Introduction to Management (MB111) ): January 2005

Introduction to Management (MB111) ): January 2005

• Answer all questions.
• Each question carries one mark.
1. As a manager, Radha has a good grasp of the "big picture," visualizing the relationship of her business
to the industry and to the larger community. She is also able to see how the various parts of her
organization depend upon one another. In this way, Radha is demonstrating excellent _________ skill.
(a) Diagnostic (b) Technical (c) Conceptual (d) Human (e) Design.
< Answer >
2. It is a normal practice to categorize management into three basic levels:
(1) top management, (2) middle management and (3) supervisory or first-level management. The
managers at these three levels require different kinds of skills to perform the functions associated with
their jobs. The major difference in skill requirements between middle and top managers is that
(a) Top managers must generally be more skilled than middle managers in every respect
(b) Top managers require better interpersonal skills but less conceptual skills than middle managers
(c) Top managers generally require better technical and interpersonal skills than middle managers
(d) Top managers generally require higher level conceptual skills but less technical skills than middle
managers
(e) Middle managers require better technical and conceptual skills than top managers.
< Answer >
3. Using a method called structured observation, Mintzberg isolated ten roles which he believed were
common to all managers. According to him, maintaining self-developed networks of outside contacts
and informers who provide favours and information can be best described as
(a) The disseminator role (b) The liaison role
(c) The monitor role (d) The entrepreneur role
(e) The leader role.
< Answer >
4. A production manager of a manufacturing organization is trying to determine how to revise the
production department, so that it can produce more units per day and achieve the targets in a specified
time. Identify the managerial function.
(a) Organising (b) Leading (c) Controlling (d) Marketing (e) Auditing.
< Answer >
5. The Gantt Chart (invented by Henry L. Gantt), still used today in the production planning area of many
organizations, is a method for comparing the actual and planned performances. It was the first simple
visual device to maintain production control. It is essentially a bar graph with __________ axis and
__________ axis.
(a) Time on the horizontal; the activities to be scheduled on the vertical
(b) Time on the vertical; project completion on the horizontal
(c) Time on the horizontal; project completion on the vertical
(d) Time on the vertical; the activities to be scheduled on the horizontal
(e) Time on either; the activities to be scheduled on the other.
< Answer >
6. Max Weber, a German contemporary of Henri Fayol, coined the term “bureaucracy”, based on the
German word “buro” meaning office, to identify large organizations that operated on a rational basis.
All of the following are characteristics of bureaucracy except
(a) Centralized authority (b) Formalized rules and regulations
(c) Standardized operating tasks (d) Wide spans of control
(e) Multiple hierarchical levels.
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7. Frederick Winslow Taylor took up Henry Towne’s challenge to develop principles of scientific
management. Taylor’s belief that when a worker intentionally worked more slowly so that he would not
be out of line with the productivity of other workers, it was an example of
(a) Commandeering (b) Unity of command
(c) Soldiering (d) Contingency management
(e) Centralization.
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8. According to the Scientific Management School of Thought, which of the following is defined as the
systematic, objective and critical examination of all the factors governing the operational efficiency of a
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specified activity to bring about improvement?
(a) Work Methods Study (b) Micromotion Study
(c) Time Study (d) Motion Study
(e) Performance Study.
9. The term ‘ethics’ commonly refers to the rules or principles that define right and wrong conduct.
Managers making ethical decisions may belong to any of the three levels of Moral Development, each
composed of two stages. The Pre-conventional Level of Moral Development is concerned with which of
the following stages?
(a) Following rules only when its of interest
(b) Living up to the expectations of people close to managers
(c) Maintaining conventional order by fulfilling obligations which managers have agreed to
(d) Valuing rights of others, and upholding non-relative values and rights, regardless of the majority's
opinion
(e) Following self-chosen ethical principles even if they violate the law.
< Answer >
10. Complex interactions between the manager’s stage of moral development and the various moderating
variables determine whether he will act in an ethical or unethical manner. Moderating variables include
individual characteristics, structural design of the organization, the organizational culture and the
intensity of the ethical issue. Which of the following individual characteristics indicates the degree to
which people believe they are masters of their own fate?
(a) Perception (b) Value (c) Attitude
(d) Locus of Control (e) Ego Strength.
< Answer >
11. Today, many organizations are involved in social activities. Since the expectations of the society have
changed, organizations have become more aware of their social responsibilities. A careful analysis of
argument for and against the involvement of organizations in social welfare is necessary to determine
whether an organization should implement social initiatives. Which of the following is an argument for
Social Responsibility of Business?
(a) Loss of Profit Maximization
(b) Excessive Costs
(c) Weakened International Balance of Payments
(d) Balance of Responsibility and Power
(e) Lack of Accountability.
< Answer >
12. Practicing ethical guidelines enables managers to become followers of moral management approach.
They facilitate ethical business decisions. Which of the following is not an ethical guideline for
managers?
(a) Upholding human dignity
(b) Obeying the law
(c) Non-allowance for participation of stakeholders in the decision-making process
(d) Primum Non-Nocere
(e) Telling the truth.
< Answer >
13. Planning is the first function of management and can be defined as the process by which managers set
missions and objectives, assess the future and develop courses of action to accomplish these objectives.
However, there is no shortage of myths and misconceptions about planning. Which of the following
statements is a common misconception about planning?
(a) The end result of planning is only one of its purposes
(b) Planning cannot eliminate change
(c) Planning that proves inaccurate is a waste of management’s time
(d) The process of planning can, in itself, be valuable even if the results are inaccurate
(e) Planning is only a constraint if management stops planning after doing it once.
< Answer >
14. Formal planning in an organization involves formal documentation, with properly laid-down guidelines
to be followed. Which of the following statements is not a correct criticism of formal planning?
(a) Planning may create rigidity
(b) Planning may focus managers’ attention on today’s competition, not on tomorrow’s survival
(c) No relationship exists between formal planning and organisational performance
(d) Formal planning reinforces success, which may lead to failure
(e) Formal plans can’t replace intuition and creativity.
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15. Problems are encountered at all levels in an organization, and managers at various levels have to solve
them or manage them in the best possible way. Which of the following is a series of interrelated
sequential steps that can be used to respond to a well-structured problem?
(a) Rule (b) Policy (c) Budget (d) Procedure (e) Norm.
< Answer >
16. Establishment of, and the agreement by managers and planners to utilise consistent assumptions critical
to plans under consideration, is known as _______________, and is a prerequisite for effective
planning.
(a) Organization climate (b) Organization culture
(c) Premising (d) Strategic planning (e) Training.
< Answer >
17. Assume that you have recently been assigned to a committee that is given the responsibility to review
and institute a process for employees to use when requesting upgrades in computer equipment. Which
type of objectives would you most likely be developing?
(a) Intermediate-term objectives (b) Long-term objectives
(c) Short-term objectives (d) Organizational objectives
(e) Division objectives.
< Answer >
18. 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 organisational 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, organisation members may actually pursue objectives other than the formal
organisational objectives
(e) Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’
process.
< Answer >
19. As an organization grows in size and complexity, specialization of various tasks becomes a necessity, in
most of the cases. Which of the following refers to the tendency of a system to move towards increased
specialization of various tasks?
(a) Equifinality (b) Focus (c) Differentiation
(d) Dynamic Homeostasis (e) Cost leadership.
< Answer >
20. 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. If you were responsible for
setting up an MBO program, which of the following steps would you need to complete before the
others?
(a) Establish specific goals for various departments, subunits and individuals
(b) Formulate action plans
(c) Clarify organizational roles
(d) Implement and maintain self-control
(e) Do performance appraisal.
< Answer >
21. Managers involved in strategic planning aim at translating the broad intentions of the firm into more
concrete and measurable strategic plans, policies and budget allocations. There are various steps
involved in the strategic planning process. Which of the following steps in the strategic planning
process usually precedes the others?
(a) Formulating Strategy
(b) Assessing Organizational Resources, Risks and Opportunities
(c) Developing Organizational Objectives
(d) Implementing Strategy
(e) Monitoring and Adopting Strategic Plans.
< Answer >
22. The BCG matrix was devised by the Boston Consulting Group, a leading management consulting firm,
in the 1970s. It is a widely used method of portfolio management and helps businesses evaluate their
profitability. According to the BCG matrix, an SBU comprising speculative products that entail high
risks, would be referred to as
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(a) A question mark (b) A bull (c) A dog (d) A cash cow (e) A star.
23. Managers involved in strategic planning aim at translating the broad intentions of the firm into more
concrete and measurable strategic plans, policies and budget allocations. There are various steps
involved in the strategic planning process. The final step in strategic planning answers the question
(a) What business have we been in? (b) How much money have we lost?
(c) How effective have our strategies been? (d) What business should we have we been in?
(e) Who have been our customers?
< Answer >
24. A firm’s external environment usually consists of customers, competitors and suppliers. It is necessary
to carry out an analysis of the external environment, in order to find out the opportunities and threats
that can positively or negatively influence an organization’s ability to reach its goals. Analysing the
external environment and the organisation’s resources are usually part of
(a) Functional level planning process
(b) Financial planning process
(c) Determining the mission of the business
(d) Strategic planning process
(e) Shop floor control.
< Answer >
25. Major decisions in organizations are most often made by groups rather than a single individual. Group
decision-making is the norm in most large and complex organizations. There are different group
decision-making techniques. One of these techniques for group decision-making that involves
questionnaires is
(a) Brainstorming (b) Nominal group technique
(c) Delphi technique (d) Interacting group
(e) Focus group.
< Answer >
26. 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 preregistration 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.
< Answer >
27. Decision-making is the process by which a course of action is selected so as to deal with a specific
problem. It is a systematic process and involves a series of steps. Which of the following steps in the
decision-making process includes conveying a decision to those affected and getting their commitment
to it?
(a) Evaluation of decision effectiveness
(b) Selecting an alternative
(c) Analyzing alternatives
(d) Determining the problem
(e) Implementation of the alternatives.
< Answer >
28. The temptation to accept the first feasible alternative often prevents decision-makers from achieving the
best solutions to their problems. Generating a number of alternatives allows them to resist the
temptation to solve their problems too quickly and makes reaching an effective decision more likely.
Which of the following techniques can be used for development of several alternatives in the decisionmaking
process, by generating as many feasible ideas as possible on a given topic without evaluating
them?
(a) Brainstorming (b) Synectics (c) Simulation
(d) Linear programming (e) Game theory.
< Answer >
29. 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. There are different approaches to decisionmaking
under uncertainty. Which approach to decision-making under conditions of uncertainty believes
that individual attitudes towards risk vary with events, with people and positions?
(a) Risk analysis (b) Risk communication
(c) Decision trees (d) Utility theory (e) Game theory.
< Answer >
30. Raj, Ramesh and Rajesh are all making decisions about how to approach the team project. They have
only one week to write a 75-page analysis of the government's suit against Microsoft. In addition, they
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all work full-time. Which decision-making model will they probably rely on?
(a) Rational (b) Break-even analysis (c) Intuition
(d) Bounded rationality (e) Garbage-can.
31. The success of an organization greatly depends on the decisions that managers make. Due to this
reason, managerial approaches to decision-making have been the subject of considerable curiosity and
research. There are different types of decisions that are taken. If an organization is placing an order for
office supplies, they are most likely engaged in which of the following types of decision?
(a) Non-programmed decision (b) Programmed decision
(c) Proactive decision (d) Reactive decision (e) Strategic decision.
< Answer >
32. Alexis has implemented a new decision at her company. Her decision encompasses marketing her
products to overseas markets during the next five years. This decision is projected to bring in $20
million in profits during that time frame. Alexis believes this decision will move her organization into
one of the top five positions within the industry. Alexis has most probably made a/an __________
decision.
(a) Operational (b) Rational (c) Strategic (d) Tactical (e) Cross-cultural.
< Answer >
33. In an organization, the process where individuals work in co-ordination and contribute to the
achievement of organizational goals is called
(a) Unity of direction (b) Unity of command
(c) Hierarchy of authority (d) Authority on Par
(e) Downward delegation.
< Answer >
34. Organizational design is the process of developing an organization structure. Managers take into
account a number of factors, before embarking on organizational design. One such factor is span of
control. All other things being equal, as the span of control grows wider or larger, organizational design
usually becomes more
(a) Bureaucratic (b) Directive (c) Efficient
(d) Democratic (e) Complicated.
< Answer >
35. Open systems can accomplish their tasks and meet their objectives through different courses of action.
Open systems do not need a single ‘best’ method to achieve their objectives and accomplish their goals.
Which of the following terms implies this concept of reaching the same result by different means?
(a) Differentiation (b) Equifinality
(c) Dynamic Homeostasis (d) Cost Leadership (e) Entropy.
< Answer >
36. Management plays a role wherever people form into groups to achieve some common objectives. The
term ‘management’ applies to small and large organizations. When all managers within an organization
are involved in various ways in the management of the organization, then it is referred to as
(a) Top-down management (b) Bottom-up management
(c) Unity of command (d) Unity of direction (e) Centralization.
< Answer >
37. Divisional structure is a type of departmentation in which positions are grouped according to similarity
of products, services or markets. There are three major forms of divisional structure: product division,
geographic division and customer division. Which of the following statements is not true about
Customer Division or Departmentation?
(a) It is set up to service particular types of clients or customers
(b) It can address the special and widely varied needs of customers for clearly defined services
(c) It is accompanied by the benefits of specialization
(d) Coordination between sales and other functions becomes easier
(e) Facilities and manpower, specialized for certain customer groups may be under-employed.
< Answer >
38. Organizations that adopt a Matrix structure, generally pass through different structural stages, each
having its own significance. Which of the following Matrix Stages is a permanent overlay?
(a) Stage 1 (b) Stage 2 (c) Stage 3 (d) Stage 4 (e) Stage 5.
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39. The Better Than Ordinary Fast Food Company desires to focus on the varying customer needs found at
its many operations across the country. This organization would probably derive the most benefit from
engaging in ______ within its structure.
(a) Departmentalization (b) Product-based divisions
(c) Geographic-based divisions (d) Coordination mechanisms
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(e) Vertical dimensions.
40. When a pharmaceutical research company assigns research specialist to report jointly to the head of
marketing and also to head of research, it is an example of
(a) Functional departmentation (b) Matrix structure
(c) Geographical departmentation (d) Customer departmentation
(e) Centralized structure.
< Answer >
41. To delegate means to grant or confer on subordinates certain tasks and duties along with sufficient
authority, to accomplish these. Which of the following points is most likely to increase the
effectiveness of delegation?
(a) Detail how the required tasks are to be completed for the subordinate
(b) Predetermine the desired results and performance standards for the delegated task
(c) Explain the relevance of delegated tasks to larger projects or to department or organization goals
(d) Maintain the authority necessary to accomplish the main tasks
(e) Retain the decision-making power for the delegated tasks.
< Answer >
42. Power is a much broader concept than authority, and it is the ability of individuals or groups to induce
or influence the beliefs or actions of other persons and groups. There can be different types of powers.
Doctors, lawyers and engineers, who are respected for their special 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 >
43. Authority is vital for a manager. Without authority, a manager cannot get the tasks accomplished by
others (subordinates). The authority to control the functions of other departments, related to specific
tasks is known as
(a) Functional authority (b) Formal authority
(c) Informal authority (d) Managerial authority (e) Operational authority.
< Answer >
44. Which of the following is the most common feature in a highly centralized organization?
(a) Decisions are made very quickly
(b) The organization is multinational
(c) Decision-making authority is retained by top management
(d) Delegation is a common practice within the organization
(e) Managers are given more freedom and independence in decision-making.
< Answer >
45. In modern times, organizations have been trying to create a corporate culture with a distinct identity by
moulding the behaviour of their members. The original source of an organisation’s culture is most
strongly associated with
(a) Overseas influences
(b) Political factors in the external environment
(c) General economic trends
(d) The vision of the organisation’s founder(s)
(e) The make-up of organisational members when the organisation was established.
< Answer >
46. In recent years, research has proved that culture has a tremendous impact on management practices.
Which of the following is not a characteristic of Organizational Culture?
(a) It may vary in strength
(b) It is indistinct in nature
(c) It is based on certain norms
(d) It promotes dominant and stable values
(e) It shapes philosophy and rules.
< Answer >
47. Different types of organizational cultures are prevalent in various organizations. They may vary in their
strength and can be characterized as “Strong” or “Weak”. Strong cultures
(a) Can be found in all organizations that exist
(b) Have a minimal influence on the employee when he/she is making decisions
(c) Are found in organizations with strong leaders
(d) Have a greater influence on employees than do weak cultures
(e) Have the same influence on employees as do weak cultures.
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48. In recent years, research has proved that culture has a tremendous impact on management practices in
an organization. Organizational culture is similar to an individual’s
(a) Ability (b) Motivation (c) Personality (d) Skills (e) Perception.
< Answer >
49. Manager Inventory Chart, also known as Replacement Chart, is used in Replacement Planning of
human resource management in an organization. Which of the following is not an advantage of
Manager Inventory Chart?
(a) It gives an overview of the human resource situation of an organization
(b) It shows the future internal supply of managers by indicating who is promotable in a year
(c) It shows the position to which a manager may be promoted
(d) Managers who are ready for promotion can be easily identified
(e) Managers who do not perform satisfactorily can be identified, and the need for training or
replacement is needed.
< Answer >
50. The Recruitment Procedure is initiated when a vacancy occurs and is reported to the HR department.
Certain sequential steps should be followed in the Recruitment Procedure. 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.
< Answer >
51. The selection process involves choosing the candidates who best meet the qualifications and have the
greatest aptitude for the job. Different kinds of selection devices are used for the purpose. Which of the
following selection devices involves presenting applicants with a miniature model of a job and have
them perform a task that is central to that job?
(a) Personality Test (b) Work Sampling Test
(c) Application Blank (d) Knowledge Test
(e) Intelligence Test.
< Answer >
52. There are a variety of sources for obtaining external job candidates. As a source of potential job
candidates, which of the following generate(s) the best referrals, because a good referral reflects on the
source of the recommendation?
(a) Advertisements (b) The Internet
(c) Employee referrals (d) Public employment agencies
(e) Outside consultants.
< Answer >
53. 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.
< Answer >
54. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of the
following guidelines is least likely to improve the effectiveness of the appraisal process?
(a) Stress both performance in the position the individual holds and the success with which the
individual is attaining organizational objectives
(b) Emphasize the evaluator's impression of the individual's work habits
(c) Ensure that the appraisal is acceptable to both the evaluator and the evaluated
(d) Ensure that the appraisal provides a base for improving individuals' productivity within the
organization by making them better equipped to produce
(e) Determine standards of effective performance.
< Answer >
55. A career strategy should be designed to overcome weaknesses and utilize strengths so as to take
advantage of career opportunities. There are various steps in formulating a career strategy. Which of the
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
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(e) Monitoring Progress.
56. There are various appraisal techniques used in an organization. A performance appraisal technique that
makes use of feedback from supervisors, subordinates and co-workers, is known as
(a) Results-oriented appraisal (b) 360-degree appraisal
(c) Informal appraisal (d) Graphic Rating Scale
(e) Behaviourally Anchored Rating Scale.
< Answer >
57. Most of the conflict resolution techniques either focus on interpersonal relationships or structural
changes. Which of the following conflict resolution techniques implies emphasizing the areas of
agreement and common goals and de-emphasizing disagreements?
(a) Problem Solving (b) Forcing (c) Smoothing
(d) Compromise (e) Avoidance.
< Answer >
58. Every organization makes minor structural adjustments in reaction to changes. Change is any alteration
of the "status quo". The forces of change can be internal or external to the organization. Which of the
following is not an internal force of change?
(a) Organizational strategy (b) Technology
(c) Employee attitude (d) Organizational culture
(e) Workforce.
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59. An intervention, in Organization Development (OD) terms, is a systematic attempt to correct an
organizational deficiency uncovered through diagnosis. Which of the following intervention techniques
is concerned with the interpersonal relations and dynamics operating in work groups?
(a) Technostructural Activity (b) Team Building
(c) Skill Development (d) Process Consultation (e) Survey Feedback.
< Answer >
60. Which of the following strategies of overcoming resistance to change, usually involves selectively
providing information about a change so that it appears more attractive or necessary to potential
resisters?
(a) Cooptation (b) Manipulation (c) Coercion (d) Negotiation (e) Participation.
< Answer >
61. Creative thoughts are the result of hard work and there are various techniques to foster creativity. This
is one of the best-known techniques for facilitating creativity, developed by Alex F. Osborn.
(a) Brainstorming (b) Synectics (c) Delphi Technique
(d) Nominal Group Technique (e) Simulation.
< Answer >
62. Managers vary in their assumptions about people working in an organization. Which of the following
manager types would best describe an individual who believes that most people dislike work and will
avoid it whenever possible?
(a) Creative manager (b) Transformational manager
(c) Theory Y manager (d) Theory X manager
(e) Autocratic manager.
< Answer >
63. Different behavioural scientists have developed different theories on motivation. One such behavioural
scientist by the name of Herzberg gave the two-factor theory of motivation. According to Herzberg’s
motivation-hygiene theory, these four responses are all hygiene factors.
(a) Personal life, security, salary and recognition
(b) Advancement, salary, status, company policy
(c) Relationship with peers, status, supervision and security
(d) Working conditions, relationship with subordinates, supervision and work itself
(e) Responsibility, salary, status, company policy.
< Answer >
64. Lyman W. Porter and Edward E. Lawler III developed the expanded expectancy theory model. Which
of the following is not true with regard to the Porter and Lawler model of motivation?
(a) It’s built on Vroom’s expectancy theory
(b) It means motivation is not a simple cause-and-effect matter
(c) It assumes that satisfaction leads to performance
(d) It emphasizes reward structure
(e) It assumes that performance leads to intrinsic as well as extrinsic rewards.
< Answer >
65. Jyotsna strives to develop friendships, prefers to work in cooperative situations, and works toward a
high degree of mutual understanding in her relationships Which need is she demonstrating?
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high degree of mutual understanding in her relationships. Which need is she demonstrating?
(a) Achievement (b) Power (c) Recognition (d) Affiliation
(e) Self-Actualization.
66. One of the most popular explanations of human motivations was developed by the psychologist,
Abraham Maslow, and popularized during the early 1960s. According to Maslow, an employee who has
a need for more self-respect, has unmet
(a) Esteem needs (b) Physiological needs (c) Safety needs
(d) Social needs (e) Self-actualization needs.
< Answer >
67. According to the Tannenbaum and Schmidt Leadership model, which of the following would be most
accurate regarding someone exhibiting behavior toward right of the continuum of leader behaviours?
(a) He would be a boss-centered leader
(b) He would be more likely to ask the group to make a decision
(c) He would be more autocratic
(d) He would be more likely to "sell" the decision
(e) He would present ideas and invite questions.
< Answer >
68. Tommy has a remarkable ability to get his employees to do what he directs. He is an upper level
manager at the company and is very gifted with business knowledge. The employees fear that if they do
not act as directed, Tommy would give them a poor work reference. Which of the following is the type
of power Tommy has over his workers?
(a) Reward power (b) Referent power (c) Expert power
(d) Coercive power (e) Legitimate power
< Answer >
69. When managers have substantial but not complete confidence and trust in subordinates and solicit
advice from subordinates while retaining the right to make final decision, Likert’s four systems of
management describes it as
(a) Participative leadership style
(b) Benevolent-authoritative leadership style
(c) Consultative leadership style
(d) Exploitative-authoritative leadership style
(e) Trait theory of leadership style.
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70. According to the Managerial Grid, propounded by Blake and Mouton, the most effective management
style is characterized by
(a) High concern for people and low concern for production
(b) High concern for people and high concern for production
(c) Low concern for people and high concern for production
(d) Low concern for people and low concern for production
(e) Moderate concern for people and moderate concern for production.
< Answer >
71. For becoming a successful interpersonal communicator, a manager must be able to grasp all of the
following except
(a) How interpersonal communication works
(b) The importance of verbal versus non-verbal interpersonal communication
(c) How to get the most out of the grapevine
(d) The relationship between feedback and interpersonal communication
(e) How certain factors act as barriers to effective interpersonal communication.
< Answer >
72. Controlling is the management function that is aimed at regulating organizational activities so that
actual performance conforms to expected organizational standards and goals. What is this type of
control in which the manager does not receive the information in time to stop the damage?
(a) Feed forward (b) Concurrent (c) Feedback (d) Yes - No
(e) Screening.
< Answer >
73. ________ means recruitment of employees immediately upon graduation, generation of employment
until retirement, and mandatory retirement.
(a) Seniority system (b) Continuous training (c) Shushin Koyo
(d) Kacho (e) Kanban.
< Answer >
74. ______ is the practice of comparing, on some measurable scale, the performance of a key business
operation in house vis à vis a similar operation in another organization
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operation in-house vis-à-vis a similar operation in another organization.
(a) Reengineering (b) Benchmarking (c) Total Quality Management (TQM)
(d) Forecasting (e) Lobbying.
75. Irena has been assigned to work on the development of a budget that plans future investments in major
assets such as building and heavy machinery. Irena is working on a(n)
(a) Cash budget (b) Capital budget (c) Revenue budget
(d) Operating budget (e) Expense budget.
< Answer >
76. Communication is the transfer of information in the form of an understandable message through a
channel from a sender to others. If Boeing Aerospace Co. has difficulty communicating with the British
Air Force because of the abbreviations used by the British military, this is a problem in
(a) The grapevine (b) Feedback (c) Semantics (d) Encoding (e) Synectics.
< Answer >
77. As a manager, you decide that every afternoon, you are going to go around and spend time with your
employees to find out what’s happening. This is called
(a) The grapevine (b) Management by wandering around
(c) Horizontal communication (d) Downward communication
(e) Upward communication.
< Answer >
78. The four phases of Creative process are
I. Logical formulation.
II. Intuition.
III. Unconscious scanning.
IV. Insight.
The order in which the process takes place is
(a) (I), (II), (III) and (IV) (b) (II), (III), (IV) and (I)
(c) (III), (II), (IV) and (I) (d) (IV), (I), (III) and (II)
(e) (III), (I), (IV) and (II).
< Answer >
79. Ratio Analysis is a performance evaluation technique that involves determining and evaluating financial
ratios. In this regard, which of the following ratios measures a firm’s financial risk?
(a) Profitability (b) Liquidity (c) Activity (d) Leverage (e) Productivity.
< Answer >
80. Control is of three types – feed forward, concurrent, and feedback control. Which of the following is
not an example of feed forward control?
(a) Sales forecast (b) Preventive maintenance (c) Inventory control
(d) Inspection of quality of incoming raw materials for production
(e) Remedial maintenance.
< Answer >
81. Which of the following inventory techniques uses cards to monitor inventory movement?
(a) ABC Analysis (b) JIT Approach (c) Kanban
(d) Kaizen (e) Economic Order Quantity.
< Answer >
82. A skills inventory is a computerized database containing basic information about each employee that
can be used to assess the availability of candidates for meeting current and future human resource
needs. Which of the following is an application of skills inventory?
(a) Forecasting manpower demand (b) Forecasting manpower supply
(c) Replacement training (d) Succession planning
(e) Planning human resource actions.
< Answer >
83 A Decision Support System (DSS) is an interactive computer system used to plan and make decisions.
Which of the following is not true with regard to DSS?
(a) Executive decisions are the focal points in DSS
(b) DSS specializes in easy-to-use software
(c) DSS employs interactive processing
(d) The control and use of DSS rests with the central information management department
(e) DSS is adaptable to change.
< Answer >
84. Four months ago, Taylor Construction needed three employees to rebuild the electrical boxes for their
customers due to the various tasks involved. After successfully retraining the employees, a single
employee can now handle all facets of this job. This is an example of
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(a) Job enlargement (b) Job rotation
(c) Shoddy workmanship (d) Job enrichment (e) Job sharing.
85. Quantitative techniques are very useful in making decisions under conditions of varying degrees of
uncertainty. Torque Engineering Co. Ltd. faces the problem of allocating resources to its newly set up
hydraulic pumps division. Which of the following decision-making techniques can help solve the
problem?
(a) Linear programming (b) Decision tree
(c) Simulation (d) Waiting-line method (e) Game theory.
< Answer >
86. Which of these do you get when an organization's output of goods and services is divided by its inputs?
(a) Equity (b) Productivity (c) Current ratio
(d) Profit (e) Economic order quantity.
< Answer >
87. When Frito Lay, Inc., the US snacks company, uses hand-held computers to monitor daily sales activity,
it is an example of
(a) Feedback control (b) Feedforward control
(c) Concurrent control (d) Technological control
(e) Hand-held control.
< Answer >
88. A PERT network depicts the sequence of activities needed to complete a project and the __________
each activity.
(a) Amount of money needed for (b) Time or costs associated with
(c) Step of (d) Schedule of
(e) Estimated day of.
< Answer >
89. Which of the following is/are not true of the activity known as job analysis?
(a) The job elements are rated in terms such as frequency of use or amount of time involved
(b) Jobs are broken into elements such as information or relations with other people
(c) The rate of pay for the job is fixed
(d) It aims to describe the purpose of a job and the conditions under which it is performed
(e) Both (a) and (b) above.
< Answer >
90. Zero-base Budgeting (ZBB) is based on a system where each function – old or new – must be justified
in its entirety each time a new budget is formulated. ZBB has several benefits which include all of the
following except
(a) Effective allocation of resources
(b) Improved productivity and cost effectiveness
(c) Improved effectiveness of performance audit
(d) Better focus on organizational objectives
(e) Elimination of unnecessary activities.
< Answer >
91. Ringi is a characteristic organizational feature of Japanese companies. What does ringi refer to?
(a) Lifetime employment (b) Informal organization structure
(c) A multistep procedure for building consensus
(d) Paternalistic leadership style (e) Teamwork.
< Answer >
92. The stage of Kurt Lewin's change model where employees need to be helped to integrate changed
attitudes and behaviors into their normal ways of doing things is called ___.
(a) Refreezing (b) Changing (c) Unfreezing (d) Benchmarking (e) Moving.
< Answer >
93. Members of a project team assessing the market potential of a new product are engaged in
(a) Upward Communication (b) Grapevine
(c) Downward communication (d) Horizontal communication
(e) Vertical communication.
< Answer >
94. An organization that engages in production or service activities through its own affiliates in several
countries, maintains control over the policies of those affiliates, and manages from a global perspective
is known as
(a) Multinational Organization (b) International Organization
(c) Transnational Organization (d) Global Organization
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(e) Both (c) and (d) above.
95. Which of the following should not be a characteristic of borderless organizations?
(a) They recruit the best people regardless of country or culture
(b) They focus on using the best approaches and practices from around the world
(c) They recruit people mainly from the home country
(d) They give impartance to the culture of host country
(e) They approach business from a geocentric perspective.
< Answer >
96. Which of the following attitudes is based on the view that host-country managers know the best
practices for running their operations?
(a) Ethnocentric (b) Geocentric (c) Polycentric (d) Regiocentric (e) Parochial.
< Answer >
97. Which of the following is not true about Management Information System (MIS)?
(a) It can be defined as an integrated, user-machine system for providing information to support
managerial, operational and decision-making functions in an organization
(b) Many of the terms used in MIS are imprecise and controversial
(c) It incorporates a limited variety of knowledge areas
(d) MIS problems are not easy to define or structure
(e) The body of knowledge in MIS is relatively recent and limited.
< Answer >
98. Which of the following is/are example(s) of external information in an organization?
(a) Daily receipts and expenditures
(b) Salesperson Quotas
(c) Descriptions of customer satisfaction with products and services
(d) Quantity of an item on-hand in inventory
(e) Cost and selling price of the company’s item.
< Answer >
99. Which of the following is not the underlying assumption of direct control?
(a) Performance can be measured
(b) Personal responsibility is absent
(c) The time expenditure is warranted
(d) Mistakes can be discovered in time
(e) The individual who is responsible will take corrective steps.
< Answer >
100. Which of the following does not apply to Just-In-Time (JIT) system?
(a) Suppliers need to be located in close proximity
(b) Organization must have ISO 9001 certification
(c) Reliable transportation facilities should be available
(d) Suppliers need to be capable of providing high quality materials
(e) Long-term relationships should be maintained with the suppliers.
< Answer >
13
Suggested Answers
Introduction to Management (MB111) ): January 2005
1. Answer : (c)
Reason : Conceptual skill refers to the ability to think and conceptualize abstract situations. It is the
ability to understand and coordinate the full range of corporate objectives and activities.
Hence, from above discussion, we can infer that option (c) is correct.
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2. Answer : (d)
Reason : The major difference in skill requirements between middle and top managers is that top
managers generally require higher level conceptual skills but less technical skills than
middle managers.
Hence, from above discussion, we can infer that option (d) is correct.
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3. Answer : (b)
Reason : Maintaining self-developed networks of outside contacts and informers who provide
favours and information can be best described as the liaison role.
Hence, from above discussion, we can infer that option (b) is correct.
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4. Answer : (c)
Reason : When a planning exercise is implemented in production cycle, it is controlling and
guiding the work schedules helps in reaching the desired goals. (c) is correct answer.
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5. Answer : (a)
Reason : A Gantt chart is essentially a bar graph with time on the horizontal axis and the activities
to be scheduled on the vertical axis.
Hence from above discussion, we can infer that option (a) is correct.
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6. Answer : (d)
Reason : A bureaucracy is a highly structured, formalized and impersonal organization. It has
narrow spans of control, as there are multiple hierarchical levels.
Hence, from above discussion, we can infer that option (d) is not a characteristic of
bureaucracy.
Options (a), (b), (c) and (e) are all characteristic of bureaucracy.
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7. Answer : (c)
Reason : As per Frederick Taylor, Soldiering refers to the practice of employees deliberately
working at a place slower than their capabilities. So, (c) is correct answer.
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8. Answer : (a)
Reason : According to the Scientific Management School of Thought, Work Methods Study is
defined as the systematic, objective and critical examination of all the factors governing
the operational efficiency of a specified activity to bring about improvement.
Hence, from above discussion, we can infer that option (a) is correct.
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9. Answer : (a)
Reason : Pre-conventional Level of Moral Development is influenced exclusively by personal interest. It is
concerned with following rules only when it's of interest.
Hence from above discussion, we can infer that option (a) is correct.
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10. Answer : (d)
Reason : Locus of Control indicates the degree to which people believe they are masters of their
own fate.
Hence from above discussion, we can infer that option (d) is correct.
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11. Answer : (d)
Reason : Social responsibility is defined as a business firm’s obligation, beyond that required by
law and economics, to pursue long-term goals that are good for society.
Balance of Responsibility and Power is an argument for Social Responsibility of
Business.
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Hence from above discussion, we can infer that option (d) is correct.
Options (a), (b), (c) and (e) are all arguments against Social Responsibility of Business.
12. Answer : (c)
Reason : Non-allowance for participation of stakeholders in the decision-making process is not an
ethical guideline for managers.
Hence from above discussion, we can infer that option (c) is correct.
Options (a), (b), (d) and (e) are all ethical guidelines for managers.
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13. Answer : (c)
Reason : Planning is defined as the process by which managers set missions and objectives, assess
the future and develop courses of action to accomplish these objectives.
Management that does a good job of planning will have direction and purpose, and
planning is likely to minimize wasted effort. All of these can occur, even if the objectives
being sought are missed.
Hence, from above discussion, we can infer that option (c) is a common misconception
about planning.
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14. Answer : (c)
Reason : Formal planning increases organizational effectiveness and provides efficiency in
operations, thus improving organizational performance.
Hence, from above discussion, we can infer that option (c) is not a correct criticism of
formal planning.
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15. Answer : (d)
Reason : A procedure is a series of interrelated sequential steps that can be used to respond to a
well-structured problem. (a) Rules are statements of actions that must be taken or not
taken in a given situation. (b) A policy is defined as a general guideline for taking an
action. (c) A budget is a statement that outlines the expected results of a given future
period in numerical terms. (e) Norms are standards set by a group that regulate and foster
uniformity in member behaviors.
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16. Answer : (c)
Reason : The relationship between cause and consequence is a premise. Planning premise is
defined as the anticipated environment in which plans are expected to operate. It includes
assumptions or forecasts of the future and known conditions that will affect the operation
of plans.
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17. Answer : (c)
Reason : An objective is the aim of an action. It implies a specific work to be accomplished within
a given period of time.
Short-term objective is developed to accomplish a work in a very short period of time.
Hence, from above discussion, we can infer that option (c) is correct.
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18. Answer : (e)
Reason : MBO is the joint setting of goals and objectives by superiors and subordinates and
clarifying on the objective itself.
Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and
‘bottom up’ process.
Hence, from above discussion, we can infer that option (e) is correct.
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19. Answer : (c)
Reason : Differentiation is the tendency of a system to move towards increased specialization of
various tasks.
Hence, from above discussion, we can infer that option (c) is correct.
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20. Answer : (c)
Reason : MBO (Management By Objectives) is the process of joint setting of goals/objectives by
the superior and the subordinate, and clarifying on the objective itself.
The various steps in the MBO Process are:
(i) Develop Overall Organizational Goals.
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15
(ii) Clarify organizational roles.
(iii) Establish specific goals for various departments, subunits and individuals.
(iv) Formulate action plans.
(v) Implement and maintain self-control.
(vi) Do Periodic Review.
(vii) Do performance appraisal.
Hence, from above discussion, we can infer that option (c) is correct.
21. Answer : (c)
Reason : The various steps in the strategic planning process are as follows:
(i) Defining the Mission of the Organization.
(ii) Developing Organizational Objectives.
(iii) Assessing Organizational Resources, Risks and Opportunities.
(iv) Formulating Strategy.
(v) Implementing Strategy.
(vi) Monitoring and Adopting Strategic Plans.
Hence, from above discussion, we can infer that option (c) is correct.
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22. Answer : (a)
Reason : A question mark is a business unit that has a small relative market share in a rapidly
growing market. The future performance of such a business unit is uncertain.
Hence, from above discussion, we can infer that option (a) is correct.
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23. Answer : (c)
Reason : The final step in strategic planning is about monitoring and adopting strategic plans. It
consists of a feedback process, which enables the manager to evaluate the effectiveness of
the strategy in action.
Hence from above discussion, we can infer that option (c) is correct.
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24. Answer : (d)
Reason : Analysing the external environment and the organisation’s resources are usually part of
Strategic planning process.
Hence, from above discussion, we can infer that option (d) is correct.
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25. Answer : (c)
Reason : Delphi technique is a group decision-making technique that involves a group of experts
responding to a questionnaire.
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26. Answer : (b)
Reason : Tina, in the example given, is operating under conditions of certainty.
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27. Answer : (e)
Reason : Implementation of the alternatives includes conveying a decision to those affected and
getting their commitment to it.
Hence from above discussion, we can infer that option (e) is correct.
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28. Answer : (a)
Reason : Brainstorming is a way to make decisions more creative that allows, “freewheeling” of
many alternatives but does not allow criticism of alternatives. This technique is used to
bring forth many alternative solutions; it involves group of people brought together to
generate as many novel ideas as possible on a given topic without evaluating them.
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29. Answer: (d)
Reason : The preference or utility theory is based on the belief that individual attitudes toward risk
vary with events, with people and positions.
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30. Answer : (d)
Reason : Raj, Ramesh and Rajesh are all making decisions about how to approach the team project
and they will probably rely on Bounded rationality, which is defined as a concept that
suggests that the ability of managers to be perfectly rational in making decisions is
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16
limited by such factors as cognitive capacity and time constraints. (a) In rational decision
making, managers possess and understand all the information that is relevant to their
decisions at the time they make them. (b) Break-even analysis is a measure by which the
level of sales, which is necessary to cover all fixed costs, can be determined. (c) Intuition
is "direct perception of truth, fact, etc., independent of any reasoning process; immediate
apprehension." (e) Garbage can model is a nonrational model of managerial decisionmaking
stating that managers behave in virtually a random pattern in making
nonprogrammed decisions.
31. Answer : (b)
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.
Hence, from above discussion, we can infer that option (b) is correct.
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32. Answer : (c)
Reason : Alexis has implemented a new decision at her company. Her decision encompasses
marketing her products to overseas markets during the next five years. This decision is
projected to bring in $20 million in profits during that time frame. Alexis believes this
decision will move her organization into one of the top five positions within the industry.
Alexis has most probably made a strategic decision.
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33. Answer : (c)
Reason : Well defined hierarchy of authority is a principle that advocates the need for designing a
hierarchy of authority where individuals work in co-ordination and contribute to the
achievement of organizational goals. (c) is correct answer.
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34. Answer : (c)
Reason : All other things being equal, as the span of control grows wider or larger, organizational
design usually becomes more efficient, as there are fewer hierarchical levels.
Hence from above discussion, we can infer that option (c) is correct.
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35. Answer : (b)
Reason : Equifinality implies reaching the same result by different means.
Hence, from above discussion, we can infer that option (b) is correct.
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36. Answer : (b)
Reason : Majority of the decisions in an organization flows through the organization structure level
by level. If managers are totally involved in all processes at their level, to their optimum
capacity, the management system followed is bottom-up management system. (b) is
correct answer.
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37. Answer : (d)
Reason : Customer Departmentation is done to service particular types of clients or customers.
Coordination between sales and other functions becomes difficult as Customer-based
Departmentation is applicable only to the sales function.
Hence from above discussion, we can infer that option (d) is not true about Customer
Departmentation.
Options (a), (b), (c) and (e) are all true about Customer Departmentation.
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38. Answer : (c)
Reason : Stage 3 of Matrix Structure is a permanent overlay. In this stage, the managerial
integrators operate on a permanent basis, frequently through permanent interdepartmental
teams.
Hence from above discussion, we can infer that option (c) is correct.
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39. Answer : (c)
Reason : The Better Than Ordinary Fast Food Company desires to focus on the varying customer
needs found at its many operations across the country. This organization would probably
derive the most benefit from engaging in geographic-based divisions within its structure.
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40. Answer : (b) < TOP >
17
Reason : A matrix structure is a type of departmentalization that superimposes a horizontal set of
divisional reporting relationships onto a hierarchical functional structure. So, (b) is
correct answer.
41. Answer : (c)
Reason : Delegate means to grant or confer. Thus, a manager grants or confers on subordinates
certain tasks and duties along with sufficient authority, to accomplish these.
Explaining the relevance of delegated tasks to larger projects or to department or
organization goals is most likely to increase the effectiveness of delegation.
Hence, from above discussion, we can infer that option (c) is correct.
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42. 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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43. Answer : (a)
Reason : Functional authority is the authority to control the functions of other departments, related
to specific tasks.
Hence, from above discussion, we can infer that option (a) is correct.
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44. Answer : (c)
Reason : According to Kreitner, "Centralization is the relative retention of decision-making
authority by top management."
Hence, from above discussion, we can infer that option (c) is correct.
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45. Answer : (d)
Reason : The original source of an organisation’s culture is most strongly associated with the
vision of the organisation’s founder(s).
Hence, from above discussion, we can infer that option (d) is correct.
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46. Answer : (b)
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 is distinctive in nature, as each organization has its own management philosophy,
mission and objectives etc.
Hence from above discussion, we can infer that option (b) is not a characteristic of
Organizational Culture.
Options (a), (c), (d) and (e) are all characteristics of Organizational Culture.
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47. Answer : (d)
Reason : Strong cultures have a greater influence on employees than do weak cultures.
Hence from above discussion, we can infer that option (d) is correct.
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48. Answer : (c)
Reason : Organizational culture is similar to an individual’s personality.
Hence from above discussion, we can infer that option (c) is correct.
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49. Answer : (c)
Reason : Manager Inventory Chart is a partial organization chart that shows managerial positions,
current incumbents, potential replacements for each position, and the age of each person.
However, it does not show the position to which a manager may be promoted.
Hence from above discussion, we can infer that option (c) is not an advantage of
Manager Inventory Chart.
Options (a), (b), (d) and (e) are all advantages of Manager Inventory Chart.
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50. Answer : (c)
Reason : The Recruitment Procedure consists of the following steps:
(i) Performing Job Analysis.
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(ii) Designing Job Description.
(iii) Developing a Job Specification.
(iv) Attracting a Pool of Applicants.
(v) Selecting Best Recruits.
Hence, from above discussion, we can infer that option (c) is correct.
51. Answer : (b)
Reason : Work Sampling Test is a selection device which involves presenting applicants with a
miniature model of a job and have them perform a task that is central to that job.
Hence from above discussion, we can infer that option (b) is correct.
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52. Answer : (c)
Reason : As a source of potential job candidates, employee referrals generate the best referrals,
because employees can provide information on the applicant’s ability to perform on the
job and how well he or she can get along with others.
Hence from above discussion, we can infer that option (c) is correct.
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53. Answer : (d)
Reason : BARS minimizes subjective interpretation inherent in graphic rating scales. They make
use of ‘anchors’ (common reference points of performance) and they concentrate on jobspecific
behaviors and hence are highly meaningful. However, BARS are timeconsuming
and costly to develop, as they should cover each dimension of all jobs in the
department. As a result, BARS tend to be used in situations in which relatively large
numbers of individuals perform similar jobs.
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54. Answer : (b)
Reason : Performance appraisal involves the formal evaluation of an individual's job performance.
Emphasizing the evaluator's impression of the individual's work habits is least likely to
improve the effectiveness of the appraisal process.
Hence, from above discussion, we can infer that option (b) is correct.
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55. 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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56. Answer : (b)
Reason : A performance appraisal technique that makes use of feedback from supervisors,
subordinates and co-workers, is known as 360-degree appraisal.
Hence, from above discussion, we can infer that option (b) is correct.
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57. Answer : (c)
Reason : Smoothing conflict resolution technique implies emphasizing the areas of agreement and
common goals and de-emphasizing disagreements.
Hence, from above discussion, we can infer that option (c) is correct.
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58. Answer : (b)
Reason : Technology is an external force of change.
Hence from above discussion, we can infer that option (b) is not an internal force of
change.
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19
Options (a), (c), (d) and (e) are all internal forces of change.
59. Answer : (d)
Reason : Process Consultation intervention technique is concerned with the interpersonal relations
and dynamics operating in work groups.
Hence, from above discussion, we can infer that option (d) is correct.
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60. Answer : (b)
Reason : Manipulation strategy of overcoming resistance to change, usually involves selectively
providing information about a change so that it appears more attractive or necessary to
potential resisters.
Hence, from above discussion, we can infer that option (b) is correct.
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61. Answer : (a)
Reason : Brainstorming is one of the best-known techniques for facilitating creativity, developed
by Alex F. Osborn.
Hence, from above discussion, we can infer that option (a) is correct.
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62. Answer : (d)
Reason : Mc Gregor's Theory X manager assumes that individuals dislike work and will avoid it
whenever possible.
Hence, from above discussion, we can infer that option (d) is correct.
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63. Answer : (c)
Reason : According to Herzberg’s motivation-hygiene theory, relationship with peers, status,
supervision and security are the four responses, that are all hygiene factors.
Hence, from above discussion, we can infer that option (c) is correct.
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64. Answer : (c)
Reason : The Porter-Lawler model of motivation, which is an improvement of the expectancy
theory, assumes that motivation does not equal satisfaction. It assumes satisfaction does
not lead to performance. Rather, the converse is true: performance can, but does not
always, lead to satisfaction through the reward process. It assumes that motivation is not a
simple cause-and-effect matter. The model advocates that managers carefully assess their
reward structures and also assumes that performance leads to intrinsic as well as extrinsic
rewards.
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65. Answer : (d)
Reason : People with a need for affiliation strive to develop friendships, prefer to work in
cooperative situations, and work toward a high degree of mutual understanding in their
relationships.
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66. Answer : (a)
Reason : According to Maslow, an employee who has a need for more self-respect, has unmet
Esteem needs.
Hence from above discussion, we can infer that option (a) is correct.
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67. Answer : (b)
Reason : According to the Tannenbaum and Schmidt Leadership model, the statement that would
be most accurate regarding someone exhibiting behavior toward right of the continuum
of leader behaviours is option (b), i.e., He would be more likely to ask the group to make
a decision.
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68. Answer : (d)
Reason : Tommy has a remarkable ability to get his employees to do what he directs. He is an upper
level manager at the company and is very gifted with business knowledge. The
employees fear that if they do not act as directed Tommy would give them a poor work
reference. We can say Tommy has Coercive power.
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69. Answer : (c)
Reason : When managers have substantial but not complete confidence and trust in subordinates
and solicit advice from subordinates while retaining the right to make final decision,
Likert’s four systems of management describes it as consultative leadership style. (a) In
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Participative leadership style, the manager has complete trust and confidence in the
subordinates in all the matters. (b) In Benevolent-authoritative leadership style, the
managers have a patronizing confidence and trust in subordinates, solicit some ideas and
opinions from subordinates, motivate with rewards and some fear and punishment, permit
some upward communication and allow some delegation of decision-making but with
close policy control. (d) In Exploitative-authoritative leadership style, the managers
represent dictatorial leadership behavior with all decisions made by the manager. (e) Trait
theory of leadership style assumes that leaders share certain inborn personality traits.
70. Answer : (b)
Reason : According to the Managerial Grid, propounded by Blake and Mouton, the most effective
management style is characterized by high concern for people and high concern for
production.
Hence, from above discussion, we can infer that option (b) is correct.
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71. Answer : (c)
Reason : The grapevine is an informal communication system and is popularly known as "rumour
mill". It is not of relevance to interpersonal communication.
Hence, from above discussion, we can infer that option (c) is correct.
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72. Answer : (c)
Reason : The major drawback of feedback control is that the manager does not receive the
information in time to stop the damage. The feedback control is defined as a control type
based on timing that involves regulation exercised after a product or service has been
completed to ensure that the final output meets organizational standards or goals. (a) Feed
forward control is a type based on timing that focuses on the regulation of inputs to
ensure that they meet the standards necessary for the transformation process. (b) A
concurrent control is a control type based on timing that involves the regulation,
monitoring and adjusting of ongoing activities that are part of the transformation process
to ensure that they confirm to organizational standards. (d) Yes-No controls are a
technique used at one or more screening point when specific approval is needed to permit
the activity to continue. (e) Screening control is nothing but concurrent control.
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73. Answer : (c)
Reason : Shushin Koyo is known as life-time employment which means recruitment of employees
immediately after graduation, generation of employment until retirement, and mandatory
retirement. (a) Seniority system is closely related to lifelong employment and provides
privileges for older employees who have been with the enterprise for a long time. (b)
Continuous training is to acquire new skills for the organizational improvement. (d) As a
kacho (manager) the task of a leader is not only supervising his people on the work, but
also showing fatherly concern for his subordinate’s off-the-work life. (e) Kanban is a
subsystem of the JIT approach involving a simple parts-movement system that depends
on cards and containers to pull parts from one work center to another.
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74. Answer : (b)
Reason : Benchmarking is the practice of comparing, on some measurable scale, the performance
of a key business operation in-house vis-à-vis a similar operation in another organization.
It involves identifying, studying and building upon the best practices of organizational
role models.
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75. Answer : (b)
Reason : A budget is a plan expressed in numerical terms. It is usually expressed in financial terms.
The budget, which shows costs of major assets such as new plant, machinery, land etc. is
known as a capital budget. The other budgets included are cash budget which shows all
the sources of cash income and cash expenditure; revenue budget shows the anticipated
income from normal operations; operating budget is concerned with planned operations
within the organization; expense budget shows the anticipated expenses for the
organization during the coming time period.
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76. Answer : (c)
Reason : If Boeing Aerospace Co. has difficulty in communicating with the British Air force
because of the abbreviations used by the British Military, this is a problem in Semantics.
(a) The grapevine is an informal communication channel. (b) A message that is generated
by the receiver in response to the sender’s original message is known as feedback.
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(d) Encoding is the process, in communication, of translating the intended meaning into
words and gestures, and takes place before the message exchange can take place. (e)
Synectics is a creativity technique which involves a complex set of group interactions
from which a solution emerges.
77. Answer : (b)
Reason : MBWA is a practice whereby managers frequently tour areas for which they are
responsible, talk to various employees, and encourage upward communication.
A grapevine is an informal communication channel. A horizontal communication is that
which flows laterally within the organization. Downward communication occurs when
information flows down the hierarchy form superiors to subordinates. Upward
communication consists of messages form subordinates to superiors
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78. Answer : (c)
Reason : Creative process is rarely simple and linear and usually comprises four overlapping and
interacting phases. Phase (I): Unconscious scanning, Phase (II): Intuition, Phase (III):
Insight and Phase (IV): Logical formulation.
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79. Answer : (d)
Reason : Leverage ratios indicate the firm’s financial risk. (a) Profitability ratios provide a firm’s
overall economic performance. (b) Liquidity ratios measure a firm’s capacity to meet its
short-term financial obligations. (c) Activity ratios reflect a firm’s efficiency in resource
utilization. (e) Productivity is an efficiency concept that gauges the ratio of outputs
relative to inputs into a productive process.
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80. Answer : (e)
Reason : (a) Sales forecast is an estimate of sales in a future period, which is future-oriented and
hence is an example of feed forward control.
(b) Preventive maintenance includes the maintenance activities performed to keep the
equipment in working condition before it breaks down. It is an example of feed
forward control.
(c) Inventory control is planning the requirement of parts etc. for production operations
and hence is an example of feed forward control.
(d) Inspection of quality of incoming raw materials for production is an example of feed
forward control.
(e) Remedial maintenance includes the maintenance activities that restore facilities and
equipment to an acceptable working condition after a breakdown or malfunction has
occurred or the normal operations hindered. This is an example of feedback control.
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81. Answer : (c)
Reason : Kanban is a subsystem of the JIT approach involving a simple parts movement system
that depends on cards and containers to pull parts from one work center to another.
(a) ABC analysis is a technique of inventory management, in which the inventory is
distributed based on price & usage of the inventory. (b) A JIT is an approach to inventory
control that emphasizes having materials arrive just as they are needed in the production
process. (d) Kaizen is a Japanese term implying continuous improvement. (e) EOQ is an
inventory control method developed to minimize ordering and holding costs, while
avoiding stock out costs.
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82. Answer : (b)
Reason : (a) Forecasting manpower demand implies how many people with what abilities the
organization will need in the foreseeable future to remain in operation. While forecasting
manpower demand, factors such as expected growth of the organization, budget
constraints, and introduction of new technology, need to be considered.
(b) A skills inventory is a computerized database containing basic information about each
employee that can be used to assess the availability of candidates for meeting current
and future human resource needs. It typically contains information regarding each
employee’s knowledge, skills, experience, interests, performance, and relevant personal
characteristics. A skills inventory is one of the means of assessing internal labor supply,
which is one way of forecasting manpower supply.
(c) Replacement training is a means of identifying potential candidates to fill specific
managerial positions.
(d) Succession planning is a means of identifying individuals with high potential. It
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ensures that individuals receive appropriate training and job assignments aimed at their
long run growth and development.
(e) Planning of human resource actions refers to matching of projected human resource
needs with projected availability of human resources, which provides the basis for taking
various actions to ensure that supply will equal demand at the time specified.
83. Answer : (d)
Reason : The following are the characteristics of DSS:
(a) Executive decisions are the focal points in DSS.
(b) DSS specializes in easy-to-use software.
(c) DSS employs interactive processing.
(d) The control and use of DSS rests with the users and not the central information
management department.
(e) DSS is adaptable to change.
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84. Answer : (a)
Reason : Job enlargement involves performing a variety of jobs or operations at the same time.
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85. Answer : (a)
Reason : (a) Linear programming is a mathematical technique used in optimum allocation of
resources in the organization.
(b) Decision tree is a graphical method for identifying alternative actions, estimating
probabilities, and indicating the resulting expected pay-off.
(c) Simulation is the technique of developing a model that represents a real or existing
system for solving complex problems that cannot be readily solved by other
techniques.
(d) Waiting-line or queuing model is a mathematical model that describes the operating
characteristics of queuing situations, in which service is provided to persons or units
waiting in line.
(e) Game theory is a technique for determining the strategy that is likely to produce
maximum profits in a competitive situation.
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86. Answer : (b)
Reason : Productivity is the ratio of an organization's output of goods and services to its inputs.
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87. Answer : (c)
Reason : Concurrent control is exercised during the operation of a programme. It provides
measures for taking corrective action or making adjustments while the programme is still
in operation and before any major damage is done.
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88. Answer : (b)
Reason : A PERT network depicts the sequence of activities needed to complete a project and the
time or costs associated with each activity.
Hence from above discussion, we can infer that option (b) is correct.
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89. Answer : (c)
Reason : Job analysis involves the process of identifying the nature of a job (job description) and
the qualities of the likely job holder (job specification). It doesn’t involve fixing the rate
of pay for the job.
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90. Answer : (c)
Reason : Improved effectiveness of performance audit is a benefit of performance budgeting, and
not ZBB. The rest are all benefits of ZBB.
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91. Answer : (c)
Reason : One of the organizational features peculiar to Japanese companies that can affect the
conduct of negotiations is the group decision-making system known as ringi. Ringi is a
multistep procedure for building consensus and involves a complex set of negotiations
through which divergent viewpoints are considered and accommodated.
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92. Answer : (a)
Reason : The stage of Kurt Lewin's change model where employees need to be helped to integrate
changed attitudes and behaviors into their normal ways of doing things is called
Refreezing. Refreezing is ensuring that the individual, after change, will not revert back
to his old ways of doing things. Unfreezing is the process of preparing individuals to
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accept change. Changing is the actual process of introducing change which follows
unfreezing. Moving is shifting away from existing behavior to new behavior.
Benchmarking is the practice of comparing, on some measurable scale, the performance
of a key business operation in-house vis-à-vis a similar operation in another organization.
93. Answer : (d)
Reason : Members of a project team assessing the market potential of a new product are engaged
in horizontal communication which is defined as the lateral or diagonal message
exchange whether within work-unit boundaries, involving peers who report to the same
supervisor, or across work-unit boundaries, involving individuals who report to different
supervisors. (a) Upward communication is a flow of communication from operative
employees upward to the top executive along the chain of command. (b) A grapevine is
defined as an informal communication channel. (c) Downward communication is the
communication flow from people at higher levels to those at lower levels in organization
hierarchy. (e) Vertical communication is the communication between departments of an
organization that generally follows the work flow rather than the chain of command, and
this provides a direct channel for coordination or problem solving.
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94. Answer : (a)
Reason : Multinational Organization engages in production or service activities through its own
affiliates in several countries, maintains control over the policies of those affiliates, and
manages from a global perspective.
Hence, from above discussion, we can infer that option (a) is correct.
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95. Answer : (c)
Reason : Recruiting people mainly from the home country should not be a characteristic of
borderless organizations, as those people might not understand the culture and market of
the host country fully. Also, the best people might not be recruited as a result of this.
Hence, from above discussion, we can infer that option (c) is not a characteristic of borderle
Options (a), (b), (d) and (e) are all characteristics of borderless organizations.
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96. Answer : (c)
Reason : Polycentric attitude is based on the view that host-country managers know the best
practices for running their operations.
Hence from above discussion, we can infer that option (c) is correct.
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97. Answer : (c)
Reason : MIS (Management Information System) incorporates an unusually wide variety of
knowledge areas.
Hence from above discussion, we can infer that option (c) is not true about Management
Information System (MIS).
Options (a), (b), (d) and (e) are all true about Management Information System (MIS).
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98. Answer : (c)
Reason : Descriptions of customer satisfaction with products and services are examples of external
information in an organization.
Hence from above discussion, we can infer that option (c) is correct.
Options (a), (b), (d) and (e) are all examples of internal information in an organization.
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99. Answer : (b)
Reason : The underlying assumptions of direct control are:
(i) Performance can be measured.
(ii) Personal responsibility exists.
(iii) The time expenditure is warranted.
(iv) Mistakes can be discovered in time.
(v) The individual who is responsible will take corrective steps.
Hence, from above discussion, we can infer that option (b) is not the underlying
assumption of direct control.
Options (a), (c), (d) and (e) are all underlying assumptions of direct control.
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100. Answer : (b)
Reason : Having ISO 9001 certification is not a prerequisite to adopt a Just-In-Time (JIT) system.
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Hence, from above discussion, we can infer that option (b) is correct.
Options (a), (c), (d) and (e) are all characteristics of Just-In-Time (JIT) system.
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