St.

JOSEPH’S COLLEGE OF ENGINEERING

St. Joseph’s Group of Institutions
OMR, Chennai - 119

Department of Information Technology

Multiple Choice Questions & Answers

MG8591 - Principles of Management

1. Management is defined as;

a) getting things done so that demand is fulfilled

b) getting things done through other people
c) to know what actually has been produced and which should have been
d) To work for others.

2. Management is :

a) an art
b) a science
c) both an art and a science
d) neither an art nor a science

3. Administrative Management means:

a) coordinating and communicating in the organization with the responsibility for overall operations of the
enterprise
b) coordinating the activities of sales and making people
c) a body which is concerned in setting various rules to run a business concern
d) none of these.

4. The difference between administration and management is that:

a) administration is largely while management is essentially executive

b) management is largely determinative while administration is essentially executive
c) management is performed at higher level of management while administration is performed at lower
levels
d) none of these

5. The founder of scientific management movement was:

a) Henri Fayol
b) F.W.Taylor
c) Elton Mayo
d) M.P.Follett.

6. Paternalism refer to :
a) the hiring of many father -son teams of employees
b) the governing of a people in a fatherly manner
c) a very autocratic ,directive leadership pattern
d) the handicraft method of production.
7. Taylor's pig iron experiments were cost-effective. For example:
a) Schmidt produced four times as much for a 60% incentive
b) Schmidt produced ten times as much for a 100% incentive
c) Schmidt produced the same amount for a 10% incentive
d) Schmidt produced four times as much for no additional pay.

8. The person at the top of the organizational hierarchy is least likely to be called;
a) President
b) General Manager
c) Executive officer
d) First-line supervisor

9. The primary measure of the effectiveness of a manager is :

a) the number of employees supervised
b) the total size of the organization
c) the results obtained
d) how busy the person is .

10. A study to Mintzberg characterized the manager's job as:

a) ordered
b) verbal
c) routine
d) structured.

11. In comparison to top level managers, a first -line supervisor will spend more time in :
a) direction of subordinates
b) policy making
c) public relations
d) long range planning

12. Which level of management would be most involved in the function of planning and organizing?

a) top
b) middle
c) first level
d) all of these

13. Which level of management would be most involved in the function of directing and controlling?

a) top
b) middle
c) first level
d) all of these

14. The identification of objectives and the formulation of policies, procedures and methods make up
the:

a) planning process
b) organizing process
c) directing process
d) controlling process

15. Planning function of management is relatively more performed by:

A. top management
B. middle management
C. lower management
D. all of these.
16. The determination and grouping of activities, delegation of authority, span of management etc, are
involved in the function of :

A. planning
B. organizing
C. directing
D. controlling

17. The result of the process of organising are typically represented by means of an:

A. organization
B. organization manual
C. organization matrix
D. organization committee.

18. The managerial function of organizing is :

A. to review and adjust plan in the light of changing conditions

B. to establish a program for the accomplishment of objectives
C. to create a structure of functions and duties to be performed by a group of people
D. to get things done through and with the help of people.

19. According to "Scalar Principle of Organization"

a. a manager can directly supervise a limited number of people

b. the line of authority must be clearly defined
c. exceptionally complex problems are referred to higher levels of management
d. each subordinate should have one superior,

20. Managerial planning should take place:

a. before doing work

b. after facts are known about the future
c. after the constraints of the managerial efforts are minded
d. none of these.

21. An outstanding characteristic of managerial planning is that it is :

a. made up of variable components only

b. a tentative process
c. impervious to the influence of the human elements
d. all of these.

22. The chief informational needs required for effective planning are:

a. objective, personnel and political

b. environmental, competitive and of the individual enterprise
c. environmental, political and price levels
d. none of these.

23. Which of the following represents the proper sequence of events?

A. execution-planning-control
B. planning-control-execution
C. control-executive-planning
D. planning-executive-control
24. Several results are known to be a product of formalized planning .Which is the least likely?

A. the company will grow faster

B. performance will improve
C. the need for control will decrease
D. profits will improve.

25. When performance is measured and evaluated against the plans, several alternatives may be pursued.
Which of the following would probably NOT be a viable option?

A. modify the measurement technique

B. modify the plans
C. modify operations
D. take no action.

26. Three types of plans are usually used in large business corporations. Which of the following is least
useful?

A. strategic
B. annual operating
C. short-range operational
D. informal

27. What is the typical time horizon for long-range (strategic) plans for most organizations?

A. 3 to 6 months
B. 1 year
C. 5 years
D. 10 years

28. The most current flow of formalized planning process is initiated at:

A. the top and flows downwards

B. the middle levels and flows up and down
C. the top and bottom and flows toward the middle
D. the bottom and flows upwards.

29. The accuracy of a forecast is least dependent upon :

A. the plan
B. the time span involved
C. the number of influencing variables
D. the predictability of the variables

30. The most popular technological forecasting method is :

A. trend extrapolations
B. scenario writing
C. Delphi technique
D. Model building.
31. The best way to keep up with socio-cultural trends is through:

A. Delphi technique
B. reading trade journals
C. contacting government agencies
D. Wharton econometric mode

32. The forecasting technique involving expert-opinions is:

A. sale force composite

B. time -series forecast
C. correlation analysis
D. econometric model.

33. MBA evaluates the performance of operating units and individuals in terms of :

A. employee characteristics
B. employee personal traits
C. objective work goals
D. All of these.

34. Concern about Government's fiscal and monetary policy has been most prevalent on the ------scene.

A. domestic
B. international
C. both domestic or international
D. neither domestic nor international.

35. The situation which leads to the greatest difficulty in planning is the one in which prices in an industry
are:

A. slowly increasing
B. slowly decreasing
C. subject to change in unanticipated ways
D. Subject to no change.

36. Sales forecast is particularly useful when the market demand for a firm's products or services has been
historically :

A. stable
B. unstable
C. both stable and unstable
D. None of these.

37. Planning function of management is performed by:

A. top management
B. middle management
C. lower management
D. All of these levels.
38. The final step in long -range planning is :

A. develop and planning premises

B. control to the plans
C. establish strategies
D. Execute the plan.

39. The statement "We desire to reduce absenteeism to 3.4% by March 15,1990" is an example of:

A. an objective
B. a strategy
C. a policy
D. a rule.

40. The statement "No smoking in the factory" is an example of :

A. an objective
B. a strategy
C. a policy
D. a rule.

41. The least common, rarely feasible ,approach to developing strategy and long -rang plans is :

A. have top management do it

B. delegate the responsibility to subordinates
C. use of professional staff
D. use a long-range planning committee.

42. The most accurate statement regarding long-range planning is that:

A. execution follow control

B. strategies follow objectives
C. objectives precede planning staff
D. Resource requirements precede program activities.

43. What is the typical time horizon for long-range plans for most organization ;

A. 3 to 6 months
B. 12 months
C. 5 years
D. 10 years

44. The best statement of a goal is :

A. increase our sales by 22 percent

B. change our method of assembly by June 17
C. reduce the scrap rate 35% before year end
D. do a better job than we did previously.

45. The participation rate of large firms (Fortune 's 500 largest U.S .Corporations )in MBO systems has
been:

A. none of them have tried it

B. about 15 percent
C. about 70 percent
D. all of them have tried it .
46. The proper sequence of MBO activities is :

A. implement the program, define the job, set objectives, evaluate performance
B. evaluate performance, define the job, set objectives, implement the program
C. set objectives, evaluate performance, implement the program
D. define the job ,set objectives, evaluate performance, implement the program.

47. Advantage of MBO is that :

A. a worker's job tasks become more clarified

B. worker's may adhere rapidly to establish goals
C. appraisals are now based on results
D. Self-evaluation and self-control are emphasized more than before.

48. The decision to promote the sale of service contrasts with T.V .sales to ensure that customers maintain
the T.V. properly is an example of :
A. imposed policy
B. originated policy
C. appealed policy
D. none of these.

49. A policy a paying 8.33% of the pay as bonus to employees every years that is formulated because of
"Payment of Bonus Act" is an example of :
A. imposed policy
B. originated policy
C. appealed policy
D. none of these.

50. A decision to restrict the distribution of sugar, vanaspati etc. before a week to the budget presentation
in the Parliament constitutes a:
A. production policy
B. finance policy
C. sales policy
D. personnel policy

51. The decision to locate new plants within a certain distance from the major market area constitutes a:

A. production policy
B. finance policy
C. sale policy
D. Personnel policy.

52. The decision to lease rather than purchase retail sales outlets is an example of the formation of:

A. production policy
B. finance policy
C. sales policy
D. personnel policy.

53. The decision that applicants should be placed in an apprentice program on the basis of ability test is an
example of a:

A. production policy
B. finance policy
C. sales policy
D. Personnel policy.
54. The basic policy, which is very broad in scope and affects the organization as a whole ,used mainly by:

A. top managers
B. middle managers
C. first-level managers
D. lower managers

55. A great deal of which type of policy formulation indicates that top managers have not successfully
anticipated the policy needs of the organization?

A. appealed policy
B. imposed policy
C. originated policy
D. all of these.

56. A description of how each of a series of takes is to take place when it will take place and by whom it is
to be accomplished is normally included in a statement of :

A. objectives
B. policy
C. procedures
D. methods.

57. The selection of action represents the culmination of the :

A. control process
B. planning process
C. management process
D. decision-making process

58. The vast majority of supervisory decision are:

A. intuitive
B. judgemental
C. problem-solving
D. group decisions

59. The decision making process has several characteristics.Which of the following wings is NOT typically
included?

A. it is goal oriented
B. it occurs in sequential chains
C. it occurs over time
D. it cannot be learned in the classroom

60. The decision making process is conducted in three different ways .Which is NOT a typical method?

A. intuitively
B. based on judgement
C. by fate
D. by a problem solving process
61. Business firms typically seek ------- solutions to problems:

A. minimal
B. satisfactory
C. maximal
D. optional

62. The decision making -process is made up of :

A. diagnosis
B. discovery of alternatives
C. analysis of alternatives
D. all of these.

63. The function of diagnosis is:

A. to identify and clarify a problem

B. to discover various alternatives
C. to analyse the different alternatives
D. all of these.

64. An accurate diagnosis depends on:

A. a definition of organizational objectives

B. identifying major obstacles
C. definition of objectives and identification of obstacles
D. none of these.

65. The principle of limiting factor states that in choosing from among alternatives the more individuals can
identify and solve for those factors which are critical to :

A. formulation of organizational policies, rules, procedures and strategies, the more clearly and
accurately they can select the most favourable alternatives
B. the attainment of desired goal, the more clearly and accurately they can select the most favourable
alternative
C. organizational efficacy, the more clearly and accurately they can select the most viable alternatives
D. none of these.

66. Synergy is an important technique of :

A. management of audit
B. performance appraisal
C. decision making
D. Financial planning.

67. Creative behaviour is made more likely:

A. when it is rewarded
B. when the level of stress is appropriate
C. when adequate time is available for considering a problem
D. All of these
68. One disadvantage of group participation in decision making is :

A. time required
B. knowledge available
C. motivation of the members
D. Effect on morale.

69. The primary advantage of the nominal group techniques over brainstorming is :

A. complex problem can be solved

B. stronger persons have a better chance for impact
C. evaluation is deferred
D. Group-think is prevented.

70. The managerial skill most clearly advocated is :

A. procrastination
B. indecisiveness
C. timidity
D. Integration.

71. Top management decision making is distinctively characterized by:

A. more uncertainty and less reliance on judgement

B. more uncertainty and greater reliance on judgement
C. less uncertainty and greater reliance on judgement
D. Less uncertainty and less reliance on judgement.

72. The least plausible reason for students to study top management decision making is :

A. they will be better able to interact with CEO"S

B. specialised job assignment will not prepare them well for a general management orientation
C. many will probably become CEO's
D. They will gain a broad (systems) perspective.

73. The extent of factual analysis, which is based on mathematical model building and which has been
found to be useful in decision making, is called:

A. operations research
B. simulation method
C. linear programing
D. any of the above.

74. What are the three important organizations universal?

A. people ,purpose and environment
B. people ,purpose and hierarchy
C. purpose, hierarchy and environment
D. hierarchy ,environment and purpose

75. A foremost in importance in managerial organizing is (are):

A. cost
B. time
C. tasks
D. people.
76. A key organizational variables is that they :

A. vary across organizations but not over time

B. vary over time but not across organizations
C. neither vary over time nor across organizations
D. both vary over time and across organizations.

77. All of the are benefits to be expected from organizing expect:

A. provides guidelines for individual performance

B. creates conflict over jurisdictions
C. establishes a promotional for employees
D. establishes channels for communication and decision making

78. The primary components of organizations include all but;

A. people
B. activities
C. objectives and results
D. company history

79. The subordinate -acceptance approach to authority is based on:

A. the non-manager recognizing someone must make decisions

B. the opportunity to contribute to group's efforts
C. the manager winning the support
D. all of these
E. none of these.

80. The responsibility of the foreman is to :

A. maintain the required finished inventory

B. direct the work of operators and fulfil output schedules
C. raise the quality of work
D. control and complete costs.

81. Formal organization comes into being:

A. when persons are able to communicate, willing to act and share a purpose
B. where persons are able to communicate and willing to act
C. where persons marshall their resources in such fashion as maximum return is ensured
D. when persons are ready to act and share a purpose.

82. Within organization ,members with common social interests normally band together to form:

A. dysfunctional groups
B. informal groups
C. role groups
D. none of these.

83. Work distribution charging is primarily a technique of :

A. performance appraisal
B. organizational analysis
C. transactional analysis
D. none of these.
84. The firm's internal organization structure often needs revision because of :

A. the death of a key executive

B. nepotism
C. excessive competition
D. seasonal variation in demand
E. the changing scope of business operations

85. The descriptive word most clearly associated with the organic approach to structure is :
A. static
B. rigid
C. bureaucratic
D. dynamic.

86. Principles of absoluteness of responsibility is one of:

A. major control principles
B. major principles of sound organization
C. major principles of staffing
D. major principles of planning.

87. Organization chart is an important technique of :

A. analysis of any organization
B. analysis of non-formal organization
C. analysis of formal organization
D. analysis of informal organization.

88. Most organization charts are displayed on which basis:

A. vertical
B. horizontal
C. circular
D. Three-dimensional.

89. A prime example of an integrating mechanism is :

A. organization manual
B. scalar chain
C. job description
D. all of the above.

90. It is generally agree that the most important activity of the Board of Directors is :
A. trusteeship
B. assisting in public relations
C. selection of executives
D. none of these.

91. Guidelines for establishing vertical layers include all but which one of the following:
A. keep the number of levels to a minimum
B. place decision making at the highest level it can be efficiently handled
C. avoid duplication in the chain of command
D. Authority and responsibility should be clearly defined.

92. Traditional principles authority are limited by the fact that they are:
A. too general to provide guidance needed in application
B. too complex by involving the by dynamics of human behaviour
C. too flexible in the organization that results
D. too personal in their inclusion of motivational considerations.
93. The removal of an unpleasant stimulus is called:
A. punishment
B. positive reinforcement
C. negative reinforcement
D. the law of effect.

94. Among the following ,the term with the broadest scope is :
A. authority
B. influence
C. power
D. none of these.

95. The source of power most likely to be used by a person with charisma is :
A. reward
B. coercive
C. referent
D. expect.

96. Which regard to power and authority ,we may conclude all but which one of the following :
A. authority is only one source of influence among many
B. supervisor should never have to rely on coercive power to obtain results
C. constant reliance on authority indicates a potential supervisory problem
D. group acceptance of authority is necessary for it to become a useful influence.

97. The process of delegation ideally includes all but which task?
A. specification of decisions to be made
B. statement of the method of accomplishment to be used
C. definition of assignment
D. declination of expected results.

98. The ratio of the number of subordinates that a manager can effectively supervise is :
A. six to one
B. eight to one
C. twelve to one
D. it depends on a number of other factors.

99. Given a fixed number of employees in an organization:

A. a board span of management to result in a flat structure
B. a narrow span tends to result in few levels in a hierarchy
C. a broad span tends to result in several (more)levels in a hierarchy
D. there is no relationship between span of management and shape of structure or number of levels

100. Centralization is a system of:`

A. planning
B. organizing
C. staffing
D. Directing.

101. An advantage of centralization is :

A. it reduces the workload of over burdened executives
B. it helps develop managerial talent
C. it achieves more conformity and coordination
D. Decisions can be made more quickly.
102. Line function are concerned with those activities which are connected with the discharge of ;
A. direct responsibility for accomplishing the subsidiary objectives of the organization
B. direct responsibility for accomplishing the main objectives of the organization
C. direct responsibility for taking and implementing all decisions
D. none of these.

103. With regard to the differentiation of line and staff, we may conclude;
A. line has total authority ;staff is limited to an advisory role
B. power is shifting away from staff toward line and appropriately so
C. the continued distinction creates unfortunate psychological batters
D. there is a sharp difference between the two.

104. Among large firms, committees have been reported to be used in:
A. less than 10 percent
B. about one -third
C. about two-thirds
D. over 90 percent.

105. Several guides to committee management exist .Which is NOT normally advocated?
A. keep them small
B. define their purpose, goals and authority
C. distribute agendas and reports at the beginning of the meeting
D. select a strong, impartial chairperson.

106. A disadvantage of the committee is :

A. the speed with which they act
B. their capacity to represent diverse interests
C. their use for developing managerial talent
D. their capacity for obtaining committee of the people involved.

107. Committee are not well suited for work pertaining to :

A. review of past activities
B. innovation for improved control
C. evaluations of working conditions
D. none of these

108. Among the common approaches to departmentation are:

A. bottom-up and derivative
B. top-down and bottom-up
C. derivative and integrative
D. top-down and derivative.

109. A task force is a mechanism best suited for :

A. subdividing the organization horizontally
B. establishing vertical layers and delegating authority
C. obtaining lateral coordination and integration
D. fitting in the individual.

110. Matrix organizations are really a combination of the:

A. product and process bases
B. process and geographic bases
C. customer and functional bases
D. functional and product base
111. Span of management means :
A. a good organization should consist of departments
B. authority of each person must be clearly defined
C. each subordinate should have one superior
D. a manager can supervise a limited number of executives

112. Which of the following is the oldest type of organization?

A. functional organization
B. line organization
C. line and staff organization
D. committee organization.

113. The defining characteristics of a group include all but which of the following :
A. cohesion
B. identity
C. shared interests
D. interaction.

114. Due to the need for face-to -face contact, group membership seldom rises above:
A. 5
B. 10
C. 15
D. 20

115. The need level least likely to be satisfied in most group contexts is :
A. physiological
B. security
C. social
D. esteem.

116. The structure property of groups that supervisors should be most concerned about is:
A. goals
B. norms
C. roles
D. status.

117. Groups are more cohesive when;

A. they are large
B. they are isolated from outside contact
C. they have little opportunity to interact
D. their membership is heterogeneous.

118. Which of the following is a dysfunctional feature of a group?

A. they tend to contribute to stability
B. they are primary sources of control
C. they are important sources of need satisfactory
D. they tend to become close systems.

119. A good rule to follow when organizing a group is :

A. make it large to maximise a sense of belonging
B. match the objective with the relative homogeneity of the group
C. disregard previous informal relationships and watch the new one appear
D. prevent dissidents from joining or participating
120. With regard to the nature-nature controversy , a supervisor can ;
A. control neither heredity nor the environment
B. control heredity but not the environment
C. control the environment but not heredity
D. control both heredity and the environment .

121. The process of perception typically includes all but which of the following?
A. interpreting data
B. creating data
C. selecting data
D. organizing data.

122. Distortions in perception may as a product of :

A. the information processing mechanisms only
B. the accuracy of the processing
C. both the mechanisms and the accuracy of the processing
D. neither, perception is individualized therefore is never truly incorrect or distorted.

123. A supervisor is most likely to be able to directly affect an employees:

A. task assignments
B. work habits
C. personal aspirations
D. attitudes and values.

124. Within an organization, members with common social interests normally band together to form:
A. dysfunctional groups
B. informal groups
C. role status group
D. none of these.

125. The emphasis of the informal organization is on :

A. the positions
B. role
C. status
D. people and their relationships.

126. Leadership authority in the informal organization flows from:

A. above
B. top
C. below
D. none of these.

127. The major functions performed by informal groups are:

A. helping group members to attain their specific objectives
B. providing social satisfaction to get members
C. serving as a communication medium
D. serving as the agency for social control of behaviour
E. all of these.

128. The control that informal groups exert over the behaviour of members of the group itself:
A. internal social control
B. external social control
C. functional control
D. self-control.
129. Sociogram is a technique adopted for;
A. understanding degree of social responsibility of a business unit
B. analysing an informal organization
C. understanding technical characteristic of a work group
D. all of these.

130. The grapevine is often :

A. completely accurate
B. 80 percent accurate
C. 20 percent accurate
D. never accurate.

131. Dysfunctions are best defined as :

A. informal organization characteristics that permit non-formal behaviour to exist
B. formal organization characteristics that permit formal behaviour to exist
C. formal organization characteristics that permit behaviour to exist
D. informal organization characteristics that permit formal behaviour to exist.

132. Personal problems exist:

A. only in large firms
B. in all firms regardless of size
C. only in firms that have no personal departments
D. only in unionized firms.

133. Staffing function of management comprises the activities of :

A. selecting the suitable person for positions
B. defining the requirements with regard to the people for the job to be done
C. training and developing staff to accomplish their task more effectively
D. all of these.

134. The employee services department would probably NOT have responsibility for :
A. publications
B. recreation programs
C. safety
D. grievance handling.

135. The process involved in terminating an employee would most likely be handled by:
A. employment
B. employment services
C. labour relations
D. training.

136. Suppose you are the General Manager of a company and as such have to deal with people
and resources. An idea strikes your mind which is bound to improve the productivity of the organization ,but
you know that employees will resent it.

A. try to implement the idea in spite of their resentment

B. drop the idea since you know that they will not welcome it
C. educate your employees gradually and wait for such a time when it might be implemented
conveniently
D. none of these.

137. Of the following ,the poorest advice for a job seeker is to :

A. prepare a professional resume

B. identify potential employee through classified advertisement s
C. make potential job contacts through your friends
D. establish a career and pursue them flexibly.
138. The selection interview often focuses on all but the candidate's
A. ability to communicate
B. age
C. education
D. work experience.

139. The proportion of terms using selection tests today is approximately:

A. none
B. 25%
C. 50%
D. 75

140. Psychological tests for executive selection are helpful ,but have a serious imitation ,which is :
A. cost in terms of time and of interpretative grading
B. lack of agreement on what traits should be included
C. dislike of many competent managerial candidates in being subjected to them
D. none of these.

141. One of the main reasons for obtaining a manager from outside an enterprise is :
A. to obtain fresh idea and new applications of management
B. to enhance the public image of the enterprise being good place to work
C. to avoid a moral problem among old employees
D. none of these

142. The favouring of relatives of the firm's executives when promotions come up is known as:
A. partiality
B. patronage
C. nepotism
D. red tapism.

143. The procedure followed in discovering all of the facts about a group of jobs is ;
A. job analysis
B. job specification
C. job evaluation
D. job rotation.

144. The shifting of an employee from one of another that does not involve the assumption of
greater responsibilities is knows:`
A. shifting
B. transfer
C. exchange
D. termination.

145. When an employee is temporarily separated from a company this is called:

A. discharge
B. exclusion
C. lay off
D. termination.

146. A collection of tasks, duties and responsibilities assigned to and performed by a single
individual is a :
A. job
B. occupation
C. position
D. grade.
147. Process of collecting and analysing information about the duties, responsibilities and conditions
of a specific work assignment is :
A. job analysis
B. job evaluation
C. activity analysis
D. occupation analysis

148. Work assignment having a specific of duties, responsibilities and conditions differing those of
other assignments is :
A. an occupation
B. an assignment
C. job
D. a position.

149. Performance appraisal is useful for determining the employees:

A. retention
B. promotion
C. training
D. all of these.

150. An unlikely goal of performance appraisal is :

A. to uncover training needs
B. to identify psychological problems
C. to identify candidate for promotion
D. to discuss ways in which performance can be improved.

151. Traditional approach to appraisal, now-a-days, have increasingly emphasized the evaluation
of:
A. employee characteristics
B. employee performance
C. employee relations
D. none of these.

152. One difficulty of trait-oriented appraisal system is that they:

A. fail to focus on performance
B. are not directly linked to performance
C. seldom result in improving performance
D. all of the above.

153. The traditional method of appraisal whereby the rate lists the employees according to their
level of performance is called the:
A. ranking method
B. critical incident method
C. checklist method
D. graphic scales method
E. forced distribution method.

154. The method in which the relative percentage ranking of each employee is indicated in respect
to each factor, rather than on an overall basis ,is the:
A. ranking method
B. force distribution method.
C. critical incidents method
D. checklist method
E. graphic scales method
155. The method of appraisal in which the employee is rated in respect to a quantitative for each
factor is the:
A. ranking method
B. critical incidents method
C. checklist method
D. graphic scales method
E. force distribution the method.

156. The method in which the rate indicates which statements in a prepared list are descriptive of
the employee or his performance is the :
A. ranking method
B. critical incidents method
C. checklist method
D. graphic scales method
E. force distributing method.

157. The method of appraisal in which the rather is required to keep a record of notable instance
and failure for each employee during the ranking period is the :
A. ranking incidents method
B. critical method
C. checklist method
D. graphical scales method
E. forced distribution method

158. A relatively recent development in the area of performance appraisal by which the
performance review is oriented toward mutually established job objectives, is:
A. goal oriented appraisal
B. checklist method
C. critical incidents method
D. graphical scales method.

159. The formal meeting and discussion between the rather and the employee, which is held in
conjunction with a periodic appraisal of performance ,is called :
A. depth interview
B. stress interview
C. appraisal interview
D. none of these.

160. A job specification would be unlikely to specify requirements for:

A. level of performance expected
B. knowledge
C. previous experience
D. physical characteristics.

161. The process of determining the correct rate of pay for a position is called:
A. job analysis
B. job evaluation
C. job description
D. job specification

162. Of the on-the-job methods of development ,the method which is most widely used and which
concerns the development of knowledge and skill in a particular job is :
A. coaching
B. position rotation
C. special projects
D. committee assignments
163. The on-the -job methods of development which involves assignment to additional research
studies or tasks that are not part of the usual job routine is called:
A. coaching
B. position rotation
C. special projects
D. committee assignments.

164. Of the off-the -job methods of training and development, the method most frequently used to
convey special areas of knowledge is known as:

A. special training courses

B. business games
C. role playing
D. Sensitive training .

165. The method of participants are placed in a simulated competitive environment and operate as
executive team is :

A. special training courses

B. business games
C. role playing
D. sensitive training.

166. The developmental method in which the participants have the opportunity to learn human
relations skill in a laboratory setting is :

A. special training courses

B. business games
C. role playing
D. sensitive training .

167. The method in which participants meet as a group for a relatively extended period for the
purpose of achieving better self-knowledge and awareness of social interaction is :

A. special training courses

B. business games
C. role playing
D. sensitive training.

168. Sensitivity training sessions:

A. are proven to be effective OD techniques

B. encourage people to express and examine their feelings and behaviour
C. work best with 20 - 30 members
D. are highly structured sessions.

169. Directing functions of management embraces activities of :

A. issuing of orders to subordinates

B. supervising of subordinates
C. communicating with subordinates
D. proving adequate leadership and motivation to subordinates
E. all of these.
170. The direction process has several characteristics. Which of the following is not typically
included?

A. it is goal oriented
B. it occurs in sequential chains
C. it occurs over time
D. it cannot be learned in the classroom.

171. In comparison to top level manager, a first-line supervisor will spend more time in :

A. direction of subordinates
B. policy making
C. public relations
D. long-range planning.

172. Technical skill of a supervisor will be most needed where:

A. operations are complex and organizational level is low

B. operations are simple and organizational level is low
C. operations are simple and organizational level is high
D. operations are complex and organizational level is high.

173. The vast majority of supervisory decisions are:

A. intuitive
B. judgmental
C. problem-solving
D. group decisions.

174. One disadvantage of group participation in directing is :

A. time required
B. knowledge available
C. motivation of the members
D. effect on morale.

175. Execution involves all of the following steps except:

A. providing direction
B. initiating operations
C. providing support resources
D. measuring performance against the plan.

176. A supervisor is most likely to be able to directly affect an employees:

A. task assignment
B. work habits
C. personal aspirations
D. attitudes and values.

177. The element that is a linking process of managerial functions is :

A. planning
B. controlling
C. communicating
D. representing
178. Successful communication involves the occurrence of a :

A. desire change
B. undesired change
C. no change
D. none of these.

179. The proportion of a time manager spends communicating is probably about:

A. 25%
B. 50%
C. 75%
D. 100%

180. The proper sequence of elements in the expanded communication model is :

A. sender-message-transmission-recipient-meaning
B. message-sender-signal-receiver-decode
C. sender-transmission-message-decode-meaning
D. message-transmission- encode-receiver-decode.

181. Among several communication options, managers are known to spend the most time in:

A. writing
B. speaking
C. reading
D. listing.

182. All of the following are useful guides to listening expect:

A. stop talking
B. restate the other's comment as you heard it
C. avoid the use of idle chatter
D. show genuine concern and a willingness to listen.

183. Listener's retention of information immediately after hearing it is about:

A. 25%
B. 50%
C. 75%
D. 100%

184. Leadership implies the existence of the:

A. followers
B. leader
C. community of interests between the two
D. all of these.

185. A reader typically :

A. seeks to understand and problems of his followers

B. puts plans into action and generates enthusiasm for them
C. motivates others to accomplish the required work
D. none of these
E. all of these.
186. The relationship between leadership and management is most accurately stated as:

A. leadership is a subset of management

B. leadership and management are synonymous terms
C. there is nor relationship between leadership and management
D. management is a subset of leadership.

187. Leadership is best described as being :

A. creative and continuous

B. dynamic and continuous
C. decisive and dynamic

188. In two polls regarding business leadership in 16 social and economic areas, it was found that:

A. business should take more leadership in all areas

B. business should take more leadership in some areas, less in others
C. business should take less leadership in all areas
D. people really had little strong feelings .

189. The assumption that a leader and his behaviour cannot be analysed and that " a leader is
leader" are consistent with the -------approach to studying leadership.

A. great-man
B. trait
C. situational
D. none of these.

190. Difficulties in defining and measuring personality characteristics of leader are problems
encountered in conjunction with the:

A. great-man approach
B. trait approach
C. situational approach
D. none of these.

191. Shifting the emphasis from what the leader is to what leader does is consistent with the :

A. great-man approach
B. trait approach
C. behavioural approach
D. none of these.

192. The study of leadership has focused primarily on three areas, NOT include:

A. traits
B. leadership
C. attitude and emotions
D. situational factors.

193. George Homans suggest that what a leader needs is :

A. a method for analyzing the social situation

B. absolute principles for managing people
C. concepts that do not change over time or because of new conditions
D. a good set of rules.
194. The manager who motivates people by offering them greater satisfaction of their own motives
they work towards the organization 's goals is utilising:

A. positive leadership
B. negative leadership
C. centralised leadership
D. decentralised leadership

195. The manager who motivates people by explicitly or implicitly threatening punishment of some
kind for non-cooperation is using:

A. positive leadership
B. negative leadership
C. centralised leadership
D. decentralised leadership

196. In which leadership climate would the employee tune to " look for a way out "of the situation?

A. positive
B. negative
C. both positive and negative
D. neither positive nor negative.

197. Bureaucratic leader is -------- leadership.

A. boss centred
B. group centred
C. subordinates centred
D. rule centred.

198. Democratic leadership is characteristics by:

A. decentralisation
B. two-way communication
C. participation
D. all of these.

199. Autocratic leadership is characterised by :

A. maximum centralisation of authority

B. unilateral decision making
C. one-way communication
D. all of these.

200. One who holds his position because of force of prestige attached to his office is called:

A. intellectual leader
B. institutional leader
C. democratic leader
D. creative leader.
201. Industrial leaders are developed by improving the natural talents which individuals possess
through:

A. formal education
B. industrial training
C. self-development
D. all of these.

202. Which motives would be most important in guiding a person's behaviour at a particular time,
those that are -----?

A. satisfied
B. unsatisfied
C. both of these
D. none of these.

203. For which socio-economic group of people would the physical dimension of motivation be
most important?

A. upper income
B. middle income
C. lower income
D. none of these.

204. Achievement for its own sake and sacrifice of personal com-fort for the good of someone else
or for a cause typifies the --------dimension of motivation.

A. physical
B. social
C. psychic
D. none of these.

205. Needs theory of motivation was enunciated by:

A. Abraham
B. David Mc Cleland
C. Kurt Lewin
D. Herzberg.

206. A.H Maslow suggested that in modern society needs are:

A. completely satisfied (100%)

B. largely satisfied (70%)
C. partially satisfied(30%)
D. unsatisfied.

207. What in your opinion would be the most powerful personal objective of a Nobel Prize winning
chemist working in the research department of a medical concern?

A. money
B. status
C. pride of creativity
D. none of these.
208. Arrange these needs in a hierarchy in order of their power to motivate behaviour:

A. love
B. esteem
C. physiological
D. self-actualization
E. safety.

209. An employee working under a financial incentive system, who would like to produce more in
order to earn more money but would thereby lose the friendship of those in the work group, faces an--------.

A. approach -approach conflict

B. approach -avoidance conflict
C. avoidance-avoidance conflict
D. none of these.

210. The junior executive who faces the choice of either working in the evening or missing a due
date for a job assignment is involved in an ----conflict situation.

A. approach -approach
B. approach-avoidance
C. avoidance-avoidance
D. none of these.

211. The foreman who “gets made" at an inspector for rejecting parts manufacture in this
department thereby exhibits:

A. aggressive response
B. withdrawal response
C. compromise response
D. none of these.

212. A woman employee who" breaks down and cries “when repairman who " hits sensitive
mechanism with a wrench because he is unable to loosen it both illustrate the reaction called:

A. aggressive response
B. withdrawal response
C. compromise response
D. none of these.

213. Who propounded Theory X and Theory Y?

A. Douglas Mc Gregor
B. A.H Maslow
C. Frederick Herzberg
D. David Mc Clelland.

214. The managerial assumption that people basically dislike work ,prefer to be directed, and want
to avoid responsibility has been called:

A. Theory X
B. Theory Y
C. Theory Z
D. None of these.
215. Theory Y approach imply that great reliance should be placed on :

A. external control
B. internal control
C. production control
D. none of these.

216. Peter Drucker has been critical of Theory y for :

A. its attempt to control employees by psychological manipulation

B. totally discarding Theory X
C. stressing work as natural as play or rest
D. stressing on virtues of human nature.

217. In considering the hard or punitive verse the soft or human relations, reactions to handing the
consequences of Theory X,Mc Gregor suggest that the best alternative is :

A. hard
B. soft
C. both hard and soft
D. neither hard not soft

218. Who propounded " Motivation Maintenance Theory?"

A. A.H.Maslow
B. Douglas Mc Gregor
C. Frederick Herzberg
D. F.W.Taylor.

219. The set of factors which is primarily concerned with things that "surround" the job are called:

A. motivational factors
B. maintenance factors
C. motivational and maintenance factors
D. none of these.

220. A set of factors which are concerned with the job itself are called:

A. motivational factors
B. maintenance factors
C. both of these
D. none of these.

221. The two factors theory of motivation has been much criticised .Which statement is least
valid?

A. the study design(method)influenced the results

B. all people have strong derives for growth and accomplishment
C. the job content and job context factors are not mutually exclusive
D. satisfied workers are not necessarily the most productive.
222. Managerial control typically consists of three steps. Which one does NOT belong?

A. take corrective action

B. evaluate progress
C. remove unnecessary obstacles
D. measure performance.

223. The proper sequence of the three steps in the traditional control process is :

A. set standards, take corrective action, measure performance

B. measure performance, set standards, take corrective actions
C. set standards, measure performance, take corrective actions
D. measure performance, take corrective actions, set standards.

224. Controls should be exercised over each of the major functions of a (manufacturing)
organization. Which function is not normally listed as a major (line)?

A. accounting
B. marketing
C. production
D. quality.

225. A category not normally included in a resource budget is :

A. direct labour
B. travel
C. southern region
D. materials.

226. The function of management is performed by:

A. Board of Directors
B. President
C. Works manager
D. Foreman
E. All of these.

227. Control systems typically focus on all but which of the following factors:

A. quality of the product

B. resources consumed
C. employee performance
D. quality of planning process.

228. Some prerequisites for a workable control system are that control should:

A. be economical and flexible

B. follow the organization structure
C. register deviations quickly
D. all of these.

229. Execution involves all of the following steps except:

A. providing direction
B. initiating operations
C. providing support resources
D. measuring performances against the plans
230. When performance is measured and evaluated against the plans, several alternatives may
be pursued. Which of the following would probably NOT be a viable option?

A. modify the measurement technique

B. modify the plans
C. modify operations
D. take no action.

231. If control are work ,they must be specially tailored:

A. to plans and positions

B. to the individual managers and their personalities
C. to the needs for efficiency and effectiveness
D. all of these.

232. Several means are available for the determination of performance:

A. observations
B. reports
C. summaries
D. statistical data
E. all of these.

233. All of the following are dangers inherent in over control except:

A. accenting short run results and ignoring long run outcomes

B. the reduction of personal freedom and independence at work
C. the creation of anxiety and stress among workers
D. a tendency toward increased flexibility.

234. The weaknesses of direct personal observations are:

A. time consuming
B. observer's purpose may be misunderstood
C. data acquired tend to be general rather than precise
D. all of these

235. In terms of the three focal points of control systems, people in our society generally like-----
best.

A. self control
B. centralized control
C. personal control
D. none of these.

236. Which focal point in the operation of the control system has the classic approach to
organization theory tended to emphasize?

A. centralized control
B. personal control
C. self-control
D. all of these.
237. Which focal point in the operation of control systems does the behavioural point of view
emphasize?

A. centralize control
B. personal
C. self-control
D. man-oriented.

238. For best management, controlling should be

A. profit-oriented
B. cost-oriented
C. objective-oriented
D. man-oriented.

239. In controlling ,a common means for determining performance is by means of:

A. reports
B. personal objectives
C. standards
D. key cases.

240. Customer orders received and shipments are illustrative of :

A. the input and the controlling within an enterprise

B. the close relationship between planning and controlling
C. the key points for controlling
D. the exceptional cases of controlling.

256. Included in the category of overall controls are:

A. sales budget, strategic points and organization pattern

B. ratios, break even analysis and return one investment
C. authority, standards and PERT
D. none of these.

257. The control function of management embraces:

A. cost control
B. financial control
C. budgetary control
D. all of these.

258. Several types of control systems rely on quantitative data in their measurement process
.Which type does NOT?

A. social control
B. financial control
C. production control
D. quality control.

259. A budget often appears as a projected:

A. trial balance
B. balance sheet
C. income statement
D. none of these.
260. One of the following budgets is probably most closely allied to the sales budget:

A. labour budget
B. production budget
C. advertising budget
D. cash budget.

261. Control of a departmental budget by a finance staff is an example of:

A. centralized control
B. personal control
C. self-control
D. none of these.

262. The period selected for a budget should:

A. coincide with the period used for the profit and loss statement
B. include the complete cycle of activity being budget
C. be guided by the limits of the forecasts about the activities
D. all of these.

263. long range company budgeting is difficult because of :

A. changes in internal organization structure

B. unanticipated union wage demands
C. hampering government regulations
D. inability to forecast costs and sales volume far in advances

264. Robert Anthony suggests that a budgeting process is:

A. more critical in private than than public institution

B. more critical in public than private institutions
C. equally critical for both public and private
D. not critical in either one.

265. The type of budget most common in public institutions is :

A. fixed
B. variable
C. semi-variable
D. flexible

266. Flexible budgets eliminate which cause (use) of variance?

A. from a poor estimate (or inaccurate standard)

B. from unexpected efficiency
C. from unexpected inefficiency
D. from a change in level of activity.

267. The Gantt chart is a control device for:

A. maintaining quality
B. arranging floor plans
C. machine-loading
D. scales forecasting.
268. One conclusion from the Hawthorne studies was that:

A. moral declines when employees are allowed to voice their grievances

B. workers produce at the pace dictated by the formal organic
C. social interaction with fellow workers influences job satisfaction
D. providing recognition to employees has little positive impact on productivity

269. The area of behavioural science application that emphasizes the importance of common
understanding and its assessment is ;

A. communication
B. motivation
C. leadership
D. development

270. The area of behavioral science research that focuses on the personal factors underlying high
productivity ,as well as high morale, is the area of employee:

A. communication
B. motivation
C. leadership
D. development

271. The area having to do with identifying personal characteristics and situational factors leading to
managerial success is that of:

A. communication
B. motivation
C. leadership
D. development

272. The situational variable organizations, the systems approach to management has resulted in
particular interest being given to:

A. economic
B. political
C. socio-culture
D. technological

273. As applied in business organizations, the systems approach to management has resulted in
particular being given to:

A. behavioural factors
B. formal authority
C. information and decision process
D. none of the above

274. The first step in a situational analysis of managerial problems is :

A. decipher the situation to known which factors are significant

B. know the trade off associate with each concept
C. match appropriate concepts and techniques with the situation
D. be knowledge of the various management concepts and techniques
275. With regard to situational management,managers should:

A. adopt the practice and style of someone else who is effect

B. develop their own natural style
C. disregard their own personality in their choice of a style
D. recognise that what works well in one situation should works equally well in another situation

276. When management pays attention to more important areas and when day-to -day routine
problems are looked after by lower-level of management ,this is known as:

A. Management By Objectives(MBO)
B. Management of Exception (MBE)
C. Unity of Command
D. Critical Path Method (CPM)

277. Division of labour :

A. reduces efficiency
B. affects the authority-responsibility relationship
C. increases efficiency
D. causes every employee to have only one boss

278. Fayol stated that:

A. discipline is over emphasized as a need for the manager

B. the individual 's interest and desire should control the goals of the organization
C. staff is not especially important when a strong manager is available
D. the degree of centralization varies

279. Hierarchy:

A. is sometimes called a chain of command

B. should always be followed in communications
C. is never responsible for red tape
D. means fairness combined with equity

280. Current management theory is a combination of:

A. process and behaviour school

B. quantitative and systems school
C. process and systems school
D. process, quantitative and behavioural school

281. Modern management theory does not include:

A. a reduction in the application of systems theory

B. modern organization structure
C. increased research on human behaviour
D. greater attention to the management of change

282. Systems theory:

A. is believed to be the basis of a school in itself

B. is the basis for systems management
C. provides the general base for the use of computers in business
D. all of the above
283. A managerial approach that uses those aspects of management schools that meet the unique
of the individual manager is called

A. eclectic
B. behavioural
C. quantitative
D. process

284. Functionalism involves:

A. a scalar chain of command

B. assigning tasks to certain people
C. compulsory staff consultation
D. none of the above

285. An open system does not include;

A. input
B. output
C. transformation process
D. resistance to change

286. Social systems are

A. mechanical
B. biological
C. contrived
D. all of the above

287. Management functions do not include

A. developing strategy
B. formulating objectives
C. being a company spokesman
D. developing technology

288. Staffing function of management comprises the activities of :

A. selecting suitable persons for positions

B. defining the requirements with regard to the people for the job to be done
C. training and developing staff to accomplish their tasks more effectively
D. all of these

289. Staffing function of management needs to be performed:

A. only in new enterprises

B. only in going enterprises
C. both in new and going enterprises
D. none of these

290. Guiding and supervising the efforts of subordinates towards the attainment of the organization
's goals describes the function of :

A. planning
B. organizing
C. directing
D. controlling
291. Directing function of management embraces activities of :

A. issuing orders to subordinates

B. supervising subordinates
C. guiding and teaching the subordinates
D. providing leadership and motivation to subordinates
E. all of these

292. Adequate motivation of employees results in:

A. fostering in-disciplines among the subordinates

B. boosting the morale of the subordinates
C. decreasing the productivity of subordinates
D. all of these

293. "Unity of Command " principle of effective direction means:

A. subordinates should be responsible to one superior

B. there should be unity amongst subordinates
C. there should be unity amongst superiors
D. a superior can supervise a limited number of subordinates

294. Establishing standards, comparing actual results with standards and taking corrective actions
are the steps included in the process of

A. planning
B. controlling
C. directing
D. organizing

295. Control function of management cannot be performed without:

A. planning
B. organizing
C. staffing
D. motivation

296. Successful coordination of activities results from effectively carrying out the function:

A. planning
B. organizing
C. staffing
D. directing
E. all of these

297. Line functions are concerned with those activities which are connected with the discharge of:

A. direct responsibility for accomplishing the subsidiary objectives of the organization

B. direct responsibility for accomplishing the main objectives of the organization
C. direct responsibility for accomplishing both main and subsidiary objectives of the organization
D. none of these
 298. Main functions of administrative management are:

A. planning, organizing ,staffing, directing and controlling

B. planning ,organizing,directing and controlling
C. planning ,organizing, staffing and directing
D. planning, organizing, controlling and representation

299. In terms of the sequential relationship, the first function requiring managerial attention is:

A. planning
B. coordinates
C. directing
D. controlling

300. The last function in the sequence, which culminates in the attainment of organization
objectives, is:

A. organizing
B. coordinating
C. controlling
D. planning

301. Which of the following management functions are closely related?

A. planning and organizing

B. staffing and control
C. planning and control
D. planning and staffing

302. Which of the following functions of management are more closely related?
A. planning
B. coordination
C. motivation
D. control

303. The corporate president's job could be described as requiring:

A. high technical ability
B. high administrative ability
C. accounting operations ability
D. an aptitude for security operations

304. Which of the following is not an element of administration?

A. planning
B. organizing
C. coordinating
D. initiative

305. According to Barnard, the executives primary job is:

A. to establish and maintain a communication system
B. to develop and improve technical skills
C. to develop job descriptions
D. to create a climate in which production workers will increase productivity
306. Which of the following is not one of the three executive functions described by Barnard?
A. establish and maintain a communication system
B. get workers to make the necessary effort for the organization
C. develop authority relationships
D. formulate purposes and objectives of the organization

307. Referring to staff:

A. employees can being immediately to perform productively on the job
B. it is useful to continually shift staff people from one job to another
C. a mediocre administrator who has been on the job for a while is more productive than a competent
manager who has been moving around
D. none of the above apply

308. In order to get workers to make a maximum effort, they must:

A. have excellent leadership
B. be intimidated by first line supervisors
C. be part of the overall executive communication network
D. identify with the organization

309. Understanding authority is important because:

A. authority is enough to get workers to obey
B. workers will faithfully obey any instructions if they understand them
C. the instructions must be consistent with the purpose of the organization
D. having authority is not enough to get workers to obey instructions

310. The activity of an executive manager in which we given careful consideration to future even is
known as:
A. planning
B. controlling
C. appraising
D. organizing
E. developing

311. Goal congruence refers to a situation where:

A. personal interests of the employees are not looked after at the time of fixing company objectives
B. the goals of the company and the personal goals of the employees are in conflict with each other
C. the goals of the and the personal goals of the employees are in conflict with each other
D. none of these

312. The principle of limiting factor states that in choosing from among alternatives the more
individuals can identify and solve for those factors which are critical to:
A. formulation of organizational policies,rules ,procedures and strategies,the more clearly and
accurately they can select the most favourable alternative
B. the attainment of desired goal,the more clearly and accurately they can select the most favourable
alternative
C. organizational efficiency and efficacy,the more clearly accurately they can select most favourable
alternative
D. none of these

313. Most managers have:

A. no objectives
B. multiple objectives
C. single objectives
D. none of these
314. By " satisficing "objectives is meant:
A. accomplishing the targeted work within time and cost allowed
B. having an objective that the manager finds easy to attain
C. maintaining present competitive and profit positions
D. none of these

315. Arranging the data in a matrix form is most characteristic of:

A. monte carlo
B. linear programming
C. simulation
D. none of these

316. Within an enterprise,existent plans do not :

A. need to be considered interdependent
B. tend to beget plans
C. apply to simple,repetitive work
D. none of these

317. The responsibility of the "Production Planning and Control" department is to :

A. offset seasonal variations
B. keep work in process at a minimum
C. formulate production policy
D. schedule output to fulfill sales needs
E. avoid inventory losses

318. Thinking in term of phases in planning helps to:

A. reduce the plan to a simple series of actions
B. keep the planned efforts on schedule
C. coordinate the separate activities within the plan
D. insurance acceptance of the plan by all concerned or affected by it
E. all of these

319. With regard to Gantt charts:

A. they ignore costs
B. they ignore the time factor
C. they show dependent relationships between activities
D. they explicitly show quantity and quality considerations

320. Which is not type of economic forecasting?

A. extrapolation
B. user expectations
C. lead and lag indicators
D. econometrice

321. Sales may be anticipated by:

A. jury of executive opinion
B. grass-roots method
C. current sales information
D. all of the above

322. An econometric model;

A. uses no - mathematical techniques
B. is not used in forecasting
C. can suggest the results of using various strategies
D. Determines lag indicators.
323. Each system in the planning function is made up of four elements. They are:
A. objectives ,policies, procedures, plans
B. procedures, feedback, control plans
C. standards, inputs ,outputs, controls
D. inputs, process, outputs, feedback

324. The specification of XYZ Ltd. Can accept gifts from suppliers except token gifts of purely
nominal or advertising value. It is a:
A. objectives
B. policy
C. procedure
D. method

325. Management by objectives:

A. is the opposite of job enrichment
B. does not related to establishing goals
C. is not related to establishing goals
D. gives subordinates a voice in what is going on

326. A policy is best defined as:

A. an unwritten objective
B. a rule
C. a guide to action and decision making
D. a regulation not be violated

327. Operation research :

A. is a research at the operation level
B. is a non-mathematical concept
C. shows how to conduct research on various manufacturing operations
D. helps broaden management 's vision and perspective in selecting alternative strategies and solutions to
problems

328. In its approach to decision making, operations research emphasizes the use of .......... point of
view
A. departmental
B. inter-departmental
C. inter-firm
D. none of these

329. The steps involved in OR analysis are:

A. identification and quantification of goals of the system
B. identification and quantification of variables that affect goals attainment
C. selection or construction of the appropriate mathematical models
D. all of these

330. Selective probability is:

A. the product of benefits times probability
B. the product of costs times probability
C. based on known probabilities
D. based on limited knowledge or experience

331. The probability of a new product's success is 0.6 , with an expected value of Rs.21,600.What
is projected savings?
A. Rs.12,960
B. Rs.21,600
C. Rs.34,560
D. Rs.36,800
332. The method that is appropriate when costs associated with idle capacity must be balanced
costs of waiting is:
A. queuing theory
B. probability analysis
C. game theory
D. linear programming

333. The manager who attaches quantitative estimates of the likelihood of various events as an aid
to decision making is utilising
A. queuing theory
B. probability analysis
C. game theory
D. linear programming

334. Determining a decision -making strategy by anticipating what a major competitor will do
involves the use of :
A. queuing theory
B. probability analysis
C. game theory
D. linear programming

335. The mathematical method that would be appropriate when we want to determine how many
units each of a number of limitations so as to maximize revenue is :
A. queuing theory
B. probability analysis
C. game theory
D. linear programming

336. The most complex of the programming (charting) techniques for non-repetitive action is:
A. PERT
B. Gantt
C. Impact
D. Milestone

337. If, in PERT, the optimistic time estimate for an activity is 3 days, the most likely is 6 and the
pessimistic 12, what is the expected time if all three have equal probability?
A. 7 days
B. 9 days
C. 12 days
D. 21 days

338. Assume an 80 percent learning curve. If it takes an average of 50 hours to assemble 2 units,
how many hours (average/unit) would it take to assemble 4?
A. 25
B. 32
C. 40
D. 50

339. EDP is an acronym for:

A. efficient data processing
B. electronic data processing
C. elementary data processing
D. elementary data processing
340. Which of the following is not a step in decision making?
A. identifying the problem
B. talking about the problem but refusing to analyze relevant data
C. determining possible solutions
D. implementation of a solution

341. Quantitative methods of decision making received a big boost during:

A. World War II
B. World War I
C. The Korean War
D. The Indo-Pak War

342. Inventory costs include

A. clerical and administrative costs
B. storage costs
C. carrying cost
D. all of the above

343. Game theory involves:

A. economic order quantity
B. conflict of interest situations
C. linear programming
D. waiting-line theory

344. Saddle point zero-sum games:

A. can included two party zero-sum games
B. use minimax
C. use maximin
D. all of these

345. Monte Carlo technique uses:

A. subjective technique
B. calculated payoffs
C. simulation
D. assigned probability

346. Linear programming technique can be applied for:

A. optimisation of systems
B. minimisation of cost
C. minimisation of effort
D. improving human relations

347. The most correct statement about punishment is that :

A. it should always be delayed to allow time to reflect and cool off
B. it should never be used
C. if employed more often, we could have greater productivity
D. its costs and benefits must be carefully evaluated before using it

348. The organizational level of management requires data about:

A. production scheduling
B. inventory control
C. inventory measurement
D. formulating budget
349. Which of the following is not a basic function of every business
A. financing
B. distributing
C. research
D. creating a utility

350. The organization chart will not show:

A. the informal organization
B. how the work is divided
C. the nature of the work performed by the components
D. chain of command

351. "Unity of command" is violated under:

A. line organization
B. line and staff organization
C. functional organization

352. While delegating a super delegates:

A. only authority
B. authority and responsibility
C. authority, responsibility and accountability
D. authority and responsibility but on the accountability

353. Decentralization :
A. increases the importance of superiors
B. decreases the importance of superiors
C. increases the importance of subordinates
D. decreases the importance of subordinates

354. Which of the following is not a kind of departmentalization?

A. time
B. customer
C. ad hoc
D. equipment

355. The role of "staff" in line and staff organization is:

A. authoritative
B. advisory
C. responsibilities

356. Span of control is narrow when the:

A. posts in the top management increases
B. posts in the middle management increases
C. posts in the first-level increases

357. Project organization:

A. is a close system
B. is long -lived
C. has rigid organization
D. none of these

358. Committees are most effective in handing?

A. jurisdictional questions
B. communications
C. decision making
D. all of the above
359. Disadvantages of committees do not include:
A. motivation of participation
B. decisions as a result of compromise
C. general inefficiency in some areas
D. waste of executive time

360. What procedures should be employed to make committees operate effectively?

A. define objectives
B. prepare and distribute agenda before meetings
C. keep size to management number
D. all of the above

361. The study of group dynamics shows that when group members select their fellow employees
the result is:
A. job satisfaction increases
B. productivity decreases
C. wants satisfaction increases
D. productivity increases
E. both a & b

362. Which factor does not cause or reduce dysfunctional behaviour?

A. redefinition of departmental boundaries
B. alternation of the informal structure
C. advance warning of impending change
D. lack of consideration for the fears of the personnel

363. Which motives would be most important in guiding a person's behaviour at a particular time,
those that are------?
A. satisfied
B. unsatisfied
C. both of these
D. none of these

364. for which socio-economic group of people would the physical dimension of motivation be most
important?
A. upper income
B. middle income
C. lower income
D. none of these

365. Achievement for its own sake and sacrifice of personal comfort for the good of someone else
or for a cause typify the ------ dimension of motivation
A. physical
B. social
C. psychic
D. none of these

366. Needs theory of motivation was enunciated by

A. Abraham Maslow
B. David Me Cleland
C. Kurt Lewin
D. Herzberg

367. A.H. Maslow suggested that in modern society, safety needs are
A. completely satisfied (100%)
B. Largely satisfied (70%)
C. Partially satisfied (30%)
D. unsatisfied
368. What in your onion would be the most powerful personal objective of a Nobel Prize winning
chemist working in the research department of medical concern?
A. money
B. status
C. pride of creativity
D. none of these

369. The foreman who "get mad “at an inspector for rejecting parts manufactured in his department
thereby exhibits
A. aggressive response
B. withdrawal response
C. compromise response
D. none of these

370. The managerial assumption that people basically dislike work, prefer to be directed, and want
to avoid responsibility has been called
A. theory X
B. theory Y
C. theory Z
D. none of these

371. Who propounded theory X and theory Y

A. Douglas Mc Gregor
B. A.H. Maslow
C. Frederik Herzberg
D. David Mc Clelland

372. The managerial assumption that work is as natural as play or rest, and that higher order needs
are the ones particularly relevant to successful motivation, is called
A. theory X
B. theory Y
C. theory Z
D. none of these

373. Peter Drucker has been critical of Theory Y for

A. its attempted to control employees by psychological manipulation
B. totally discarding theory X
C. stressing work as natural as play or rest
D. stressing on virtues of human nature

374. Theory Y approach imply that greater reliance should be placed on

A. external control
B. internal control
C. production control
D. none of these

375. Who propounded "Motivation-Maintenance Theory?”

A. A.H. Maslow
B. Douglas Mc Gregor
C. Frederick Herzberg
D. F.W. Taylor

376. In considering the hard or punitive versus the soft or human relations, reactions to handling
the consequences of the theory X, Mc Gregor suggest that the best alternative is
A. hard
B. soft
C. both hard and soft
D. neither hard not soft
377. A set of factors which are concerned with the job itself are
A. motivation factors
B. maintenance factors
C. both of these
D. none of these

378. The set of factors which is primarily concerned with things. That "surround" the job are called
A. motivational factors
B. maintenance factors
C. motivational and maintenance factors
D. none of these

379. A set of factors which are concerned with the job itself are
A. motivation factors
B. maintenance factors
C. both of these
D. none of these

380. The two factor theory of motivation has been much criticised. Which statement is least valid?
A. the study design (method) influenced the results
B. all people have strong drives for growth and accomplishment
C. the job content and job context factor are not mutually exclusive
D. satisfied workers are not necessarily the most productive.

381. The expectancy model of motivation includes each of the following except
A. outcome probability
B. reward probability
C. magnitude of the reward
D. effort to be expended

382. When need, environmental and expectancy theories are combined

A. no significant factors emerge as important to consider
B. the individual becomes the dominant factor to analyze and understand
C. the environment becomes the dominant factors to analyze and understand
D. the combination of forces in the individual and the environment emerge as important

383. If employee feel inequity between expectations and rewards

A. morale will predictably be high.
B. satisfaction will result.
C. their contributions will be reduced.
D. they will lower their expectations.

384. Job context factors include

A. working conditions
B. growth opportunities
C. challenging job
D. recognition

385. A supervisor is most likely to be able to directly affect an employees

A. task assignments
B. work habits
C. personal aspirations
D. attitudes and values
386. Which factor does not cause reduced dysfunctional behaviour?
A. redefinition of departmental boundaries
B. alternation of the informal structure
C. advance warning of impending change
D. lack of consideration for the fears of the personnel

387. The study and application of knowledge about how people act within organizations is called:
A. psychology
B. organization behaviour
C. sociology
D. all of the above

388. "Grapevine" is a term used in relation to :

A. formal communication
B. informal communication
C. both formal and informal communication
D. this term is not used in relation to communication

389. If a firm has a high labour turnover, the presumption is that its personnel relations are:
A. poor
B. fair
C. excellent
D. none of these

390. Poor working conditions plus overtime and Sunday work sometimes produce a condition
among employees known as:
A. goldbricking
B. industrial fatigue
C. occupational malaise
D. none of these

391. The test of the adequacy of any wage level is in the :

A. real wages
B. time wages
C. money wages
D. none of these

392. One of the purposes of profit-sharing is:

A. to reward workers for extra production
B. to induce loyalty to the company
C. to compensate for a low wage scale
D. none of these

393. If the workers productivity is decreased at the same time that their wages are raised, unit costs
will be:

A. raised
B. the same
C. lowered
D. none of these

394. The determination of human asset does not include:

A. cost of training
B. cost of hiring
C. obsolescence
D. none of these
395. Job enrichment mean:

A. giving individual wider variety of duties in order to reduce monotony

B. additional motivators are added to a job to make it more rewarding
C. increasing the span of control of the individual
D. none of these

396. A cause of job dissatisfaction is:

A. salary
B. fringe benefits
C. the use of human resource accounting
D. the conflict between worker expectations and the organizations conditions

397. Sensitivity training :

A. involves small group interaction under stress

B. is an unstructured encounter group
C. aids people’s sensitivity to one another
D. all of these

398. When considering the loss of retention at successively lower organizational levels, we may
conclude that:

A. the greatest loss occurred at the vice-presidential level

B. the greatest loss occurred at the plant manager level
C. the greatest loss occurred at the general foreman level
D. the greatest loss occurred at the rank and file worker

399. The minimal use of status symbols tends to improve organizational communication by
reducing the barrier of:
A. pressure of time
B. psychological distance
C. filtering
D. premature evaluation

400. A system of decision centres inter-connected by a communication channels is a :

A. communication network
B. communication process
C. communication barriers
D. communication methods

401. The tendency that listeners have to arrive at judgements before all relevant information has
been is called:

A. filtering
B. premature evaluation
C. psychological distance
D. pressure of time
402. A sender, a receiver, a flow of information to the receiver, and a flow of feedback to the sender
at included in the model

A. circuit communication
B. circuit communication
C. centralised communication
D. chain communication

403. The pattern in which every person has someone " to each side of him " with whom he can
communicate is the:

A. circular pattern
B. chain pattern
C. centralised pattern
D. none of these

404. The communication pattern which was generally fastest and most accurate for simple problems
was the:

A. circular
B. chain
C. centralized
D. none of these

405. Effective communication requires:

A. a sender
B. a receiver
C. information and sender
D. information and understanding

406. One of the steps of effective communication is:

A. acceptance
B. written presentation
C. oral presentation
D. body language

407. Transactional analysis refers to all of the following ego states expect:

A. Parent
B. Adult
C. Supervisors
D. Child

408. Words are a type of communication medium, as are:

A. typewriters
B. pictures
C. single strand
D. all of these
409. Correct or acceptable behaviour is rewarded in:

A. behaviour modification
B. sensitivity training
C. transactional analysis
D. none of the above

410. The best analogy of communication in an organization with respect to human body is:

A. circulatory system
B. nervous system
C. respiratory system
D. digestive system

411. An informal leader usually has no basis for influence from:

A. knowledge
B. coercise
C. charisma
D. position

412. Which style of leadership represents the extreme of centralised decision making authority?

A. authoritarian
B. democratic
C. free-rein
D. none of these

413. The conclusion that when a leader ceases to lead, disorganisation in group behaviour results
is suggested by the findings associated method:

A. free-rein method
B. authoritarian method
C. democratic methods
D. none of these

414. People -centred leadership is described as:

A. democratic
B. permissive
C. follower -oriented
D. all of these

415. The set of factors which is primarily concerned with things that " surround" the job are called:

A. motivational factors
B. maintenance factors
C. motivational and maintenance factors
D. none of these

416. A set of factors which are concerned with the job itself are called :

A. motivational factors
B. maintenance factors
C. both of these
D. none of these
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Velammal College of Engineering and Technology

Department of Computer Science and Engineering
Principles of Management
Multiple Choice Questions

UNIT – I

1. How are principles of management are formed?

(A) By rule of thumb
(B) By observation and experimentation
(C) By experiences of customers
(D) By Experiments in science laboratory

2. --------------- focuses on improving decision making via the application of management

(A) Classical
(B) behavioral
(C) modern
(D) Quantitative

3. Management is a creative and ________ process.

(A) Continuous
(B) Technical
(C) Democratic
(D) None of the above

4. Which type of strategies do professional managers help organizations in chalking out?

(A) Multi-disciplinary
(B) Corporate
(C) Managerial
(D) All of the above

5. The summary of important trends in retailing are

(A) market concentration
(B) global players vs. local players
(C) non store retailing
(D) all of the above

6. Fedrick Winslow Taylor’s Mechanism of Scientific Management includes

(A) Scientific task setting
(B) planning the task
(C) standardization of tools and equipment
(D) All of the above

7. The heart of administration is the ___ function.

(A) Directing
(B) Organizing
(C) Controlling
(D) Cooperating

8. The old control technique(s) which was (were) used through years is (are)
(A) unity of policies
(B) break-even analysis
(C) budgetary control
(D) All of the above

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9. Management exists at the ___ level of the organization.

(A) Lower
(B) Middle
(C) Top
(D) All of the above

10. Management is said to be the combination of

(A) arts, science and profession
(B) arts, science and engineering
(C) arts, commerce and science
(D) arts, commerce and engineering

11. Costliness of the ________ is the overriding factor determining the extent of decentralization.
(A) Decision
(B) Staffing
(C) Both (A) and (B)
(D) None of the above

12. The objective(s) in corporate governance is (are)

(A) shareholders value maximization
(B) growth
(C) stability
(D) all of the above

13. What articulates the long-term goals of an enterprise?

(A) Policies
(B) Vision statement
(C) Both (A) and (B)
(D) None of the above

14. _____________ Management is the source of authority

(A) Top
(B) Middle
(C) Lower
(D) All the Above

15. Derivation of principles of management is a matter of I)--------- and their application is a matter of -----
-----------ii)

(A) i)art ii) Science

(B) i) science ii) art
(C) i)art ii)discipline
(D) i)discipline ii) science

16. Which of the following technique of scientific management has the objective to determine the number
of employed. Frame suitable incentive schemes and determine labour cost.
(A) Fatigue study
(B) Time Study
(C) Functional foremanship
(D) Simplification of work

17. --------------- involve a series of steps to be taken to accomplish desired goals. Principles are
guidelines to take decisions of actions while practicing

(A) Values
(B) Techniques
(C) Programmes
(D) Actions

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18. Limitations of control is are

(A) external factors
(B) fixing of responsibility
(C) variation and its causes
(D) All of the above

19. ___ is supposed to be immutable, unchanging and eternal.

(A) Policy
(B) Vision
(C) Mission
(D) All of the above

20. Direction is a ________ function performed by all the managers at all levels of the organization.
(A) Managerial
(B) Organizational
(C) Both (A) and (B)
(D) None of the above

21. ___ is a tool for corporate governance.

(A) Training
(B) Recruitment
(C) Communication
(D) Consulting

22. The internal environment factor(s) that influence management is (are)

(A) Labor
(B) Machines
(C) Place
(D) All of the above

23. which of the following technique of scientific management is violation of unity of command.
(A) Motion study
(B) fatigue study
(C) functional foremanship
(D) Simplification of work

24. Fayol’s principle of division of work can be applied to following kind of work
(A) Technical
(B) Managerial
(C) Both
(D) None of these

25. The contribution of Fayol and Taylor are---------------- to each other

(A) Competitive
(B) Cooperative
(C) Complimentary
(D) Coordinated

26. Horizontal co-ordination takes place ___ .

(A) upwards
(B) downwards
(C) sideways
(D) any of the above

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27. Retailing category(ies) based on ownership arrangement would be

(A) Super Markets
(B) Consumer Durables Stores
(C) Departmental Stores
(D) All of the above

28. Which Management spent more time on organizational and directional functions

(A) Top
(B) Middle
(C) Lower
(D) All the Above

29. Henry Fayol and F.W.Taylor belongs to which of the following school of management
(A) Classical
(B) Modern
(C) Early perspective
(D) None of the Above

30. ---------------- among the following was the first to identify four functions of management.

(A) Henry Fayol

(B) W.Taylor
(C) Max Weber
(D) Harold Koontz

31. Authority is undermined, discipline is in jeopardy, order disturbed, and stability threatened?
(A) Unity of direction
(B) Discipline
(C) Unity of Command
(D) Stability of Personnel

32. General theory of administration is the expression of

(A) W.Taylor
(B) Henry Fayol
(C) Max Weber
(D) F.L. Brech

33. Positive motivation makes people willing to do their work in the best way they can and improve their
________.
(A) Productivity
(B) Personality
(C) Performance
(D) All of the above

34.---------means every one should get order from superior only

(A) Unity of command
(B)Unity of direction
(C) Order
(D) Centralisation

35.Concentration of authority at one level is called

(A) Delegation
(B) Decentralisation
(C) Accountability
(D) Centralisation

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36.Which of the following is not a principle by Henry Fayol.

(A) Division of work
(B) Unity of command
(C) Discipline
(D) Harmony not discord

37.Management should find the best way to perform one task. Which technique of management is suitable
---------- to perform the task.
(A) Method Study
(B) Time Study
(C) Motion Study
(D) Fatigue study

38.Principle of management is significant because of

(A) Initiative
(B) Increase in Efficiency
(C)Optimum utilization of resources
(D) Adapting to changing Technology

39.Same battery can be used different mobile phones of a particular brand. This is an example of which of
the following techniques of Scientific Management?
(A) Standardisation
(B) simplification
(C) Method study
(D) Functional foremanship

40. Which of the following is an example of time study?

(A) To determine the number of workers to be employed
(B) To formulate suitable incentive schemes
(C) To calculate the labour costs
(D) All the above

41.Principle of division of work is applicable to a government office where there is a diary/dispatch clerk
whose job is to receive and send mail, a data entry operator whose task is to input data on the computer.
Division of work is also applicable to limited company where there are separate departments like
productions, finance , research and development etc

Which quality of Pom is highlighted above?

1. General Guidelines
2. Universal applicability
3. Flexible
4. Contigent

42. Employees deserve fair and just remuneration but what is just, and fair is determined by multiple factor.
They include contribution of the employee, paying capacity of the employer and prevailing wage rate for
the occupation under consideration.

Which quality of Pom is highlighted above?

1. General Guidelines
2. Universal applicability
3. Flexible
4. Contigent

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43. Management principles increase managerial efficiency as manager leave routine decision making to
his subordinates and deal with exceptional situations which require his expertise by following the principle
of delegation

1. adherence to these principles add to knowledge and understanding of managerial situations.

2. principles emphasis logic rather than blind faith
3.principles of management are at the core of the management theory
4. principles are guidelines that can be modified as per the changing environment

44. Even a small production activity like loading pigs of iron into boxcars can be scientifically planned and
managed.This can result in tremendous saving of human energy as well as wastage of time and materials

Which of the following pom emphasize on above situation?

1. harmony does not discord

2. science not rule of thumb
3. Initiative
4. Development of each person to his or her greatest efficiency and prosperity

45. Principles of management do not provide readymade solution to any problem but in dealing with a
situation of conflict between two department, a manager may emphasize the primacy of the organization
goal.
Which quality of Pom is highlighted above?

1. General Guidelines
2. Universal applicability
3. Flexible
4. Contigent

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UNIT – II

1.Planning involves............
(a) review of past performance
(b) setting objectives and determining course of action for achieving them
(c) analysis of policies
(d) All of these

2.Purpose of planning is ………..

(a) To manage by Objective
(b) To offset uncertainty and change
(c) To secure economy in operation
(d)All the above

3.Which of the planning is based on organization’s mission and is often carried out by top
management?
(a) Strategic planning
(b) Operational planning
(c) Tactical planning
(d) None of the above

4.Tactical planning involves

(a) Long time frame
(b) Activating a strategy & making it to work
(c) Involves single use or standing plans
(d) Not concerned about lower level units

5. Which plan is made once and retain their value over a period of years while undergoing periodic
revisions and updates?
(a) Operational plans
(b) Strategic plans
(c) Standing plans
(d) Single-use plans

6.According to knootz, which term is used to indicate end point of management programme?
(a) planning
(b) Strategy
(c) Policies
(d) Objective

7.MBO stands for

(a) Monitoring By Objective
(b) Management By Objective
(c) Monitoring By Organisation
(d) Management By Organization

8. Which is not a feature of MBO?

(a) Individual goal setting
(b) Makes way to attain maximum result
(c) Superior subordination participation
(d) Joint goal setting

9. Which serves as a guide for decision making in an organization?

(a) Strategy
(b) Objective
(c) Agreement
(d) Policies

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10.Purchase policy belongs to

(a) Functional policies
(b) Departmental Policies
(c) Middle management policies
(d) top management policy

11.Which policy applies to routine activities( work related matter)?

(a) Functional policies
(b) Departmental Policies
(c) Implied policies
(d) verbal policies

12.A policy should be ………..

(a) Cover all reasonable anticipatable conditions
(b) definite, positive & clear
(c) Conform to economic principles & regulations.
(d) All the above.

13. ............... are goals established to guide the efforts of the company and each of its components
(a) objectives
(b) strategy
(c) policies
(d) procedure

14. Policy is an expression of intentions of

(a) lower level management
(b) top level management
(c) middle level management
(d) Individuals

15. Planning premises are made by taking into consideration ……………….

(a) past events
(b) future events
(c) present events
(d) both past and expected events

16. Which planning premises cannot be measured in factors?

(a) variable premises
(b) Intangible premises
(c) external premises
(d) non controllable premises

17…………….is a set of decision making rules for guidance of organizational behavior

(a) policies
(b) strategy
(c) procedure
(d) objectives

18.Which strategy helps in identifying the internal and external factors for achieving the objective?
(a) BCG Matrix
(b) Porter’s Five force model
(c) Gap Analysis
(d) SWOT analysis

19.Products under which quadrant of BCG matrix return more ROI?

(a) Star
(b) dog
(c) Cashcow
(d) Question mark

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20.Which strategy is frequently used to identify an industry's structure to determine corporate strategy?
(a) Gap Analysis
(b) Porter’s Five force model
(c) Balance score card
(d) BCG Matrix

21.Among the porter’s five forces ,which one is involved in how much of profit the competitors are earning?
(a) Power of suppliers
(b) Power of customers
(c) Threat of substitute products
(d) Potential of new entrants into the industry

22.Improvement gap ,performance gap and diversification gap comes under

(a) Performance gap
(b) Product or market gap
(c) Profit gap
(d) Manpower gap

23.SWOT Analysis is a strategic planning method used to evaluate

(a) Strength,Weakness,Oppurtunities,Threats
(b) Strength,Work,Oppurtunities,Threats
(c) Simple,Weakness,Oppurtunities,Threats
(d) Strength,Weakness,Oppurtunities,Testing
24. BCG matrix is also known as
(a) Marketing matrix
(b) Sales matrix
(c) Relative matrix
(d) Growth/Share matrix

25.Which of the following is a planning techniques used for strategic management ………..
(a) Poster,s 5 Forces Competitive model
(b) Gap Analysis
(c) Balanced Score Card
(d) All the above

26. …………………. Is a process of identifying oppurtunities

(a) Planning
(b) Strategy
(c) Decision Making
(d) All the above

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UNIT-III

1. Organizing refers to:

(a) planning,
(b) delegation of authority,
(c) training,
(d) selection

2. Organizing aims to serve:

(a) common purpose,
(b) corruption,
(c) authority structure,
(d) All of the above.

3. Organizing destroys:
(a) individual relationships,
(b) plans,
(c) simplicity in the organization,
(d) environment.

4. The principle of objective states:

(a) delegation of authority,
(b) existence for a purpose,
(c) formal organization,
(d) none of the above.
[Hint: An organization must exist for a purpose is the principle of objective.]

5. For effective organizing, an organization required:

(a) principle of balance,
(b) span of management,
(c) organization process,
(d) planning and forecasting.

6. The structure of organization includes:

(a) identification and classification of required activities,
(b) informal organization,
(c) establishing enterprise objectives,
(d) authority relationships.

7. The degree to which an organization relies on rules and procedures to direct the behaviour of
employees is:
(a) complexity,
(b) formalization,
(c) centralization,
(d) motivation.

8. In a formal organization, “power” is associated with:

(a) an individual,
(b) position,
(c) relationship,
(d) control

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9. Delegation is:
(a) a continuous process,
(b) unfolding talents,
(c) granting the right to command.
[Hint: Delegation is the act of granting of conferring something and the term authority means right to command.]

10. Unity of command means:

(a) parity of authority and responsibility,
(b) flow of command from subordinate to superior,
(c) flow of command from superior to subordinate,
(d) parity in controlling.

11. Defective delegation:

(a) hampers coordination
(b) size of the organization,
(c) establish proper controls,
(d) establish sources of powers.

12. Indicate which of the following is NOT among the six main types of organization structure–
(a) Line organization
(b) Functional structure
(c) Committees
(d) Department

13. Organisattion structure is primarily concerned with and of tasks and authority.
(a) Allocation and Delegation
(b) Allocation and apportionment
(c) Reporting and delegating
(d) Setting standards and delegation

14. Line organization is also known as organization.

(a) Scalar
(b) Chain
(c) Matrix
(d) Project

15. An advantage of the matrix structure is said to be –

(a) Because product lines can be identified as cost centres,it facilitates financial control
(b) Top management has more time to devote to long term strategic issues
(c) It is easily understood by the people involved
(d) Improved lateral communications.

16. Organizational structure is made up of key elements. Which of the following is not one of these
elements?
(a) Centralisation
(b) Coordination
(c) Decentralisation
(d) Span of control
17. Staffing refers to:
(a) measuring performance,
(b) managing the positions,
(c) management in action,
(d) making strategic plans.
[Hint: Staffing refers to appointing the right person for the right job.]

18. Non-financial incentives have many things to do with:

(a) Directing,
(b) Motivation,
(c) Planning,
(d) organising.

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19. Staffing needs:

(a) man power planning,
(b) authority,
(c) communication,
(d) coordination.
[Hint: Staffing needs estimates of present and future needs of managerial man power and therefore it needs some pre-
thinking.]

20. HRD refers to:

(a) remuneration,
(b) development,
(c) controlling,
(d) planning

21. Recruitment covers:

(a) selection,
(b) job analysis,
(c) time,
(d) none of the above.
[Hint: Recruitment covers job analysis, job design and job descriptions.]

22. Training is the process of:

(a) motivation
(b) increasing knowledge and skill
(c) testing.
(d) employee recommendations.

23. Vestibule training provides the worker with:

(a) on the job training,
(b) off the job training,
(c) real life presentations off the job
(d) demonstration
[Hint: The worker is provided with a real life presentation but not on the job directly.]

24. What is the meaning of the acronym HRM?

(a) Humane Resource Management.
(b) Humanistic Resource Management.
(c) Human Resource Management.
(d) Human Relations Management.

25. Which of the following is not a function normally performed by the HR department?
(a) Recruitment and selection.
(b) Accounting.
(c) Training and development.
(d) Pay and reward.

26. Recruitment and selection must be effective to ensure it:

(a) Offsets high labour turnover
(b) Delivers the highest calibre of individuals at optimum most
(c) To have a surplus in case of sickness and absence
(d) Encourages new blood into the organization.

27. Which of the following is not a selection technique?

(a) Performance appraisal
(b) Ability test
(c) Psychometric testing
(d) Interviews

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28. The primary aim of recruitment and selection process is to

(a) Meet the high labour turnover
(b) Hire the best individuals at optimum cost
(c) Ensure the availability of surplus in case of sickness and absence
(d) None of the above.

29. Job evaluation is conducted to develop

(a) Compensation package
(b) Training modules
(c) Organisational grapevine
(d) Rules and policies.

30. Which of the following defines the process of recruitment?

(a) Forecasting the demand of human resources
(b) Forecasting the supply of human resources
(c) Discovering potential job candidates for a particular position
(d) Making a hire or no hire decision.

31. Which of the following is not a type of remuneration system under Time Rate System?
(a) High wage plan
(b) Measured day work
(c) Taylor System
(d) Differential time rate.

32. Which of the following functions or activities requires recruiting and placing qualified
personnel needed for the organization so that it may achieve its objectives and goals?
(a) Planning
(b) Staffing
(c) Organizing
(d) Controlling.

33. What sort of groups is defined by the organization’s structure?

(a) informal
(b) task
(c) friendship
(d) formal

34. When do informal groups appear?

(a) in response to the need for social contact
(b) in reaction to formal groups
(c) as a result of social needs
(d) most frequently in bureaucracies

35. Which of the following statements is true?

(a) All task groups are also command groups
(b) All command groups are also task groups
(c) All task groups are also friendship groups
(d) All command groups are also informal groups

36. As per Cartwright which of the following characteristics of a group is a means for overcoming
resistance to change
(a) Incentives
(b) Coercion
(c) Education
(d) Strong sense of belonging.

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37. Organization structure deliberately created by the management for achieving the objectives
of the enterprise is called
(a) Product organization
(b) Functional organization
(c) Formal organization
(d) Informal organization

38. Grapevine is another term used to describe

(a) Formal organization
(b) Informal organization
(c) Product organization
(d) Project organization

39. The unofficial and social pattern of human interactions is observed in

(a) Formal organization
(b) Informal organization
(c) Product organization
(d) None of these
40. When departmentation is done based on production, sales, financing and personnel, it is
termed as
(a) Functional departmentation
(b) Product departmentation
(c) Composite departmentation
(d) Customer departmentation
(e)

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UNIT – IV

1. Direction refers to:

(a) planning,
(b) organizing,
(c) driving,
(d) staffing

2. Marry Follett pointed that reform was possible provided the following consideration were taken into
account:
(a) building up new attitudes,
(b) planning
(c) negative attitudes,
(d) None of the above.

3. The characteristics of direction include:

(a) guiding,
(b) motivating,
(c) planning,
(d) performance appraisal

4. Direction is a:
(a) discrete process,
(b) continuous process,
(c) circular process,
(d) supervisory process

5. The principles of direction do not include:

(a) to have a thorough knowledge about the terms to bind the employees and the organization,
(b) to remove the inefficient employees,
(c) labour turnover,
(d) to have an effective communication superior and his subordinates.

6. The techniques of direction excludes:

(a) an alternative device of communication,
(b) supervisory techniques,
(c) coordination,
(d) standard practices and procedures.
Hint: Coordination refers to the link between the different functions of management.

7. Communication is a:
(a) two-way process,
(b) one-way process,
(c) discrete process,
(d) circular process
[Hint: Communication is a transfer of information from one person to another and getting the feedback to check the
efficiency of the message communicated.]

8. What comprises the decoding stage of the communication model?

(a) Perception; retention.
(b) Attention; perception; retention
(c) Receiving; processing and storing information
(d) Short term memory; decoding; long term memory.

9. What is the first step to take during communications planning?

(a) Decide on means of communication
(b) Identify communication constraints
(c) Conduct a stakeholder analysis
(d) Develop a communications management plan

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10. Feedback is a listener's

(a) verbal critique of your message.
(b) verbal or nonverbal responses to a message.
(c) acceptance of a message.
(d) aversion to a message.

11. To decode a message is to

a) translate ideas into code.
b) reject a message.
c) evaluate a message.
d) interpret a message.
12. In the communication process, to encode means to
(a) translate ideas into a code.
(b) block a pathway between the sender and receiver of a message.
(c) speak to large groups of people.
(d) interpret a code.

13. A message is a signal that serves as

(a) noise reduction.
(b) stimuli for a speaker.
(c) stimuli for a mass audience.
(d) stimuli for a receiver.

14. Feedback can come in the form of

(a) nonverbal communication only.
(b) verbal communication only.
(c) environmental noise.
(d) verbal and nonverbal listener responses.

15. In the communication process, a receiver is

(a) message interference.
(b) the person who decodes a message.
(c) a message pathway.
(d) the person who encodes an idea.

16. Noise does the following:

(a) causes listeners to listen to messages more carefully.
(b) focuses wandering thoughts.
(c) distorts or interferes with a message.
(d) enhances a message.

17. An example of a communication channel is

(a) face-to-face conversation.
(b) noise.
(c) feedback.
(d) context.

18. Which of the three components are part of the human communication process?
(a) Message, noise, feedback
(b) Feedback, message, critiquing
(c) Noise, feedback, jargon
(d) Message, recording, feedback

19. Which of the following is an example of a nonverbal message?

(a) Eye contact
(b) Yelling
(c) Mumbling
(d) Jargon

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20. The ability to communicate effectively

(a) depends on the education level of those around you.
(b) can be learned.
(c) is a natural talent that cannot be learned.
(d) depends on not using technology to send messages.
21. A message can only be deemed effective when it is
(a) communicated face-to-face.
(b) understood by others and produces the intended results.
(c) repeated back as proof of understanding.
(d) delivered with confidence.

22. Encoding is important because it

(a) guarantees that one's message will be decoded.
(b) encourages listener feedback.
(c) eliminates noise.
(d) Produces messages.

23. When a subordinate or a lower level manager passes information or offers suggestions to the
higher level management, they are using which level of communication?
(a) Upward communication
(b) Downward communication
(c) Lateral communication
(d) Diagonal communication.

24. Maslow in his hierarchy has not considered:

(a) psychological needs,
(b) security needs,
(c) wealthy needs,
(d) existence needs.

25. The features of leadership do not include:

(a) representation,
(b) initiation,
(c) planning,
(d) motivation

26. Leadership has a lot of characteristics and a leader must not maintain this trait in his
behaviour:
(a) coexistence,
(b) taking responsibility,
(c) avoiding responsibility,
(d) All of the above.

27. Which of the following statements about leadership is false?

(a) Leadership does not necessarily take place within a hierarchical structure of an organisation.
(b) Not every leader is a manager.
(c) When people operate as leaders their role is always clearly established and defined.
(d) All the above.

28. Contingency theories of leadership are based on the belief that:

(a) there is no single style of leadership appropriate to all situations.
(b) there is a single style of leadership appropriate to all managers.
(c) there is a single style of leadership appropriate to all situations.
(d) none of the above.

29. Another contingency model of leadership is the path-goal theory. This suggests that subordinates
will see leadership behaviour as a motivating influence if:
(a) path-goal relationships are clarified.
(b) their effective performance will satisfy their needs.
(c) the necessary direction, guidance, training and support is provided.
(d) all the above.

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30. When determining the most appropriate form of leadership, which of the following should be
considered?
(a) The manager.
(b) The work environment.
(c) The group.
(d) All the above.

31. The following phrase is used to describe a leader:

(a) relies on control strategies
(b) challenges status quo
(c) uses traditional influence
(d) acts with established culture
(e) maintains and allocates resources

32. The "means" of leadership involve

(a) getting results through others.
(b) the ability to build cohesive, goal-oriented teams.
(c) the process of influencing an organized group toward accomplishing its goals.
(d) an interpersonal relation in which others comply because they want to, not because they have to.

33. Which of the following is a leadership trait?

(a) Dominance
(b) Energy
(c) Cognitive ability
(d) All responses are leadership traits

34. Which of the following statements is false about the behavioral theories of leadership?
(a) Consideration is a people-oriented dimension of leadership behavior
(b) Production-centered leader behavior focuses on tasks and has little concern for people
(c) Leaders high in initiating structure do not set deadlines or make individual task assignments
(d) Employee-centered leader behavior focuses on people and the quality of the social system.

35. Maslow and Herzberg are two examples of theories of motivation.

(a) process
(b) content
(c) expectancy
(d) equity

36. Maslow suggests that human needs are arranged in a series of levels, a hierarchy of importance.
Which of the following statements are relevant to Maslow's hierarchy of needs theory?
(a) The hierarchy is not necessarily in a fixed order.
(b) A satisfied need is no longer a motivator.
(c) A need is not necessarily fully satisfied before a subsequent need arises.
(d) All of the above.

37. According to Herzberg, which of the following may be regarded as hygiene/maintenance factors?
(a) Sense of achievement.
(b) Recognition.
(c) Personal growth and advancement.
(d) None of the above.

38. Which of the following statements is true about the goal theory of motivation?
(a) People with easier goals will perform better than people with difficult goals.
(b) A person's level of commitment to a goal will not regulate the level of effort expended.
(c) People with difficult goals will perform better than people with easier goals.
(d) Research has shown that there is little support for the goal theory and its effects on motivation with
regard to the relationship between goal-setting and performance.

39. Douglas McGregor's view that suggests that employees will exercise self-direction and self-control
when they are committed to the objectives of the work is called:
(a) Theory B
(b) Theory X
(c) Theory Y
(d) Theory A

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40. Which step in Maslow's Hierarchy of Needs Theory deals with achieving one's potential?
(a) Esteem
(b) Physiological
(c) Self-actualization
(d) Social

41. Which of the following would be classified by Herzberg as a hygiene factor?

(a) Achievement
(b) Promotion
(c) Responsibility
(d) Company policy

42. Who proposed that achievement, affiliation and power are three important needs that help explain
motivation in workplace situations?
(a) McClelland
(b) Herzberg
(c) Alderfer
(d) Maslow

43. Company policy, administration, supervision, interpersonal relations, working conditions, and
salary are characterized as:
(a) Achievement factors
(b) Growth factors
(c) Motivating factors
(d) Hygiene factors

44. An employee's experiences in a situation or position outside his or her current organization is a
referent comparison called:
(a) Self-outside
(b) Other-inside
(c) Other-outside
(d) Self-inside

45. Theory X suggests that employees:

(a) Like their manager
(b) Dislike work
(c) Dislike their manager
(d) Like work

46. What three words define motivation?

(a) Intensity, direction, persistence
(b) Fairness, equity, desire
(c) Desire, persistence, fairness
(d) Ambition, direction, intensity
(e) Persistence, fairness, ambition

47. According to Herzberg’s motivation hygiene theory, the opposite of satisfaction

is,
(a) Dissatisfaction
(b) No satisfaction
(c) No dissatisfaction
(d) All of the above
48. The concept of social assumption is based on ......................................... belief that people are motivated by

social needs.
(a) Kurt Lewin’s
(b) Douglas McGregor’s.
(c) Elton Mayo’s
(d) Chris Argyris’s

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49. proposed by Douglas McGregors has a positive, dynamic, flexible and optimistic

view of employees.
(a) Theory W
(b) Theory X
(c) Theory Y
(d) Theory Z

50. Which type of leaders gives complete freedom to their employees?

(a) Autocratic leaders

(b) Bureaucratic leaders
(c) Participative leaders
(d) Laissez faire leaders

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UNIT – V

1. What is the management function that involves monitoring activities to ensure that they’re being
accomplished as planned and correcting any significant deviations.
(a) Control
(b) Planning
(c) Organising
(d) Directing

2. Which of the following is not a type of control systems?

(a) Feed backward control
(b) Feedback control
(c) Concurrent control
(d)Feed forward control

3. Control process is a ………….. process

(a) One
(b) Two
(c) Three
(d) Four

4. By starting the budget of each package from base zero, budgeters calculate costs afresh for each
budget period is called as ………………………..
(a) Cash Budget
(b) Variable Budget
(c) Captial Expenditure Budget
(d) Zero Based Budget

5. Important factors of non-budgetary controltechniques

(a) Statiscal data
(b) Break-even point analysis
(c) Operational audit
(d) All the above

6. ……………. Is classification of budget based on capacity?

(a) Basic Budget
(b) Current Budget
(c) Flexible Budget
(d) Master Budget

7. Expand MIS?
a) Management Interactive session
b) Management Information system
c) Message Information system
d) Managers Information system

8. Managers deal with information controls as

(e) Inventory control
(f) Message
(g) to speak to large groups of people.
(h) Organizational area

9. What other than software corporate tools improve management of departments?

(e) Debugging tools
(f) Internet and external computing tools
(g) Testing tools
(h) Snipping tool

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10. The use of MIS is to

(e) communication
(f) Track manager roles
(g) Transmit information
(h) provide information to managers

11. Application of MIS is used in,

(e) Marketing
(f) manufacturing
(g) logistics
(h) accounting
i. (a) &(b)
ii. (d)
iii. All the above
iv. None of the above

12. Productivity is the ratio between

(e) Output and input
(f) Work and time
(g) Quantity and quality
(h) Hard work and smart work

13. Memory utilization as a function of lines of code is an example of

(e) structural
(f) Economic
(g) Functional
(h) Physical

14. three common approaches defining productivity based on the model

(e) physical, functional, and economic
(f) direct, indirect and functional
(g) violent, social and scalar
(h) Coherent, cohesion and structural

15. Purchase of right quantity of materials avoids locking up of

(e) Employee
(f) Repetition in purchase
(g) working capital
(h) stocking

16. Which is the advantage of cost control

(e) depends on the education level of those around you.
(f) can be learned.
(g) is a natural talent that cannot be learned.
(h) depends on not using technology to send messages.

17. _________ refers to the technical process of gathering, examining, and analyzing the project
(e) Cost control
(f) Maintenance control
(g) Quality control
(h) Functional control

18. Maintenance department has to exercise effective

(e) Networking
(f) Feedback
(g) Noise control
(h) cost control

19. What should be made and the cost of reporting should commensurate with the expenditure
involved?
(e) Cost benefit analysis
(f) Flexibility
(g) Controllability
(h) Principle of exception

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20. What are the types of management reporting?

(e) Oral and written
(f) External and Internal
(g) Routine and special
(h) Control and information

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 Principles of Management
Unit 1
1. In management, we have planning-action-____ cycle.
Deciding
Function
Control
Manage

2.Modern Managers are

Action required
Able to build a sense of shared values
Able to manage changes efficiently
All of the above

3.Which of the following is not a principle of management given by Taylor

Functional Foremanship
Science, not rule of the thumb
Maximum, not restricted output
Harmony, not discord

4. How are principles of management formed?

In a laboratory
By experience of managers
By experience of customers
By experience of produce

5. The observation of people at work that would reveal the one best way to do a task is known
as
Scientific management
Creative management
Human Resource management
Classical management

6.The first management principles were developed by

Victor Meldrew
Charles
Henry Fayol
Taylor

7. Studying the future and arranging the means for dealing with its part of the process of
Organizing
Controlling

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Coordinating
Planning

8. The founder of Scientific Management was

Peter F Drucker
Fredrick Taylor
Hendry Fayol
Elton

9. Division of work, authority and responsibility unity of command were proposed as part of
the fourteen principles of management by
Fayol
Meldrew
Taylor
Charles

10. Management should find one best way to perform a task Which technique of Scientific
management is defined in this sentence
Time study
Motion study
Fatigue study
Method study

11. Henry Fayol was a

Social scientist
Accountant
Production engineer
Mining engineer

12. The principles of management are significant because of

Changing technology
Utilization of resources
Increase in efficiency
Initiative

13. Which of the following is not true

Management is universal
Management is Art
Management is a social process
Management is always bureaucratic

14. Which of the following is not the functional areas of management

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Production management
Marketing management
Personnel management
Information management

15. A reporting relationship in which an employee receives order form and reports to only one
supervisor is known as
Unity of direction
Unity of command
Centralization
Planning

16. Observe the following management principles and pick the odd one out .Justify your
answer
Maximum output
Equity
Unity of command
Unity of direction

17. Which of the following is not a function of management

Staffing
Planning
Controlling
Cooperation

18. Principles of management are not

Absolute
Flexible
Behavioural
Universal

19. With the wider span there will be hierarchical levels

More
Less

20. Management is what a ----does

Manager
Subordinate
Supervisor
Superior

21. Scientific management is developed by

Fayol

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Taylor
Mayo
Jacob

22. Management is an
Art
Science
Art and Science
Art or Science

23. Dividing the work in to small tasks is known as

Discipline
Unity
Division of work
Equity

24. -------is part and parcel of our day to day life

Management
Economics
Commerce
Industry

25. ------- helps to finish to task on time

Planning
Team spirit
Motivation
Remunerations

26. Management is a ----- and Universal concept.

Mathematical
Processing
Global
Economical

27. Which of the following is not a Management Tool?

Business Law
Econometrics
Statistics
Measuring

28. Management is an ongoing process of allocating ----- of an organization.

Input
Output
Employees

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Income

29. Quantitative school wants to improve the quality of -------.

Planning
Organizing
Decision Making
Functioning

29.----- approach emphasizes dynamic nature of management process in an ever changing

business environment.
Contingency
Positive
Negative
Systems

30. ------ approach concentrates on the entire organization.

Contingency
Positive
Negative
Systems

31. Which principle of general management advocates that, “Employee turnover should be
minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

32. According to P. Drucker, the manager has to balance and integrate _____ major jobs of a
business enterprise.
2
3
4
5

33. The art of management is fully reflected in the _____ capacity of a manager.
Decision making
Planning
Organizing
Managing

34. Judgment and Imagination are essential even in a ____ economy.

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Civilized
Developing
Computerized
Classic

35. In order to increase organizational efficiency, the ____ method should be substituted.
Rule of Thumb
Harmony, not discord
Mental Revolution
Individualism

36. ____ with mutual-trust and understanding should be a tool to focus on the work.
Planning
Deciding
Group action
Discussing

37. To attain the efficiency, steps should be taken right from the process of _____ of
employees.
Selection
Managing
Transferring
Guidance

38. Social order ensures the fluid operation of a company through _____ procedure.
Managerial
Authoritative
Cyclical
Optional

39. Managers should be fair and ___ when dealing with employees.
Partial
Social
Impartial
Jovial

40. Scalar Chain principle suggests that there should be a ____ line of authority from top to
bottom linking all managers at all levels.
Straight
Clear
Partial
Vertical

41.____ order ensures safety and efficiency in the workplace.

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Social
Market
Material
Management

42. ____ refers to the need of managers to ensure and develop morale in the workplace.
Motivation
Wants
Team Spirit
Initiative

43.____ should be acceptable and under the rules of the company.

Management
Administration
Order
All of the above

44.____, mutual confidence, sense of goodwill should prevail among both, managers as well as
workers.
Understanding
Responsibility
Productivity
Cooperation

45. Which school sees management as a process of planning, organizing, directing and
controlling?
Functional
Behavioral
Quantitative
Systems
46. Management is essential for the organisations which are
(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above
47. People in the organisations carry out diverse tasks with the aim to achieve

a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above

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48. Efficiency is concerned with
(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
(d) None of the above
49. Effectiveness relates to
(a) Doing the right task
(b) Completing activities
(c) Achieving goals
(d) All of the above
50. Management is said to be poor if it is
(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above
51. Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.
52. This level of management serves as a link between top level managers and first line
managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
(d) None of the above
53. It is a force that binds all the functions Of management.

(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy
54. By profession, FW Taylor was a
(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer
55. Which of the following statements best defines the techniques of management?
(a) It is a set of guidelines to take decisions and actions.
(b) It is a procedure which involves a series of steps to be taken.
(c) They are general rules for behaviour of individuals.
(d) None of the above.

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56. ‘Rule of thumb’ refers to
(a) Use of personal judgement in handling management issues
(b) Adopting a hit-and-trial approach to resolve management problems
(c) Both of the above
(d) None of the above
57. According to Taylor, “even a small production activity like loading figures of iron into boxes
can be scientifically planned and managed. This can result in tremendous savings of human
energy as well as wastage of time and materials.” Identify the related principle of scientific
management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above
58. According to this principle of scientific management, “Scientific management has for its
foundation the firm conviction that true interest of the management and workers are one and the
same; the prosperity for the employer cannot exist for a long time unless it is accompanied by
prosperity for the employees and vice versa.”
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above
59. According to Henri Fayol, if this principle of general management is violated, “authority is
undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the
principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity
60. Through this principle of management, Henri Fayol guides the managers to exhibit
exemplary behaviour and advises that they should not fall into temptation of misusing their
powers for personal benefit at the cost of general interest of the organisation. Which principle of
management is being described in the above statement?
(a) Remuneration of employees
(b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest
(d) Equity

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 Principles of management- Unit-II Planning

Planning
1. Which of the following is a feature of planning:-
(a) Focuses on achieving goals
(b) Pervasive
(c) Mental exercise
(d) All of the above
2. By comparing ______ with standards manager can know whether the goals are
achieved or not:-
(a) Risk
(b) Ideas
(c) Actual performance
(d) Costs
3. Planning provides direction is a
(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method
4. _______ guides for decision making :-
(a) Rule
(b) Policy
(c) Procedure
(d) Method
5. ______ type of plan is not likely to be repeated in future:-
(a) Standing plan
(b) Programme
(c) Single use plan
(d) Method
6. Advertising of a product is a part of _________
(a) Strategy
(b) Rule
(c) Budget
(d) Method
7. The sub ordinates are given complete freedom in taking decisions is a part of
(a) Rule
(b) Stratergy
(c) Policy
(d) Procedure
8. _______ are detailed statements about a project which outlines the objectives,
rules, etc.
(a) Budget

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 Principles of management- Unit-II Planning

(b) Programme
(c) Single use plan
(d) Policy
9. ______ forecasts the sales of different products in each area for particular
month:-
(a) Sales budget
(b) Sales accounts
(c) Sales cost
(d) None of the above
10. Name the function of management which involves setting objectives and developing
appropriate courses of action to achieve these objectives.
(a) Directing
(b) Organising
(c) Planning
(d) Staffing
11. Which of the following is not a benefit of planning?
(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.
12. Which of the following is a benefit of planning?
(a) Helps in avoiding confusion and misunderstanding.
(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated.
(d) All of the above.
13. Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the
organisation.
14. What is known as the primary function of management?
(a) Controlling
(b) Organising
(c) Planning
(d) Staffing
15. Which of the following is not a feature of planning?
(a) Planning is futuristic.
(b) Planning is pervasive.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.
16. All other managerial functions are performed within the framework of the plans
drawn. Identify the related feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management.
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 Principles of management- Unit-II Planning

17. Planning requires logical and systematic thinking rather than guess work or wishful
thinking. Identify the related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.
18. Planning cannot foresee everything, and thus, there may be obstacles to effective
planning. Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.
19. It is not always true that just because a plan has worked before it will work again.
Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment.
(d) Planning does not guarantee success.
20. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting
objectives, Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative
courses, Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses
21. They represent the end point of planning.
(a) Rules
(b) Methods
(c) Objectives
(d) Policies
22. A strategy is derived from
(a) Policy
(b) Objective
(c) Method
(d) Rule
23. A strategy is a comprehensive plan which will not include this dimension
(a) Determining long term objectives
(b) Adopting a particular course of action
(c) The ends which the management seeks to achieve by its operations
(d) Allocating resources necessary to achieve the objective
24. They provide a basis for interpreting strategy, which is usually stated in general terms.
(a) Policies
(b) Procedures
(c) Objectives
(d) Programmes
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 Principles of management- Unit-II Planning

25. They detail the exact manner in which any work is to be performed.
(a) Rules
(b) Methods
(c) Procedures
(d) Programmes
26. It helps to save time, money and effort, and increases efficiency.
(a) Procedure
(b) Programme
(c) Rule
(d) Method
27. It is a plan which quantifies future facts and figures.
(a) Procedure
(b) Programme
(c) Rule
(d) Budget
28. Which of the following is not a standing plan?
(a) Policy
(b) Procedure
(c) Programme
(d) Rule
29. Which of the following is not a single use plan?
(a) Budget
(b) Programme
(c) Method
(d) All of the above
30. Micromax was India’s largest seller of mobile handsets. It launched low-cost Chinese
manufacturing with some smart packaging and features like long-lasting batteries and
dual-sim functionality to garner 20% market share in India’s value-conscious mobile
handset market. Identify the two types of plans being described in the above lines.
(a) Strategy and objective
(b) Rule and Programme
(c) Programme and objective
(d) Method and objective
31. According to a survey, these days the young children have more power in purchasing
decisions than ever before. The parents seek their kids’ opinions about all kinds of
once-adult decisions, including where to go for dinner, what kind of car to buy, even
what to wear,”. Therefore, the retailers are adapting to this by enhancing their kids’
sections. If the children want to shop in the store for their clothes, then there’s a
greater chance the parent will also see something they want to buy as well. Identify
the type of plan being described in the above lines.
(a) Programme
b) Method
(c) Strategy
(d) Rule
32. According to a survey of 250 consumer packaged goods (CPG) companies by a
reputed
firm, 75% of brand owners say they’re going to spend significantly more on
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 Principles of management- Unit-II Planning

packaging as it is critical to their brand’s success.

Identify the type of plan being described in the above lines.
(a) Rule
(b) Programme
(c) Strategy
(d) Method
33. According to the World Health Organization, 39% of adults are overweight.
Consequently in the U.K., a sugar tax was introduced in 2018 on beverages containing
more than 5% sugar to curb sugar intake. Identify the type of plan being described in
the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
34. According to the Economic Survey, insights from behavioural economics can be
strategically utilised to create an aspirational agenda for social change – from BBBP
(Beti Bachao Beti Padhao) to BADLAVL (Beti Aapki Dhan Lakshmi Aur Vijay
Lakshmi); from Swachh Bharat to Sundar Bharat; from ‘Give It Up’ for the LPG
subsidy to ‘Think about the Subsidy’ and from tax evasion to tax compliance. Identify
the type of plan being described in the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
35. Shubham wants to increase the sale of his business by 15% in the next quarter.
Identify the type of plan being described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme
36. Packaging is said to have the unique capacity to make products stand out in a crowded
marketplace. Therefore, convenience of the consumer is at the top of mind of the
marketers as they are focussing on developing packaging that’s easier to open, to
protect against breakage, maintain freshness during delivery and keep a consistent
look and feel across multiple channels. Identify the type of plan being described in the
above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
37. Based on National Common Mobility Card standards, India’s first indigenously
developed inter-operable transport card was launched in March 2019 to make travel
across various modes convenient. Identify the type of plan being described in the
above lines.
(a) Strategy
(b) Programme
(c) Method
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 Principles of management- Unit-II Planning

(d) Rule
38. India is world’s third largest domestic aviation market. The government plans to make
India a hub for financing aircraft purchases and leasing of planes. In order to promote
this, the government has announced tax incentives, like tax deductions, for companies
setting up business in IFSC for fifteen years. Identify the type of plan being described
in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Rule
39. The government has been doubling down on its efforts to switch to 100% electric
vehicles by 2030. Many companies such as Tata Motors, Kinetic Motors, Maruti
Suzuki and Hyundai Motors are all readying their EV models for a 2020 launch in
order to support the plan. Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective
40. In order to encourage technologies like artificial intelligence (AI), the internet of
things (iot) and virtual reality (VR), the government is planning to launch a scheme to
invite foreign companies through a transparent bidding process, to set up plants for
manufacturing semi-conductors, solar photo voltaic cells, lithium cell batteries, solar
electric charging vehicles, computer servers, and laptops in India.
Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective
41. Ketan Enterprises adopts different ways to provide training to employees, like Job .
Rotation, Coaching, Vestibule Training, Conference, Lecture Method and Role
Playing. Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure
42. Swatch Ltd. plans to earn a 20% return on its investment in a new project. Identify the
type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective
43. . Deepak is striving to earn a profit of 30% in the current financial year. Identify the
type of plan being described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme
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 Principles of management- Unit-II Planning

44. Name the type of budget which is prepared to determine the net cash position.
(a) Purchase budget
(b) Sales budget
(c) Cash budget
(d) Production budget
45. In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy
follows a two-step sequence while expanding to a small town. First, it provides more
laborious training to restaurants and delivery partners compared to their counterparts
in the city. Second, it focuses on building scale in operations and increase the
restaurant’s reach to a larger base of consumers, including optimizing kitchens,
resource planning among others. Identify the type of plan being described in the
above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure

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 UNIT 3
1. An identified group of people contributing their efforts towards the attainment of goals is
called an
a) organization.
b) business.
c) management.
d) department.
Ans : a
2. Name the process which co-ordinates human efforts, assembles resources and
integrates both into a unified whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing
Ans: c
3. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above
Ans: d
4. It is defined as the framework within which managerial and operating tasks are
performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above
Ans: b
5. It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above
Ans: c
6. As the span of management increases in an organisation, the number of levels of
management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above
Ans: b

7. Uranus Limited is a company dealing in metal products. The work is mainly divided into
functions including production, purchase, marketing, accounts and personnel. Identify

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 the type of organisational structure followed by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above
Ans: a
8. Identify the type of organisational structure which facilitates occupational specialisation,
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure
Ans: a
9. Identify the type of organisational structure which makes training of employees easier,
as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure
Ans: c
10. This type of organisational structure is most suitable when the size of the organisation is
large, has diversified activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Ans: b
11. Under this type of organisational structure, manpower is grouped on the basis of
different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Ans: a
12. Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.
Ans: c
13. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department.
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation.
Ans : c

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 14. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.
Ans : b
15. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties,
Establishing reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation,
Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships,
Departmentalisation, Assignment of duties
Ans : b
16. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.
Ans : b
17. Which of the following is not a merit of informal organisation?
(a) It leads to faster spread of information and speedy feedback.
(b) It helps to fulfill the social needs of the members.
(c) It .does not fulfill inadequacies in the formal organisation.
(d) All of the above
Ans : c
18. Which of the following is not an element of delegation?
(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation
Ans : d
19. It arises from the established scalar chain which links the various job positions and
levels of an organisation.
(a) Authority
(b) Responsibility
(c) All of the above
(d) None of the above
Ans : a

20. Rules, duties and responsibilities or workers are given in writing in______________.
a) formal organization.
b) informal organization.

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 c) business or organisation.
d) strategic organization.
Ans : a
21. Which arises from mans quest for social satisfaction?
a) formal organization.
b) informal organization.
c) business or organisation.
d) strategic organization.
Ans : b
22. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : a
23. The responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Ans : c
24. Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above
Ans : c
25. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : c
26. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Ans : c
27. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : b

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 28. Authority arises from
(a) Responsibility
(b)Formal position
(c) Accountability
(d) All of the above
Ans : a
29. Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above
Ans : a
30. Accountability is derived from
(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above
Ans : c
31. When decision-making authority is retained organisation is said to be by higher
management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above
Ans:b
32. Selection is ______ in its application as much as it seeks to eliminate as many
unqualified applications as possible in order to identify the right candidates.
a) Both negative and positive
b) Positive
c) Negative
d) None of the above
Ans : c
33. Rearrange the following steps involved in the selection process.

i. External environment
ii. Internal environment
iii. Preliminary interview
iv. Selection test
v. Employment interview
vi. Reference and background analysis
vii. Selection decision
viii. Physical examination
ix. Job offer
x. Employment contract
xi. Evaluation

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 a. xi, x, ix, viii, vii, vi, v, iv, iii, ii, i
b. i, ii, iii, iv, v, vi, vii, viii, ix, x, xi
c. v, i, xi, ii, iv, ix, iii, vi, viii, x, ix, vii
d. i, iii, iv, v, vii, ix, xi, ii, vi, viii, x
ANSWER: c. v, i, xi, ii, iv, ix, iii, vi, viii, x, ix, vii
34. In __________, the interviewer uses pre-set standardised questions which are put
to all applicants.

a. Unstructured interview
b. Structured interview
c. Behavioural interview
d. Mixed interview
ANSWER: b. Structured interview
35. _______ occurs when an interviewer judges an applicant's entire potential for job
performance on the basis of a single trait, such as how the applicant dresses or
talks.
a. Stress producing
b. Halo - effect
c. Unstructured
d. None of the above
ANSWER: b. Halo - effect
36. Which of the selection steps is the most critical?
a. Physical examination
b. Selection decision
c. Reference and background checks
d. Employment interviews
Ans: b. Selection decision
37. ___________ is a systematic and planned introduction of employees to their jobs,
their co-workers and the organisation.
a. Job evaluation
b. Investiture orientation
c. Orientation
d. Placement
ANSWER: c. Orientation
38. Which of the below options are the topics covered in employee orientation
programme?

a. Training and education benefit

b. To employee counsellor
c. Relationship to other jobs
d. Disciplinary regulations
e. All of the above
ANSWER: e. All of the above
39. ______ refers to the allocation of people to jobs; it includes initial assignment of
new employees, and promotion, transfer, or demotion of present employees.

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 a. Recruitment
b. Placement
c. Selection
d. None of the above
ANSWER: b. Placement
40. How does training and development offer competitive advantage to an
organisation?

a. Removing performance deficiencies

b. Deficiency is caused by a lack of ability
c. Individuals have the aptitude and motivation to learn
d. None of the above
Ans:a. Removing performance deficiencies
41. Which of the following is a benefit of employee training?

a. Improves morale
b. Helps people identify with organisational goals
c. Provides a good climate for learning, growth and co - ordination
d. None of the above
ANSWER: b. Helps people identify with organisational goals
42. ______ is an objective assessment of an individual's performance against well-
defined benchmarks.

a. Performance Appraisal
b. HR Planning
c. Information for goal identification
d. None of the above
ANSWER: a. Performance Appraisal
43. Which of these is the main purpose of employee assessment?

a. Making correct decisions

b. To effect promotions based on competence and performance
c. Establish job expectations
d. None of the above
ANSWER: b. To effect promotions based on competence and performance
44. How performance appraisal can contribute to a firm's competitive advantage?

a. Ensures legal compliances

b. Minimising job dissatisfaction and turnover
c. Improves performance
d. All of the above
ANSWER: d. All of the above
45. Which method is used for evaluating the performance of executives or
supervisory positions?
a) Psychological Appraisals
b. Assessment Centres

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 c. Behaviourally Anchored Rating Scales
d. 360 degree feedback
Ans : b

46. What does the 360 degree feedback assess?

a. Communication Skills
b. Behavioural Aspect
c. Team – building skills
d. Soft skills
Ans : d
47. Which of these options are the activities that constitute the core of
performance management?
a. Performance interview
b. Archiving performance data
c. Use of appraisal data
d. All of the above
Ans: d
48. Which is the biggest challenge faced while conducting performance appraisal?
a. Evaluating performance of self – managed teams
b. Presence of a formal appeal process
c. Appraisals based on traits are to be avoided
d. None of the above
Ans: a
49. When designing an actual appraisal method, the two basic considerations are
a) who should measure and when to measure
b) when to measure and what to measure
c) what to measure and who should measure
d) what to measure and how to measure
Ans: d
50. Which performance appraisal technique lists traits and a range of performance values for each
trait?
a) behaviourally anchored rating scale
b) graphic rating scale
c) forced distribution
d) critical incident Ans: b

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 Principles of management- Unit-IV Directing

Directing
1. Which of the following is not a characteristic of directing?
(a) Directing initiate action
(b) It is a continuous process
(c) Flows from top to bottom
(d) Ensuring order & discipline

2. Which of the following is the elements of directing?

(a) Supervision
(b) Motivation
(c) Leadership
(d) All of the above

3. _______ is the process of guiding the efforts of employees to accomplish the

desired goal.
(a) Supervision
(b) Directing
(c) Controlling
(d) Motivating

4. Which of the following is not a non-financial incentive?

(a) Status
(b) Job enrichment
(c) Bonus
(d) Employee progress

5. Which of the following is not a feature of motivation?

(a) It is an integral feeling
(b) Reduces absenteeism
(c) Complex process
(d) Can be positive or negative

6. ________ is an example of esteem needs:-

(a) Status
(b) Self-fulfillment
(c) Hunger
(d) Pension

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 Principles of management- Unit-IV Directing

7. __________ is the process of influencing the behavior of people making them

strive voluntarily towards achievement of goals
(a) Motivation
(b) Communication
(c) Leadership
(d) Directing

8. Informal communication is also called:-

(a) Wheel communication
(b) Grapevine
(c) Verbal
(d) Visual

9. It is very difficult to detect the source of such communication.

(a) Upward communication
(b) Vertical communication
(c) Lateral communication
(d) Informal communication

10. Which of the following is not a type of semantic barriers?

(a) Badly expressed message
(b) Unclarified assumptions
(c) Technical jargon
(d) Premature evaluation

11. Which of the following is not a type of psychological barriers?

(a) Premature evaluation
(b) Lack of attention
(c) Fear of challenge to authority
(d) Distrust

12. Which of the following is not a type of personal barrier?

(a) Fear of challenge to authority .
(b) Unwillingness to communicate
(c) Loss by transmission and poor retention
(d) Lack of proper incentive

13. It refers to the process of instructing, guiding, counselling, motivating and

leading j people in the organisation to achieve their objectives.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

14. Which of the following is not an element of directing?

(a) Supervision
(b) Communication
(c) Leadership
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 Principles of management- Unit-IV Directing

(d) Inspection

15. While other functions prepare a setting for action, name the function that
initiates action in the organisation.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

16. Identify the level at which the directing function takes place in an organisation?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) All of the above

17. It is defined as the process of guiding the efforts of employees and other
resources to accomplish the desired objectives.
(a) Supervision
(b) Communication
(c) Leadership
(d) Inspection

18. It means the process of making subordinates to act in a desired manner to

achieve certain organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

19. Which of the following is not an assumption of Maslow’s theory?

(a) People’s behaviour is not based on their needs.
(b) Satisfaction of such needs influences their behaviour.
(c) A satisfied need can no longer motivate a person; only next higher level need can
motivate him.
(d) A person moves to the next higher level of the hierarchy only when the lower need
is satisfied.

20. Effective motivation in the organisation does not contribute towards

(a) Developing performance levels of employees
(b) Helping to reduce employee turnover
(c) Resistance to changes in the organisation
(d) All of the above

21. These needs are most basic in the hierarchy of motivation theory and correspond
to primary needs.
(a) Self Actualisation Needs
(b) Basic Physiological Needs
(c) Security Needs
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 Principles of management- Unit-IV Directing

(d) Belonging Needs

22. Mohit recently got a raise in his salary due to annual increment. Which of his
human needs is being satisfied through this?
(a) Security Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

23. Identify the style of leadership in which the superior uses file forces from within
the groups in order to establish control.
(a) Autocratic leadership
(b) Democratic leadership
(c) Laissez-faire leadership
(d) Authoritarian leadership

24. It refers to all measures which are used to motivate people to improve
performance,
(a) Leadership
(b) Motivation
(c) Incentives
(d) Communication

25. Which of the following is not an example of financial incentive?

(a) Perquisites
(b) Job Enrichment
(c) Profit Sharing
(d) Co-partnership

26. Which of the following is not an example of non-financial incentive?

(a) Career Advancement Opportunity
(b) Perquisites
(c) Status
(d) Organisational Climate

27. Ashutosh works as a manager in Kuber Ltd. Besides the salary, the company offers
him benefits such as free housing, medical aid and education to the children, etc.
Identify the type of incentive being offered to him.
(a) Perquisites
(b) Job Enrichment
(c) Co-partnership
(d) Pay and allowances

28. On joining Kartar Ltd. as Chief Financial Officer, Madhumita was allotted 500
shares of the company. Identify the type of incentive being described.
(a) Perquisites
(b) Retirement Benefits
(c) Co-partnership
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 Principles of management- Unit-IV Directing

(d) Pay and allowances

29. Boom Limited gives due weightage to the perquisites and prestige of job so that the
designation helps to satisfy the psychological, social and esteem needs of an
individual. Identify the type of incentive being described in the above lines.
(a) Employee empowerment
(b) Job security
(c) Status
(d) Perquisites

30. On the occasion of the Founders Day of the firm, Veena was felicitated with the
certificate of best performer as a Business Development Manager. Identify the
type of incentive being described in the above lines.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Job security

31. Which of the following is not a feature of leadership?

(a) It shows ability of an individual to influence others.
(b) It leads to achievement of organisational goals.
(c) Leadership is one-time process.
(d) It leads to desired change in the organisation.

32. It is the process of influencing the behaviour of people by making them strive
voluntarily towards achievement of organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

33. As the general manager of an e-commerce company, Gagan maintains good

interpersonal relations with followers and also motivates them to contribute for y ‘
achieving organisational goals. Identify the concept being described in the above
lines.
(a) Supervision
(b) Communication
(c) Determination
(d) Leadership

34. It refers to the process of exchange of ideas, views, facts, feelings etc., between or
among people to create common understanding.
(a) Supervision
(b) Communication
(c) Motivation
(d) Leadership

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 Principles of management- Unit-IV Directing

35. Identify the correct sequence of steps involved in the communication process.
(a) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(b) Sender, Decoding, Receiver, Feedback, Message, Encoding, Media
(c) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(d) Sender, Media, Decoding, Receiver, Message, Encoding, Feedback

36. Formal communication may take place between

(a) Superior and subordinate
(b) Subordinate and superior
(c) Two managers at the same level
(d) All of the above

37. On the successful completion of two years in a company, Harsh received a letter
confirming his job as permanent employee. Identify the need of Harsh being fulfilled
as per Maslow’s Need Heirarchy Theory.
(a) Esteem Needs
(b) Security Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

38. Upward communications refer to flow of communication from

(a) Subordinate to superior
(b) One departmental manager to another
(c) Superior to subordinate
(d) All of the above

39. Downward communications refer to flow of communication from

(a) One departmental manager to another
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

40. Lateral communication takes place from

(a) First to second division of the same organisattion
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

41. Which of the following ways help in improving the communication effectiveness?
(a) Ensuring proper feedback
(b) Being a good listener
(c) Ensuring follow up patience
(d) All of the above

42. Which of the following is not a type of communication barriers?

(a) Semantic barriers
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 Principles of management- Unit-IV Directing

(b) Psychological barriers

(c) Rational barriers
(d) Organisational barriers

43. Yamini received a special gold coin from her school management for exceptionally
good board result of her students in her subject. Identify the need of Yamini being
fulfilled as per Maslow’s Need Heirarchy Theory.
(a) Esteem Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

44. As the incharge of a small scale factory manufacturing glassware, Raghu guides his
subordinates and clarifies their doubts in performing a task, so that they are able to
achieve the work targets given to them. Identify the function of management being
described in the above lines.
(a) Planning
(b) Staffing
(c) Directing
(d) Organising

45. Yajur, as a Project Manager, is able to assess the true potential of his subordinates and
constantly motivates them to realise their full potential. Identify the element of
directing being described in the above lines.
(a) Leadership
(b) Communication
(c) Supervision
(d) Motivation

46. Suman works as a Project Co-ordinator in an export house. Whenever the workload is
high, she is able to convince her team by explaining to them the purpose, providing
training and motivating them with additional rewards so as to be able to win their
wholehearted co-operation. Identify the element of directing being described in the
above lines.
(a) Supervision
(b) Motivation
(c) Leadership
(d) Communication

47. Radhika runs a confectionary in a local market. In order to make the workers in the
.Confectionary work optimally, she on one hand provides them overtime wages and
on the other hand imposes penalty, if required, by deducting the wages. Identify the
feature of motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) Motivation can be either positive or negative.

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 Principles of management- Unit-IV Directing

48. As an employee of an automobile company, Suraj has always been very lazy and
evasive. In order to change his behaviour, his boss decided to give him an incentive.
Identify the feature of motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) None of the above

49. Identify the correct sequence of steps involved in the motivation process.
(a) Tension, drives, search behaviour, unsatisfied need, satisfied behaviour, reduction
of tension
(b) Unsatisfied need, tension, drives, search behaviour, satisfied behaviour, reduction
of tension
(c) Drives, search behaviour, unsatisfied need, tension, satisfied behaviour, reduction
of tension
(d) Search behaviour, reduction of tension, unsatisfied need, tension, drives, satisfied
behaviour

50. Dheeraj Madan works as a Human Resource Manager in Busybee Limited. He gives
due care in designing jobs, so that it offers a meaningful work experience by
assuming a diversity of work content requiring higher level of knowledge. Identify the
type of incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job enrichment

51. Esha was facing the problem of high labour turnover in her firm. On the advice of her
friend, she introduced special benefits for the employees, which helped her to retain
talented people in the organisation. Identify the related point of importance of
motivation.
(a) Motivation helps to improve performance levels of employees.
(b) Motivation helps to reduce employee turnover.
(c) Motivation helps to reduce absenteeism in the organisation.
(d) Motivation helps to mould the attitudes of employees.

52. Om Limited adopts a systematic performance appraisal system which provides

opportunity to employees to improve their skills and be promoted to the higher level
jobs. Identify the type of incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job security

53. Jay and Lai work in a garment factory. Jay always earns a higher wage than Lai, as he
produces more units of output. Identify the type of financial incentive being adopted
by the company.

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 Principles of management- Unit-IV Directing

(a) Perquisites
(b) Productivity linked wage incentives
(c) Co-partnership
(d) Pay and allowances

54. Ishan works as an Accounts Officer in Fabrications Limited. He also feels very proud
of the fact that he is the incharge of recreation committee in his office. Identify the
type of incentive being offered to Ishan.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Employee participation

55. In order to motivate the workers in the factory to work overtime, Manoj decided to
provide additional wages to the workers. On knowing this, a worker in his factory,
Madhur, was very happy, whereas Raju was disappointed as he preferred to go back
home on time rather than working for overtime wages. Identify the feature of
motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) Motivation can be either positive or negative.

Q.No Answers

1 D

2 D

3 A

4 C

5 B

6 A

7 C

8 B

9 D

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 Principles of management- Unit-IV Directing

10 D

11 C

12 C

13 D

14 D

15 D

16 D

17 A

18 C

19 A

20 C

21 B

22 D

23 B

24 C

25 B

26 B

27 A

28 C

29 C

30 B

31 C

32 C

33 D

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 Principles of management- Unit-IV Directing

34 B

35 C

36 D

37 B

38 A

39 B

40 A

41 D

42 C

43 A

44 C

45 A

46 C

47 D

48 B

49 B

50 C

51 B

52 C

53 B

54 D

55 C

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 Principles of management- Unit-V Controlling

Controlling

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 Principles of management- Unit-V Controlling

16. Controlling function finds out how far __________ deviates from standards.
(a) Actual performance
(b) Improvement
(c) Corrective actions
(d) Cost
17. Which of the following is not a limitation of controlling?
(a) Little control on external factors
(b) Costly affair
(c) Ensuring order & discipline
(d) Difficulty in setting quantitative standards
18. “Planning is theoretical whereas controlling is practical”
(a) True
(b) False
(c) Cannot say
19. Which of the following is not a process of controlling?
(a) Analyzing deviations
(b) Integrates employees efforts
(c) Taking corrective measures
(d) Setting performance standards
20. Which of the following is a traditional technique of managerial control?
(a) Personal observation
(b) Breakeven analysis
(c) Budgetary control
(d) All of the above
21. Write the full form of PERT :-
(a) Performance evaluation report technique
(b) Personnel enquiry retrieving technique
(c) Programme evaluation and review technique
22. Remedial actions taken to prevent deviation in future is called
(a) Measurement of actual performance
(b) Taking corrective actions
(c) Analyzing deviations
(d) Setting performance standards
23. Assembling of facilities and personnel for collecting, processing, information
that is required by managers is called
(a) PERT
(b) CPM
(c) Ratio analysis
(d) Management information Technique
24. Which of the following is not an importance of controlling function?
(a) It ensures order and discipline.
(b) It restricts co-ordination in action.
(c) It helps in judging accuracy of standards.
(d) It improves employee motivation.

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 Principles of management- Unit-V Controlling

25. Which of the following statements does not highlight the relationship between
planning and controlling?
(a) Planning and controlling are separable twins of management.
(b) Planning without controlling is meaningless, controlling without planning is
blind.
(c) Planning is prescriptive, controlling is evaluative.
(d) Planning and controlling are interrelated and interdependent.
26. Om Prakash has set up a small business unit for the manufacturing of detergent. In
order to market the detergent in the local residential areas, he has appointed a
team of ten salesmen. Each salesman is expected to sell at least 200 units of the
detergent within a week’s time. Identify the point of importance of controlling
being highlighted in the above case.
(a) Controlling helps in judging accuracy of standards.
(b) It ensures efficient use of resources.
(c) It helps in improving employee motivation.
(d) It facilitates co-ordination in action.
27. It is the process of ensuring that events confirm to plans.
(a) Planning
(b) Controlling
(c) Organising
(d) Directing
28. The controlling function is performed by
(a) Top level management
(b) Lower level management
(c) Middle level management
(d) All of the above
29. Controlling function brings the management cycle back to the
(a) Organising function
(b) Directing function
(c) Planning function
(d) None of the above
30. Deviations are said to be positive in nature when
(a) Planned performance is more than the actual performance
(b) Actual performance is more than the planned performance
(c) Both planned and actual performances are same
(d) None of the above
31. Which of the following statements is true with respect to controlling function?
(a) It is a forward looking function.
(b) Is a backward looking function.
(c) Both (a) and (b)
(d) None of the above
32. Identify the correct sequence of the steps involved in the controlling process.
(a) Measurement of actual performance, Taking corrective action, Setting
performance standards, Comparison of actual performance with standards,
Analysing deviations
(b) Comparison of actual performance with standards, Setting performance
standards. Measurement of actual performance, Analysing deviations, Taking
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 Principles of management- Unit-V Controlling

corrective action
(c) Setting performance standards, Measurement of actual performance,
Comparison of actual performance with standards, Analysing deviations, Taking
corrective action
(d) Taking corrective action, Measurement of actual performance, Comparison of
actual performance with standards, Analysing deviations, Setting performance
standards
33. Which of the following is a technique used for measuring actual performance?
(a) Random sampling
(b) Personal observation
(c) Performance reports
(d) All of the above
34. The comparison of actual performance with the planned performance becomes
easier if the standards are set in
(a) Qualitative terms
(b) Quantitative terms
(c) Either of the above
(d) None of the above
35. This concept of Control Management is based on the belief that if you try to
control everything, you may end up controlling nothing.
(a) Critical point control
(b) Key result areas
(c) Management by exception
(d) Deviations
36. When the deviations between the actual performance and the planned performance
are within the limits
(a) A limited corrective action is required
(b) No corrective action is required
(c) A major corrective action is required
(d) None of the above
37. In an artificial plants manufacturing unit, the standard output set for a worker is 50
units per day. Dinesh produces 48 units in one day. In the given case, the value of
deviation is
(a) -2
(b) + 2
(c) 98
(d) None of the above
38. The need for the controlling function is felt in
(a) Business organisations
(b) Political organisations
(c) Social organisations
(d) All of the above
39. Controlling is known as a backward-looking function because
(a) It relates to future course of action.
(b) It is like a post-mortem of the past activities
(c) To find out deviation, it aims at improving future performance.
(d) All of the above
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 Principles of management- Unit-V Controlling

40. Reducing the workers, absenteeism in a factory by 20% is an example of

(a) Quantitative standard
(b) Qualitative standard
(c) Deviation
(d) None of the above
41. Yash runs a logistic company. The Tour Incharges of each trip in the company are
expected to submit a report to the Event Manager on the completion of every trip.
Identify the step in the controlling process being described in the above lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations
42. In a marketing firm, the Financial Manager pays more attention towards an
increase of 3% in the marketing cost as compared to a 15% increase in the courier
expenses. Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above

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MG8591 PRINCIPLES OF MANAGEMENT Dept. of CSE Regulations 2017

MG8591 PRINCIPLES OF MANAGEMENT

Unit I – Introduction to Management and Organizations

1 Henry Fayol, F.W.Taylor belongs to which of the following school of management?

A. Neoclassical School B. Modern School
C. Classical School D. Early Perspective
Ans: C
2. …………………….. involves a series of steps to be taken to accomplish desired goals.
A. Values B. Techniques
C. Programmes D. Actions
Ans: A
3 While practicing principles of management ………………………….. cannot be
neglected as business have to fulfill social and ethical responsibility towards society.
A. Values B. Techniques
C. Programmes D. Actions
Ans: D
4. Derivation of Principles of Management is a matter of (i)………………… and their
application is a matter of (ii)…………………….
A. (i) art (ii) science B. (i) science (ii) art
C. (i) art (ii) discipline D. (i) discipline (ii) science
Ans: A
5 “ Principles help managers to take decisions while performing functions of management”
A. True, Principles are guidelines to B. False, Functions of management are not
take actions. related with Principles of Management
C. Partly True, Principles denotes cause D. False, Functions of management are just
and effect relationship which may help actions.
functions
Ans: A
6 Principles of division of work is applicable to a government office where there is a
diary/dispatch clerk whose job is to receive and send mail, a data entry operator whose
task is to input data on the computer. Division of work is also applicable to limited
company where there are separate departments like productions, finance, research and
development etc.
Which quality of Principles of management is highlighted above?
A. General Guidelines B. Universal applicability
C. Flexible D. Contigent
Ans: B
7 The degree of concentration of authority or its dispersal depend upon the situation and
circumstances of each enterprise. Principles give enough discretion to manger to adjust
according to situation.
Which Quality of Principles of management is highlighted above?
A. General Guidelines B. Universal applicability
C. Flexible D. Contingent
Ans: B
8 Principles of management do not provide readymade solution to any problem but in
dealing with a situation of conflict between two departments, a manager may emphasize
the primacy of the organisational goal.
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MG8591 PRINCIPLES OF MANAGEMENT Dept. of CSE Regulations 2017

Which Quality of Principles of management is highlighted above?

A. General Guidelines B. Universal applicability
C. Flexible D. D. Contingent
Ans: A
9 Employees deserve fair and just renumeration but what is just, and fair is determined by
multiple factors. They include contribution of the employee, Paying capacity of the
employer and prevailing wage rate for the occupation under consideration.
Which quality of Principles of Management is highlighted above?
A. General Guidelines B. Universal applicability
C. Flexible D. Contingent
Ans: D
10 Management Principles increase managerial efficiency as manager leave routine decision
making to his subordinates and deal with expectional situations which require his
expertise by following the Principles of delegation.
Which Does the above case signify about management?
A. Meeting changing environment B. Providing mangers with useful insights into
requirements reality
C. Fulfilling social responsibility D. Management training, education and
research
Ans: B
11 Which of following statement justifies understanding of Principles of Management helps
in taking scientific decisions
A. Adherence to these principles and B. Principles emphasis logic rather than blind
add to knowledge and faith.
understanding of managerial
situations.
C. Principles of management are at D. Principles are guidelines that can be
the core of the management theory modified as per the changing environment
Ans: B
12 In the words of …………………..,”…………………. means knowing exactly what you
want men to do and seeing that they do it in the best and cheapest way”.
Find the above blank with right option
A. Henry Fayol, Management B. W. Taylor, Scientific Management
C. Haraold Koontz, Administrative D. W.Taylor Management
Management
Ans:B
13 Even a small production activity like loading pigs of iron into boxcars can be
scientifically planned and managed. This can result in tremendous saving of human
energy as well as wastage of time and materials.
Which of the following Principles if management emphasize on above situation?
A. Harmony does not discord B. Science not Rule of Thumb

C. Initiative D. Development of each person to his or her greatest

efficiency and prosperity
Ans: B
14 As per Cooperation, Not individualism principle of management, Competition should be
replaced with………………..
A. Coordination B. Cooperation
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C. Management D. Harmony
Ans: B
15 Which of the following statements justifies the Principle Cooperation not Individualism.

A. Management and workers should B. There should be equal division of work

transform their thinking towards each between Management and workers
other Coordination
C. Industrial efficiency depends to a D. There is only one best method to
large extent on personnel maximize efficiency
competencies
Ans: B
16 Which of the following scientific management is violation of Unity of Command
A. Differential piece wage system B. Fatigue study
C. Functional Foremanship D. Simplification of work
Ans: C
17 Which of the following technique of scientific management has the objective to determine
the number of workers to be employed: frame suitable incentive schemes and determine
labour cost.
A. Differential piece wage system B. Time study
C. Functional foremanship D. Simplification of work
Ans: B
18 According to Taylor there can be many hindrances in good performance which may lead
to fatigue. Identify the most suitable cause of Fatigue among the following options.
A. Long working hours B. Doing unsuitable work
C. Non cordial relation with boss D. All the above
Ans: D
19 . …………………… among the following was the first to identify four functions of
management.
A. Henry Fayol B. W. Taylor
C. Max Weber D. Harold Koontz
Ans: A
20 Fayol’s Principle of Division of work can be applied to following kind of work.
A. Technical B. Managerial
C. Both D. None of these
Ans : C
21 “Authority is undermined, displine in jeopardy, order disturbed and stability threatened”
Above statement is the violation of one of the principles of management.
A. Unity of direction B. Discipline
C. Unity of command D. Stability of Personnel
Ans: C
22 Which of the following is the most suitable example for principle of Centralization and
Decentralization’
A. Manager should not fall in the B. Panchayats in India have been given
temptation of misusing his/her powers more powers to decide spend fund for
for personal gains. welfare of people of their village.
C. Company has suggestion box system D. Personnel should be given reasonable
to encourage suggestions from time to show results

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employees
Ans:B
23 The continuation of Fayol and Taylor are ………………………. to each other
A. Competitive B. Cooperative
C. Complimentary D. Coordinated
Ans:C
24 General theory of Administration is the expression of:
A. W.Taylor B. Henry Fayol
C. Max Weber D. Brech
Ans: B
25 How are principles of management are formed?
A. By rule of Thumb B. By observation and experimentation
C. By experiences of customers D. By experiments in Science laboratory
Ans: B
26 Direction is a ________ function performed by all the managers at all levels of the
organization.
A. Managerial B. Organizational
C. Both (A) and (B) D. None of the above
Ans: A
27 Retailing category(ies) based on ownership arrangement would be
A. Super Markets B. Consumer Durables Stores
C. Departmental Stores D. All of the above
Ans: D
28 Which type of strategies do professional managers help organizations in chalking out?
A. Multi-disciplinary B. Corporate
C. Managerial D. All of the above.
Ans: B
29 Which of the following is not a principle by Henry Fayol?
A. Division of work B. Harmony not discord
C. Discipline D. Unity of Command
Ans: B
30 Management should find the one best way to perform a task. Which technique of
management states that:
A. Time study B. Motion study
C. Fatigue study D. Method study
Ans: D

Unit II – Planning

1 Identify the best definition of planning.

A. An integrated process in which plans are B. Devising ways of achieving the
formulated, carried out and controlled objectives of an organization.
C. Setting an organization’s objectives and D. The core activity of planners and
the means of reaching them. planning departments.
Ans : C
2 The top management works on
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A. Strategic Plan B. Corporate Plan

C. Budgeting D. Both A and B
Ans : A
3 What is the planning horizon?
A. The time ahead for which there is no B. The time between making a plan and
information. putting it into effect.
C. The maximum time for which managers D. The time period within which
can make plans. uncertainty is very low.
Ans : B
4 A strategic plan is also called ___________
A. Long term plan B. Short term plan
C. Both A and B D. None of above
Ans : A
5 The first step in the planning process is to
A. Set an objective B. Evaluate alternatives
C. Determine strength and weaknesses D. None of above
Ans : A
6 The decision making step, which consists of organization goals, predicting alternatives
and communicating goals is called __________
A. Organization B. Alternation
C. Planning D. Valuing
Ans : C
7 MBO offers the basis for assessing the ---
A. Operations B. performance
C. equality D. None these
Ans : B
8 MBO was developed by ----
A. Peter.F.Drucker B. Chester Bernard
C. Fayol D. None
Ans : A
9 The process of MBO starts with -----
A. setting up of obligation B. Fetron plan
C. Review D. All
Ans : A
10 Organisational decisions are made by ------
A. Directors B. Managers
C. Managing directors D. None of these
Ans : B
11 Policies are flexible where as procedure are --------
A. specific B. detailed
C. Rigid D. All
Ans : C
12 -----------is described as interpretative planning
A. Procedure B. Strategy
C. Policies D. None of the above.
Ans : B
13 --------------indicates the exact manner in which the integrated serious of activities will
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have to be performed.
A. Procedures B. Planning
C. Organizing D. Staffing
Ans : A
14 Planning is --------------process
A. Directing B. Thinking
C. Forecasting D. None of these
Ans : B
15 MBO offers the basis for assessing the -----------------
A. Techniques B. Performance
C. Authority D. Subject
Ans : B
16 Planning is...........
A. Pervasive B. Futuristic
C. Continues D. All of these
Ans : D
17 Planning involves................
A. Future course of action B. Review of past performance
C. Analysis of policies D. All of these
Ans : A
18 Planning provides.............
A. Information to outsiders B. Basis for recruitment and selections
C. Purpose and direction of all persons D. None of these
Ans : C
19 Operational planning is undertaken at.................
A. Top level B. lower level
C. middle level D. All of these
Ans : B
20 Planning process began with
A. Setting objectives B. Identity alternatives
C. Developing planning premise D. Selecting alternatives
Ans : A
21 It is a function of management which refers to the process of integrating the activities of
different units of organization to achieve the organization goals. This is called
A. Actuating B. Controlling
C. Co-ordination D. Planning
Ans : C
22 Planning is
A. Forward looking B. Backward looking
C. Both forward and backward looking D. None of the above
Ans : C
23 Management by objective is
A. goal oriented B. work oriented
C. budget oriented D. none of the above
Ans : A
24 What is the full form of MBO?
A. Management By Opportunity B. Method By opportunity
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C. Management By Objectives D. Method By Objective

Ans : C
25 Which among the following involves in planning process?
A. Selection of objective B. Determine the way to achieve
objective
C. Both A and B D. None of the above
Ans : C
26 Which among the following is a single use plan?
A. Objectives B. Policies
C. Rules D. Budget
Ans : D
27 __________ is the decision making body of an organization?
A. Decentralization B. Administration
C. Functional organization D. Leadership
Ans : B
28 The difference between annual and long-range plans versus a strategic plan is that the
annual and long-range plans deal with the company’s current business and how to keep
them going, while the strategic plan deals with:
A. Functional activities B. Global activities
C. Tactical decisions. D. Adapting the firm to take advantage
of opportunities in its constantly
changing environment.
Ans: D
29 The three types of plans usually prepared by companies include annual plans, strategic
plans and ___________ plans.
A. Hourly B. Long-range
C. Model D. Psychological
Ans : B
30 Planning encourages management to think systematically about what has happened,
what is happening and ______________
A. When it is happening B. What might happen
C. Should something happen D. Should something stop
Ans : B

Unit III – Organising

1 Which of the following activities is better decentralised in the typical organisation?

A. Operations management B. Information systems design
C. Purchasing capital equipment D. Controlling international cash flows
Ans: A
2. Factors affecting organizational behavior is/are
A. People B. Enviournment
C. Technology D. All the above
Ans: D
3 Which organisational structure facilitates occupational specialisation,
A. Functional structure B. Horizontal structure
C. Network structure D. Divisional structure
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Ans: A
4 As we go higher up in the management hierarchy the scope of authority
A. Increases B. Decreases
C. Remains same D. None of the above
Ans: A
5 Which of the following is not an example of 'structure?
A. Supplies of materials B. Rules and procedures
C. Formal hierarchy D. Information systems
Ans: A
6. An organizational chart describes:
A. The relationship between the different B. The company goals
departments and their personnel
C. The function each person performs. D. Both B and C
Ans: A
7. Choose the correct sequence of steps to be followed in an organizing process.
A. Departmentalisation, Establishing reporting B. Identification and division of work,
relationships, Assignment of duties, Assignment of duties, Departmentalisation,
Identification and division of work Establishing reporting relationships
C. Identification and division of work, D. Identification and division of work,
Establishing reporting relationships, Departmentalisation, Assignment of duties,
Departmentalisation, Assignment of duties Establishing reporting relationships
Ans: D
8. For An employee Authority granted should be
A. Equal to the responsibility entrusted to him B. Less than the responsibility entrusted to
him
C. More than the responsibility entrusted to D. All of the above
him
Ans: A
9. Employee relationships are major element of occupation of
A. Marketing manager B. Account manager
C. Finance manager D. Human resource manager
Ans: D
10. When the "voice of customers" is brought into the organization, which of the following
organizational structures work best?
A. Virtual teams B. Cross functional teams
C. Matrix D. Line and staff
Ans: B
11 The average loss of manpower due to leave, retirement, death, transfer, discharge, etc to
calculate the need for manpower is known as
A. Work load analysis B. Forecasting
C. Job analysis D. Workforce analysis
Ans: D
12 Which of the following is not ways to departmentalize
A. By function B. By employee
C. By process D. By product
Ans: B
13 Choose option that is not a feature of formal organisation?
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A. It specifies the relationships among various B. The standards of behaviour of

job positions employees are evolved from group norms
C. It is deliberately designed by the top D. It places less emphasis on
management interpersonal relationships among the
employees
Ans: B
14 A strategy of jog design that increases job depth by meeting employees needs for
psychological growth
A. Job rotational B. Job enlargement
C. Job engagement D. Job enrichment
Ans: D
15. A job is evaluated based on essential information is
A. Job description B. Job enrichment
C. Job ranking D. Job enlargement
Ans: A
16 Which of the following characteristics under Job specification
A. Psychological characteristics B. Physical characteristics
C. Personal characteristics D. All of the above
Ans: D
17 Higher management levels retains decision-making authority in organisation is said to be
A. Decentralised B. Centralised
C. Fragmented D. All the above
Ans: B
18 The record of outcomes produced on a specific job function or activity during a specific
time period is called
A. Work function B. Evaluation
C. Performance D. None of the above
Ans: C
19 Information on the human attributes in terms of education, skills, aptitudes, and experience
necessary to perform a job effectively is
A. Job evaluation B. Job specification
C. Job description D. Job analysis
Ans: B
20 Career development is defined as
A. Providing information to students about B. Determining the potentialities of
opportunities of employment students for a suitable career
C. Conscious determination of career D. Providing counselling to students to
aspirations and potentialities of employees and choose their careers
matching them with the organisation’s needs
Ans: C
21 Human Resource planning is compulsory for
A. Base for recruitment B. Base for selection policy
C. Effective employee development programme D. All the above
Ans: D
22 Appointing someone on a post that is at same wages/rank refers to
A. Internal recruiters B. Employee referral
C. Lateral hiring D. Sourcing
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Ans: C
23 360° appraisal means?
A. A process that provides an employee B. A process that provides an officer
opportunity in decision making opportunity of feedback about own
performance
C. Both A and B D. A process that provides an employee
with feedback about his / her workplace
performance
Ans: D
24 Identify the related step in organising process being mentioned in the below lines.
Hari has joined as a Creative Head in an entertainment company. He always ensures that the
work has been divided into small and manageable activities and also the activities of similar
nature are grouped together.
A. Identification and division of work B. Departmentalisation
C. Assignment of duties D. Establishing reporting relationships
Ans: B
25. Find correct one which cannot be delegated?
A. Responsibility and accountability B. Authority and responsibility
C. Accountability and responsibility D. All of the above
Ans: A
26 Training & Development program in international Human Resource Management should
give attention to
A. Understanding of the cultural environment of B. Improvement of technical expertise
the host country
C. Promotion of efficiency of personnel in the D. All the above
host country
Ans: D
27. Linkedin, Twittter, facebook are used for recruitment is
A. Media recruiting B. Social recruiting
C. External recruiting D. Internal recruiting
Ans: B
28 Why grievances to be redressed?
A. Collective disputes conversion B. Affects the management
C. Affects the individual D. All the above
Ans: D
29 Termination of employee by an owner besides will of worker is /are
A. Screening B. Dismissal
C. Firing D. Both B and C
Ans: D
30 Manpower planning is
A. Estimating the turnover likely to happen in near B. Identifying the skills / filling up
future the requirements
C. Determining the jobs to be done / identifying the D. Determining the jobs to be done
skills / estimating the exists likely / filling up the
requirements
Ans: C

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Unit IV – Directing

1 It is very difficult to detect the source of such communication.

A. Upward communication B. Vertical communication
C. Lateral communication D. Informal communication
Ans: D
2. It refers to the process of instructing, guiding, counseling, motivating and leading people in
the organization to achieve their objectives.
A. Planning B. Organizing
C. Staffing D. Directing
Ans: D
3 Which of the following is not an element of directing?
A. Supervision B. Communication
C. Leadership D. Inspection
Ans: D
4 Identify the level at which the directing function takes place in an organization?
A. Top level management B. Middle level management
C. Lower level management D. All of the Above
Ans: D
5 It means the process of making subordinates to act in a desired manner to achieve certain
organizational goals.
A. Supervision B. Communication
C. Leadership D. Motivation
Ans: C
6. Effective motivation in the organisation does not contribute towards
A. Developing performance levels of B. Helping to reduce employee turnover
employees
C. Resistance to changes in the organisation D. All of the above
Ans: C
7. Which of the following is not an example of financial incentive?
A. Perquisites B. Job Enrichment
C. Profit Sharing D. Co-partnership
Ans: B
8. It is the process of influencing the behavior of people by making them strive voluntarily
towards achievement of organisational goals.
A. Supervision B. Communication
C. Leadership D. Motivation
Ans : C
9. Which of the following is not a feature of leadership?
A. It shows ability of an individual to B. It leads to achievement of
influence others. organisational goals.
C. Leadership is one-time process. D. It leads to desired change in the
organisation.
Ans : C
10. Identify the correct sequence of steps involved in the communication process.
A. Sender, Message, Encoding, Media, B. Sender, Decoding, Receiver, Feedback,
Decoding, Receiver, Feedback Message, Encoding, Media
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C. Sender, Message, Encoding, Media, D. Sender, Media, Decoding, Receiver,

Decoding, Receiver, Feedback Message, Encoding, Feedback
Ans : C
11 Formal communication may take place between
A. Superior and subordinate B. Subordinate and superior
C. Two managers at the same level D. All of the above
Ans : D
12 Upward communications refer to flow of communication from
A. Subordinate to superior B. One departmental manager to another
C. Superior to subordinate D. All of the above
Ans : A
13 Downward communications refer to flow of communication from
A. One departmental manager to another B. Superior to subordinate
C. Subordinate to superior D. All of the above
Ans : B
14 Lateral communication takes place from
A. First to second division of the same B. Superior to subordinate
organization
C. Subordinate to superior D. All of the above
Ans : A
15. Which of the following is not a type of communication barriers?
A. Semantic barriers B. Psychological barriers
C. Rational barriers D. Organizational barriers
Ans : C
16 Which of the following ways help in improving the communication effectiveness?
A. Ensuring proper feedback B. Being a good listener
C. Ensuring follow up patience D. All of the above
Ans : D
17 On the successful completion of two years in a company, Harsh received a letter confirming
his job as permanent employee. Identify the need of Harsh being fulfilled as per Maslow’s
Need Hierarchy Theory.
A. Esteem Needs B. Security Needs
C. Self Actualisation Needs D. Basic Physiological Needs
Ans : B
18 Identify the style of leadership in which the superior uses file forces from within the groups
in order to establish control.
A. Autocratic leadership B. Democratic leadership
C. Laissez-faire leadership D. Authoritarian leadership
Ans : B
19 Mohit recently got a raise in his salary due to annual increment. Which of his human needs
is being satisfied through this?
A. Security Needs B. Belonging Needs
C. Self Actualisation Needs D. Basic Physiological Needs
Ans : D
20 Which of the following is not an assumption of Maslow’s theory?
A. People’s behavior is not based on their B. Satisfaction of such needs influences
needs. their behavior.
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C. A satisfied need can no longer motivate a D. A person moves to the next higher
person; only next higher level need can level of the hierarchy only when the lower
motivate him. need is satisfied.
Ans : A
21 It refers to all measures which are used to motivate people to improve performance,
A. Leadership B. Motivation
C. Incentives D. Communication
Ans : C
22 As the general manager of an e-commerce company, Gagan maintains good interpersonal
relations with followers and also motivates them to contribute for achieving organisational
goals. Identify the concept being described in the above lines.
A. Supervision B. Communication
C. Determination D. Leadership
Ans : D
23 Which of the following is not a type of psychological barriers?
A. Premature evaluation B. Lack of attention
C. Fear of challenge to authority D. Distrust
Ans : C
24 Which of the following is not a type of personal barrier?
A. Fear of challenge to authority. B. Unwillingness to communicate
C. Loss by transmission and poor retention D. Lack of proper incentive
Ans : C
25. While other functions prepare a setting for action, name the function that initiates action in
the organization.
A. Planning B. Organizing
C. Staffing D. Directing
Ans : D
26 It is defined as the process of guiding the efforts of employees and other resources to
accomplish the desired objectives.
A. Supervision B. Communication
C. Leadership D. Inspection
Ans : A
27. These needs are most basic in the hierarchy of motivation theory and correspond to primary
needs.
A. Self Actualisation Needs B. Basic Physiological Needs
C. Security Needs D. Belonging Needs
Ans : B
28 Boom Limited gives due weightage to the perquisites and prestige of job so that the
designation helps to satisfy the psychological, social and esteem needs of an individual.
Identify the type of incentive being described in the above lines.
A. Employee empowerment B. Job security
C. Status D. Perquisites
Ans : C
29 Yajur, as a Project Manager, is able to assess the true potential of his subordinates and
constantly motivates them to realise their full potential. Identify the element of directing
being described in the above lines.
A. Leadership B. Communication
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C. Supervision D. Motivation
Ans : A
30 As an employee of an automobile company, Suraj has always been very lazy and evasive. In
order to change his behavior, his boss decided to give him an incentive. Identify the feature
of motivation being described in the above lines.
A. Motivation is an internal feeling. B. Motivation produces goal-directed
behavior.
C. Motivation is a complex process. D. None of the above
Ans : B

Unit V – Controlling

1 State the stage at which the preventive control takes place.

A. Input B. Output
C. Process D. None of the above
Ans: A
2. The formal control deals with-------------------
A. Price and shared Values B. Rules and Procedures
C. Trust D. Competition
Ans: B
3 The clan control deals with ---------------------------
A. Authority B. Profit Centres
C. Rules and Standards D. Expectations
Ans: D
4. Controlling in management is of ------------------------- type
A. Preventive B. Corrective
C. Preventive and Corrective D. All of the Above
Ans: C
5. How many steps are there in the controlling process?
A. 2 B. 3
C. 4 D. 5
Ans: C
6. Screening Control is otherwise called as ----------------
A. Feedforward Control B. Concurrent Control
C. Feedback Control D. Cascade Control
Ans: B
7. Give the time period for long term budget
A. 6 Months B. 12 Months
C. 15 Months D. More than a year
Ans: D
8. Give an example for a long budget.
A. Cash Budget B. Basic Budget
C. Current Budget D. None of the above
Ans: B
9. Balance Sheet is an example of ------------------- budget
A. Fixed B. Flexible
C. Long term D. Master
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Ans: D
10. Assertion: Budgets are better expresses in quantities than monetary hours.
Reason: Money cannot measure the resources used and the result obtained.
A. Assertion is True and Reason is False B. Assertion is False and Reason is False
C. Assertion is False but Reason is D. Assertion is True and Reason is True
Acceptable
Ans: D
11 Capital budget is a---------------------------------- budget.
A. Long term budget B. Material Budget
C. Short Term Budget D. Cash Budget
Ans: A
12. Give an example for budgetary control Techniques.
A. PERT B. GANTT
C. Zero based Budget D. Audit
Ans: C
13. Relationship between revenues and expenses is given by
A. Audit B. Breakeven point Analysis
C. Profit and loss budget D. PERT
Ans: B
14. State a tool to evaluate Project execution and completion time.
A. Time Budget B. Functional Budget
C. Variable Budget D. PERT
Ans: D
15. Economic Productivity= --------------------
A. Output/input B. Value/Cost
C. Input/Output D. Cost/Value
Ans: B
16. Physical Productivity= ------------------------------------
A. Output/input B. Cost/Value
C. Amount of product/resources D. Value of Product /resources
Ans: C
17. Economic Productivity=---------------------------------------------
A. Output/input B. Cost/Value
C. Amount of product/resources D. Value of Product /resources
Ans: D
18. An Example of Direct Control --------------------------------
A. Authority B. Responsibility
C. Credit policy D. Documentation
Ans: C
19. --------------------------------- is a preventive control
A. Authorization B. Credit Policy
C. Fiscal policy D. All of the above
Ans: A
20 Management Information System deals with -----------------------------
A. Document Preparation B. Record Keeping
C. Business Planning D. All of the Above
Ans: D
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21 State the basic principle behind Pareto diagrams.

A. 80/20 rule B. Scientific Method of tracking
C. Visualization of Process D. None of the above
Ans: A
22 State the basic principle behind Control charts and Scatter Plot.
A. 80/20 rule B. Scientific Method of tracking
C. Visualization of Process D. None of the above
Ans: B
23 Give an example of the chart that has boundary lines or limits.
A. Pareto Diagrams B. Control Charts
C. Process Mapping D. Cause and Effects diagrams
Ans: B
24. Fishbone diagrams are called as ------------------------------------
A. Scatter Plots B. Control Charts
C. Pareto Diagrams D. Cause and Effects Diagrams
Ans: D
25. The limitation in Operations Research is--------------------------------
A. Data Collection B. Formulating Control and Objectives
C. Validating Model and output D. Formulating human behavior
Ans: D
26. Among the following businesses, which business offers full control over foreign markets?
A. Exporting B. FDI
C. Licensing D. Franchising
Ans: B
27. By having -------------------------------, multinational companies prevent their competitors
to grow.
A. Government Power B. Market Withdrawal
C. Lobbying D. Patents
Ans: D
28. Statistical Analysis falls under ------------------------------------------
A .Budgetary Control Technique B .Non- Budgetary Control Technique
C. Maintenance Control Technique D. Cost Control Technique
Ans: B
29. State the Category under which the Financial Statements fall.
A. Purchase Control B. Maintenance Control
C. Quality Control D. Cost Control
Ans: C
30. Prime Vending is a form of -------------------------- buying
A. Formal B. Informal
C. Prime D. Open Market
Ans: A

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 MG8591 PRINCIPLES OF MANAGEMENT
MULTIPLE CHOICE QUESTIONS (MCQ)
UNIT I - V MODEL QUESTIONS

1) A primary benefit of MBO is:

A) Avoid competition
B) Resistance against new entrance
C) Improve employee motivation
D) Increase resources

2) Functional departmentalization groups’ jobs by which of the following?

A) Tasks they perform
B) Territories they serve
C) Products or services they manufacture or produce
D) Type of customer they serve

3) Henri Fayol, a French industrialist, first analyzed what managers do

and divided that work into functions The study of the management
function that defines goals and establishes strategies to achieve them is
called:
A) Planning
B) Organizing
C) Leading
D) Controlling

4) Which one of the following items best reflects the extent to which a
society places a high value on reducing risk and instability?
A) Uncertainty avoidance
B) Power distance
C) Masculinity/femininity
D) Long-term/short-term orientation

5) When a manger made a decision and he is uncertain about the

outcomes His decision is likely to be:
A) Of Poor Quality
B) Unacceptable
C) Successful
D) Risky

6) Forecasting techniques fall into which of the following two categories?

A) Fixed asset and human capital
B) Predictive and confirmatory
C) Quantitative and qualitative
D) Empirical and conceptual

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7) A plan developed to carry out a course of action that is not likely to be
repeated in the future is called:
A) Single-use plan
B) Specific plan
C) Reaction plan
D) Directional plan

8) The organization which has no interaction with its external

environment is called:
A) Open system
B) Closed system
C) Non-interactive system
D) Moderated system

9) Which famous management thinker was related with the development

of “Theory X”?
A) Douglas McGregor
B) Abraham Maslow
C) Frederick Herzberg
D) Chester Barnard

10) The management function that specifies goals to be achieved and

deciding in advance the appropriate actions to achieve those goals is:
A) Leading
B) Controlling
C) Organizing
D) Planning

11) Supervisor is another name for whom?

A. team leaders
B. middle managers
C. first-line managers
D. top managers

12) Which of the following is true concerning technical and managerial

skills?
A. Human skills and technical skills remain equally important as
managers move to higher levels.
B. Technical-skill needs remain necessary and human skills decrease as
managers move to higher levels.
C. Human skills remain necessary and technical-skill needs decrease as
managers move to higher levels.
D. Both human-skill and technical-skill needs decrease as managers

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move to higher levels.

13) Which of the following views of managerial impact is useful in

explaining the high turnover among college and professional sports
coaches who can be considered the “managers” of their teams?
A. symbolic
B. omnipotent
C. generalist
D. autocratic

14) Managers operate within the constraints imposed

by__________________.
A. government at the federal and state level
B. the employees of the organization
C. the organization’s culture and environment
D. the organization’s board of directors

15) Which of the following is not an example of a constituency that

makes up the specific environment?
a) customers
b) sociocultural factors
c) suppliers
d) competitors

16) Employees in organizations with strong cultures _______________.

A. are more committed to their organization
B. are more likely to leave the organization than stay
C. are more willing to perform illegal activities
D. are more likely to follow directives from peers

17) When Japanese employees use words such as: KAIZEN and RINGI,
they are using organizational __________.
A. languages
B. rituals
C. symbols
D. artifacts

18) According to the textbook, _______________ refers to the number of

components in an organization’s environment and the extent of the
knowledge that the organization has about those components.
A. degree of stability
B. openness
C. degree of complexity
D. change
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19) A manager resolving conflict among organizational members is
performing what function?
A. controlling
B. commanding
C. directing
D. leading

20) According to Mintzberg’s management roles, the _____________ roles

are those that involve people and other duties that are ceremonial and
symbolic in nature.
A. informational
B. interpersonal
C. technical
D. decisional

21) Hawthorne studies were a series of early experiments that focused

on:
A) Behavior in the workplace
B) Ethics in the workplace
C) Group norms
D) Interpersonal dynamics

22) Selecting an alternative in the decision-making process is

accomplished by option:
A) Choosing the alternative with the highest score
B) Choosing the One You Like Best
C) Selecting the alternative that has the lowest price
D) Selecting the alternative that is the most reliable

23) A plan developed to carry out a course of action that is not likely to
be repeated in the future is called:
A) Single-use plan
B) Specific plan
C) Reaction plan
D) Direction plan

24) Concern for employee motivation is most closely associated with

which of the following management approach?
A) Bureaucracy
B) Organizational behavior (NOT SURE)
C) Scientific management
D) Systems

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25) Interest rates, inflation rates, and stock market indexes are all
examples of which of the factor of an organization’s general
environment?
A) Economic
B) Political
C) Social
D) Technological

26) Which factor has been the most rapidly changing component in an
organization’s general environment in the past quarter-century?
A) Global
B) Economic
C) Social
D) Technological

27) The process of monitoring performance, comparing it with goals and

correcting any significant deviations is known as:
A) Planning
B) Organizing
C) Leading
D) Controlling

28) When Usman decides to deploy employees to another department

that is lagging behind in production, he is acting in which of the following
roles?
A) Spokesperson
B) Negotiator
C) Leader
D) Resource allocator

29) The greater the risk involves in making a decision, the greater the:
A) Outcomes
B) Information available
C) Rewards
D) Uncertainty

30) Each subordinate should report to one and only one superior is
called:
A) Authority
B) Unity of command
C) Unity of direction
D) Order

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31) Which of the following is part of the principles of management
identified by Henri Fayol?
A) Scalar chain
B) Innovation
C) Efficiency
D) Motivation

32) A learning organization has developed its________

A) Educational department to keep employees trained
B) Capacity to adapt and change
C) Barriers to entry of its markets
D) A sustainable competitive advantage that is easy to maintain

33) Which of the following is not a suggestion for motivating employees?

A) Recognize individual differences
B) Makes goals very difficult to achieve
C) Match people to jobs
D) Individualize rewards

34) In Maslow’s need hierarchy, a healthy work environment is an

example of what type of need?
A) Physiological
B) Steem
C) Safety
D) Social

35) The plans which deal with fairly small set of activities are called:
A) Strategic plan
B) Tactical plan
C) Operational plan
D) Personal plan

36) Which of the following is known as the process of getting activities

completed efficiently and effectively with and through other people?
A) Leading
B) Management
C) Supervision
D) Controlling

37) Which of the following describe(s) a global marketplace?

A) The entire world is a marketplace
B) National borders are irrelevant
C) The potential for organizations to grow expands dramatically

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D) All of the given options

38) The assignment of new or additional responsibilities to a subordinate

is called:
A) Coordination
B) Specialization
C) Delegation
D) Span of control

39) Which of the following management thinker created a role

classification system based on how managers spend their time at work
to describe a manager’s role?
A) Peter Brabeck-Letmathe
B) Abraham Maslow
C) Andrea Jung
D) Henry Mintzberg

40) Which expectancy theory linkage explains the degree to which a

student desires a good job?
A) Expectancy
B) Effort to performance
C) Input to outcome
D) Valence

41) The assignment of new or additional responsibilities to a subordinate

is called:
A) Coordination
B) Specialization
C) Delegation
D) Span of control

42) Which ethical approach is guided by what will result in the greatest
good for the greatest number of people?
A) Moral-Rights approach
B) Individual approach
C) Utilitarian approach
D) Justice approach

43) Low level management has a complete authority to make decisions

in case of:
A) Centralization
B) Decentralization
C) Scalar Chain

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D) Order

44) Which one of the following individuals is most closely associated with
scientific management?
A) Frederick Taylor
B) Mary Parker Follett
C) Harold Koontz
D) Max Weber

45) Each subordinate should report to one and only one superior is
called:
A) Authority
B) Unity of command
C) Unity of direction
D) Order

46) There are many healthcare products manufacturers XYZ Company

manufactures only personal hygiene products It markets such products
deodorant, body powder, body creams, and exfoliates Because it only
stocks body care and personal hygiene products, it is using ___ strategy :
A) Prospecting
B) Emergent
C) Focus
D) Cost leadership

47) When managers give goals to employees, they must always: :

A) Use employee-recognition as a reward
B) Provide feedback to the employees
C) Let the employees participate in setting the goals
D) All of the given options

48) The organization that has developed the capacity to continuously

learn, adapt, and change is called:
A) Virtual organization
B) Learning organization
C) Traditional organization
D) Bureaucratic organization

49) Your firm’s attorney has which of the following power when giving
legal advice?
A) Legitimate
B) Status
C) Expert

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D) Coercive

50) Which of the following is a function of how much decision-making

authority is pushed down to lower levels in the organization?
A) Departmentalization
B) Centralization
C) Span of control
D) Power

51) Organizations that are highly flexible and adaptive are described as
which of the following?
A) Organic
B) Mechanistic
C) Rational
D) Intuitive

52) A human resource manager attending a local Society for Human

Resource Management meeting would be functioning in which of the
following role?
A) Informational
B) Leader
C) Liaison
D) Disseminator

53) Which type of environment is best suited for mechanistic

organizations?
A) Dynamic
B) Manufacturing
C) Service
D) Stable

54) The most outspoken advocate of the classical view of social

responsibility is economist and Nobel prize winner:
A) Carnegie Milton
B) Charles Darwin
C) Milton Freeman
D) Milton Friedman

55) In traditional goal setting, the goals are set at the top level of
management and after that they:
A) Become the responsibility of first-line management
B) Are broken down into sub goals for each level of the organization
C) All the efforts to achieve the goals are directed by top management

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D) Are delegated to the next lower level to be achieved

56) Which of the management tasks is the most important for a

supervisory manager?
A) Planning
B) Organizing
C) Controlling
D) Staffing

57) A budget is an example of which of the following plan?

A) Strategic plan
B) Single use plan
C) Informal plan
D) Standing plan

58) Which of the following is the final step in the decision-making

process?
A) Identifying the problem
B) Evaluating the decision’s effectiveness
C) Identifying decision criteria
D) Selecting an alternative that can resolve the problem

59) The behavioral dimension of leadership involving the concern that

the leader has for the feelings, needs, personal interest, problems, and
well-being of followers is referred to as which of the following?
A) Consideration
B) Initiating structure
C) Autocratic
D) Democratic

60) What type of an organization actively creates, acquires, and

transfers knowledge within itself and is able to modify its behavior to
reflect new knowledge?
A) Enlightened organization
B) Conceptualized organization
C) Learning organization
D) Modern organization

61) Monitoring organizational progress towards goal attainment is called:

A) Planning
B) Organizing
C) Leading
D) Controlling

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62) Organizational culture is similar to an individual’s:
A) Skills
B) Personality
C) Motivation
D) Ability

63) Which of the following is NOT an example of an organization’s

general environment?
A. Economic conditions
B. Political conditions
C. Social conditions

64) Who presented the Concept of Quality?

A. Henri Fayol
B. ProfHenryMintzberg
C. Frank & Lillian Gilbreth
D. ProfEdward Deming

65) In order to communicate, motivate and delegate a manager must

have:
A. Political skills
B. Conceptual skills
C. Technical skills
D. Interpersonal skills

66) Which of the following is called output of a system?

A. Services
B. Material
C. Human
D. Information resource

67) Who is credited for the theory of motivation based on the hierarchy
of needs?
A. Abraham Maslow
B. Douglas McGregor
C. Henri Fayol
D. Mary Parker Follett

68) Which of the following is NOT an example of a constituency that

makes up the specific environment?
A. Customers
B. Socio-cultural
C. Suppliers

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D. Competitors

69) The SWOT approach assesses an organization’s:

A. Speed, Wants, Order, Timing
B. Studies, Workflows, Opportunities, Trials
C. Strengths, Weaknesses, Opportunities, Threats
D. Signs, Worries, Objectives, Techniques

70) An office supply firm that has three departments based upon retail,
wholesale, and governmental customers is using which of the following
types of departmentalization?
A. Functional
B. Product
C. Customer
D. Geographic

71) To determine the ___________, a manager must determine what is

relevant or important in resolving the problem
A. Geocentric behavior needed
B. Number of allowable alternatives
C. Weighting of decision criteria
D. Decision criteria

72) A manager who strives to ensure the activities of the organization’s

employees are supported and blend well with those of individuals outside
the firm could be said to hold which of the following interpersonal role
within the company?
A. Liaison
B. Disseminator
C. Figure head
D. Entrepreneur

73) What would be the best description of plans that focus on the broad
future of the organization and incorporate both external environmental
demands and internal resources into managers’ actions?
A. Operational plans
B. Tactical plans
C. Strategic plans
D. Holistic plans

74) Which of the following scientist is most closely associated with the
Hawthornestudies?
A. Adams
B. Mayo
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C. Lawler
D. Barnard

75) When objectives are not written down or rarely verbalized, and the
planning is general and lacks continuity, which of the following types of
planning is used?
A. Environmental planning
B. Economic planning
C. Informal planning
D. Formal planning

76) Which of the following is the power that rests on the leader’s ability
to punish or control?
A. Reward power
B. Coercive power
C. Expert power
D. Referent power

77) Inspiring people to be high performer is called:

A. Controlling
B. Leading
C. Planning
D. Organizing

78) Which of the following theory is currently the most widely accepted
when describing employee motivation?
A. Reinforcement
B. Three-need
C. Expectancy
D. Equity

79) Activities such as taking visitors to dinner and attending ribbon

cutting ceremonies come under which of the following management
role?
A. Leader
B. Liaison
C. Figurehead
D. Negotiator

80) LG and Sony electronics agreed to cooperate on developing new

technologies Representatives from each firm meet regularly to
coordinate this new venture Which of the following roles these mangers
are playing?
A. Liaison
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B. Leader
C. Disseminator
D. Spokesperson

81) A skill or capability that enables an organization to conceive of and

implement its strategies is its:
A. Strength
B. Weakness
C. Opportunity
D. Threat

82) The task environment of organizations consists of constituencies that

have a direct impact on managers’ decisions and actions The main
constituencies are made up of customers, suppliers, competitors, and
________
A. Legislators
B. Pressure groups
C. Employees
D. Lawyers

83) Set of processes involved in creating or determining the strategies of

the organization is called:
A. Strategy formulation
B. Strategy implementation
C. Strategy evaluation
D. Strategy imitation

84) What type of an organization actively creates, acquires, and

transfers knowledge within itself and is able to modify its behavior to
reflect new knowledge?
A. Enlightened organization
B. Conceptualized organization
C. Learning organization
D. Modern organization

85) Which of the following is a general statement or understanding that

guide or channelize thinking in decision making?
A. Policy
B. Procedure
C. Rule
D. Project

86) Which of the following is a process that involves managers from all
parts of the organization in the formulation of strategic goals?
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A. Strategic management
B. Strategic positioning
C. Strategic planning
D. Strategic organizing

87) Maslow’s need hierarchy, a healthy work environment is an example

of what type of need?
A. Physiological
B. Esteem
C. Safety
D. Social

88) That would be the best description of plans that focus on the broad
future of the organization and incorporate both external environmental
demands and internal resources into managers’ actions?
A. Operational plans
B. Tactical plans
C. Strategic plans
D. Holistic plans

89) Which of the following is NOT a key element of the Total Quality
Management approach?
A. Focus on the customer
B. Employee involvement
C. Continuous improvement
D. Focus on the supplier

90) When call center managers spend much of their time monitoring
customer calls and giving employees feedback about how to improve
their dialogue with customers in the future, these managers are using
which of the following skills?
A. Technical
B. Conceptual
C. Situational
D. Ethical

91) The process of selecting decision criteria is accomplished by:

A. Massaging the data that will support a given decision
B. Flipping a coin to produce a – chance of being right
C. Determining what is relevant in making the decision
D. Examining the difference in the opportunities available

92) Alternatives that an organization chooses from its operations across

several industries and several markets is called:
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A. Business-level strategy
B. Corporate-level strategy
C. Functional-level strategy
D. Market-level strategy

93) In the MBO system:

A. Objectives are determined by management
B. Goals are only reviewed at the time of completion
C. Goals are used as controls
D. Progress is periodically reviewed

94) Strategic plans cover a broader view of the organization and include
the formulation of goals, whereas operational plans define ways to:
A. Maximize the organization’s profits
B. Achieve the goals
C. Minimize the number of employees
D. Provide the most efficient methods of production

95) The first step in the decision-making process is which of the

following?
A. Developing decision criteria
B. Allocating weights to the criteria
C. Analyzing alternatives
D. Identifying a problem

96) A skill or capability that enables an organization to conceive of and

implement its strategies is its:
A. Strength
B. Weakness
C. Opportunity
D. Threat

97) The management function that specifies goals to be achieved and

deciding in advance the appropriate actions to achieve those goals is:
A. Leading
B. Controlling
C. Organizing
D. Planning

98) The plans which deal with fairly small set of activities are called:
A. Strategic plan
B. Tactical plan
C. Operational plan

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D. Personal plan

99) A budget is an example of which of the following plan?

A. Strategic plan
B. Single use plan
C. Informal plan
D. Standing plan

100) Which of the following can be defined as the art and science of
formulating, implementing and evaluating cross-functional decisions that
enable an organization to achieve its objectives?
A. Strategy formulation
B. Strategy evaluation
C. Strategy implementation
D. Strategic management

101) Which of the following is NOT one of the situational factors thought
to influence the relationship between leader behavior and subordinate
motivation to perform in the path-goal theory?
A. Preferences of the leader
B. Subordinate locus of control
C. Characteristics of the work group
D. Task structure

102) Social obligation is the obligation of a business to meet its:

A. Social and technological responsibilities
B. Economic and social responsibilities
C. Technological and economic responsibilities
D. Economic and legal responsibilities

103) All of the following are the examples of the actions that can be
taken in strategy implementation stage EXCEPT:
A. Changing organization’s pricing strategy
B. Developing new employee benefits
C. Transferring managers among divisions
D. Taking corrective action when needed

104) The method by which strategies are operational zed or executed

within the organization is called:
A. Strategy implementation
B. Strategy evaluation
C. Strategy formulation
D. Strategy imitation

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105) The idea that employees should also share the profit of organization
was given by:
A. Frederick Taylor
B. Robert Owen
C. Charles Babbage
D. W Edwards Deming

106) In some countries, such as Venezuela, titles, rank, and status carry
a lot of weight These countries have a large:
A. Power distance
B. Uncertainty avoidance
C. Short- versus long-term orientation
D. Individualism versus collectivism

107) Which of the following is associated with the classical view of social
responsibility?
A. Economist Robert Reich
B. Concern for social welfare
C. Stockholder financial return
D. Voluntary activities

108) Which of the following management thinker created a role

classification system based on how managers spend their time at work
to describe a manager’s role?
A. Peter Brabeck-Letmathe
B. Abraham Maslow
C. Andrea Jung
D. Henry Mintzberg

109) Which of the management tasks is the most important for a

supervisory manager?
A. Planning
B. Organizing
C. Controlling
D. Staffing

110) Forecasting techniques fall into which of the following two

categories?
A. Fixed asset and human capital
B. Predictive and confirmatory
C. Quantitative and qualitative
D. Empirical and conceptual

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111) If all criteria in the decision making are equal, weighting the criteria
______________.
A. improves decision making when large numbers of criteria are involved
B. is not needed
C. produces excellent decisions
D. improves the criteria

112) Decision making is (simplistically) typically described as which of

the following?
A. deciding what is correct
B. putting preferences on paper
C. choosing among alternatives
D. processing information to completion

113) In Step 6 of the decision-making process, each alternative is

evaluated by appraising it against the _____________.
A. subjective goals of the decision maker
B. criteria
C. assessed values
D. implementation strategy

114) According to the textbook, because managers can’t possibly

analyze all information on all alternatives, managers ______________,
rather than ______________.
A. maximize; satisfice
B. maximize; minimize
C. satisfice; minimize
D. satisfice; maximize
Answer Keys
An
Q Q Q Q Q
sw A A A A
No No No No No
er

1 C 26 D 51 C 76 C 101 D

2 A 27 D 52 C 77 B 102 D

3 A 28 D 53 A 78 B 103 A

4 A 29 C 54 C 79 B 104 A

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5 D 30 B 55 B 80 A 105 C

6 C 31 A 56 C 81 A 106 A

7 A 32 B 57 B 82 A 107 A

8 B 33 B 58 B 83 A 108 D

9 A 34 C 59 D 84 C 109 C

10 D 35 C 60 C 85 A 110 C

11 C 36 B 61 D 86 A 111 B

12 C 37 D 62 B 87 C 112 C

13 B 38 C 63 C 88 C 113 B

14 C 39 D 64 D 89 D 114 D

15 B 40 A 65 D 90 A

16 A 41 C 66 B 91 B

17 A 42 D 67 A 92 D

18 C 43 B 68 B 93 A

19 D 44 A 69 C 94 B

20 B 45 B 70 A 95 D

21 A 46 C 71 D 96 A

22 A 47 D 72 C 97 D

23 B 48 B 73 C 98 D

24 B 49 C 74 B 99 B

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25 A 50 A 75 C 100 D

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 MG8591
PRINCIPLES OF
MANAGEMENT

MULTIPLE CHOICE QUESTIONS

REGULATIONS - 2017

FOR ALL FIVE UNITS

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 UNITS

 INTRODUCTION TO MANAGEMENT &
ORGANIZATIONS

 PLANNING

 ORGANIZING

 DIRECTING

 CONTROLLING

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 
What are the points to be
Considered while attending
MCQs???

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 MCQ’s TIPS

 Read the entire question
 Answer it in your mind first, without seeing option.
 Read every answer option.
 Eliminate wrong answers.
 Answer the questions you know first.
 Pay attention to the words
 It's usually best to stick with your first choice--but not
always.
 When there are seemingly two correct answers.

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 MCQ TIPS

 Read a multi-choice question in its entirety before
glancing over the answer options. Students often
think they know what a question is asking before
reading it and jump straight to the most logical
answer. This is a big mistake and can cost you dearly
on multiple-choice exams. Read each question
thoroughly before reviewing answer options.

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 MCQ TIPS

 Read every answer option prior to choosing a final
answer. This may seem like a no brainer to some, but
it is a common mistake students make. As we
pointed out in the previous section, there is usually
a best answer to every multiple-choice question. If
you quickly assume you know the correct answer,
without first reading every answer option, you may
end up not selecting the best answer.

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 MCQ TIPS

 After reading a question, answer it in your mind
before reviewing the answer options. This will help
prevent you from talking yourself out of the correct
answer.

 Eliminate answer options which you're 100 percent

sure are incorrect before selecting the answer you
believe is correct. Even when you believe you know
the right answer, first eliminating those answers you
know are incorrect will ensure your answer choice is
the correct choice.
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 
 It is best to stick with the answer you first chose after
reading the question. It is usually counterproductive to
constantly second guess yourself and change your
answer. However, this doesn't mean your first answer
choice is necessarily the correct answer choice. While
multiple choice tests aren't usually intentionally designed
to trick or confuse students, they are designed to test
students' knowledge and ability. To this end, the answer
options provided will often include the most common
wrong answer among the choices or answers that seem
logical but are ultimately incorrect, or the best answer.

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 MCQ TIPS

 When there are seemingly two correct answers.

When two answers are correct in a multiple

choice question with an "All of the above" option, then
it's probably the correct choice.

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 

PRINIPLES OF MANAGEMENT

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 MCQ’s

1. Which of these in not a function of management?

 A – Planning
 B – Aligning
 C – Staffing
 D - Controlling

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 MCQ’s

2. Entrepreneur is the person who

 A – Has the rights to implement changes

 B – Starts the business
 C – is more risk taker
 D – All the above

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 MCQ’s

3. Which of this is not a Top level management
function?

 A – To formulate goals
 B- To decide profit distributions
 C – To train, motivate and develop workers
 D – To set budget

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 MCQ’s

4. Who is called the Father of Scientific management?

 A- Charless babbage
 B – Henri Fayol
 C – Fredrick W. Taylor
 D – Henry Gantt

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 MCQ’s

 5. Henri Fayol’s number of principles of
management

 A- 10
 B- 6
C–8
 D- 14

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 MCQ’s

6. MBO stands for

 Management By Objectives
 Manpower By Opportunities
 Management By Opportunities
 Manpower By Objective

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 
 7. Smart refers

A – Specific – Manpower – Art _ Relation – Time

B- Specific – Measurable – Achievable – Relevant – Time
bound
C – Self confidence – Management – Activity –
Reliable – Target
D – Satisfaction – Measurement – Anticipation –
Radiant - Talent

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 MCQ’s

 8. Types of Planning includes

 A – Tactical
 B - Strategical
 C - Contigency
 D- All the above

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 MCQ’s

9. Pick the odd one out, “Objectives” are

 A – Aim oriented
 B – Budget oriented
 C – Purposes oriented
 D – Goals oriented

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 MCQ’s

10. PERT stands for

A – Process element review technique

B – Process elevation review technique
C – Program evaluation review technique
D – Project experimental review technique

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 MCQ’s

 11. Formal organizations are not

 A- Planned and official

 B – Large in size
 C – Having definite structure
 D – Unstable in nature

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 MCQ’s

12. Which of these are types of organization?

A – Formal organization
B – Informal organization
C – Both A & B
D – None of the above

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 MCQ’s

13. Prioritize by superior position, “ Manager”, “Vice
President”, “ President”, “Managing director”

A–4231
B–3241
C–3412
D–1234

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 MCQ’s

14. Functions of HRD

 A -Performance appraisal
 B – Training
 C – Career development
 D – All the above

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 MCQ’s

 15. Production creates which type of utility
 (A) Form
 (B) Place
 (C) Time
 (D) Possession


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 MCQ’s

 16. ________ concept increases the efficiency of
economic system.
 (A) Financing
 (B) Advertising
 (C) Marketing
 (D) Packaging

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 MCQ’s

 17. ________ occurs when people in spite of being
qualified and experienced and trained have to
settle for a low level job.
 (A) Unemployment
 (B) Underemployment
 (C) Both (A) and (B)
 (D) None of the above

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 MCQ’s

 18. For exchange to take place, which condition(s)
must be satisfied ?
 (A) At least two parties
 (B) Each party is capable of communication and
delivery
 (C) Each party has something that might be of value
to the other party
 (D) All of the above

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 MCQ’s

 19.Price strategies change over the ____ of the
product.
 (A) Quality
 (B) Life cycle
 (C) Manufacturing
 (D) None of the above

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 MCQ’s

 20. Business is rated on which dimensions
 (A) Market attractiveness ,
 (B) Business strength
 (C) Both (A) and (B)
 (D) Profit margin

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 MCQ’s

21- Management is a creative and ________
process.

(A) Continuous

(B) Technical

(C) Democratic

(D) None of the above

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 MCQ’s

22- The old control technique(s) which was (were)
used through years is (are)

(A) unity of policies

(B) break-even analysis

(C) budgetary control

(D) All of the above

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 MCQ’s

23- Which type of strategies do professional managers
help organizations in chalking out?

(A) Multi-disciplinary

(B) Corporate

(C) Managerial

(D) All of the above

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 MCQ’s

24. Management exists at the ___ level of the
organization.

(A) Lower

(B) Middle

(C) Top

(D) All of the above

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 MCQ’s

25. Limitation(s) of control is (are)

(A) external factors

(B) fixing of responsibility

(C) variation and its causes

(D) All of the above

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 MCQ’s

26- Management is said to be the combination of

(A) arts, science and profession

(B) arts, science and engineering

(C) arts, commerce and science

(D) arts, commerce and engineering

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
27- ___ is supposed to be immutable, unchanging and
eternal.

(A) Policy

(B) Vision

(C) Mission

(D) All of the above

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 MCQ’s

28- The summary of important trends in retailing
are

(A) market concentration

(B) global players vs. local players

(C) non store retailing

(D) all of the above

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 MCQ’s

29- Costliness of the ________ is the overriding factor
determining the extent of decentralization.

(A) Decision

(B) Staffing

(C) Both (A) and (B)

(D) None of the above

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 MCQ’s

30- Positive motivation makes people willing to do
their work in the best way they can and improve their
________.

(A) Productivity

(B) Personality

(C) Performance

(D) All of the above

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 MCQ’s

31- The objective(s) in corporate governance is (are)

(A) shareholders value maximization

(B) growth

(C) stability

(D) all of the above

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 MCQ’s

32- The heart of administration is the ___ function.

(A) Directing

(B) Organizing

(C) Controlling

(D) Cooperating

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 MCQ’s

33- The different A’s of the service sector are

(A) acceptability , awareness , adaptability

(B) acceptability , awareness , availability

(C) adaptability , awareness , availability

(D) acceptability , adaptability , availability

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 MCQ’s

34- Fedrick Winslow Taylor’s Mechanism of Scientific
Management includes

(A) Scientific task setting

(B) planning the task

(C) standardization of tools and equipment

(D) All of the above

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 MCQ’s

35- Direction is a ________ function performed by all
the managers at all levels of the organization.

 (A) Managerial

 (B) Organizational

 (C) Both (A) and (B)

 (D) None of the above

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 MCQ’s

36- Retailing category(ies) based on ownership
arrangement would be

(A) Super Markets

(B) Consumer Durables Stores

(C) Departmental Stores

(D) All of the above

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 MCQ’s

37- ___ is a tool for corporate governance.

(A) Training

(B) Recruitment

(C) Communication

(D) Consulting

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 MCQ’s

38-Horizontal co-ordination takes place ___ .

(A) upwards

(B) downwards

(C) sideways

(D) any of the above

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 MCQ’s

39-The internal environment factor(s) that influence
management is (are)

(A) Labor

(B) Machines

(C) Place

(D) All of the above

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 MCQ’s

40-What articulates the long-term goals of an
enterprise?

(A) Policies

(B) Vision statement

(C) Both (A) and (B)

(D) None of the above

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 ORGANIZATION
MANAGEMENT

41-What is the other name for vertical job loading?

(A) Job enrichment

(B) Job enlargement

(C) Job evaluation

(D) None of the above

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 MCQ’s

42- The relationship in which one person influences
others to work together willingly on related tasks is
known as ________.

 (A) Mentor
 (B) Leadership
 (C) Subordinate
 (D) None of the above

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 MCQ’s

43-Stage of resistance

 (A) Maximum adaption

 (B) Alarm reaction disappears
 (C) Resistance increases
 (D) All of the above

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 MCQ’s

44-Conflict management helps to understand

 (A) Nature and origin of conflict

 (B) Personality bias
 (C) Individual conflict
 (D) All of the above

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 MCQ’s

45- ___ and ___ can prosper if they help each other.

 (A) Employees, Organization

 (B) Manager, Employees
 (C) Supervisor, Employees
 (D) All of the above

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 MCQ’s

46. According to Peter F.Drucker, the basic and
scarcest resource of any business enterprise is
________.

 (A) Shop floor workers

 (B) Business leaders
 (C) Managers
 (D) Supervisor

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 MCQ’s

47-Individual personality trait(s) that serve as hurdle
in communication

 (A) Low adjustments

 (B) Low sociability
 (C) Low agreeableness
 (D) All of the above

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 MCQ’s

48-External attention factors are

 (A) The factors that are within the situation

 (B) The factors that are out of the situation
 (C) The factors which are inherent in an individual
 (D) None of the above

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 MCQ’s

49-Basic Organizational Behavior concepts take into
consideration

 (A) Nature of people

 (B) Nature of organization
 (C) Both (A) and (B)
 (D) None of the above

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 MCQ’s

50- Organizational socialization includes

 (A) Developing competencies

 (B) Developing organizational values
 (C) Developing social and working relationship
 (D) All of the above

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 MCQ’s

51- Group members should have

 (A) same salary

 (B) a common objective
 (C) same skill
 (D) All of the above

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 MCQ’s

52-To live longer, organization need

 (A) To adapt change

 (B) To increase market share
 (C) Both (A) and (B)
 (D) Longer goals

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 MCQ’s

53-Changing task includes

 (A) Job redefinition

 (B) Job specification
 (C) Job enrichment
 (D) All of the above

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 MCQ’s

54- ____ leaders display authority in the ___ belief that
it frightens everyone into productivity.

 (A) Negative, False

 (B) Negative, true
 (C) Positive, False
 (D) None of the above

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 MCQ’s

55- Job enlargement means ___ .

 (A) Adding more manpower

 (B) adding other task to the job
 (C) Both (A) and (B)
 (D) None of the above

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 MCQ’s

56-Term LOC in the study of personality stand for

 (A) Locus of control

 (B) Line of control
 (C) Level of control
 (D) None of the above

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 MCQ’s

57- Organizations are said to be a

 (A) Group of people

 (B) Having some common goal or objective
 (C) Utilize resources for attaining goal
 (D) All of the above

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 MCQ’s

58- As the Supervisory level the requirement of
technical skills is the ____ .

 (A) Lowest
 (B) Medium
 (C) Average
 (D) Highest

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 MCQ’s

59-Perception is used in

 (A) Selection of candidate for employment

 (B) Performance appraisal
 (C) Both (A) and (B)
 (D) None of the above

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 MCQ’s

60- ________ is of much importance for all the
________ to get their work done.

 (A) Motivation, Employees

 (B) Incentive, Employees
 (C) Motivation, Manager
 (D) Incentive, Manager

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 
61-While planning for surplus, the following are the
option(s):
 (A) Reduce work hours
 (B) Redesign the jobs
 (C) Reassign the jobs
 (D) All of the above

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 
62- In the career development cycle, which stage
ideally starts when a new employee joins an
organization and finds a big gap between what the
ideal organization should be and what it is?
 (A) Exporatory stage
 (B) Establishment stage
 (C) Primary stage
 (D) None of the above

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 
63- The capacity to take considerable responsibility,
ability to influence and control others and skills in
problem solving primarily show :

 (A) Managerial competence

 (B) Disfunctional competence
 (C) Core competence
 (D) Functional competence

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 
64-Name the recruitment process which is said to be a
costly affair.
 (A) Internal
 (B) External
 (C) Both (A) and (B)
 (D) None of the above

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 
65- Under the appraisal panel which are the qualities
that can achieve good results despite the difficulties
inherent in the potential appraisal:
 (A) Creative imagination
 (B) Sense of reality
 (C) Effective leadership
 (D) All of the above

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 
66- Stephen Knauf defined HRA as ” the
measurement & ________ of Human organizational
inputs such as recruitment , training experience &
commitment
 (A) work experience
 (B) Qualification
 (C) Both (A) and (B)
 (D) None of the above

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 
67- One of the feature HRD goals are, ________ is a
perishable commodity.
 (A) Labor
 (B) Training
 (C) Recruitment
 (D) All of the above

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 
68- ___ assignment can also be recommended for
career development.
 (A) Mandatory
 (B) Rotational
 (C) Temporary
 (D) Permanent

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 
69- Succession planning is done in three time frames,
those are-
 (A) Immediate , Intermediate , Long range
 (B) Short range , Intermediate , Long range
 (C) Immediate , Medium range , Long range
 (D) Short range , Medium range , Long range

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 
70- Name the important component(s) in aligning
business strategy with HR practice:
 (A) Organizational Capabilities
 (B) Business Strategy
 (C) Human Resource Practices
 (D) All of the above

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 
71- The audit has forced which level of Management
to share their plans across their organization resulting
in increased involvement of employees.
 (A) Top
 (B) Middle
 (C) Lower
 (D) All of the above

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 
72- Some organizations use ________ & committee
management as techniques of training & development
for flexitime systems.
 (A) Job enrichment
 (B) Job enlargement
 (C) Job rotation
 (D) All of the above

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 
73- On the basis of job elements and organizational
demand an appropriate ________ of job evaluation
should be selected.
 (A) behavior
 (B) method
 (C) category
 (D) decision

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 
74- Name the factor(s) which come under ‘ Career
System’ that is component system of HRD:
 (A) Career development
 (B) Potential appraisals
 (C) Career planning
 (D) All of the above

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 
75-The three phases of recruitment process are:
 (A) Planning, Implementing, Evaluating
 (B) Planning, Evaluating, Screening
 (C) Planning, implementing, screening
 (D) None of the above

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 
76- Name the system where the required competencies
are available through training, counseling etc.:

 (A) Recruitment
 (B) Development
 (C) Management
 (D) All of the above

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 
77- What is that describes the duties of the job,
authority relationship, skills requirement, conditions
of work etc.
 (A) Job analysis
 (B) Job evaluation
 (C) Job design
 (D) Job rotation

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 
78- Name the system which is simple, less expensive
& less time consuming.
 (A) Point
 (B) Ranking
 (C) Both (A) and (B)
 (D) None of the above

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 
79- On the basis of the relative work in the
organization, what is the primary purpose of job
evaluation?
 (A) To assign jobs
 (B) To set wages
 (C) To assign responsibility
 (D) All of the above

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 
80- Under HRD, name the factor(s) that act as
motivating force(s).
 (A) Job enrichment
 (B) Informal organization
 (C) Participative management
 (D) All of the above

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 
81-These people are charged with the responsibility of
continuous screening of performance.
 (A) Finance committee
 (B) Audit committee
 (C) Middle management
 (D) Managers

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 
82- ________ identifies the impact of any change on
performance.
 (A) Statistical process control
 (B) Statistical quality control
 (C) Both (A) and (B)
 (D) None of the above

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 
83- ___ company is generally protected from
competition.
 (A) Large
 (B) Focused
 (C) Small
 (D) All of the above

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 
84- An approach that strives to follow ethical
principles and percepts is
 (A) Ethical management
 (B) Moral management
 (C) Anger management
 (D) None of the above

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 
85-Economics of scale requires ___ .
 (A) High market share
 (B) Specialization
 (C) Both (A) and (B)
 (D) None of the above

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 
86-The following is (are) kind(s) of information
system
 (A) Operational level system
 (B) Knowledge level system
 (C) Management level system
 (D) All of the above

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 
87- Export entry modes are
 (A) direct/indirect export
 (B) upper/lower export
 (C) inside/outside export
 (D) all of the above

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 
88- GATT stands for ________.
 (A) general agreement on taxes & tariff
 (B) general agreement on trade & tariff
 (C) general agreement on trade & transport
 (D) none of the above

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 
89- Strategic evaluation determines the effectiveness
of ________ .
 (A) Evaluation
 (B) Strategy
 (C) Product
 (D) Manpower

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 
90-________ is a deep understanding of ones
emotions, strengths, weaknesses, needs, drives &
their effects on self and others.
 (A) Emotional quotient
 (B) Self-awareness
 (C) Both (A) and (B)
 (D) None of the above

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 
91- Strategic management is concerned with
 (A) short-range planning
 (B) medium-range planning
 (C) long-range planning
 (D) all of the above

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 
92-Three C’s affecting today’s companies are
 (A) Customer, Competition and Cost
 (B) Customer, Cost and Change
 (C) Customer, Competition and Change
 (D) Cost, Competition and Change

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 
93-Market research is conducted by
 (A) by employees
 (B) by research agencies
 (C) by consultants
 (D) all of the above


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 
94- Delay in ________ measurement defeats the
purpose of evaluation.
 (A) Work
 (B) Motion
 (C) Time
 (D) All of the above

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95- Factor(s) to be considered while deciding
candidates for divestiture is (are)
 (A) Taxes
 (B) Availability of buyers
 (C) Market reaction
 (D) All of the above

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96- Style of a company are the patterns of actions
taken by members of ___ over a period of time
 (A) Lower management
 (B) Middle management
 (C) Top management
 (D) All of the above

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97- Associated external agencies means
 (A) channel members
 (B) customers
 (C) suppliers
 (D) all of the above

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98- Strategic management is mainly the responsibility
of
 (A) Lower management
 (B) Middle management
 (C) Top management
 (D) All of the above

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99- Organizational model(s) is (are)
 (A) multinational model
 (B) international model
 (C) global organizational model
 (D) All of the above

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100- Strategic management deals with
 (A) Business process
 (B) Business proposal
 (C) Business ethics
 (D) All of the above

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 Thank you

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