strategic Career Alternatives.
(vi) Consistency Testing and Strategic Choices.
(vii) Development of short-range career objectives and action plans.
(viii) Development of contingency plans.
(ix) Implementation of the Career Plan.
(x) Monitoring Progress.
Hence, from above discussion, we can infer that option (b) is correct.
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49.
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.
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50.
Answer : (c)
Reason : Performance Test or Work Sampling Test is used as a means of measuring practical ability on a specific job. The applicant completes some job activity under structured conditions.
Hence from above discussion, we can infer that option (c) is correct.
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51.
Answer : (b)
Reason : Job specification focuses on the qualifications a person must possess to perform a given job successfully.
Hence from above discussion, we can infer that option (b) is correct.
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52.
Answer : (d)
Reason : The interview, as a selection device, is most useful for selecting persons to managerial jobs, such as the job of a Bank Manager.
Hence from above discussion, we can infer that option (d) is correct.
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53.
Answer : (c)
Reason : A skills inventory is a computerized database consisting of information regarding an employee, his skills, experience, interests, performance and other relevant personal characteristics. However, skills inventory does not provide any information about employee turnover.
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54.
Answer : (d)
Reason : Organizational Culture is the collection of shared beliefs, values, rituals, stories, myths and specialized language that foster a feeling of community among organization members. It does not focus on profit.
Hence, from above discussion, we can infer that option (d) is not a feature of Organizational Culture.
Options (a), (b), (c) and (e) are all characteristics of Organizational Culture.
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55.
Answer : (c)
Reason : The most significant ways that culture is transmitted to employees consist of shared beliefs, values, rituals, stories, myths and specialized language that foster a feeling of community among organization members.
Hence from above discussion, we can infer that option (c) is correct.
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56.
Answer : (d)
Reason : Organization Chart is a vital tool for providing information about organizational relationships.
It shows authority relationships and neglects significant informal and informational relationships
Hence from above discussion, we can infer that option (d) is false with respect to Organization Chart.
Options (a), (b), (c) and (e) are all true with respect to Organization Chart.
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57.
Answer : (e)
Reason : Centralisation refers to the degree to which decision-making is concentrated at a single point in the organization.
The characteristic that makes centralisation more appropriate is when lower level managers are reluctant to be involved in decision-making.
Hence, from above discussion, we can infer that option (e) is correct.
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58.
Answer : (e)
Reason : Legitimate power is the manager’s ability to influence behaviour because of the manager's formal position within the organization. The extent of power is influenced by the type of organization.
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59.
Answer : (b)
Reason : Expert Power is based on the perception or belief that the influencer has some relevant expertise, special knowledge or skill that the influencee does not.
Hence, from above discussion, we can infer that option (b) is correct.
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60.
Answer : (a)
Reason : A centralized structure is more suitable when the product line is homogeneous.
Hence, from above discussion, we can infer that option (a) is correct.
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61.
Answer : (b)
Reason : Managerial Vacuum is created as a functional structure provides a fairly narrow training base for managers because they tend to move up within one function. This limits their knowledge to their area of specialization.
Hence from above discussion, we can infer that option (b) is correct.
Options (a), (c), (d) and (e) are all advantages of Functional Departmentation.
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62.
Answer : (b)
Reason : An organisational structure that assigns specialists from different functional departments to work on one or more projects being led by project managers, is most correctly referred to as a Matrix structure.
Hence, from above discussion, we can infer that option (b) is correct.
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63.
Answer : (b)
Reason : Mark's Embroidery is departmentalized by customer, i.e. to say customer divisions are divisions set up to service particular types of clients or customers. Under this method, activities are grouped according to the customers the organization serves and service to the customers is of top priority. (a) Product divisions are divisions created to concentrate on a single product or service or at least a relatively homogeneous set of products or services. (c) Geographic divisions are divisions that are designed to serve different geographic areas. Under this method, territory or location is taken as the basis for departmentation. (d) Process divisions are designed to departmentalize the activities through the different processes which the organization follows. (e) In Functional departmentation, activities are grouped according to their main functional or specialized areas such as Production, Finance, Marketing, HR, etc.
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64.
Answer : (a)
Reason : Bela is the only direct supervisor for all fourteen employees within her department. The practices of her company stipulate that employees only have to report to one immediate supervisor. This concept is referred to as unity of command .
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65.
Answer : (d)
Reason : In downward delegation of authority and not responsibility, a superior passes on the right to get something accomplished to his subordinates, but the obligation to do so remains with him or her. So, (d) is correct answer.
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66.
Answer : (c)
Reason : Span of control refers to the number of subordinates, a superior can supervise efficiently and effectively. Wide spans increase flexibility, as there are fewer hierarchical levels.
Hence, from above discussion, we can infer that option (c) is not true about span of control.
Options (a), (b), (d) and (e) are all true about span of control.
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67.
Answer : (d)
Reason : Trends in the past few years have centered on wider span of control to enable organizations become competitive in the business environment.
Hence from above discussion, we can infer that option (d) is correct.
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68.
Answer : (a)
Reason : Delphi technique is a group decision-making technique that involves a group of experts responding to a questionnaire. Here, there is anonymous participation.
Hence, from above discussion, we can infer that option (a) is correct.
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69.
Answer : (d)
Reason : Sometimes cohesive “in groups” let the desire for unanimity override sound judgement when generating and evaluating alternative courses of action.
Hence, from above discussion, we can infer that option (d) would generally not be considered an advantage of group decision-making.
Options (a), (b), (c) and (e) are all advantages of group decision-making.
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70.
Answer : (b)
Reason : The rational model of management decision-making has its roots in the economic theory of the firm. In this model, managers engage completely in rational decision-making process. So, (b) is correct answer.
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71.
Answer : (b)
Reason : Identifying a problem is the first step in the decision-making process.
Hence from above discussion, we can infer that option (b) is correct.
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72.
Answer : (e)
Reason : Programmed Decisions are those involving simple, common, frequently occurring problems that have well-established and understood solutions. These decisions are made in routine, repetitive, well-structured situations through the use of predetermined decision rules, such as policies, procedures and rules.
Hence, from above discussion, we can infer that option (e) is correct.
Options (a), (b), (c) and (d) are all examples of Non-Programmed Decisions.
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73.
Answer : (b)
Reason : Game Theory is a decision-making technique, which involves selecting the best strategy, taking into consideration one's own actions and the actions of one's competitors. Minimizing the maximum loss (minimax) and maximizing the minimum gain (maximini) are the two concepts used in the Game Theory.
Hence, from above discussion, we can infer that option (b) is correct.
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74.
Answer : (b)
Reason : According to the Rational Model of decision-making, managers engage completely in rational decision-making processes and they possess and understand all information that is relevant to their decisions at the time they make them.
There is no limit to an individual’s information-processing capacity.
Hence, from above discussion, we can infer that option (b) is not one of the assumptions of Rational Model of decision-making.
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75.
Answer : (b)
Reason : (a) The rational decision-making model assumes that managers possess and understand all the information that is relevant to their decisions. They are also aware of different possible alternatives, all potential outcomes and ramifications, and hence make optimal decisions.
(b) The incremental model is concerned more about achieving short-run solution of a problem than making decisions that would facilitate long-term goal accomplishment. This model does not require managers to process a great deal of information for decision-making.
(c) The garbage can approach to decision-making holds that managers behave in a random fashion in making non-programmed decisions.
(d) Game theory is a technique for determining the strategy that is likely to produce maximum profits in a competitive situation.
(e) Decision tree is a sophisticated mathematical tool that enables a decision-maker to consider various alternative courses of action and select the best one.
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76.
Answer : (d)
Reason : Using the BCG matrix requires considering market shares and growth of markets in which products are selling.
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77.
Answer : (c)
Reason : In the strategic management process, any organizational skills or resources that are exceptional or unique are the organization’s Core competencies.
Hence from above discussion, we can infer that option (c) is correct.
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78.
Answer : (b)
Reason : Strategic Management is the process by which managers find out ways to achieve a competitive advantage for the organization's product or service offerings.
Hence, from above discussion, we can infer that option (b) is correct.
Options (a), (c), (d) and (e) are all incorrect regarding Strategic Management.
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79.
Answer : (b)
Reason : Porter’s five competitive forces are:
(i) Internal rivalry
(ii) Bargaining power of suppliers
(iii) Bargaining power of customers
(iv) Threat of new entrants
(v) Threat of substitutes
Threat of technological advances is not one of Porter’s five competitive forces.
Hence, from above discussion, we can infer that option (b) is the answer.
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80.
Answer : (e)
Reason : Program is a large-scale single-use plan that coordinates a complex set of activities necessary to achieve a major nonrecurring goal.
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81.
Answer : (c)
Reason : Planning can be defined as the process by which managers set missions and objectives, assess the future, and develop courses of action to accomplish these objectives.
However, it need not increase the amount of time available for other managerial functions.
Hence, from above discussion, we can infer that option (c) is correct.
Options (a), (b), (d) and (e) are all potential advantages of planning.
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82.
Answer : (a)
Reason : Planning gives direction, reduces the impact of change, minimizes waste and redundancy, and sets the standards used in controlling.
Hence from above discussion, we can infer that option (a) is correct.
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83.
Answer : (d)
Reason : A plan that comprises general guidelines, does not lock managers into a specific course of action and does not have defined objectives is referred to as a directional plan.
Hence, from above discussion, we can infer that option (d) is correct.
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84.
Answer : (b)
Reason : MBO is the joint setting of goals and objectives by superiors and subordinates and clarifying on the objective itself.
The final step of a typical MBO process is that successful achievement of objectives is reinforced by performance based rewards.
Hence, from above discussion, we can infer that option (b) is correct.
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85.
Answer : (b)
Reason : The belief that improvement of the social environment benefits both society and business, is known as “Business is a part of society” argument for social responsibility of business.
Hence from above discussion, we can infer that option (b) is correct.
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86.
Answer : (d)
Reason : Whistle-blowing is the phenomenon in which an employee reports a real or perceived wrongdoing under the control of his or her employer, to those who may be able to take remedial action.
Hence from above discussion, we can infer that option (d) is correct.
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87.
Answer : (b)
Reason : Ego Strength is the strength of a person's convictions.
Hence from above discussion, we can infer that option (b) is correct.
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88.
Answer : (b)
Reason : Social auditing is a technique for measuring the social impact of an organisation in relation to its stakeholders.
Hence, from above discussion, we can infer that option (b) is correct.
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89.
Answer : (a)
Reason : Problem identification stage in decision-making process attempts to understand the performance gap between predicted or expected level of performance and the actual level.
Hence, from above discussion, we can infer that option (a) is correct.
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90.
Answer : (a)
Reason : Authority, discipline, unity of command, and unity of direction are four of Fayol's fourteen principles of management.
Hence, from above discussion, we can infer that option (a) is correct.
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91.
Answer : (a)
Reason : Satisficing Model states that instead of searching for the perfect or ideal decision, managers frequently settle for one that will adequately serve their purposes. The concept of bounded rationality suggests that the ability of the managers to be completely rational in making decisions is limited by certain factors. This leads to a satisficing decision.
Hence, from above discussion, we can infer that option (a) is correct.
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92.
Answer : (c)
Reason : Task behavior refers to the extent to which the leader spells out the duties and responsibilities of an individual or group. Relationship behavior refers to the extent to which the leader engages in a two-way communication.
So, when a follower has low maturity, the leadership style should be low relationship behavior and high task behavior.
Hence, from above discussion, we can infer that option (c) is correct.
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93.
Answer : (d)
Reason : The amount of time spent in planning would be the greatest for upper-level managers.
Hence, from above discussion, we can infer that option (d) is correct.
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94.
Answer : (b)
Reason : Task structure and leader-member relations are two of the three critical dimensions that Fiedler felt were important in determining leader effectiveness.
Hence from above discussion, we can infer that option (b) is correct.
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95.
Answer : (c)
Reason : In an organization, whenever MD creates a new department and allots work and objectives to the new department, it becomes organization function of Senior Management. So, (c) is the correct answer.
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96.
Answer : (b)
Reason : According to research carried out by Ohio University researchers, consideration is the degree to which a leader builds mutual trust with subordinates, respects their ideas and shows concerns for their feelings.
Hence, from above discussion, we can infer that option (b) is correct.
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97.
Answer : (a)
Reason : The kind of control in which, the cause of an unsatisfactory outcome is traced back to the individuals responsible for it and they are made to correct their practices is called Direct control.
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98.
Answer : (c)
Reason : Employee satisfaction levels are not evaluated in an enterprise self-audit.
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99.
Answer : (c)
Reason : Managerial performance can be measured by using management fundamentals.
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100.
Answer : (c)
Reason : All decisions should be taken at the top level is not a step for implementation of effective control.