EXAM GUIDE BOOK SAMPLE COPY

MASTER OF BUSINESS ADMINISTRATION

(MBA) SEMESTER – I
MBA101/MB0038 - MANAGEMENT PROCESS & ORGANIZATONAL
BEHAVIOUR – 4 CREDITS (BOOK ID B1621) MODEL QUESTION PAPER

THE PATTERN OF EXAM WILL BE LIKE BELOW

Duration: 3 hours
Total marks: 70

Section A
Multiple Choice Questions (MCQ) , each question carries TWO
marks] (2*10=20 marks)

Section B
SHORT ANWER QUESTIONS (5 Marks each) [Please answer any
FOUR questions on the Answer Sheet provided separately for
the purpose.] (4*5=20 Marks)
 Section C
ESSAY-TYPE QUESTIONS (10 Marks each) [Please answer any
THREE questions on the Answer Sheet provided separately for
the purpose.] (10*3=30 Marks)
 Section A
Multiple Choice Questions (MCQ) , each question carries TWO
marks] (2*10=20 marks)

Qno1. (i) When one can communicate to his boss as well as others laterally; the structure is called as
_______

(ii) When one belongs to one of the basic pillars on which the business is built but report to another
head, the structure is called as .__________

a. Flat, matrix

b. Hierarchical, team

c. Simple, adhocracy

d. Adhocracy, bureaucracy

Answer - Flat, matrix

Qno2.Organisations are ongoing and the structure determines the relationship between the and
.

a. Departments, jobs

b. Functions, positions

c. Team, responsibilities

d. Hierarchy, roles

Answer – Functions, positions

Qno3. (i).The system takes its own feedback and uses it and other resources to _______ .

(ii) Any change or modification required to correct a problem would start by looking at the ______
."

a. (i)-Modify, (ii)--Highest level

b. (i)--Change, (ii)--Source

c. (i)--Self-rejuvinate, (ii)--Lowest level

d. (i)--Improve efficiency, (ii)--Highest level

Answer – c. (i)--Self-rejuvinate, (ii)--Lowest level

QNO4. The management functions that figure in management process include ________ ,
organising, staffing, controlling and ____________ .

a. Recruiting, planning

b. Authorising, directing

c. Planning, analysing

d. Planning, leading

Answer - d. Planning, leading

Qno5. (i) __________ is the start point for creative decision making.

(ii). When a decision is taken after verifying the insight and checking its viability, it is called ________
.

a. (i) - Incubation, (ii) - Logical formulation

b. (i) - Insight, (ii) - Verification

c. (i) - Intuition, (ii) - Rational decision

d. (i) - Logical formulation, (ii) - Programmed decision

Answer - a. (i) - Incubation, (ii) - Logical formulation

Qno6.(i) The strategy which talks about using it's strength and entering untouched opportunity areas,
is called ___________ .

(ii) Porter's five forces suggest that companies have to make a strategic choice by choosing to be a
____________, or differentiator or follower of focus strategy.

a. (i)- Red Ocean, (ii)- Cost center

b. (i)- Blue Ocean, (ii)- Resource leader

c. (i)- Blue Ocean, (ii)- Cost leader

d. (i)- Red Ocean, (ii)- Knowledge center

Answer – c.i) - Blue Ocean, (ii) - Cost leader

QNO7. Consider the following statements with respect to decision making and its model:

(i) Taking a decision which is not entirely rational because of lack of information on issues, is called
'Bounded Rationality'.

(ii) The segments/ products and services not served by a business is termed as Red Ocean."

State True or False.

a. (i)- True, (ii)- False

b. (i)- True, (ii)- True

c. (i)- False, (ii)- False

d. (i)- False, (ii)- True

Answer a. (i)- True, (ii)- False

QNO8. (i) Organising means providing co-ordination horizontally and vertically by creating
a/an________.

(ii) Organising can be described as __________ and classifying required activities.

a. (i) Order, (ii) identifying

b. (i) Communication, (ii) grouping

c. (i) Tasks, (ii) allocating

d. (i) Roles, (ii) specifying

Answer - (i) Order, (ii) identifying

QNO9. Consider the following statements with respect to the types of organisations:

(i) In formal organisations, the relationships, roles, norms and responsibilities are defined but the
outcome of achieving or not achieving the goal is not defined.

(ii) Informal organisation refers to a network of personal and social relationships which originate
within the formal set up.

State True or False:

a. (i)- True, (ii)- True

b. (i)- False, (ii)- False

c. (i)- False, (ii)- True

d. (i)- True, (ii)- False

Answer – c. (i)- False, (ii)- True

QN10. Consider the following statements with respect to an advantage of implementing PERT
methodology in an organisation:

(i) It enables managers to aim reports and builds pressure for action at the right spot.

(ii) It forces the managers to plan since they have to make a time event chart. State true or false.

a. (i)- True, (ii)- True

b. (i)- True, (ii)- False

c. (i)- False, (ii)- False

d. (i)- False, (ii)- True

Answer - (i)- True, (ii)- True

QNO11. The requirement for _________ control is to review __________to see whether the
input variables are identified and their inter-relationships continue to represent realities.

a. Feed-forward, regularly

b. Real time information, quarterly

c. Feed-backward, annually

d. Critical Control Points, occasionally

Answer - Feed-forward, regularly

QNO12. Consider the following statements with respect to the relation between organisational
behaviour and Human Resource Management in an organisation:

(i) In HR, we learn about learning, personality, perception, attitude, emotions and motivation.

(ii) Humans can vary their production, qualitatively and quantitatively for reasons such as time of
day, mood, interest, motivation. Besides great pay, they need motivation and meaningful work

Which of them is True?

a. (i)-True, (ii)-True

b. (i)-True, (ii)-False

c. (i)-False, (ii)-False

d. (i)-False, (ii)-True

Answer - d.(i)-False, (ii)-True

QNO13.Consider the following statements with respect to organisational behaviour:

(i) It tries to integrate both individual and organisational objectives so that both are achieved
simultaneously.

(ii) It addresses issues of workplace motivation or conflict which are oriented towards
organisational objectives.

State true or false.

a. (i)-True, (ii)-True

b. (i)-True, (ii)-False

c. (i)-False, (ii)-False

d. (i)-False, (ii)-True

Answer - a.(i)-True, (ii)-True

QNO14.Personality influences his/her interactions with and adaptations to_________ and

__________ environments.

a. Positive, negative

b. Physical, social

c. Situational factor, social

d. Individual personality, work

Answer - Physical, social

QNO15. (i). Values define modes of socially acceptable conduct and therefore social sanction make
adjustments in our values. This is called as .

(ii). is impacted by individual values as well as that of others and hence the need to achieve value
congruence in organisations.
a. (i). Espoused, (ii). Behaviour

b. (i). values ‘in-use’, (ii). Task outcome

c. (i). Terminal values, (ii). Perception

d. (i). Instrumental values, (ii). Performance

Answer - b. (i). values ‘in-use’, (ii). Task outcome

QNO16.

(i) The social learning theory was proposed by ___________.

(ii) It explains human behaviour in terms of continuous reciprocal interaction between

_____________, behavioural and environmental influences.

a.(i) Pavlov (ii) unconditioned stimulus

b.(i) Munn N.L (ii)conditioned stimulus

c. (i) Bandura (ii) cognitive

d. (i) Vroom (ii) emotional

Answer - c. (i) Bandura (ii) cognitive

Qno 17.Size, ________interaction ,and __________ are the key ingredients of a group.

a. Deadlines, roles

b. Influence, goal

c. Safety, security

d. Power, status

Answer - b. Influence, goal

Qno18. Consider the following statements with respect to designing teams based on functions:

(i) Teams should be large enough to be diverse and creative and small enough for easy
communication and cohesion.
(ii) Every team has seventeen functions to work on to be successful. State True or False:

a.(i)- True, (ii)- True

b.(i)- False, (ii)- True

c. (i)- True, (ii)- False

d. (i)- False, (ii)- False

Answer - c. (i)- True, (ii)- False

Qno19. Bernard Bass suggests that there are five different styles namely directive style or telling,

__________ participative, negotiative or selling and ___________.

a.Orientation, bureaucrat

b.Authoritarian, democratic

c. Delegative, consultative

d. Developer, executive

ANSWER - c. Delegative, consultative

Qno20. (i)___________is a process in which two or more parties exchange goods or services and
attempt to agree upon the exchange rate for them.

(ii) One way to assess____________ is to begin by identifying the best and worst possible outcomes,
next, specify what impact it will have on these outcomes.

a.(i) Negotiation, (ii) exhaustion

b.(i) Conflict, (ii) bottleneck

c. (i) Negotiation, (ii) trade-offs

d. (i) Stress, (ii) arbitrator

ANSWER - c. (i) Negotiation, (ii) trade-offs

Qno21. Consider the following statements:

(i). Status is a socially defined position or rank given to groups or group members by others.

(ii). Conformity can be defined as “acceptable standards of behaviour that are shared by the group
members

State True or False:

a.(i). - True, (ii) - True

b.(i). - False, (ii) - False

c.(i). - False, (ii) - True

d. (i). - True, (ii) - False

ANSWER – d. (i). - True, (ii) - False

Qno22. Consider the following statements with respect to team:

(i). Cross-functional team is a group of people who gradually assume responsibility for self-direction in
all aspects of work.

(ii) A team is any group of people organised to work together interdependently and cooperatively to
meet a purpose or a goal.

State True or False:

a. (i). True, (ii) - True

b. (i). False, (ii) - True

c.(i). True, (ii) - False

d.(i). False, (ii) – False

ANSWER - b. (i). False, (ii) - True

Qno23. State True or False:

(i) In individual-group conflict the individuals find themselves in conflict with groups. For example,
a manager differing with the departmental policy.

(ii) Conflict in most organisations persists between line and staff, because it is partially possible to
define precisely the responsibility and authority relationships between the two.

a. 1-False, 2-False

b. 1-True, 2-True

c. 1- True, 2- False

d. 1- False, 2-True

ANSWER - c.1- True, 2- False

QNO24. Consider the following statements with respect to power to influence people in an
organisation:

(i)In inspirational appeals, the person seeks your participation in making a decision or planning how to
implement a proposed policy, strategy, or change.

(ii) In ingratiation, the person seeks to get you in a good mood or to think favourably of him or her
before asking you to do something.

State True or False:

a. (i) - False, 2- True

b. (i) - False, 2- False

c. (i) - True, 2- True

d. (i) - True, 2- False

Answer - (i) - False, 2- True

QNO25. Consider the following statements with respect to the basic model of change:

(i)The three steps involved in the basic model of change are freezing, change and unfreezing.
(ii)At the unfreezing stage, the forces, which maintain the status quo in the organisational behaviour,
are reduced by refuting the present attitude and behaviour to create a perceived need for something
new.

State True or False:

a. (i) - False, (ii) - True

b. (i) - False, (ii) - False

c. (i) - True, (ii) - False

d. (i) - True, (ii) - True

Answer - (i) - False, (ii) - True

QNO26. Consider the following statements

I. A process is a logically sequenced set of actions.

II. Vision statements must be elaborated and complex. State True or False.

a. I- False, II- True

b. I- False, II- False

c. I- True, II- False

d. I- True, II- True

ANSWER – c. I- True, II- False

QNO27 Fill in the blanks

I. A _________ is a desired future state that the organization attempts to reach.

II. Planning helps management to clarify,_______ and__________ their businesses or
project's development and prospects.

a. I- Vision , II- Mission & goals

b. I- Goal, II- Focus & research

c. I- Focus, II- Goal

d. I- Mission & Goal, II- Vision

ANSWER - b. I- Goal, II- Focus & research

QNO28. Fill in the blanks

I. Engagement can be defined as capturing the __________ of stakeholders.

II. When an employee buys into the vision and mission, time has come for

rather than ___________ .

a) I-Mind Space, II- Leading, directing.

b) I-Leading, II- directing.

c) I-Controlling, II- delegation.

d) I- Planning, II- Organizing.

ANSWER - a) I-Mind Space, II- Leading, directing.

QNO29. True or False

I. If you know your OB, you can completely remove conflict and frustration.

II. Tunnel vision of OB can lead to satisfying employee experiences at the cost of broader system

of an organisation.

a) I-False, II- True.

b) I-True, II- True.

c) I-True, II- False.

d) I- False, II- False.

Answer – a) I-False, II- True.

QNO30. Components of attitude – Pick the correct one:

I. Cognition.

II. Humour.

III.Afftect.

IV.Behaviour. There are three components of an attitude namely 1) Cognition, 2) Affect and 3)
Behaviour.
a. I, II & III

b. I, III & IV

c. I, II, IV

d. II, III & IV.

Answer – b. I, III & IV

QNO31. Fill in the blanks:

I. The term _______ in definition of motivation is concerned with how hard a person tries.

II. Motivation improves ____________ by increasing productivity and decreasing cost.

a) I- Intensity, II- Efficiency.

b) I- Permanent, II- Extinction.

c) I- Leading, II- Reinforce.

d) I- Motivation, II- Experience.

Answer - a) I- Intensity, II- Efficiency

QNO32. Consider the following statements:

I. Punctuated equilibrium model explains a way to bring about balance between time lost in

conflict and deadlines.

II. For a formal work group to be effective, it must be independent.

State True or False.

a. I- False, II- True

b. I- True, II- False

c. I- False, II- False

d. I- True, II- True

Answer - b. I- True, II- False

QNO33. Consider the following statements:

I. Punctuated equilibrium model explains a way to bring about balance between time lost in

conflict and deadlines.

II. For a formal work group to be effective, it must be independent.

State True or False.

a. I- False, II- True

b. I- True, II- False

c. I- False, II- False

d. I- True, II- True

Answer - b. I- True, II- False

QNO34. Consider the following statements:

I. According to Deloitte Touche study, creating vision is one of the characteristics of a leader.

II. A 5, 5 leader is a good compromise between task and people orientation.

State True or False.

a. I- True, II- False

b. I- False, II- True

c. I- True, II- True

d. I- False, II- False

Answer - d. I- False, II- False

QNO35. Fill in the blanks:

I. Power is of two types ___________ and ____________ .

II. “Getting that account will be tough, but I know you can do it”. This is an example of using
__________ as a tactic for influence.

a) I- Formal & Informal, II- Inspiration.

b) I-Formal, II- Informal.

c) I- Inspiring, II- Aggressive & Tactical.

d) I-Passive & Active, II- Knowledge.

Answer – b) I-Formal, II- Informal.

QNO36. Fill in the blanks:

I. The system takes its own feedback and uses it and other resources to .

II. Any change or modification required to correct a problem would start by looking at the ."

a) (I)-Modify, (II)--Highest level

b) (I)--Change, (II)--Source

c) (I)--Self-rejuvenate, (II)--Lowest level

d) (I)--Improve efficiency, (II)--Highest level

Answer - c) (I)--Self-rejuvenate, (II)--Lowest level

EXTRA MCQS, IT WILL HELP TO SOLVE 2 MARKS

QUESTIONS

QNO1. An organisation is a __________ system of people who are structured and meet specified
goals.

a. Geographical

b. Social

c. Private

d. Specified

Answer - b. Social
QNO2. Building a vision involves the joint efforts of the owner and ____________ of the organisation.

a. Employees

b. Stakeholders

c. Competitors

d. Vendors

Answer - b. Stakeholders

QNO3. When a company has many business operations running out of different centres, the plan
made by the head office/ headquarter to achieve the organisational vision, is known to be
_________________.

a. Corporate strategy

b. Functional strategy

c. Business strategy

d. Organisational strategy

Answer - a. Corporate strategy

Qno 4. Peter Drucker is known for the modern management thought of _____________.

a. Improving quality

b. Higher productivity

c. Management by objective

d. Customer orientation

Answer - c. Management by objective

QNO5.When major tasks and activities of the organisation are divided and carried out by different
people in the organisation , it is called ____________.

a. Co-existence of authority and responsibility

b. Division of labour

c. Unity of command

d. Unity of direction

Answer - b. Division of labour

QNO6. When the workers are encouraged to do things which are not defined but add to productivity,
it is called as ___________.

a. Equity

b. Order

c. Initiative

d. Overtime

Answer - c. Initiative

QNO7. Planning should always end in _________ because that is the purpose of planning.

a. Structuring

b. Decision

c. Profits

d. Staffing

Answer - b. Decision

QNO8. Planning implies goal setting for the organisation keeping in mind the constraints, __________
and threats.

a. Opportunities

b. Strengths

c. Weaknesses

d. Deadlines

ANSWER - a. Opportunities

QNO9. A plan that is important and future oriented and forms the hub of fulfilling the vision is called
________________.

a. Corporate plan

b. Operational plan
c. Short-term plan

d. Strategic plan

ANSWER - d. Strategic plan

QNO10. Organising is centred on the concept of _________________ and division of work.

a. Efficiency

b. Specialisation

c. Planning

d. Combination

ANSWER - b. Specialisation

QNO11. Social groups existing within the overall organisational structure can be called as
_________________ organisations. Here relationship is built on likes, dislikes, feelings, and emotions.

a. Matrix

b. Formal

c. Informal

d. Strategic Business Unit

ANSWER - c. Informal

QNO12. Usually in an organisation, a manager may have seven to ten sub-ordinates working under
him. This however, depends on the ___________ and technology level.

a. Structure within the organisation

b. Span of control

c. Complexities in an organisation

d. Nature of industry

ANSWER - d. Nature of industry

QNO13. Controlling can be defined as measuring and _____________ of performance to achieve the
organisational goals.

a. Analysing

b. Correcting

c. Interpreting

d. evaluating

ANSWER - b. Correcting

QNO14. In order to create a feed-forward system, which of the following is required first?

a. Input variable

b. Development of the model system

c. Business vision

d. Revenue target

ANSWER - a. Input variable

QNO15. If a control has to be effective, it must also control the _______________ at the critical point.

a. Direction

b. Exception

c. Output

d. Feedback

ANSWER - b. Exception

QNO16. Which approach is concerned with the growth and development of people towards higher
levels of competency, creativity and fulfilment?

a. Productivity

b. System

c. Contingency

d. Human Resources
ANSWER - d. Human Resources

QNO17._____________ is an important factor while planning because it impacts the way threat and
opportunities are seen by people.

a. Perception

b. Company's Profits

c. Previous Year's Productivity

d. Working Condition

ANSWER - a. Perception

QNO18. By __________, we mean looking at relationships and attempting to attribute causes and
effects and drawing conclusions based on scientific evidence.

a. Organisational Citizenship

b. Systematic Study

c. Productivity

d. Absenteeism

Answer - Systematic Study

QNO19. Traits like temperament, intelligence, reflexes, etc. are generally referred to describe the
influence of ______________ in developing personality.

a. Environment

b. Culture

c. Situation

d. Heredity

Answer - d. Heredity
QNO20. According to Catell's 16 PF model, if a person likes people on the high range as against
impersonal, which personality factor does he / she possess?

a. Emotional stability

b. Reasoning

c. Warmth

d. Liveliness

Answer - c. Warmth

QNO21. The MBTI classifies human beings into four categories of opposite pairs (dichotomies).
Identify the correct one from the following.

a. Thinking or feeling

b. Extroverted or judging

c. Perceiving or thinking

d. Sensing or thinking

Answer - a. Thinking or feeling

QNO22. ____________ are the outcome of evaluative statements or judgments we make on objects,
people and events.

a. Attitudes

b. Values

c. Behaviour

d. Emotions

Answer - a. Attitudes

QNO23. __________________ enables a person to manage his own self, customers and other stake
holders, peers, subordinates and superiors alike.

a. Knowledge

b. Intelligence

c. Emotional Intelligence
d. Behaviour

Answer - c. Emotional Intelligence

QNO24.___________ are also called as important and enduring beliefs or ideals shared by the
members of a culture, whether national, local or organisational.

a. Goals

b. Values

c. Attitude

d. Disposition

Answer - b. Values

QNO25 ______________ emphasises participative set goals that are tangible, verifiable and
measurable.

a. Employee Recognition Programs

b. Employee Involvement Programme

c. Management by Objective

d. Participative Management

Answer - Management by Objective

QNO26 ______________ is concerned with how hard a person tries. This is the element most of us
focus on when we talk about motivation.

a. Persistence

b. Direction

c. Immediacy

d. Intensity

Answer - d. Intensity

QNO27 A/an _________________ is a relatively permanent informal group that involves intense
friendship for a narrow (often negative) goal.
a. Interest group

b. Reference group

c. Membership group

d. Clique

Answer - d. Clique

QNO28. In the group process, if the personal relations function is 'testing and dependence', what
would be its task function?

a. Orientation

b. Organising to get work done

c. Information-flow

d. Problem-solving

Answer - a. Orientation

QNO29. _____________ can be defined as 'acceptable standards of behaviour that are shared by the
group members'.

a. Conformity

b. Norms

c. Groupthink

d. Social loafing

Answer - b. Norms

QNO30. A team can be defined as a group of people operating with complementary skills and a high
degree of _________ and accountability.

a. Authority

b. Interdependence

c. Influence

d. Independence

ANSWER - b. Interdependence
QNO31 Teams brainstorm because the destiny in terms of the objective is so strong that they
brainstorm all possible solutions which bring forth diversity of ideas. Which benefit of a 'team' does
this point echo?

a. Accomplish targets

b. Detect flaws in solution

c. Creative solutions and better decisions

d. Increase in information sharing amongst team members

ANSWER - C. Creative solutions and better decisions

QNO32 ____________ allows group members to benefit from the knowledge, experience, emotional
support, energy and tools/equipment possessed by other group members.

a. Willingness to share

b. Clear roles and assignments c. Informal relations

d. Style diversity

ANSWER - Willingness to share

QNO33.Nelson and Quick defines _______________ as “a style of leadership in which the leader fails
to accept the responsibilities of the position”.

a. Authoritarian

b. Democratic

c. Consultative

d. Laissez Faire

ANSWER - D. Laissez Faire

QNO34. Psychodynamic theory is also known as _____________.

a. Managerial Grid

b. Bernard Bass Model

c. Contingency Model

d. LMX Theory
ANSWER - d. LMX Theory

QNO35 One of the types of Transformational Leadership that speaks about building confidence and
trust and being a role model through setting examples is _________________.

a. Inspirational motivation

b. Intellectual stimulation

c. Idealised influence

d. Individualised consideration

ANSWER - c. Idealised influence

QNO36 _________________ power comes because of the position and the belief that some things are
supposed to be done when told by a person in that position.

a. Expert

b. Referent

c. Information

d. Legitimate

ANSWER - d. Legitimate

QNO37. In which negotiation, the strategy adopted focuses on creating a win-win solution?

a. Integrative bargaining

b. Distributive bargaining

c. Trade-off

d. Pre-conditioned bargaining

ANSWER - a. Integrative bargaining

QNO38. ________ defines the laws in which people work in an organisation.

a. Location

b. Culture
c. Competence

d. Goals

ANSWER - b. Culture

QNO39. If the organisational culture is strong, it is possible for it to be ________.

a. Resistant to change

b. Irreversible

c. Change-oriented

d. Frequently changeable

ANSWER - c. Change-oriented

QNO40. When the information flow takes place in all directions inside the organisation and it is
considered to be the organisation structure of the future, which structure are we referring to?

a. Matrix

b. Adhocracy

c. Hierarchialx

d. Team

ANSWER - b. Adhocracy

QNO41. Experiments have proved that good working relationship with the supervisor and colleagues
and the idea of challenge accounted for higher productivity. This is supported by which management
theory?

a. Operational management theory

b. Behavioural science theory

c. Systems theory

d. Scientific management theory

Answer - Behavioural science theory

QNO42. Which of the following is not a step in Planning?

a. Establishing objectives
b. Developing premises

c. Determining the course as per staffing

d. Evaluating alternate course

ANSWER - c. Determining the course as per staffing

QNO43. The most fundamental authority that exists within an organisation is ____________.

ANSWER -

a. Line authority

b. Functional authority

c. Staff authority

d. Manager/ supervisor

ANSWER - a. Line authority

QNO44. Capturing the mind space of the stakeholders is _________.

a. Alignment

b. Direction setting

c. Engagement

d. Directing

ANSWER - c. Engagement

QNO45. Which of the following is a term used in PERT and CPM methods of project management?

a. Critical path

b. Critical control point

c. Balanced scorecard

d. Overall performance control

ANSWER - a. Critical path

QNO46. By __________, we mean looking at relationships and attempting to attribute causes and
effects and drawing conclusions based on scientific evidence.

a. Organisational Citizenship

b. Systematic Study

c. Productivity

d. Absenteeism

ANSWER - b. Systematic Study

QNO47. _______________ is the term that some social and personality psychologists use to describe a
person's tendency to deceive and manipulate others for personal gain.

a. Self-monitoring

b. Self-esteem

c. Locus of control

d. Machiavellianism

ANSWER - d. Machiavellianism

QNO48. What is referred to as 'frames of reference'?

a. Attitude

b. Values

c. Behaviour

d. Emotional Intelligence

ANSWER - a. Attitude

QNO49._____________ is caused by the lack of any consequence following a behaviour.

a. Shaping

b. Extinction

c. Avoidance learning

d. Chaining

ANSWER - b. Extinction
Qno50.What is benchmarking?

Ans - A process of comparing own standards and best practices in an activity or process with that of
another in the same or different industry. For example, to benchmark practices of recovery of debts, you
can benchmark with another firm in your own industry or another industry.

Qno51. Critical control points?

Ans - Selection of important points in a process or activity for measuring because of the impact on the
overall process. By controlling this point, most of the important variations can be controlled.

Q.52.What is Critical path?

ANs- A term used in PERT and CPM methods of project management. It is that series of activities in
sequence (path) along which if there is any delay the project will get delayed. The other paths are
usually shorter or flexible enough to be absorbed within the time taken by the critical path of activities.

Qno53.Meaning of overall performance control?

Ans - Organisation has several activities, units, etc. Many controls pertain to only the activity or unit.
Those measures and standards that control the overall performance of an organisation rather than its
individual units, departments, or activities are called overall performance control.

Qno54. Among various reasons why controlling is important, guiding to keep _______________ on
track is a significant one.

Answer - Goals

Qno55. There are four steps in the process of controlling. These are measurement of performance,
comparison of actual and standard performance, taking remedial actions, and creating tangible
measures. (True/False)

Ans - False

Qno56. ‘Rejection rate’ is an example of tangible standards. (True/False)

Ans - True

Qno57. The purpose of ___________ is to focus the attention of the manager on things that are critical
and important for business.
Ans – Critical control point

Qno58. ‘Labour hours’ is an example of _________ standard.

Ans - Physical

Qno59. Sambhavi Bakers put a standard that each outlet should not cost more than Rs.300 lakh. This
is an example of setting ___________ standard.

ANs - Capital

Qno60. One of the reasons for management systems falling short of having good feed-forward is
confining to the usage of ___________ data for creating the control systems.

Ans - Financial

Qno61. Controls have to be common to all and should not be adjusted to the individual manager’s
capability (True/False).

Ans - False

Qno62. Firm ‘A’ manufacturing gears follows an autocratic culture while Firm ‘B’ follows an open door
policy and both have control measures. It will be a good idea that Firm ‘A’ borrows the ‘control
measures’ form Firm ‘B’ to make the controls more effective. (True/False)

Ans - False.

Qno63.What is OB?

Ans - OB can be defined as a systematic study that investigates the impact of individuals, groups and
organisational factors on productivity to include effectiveness and efficiency, absentee, turnover,
organisational citizenship behaviour and job satisfaction.

Qno64. The four major approaches to OB are human resource approach, ____________, productivity
approach and systems approach.

Ans - Contingency approach

Qno65. Organisational citizenship?

Ans - Discretionary behaviour that is not part of an employee’s formal job requirements, but that
nevertheless promotes the effective functioning of the organisation.
Qno66. Systematic study?

Ans - A study that defines the cause and effect relationship between two factors. Usually they have a
dependent and independent variable relationship i.e., when the independent variable is increased or
decreased, the dependant variable also behaves in a predictable way by increasing or decreasing.

Qno67. Personality can be defined as a ___________-possessed by a person which uniquely influences

his/her knowledge, motivations and behaviour in various situations (Ryckman, 2004).

Answer - Dynamic and organised set of characteristics

Qno68. Personality influences interactions with, and adaptations to ________ and _____________
environments and his/her own psyche.

Answer - Physical, social

Qno69. Socialisation starts with the ___________ between a mother and her new infant.

Answer - Initial contact

Qno70. There is some evidence that immediate family impacts personality. (True/False)

ANSWER – True

QNO71. Big 5 is used frequently in the workplace because of its___________.

ANSWER - Direct impact

QNO72. Type A and Type B personality theory was first published ____________by Meyer Freidman
and Rosenman.

ANS - In the 1950s

QNO73. Factors that affect perception are:

• __________

• Situation related factors

• Situation related factors

ANSWER - Perceiver related factors

QNO74. Strategy in organisations can be divided into three:

• ________

• Business strategy

• Functional strategy

ANS - Corporate strategy

 SECTION - B
SHORT ANWER QUESTIONS (5 MARKS EACH) [PLEASE ANSWER
ANY FOUR QUESTIONS ON THE ANSWER SHEET PROVIDED
SEPARATELY FOR THE PURPOSE.] (4*5=20 MARKS

Qno1.What is Benchmarking?

Answer –

Benchmarking is the process of comparing one's business processes and performance with industry
bests and/or best practices from other firms or industries. Several measures are used for this. Quality,
time and cost, employee per passenger, fuel consumed per passenger, etc. are benchmarks. In the
process of benchmarking, management identifies the best firms in their industry, or in another industry
where similar processes exist, and compare the results and processes of those studied (the "targets")
with one's own results and processes. In this way, they learn how well the targets perform and, more
importantly, the business processes that explain why these firms are successful.

Q.2. List out the various important points of Management.

Answer:-

Important points of Management:-

i. It helps in achieving group goals – Green Path Hotels was on expansion and to create the capacity
for service, they had hired more people and were training them in one place so that when the new
hotels are opened, these trained men can go there and be productive from day one. This is about
achieving the goals set, i.e., smooth expansion.

ii. Optimum utilisation of resources – Green Path could have avoided hiring these people in advance
and thus saved money but then if they had hired them late, these resources would not have been
ready to render the service and would probably have earned a bad name in those initially.

iii. Reduces costs – It gets maximum results by using minimum input through proper planning. You
saw how Green Path uses physical, human, and financial resources in such a manner that it creates
great results at low costs. Management is about cost reduction.

iv. Establishes sound organisation – No overlapping of efforts (smooth and coordinated functions) is
an important lesson from the case.
 v. Establishes equilibrium – It enables the organisation to survive in a changing environment. Green
Path was able to see the new era coming with its focus on environment and social responsibility. It
keeps in touch with the changing environment.

vi. Essentials for prosperity of society – Efficient management leads to better economical production
and also increases the economic, social, and general welfare of the people.

Q.3. what do you understand by Span of Control?

ANSWER -

Meaning of span of control

The term span of control is composition of two words via “SPAN” and “CONTROL”. Span's literary
meaning says, it is the distance between the tip of a thumb and small finger when palm of hand is fully
stretched out. However, in terms of management and administration, it means the maximum extend or
the number of people that can be reached by. Control in literary means an ability to instruct, check,
adjust or manipulate something as per one’s preferred requirement, choice or expectation. However, in
terms of management and administration, it refers to an authoritative power to direct, order or restrain.

Span of control in management process and organizational behavior means the total number of
people whom a manager or an administrator can effectively control and supervise. Span of control may
be narrow or broad .When a very few people report to a head and a chain is made that way upward
then it is called narrow span. In a wide span there may be 20, 30, or more subordinates under one head.

Span of Control is also referred by many other names. It is often known as 'Span of
Supervision' or 'Span of Management' or 'Span of Attention'. However, the term 'Span of Management'
suits as the most appropriate name, since control and supervision are the elements of management.

QNO4. What is controlling? Discuss some of its importance in relation to management.

Answer:-

Controlling can be defined as measuring and correcting of performance to achieve the organisational
goals.

Importance in relation to management:-

i. Creates the basis for the future – It provides a basis for future planning and action because it identifies
and reports the efficiency of a project or any action.
 ii. Guides to keep goals on track – The continuous flow of information about projects and performance
keeps the goals on track by enabling timely corrective action. Thus, it guides the management in
achieving predetermined goals.

iii. Prevents repetition of mistakes – It also enables the management to avoid repetition of past mistakes
by enabling one to decide on the future course of action.

iv. Enables future planning and follow up action – It enables planning for the future and facilitates follow
up action.

v. Enables decentralisation – In large organisations where decentralisation is inevitable, control becomes

the key to success because it establishes accountability.

vi. Enable management by exception – If the work is satisfactory then the top management should not
feel worried. The management by exception enables top management to concentrate on policy
formulation.

vii. Assists co-ordination – Control helps in co-ordination of activities through unity of action.

Enables HR functions and motivation – Various control devices act as motivators

Q.5. Discuss the various determinants of Personality.

Answer:-

Determinants of Personality:-

i. Heredity – The relationship of heredity with personality is a well-accepted fact. Traits like physique,
eye colour, hair colour, height, temperament, energy level, intelligence, reflexes, etc.

ii. Environment – Environment comprises of culture, family, social and situational factors.

iii. Culture – Culture establishes norms, attitudes and values that are passed on from generation to
generation and create consistencies over time. Every culture expects and trains its members to behave
in the ways that are acceptable to the group.

iv. Family – One of the most important determinants of the personality of a person is the immediate
family. Families influence the behaviour of a person especially in the early stages of life.
v. Situation – Every individual goes through different types of experiences and events in his/her life.
Some of the events and experiences, which an individual goes through in his/her life, can serve as
important determinants of his/her personality.

Social factors – Socialisation starts with the initial contact between a mother and her new infant. After
infancy, other members of the immediate family – father, brothers, sisters and close relatives or friends,
then the social group such as peers, school friends and members of the work group play influential roles.
This is called socialisation process.

Q.6. What are the various functions of attitudes? Discuss.

Answer:-

Functions of attitudes:-

i. Adjustment function. Attitudes often help people to adjust to their work environment. Well-
treated employees tend to develop a positive attitude towards their job, management and the
organisation in general, while berated and ill-treated organisational members develop a negative
attitude. In other words, attitudes help employees adjust to their environment and form a basis for
future behaviour.

ii. Ego-defensive function. Attitudes help people to retain their dignity and self-image. When a young
faculty member who is full of fresh ideas and enthusiasm, joins the organisation, the older
members might feel somewhat threatened by him/her. But they tend to disapprove his creative
ideas as ‘crazy’ and ‘impractical’ and dismiss him/her altogether.

iii. Value-expressive function. Attitudes provide individuals with a basis for expressing their values. For
example, a manager who values hard and sincere work will be more vocal against an employee who
is having a very casual approach towards work.

Knowledge function. Attitudes provide standards and frames of reference that allow people to
understand and perceive the world around them. If one has a strong negative attitude towards the
management, whatever the management does, even employee welfare programmes, can be perceived
as something ‘bad’ and as actually against them.

Q.7. Write a brief note on ‘Contingency Theories of Leadership’

Answer:-

Contingency Theories of Leadership:-

Contingency theories suggest that there is no one best style of leadership and that an effective style
depends on how the leader adopts a style in relation to the group and the situation.
Fielder’s Contingency Model (FCM) of leadership:- This model dominates the modern literature on
contingency theories. FCM postulates that the leader’s effectiveness is based on ‘situational
contingency’ which is a result of the interaction of two factors, i.e., leadership style and situational
favorableness.

Path goal theory: - Path goal theory draws its inspiration from the expectancy model of motivation.

Situational leadership: - The work of Paul Hersey and Kenneth Blanchard (1969, 1993) resulted in this
highly popular model of situational leadership. They identified that the leaders have four leadership
styles. They are

i. Telling (directing),
ii. Selling (consulting),
iii. Participating, and
iv. Delegating to the followers depending on (contingent upon) the maturity of the follower to do
the task.

Reddin’s 3D theory of managerial effectiveness: - This theory builds on the Hersey Blanchard theory of
situational leadership and Blake and Mouton theory of Managerial grid. He identifies four effective
styles that are matched to the situation using the situational sensitivity of the leaders.

a. Bureaucrat
b. Developer
c. Executive
d. Benevolent autocrat

QNO8. List out the various important points of Management.

Answer -

Improves understanding – It increases the knowledge on how to manage an organisation and act as a
guiding light to take decisions on various issues such as chain of command, centralisation, etc. It also
helps them to predict the impact of following one principle on another or the impact of ignoring one
(e.g., if you ignore initiative, then division of labour may have no meaning or if you ignore
decentralisation, then initiative may not take place).

Direction for training of managers – These principles give a clear indication of the training needs by
establishing what is required to be done to accomplish something. For example, if the organisation
needs initiative, then we should train people in taking responsibility and then decentralise.

Role of management – It acts as a light house to guide managerial decision making and warns of
dangers and enables course correction. For example, if we change job roles frequently, it will affect the
morale, etc.
Guide to research in management – The principles indicate the lines along which research should be
undertaken to make management practical and more effective because it predicts the cause and effect
relationship which can be empirically tested and then used to make management more scientific.

QNO9.Discuss the various determinants of Personality.

ANSWER -

Following are the factors that determine personality development:

Heredity – The relationship of heredity with personality is a well accepted fact. Traits like physique, eye
colour, hair colour, height, temperament, energy level, intelligence, reflexes, etc. are generally referred
to describe the influence of heredity in developing personality

Environment – Environment comprises of culture, family, social and situational factors. The
environmental factors influence the personality of an individual since they provide the basis for certain
experiences that determine an individual’s view about life, both positive and negative.

Culture – Culture establishes norms, attitudes and values that are passed on from generation to
generation and create consistencies over time. Every culture expects and trains its members to behave
in the ways that are acceptable to the group.

Family – One of the most important determinants of the personality of a person is the immediate
family. Families influence the behaviour of a person especially in the early stages of life.

Situation – Every individual goes through different types of experiences and events in his/her life. Some
of the events and experiences, which an individual goes through in his/her life, can serve as important
determinants of his/her personality.

Social factors – Socialisation starts with the initial contact between a mother and her new infant. After
infancy, other members of the immediate family – father, brothers, sisters and close relatives or friends,
then the social group such as peers, school friends and members of the work group play influential roles.
This is called socialisation process.

QNO10. Briefly justify business as a social system.

ANSWER –

Business is something that society has created for itself to make things simpler to fulfill its needs and
wants. The society exercises control over business by changing rules of business. Therefore, we must
accept that it is a social system and it is the social system and not business itself that dictates how a
business is to be done at a macro level. This is done through social pressures such as the ones created by
NGOs and environmental groups and also through legislation by the representatives of the people, etc.
So, though a business is an economic entity, we should not forget that it is the society which gives it
sanctity.
Society, through its government, can change the rules of business and say that you can bring in foreign
direct investment in this business, but not that business, etc. because a business is an organisation that
the society has created to fulfill its needs. If it does not do so, the society tends to control it and even
close it down. This is not to say that society and government interferes in everything. In fact, society
gives business a lot of freedom, because in doing so, competition takes place, the cost goes down,
quality goes up, and the society’s need is better fulfilled. If you think of mobile phones, you

will see how this freedom has helped the society. You can also see how when this led to corruption,
another system called the judicial system (also created by the society) intervened on behalf of the
society and cancelled about 122 licenses. Every business and young leaders of such business which you
are or soon will be must understand and accept this power of the society and that business
organisations are its creation and will exist only if it fulfills its purpose.

QNO11. What do you understand by strategy? Briefly explain functional strategy.

ANSWER –

Once vision is final then comes strategy. Strategy means the grand plan and the term is borrowed from
the military which distinguished between the grand plan and actual action by calling the former strategy
and the latter tactics.

Strategy in organisations can be divided into three: Corporate strategy Business strategy
Functional strategy

Functional strategy

Once you have a business strategy, each independent department will need its own strategy. For
example, the HR of Tata Motors will need a strategy quite different from the HR of Tata Consultancy
Service (TCS). So, the operations, marketing, finance, HR, etc of each business will make their own grand
plan or strategy and this is called functional strategy. This is the HR strategy (of course it is only one
element of HR strategy but illustrates what functional strategy means). In other words, the grand plan
made by each functional area is called functional strategy. Usually organisations have operations
strategy, finance strategy, marketing strategy, and HR strategy. If you are large and well diversified, you
may have an information strategy, supply chain strategy, etc. also and this depends to some extend on
the nature of your business. For example, if you are in retail chain business like Big Bazaar, you may have
a merchandise strategy (what products to sell) and supply chain strategy (how to procure the products
at the lowest cost and move them nationally) as these are very important to business success.
QNO12.What are the eight characteristics that are found in an excellent organisation? Which of these
are applied in the case of Green Path hotels?

ANSWER –

Some of the eight characteristics are high action orientation, customer orientation, managerial
autonomy, employee orientation etc.

1) High/strong action orientation

2) High/strong customer orientation

3) High/strong managerial autonomy and entrepreneurship

4) High/strong employee orientation

5) High/strong company philosophy based on the values of top leadership

6) High/strong focus on the business they knew best

7) High/strong organisational structure that was simple and lean staffed

8) High/strong balance between centralisation and decentralisation

QNO13. Explain the importance of principles of management.

Answer –

Principles of management are important because of the following reasons:

Improves understanding – It increases the knowledge on how to manage an organisation and act as a
guiding light to take decisions on various issues such as chain of command, centralisation, etc.

Direction for training of managers – These principles give a clear indication of the training needs by
establishing what is required to be done to accomplish something.

Role of management – It acts as a light house to guide managerial decision making and warns of
dangers and enables course correction.

Guide to research in management – The principles indicate the lines along which research should be
undertaken to make management practical and more effective because it predicts the cause and effect
relationship which can be empirically tested and then used to make management more scientific.
QNO14. DISCUSS Rationality in decision making AND describe the importance of bounded rationality
in decision making giving a specific example.

ANSWER –

Rational decision making – If we take a decision by considering all the factors, data, and their relative
impact, preferably giving it a weight, the decision would be called a rational decision. To take a rational
decision, Rakhi would need the customer base, purchasing power, total customers available, the areas
where they live, cost of transportation, labour cost, labour unions in other places, the political influence,
competitors, and many more such data. If she can get the information on all these, give it a relative
weight based on some scientific method, and then take a decision, it becomes a rational decision.

Bounded rationality

A manager cannot get all the information before he/she takes a decision and often his/her decisions are
coloured and biased. Hence, he/she often takes decisions which are not entirely rational. This is called
taking decisions under ‘bounded’ (limited) rationality.

For example, Rakhi would soon take a decision fully knowing that there are several risks and several
things that she would have liked to consider but is unable to do practically.

QNO15.Describe the steps in creative decision making. 5 MARKS

ANSWER -

Decision making can be defined as the way of choosing from the alternatives. Since no action can be
taken without a decision, planning will not go any further without a decision and hence, decision making
is an integral part of planning even if it is done quickly or with little thought. The process leading to
decision can be thought of as

1) Premising (or make a premise on what is right or wrong and acting on it),

2) Identifying alternatives,

3) Evaluating alternatives in relation to the goal sought, and

4) Choosing an alternative, i.e., decision making.

QNO16. Define organisation. Give any three reasons for why organising is important.

Answer -

The word organising often refers to conducting a party or meeting. But for practising managers, the
term organisation means the formalised and intentional structure of roles and positions. Organising is a
function of the management that follows planning. The term organising means doing these activities in a
logical and systematic way so as to get the maximum results. According to Chester Barnard, “Organizing
is a function by which the concern is able to define the role positions, the jobs related and the co-
ordination between authority and responsibility.” Hence, a manager always has to organise in order to
achieve results.

 Organising can thus be described as:

 Identifying and classifying of required activities.
 Grouping of activities to attain the objective.
 Assigning each group to a person (or manager) with the required authority to supervise,
execute, and to be held responsible for the output.
 Providing co-ordination horizontally (at the same level in the concern) and vertically (between
higher and lower organisational hierarchy) by creating an order.
 Thus, organising is about creating an intentional structure of roles. It means that the activities
that people do and the roles they occupy are deliberately created.

Organising is important for the following reasons:

Creates roles – Organising enables a business to create roles or in other words, it links a person to an
activity with its own set of responsibility.

Facilitates specialisation – Through organising, all the roles can be categorised into cohesive wholes
based on similarity. Thus, the activities along with the roles can be divided into units and departments.

Clarifies authority –- Organisational structure helps in clarifying the role positions of every manager by
defining the powers of each role, the reporting structure, with whom a manager should communicate
and coordinate so that all the activities run smoothly such that the productivity increases.

Enables co-ordination – By defining the above relationship, organising automatically brings coordination
in activities and ensures mutual cooperation among individuals. It prevents role conflicts and if it exists,
it gives a method to redefine the roles and the relationship to remove such conflicts.

Facilitates effective administration – Organising is helpful in defining the job positions. Thus, it enables
a concern to administer the entire system smoothly.

Supports growth and diversification – It facilitates the growth of a company by creating functional and
homogenous entities of business with clear demarcation and yet clear linkages.

Provides sense of security – It gives a sense of security to the employees and managers by clearly
indicating their areas of control and its relative importance.

Defines power, authority and responsibility, delegation and decentralization – Organising defines the
power of each manager and thereby not only prevents abuse and conflicts. It also defines the authority
and the responsibility.

Enables change – Organising facilitates change. For example, if a new technology has to be introduced,
it is possible to restructure the organisation and create a new and more effective way of organising to
make best use of the technology. This is true for changing a process or any other change.
QNO17. Differentiate between a formal organisation and an informal organisation

Answer - Organisations are generally divided into formal and informal organisations on the basis of
relationships.

Formal organisation – In formal organisations, the relationships, roles, norms, and responsibilities are
defined and are usually reduced to writing. Consequences of achieving and not achieving the goals are
also defined as the rules of interacting vertically and horizontally.

Informal organisation – It refers to a network of personal and social relationships which originates
within the formal set up spontaneously. This relationship is built on likes, dislikes, feelings, and
emotions.

The difference between formal and informal organisations is the conscious effort made in formal
organisation and the lack of it in the informal organisation. Informal organisation is not based on any
rules and regulations though these organisations often create their own norms, rules, and regulations
on mutual consent for achieving their own goals. E.g., a biking group in a company, which goes biking
every Sunday, might create its own rules for dress, conduct, frequency, leadership, etc.

Section C

ESSAY-TYPE QUESTIONS (10 Marks each) [Please answer

any THREE questions on the Answer Sheet provided
separately for the purpose.]
(10*3=30 Marks)

WE WILL PUT MORE THAN 15 QUESTIONS IN THIS SECTION