MGT503 (PRINCIPLE OF MANAGEMENT)

Which of the following is/are the Fayol’s principle(s) of management?

 Authority
 Discipline
 Unity of command
 All of the given options

Which of the given skills are usually required at almost every level?

 Conceptual Skills
 Interpersonal Skills
 Technical Skills
 All of the given options

Grouping activities and resources in a logical fashion is called:

 Planning
 Organizing
 Leading
 Controlling

An organization is called:

 The physical location where people work

 A collection of individuals working for the same company
 A deliberate arrangement of people to accomplish some specific purpose
 A group of individuals focused on profit making for their shareholders

Which of the following field describes the study of people in relation to their fellow human beings?

 Sociology
 Biology
 Cosmology
 None of the given options

In which period of management, a framework was developed for improvements in areas like science,
statistics, operations and engineering?

 Classical theories
 Pre-classical period
 Quantitative period
 Contemporary period

Idea of work (physical and mental) specialization was proposed by:

 Robert Owen
 Charles Babbage
 Henry R. Towne
 Henry L. Gantt
Page 1 of 42
Usman currently holds a management position within his company. His job responsibilities include maintaining
a focus toward long-term issues that may impact the company developing appropriate goals to guide the
organization. Usman is most probably which of the following type of manager?

 First Line Manager

 Top Level Manager
 Middle Level Manager
 Operational Manager

In a call center, supervisor coordinates with manager on work shifts of subordinates on daily basis. The role is
described as:

 Leader
 Negotiator
 Resource allocator
 Disturbance handler

Top level managers are concerned with broad but critical decisions; hence they must have:

 Conceptual skills
 Interpersonal skills
 Technical skills
 All of the given option

Which of the following refers to the traditional shape of an organization’s structure?

 Square shape
 Circle shape
 Pyramid shape
 Diamond shape

In order to communicate, motivate and delegate a manager must have:

 Conceptual skills
 Interpersonal skills
 Technical skills
 Political skills

In order to achieve __________, organizations strive to minimize their resource wastage.

 Efficiency
 Effectiveness
 Assurance
 Enhancement

The term “Red Tap-ism” is mostly associated with:

 Effectiveness
 Impersonality
 Bureaucracy
 None of the given

Page 2 of 42
Department head, project leader and division manager are positions associated with which one of the
following levels of management?

 Top level
 First level
 Middle level
 None managerial level

Reading a business journal and publication on regular basis to gather information for upcoming business
trends. The role is called:

 Disseminator
 Liaison
 Spokesperson
 Monitor

The term “Red Tap-ism” is mostly associated with:

 Effectiveness
 Impersonality
 Bureaucracy
 None of the given

Which of the following is part of 14 principles of management identified by Henri Fayol?

 Scalar Chain
 Innovation
 Efficiency
 Motivation

Monitoring organizational progress towards goal attainment is called:

 Planning
 Organizing
 Leading
 Controlling

Quantitative viewpoint gave emergence to:

 Operations management
 Bureaucratic management
 Contingency management
 Human relation views

Mr. Ali in XYZ inc. is involved in creating and implementing comprehensive changes that will affect the entire
organization. Mr. Ali is performing role as a:

 First Line Manager

 Top Manager
 Middle Manager
 None Manager

Page 3 of 42
Construction company has started new project of bridge construction. Head of this project has assigned the
different duties to engineers, architects, builders and other management staff to achieve the objective within
the time limit. Which management function has he performed?

 Planning
 Organizing
 Leading
 Controlling

Mr. Smith has set his eyes on the prize; he will play by the rules and even develop a huge amount of
persistence towards getting that reward, it represents his _____ for work.

 Intrinsic motivation
 Extrinsic motivation
 Positive pole of neuroticism
 Positive pol of extraversion

Which of the following is noted for the development of time motion studies that utilized stopwatches and
cameras to analyze workplace efficiency?

 Fredrick Taylor
 Henri Fayol
 Henry Gantt
 Frank and Lillian Gilbreth

In a juice making company, sales manager has set the goal of increasing sales by 10% in summer season. At the
end of summer, the manager will check whether goal has been achieved or not. This function is known as:

 Planning
 Organizing
 Leading
 Controlling

Hawthorne experiments and Human relation theories are classified under which one of the following
theories?

 Classical theories
 Pre-classical theories
 Behavioral theories
 Contingency theories

Mr. A is a manager in XYZ company, he has a reputation for being an open and honest person and understands
how to motivate employees and customers. He is said to have good _____ skills:

 Sales
 Political
 Interpersonal
 Technical

Page 4 of 42
Ali transmits the information outside the organization. He is performing which one of the following roles?

 Spokesperson
 Representative
 Disseminator
 Agent

According to Adam Smith, the division of labor results in:

 Increased worker motivation

 Decreased worker specialization
 Increased worker productivity
 Decreased worker motivation

The most tempting question for leader, “How do I motivate people in spite of constraints?”, addresses:

 Planning function
 Organizing function
 Leading function
 Controlling function

Fostering morale of employees and promoting team spirit to create harmony and unity within organization is
called:

 Equity
 Initiative
 Esprit de corps
 Unity of command

Following are the advantages of division of labor EXCEPT:

 Economy of time
 Economy of capital goods
 Increase dependency of tasks
 Increase efficiency of workers

President of an advertising agency has introduced a new reward system to motivate the employees to
improve employee’s morale. President has performed the role as:

 Leader
 Liaison
 Entrepreneur
 Disturbance handler

In XYZ company, Umar has motivated staff to attend training sessions to adapt new technological changes.
Umar has performed the role as:

 Disturbance handler
 Leader
 Liaison
 Entrepreneur

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Charles Babbage (an English Mathematician) mainly focused his attention on ___________:

 Efficiencies of production
 Division of labor
 Unity of direction
 Centralization

The major contribution of the Industrial Revolution was the substitution of ______ for human power:

 Electricity
 Water power
 Machine power
 Critical thinking

All of the following are components of an organization EXCEPT:

 People
 Product
 Purpose
 Process

An approach that has contributed directly in decision making, scheduling, quality control is called:

 Quantitative approach
 Qualitative approach
 Scientific approach
 Administrative approach

When Usman decided to deploy employees to another department that is lagging behind in production, he is
acting in which of the following roles?

 Spokesperson
 Negotiator
 Leader
 Resource allocator

Which of the following is the scientific study of human mind that deals with emotional and mental processes?

 Economics
 Philosophy
 Psychology
 Anthropology

The marketing manager informed the marketing vice-president about the specific marketing strategies of new
product a competitor is planning to launch. Manager has performed role as a:

 Disseminator
 Monitor
 Liaison
 Spokesperson

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After the very first stage of establishment, organization generally indulge in:

 Planning
 Organizing
 Leading
 Controlling

Motivating workers is the task off which one of the following management functions?

 Assurance
 Organizing
 Leading
 Controlling

“Hiring individuals on the basis of what they know instead of who they know”
Which of the following concept of Bureaucracy theory is discussed in above statement?

 Framework of rules
 Formal selection
 Impersonality
 Hierarchy of authority

Which of the following is the most ancient management monument?

 Wall of China
 Egyptian Pyramid
 Taj Mahal
 Sydney Opera House

Which of the following is the ability to perform a specialized task that involves a certain method or process?

 Technical
 Conceptual
 Interpersonal
 Informational

The major purpose of Hawthorne studies is to examine the effect of various illuminations on _______:

 Security
 Social norms
 Group standards
 Worker productivity

All of the following titles are associated with first line managers EXCEPT:

 Foreman
 Supervisors
 Division managers
 Engineers

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According to the theory of Bureaucracy concept of “formal selection” is:

 Hiring and promoting employees on personal bases

 Employees are selected on the basis of their qualification and technical competence
 Directing individuals towards organizational task
 All of the given

The process of monitoring performance, comparing it with goals and correcting any significant deviations is
known as:

 Planning
 Leading
 Organizing
 Controlling

Which of the following refers to the duties that an employee is supposed to perform in the organization?

 Personal goals
 Job description
 Vision statement
 Mission statement

Technical skills are most required at which of the following level?

 Top level
 Middle level
 Executive level
 First line level

All levels of management between the supervisory level and the top level of the organization are termed as:

 Middle managers
 First line managers
 Supervisors
 Foreman

At the very first step of establishment, organization generally indulge in:

 Planning
 Organizing
 Leading
 Controlling

Which level of management makes decisions about activities such as acquiring other companies, investing in
research and development and building new plants?

 Top managers
 Middle managers
 First line managers
 Non-managerial employees

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“Determining organization goals and the means for achieving them” are the tasks of which one of the
following management functions?

 Organizing
 Planning
 Controlling
 Leading

Which of the following best describes the term “Total Quality Management”?

 Managing information in system

 Cost minimization
 Satisfying employees should be given more emphasis
 No compromise over product’s excellence

Inspiring people to be high performers is called:

 Controlling
 Leading
 Planning
 Organizing

Similar activities that are grouped together under one manager in an organization is called:

 Authority
 Unity of command
 Unity of direction
 Order

A person who works with and through other people by coordinating their work activities in order to
accomplish organizational goals is called:

 A manager
 An operations supervisor
 A supervisor of production work
 A very intelligent individual

Which one of the following management thinkers created a role classification system based on how managers
spend their time at work to describe a manager’s role?

 Peter Brabeck-Letmathe
 Abraham Maslow
 Andrea Jung
 Henry Mintzberg

The sales and marketing component of e-business is:

 Intranet
 Evolution
 E-commerce
 Extranet

Page 9 of 42
Mega environment that includes the attitudes, values, norms, beliefs, behaviors and associated demographic
trends that are characteristic of a given geographic area is called:

 The legal-political element

 The economic element
 The international element
 The socio-cultural element

Group think is tendency to seek agreement about an issue. Which one technique can be used to overcome
group think:

 Satisfying model
 Devil advocates
 Garbage can model
 Bounded rationality

Organizational culture is similar to an individual’s:

 Skills
 Personality
 Motivation
 Ability

When a firm advertises that it only uses recycled paper products, it is called:

 Meeting its social obligation

 Meeting social responsibilities
 Being socially responsive
 Paying attention to the bottom line

Communication should be:

 From Top to Bottom level

 From Bottom to top
 2 way
 None of the given option

In Step 6 of the decision-making process, each alternative is evaluated by appraising it against:

 Assessed values
 Subjective goals of the decision maker
 Criteria
 Implementation strategy

Primarily managers perform which of the following tasks?

 Selling
 Stocking merchandise
 Directing the activities of other people
 Ordering merchandise

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Discrepancy between existing and a desired state of affairs is called:

 Opportunity
 Solution
 Weakness
 Problem

Process, by which organizational people identify problems & assists in solving them, is known as:

 Problem solving
 Decision making
 Decision taking
 Job analysis

In the pyramid of levels of management, non-managerial staff is placed at/in:

 Top
 Middle
 Bottom
 None of the given options

Activities such as taking visitors to dinner and attending ribbon cutting ceremonies come under which of the
following management role?

 Leader
 Liaison
 Figurehead
 Negotiator

Which of the following decision-making technique is relatively simple and tends to rely heavily on previous
solutions?

 Non-programmed
 Linear
 Satisficing
 Programmed

According to Max Weber, organizations should have all of the following features to perform successfully
EXCEPT:

 Informal rules and procedures

 A well-defined hierarchy of authority
 Careers based on merit
 A clear division of labor

Tax revenues and government grants for a city are called its:

 Human resources
 Financial resources
 Physical resources
 Informational resources

Page 11 of 42
The people who work directly on a job or task and have no responsibility for overseeing the work of others are
called:

 First-line managers
 Middle managers
 Non managerial staff
 Supervisors

CEO of Siemens presents 10000 $ scholarships to the winners of Math, Science and Technology in a high
school. He is acting the role of:

 Figurehead
 Leader
 Spokesperson
 Liaison

Programmed decision making technique tends to rely on which of the following?

 The problem solver’s ability to think on his or her feet

 The development of a clear set of alternative solutions
 Previous solutions
 Identification of the actual problem

Which one of the following statements best describes the Social Responsiveness?

 Firm’s capacity to adapt to changing societal conditions

 Applying social criteria to investment decisions
 Firm’s obligation to meet its economic & legal responsibilities
 Firm’s obligation to pursue long term goals

Organizations can play role in addressing global environmental issues through all of the following ways
EXCEPT:

 Greening of management
 Depletion of natural resources
 Fulfilling their social obligation
 Avoiding industrial accidents

A city head of city bank congratulating a new group of management trainees. The role he is performing as:

 Leader
 Figurehead
 Liaison
 Spokesperson

All of the following are the components of job description of a manager, EXCEPT:

 Provide entertainment to customers

 Control the employee’s work
 Work with and through people
 Coordinate work activities

Page 12 of 42
Which one of the following fields describes the studies the behavior of individuals and groups within a political
environment including structuring of conflict, allocating power in an economic system and manipulating
power for individual:

 Anthropology
 Political Science
 Economics
 Philosophy

Deciding the compensation package of a newly hired individual is categorized as:

 Programmed decision
 Satisficing decision
 Ill-structured decision
 Non-programmed decision

Modern management techniques ensure the different firm to create competitive advantage through:

 People
 Process
 Machine
 Technology

The main constituencies of task environment are:

 Customers, Suppliers, Employees and Interest groups

 Customers, Interest groups, Suppliers and Competitors
 Competitors, Suppliers, Employees and Customers
 Employees, Interest groups and Government regulations

Which of the management task is the most important for supervisory manager?

 Planning
 Organizing
 Staffing
 Controlling

Non-programmed decisions are typically made under a condition of which of the following?

 Certainty
 Low levels of risk
 Uncertainty
 Reliability

When Shumaila is comparing actual sales figures with goals established earlier to see if her department met
the target, she is performing which of the following functions?

 Planning
 Organizing
 Leading
 Controlling

Page 13 of 42
Management makes a precise decision in:

 Risky situations
 Tentative situations
 Certain situations
 All of the given

Which one of the following skills is most essential to get most out of the people?

 Technical skill
 Human skill
 Conceptual skill
 Mechanical skill

Which of the following is a best approach to counter global market competition?

 Manufacturing low quality products

 Targeting elite class of the society
 Developing trade agreements
 Increasing profit margins by setting high prices

Which of the following statement best describes a Procedure?

 An explicit statement detailing exactly how to deal with a decision

 A series of interrelated sequential steps to respond to a structured problem
 A set of guidelines that channel a manager is thinking in dealing with a problem
 Allows a manager to use broad decision-making authority

The first step in decision-making process is which of the following?

 Developing decision criteria

 Allocating weights to the criteria
 Analyzing alternatives
 Identifying a problem

Skills such as engineering, accounting, computer and manufacturing are most important for which one of the
following levels of management?

 Top level
 Executive level
 Middle level
 First level

The general economic condition consists of all the following EXCEPT:

 Legislation
 Interest rates
 Change in disposable income
 Stock market fluctuations

Page 14 of 42
A form of business exchange in which two or more than two parties interact electronically is called:

 Intranet
 E-business
 E-commerce
 Extranet

Best alternative is selected when:

 Problem is identified
 All alternatives are identified
 Each alternative is assessed against criteria
 None of the given option

Which of the following means that you achieve the best possible balance among several goals?

 Sacrificing
 Satisfying
 Minimizing
 Optimizing

The best way to characterized management is to say that is:

 Part of economy
 An activity or process
 An overcrowded career fields
 One of the chief difficulties for most firms

Which of the following is NOT a valid assumption about rationality?

 The problem is clear and unambiguous

 A single well-defined goal is to be achieved
 Preferences are clear
 Preferences are constantly changing

In which one of the following views management’s social responsibility goes well beyond making of profits?

 Social view
 Socioeconomic view
 Classical view
 Traditional view

ABC company has head quarter in Australia and has units in Pakistan, Singapore and in India. This company is
operating on which of the following level of system?

 Global
 Corporate
 National
 Organizational

Page 15 of 42
Which of the following act as an unambiguous measure of the effectiveness of a business organization?

 Efficiency
 Employee satisfaction
 Increased revenues
 Profits

Which one of the following skills is used by call center managers when they spend much of their time
monitoring customer calls and giving employees feedback about how to improve their dialogue with customer
in the future?

 Technical
 Conceptual
 Situational
 Ethical

Which of the following is not output of system?

 Waste
 Workers
 Profit & losses
 Staff growth and satisfaction

All of the following options are the regional trading alliance EXCEPT:

 European Union
 North American Free Trade Agreement
 World Trade Organization
 Association of Southeast Asian Nations

Removing dissatisfying factors from a job would not necessarily make that job more

 Satisfying
 Dissatisfying
 Not Satisfying
 Not Dissatisfying

The first step in the decision-making process is which of the following?

 Developing decision criteria

 Allocating weights to the criteria
 Analyzing alternatives
 Identifying a problem

Concept of Division of Labor was proposed by

 Edward Deming
 Henri Fayol
 Adam Smith
 Frederic Taylor
Page 16 of 42
In a stitching unit of garment factory, supervisor has assigned different tasks like cutting, making collars,
stitching, pressing and packing to different workers to maximize efficiency in particular skill. He is practicing
which of the following management concept?

 Job rotation
 Job specialization
 Job specification
 Job description

The management function that defines goals and establishes strategies to achieve them is called:

 Planning
 Organizing
 Leading
 Controlling

A new commercial bank employee who notices stares from other officers because he does not wear
conservative work attire is experiencing what aspect of groups?

 Role conflict
 Norms
 Status separation
 Cohesiveness conflict

If a company provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be
said to be:

 Fulfilling its social obligation

 Socially aware
 Socially responsive
 Socially image conscious

In a shirt making firm, supervisor has assigned different tasks like cutting, making collars, stitching, pressing
and packing to different workers to maximize efficiency in particular skill. The firm is practicing the concept of?

 Job rotation
 Job specialization
 Job specification
 Job description

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?

 Liaison
 Disseminator
 Figure head
 Entrepreneur

Page 17 of 42
Amir is representing his company at the local Chamber of Commerce Annual Business Recognition luncheon.
He is performing which one of the following managerial roles?

 Negotiation
 Monitor
 Figurehead
 Liaison

XYZ Company has policy of employee’s job security, career progress and ensures that replacements are
available to fill vacancies. This company is practicing which of the following principle.

 Initiative
 Remuneration
 Esprit de corps
 Stability of tenure of personnel

How would you define the problem if all outcomes of every alternative are known?

 Bounded rationality
 Unbounded rationality
 Certainty
 Uncertainty

Which of the following approach focuses on a set of interrelated and interdependent parts arranged in a
manner that produces a unified whole?

 Process
 Function
 Systems
 Contingency

The __ of a strategy specifies the range of markets in which an organization will compete.

 Scope
 Distinctive Competency
 Resource deployment
 Effective strategy

All of the following are elements of management process EXCEPT

 Planning
 Leading
 Pricing
 Controlling

Which of the following statement best describes Social responsiveness?

 Firm’s capacity to adapt changing social condition

 Applying social criteria to investment decisions
 Firm’s obligation to meet its economic & legal responsibilities
 Firm’s obligation pursues long term goals that are good for society

Page 18 of 42
A guest at a hotel complains that the room hasn’t been thoroughly vacuumed. This is an event that occurs
occasionally and can be handled with a standardized, routine response. This would-be a:

 A programmed decision
 Ill-structured decisions
 Novel decisions
 Non-programmed decisions

Ahmed was acting as a disturbance handler in an organization. Therefore, he is performing which of the given
role?

 Interpersonal
 Informational
 Decisional
 All of the given options

In Blake and Mouton’s Managerial Grid which of the following style is more focused on efficiency in operations
and bear minimum degree of interference of human element

 Task management
 Team management
 Impoverished management
 Country club management

All of the following are main features of Gantt Chart Except:

 Planning
 Controlling
 Hiring
 Scheduling

Environmental scanning establishes the basis for ____, which are predictions of outcomes.

 Scenarios
 Projects
 Budgets
 Forecasts

Low level management has complete authority to make decisions in case of:

 Centralization
 Decentralization
 Scalar Chain
 Order

Which of the following is not part of leading function?

 Influencing function
 Taking the corrective action
 Motivating subordinates
 Dealing employee behavior issues

Page 19 of 42
Humans inhale oxygen out of the environment and exhale carbon dioxide into the environment. This is an
example of:

 Close system
 Open system
 Hybrid system
 None of the given

The idea that employees should also share the profit of organization was given by:

 Frederick Taylor
 Robert Owen
 Charles Babbage
 W. Edwards Deming

The management process includes all of the following management functions EXCEPT

 Planning
 Innovating
 Leading
 Organizing

The purpose to build the China Wall was

 To make their territories clear

 To defend their own area
 To protect the Silk Road
 All of the given

In quantitative forecasting, which one of following techniques uses historical data to develop forecast for the
future?

 Scenario analysis
 Time series method
 Econometric model
 Sales force composite

Following are the disadvantages of Division of labor Except:

 Increase monotony in Job

 Increase interdependency in tasks
 Increase in competencies of workers
 Increase the risk of unemployment

An ABC company has short span of control. Workers receive orders from only their own supervisor for daily
activities and also report to their own supervisor at the end of day. This principal is called

 Authority
 Scalar chain
 Unity of direction
 Unity of Command

Page 20 of 42
Organization that works with ____ are more dynamic, listen to needs of its customers take feedback from its
environment and change according to the market trends

 Open system
 Close system
 Hybrid system
 All of the given

Estimated cost of Sydney Opera House was:

 $7 Million
 $102 Million
 $95 Million
 $60 Million

The Egyptian pyramids were constructed in ____ years.

 10 years
 15 years
 30 years
 20 years

All of the assumptions are related to theory Y EXCEPT

 Work is natural
 Work avoiding
 Capable of self-direction
 Can make Good decisions

Ali is a manager in a multinational organization. He believes that the employees of the company are lazy and
do not have much ambition. Ali can be classed as ___ manager based on the perspectives of Douglas
McGregor.

 Theory Y
 Bureaucratic
 Theory X
 Administrative

All of the following assumptions are related to theory X EXCEPT:

 Need to Control
 Workers seek security
 Capable of self-direction
 Avoid self-Responsibility

Primarily managers perform which of the following tasks?

 Selling
 Stocking merchandise
 Directing the activities of other people
 Ordering merchandise

Page 21 of 42
Associations of different nations like European Union & NAFTA have been established to:

 Share the armies of each other

 Stabilize the political systems
 Promote open trade among nations
 All of the given options

Pakistan Federal government has passed disabilities act of 2005 to protect rights of disable persons and to give
them flexibility in job. This comes under which of the following environmental sub context

 Economic
 Political/legal
 Sociocultural
 Technological

which one of the following activities would be included in the controlling function of management?

 Explaining routines
 Determining organizational goals
 Monitoring progress towards goal achievement
 Motivating employees

A culture where employees show a great deal of respect for authority and where titles and ranks are
important would be an example of which dimension of national culture?

 Individualism versus collectivism

 Power distance
 Uncertainty avoidance
 Short- versus long-term orientation

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 ____.

 Legislators
 Pressure groups
 Employees
 Lawyers

Which of the following is the accurate sequence of management functions performed by a manager?

 Planning, controlling, leading, organizing

 Planning, organizing, leading, controlling
 Planning, leading, organizing, controlling
 Planning, organizing, controlling, leading

All of the following are associated with conceptual skills for top level managers EXCEPT:

 Able to think complex situation

 Visualize organization environment
 Proficient in specialized field
 Understand communication in sub units

Page 22 of 42
XYZ Company has implemented the educational programs in public primary schools to improve children
literacy and decision-making skills. This represents that company is

 Meeting its social obligation

 Meeting social responsibilities
 Socially responsible
 Meeting its social commitment

Each subordinate should report to one and only one superior is called:

 Authority
 Unity of command
 Unity of direction
 Order

Interpersonal and communication skills are often referred to as:

 Technical skills
 Conceptual skills
 People skills
 Planning skills

Fredrick Taylor was the student of:

 Robert Owen
 Charles Babbage
 W. Edwards Deming
 Henry Towne

Which one of the following scientists is most closely associated with the Hawthorne studies?

 Adams
 Mayo
 Lawler
 Barnard

In Pakistan CBR has introduced some new rules of income tax and sales tax and its mandatory for
organizations to follow those laws. This environmental condition is known as

 Economic
 Political/legal
 Socio cultural
 Technological

Nestle and ICI have taken steps to address human rights issues in their overseas factories. This represent that
these companies have:

 Social obligation
 Social Screening
 Socially responsibility
 Social responsiveness

Page 23 of 42
In textile mill, plant manager may telephone a yarn and wool supplier to make sure the amount of inventory
available for next month. This role is known as

 Leader
 Figurehead
 Spokesperson
 Liaison

What type of an organization actively creates, acquires, and transfers knowledge within itself and is able to
modify its behavior to reflect new knowledge?

 Enlightened organization
 Conceptualized organization
 Learning organization
 Modern organization

If a company is paying minimum wage, when necessary, and applying the minimum standard to laws, such as
affirmative action, it would be said to have fulfilled its:

 Social obligation
 Social responsibility
 Social responsiveness
 Social expectation

Decision making is not perfectly rational due to which of the following reason(s)?

 Inadequate information
 Time and cost factors
 Limited human memory
 All of the given

The organization that has developed the capacity to continuously learn, adapt, and change is called:

 Virtual organization
 Learning organization
 Traditional organization
 Bureaucratic organization

The people who work under the first line managers are often called by all of following names EXCEPT

 Non managers
 Supervisors
 Skilled workers
 Semi-skilled workers

The process through which raw materials changed into consumer products is termed as:

 Development process
 Transformation process
 Marketing process
 Procurement process

Page 24 of 42
In XYZ company employee satisfaction is decreasing due to some technological changes in business processes.
HR manager has conduct sessions with staff to motivate them and to give them confidence. Manager has
performed the function of

 Planning
 Organizing
 Leading
 Controlling

XYZ Company encourage its employees to bring creativity and innovation in their work and give them
confidence to make their own work plan. This company is practicing which of the following principle

 Equity
 Initiative
 Esprit de corps
 Unity of Command

The organization which has no interaction with its external environment is called:

 Open system
 Closed system
 Non-interactive system
 Moderated system

An appropriate managerial behavior in a given situation that depends on a wide variety of elements, is called:

 Open system
 Contingency perspective
 Entropy
 Quantitative perspective

Idea of TQM was espoused by which one of the following quality experts?

 Adam Smith
 Edward Deming
 Henri Fayol
 Frederick Taylor

Which of the following BEST describes directional plans?

 Flexible plans that set out general guidelines

 Stringent plans that establish specific directions
 Formal plans that provide the directions of how to assemble the product
 General plans that allow the workers to change the schedule of production

Selecting an alternative in the decision-making process is accomplished by:

 Choosing the alternative with the highest score

 Choosing the One You Like Best
 Selecting the alternative that has the lowest price
 Selecting the alternative that is the most reliable

Page 25 of 42
The belief that businesses should be responsible because such actions are right for their own sake is known as
which argument for social responsibility?

 Public expectation
 Ethical obligation
 Public image
 Discouragement of government regulation

Investigating and hearing discussions about competitor’s planned upcoming marketing programs at a banquet.
This role is described as

 Monitor
 Disseminator
 Liaison
 Spokesperson

A human resource manager attending a local Society meeting for Human Resource Management would be
functioning in which of the following role?

 Informational
 Leader
 Liaison
 Disseminator

Which one of the following types of managers establish goals, overall strategies and operating policies of an
organization?

 Top manager
 Middle manager
 First-line manager
 Non-managerial employee

The three skills technical, human, and conceptual required for managers were proposed by:

 Henri Fayol
 Robert L. Katz
 Frederic Taylor
 Edward Deming

When Ali decided to take corrective actions and provided damage control, he has performed in which of the
following roles?

 Spokesperson
 Figure head
 Negotiator
 Disturbance handler

Page 26 of 42
Which of the following is part of the 14 principles of management identified by Henri Fayol?

 Scalar chain
 Innovation
 Efficiency
 Motivation

Standard charter when offered new feature of online funds transfer. It represents what factor to the other
Pakistan’s banks in its specific environment?

 Customers
 Suppliers
 Competitors
 Public pressure groups

In a football team specific positions that are played by different players to utilize and maximize their individual
skills is called

 Job description
 Job specification
 Departmentalization
 Job Specialization

Which of the following is a cultural dimension in which people expect others in their group to look after them
and protect them when they are in trouble?

 Power distance
 Collectivism
 Short- versus long-term orientation
 Uncertainty avoidance

Which of the following is called output of a system?

 Services
 Material
 Human
 Information Resources

A learning organization develops the capability to:

 Add new training programs

 Accept conventional wisdom of the industry
 Continuously learn, adapt and change
 Work in teams

Which of the following approaches to ethical decision-making focuses on the consequences of an action?

 Utilitarian approach
 Universalism approach
 Moral rights approach
 Justice approach

Page 27 of 42
Amna has been given goals related to the rollout and sales of her department. Her success at implementing
the strategy will be assessed by comparing actual performance against the goals. This comparison is known as:

 Planning
 Organizing
 Implementing
 Controlling

Lower-level managers typically confront which type of decision making?

 Unique
 Non-routine
 Programmed
 Non-programmed

The quantitative approach has contributed directly in the areas of:

 Planning and control

 Control and leading
 Organizing and control
 Planning and leading

Global competition, accelerated product development by competitors, and increased demands by customers
for better service have encouraged organizations to become more ____.

 Organic
 Mechanistic
 Technologically pure
 Task oriented

Interest rates, inflation rates, and stock market indexes are all examples of which of the following factors of an
organization's general environment?

 Economic
 Political
 Social
 Technological

All of the following are disadvantages of group decision making EXCEPT:

 Time consuming
 Group-think
 Increased number of alternatives
 Disagreements

All of the following’s titles are associated with first line managers EXCEPT:

 Foremen
 Supervisors
 Line managers
 Division manager

Page 28 of 42
Which of the following is a cultural measure of the degree to which people will tolerate risk and
unconventional behavior?

 Power distance
 Uncertainty avoidance
 Short- versus long-term orientation
 Individualism versus collectivism

Cultivating a learning culture where organizational members systematically gather knowledge and share it
with others in the organization so as to achieve better performance is called:

 Knowledge management
 Technical management
 Software management
 Systems management

In Maslow's need hierarchy, status is an example of what type of need?

 Physiological
 Esteem
 Safety
 Social

All of the following ideas were proposed by Charles Babbage EXCEPT:

 Costing
 Division of labor
 Profit sharing plans
 Production efficiency

Managers who are responsible for making organization-wide decisions and establishing the plans and goals
that affect the entire organization are called:

 First-line managers
 Top managers
 Production managers
 Research managers

Which of the following does not belong to criticism of Weber’s bureaucracy model?

 Impersonal application of control

 Emphasis on strict division of labor
 Adherence to formal rules and procedures
 Career advancement process to be based on merit

Providing fair wages to workers and giving reward based on performance and experience is called

 Equity
 Initiative
 Esprit de corps
 Remuneration

Page 29 of 42
____, identifies the order of activities to be performed in order to achieve a particular goal.

 Budgeting
 Linear programming
 Break-even analysis
 Scheduling

Who is credited for the theory of motivation based on the hierarchy of needs?

 Abraham Maslow
 Douglas McGregor
 Henri Fayol
 Mary Parker Follett

Razaq is explaining a company policy to new employees. He is performing which one of the following roles?

 Decisional
 Interpersonal
 Organizational
 Informational

All of the following are characteristics of total quality management EXCEPT:

 Intense focus on the competition

 Concern for continual improvement
 Improvement in quality of everything the organization does
 Accurate measurement

Asma, a new manager at XYZ Inc. primarily worries about assembling and coordinating the human, financial,
physical, and other resources needed to achieve her goals. Which function is Asma primarily concerned
about?

 Organizing
 Controlling
 Planning
 Leading

Which of the following interpersonal role emphasizes the contacts, that a manager has with those outside the
formal authority chain of command?

 The Liaison Role

 The Leader Role
 The Figurehead Role
 The Spokesman Role

Knowledge management involves encouraging the members of the organization to:

 Improve the educational level of the average employee

 Develop new training programs to help new employees
 Develop a corporate university
 Systematically gather information and share it with others

Page 30 of 42
Strategies are drafted in order to achieve goals. This is a part of:

 Planning
 Organizing
 Leading
 Controlling

Which managers are required to have conceptual and technical skills in equal percentage?

 First line managers

 Middle managers
 Top managers
 None managers

The assignment of new or additional responsibilities to a subordinate is called:

 Coordination
 Specialization
 Delegation
 Span of control

Which of the following statement best describes Social Obligation?

 Firm’s capacity to adapt changing social condition

 Applying social criteria to investment decisions
 Firm’s obligation to meet its economic & legal responsibilities
 Firm’s obligation pursues long term goals that are good for society

Which one of the following is an example of organization?

 Hospitals
 Colleges
 Factories
 All of the given

Group decision making is considered effective and has following characteristics EXCEPT:

 Diversity of alternative is available

 Groups are perceived as more legitimate
 Maximize the chance of solution acceptance
 Obstruct creativity and innovation

What is the best term to describe the process of attempting to influence other people to attain the
organization's objectives?

 Planning
 Organizing
 Leading
 Controlling

Page 31 of 42
Plant managers come under which of following management levels?

 First-line managers
 Non-managerial employees
 Middle managers
 Top managers

Dell Company sells the variety of products like computers, laptops, accessories over the internet. Dell is
engaged in

 Intranet
 Extranet
 E-commerce
 E- Business

The degree to which decision making is confined at a single point in an organization is described as ____.

 Unity of command
 Chain of command
 Span of management
 Centralization

When manager avoids the rational decision-making model and find ways to satisfice themselves, they are
following which of the following concept?

 Jurisprudence
 Bounded rationality
 Least-squared exemptions
 Self-motivated decisions

Which of the following is an explicit statement that tells a manager what he or she can or cannot do?

 Procedure
 Policy
 Rule
 Solution

A manager transmits the information outside the organization. He is performing which of the following role?

 Spokesperson
 Representative
 Disseminator
 Agent

Delphi method is used for which of the following forecasts?

 Time series forecast

 Judgmental forecast
 Associative forecast
 All of the given

Page 32 of 42
All of the following are managerial roles identified in Mintzberg’s Model EXCEPT:

 Informational
 Interpersonal
 Functional
 Decisional

Executive vice president, president, managing director, chief operating officer, chief executive officer, or
chairman of the board are positions associated with which of the following levels of management?

 Team leaders
 Middle managers
 First-line managers
 Top managers

Which of the following is the set of practices aimed at discovering and harnessing an organization's intellectual
resources?

 Knowledge management
 Globalization
 The Internet
 Speed and quality

Power and authority that are concentrated at the upper levels of the organization as much as possible, is
called:

 Authority
 Unity of command
 Unity of direction
 Centralization

An area in the environment that if exploited may generate high performance is called organizational:

 Strength
 Weakness
 Opportunity
 Threat

Which ethical approach is guided by principle of “greatest good for the greatest number of people”?

 Moral-right approach
 Individual approach
 Utilitarian approach
 Justice approach

During _____ stage, organizational activities are analyzed for changing conditions that indicate problems:

 Scanning
 Categorization
 Diagnosis
 Implementation

Page 33 of 42
Which one of the following ethical approaches exemplifies the belief that every person has fundamental
human rights that should be respected as well as protected?

 Justice approach
 Rights approach
 Individualism approach
 Utilitarianism approach

Which of the following statement best describes “Outcome Orientation”?

 The degree to which employees are expected to exhibit precision, analysis, and attention to detail
 The degree to which employees are encouraged for innovation and risk taking
 The degree to which managers’ focus on results rather on techniques and processes
 The degree to which managers’ focus on processes and techniques not results

Which of the following characteristics best describe the open system organization?

 Dynamic and listen to customers need

 Takes feedback from its environment
 Change according to market trends
 All of the given

Which of the following view is concerned with respecting and protecting individual liberties and privileges
such as the rights to privacy, free speech and safety of life?

 Utilitarian view
 Rights view
 Justice view
 Social contracts view

______ is the administration of business practices to create the highest level of efficiency possible within an
organization. It is concerned with converting materials and labor into goods services:

 Operations research
 Operations management

Which of the following statements BEST describes an organization’s supplier?

 Main customers of the organization

 Governments that pass the laws the organization must follow
 Located close to the buying organization
 Organizations that provide materials and equipment

The basis on which jobs are grouped together is called ________:

 Specialization
 Formalization
 Coordination
 Departmentalization

Page 34 of 42
Living Organisms take substances from their environment such as food and air and return other substances
environment. This is an example of:

 Close System
 Hybrid System
 Open System
 None of Above

Which of the following is the accountability for the achievement of objectives, the use of resources, and the
adherence to organizational policy?

 Power
 Responsibility
 Authority
 Planning

Which is the most common cause of business failure?

 Insufficient Capital
 Unstable market
 Insufficient experience
 Poor Entrepreneurship

Which one of the following items best reflects the dimension of different cultures that exemplifies the extent
to which individuals expect a hierarchical structure?

 Uncertainty avoidance
 Power distance
 Masculinity/femininity
 Long-term/short-term orientation

Which of the following organization is rigidly controlled and efficient?

 Organic
 Mechanistic
 Horizontal
 Learning

SWOT analysis divides organizational strength into two categories; Common strength and______________.

 Strategic imitation
 Competitive Parity
 Distinctive Competencies
 Threats

A human resource manager is attending a local society meeting for Human Resource Management
department. He is performing which one of the following one?

 Informational
 Disseminator
Page 35 of 42
  Liaison
 Leader

In which of the following situations managers often seek solutions that are satisfactory and sufficient?

 Optimizing
 Satisficing
 Rationalizing
 Incremental

Which management theory focuses on managing the total organization?

 Scientific management
 Administrative management
 Behavioral management
 Quantitative management

Usually, high level managers are involved in making decisions that are novel and nonrecurring in nature, these
types of decisions are known as:

 Uncertainty
 Programmed decision
 Non-Programmed decision
 Bounded rationality

Which of the following early advocates of organizational behavior was the first to argue that organization
were open systems?

 Robert Owens
 Hugo Munsterberg
 Mary Parker Follett
 Chester Bernard

Transformation process within a system transfer:

 Raw material into inputs

 Inputs into raw materials
 Output into finished goods
 Inputs into finished goods

The Head chef of a well-known restaurant is greeting customers at the entrance of restaurant. The role he is
performing as:

 Figurehead
 Liaison
 Leader
 Spokesperson

Page 36 of 42
Concern for the employee motivation is most likely associated with which of the following management
approach?

 Bureaucracy
 Organizational behavior
 Scientific management
 Systems

Feedback of _____ is necessary to improve the quality of products and services:

 Customers
 Employees
 Investors
 All of the given options

Management science and operations management are the branches of:

 Knowledge management
 Total Quality management
 Marketing management
 Quantitative management

In which one of the following models, manager’s ability to make totally rational decision is restricted by
cognitive capacity and time constraints?

 Objective rationality
 Bounded rationality
 Jurisprudence
 Least-squared assumption

Labor unions, employees, suppliers, customers, clients and public interest groups are all examples of:

 Management constituencies
 Stockholders
 Stakeholders
 Business owners

Contemporary management practices that emphasize work groups as a means to increasing productivity can
be traced to which of the following authors?

 Robert Owen
 Mary Parker Follett
 Chester Barnard
 Hugo Munsterberg

Page 37 of 42
In which one of the following models, managers seek alternatives until they find one that is satisfactory but
not optimal?

 Behavioral
 Satisficing
 Incremental
 Bounded rationality

Which one of the following is the disadvantage of group decision making?

 Group synergy
 Group-think
 Group wave
 None of the given option

Which of the following is labeled as an informational role played by a manager?

 Figure head
 Liaison
 Negotiator
 Spokesperson

Time and motion study techniques were firstly introduced by which one of the following?

 Fredrick Taylor
 Henri Fayol
 Max Weber
 Charles Babbage

All of the following are characteristics of closed system EXCEPT:

 Takes little feedback from its environment

 It is a dynamic system
 Does not follow the market trends
 It is not a dynamic system

Which one of the following statements best describes about the Social Obligation?

 Firm’s capacity to adapt changing social condition

 Applying social criteria to investment decisions
 Firm’s capacity to give back to society that benefits
 Firm’s capacity to pursue long term projects

For which of the following reasons, group decision making is highly criticized?

 Ample available information

 Large number of alternatives
 Dominated by individuals
 Rapid decision making
Page 38 of 42
Which of the following alliance is developed among American Countries?

 EU
 ASEAN
 NAFTA
 All of the given

Which one of the following factors is considered to be part of internal environment of an organization?

 Government
 Competitors
 Products
 Markets

In Restaurant kitchen, specific meal preparation tasks done by the different chefs and workers in order to
bring quality in food and to save time, is known as:

 Job specialization
 Job Specification
 Job Rotation
 Job Description

All of the following are forces comes under general environment of an organization EXCEPT:

 Cultural forces
 Technological forces
 Ecosystem
 Competitive forces

Which of the following styles is suitable to respond irrational situations?

 Smooth decision-making style

 Programmed decision making style
 Non-Programmed decision-making style
 Opportunity decision making style

Decisions should be made after a thorough:

 Action
 Implementation
 Investigation
 Proceeding

An organization’s specific environment:

 Is unique and changes with conditions

 Is the same regardless of the organization’s age
 Is determined by the top level of management
 Is quantified to determine its existence
Page 39 of 42
Which of the following refers to continuous learning that guarantees achievement & sustainability of any firm
or business?

 Bureaucratic management
 Knowledge management
 Operations management
 Contingency management

The emerging trend of home shopping in developed countries s due to which of the following environmental
conditions?

 Global
 Political/Legal
 Socio Cultural
 Technological

Organizations that are good at developing relevant capabilities to respond to a changing environment known
as:

 Conceptualized organizations
 Modern managements
 Learning organizations
 Enlightened organizations

The behaviorist Mary parker Follett referred to integration as a process in which:

 Managers use their directive might to solve conflicts

 Employees use their own institution to solve conflicts
 Managers and employees work together to solve conflicts
 Conflicts are ignored

The focus of bureaucracy is on:

 Culture of organization
 Structure of organization
 Capital of organization
 Well-being of society

Nature of identified problem is examined and its causes are studied under which of the following stage of
decision making model?

 Scanning stage
 Diagnosis stage
 Categorization stage
 Implementation stage

Page 40 of 42
An approach focusing on systematic study of work methods to improve the work efficiently is called:

 Pre-classical projects
 Scientific management
 Bureaucratic management
 Administrative management

It is assumed that a perfectly rational decision maker:

 Does not follow rational assumption

 Does not consider value maximizing as an objective
 Would be objective and logical
 Offers inconsistent decisions

Most of the countries in the world are moving towards globalization due to all of following reasons expect?

 For free market economy

 For liberalization in trade
 To increase efficiency
 Refutation of economic power

Which of the following problems requires an immediate action to resolve?

 Opportunity problems
 Crisis problems
 Normative problem
 Non-crisis problem

Well-structured problems are usually handled by which of the following type of decisions?

 Non-programmed decisions
 Novel decisions
 Programmed decisions
 Lll-structured decisions

Which of the following describe(s) a global marketplace?

 The entire world is a marketplace

 National borders are irrelevant
 The potential for organizations to grow expands dramatically
 All of these given option

Which of the following is not a purpose of world trade organization (WTO)?

 Promote global trade

 Reduce the wasteful activates
 Promote regional trade with favored nations
 All of the given

Page 41 of 42
Which of the following is responsible for quality objective?

 Top level management

 Middle level management
 Frontline management
 All of the given option

Page 42 of 42