Management Fundamentals

Paper 1 – Fundamentals of Organization and Management (Syllabus 2008)
MULTIPLE CHOICE QUESTIONS
1. Who is a person who advanced early scientific management principles?

(a) Weber
(b) Taylor
(c) Vest
(d) Fayol
2. A reporting relationship in which an employee receives orders from, and reports to, only one
supervisor is known as:
(a) Line of authority.
(b) Centralization.
(c) Unity of direction.
(d) Unity of command.
3. Which worked on administrative management theory:

I. Fayol
II. Parker
III. Weber
(a) I and III
(b) II and III
(c) none of these worked on administrative management theory
(d) I, II, and III
4. ________ is the study of how to create an organizational structure that leads to high efficiency
and effectiveness.
(a) Scientific management
(b) Job specialization
(c) Administrative management
(d) Allocation management
5. _______ is the singleness of purpose that makes possible the creation of one plan of action
to guide managers in resource allocations.
(a) Unity of direction
(b) Unity of command
(c) Unity of authority
(d) Unity of resources
6. Which is an organizational - environmental theory?

I. The open-systems view
II. Contingency theory
III. The Theory of Bureaucracy
IV. Theory Z
(a) I and II
(b) I, III, and IV
(c) II, III, and IV
(d) I, II, and III
7. Theory __ is based on positive assumptions about workers.

(a) Z
(b) X
(c) Y
(d) C
8. The _______ theory states a manager's choice of organizational structures and control systems
depends on characteristics of the external environment.
(a) Mechanistic
(b) Management science
(c) Organic
(d) Contingency
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9. Which is not one of Fayol's principles:

(a) Authority and responsibility
(b) Line of authority
(c) Globalization
(d) Unity of command
10. Which is not a management science theory:

(a) Operations Management
(b) TQM
(c) MIS
(d) None of these
11. Theory __ states that the average employee is lazy and will try to do as little as possible.
(a) X
(b) Y
(c) Z
(d) None
12. In recent history, workers have felt that they should be empowered in the workplace. This is
an example of
(a) social influences
(b) political influences
(c) technological influences
(d) global influences
13. Scientific management, administrative management, and bureaucratic management belong to

the management viewpoint known as the
(a) classical perspective
(b) behavioral perspective
(c) quantitative perspective
(d) systems perspective
14. The theorist that advocated standard methodology for doing a task and suggested
that workers were motivated by pay according to output (piecework) is
(a) Elton Mayo
(b) Max Weber
(c) Frederick Taylor
(d) Henri Fayol
15. As a Theory Y manager, you believe that your employees

(a) dislike work and will avoid it if possible.
(b) need a hierarchy of authority and lots of rules and regulations.
(c) should be trained to standard methodology in all their tasks.
(d) are self-motivated and self-directed toward achieving organizational goals.
16. What does the case, ‘Scientific management in action’ illustrate?

(a) Scientific management theory is an outdated management theory.
(b) Managers should apply classical management theory to their everyday work if they want to be
more effective.
(c) A traditional approach to management can be successfully applied to the problems of a modern
organisation.
(d) Quality usually suffers as productivity increases.
17. According to Frederick Taylor, who was to blame for the inefficiency in organisations?
(a) The unions.
(b) The managers.
(c) The organisation as a whole.
(d) The workers
18. Which of these was not an integral part of scientific management?

(a) Differential pay rates.
(b) Worker control of production.
(c) Systematic selection of workers.

(d) Work specialisation
19. Which of the following is not a valid criticism of scientific management theory?
(a) Increases in pay for workers were not proportional to increases in productivity.
(b) Worker discretion over the execution of the task was reduced.
(c) Jobs became too complex for workers to handle.
(d) Fear of redundancy was increased.
20. Which of the following is not a fundamental characteristics of Bureaucratic Management?

(a) Specialisation of labour
(b) Well defined hierarchy
(c) Striving to be a ‘first-class worker’
(d) Formal rules and regulations.
21. Which of these statements concerning Weber’s concept of Bureaucracy is not correct?
(a) It is based on rules and procedures rather than personal preference and judgement.
(b) It is still a relevant concept in today’s organisation.
(c) It has acquired a negative reputation for inefficiency and rigidity.
(d) It rejects rational approaches to managing organizations
22. Which of the following was an early key management idea, pre-dating the work of Frederick Taylor
and Max Weber?
(b) Rule-by-the-office.
(c) Work specialisation.
(d) Classical management theory.
23. Which of the following was the key aim of scientific management?
(a) To increase worker control of production.
(b) To increase productivity.
(c) To decrease absenteeism.
(d) To develop time-and-motion studies.
24. Which of the following is NOT a key concept associated with scientific management?
(a) One best way.
(b) Formalisation.
(c) Time-and-motion studies.
(d) Systematic selection.
25. Contingency theory suggests which of the following as a limitation of classical management
theory?
(a) Management approaches need to take into account the informal social life of workers at work.
(b) Management approaches need to take into account complexity and instability in the environment.
(c) Everything is contingent upon the workers in an organisation.
(d) Management practices need to recognise stability in the environment.
26. Which of the following is NOT true of scientific management?

(a) It gave rise to the modern operations research.
(b) It raises questions as to how rewards from increased productivity should be distributed.
(c) It is outdated as a theory as it cannot be applied to today’s modern organisations.
(d) Managers are chosen for their intellectual ability and rationality.
27. Which of the following does NOT describe a problem with scientific management?
(a) Productivity increases may not be reflected in workers’ pay.
(b) It is better suited to complex jobs.
(c) Improvement is not necessarily maintainable.
(d) It is better suited to simple jobs.
28. Scientific management gave rise to which of the following modern disciplines?
(a) Theory Y.
(b) Behavioural science.
(c) Socio-technical systems.
(d) Operations research.
29. Which of the following men’s writings are associated with bureaucracy?
(a) Max Weber.
(b) Henri Fayol.
(c) Frederick Taylor.
(d) Douglas McGregor.
30. According to Fayol’s 14 principles of management, ‘esprit de corps’ refers to which of the
following?
(a) Being treated fairly and kindly.
(b) Spirit of the corporation.
(c) Team work and harmony.
(d) Spirit of work.
31. Which of the following images best captures how classical management views the organisation?
(a) As an organism.
(b) As a human being.
(c) As a machine.
(d) As a wheel in an engine.
32. Which of the following is the ‘odd one out’?

(a) Management science.
(b) Management accounting.
(c) Operations management.
(d) Systems management.
33. In general, Theory Y and Theory X belong to which of the following perspectives?
(a) Socio-political.
(b) Bureaucratic.
(c) Cultural.
(d) None of these.
34. Which of the following is NOT part of the mix of behavioural sciences informing organisation
behaviours?
(a) Social psychology.
(b) Organisational theory.
(c) Systems theory.
(d) Psychology.
35. The behavioural science approaches add which of the following emphases to management?
(a) The study of people who satisfy social needs at work and how informal as well as formal
organisation affects behaviour.
(b) Management as a science and developing techniques to control behaviour.
(c) The scientific study of human behaviour and developing behavioural techniques.
(d) None of these.
36.
ystems theory takes into account which of the following?
(a) The whole system of anything.
(b) Every system involving humans.
(d) Open systems.
37.
hich of the following phrases is closely connected to contingency theory?
(a) No one best way.
(b) Today’s ideas are tomorrow’s history.
(c) One best way.
(d) Universal ideas of good management.
38. Which of the following is not a way of overcoming resistance to change?

(a) Incentives
(b) Bullying and harassing people

(c) Education and communication
(d) Coercion
39. Which of the following is the reason for resistance to change?

(a) Obsolecense of skills
(b) Fear of economic loss
(c) Fear of unknown
(d) All of the above.
40. Changes which take place gradually without any resistance are
(a) Evolutionary
(b) Revolutionery
(c) Planned
(d) Unplanned.
41. Which of the following is true with people with a Type A personality?
(a) They are generally content with their place in the world.
(b) They generally fell little need to discuss their achievements
(c) They are easy going and relaxed and that’s why take no tension of work.
(d) They have an intense desire to achieve and are extremely competitive
42. The difference between a company’s mission statement and the concept of strategic vision is
that
(a) The mission statement lays out the desire to make a profit, whereas the strategic vision addresses
what strategy the company will employ in trying to make a profit.
(b) A mission statement deals with "where we are headed " whereas a strategic vision provides the
critical answer to "how will we get there?"
(c) A mission deals with what a company is trying to do and a vision concerns what a company ought
to do.
(d) A mission statement typically identifies what the company's products or services are (what we do)
and the customers and markets it serves (why we are here), whereas the focus of a strategic vision is on
"where we are going and why."
43. The management process functions consist of

(a) Planning, organising, staffing and directing
(b) Planning, organising, leading and directing
(c) Planning, organising, leading and staffing
(d) Planning, organizing, leading and controlling.
44. Which of the following is not Kurt Lewin’s famous 3 stage perspective model of change?
(a) Unfreezing current attitudes
(b) Refreezing attitudes at new level
(c) Moving to a new level
(d) Melting resistance.
45. Forcefield analysis suggests that before a manager embarks on a change strategy he should
properly identify and evaluate ________ and ____________ .
(a) Positive forces, negative changes
(b) Driving forces, restraining forces
(c) External forces, internal forces
(d) Strong forces, weak forces.
46. Which of the following is not an organ of company management?

(a) Officer
(b) Board of Directors
(c) Managing Director
(d) Secretary.
47. Disqualifications from becoming a Director of a company is

(a) Insolvency
(b) Fraudulent, declared by court
(c) Unsound mind
48. The Central Government may appoint some directors for a period of ___________ in case of
mismanagement of company affairs
(a) 3 and half yrs
(b) Not more than 3 yrs
(c) 5 yrs
(d) Not more than 2 yrs.
49. A director has to hold a minimum qualifying amount of shares of ` ___________ within ______
months after his appointment as director.
(a) 5000, 2
(b) 50,000, 2
(c) 5000, 5
(d) 5000, 3.
50. The maximum limit of holding Directorship in public companies is

(a) 11 companies
(b) 12 companies
(c) 14 companies
(d) 15 companies.
51. A person cannot be appointed as a Managing Director for more than ________ at a time.
(a) 5 yrs
(b) 6 yrs
(c) 7 yrs
(d) 4 yrs
52. Which of the following is a characteristic of a Public sector organization?

(a) Private ownership
(b) Primary profit making motive
(c) Strict financial control by Government
(d) None of the above.
53. Which of the following industries does not come within the purview of 1991 Industrial Policy for
reservation for public sector?
(a) Handicrafts
(b) Atomic energy
(c) Arms Ammunitions
(d) Coal and lignite.
54. Planning is based on:

(a) decision-making,
(b) forecasting,
(c) staffing,
(d) organising
[Hint: Planning is setting objectives and deciding how to accomplish them.]
55. Planning do not consider:

(a) choice,
(b) communication,
(c) machine,
(d) coordination.
56. Strategic plans are:

(a) single use plans,
(b) long range plans,
(c) for lower management levels.

(d) standing plans
57. Short-term plans guides:

(a) lower level management,
(b) bridges gap between past and present
(c) forecasting
(d) environmental factors
58. Participating in the planning process makes:

(a) effective planning,
(b) cost reduction,
(c) increase output.
(d) perception of opportunities
59. Negative attitude and Commitment are not the basis for:
(b) environment,
(c) resistance.
(d) technology
60. Planning is:

(a) looking ahead,
(b) guiding people,
(c) delegation of authority,
(d) fundamentals of staffing
61. Single use plans are:

(a) applicable in non-recurring situation,
(b) deals with recurring situations,
(c) budgets,
(d) strategic
62. Programs are a complex of:

(a) budgets,
(b) goals & policies,
(c) rules,
[Hint: Programs are complex of goals, policies, rules, procedures, tasks.]
63. The limitations of planning are:

(a) proper environment,
(b) planning premises,
(c) wrong information,
(d) feasibility.
[Hint: Wrong information and time involved are the limitations of planning.]
64. What are the three levels of planning?

(a) Operational, intermediate and strategic
(b) Headquarters, divisional and local
(c) Top, middle and bottom
(d) None of the above
65. All of the following would be steps or concerns in the process of strategic planning except:
(a) Designing a sound business portfolio.
(b) Checking to see if an advertising spot had been run in its allotted time slot.
(c) Setting supporting objectives.
(d) Defining a clear company mission.
66. Identify the best definition of planning.

(a) An integrated process in which plans are formulated, carried out and controlled.
(b) The core activity of planners and planning departments.
(c) Setting an organisation's objectives and the means of reaching them.
(d) Devising ways of achieving the objectives of an organisation.
67. Budget refers to

(a) Planned target of performance
(b) Steps of handling future activities
(c) Systematic action and allocation of resources
(d) Statement of expected results expressed in numerical terms
68. Which of the following indicates the importance of planning?

(a) Makes way for orderly activities
(b) Provides a basic for control in an organization
(c) Reduces risk of uncertainty
69. Which of the following is not a technique of planning?

(a) Budgeting
(b) Balanced score card
(c) PERT CPM
(d) Management by Objectives.
70. ___________ plans have clearly defined objectives

(a) Directional
(b) Flexible
(c) Specific
(d) Standing.
71. Which one of the following does not fall under qualitative forecasting method?
(a) Life cycle analogy
(b) Moving average methods
(c) Judgmental methods
(d) Delphi method
72. For which of the following situation(s) is the market research method of forecasting suitable?
(a) When a firm is planning moderate changes on product innovations
(b) When a firm is market testing one of its new offerings
(c) when a firm is working with stable technology, planning moderate changes on product innovations
or market testing one of its new offerings.
(d) when a firm is planning moderate changes on product innovations and market testing one of its
new offerings.
73. Which of the following forecasting method is suitable for launching new products?
(a) Moving average methods
(b) Exponential smoothing
(c) Causal models
(d) Judgmental methods
74. Which of the following method(s) is(are) suitable for forecasting the demand of a product?
(a) Delphi method
(b) Market research
(c) Delphi method and judgmental method
(d) Market research and judgmental method
75. Qualitative forecasting methods include

(a) delphi
(b) Panel of experts
(c) (a) and (c)
(d) (a) and (b)
76. Forecasts
(a) become more accurate with longer time horizons
(b) are rarely perfect
(c) are more accurate for individual items than for groups of items
(d) all of the above
77. One purpose of short-range forecasts is to determine

(a) production planning
(b) inventory budgets
(c) research and development plans
(d) job assignments
78. Forecasts are usually classified by time horizon into three categories
(a) short-range, medium-range, and long-range
(b) finance/accounting, marketing, and operations
(c) strategic, tactical, and operational
(d) exponential smoothing, regression, and time series
79. A forecast with a time horizon of about 3 months to 3 years is typically called a
(a) long-range forecast
(b) medium-range forecast
(c) short-range forecast
(d) weather forecast
80. Organizing refers to:

(a) planning,
(b) delegation of authority,
(c) training,
(d) selection
81. Organizing aims to serve:

(a) common purpose,
(b) corruption,
(c) authority structure,
82. Organizing destroys:

(a) individual relationships,
(b) plans,
(c) simplicity in the organization,
(d) environment.
83. 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.]
84. For effective organizing, an organization required:

(a) principle of balance,
(b) span of management,
(c) organization process,
(d) planning and forecasting.
85. The structure of organization includes:

(a) identification and classification of required activities,
(b) informal organization,
(c) establishing enterprise objectives,
(d) authority relationships.
86. 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.
87. In a formal organization, “power” is associated with:

(a) an individual,
(b) position,
(c) relationship,
(d) control
88. 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.]
89. 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.
90. Defective delegation:

(a) hampers coordination
(b) size of the organization,
(c) establish proper controls,
(d) establish sources of powers.
91. 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
92. 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
93. Line organization is also known as _____________ organization.

(a) Scalar
(b) Chain
(c) Matrix
(d) Project
94. 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.
95. 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
96. The foundations of ‘behavioral theory of organization’ were laid down by _______________
conducted by ____________
(a) Structural experiments,Gullick
(b) Bethlehem steel corporations, Mooney

(c) Hawthrone experiments, Mayo
(d) The longwell coal mining study,Weber
97. The systems approach _______________________?

(a) Emphasises the technical requirements of the organization and its needs
(b) Emphasises the psychological and social aspects
(c) Encourages the managers to view the organization both as a whole and as a part of larger
environment
98. The Contingency theory focuses on

(a) Situational variables
(b) Interrelationships
(c) Groups and human behavior
(d) Economic needs of workers
99. ___________ is attributed with developing the scientific management perspective.

(a) Elton Mayo
(b) Robert Owens
(c) Frank Gilbirth
(d) Frederick Taylor
100. ____________ provides a focus and direction for formulating strategy to achieve organizational
objectives.
(a) Management by objectives
(b) Strategy by objectives
(c) Management by strategy
(d) Strategic planning model.
101. ___________ refers to changes implemented by an organization due to pressure by external

forces.
(a) Unplanned change
(b) Reactive change
(c) Proactive change
(d) Revolutionery change.
102. Selection devices must:

(a) be explained,
(b) match the job in question,
(c) to be cost-effective
103. The popular on-the-job training methods include:

(a) job rotation,
(b) classroom lectures,
(c) films.
(d) description and displays
[Hint: On-the-job training methods allow the workers to work in a realistic work environment and gather
experiences.]
104. Need refers to:

(a) control information and performance review,
(b) key result areas and statement of objectives,
(c) agree what you expect from me,
[Hint: Need states agree what you refer from me and give me an opportunity to perform.]
105. 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.]
106. Non-financial incentives have many things to do with:

(a) Directing,
(b) Motivation,
(c) Planning,
(d) organising.
107. 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.]
108. HRD refers to:

(a) remuneration,
(b) development,
(c) controlling,
(d) planning
109. Recruitment covers:

(a) selection,
(b) job analysis,
(c) time,
[Hint: Recruitment covers job analysis, job design and job descriptions.]
110. Training is the process of:

(a) motivation
(b) increasing knowledge and skill
(c) testing.
(d) employee recommendations.
111. 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.]
112. What is the meaning of the acronym HRM?

(a) Humane Resource Management.
(b) Humanistic Resource Management.
(c) Human Resource Management.
(d) Human Relations Management.
113. 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.
114. 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.
115. Which of the following is not a selection technique?

(a) Performance appraisal
(b) Ability test

(c) Psychometric testing
(d) Interviews
116. 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
117. Job evaluation is conducted to develop

(a) Compensation package
(b) Training modules
(c) Organisational grapevine
(d) Rules and policies.
118. 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.
119. 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.
120. 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.
121. Direction refers to:

(a) planning,
(b) organizing,
(c) driving,
(d) staffing
122. 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,
123. The characteristics of direction include:

(a) guiding,
(b) motivating,
(c) planning,
(d) performance appraisal
124. Direction is a:
(a) discrete process,
(b) continuous process,
(c) circular process,
(d) supervisory process
125. 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.
126. 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.
127. 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.]
128.
The sketch shows the process of communication from A to B. What labels apply to the arrows that cross
in the centre?
(a) Stimulus; response
(b) Transmission; feedback
(c) Feedforward; feedback
(d) Encoding; decoding
129. 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.
130. 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
131. 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.
132. To decode a message is to

(a) translate ideas into code.
(b) reject a message.
(c) evaluate a message.
(d) interpret a message.
133. 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.
134. 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.
135. Feedback can come in the form of

(a) nonverbal communication only.
(b) verbal communication only.
(c) environmental noise.
(d) verbal and nonverbal listener responses.
136. 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.
137. 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.
138. An example of a communication channel is

(a) face-to-face conversation.
(b) noise.
(c) feedback.
(d) context.
139. 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
140. Which of the following is an example of a nonverbal message?

(a) Eye contact
(b) Yelling
(c) Mumbling
(d) Jargon
141. 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.
142. 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.
143. Learning to communicate with others is key to

(a) establishing rewarding relationships.
(b) never being misunderstood.

(c) eliminating all of your listeners' physiological noise.
(d) winning the approval of everyone around you.
144. Encoding is important because it

(a) guarantees that one's message will be decoded.
(b) encourages listener feedback.
(c) eliminates noise.
(d) Produces messages.
145. 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.
146. Control is a function aimed at:

(a) economic development,
(b) staffing,
(c) organizational development,
(d) planning
147. Control is a:
(a) static activity,
(b) plan,
(c) pervasive function,
(d) All of the above
148. The objective of control is:

(a) take corrective actions,
(b) make plans,
(c) prepare manpower planning,
(d) influence and persuasiveness,
149.
In the sketch of the planning and control cycle, what do the arrows X and Y indicate?
(a) (X) Review plans, (Y) review implementation of plans.
(b) (X) Alter plans; (Y) alter implementation of plans.
(c) (X) Restart the planning process; (Y) confirm existing plans.
(d) (X) Proceed with normal planning review; (Y) intervene urgently in current action.
150. Detecting irregularities is possible through:

(a) controlling,
(b) staffing,
(c) decision-making,
(d) planning.
151. Strategic control is implemented with:

(a) micro perspective,
(b) department perspective,
(c) macro perspective,
(d) motivational perspective
152. Deviation is a term used in:

(a) controlling
(b) motivation
(c) directing
(d) staffing
[Hint: Deviation is the term used when the actual performance is not equal to the standard
performance.]
153. Controlling plays an important role in helping:

(a) increase the costs,
(b) fixing standards,
(c) identify opportunities,
(d) time management
154. Difficulty in controlling the external factors is a drawback for:

(a) controlling
(b) motivation
(c) staffing
(d) organising
155. Effective control requires:

(a) flexibility
(b) rigidity
(c) high cost
(d) high time
156. The standard performances need to be adjusted after measuring with:

(a) actual performances
(b) costs
(c) time involved
(d) external factors
[Hint: The actual performances should be measured with standards and the standard performances
need to be adjusted through controlling techniques and review procedures.]
157. The process of monitoring performance monitoring it with goals and correcting any significant
deviations is known as
(a) Planning
(b) Organising
(c) Leading
(d) Controlling.
158. Which of the factors listed below is not a reason for decision making in organizations being a
complex process?
(a) People have to make decisions in a historical context
(b) Several stakeholders will have an interest in the decision
(c) Factors in the current context of the organization affect the decision
(d) Modern information systems enable people to evaluate a range of possible outcomes.
159. The overall process of decision making in, for example, staff selection includes which of these
stages?
(a) Deciding which candidate to appoint
(b) Identifying the need for a new member of staff
(c) Agreeing the job specification
160. A solution to a problem that is arrived at through an unstructured process of decision making
is called a:
(a) Bounded rationality
(b) Programmed decision
(c) Non-programmed decision
(d) Uncertainty
161. As a manager moves to higher positions in an organisation the ability to make ______
becomes ______ important.
(a) Programmed; less
(b) Non-programmed; more
(c) Non-programmed; less
(d) Programmed; much more
162. Decision making situations can be categorized along a scale which ranges from:
(a) Certainty to risk to uncertainty to ambiguity
(b) Certainty to uncertainty to risk
(c) Certainty to risk to uncertainty
(d) Uncertainty to certainty to risk
163. Maslow in his hierarchy has not considered:

(a) psychological needs,
(b) security needs,
(c) wealthy needs,
(d) existence needs.
164. The features of leadership do not include:

(a) representation,
(b) initiation,
(c) planning,
(d) motivation
165. 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,
166. 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.
167. 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.
168. 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.
169. 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.
170. 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
171. 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.
172. Which of the following is a leadership trait?

(a) Dominance
(b) Energy
(c) Cognitive ability
(d) All responses are leadership traits
173. 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.
174. Maslow and Herzberg are two examples of ___________ theories of motivation.
(a) process
(b) content
(c) expectancy
(d) equity
175. 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.
176. 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.
177. 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.
178. 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
179. Which step in Maslow's Hierarchy of Needs Theory deals with achieving one's potential?
(a) Esteem
(b) Physiological
(c) Self-actualization
(d) Social
180. Which of the following would be classified by Herzberg as a hygiene factor?

(a) Achievement
(b) Promotion
(c) Responsibility
(d) Company policy
181. 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
182. 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
183. 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
184. Theory X suggests that employees:

(a) Like their manager
(b) Dislike work
(c) Dislike their manager
(d) Like work
185. 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
186. As a well-educated and highly esteemed businesswoman, Delores feels she has accomplished a
great deal in her life. She decides that she would like to give back to the community, so she makes a
sizable endowment to the local conservatory. She is also using her professional influence to draw the
public's attention to the needs of children who have cancer. Abraham Maslow would probably say that
Delores has reached the __________________ stage of his need hierarchy.
(a) esteem
(b) cognitive
(c) aesthetic
(d) self-actualization
187. Which of the following statements is false about the hierarchy of needs theory (Maslow)?
(a) Chronic frustration of needs has no ill effects
(b) The next higher-level need can become important, while a lower level is only partially satisfied
(c) Needs are not the only basis of human behavior
(d) A satisfied need is no longer a motivator
188. Each of the following statements about the hierarchy of needs theory (Maslow) is true except
(a) A satisfied need does not motivate behavior
(b) People progress through the hierarchy in the same order without exception
(c) Behavior can focus on satisfying more than one need at a time
(d) The environment can affect behavior
189. Which of the following is false about motivator — hygiene theory (Herzberg)?
(a) Motivators include achievement and the work itself
(b) Empirical research strongly supports the theory
(c) Dissatisfiers and satisfiers fall on two different continua
(d) Company policies are a hygiene factor
190. Contingency theory 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 situations
(c) There is a single style of leadership appropriate to all managers
191. What does ERG stands for

(a) Effective, readiness and growth
(b) Expectancy, real and exist
(c) Existence, relatedness and growth
(d) Excellent relationship and growth.
192. Theory X suggests that employees

(a) Dislike work
(b) Dislike managers
(c) Like work
193. Changes in behavior as a result of observation and manipulation of conditions in an environment

are termed:
(a) the Hawthorne effect
(b) group dynamics
(c) social influence
(d) sociometry.
194. Members within a group that share similar experiences and feelings are known to have:
(a) process
(b) universality
(c) content
(d) conflict.
195. An important factor of the preplanning stage in group dynamics is determining what the group is to
accomplish; this is known as ________________________.
(a) goal setting
(b) cohesion
(c) clarity of purpose
(d) group orientation
196. ____________ groups have members who have similar presenting problems or are similar in
gender, ethnicity, or social background
(a) Heterogeneous
(b) Ideal
(c) Dynamic
(d) Homogeneous
197. Role _________________ is a conflict between the role an individual has outside the group and
the role he or she is expected to have in the group.
(a) collision
(b) transition
(c) confusion
(d) incompatibility.
198. Which one of the following characteristics is not necessarily true about groups?
(a) Group members are interdependent
(b) Groups have two or more members
(c) Groups have assigned goals
(d) Groups interact.
199. What sort of groups is defined by the organization’s structure?

(a) informal
(b) task
(c) friendship
(d) formal
200. 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
201. 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
202. 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.
203. Each statement below is true about conflict and conflict management in organizations except
(a) Conflict management includes both increasing and decreasing conflict
(b) Conflict is necessary for organizational survival
(c) Conflict management is not a basic management responsibility
(d) Conflict includes interactions in which one party opposes another party.
204. Which of the following statements is false about functional and dysfunctional conflict in
organizations?
(a) Conflict is dysfunctional when it is lower than a group requires for reaching its goals
(b) Conflict management does not involve maintaining conflict at functional levels
(c) Conflict that is functional in one group can be dysfunctional in another group
(d) Dysfunctionally high conflict can reduce trust.
205. All but one of the following statements accurately describe aspects of levels and types of conflict
in organizations. Which statement does not?
(a) Intraorganization conflict includes all types of conflict between organizations.
(b) Interpersonal conflict is conflict between two or more people.
(c) Intergroup conflict is conflict between two or more groups.
(d) Intrapersonal conflict is conflict that occurs within a person.
206. Each statement below is true about conflict management except

(a) Innovative products or services require a higher desired conflict level than more routine products or
services
(b) If conflict in a work unit is dysfunctionally low, the manager tries to increase conflict
(c) A manager's tolerance for conflict can affect the manager's perception of desired conflict levels in
a workgroup
(d) Desired conflict levels do not vary from one group to another and for the same group over time.
207. Which of the following is false about reducing conflict?

(a) Compromise uses negotiation to reduce conflict. It splits the differences between the parties in
conflict
(b) Problem solving usually does not find a conflict episode's root causes
(c) Avoidance prevents a person from facing a conflict episode
(d) A superordinate goal is a goal desired by all parties to the conflict but not reachable by any party
alone.
208. Which of the following does not increase conflict in organizations?

(a) Superordinate goal
(b) Devil's advocate
(c) Heterogeneous groups
(d) Organizational culture
209. Which of the following is false about ethical issues in conflict in organizations?
(a) Variation in optimum conflict levels among countries
(b) Subtle methods of increasing conflict
(c) Intrapersonal conflict from requests for immoral acts
(d) Conflict higher than a person's tolerance level
210. One of the advantages of conflict is that it forces you to examine problems and work towards
a potential __________.
(a) Solution
(b) Outcome
(c) Experience
(d) Relationship
211. Conflict that refers to a disagreement among connected individuals is

(a) Interpersonal
(b) Intrapersonal
(c) Friendly conflict
(d) Negative conflict
212. The first stage of conflict resolution is to

(a) Chose a solution
(b) Define the problem
(c) Think through possible solutions
(d) Analyse the problem
213. Which of the following is conflict resolution skill?

(a) Accomodating
(b) Passive listening
(c) Active listening
(d) Avoiding
214. Who considered organization to be similar to the architectural plan of a building?

(a) Fayol
(b) Weber
(c) Newman
(d) Taylor
215. Functional foremanship is the concept underlying the following organization

(a) Matrix
(b) Functional
(c) Product
(d) Divisional
216. Which nature of organization structure is suitable for aircraft manufacture, aerospace/
construction, consultancy etc?
(a) Project
(b) Matrix
(c) Functional
(d) Line
217. Which management principle does matrix organization violate?

(a) Unity of command
(b) Unity of Direction
(c) Espirit de corps
(d) Centralization
218. A rapidly changing adaptive temporary system of a group of people with diverse professional
skills are known as
(b) Staff organization
(c) Matrix organization
(d) Free form organization
219. Free form organization is more suitable in ............................. environment

(a) dynamic
(b) stable
(c) rigid
(d) none of these
220. A concern having textile, chemicals, plastics fertilizers follow departmentation based on
(a) process
(b) product
(c) functions
(d) geographical areas
221. The act of entrusting subordinates with the same power that are of the superior is termed
(a) Decentralization
(b) Centralization
(c) Delegation
(d) Departmentation
222. _______ applies to the systematic delegation of authority in an organization-wide context

(a) Delegation
(b) Decentralization
(c) Centralization
223. Authority should be commensurate with responsibility is the best way to achieve
(b) Communication
(c) Control
(d) Effective delegation
224. 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
225. Grapevine is another term used to describe

(a) Formal organization
(b) Informal organization
(c) Product organization
(d) Project organization
226. The unofficial and social pattern of human interactions is observed in

(d) None of these
227. 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
228. A suitable basis of departmentation is decided considering

(a) Specialization of work
(b) Customers
(c) Control
(d) Top management
229. Organization theory is predominantly _________ and _________ in nature

(a) descriptive and normative
(b) normative and predictive
(c) exploratory and descriptive
(d) descriptive and predictive
230. Machine theory has been popularized as

(a) Scientific Management
(b) Administrative Management
(c) Bureaucracy
(d) None of these
231. The concept of span of control was propounded by

(a) Graicunas
(b) Fayol
(c) Taylor
(d) Mc Gregor
232. Blake and Mouton propounded the concept of

(a) Tri dimensional theory
(b) Bureaucracy
(c) Contingency
(d) Managerial grid
233. The Latin term “persona” is used to describe

(a) perception
(b) personality
(c) attitude
(d) learning
234. Being outgoing, talkative, sociable, assertive indicated which personality dimention
(a) Agreeableness
(b) Emotional stability
(c) Extroversion
(d) Openness to experience
235. An individual’s view of reality is

(a) Selection
(b) perception
(c) interpretation
(d) organisation
236. The tendency of judging people on the basis of the characteristics of the group to which they
belong is termed
(a) attribution
(b) projection
(c) stereotyping
(d) inference
237. The law of exercise in learning is based on

(a) classical conditioning
(b) operant conditioning
(c) Social learning
(d) cognitive learning
238. Negative reinforcement involves the threat of

(a) Extinction
(b) Punishment
(c) Criticism
(d) None of these
239. According to MASLOW’S Hierarchy of needs theory, human needs are to be arranged in the
following hierarchy of importance,________________________________________
(a) Physiological needs>social needs>safety needs>esteem needs > self actualisation needs
(b) Physiological needs>safety needs>esteem needs>social needs > self actualisation needs
(c) Safety needs>physiological needs>social needs>esteem needs > self actualisation needs
(d) Physiological needs>safety needs>social needs>esteem needs > self actualisation
240. Douglas McGregor’s theory X and Theory Y of motivation, proposed two distinct views of
human beings, ____________________
(a) Satisfied and dissatisfied
(b) Optimistic and pessimistic
(c) Positive and negative
(d) Happy and sad
241. Which of the following is not an assumption according to theory X,

(a) Employees inherently dislike work and, whenever possible will attempt to avoid it.
(b) Since employees dislike work, they must be coerced, controlled, or threatened with
punishment to achieve goals.
(c) Employees will avoid responsibilities and seek formal direction whenever possible.
(d) Most workers place self actualisation above all other factors associated with work and are
highly ambitious.
242. According to Herzberg’s motivation hygiene theory, the opposite of satisfaction

is,____________________
(a) Dissatisfaction
(b) No satisfaction
(c) No dissatisfaction
243. Victor vroom’s expectancy theory of motivation focuses on three relationships: effort –
performance relationship, performance - reward relationship and_______________________
(a) Rewards- organisational goals relationship
(b) Performance – organisational goals relationship
(c) Rewards – personal goals relationship
(d) Performance – personal goal relationship
244. Management by objectives is not a new concept of motivation, it was originally proposed
more than 45 years ago by,
(a) Peter Drucker
(b) Abraham Maslow
(c) David McClelland
(d) Frederic Herzberg
245. Which of the following is the second stage of group formation,

(a) Forming stage
(b) Initial integration stage
(c) Storming stage
246. We all know that mainly two types of groups exist in an organisation namely formal and
informal. But what are the two types of formal groups in an organisation?
(a) Command groups and interest groups
(b) Interest groups and task groups
(c) Task groups and psychological groups
(d) Command groups and task groups
247. A well integrated group is able to disband, if required, when its work is accomplished. This
stage is known as,
(a) Disbanding stage
(b) Disintegration stage
(c) Adjourning stage
248. Organisational culture performs a number of functions within an organisation. Which of the
following is not one such function:
(a) It creates distinction between one organization and another.
(b) It facilitates the generation of commitment to one’s individual self interest only
(c) It conveys a sense of identity for organisation members
(d) It enhances social system stability.
249. The _________ are perspectives of motivation that identify specific needs that energize
behavior.
(a) content theories of motivation
(b) process theories of motivation
(c) equity theory and OB mod theory
(d) expectancy theories
250. _________ is attributed with the development of the Two-Factor Theory of motivation.
(a) Abraham Maslow
(b) David McClelland
(c) Frederick Herzberg
(d) Stacy Adams
251. Hygiene factors are similar to the _____________ needs identified by the Hierarchy of Needs.
(a) higher order
(b) three-tiered
(c) lower order
(d) none of the above
252. Which of the following is a strategic way in which employees strive to reduce inequity?
(a) Focus specifically on the behavior in question and attempt to alter it.
(b) Maintain the same comparison person as before.
(c) Changing their inputs and/or outcomes
253. Which theory is considered to deal with consequences?

(a) Reinforcement Theory
(b) Two-Factor Theory
(c) Equity Theory
(d) Hierarchy of Needs Theory
254. Which of the following is/are a recommendation(s) to prevent the potential side effects of
punishment?
(a) Focus specifically on the behavior in question.
(b) Always punish in private.
(c) Specify alternative behaviors that will prevent mistakes from being repeated.
255. Which motivation theory focuses on establishing future performance targets?

(a) Goal theory
(b) Reinforcement theory
(c) Equity theory
256. Jackson is a line worker for the local clothing manufacturer. Even though he does not possess an
official title or a private office, Jackson is more than willing to give his complete dedication to assisting
the organization in achieving its mission of producing a quality product. This willingness to pursue an
organizational goal is a demonstration of _____________.
(a) motivation
(b) positive reinforcement
(c) goal commitment
(d) goal setting
257. Which of the following is/are suggested for a successful management by objectives program?
(a) Establish a time frame for achievement
(b) Establish performance targets
(c) Prioritize goals
258. Which theory of motivation starts with an assumption that employees are rational?
(a) Goal setting theory
(b) Expectancy theory
(c) Reinforcement theory
(d) Herzberg's Two-Factor theory
259. The desired "performance” of skill acquisition is attributable to ___________.

(a) expectancy theory
(b) reinforcement theory
(c) skill-based pay programs
260. Wide range of abilities and attributes possessed by people are called as
(a) Management
(b) Human Resources
(c) Entrepreneur
(d) Intreprenuer
261. The focus of Human Resource Management revolves around

(a) Machine
(b) Motivation
(c) Money
(d) Men
262. Quality goals require alignment with

(a) Production
(b) Human Resources
(c) Finance
(d) Purchase
263. Demand for human resources and management is created by

(a) Expansion of industry
(b) Shortage of labour
(c) Abundance of capital
(d) Consumer preferences
264. Union function arises as a result of employees

(a) Problem of communication
(b) Longing for belonging
(c) Dissatisfaction
(d) Change in technology
265. Human Resource Management is primarily concerned with

(a) Sales
(b) Dimensions of people
(c) External environment
(d) Cost discipline
266. Human Resource Management aims to maximize employees as well as organizational

(a) Effectiveness
(b) Economy
(c) Efficiency
(d) Performativity
267. The difference between human resource management and personnel management is
(a) Insignificant
(b) Marginal
(c) Narrow
(d) Wide
268. Human Resource Management function does not involve

(a) Recruitment
(b) Selection
(c) Cost control
(d) Training
269. Which one is not the specific goal of human resource management?
(a) Attracting applicants
(b) Separating employees
(c) Retaining employees
(d) Motivating employees
270. Identify the top most goal of human resource management

(a) Legal compliance
(b) Competitive edge
(c) Work force adaptability
(d) Productivity
271. To achieve goals organizations require employees

(a) Control
(b) Direction
(c) Commitment
(d) Cooperation
272. Human resource management helps improve

(a) Production
(b) Productivity
(c) Profits
(d) Power
273. The amount of quality output for amount of input means

(a) Productivity
(b) Production
(c) Sales increase
(d) Increase in profits
274. Responding to employees and involving them in decision making is referred to as

(a) Quality of work life
(b) Autonomy
(c) Empowerment
(d) Preaction
275. Within an organisation, leadership influence will be dependent upon the type of ________ that the
leader can exercise over the followers.
(a) Knowledge
(b) Power
(c) delegation
(d) friendship
276. Legitimate power is based on the subordinate's perception that the leader has a right to exercise
influence because of the leader's
(a) role or position within the organisation.
(b) expertise and knowledge.
(c) personal characteristics and personality.
(d) ability to punish or reward.
277. Needs such as training the group, setting standards and maintaining discipline, and appointing
sub-leaders may be called
(a) task functions.
(b) individual functions.
(c) work functions.
(d) team functions.
278. Contingency theories of leadership are based on the belief that

(a) there is a single style of leadership appropriate to all managers.
(b) there is no single style of leadership appropriate to all situations.
279. Another contingency model of leadership is the path-goal theory. This suggests that subordinates
will see leadership behaviour as a motivating influence if
(b) the necessary direction, guidance, training and support is provided.
(c) their effective performance will satisfy their needs.
(d) all the above.
280. Culture refers to

(a) gender equality.
(b) race or nationality.
(c) the specialized lifestyle of a group of people.
(d) genetic similarities.
281. The transmission of culture from one generation to another is called

(a) culture shock.
(b) acculturation.
(c) individualistic.
(d) enculturation.
282. The process by which one learns the norms of a culture different from your native culture is
(a) culturation.
(b) acculturation.
(c) interculturation.
(d) multiculturalism.
283. Low power distance cultures include

(a) Iceland, Australia, Sweden and the U.S.
(b) Denmark, New Zealand, Sweden and the U.S.
(c) India, Morocco, Brazil and the Philippines.
(d) India, Brazil, China and the Philippines.
284. In a masculine culture, men are viewed as

(a) weak, marginal and ineffective.
(b) assertive, oriented to material success and strong.
(c) incredible, strong and assertive.
(d) strong, sensible and funny.
285. In a feminine culture, both men and women are encouraged to be

(a) tender, modest and forgiving.
(c) modest, oriented to maintaining the quality of life and tender.
(d) tender, intelligent and forgiving.
286. An individualist culture promotes

(a) benevolence.
(b) tradition.
(c) competition.
(d) conformity.
287. Culture shock is

(a) a physiological reaction that can occur when experiencing a culture for the first time.
(b) the honeymoon period experienced when introduced to a different way of life.
(c) a psychological reaction that can occur when overexposed to a culture different from your own.
(d) a psychological reaction that can occur when experiencing a culture for the first time.
288. Intercultural communication occurs when

(a) those with different cultural beliefs, values or ways of behaving communicate with one another.
(b) different ethnic backgrounds meet.
(c) different cultural beliefs cause conflict.
(d) different races gather for conferences and seminars.
289. A low context culture is one where

(a) most of the information is explicitly stated in the verbal message.
(b) most of the information is nonexistent.
(c) most of the information is unspoken.
(d) most of the information is apparent.
290. A high context culture is one where

(a) much of the information is spoken.
(b) much of the information is in the context or in the person.
(c) most people use sign language.
(d) much of the information is unspoken.
291. In which type of culture is competition encouraged?

(a) Ethnocentric culture
(b) Selfish culture
(c) Individualist culture
(d) Collectivist culture
292. When people who study communication focus their attention on spoken symbolic interaction, their
primary interest is in which of the following?
(a) The unspoken body language that people use
(b) The way people use words to create common meaning
(c) All of the ways organisms (including non-human organisms) create meaning
(d) The unintentional behaviors that accompany speaking
293. The essential components of communication are

(a) source, message, interference, channel, receiver, feedback, environment, and context.
(b) symbols, understanding, communication, and communicant.
(c) symbols, understanding, purpose, ideas, opinions, nonverbals, and reaction.
(d) source, destination, interaction, and correlation.
294. The primary channels that individuals use to communicate with others are
(a) television and radio.
(b) voice mail, conventional mail, and e-mail.
(c) sight and sound.
(d) touch and tone of voice.
295. A component in the communication process that we often send without being aware of it is
(a) verbal communication.
(b) an encoded message.
(c) feedback.
(d) a message sent via touch.
296. The context of an interaction includes two major components

(a) a business proposal and a personal friendship.
(b) the physical setting and the encoding.
(c) the supportive climate and the defensive climate.
(d) the physical setting and the psychological climate.
297. Which aspect of a message focuses on new information or ideas?

(a) channel
(b) content
(c) relationship
(d) Context
298. Which of the following is the definition of a speech act?

(a) People who share common attitudes toward speech
(b) An identifiable sequence of speech activity
(c) The purpose served by a given form of talk
(d) A clearly marked occasion that calls for speech
299. The idea that "communication is a process of adjustment" means that

(a) people have to learn each other's meanings for words, as well as their nonverbal behaviors during
communication.
(b) people will adapt to others' attitudes and speech while communicating.
(c) both the content and relational dimensions of a message can change during communication.
(d) people usually engage in complementary transactions during communication.
300. Which of the following approaches to Human Resource Management suggests that treating
employees with respect would improve employee satisfaction and help in achieving higher
productivity?
(a) Technical Management Approach
(b) Human Accounting Approach
(c) Human Relations Approach
(d) Scientific Management Approach
301. Which of the following tests measure an individual’s ability to learn a given job, when adequate
training is given and do not test the knowledge or proficiency possessed by the individual?
(a) Interest tests
(b) Achievement tests
(c) Situational tests
(d) Aptitude tests
302. Which of the following concept refers to attributing an appropriate value to the worth of human
resources in the organization?
(a) Human resource planning
(b) Human resource accounting
(c) Human resource development
(d) Human resource management
303. The employment agencies in which fresh graduates and technicians in search of suitable
employment would first register themselves are known as
(a) Global agencies. .
(b) Private agencies.
(c) Local agencies.
(d) Public or state agencies
304. Which of the following cannot act as a force for change?

(a) Technology
(b) World politics
(c) Decreasing skills set
(d) Social
305. Activities related to change which are intentional and goal oriented are termed as?
(a) Planned change
(b) Second order change
(c) First order change
(d) Change agent
306. If an organization used an outside consultant as opposed to an insider as change agent, the
result would probably be:
(a) More cautious and thoughtful.
(b) More reflective of the organization’s history and culture.
(c) More objective.
(d) Reflective of the fact that change agents must live with the consequences of their actions.
307. The most relevant disadvantage of using outside consultants as change agents is:
(a) The cost.
(b) Internal members do not accept external recommendations.
(c) They do not have to live with the repercussions after the change.
(d) They cannot offer an objective perspective
308. Resistance to change is positive since:

(a) It provides a degree of stability to behavior and productivity.
(b) Without some resistance, OB would take on characteristics of chaotic randomness.
(c) Resistance can be a source of functional conflict.
309. It is easiest for management to deal with resistance when it is:

(a) Overt.
(b) Subtle.
(c) Passive.
(d) Implicit.
310. Give an example for individual resistance to change?

(a) Group inertia.
(b) Structural inertia.
(c) Habit.
(d) Threat to expertise.
311. Which of the following is not a source of individual resistance to change?

(a) Habit
(b) Security
(c) Fear of the unknown
(d) Structural inertia
312. Which is not a source of organizational resistance to change?

(a) Structural inertia.
(b) Security.
(c) Limited focus of change.
(d) Threat to established power relationships
313. Which one of the following is not a tactic for dealing with resistance to change?
(a) Cooperation
(b) Manipulation
(c) Participation
(d) Negotiation
314. Using covert influence to overcome resistance to change is called:

(a) Participation.
(b) Cooptation.
(c) Manipulation.
(d) Coercion.
315. The application of direct threats or force upon resisters is called:

(a) Power.
(b) Cooptation.
(c) Manipulation.
(d) Coercion.
316. Politics suggest that the impetus for change is more likely to come from:
(a) Outside change agents.
(b) Employees who are new to the organization.
(c) Managers slightly removed from the main power structure.
317. Who developed a three-step model for change that included unfreezing, movement, and
refreezing?
(a) Mary Parker Follett
(c) Kurt Lewin
(d) Chester Barnard
318. _____ is a change process based on systematic collection of data and then selection of a
change action based on what the analyzed data indicate.
(a) Organizational development
(b) Action research
(c) Sensitivity training
(d) Process consultation
319. William Marsteller once said that, "Communication is not just words, paint on a canvas, math
symbols, or the equations and models of scientists; it is the interrelations of human beings trying to
escape ________, trying to share experience, trying to implant ideas."
(a) Loneliness
(b) Compartmentalization
(c) Boredom
(d) Their own cages
320. Communication is the __________ or accidental transfer of meaning.

(a) Unintentional
(b) Deliberate
(c) Strategic
(d) Conscientious
321. Intrapersonal communication is best defined as:

(a) The relationship level of communication.
(b) Interactions with a limited number of persons.
(c) Communication designed to inform or persuade audience members.
(d) Communication with the self.
322. Public communication can best be defined as:

(a) Communication designed to inform or persuade audience members.
(b) The relationship level of communication.
(c) Interactions with a limited number of persons.
323. The communication process has several elements. Of these, what is the "content of a
communicative act?"
(a) Message
(b) People
(c) Channel
(d) Noise
324. Feedback, one of the more important parts of the communication process, comes in many
varieties. Of those listed below, which is "a behavior enhancing response?"
(a) Positive feedback
(b) Negative feedback
(c) Internal feedback
(d) External feedback
325. There are two (2) crucial characteristics of communication. First, communication is dynamic; the
elements of the process are always affecting each another. Second, communication is unrepeatable
and ___________.
(a) Unrecognizable
(b) Irreversible
(c) Distinct
(d) Reversible
326. To become more adept at communicating with persons who are culturally different from
ourselves, we need to learn not only about their cultures, but about ___________.
(a) Their various subcultures
(b) Our own culture
(c) Their religion
(d) Their language
327. Cultural pluralists advocate adherence to the principle of …...

(a) High-text communication
(b) Low-text communication
(c) Cultural relativity
(d) Ethnocentrism
328. Demographers tell us that _________ will shape our country's future.
(a) Ignorance
(b) Diversity
(c) Individualism
(d) Conformity
329. To communicate interculturally, it is important to limit one's reliance on ___________.

(a) Stereotypes
(b) Technology
(c) Friendship
(d) Media
330. It is important to ____________ the communication rules of other cultures to communicate

effectively.
(a) Debate
(b) Restructure
(c) Challenge
331. Which of the following is not a norm?

(a) Participation
(b) Hunger
(c) Positive Attitude
(d) Confidentiality
332. Which of the following is not an example of group influence on an individual?

(a) minority influence.
(b) deindividuation.
(c) social facilitation.
(d) social loafing.
333. Social facilitation is the term used to describe the tendency for the presence of others
(a) to affect our likelihood to help.
(b) to either enhance or impair performance.
(c) to make a person act more extroverted.

(d) to make a person act more introverted.
334. What is the term used to describe when a person's identity and self-awareness are diffused by
being in the presence of a group, and a person might act in an unrestrained manners?
(a) deinstitutionalization.
(c) decineration.
(d) declination.
335. Group polarization occurs when

(a) members in a group interact, but, instead of changing their minds about a topic, they keep
their original ideas and strengthen those ideas.
(b) the group members do not interact, and the members reverse their decisions to the opposite
point of view.
(c) social loafing is strong and deindividuation is weak.
(d) the members in a group interact, and based upon what they hear, they discard their original
ideas in favor of the other group members' ideas.
336. Which researcher coined the term "groupthink"?

(a) Leon Festinger
(b) Norman Triplett
(c) Irving Janis
(d) Irwin Yalom
337. Groupthink is used to describe

(a) the positive aspects that occur when a group works together.
(b) group dynamics that can interfere with group decision-making processes and can produce
disastrous results.
(c) when group members have in-jokes and give each other knowing glances.
(d) when group members are on the same wavelength and complete each other’s sentences.
338. Research on working in pairs, teams, or in groups has shown that

(a) collaborations are never productive.
(b) teamwork is never as good as working alone.
(c) group problem solving tasks always dilute original ideas.
(d) collaborations can be productive.
339. Minority influence can

(a) never sway the majority of the group members to the other point of view.
(b) steer other group members who hold the majority view over to the minority point of view.
(c) decrease creativity.
(d) increase superficiality.
340. It is through ______________ that group members can be inspired, motivated, and guided to be
successful and productive.
(a) fellowship
(b) sportsmanship
(c) Coercion
(d) leadership
341. Which style of leadership focuses on goals, standards, and organization?

(a) task leadership
(b) social leadership
(c) semantic leadership
(d) transformational leadership
342. Which style of leadership focuses on team building, conflict resolution, and morale?
(a) surrogate leadership
(c) transparent leadership
(d) task leadership
343. The transformational leadership style

(a) Encourages group members to transform themselves into better people.
(b) Strives to change the group members' opinions by showing them a better way to think.
(c) changes opinions and attitudes without changing behaviors.
(d) Encourages and inspires group members to go above and beyond selfish interests and do what
is best for the common good of the group as a whole.
344. Social comparison theory is offered as one explanation for ______________.

(a) group polarization
(b) pluralistic ignorance
(c) summation polarity
(d) group adhesion
345. Influencing others to work willingly toward achieving the firm’s objectives is:
(a) Organizing
(b) Motivation
(c) Leadership
(d) Management
346. Effective leadership reflects a balance of:

(a) Traits and skills
(b) Leadership styles or behaviors
(c) Situations and influences
(d) a and b
347. Traits or skills on which leaders differ from non-leaders include:

(a) Honesty and integrity
(b) Self-confidence
(c) Drive and the desire to lead
348. Sources from which leaders derive power include:

(a) Position held
(b) Authority to reward or punish
(c) Expert knowledge
349. A leader’s people oriented functions include:

(a) Reducing tension and boosting morale
(b) Making the job more pleasant
(c) Defending the group’s values, attitudes and beliefs
350. Leaders that focus on the individuality and personality needs of their employees and
emphasize building good interpersonal relationships are:
(a) Job centered
(b) Laissez-faire
(c) Employee oriented
(d) Consideration oriented
351. Leaders that focus on production and the job’s technical aspects are:
(a) Job centered
(b) Laissez-faire
(c) General
(d) Autocratic
352. The extent to which a leader lets followers make decisions themselves rather than making the
decisions for them is focused on by _______________ leadership styles.
(a) Laissez-faire and general
(b) Participative and autocratic
(c) Employee-oriented and job-centered
(d) Laissez-faire and close
353. ______________ leaders solve problems and make decisions alone.

(a) Laissez-faire
(b) Job-centered
(c) Autocratic
(d) Situational
354. Leaders who enlist the help of subordinates as a group to solve problems is:
(a) Situational
(b) Laissez-faire
(c) Participative
(d) Employee-oriented
355. A leader uses _____________ when giving the individual or group the authority and responsibility
to make a decision.
(a) Consultation
(b) Laissez-faire
(c) Joint decision
(d) Delegation
356. Advantages of participative decision making include:

(a) Employees set higher goals for themselves
(b) More points of view are offered
(c) Participants buy into the final decision
357. Whether a leader is charismatic is determined by:

(a) Follower perceptions
(b) Context of the leadership situation
(c) Individual and collective need of followers
358. The “fix” style of leadership depends upon the:

(a) Nature of the task
(b) Capabilities of employees
(c) a and b
359. Identify the best definition of planning

(a) An integrated process in which plans are formulated carried out and controlled.
(b) Setting an organization’s objectives and the means of reaching them.
(c) Devising ways of achieving the objectives of an organisation.
(d) The core activity of planners and planning departments.
360. What is planning horizon?

(a) The distance ahead for the forecasts on which plans are made.
(b) The maximum time for which managers can make plans.
(c) The time between making a plan and putting it into effect.
(d) The time ahead for which there is no information.
361. What three problems commonly hindering successful planning did we identify?
(a) Procedures unsuited to change; negative organisational culture; poor interpersonal
relationships.
(b) Lack of planning expertise; little top management support; misuse of planning specialists.
(c) An oversized planning department; poor co-operation between managers and planners;
managers with little time to gather information.
(d) Conflict among objectives; impossibility of measuring outcomes; confusion between means
and ends.
362. What is the more formal term

for what is known as 'Plan B'?
(a) A contingency plan.
(b) A convergence plan.
(c) A circumstantial plan.
(d) A crisis plan.
363. What is the duty to act according to the authority that has been given?
(a) Professionalism
(b) Delegation
(c) Responsibility
(d) Probity
364. What are the three themes found in the choice of organisational divisions?
(a) Growth, specialization and co-ordination
(b) Products, customers and geography
(c) Hierarchy, level and chain of command
(d) Size, diversity and independence
365. In which organisational form are there dual or multiple lines of authority?
(a) Multidivisional
(b) Decentralised
(c) Network
(d) Matrix
366. Which concept does personality represent?

(a) zero concept
(b) whole concept
(c) full concept
(d) empty concept
367. Which determinant of personality determines the actual learning of a person?

(a) biological
(b) social
(c) culture
(d) situational
368. Who divided in two types -(tough minded and tender minded) to judge the personality?
(a) william james
(b) luthans
(c) spranger
(d) murray
369. What are the three kinds of personality according to Jung?

(a) extrovert, talkative, ambivert
(b) introvert lazy talkative
(c) extrovert, introvert, ambivert
(d) talkative,ambivert,lazy
370. Who classified people in terms of values?

(a) jung
(b) spranger
(c) luthans
(d) carl rogers
371. Alport makes a distinction between which two traits?

(a) a.common and uncommon traits
(b) uncommon and personal traits
(c) common traits and personal disposition
(d) d.tough traits and common traits
372. What are the two traits according to catell's trait theory?
(a) surface and base trait
(b) surface and source trait
(c) base and source trait
(d) source and end traits
373. What are more traditional concepts of explaining human behavior?

(a) self theory
(b) unself theory
(c) trait and type theory
(d) type and self theory
374. Which theory studys the person-situation ineraction?

(a) a.self theory
(b) social theory
(c) c.trait theory
(d) type theory
375. Which of the following is a characteristics of leadership?

(a) a function of stimulation
(b) a process of leaning
(c) process of obeying commands
(d) process of getting motivated by others
376. Leadership is the procces whoose important ingridient is the _____________ exercised by the
leaders on the group members .
(a) friendship
(b) loyalty
(c) ctrust
(d) influence
377. According to louis A allen a leader is a person who____________ other people.

(a) guides and directs
(b) socializes with
(c) participates with
(d) tolerates
378. What style does an autocratic leader follow?

(a) who consults with people in the group then give instructions
(b) One who gives order which must be obeyed
(c) who does not lead
(d) who does not take any responsibility
379. Why is autocratic leadership considered negetive?

(a) people are uninformed,insecued and afraid of the leader
(b) leader is extra friendly
(c) too much confusion arises
(d) very participative
380. A________________ leader is one who gives instruction only after consulting the group.
(a) democratic
(b) socialist
(c) autocratic
(d) free rein/laissez faire
381. A ____________ leader avoids power and leaves the group entirely to itself.
(a) socialistic
(b) democratic
(c) autocratic
382. A ___________ leader assumes his function to be fatherly.

(a) socialistic
(b) democratic
(c) paternal
383. System 1 management ,managers make what kind of decisions?

(a) employess personal life realted
(b) work related

(c) socialy related
(d) related to society
384. Maslow suggests that needs are arranged in a series of levels, on the basis of importance.In this
regard which of the following are relevant to the Maslows Hierarchy of needs theory?
(a) A need once satisfied does not motivate an individual
(b) Once a need is satisfied it is replaced by another need
(c) Needs are same for all individuals
385. Leaders who inspire their followers to surpass their self interests for the good of the good of the
organization are called?
(a) Democratic leaders
(b) Autocratic leaders
(c) Transformational
(d) Transactional
386. The term used for defining the number of subordinates under a manager in an organization is
called?
(a) Span of management
(b) Control of management
(c) Division management
(d) Departmentalization
387. Hygiene factors are similar to ______ needs as identified in the Hierarchy of needs.
(a) Lower order
(b) Higher order
(c) 3Tiered
388. Which of the following theories are similar to Maslows need hierarchy in terms of how human
behavior and motivation are priorities in the workplace to maximize output?
(a) Theory X and Thoery Y
(b) Mc Clellands theory of human motivation
(c) Clayton Alderfers ERG theory
(d) Mmanagement by objectives theory
389. ______the ability to influence others that stems from the leaders characteristics
(a) Referent power
(b) Coersive power
(c) Legitimate power
390. Training is vital and necessary activity in all organisations. It plays a large part in determining
the _______________ and ____________ of the establishment
(a) Effectiveness and efficiency
(b) Effectiveness and smooth running
(c) Efficiency and smooth running
(d) Efficiency and success
391. Learning by doing is a type of

(a) Off the job training
(b) On the job training
(c) Internship taining
(d) Classroom training
392. Planning involves deciding in _________ what is to be done, where , how and by whom it is to
be done
(a) Respect of
(b) Context of
(c) Advance
(d) Regard to
393. Limitation of planning include :

(a) Inaccuracy
(b) Time consuming
(c) Rigidity
394. In the top-down approach _____________ takes the initiative in formulating major objectives,
strategies policies and derivatives
(a) Team
(b) Top management
(c) Supervisory management
395. The term budget is usually regarded as a tool of ____________ planning and control
(a) Operational
(b) Functional
(c) Systematic
396. PERT AND CPM are ___________________

(a) Network techniques useful for planning
(b) Tools of forecasting
(c) Both a and b
397. Organisational plans for handling non repetitive, novel and unique problems are known as
________
(a) Standing plans
(b) Single use plans
(c) Both of the above
398. Setting goals and objective is the first step in the __________________ process
(a) Planning
(b) Strategic planning
(c) Organising
(d) Staffing
399. Felt conflict is :

(a) When people perceive that conflictful conditions exist
(b) When conflict promoting conditions appear
(c) When people feel there is conflict
400. Coalition is a combination of two or more organisations who without losing their respective
identities work for a _______
(a) General purpose
(b) Specific purpose
(c) Common purpose
401. Internal sources of recruitment are

(a) Promotion
(b) Transfer
(c) Apprentices
402. Fundamentals of principles of scientific management include

(a) Rule of thumb
(b) Harmony in group
(c) A and b
403. Unity of command means that a person should get orders and instructions from
(a) Multiple people
(b) Only one superior
(c) Any of his superior
(d) Peers
404. Advantage of forecasting include

(a) Important for planning
(b) Coordination of activities
(c) Achievement of objectives
405. Employee walk-ins is a type of

(a) Internal source of recruitment
(b) External source of recruitment
406. Lectures, conferences, role playing is a kind of

(a) On the job training
(b) Off the job training
407. Functions of a supervisor is to

(a) Communicate orders
(b) Enforce safety
(c) Handle grievances
408. PODSCORB stands for

(a) Planning organising staffing directing controlling reporting budgeting
(b) Planning organising staffing directing controlling rectifying budgeting
(c) Planning ordering staffing directing controlling reporting budgeting
(d) Planning organising staffing directing controlling recruiting budgeting
409. Decentralisation is a disadvantage due to

(a) Growth and diversification
(b) Lack of uniformity
(c) Executive development
410. Directing the employees includes

(a) Supervising employees
(b) Leading employees
(c) Both a and b
411. Need for planned change arises due to

(a) Market situation
(b) Technology
(c) Deficiency in existing system
412. Resistance to change is due to

(a) Status quo
(b) Fear of unknown
(c) Both a and b
413. Changes in environment can be

(a) Economic
(b) Sociological
(c) Technological
414. Select the CORRECT sequence of organization behavior modification process

(a) Identify, Measure, Analyze, Intervene and Evaluate
(b) Analyze, Measure, Identify , Intervene and Evaluate
(c) Identify, Measure, Intervene, Analyze and Evaluate
(d) Both (b) and (c)
415. Which of the following connectionist theories is used in associating an unconditioned stimulus
with a conditioned one to get a response which is conditioned?
(a) Classical conditioning
(b) Negative conditioning
(c) Instrumental conditioning
(d) Cognitive conditioning
416. The process by which people try to manage or control the perceptions formed by other
people
about themselves is called :
(a) perceptual management. .
(b) impression management.
(c) group management.
(d) perceptual grouping
417. Which of the following perception sub processes involves, making note of the stimulus
received
from the environment by an individual?
(a) Sensation
(b) Interpretation
(c) Registration
(d) Confrontation
418. Creating a general impression about an individual based on a single characteristic, such as
intelligence, appearance sociability etc. is known as
(a) stereotyping
(b) halo effect.
(c) attribution.
(d) parity effect.
419. Which of the following factors influence perception?

(a) Power, Affiliation and Motivation
(b) Needs, Drives and Incentives
(c) The Perceiver, the Target and the Situation
(d) The Perceiver, the Risk Taking and the Incentives
420. Which of the following referent comparisons is used by an employee if he compares his
experiences in the present position with the experiences of those holding a similar position in another
organization?
(a) Other-inside
(b) Self-inside
(c) Other-outside
(d) Self-outside
421. The valence is said to be zero when ____________.

(a) the person prefers not attaining the outcome
(b) the person is not interested in the outcome
(c) the person is interested in the outcome
(d) both (a) and (b)
422. GAS means ________________.

(a) general availability synapse
(b) general adoption syndrome
(c) general adaptation syndrome

(d) general apprehensive syndrome
423. Stress included by stimulus is known as ___________.

(a) stressmentor
(b) stresspusser
(c) stresseor
(d) stressor
424. Which of the following are the most important contributions in the field of organizational
behavior by Dr. Hans Selye?
(a) Estress and distress
(b) Eustress and distress
(c) Impstress and epstress
(d) Rule of thumb and unity of direction
425. Which of the following three stages of GAS is used for coping with the stress situation?
(a) Alarm stage, resistance stage and exhaustion stage
(b) Depreciation stage, material stage and tecometric stage
(c) Anxiety stage, appreciative stage and masmule stage
(d) Exiting stage, remotive stage and speculative stage
426. The psychological process of recollecting information and past experiences by an individual is
referred to as
(a) perception.
(b) learning. .
(c) cognition.
(d) motivation.
427. According to the Keith Davis equation,the potential performance of an individual is determi
ned by his __________
(a) knowledge and skill.
(b) ability and situation.
(c) ability and motivation.
(d) both (a) and (c ).
428.
The Management Style adopted by some companies like IBM, Intel, HP etc. was a combination
of both American and Japanese styles. These organizations were referred to as
(a) theory x organizations.
(b) theory y organizations.
(c) theory z organizations.
(d) theory o organizations
429. Given 'O' represents human being, which of the following perspectives does S-O-
R model
represent best?
(a) Traditional
(b) Input and output
(c) Behavioral
(d) Attitude
430. Which of the following types of employees have high work ethics and are quality conscious?
(a) Young employees
(b) Middle aged employees
(c) Older employees
(d) Both (a) and (b)
431.
Which of the following are specialized cells that transmit information from one part of the body to
another part of the body?
(a) Neurons
(b) Blood cells
(c) Hormones
432. Which of the following are certain projections that branch out from the neuron; and r
eceive information from other neurons?
(a) Fibers
(b) Axon
(c) Dendrites
(d) Synapse
433. How many parts can a nervous system be divided into?
(a) 5
(b) 9
(c) 3
(d) 2
434. The probability of a particular behavior being repeated, but by withdrawing an

Undesirable consequence, is termed as
(a) positive reinforcement.
(b) punishment.
(c) negative reinforcement.
(d) behavior modification.
435.
In which of the following leadership styles DOES the leader obtain relevant information from the
subordinates and then attempt to find the solution to the problem?
(a) Autocratic I
(b) Autocratic III
(c) Group I
(d) Autocratic II
436. Which of the following is NOT an effective supervisory practice?

(a) Avoid close supervision
(b) Promoting individual cohesiveness
(c) Promoting group cohesiveness
(d) Devoting more time in planning
437. In which of the following classification of conflicts DO people always try to maintain their
image and respect?
(a) Intergroup conflict
(b) Intragroup conflict
(c) Interpersonal conflict
(d) Intrapersonal conflict
438. Which of the following methods to manage inter group relations deals with a skilled p e r s on
in resolving disputes, promoting communication and establishing friendy relations between the
conflicting parties?
(a) Task force
(b) Team
(c) Liaison role
(d) Resolving role
439. Which Fayol`s theory principle states that activities in an organization should be planned
in a way that they all come under one plan and are supervised by only one person?
(b) Unity of direction
(c) Discipline
(d) Scalar chain
440. What is referred to the selfperception of how well a person can cope with situations as
and when they arise?
(a) Self-esteem
(b) Self-efficacy
(c) Self-motivation
(d) Self-improvement
441. Match the following.
a. Extraversion (i) Creative and Innovative
b. Agreeableness (ii)
Marketing, Public relations and Human resources
c. Conscientiousness (iii) Good natured, Co-Operative and Trusting
d. Emotional stability (iv) Organized, Self –disciplined and
Responsible
e. Openness’ to experience (v) Withstand stress and tend to be calm
(a) a(ii), b(iii), c(iv), d(v), e(i)
(b) a(iii), b(iv), c(ii), d(i), e(v)
(c) a(ii), b(i), c(iii), d(iv), e(v)
(d) a(iii), b(iv), c(v), d(ii), e(i)
442. That refers to the degree to which individual is practical in his approach, maintains emo
tional distance from others and believes ends justify means. Which of the following is this referred to?
(a) Self –Monitoring
(b) Risk taking
(c) Self – Esteem
(d) Machiavellianism
443.
This is concerned with the employee’s emotional attachment and involvement with
the organization. Which of the following represents organizational commitment?
(a) Normative commitment
(b) Continuance commitment
(c) Affective commitment
(d) Effective commitment
444.
According to Levinson, the maximum development in one’s personality takes place during ____
(a) age-thirty transition
(b) mid-life transition
(c) age-fifty transition
(d) late-adult transition
445. In which of the following, does the productivity of some people increase further, while for s
ome the productivity may remain stagnant?
(a) Exploration
(b) Maintenance
(c) Decline
(d) Existence
446. In which of the following, do attitudes provide a standard of reference which allows people to
understand and explain their environment?
(a) Adjustment-function
(b) Ego-defensive function
(c) Value-expression function
(d) Knowledge-function
447. Which of the following motives is learned or acquired over a period of time such as
power,achievement and affiliation?
(a) Affection motive
(b) Secondary motive
(c) Primary motive
(d) Stimulus motive
448. Which of the following theories does say that ‘motivation alone cannot ensure
successfulperformance of a task, the employee should have a clear perception of his role and the r
equired skills and abilities’?
(a) Equity theory
(b) The Porter-Lawler model
(c) Attribution theory
(d) The continuum model
449. Match the following approaches with the relevant components.

1. Classical approach a) Operations management
2. Behavioral approach b) Hawthorne studies
3. Quantitative approach c) Administrative management
4. Modern approach d) Quality management
(a) 1-(c), 2- (d), 3-(b),4-(a)
(b) 1-(c), 2- (a), 3-(b),4-(d)
(c) 1-(c), 2- (b), 3-(a),4-(d)
(d) 1-(c), 2- (d), 3-(a),4-(b)
450. Which of the following is the module of behavioral approach?

(a) Administrative management
(b) Group influences
(c) Management sciences
(d) The systems theory
451.
The study that focuses on reducing the unnecessary activities in work and thus reducing
thefatigue and wastage of time is known as :
(a) Time study.
(b) Fatigue study.
(c) Work study.
(d) Motion study.
452. What is meant by Unity of Command?

(a) Each employee should receive orders from a number of superiors
(b) Each employee should receive orders from one superior only
(c) Each employee should receive orders from Board of Directors
(d) Each employee should receive orders from subordinates
453. Which of the following principles is attributed to grouping members who belong to the
same department in an organization?
(a) Continuity
(b) Figure Ground
(c) Closure
(d) Proximity
454. The behavioral science that contributes ‘motivation’ to Organizational Behavior is

(a) Sociology.
(b) Political science
(c) Psychology.
(d) Anthropology.
455. Which of the following organizations does believe in providing lifetime employment to
the employees?
(a) American
(b) Japanese
(c) European
(d) Italian
456. Which of the following experiments revealed that there is some other variable beyond w
age,
hours of work and working conditions that made a significant impact on productivity?
(a) Relay experiment
(b) Interview experiment
(c) Wiring experiment
(d) Illumination experiment
457. Law of Effect states that responses followed by pleasant consequences (are)
(a) less likely to be repeated.
(b) not at all repeated.
(c) lead to unpleasant consequence.
(d) more likely to be repeated.
458. Observational learning is the essential component of ______________, where learning

could occur through imitation of others.
(a) customary process
(b) habitual process
(c) modeling process
(d) routine process
459. A bright light, a strong odor or a loud noise are more likely to be noticed than a dim light, a
weak odour or a soft sound. Which of the following principles of attention is mentioned here?
(a) Intensity
(b) Moderation
(c) Repetition
(d) Replication
460.
In which of the following organizations are employees manipulative and not willing to take
any risks?
(a) Model I
(b) Model II
(c) Type A
(d) Type B
461. Which of the following perspectives DOES attempt to explain human behavior with the
S-O-B model?
(a) Traditional perspective
(b) Modern perspective
(c) Behavioral perspective
(d) Behavior as an input-output system
462. In which of the following perceptual processes are perceived objects are separated
from their general background by the perceiver?
(a) Figure-ground
(b) Perceptual Constancy
(c) Perceptual Context
(d) Perceptual Content
463. Which of the following theories DOES refer to the incompatibility that an individual may p erceive
between two or more of his attitudes, or between his behavior and attitudes?
(a) Cognitive Dissonance Theory
(b) Argyris` Immaturity to Maturity Theory
(c) Hall’s Career Stage Model
(d) Levinson`s Theory of Adult Life Stages
464. Which of the following is NOT the attribute of individual politicking?

(a) Pressure to perform
(b) Personality traits
(c) Background
(d) Experience
465. Which of the following is the fourth step in the process of negotiation?
(a) Preparation and planning
(b) Defining rules
(c) Bargaining and problem solving
(d) Clarification and justification
466. Which of the following DOES emphasize that an individual should know about oneself,
accept responsibility for his actions and regulate any dysfunctional behavior?
(a) Team-building approach
(b) Formal group diagnostic method
(c) Role analysis technique
(d) Gestalt approach
467. In which of the following leadership types DOES a leader give his subordinates challenging
tasks and higher responsibilities in order to develop them?
(a) Supportive leadership
(b) Accommodative leadership
(c) Participative leadership
(d) Achievement-oriented leadership
468. Which of the following DOES refer to the ability to modify or change people in general ways
like changing their performance and satisfaction?
(a) Power
(b) Authority
(c) Accountability
(d) Influence
469. Which of the following theories DOES state that leaders establish a special relationship
with a small group of subordinates, usually early in their interaction?
(a) LMX theory
(b) Path-goal theory
(c) Blake and Mouton theory
(d) Hersey and Blanchard’s theory
470.
Which of the following theories of organization DOES lay more stress on the environment and
establish the relationship between organizational structure and the environment?
(a) Contingency theory
(b) Ecological theory
(c) Learning theory
(d) Biological theory
471. In which of the following roles within an informal group a person is an aggressive achiever
who makes the team action-oriented?
(a) Monitor-evaluator
(b) Implementer
(c) Shaper
(d) Plant
472.
Which of the following DOES refer to the authority to take decision within one’s area of operations
without having to get anyone’s approval?
(a) Enrichment
(b) Enlargement
(c) Enhancement
(d) Empowerment
473. In which of the following referent comparisons DO employees compare their experience
in the present position with the experiences of those holding a similar position in the same
organization?
(a) Self-outside
(b) Other-inside
(c) Self-self
(d) Self-inside
474.
Which of the following theories DOES state that leadership traits can be acquired with training
and experience?
(a) Great person theory
(b) Gestalt theory
(c) Subordinate theory
(d) Behavioral theory
475. Which of the following cognitive processes DOES occur in a state of mental disorder a
nd is characterized by illogical thought processes?
(a) Austic thinking
(b) Daydreaming
(c) Sorting
(d) Pathological thinking
476. In which of the following roles within an informal group is a person a careful and
Detailed examiner who ties up loose ends?
(a) Complete-Finisher
(b) Resource Investigator
(c) Team worker
(d) Coordinator
477. Which of the following terms DOES refer to people drawing general impression about
Others based on a single characteristic, such as intelligence, aggressiveness, etc.?
(a) Attribution
(b) Stereotyping
(c) Halo Effect
(d) Primacy Error
478. In which of the following processes of power DOES the target find the agent attractive and
Seek to emulate his behavior?
(a) Internalization
(b) Externalization
(c) Acquaintance
(d) Identification
479. Which of the following disciplines DOES provide insights into the aspects of decision and
choice,factors that need to be considered while choosing the most suitable options?
(a) Political Science
(b) Anthropology
(c) Economics
(d) Ergonomics
480. Which of the following traits DOES refer to the extent to which a person is responsible
and achievement oriented?
(a) Extroversion
(b) Introversion
(c) Conscientiousness
(d) Agreeableness
481. Which of the following DOES refer to the equilibrium between the degree of dependency
of the target and the degree of power exercised by the agent?
(a) Balancing imbalance
(b) Maintaining imbalance
(c) Reacting to power
(d) Power balance
482. Which of the following DOES enable the employees to widen their interests and get inform
ation relating to recent developments in their field?
(a) Grapevine
(b) Gangplank
(c) Network
(d) Communication
483.
Which of the following DOES refer to the ability of an individual to analyze complex situations and
to rationally interpret the available information?
(a) Individual skills
(b) Technical skills
(c) Conceptual skills
(d) Group skills
484. Which of the following DOES refer to the quality of voice, volume, pitch, speed and non
fluencies used to convey a message?
(a) Body language

(b) Para language
(c) Kinesics
(d) Expressions
485. Which of the following is the third step in the O.B. Mod Process?
(a) Identify
(b) Measure
(c) Intervene
(d) Analyze
486. Which of the following DOES refer to the degree to which an individual is practical
in his approach, maintains an emotional distance from others, and believes that ends justify means?
(a) Risk taking
(b) Locus of control
(c) Machiavellianism
(d) Self-monitoring
4 8 7. Which of the following dimensions DOES refer to a leader considering employees as a means to
achieve goals and pay little or no attention to any problems that the employees may face?
(a) Development-oriented
(b) Production-oriented
(c) Training-oriented
488. Which of the following systems of management suggested by Likert is called

exploitive-authoritative style?
(a) Systems 1 management
(b) Systems 2 management
(c) Systems 3 management
(d) Systems 4 management
489. In which of the following changes, does the new state of things have a completely
different nature from the old state of things?
(a) Third order change
(d) Reverse order change
490. Which of the following is based on the assumption that there are two forces –
driving forces and
restraining forces that play a role in attaining a state of equilibrium in the organization?
(a) Abad’s model
(b) Lippitt`s approach
(c) Beckhard`s approach
(d) Force-field analysis
491. Which of the following approaches is based on the assumption that there exist one or
more solutions to a problem that could result in a win-win situation?
(a) Collective bargaining
(b) Individual bargaining
(c) Distributive bargaining
(d) Integrative bargaining
492. In which of the following leadership styles DOES the leader discuss the problem wit
h his subordinates and listens to their ideas and suggestions?
(a) Consultative II
(b) Consultative I
(c) Group II
(d) Participative II
(b) Defining rules

494. Which of the following DOES emphasize that an individual should know about oneself, a
ccept responsibility for his actions and regulate any dysfunctional behavior?
495. Which of the following DO refer to the cognition of an individual that a certain mode of
conduct or style of behavior is socially preferable to the other modes of conduct or behavioral styles?
(a) Belief
(b) Norm
(c) Culture
(d) Value
496. Which of the following selection tests refer to testing the components such as reaso
ning
judgment, memory and the power of abstraction?
(a) Intelligence tests
(b) Interest tests
(c) Aptitude tests
(d) Polygraph tests
497. Which of the following approaches treat the organizational goals and the employee ne
eds as being mutual and compatible?
(a) Human relations approach
(b) Human resources approach
(c) Classical management approach
(d) Modern management approach
498. Which of the following managerial functions of the human resource department
involves establishing an intentional structure of roles for people in an organization?
(a) Organizing
(b) Controlling
(c) Directing
(d) Planning
499. Which of the following concepts refer to the system of matching the available resources,
either internally or externally, with the demand that the organization expects to have
over a period of time?
(a) Human Resource Process
(b) Human Resource Performance
(c) Human Resource Planning
(d) Human Resource Information System
500. Which of the following do you think are interrelated and inter-dependent?
(a) Job satisfaction and productivity
(b) Job content and productivity
(c) Job specification and productivity
(d) Job description and productivity
501. Which of the following organizational structures reduce redundancy and enable free flow of i
dea and information among the employees?
(a) Tall organizational structure
(b) Flat organizational structure
(c) Project organizational structure
(d) Matrix organizational structure
502. Which of the following managerial functions of the human resource department refers
to the measurement and rectification of activities to ensure that events conform to plans?
(a) Directing
(b) Staffing
(c) Controlling
(d) Organizing
503. Which of the following concept suggests that a worker is basically motivated by the mo
netary gains and that financial incentives alone could maximize the worker’s output?
(a) Economic man
(b) Time-motion
(c) Rule-of-the thumb
(d) Piece-rate
504. Which of the following provides the information on the current human resource available i
n the
organization?
(a) Job evaluation
(b) Job design
(c) Job content
(d) Job analysis
505.
Which of the following techniques of downsizing does an organization adopt when the demand
for their products or services comes down, and the supply cannot be maintained at the existing
levels?
(a) Outplacement
(b) Leave of absence without pa
(c) Work sharing
(d) Lay-offs
506.
Which of the following process serves the purpose of selling the organization to the candidate?
(a) Recruitment process
(b) Selection process
(c) Development process
(d) Training process
507.
Which of the following roles does the HR department play in advising the management,
including the top management on various people-related issues and communicating management
decisions to the employees?
(a) A facilitator
(b) A regulator
(c) A specialist
(d) A controller
508.
Which of the following results in low employee turnover, low absenteeism, and low accident rates
in shop floor jobs?
(a) Induction
(b) Placement
(c) Stimulation
(d) Selection
509. Which of the following methods of dealing with surplus manpower refers to the techniq
ue of getting rid of ageing employees and infusing fresh talent into the organization?
(a) Outplacement
(b) Lay-offs
(c) Retrenchment
(d) Early/voluntary retirement
510. If on falling sick your organization allows you to work from home provided you report to office
once in a week, which of the following concept is that?
(a) Flextime
(b) Telecommuting
(c) Working from home
(d) Telemarketing
511. A situation where there are more number of people available in the job market due to
mushrooming of management
Institutions, identify the environmental factorsthat determine the effectiveness of the
recruitment program .
(a) Law of land
(b) Situation in the labour market
(c) Reputation of organization
(d) Culture, social attitudes and beliefs
512.
Which of the following interviews refer to the interviewer selecting the questions to be asked and
plans the interview well in advance?
(a) Social interview
(b) Formal interview
(c) Stress interview
(d) Selection interview
513. Which of the following concepts refer to identifying and grooming an employee for a vacan
cy that would arise in the future?
(a) Career planning
(b) Performance planning
(c) Succession planning
(d) Corporate-level planning
514. Which of the following methods for determining the validity of a selection method refer
to the
degree to which the validity of the selection method, established in one context, can be extended
to other ‘primary contexts’?
(a) Legality
(b) Utility
(c) Reliability
(d) Generalizability
515. Which of the following roles is played by an HR Manager when training and develo
pment activities are planned and conducted and performance appraisals are done?
(a) The consultant
(b) The service provider
(c) The facilitator
(d) The auditor
516.
Which of the following level Human Resource Planning takes into consideration the changing
market situation, strategic plans of the organization and the technological changes anticipated at
a macro level?
(a) Intermediate-level planning
(b) Operations planning
(c) Planning short-term activities
517. Which of the following refers to the obligation of a manager to carry out the duties assign
ed to him?
(a) Authority
(b) Influence
(c) Power
(d) Responsibility
518. Which of the following job specifications include stability, adaptability, flexibility and is co
mmon across most of the jobs?
(a) Physical specifications
(b) Mental specifications
(c) Group specifications
(d) Emotional and social specifications
519. Which of the following characteristics of a job refers to the degree to which the job
makes an impact on the lives or work of other people?
(a) Autonomy
(b) Feedback
(c) Task identity
(d) Task significance
520.
Which of the following characteristics of selection methods produces consistent results across
different situations and times?
(a) Legality
(b) Validity
(c) Generalizability
(d) Reliability
521. Which of the following is the third step in the process of job enrichment?
(a) Providing scope for change
(b) Concentrating on motivational factors
(c) Changing the content of the job
(d) Making a list of changes
522. Which of the following steps in the process of job enrichment is succeeded by changi
ng the content of the job rather than changing employees?
(a) Making a list of changes and enrichment in job design
(b) Providing adequate training, guidance, encouragement and help
(c) Introducing the enriched job carefully, so that there is no resistance towar
ds the
implementation of job enrichment programs.
(d) Administering corrective discipline
523.
Which of the following concept refers to the process of ascertaining qualifications, experience,
skill, knowledge of an applicant with the purpose of determining his/her suitability for a job?
(a) Staffing
(b) Introducing
(c) Induction
(d) Selection
524.
Which of the following approaches to Human Resource Management suggests that treating
employees with respect would improve employee satisfaction and help in achieving higher
productivity?
(a) Scientific Management Approach
(b) Human Resource Approach
(c) Human Accounting Approach
(d) Human Relations Approach
525.
Which of the following tests measure an individual’s ability to learn a given job, when adequate
(a) Interest tests
(d) Aptitude tests
526. Which of the following concept refers to attributing an appropriate value to the worth of
human resources in the organization?
(c) Human resource management
(d) Human resource evaluation
527.
The employment agencies in which fresh graduates and technicians in search of suitable
employment would first register themselves are known as
(c) Public or state agencies
(d) Regional agencies.
528. Which of the following refers to the monetary and non-monetary benefits given to the
employees during their employment and these benefits are in no way connected to the employee’s
performance?
(a) Fringe benefits
(b) Incentives
(c) Wage and salary administration
(d) Base salary
529.
Which of the following types of organization facilitates close supervision and provides for
continuous interaction between the supervisor and his subordinates?
(a) Flat organization
(b) Tall organization
(c) Vertical organization
(d) Matrix organization
530.
Which of the following concepts refer to identifying one’s career goals and formulating plans of
reaching them through various means like education and work experience?
(a) Career development
(b) Management development
(c) Human Resource Development
(d) Training
531.
Which of the following refers to the departments or employees that perform a support function
and contribute indirectly to the business of a firm?
(a) Staff function
(b) Line function
(c) Employee functions
(d) Organizational function
532.
Which of the following methods of job analysis refers to gathering all the job related information
from supervisors?
(a) Questionnaire method
(b) Expert method
(c) Observation method
(d) Technical conference method
533. Which of the following methods of job analysis describes jobs in terms of worker activities?
(a) Position analysis questionnaire
(b) Questionnaire method
(c) Technical job analysis
(d) Critical incident technique
534. Which of the following measure the job related proficiency and knowledge of the applicants
and is used to select experienced candidates?
(a) Achievement tests
(b) Intelligence tests
(c) Aptitude tests
(d) Interests tests
535.
Which of the following operative functions include functions like job analysis, human resource
planning, recruitment, selection, placement and induction?
(a) Loaning
(b) Retention
(c) Employment
(d) Evaluation
536.
Kaivalya is the Human Resource Manager in TCS. He is efficient in the functions of payment that
has to be adequate, equitable and fair to the employees. It encompasses base salary, incentives,
bonus and benefits and is based on job evaluation. Which of the following functions is performed
by Kaivalya?
(a) Employee relations
(b) Employment
(c) Compensation
(d) Performance Appraisal
537.
Which of the following types of selection interviews has no predetermined framework of
questions and helps the candidate remain comfortable during the course of the interview because
the interaction tends to proceed naturally?
(a) Panel interview
(b) Group interview
(c) Selection interview
(d) Unstructured interview
538.
Which of the following organization structures is characterized by flexibility, value for knowledge,
low levels of formalization, decentralized style of management and is more suitable for operating
effectively in dynamic environments?
(a) Organic structure
(b) Whole structure
(c) Inorganic structure
(d) Technical structure
539.
Which of the following tests is used to assess the leadership qualities, initiative, negotiating skills,
communication skills and decision-making skills of a candidate?
(a) Simulated situational tests
(b) Interest tests
(c) In-basket exercises
(d) Group discussions
540.
Which of the following characteristics of job specifications include the ability to make judgments,
ability to undertake research, creativity, teaching ability, maturity, selfreliance and the ability to be
authoritative?
(a) Social specifications
(b) Collective specifications
(c) Mental specifications
(d) Behavioral specifications
541.
Which of the following methods for determining the validity of a selection method refers to the
degree to which the value provided by the selection method enhances the effectiveness of an
organization?
(a) Legality
(b) Reliability
(d) Utility
542. Which of the following characteristics of a job refers to the degree to which a job r
equires completion of a work, from the beginning to the end?
(a) Task significance
(b) Autonomy
(c) Task identity
(d) Feedback
543. Which of the following is the basic standard that any selection method should satisfy?
(a) Consistency
(b) Stability
(c) Legality
(d) Effectiveness
544. Which of the following is the third step in the process of human resource planning?
(a) Analyzing the impact of the organizational strategy
(b) Forecasting the quality and quantity of human resources
(c) Involving the line managers in determining human resource needs
(d) Matching the current human resources with the future requirement
545. Identify the second element in the selection process.

(a) Organizational objectives
(b) Job design and Job description
(c) Job specification
(d) Selection
546.
Which of the following steps in the process of selection is succeeded by initial screening
interview?
(a) Analyzing the application blank
(b) Core and departmental interviews
(c) Conducting tests and evaluating performance
(d) Job offer
547.
Which of the following managerial functions involves coordination between different department to
ensure maximum utilization of all resources including human resources?
(a) Controlling
(b) Planning
(c) Leading
(d) Directing
548.
Which of the following types of organization refers to employees meeting together for a game of
snooker and sharing common ideas, interests and information?
(a) Flat
(b) Informal
(c) Technical
(d) Hybrid
549. Which of the following steps in the process of selection is preceded by reference checks?
(a) Preliminary interview
(d) Job offer
550.
Which of the following tests refer to the simulated office situation where the candidate has to
respond to letters, clear important documents schedule his/her meetings and make important
business related decisions?

(a) In basket exercises
(b) Group discussions
(c) Personality tests
(d) Simulated situational tests
551. Which of the following refers to the extent to which an employee’s work meets
his/her professional needs?
(a) Quality of Work Life
(b) Total Quality Management
(c) Quality Circles
(d) Worker Productivity
552.
Which of the following refers to the departments or employees of a firm that perform the core
activities and contribute to its business directly?
(a) Staff functions
(b) Line managers
(c) Department functions
(d) Organization functions
553.
Which of the following approaches to job design states that the manager determines the best way
of performing the job?
(a) Human Resource Approach
(b) Sociotechnical Approach
(c) Job Characteristics Approach
(d) Engineering Approach
554. Which of the following is the second step in the process of human resource planning?
(b) Involving the line managers in determining human resource needs
(c) Matching the current human resources with the future requirement
(d) Developing an action plan to meet future requirements
555.
In which of the following techniques of dealing with surplus manpower DO workers agree to be
paid less and put in fewer hours of work to avoid their colleagues being retrenched?
(a) Reduced work hours
(b) Work sharing
(c) Loaning
(d) Leave of absence without pay
556.
Which of the following enables managers to act, exert influence and make decisions in carrying
out their responsibilities?
(a) Power
(b) Accountability
(c) Authority
(d) Responsibility
557. Which of the following job specifications include analytical ability; data interpretation
ability; decision-
making ability and the requirement level of these abilities vary according to the level of
the job?
(c) Behavioral specifications
(d) Group specifications
558.
Which of the following techniques of dealing with surplus manpower DOES an organization adopt
when they do not want their middle/top level managers to stagnate or leave the company?

(b) Early/voluntary retirement
(c) Loaning
(d) Work sharing
559. Marketers must adopt a different approach while selling intangible products.Which
of the following combinations does truly represent intangible products?
(a) Goods and ideas
(b) Goods and products
(c) Goods and services
(d) Services and ideas
560. Which of the following DOES NOT represent the characteristics of the Marketing Era?
(a) It focused on coordinated marketing management
(b) It emphasized the importance of consumer needs and wants
(c) It focused only on profitability
(d) It restricted forcible selling of products to customers without offering utility
561. According to Arthur D Little, there are a number of factors that influence
performance of businesses. Identify the factors.
(i) Stake-holders
(ii) Processes
(iii) Resources
(iv) Organization
(a) Only (i)
(b) Only (iii) and (iv)
(c) Only (ii), (iii) and (iv)
(d) (i), (ii), (iii) and (iv)
562.
An evaluative comparison between a product's performance and the buyer's expectations is the
basis for determining
(a) Customer Loyalty.
(b) Customer Delivered Value.
(c) Customer Choice.
(d) Customer Satisfaction.
563. Which of the following is influenced by the geographical location of an organization?

(a) Organizational functions
(b) Organizational secrets
(c) Organizational culture
(d) Organizational goal
564.
The process of collecting information about political, legal, regulatory, societal, economic,
competitive and technological forces that may affect its marketing activities is called
(a) environmental analysis.
(b) survey of environment.
(c) environmental scanning.
(d) assessment of environment.
565.
You are directed to study the factors that are close to the company that affect its ability to serve
its customers the company, suppliers, marketing intermediaries, customer markets, competitors,
and publics. What are you studying?
(a) The macro environment
(b) The global environment
(c) The microenvironment
(d) The national environment
566.
What type of competitive structure does exist when a firm produces a product that has no close
substitutes?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Duopoly
567.
In which of the following structures, are usually branded products sold and heavy marketing and
advertising are its key features?
(a) Monopolistic
(b) Monopoly
(c) Multipoly
(d) Oligopoly
568.
Which of the following does create ample opportunities for marketers to venture into new regions?
(a) Trade barrier
(b) Trade alliances
(c) Trade wars
(d) Trade meal
569.
The software industry has to be prepared to unlearn the existing software (language) and learn
new software. The software professionals have to constantly keep a watch on
(a) career opportunities. .
(b) technological changes.
(c) regulatory changes
(d) political changes.
570.
The airline industry comprising of companies such as Air India, Singapore Airlines, Malaysian
Airlines etc have high entry barriers due to high costs involved. Which type of competitive
structure do they come under?
(a) Monopoly
(c) Oligopoly
(d) Pure competition
571.
In buying decision process, which of the following is NOT considered as “personal source of
information”?
(a) Family
(b) Friends
(c) Journal
(d) Reference groups
572. Organizational buying process does consist of which of following stages?
(i)Problem reorganization, general needs description
(ii)Production specification and supplier search
(iii)Proposal solicitation, supplier selection
(iv)Order routine specification performance review
(v)Problem reorganization value analysis
(a) Only (i) and (ii)
(b) (i), (ii), (iii), (iv) and (v)
(c) Only (i), (ii) and (iii)
(d) Only (i), (ii) and (iv)
573.
A company producing ink pens wants to venture into producing ball point pens. They need to
procure raw materials from the same supplier. What is this process of buying called?
(a) Straight rebuy
(b) New task buying
(c) Modified rebuy
(d) Routinized buying
574.
In a business organization, which of the following divisions does generate the revenues essential
for the survival and growth of the firm?
(a) Marketing
(b) Finance
(c) R&D
(d) Manufacturing
575.
In the olden days, people used to exchange goods and services, instead of money, according to
the needs and availability. This system of exchange is known as
(a) marketing system.
(b) societal system.
(c) need based system.
(d) barter system.
576.
Technological advancement is rapidly changing the marketplace and causing intense competition
among firms. To cope with the changing dynamics, firms use various approaches. They are
divided into company responses. Which of the following is the company response?
(a) Customization
(b) Integrated marketing communication
(c) Target marketing
(d) Outsourcing
577. Which of the following is / are the steps to identify the market segment?
(i)Analysis
(ii)Survey
(iii)Benefit
(iv)Profiling
(b) All (i), (ii), (iii) and (iv)
(d) Only (ii) and (iii)
578.
Which is the factor that does influence the organizational purchase process by providing
information about the general market situation, growth rate, poverty rate and unemployment rate?
(a) Political factors
(b) Social factors
(c) Legal factors
(d) Economic factors
579.
Marketers are providing better “Form Utility” by creating product to suit individual’s need.
company’s inviting inputs from customers and seeking their ideas in designing better and more
suitable products is an example of
(a) reengineering.
(b) outsourcing.
(c) e-commerce.
(d) customization.
.
580. The four P's of the marketing mix are
(a) personnel, priorities, placement, and profits.
(b) promotion, product, personnel, and place.
(c) product, place, politics and economy.
(d) product, promotion, price and place.
.
581. Common sense usually helps you in analyzing
(a) marketing problems
(b) when to diversify.
(c) what segment to drop
(d) future opportunities.

582.
Which of the following sets of activities can be called primary activities involved in value chain?
(a) Inbound logistics, operations, procurement and firm infrastructure
(b) Inbound logistics, operations, outbound logistics, marketing and sales and services
(c) Outbound logistics, operations, procurement, firm infrastructure and services
(d) Outbound logistics, operations, services, procurement and firm infrastructure
583. Activity based costing (ABC) usually helps an organization to assess

(a) profitability of the organization.
(b) strengths and weaknesses of the competitors.
(c) which customers are profitable and which ones are subsidized.
(d) internal environment of the organization.
584. The Indian Oil campaign “Save oil-save India” is a form of de-
marketing its product. This is
basically the company’s initiative to maintain the ecological balance by creating an awareness of
oil conservation. This in turn gives the opportunity to the company to manage its
(a) technological environment.
(b) economic environment.
(c) legal environment.
(d) natural environment.
585.
When anybody registers for an email ID with any of the email service providers, viz.
rediffmail.com or yahoo.com, while registering, a person has various options to check in the
registration form. If an individual checks those options, these email service providers send various
information on sports, news, weather and other subjects to the individual’s email address. This is
an example of
(a) Web casting.
(b) Newsletters.
(c) E-mails.
(d) Brochures.
586.
Which of the following is a method for maintaining the minimum inventory of raw materials and
finished goods?
(a) Just-in-time
(b) Material requirement planning
(c) Production schedule
(d) Delivery schedule
587. Which of the following is a change in behavior based on experience?

(a) Selective retention
(b) Dissonance
(c) Learning
(d) Motivation
588. What is the difference between ‘total customer value’ and ‘total customer cost called?
(a) Value analysis
(b) Customer cost
(c) Customer desired value
(d) Eigen value
589. Which of the following is NOT a method of online advertising?

(a) Web communities
(b) Bulletin boards
(c) Banners
(d) Newsgroup
590. According to BCG Matrix, question marks are

(a) SBU’s with a large market share in a fast growing market.
(b) SBU’s with a low market share in an intensely competitive, mature industry
characterized by low profits.
(c) SBU’s with an uncertainty about their future.
(d) SBU’s which are characterized by low market share and high growth.
591.
When a foreign product enters India, the Indian government imposes a kind of tax on those
goods. What is this tax on the foreign goods called, in the context of global trade?
(a) Tariff
(b) Restriction
(c) Embargo
(d) Barriers
592. A firm is considered socially responsible, when it fulfills its economic, legal, ethica
l and …………. commitments.
(a) environmental
(b) global
(c) organizational
(d) philanthropic
593.
Which of the following is NOT a principle of seven modern marketing principles that address the
public policy towards marketing?
(a) Principle of economic efficiency
(b) Principle of consumer protection
(c) Principle of curbing potential harm
(d) Principle of profiteering
594.
McDonald’s world popular product is Hamburger which is made of beef. But, when it started
operating in India, it replaced this Hamburger with various vegetable burgers. Which global
environmental factor forced McDonald to do so?
(a) Legal environmental factor
(b) Cultural environmental factor
(c) Economic environmental factor
(d) Technological environmental factor
595. ‘Emami Fair and Handsome’ cream is an example of

(a) lifestyle segmentation. .
(b) value segmentation.
(c) benefit segmentation
(d) usage rate segmentation.
596. What does SAFTA stand for?

(a) South Asian Free Tariff Agreement
(b) South Atlantic Free Trade Agreement
(c) South African Free Trade Agreement
(d) South Asia Free Trade Agreement
597.
Which of the following is the type of marketing where the company gathers as many names as
possible through mass mailing and forms a database?
(a) Personalized marketing
(b) Database marketing
(c) Lifetime value marketing
(d) Carpet bombing
598. Which strategy in NOT used by a market leader in its defense? Identify from the following.
(a) Guerilla attack
(b) Mobile attack
(c) Flank attack
(d) Position attack
599. Needs differ from wants because

(a) wants are a socialized manifestation of underlying needs.
(b) needs are a socialized manifestation of underlying wants.
(c) needs are historical and wants are about the future.
(d) wants are historical and needs are about the future.
600.
PepsiCo, a cola major in the world has bought a number of restaurant chains as its growth
strategy. Among many, Pizza Hut, KFC are a few names, although currently Pepsi Co. has spun
off them. This type of strategy of the company is called
(a) lateral integration.
(b) vertical integration.
(c) forward integration.
(d) horizontal integration.
601. Which of the following deals with the study of the characteristics of human population?
(a) Socio-cultural
(b) Demographics
(d) Natural environment
602. SWOT analysis helps in formulating effective strategies for the company to deal with
(a) competitors.
(b) suppliers.
(c) distributors.
(d) customers.
603. Which of the following is not a form of direct marketing?

(a) Telemarketing
(b) Kiosk Marketing
(c) Catalog marketing
(d) Newspaper advertising
604.
Unlike products, services cannot be inventoried or stored for future consumption. This points to
one unique feature of services. Identify it.
(a) Heterogeneity
(b) Inseparability
(c) Intangibility
(d) Perishability
605. Which of the following is not the stage or stages of the ‘competitive intelligence system’?
(a) Setting up the system
(b) Value analysis
(c) Data collection
(d) Analysis and evaluation of data
606. The factor which differentiates a service from a product is

(a) Homogeneity.
(b) Separability.
(c) Accessibility.
(d) Intangibility.
607. Which of the following is an example of personnel differentiation?

(i) HPCL train their distributors to provide better services to the end user.
(ii) McDonald trains its employee to be friendly, respectful to the customers.
(iii) Linux trains their users on how to operate the software.
(iv) Reliance Petroleum trains the employees of their customers to provide a better service to the
customers.
(v) Consumer redressal forum trains people about the rights they have of being a customer.
(a) only
(b) only
(c) (iii), (iv) and (v)
(d) (i), (ii) and (v)
608.
Currently almost all automobile companies are following ‘Euro II’ norms while plying their
operations in India. In which concept of marketing can we put these automobile companies for
their act of this kind?
(a) Managerial concept
(b) Marketing concept
(c) Societal marketing concept
(d) Production concept
609.
What is the objective of a bank, if it is conducting a market research to find out the general public
opinion about the bank?
(a) Image assessment
(b) Future prediction
(c) Consumer behavior survey
(d) New product development
610.
Despite the lack of enough opportunities to differentiate the service offerings, service
organizations try to gain customer loyalty by differentiating their services on the basis of the
(a) offer, delivery and image of the organization.
(b) offer, process and image of the organization.
(c) offer, perishability and image of the organization.
(d) offer, feel and image of the organization.
611. Which is not an element of ‘Intensity of rivalry among firms’ – One of the forces
of Michael Porter’s five forces model?
(a) Concentration ratio
(b) Diversity of rivals
(c) Market share
(d) Government policies
612.
The service that are purchased by individual customers for their own consumption are defined as :
(a) Business to Business Services
(b) Consumables Services
(c) Consumed Services
(d) Consumer Services
613. Which of the following emphasizes the importance of satisfying the customers by providing
the highest quality standards at all times?
(a) Total quality management
(b) Value delivery system
(c) Just in time
(d) Competitive intelligence system
614. Organization structure primarily refers to

(a) how activities are coordinated and controlled
(b) how resources are allocated
(c) the location of departments and office space
(d) the policy statements developed by the firm
615. The job design would be LEAST formal in a

(a) matrix structure
(b) professional bureaucracy
(c) divisionalized structure
(d) machine bureaucracy
616. The purpose of job enrichment is to

(a) expand the number of tasks an individual can do
(b) increase job efficiency
(c) increase job effectiveness
(d) increase job satisfaction of middle management
617. Individuals such as Albert Einstein, Edwin Land and Steven Jobs lead through which type of
power?
(a) Legitimate
(b) Reward
(c) Expert
(d) Charismatic
618. Strategic planning as a broad concept consists of

(a) corporate strategy and business strategy
(b) strategy formulation and strategy implementation
(c) inputs and outputs
(d) environmental analysis and internal analysis
619. Early theories about how individuals make decisions were based on the concept of a(n)
(a) utilitarian philosophy
(b) action man
(c) economic man
(d) attentive man
620. Communication begins with

(a) encoding
(b) idea origination
(c) decoding
(d) channel selection
621. Functional managers are responsible

(a) for a single area of activity
(b) to the upper level of management and staff
(c) for complex organizational sub-units
(d) for obtaining copyrights and patents for newly developed processes and equipment
622. Policies are sometimes defined as a(n)

(a) shortcut for thinking
(b) action plan
(c) substitute for strategy
(d) substitute for management authority
623. One method of bringing a group to agreement is called

(a) proportional values
(b) consensus
(c) accordance
(d) conformance
624. In general, if a policy is not thought out and established

(a) a situation requiring action will arise
(b) social issues will cause change in the organization
(c) managers will be hired from the outside
(d) there will be significant staff turnover
625. The problem-solving process begins with

(a) clarification of the situation
(b) establishment of alternatives
(c) identification of the difficulty
(d) isolation of the cause
626. All of the following are requirements for successful value chain management EXCEPT :
(a) Coordination and Collaboration
(b) Continuous Process Improvement
(c) Organizational Processes
(d) Technology
627. An individual's belief that he or she is capable of performing a task is called:

(a) Self esteem
(b) Self direction
(c) Self efficacy
(d) Self confidence
628. In which stage of the conflict process does conflict become visible?
(a) Illumination
(b) Intentions
(c) Behaviour
(d) Cognition
629. --------is an attempt through a formal program to integrate employees’ needs and wellbeing
with the intention of improved productivity, better involvement and satisfaction
(a) Quality of Work life
(b) Quality Circle
(c) Alternative Work schedule
(d) Job Redesign
630. ------------- is small groups of workers who meet regularly with their supervisor to solve work
related problem
(b) Quality Circle
(d) Job Redesign
631. The concept of Work- Week is related with

(b) Quality Circle
(d) Job Redesign
632. When a group gives some of its leadership positions to the members of other group, it is
(a) Contracting
(b) Co-opting
(c) Co-alition
(d) Competition
633. The LEAST-used communication channel in an organization is usually
(a) upward
(b) downward
(c) diagonal
(d) horizontal
634. An important potential environmental source of change is

(a) a new competitive product
(b) dissatisfied employee attitudes
(c) employee grievances
(d) a wildcat strike
635. What does SBU stand for :

(a) Single Business Unit
(b) Stratified Business Unit
(c) Strategic Business Unit
636. Choose the best option that fits the meaning of the word ‘benchmarking’ ?
(a) Setting targets to be achieved.
(b) Setting goals and measuring performance
(c) Setting goals and measuring productivity based on the best industry practices
637. Who proposed the Motivation-Hygiene Theory ?

(a) Abraham Maslow
(b) Fredrick Winslow Taylor
(c) Frederic Herzberg
638. Following are examples of the Macro environment ?

(a) Demographic environment
(b) Economic Environment
(c) Technological environment
639. Peter F Drucker was of the view that :

(a) Business cannot be explained in terms of profit
(b) Business are always explained in terms of profit
(c) None of the above.
(d) Both a and b
640. In the hierarchal structure of an organisation, ....... managers are at the base of the pyramid :
(a) Top Level.
(b) Middle Level
(c) First Level.
(d) Link Level.
641. Which of the following is a function of middle management?

(a) Reviewing daily and weekly production or sales reports.
(b) Selecting Board members.
(c) Supervising day-to-day operations.
(d) Evaluating the all-round performance of various departments.
642. The process of designing and maintaining an environment in which individuals working
together in groups, efficiently accomplish specific aims is termed :
(a) Administration.
(b) Management.
(c) Organisation.
(d) Staffing.
643. The management functions which involves influencing, motivating and directing human
resources towards the achievement of organisational goals is known as :
(a) Leading.
(b) Controlling.
(c) Planning.
(d) Staffing.
644. .......... managers deal with the actual operation of an organisations units :
(a) First Level.
(b) Top Level.
(c) Middle Level.
(d) Link level.
645. .................. are at the lowest level of the hierarchy and are directly responsible for the
performance of operational level employees :
(a) Middle level managers.
(b) First Level managers.
(c) Top-Level Managers.
(d) Trainee-level managers.
646. First level managers must possess ............. skills, which include knowledge of and proficiency in
the methods, processes and procedures for carrying out activities :
(a) Human.
(b) Conceptual.
(c) Design
(d) Technical.
647. Name the skill which is important at all levels of an organisation :

(a) Conceptual.
(b) Design
(c) Human
(d) Technical.
648. Which theory states that there is no best way to manage all situations?
(a) Systems Theory.
(b) Contingency Theory.
(c) Administrative Theory.
(d) Bureaucratic Theory.
649. Which of the following theories gives managers a new way of looking at an organisation as a
whole and as a part of the larger external environment :
(a) Contingency Theory.
(b) Theory Z and quality management.
(c) Systems Theory
(d) Theory X and Theory Y
650. According to the systems theory, planning, organising, leading, controlling and technology
come under ............ component of an organisational system.
(a) Inputs.
(b) Transformation process.
(c) Outputs.
(d) Feedback.
651. Which management theory gives importance to the achievement of customer satisfaction and
loyalty?
(b) Operations management.
(c) Situations theory.
(d) Quality management.
652. Which type of management approach focuses only on the economic and physical needs of
workers and ignores their social needs?
(a) Scientific management.
(b) Bureaucratic management.
(c) Administrative management.
(d) Operations management.
653. Which one of the following management concepts leads to the destruction of the creativity
and flexibility required to respond to changes in the global environment?
(a) Bureaucratic management.
(b) Scientific management.
(d) Administrative management.
654. Under which system does a worker’s wage increase in proportion to the output produced?
(a) Time and motion study.
(b) Piece Rate incentive system.
(c) Micro motion study.
(d) Gantt Chart.
655. Which of the following was not a phase in the Hawthorne experiments?
(a) Illumination experiments.
(b) Bank wiring observation room experiments.
(c) Group discussions.

(d) Interview phase
656. Which of the following is not a result of poor span of control in organisations?
(a) Over supervision.
(b) Timely decision.
(c) High costs.
(d) Communication problems.
657. Which of the following factors does not indicate an effective span of management?
(a) Trained subordinates.
(b) Clarity of delegation of authority.
(c) Physical appearance of manager.
(d) Communication technique.
658. The span of management.................... at different levels of the same organisation :

(a) Matches.
(b) Varies.
(c) Is parallel.
(d) Is similar.
659. To eliminate the problems created by a large span of management in flat structures,
organisations are forced to...........
(a) Recue the hierarchical levels.
(b) Maintain the existing hierarchical levels.
(c) Increase the hierarchical levels.
(d) Decrease the existing hierarchical levels.
660. Which of the following is not a contingency factor that influences the design of an effective
organisation structure?
(a) Technology used.
(b) Size of the organisation.
(c) Transfer process.
(d) Environmental factors.
661. Which of the following methods help managers find out the minimum time and cost required to
complete a project?
(a) Program evaluation and review technique (PERT)
(b) Critical path method (CPM)
(c) Just in time (JIT)
(d) Computer aided design (CAD)
662. Which one of the following is not an assumption underlying direct control?
(a) Personal responsibility exists.
(b) Time expenditure is warranted.
(c) Performance cannot be measured.
(d) Mistakes can be discovered in time.
663. ............... refers to unanalyzed and unorganised facts and figures describing entities.
(a) Information.
(b) Intelligence.
(c) Data
(d) Systems.
664. External information is more useful for........ managers :

(a) Top level.
(b) Middle level
(c) Lower level
(d) Link level
665. Which one of the following is not an external user to whom the company is required to provide
information?
(a) Customer.
(b) Employee
(c) Supplier
(d) Government
666. Which of the following is not a component of an information systems :

(a) Keyboard.
(b) Printers.
(c) Floppy discs.
(d) Magnetic discs
667. The higher quality of managers and their subordinates the less the need for..............
(a) Direct control.
(b) Preventive control
(c) Tactical control.
(d) Strategic control.
668. According to the........... approach, business should be conducted on the basis of established
standards and facts or truths gained through systematic observation, experiment and reasoning.
(a) Administrative.
(b) Behavioural
(c) Bureaucratic
(d) Scientific
669. The two major managerial practices that emerged from Taylor’s approach to management
are the piece-rate incentive systems and............
(b) Work-study.
(c) Fatigue.
(d) Organisation study.
670. Unlike Classical theorists who viewed organisation from the production point of view,
behaviour theorists viewed it from the ......... point of view.
(a) Human.
(b) Technical.
(c) Administrative.
(d) Scientific.
671. ............... strategies provide guidelines for organisational growth.

(a) Organisation.
(b) Finance.
(c) Marketing.
(d) Growth.
672. Cost leadership, differentiation and ............... are the three generic business level strategies
identified by Michael Porter.
(a) Growth.
(b) Market Leadership.
(c) Focus.
(d) Product leadership.
673. In a SWOT analysis, a ..................... is regarded as an internal characteristics which can improve
an organisation’s competitive capabilities.
(a) Threat.
(b) Weaknesses.
(c) Strength.
(d) Opportunity.
674. A/ an .................. is an environmental condition that helps an organisation improves its situation
relative to the competitors :
(a) Strength.
(b) Opportunity.
(c) Threat.
(d) Weakness.
675. Which of the following is not an approach to organisational development?

(a) Problem solving.
(b) Decision-making.
(c) Team development.
(d) Cooperation.
676. The ............... level strategy identifies the business area that an organisation will operate in.
(a) Business.
(b) Functional.
(c) Corporate.
(d) Operational.
677. Which of the following is not an external threat to a company’s well being?
(a) Reduction in sales due to substitute products.
(b) Likely entry of new competitors.
(c) Underutilised plant capacity.
(d) Costly regulatory requirements.
678. Which one of the following constitutes a threat to the company?

(a) Serving additional customer groups.
(b) Expanding the product line.
(c) Integrating forward or backward.
(d) Slowdown in market growth.
679. Which of the following is not determined by organisational strategies?

(a) How centralised the decision making authority should be.
(b) How de-centralised the decision making authority should be.
(c) How the employees should be trained.
(d) How the staff positions should be designed.
680. Which of the following is not a tangible reward?

(a) Bonuses.
(b) Awards
(c) Personal feeling of accomplishment.
(d) Promotions.
681. Which one of the following is not a social constraint?

(a) Changing lifestyles.
(b) Increasing number of women in the workforce.
(c) Domestic demand.
(d) Increasing number of divorces.
682. Which of the following is not an environmental constraint?

(a) Recycling waste.
(b) Keeping pollution under control.
(c) Adopting automation in the manufacturing process.
(d) Manufacturing environment friendly products.
683. A situation of information asymmetry gives rise to...................

(a) Certainty.
(b) Uncertainty
(c) Risk
(d) Stability.
684. Which of the following functions of management involves filling and keeping filled positions in
the organization structure?
(a) Planning.
(b) Organizing.
(c) Staffing
(d) Controlling.
685. Which managerial function involves the process of setting goals and findings and deciding on
the best ways to achieve them?
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
686. A manufacturing company has grouped its main functions into marketing, engineering,
production and finance. What kind of organizational structure has this company adopted?
(a) Functional structure
(b) Hybrid structure
(c) Divisional structure
(d) Matrix structure
687. Which of the following is synonymous with need theories?

(a) Supply theory.
(b) Process theory
(c) Surplus theory
(d) Content theory
688. According to the principle of ……………………, the same result can be reached by different
means.
(a) Insight
(b) Intuition
(c) Logical formulation
(d) Unconscious scanning
689. Which of the following perspectives opposes the concept of finding the on best way for
managing organizations?
(a) Universal
(b) Behavioural
(c) Scientific
(d) Contingency
690. ……………………. is known as “quantitative common sense”

(a) Operations research
(b) Operations management
(c) Efficient organization
(d) Operations planning
691. Brainstorming and synectics techniques encourage individuals to think ……………….

(a) Optimistically
(b) Pessimistically
(c) Intuitively
(d) Emotionally.
692. According to some experts knowledge work, system is advanced versions of …………….
(a) Decision support systems
(b) Office automation systems
(c) Executive support systems

(d) Transactional processing system
693. What role should a manager do when communicating with the outside world?
(a) Disseminator
(b) Spokesperson
(c) Recipient
(d) Liaison
694. Which of the following is not a major component of the Management information system?
(a) Data gathering
(b) Information utilization
(c) Risk Analysis
(d) Data transformation
695. In negotiation and agreement, management offers something of value in exchange for
cooperation thereby ……….. potential or actual resistance from employees.
(a) Neutralizing
(b) Increasing
(c) Decreasing
(d) Aggravating
696. ………………….. refers to the price of an inventory item.

(a) Ordering cost
(b) Item cost
(c) Carrying cost
(d) Stock-out cost
697. Management techniques are used at the ………….. level of the organization.
(a) Top level
(b) Middle level
(c) First level
698. ………………….. innovations lead to changes in the physical process through which a product
or service passes.
(a) Technical
(b) Radical
(c) Incremental
(d) Managerial
699. A ………………. Outline the expected results of a given future period in numerical terms
(a) Program
(b) Budget
(c) Policy
(d) Procedure
700. Which of the following is not a major type of structural alternative used for departmentation?
(a) Functional
(b) Divisional
(c) Vertical
(d) Matrix
701. In which role do managers try new methods to improve the functioning of a unit or the whole
organization?
(a) Disseminator
(b) Leader
(c) Entrepreneur
(d) Liaison
702. ………………….. refers to the managements efforts to increase organizations effectiveness by

intervention in the organizations processes?
(a) Planned development

(b) Functional development
(c) Company development
(d) Organization development
703. What is the nature of the problems that top management generally deals with and what kind of
decisions do they take to solve their problem s?
(a) Unstructured an programmed
(b) Structured and non programmed
(c) Unstructured and non programmed
(d) Structured and programmed
704. ……………………. specializes in feeding input data into a system and extracting required
information from it.
(a) Data processing managers
(b) Data entry operators
(c) Programmers
(d) System analysis
705. A ……………… is a type of departmentation in which positions are grouped according to

similarity of products services or market’s
(a) Hybrid structure
(b) Divisional structure
(c) Matrix structure
(d) Functional structure
706. Functional authority contravenes which one of the following principles?

(c) Discipline
(d) Scalar chain
707. In which of the following models will a manager completely disregard the emotions or feelings
of his or her subordinates?
(a) Phenomenological
(b) Economic
(c) Rational
(d) Behaviouristic
708. Managers perceptions of workers in Theory X and Theory Y are ……………. respectively.
(a) Negative and negative
(b) Positive and negative
(c) Negative and Positive
(d) Positive and positive
709. Which of the following is considered synonymous used with “downsizing”

(a) Rebuilding
(b) Recreating
(c) Re-establishing
(d) Restructuring
710. According to the functional view point, ……………… functions are directly related to the
accomplishment of organizational objectives
(a) Line
(b) Staff
(c) Linea and staff
(d) Both a and b
711. Which of the following is not a content theory?

(a) Equity Theory
(b) Two factor theory
(c) Need hierarchy theory
(d) ERG theory
712. Which of the following principles of management identified by Henri Fayol states that
promoting tem spirit will give the organization a sense of unity?
(a) Equity
(b) Espirit de Corps
(c) Discipline
(d) Initiative
713. Which of the following perspective is/are considered universal perspective?

(a) Classical
(b) Quantitative
(c) Behavioural
714. Which of the following managers are familiar with all the functional areas of management /
(a) Operations managers
(b) Human resource managers
(c) Financial managers
(d) General managers
715. Which of the following strategies focuses on the best means of computing in a particular
market?
(a) Business Level
(b) Corporate Level
(c) Functional Level
(d) Organizational Level
716. Which of the following techniques is used in decision making to figure out how much extra
output will result if one more variable is added?
(a) Financial analysis
(b) Ratio analysis
(c) Break even analysis
(d) Marginal analysis
717. ………………….. decisions usually involve a lot of uncertainly

(a) Programmed
(b) Non programmed
(c) Tactical
(d) Operational
718. The .......role, identified by Mintzberg includes the specific roles of entrepreneur, disturbance
handler, resource allocator and negotiator.
(a) Decisional.
(b) Interpersonal
(c) Informational.
(d) Administrative
719. Which of the following approaches to management examines practical cases but is having
only limited value for developing management theory?
(a) Group behaviour approach.
(b) Systems approach.
(c) Operations approach.
(d) Emperical approach.
720. In the ......... approach to management, managerial practice depends on circumstances.

(a) Systems.
(b) Contingency or Situational.
(c) McKinsey’s &-S framework.
(d) Emperical or case.
721. Which one of the following theories ignored the concept of leadership, motivation, power, and
informal relations :
(a) Pre-classical.
(b) Classical
(c) Behavioural.
(d) Modern.
722. Which one of the following did not contribute to the behavioural concept of management :
(a) Elton Mayo.
(b) Mary Parker Follet.
(c) Chris Argyris
(d) Henry R Towne
723. Which behavioural thinker supported the idea of ‘power sharing’ between superiors and
subordinates in an organisation?
(a) Abraham Maslow.
(b) Elton Mayo.
(c) Mary Parker Follet
(d) Douglas McGregor
724. Who proposed that human needs develop in a hierarchical manner in the order of
physiological needs, safety, social needs, esteem needs and self-fulfilment needs?
(a) Elton Mayo
(b) Abraham Maslow.
(c) Chris Argyris.
725. Who was the most prominent among the general administrative theorist?
(a) Henry Mintzberg.
(b) Henri Fayol.
(c) Frederick W. Taylor.
(d) Frank Gilbreth.
726. Which management thinker regarded people and organisations as closed systems?
(a) Elton Mayo.
(b) Henri Fayol.
(c) Frederick. W. Taylor.
(d) Chris Argyris.
727. .............. proposed the hierarchy of needs theory.

(a) Abraham Maslow.
(b) Elton Mayo.
(c) Douglas McGregor.
(d) Chris Argyris.
728. ................ is generally recognised as the “Father of the Human relations Approach. “
(a) Max Weber.
(c) Abraham Maslow.
(d) Elton Mayo.
729. In the systems theory the terms ’throughputs’ refers to the..............

(a) Input.
(b) Output.
(c) Feedback.
(d) Transformation process.
730. Which of the following Fayol’s principles of management aims at avoiding the possibility of
conflicting orders?
(a) Well defined hierarchy of authority.
(b) Unity of command.
(c) Authority on par with responsibility.

(d) Downward delegation of authority or responsibility.
731. Max Weber, a German sociologist believed that effective organisations had a formal structure
and followed a predefined set of rules and regulations. To identify such organisations he used the
term..........
(a) Autocracy.
(b) Autonomy.
(c) Formal.
(d) Bureaucracy.
732. Who developed the ‘hierarchy of needs theory?

(a) Herzberg.
(b) Abraham Maslow.
(c) McClelland.
(d) Alderfer
733. According to Herzberg ...... are job content factors which lead to job dis-satisfaction :
(a) Motivators.
(b) Hygiene factors.
(c) Context factors.
(d) Psychological factors
734. 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
735. ............... 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
736. Self-actualisation and esteem needs in Maslow’s theory correspond to..... ..factor in Herzberg’s
theory :
(a) Interpersonal relations.
(b) Working conditions.
(c) Challenging work.
(d) Quality of supervision.
737. Which of the following needs does not come under McClellands needs theory :
(a) Achievement needs.
(b) Affiliation needs.
(c) Power needs.
(d) Safety needs
738. MBO was first suggested by:

(a) Frederick Taylor
(b) Henri Fayol
(c) Peter. F Drucker
(d) Henry Mintzberg
739. Fayol out lined 14 principles of management. One of them, the ..., states that each employee
must receive instructions about a particular operation from only one person.
(a) Unity of direction.
(b) Discipline.
(c) Unity of command
(d) Centralisation.
740. Weber coined the term... identify large organisations that operated on a rational basis.
(a) Autocracy.
(b) Dictatorship.
(c) Bureaucracy.
(d) Diplomacy.
741. Henry Mintzberg classified the managerial roles of recipient, disseminator and spokesperson
as...............
(a) Interpersonal roles.
(b) Informational roles
(c) Decisional roles.
(d) Intelligence roles.
742. In Herzberg’s two factor theory of motivation, hygiene factors are also known as :
(a) Job content factors.
(b) Job context factors.
(c) Motivators.
(d) Job satisfying factors
743. George Homans’ “format vs informal” organisation model is based on three concepts. Which of
the following is not one among the three concepts?
(a) Interactions.
(b) Activities.
(c) Behaviour.
(d) Sentiments.
744. According to Vroom’s expectancy theory, what would be the valence of an individual who is
indifferent to the outcome?
(a) +1
(b) 0
(c) -1
(d) +0.5
745. Which of the following branches of the classical viewpoint of management is based on the
contributions of Max Weber?
(b) Bureaucratic management
(d) Behavioural management
746. Who among the following proposed the concept of functional authority?
(a) Chris Argyris
(b) Max Weber
(c) F. W Taylor
(d) Elton Mayo.
747. According to Mintzberg ……….. are interpersonal roles.

(a) Figurehead, recipient, liaison
(b) Leader, Liaison, spokesperson
(c) Figurehead, leader, liaison
(d) Figurehead, liaison, entrepreneur
748. Which of the following needs of Maslow’s needs hierarchy theory does not correspond with the
hygiene factors of Herzberg’s two-factor theory
(a) Physiological theory
(b) Esteem needs
(c) Security or safety needs
(d) Social needs
749. In the classical approach, who first introduced the concept of training workers for the benefit of
both workers and organization?
(a) Henry L Grant
(b) Henri Fayol
(c) Frederick Winslow Taylor
(d) Max Weber
750. The situational theory is also known as ………………..

(a) Trait theory
(b) Transactional theory
(c) Contingency theory
(d) Behavioural theory
751. Whose principles of management gave rise to the concept of team spirit among employees
(known as Espirit de corps)?
(a) Henry L Grant
(b) Henri Fayol
(c) Max Weber
(d) Lillian B Gilbreth
752. Which one of the following did not contribute to pre classical management thought?
(a) Robert Owen
(b) Charles Babbage
(c) Henri Fayol
(d) Henry R Towne
753. The ………………….. model of decision-making was developed by Herbert Simon.

(a) Garbage-can
(b) Incremental
(c) Satisficing
(d) Rational
754. According to Likert’s system of management ………………. represents ‘dictatorial leadership

behaviour’
(a) System 1 management
(b) System 2 management
(c) System 3 management
(d) System 4 management
755. Which of the following is not a leadership theory?

(a) Trait theory
(b) ERG theory
(d) Transactional theory
756. Which specialization improves the efficiency of operations? This principle of management
indentified by Henri Fayol is termed as ……………….
(a) Division of work
(b) Stability
(d) Discipline
757. Who among the following is regarded as the Father of motion study?
(a) Lillian Gilbreth
(b) Charles Babbage
(c) Henry Grant
(d) Frank Gilbreth
758. According to Blake and Moutons’ managerial grid, which of the following managerial styles is
known as ‘organizational management?’
(a) Impoverished management
(b) Middle of the road management

(c) Country club management
(d) Team management
759. Mc Gregors’s ………………… takes a pessimistic static and rigid view of human nature.
(a) Theory W
(b) Theory X
(c) Theory Y
(d) Theory Z
760. Which of the following studies gave importance to the “initiating structure” and “consideration
dimensions of leadership?”
(a) Iowa studies
(b) Michigan studies
(c) Ohio State studies
(d) Likert’s four system of management
761. According to Herzberg and his associates … are job content factors, which lead to job
satisfaction.
(a) Motivators
(b) Hygiene factors
(c) Context factors
(d) Physiological factors
762. …………………… is the earliest management thinker to use this term ‘Management by
Objectives.
(a) Peter F Drucker
(b) Frederick Winslow Taylor
(c) Henri Fayol
(d) Henry Mintzberg
763. Leadership style 1, 9 in Blake and Mouton’s management grid represents the ………………
style.
(b) Country club management
(c) Team management
(d) Organization man management
764. Theory X and Theory Y, two sets of assumptions about the nature of people, proposed by:
(a) Abraham Maslow
(b) McGregor
(c) Herzberg
(d) McClelland
765. According to Vroom’s expectancy theory, which of the following refers to the probability that
successful performance will lead to certain outcomes?
(a) Motivation
(b) Valence
(c) Expectancy
(d) Instrumentality
766. ………………. Is known as the “Father of scientific management“

(a) Henri Fayol
(b) Henry Mintzberg
(c) Frederick W. Taylor
(d) Max Weber
767. To achieve organisational objectives managers ensure that the plans made a different levels
of an organisation are............
(a) Independent.
(b) Inter-dependent.
(c) Non-reticulate.
(d) Separate.
768. Which level of managers is involved in the development of plans?

(a) Top level management
(b) Middle level managers.
(c) First level managers.
(d) All the above.
769. Organisations use contingency plans to cope with..............

(a) Anticipated events.
(b) Premeditated events.
(c) Unforeseen events.
(d) Predictable events.
770. Planning encourages ............. thinking among managers this type of thinking is essential for
the long-term survival and growth of an organisation.
(a) Conservative.
(b) Innovative.
(c) Conventional.
(d) Stereotyped.
771. What type of plan is used when unique situations of a non-recurring nature occur?
(a) Primary plans.
(b) Secondary plans.
(c) Single-use plans.
(d) Standing plans.
772. Which of the following is action based and result oriented management approach that
contributes to the smooth and efficient functioning of organisations?
(a) Projects.
(b) Programs.
(c) Rules.
(d) Policies.
773. Which one of the following is not a type of single use plan?
(a) Programs.
(b) Policies.
(c) Budgets.
(d) Projects.
774. Budgets are not expressed in the form of..................

(a) Units of production.
(b) Labour hours.
(c) Machine hours.
(d) Written policies.
775. Which of the following plans are rigid in nature and do not allow any deviation from the
established guidelines?
(a) Programs.
(b) Policies.
(c) Rules.
(d) Procedures.
776. Which one of the following is the first step in the planning process?
(a) Established objectives.
(b) Analysing opportunities.
(c) Determining planning premises.
(d) Identifying alternatives.
777. Which of the following is not a limitation of planning?

(a) Time-consuming process.
(b) Expensive.
(c) Flexible.
(d) Lack of accurate information.
778. When developing a contingency plan, managers should not try to........
(a) Increase interruptions to the operations of the business.
(b) Speed up the restoration of services.
(c) Reduce financial losses.
(d) Resume critical operations within a specified time after a disaster.
779. Which one of the following does not come under the “formulating supporting plans” stage in
the planning process?
(a) Hiring workers.
(b) Training new workers.
(c) Expenditures for capital equipment.
(d) Developing a new product.
780. The open systems approach to planning is effective as it leads to.............. in planning.
(a) Rigidity.
(b) Flexibility.
(c) Inelasticity.
(d) Invariability.
781. Which of the following is the second step in the planning process?
(a) Determining planning premises.
(b) Establishing objectives.
(c) Implementation
(d) Identifying resources.
782. Which of the following are large scale single use plans that coordinate a complex set of
activities to achieve important non-recurring goals?
(a) Budgets.
(c) Projects
(d) Programs.
783. Which of the following indicate the action that major departments and subunits should take to
execute a strategic plan?
(a) Operational plan.
(b) Tactical plan.
(c) Single use plan.
(d) Project plan.
784. Generally, ‘strategic plans’ is an important aspect of the jobs of _____________ managers.
(a) Operational Level
(b) Middle-level
(c) Top-level
(d) At the levels
785. If goals are the desired ends, which of the following are the means for achieving those ends?
(a) Commitments
(b) Strategies
(c) Plans
(d) Programs
786. Managers involved in the development of ______ plans generally work in an environment of
uncertainty and are required to make assumptions about future threats and opportunities.
(a) Tactical
(b) Operational
(c) Single-use
(d) Strategic
787. Which of the following plans are developed by low-level managers?

(a) Operational.
(b) Tactical.
(c) Strategic.
(d) Standing.
788. ............. spell out the specific action that must or must not be taken in given situations :
(a) Programs.
(b) Rules.
(c) Budgets.
(d) Policies.
789. Which of the following plans provide guidelines for day-to-day actions in an organisation?
(a) Short term plans
(b) Long term plans
(c) Intermediate plans.
(d) Standing plans.
790. Which of the following strategic plans of an organisation have a time frame exceeding 5
years?
(a) Short term plans.
(b) Single use plans.
(c) Long terms plans.
(d) Intermediate plans.
791. Which of the following is the first step in the planning process?
(a) Establishing objectives.
(b) Determining planning premises.
(c) Identifying alternatives.
(d) Analysing opportunities.
792. Which of the following steps in the planning process involves the execution of a plan?
(a) Implementation.
(b) Selection.
(c) Evaluation.
(d) Review.
793. There are three major kinds of standing plans: policies, rules and...................
(a) Projects.
(b) Programs.
(c) Procedures.
(d) Standards.
794. Operational plans are generally oriented towards issues that have a time horizon of..........
(a) About 5 years.
(b) 3 to 5 years.
(c) 1 to 2 years.
(d) One year or less.
795. Which of the following refers to the determination of the purpose and the basic long-term
objectives of an enterprise, and the adoption of courses of action and the allocation of resources
necessary for achieving those objectives?
(a) Strategies.
(b) Plans
(c) Policies.
(d) Procedures.
796. Top-level managers with good conceptual and design skills are responsible for..........
(a) Operational planning.
(b) Strategic planning.
(c) Functional planning.

(d) Tactical planning.
797. Managers refer to strategic plans as..................

(a) Goal setting.
(b) Organisational planning.
(d) Action plans.
798. .............. are aimed at achieving a specific goal and are designed to meet the needs of a
unique situation :
(a) Single use plans
(b) Standing plans
(c) Short-term plans
(d) Double use plans
799. A …………… is a large scale single use plan which coordinates a complex set of activities for
achieving a major non recurring goal.
(a) Program.
(b) Project
(c) Budget.
(d) Policy.
800. Which type of planning provides the organization with well-equipped individuals for top level
and middle level positions?
(a) Replacement planning
(b) Succession planning
(c) Resource planning
(d) Requirement planning
801. Which of the follow terms refers to the time gap between placing and receiving an order?
(a) Reorder time
(b) Lead time
(c) Real time
(d) Just in time
802. What kind of plans do manager make on the basis of future expectations of political, legal,
social technological, and economic environments?
(a) Primary plans
(b) Secondary plans
(c) Contingency plans
(d) Situational plans
803. Holding cost is synonymous with …………………..

(a) Ordering cost
(b) Item cost
(c) Carrying cost
(d) Stock-out cost
804. What kind of plan facilitates the delegation of authority?

(a) Single use plan
(b) Contingency plan
(c) Standing plan
805. Which one of the following situations requires the use of standing plans?
(a) Intermittent
(b) Occasional
(c) Recurring
(d) Temporary
806. Which of the following includes factors like profitability, sales and R&D and has a direct bearing
on an organizations well being ?
(a) Planning premises
(b) Key result areas
(c) Corporate objectives
(d) Operations
807. Which of the following is an advantage of decentralization?

(a) Encourages decision making
(b) Easy to have uniform policy
(c) Greater control
(d) Decreases complexity of coordination
808. Which of the following refers to assumptions about the environment in which the plan is to be
carried out?
(a) Planning environment
(b) Planning premises
(c) Panning boundaries
(d) Decision premises
809. A SWOT analysis does not consider organization’s ………………

(a) Internal strengths
(b) External opportunities
(c) Internal weaknesses
(d) External task environment
810. The plant manager of Crux industries has established certain work schedule for supervisors of
the company. Which of the following powers was used by the plant manager of Crux industries in this
case?
(a) Downward referent power
(b) Reward Power
(c) Downward legitimate power
(d) Upward legitimate power
811. Which of the following is a type of departmention that adopts aspects of both functional and
divisional structures at the same level of management?
(a) Matrix
(b) Flexible
(c) Hybrid
(d) Partly functional
812. The use of effective control systems does not lead to …………………..
(a) Improved output per unit of output
(b) Reduction in wastage
(c) Increase in personnel turnover
(d) Lower labour costs
813. Which of the following types of plan is formulated to achieve strategic goals?
(a) Tactical plans
(b) Strategic plans
(c) Operational plans
(d) Standing plans
814. Which of the following is a one-time plan created in response to a non-programmed decision?
(a) Standing
(b) Single use
(c) Long term
(d) Tactical
815. Which of the following identify problem areas and increase the feasibility of achieving goals?
(a) Key result areas
(b) Goals
(c) Action plans
(d) Procedures
816. Feed forward control is not known as …………………..

(a) Pre control
(b) Preliminary control
(c) Preaction control
(d) Reaction control
817. ………………….. involves the identification of potential candidates for filling specific
managerial positions.
(a) Succession planning
(b) Replacement planning
818. . ………………….. is distinct business set up within a company to ensure that certain product or
product line is promoted and handled as though it were an independent business?
(a) Strategic planning units
(b) Strategic business units
(c) Strategic functional units
(d) Specific business units
819. Which of the following is not a feature of an adaptable organization?

(a) Employee participation in decision making
(b) Broad goals and objectives
(c) Rigid functional division
(d) Regular feedback from the environment
820. A firm using a ………………. strategy tries to offer products and services that are considered
unique in the industry.
(a) Market Leadership
(b) Focus
(c) Differentiation
(d) Cost Leadership
821. The structural methods used for promoting, innovation help organizations implement
……………… and achieve goals.
(a) Procedures
(b) Polices
(c) Strategies
(d) Rules
822. A message that is generated by the receiver in response to the sender’s original message is
known as...............
(a) Feedback.
(b) Feed forward.
(c) Perception.
(d) Transmission.
823. The communication flow from people at higher levels to those at lower levels in the
organisational hierarchy is referred to as....................
(b) Crosswise communication
(c) Downward communication
(d) Horizontal communication
824. Which of the following is not a gateway to effective communication in an organisation?

(a) Effective listening.
(b) Non-directive counselling.

(c) Interpersonal trust.
(d) Improper feedback.
825. Which of the following is not a form of upward communication?

(a) Suggestion systems.
(b) Oral instructions.
(c) Counselling sessions.
(d) Complaint system.
826. In the process of communication the translation of intended meaning into words and gestures
is known as :
(a) Encoding
(b) Decoding
(c) Processing
(d) Transforming.
827. Which of the following media is not used for written downward communication?
(a) Memorandum
(b) Grapevine.
(c) Handbooks
(d) Pamphlets.
828. ……………… facilitates control, communication and coordination in organisations.

(a) Deceleration
(b) Departmentation
(c) Disintegration
(d) Decentralization
829. Which of the following is not a mode of communication that helps managers communicate
effectively with subordinates?
(a) Fax
(b) Teleconferencing
(c) Photocopying
(d) Internet
830. Which of the following is a type of crosswise communication flow in organizations?

(a) Upward
(b) Vertical
(c) Diagonal
(d) Downward
831. Which of the following skills helps manager realize the most appropriate responses to a
situation?
(a) Conceptual skills
(b) Diagnostic skills
(c) Decision making skills
(d) Technical skills
832. The grapevine is a/an ………………… communication channel.

(a) Informal
(b) Formal
(c) Stable
(d) Organization
833. ..................... power is based on the influencers ability to punish the influence for not meeting
requirements :
(a) Referent
(b) Legitimate.
(c) Expert.
(d) Coercive.
834. Which of the following is not a feature of authority?

(a) Right to do something.
(b) Legitimate power given by organisation.
(c) Derived from position.
(d) Requires no formal position.
835. A lawyer specialised in criminal law is said to have which type of power?
(a) Coercive.
(b) Referent
(c) Legitimate
(d) Expert.
836. In a manufacturing company, which of the following functions is not a staff function?
(a) Plant maintenance.
(b) Accounting.
(c) Sales
(d) Quality control.
837. Which of the following powers is based on the perception or belief that the influencer has
relevant expertise, special knowledge or skill that the influence lacks?
(a) Referent
(b) Legitimate.
(c) Expert.
(d) Reward.
838. The authority to control the functions of other departments related to specific task is known as :
(a) Functional authority.
(b) Formal authority.
(c) Informal authority.
(d) Managerial authority.
839. The establishment of a distinct area, unit or subsystem of an organization over which a
manager has authority for the performance of specialized activities and results is termed as
…………………
(a) Centralization
(b) Departmentalization
(c) Decentralization
(d) Functionalization
840. The output-input ratio within a time frame with regard to quality is known as …………………..
(a) Efficiency
(b) Effectiveness
(c) Productivity
(d) All the above
841. In the …………………. stage in the change process the new behaviour pattern is locked into
place by means of a supporting or re-enforcing mechanism so that it becomes the new norm:
(a) Refreezing
(b) Unfreezing
(c) Moving
(d) Freezing
842. ………………..managers bringing new work practices and help the organization sail smoothly
through changes.
(a) Top Level
(b) Middle level
(c) First level
(d) Supervisory level
843. In the context of employee behaviour, which of the following is not an outcome of established
standards?
(a) Helps employees perform efficiently
(b) Identifies task related deficiencies

(c) Reduces their potentially negative effects of goal incongruence.
(d) Reduces the potentially positive effects of goal incongruence
844. An informal organization lays emphasis on ……………

(a) Authority
(b) People and relationships
(c) Responsibility
(d) Accountability
845. ……………………. is a blue print of the formal organization indicating the lines of authority within
the organization.
(a) Management chart
(b) Authority chart
(c) Flow chart
(d) Organization chart
846. Decreasing the role of subordinates in decision-making is knows as:

(a) Centralization
(b) Stabilization
(d) Delegation of authority
847. . ……………. refers to the number of subordinates a superior can supervise efficiently and
effectively.
(a) Span of authority
(b) Span of control
(c) Span of direction
(d) Span of power.
848. Which one of the following best describes a sequence of steps formed to achieve a particular
objective?
(a) Programs
(b) Policies
(c) Procedures
(d) Rules
849. The management function that involves setting goals and deciding how best to achieve them
is known as__________
(a) Planning
(b) Organising
(c) Leading
(d) Controlling
850. Which of the following is not a problem faced during the implementation of the MBO process?
(a) Motivational assessment.
(b) Individual action.
(c) Group action.
(d) Appraisal of appraisers.
851. Which of the following is a limitation of MBO?

(a) Helps in the coordination of goals and plans.
(b) Provides clarity in organisational action.
(c) Emphasises short terms goals.
(d) Develop effective controls.
852. Which of the following specifies the broad parameters within which organisation members are
expected to operate in pursuit of organisational goals?
(a) Budget.
(b) Program.
(c) Project.
(d) Policy.
853. The MBO process should receive continuous support from........... managers for its successful
implementation.
(a) Top Level.
(b) Middle level.
(c) First level.
(d) Link level.
854. Which of the following is not an external environment?

(a) Political.
(b) Social.
(c) Organisational policies.
(d) Technology.
855. Goals improve the cohesiveness or unity of a group as they make the group members..............
(a) Self-reliant.
(b) Independent.
(c) Inter-dependant.
(d) Self-sufficient.
856. Periodic reviews allow managers to give........ to their subordinates.

(a) Objectives.
(b) Feedback.
(c) Bonus.
(d) Gifts.
857. The use of effective control systems does not lead to................
(a) Improved output per unit of input.
(b) Reduction in wastage.
(c) Increase in personnel turnover.
(d) Lower labour costs.
858. The first step in the decision making process is indentifying the problem; this involves the
following stages :
(a) Scanning.
(b) Categorisation.
(c) Problem exercises.
(d) Diagnosis.
859. .................. refers to the extent to which an alternative can be accomplished within
organisational constraints such as time, budgets and polices.
(a) Acceptability.
(b) Quality.
(c) Ethics
(d) Feasibility.
860. Decision alternatives must be evaluated against the........... criterion to determine their
compatibility with the social responsibilities of the organisation.
(a) Quality.
(b) Feasibility.
(c) Ethics
(d) Acceptability.
861. The decision made by managers usually fall into one of the following categories :
(a) Programmed and non-programmed.
(b) Rational and irrational.
(c) Strategic and non-strategic.
(d) Strategic and tactical.
862. ..................... is the first step in the decision making process :

(a) Identifying resource and constraints
(b) Determining the problem.
(c) Generating alternative solutions.
(d) Selecting an alternative
863. Managers using the............. model of decision making arrives at an optimal decision after
obtaining and understanding all the information that is relevant to their decisions :
(a) Garbage can.
(b) Satisficing.
(c) Incremental.
(d) Rational.
864. Which of the following is not a non-rational model of decisions making?

(a) Garbage-can.
(c) Satisficing.
(d) Incremental.
865. The evaluation of an organisations task environment is necessary to understand its impact
on...................
(a) Strategic goals.
(b) Operational goals
(c) Functional goals.
(d) Individual employee goals.
866. Non programmed decisions usually involve a lot of ..............., a condition in which the decision
maker must choose a course of action without having complete knowledge of the consequences that
will follow the implementation of the decision :
(a) Certainty.
(b) Stability.
(c) Opportunity.
(d) Uncertainty.
867. Most of the important decision that managers make are .......... decisions :
(a) Functional
(b) Programmed
(c) Non programmed
(d) Tactical.
868. The most significant decisions made in today’s complex environment are taken under
conditions of....................
(a) Risk.
(b) Uncertainty.
(c) Certainty.
(d) Stability
869. ................. gives managers access to more information and knowledge.

(a) Individual decision-making.
(b) Strategic decision-making.
(c) Operational decision-making.
(d) Group decision making.
870. In which of the following steps of the decision making process is the transformation technique
used?
(a) Generating alternative solutions.
(b) Evaluating alternatives.
(c) Identifying resource and constraints.
(d) Selecting an alternative.
871. Which of the following is not considered when evaluating the alternatives in the decision
making process?
(a) Feasibility.
(b) Quantity.
(c) Quality.
(d) Acceptability.
872. Which of the following approaches is not used in the decision making process when selecting
an alternative?
(a) Experience.
(b) Experimentation.
(c) Acceptability.
(d) Research and analysis.
873. The first step in the decision making process is identifying the problems. This involves :
(a) Scanning.
(b) Categorisation.
(d) Diagnosis.
874. .................. refers to the extent to which an alternative can be accomplished within
(a) Acceptability.
(b) Quality.
(c) Ethics
(d) Feasibility.
875. Decision alternatives must be evaluated against the........... criterion to determine their
(a) Quality.
(b) Feasibility.
(c) Ethics
(d) Acceptability.
(a) Programmed and non programmed.
877. ..................... is the first step in the decision making process :

878. Managers using the............. model of decision making arrives at an optimal decision after
(a) Garbage can.
(b) Satisficing.
(c) Incremental.
(d) Rational.
879. Which of the following is not a rational model of decisions making?

(a) Garbage-can,
(c) Satisficing.
(d) Incremental.
880. Decisions that deal with strategies for mergers, acquisitions, and takeovers are.......... in nature.
(a) Programmed.
(b) Non-programmed.
(c) Operational.
(d) Tactical.
881. Which of the following refers to the total set of managerial activities employed by the
organisation to transform resource inputs into product inputs?
(a) Strategic management.
(c) Marketing management.
(d) Resource management
882. .................... control systems help managers manage inputs in such a way that they are
available at the right place and at the right time and in the right quantity at minimum cost.
(a) Budgetary
(b) Inventory
(c) Financial
(d) Quality.
883. Which of the following control systems help managers ensure that actual performance is in
tune with planned performance?
(a) Budgetary control systems.
(b) Financial control systems.
(c) Inventory control systems.
(d) All the above.
884. Which of the following is a self-regulating control system that can automatically monitor the
situation and take corrective action :
(a) Cybernetic control system.
(b) Non-cybernetic control system.
(c) Multiple control system.
(d) Feedback control system.
885. Which of the following is a control technique applied during or following the completion of an
activity :
(a) Direct control.
(b) Preventive control.
(c) Corrective control.
(d) Activity control.
886. The main source of information for ......... managers are mostly internal.
(a) Input.
(b) Output.
(c) Storage.
(d) Instruction.
887. An international enterprise has to scan the.............. market to identify threats and opportunities
for the company.
(a) Domestic.
(b) National.
(c) Worldwide
(d) Native market.
888. Which of the following management functions help managers in achieving desired objectives
by establishing guidelines for future activities?
(a) Staffing.
(b) Controlling
(c) Planning
(d) Organising.
889. ............. refers to the ability to persuade others to seek defined objectives enthusiastically :
(a) Authority
(b) Morale
(c) Leadership
(d) Controlling
890. Which of the following is not a stage in delegating authority?

(a) Briefing.
(b) Monitoring progress.
(c) Executing.
(d) Evaluating results
891. Which of the following is a limitation of decentralisation?

(a) Does not aid organisation in adapting to the environment.
(b) Gives managers more freedom.
(c) Considerable expense for training managers.
(d) Adds to burden on top management.

(c) Discipline.
(d) Scalar chain.
893. ................... is the unbroken line of authority linking each employee with the top most position
in the organisation through a series of management posts?
(a) Unity of command.
(b) Chain of command.
(c) Degree of command.
(d) Unity of direction.
894. Which of the following is not a benefit of informal organisation to employees?

(a) Security.
(b) Status.
(c) Self-actualisation.
(d) Social satisfaction.
895. ................... are action oriented and provide an energising thrust towards the achievement of
goals :
(a) Drive.
(b) Need
(c) Goals
(d) Wants.
896. Internal information used for operations control provided by management information systems
is used by...................
(a) Top Level managers.
(c) Link level managers.
(d) First level managers.
897. Which of the following is not true in the case of a decision support system (DSS)?
(a) Specialised in easy to use software.
(b) Employs interactive processing.
(c) Inflexible.
(d) Adaptable.
898. Organisations with.............. structures usually have many hierarchical levels and narrow spans
of control.
(a) Flat.
(b) Broad.
(c) Wide.
(d) Tall.
899. ........ is the crux of entrepreneurship?

(a) Management.
(b) Doing business.
(c) Innovation.
(d) Goals.
900. Which of the following is not one of the bases of power that managers rely on?
(a) Coercive.
(b) Reward
(c) Expert
(d) Illegitimate
901. The structural methods used for promoting innovation help organisations implement........... and
achieve goals.
(a) Procedures
(b) Policies
(c) Strategies
(d) Rules
902. In the ............, managers consider the impact of changes in the external environment on the
firm and on every aspect of planning :
(a) Open systems approach
(b) Management information system
(c) Closed system approach
(d) Grass-root budgeting
903. Participation and commitment from which of the following level(s) of management is
necessary for the success of an MBO program.
(a) Top level.
(b) Lower level.
(c) Middle level.
(d) All the above.
904. A/ an ............... is an environment condition that has the possibility of undermining an

organisations competitive capability.
(a) Strength.
(b) Threat.
(c) Opportunity.
(d) Weakness.
905. An organisation can differentiate the products from those of the competitors by................
(a) Offering better customer service.
(b) Offering new features.
(c) Creating a brand image.
(d) Using all the above strategies.
906. A/an ............... organisation refers to a group of people working together cooperatively, under
authority, toward goals that mutually benefit the participants and the organisation.
(a) Informal.
(b) Partly Informal.
(c) Formal.
(d) Stable.
907. ................... refers to the grouping of activities and resources in a logical fashion.
(a) Organising.
(b) Staffing.
(c) Planning.
(d) Controlling.
908. Which of the following interactive subsystems is used to develop an open system model and is
known as production function?
(a) Technical
(b) Boundary-spanning
(c) Managerial.
(d) Financial.
909. In a formal organisation, ‘power’ is associated with..................

(a) People.
(b) Position.
(c) Relationships.
(d) Public.
910. Which one among the following areas for strategic goals indentifies factors that indicate the
financial well being of an organization?
(a) Profit requirements
(b) Productivity
(c) Financial resources
(d) Physical resources
911. Which of the following describes the distribution of organizations resources over the areas in
which it competes?
(a) Resource deployment
(b) Resource accumulation
(c) Resource gathering
(d) Resource garnering
912. What do managers do in a liaison role?

(a) Communicate with outsiders on behalf of the organization.
(b) Communicate with people outside an within the organization
(c) Communicate organizations information to subordinates
(d) Receive information about the organization
913. A/an ………………. is a vital tool for providing information about organizational relationships.
(a) Organizational chart
(b) Functional chart
(c) Organizational model
(d) Functional model
914. Which one of the following management functions helps maintain managerial effectiveness for
future activities?
(a) Organizing
(b) Planning
(c) Staffing
(d) Leading
915. Which of the following occurs when a company that is headquartered in one country builds or
starts operations in a foreign country?
(a) Partnerships
(b) Direct investment
(c) Joint venture
(d) Strategic alliance
916. The high profits that a cash cow generates can be used to support ………………
(a) Question marks and stars
(b) Dogs and stars
(c) Dogs and question marks
(d) Dogs
917. Which type of departmentation is useful only at the lower level of organizations?
(a) Departmentation by simple numbers
(b) Departmentation by time
(c) Departmentation by process or equipment
(d) Departmentation by strategic numbers.
918. Which managerial function gives attention to influencing and motivating employees to
improve performance and achieve corporate objectives?
(a) Leading
(b) Organizing
(c) Staffing
(d) Controlling
919. Which of the following processes shows how an individual seeks information about a certain
issue and how he interprets that information?
(a) Dogmatism
(b) Perception
(c) Stereotyping
(d) Cognitive dissonance
920. Problems in the organization structure and the political environment are defined as …………..
constraints.
(a) Internal-internal
(b) External-internal
(c) Internal-external
(d) External-external
921. Which of the following does not explain the reluctance of managers to set goals?
(a) Fear of failure
(b) Thorough knowledge of organisational policies
(c) Lack of confidence
(d) Lack of knowledge of organizational procedures
922. Which of the following is/are the tools in the recruitment process under staffing?
(a) Job analysis
(b) Jobs description
923. Which of the following is not considered as an irregularity in organizations?

(a) Increasing personnel turnover
(b) Decreasing personnel turnover
(c) Product defects
(d) Cost overruns
924. The principle of ……………. is based on the belief that most of the negative deviations from the
standards can be over taken by applying the fundamentals of management
(a) Successive
(b) Directive
(c) Preventive
(d) Indirect
925. ………………….. provide directions for the activities of an organization.

(a) Resources
(b) Goals
(c) Information
(d) Manpower
926. . ………….. is also known as staffing

(a) Resource management
(b) Human management
(d) Human resource development
927. The process of developing an organizational structure is also known as ………………

(a) Organizational design.
(b) System design.
(c) Structure design.
(d) Process design.
928. ………. refers to the powers to make decisions to guide their actions of another.
(a) Responsibility
(b) Authority
(c) Power
(d) Delegation
929. . …………………..refers to the set of documents, programs, and procedures associated with the
operations of a corporate system.
(a) Hardware
(b) Software
(c) People
(d) Data
930. Which of the following intervention techniques is concerned with the interpersonal relations
and dynamic operating in work groups?
(a) Team building
(b) Skill development
(c) Process consultation
(d) Survey feedback
931. ………….. brings about changes in the way products or services are manufactured.
(a) Product innovation
(b) Radical innovation
(c) Incremental innovation
(d) Process innovation
932. The efficient use of resources relative to outcomes is known as ………………

(a) Innovation
(b) Financial resources
(c) Physical resources
(d) Productivity
933. Which of the following is not a step in the organizational development process?
(a) Diagnosis
(b) Interruption
(c) Intervention
(d) Evaluation
934. Which of the following is not a fixed asset?

(a) Land
(b) Building
(c) Marketable securities
(d) Machinery
935. Which of the following means is not used by managers when implementing operational
research techniques?
(a) Scientific
(b) Financial
(c) Logical
(d) Mathematical
936. A …………………… organization structure has a wide span of control and only a few
hierarchical levels.
(a) Flat
(b) Narrow
(c) Tall
(d) Wide
937. Which of the following designations does not fall in the category of top-level management?
(a) Chief executive officer
(b) Executive director
(c) President
(d) Supervisor
938. …………. are related to the balance sheet instead of the income statement.
(a) Capital standard
(b) Revenue standard
(c) Program standards
(d) Cost standards
939. Which of the following decision making techniques is used to estimate the profitability of an
investment?
(a) Marginal analysis
(b) Financial analysis
(d) Ratio analysis
940. Which of the following is not an output device?

(a) Printers
(b) Visual display monitors
(c) Graphic plotters
(d) Optical scanners
941. In the MBO transformation process objectives are not stated in terms of..........
(a) Quantity.
(b) Quality.
(c) Profits
(d) Time.
942. Action plans are concerned with identifying and grouping activities in the .......... stage of the
MBO transformation process.
(a) Selling objectives.
(b) Planning for action.
(c) Control and appraisal.
(d) Hierarchy of objectives.
943. Which of the following sub-systems is an integral part of the MBO process
i. Man power planning
ii. Compensation.
iii. Appraisal
(a) i and ii.
(b) i and iii.
(c) ii and iii.
(d) i, ii and iii.
944. Which of the following is not a limitation of the MBO?

(a) Difficulty in goal setting.
(b) Flexibility.
(c) Failure to give guidelines to goal setters.
(d) Importance of short-term goals.
945. The first step in an MBO program is................

(a) Formulating action plans.
(b) Clarifying organisational roles.
(c) Establishing specific goals for various departments.
(d) Developing overall organisational goals.
946. Which of the following terms refers to the areas in which good performance is essential for the
success of an enterprise?
(a) Key result areas.
(b) Performance areas.
(c) Significant areas.
(d) Key work areas.
947. Which of the following refers to efforts made within a firm to evaluate its own social
responsiveness?
(a) Social audit.
(b) Management audit.
(c) Organizational audit.
(d) Environment audit.
948. Many people oppose the involvement of organisations in social welfare activities. Which of the
following is not a reason for their opposition to such activities?
(a) Excessive costs.
(b) Absence of mechanism to ensure accountability to society.
(c) Protecting shareholders interests.
(d) Weakened international balance.
949. Which of the following determines a person ethical or unethical behaviour?

(a) Values.
(b) Procedures.
(c) Rules.
(d) Policies.
950. In which of the following situations does the intensity of an ethical issue increase?
(a) Everyone agrees that the action is right.
(b) Many people will be harmed by the action.
(c) When the chances of the act causing harm are negligible.
(d) When the action has no serious impact on people.
951. Which of the following refers to developments in countries other than/outside the organisations
home country that have the potential to influence the organisation?
(a) Sociocultural component.
(b) Technological component.
(c) International component.
(d) Economic component.
952. ............ divisions are set up to serve particular types of clients or customers.
(a) Customer
(b) Product.
(c) Service
(d) Geographic.
953. Which of the following is not a structural method for promoting innovation in organisations?
(a) Roles.
(b) Reservations.
(c) Environment.
(d) Differentiation.
954. Which of the following is not an advantage of functional departmentation in organisations?

(a) In depth skill development.
(b) Simplified training.
(c) Reduced coordination between functions.
(d) Clarity about career paths
955. Which of the following is not a major form of the divisional structure of departmentalisation?
(a) Product division.
(b) Geographic division.
(c) Sales division.

(d) Customer division.
956. Which of the following is not an advantage of product division?

(a) Improves coordination of functional activities.
(b) Requires more people with general managerial abilities.
(c) Permits growth of products and services.
(d) Places attention and efforts on product line.
957. Which of the following is not a characteristic of a line manager when exercising his authority?
(a) Takes operating decisions.
(b) Direct others.
(c) Delegates.
(d) Assist others.
958. Which of the following is not a feature of the consultative style of management?
(a) Motivating employees.
(b) No upward communication flow.
(c) Downward communication flow.
(d) Managers acting as consultants.
959. The .................. refers to the assignment of formal authority and responsibility to another person
for carrying out specific activities :
(a) Decentralisation of authority.
(b) Delegation of responsibility.
(c) Centralisation of authority
(d) Delegation of authority.
960. The willingness of subordinates to take on additional responsibilities is a factor that affects the
degree of..............
(a) Centralisation.
(c) Decentralisation.
(d) Controlling.
962. MBO techniques wok successfully when managers consider the assumptions of ……………….
and the actions of employees are consistent with these assumptions.
(a) Theory W
(b) Theory X
(c) Theory Y
(d) Theory Z
963. Which of the following is synonymous with the external culture of an organization?
(a) Corporate culture
(b) Social culture
(c) Corporate philosophy
(d) Social programs
964. In ……………………, the opinion of experts are collected to arrive at a consensus.

(a) Interacting groups
(b) Nominal groups
(c) Delphi groups
(d) Formal groups
965. Which of the following terms refers to the measurement of performance in an organization?
(a) Coordination
(b) Organizational development
(c) Appraisal
(d) Control
966. Which of the following is not a social need?

(a) Cooperative peers
(b) Good superiors
(c) Job security
(d) Loyal customers
967. A firm using a ……………… strategy tries to specialize within a very narrow segment of the
market by establishing a position of overall cost, leadership, differentiation or both.
(a) Specific
(b) Focus
(c) Directive
(d) Differentiation
968. Which of the following represents the formulation and quantification of plans for a particular
period of time in the future?
(a) Linear programming
(b) Budgeting
(c) Leveraging
(d) Computing
969. A superior officer evaluates the performance of his subordinates in order to decide who should
be promoted. What type of power does the superior have in this case?
(a) Referent
(b) Coercive
(c) Legitimate
(d) Reward
970. Just in time is also known as stockless production and …………………..

(a) Finished goods inventory
(b) Zero inventory
(c) Raw material inventory
(d) Work in progress inventory
971. The specific roles of figurehead’s leader and liaison fall in category of....... role:
(a) Informational.
(b) Decisional.
(c) Organisational.
(d) Interpersonal.
972. Which of the following is not a key leadership trait as proposed by the trait theory?
(a) Leadership motivation.
(b) Honesty and integrity
(c) Rigidness.
(d) Self-confidence.
973. According to the trait theory of leadership, which of the following is a social characteristic of
leaders?
(a) Interpersonal skills.
(b) Achievement
(c) Enthusiasm
(d) Adaptability
974. Which of the following is not a critical dimension of the leadership situation identified by Fiedler
that would help in deciding the most effective style of leadership?
(a) Position power.

(b) Task structure.
(c) Organisational structure.
(d) Leader-member relations.
975. Research on leadership has been carried out at the University of Michigan, and Ohio State
university. Which of the following studies focused on the aspects of leadership?
(a) Behavioural.
(b) Situational
(c) Substitutes.
(d) Traits.
976. The.............. leader tends to make unilateral decisions, dictates work methods, limits worker
knowledge about goals and sometimes gives punitive feedback.
(a) Participative
(b) Autocratic.
(c) Laissez-faire
(d) d. Democratic.
977. Fiedler’s approach to leadership is one of the popular ............ theories of leadership :
(a) Behavioural.
(b) Trait
(c) Situational
(d) Transformational.
978. Leadership involving an exchange relationship between leaders and followers is termed as :
(a) Transformational Leadership.
(b) Situational Leadership.
(c) Transactional Leadership.
(d) Exchange Leadership.
979. Which of the following is not a leadership style as proposed by Iowa and Michigan studies?
(a) Bureaucratic
(b) Democratic
(c) Autocratic
(d) Laissez faire.
980. Which type of technical innovation involves changes in the physical characteristics of a
product or the creation of new products?
(a) Managerial innovation
(c) Process innovation
(d) Product innovation
981. Which type of leaders gives complete freedom to their employees?

(a) Autocratic leaders
(b) Bureaucratic leaders
(c) Participative leaders
(d) Laissez faire leaders
982. Democratic Leadership is also known as ………………. Leadership

(a) Autocratic
(b) Participative
(c) Bureaucratic
(d) Laissez-faire
983. Which of the following is not a motivational technique?

(a) Participation.
(b) Quality of work life
(c) Job enrichment
(d) Job description
984. Which of the following is the origin of any motivated behaviour?

(a) Need
(b) Drives
(c) Goals
(d) Wants
985. Which of the following methods encourages the involvement of employees in the setting of
objectives?
(a) Management by walking around
(b) Management by goals
(c) Management by objectives
(d) Management by exceptions
986. A collection of values, norms, beliefs, attitudes and habits that directs the behaviour of a group
of people is known as................
(a) Culture.
(b) Programs.
(c) Rules
(d) Philosophy.
987. Which of the following is not a common characteristic of corporate culture?

(a) It is based on certain norms.
(b) It shapes philosophy and rules.
(c) The strength of culture varies from organisation to organisation
(d) Leads to diverse behavioural aspects.
988. Which of the following methods help managers find out the minimum time and cost required to
complete a project?
990. ............... refers to unanalyzed and unorganised facts and figures describing entities.
(a) Information.
(b) Intelligence.
(c) Data
(d) Systems.
991. External information is more useful for.......... managers :

(a) Top level.
(b) Middle level
(c) Lower level
(d) Link level
information?
(a) Customer.
(b) Employee
(c) Supplier
(d) Government

(a) Keyboard.
(b) Printers.
(c) Floppy discs.

(d) Magnetic discs
(a) Direct control.
995. Individual differences in human beings are rooted in difference in their ……………… make up.
(a) Penological
(b) Pathological
(c) Physiological
(d) Psychological
(b) Social culture
(d) Social programs
997. Organization culture is an aspect of the ……………. environment of an organization.

(a) General
(b) Task
(c) Internal
(d) External
998. . … Which of the following describe the set of feelings or beliefs that individuals have about
certain ideas situations or people?
(a) Attitude
(b) Dogmatism
(c) Self esteem
(d) Self efficacy
999. According to the ………………, a person’s behaviour is influenced by the environment.

(a) Behaviouristic view
(b) Emotional view
(c) Economical view
(d) Self actualizing view
1000. A/ an …………………….. organization is a network of personal and social relations not established
or required by the formal organization and arising spontaneously as people associate with one another.
(a) Informal
(b) Formal
(c) Partly formal
(d) Strategic
Management Fundamentals
MCQ
Semester I
Subject Code: 107 (1 Marks each)

a. Authority and responsibility
b. Line of authority
c. Globalization
d. Unity of command

a. Operations Management
b. TQM
c. MIS
d. None of these
3. Theory states that the average employee is lazy and will try to do as little as possible.
a. X
b. Y
c. Z
d. None
4. Scientific management, administrative management, and bureaucratic management belong to the

management viewpoint known as the
5. The theorist that advocated standard methodology for doing a task and suggested that workers were
motivated by pay according to output (piecework) is
(a) Elton Mayo
(b) Max Weber
(d) Henri Fayol


(b) Managers should apply classical management theory to their everyday work if they want to be more effective.
(c) A traditional approach to management can be successfully applied to the problems of a modern organisation.
(a) The unions.
(b) The managers.
(c) The organization as a whole.
(d) The workers

(d) Work specialization

(a) Specialization of labor
(a) It is based on rules and procedures rather than personal preference and judgment.
(b) It is still a relevant concept in today’s organization.
13. Which of the following was an early key management idea, pre-dating the work of Frederick Taylor and Max
Weber?
(c) Work specialization.
(d) Classical management theory
(a) One best way.
(b) Formalization.
16. Contingency theory suggests which of the following as a limitation of classical management theory?
(c) Everything is contingent upon the workers in an organization.

(c) It is outdated as a theory as it cannot be applied to today’s modern organizations.
a. Theory Y.
b. Behavioral science.
c. Socio-technical systems.
d. Operations research.
a. Max Weber.
b. Henri Fayol.
c. Frederick Taylor.
d. Douglas McGregor.
20. According to Fayol’s 14 principles of management, ‘esprit de corps’ refers to which of the following?
a. Being treated fairly and kindly.
b. Spirit of the corporation.
c. Team work and harmony.
d. Spirit of work.
a. As an organism.
b. As a human being.
c. As a machine.
d. As a wheel in an engine.

a. Management science.
b. Management accounting.
c. Operations management.
d. Systems management.
a. Socio-political.
b. Bureaucratic.
c. Cultural.
d. None of these.
24. Which of the following is NOT part of the mix of behavioral sciences informing organization behaviors?
a. Social psychology.
b. Organizational theory.
c. Systems theory.
d. Psychology.
25. The behavioral science approaches add which of the following emphases to management?
a. The study of people who satisfy social needs at work and how informal as well as formal organization
affects behavior.
b. Management as a science and developing techniques to control behavior.
c. The scientific study of human behavior and developing behavioral techniques.
d. None of these.
26. systems theory takes into account which of the following?

a. The whole system of anything.
b. Every system involving humans.
c. Socio-technical systems.
d. Open systems.
27. Which of the following phrases is closely connected to contingency theory?

a. No one best way.
b. Today’s ideas are tomorrow’s history.
c. One best way.
d. Universal ideas of good management.

(a) Obsolescence of skills
(c) Fear of unknown
(a) Evolutionary
(b) Revolutionary
(c) Planned
(d) Unplanned.

(a) Planning, organizing, staffing and directing
(b) Planning, organizing, leading and directing
(c) Planning, organizing, leading and staffing

(a) Officer
(d) Secretary.
(a) Insolvency
(c) Unsound mind

(b) forecasting,
(c) staffing,
(d) organizing

(a) choice,
(b) communication,
(c) machine,
(d) coordination.

(d) standing plans

(b) cost reduction,
(b) environment,
(c) resistance.
(d) technology
38. Planning is:

(a) looking ahead,
(b) guiding people,

(c) budgets,
(d) strategic


(a) planning,
(c) training,
(d) selection

(a) common purpose,
(b) corruption,

(b) plans,
(d) environment.



(a) an individual,
(b) position,
(c) relationship,
(d) control
47. Delegation is:


49. Organization structure is primarily concerned with and of tasks and authority.
50. Line organization is also known as organization.

(a) Scalar
(b) Chain
(c) Matrix
(d) Project
51. A/ an .................................... organization is a network of personal and social relations not established
(a) Informal
(b) Formal
(c) Partly formal
(d) Strategic
52. According to the ................................. , a person’s behaviour is influenced by the environment.

(b) Emotional view
(c) Economical view
(b) Social culture
(d) Social programs
54. Organization culture is an aspect of the .............................................. environment of an organization.

(a) General
(b) Task
(c) Internal
(d) External
55. Which of the following describe the set of feelings or beliefs that individuals have about
(a) Attitude
(b) Dogmatism
(c) Self esteem
(d) Self efficacy
(a) Direct control.
57. Individual differences in human beings are rooted in difference in their ................................................................. make up.
(a) Penological
(b) Pathological
(c) Physiological
(d) Psychological
58. External information is more useful for. ...............managers :

(a) Top level.
(b) Middle level
(c) Lower level
(d) Link level
59. Which one of the following is not an external user to whom the company is required to provide information?
(a) Customer.
(b) Employee
(c) Supplier
(d) Government
60. Which of the following methods encourages the involvement of employees in the setting of objectives?

60. A collection of values, norms, beliefs, attitudes and habits that directs the behaviour of a group of
people is known as................
(a) Culture.
(b) Programs.
(c) Rules
(d) Philosophy.


63. Democratic Leadership is also known as ..................................... Leadership

(a) Autocratic
(b) Participative
(c) Bureaucratic
(d) Laissez-faire

(a) Participation.
(c) Job enrichment
(d) Job description
(a) Bureaucratic
(b) Democratic
(c) Autocratic
(d) Laissez faire.
67. Which type of technical innovation involves changes in the physical characteristics of a product or
the creation of new products?
68. Research on leadership has been carried out at the University of Michigan, and Ohio State university.
Which of the following studies focused on the aspects of leadership?
(a) Behavioural.
(b) Situational
(c) Substitutes.
(d) Traits.
69. The. ...............leader tends to make unilateral decisions, dictates work methods, limits worker
(a) Participative
(b) Autocratic.
(c) Laissez-faire
(d) d. Democratic.
70. Fiedler’s approach to leadership is one of the popular ............................................ theories of leadership :
(a) Behavioural.
(b) Trait
(c) Situational
71. A superior officer evaluates the performance of his subordinates in order to decide who should be promoted.
What type of power does the superior have in this case?
(a) Referent
(b) Coercive
(c) Legitimate
(d) Reward
72. The specific roles of figurehead’s leader and liaison fall in category of. ............................................ role:
(a) Informational.
(b) Decisional.
(c) Organisational.
(d) Interpersonal.
(a) Theory W
(b) Theory X
(c) Theory Y
(d) Theory Z
(b) Social culture
(d) Social programs
75. The willingness of subordinates to take on additional responsibilities is a factor that affects the degree
of..............
(a) Centralisation.
(d) Controlling.
77. The ..................... refers to the assignment of formal authority and responsibility to another person
Delegation of authority
responsiveness?
(a) Social audit.

(b) Flexibility.
80. Action plans are concerned with identifying and grouping activities in the ............................. stage of the
(c) President
(d) Supervisor
82. A ................................. organization structure has a wide span of control and only a few
(a) Flat
(b) Narrow
(c) Tall
(d) Wide
83. Which of the following intervention techniques is concerned with the interpersonal relations and
dynamic operating in work groups?
(a) Team building
(d) Survey feedback
84. refers to the powers to make decisions to guide their actions of another.
(a) Responsibility
(b) Authority
(c) Power
(d) Delegation
85. provide directions for the activities of an organization.

(a) Resources
(b) Goals
(c) Information
(d) Manpower
(a) Job analysis
87. Which of the following processes shows how an individual seeks information about a certain issue and how
he interprets that information?
(a) Dogmatism
(b) Perception
(c) Stereotyping
88. Which managerial function gives attention to influencing and motivating employees to improve
performance and achieve corporate objectives?
(a) Leading
(b) Organizing
(c) Staffing
(d) Controlling
89. Which one of the following management functions helps maintain managerial effectiveness for future
activities?
(a) Organizing
(b) Planning
(c) Staffing
(d) Leading
90. Which one among the following areas for strategic goals indentifies factors that indicate the financial
well being of an organization?
(b) Productivity

(a) People.
(b) Position.
(c) Relationships.
(d) Public.
92. refers to the grouping of activities and resources in a logical fashion.

(a) Organising.
(b) Staffing.
(c) Planning.
(d) Controlling.
94. Participation and commitment from which of the following level(s) of management is necessary
for the success of an MBO program.
(a) Top level.
(b) Lower level.
(c) Middle level.
(d) All the above.
95. The structural methods used for promoting innovation help organisations implement ............................. and
achieve goals.
(a) Procedures
(b) Policies
(c) Strategies
(d) Rules
96. Organisations with. ................. structures usually have many hierarchical levels and narrow spans
of control.
(a) Flat.
(b) Broad.
(c) Wide.
(d) Tall.
(c) Inflexible.
(d) Adaptable.

(a) Security.
(b) Status.
(d) Social satisfaction
99. is the unbroken line of authority linking each employee with the top most position

(c) Discipline.
(d) Scalar chain.
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
MBA I SEM I
MCQ: 107 – Management Fundamental
Sr. Question Answe

No. r
1 The steps in ……………must include, among other things, the establishment A
of objectives, the course of actions to take and the follow-up of those
actions if the business wants success.
(A) Planning
(B) Organizing
(C) Staffing
(D) Producing
2 ………….is a network of cooperation made possible by, ICT, i.e. Information D
and Communication Technology, which is flexible and comes to meet the
dynamics of the market.
(A) Learning Organization
(B) Organization
(C) Boundary less Organization
(D) Virtual Organization
3 Departments in decentralization are often broken down by broad categories B
which is not among them
(A) Functional
(B) Cost
(C) Product
(D) Geographical
4 .......................is what the organizational chart typically illustrates. B
(A) Span of control
(B) Interest area
(C) The chain of command
(D) Department
5 Tasks are subdivided into individual jobs and Employees perform only the A
tasks relevant in to their specialized function comes under ...............
(A) Work Specialization
(B) Work planning
(C) Work functions
(D) Departmental
6 The duty to perform the task or activity an employee has been assigned and C
Managers are assigned authority Commensurate with .......................
(A) Functions
(B) Rules
(C) Responsibility
(D) Department
Prof. Nilambari Moholkar www.dimr.edu.in

7 Process managers use to transfer authority and responsibility on organizations C

encourage managers to delegate authority to lowest possible level know
as.........
(A) Structure
(B) Resealing
(C) Delegation
(D) Responsibility
8 An organizational structure Results in a complex network of superior- D
subordinate reporting relationships and the structure is very flexible and
can respond rapidly to the need for change is very well known
as.................
(A) Global geographic structure
(B) Departments structure
(C) Divisional structure
(D) Matrix structure
9 The structure of a large organization that has many divisions and D
simultaneously uses many different organizational structures
(A) Departments structure
(B) Divisional structure
(C) Matrix structure
(D) Hybrid Structure
10 Top managers should always construct a hierarchy with the fewest levels of C
authority necessary to efficiently and effectively use organizational
resources comes under............................................
(A) Accountability
(B) Responsibility
(C) Minimum Chain of Command
(D) Structure
11 Interpersonal Category does not include. B
(A) Liaison
(B) Toys
(C) Figurehead
(D) Leader
12 Informational Category does not include. D
(A) Disseminator
(B) Spokesperson
(C) Monitor
(D) System
13 Decisional Category does not include. B
(A) Disturbance Handler
(B) Process
(C) Resource Allocator
(D) Entrepreneur

14 …………….have universal application in every kind of enterprise and at every B

level of the enterprise.
(A) Management fund
(B) Management fundamentals
(C) Mutual Fund
(D) Maturity Date
15 Practical lessons from scientific management say which of the belonging. C
(A) Carefully design jobs with inefficient work methods
(B) Carefully select workers with the no abilities to do these jobs
(C) Train workers to perform jobs to the best of their abilities
(D) Train supervisors does not support workers so they can perform jobs to
the best of their abilities
16 Administrative principles does not includes ………….. D
(A) Foresight
(B) Organization
(C) Command
(D) Force
17 Which of the below is correct option for Characteristics of bureaucratic C
organizations
(A) Physiological
(B) Safety
(C) Formal rules and procedures
(D) Social
18 Which of the below is Foundations in the behavioral or human resource A
approaches to management
(A) Theory X and Theory Y
(B) Classical
(C) Scientific
(D) Administrative
19 Which of the below is Classical or human resource approaches to management C
(A) Maslow’s Need Theory
(B) Theory X And Theory Y
(C) Administrative
(D) Hawthorne Studies
20 Which of the below is Quantitative Approaches to management. D
(A) Theory X and Theory Y
(B) Classical
(C) Scientific
(D) Operation Management
21………………..to Management provides a framework of management practices A
based on more recent trends, such as globalization, theory Z concepts,
McKinsey’s 7-S approach, excellence models, productivity and quality issues.
(A) Contemporary Approaches
(B) Classical Approach
(C) Behavioral Approach
(D) Quantitative Approach

22Hg Which of the following is a Theory X assumes that workers are:- C

(A) Willing to work
(B) Capable of self control
(C) Lack ambition
(D) Willing to accept responsibility
23 Which of the following is a Theory Y assumes that workers are:- D

(A) Are irresponsible
(B) Resist change
(C) Prefer to be led
(D) Willing to accept Responsibility
24 The ………….school emerged to treat the problems associated with global C

warfare.
(A) Management Information System
(B) Operation Management
(C) Management Science
(D) Perfect Competition
25 ……………is a narrow branch of the quantitative approach to management. It B

focuses on managing the process of transforming materials, labor, and capital
into useful goods and/or services.
(A) Management Information System
(B) Operation Management
(C) Management Science
(D) Perfect Competition
26 ……………has contributed directly to management decision making in the A
areas of planning and control.
(A) Quantitative Approach
(B) Science Management
(C) Management Information System
(D) Bureaucratic
27 A ……….which says that organizations are different, face different situations C
and require different ways of managing.
(A) Quantitative Approach
(B) Science Management
(C) Management Approach
(D) Management Information System
28 There a relationship between employee job performance and …………….. B

(A) Employees satisfaction
(B) Customer satisfaction
(C) Labour Job
(D) Skilled Employees

29 ……………Means doing things differently, exploring new territory, and taking A

risks, innovative effort can be found in all types of organizations.
(A) Innovation
(B) Growth
(C) Development
(D) Design
30 “Acting in their managerial capacity, president, college deans, bishops, B
and………………., all do the same things.”
(A) Head of secret agencies
(B) Head of government agencies
(C) Help of government agencies
(D) Head of great agencies
31 ………………….is a process of agreeing upon objectives within an B
organization so that management and employees agree to the objectives and
understand what they are in the organization.
(A) Material by Objectives
(B) Management by Objectives
(C) Management by Order
(D) Mix by Objectives
32 Which of the following is not a benefit of planning? B
(A) Planning reduces overlapping and wasteful activities.
(B) Planning is a mental exercise.
(C) Planning provides directions.
(D) Planning reduces the risks of uncertainty.
33 Which of the following statements is not true with reference to planning? B
(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.
34 What is known as the primary function of management? C
(A) Controlling
(B) Organising
(C) Planning
(D) Staffing
35 All other managerial functions are performed within the framework of the D
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.

36 Customer Departmentalization includes which of the below work . A

(A) Customers’ needs and problems can be met by specialists
(B) Allows specialization in particular products and services
(C) Managers can become experts in their industry
(D) Closer to customers
37 Product Departmentalization includes which of the below:- C
(A) Simple of functions
(B) Unlimited view of organizational goals
(C) Managers can become experts in their industry
(D) Customers’ needs and problems can be met by specialists
38 ………………A desired future state that the organization attempts to realize B

(A) Mission
(B) Goal
(C) Vision
(D) Structure
39 Broadly states the basic business scope and operations that distinguishes it A
from similar types of organizations………………..
(A) Mission
(B) Goal
(C) Vision
(D) Structure
40 “Accomplishing tasks through small groups of people who are collectively B

responsible and whose job requires coordination “relates to which of the
below skill.
(A) Strategic Action Competency
(B) Team work competency
(C) Multicultural(Global) Competency
(D) Self-Management Competency
41 “Understanding, appreciating and responding to diverse political, cultural, C

ethnic, and economic issues across and within nations”. relates to which of
the below skill.
(C) Multicultural(Global) Competency
42 “Deciding what tasks need to be done, determining how they can be done, C
allocating resources to enable them to be done, and then monitoring progress
to ensure that they are done.” relates to which of the below skill.
(C) Planning & administrative Competency

43 “Understanding the overall mission and values of the organization and A

ensuring that employees’ actions match with them – includes Understanding
industry, understanding Co ,taking strategic actions.” relates to which of the
below skill.
44 “Developing yourself and taking responsibility, Integrity and ethical conduct, D
Personal drive and resilience”. are the skills belongs to…………..
45 Ability to effectively transfer and exchange information that leads to B
understanding between yourself and others
(B) Communication competency
46 “Directly responsible for production of goods or services and Spend little time B
with top managers in large organizations.” are the responsibility of which
manager?
(A) Top manager
(B) First Line manager
(C) Middle line manager
(D) Lower line manager
47 “Develop goals and strategies for entire organization and Spend most of their A
time planning and leading , Communicate with key stakeholders—
stockholders” are the responsibility of which manager ?
(A) Top manager
48 Three Approaches to Defining What Managers Do does not include. C
(A) Functions they perform.
(B) Roles they play.
(C) Unlawful
(D) Skills they need.

49 Responsible for setting objectives that are consistent with top management’s C
goals and translating them into specific goals and plans for first-line
managers to implement, Responsible for coordinating activities of first-line
managers.
(A) Top manager
50 ………..refers to the degree to which jobs within the organization are B
standardized and the extent to which employee behaviour is guided by rules
and procedures.
(A) Chain of Command
(B) Formalization
(C) Centralization
(D) Decentralization
51 ……………… describes the degree to which decision making is concentrated C

at a single point in the organization.
(B) Formalization
(C) Centralization
52 The more that lower-level employees provide input or actually make decisions, D
the more ………………there is.
(B) Formalization
(C) Centralization
53 ………are more expensive because of the number of managers involved. A
communication problems because of the number of people through whom
information must pass.
(A) Tall organization
(B) Flat organization
(C) Structure organization
(D) Organic structure
54 Lead to higher levels of employee morale and productivity. Create more B
administrative responsibility for the relatively few managers.
(A) Tall organization
(B) Flat organization
55 An organizational arrangement based on multiple businesses in related areas A
operating within a larger organizational framework; following a strategy of
related diversification. Activities are decentralized down to the divisional
level; others are centralized at the corporate level.
(A) Multidivisional Design

(B) Geographic Structure

56 Enhances organizational flexibility. Team members have the opportunity to B

learn new skills.
(A) Multidivisional Design
(B) Matrix Structure
57 Right to take decisions that arises due to position in organizational structure. B
Authority is the right to perform or command. It allows its holder to act in
certain designated ways and to directly influence the actions of others
through orders.
(A) Responsibility
(B) Authority
(C) Rules
(D) Delegation
58 Assigning work to subordinates and giving them necessary authority to do the D
assigned work effectively.
(A) Responsibility
(B) Authority
(C) Rules
(D) Delegation
59 Do not give Sound Advice Steal Credit for Success Fail to Keep line B
personnel informed of their activities.
(A) Assume line Authority
(B) Delegation Of Authority
(C) Ask line Authority
(D) Assume line Attention
60 ……………Organizations Another approach to contemporary organizational A
design is the It is an organization whose design is not determined by a
predefined structure. Instead the organization seeks to eliminate
(A) Boundary less Organizations
(B) Virtual Organizations
(C) Tele-working
(D) Global Organizations
61 Assisting in recruiting efforts. Enhancing worker morale. Managing employee B
attendance and reducing absenteeism ……………
(B) flexi –work Organizations
(C) Tele-working

62 The recent proliferation of "……….." has been fueled more by economic C

necessity than strategic planning.
(B) flexi –work Organizations
(C) Tele-working
63 Which of the following terms is associated with nonprogrammer decisions? A
(A) Unique
(B) Recurring
(C) Routine
(D) Repetitive
64 Lower-level managers typically confront what type of decision making? C
(A) Unique
(B) Nonroutine
(C) Programmed
(D) Nonprogrammed
65 When problems are ______________, managers must rely on C
______________ in order to develop unique solutions.
(A) Well structured; nonprogrammed decision making
(B) Well structured; pure intuition
(C) Poorly structured; nonprogrammed decision making
(D) Poorly structured; programmed decision making
66 Nonprogrammed decisions are best described as ________________. D
(A) Recurring, but difficult to make
(B) Very similar to problems in other areas of the organization
(C) Requiring more aggressive action on the decision maker’s thought
processes
(D) Unique and nonrecurring
67 Poorly structured problems _____________. D
(A) Are easily solved
(B) Present new or unusual circumstances
(C) Force managers to deal with incomplete or ambiguous information
(D) b and c
68 A business school’s statement that it “strives for productive relationships with B
local organizations” is an example of a ________________.
(A) Rule
(B) Policy
(C) Procedure
(D) Commitment
69 Which of the following factors contrasts the difference between a policy and a A
rule?
(A) A policy establishes parameters
(B) A rule establishes parameters
(C) A policy is more explicit
(D) A rule is more ambiguous
70 A policy ____________. A

(A) Typically Contains An Ambiguous Term

(B) Is Used Frequently When A Manager Faces A Well-Structured Problem
(C) Allows Little Discretion On The Part Of The Manager
(D) Offers Strict Rules As To How A Problem Should Be Solved
71 A ______________ is an explicit statement that tells a manager what he or she C
can or cannot do.
(A) Procedure
(B) Policy
(C) Rule
(D) Solution
72 Programmed decision making tends to rely on which of the following? C
(A) The Problem Solver’s Ability To Think On His Or Her Feet
(B) The Development Of A Clear Set Of Alternative Solutions
(C) Previous Solutions
(D) Identification Of The Actual Problem
73 ______________ decision making is relatively simple and tends to rely heavily D
on previous solutions.
(A) Nonprogrammed
(B) Linear
(C) Satisfying
(D) Programmed
74 The most efficient way to handle structured problems is through D
______________ decision making.
(A) Linear
(B) Unique
(C) Focused
(D) Programmed
75 According to the textbook, all of the following are aspects of intuition except D
__________________.
(A) Experienced-Based Decisions
(B) Affect-Initiated Decisions
(C) Cognitive-Based Decisions
(D) Programmed Decisions
76 In studying intuitive decision making, researcher have found that B
__________________.
(A) Managers Do Not Make Decisions Based On Feelings Or Emotions
(B) Managers Use Data From Their Subconscious Mind To Help Make
Their Decisions
(C) Rational Thinking Always Works Better Than Intuitive
(D) Accumulated Experience Does Not Support Intuitive Decisions
77 Managerial decisions are strongly influenced by ________________. D
(A) The Organization’s Culture
(B) Internal Politics
(C) Power Considerations
(D) All Of The Above

78 When a decision maker chooses an alternative under perfect rationality, she C

chooses a ______________ decision, whereas under bounded rationality she
chooses a ______________ decision.
(A) Minimizing; Satisfying
(B) Satisfying; Maximizing
(C) Maximizing; Satisfying
(D) Maximizing; Minimizing
79 Which of the following is important to remember in evaluating the B
effectiveness of the decision-making process?
(A) Ignore Criticism Concerning The Decision-Making Process
(B) You May Have To Start The Whole Decision Process Over
(C) Restart The Decision-Making Process If The Decision Is Less Than 50
Percent Effective.
(D) Ninety Percent Of Problems With Decision Making Occur In The
Implementation Step.
80 Which of the following is the final step in the decision-making process? B
(A) Identifying The Problem
(B) Evaluating The Decision’s Effectiveness
(C) Identifying Decision Criteria
(D) Selecting An Alternative That Can Resolve The Problem
81 Which of the following is important in effectively implementing the chosen C
alternative in the decision-making process?
(A) Getting Upper-Management Support
(B) Double-Checking Your Analysis For Potential Errors
(C) Allowing Those Impacted By The Outcome To Participate In The
Process
(D) Ignoring Criticism Concerning Your Chosen Alternative
82 ______________ includes conveying a decision to those affected and getting C
their commitment to it.
(A) Selecting An Alternative
(B) Evaluation Of Decision Effectiveness
(C) Implementation Of The Alternatives
(D) Analyzing Alternatives
83 To determine the _____________, a manager must determine what is relevant D
or important to resolving the problem.
(A) Geocentric Behavior Needed
(B) Number Of Allowable Alternatives
(C) Weighting Of Decision Criteria
(D) Decision Criteria
84 The feedback control system: A
(A) Cannot make corrections until a measurable error exists
(B) Makes a change in output which is the differentiated error
(C) Is always superior to a feedforward system in operation
(D) Is theoretically capable of perfect control
85 The most dramatic application of feedforward techniques has occurred in their D
application to:

(A) Heat exchangers

(B) Level processes
(C) Flow processes
(D) Distillation columns
86 A properly designed feedforward control system: B
(A) Should be applied to every process
(B) Should be employed when its use can be justified economically and
technologically
(C) Is always easier to adjust than a feedback system
(D) Will always result in more economical process operation
87 _____________function of management not only helps in keeping a track on C
progress of activities but also ensures that activities confirm to standards fill
in the above blank with the most suitable functions of management.
(A) Planning
(B) Organizing
(C) Controlling
(D) Directing
88 Which of the following is not the feature of controlling? D
(A) A goal of oriented process
(B) Not the last function of management
(C) A pervasive function
(D) Improves employees motivation
89 controlling functions finds out how for actual performance deviates from B
standards, analyses the causes of such deviation and attempts to take
corrective measure which helps in better planning in future which features of
controlling the highlighting in above case.
(A) A goal oriented process
(B) Not the last function of management
(C) A pervasive function
(D) Improves employees motivation.
90 Mr.Arnold is of the view that a good control system helps to minimize B
dishonest behavior on the part of the employees by keeping a close check on
their activities.
Which importance of controlling function is expressed by Mr.Arnold?
(A) Accomplishment of organizational goal
(B) Ensures order and discipline
(C) Judging accuracy of standards
(D) Facilitating coordination in action
91 An efficient control system keeps a careful check on the changes taking place C
in the organization and in the environment.
Which importance of controlling function is expressed by Mr.arnold?
(A) Accomplishment of organizational goal
(B) Ensures order and discipline
(C) Judging accuracy of standards
(D) Facilitating coordination in action

92 Determining a percentage to be applied to a chosen benchmark for materiality B

involves the exercise of ______________.
(A) Professional skepticism
(B) Professional judgment
(C) Independence
(D) Provision
93 Factors that may affect the identification of an appropriate benchmark in C
determining Materiality for the financial statements as a whole include the
following:
(A) The elements of the financial statements

(B) The entity’s ownership structure and the way it is financed
(C) Both the above
(D) None of the above
94 Audit risk is a function of: B
(A) Audit risk and detection risk
(B) Risks of material misstatement and detection risk
(C) Control risk and detection risk
(D) Inherent risk and detection risk
95 In relation to the chosen benchmark in determining materiality for the financial C
statements as a whole, relevant financial data ordinarily includes:
(A) Prior periods’ financial results and financial position
(B) The period-to-date financial results and financial position
(C) Both the above
96 The audit documentation shall include the basis for the auditor’s conclusions A
about the_____________ of accounting estimates and their disclosure that
give rise to significant risks.
(A) Reasonableness
(B) Correctness
(C) personality
(D) Disinvestment
97 Due to which of the following reasons excessive band width in control systems C
should be avoided?
(A) It leads to slow speed of response
(B) It leads to low relative stability
(C) Noise is proportional to bandwidth
(D) Presence of feedback
98 In an automatic control system which of the following elements is not used? D
(A) Error detector
(B) Final control element
(C) Sensor
(D) Oscillator

99 The use of feedback element in the feedback loop is: A

(A) It converts the output variable ‘c’ to another suitable feedback variable
‘b’ to compare with the input command signal.
(B) It is the actuating element
(C) To increase the stability
(D) None of the mentioned
100 Practically all the elements are: B
(A) Linear
(B) Non-linear
(C) Exponential
(D) None of the mentioned
101 The need of assuming non-linear element as linear: D
(A) Simplicity of analysis and accuracy of results
(B) Ease of calculations
(C) Less time consuming
(D) Mathematical tool available
102 A situation in which a decision maker knows all of the possible outcomes of a B
decision and also knows the probability associated with each outcome is
referred to as.
(A) Certainty.
(B) Risk.
(C) Uncertainty.
(D) Strategy.
103 Which of the following methods of selecting a strategy is consistent with risk A
averting behavior?
(A) If two strategies have the same expected profit, select the one with the
smaller standard deviation.
(B) If two strategies have the same standard deviation, select the one with
the smaller expected profit.
(C) Select the strategy with the larger coefficient of variation.
(D) All of the above are correct.
104 Which one of the following does measure risk? C
(A) Coefficient of variation
(B) Standard deviation
(C) Expected value
(D) All of the above are measures of risk.
105 If a person's utility doubles when their income doubles, then that person is risk. B
(A) Averse.
(B) Neutral.
(C) Seeking.
(D) There is not enough information given in the question to determine an
answer.

106 Strategy A has an expected value of 10 and a standard deviation of 3. Strategy D

B has an expected value of 10 and a standard deviation of 5. Strategy C has
an expected value of 15 and a standard deviation of 10. Which one of the
following statements is true?
(A) A risk averse decision maker will always prefer A to B, but may prefer
C to A.
(B) A risk neutral decision maker will always prefer C to A or B.
(C) A risk seeking decision maker will always prefer C to A or B.
107 The coefficient of variation measures. A
(A) The risk per unit of expected payoff.
(B) The risk-adjusted expected value.
(C) The payoff per unit of risk.
(D) A decision maker's risk-return tradeoff.
108 A situation in which a decision maker must choose between strategies that D
have more than one possible outcome when the probability of each outcome
is unknown is referred to as
(A) Diversification.
(B) Certainty.
(C) Risk.
(D) Uncertainty.
109 If a decision maker is risk averse, then the best strategy to select is the one that C
yields the.
(A) Highest expected payoff.
(B) Lowest coefficient of variation.
(C) Highest expected utility.
(D) Lowest standard deviation.
110 Circumstances that influence the profitability of a decision are referred to as C
(A) Strategies.
(B) A payoff matrix.
(C) States of nature.
(D) The marginal utility of money.
111 The marginal utility of money diminishes for a decision maker who is C
(A) A risk seeker.
(B) Risk neutral.
(C) A risk averter.
(D) In a situation of uncertainty.
112 A strategy that yields an expected monetary payoff of zero is called a B
(A) Risk-neutral strategy.
(B) Fair game.
(C) Zero-sum game.
(D) Certainty equivalent.

113 A risk-return tradeoff function D

(A) Shows the minimum expected return required to compensate an
investor for accepting various levels of risk.
(B) Slopes upward for a risk averse decision maker.
(C) Is horizontal for a risk neutral decision maker.
114 If the market interest rate is 10% and a decision maker's risk adjusted discount A
rate is 12%, then the decision maker
(A) Is risk averse.
(B) Has a certainty-equivalent coefficient that is greater than one.
(C) Is risk neutral.
(D) None of the above is correct.
115 Circumstances that influence the profitability of a decision are referred to as C
(A) Strategies.
(B) A payoff matrix.
(C) States of nature.
(D) The marginal utility of money.
116 The marginal utility of money diminishes for a decision maker who is C
(A) A risk seeker.
(B) Risk neutral.
(C) A risk averter.
(D) In a situation of uncertainty.
117 Fred is willing to pay $1 for a lottery ticket that has an expected value of zero. D
This proves that Fred.
(A) Is risk averse.
(B) Has a certainty-equivalent coefficient that is equal to one.
(C) Is risk neutral.
118 The analysis of a complex decision situation by constructing a mathematical C
model of the situation and then performing a large number of iterations in
order to determine the probability distribution of outcomes is called
(A) Sensitivity analysis.
(B) Expected utility analysis.
(C) Simulation.
(D) A decision tree.
119 A payoff matrix presents all the information required to determine the optimal B
strategy using the
(A) Expected value criterion.
(B) The maximin criterion.
(C) The utility maximization criterion.
(D) Simulation criterion.
120 A futures contract B
(A) Is a type of bond that specifies the amount of interest that must be paid
on a loan at a future point in time.
(B) Is an agreement to buy or sell a commodity at a specified price at a
specified point in time.

(C) Is a partnership agreement between two parties that determines their

future business relationship.
121 Hedging refers to an investment strategy that is used to A

(A) Control risk from variations in currency prices.
(B) Prevent losses due to corporate bankruptcies.
(C) Ensure the highest possible rate of return.
(D) Prevent foreign competition in domestic capital markets.
122 Asymmetric information refers to circumstances in which C
(A) Both parties to a transaction have identical amounts of information.
(B) Neither party to a transaction has any relevant information.
(C) One party to a transaction has more information than the other party.
(D) The riskiness of a transaction is greater than its expected return.
123 The tendency for low-quality cars to drive high quality cars out of the used car B
market is an example of
(A) Hedging.
(B) Adverse selection.
(C) Portfolio analysis.
(D) Moral hazard.
124 A person with health insurance is more likely to become ill and visit a doctor D
than is someone without health insurance. One reason is that a person with
health insurance is less likely to take precautions that will prevent illness.
This is an example of
(A) Propinquity.
(B) A futures contract.
(C) Hedging.
(D) Moral hazard.
125 The principal-agent problem may result if B
(A) A firm is owned and operated by the same person.
(B) Managers make decisions that are not in the best interest of owners.
(C) A firm compensates managers based on the profitability of the firm.
(D) All of these answers are correct.
126 One way to correct a potential principal-agent problem is for stockholders to A

(A) Offer managers "golden parachutes" in the event of a takeover.
(B) Empower managers to make the decisions they feel are best.
(C) Ensure that there is no explicit linkage between managers'
compensation and the profitability of the firm.
(D) All of these answers are correct.

127 Element of control does not include……… A

(A) Prohibition
(B) Knowledge
(C) Director
(D) Constraint
128 Control process does include…………… C

(A) Establishment of standards of performance
(B) Measurement of actual performance
(C) Taking incorrect action
(D) Comparison of actual performance with the original standards
129 ………………is an organizational structure that groups similar or related B

occupational specialties together.
(A) Divisional Structure
(B) Functional structure
(C) Simple Structure
(D) Traditional; Structure
130 ……………, an organization whose design is not determined by a predefined B
structure. Instead the organization seeks to eliminate the chain of command
(A) Virtual organization
(B) Boundary less organization
(C) Flexi work organization
(D) Learning organization
131 A ……………is the term given to an organization which facilitates the D

learning of its employees so that the organization can continuously
transforms itself .It develops as a result of the pressures which are being
faced by the organizations these days for enabling them to remain
competitive in the present day business environment
132 Which of the below is not a tpe of control C
(A) Pre-controls or forward-looking control
(B) Feed forward or steering control
(C) Freedom
(D) Yes-no controls
133 Which of the below is not a essential of control system? C
(A) Suitability
(B) Prompt reporting
(C) Offensive -looking
(D) Focus on strategic points

134 …………….. culture is nothing but a form of organisation culture where the C
team members connect with each other, regardless of when, where, and how they
work.
135 Factors Affecting Structural Choice. D
(A) Strategy
(B) Size
(C) Technology
(D) Cost
136 Which of the below is not a environmental factor C
(A) Environment is a constraint on managerial discretion
(B) Environment also has a major effect on an organization’s structure
(C) Unstable environment: mechanistic structure
(D) Dynamic/uncertain environment: organic structure
137 Adding a significant number of new employees to a smaller organization that has B
a more …………..structure will force it to become more ……………….
(A) Vertical and horizontal
(B) Organic and mechanistic
(C) Mechanistic and Organic
(D) Horizontal and vertical
138 ………..involves tasks that must be performed to attain organizational goals, B
outlining how the tasks must be performed, and indicating when they should be
performed.
(A) Organizing
(B) Planning
(C) Structuring
(D) Performing
139 Which of the below is not a rational decision Maker B
(A) A rational decision maker would be fully objective and logical.
(B) Solution faced would be clear, unambiguous ( clear )
(C) Decision maker would have a clear and specific goal to be achieved
(D) Know all possible alternatives and consequences

140 A high degree of …………….on an assembly line can lead to boredom and C
alienation, this is unlikely to be true of specialization on a building project, such
as the construction of Biosphere II in Oracle, Arizona.
(A) Job Design
(B) Job analysis
(C) Job specialization
(D) Job Specification
141 A person has this style if they have a low tolerance for ambiguity and are A
efficient, rational, and logical in their way of thinking.
(A) Directive style
(B) Analytic style
(C) Conceptual style
(D) Behavioral style
142 They are careful decision makers that like to be well informed and thoroughly B
assess their options. They usually have the ability to adapt or cope with unique
and challenging situations.
(A) Directive style
(B) Analytic style
143 They are long-term oriented and are usually capable of formulating creative C
solutions to problems. Individuals who tend to be very broad in outlook, to look
at many alternatives, and to focus on the long run and often look for creative
solutions.
(A) Directive style
(B) Analytic style
144 Work well with others, are open to suggestions, and are concerned about the D
achievements of their team. They generally try to avoid conflict and place
importance on their acceptance by others.
(A) Directive style
(B) Analytic style
145 The …………..attempts to reconcile these two earlier approaches and the work A
of the formal and the informal writers.
(A) Systems approach
(B) Environmental approach
(C) Ethical approach
(D) Quantitative approach

146 ……………to decision-making produces the best results when the problem is D
clearly defined, several alternatives exist, and decision outcomes are easily
measurable.
147 …………… issues become manageable when the societal decision making B
process is compared with the decision making of family.
148 …………… standard of business people apart from the demanding situation and C
competitive pressures.
149 ……………is a method of thinking that is outside of the box. According to It, it B
is a process available for humans to use when complexity is introduced into a
scenario or stimuli.
(A) Linear Thing
(B) Nonlinear thinking
(C) Style profile
(D) Non verbal thinking
150 ……………. is thinking inside the box, it is straight forward, cut and dry. It is a A
“follow the recipe” method of thinking that takes information at face value and
thinks directly on a task without ever trying to read into the information to find
hidden.
(A) Linear Thing
(B) Nonlinear thinking
(C) Style profile
Non verbal thinking
151 Decision-Making Errors and Biases includes which of the below…. A
(A) Hindsight
(B) Defensive -serving
(C) Total Costs
(D) Simple
152 Decision-Making Errors and Biases includes which of the below . D
(A) Posting Effect
(B) Selective Perception
(C) Not Confirmation
(D) Framing

153 …………..comparing the additional revenue and the additional cost arising from A
increasing output.
(A) Marginal analysis
(B) Breakeven point
(C) Cost Analysis
(D) Performance analysis
154 Recognizing and overcoming factors that stand critically in the way of a goal, the C
best alternative course of action can be selected stands for…………
(A) Principle of the Option factor
(B) Principle of the Resource factor
(C) Principle of the limiting factor
(D) Principle of the Political factor
155 The use of mostly short-term programs that facilitate the learning process to help B
managers do their jobs better could be best explain by ………..
(A) Soft skill training
(B) Managerial training
(C) Technical training
(D) Personal training
156 The relationship in which a superior exercises direct supervision over a B
subordinate could be explain by the term
(A) Square authority
(B) Line authority
(C) Staff authority
(D) Circle authority
157 The clearer the line of authority, the clearer will be the responsibility for decision A
making and the more effective will be organizational communication can be well
explain by the term
(A) Scalar principle
(B) Actual principle
(C) Regard principle
(D) Performance principle

School of Distance Education
Management Theory and Practices
QUESTION BANK
1. Scientific Management were more concerned with the problems at the

...................................... levels
a) Higher levels b) Middle
c) Operating d) None
2. Father of Modern Management theory is………………

a) Henry Fayol b) F.W.Taylor
c) Henry Gantt d) None
3. ………….suggests that each communication going up or coming down must

flow through each position in the line ofauthority
a) Communication Pattern b) Horizontal communications
c) Scalar chain d) None of these
4. Management can be considered as………………..

a) Exact science b) Inexactscience
c) Psuedo science d) B or C
5. …………………..is that phase of business enterprise that concerns itself with

ManagementTheory &Practice Page 1
the overall determination of institutional objectives and the policies necessary

to be followed in achieving thoseobjectives.
a) Management b) administration
c) Both of these d) None
6.……..has defined the basic problem of managing as the art of “knowing exactly what
you want men to do and then see that they do it in the best and cheapest way”
a) Henry Fayol b) F.W. Taylor
c) Mary parker Follet d) None of these
7. According to functional foremanship, the speed boss, Inspector, foreman and

gang boss are entrusted with the........................... aspect of work.
a) Planning b) Organizing
c) Doing d) None of these
8. …..is undertaken to find out the one best way of doing the thing
a) Job Analysis b) Merit rating
c) Job enrichment d) None
9. The principle of Unity of command is contrary to Taylors……………………..

a) Rule of thumb b) Unity of Direction
c) Functional foremanship d) None of these
10. According to …………..principle, each group of activities with the same

objective must have one head and oneplan
a) Unity of Direction b) Unity of command
c) Eitherof these d) None
11. Everything which goes to increase the importance of subordinates role
is……………….
a) Decentralization b) Centralization
c) Either A or B d) None
12. The Book “ Functions of Executive” was written by …………………..

a) P.F. Drucker b) Chester Barnard
c) Herbert Simon d) None
13. school of Management recognizes the existence of a centralized

body of knowledge for the Management.

a) System approach b) Empirical

c) Contingency d) Operational
14. …………..school of thought has developed on the idea that there is no single
best method to find solutions to Managerial problems
15. Koontz and O’Donnel are the advocates of ……………….approach to
management
16. According to ....................approach, management is a logical process and it can

be expressed in terms of mathematical symbols and relationships.
a) Empirical b) Management science
17. ……………….approach of management heavily concentrates on ‘People’

aspect of management.
a) Human relations b) System
c) Empirical d) Management science
18. ……………is the art of knowing exactly what you want men to do and then
seeing that how they do it in the best and cheapest way.
a) General management b) Scientific Management
c) Administration d) None
19. …………..is introduced to secure the benefits of division of labour or

specialization at the supervising level under scientific management
a) Operating management b) Functional foremanship
c) Either a or b d) None
20. ………………….helps to determine a fair days work and rest period to

complete it
a) Work study b) Timestudy
c) Motion study d) All of these
21. The main objective of ……………..study is to determine and eliminate

unnecessary and wasteful movements

a) Work study b) Timestudy
c) Motion study d) All of these
22. The author of the famous book “General and Industrial Management”
is……………………
c) Henry Gantt d) None
23. According to Fayol , the principles of Management are……………….
a) Rigid b) Flexible
c) A or b d) None
24. ……………..is the right of a superior to give orders to subordinates, take

decisions etc.
a) Authority b) Responsibility
c) Accountability d) None
25. Authority and responsibility are.................... to each other

a) Supplementary b) Complementary
c) Contradictory d) None
26. ………….principle states that an employee should receive orders form one
superior only
a) Unity of direction b) Unity of command
c) Esprit de corps d) None
27. According to................ principle, there should always exist one head and one
plan for a group of activities having the same objective
a) Unity of direction b) Unity of command

c) Esprit de corps d) None
28. …………..is highly suitable for large organizations having large number of
managerial personnel at different levels.
a) Centralization b) Decentralization
c) Departmentalization d) All of these
29. is defined as a chain of superiors ranging from the ultimate authority to the lowest
ranks

a) Structure b) Scalar chain

c) Both of these d) None of these
30. The book “Creative Experience” was written by ………………..
c) Mary parker Follet d) None of these
31. The book “functions of Executive” was written by……………….

c) MaryParker Follet d) Chester I Barnard
32. …………….is the character of communication, in a formal organization by
virtue of which it is accepted by a member of the organization as governing
the action he contributes
a) Responsibility b) Authority
c) Accountability d) Power
33. …………..developed the “Need Hierarchy Theory” to explain human

behaviour within an organization.
a) A.H.Maslow b) Douglas Mc. Gregor
c) Herzberg d) Rensis Likert
34. …..has given the concept of administrative man as the model for decision making
a) A.H.Maslow b) Douglas Mc. Gregor
c) Herzberg d) Herbert Simon
35. …….developed the concept of Management by Objectives

a) A.H.Maslow b) Herbert Simon
c) Herzberg d) Peter F. Drucker
36. Management according to.............Approach is the study of practical experience

of Managers and hence such a study would provide a better understanding to
the effective way of Managing an enterprise
37 ……….approach is based on the idea that an organization is studied in detail
and decisions are taken for each sub system, which in turn is in conformity
with the total system.

c) Contingency d) System
38…….school of thought has developed on the idea that there is no single best
method to find solutions to managerial problems
39 Koontz and O’Donnel are advocates of ................ approach to management

b) Empirical b) Management science
40 The introduction of computers in decision making process contributed a lot in

popularizing the .................. approach in management
c) Empirical b) Management science
c) System d) Operational
41………….approach attempts to understand managerial problems and to provide

suitable solutions by the application of scientific methodology
d) Empirical b) Management science
42 The advocates of................. approach view management as the direction of the
activities of a group of people towards the accomplishment of common
objectives
e) Empirical b) Management science
c) Contingency d) Human behavior
43. According to ………………..Core competency must be the central subject of
Corporate strategy
c) C.K. Prahlad d) Peter F. Drucker
44. The book “Practice of Management was written by …………

45. ……….believed that leaders are not born but also developed through proper
training in human behavior.
a) Mary Parker Follet b) F.W.Taylor
46. The concept of Job enrichment is a contribution by……..

a) Frederick Herzberg b) F.W.Taylor
47. …..is considered as the primary function of management?

a) Organizing b) Planning
c ) Staffing d) Controlling
48. MBO stands for?

a) Management of Business Objectives
b) Management By Objectives
c ) Managing Business Operations
d) None of these
49. is the process of selecting one best alternatives from different alternatives.
a) Planning b) Organizing
c) Decision making d) Forecasting
50. …..is the process of identifying and grouping of work to beperformed

a) Organizing b) Staffing
c) Division of labour d) Planning
51. Operational guides to action is knownas

a) Policies b) `Procedures
c) Plan d) None of these
52. is a sequence of activities to be undertaken for implementing the

policies and achieving the objectives of an enterprise.
a) Procedures b) Programme
c) Rule d) Plans
53. is an organizational structure which clearly defines duties,

responsibilities, and authority.
a) Formal b) Informal
c ) Natural d) None of these
54. organisation arises voluntarily or due to social interaction ofpeople
c ) Line organization d) All of these

55. Authority is the right to give-------- and the power to exact obedience
a) Information b) Orders
c) Money d) None of these
56. A superior cannot delegate

c) Duty d) None of these
57. If the orders, instructions or directions are delegated to a particular person, then it
is known as
a) General delegation b) Specific delegation
c) Written delegation d) Informal delegation
58. ……….are certain assumptions about the future on the basis of which the plan will
be formulated
a) Programmes b) Planning premises
c) Planning issues d) Procudures
59. Authority flows from

a) Top to Bottom b) Bottom to top
c) Horizontally d) All of these
60. ………..refers to the maximum number of subordinates a superior can effectively

manage?
a) Scalar chain b) Unity of direction
c) Accountability d) Span of control
61. ……….is the obligation of a subordinate to perform the duty assigned by his
superior
c) Division of labour d) Accountability
62. Military type of organization is alsocalled

a) Informal organization b) Line organization
c) Line & Staff d) Functional
63. Concentration of authority of decision making at top levels of management is
known as
a) Concentration b) Decentralization

c) Centralization d) None of these
64. Decentralization is
a) Compulsory b) Optional
c) None of these
65. …….is a detailed and systematic study of jobs to know the nature and characteristics.
a) Man power planning b) Job analysis
c) Staffing d) All of these
66. ……………is a statement showing the minimum acceptable qualities ofthe persons
to be placed on a Job.
a) Job analysis b) Job description
c) Job specifications d) Staffing
67. The result of job analysis written in a statement is known as

a) Job description b) Job specifications
c) Man power planning d) None of these
68. …….is the process of searching for prospective employees and stimulating them to
apply for the Job.
a) Selection b) Training
c) Recruitment d) Induction
69. …………is considered as a negative function ofmanagement.

a) Selection b) Recruitment
c) Training d) Placement
70. is the process of comparing actual performance with the standard and
taking corrective Action.
a) Controlling (b) Management
c) Planning d) Co-ordination
75 --------- a process of integrating the interdepartmental activities as unified

action towards the Achievement of the common goal of the organization.
a) Controlling b) Directing
c) Co-ordination d) All of these
76. ……..refers to co-ordination between activities of a manager andhis subordinates.

a) Vertical co-ordination b) Horizontal co-ordinaiton

c) Diagonal co-ordination d) None
77. ------------ aims at visualizing and identifying deviation before they actually
occur.
a) Predictive control b) Concurrent control
c) Operational Control d) All of these
78. In ---------type of organization, workers receive instructions from various

specialists.
a) Line b) Functional
c) Informal d) None
79. If duties and authority are shown in the organizational structure of the
enterprise, then it is called
a) Informal delegation b) Formal delegation
c) Written delegation d) None of these
80. ……….is an example of internal source ofrecruitment

a) Advertisement b) Trade unions
c) Employment exchange d) Promotion
81. …..is the process of inducting an employee into the social set up of work.
a) Placement b) Induction
c) Absorption d) None of these
82. -------- is the act of increasing the knowledge and skills of an employee for
doing a job.
a) Training b) Induction
c) Placement d) Orientation
83. …………means issuing orders, instructions and commands.

a) Directing b) Unity of command
c) Authority d) All of these
84. is a statement of expected results expressed in quantitative terms for a period

a) Plan b) Budget
c) Schedule d) None of these

85. ------------ means an individual should receive orders and instructions from
only one superior
a) Unity of command b) Span of control
c) Scalar chain d) None of these
86. is the activity of influencing people to strive willingly for group of

objectives.
a) Motivation b) Leadership
c) Communication d) None of these
87. A leader should have …………..

a) Technical Knowledge b) Empathy
c) Initiative d) All of these
88. Autocratic style of leadership is also known as ………….

a) Authoritarian b) Participative
c) Free rein d) None of these
89. ……..is the act of recreating a core business process with the goal of improving product output,
quality, or reducing costs.
a) Planning b) CSR
c) Business process reengineering d) None of these
90. The term “Open-Book Management” (OBM) was coined by ………..

a) Henry Fayol b) Michael Hammer
c) Jack Stack d) None of these
91. Which are the factors influencing business ethics

a) Personal code of ethics b) Legislation
c) Government rules d) All of these
92. ……is a situation where a moral conflict arises.

a) Ethical issues b) conflicts
c) Demotivation d) None of these
93. …..is a problem in the decision making process between two possible options,
neither of which is absolutely acceptable from an ethical perspective.

a) Negative Motivation b) Ethical Dilemma

c) Decentralization of authority d) One way communication
94. …..is how companies manage their business processes to produce an overall Formatted: Font: Times New Roman, 12 pt, Not Bold, Font
color: Auto
positive impact on society.
a) Management b) BPR
c) MBO d) CSR Formatted: Font: Times New Roman, 12 pt, Not Bold, Font
color: Auto
95. Leadership is also referred as fatherly leadership

a) Autocratic b) Participative
c) Free rein d) Paternalistic
96. ……….Means a process of stimulating people to action to accomplish

desired goals
a) Motivation b) Leadership
c) Communication d) None of these
97. ……Communication is also known as Grape wine

c) Lateral d) None of these
98. The word MBO stands for……………..

a) Management by Organisation b) Management by Operation
c) Management by Objectives d) None of these
99. developed MBO
a) Henry Fayol b) Rensis Likert
c) Michael Porter d) Peter F Drucker
100. MBO gives emphasis on …………….

a) Top Management b). Middle Management
c) Objectives d) Lower Management
101. MBO establishes a …………………

a) Community of interest b) Centralized organization
c) Rigid organisation structure d) All of these

102. KRA in MBO stands for …………….

a) Kerala Rural Academy b) Key Result Areas
c) Key Resources Availability d) None of these
103. The word ‘Ethics’ is derived from Greek word ……….
a) Ethios b) Ethikos
c) Ethoes d) None of these
104. Ethics is a ….….
a) Pure science b) Normative Science
c) Inexact Science d) None of these
105. Ethics means ……….
a) Character b) Manner
c) Custom d) All of these
106. ………deals with the right actions of individuals

a) Sincerity b) Rules
c) Ethics d) All of these
107. Ethics is a ……..

a) Social science b) Science of conduct
c) Normative Science d) All of these
108. The word ‘moral’ is derived from the Latin word ……….
a) Moralis b) Morilitic
c) Monatic d) None of these
109. Human nature is ………….

a) Learned b) Programmed
c) Inherited d) All of these
.
110. ….. is a process designed to focus on customer expectations, preventing problems, building
commitment to quality amongst all managers and staffs, and promoting open and transparent
decision making.
a) Planning
b) TQM
c) Marketing
d) None of the above
111. The word “quality” suggests ……in every aspect of the organization
a) Goodness b) Plan
c) Excellence d) none of this

112. Which is not a pillar of TQM
a) Product b) Process
c) System d) Action
113. Which is/are the benefits of TQM

a) Improvement in product design b) Reduction in operating costs
c) Reduction in field service costs d) all the above
114. ….is an approach to creating continuous improvement based on the idea that small, ongoing positive
changes
a) TQM b) BPR
c) Kaizen d) Lean Management
115. ..…….is an approach to managing an organization that supports the concept of continuous
improvement, a long-term approach to work that systematically seeks to achieve small, incremental
changes in processes in order to improve efficiency and quality.
a) TQM b) BPR
c) Kaizen d) Lean Management
116. The term ‘value’ is derived from the French word ……………
a) Valoir b) Valas
c) Velois d) None of these
117. ……represent an individual’s highest priorities and deeply held driving forces.
a) Values b) Principles
c) Culture d) Ethics
118. A set of charecteristics that sets one group of people apart from another is
called as …………
a) Culture b) Values
c) Ethics d) None of these
119. ….. Lean management focuses on

a) Defining value from the standpoint of the end customer
b) Eliminating all waste in the business processes
c) Continuously improving all work processes, purposes and people
d) All of the above
120. Indian ethos is the outcome of .............. way of life

a) Budha b) Hindu

c) Christian d) Muslim
121. IEM stands for ……………

a) Indian Economic Management
b) Institute for Education in Management
c) Indian Ethos in Management
d) International Environmental Management
122. The ‘guna’ of dark force is ………….
a) Raja Guna b) Satva Guna
c) Tams Guna c) None of these
123. Holism means ………….

a) Oneness b) Divinity
c) Materiality d) All of these
124. Indian model of management is …………..

a) Value driven holistioc b) Ratopnal holistic
c) Hybrid d) Noneof these
125. Fundamental theories of Indian Model include…………….

a) Purushartha Theory b) Panchakosas Theory
c) Theory of Gunas d) All of these
126. ……refers to certain norms governing the conduct ofworkers involved in a work
situation
a) Team Work b) Work Ethos
c) Work Group d) Work Management
127. …..seeks to determine normsand values

a) Culture b) Normative science
c) Value d) None of these.
128. ……is primarily concerned with the relationship of businessgoals and techniques to
specifically human ends
a) Business ethics b) Code of conduct
c) Allof these d) None
129. ……are the principles, which govern and guide business peopleto perform business
functions
a) Business ethics b) Code of conduct

c) All of these d) None
130. ….is the guiding principle for decision making in an economics based view of
management
a) Profit maximization b) Wealth Maximisation
c) Value maximization d) None
131. …………….is a process that allows people to make decisions based on their
deeper values which will be economically, socially and environmentally
sound.
a) Holistic approach b) Ethics management
c) Code of conduct d) None of these
132. A ……………..is a written document, inspirational in contents and specify

clearly what is acceptable or unacceptable behavior at workplace and
beyond, when the employees represent their organizations outside.
a) Code of conduct b) Business Ethics
c) Allof these d) None of these
133. ………specifies methods for reporting violations, disciplinary actionfor violations

and the structure of the due process to be followed
a) Business Ethics b) Code of ethics
134. ……is a set of values, beliefs, goals, norms and ways of solving problems by the
members of the organization.
a) Corporate culture b) Organizational culture
135. Which among the following are advantages of managing business ethics in the
workplace?
a) Cultivate strong team work and productivity
b) Avoid criminal acts
c) Lower fines
d) All of these
136. A ……………..is a buzz word to employees to observe ethical norms and

forms the basis for rules ofconduct.
a) Code of ethics b) Business Ethics

137. ……….would be charged with implementing and administering an ethical

management programme.
a) Top management b) Ethics management committee
c) Middle management d) None of these
138. When new employees are to be recruited,………….training should be

arranged for them.
a) Apprenticeship b) Induction
c) Vestibule d) None of these
139 ……………….is a new framework for decisions making on all levels that is
based on resource management of the whole
a) Holistic Management b) Ethics management
c) Code of conduct d) None of these
140……….term includes employees, customers, suppliers and the wider

community
a) Stock holder b) Stake holder
141. Ethics in workplaces can be managed through the use of

b) Codes of ethics b) Codes of conduct,
c) Roles of ethics d) All of these
142. The first step in holistic process of management is …………..

c) Define the whole under management
d) Develop a written goal statement
e) Assess current situation
f) Brainstorming to achieve goal.

ANSWER KEY
1) c 2) a 3) c 4) d 5) b 6) b 7) c 8) a
9) c 10) a 11) a 12) b 13) d 14) c 15) d 16) b
17) a 18) b 19) b 20) a 21) c 22) a 23) b 24) a
25) b 26) b 27) a 28) b 29) b 30) c 31) d 32) b
33) a 34) c 35) b 36) d
37) d 38) c 39) d 40) c 41) b 42) D 43) c 44) d
45) a 46) a 47) a 48) b 49) c 50) A 51) b 52) b
53) a 54) b 55) b 56) b 57) b 58) B 59) a 60) d
61) b 62) b 63) c 64) b 65) b 66) C 67) a 68) c
69) a 70) a 71) c 72) a 73) a 74) B 75) b 76) d
77) b 78) a 79) a 80) b 81) a 82) B 83) d 84) a
85) a 86) b 87) d 88) a 89) c 90)c 91) d
92) a 93) b 94) d 95) d 96) a 97) b 98) c 99) d
100) c
101) a 102) b 103) b 104) b 105) d 106) c 107) d
108) a 109) c 110) b 111) c 112) d 113) d 114) c 115) d
116) a 117) a 118) a 119) d 120) b 121) c 122) c 123) a
124) a 125) d 126) b 127) b 128) a 129) a 130) a 131) a
132) a 133) b 134) a 135) d 136) a 137) b 138) b 139) a
140) b 141) d 142) a

BUSINESS MANAGEMENT
1: Consider the following statements:

Planning involves
1. Forecasting
2. Choice among alternative courses of action.
3. Wishful thinking
4. Decision only by production manager
Of these statements:
A. 1, 2, 3 and 4 are correct
B. 1, 3 and 4 are correct
C. 1 and 2 are correct
D.2 and 3 are correct
2: Overall and strategic planning is done by the

A. Top management
B. Middle level management
C. Supervisory level management
D.All of the above
3: If a general manager asks the sales manager to recruit some salesman

on his behalf, it is an instance of
A. Division of authority
B. Decentralisation of authority
C. Delegation of authority
D.Delegation of responsibility
4: Consider the following basic steps involved in the process of control:

1. Identifying the strategic control points
2. Establishment of the standards
3. Measuring performance against standards
4. Correcting deviations from the standards
A. 1,4,3,2
B. 1,2,3,4
C. 2,1,3,4
D.2,3,1,4
5: An organisation structure is effective if it enables individuals to

contribute to the objectives of the enterprise. This is known as
A. Scalar principle
B. Principle of functional definition
C. Principle of unity of objectives
D.None of the above
6: While delegating, a superior delegates

A. Only authority
B. Authority and responsibility
C. Authority, responsibility and accountability
D.Authority and responsibility but not accountability
7:
Match the following
List I List II
(a) Fayol 1. Grapevine
(b) Simon 2. Cybernetics
(c) Shannon 3. Gang plank
(d) Weiner 4. Noise
A. a-3, b-4, c-2, d-1
B. a-3, b-2, c-4, d-1
C. a-3, b-1, c-4, d-2
D.a-3,b-4,c-1,d-2
8: Directing function of management implies

1. Planning 2. Staffing
3. Leadership 4. Motivation
Choose the correct answer using the codes given below:

A. 1 and 2
B. 3 and 4
C. 2 and 4
D.2,3 and 4
9: Whlch of the following is true with respect to planning function?

A. To make a blue print of ideas and work
B. To tell the work allocation to all
C. Monitoring whether the things allocated are done properly

D.None of the above
10: Which of the following pairs are correctly matched ?

1. 3D Theory V.J. Peddin
2. Life Cycle Theory Paul Hersey and Blandard
3. Continuum Approval Tannenbaum and Schmidt
4. Managerial Grid Mountain & Black
Select the correct answer using the codes given below?
A. 1, 2, 3 and 4
B. 3 and 4
C. 2 and 4
D.1 and 2
11: Each subordinate should have only one superior whose command he
has to obey. This is known as
A. Division of work
B. Exception principle
C. Unity of Command principle
D.Authority - responsibility principle
12: In line and staff organisation the staff performs the function of
A. Management
B. Advising the management
C. Assigning responsibility
D.None of the above
13: Planning function is mainly performed at

A. Top management level
B. Middle management level
C. Lower management level
D.None of the above
14: Which one of the following may not necessarily be an advantage of

coordination?
A. Effective supervision
B. Unity of direction
C. Creative force
D.Summarisation of all management functions
15: Leadership is a function of all the following factors except

A. Work group
B. Product or service
C. Leader
D.Situation
16: Which of the following is not true in respect of planning?

A. Planning is an intellectual activity
B. Planning function is not performed by the top management

C. Planning is related to objectives
D.Planning is forward-looking
17: Which one of the following orders indicates the correct logical order
of managerial functions?
A. Organising, Planning, Directing, Staffing, Coordination and Control
B. Planning, Organising, Staffing,Directing, Control and Coordination
C. Planning, Directing, Organising, Staffing, Control and Coordination
D.Organising, Planning, Staffing,Directing, Control and Coordination
18: Which of the following skills is equally important at all levels of

management?
A. Technical skill
B. Human relation skill
C. Conceptual skill
D.All of the above
19: Consider the following statements:

1. Decentralisation and delegation are closely interrelated
2. Delegation and decentralisation both are desirable
3. Decentralisation is not suitable for large organisation
4. Delegation is not possible in the case of small organisations
Of these statements:
A. 1 and 2 are correct
B. 2 and 3 are correct
C. 1 and 4 are correct
D.1,3 and 4 are correct
20: Consider the following office equipments used in various offices:

1. Fax
3. Dictaphone
2. Typewriter
4. Letter opener
The correct order in which they are used is
A. 1 2 3 4
B. 4 3 2 1
C. 2 4 3 1
D.3 2 4 1
21: Which one of the following formulae is used to calculate "Cross
Relationship" under span of control?
A. n (n - 1)
B. n (2n/2 - 1)
C. n (2n/2 + n -1)
D.None of the above
22: Which of the following is not an advantage of MBO?

A. Success without planning
B. Employee commitment
C. Better appraisal
D.Self control
23: Motivational process and not the motivators as such is associated

with the
A. Need hierarchy theory
B. Two-factor theory
C. ERG Theory
D.Expectancy theory
24: Which one of the following is the oldest form of organization?

A. Functional organization
B. Staff organization
C. Line and Staff organization
D.Departmentation
25: The potential disadvantage of MBO is

A. Its inability to control progress of work and achievement of results
B. Its over-emphasis on production and productivity
C. The additional commitment to the organisation
D.The absence of short-term and long-term planning
26: Delegation of authority is linked to

A. Managerial planning
B. Management coordination
C. Management control
D.Scientific management
27: Organisation Theory deals with

A. Forms of business organisation
B. Structure of an organisation
C. Industrial relations
D.Incentives and wage policy
28: Consider the following steps:

1. Analysis of variances
2. Initiating corrective action
3. Measurement of Actual performance
4. Establishment of standards
What is the sequence of steps?
A. 1,2,3,4
B. 2,3,1,4
C. 3,1,2,4
D.4,3,1,2
29: The following steps are involved in managing by objectives

1. Preliminary setting of objectives at the top
2. Setting subordinates objectives
3. Tying resources with the goals
4. Clarifying the organisational roles
The correct sequence of these steps is
A. 1,2,3,4
B. 1,2,4,3
C. 1,3,2,4
D.1,4,2,3
30: The main advantage of functional organisation is

A. Specialisation
B. Simplicity
C. Expert advice
D.Experience
31: In a Functional organization

A. There are no advisers, the executive alone having the authority and
competence
B. There are specialist advisers having no authority
C. The entire organization is divided into functions with specific role for
specialists.
D.The organization is divided into functions with specialists having
authority.
32: TQM's major emphasis is on

A. Company profitability
B. Product quality
C. Customer delight
D.Employee training
33: Which of the following functions is known as the essence of

management?
A. Planning
B. Organising
C. Co-ordinating
D.Control
34: The following steps are involved in the process of organising

1. Forming supportive objectives
2. Delegating to the head of each group the authority necessary to
perform the activities
3. Establishing enterprise objectives
4. Identifying and classifying activities
The correct sequence of steps is :
A. 3,1,2,4
B. 3,1,4,2
C. 1,3,4,2
D.1,3,2,4
35: In line and staff organisation, the authority lies in

A. Line
B. Staff
C. Both line and staff
D.None of the above
36: 'Matrix organisation' refers to a term of

A. Organisation where authority and responsibility coexist
B. Organisation in which two or more basic types of departmentation are
combined.
C. Mathematical arrangement of events in columns and rows.
D.None of the above
37: Decentralisation of an organization is commanded on account of

which of the following advantages?
1. Reduced burden on top executives
2. Executive development
3. Improvement of morale
4. Solves problems of coordination
Select the correct answer from the codes given below and mark your
answer accordingly.
A. 2 and 3
B. 1,2, and 4
C. 1,2 and 3
D.3 and 4
38: In Taylor's functional organisation, gang boss

A. lnspects the quality of work done
B. Issues instructions to workers
C. Sets up tools and machines for work
D.Compiles cost of production
39: MBO is a technique which requires that the objectives of the

enterprise
A. Be written and defined in broad terms
B. Lay down the time period for achieving the desired results
C. Include a plan of action for achieving the desired result
D.Be defined in terms of measurable results
40: When management pays attention to more important areas and when
the day to day routine problems are looked after by lower level
management, it is known as
A. Management by objectives
B. Management by Exception
C. Participative Management
D.Critical path method
41: Staffing includes

1. Training 2. Appraisal
3. Placement 4. Directing
Choose the correct answer using the codes given below:
A. 1 and 3
B. 2 and 3
C. 1,2 and 3
D.1,2,3 and 4
42: Repeated use plans or standing plans include

A. Objectives and policies
B. Procedures and methods
C. Rules
D.All of the above
43: Span of controls means that

A. An organization consists of various departments
B. Each person's authority is clearly defined.
C. Every subordinate has one superior
D.A manager can supervise only a limited number of subordinates
44: If the span of control is narrow, a number of managers would be

required in each unit of the organization and there would be many
managerial levels or layers, such an organizational structure is referred to
as
A. Flat structure
B. Tall structure
C. Matrix structure
D.Project structure
45: The famous book 'General and Industrial Management' was written by
A. Oliver Sheldon
B. Henri Fayol
C. Elton Mayo
D.Maslow
46: Consider the following elements:

1. Indicators
2. Objectives
3. Controls
4. Key Result Areas
5. Roles and Missions
6. Action plans
Their correct sequence in management by objectives and results is
A. 5 4 2 1 3 6
B. 4 5 2 1 3 6
C. 5 4 1 2 6 3
D.4 5 1 2 6 3
47: Who wrote Management & Moral?

A. Taylor
B. Riggs
C. Dimock
D.Roethliberger
48: The following steps are involved in the process of organizing

1. Forming supportive objectives
2. Delegating to the head of each group the authority
3. Necessary to perform the activities
4. Establishing enterprise objectives
The correct sequence of these steps is
A. 3,1,2,4
B. 4,1,2,3
C. 1,3,4,2
D.1,3,2,4
49: According to the principle of "Span of control" there is
A. A tendency of overload supervisors with too much of work
B. A limit to the number of subordinates a supervisor can effectively
supervise.
C. No limit to the number of subordinates a supervisor can supervise.
D.A limit to delegation of authority to the subordinate.
50: Which one of the following statement is correct?

A. Planning and controlling are essentially one and the same.
B. Controlling is a part of the planning process.
C. Controlling is a substitute for planning
D.A control process is meaningless without pre-set goals.

51: In the process of controlling office management certain steps are
normally taken.
These include
1. Analysing the actual performance.
2. Finding out the reasons for discrepancies.
3. Evaluating the performance.
4. Establishing the standards of work performance.
The correct sequence in which these steps are usually taken is
A. 4,1,2,3
B. 1,4,2,3
C. 1,4,3,2
D.4,1,3,2
52: What is the correct sequence of the following functions of a manager

in an organisation?
1. Motivation 2. Controlling
3. Organising 4. Planning
Select the correct answer using the codes given below.
A. 4,3,2,1
B. 4,3,1,2
C. 3,4,2,1
D.3,4,1,2
MULTIPLE CHOICE ANSWERS

1.C 12.B 23.D 34.B 45.B
2.A 13.A 24.B 35.A 46.A
3.C 14.A 25.B 36.C 47.D
4.B 15.B 26.C 37.C 48.B
5.C 16.B 27.B 38.C 49.B
6.A 17.B 28.D 39.D 50.D
7.C 18.B 29.B 40.B 51.D
8.D 19.A 30.A 41.C 52.B
9.A 20.B 31.D 42.D
10.A 21.C 32.B 43.D
11.C 22.A 33.C 44.B
Which of the following is not the function of management
A. staffing
B. planning
C. co-operation
D. controlling
Answer : C
Name the scientist who put forward the theory of 'Scientific Management'.
A. Frank Gilbreth
B. Abraham Maslow
C. F.W.Taylor
D. Henry Fayol
Answer : C
The __ management function involves identifying & arranging the work and resources
needed to achieve the goals that have been set.
A. controlling
B. organizing
C. planning
D. staffing
Answer : B
Establishing standards,comparing actual results with standards and taking corrective. actions
are the steps included in the process of
A. controlling
B. directing
C. planning
D. organizing
Answer : A
Decision taken by supervisor could be

A. change in work schedule or rescheduling
B. Decision regarding rejection of raw material or finished products
C. Increase or decrease in production depending on current situations.
D. All of the above
Answer : D
The process by which actual performance of subordinates is guided towords common goal of
the enterprise is call ........
A. Organisation
B. Unity of command
C. Directing
D. Planning
Answer : C
Measuring actual performance is the __________________ steps involved in the process of
controlling.
A. first
B. second
C. third
D. last
Answer : C
Organizing includes
A. Defining organizational goals
B. Motivating organisatinal members
C. Hiring organizational members
D. Determining who does what tasks
Answer : D
Identify the subfunction which is not included in Directing function.

A. Leadership
B. Communication
C. Supervision
D. Co-ordination
Answer : D
Planning involves the effort to direct and lead people to accomplish the planned work of the
organization.
A. True
B. False
Answer : B
_____ Management is responsible for the image of the company.

A. Low
B. Middle
C. Top
D. Low and Middle
Answer : C
________ can be defined as the set of steps to do the particular activity or activities in
systematic manner.
A. Organizing
B. Planning
C. Directing
D. Motivating
Answer : B
_____ is the most basic and primary function of Management
A. Organizing
B. Purchasing
C. Directing
D. Planning
Answer : D
The ability of a supervisor to choose the correct course of action from the available
alternatives to achieve the desired aims and objectives of the business is termed as
A. Controlling
B. Supervising
C. Directiong
D. Decision Making
Answer : D
Supervisors who use __ management are more directive and controlling.

A. strategic
B. human
C. tactical
D. core
Answer : B
Planning may fail because of

A. Incomplete knowledge of work
B. Absence of data analysis
C. Unrealistic nature of plan
D. All of the Above
Answer : D
Which of the following is level of management

A. Operational Level
B. Strategical Level
C. Tacticle Level
D. All of the above
Answer : D
_________is recruitment of right people at right place in an organization.

A. Planning
B. Organizing
C. Staffing
D. Controlling
Answer : C
The _________ process transform plans in to reality.

A. Planning
B. organizing
C. directing
D. all of above
Answer : B
Out of the following which is not function of management

A. Planning
B. Controlling
C. Discipline
D. Directing
Answer : C
Which management function involves setting goals and objectives and creating specific plans
for completing them?
A) planning B) organizing C) controlling D) leading
Which management principle states that each individual should report to only one boss in
order to avoid conflict and/ or confusion?
A) division of command B) chain of command C) unity of direction D) unity of
command
The ability of a manager to interface and work effectively with individuals and groups is
descriptive of what type of managerial skill?
A) technical B) administrative C) interpersonal D) organizational
Which of the following is a feature of planning:-

(a) Focuses on achieving goals
(b) Pervasive
(c) Mental exercise
By comparing ______ with standards manager can know whether the goals are
achieved or not:-
(a) Risk
(b) Ideas
(c) Actual performance
(d) Costs
Planning provides direction is a

(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method
_______ guides for decision making :-

(a) Rule
(b) Policy
(c) Procedure
(d) Method
______ type of plan is not likely to be repeated in future:-

(a) Standing plan
(b) Programme
(c) Single use plan
(d) Method
Advertising of a product is a part of _________

(a) Strategy
(b) Rule
(c) Budget
(d) Method
The sub ordinates are given complete freedom in taking decisions is a part of
(a) Rule
(b) Stratergy
(c) Policy
(d) Procedure
_______ are detailed statements about a project which outlines the objectives, rules, etc.
(a) Budget
(b) Programme
(c) Single use plan
(d) Policy
______ forecasts the sales of different products in each area for particular month:-
(a) Sales budget
(b) Sales accounts
(c) Sales cost
What are the three interpersonal roles of managers?

a) Figurehead, leader and liaison
b) Spokesperson, leader, coordinator
c) Director, coordinator, disseminator
d) Communicator, organiser, spokesperson
Which 18th century writer produced a famous book called 'The Wealth of Nations'?
a) Frederick Taylor
b) Henry Mintzberg
c) Adam Smith
d) Dr Samuel Johnson
What characteristic is not a key feature of the 'open systems' model of management?
a) Morale
b) Innovation
c) Growth resource
d) Adaptation
Which one of these characteristics is most commonly associated with the 'rational goal' model
of management?
a) Worker welfare
b) Health and safety
c) Interpersonal relationships
d) Productivity
What is the guiding principle of scientific management?

a) Experimentation
b) Fluid working relationships
c) Freedom of association
d) One best way to do a job
What is Frank Gilbreth`s work most noted for?

a) Working conditions
b) Time and motion studies
c) Work psychology
d) Work as a social setting
Which one of the following is not a characteristic of a bureaucratic organisation?

a) Authority
b) Regulations
c) Command structure
d) Change
Which writer was concerned with the reaction of workers to key characteristics of
bureaucracies?
a) Merton
b) Weber
c) Gouldner
d) Mayo
Which feature does not form one of Fayol's 14 principles of management?

a) Esprit de corps
b) Initiative
c) Order
d) Individualism
The Hawthorn Studies are most associated with which writer?

a) Mary Parker Follett
b) Elton Mayo
c) Lillian Gilbreth
d) Frederick Taylor
As what are key factors that reflect the situation of an organisation referred to?
a) Administrations
b) Processes
c) Activities
d) Contingencies
Planning by a supervisor of a goods processing department to rearrange the location of

several pieces of equipment so that the new order can begin on time, three months from now,
would be an example of a/an
[A]Tactical plan
[B]Operational plan
[C]Tactical goal
[D]Operational goal
Which of the following statements is/are true about effectiveness and efficiency?
I. Effectiveness refers to the achievement of stated organizational objectives while efficiency
denotes the judicious use of resources to achieve organizational objectives.
II. Effectiveness means “doing things right” while efficiency means “doing the right things”.
III. Effectiveness is the foundation of success whereas efficiency is a minimum condition for
survival after success is achieved.
[A]Only (I) above
[B]Both (I) and (II) above
[C]Both (I) and (III) above
[D]Both (II) and (III) above
Which of the following is not an area of managerial decision-making to which the linear
programming technique can be applied?
[A]Product mix decisions
[B]Pricing decisions
[C]Determining optimal scale of operations
[D]Allocation of scarce resources
Three aspects – delegator’s, delegant’s and organizational – affect delegation. Which of the
following is/are factor(s) that affect delegation of authority from the organizational aspect?
I. Policy towards centralization or decentralization.
II. Availability of managerial personnel.
III. Type of control mechanisms.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]All (I), (II) and (III) above
Which of the following statements about objectives is/are true?

I. Objectives and planning programs are co-existential and co-relational.
II. Goals and plans are always linear.
III. A manager can effectively pursue only a few objectives.
IV. Objectives do not require deadlines for results to be accomplished.
[A]Only (I) above
[B]Only (II) above
[C]Both (I) and (III) above
[D]Both (II) and (IV) above
Which of the following statements is not true about planning?

[A]It focuses attention on objectives
[B]It provides a sense of direction
[C]It provides efficiency in operations
[D]It is an instinctive procedure and allows little scope for innovation and creativity
In strategic management, any organizational skills or resources that are exceptional or unique
are the organization’s
[A]Potential external opportunities
[B]Potential internal strengths
[C]Core competencies
[D]Bargaining Power
Which of the following is not a limitation of strategic planning?

[A]It is very expensive
[B]It does not yield obvious and immediate results
[C]It can be a lengthy and time-consuming process
[D]It encourages firms to adopt risky decisions
Which of the following is a limitation of Weber’s bureaucracy?

[A]It destroys individual creativity and the flexibility to respond to complex changes in
the environment
[B]It does not focus on management of an organization from a manager’s point of view
[C]It overlooks social needs of workers
[D]It overemphasizes economic and physical needs of workers
A large organization that has three levels of managers but each one has ten or more
subordinates reporting directly to that manager is organized to have which of the following
structures?
[A]Flat
[B]Wide
[C]Narrow
[D]Tall
Which of Henry Fayol’s principles of management states that ‘work specialization leads to
efficiency of operations’?
[A]Division of labor
[B]Stability
[C]Esprit de corps
[D]Discipline
In which step of the extended model of the planning process, does an organization focus on
its strengths and weaknesses, competition, and customers’ needs?
[A]Formulating supporting plans
[B]Comparing alternatives in the light of goals
[C]Considering planning premises
[D]Being aware of opportunity
Product divisions are created to concentrate on a single product or service or at least a

relatively homogenous set of products or services. Which of the following is not an
advantage of product division/departmentation?
[A]It facilitates the use of specialized capital, promotes coordination and allows optimum
utilization of personal skills and specialized knowledge
[B]It facilitates growth and diversity of products and services offered by the organization
[C]The performance of each product line can be compared and analyzed
[D]Managerial costs are lower because of the decentralization of various activities such
as personnel, production, sales and accounts
Sairah is associated with a committee that is given the responsibility to review and institute a
process for employees to use when requesting upgrades in computer equipment. Which type
of objectives would Sairah most likely develop?
[A]Intermediate-term objectives
[B]Long-term objectives
[C]Short-term objectives
[D]Organizational objectives
Management is a creative and ________ process.

(A) Continuous
(B) Technical
(C) Democratic
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
Which type of strategies do professional managers help organizations in chalking out?

(A) Multi-disciplinary
(B) Corporate
(C) Managerial
Management exists at the ___ level of the organization.

(A) Lower
(B) Middle
(C) Top
Limitation(s) of control is (are)

(A) external factors
(B) fixing of responsibility
(C) variation and its causes
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
___ is supposed to be immutable, unchanging and eternal.
(A) Policy
(B) Vision
(C) Mission
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
Costliness of the ________ is the overriding factor determining the extent of

decentralization.
(A) Decision
(B) Staffing
(C) Both (A) and (B)
The heart of administration is the ___ function.

(A) Directing
(B) Organizing
(C) Controlling
(D) Cooperating
Fedrick Winslow Taylor’s Mechanism of Scientific Management includes

(A) Scientific task setting
(B) planning the task
(C) standardization of tools and equipment
Direction is a ________ function performed by all the managers at all levels of the
organization.
(A) Managerial
(B) Organizational
Horizontal co-ordination takes place ___ .

(A) upwards
(B) downwards
(C) sideways
(D) any of the above
The internal environment factor(s) that influence management is (are)
(A) Labor
(B) Machines
(C) Place
What articulates the long-term goals of an enterprise?

(A) Policies
(B) Vision statement
When a manager monitors the work performance of workers in his department to determine if
the quality of their work is 'up to standard', this manager is engaging in which function?
a) Planning
b) Controlling
c) Organising
d) Leading
What is the first step in a control process?

a) Allocate resources
b) Choose key personnel for the task
c) Select a strategy
d) Set standards
What is the weakest form of control?

a) Pre-control
b) Simultaneous control
c) Post-control
d) Duel control
What is premise control based on?

a) Buildings
b) People
c) Resources
d) Assumptions
What are the main characteristics of an effective control system?

a) Flexibility, accuracy, timeliness and objectivity
b) Flexibility, measurability, timeliness and objectivity
c) Flexibility, accuracy, relevance and objectivity
d) Flexibility, accuracy, timeliness and relevance
An employee drug test is best described as an example of:

1. Feedback Control
2. Concurrent Control
3. Feedforward Control
4. Human Resources Policy
5. Company Policy
Concurrent Controls occur:

1. In real time
2. Anytime
3. During the planning stage
4. After a task is completed
5. When an evaluation has been made
Feedback occurs:
1. During an activity
2. Before an activity
3. During training
4. After an activity occurred
5. Anytime
Feedforward controls can be:

1. Too much work
2. Costly and time-consuming
3. Fun to do
4. A waste of time
5. Done after the activity
An example of Concurrent Controls is:

1. Comparing sales reports
2. Quality control
3. Drug testing
4. End of year financial reports
5. Interview questions
To what does authority refer?

a) The ability to organise people
b) The power to command and direct
c) The need for order
d) The right to change jobs
What one of these is not a recognised type of authority?

a) Executive
b) Functional
c) Line management
d) Supplier
From what does a chain of command extend?

a) Bottom to top
b) Top to bottom
c) Diagonally
d) Laterally
What is the optimal span of control?

a) 2
b) 5
c) 7
As what is ensuring that one individual does not carry the burden of a whole work task
referred to?
a) Work specialisation
b) Work design
c) Work schedule
d) Work shift
What is a Gantt chart a type of?

a) Work flow design
b) Work schedule design
c) Work rate design
d) Work output design
How do you call a system that allows workers to work part of the week from home?
a) Piece time
b) Part-time
c) Job sharing
d) Telecommuting
What work arrangement is referred to as Flexitime?

a) Workers decide if they want to turn up for work.
b) They only work weekends.
c) They only work alternate weeks.
d) They choose the start and finish time within set parameters.
__________ is the process of using the resources and personnel of an

organization in an orderly way to achieve the objectives and long-term
goals of the organization.
• Planning
• Organizing
• Leading
• Controlling
A ______ organizational structure is the simplest form and has clear lines of
authority and ease of decision making.
• Horizontal
• Line
• Vertical
• Staff
_________ is the process of getting results accomplished through others.

• Ordering
• Mandating
• Delegating
• Working
What is the term used to define the number of subordinates directly controlled by a manager?
• Division management
• Departmentation
• Investment span
• Span of management
___________shows the management structure of an organization.

• Hierarchy
• Decision Tree
• Incremental Model
• Satisfying model
1. A decision for repetitive or routine problems for which the responses have been already
been decided and been known to the person who will make the decision is called:
a. programmed.
b. non programmed.
c. strategic.
d. professional.
2. Non programmed decisions are most likely to be made by:

a. middle management.
b. lower management.
c. top management.
d. supervisory management.
3. A decision made before the occurrence of an external or internal change is called a

_________ decision.
a. reactive.
b. proactive.
c. intuitive.
d. systematic.
4. A decision based primarily on an almost unconscious reliance on the decision maker's

experience without a conscious rational analysis having been made is called:
a. systematic.
b. programmed.
c. non programmed.
d. intuitive.
5. ____________ decision making is an organized, exacting, data-driven process.

a. systematic.
b. programmed.
c. non programmed.
d. intuitive.
6. The first step in decision making is to:

a. establish priorities.
b. establish specific goals and objectives.
c. identify and define the problem.
d. determine courses of the problem.
7. Problems are usually of the following type(s):

a. crisis problems.
b. routine problems.
c. problems of failing to take advantage of opportunities.
d. all of the above.
8. _____________ refers to the seriousness of a problem's effects.

a. urgency.
b. impact.
c. growth tendency.
d. none of the above.
9. The concept that a manager's freedom to make totally rational decisions is restricted by
internal and external environmental factors and by the manager's own characteristics and
decision-making ability is called:
a. bounded rationality.
b. values.
c. objective rationality.
d. A & B.
10. Several studies have examined the effect of selected personality variables on the decision
making process. These studies generally have focused on _____________ variables.
a. personality.
b. situational.
c. interactional.
11. A process in which a group of individuals generate and state ideas, but in which the rules
prohibit questioning, evaluating, or rejecting any ideas, even if they seem ridiculous is called:
a. delphi technique.
b. brainstorming.
c. nominal group technique.
d. bounded rationality.
12. A process for arriving at an evaluation of decisions, in which selected individuals are
asked to respond individually to key questions about a problem, then are provided with a
summary of the responses, all members have given and invited to respond again is called:
b. brainstorming.
13. Which of the following is not an attribute of useful information?

a. accessible.
b. timely.
c. relevant.
14. An employee in a company is working out a schedule to ensure that all the sales staff
arrive at the company conference on time. This is a:
a. non programmed decision.
b. programmed decision.
c. problem decision.
d. crisis decision.
15. Decision making is the selection based on some criteria from two or more possible
alternatives is defined
by___________.
A. Farland.
B. Mac Donald.
C. Terry.
D. M.C. Nites.
ANSWER: C
16. The selection of best alternative from many alternatives is known as__________.
A. selection.
B. decision-making.
C. organizing.
D. budgeting.
ANSWER: B
17. Deal with routing and repetitive problems is a __________.

A. programmed decision.
B. non-programmed decision.
C. major decision.
D. minor decision.
ANSWER: A
18. Placing a purchase order is an example of ________.

C. major decision.
D. decision.
ANSWER: A
19. The decision which is taken within the purview of the policy of the organization
is_______.
C. major decision.
D. minor decision.
ANSWER: A
20. The decision taken by lower-level management is a _____________.

C. major decision.
D. minor decision.
ANSWER: A
21. The decision deal with novel and non-repetitive problems is___________.
C. individual decision.
D. non-economic decision.
ANSWER: A
22. Opening of new branch is an example of ___________.

ANSWER: B
23. The decision taken by high level of management is _______________.

ANSWER: B
24. Non-programmed decision is also called _____________.

A. routine decisions.
B. structured decisions.
C. strategic decisions.
D. operative decisions.
ANSWER: C
25. Programmed decision is also known as _____________.

ANSWER: D
26. The decision which has long term impact on business is _____.
ANSWER: B
27. The decision which relates to day-to-day operation of an organization is known as ____.
A. major decision.
B. organisational decision.
C. personal decision.
D. operative decision.
ANSWER: D
28. The decision which does not incur any expenses is known as ____.
A. economic decision.
B. crisis decision.
C. non-economic decision.
D. problem decision.
ANSWER: C
29. The decision which is implemented within the concerned department is known as ___.
B. departmental decision.
ANSWER: B
30. Decision taken by a committee formed by the top management for specific purpose is
____.
A. group decision.
ANSWER: A
31. Crisis decision is also known as ____.

A. group decision.
B. major decision.
C. minor decision.
D. spot decision.
ANSWER: D
32. A decision taken to meet unexpected situations is known as ____.

B. crisis decision.
ANSWER: B
33. Rearrange the steps in the decision- making process logically.
A. Identification of a problem
B. Identification of decision criteria
C. Allocation of weights to criteria
D. Development of alternatives
E. Analysis of alternatives
F. Selection of an alternative
G. Implementation of the alternative
a. GFEDCBA
b. CDBAFEG
c. ABCDEFG
d. GCDABEF
ANSWER: c. ABCDEFG
34. Which of the following is an assumption of rationality to rationale decision making?
a. Preferences are clear

b. Final choice will maximise payoff
c. The problem is clear and unambiguous
d. All of the above
ANSWER: d. All of the above

35. ___________ is accepting solutions that are "good enough".
a. Bounded rationality
b. Satisficing
c. Escalation of commitment
d. None of the above
ANSWER: b. Satisficing
36. Making decisions on the basis of experience, feelings and accumulated judgement is
called as __________.
a. Decision making
b. Structured problems
c. Intuitive decision making
ANSWER: c. Intuitive decision making
37. ___________ is a rule of thumb that managers use to simplify decision making.
a. Sunk - costs
b. Framing
c. Heuristics
ANSWER: c. Heuristics
38. The concept of the availability heuristic is illustrated when you

a. choose one movie over another because you prefer the design of its poster at the
cinema.
b. never make a decision about where to eat because you are rarely hungry.
c. vow to never drive again because of the horrible accident you witnessed in
front of your house.
d. refuse to buy food that you think is overpriced, even if you are wrong.
39. Research on the framing effect shows that when people have to choose between an option
framed in terms of a gain and an option framed in terms of a loss, most people
a. protest and say that the choice is unfair.
b. choose the option framed in terms of a loss.
c. remain indecisive.
d. choose the option framed in terms of a gain.
40. Which of the following is the best example of hindsight bias?
a. Changing one’s attitude about a person base on how others view that
person
b. Misremembering one’s previous views on a person in order to fit one’s current
knowledge or beliefs
c. Changing one’s choice of a prize, thinking that new information would be
helpful
d. Paying attention only to information that is consistent with one’s beliefs
41. Initially making a low offer in order to get a bargain on a second-hand item is an example
of the
a. anchoring effect.
b. Monty Hall problem.
c. working backward heuristic.
d. framing effect.
42. Your roommate shows you a picture of a new friend, Jason. Minutes later, you meet
someone named Garrett waiting in line for dinner. Next time you see Garrett, you call him
Jason. You may have been influenced by
a. change blindness.
b. inattentional blindness.
c. the anchoring effect.
d. the framing effect.
Foundations of Control
MULTIPLE CHOICE
For each of the following choose the answer that most completely answers the question.
WHAT IS CONTROL?
1. An effective control system
a. ensures that activities lead to attainment of the organizations goals
b. makes people feel good about their jobs
c. facilitates goal achievement
d. all of the above are true
e. both a and c above are true
e moderate
2. Under a market control system, an organization could be expected to be controlled by

a. price competition
b. relative market share
c. profits generated by each profit center
e. both a and c above are true
d moderate
3. Under a bureaucratic control system, activities would be controlled by

a. shared values
b. profits
c. rules, regulations, and procedures
d. relative market share
e. price competition
c easy
4. Under clan control, employees would respond to control from

a. shared values
b. profits
c. rules, regulations, and procedures
d. relative market share
e. price competition
a easy
WHY IS CONTROL IMPORTANT?

5. Goals of an organization are related, in that,
a. control informs managers that goals are either attained or not attained
b. control follows up on goal setting to ensure success
c. control serves as feedback from the planning process and therefore supports goals
e. none of the above are true
d challenging
6. Some managers are reluctant to delegate authority to subordinates because

a. the managers are tempted to do things themselves
b. control systems are not in existence to support delegation
c. the subordinates might do something wrong and this will reflect on the manager
e. both a and c are true
d challenging
THE CONTROL PROCESS

7. The control process consists of
a. taking managerial action to correct deviations or inadequate standards
b. comparing actual performance to standards
c. measuring actual performance
d challenging
8. Information for control systems gained from oral reports is important because the information
a. is gained quickly
b. is not filtered
c. removes the tone of the conversations
d. cannot be referenced at a later date
e. can be referenced at a later date
a moderate
9. A source of information that will allow a manager to develop a control system is

a. personal observation
b. statistical reports
c. written reports
d. oral reports
e. all of the above are true
e moderate
10. Selecting control criteria is important because

a. the wrong criteria can cause dysfunctional behavior
b. the criteria determines what employees strive for
c. employees can sense when criteria are invalid
e. both a and b are true
e challenging
11. A standard control criteria that fits most businesses is

a. keeping costs within budget
b. the value of each person to profit in the firm
c. producing a given output from a given input
e challenging
TYPES OF CONTROL
12. Control that prevents anticipated problems and takes place in advance of a particular
activity is known as
a. feedback control
b. concurrent control
c. feedforward control
d. higher level control
e. lower level control
c easy
13. Feedforward control is attractive because it

a. specifies the higher-level control functions
b. allows managers to prevent problems
c. allows lower-level control to develop
d. challenges the viability of the control criteria
e. relates controls to goals better than motivation does
b moderate
14. Control that takes place while an activity is in progress is known as

a. feedback control
b easy
15. An example of concurrent control is

a. direct supervision
b. computer software that alerts it user to problems
c. computerized machine controls
d. a thermostat in a room
e easy
16. Control that takes place after an activity is completed is
a. feedback control
a easy
17. A major drawback to feedback control is

a. by the time managers have information, waste has already occurred
b. managers can make decisions after an activity has occurred
c. managers can not correct problems before the problem occurs
d. that these controls are costly to implement because of the planning incurred
e. based on knowledge of the particular industry
a moderate
18. Feedback control’s advantage is that it

a. gives an evaluation on the planning process.
b. enhances employee motivation
c. improves communication processes
e. both a and b are true
e moderate
19. Which of the following is true relative to control?

a. Small organizations rely more on formal control systems.
b. As organizational size increases, formal control systems are replaced by direct
supervision.
c. Small organizations typically rely on highly formalized and impersonal feedforward
controls.
d. Small organizations typically rely on highly formalized and impersonal feedback
controls.
e. Concurrent control through direct supervision is the most cost efficient process in
small organizations.
e moderate
20. Which of the following is false relative to control?

a. The higher one climbs in organizations, the greater the need for multiple sets of
criteria.
b. The higher one moves in organizations, the more ambiguity there is in measuring
performance.
c. Lower level jobs in organizations, have less clarity in the expected performance and
broader interpretation of job performance.
d. More decentralized organizations need more feedback to measure performance.
e. When organizational culture is based on trust, autonomy and openness, managers can
expect informal self-control systems.
c challenging
21. An example of constraints on corrective actions in foreign countries is

a. closing facilities
b. laying off employees
c. taking money out of the country
d. bringing in new management team
e. all of the above
e moderate
22. In a geographically-dispersed, e-business organization, which of the following is false?

a. As a feedforward control process, managers hire employees who can exercise self-
control.
b. As a feedforward control process, managers develop work practices that flexible, but
make it clear that the work is expected to be finished.
c. In concurrent control processes, managers cannot communicate readily so other
control functions are used.
d. Managers must realize that net surfing relieves stress in limited amounts.
e. Feedback controls should include regular reports from the employees.
c moderate
CONTEMPORARY ISSUES IN CONTROL

23. A major control issue faced in e-business organizations is the potential for
a. harassment in email messages
b. bias in email messages
c. discrimination in email messages
d. offensive sexual behavior on the Internet
e moderate
24. All organizations need a policy that defines

a. inappropriate electronic communications
b. state management’s right to monitor Internet and email usage by employees
c. a record keeping process to investigate charges against employees
d. disciplinary actions for any violations of organizational policies
e. all of the above
e moderate
25. An employer has the right to monitor all of the following except
a. email on office computers
b. phone calls
c. computer work assignments
d. email at home
e. employee actions in restrooms and dressing rooms
d moderate
26. Management must monitor email and Internet activities by employees for all the
following reasons except
a. recreational web surfing is free
b. placing bets in online casinos is expensive
c. checking stock prices online takes time away from work
d. emailing friends and family is non-productive
e. none of the points above are true
a moderate
27. The Electronic Communications Privacy Act of 1986 prohibits monitoring of

a. employers’ reading email
b. unauthorized interception of electronic communication
c. Internet connections
e. only a and c above are true
b moderate
28. Which of the following is not a feedforward control measure to prevent theft or fraud by
employees?
a. redesigning control measures
b. careful pre-hiring screening
c. involving employees in writing policies
d. educating and training employees about policies
e. having professionals review your internal security controls
a challenging
29. Which of the following is not a concurrent control measure to prevent theft or fraud by
employees?
a. careful pre-hiring screening
b. making sure that employees know that fraud has occurred
c. announcing successes in preventing thefts
e. only a and b above are true
a challenging
30. Which of the following does not contribute to workplace violence?

a. employees driven by time numbers and crises
b. rapid unpredictable change plagues employees
c. double standards for employees and managers
d. emotionally troubled employees
e challenging
Fill-In-the-Blank
For each of the following choose the answer that most completely answers the question.
WHAT IS CONTROL?
31. ____________ is the process of monitoring activities to ensure that they are being
accomplished as expected and for correcting any significant deviations.
a. Planning
b. Organizing
c. Leading
d. Motivating
e. Controlling
e easy
32. ____________ is the process of collecting information and is the first step in control.
a. Taking managerial action
b. Comparing performance to standards
c. Measuring performance
d. Developing standards
e. Evaluating standards
c moderate
33. ____________ is a way of acquiring information to develop controls.

a. Personal observation
b. Management by walking around (MBWA)
c. Relying on statistical reports
d. Reading written reports
e easy
34. Information for control systems gained from oral reports is important because
___________ .
a. physiological needs
b. safety needs
c. social needs
d. Theory X
e. Theory Y
f. e Moderate
35. Some variation in performance is expected, so an acceptable __________ of variation is

important so that excessive control is not utilized.
a. mean
b. median
c. mode
d. range
e. standard deviation
d easy
36. In correcting actual performance, __________ corrects problems at once to get

performance back on track.
a. immediate corrective action
b. basic corrective action
c. rational corrective action
d. motivational action
e. hygienic action
a moderate
37. In correcting actual performance, __________ determines how and why performance has
deviated and then proceeds to correct the source of deviation.
a. immediate corrective action
b. basic corrective action
c. rational corrective action
d. motivational action
e. hygienic action
b moderate
38. Correcting actual performance is not practical if the ___________ is unrealistic.

a. motivation
b. perception
c. standard
d. reward
e. challenge
c moderate
39. As companies expand globally, home offices depend more on _________ for control.
a. formal reports
b. informal reports
c. indirect computer-related reports
d. work-related oral reports
e. core beliefs
a moderate
40. Organizations in more technologically advanced countries rely more on ___________

for control.
a. formal reports
b. informal reports
c. indirect computer-related reports
d. work-related oral reports
e. core beliefs
c moderate
CONTEMPORARY ISSUES IN CONTROL

41. Managers should monitor email in the organization to ensure that ________ is (are) not
allowed outside the organization.
a. intellectual property
b. information that might harm the organization
c. trade secrets
d. confidential financial records
e easy
42. Managers can make sure electronic monitoring is not demeaning if the computer usage
policy is ___________ .
a. ambiguous
b. unambiguous
c. hidden
b moderate
43. Organizations lose 85% of all organizational theft to ___________ .

a. organized theft rings
b. contractors
c. suppliers
d. employees
e. customers
d moderate
44. Theft by employees is caused by all of the following except _____________ .

a. lax controls
b. favorable opportunities
c. vice-based pressures
d. financial-based pressures
e moderate
45. When employees steal from the company because they feel “everyone does it,” they are
driven by the ________ theory.
a. equity
b. reinforcement
c. physiological
d. expectancy
e. both b an c are true
a challenging
46. Overemphasis on __________ is a major contributor to driving employees to workplace

violence.
a. deadlines
b. numbers
c. crises
d easy
47. Embezzlement from companies include removing

a. software
b. equipment
c. office supplies
d easy
48. Management’s monitoring of ____________ is illegal under the Electronic

Communication Privacy Act of 1986
a. email
b. Internet usage
c. authorized web surfing
d. wagers placed via the Internet
e moderate
49. _______________ is not part of a dysfunctional environment that contributes to

workplace violence.
a. Double standards for different employees
b. Unresolved grievances
c. Repetitive work
d. Authoritative leadership
e. Safe equipment
e moderate
50. When mangers _____________ , they are allowing situations to escalate toward violence.
a. defuse threats
b. hire stable employees
c. develop employee assistance programs
d. are a good role model
e. communicate polices to employees
a moderate
Scenario Questions
Gerald has worked for his current employer for three years. Early in his employment, he worked
to understand the intricacies of his job, but lately he has worked to understand the control
processes that are in effect.
51. Initially, Gerald saw the operations of the company controlled by rules, regulations and
procedures. He came to understand that as ___________ control.
a. market
b. clan
c. bureaucratic
d. strategic
e. tactical
c easy
52. Later as Gerald began working with other managers, he saw the values, beliefs, and
norms within these managers controlling their behavior. This is _________ control exerting its
influence in the company.
a. market
b. clan
a. bureaucratic
b. strategic
c. tactical
b easy
53. As Gerald became more familiar with the products and services that his employer
offered, he began to see how competition, pricing, and the company’s image in the environment
influenced control over the company. He learned this is the effect of _________ control.
a. market
b. clan
c. bureaucratic
d. strategic
e. tactical
a easy
54. As Gerald understands the control function the more he sees it is closely related to
a. goals
b. planning
c. marketing
e moderate
55. Gerald is asked to manage a new part of the organization that is just beginning. One of
the things he must do is to set up a control operation. The first step in controlling this operation is
to
a. take action to correct inadequate operations
b. set goals
c. compare actual performance to standards
d. develop plans
e. measure or determine actual performance
b challenging
Jean has been promoted to manager of a large branch of a bank. This branch has not been as
profitable as it could be in the past few months, Jean realizes that control has been lax in the
branch and this has affected profitability.
56. Each morning she begins her day with a quick tour of the branch speaking to many
employees and evaluating the overall operation by
a. personal observation
b. horizontally orienting herself for the day
c. management by walking around (MBWA)
e moderate
57. Jean continues her early evaluation of the operation by examining the performance of the
branch using various graphs, bar charts, and numerical displays. This source of data is called
a. skilled analysis
b. task definition
c. statistical reports
c moderate
58. Next she visits with the various department heads in the branch so she can see how the
branch operated the previous day. This form of data collection is known as
a. oral reports
b. group reports
c. statistical reports
d. operational planning
a challenging
59. Finally, Jean reads the ____________ reports to get a sense of the operation. She realizes
that these reports are slower, than first hand reports, but they are more concise and
comprehensive than the other reports.
a. statistical
b. annual
c. oral
d. written
e. standardized
d moderate
60. Jean needs to analyze the information that she collects. She does this by looking at the
range of __________in the data.
a. deviation
b. variation
c. conclusion
d. description
e. initiative
b challenging
Jason works as a manager in a local drug store. He faces many challenges as he actively attempts
to control the operation and remain profitable.
61. Jason’s initial response to problems that occur in the course of a day is to use ________
to correct problems at once to get performance back on track
a. bureaucratic action
b. instinctive response to problems
c. basic corrective action
d. immediate corrective action
e. scientific management
d easy
62. After the initial response is set in motion, Jason uses __________ to determine why
performance deviated originally and correct the source of the deviation.
a. bureaucratic action
b. instinctive response to problems
c. basic corrective action
d. immediate corrective action
e. scientific management
c easy
63. Jason tries to train his employees to do their jobs and to appraise their own performance.
This is an example of ___________ control.
a. statistical
b. annual
c. entrepreneurial
d. feedforward
e. feedback
d moderate
64. Jason’s direct supervision is a form of __________ control.

a. statistical
b. concurrent
c. entrepreneurial
d. feedforward
e. feedback
b moderate
65. Jason has one group of employees who are consistently below average in performance.
Normal behavior is for the employees to ask Jason to
a. revise the standard
b. find a new supervisor for them
c. be more understanding
d. hire some more employees
e. ask for a deviation from expectations
a moderate
JSPM’s Jayawant Institute of Management Studies
Department MBA
MCQ
Chapter 1
Management Fundamental
Class: MBA -I Faculty: Dr. Rasika Patil

A. Weber
B. Taylor
C. Vest
D. Fayol
2. A reporting relationship in which an employee receives orders from, and
reports to, only one supervisor is known as:
A. Line of authority.
B. Centralization.
C. Unity of direction.
D. Unity of command.
3. is the singleness of purpose that makes possible the creation of one
plan of action to guide managers in resource allocations
A. Unity of direction
B. Unity of command
C. Unity of authority
D. Unity of resources
4. The theory states a manager's choice of organizational structures and
control systems depends on characteristics of the external environment.
A. Mechanistic
B. Management science
C. Organic
D. Contingency
5. Scientific management, administrative management, and bureaucratic management
belong to the management viewpoint known as the
A. classical perspective
B. behavioral perspective
C. quantitative perspective
D. systems perspective
6. Which of the following is not a fundamental characteristic of Bureaucratic
Management?
A. Specialisation of labour
B. Well defined hierarchy
C. Striving to be a ‘first-class worker’
D. Formal rules and regulations.
7. Which of these statements concerning Weber’s concept of Bureaucracy is not
correct?
A. It is based on rules and procedures rather than personal preference and judgement.
B. It is still a relevant concept in today’s organisation.
C. It has acquired a negative reputation for inefficiency and rigidity.
D. It rejects rational approaches to managing organizations
8.Which of the following men’s writings are associated with bureaucracy?
A. Max Weber.
B. Henri Fayol.
C. Frederick Taylor.
D. Douglas McGregor.
9.Management exists at the ___ level of the organization.

A. Lower
B. Middle
C. Top
D. All of the above
10. In what order do managers typically perform the managerial functions?
A. organising, planning, controlling, leading
B. planning, organising, leading, controlling
C. planning, organising, controlling, leading
D. organising, leading, planning, controlling
11. 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 move to higher levels.
12. Technical skills include _______________.
A. knowledge of and efficiency in a certain specialized field
B. knowledge of and proficiency in a certain specialized field
C. knowledge of and interest in a general field of endeavor
D. skill in and proficiency in a certain specialized field
13 Which of the following types of skills are described with terms such as abstract
situations and visualization?
A. Interpersonal.
B. Human
C. Technical
D. Conceptual
14 An organization is ______________.
A. The physical location where people work
B. A collection of individuals working for the same company
C. A deliberate arrangement of people to accomplish some specific purpose
D. A group of individuals focused on profit-making for their shareholders
15. Universality of management means that _____________
A. all managers in all organizations perform the four management functions
B. all managers in all organizations can perform their job the same way
C. all organizations can hire any manager to perform the management jobs
D. any manager can work in any organization and perform any management job.
16 .We have a vested interest in improving the way organizations are managed because
_________________.
A. We want the organization to be functioning when our education is completed
B. we interact with organizations every single day of our lives
C. if organizations don’t improve we won’t have a place to work in the future
D. organizations supply inputs to other organizations
17. Organizations that are well managed ____________.
A. Choose the best suppliers for their products
B. Compete on an international basis because they have the best products
C. Always have the low est-cost products
D. Develop a loyal customer base, grow, and prosper
18.Time period of Contemporary Approaches.
A. 1975-2000
B. 1986-1988
C. 1889-1890
D. 1916-1970
19. Figurehead, Leader and Liaison is -------------------------- Mintzberg's Management
Roles.
A. Interpersonal
B. Informational
C. Decisional.
D. Planning,
20. The three categories of Mintzberg's managerial roles are
Select one:
A. interpersonal, informational, and decisional.
B. planning, organizing, and leading
C. entrepreneur, disturbance handler, and negotiator.
D. monitor, disseminator, and spokesperson.
Systems that are not influenced by and do not interact with their environment.
A. Close system
B. Open System
C. Semi Open system
1. The Practice of Management written by __________.
A. Peter F. Drucker.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
2. Management is an organ, organs can be described and defined only through their functions. This
definition
was given by ____________.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
3. Management is what a manger does_____________.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: C
4. To manage is to forecast and plan, to organize, to compound, to co-ordinate and to control. This
definition
was given by____________.
B. Henry Fayol.
C. Louis Allan.
D. Terry.
ANSWER: B
5. Management is the art of getting things done through and with an informally
organized_____________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
6. Management is the art and science of decision making and leadership _____.
A. Harold Koontz.
B. Donald J. Clough.
C. Louis Allan.
D. Terry.
ANSWER: B
7. Luther Gullik classifies the function of management as ___________.
A. POSDCORB.
B. POSTCARD.
C. POSDCORB.
D. POSDORBC.
ANSWER: C
8. Father of Administrative management______________.
A. Mary Parkett.
B. Lillian Gilbert.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: C
9. Pioneer of Human Relations is ___________.
A. Mary Parkett.
B. Lillian Gilbert.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: D
10. Henry Fayol laid down_____________.
A. 12 principles.
B. 13 principles.
C. 14 principles.
D. 15 principles.
ANSWER: C
11. Espirit de corps means______________.
A. union is strength.
B. service is our motto.
C. buyer beware.
D. product is our strength.
ANSWER: A
12. F.W. Taylor is associated with________________.
A. Scientific Management.
B. Future management.
C. Modern management.
D. Principles of management.
ANSWER: A
13. Management is________________.
A. an art.
B. a science.
C. an art and a science.
D. an art not science.
ANSWER: C
14. Henry Fayol was a French__________________.

A. Industrialist.
B. Writer.
C. Manager.
D. Actor.
ANSWER: A
15. General and Industrial Management was written by_________________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: D
16. Every subordinate should receive orders from and be accountable to only one superior is
__________.
A. Unity of direction.
B. Unity of command.
C. Centralization.
D. Scalar chain.
ANSWER: B
17. Control system of an organisation has no influence over the _____________.
A. internal environment.
B. external environment.
C. customers.
D. government.
ANSWER: B
18. The chain of command from the highest authority to the lowest level in the organization is
_________.
C. Centralization.
D. Scalar chain.
ANSWER: D
19. Allotment of work to each worker on the basis of the capacity of an average worker functioning in
the
normal working condition is _____________.
A. social task planning.
B. scientific task planning.
C. not a planning.
D. scientific organizing.
ANSWER: B
20. Study of the movements of both the workers and the machine to eliminate wasteful movement is
_____________.
A. fatigue study.
B. time study.
C. motion study.
D. work-study.
ANSWER: C
21. A study relating to the fixing of the working hours with rest periods to recoup the energy while
performing
in a job is called ____________.
A. fatigue study.
B. time study.
C. motion study.
D. work-study.
ANSWER: A
22. The first and foremost function of management is ___________.
A. planning.
B. organizing.
C. controlling.
D. coordination.
ANSWER: A
23. Planning lays down the overall objective, strategies and polices for the total enterprise is
___________.
A. corporate planning.
B. divisions planning.
C. unit planning.
D. department planning.
ANSWER: A
24. Strategic planning is ___________.
A. long term planning.
B. medium term planning.
C. short term planning.
D. annual planning.
ANSWER: A
25. The assumptions about future derived from forecasting and used in planning are known as
_____________.
A. planning premises.
B. freehold premises.
C. business premises.
D. corporate premises.
ANSWER: A
26. Goals, aims, purposes, missions and target is also known as ____________.
A. objective.
B. strategies.
C. policies.
D. rules.
ANSWER: A
27. Contingent plan to meet environmental pressures is ______________.
A. objective.
B. strategies.
C. policies.
D. rules.
ANSWER: B
28. A chronological sequence of steps to be undertaken to enforce a policy and to attain an objective is
known
as ___________.
A. objective.
B. strategies.
C. procedures.
D. rules.
ANSWER: C
29. A statement of expected results expressed in numerical terms for a definite period of time in the
future is
known as ____________.
A. objective.
B. strategies.
C. procedures.
D. budgets.
ANSWER: D
30. The process of establishing a time sequence for the work is known as __________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: B
31. A rigid plan, no scope for discretion __________.
A. rule.
B. schedules.
C. procedures.
D. budgets.
ANSWER: A
32. Specifying the manner of executing policy is known as ________________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: C
33. ____________ is the harmonising or synchronising of individual efforts with the purpose of achieving
group goals.
A. coordination.
B. control.
C. decision making.
D. delegation.
ANSWER: A
34. __________ is an obligation to perform certain functions and achieve certain results.
A. responsibility.
B. decentralisation.
C. centralisation.
D. delegation.
ANSWER: A
35. Plan that establishes a required method of handling future activities is called _________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B
36. Set of clear instruction in a clear and logical sequence to perform a particular task______.
A. rules.
B. programme.
C. policy.
D. methods.
ANSWER: B
37. Employees will be promoted on the basis of seniority is an example of __________.

A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: C
38. Steps to be taken for selecting salespersons is an example of ___________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B
39. An identified group of people contributing their efforts towards the attainment of goals is called an
_____________.
A. organization.
B. business.
C. management.
D. department.
ANSWER: A
40. A system of co-operative activities of two or more persons is called __________.
A. department.
B. co-ordination.
C. organization.
D. control.
ANSWER: C
41. Supply of human and material resources and helps to achieve the objective of business
is______________.
A. planning.
B. organisaiton.
C. management.
D. control.
ANSWER: B
42. Formal authority flows from upwards to downwards in___________.
A. formal organization.
B. informal organization.
C. business or organisation.
D. strategic organization.
ANSWER: A
43. Informal authority flows upwards to downwards or horizontally in _____________.
ANSWER: B
44. Rules, duties and responsibilities or workers are given in writing in______________.
ANSWER: A
45. Which is created for technological purpose?
ANSWER: A
46. Which arises from mans quest for social satisfaction?
ANSWER: B
47. Which type of organization is permanent and stable?
ANSWER: A
48. Which type of organization gives importance to terms of authority and functions?
ANSWER: A
49. Which type of organization gives importance to people and their relationships?
ANSWER: B
50. Which organisational relationship gives a greater job satisfaction and results in maximum production?
ANSWER: B
51. Which type of organization has no place in the organization chart?
ANSWER: B
52. Decision making is the selection based on some criteria from two or more possible alternatives is
defined
by___________.
A. Farland.
B. Mac Donald.
C. Terry.
D. M.C. Nites.
ANSWER: C
A. selection.
B. decision-making.
C. organizing.
D. budgeting.
ANSWER: B
C. major decision.
D. minor decision.
ANSWER: A
C. major decision.
D. decision.
ANSWER: A
56. The decision which is taken within the purview of the policy of the organization is_______.
C. major decision.
D. minor decision.
ANSWER: A
C. major decision.
D. minor decision.
ANSWER: A
ANSWER: A
ANSWER: B
ANSWER: B
ANSWER: C
ANSWER: D
ANSWER: B
A. major decision.
ANSWER: D
B. crisis decision.
ANSWER: C
ANSWER: B
67. Decision taken by a committee formed by the top management for specific purpose is ____.
A. group decision.
ANSWER: A
A. group decision.
B. major decision.
C. minor decision.
D. spot decision.
ANSWER: D
B. crisis decision.
ANSWER: B
70. The authority flows from top to bottom through the structure of an organization is ____.
A. The acceptance of authority theory.
B. The formal authority theory.
C. The competence theory.
D. The organisation theory.
ANSWER: B
71. Which theory is also called traditional authority theory?
ANSWER: B
72. If the subordinates do not accept the command of their superior, then the superior cannot be said to
have
any authority over them is given in.
ANSWER: A
73. The type of authority is invested with the persons by virtue of the office held by them is ____.
ANSWER: C
74. The process whereby a manager shares his work and authority with his subordinates is________.
A. Decentralisation
B. Responsibility.
C. Delegation.
D. decision making.
ANSWER: C
75. The subordinate is granted authority to perform all the functions in his department or division is
____.
A. general delegation.
B. formal delegation.
C. specific delegation.
D. informal delegation.
ANSWER: A
76. The orders, instructions or direction are delegated to a particular person specifically is known as
____.
ANSWER: C
77. When authority is delegated as per the organisation structure it is called ____.
A. formal delegation.
B. informal delegation.
C. general delegation.
D. specific delegation.
ANSWER: A
78. When an individual or a group agrees to work under the direction of an informal leader is called
_____.
ANSWER: B
79. Delegation made by written orders and instruction is known as ____.
A. oral delegation.
B. written delegation.
C. downward delegation.
D. sideward delegation.
ANSWER: B
80. Departmentation on the basis of activities grouped according to the type of customer is _____.
A. departmentation by function.
B. departmentation by products.
C. departmentation by territory.
D. departmentation by customers.
ANSWER: D
81. The process of dividing the large monolithic functional organization into small and flexible
administrative units is called ____.
A. staffing.
B. delegation.
C. departmentation.
D. control.
ANSWER: C
82. Departmentation is a part of the ___.
A. organisation process.
B. control process.
C. planning process.
D. staffing process.
ANSWER: A
83. Banks, insurance companies and distribution agencies are examples of ____.
ANSWER: C
84. Departmentation on the basis of the production process is called ____.
A. equipment department.
ANSWER: A
85. The term span of management is also known as ____.
A. span of business.
B. span of control.
C. span of activity.
D. span of planning.
ANSWER: B
86. The number of subordinates that report directly to a single supervisor is ___.
A. span of supervision.
B. span of activity.
C. span of business.
D. span of organizing.
ANSWER: A
87. Few subordinates report directly to a manager is ____.
A. wide span of management.
B. large span of management.
C. small span of management.
D. narrow span of management.
ANSWER: D
88. Large number of subordinates report to a manager is ____.
ANSWER: A
89. Making assignments, issuing orders and instructions, providing guidance and inspiration to
subordinates
for the achievement of organizational objective is called ___.
A. Planning.
B. Organizing.
C. Directing.
D. controlling.
ANSWER: C
90. Motivation based on force of fear is called ____.
A. negative motivation.
B. positive motivation.
C. extrinsic motivation.
D. intrinsic motivation
ANSWER: A
91. Wages, salaries, bonus, vacation pay, insurance are examples of ____.
A. financial motivation.
B. non-financial motivation.
D. intrinsic motivation.
ANSWER: A
92. Participation, recognition and power are some of the examples of ___.
ANSWER: B
93. ____ means that each section has its own workers to perform activities within the department.
A. centralisation.
B. departmentation.
C. decentralisation.
D. delegation.
ANSWER: C
94. According to Maslow, self-actualization needs is a ____.
A. high level needs.
B. medium level needs.
C. lower level needs.
D. psychological needs.
ANSWER: A
95. Expectancy motivation theory is given by ____.
A. Vroom.
B. Maslow.
C. Herzberg.
D. Mc Gregor.
ANSWER: A
96. Management By Objectives was introduced by _____.
A. Taylor.
B. Elton Mayo.
C. Peter Drucker.
D. Maslow.
ANSWER: C
97. Leadership behaviour is influenced by certain qualities of a person is ____.
A. Followers theory.
B. Trait theory.
C. Situational theory.
D. Managerial grid.
ANSWER: B
98. The leadership theory study leaders behaviour is _____.
A. Flowers theory.
B. Trait theory.
C. Behavioural theory.
D. Managerial grid.
ANSWER: C
99. All decision-making power is centralized in the leader is under ____.
A. autocratic style.
B. liberal leader.
C. democratic leader.
D. institutional leader.
ANSWER: A
100. The leader makes decisions in consultation with his followers is ____.
B. liberal leader.
ANSWER: C
101. Complete freedom for group or individual decision, with a minimum of leader participation is under
____.
B. democratic style.
C. free-rein style.
D. creative style.
ANSWER: C
102. A leader exercises his power over his followers because of his position held in the. organizational
hierarchy is ____.
A. autocratic leader.
B. intellectual leader.
C. liberal leader.
ANSWER: D
103. The leader who excels as a leader because of his superior knowledge is ___-.
C. liberal leader.
ANSWER: B
104. A leader who serves as the head of the family and treats his followers like his family members is
____.
A. paternalistic leader.
C. liberal leader.
ANSWER: A
105. A leader motivates his followers to work hard by offering them rewards is ____.
A. positive style.
B. negative style.
C. autocratic style.
D. democratic style.
ANSWER: C
106. A leader forces his followers to work had and penalizes them is ____.
A. positive style.
B. negative style.
ANSWER: B
107. Leader acts more as bosses then leadership style is ____.
A. positive style.
B. negative style.
ANSWER: B
108. The leader acts as a liaison officer between the employees and the outside world is ____.
A. positive style.
B. free-rein style.
ANSWER: B
109. The last function of management is____.
A. Planning.
B. Organizing.
C. Controlling.
D. Staffing.
ANSWER: C
110. Fixation of standards, measurement of performance, comparison, and correction of deviation are
the steps in________.
A. planning.
B. organizing.
C. Staffing.
D. control process.
ANSWER: D
111. Planning is looking ahead and control is_________.
A. looking back.
B. looking front.
C. looking sideward.
D. looking down.
ANSWER: A
112. Control exercised while the activity is in progress is__________.
A. concurrent control.
B. feedforward control.
C. feedback control.
D. preserving control.
ANSWER: A
113. Exchange of ideas, opinions, information etc. between two or more persons is________.
A. Planning.
B. organizing.
C. Communication.
D. Staffing.
ANSWER: C
114. Communication is a _______.
A. one-way process.
B. two-way process.
C. three-way process.
D. four-way process.
ANSWER: B
115. The person who sends a message is known as________.
A. Sender.
B. Receiver.
C. Messenger.
D. Communicator.
ANSWER: A
116. The act of making ones ideas and opinions known to others is said by_______.
A. Meyer.
B. Brown.
C. Newman.
D. Keith Davis.
ANSWER: A
117. The act of translating the message into words, pictures, symbols, signs or some other form is
known as _________.
A. Sender.
B. Receiver.
C. Encoding.
D. decoding.
ANSWER: C
118. The person who receives the message is called _________.
A. sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: B
119. Converting symbols, signs or pictures into meaning is known as _______.
A. Sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: D
120. communication that flow from superior to subordinates is________.

A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: A
121. Informal communication is commonly known as ________.
D. Grapevine.
ANSWER: D
122. Communication of policies, procedures and programmes is example of_________.
ANSWER: A
123. Reports, suggestions, appeals, grievances, etc is example of_________.
ANSWER: B
124. Inter-departmental committee meeting is an example of__________.
ANSWER: C
125. Rumours and gossips are_________.
ANSWER: D
126. Exchange of messages through spoken words is_________.
A. oral communication.
B. written communication.
C. gestural communication.
D. sideward communication.
ANSWER: A
127. Lectures, group discussions, interviews, social gathering are example of _____.
ANSWER: A
128. Letters, circulars, memos, bulletin, manuals, reports are example of________.
ANSWER: B
129. The problems in communication channels is known as______.
A. organizational barriers.
B. mechanical barriers.
C. personal barriers.
D. semantic barriers.
ANSWER: B
130. The integration of objectives and activities of an organization is________.
A. control.
B. co-ordination.
C. Planning.
D. organizing.
ANSWER: B
131. Co-ordination between the activities of various departments and individuals working within the
organization is known as _________.
A. vertical co-ordination.
B. external co-ordination.
C. internal co-ordination.
D. horizontal co-ordination.
ANSWER: C
132. Scalar chain means ________.
A. hierarchy levels.
B. chain of command.
C. delegation of authority.
D. span of control.
ANSWER: A
133. The oldest type of organization__________.
A. functional organization.
B. line organization.
C. matrix organization.
D. committee organization.
ANSWER: B
134. The organization which was devised by FW Taylor was ________.

B. matrix organisation.
C. committee organization.
D. line and staff organization.
ANSWER: A
135. Devices which shows the organizational relationships________.
A. organizational charts.
B. scalar chain.
C. overall plan.
D. Budgets.
ANSWER: A
136. When the supervisor commands subordinates and has close supervision is called ______.
A. free-rein.
B. autocratic.
C. consultative.
D. democratic.
ANSWER: B
137. Praise, recognition and power are_______.
A. intrinsic motivation.
B. extrinsic motivation.
C. positive motivation.
D. negative motivation.
ANSWER: A
138. X and Y theory was introduced by_______.
A. Mc gregor.
B. Peter drucker.
C. Henry fayol.
D. FW taylor.
ANSWER: A
139. Time-event network is _________.
A. PERT.
B. CPM.
C. MIS.
D. statistical reports.
ANSWER: A
140. Management is ____________.
A. art.
B. science.
C. art and science.
D. humanities.
ANSWER: C
141. Decision making helps in the smooth function of the___________.
A. business.
B. staffing.
C. organization.
D. planning.
ANSWER: A
142. The transmission of thoughts from person to another is_____________.
A. communication.
B. controlling.
C. consultative.
D. organizing.
ANSWER: A
143. The study relating to the movement of a machine operator and his machine while performing the
job is
called__________.
A. time study.
B. work study.
C. motion study.
D. fatigue study.
ANSWER: C
144. Selecting a best course of action among the alternatives is called as_________.
A. decision making.
B. planning.
C. organizing.
D. controlling.
ANSWER: A
145. The decisions which are frequent and repetitive in nature are called as________.
A. non programmed decisions.
B. programmed decisions.
C. major decisions.
ANSWER: B
146. A decision which is taken to meet unexpected situation__________.
A. problem decision.
B. certainty decisions.
C. crisis decision.
D. organizational decision.
ANSWER: C
147. The right of a person to give instructions to his subordinates is known as_________.
A. responsibility.
B. authority.
C. accountability.
D. line authority.
ANSWER: B
148. Elements of delegation_________.
A. responsibility, authority, accountability.

B. authority, delegation, accountability.
C. responsibility, decentralization, centralization.
D. controlling, responsibility, authority.
ANSWER: A
149. The extent to which power and authority are retained at the top is called as________.
A. centralization.
B. decentralization.
C. responsibility.
D. accountability.
ANSWER: A
150. _____ deals with appointing people and placing them at the appropriate jobs.
A. Human resources.
B. Recruitment.
C. Staffing.
D. Placement.
ANSWER: C
MULTIPLE CHOICE
QUESTIONS

Weber
Taylor
Vest
Fayol
2. A reporting relationship in which an employee receives orders from, and reports to, only one supervisor
is known as:
(a) Line of authority.
(b) Centralization.
(c) Unity of direction.
(d) Unity of command.
3. Which worked on administrative management theory:

I. Fayol
II. Parker
III.Weber
(a) I and III
(b) II and III
(c) none of these worked on administrative management theory
(d) I, II, and III
4. is the study of how to create an organizational structure that leads to high efficiency and
effectiveness.
(a) Scientific management
(b) Job specialization
(d) Allocation management
5. is the singleness of purpose that makes possible the creation of one plan of action to guide
managers in resource allocations.
(c) Unity of authority
(d) Unity of resources
6. Which is an organizational - environmental theory?

II. Contingency theory
III.The Theory of Bureaucracy
IV. Theory Z
(a) I and II
(b) I, III, and IV
(c) II, III, and IV
(d) I, II, and III
7. Theory is based on positive assumptions about workers.

(a) Z
(b) X
(c) Y
(d) C
8. The theory states a manager's choice of organizational structures and control systems depends
on characteristics of the external environment.
(a) Mechanistic
(b) Management science
(c) Organic
(d) Contingency
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(b) Line of authority
(c) Globalization
(d) Unity of command

(a) Operations Management
(b) TQM
(c) MIS
(d) None of these
11. Theory states that the average employee is lazy and will try to do as little as possible.
(a) X
(b) Y
(c) Z
(d) None
12. In recent history, workers have felt that they should be empowered in the workplace. This is an
example of
(a) social influences
(b) political influences
(c) technological influences
(d) global influences
13. Scientific management, administrative management, and bureaucratic management belong to the
management viewpoint known as the
14. The theorist that advocated standard methodology for doing a task and suggested that
workers were motivated by pay according to output (piecework) is
(a) Elton Mayo
(b) Max Weber
(d) Henri Fayol


(b) Managers should apply classical management theory to their everyday work if they want to be more effective.
(c) A traditional approach to management can be successfully applied to the problems of a modern organisation.
(a) The unions.
(b) The managers.
(c) The organisation as a whole.
(d) The workers

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(d) Work specialisation

(a) Specialisation of labour
(a) It is based on rules and procedures rather than personal preference and judgement.
(b) It is still a relevant concept in today’s organisation.
22. Which of the following was an early key management idea, pre-dating the work of Frederick Taylor and Max
Weber?
(c) Work specialisation.
(d) Classical management theory.
(a) One best way.
(b) Formalisation.
25. Contingency theory suggests which of the following as a limitation of classical management theory?
(c) Everything is contingent upon the workers in an organisation.

(c) It is outdated as a theory as it cannot be applied to today’s modern organisations.
27. Which of the following does NOT describe a problem with scientific management?
(a) Productivity increases may not be reflected in workers’ pay.
(b) It is better suited to complex jobs.
(c) Improvement is not necessarily maintainable.
(d) It is better suited to simple jobs.
(a) Theory Y.
(b) Behavioural science.
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(d) Operations research.
(a) Max Weber.
(b) Henri Fayol.
(c) Frederick Taylor.
(d) Douglas McGregor.
30. According to Fayol’s 14 principles of management, ‘esprit de corps’ refers to which of the
following?
(a) Being treated fairly and kindly.
(b) Spirit of the corporation.
(c) Team work and harmony.
(d) Spirit of work.
(a) As an organism.
(b) As a human being.
(c) As a machine.
(d) As a wheel in an engine.

(b) Management accounting.
(d) Systems management.
(a) Socio-political.
(b) Bureaucratic.
(c) Cultural.
(d) None of these.
34. Which of the following is NOT part of the mix of behavioural sciences informing organisation
behaviours?
(a) Social psychology.
(b) Organisational theory.
(c) Systems theory.
(d) Psychology.
35. The behavioural science approaches add which of the following emphases to management?
(a) The study of people who satisfy social needs at work and how informal as well as formal
organisation affects behaviour.
(b) Management as a science and developing techniques to control behaviour.
(c) The scientific study of human behaviour and developing behavioural techniques.
(d) None of these.
36.
ystems theory takes into account which of the following?
(a) The whole system of anything.
(b) Every system involving humans.
(d) Open systems.
37.
hich of the following phrases is closely connected to contingency theory?
(a) No one best way.
(b) Today’s ideas are tomorrow’s history.
(c) One best way.
(d) Universal ideas of good management.
38. Which of the following is not a way of overcoming resistance to change?

(a) Incentives
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(b) Bullying and harassing people
(c) Education and communication
(d) Coercion

(a) Obsolecense of skills
(c) Fear of unknown
(a) Evolutionary
(b) Revolutionery
(c) Planned
(d) Unplanned.
41. Which of the following is true with people with a Type A personality?
(a) They are generally content with their place in the world.
(b) They generally fell little need to discuss their achievements
(c) They are easy going and relaxed and that’s why take no tension of work.
(d) They have an intense desire to achieve and are extremely competitive
42. The difference between a company’s mission statement and the concept of strategic vision is
that
(a) The mission statement lays out the desire to make a profit, whereas the strategic vision addresses what strategy the
company will employ in trying to make a profit.
(b) A mission statement deals with "where we are headed " whereas a strategic vision provides the critical answer to
"how will we get there?"
(c) A mission deals with what a company is trying to do and a vision concerns what a company ought to do.
(d) A mission statement typically identifies what the company's products or services are (what we do) and the
customers and markets it serves (why we are here), whereas the focus of a strategic vision is on "where we are going
and why."

(a) Planning, organising, staffing and directing
(b) Planning, organising, leading and directing
(c) Planning, organising, leading and staffing
44. Which of the following is not Kurt Lewin’s famous 3 stage perspective model of change?
(a) Unfreezing current attitudes
(b) Refreezing attitudes at new level
(c) Moving to a new level
(d) Melting resistance.
45. Forcefield analysis suggests that before a manager embarks on a change strategy he should properly
identify and evaluate and .
(a) Positive forces, negative changes
(b) Driving forces, restraining forces
(c) External forces, internal forces
(d) Strong forces, weak forces.

(a) Officer
(d) Secretary.
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(a) Insolvency
(c) Unsound mind
48. The Central Government may appoint some directors for a period of in case of
mismanagement of company affairs
(a) 3 and half yrs
(b) Not more than 3 yrs
(c) 5 yrs
(d) Not more than 2 yrs.
49. A director has to hold a minimum qualifying amount of shares of ` within

months after his appointment as director.
(a) 5000, 2
(b) 50,000, 2
(c) 5000, 5
(d) 5000, 3.
50. The maximum limit of holding Directorship in public companies is

(a) 11 companies
(b) 12 companies
(c) 14 companies
(d) 15 companies.
51. A person cannot be appointed as a Managing Director for more than at a time.
(a) 5 yrs
(b) 6 yrs
(c) 7 yrs
(d) 4 yrs
52. Which of the following is a characteristic of a Public sector organization?

(a) Private ownership
(b) Primary profit making motive
(c) Strict financial control by Government
53. Which of the following industries does not come within the purview of 1991 Industrial Policy for
reservation for public sector?
(a) Handicrafts
(b) Atomic energy
(c) Arms Ammunitions
(d) Coal and lignite.

(b) forecasting,
(c) staffing,
(d) organising
[Hint: Planning is setting objectives and deciding how to accomplish them.]

(a) choice,
(b) communication,
(c) machine,
(d) coordination.

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(d) standing plans
57. Short-term plans guides:

(a) lower level management,
(b) bridges gap between past and present
(c) forecasting
(d) environmental factors

(b) cost reduction,
(b) environment,
(c) resistance.
(d) technology
60. Planning is:

(a) looking ahead,
(b) guiding people,

(c) budgets,
(d) strategic
62. Programs are a complex of:

(a) budgets,
(b) goals & policies,
(c) rules,
[Hint: Programs are complex of goals, policies, rules, procedures, tasks.]
63. The limitations of planning are:

(a) proper environment,
(b) planning premises,
(c) wrong information,
(d) feasibility.
[Hint: Wrong information and time involved are the limitations of planning.]
64. What are the three levels of planning?

(a) Operational, intermediate and strategic
(b) Headquarters, divisional and local
(c) Top, middle and bottom
65. All of the following would be steps or concerns in the process of strategic planning except:
(a) Designing a sound business portfolio.
(b) Checking to see if an advertising spot had been run in its allotted time slot.
(c) Setting supporting objectives.
(d) Defining a clear company mission.
66. Identify the best definition of planning.

(a) An integrated process in which plans are formulated, carried out and controlled.
(b) The core activity of planners and planning departments.
(c) Setting an organisation's objectives and the means of reaching them.
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(d) Devising ways of achieving the objectives of an organisation.
67. Budget refers to

(a) Planned target of performance
(b) Steps of handling future activities
(c) Systematic action and allocation of resources
(d) Statement of expected results expressed in numerical terms

69. Which of the following is not a technique of planning?

(a) Budgeting
(b) Balanced score card
(c) PERT CPM
(d) Management by Objectives.
70. plans have clearly defined objectives

(a) Directional
(b) Flexible
(c) Specific
(d) Standing.
71. Which one of the following does not fall under qualitative forecasting method?
(a) Life cycle analogy
(b) Moving average methods
(c) Judgmental methods
(d) Delphi method
72. For which of the following situation(s) is the market research method of forecasting suitable?
(a) When a firm is planning moderate changes on product innovations
(b) When a firm is market testing one of its new offerings
(c) when a firm is working with stable technology, planning moderate changes on product innovations or market
testing one of its new offerings.
(d) when a firm is planning moderate changes on product innovations and market testing one of its new offerings.
73. Which of the following forecasting method is suitable for launching new products?
(a) Moving average methods
(b) Exponential smoothing
(c) Causal models
(d) Judgmental methods
74. Which of the following method(s) is(are) suitable for forecasting the demand of a product?
(a) Delphi method
(b) Market research
(c) Delphi method and judgmental method
(d) Market research and judgmental method
75. Qualitative forecasting methods include

(a) delphi
(b) Panel of experts
(c) (a) and (c)
(d) (a) and (b)
76. Forecasts
(a) become more accurate with longer time horizons
(b) are rarely perfect
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(c) are more accurate for individual items than for groups of items
(d) all of the above
77. One purpose of short-range forecasts is to determine

(a) production planning
(b) inventory budgets
(c) research and development plans
(d) job assignments
78. Forecasts are usually classified by time horizon into three categories
(a) short-range, medium-range, and long-range
(b) finance/accounting, marketing, and operations
(c) strategic, tactical, and operational
(d) exponential smoothing, regression, and time series
79. A forecast with a time horizon of about 3 months to 3 years is typically called a
(a) long-range forecast
(b) medium-range forecast
(c) short-range forecast
(d) weather forecast

(a) planning,
(c) training,
(d) selection

(a) common purpose,
(b) corruption,

(b) plans,
(d) environment.


85. The structure of organization includes:

(a) identification and classification of required activities,
(b) informal organization,
(c) establishing enterprise objectives,
(d) authority relationships.
86. The degree to which an organization relies on rules and procedures to direct the behaviour of employees
is:
(a) complexity,
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(b) formalization,
(c) centralization,
(d) motivation.

(a) an individual,
(b) position,
(c) relationship,
(d) control
88. Delegation is:

[Hint: Delegation is the act of granting of conferring something and the term authority means right to command.]

90. Defective delegation:

(a) hampers coordination
(b) size of the organization,
(c) establish proper controls,
(d) establish sources of powers.
91. Indicate which of the following is NOT among the six main types of organization structure–
(c) Committees
(d) Department
92. Organisattion structure is primarily concerned with and of tasks and authority.
93. Line organization is also known as organization.

(a) Scalar
(b) Chain
(c) Matrix
(d) Project
94. 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.
95. 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
96. The foundations of ‘behavioral theory of organization’ were laid down by

conducted by
(a) Structural experiments,Gullick
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(b) Bethlehem steel corporations, Mooney
(c) Hawthrone experiments, Mayo
(d) The longwell coal mining study,Weber
97. The systems approach ?

(a) Emphasises the technical requirements of the organization and its needs
(b) Emphasises the psychological and social aspects
(c) Encourages the managers to view the organization both as a whole and as a part of larger
environment
98. The Contingency theory focuses on

(a) Situational variables
(b) Interrelationships
(c) Groups and human behavior
(d) Economic needs of workers
99. is attributed with developing the scientific management perspective.

(a) Elton Mayo
(b) Robert Owens
(c) Frank Gilbirth
(d) Frederick Taylor
100. provides a focus and direction for formulating strategy to achieve organizational
objectives.
(a) Management by objectives
(b) Strategy by objectives
(c) Management by strategy
(d) Strategic planning model.
101. refers to changes implemented by an organization due to pressure by external forces.

(a) Unplanned change
(b) Reactive change
(c) Proactive change
(d) Revolutionery change.
102. Selection devices must:

(a) be explained,
(b) match the job in question,
(c) to be cost-effective
103. The popular on-the-job training methods include:

(a) job rotation,
(b) classroom lectures,
(c) films.
(d) description and displays
[Hint: On-the-job training methods allow the workers to work in a realistic work environment and gather experiences.]
104. Need refers to:

(a) control information and performance review,
(b) key result areas and statement of objectives,
(c) agree what you expect from me,
[Hint: Need states agree what you refer from me and give me an opportunity to perform.]
105. Staffing refers to:

(a) measuring performance,
(b) managing the positions,
(c) management in action,
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(d) making strategic plans.
[Hint: Staffing refers to appointing the right person for the right job.]
106. Non-financial incentives have many things to do with:

(a) Directing,
(b) Motivation,
(c) Planning,
(d) organising.
107. 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.]
108. HRD refers to:

(a) remuneration,
(b) development,
(c) controlling,
(d) planning
109. Recruitment covers:

(a) selection,
(b) job analysis,
(c) time,
[Hint: Recruitment covers job analysis, job design and job descriptions.]
110. Training is the process of:

(a) motivation
(b) increasing knowledge and skill
(c) testing.
(d) employee recommendations.
111. 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.]
112. What is the meaning of the acronym HRM?

(a) Humane Resource Management.
(b) Humanistic Resource Management.
(c) Human Resource Management.
(d) Human Relations Management.
113. 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.
114. 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.
115. Which of the following is not a selection technique?

(a) Performance appraisal
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(b) Ability test
(c) Psychometric testing
(d) Interviews
116. 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
117. Job evaluation is conducted to develop

(a) Compensation package
(b) Training modules
(c) Organisational grapevine
(d) Rules and policies.
118. 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.
119. 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.
120. 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.
121. Direction refers to:

(a) planning,
(b) organizing,
(c) driving,
(d) staffing
122. 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,
123. The characteristics of direction include:

(a) guiding,
(b) motivating,
(c) planning,
(d) performance appraisal
124. Direction is a:
(a) discrete process,
(b) continuous process,
(c) circular process,
(d) supervisory process
125. The principles of direction do not include:

(a) to have a thorough knowledge about the terms to bind the employees and the organization,
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(b) to remove the inefficient employees,
(c) labour turnover,
(d) to have an effective communication superior and his subordinates.
126. 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.
127. 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.]
128.
The sketch shows the process of communication from A to B. What labels apply to the arrows that cross in the
centre?
(a) Stimulus; response
(b) Transmission; feedback
(c) Feedforward; feedback
(d) Encoding; decoding
129. 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.
130. 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
131. 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.
132. To decode a message is to

(a) translate ideas into code.
(b) reject a message.
(c) evaluate a message.
(d) interpret a message.
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133. 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.
134. 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.
135. Feedback can come in the form of

(a) nonverbal communication only.
(b) verbal communication only.
(c) environmental noise.
(d) verbal and nonverbal listener responses.
136. 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.
137. 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.
138. An example of a communication channel is

(a) face-to-face conversation.
(b) noise.
(c) feedback.
(d) context.
139. 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
140. Which of the following is an example of a nonverbal message?

(a) Eye contact
(b) Yelling
(c) Mumbling
(d) Jargon
141. 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.
142. 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.
143. Learning to communicate with others is key to

(a) establishing rewarding relationships.
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(b) never being misunderstood.
(c) eliminating all of your listeners' physiological noise.
(d) winning the approval of everyone around you.
144. Encoding is important because it

(a) guarantees that one's message will be decoded.
(b) encourages listener feedback.
(c) eliminates noise.
(d) Produces messages.
145. 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?
(b) Downward communication
(d) Diagonal communication.
146. Control is a function aimed at:

(a) economic development,
(b) staffing,
(c) organizational development,
(d) planning
147. Control is a:
(a) static activity,
(b) plan,
(c) pervasive function,
148. The objective of control is:

(a) take corrective actions,
(b) make plans,
(c) prepare manpower planning,
(d) influence and persuasiveness,
149.
In the sketch of the planning and control cycle, what do the arrows X and Y indicate?
(a) (X) Review plans, (Y) review implementation of plans.
(b) (X) Alter plans; (Y) alter implementation of plans.
(c) (X) Restart the planning process; (Y) confirm existing plans.
(d) (X) Proceed with normal planning review; (Y) intervene urgently in current action.
150. Detecting irregularities is possible through:

(a) controlling,
(b) staffing,
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(c) decision-making,
(d) planning.
151. Strategic control is implemented with:

(a) micro perspective,
(b) department perspective,
(c) macro perspective,
(d) motivational perspective
152. Deviation is a term used in:

(a) controlling
(b) motivation
(c) directing
(d) staffing
[Hint: Deviation is the term used when the actual performance is not equal to the standard performance.]
153. Controlling plays an important role in helping:

(a) increase the costs,
(b) fixing standards,
(c) identify opportunities,
(d) time management
154. Difficulty in controlling the external factors is a drawback for:

(a) controlling
(b) motivation
(c) staffing
(d) organising
155. Effective control requires:

(a) flexibility
(b) rigidity
(c) high cost
(d) high time
156. The standard performances need to be adjusted after measuring with:

(a) actual performances
(b) costs
(c) time involved
(d) external factors
[Hint: The actual performances should be measured with standards and the standard performances need to be adjusted
through controlling techniques and review procedures.]
157. The process of monitoring performance monitoring it with goals and correcting any significant deviations
is known as
(a) Planning
(b) Organising
(c) Leading
(d) Controlling.
158. Which of the factors listed below is not a reason for decision making in organizations being a complex
process?
(a) People have to make decisions in a historical context
(b) Several stakeholders will have an interest in the decision
(c) Factors in the current context of the organization affect the decision
(d) Modern information systems enable people to evaluate a range of possible outcomes.
159. The overall process of decision making in, for example, staff selection includes which of these stages?
(a) Deciding which candidate to appoint
(b) Identifying the need for a new member of staff
(c) Agreeing the job specification
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160. A solution to a problem that is arrived at through an unstructured process of decision making is called a:
(a) Bounded rationality
(b) Programmed decision
(c) Non-programmed decision
(d) Uncertainty
161. As a manager moves to higher positions in an organisation the ability to make

becomes important.
(a) Programmed; less
(b) Non-programmed; more
(c) Non-programmed; less
(d) Programmed; much more
162. Decision making situations can be categorized along a scale which ranges from:
(a) Certainty to risk to uncertainty to ambiguity
(b) Certainty to uncertainty to risk
(c) Certainty to risk to uncertainty
(d) Uncertainty to certainty to risk
163. Maslow in his hierarchy has not considered:

(a) psychological needs,
(b) security needs,
(c) wealthy needs,
(d) existence needs.
164. The features of leadership do not include:

(a) representation,
(b) initiation,
(c) planning,
(d) motivation
165. 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,
166. 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.
167. 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.
168. Another contingency model of leadership is the path-goal theory. This suggests that subordinates will see
leadership behaviour as a motivating influence if:
(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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169. 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.
170. 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
171. 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.
172. Which of the following is a leadership trait?

(a) Dominance
(b) Energy
(c) Cognitive ability
(d) All responses are leadership traits
173. 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.
174. Maslow and Herzberg are two examples of theories of motivation.

(a) process
(b) content
(c) expectancy
(d) equity
175. 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.
176. 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.
177. 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.
178. 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
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(d) Theory A
179. Which step in Maslow's Hierarchy of Needs Theory deals with achieving one's potential?
(a) Esteem
(b) Physiological
(c) Self-actualization
(d) Social
180. Which of the following would be classified by Herzberg as a hygiene factor?

(a) Achievement
(b) Promotion
(c) Responsibility
(d) Company policy
181. 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
182. 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
183. 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
184. Theory X suggests that employees:

(a) Like their manager
(b) Dislike work
(c) Dislike their manager
(d) Like work
185. 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
186. As a well-educated and highly esteemed businesswoman, Delores feels she has accomplished a great deal in her
life. She decides that she would like to give back to the community, so she makes a sizable endowment to the local
conservatory. She is also using her professional influence to draw the public's attention to the needs of children who
have cancer. Abraham Maslow would probably say that Delores has reached the stage of his need hierarchy.
(a) esteem
(b) cognitive
(c) aesthetic
(d) self-actualization
187. Which of the following statements is false about the hierarchy of needs theory (Maslow)?
(a) Chronic frustration of needs has no ill effects
(b) The next higher-level need can become important, while a lower level is only partially satisfied
(c) Needs are not the only basis of human behavior
(d) A satisfied need is no longer a motivator
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188. Each of the following statements about the hierarchy of needs theory (Maslow) is true except
(a) A satisfied need does not motivate behavior
(b) People progress through the hierarchy in the same order without exception
(c) Behavior can focus on satisfying more than one need at a time
(d) The environment can affect behavior
189. Which of the following is false about motivator — hygiene theory (Herzberg)?
(a) Motivators include achievement and the work itself
(b) Empirical research strongly supports the theory
(c) Dissatisfiers and satisfiers fall on two different continua
(d) Company policies are a hygiene factor
190. Contingency theory 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 situations
(c) There is a single style of leadership appropriate to all managers
191. What does ERG stands for

(a) Effective, readiness and growth
(b) Expectancy, real and exist
(c) Existence, relatedness and growth
(d) Excellent relationship and growth.
192. Theory X suggests that employees

(a) Dislike work
(b) Dislike managers
(c) Like work
193. Changes in behavior as a result of observation and manipulation of conditions in an environment are termed:
(a) the Hawthorne effect
(b) group dynamics
(c) social influence
(d) sociometry.
194. Members within a group that share similar experiences and feelings are known to have:
(a) process
(b) universality
(c) content
(d) conflict.
195. An important factor of the preplanning stage in group dynamics is determining what the group is to
accomplish; this is known as .
(a) goal setting
(b) cohesion
(c) clarity of purpose
(d) group orientation
196. groups have members who have similar presenting problems or are similar in gender,
ethnicity, or social background
(a) Heterogeneous
(b) Ideal
(c) Dynamic
(d) Homogeneous
197. Role is a conflict between the role an individual has outside the group and the role
he or she is expected to have in the group.
(a) collision
(b) transition
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(c) confusion
(d) incompatibility.
198. Which one of the following characteristics is not necessarily true about groups?
(a) Group members are interdependent
(b) Groups have two or more members
(c) Groups have assigned goals
(d) Groups interact.
199. What sort of groups is defined by the organization’s structure?

(a) informal
(b) task
(c) friendship
(d) formal
200. 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
201. 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
202. 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.
203. Each statement below is true about conflict and conflict management in organizations except
(a) Conflict management includes both increasing and decreasing conflict
(b) Conflict is necessary for organizational survival
(c) Conflict management is not a basic management responsibility
(d) Conflict includes interactions in which one party opposes another party.
204. Which of the following statements is false about functional and dysfunctional conflict in
organizations?
(a) Conflict is dysfunctional when it is lower than a group requires for reaching its goals
(b) Conflict management does not involve maintaining conflict at functional levels
(c) Conflict that is functional in one group can be dysfunctional in another group
(d) Dysfunctionally high conflict can reduce trust.
205. All but one of the following statements accurately describe aspects of levels and types of conflict in
organizations. Which statement does not?
(a) Intraorganization conflict includes all types of conflict between organizations.
(b) Interpersonal conflict is conflict between two or more people.
(c) Intergroup conflict is conflict between two or more groups.
(d) Intrapersonal conflict is conflict that occurs within a person.
206. Each statement below is true about conflict management except

(a) Innovative products or services require a higher desired conflict level than more routine products or services
(b) If conflict in a work unit is dysfunctionally low, the manager tries to increase conflict
(c) A manager's tolerance for conflict can affect the manager's perception of desired conflict levels in a workgroup
(d) Desired conflict levels do not vary from one group to another and for the same group over time.
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207. Which of the following is false about reducing conflict?
(a) Compromise uses negotiation to reduce conflict. It splits the differences between the parties in conflict
(b) Problem solving usually does not find a conflict episode's root causes
(c) Avoidance prevents a person from facing a conflict episode
(d) A superordinate goal is a goal desired by all parties to the conflict but not reachable by any party alone.
208. Which of the following does not increase conflict in organizations?

(a) Superordinate goal
(b) Devil's advocate
(c) Heterogeneous groups
(d) Organizational culture
209. Which of the following is false about ethical issues in conflict in organizations?
(a) Variation in optimum conflict levels among countries
(b) Subtle methods of increasing conflict
(c) Intrapersonal conflict from requests for immoral acts
(d) Conflict higher than a person's tolerance level
210. One of the advantages of conflict is that it forces you to examine problems and work towards a potential
.
(a) Solution
(b) Outcome
(c) Experience
(d) Relationship
211. Conflict that refers to a disagreement among connected individuals is

(a) Interpersonal
(b) Intrapersonal
(c) Friendly conflict
(d) Negative conflict
212. The first stage of conflict resolution is to

(a) Chose a solution
(b) Define the problem
(c) Think through possible solutions
(d) Analyse the problem
213. Which of the following is conflict resolution skill?

(a) Accomodating
(b) Passive listening
(c) Active listening
(d) Avoiding
214. Who considered organization to be similar to the architectural plan of a building?

(a) Fayol
(b) Weber
(c) Newman
(d) Taylor
215. Functional foremanship is the concept underlying the following organization

(a) Matrix
(b) Functional
(c) Product
(d) Divisional
216. Which nature of organization structure is suitable for aircraft manufacture, aerospace/
construction, consultancy etc?
(a) Project
(b) Matrix
(c) Functional
(d) Line
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217. Which management principle does matrix organization violate?
(b) Unity of Direction
(d) Centralization
218. A rapidly changing adaptive temporary system of a group of people with diverse professional skills are
known as
(b) Staff organization
(c) Matrix organization
(d) Free form organization
219. Free form organization is more suitable in..........................................environment

(a) dynamic
(b) stable
(c) rigid
(d) none of these
220. A concern having textile, chemicals, plastics fertilizers follow departmentation based on
(a) process
(b) product
(c) functions
(d) geographical areas
221. The act of entrusting subordinates with the same power that are of the superior is termed
(b) Centralization
(c) Delegation
(d) Departmentation
222. applies to the systematic delegation of authority in an organization-wide context

(a) Delegation
(b) Decentralization
(c) Centralization
223. Authority should be commensurate with responsibility is the best way to achieve
(b) Communication
(c) Control
(d) Effective delegation
224. 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
225. Grapevine is another term used to describe

(d) Project organization
226. The unofficial and social pattern of human interactions is observed in

(d) None of these
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227. 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
228. A suitable basis of departmentation is decided considering

(a) Specialization of work
(b) Customers
(c) Control
(d) Top management
229. Organization theory is predominantly and in nature

(a) descriptive and normative
(b) normative and predictive
(c) exploratory and descriptive
(d) descriptive and predictive
230. Machine theory has been popularized as

(a) Scientific Management
(b) Administrative Management
(c) Bureaucracy
(d) None of these
231. The concept of span of control was propounded by

(a) Graicunas
(b) Fayol
(c) Taylor
(d) Mc Gregor
232. Blake and Mouton propounded the concept of

(a) Tri dimensional theory
(b) Bureaucracy
(c) Contingency
(d) Managerial grid
233. The Latin term “persona” is used to describe

(a) perception
(b) personality
(c) attitude
(d) learning
234. Being outgoing, talkative, sociable, assertive indicated which personality dimention
(a) Agreeableness
(b) Emotional stability
(c) Extroversion
(d) Openness to experience
235. An individual’s view of reality is

(a) Selection
(b) perception
(c) interpretation
(d) organisation
236. The tendency of judging people on the basis of the characteristics of the group to which they belong is
termed
(a) attribution
(b) projection
(c) stereotyping
(d) inference
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237. The law of exercise in learning is based on
(a) classical conditioning
(b) operant conditioning
(c) Social learning
(d) cognitive learning
238. Negative reinforcement involves the threat of

(a) Extinction
(b) Punishment
(c) Criticism
(d) None of these
239. According to MASLOW’S Hierarchy of needs theory, human needs are to be arranged in the
following hierarchy of importance,
(a) Physiological needs>social needs>safety needs>esteem needs > self actualisation needs
(b) Physiological needs>safety needs>esteem needs>social needs > self actualisation needs
(c) Safety needs>physiological needs>social needs>esteem needs > self actualisation needs
(d) Physiological needs>safety needs>social needs>esteem needs > self actualisation
240. Douglas McGregor’s theory X and Theory Y of motivation, proposed two distinct views of
human beings,
(a) Satisfied and dissatisfied
(b) Optimistic and pessimistic
(c) Positive and negative
(d) Happy and sad
241. Which of the following is not an assumption according to theory X,

(a) Employees inherently dislike work and, whenever possible will attempt to avoid it.
(b) Since employees dislike work, they must be coerced, controlled, or threatened with punishment to
achieve goals.
(c) Employees will avoid responsibilities and seek formal direction whenever possible.
(d) Most workers place self actualisation above all other factors associated with work and are highly
ambitious.
242. According to Herzberg’s motivation hygiene theory, the opposite of satisfaction

is,
(a) Dissatisfaction
(b) No satisfaction
(c) No dissatisfaction
243. Victor vroom’s expectancy theory of motivation focuses on three relationships: effort –
performance relationship, performance - reward relationship and
(a) Rewards- organisational goals relationship
(b) Performance – organisational goals relationship
(c) Rewards – personal goals relationship
(d) Performance – personal goal relationship
244. Management by objectives is not a new concept of motivation, it was originally proposed more than 45
years ago by,
(a) Peter Drucker
(b) Abraham Maslow
(c) David McClelland
(d) Frederic Herzberg
245. Which of the following is the second stage of group formation,

(a) Forming stage
(b) Initial integration stage
(c) Storming stage
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246. We all know that mainly two types of groups exist in an organisation namely formal and informal. But
what are the two types of formal groups in an organisation?
(a) Command groups and interest groups
(b) Interest groups and task groups
(c) Task groups and psychological groups
(d) Command groups and task groups
247. A well integrated group is able to disband, if required, when its work is accomplished. This stage is
known as,
(a) Disbanding stage
(b) Disintegration stage
(c) Adjourning stage
248. Organisational culture performs a number of functions within an organisation. Which of the following
is not one such function:
(a) It creates distinction between one organization and another.
(b) It facilitates the generation of commitment to one’s individual self interest only
(c) It conveys a sense of identity for organisation members
(d) It enhances social system stability.
249. The are perspectives of motivation that identify specific needs that energize behavior.
(a) content theories of motivation
(b) process theories of motivation
(c) equity theory and OB mod theory
(d) expectancy theories
250. is attributed with the development of the Two-Factor Theory of motivation.
(a) Abraham Maslow
(c) Frederick Herzberg
(d) Stacy Adams
251. Hygiene factors are similar to the needs identified by the Hierarchy of Needs.
(a) higher order
(b) three-tiered
(c) lower order
252. Which of the following is a strategic way in which employees strive to reduce inequity?
(a) Focus specifically on the behavior in question and attempt to alter it.
(b) Maintain the same comparison person as before.
(c) Changing their inputs and/or outcomes
253. Which theory is considered to deal with consequences?

(a) Reinforcement Theory
(b) Two-Factor Theory
(c) Equity Theory
(d) Hierarchy of Needs Theory
254. Which of the following is/are a recommendation(s) to prevent the potential side effects of
punishment?
(a) Focus specifically on the behavior in question.
(b) Always punish in private.
(c) Specify alternative behaviors that will prevent mistakes from being repeated.
255. Which motivation theory focuses on establishing future performance targets?

(a) Goal theory
(b) Reinforcement theory
(c) Equity theory
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256. Jackson is a line worker for the local clothing manufacturer. Even though he does not possess an official title
or a private office, Jackson is more than willing to give his complete dedication to assisting the organization in
achieving its mission of producing a quality product. This willingness to pursue an organizational goal is a
demonstration of .
(a) motivation
(b) positive reinforcement
(c) goal commitment
(d) goal setting
257. Which of the following is/are suggested for a successful management by objectives program?
(a) Establish a time frame for achievement
(b) Establish performance targets
(c) Prioritize goals
258. Which theory of motivation starts with an assumption that employees are rational?
(a) Goal setting theory
(b) Expectancy theory
(c) Reinforcement theory
(d) Herzberg's Two-Factor theory
259. The desired "performance” of skill acquisition is attributable to .

(a) expectancy theory
(b) reinforcement theory
(c) skill-based pay programs
260. Wide range of abilities and attributes possessed by people are called as
(a) Management
(b) Human Resources
(c) Entrepreneur
(d) Intreprenuer
261. The focus of Human Resource Management revolves around

(a) Machine
(b) Motivation
(c) Money
(d) Men
262. Quality goals require alignment with

(a) Production
(b) Human Resources
(c) Finance
(d) Purchase
263. Demand for human resources and management is created by

(a) Expansion of industry
(b) Shortage of labour
(c) Abundance of capital
(d) Consumer preferences
264. Union function arises as a result of employees

(a) Problem of communication
(b) Longing for belonging
(c) Dissatisfaction
(d) Change in technology
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265. Human Resource Management is primarily concerned with
(a) Sales
(b) Dimensions of people
(c) External environment
(d) Cost discipline
266. Human Resource Management aims to maximize employees as well as organizational

(a) Effectiveness
(b) Economy
(c) Efficiency
(d) Performativity
267. The difference between human resource management and personnel management is
(a) Insignificant
(b) Marginal
(c) Narrow
(d) Wide
268. Human Resource Management function does not involve

(a) Recruitment
(b) Selection
(c) Cost control
(d) Training
269. Which one is not the specific goal of human resource management?
(a) Attracting applicants
(b) Separating employees
(c) Retaining employees
(d) Motivating employees
270. Identify the top most goal of human resource management

(a) Legal compliance
(b) Competitive edge
(c) Work force adaptability
(d) Productivity
271. To achieve goals organizations require employees

(a) Control
(b) Direction
(c) Commitment
(d) Cooperation
272. Human resource management helps improve

(a) Production
(b) Productivity
(c) Profits
(d) Power
273. The amount of quality output for amount of input means

(a) Productivity
(b) Production
(c) Sales increase
(d) Increase in profits
274. Responding to employees and involving them in decision making is referred to as

(a) Quality of work life
(b) Autonomy
(c) Empowerment
(d) Preaction
275. Within an organisation, leadership influence will be dependent upon the type of that the
leader can exercise over the followers.
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(a) Knowledge
(b) Power
(c) delegation
(d) friendship
276. Legitimate power is based on the subordinate's perception that the leader has a right to exercise influence
because of the leader's
(a) role or position within the organisation.
(b) expertise and knowledge.
(c) personal characteristics and personality.
(d) ability to punish or reward.
277. Needs such as training the group, setting standards and maintaining discipline, and appointing sub-leaders
may be called
(a) task functions.
(b) individual functions.
(c) work functions.
(d) team functions.
278. Contingency theories of leadership are based on the belief that

(a) there is a single style of leadership appropriate to all managers.
(b) there is no single style of leadership appropriate to all situations.
279. Another contingency model of leadership is the path-goal theory. This suggests that subordinates will see
leadership behaviour as a motivating influence if
(b) the necessary direction, guidance, training and support is provided.
(c) their effective performance will satisfy their needs.
(d) all the above.
280. Culture refers to

(a) gender equality.
(b) race or nationality.
(c) the specialized lifestyle of a group of people.
(d) genetic similarities.
281. The transmission of culture from one generation to another is called

(a) culture shock.
(b) acculturation.
(c) individualistic.
(d) enculturation.
282. The process by which one learns the norms of a culture different from your native culture is
(a) culturation.
(b) acculturation.
(c) interculturation.
(d) multiculturalism.
283. Low power distance cultures include

(a) Iceland, Australia, Sweden and the U.S.
(b) Denmark, New Zealand, Sweden and the U.S.
(c) India, Morocco, Brazil and the Philippines.
(d) India, Brazil, China and the Philippines.
284. In a masculine culture, men are viewed as

(a) weak, marginal and ineffective.
(c) incredible, strong and assertive.
(d) strong, sensible and funny.
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285. In a feminine culture, both men and women are encouraged to be
(a) tender, modest and forgiving.
(c) modest, oriented to maintaining the quality of life and tender.
(d) tender, intelligent and forgiving.
286. An individualist culture promotes

(a) benevolence.
(b) tradition.
(c) competition.
(d) conformity.
287. Culture shock is

(a) a physiological reaction that can occur when experiencing a culture for the first time.
(b) the honeymoon period experienced when introduced to a different way of life.
(c) a psychological reaction that can occur when overexposed to a culture different from your own.
(d) a psychological reaction that can occur when experiencing a culture for the first time.
288. Intercultural communication occurs when

(a) those with different cultural beliefs, values or ways of behaving communicate with one another.
(b) different ethnic backgrounds meet.
(c) different cultural beliefs cause conflict.
(d) different races gather for conferences and seminars.
289. A low context culture is one where

(a) most of the information is explicitly stated in the verbal message.
(b) most of the information is nonexistent.
(c) most of the information is unspoken.
(d) most of the information is apparent.
290. A high context culture is one where

(a) much of the information is spoken.
(b) much of the information is in the context or in the person.
(c) most people use sign language.
(d) much of the information is unspoken.
291. In which type of culture is competition encouraged?

(a) Ethnocentric culture
(b) Selfish culture
(c) Individualist culture
(d) Collectivist culture
292. When people who study communication focus their attention on spoken symbolic interaction, their primary
interest is in which of the following?
(a) The unspoken body language that people use
(b) The way people use words to create common meaning
(c) All of the ways organisms (including non-human organisms) create meaning
(d) The unintentional behaviors that accompany speaking
293. The essential components of communication are

(a) source, message, interference, channel, receiver, feedback, environment, and context.
(b) symbols, understanding, communication, and communicant.
(c) symbols, understanding, purpose, ideas, opinions, nonverbals, and reaction.
(d) source, destination, interaction, and correlation.
294. The primary channels that individuals use to communicate with others are
(a) television and radio.
(b) voice mail, conventional mail, and e-mail.
(c) sight and sound.
(d) touch and tone of voice.
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295. A component in the communication process that we often send without being aware of it is
(a) verbal communication.
(b) an encoded message.
(c) feedback.
(d) a message sent via touch.
296. The context of an interaction includes two major components

(a) a business proposal and a personal friendship.
(b) the physical setting and the encoding.
(c) the supportive climate and the defensive climate.
(d) the physical setting and the psychological climate.
297. Which aspect of a message focuses on new information or ideas?

(a) channel
(b) content
(c) relationship
(d) Context
298. Which of the following is the definition of a speech act?

(a) People who share common attitudes toward speech
(b) An identifiable sequence of speech activity
(c) The purpose served by a given form of talk
(d) A clearly marked occasion that calls for speech
299. The idea that "communication is a process of adjustment" means that

(a) people have to learn each other's meanings for words, as well as their nonverbal behaviors during
communication.
(b) people will adapt to others' attitudes and speech while communicating.
(c) both the content and relational dimensions of a message can change during communication.
(d) people usually engage in complementary transactions during communication.
300. Which of the following approaches to Human Resource Management suggests that treating employees
with respect would improve employee satisfaction and help in achieving higher productivity?
(a) Technical Management Approach
(b) Human Accounting Approach
(c) Human Relations Approach
(d) Scientific Management Approach
301. Which of the following tests measure an individual’s ability to learn a given job, when adequate
(a) Interest tests
(d) Aptitude tests
302. Which of the following concept refers to attributing an appropriate value to the worth of human resources
in the organization?
(c) Human resource development
(d) Human resource management
303. The employment agencies in which fresh graduates and technicians in search of suitable employment
would first register themselves are known as
(c) Local agencies.
(d) Public or state agencies
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304. Which of the following cannot act as a force for change?
(a) Technology
(b) World politics
(c) Decreasing skills set
(d) Social
305. Activities related to change which are intentional and goal oriented are termed as?
(a) Planned change
(d) Change agent
306. If an organization used an outside consultant as opposed to an insider as change agent, the result would
probably be:
(a) More cautious and thoughtful.
(b) More reflective of the organization’s history and culture.
(c) More objective.
(d) Reflective of the fact that change agents must live with the consequences of their actions.
307. The most relevant disadvantage of using outside consultants as change agents is:
(a) The cost.
(b) Internal members do not accept external recommendations.
(c) They do not have to live with the repercussions after the change.
(d) They cannot offer an objective perspective
308. Resistance to change is positive since:

(a) It provides a degree of stability to behavior and productivity.
(b) Without some resistance, OB would take on characteristics of chaotic randomness.
(c) Resistance can be a source of functional conflict.
309. It is easiest for management to deal with resistance when it is:

(a) Overt.
(b) Subtle.
(c) Passive.
(d) Implicit.
310. Give an example for individual resistance to change?

(a) Group inertia.
(b) Structural inertia.
(c) Habit.
(d) Threat to expertise.
311. Which of the following is not a source of individual resistance to change?

(a) Habit
(b) Security
(c) Fear of the unknown
(d) Structural inertia
312. Which is not a source of organizational resistance to change?

(a) Structural inertia.
(b) Security.
(c) Limited focus of change.
(d) Threat to established power relationships
313. Which one of the following is not a tactic for dealing with resistance to change?
(a) Cooperation
(b) Manipulation
(c) Participation
(d) Negotiation
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314. Using covert influence to overcome resistance to change is called:
(a) Participation.
(b) Cooptation.
(c) Manipulation.
(d) Coercion.
315. The application of direct threats or force upon resisters is called:

(a) Power.
(b) Cooptation.
(c) Manipulation.
(d) Coercion.
316. Politics suggest that the impetus for change is more likely to come from:
(a) Outside change agents.
(b) Employees who are new to the organization.
(c) Managers slightly removed from the main power structure.
317. Who developed a three-step model for change that included unfreezing, movement, and refreezing?
(a) Mary Parker Follett
(c) Kurt Lewin
(d) Chester Barnard
318. is a change process based on systematic collection of data and then selection of a change action
based on what the analyzed data indicate.
(a) Organizational development
(b) Action research
(c) Sensitivity training
(d) Process consultation
319. William Marsteller once said that, "Communication is not just words, paint on a canvas, math symbols,
or the equations and models of scientists; it is the interrelations of human beings trying to escape , trying
to share experience, trying to implant ideas."
(a) Loneliness
(b) Compartmentalization
(c) Boredom
(d) Their own cages
320. Communication is the or accidental transfer of meaning.

(a) Unintentional
(b) Deliberate
(c) Strategic
(d) Conscientious
321. Intrapersonal communication is best defined as:

(a) The relationship level of communication.
(b) Interactions with a limited number of persons.
(c) Communication designed to inform or persuade audience members.
322. Public communication can best be defined as:

(a) Communication designed to inform or persuade audience members.
(b) The relationship level of communication.
(c) Interactions with a limited number of persons.
323. The communication process has several elements. Of these, what is the "content of a
communicative act?"
(a) Message
(b) People
(c) Channel
(d) Noise
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324. Feedback, one of the more important parts of the communication process, comes in many varieties. Of
those listed below, which is "a behavior enhancing response?"
(a) Positive feedback
(b) Negative feedback
(c) Internal feedback
(d) External feedback
325. There are two (2) crucial characteristics of communication. First, communication is dynamic; the elements of
the process are always affecting each another. Second, communication is unrepeatable and .
(a) Unrecognizable
(b) Irreversible
(c) Distinct
(d) Reversible
326. To become more adept at communicating with persons who are culturally different from ourselves,
we need to learn not only about their cultures, but about .
(a) Their various subcultures
(b) Our own culture
(c) Their religion
(d) Their language
327. Cultural pluralists advocate adherence to the principle of …...

(a) High-text communication
(b) Low-text communication
(c) Cultural relativity
(d) Ethnocentrism
328. Demographers tell us that will shape our country's future.

(a) Ignorance
(b) Diversity
(c) Individualism
(d) Conformity
329. To communicate interculturally, it is important to limit one's reliance on .

(a) Stereotypes
(b) Technology
(c) Friendship
(d) Media
330. It is important to the communication rules of other cultures to communicate

effectively.
(a) Debate
(b) Restructure
(c) Challenge
331. Which of the following is not a norm?

(a) Participation
(b) Hunger
(c) Positive Attitude
(d) Confidentiality
332. Which of the following is not an example of group influence on an individual?

(a) minority influence.
(c) social facilitation.
(d) social loafing.
333. Social facilitation is the term used to describe the tendency for the presence of others
(a) to affect our likelihood to help.
(b) to either enhance or impair performance.
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(c) to make a person act more extroverted.
(d) to make a person act more introverted.
334. What is the term used to describe when a person's identity and self-awareness are diffused by being in the
presence of a group, and a person might act in an unrestrained manners?
(a) deinstitutionalization.
(c) decineration.
(d) declination.
335. Group polarization occurs when

(a) members in a group interact, but, instead of changing their minds about a topic, they keep their
original ideas and strengthen those ideas.
(b) the group members do not interact, and the members reverse their decisions to the opposite point of view.
(c) social loafing is strong and deindividuation is weak.
(d) the members in a group interact, and based upon what they hear, they discard their original ideas in favor of the
other group members' ideas.
336. Which researcher coined the term "groupthink"?

(a) Leon Festinger
(b) Norman Triplett
(c) Irving Janis
(d) Irwin Yalom
337. Groupthink is used to describe

(a) the positive aspects that occur when a group works together.
(b) group dynamics that can interfere with group decision-making processes and can produce disastrous
results.
(c) when group members have in-jokes and give each other knowing glances.
(d) when group members are on the same wavelength and complete each other’s sentences.
338. Research on working in pairs, teams, or in groups has shown that

(a) collaborations are never productive.
(b) teamwork is never as good as working alone.
(c) group problem solving tasks always dilute original ideas.
(d) collaborations can be productive.
339. Minority influence can

(a) never sway the majority of the group members to the other point of view.
(b) steer other group members who hold the majority view over to the minority point of view.
(c) decrease creativity.
(d) increase superficiality.
340. It is through that group members can be inspired, motivated, and guided to be
successful and productive.
(a) fellowship
(b) sportsmanship
(c) Coercion
(d) leadership
341. Which style of leadership focuses on goals, standards, and organization?

(a) task leadership
(c) semantic leadership
(d) transformational leadership
342. Which style of leadership focuses on team building, conflict resolution, and morale?
(a) surrogate leadership
(c) transparent leadership
(d) task leadership
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343. The transformational leadership style
(a) Encourages group members to transform themselves into better people.
(b) Strives to change the group members' opinions by showing them a better way to think.
(c) changes opinions and attitudes without changing behaviors.
(d) Encourages and inspires group members to go above and beyond selfish interests and do what is best for the
common good of the group as a whole.
344. Social comparison theory is offered as one explanation for .

(a) group polarization
(b) pluralistic ignorance
(c) summation polarity
(d) group adhesion
345. Influencing others to work willingly toward achieving the firm’s objectives is:
(a) Organizing
(b) Motivation
(c) Leadership
(d) Management
346. Effective leadership reflects a balance of:

(a) Traits and skills
(b) Leadership styles or behaviors
(c) Situations and influences
(d) a and b
347. Traits or skills on which leaders differ from non-leaders include:

(a) Honesty and integrity
(b) Self-confidence
(c) Drive and the desire to lead
348. Sources from which leaders derive power include:

(a) Position held
(b) Authority to reward or punish
(c) Expert knowledge
349. A leader’s people oriented functions include:

(a) Reducing tension and boosting morale
(b) Making the job more pleasant
(c) Defending the group’s values, attitudes and beliefs
350. Leaders that focus on the individuality and personality needs of their employees and emphasize
building good interpersonal relationships are:
(a) Job centered
(b) Laissez-faire
(c) Employee oriented
(d) Consideration oriented
351. Leaders that focus on production and the job’s technical aspects are:
(a) Job centered
(b) Laissez-faire
(c) General
(d) Autocratic
352. The extent to which a leader lets followers make decisions themselves rather than making the decisions for
them is focused on by leadership styles.
(a) Laissez-faire and general
(b) Participative and autocratic
(c) Employee-oriented and job-centered
(d) Laissez-faire and close
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leaders solve problems and make decisions alone.
353.
(a) Laissez-faire
(b) Job-centered
(c) Autocratic
(d) Situational
354. Leaders who enlist the help of subordinates as a group to solve problems is:
(a) Situational
(b) Laissez-faire
(c) Participative
355. A leader uses when giving the individual or group the authority and responsibility
to make a decision.
(a) Consultation
(b) Laissez-faire
(c) Joint decision
(d) Delegation
356. Advantages of participative decision making include:

(a) Employees set higher goals for themselves
(b) More points of view are offered
(c) Participants buy into the final decision
357. Whether a leader is charismatic is determined by:

(a) Follower perceptions
(b) Context of the leadership situation
(c) Individual and collective need of followers
358. The “fix” style of leadership depends upon the:

(a) Nature of the task
(b) Capabilities of employees
(c) a and b
359. Identify the best definition of planning

(a) An integrated process in which plans are formulated carried out and controlled.
(b) Setting an organization’s objectives and the means of reaching them.
(c) Devising ways of achieving the objectives of an organisation.
(d) The core activity of planners and planning departments.
360. What is planning horizon?

(a) The distance ahead for the forecasts on which plans are made.
(b) The maximum time for which managers can make plans.
(c) The time between making a plan and putting it into effect.
(d) The time ahead for which there is no information.
361. What three problems commonly hindering successful planning did we identify?
(a) Procedures unsuited to change; negative organisational culture; poor interpersonal relationships.
(b) Lack of planning expertise; little top management support; misuse of planning specialists.
(c) An oversized planning department; poor co-operation between managers and planners; managers with little
time to gather information.
(d) Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends.
362. What is the more formal term

for what is known as 'Plan B'?
(a) A contingency plan.
(b) A convergence plan.
(c) A circumstantial plan.
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(d) A crisis plan.
363. What is the duty to act according to the authority that has been given?
(a) Professionalism
(b) Delegation
(c) Responsibility
(d) Probity
364. What are the three themes found in the choice of organisational divisions?
(a) Growth, specialization and co-ordination
(b) Products, customers and geography
(c) Hierarchy, level and chain of command
(d) Size, diversity and independence
365. In which organisational form are there dual or multiple lines of authority?
(a) Multidivisional
(b) Decentralised
(c) Network
(d) Matrix
366. Which concept does personality represent?

(a) zero concept
(b) whole concept
(c) full concept
(d) empty concept
367. Which determinant of personality determines the actual learning of a person?

(a) biological
(b) social
(c) culture
(d) situational
368. Who divided in two types -(tough minded and tender minded) to judge the personality?
(a) william james
(b) luthans
(c) spranger
(d) murray
369. What are the three kinds of personality according to Jung?

(a) extrovert, talkative, ambivert
(b) introvert lazy talkative
(c) extrovert, introvert, ambivert
(d) talkative,ambivert,lazy
370. Who classified people in terms of values?

(a) jung
(b) spranger
(c) luthans
(d) carl rogers
371. Alport makes a distinction between which two traits?

(a) a.common and uncommon traits
(b) uncommon and personal traits
(c) common traits and personal disposition
(d) d.tough traits and common traits
372. What are the two traits according to catell's trait theory?
(a) surface and base trait
(b) surface and source trait
(c) base and source trait
(d) source and end traits
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373. What are more traditional concepts of explaining human behavior?
(a) self theory
(b) unself theory
(c) trait and type theory
(d) type and self theory
374. Which theory studys the person-situation ineraction?

(a) a.self theory
(b) social theory
(c) c.trait theory
(d) type theory
375. Which of the following is a characteristics of leadership?

(a) a function of stimulation
(b) a process of leaning
(c) process of obeying commands
(d) process of getting motivated by others
376. Leadership is the procces whoose important ingridient is the exercised by the
leaders on the group members .
(a) friendship
(b) loyalty
(c) ctrust
(d) influence
377. According to louis A allen a leader is a person who other people.

(a) guides and directs
(b) socializes with
(c) participates with
(d) tolerates
378. What style does an autocratic leader follow?

(a) who consults with people in the group then give instructions
(b) One who gives order which must be obeyed
(c) who does not lead
(d) who does not take any responsibility
379. Why is autocratic leadership considered negetive?

(a) people are uninformed,insecued and afraid of the leader
(b) leader is extra friendly
(c) too much confusion arises
(d) very participative
380. A leader is one who gives instruction only after consulting the group.
(a) democratic
(b) socialist
(c) autocratic
381. A leader avoids power and leaves the group entirely to itself.
(a) socialistic
(b) democratic
(c) autocratic
382. A leader assumes his function to be fatherly.

(a) socialistic
(b) democratic
(c) paternal
383. System 1 management ,managers make what kind of decisions?

(a) employess personal life realted
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(b) work related
(c) socialy related
(d) related to society
384. Maslow suggests that needs are arranged in a series of levels, on the basis of importance.In this regard
which of the following are relevant to the Maslows Hierarchy of needs theory?
(a) A need once satisfied does not motivate an individual
(b) Once a need is satisfied it is replaced by another need
(c) Needs are same for all individuals
385. Leaders who inspire their followers to surpass their self interests for the good of the good of the
organization are called?
(a) Democratic leaders
(b) Autocratic leaders
(c) Transformational
(d) Transactional
386. The term used for defining the number of subordinates under a manager in an organization is called?
(b) Control of management
(c) Division management
(d) Departmentalization
387. Hygiene factors are similar to needs as identified in the Hierarchy of needs.
(a) Lower order
(b) Higher order
(c) 3Tiered
388. Which of the following theories are similar to Maslows need hierarchy in terms of how human behavior
and motivation are priorities in the workplace to maximize output?
(a) Theory X and Thoery Y
(b) Mc Clellands theory of human motivation
(c) Clayton Alderfers ERG theory
(d) Mmanagement by objectives theory
389. the ability to influence others that stems from the leaders characteristics
(a) Referent power
(b) Coersive power
(c) Legitimate power
390. Training is vital and necessary activity in all organisations. It plays a large part in determining the
and of the establishment
(a) Effectiveness and efficiency
(b) Effectiveness and smooth running
(c) Efficiency and smooth running
(d) Efficiency and success
391. Learning by doing is a type of

(a) Off the job training
(b) On the job training
(c) Internship taining
(d) Classroom training
392. Planning involves deciding in what is to be done, where , how and by whom it is to be
done
(a) Respect of
(b) Context of
(c) Advance
(d) Regard to
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393. Limitation of planning include :
(a) Inaccuracy
(b) Time consuming
(c) Rigidity
394. In the top-down approach takes the initiative in formulating major objectives,
strategies policies and derivatives
(a) Team
(b) Top management
(c) Supervisory management
395. The term budget is usually regarded as a tool of planning and control
(a) Operational
(b) Functional
(c) Systematic
396. PERT AND CPM are

(a) Network techniques useful for planning
(b) Tools of forecasting
(c) Both a and b
397. Organisational plans for handling non repetitive, novel and unique problems are known as
(a) Standing plans

398. Setting goals and objective is the first step in the process
(a) Planning
(b) Strategic planning
(c) Organising
(d) Staffing
399. Felt conflict is :

(a) When people perceive that conflictful conditions exist
(b) When conflict promoting conditions appear
(c) When people feel there is conflict
400. Coalition is a combination of two or more organisations who without losing their respective identities
work for a
(a) General purpose
(b) Specific purpose
(c) Common purpose
401. Internal sources of recruitment are

(a) Promotion
(b) Transfer
(c) Apprentices
402. Fundamentals of principles of scientific management include

(a) Rule of thumb
(b) Harmony in group
(c) A and b
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403. Unity of command means that a person should get orders and instructions from
(a) Multiple people
(b) Only one superior
(c) Any of his superior
(d) Peers
404. Advantage of forecasting include

(a) Important for planning
(b) Coordination of activities
(c) Achievement of objectives
405. Employee walk-ins is a type of

(a) Internal source of recruitment
(b) External source of recruitment
406. Lectures, conferences, role playing is a kind of

(a) On the job training
(b) Off the job training
407. Functions of a supervisor is to

(a) Communicate orders
(b) Enforce safety
(c) Handle grievances
408. PODSCORB stands for

(a) Planning organising staffing directing controlling reporting budgeting
(b) Planning organising staffing directing controlling rectifying budgeting
(c) Planning ordering staffing directing controlling reporting budgeting
(d) Planning organising staffing directing controlling recruiting budgeting
409. Decentralisation is a disadvantage due to

(a) Growth and diversification
(b) Lack of uniformity
(c) Executive development
410. Directing the employees includes

(a) Supervising employees
(b) Leading employees
(c) Both a and b
411. Need for planned change arises due to

(a) Market situation
(b) Technology
(c) Deficiency in existing system
412. Resistance to change is due to

(a) Status quo
(b) Fear of unknown
(c) Both a and b
413. Changes in environment can be

(a) Economic
(b) Sociological
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(c) Technological
414. Select the CORRECT sequence of organization behavior modification process

(a) Identify, Measure, Analyze, Intervene and Evaluate
(b) Analyze, Measure, Identify , Intervene and Evaluate
(c) Identify, Measure, Intervene, Analyze and Evaluate
415. Which of the following connectionist theories is used in associating an unconditioned stimulus with a
conditioned one to get a response which is conditioned?
(a) Classical conditioning
(b) Negative conditioning
(c) Instrumental conditioning
(d) Cognitive conditioning
416. The process by which people try to manage or control the perceptions formed by other people
about themselves is called :
(a) perceptual management. .
(b) impression management.
(c) group management.
(d) perceptual grouping
417. Which of the following perception sub processes involves, making note of the stimulus received
from the environment by an individual?
(a) Sensation
(b) Interpretation
(c) Registration
(d) Confrontation
418. Creating a general impression about an individual based on a single characteristic, such as intelligence,
appearance sociability etc. is known as
(a) stereotyping
(b) halo effect.
(c) attribution.
(d) parity effect.
419. Which of the following factors influence perception?

(a) Power, Affiliation and Motivation
(b) Needs, Drives and Incentives
(c) The Perceiver, the Target and the Situation
(d) The Perceiver, the Risk Taking and the Incentives
420. Which of the following referent comparisons is used by an employee if he compares his experiences in
the present position with the experiences of those holding a similar position in another organization?
(a) Other-inside
(b) Self-inside
(c) Other-outside
(d) Self-outside
421. The valence is said to be zero when .

(a) the person prefers not attaining the outcome
(b) the person is not interested in the outcome
(c) the person is interested in the outcome
(d) both (a) and (b)
422. GAS means .

(a) general availability synapse
(b) general adoption syndrome
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(c) general adaptation syndrome
(d) general apprehensive syndrome
423. Stress included by stimulus is known as .

(a) stressmentor
(b) stresspusser
(c) stresseor
(d) stressor
424. Which of the following are the most important contributions in the field of organizational behavior
by Dr. Hans Selye?
(a) Estress and distress
(b) Eustress and distress
(c) Impstress and epstress
(d) Rule of thumb and unity of direction
425. Which of the following three stages of GAS is used for coping with the stress situation?
(a) Alarm stage, resistance stage and exhaustion stage
(b) Depreciation stage, material stage and tecometric stage
(c) Anxiety stage, appreciative stage and masmule stage
(d) Exiting stage, remotive stage and speculative stage
426. The psychological process of recollecting information and past experiences by an individual is referred to
as
(a) perception.
(b) learning. .
(c) cognition.
(d) motivation.
427. According to the Keith Davis equation,the potential performance of an individual is determi ned by his
(a) knowledge and skill.

(b) ability and situation.
(c) ability and motivation.
(d) both (a) and (c ).
428.
The Management Style adopted by some companies like IBM, Intel, HP etc. was a combination of both
American and Japanese styles. These organizations were referred to as
(a) theory x organizations.
(b) theory y organizations.
(c) theory z organizations.
(d) theory o organizations
429. Given 'O' represents human being, which of the following perspectives does S-O-
R model
represent best?
(a) Traditional
(b) Input and output
(c) Behavioral
(d) Attitude
430. Which of the following types of employees have high work ethics and are quality conscious?
(a) Young employees
(b) Middle aged employees
(c) Older employees
(d) Both (a) and (b)
431.
Which of the following are specialized cells that transmit information from one part of the body to another part of
the body?
(a) Neurons
(b) Blood cells
(c) Hormones
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432. Which of the following are certain projections that branch out from the neuron; and r eceive
information from other neurons?
(a) Fibers
(b) Axon
(c) Dendrites
(d) Synapse
433. How many parts can a nervous system be divided into?
(a) 5
(b) 9
(c) 3
(d) 2
434. The probability of a particular behavior being repeated, but by withdrawing an Undesirable
consequence, is termed as
(a) positive reinforcement.
(b) punishment.
(c) negative reinforcement.
(d) behavior modification.
435.
In which of the following leadership styles DOES the leader obtain relevant information from the subordinates and
then attempt to find the solution to the problem?
(a) Autocratic I
(b) Autocratic III
(c) Group I
(d) Autocratic II
436. Which of the following is NOT an effective supervisory practice?

(a) Avoid close supervision
(b) Promoting individual cohesiveness
(c) Promoting group cohesiveness
(d) Devoting more time in planning
437. In which of the following classification of conflicts DO people always try to maintain their image and
respect?
(a) Intergroup conflict
(b) Intragroup conflict
(c) Interpersonal conflict
(d) Intrapersonal conflict
438. Which of the following methods to manage inter group relations deals with a skilled person in resolving
disputes, promoting communication and establishing friendy relations between the conflicting parties?
(a) Task force
(b) Team
(c) Liaison role
(d) Resolving role
439. Which Fayol`s theory principle states that activities in an organization should be planned in a way
that they all come under one plan and are supervised by only one person?
(b) Unity of direction
(c) Discipline
(d) Scalar chain
440. What is referred to the selfperception of how well a person can cope with situations as and when they
arise?
(a) Self-esteem
(b) Self-efficacy
(c) Self-motivation
(d) Self-improvement
441. Match the following.
a. Extraversion (i) Creative and Innovative
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b. Agreeableness (ii)
Marketing, Public relations and Human resources
c. Conscientiousness (iii) Good natured, Co-Operative and Trusting
d. Emotional stability (iv) Organized, Self –disciplined and
Responsible
e. Openness’ to experience (v) Withstand stress and tend to be calm
(a) a(ii), b(iii), c(iv), d(v), e(i)
(b) a(iii), b(iv), c(ii), d(i), e(v)
(c) a(ii), b(i), c(iii), d(iv), e(v)
(d) a(iii), b(iv), c(v), d(ii), e(i)
442. That refers to the degree to which individual is practical in his approach, maintains emo tional distance
from others and believes ends justify means. Which of the following is this referred to?
(a) Self –Monitoring
(b) Risk taking
(c) Self – Esteem
(d) Machiavellianism
443.
This is concerned with the employee’s emotional attachment and involvement with the
organization. Which of the following represents organizational commitment?
(a) Normative commitment
(b) Continuance commitment
(c) Affective commitment
(d) Effective commitment
444.
According to Levinson, the maximum development in one’s personality takes place during
(a) age-thirty transition
(b) mid-life transition
(c) age-fifty transition
(d) late-adult transition
445. In which of the following, does the productivity of some people increase further, while for s ome the
productivity may remain stagnant?
(a) Exploration
(b) Maintenance
(c) Decline
(d) Existence
446. In which of the following, do attitudes provide a standard of reference which allows people to understand
and explain their environment?
(a) Adjustment-function
(b) Ego-defensive function
(c) Value-expression function
(d) Knowledge-function
447. Which of the following motives is learned or acquired over a period of time such as power,achievement
and affiliation?
(a) Affection motive
(b) Secondary motive
(c) Primary motive
(d) Stimulus motive
448. Which of the following theories does say that ‘motivation alone cannot ensure successfulperformance
of a task, the employee should have a clear perception of his role and the r equired skills and abilities’?
(a) Equity theory
(b) The Porter-Lawler model
(c) Attribution theory
(d) The continuum model
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449. Match the following approaches with the relevant components.
1. Classical approach a) Operations management
2. Behavioral approach b) Hawthorne studies
3. Quantitative approach c) Administrative management
4. Modern approach d) Quality management
(a) 1-(c), 2- (d), 3-(b),4-(a)
(b) 1-(c), 2- (a), 3-(b),4-(d)
(c) 1-(c), 2- (b), 3-(a),4-(d)
(d) 1-(c), 2- (d), 3-(a),4-(b)
450. Which of the following is the module of behavioral approach?

(a) Administrative management
(b) Group influences
(c) Management sciences
(d) The systems theory
451.
The study that focuses on reducing the unnecessary activities in work and thus reducing thefatigue and
wastage of time is known as :
(a) Time study.
(b) Fatigue study.
(c) Work study.
(d) Motion study.
452. What is meant by Unity of Command?

(a) Each employee should receive orders from a number of superiors
(b) Each employee should receive orders from one superior only
(c) Each employee should receive orders from Board of Directors
(d) Each employee should receive orders from subordinates
453. Which of the following principles is attributed to grouping members who belong to the same
department in an organization?
(a) Continuity
(b) Figure Ground
(c) Closure
(d) Proximity
454. The behavioral science that contributes ‘motivation’ to Organizational Behavior is

(a) Sociology.
(b) Political science
(c) Psychology.
(d) Anthropology.
455. Which of the following organizations does believe in providing lifetime employment to the
employees?
(a) American
(b) Japanese
(c) European
(d) Italian
456. Which of the following experiments revealed that there is some other variable beyond w age,
hours of work and working conditions that made a significant impact on productivity?
(a) Relay experiment
(b) Interview experiment
(c) Wiring experiment
(d) Illumination experiment
457. Law of Effect states that responses followed by pleasant consequences (are)
(a) less likely to be repeated.
(b) not at all repeated.
(c) lead to unpleasant consequence.
(d) more likely to be repeated.
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458. Observational learning is the essential component of , where learning
could occur through imitation of others.
(a) customary process
(b) habitual process
(c) modeling process
(d) routine process
459. A bright light, a strong odor or a loud noise are more likely to be noticed than a dim light, a weak odour
or a soft sound. Which of the following principles of attention is mentioned here?
(a) Intensity
(b) Moderation
(c) Repetition
(d) Replication
460.
In which of the following organizations are employees manipulative and not willing to take any risks?
(a) Model I
(b) Model II
(c) Type A
(d) Type B
461. Which of the following perspectives DOES attempt to explain human behavior with the S-O-B model?
(a) Traditional perspective
(b) Modern perspective
(c) Behavioral perspective
(d) Behavior as an input-output system
462. In which of the following perceptual processes are perceived objects are separated from their
general background by the perceiver?
(a) Figure-ground
(b) Perceptual Constancy
(c) Perceptual Context
(d) Perceptual Content
463. Which of the following theories DOES refer to the incompatibility that an individual may p erceive between two
or more of his attitudes, or between his behavior and attitudes?
(a) Cognitive Dissonance Theory
(b) Argyris` Immaturity to Maturity Theory
(c) Hall’s Career Stage Model
(d) Levinson`s Theory of Adult Life Stages
464. Which of the following is NOT the attribute of individual politicking?

(a) Pressure to perform
(b) Personality traits
(c) Background
(d) Experience
(b) Defining rules
466. Which of the following DOES emphasize that an individual should know about oneself, accept
responsibility for his actions and regulate any dysfunctional behavior?
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467. In which of the following leadership types DOES a leader give his subordinates challenging tasks and
higher responsibilities in order to develop them?
(a) Supportive leadership
(b) Accommodative leadership
(c) Participative leadership
(d) Achievement-oriented leadership
468. Which of the following DOES refer to the ability to modify or change people in general ways like changing
their performance and satisfaction?
(a) Power
(b) Authority
(c) Accountability
(d) Influence
469. Which of the following theories DOES state that leaders establish a special relationship with a small
group of subordinates, usually early in their interaction?
(a) LMX theory
(b) Path-goal theory
(c) Blake and Mouton theory
(d) Hersey and Blanchard’s theory
470.
Which of the following theories of organization DOES lay more stress on the environment and establish the
relationship between organizational structure and the environment?
(a) Contingency theory
(b) Ecological theory
(c) Learning theory
(d) Biological theory
471. In which of the following roles within an informal group a person is an aggressive achiever who makes the
team action-oriented?
(a) Monitor-evaluator
(b) Implementer
(c) Shaper
(d) Plant
472.
Which of the following DOES refer to the authority to take decision within one’s area of operations without
having to get anyone’s approval?
(a) Enrichment
(b) Enlargement
(c) Enhancement
(d) Empowerment
473. In which of the following referent comparisons DO employees compare their experience in the present
position with the experiences of those holding a similar position in the same organization?
(a) Self-outside
(b) Other-inside
(c) Self-self
(d) Self-inside
474.
Which of the following theories DOES state that leadership traits can be acquired with training and
experience?
(a) Great person theory
(b) Gestalt theory
(c) Subordinate theory
(d) Behavioral theory
475. Which of the following cognitive processes DOES occur in a state of mental disorder a nd is
characterized by illogical thought processes?
(a) Austic thinking
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(b) Daydreaming
(c) Sorting
(d) Pathological thinking
476. In which of the following roles within an informal group is a person a careful and Detailed examiner
who ties up loose ends?
(a) Complete-Finisher
(b) Resource Investigator
(c) Team worker
(d) Coordinator
477. Which of the following terms DOES refer to people drawing general impression about Others based on
a single characteristic, such as intelligence, aggressiveness, etc.?
(a) Attribution
(b) Stereotyping
(c) Halo Effect
(d) Primacy Error
478. In which of the following processes of power DOES the target find the agent attractive and Seek to
emulate his behavior?
(a) Internalization
(b) Externalization
(c) Acquaintance
(d) Identification
479. Which of the following disciplines DOES provide insights into the aspects of decision and
choice,factors that need to be considered while choosing the most suitable options?
(a) Political Science
(b) Anthropology
(c) Economics
(d) Ergonomics
480. Which of the following traits DOES refer to the extent to which a person is responsible and
achievement oriented?
(a) Extroversion
(b) Introversion
(c) Conscientiousness
(d) Agreeableness
481. Which of the following DOES refer to the equilibrium between the degree of dependency of the target
and the degree of power exercised by the agent?
(a) Balancing imbalance
(b) Maintaining imbalance
(c) Reacting to power
(d) Power balance
482. Which of the following DOES enable the employees to widen their interests and get inform ation relating
to recent developments in their field?
(a) Grapevine
(b) Gangplank
(c) Network
(d) Communication
483.
Which of the following DOES refer to the ability of an individual to analyze complex situations and to
rationally interpret the available information?
(a) Individual skills
(b) Technical skills
(c) Conceptual skills
(d) Group skills
484. Which of the following DOES refer to the quality of voice, volume, pitch, speed and non fluencies
used to convey a message?
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(a) Body language
(b) Para language
(c) Kinesics
(d) Expressions
485. Which of the following is the third step in the O.B. Mod Process?
(a) Identify
(b) Measure
(c) Intervene
(d) Analyze
486. Which of the following DOES refer to the degree to which an individual is practical in his
approach, maintains an emotional distance from others, and believes that ends justify means?
(a) Risk taking
(b) Locus of control
(c) Machiavellianism
(d) Self-monitoring
487. . Which of the following dimensions DOES refer to a leader considering employees as a means to achieve
goals and pay little or no attention to any problems that the employees may face?
(a) Development-oriented
(b) Production-oriented
(c) Training-oriented
488. Which of the following systems of management suggested by Likert is called exploitive-authoritative
style?
(a) Systems 1 management
(b) Systems 2 management
(c) Systems 3 management
(d) Systems 4 management
489. In which of the following changes, does the new state of things have a completely different
nature from the old state of things?
(a) Third order change
(d) Reverse order change
490. Which of the following is based on the assumption that there are two forces – driving
forces and
restraining forces that play a role in attaining a state of equilibrium in the organization?
(a) Abad’s model
(b) Lippitt`s approach
(c) Beckhard`s approach
(d) Force-field analysis
491. Which of the following approaches is based on the assumption that there exist one or more solutions to
a problem that could result in a win-win situation?
(a) Collective bargaining
(b) Individual bargaining
(c) Distributive bargaining
(d) Integrative bargaining
492. In which of the following leadership styles DOES the leader discuss the problem wit h his
subordinates and listens to their ideas and suggestions?
(a) Consultative II
(b) Consultative I
(c) Group II
(d) Participative II
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(b) Defining rules
494. Which of the following DOES emphasize that an individual should know about oneself, a ccept
responsibility for his actions and regulate any dysfunctional behavior?
495. Which of the following DO refer to the cognition of an individual that a certain mode of conduct or style of
behavior is socially preferable to the other modes of conduct or behavioral styles?
(a) Belief
(b) Norm
(c) Culture
(d) Value
496. Which of the following selection tests refer to testing the components such as reaso ning
judgment, memory and the power of abstraction?
(a) Intelligence tests
(b) Interest tests
(c) Aptitude tests
(d) Polygraph tests
497. Which of the following approaches treat the organizational goals and the employee ne eds as being
mutual and compatible?
(a) Human relations approach
(b) Human resources approach
(c) Classical management approach
(d) Modern management approach
498. Which of the following managerial functions of the human resource department involves
establishing an intentional structure of roles for people in an organization?
(a) Organizing
(b) Controlling
(c) Directing
(d) Planning
499. Which of the following concepts refer to the system of matching the available resources, either internally
or externally, with the demand that the organization expects to have
over a period of time?
(a) Human Resource Process
(b) Human Resource Performance
(c) Human Resource Planning
(d) Human Resource Information System
500. Which of the following do you think are interrelated and inter-dependent?
(a) Job satisfaction and productivity
(b) Job content and productivity
(c) Job specification and productivity
(d) Job description and productivity
501. Which of the following organizational structures reduce redundancy and enable free flow of i dea and
information among the employees?
(a) Tall organizational structure
(b) Flat organizational structure
(c) Project organizational structure
(d) Matrix organizational structure
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502. Which of the following managerial functions of the human resource department refers to the
measurement and rectification of activities to ensure that events conform to plans?
(a) Directing
(b) Staffing
(c) Controlling
(d) Organizing
503. Which of the following concept suggests that a worker is basically motivated by the mo netary gains and
that financial incentives alone could maximize the worker’s output?
(a) Economic man
(b) Time-motion
(c) Rule-of-the thumb
(d) Piece-rate
504. Which of the following provides the information on the current human resource available i n the
organization?
(a) Job evaluation
(b) Job design
(c) Job content
(d) Job analysis
505.
Which of the following techniques of downsizing does an organization adopt when the demand for their
products or services comes down, and the supply cannot be maintained at the existing levels?
(a) Outplacement
(b) Leave of absence without pa
(c) Work sharing
(d) Lay-offs
506.
Which of the following process serves the purpose of selling the organization to the candidate?
(a) Recruitment process
(b) Selection process
(c) Development process
(d) Training process
507.
Which of the following roles does the HR department play in advising the management, including the top
management on various people-related issues and communicating management decisions to the employees?
(a) A facilitator
(b) A regulator
(c) A specialist
(d) A controller
508.
Which of the following results in low employee turnover, low absenteeism, and low accident rates in shop floor
jobs?
(a) Induction
(b) Placement
(c) Stimulation
(d) Selection
509. Which of the following methods of dealing with surplus manpower refers to the techniq ue of getting
rid of ageing employees and infusing fresh talent into the organization?
(a) Outplacement
(b) Lay-offs
(c) Retrenchment
(d) Early/voluntary retirement
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510. If on falling sick your organization allows you to work from home provided you report to office once in a
week, which of the following concept is that?
(a) Flextime
(b) Telecommuting
(c) Working from home
(d) Telemarketing
511. A situation where there are more number of people available in the job market due to
mushrooming of management
Institutions, identify the environmental factorsthat determine the effectiveness of the recruitment program
.
(a) Law of land
(b) Situation in the labour market
(c) Reputation of organization
(d) Culture, social attitudes and beliefs
512.
Which of the following interviews refer to the interviewer selecting the questions to be asked and plans the
interview well in advance?
(a) Social interview
(b) Formal interview
(c) Stress interview
(d) Selection interview
513. Which of the following concepts refer to identifying and grooming an employee for a vacan cy that would
arise in the future?
(a) Career planning
(b) Performance planning
(c) Succession planning
514. Which of the following methods for determining the validity of a selection method refer to the
degree to which the validity of the selection method, established in one context, can be extended to other
‘primary contexts’?
(a) Legality
(b) Utility
(c) Reliability
(d) Generalizability
515. Which of the following roles is played by an HR Manager when training and develo pment activities
are planned and conducted and performance appraisals are done?
(a) The consultant
(b) The service provider
(c) The facilitator
(d) The auditor
516.
Which of the following level Human Resource Planning takes into consideration the changing market situation,
strategic plans of the organization and the technological changes anticipated at a macro level?
(a) Intermediate-level planning
(b) Operations planning
(c) Planning short-term activities
517. Which of the following refers to the obligation of a manager to carry out the duties assign ed to him?
(a) Authority
(b) Influence
(c) Power
(d) Responsibility
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518. Which of the following job specifications include stability, adaptability, flexibility and is co mmon across
most of the jobs?
(c) Group specifications
(d) Emotional and social specifications
519. Which of the following characteristics of a job refers to the degree to which the job makes an impact
on the lives or work of other people?
(a) Autonomy
(b) Feedback
(c) Task identity
(d) Task significance
520.
Which of the following characteristics of selection methods produces consistent results across different situations
and times?
(a) Legality
(b) Validity
(d) Reliability
521. Which of the following is the third step in the process of job enrichment?
(a) Providing scope for change
(b) Concentrating on motivational factors
(c) Changing the content of the job
(d) Making a list of changes
522. Which of the following steps in the process of job enrichment is succeeded by changi ng the content
of the job rather than changing employees?
(a) Making a list of changes and enrichment in job design
(b) Providing adequate training, guidance, encouragement and help
(c) Introducing the enriched job carefully, so that there is no resistance towar ds the
implementation of job enrichment programs.
(d) Administering corrective discipline
523.
Which of the following concept refers to the process of ascertaining qualifications, experience, skill,
knowledge of an applicant with the purpose of determining his/her suitability for a job?
(a) Staffing
(b) Introducing
(c) Induction
(d) Selection
524.
Which of the following approaches to Human Resource Management suggests that treating employees with
respect would improve employee satisfaction and help in achieving higher productivity?
(a) Scientific Management Approach
(b) Human Resource Approach
(c) Human Accounting Approach
(d) Human Relations Approach
525.
Which of the following tests measure an individual’s ability to learn a given job, when adequate training is given
and do not test the knowledge or proficiency possessed by the individual?
(a) Interest tests
(d) Aptitude tests
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526. Which of the following concept refers to attributing an appropriate value to the worth of human
resources in the organization?
(d) Human resource evaluation
527.
The employment agencies in which fresh graduates and technicians in search of suitable employment would first
register themselves are known as
(c) Public or state agencies
(d) Regional agencies.
528. Which of the following refers to the monetary and non-monetary benefits given to the employees during
their employment and these benefits are in no way connected to the employee’s performance?
(a) Fringe benefits
(b) Incentives
(c) Wage and salary administration
(d) Base salary
529.
Which of the following types of organization facilitates close supervision and provides for continuous
interaction between the supervisor and his subordinates?
(a) Flat organization
(b) Tall organization
(c) Vertical organization
(d) Matrix organization
530.
Which of the following concepts refer to identifying one’s career goals and formulating plans of reaching them
through various means like education and work experience?
(a) Career development
(b) Management development
(c) Human Resource Development
(d) Training
531.
Which of the following refers to the departments or employees that perform a support function and
contribute indirectly to the business of a firm?
(a) Staff function
(b) Line function
(c) Employee functions
(d) Organizational function
532.
Which of the following methods of job analysis refers to gathering all the job related information from
supervisors?
(a) Questionnaire method
(b) Expert method
(c) Observation method
(d) Technical conference method
533. Which of the following methods of job analysis describes jobs in terms of worker activities?
(a) Position analysis questionnaire
(b) Questionnaire method
(c) Technical job analysis
(d) Critical incident technique
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534. Which of the following measure the job related proficiency and knowledge of the applicants and is used to
select experienced candidates?
(a) Achievement tests
(b) Intelligence tests
(c) Aptitude tests
(d) Interests tests
535.
Which of the following operative functions include functions like job analysis, human resource planning,
recruitment, selection, placement and induction?
(a) Loaning
(b) Retention
(c) Employment
(d) Evaluation
536.
Kaivalya is the Human Resource Manager in TCS. He is efficient in the functions of payment that has to be
adequate, equitable and fair to the employees. It encompasses base salary, incentives, bonus and benefits and is
based on job evaluation. Which of the following functions is performed by Kaivalya?
(a) Employee relations
(b) Employment
(c) Compensation
(d) Performance Appraisal
537.
Which of the following types of selection interviews has no predetermined framework of questions and helps
the candidate remain comfortable during the course of the interview because the interaction tends to proceed
naturally?
(a) Panel interview
(b) Group interview
(c) Selection interview
(d) Unstructured interview
538.
Which of the following organization structures is characterized by flexibility, value for knowledge, low levels of
formalization, decentralized style of management and is more suitable for operating effectively in dynamic
environments?
(a) Organic structure
(b) Whole structure
(c) Inorganic structure
(d) Technical structure
539.
Which of the following tests is used to assess the leadership qualities, initiative, negotiating skills, communication skills
and decision-making skills of a candidate?
(a) Simulated situational tests
(b) Interest tests
(c) In-basket exercises
(d) Group discussions
540.
Which of the following characteristics of job specifications include the ability to make judgments, ability to
undertake research, creativity, teaching ability, maturity, selfreliance and the ability to be authoritative?
(a) Social specifications
(b) Collective specifications
(c) Mental specifications
(d) Behavioral specifications
541.
Which of the following methods for determining the validity of a selection method refers to the degree to which
the value provided by the selection method enhances the effectiveness of an organization?
Page 58
(a) Legality
(b) Reliability
(d) Utility
542. Which of the following characteristics of a job refers to the degree to which a job r equires
completion of a work, from the beginning to the end?
(a) Task significance
(b) Autonomy
(c) Task identity
(d) Feedback
543. Which of the following is the basic standard that any selection method should satisfy?
(a) Consistency
(b) Stability
(c) Legality
(d) Effectiveness
544. Which of the following is the third step in the process of human resource planning?
(b) Forecasting the quality and quantity of human resources
(c) Involving the line managers in determining human resource needs
(d) Matching the current human resources with the future requirement
545. Identify the second element in the selection process.

(a) Organizational objectives
(b) Job design and Job description
(d) Selection
546.
Which of the following steps in the process of selection is succeeded by initial screening interview?
(a) Analyzing the application blank
(d) Job offer
547.
Which of the following managerial functions involves coordination between different department to ensure maximum
utilization of all resources including human resources?
(a) Controlling
(b) Planning
(c) Leading
(d) Directing
548.
Which of the following types of organization refers to employees meeting together for a game of snooker and sharing
common ideas, interests and information?
(a) Flat
(b) Informal
(c) Technical
(d) Hybrid
549. Which of the following steps in the process of selection is preceded by reference checks?
(a) Preliminary interview
(d) Job offer
550.
Which of the following tests refer to the simulated office situation where the candidate has to respond to
letters, clear important documents schedule his/her meetings and make important
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business related decisions?
(a) In basket exercises
(b) Group discussions
(c) Personality tests
(d) Simulated situational tests
551. Which of the following refers to the extent to which an employee’s work meets his/her
professional needs?
(a) Quality of Work Life
(b) Total Quality Management
(c) Quality Circles
(d) Worker Productivity
552.
Which of the following refers to the departments or employees of a firm that perform the core activities and
contribute to its business directly?
(a) Staff functions
(b) Line managers
(c) Department functions
(d) Organization functions
553.
Which of the following approaches to job design states that the manager determines the best way of performing
the job?
(a) Human Resource Approach
(b) Sociotechnical Approach
(c) Job Characteristics Approach
(d) Engineering Approach
554. Which of the following is the second step in the process of human resource planning?
(b) Involving the line managers in determining human resource needs
(c) Matching the current human resources with the future requirement
(d) Developing an action plan to meet future requirements
555.
In which of the following techniques of dealing with surplus manpower DO workers agree to be paid less and
put in fewer hours of work to avoid their colleagues being retrenched?
(b) Work sharing
(c) Loaning
(d) Leave of absence without pay
556.
Which of the following enables managers to act, exert influence and make decisions in carrying out their
responsibilities?
(a) Power
(b) Accountability
(c) Authority
(d) Responsibility
557. Which of the following job specifications include analytical ability; data interpretation ability;
decision-
making ability and the requirement level of these abilities vary according to the level of the job?
(c) Behavioral specifications
(d) Group specifications
558.
Which of the following techniques of dealing with surplus manpower DOES an organization adopt when they do
not want their middle/top level managers to stagnate or leave the company?
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(b) Early/voluntary retirement
(c) Loaning
(d) Work sharing
559. Marketers must adopt a different approach while selling intangible products.Which of the
following combinations does truly represent intangible products?
(a) Goods and ideas
(b) Goods and products
(c) Goods and services
(d) Services and ideas
560. Which of the following DOES NOT represent the characteristics of the Marketing Era?
(a) It focused on coordinated marketing management
(b) It emphasized the importance of consumer needs and wants
(c) It focused only on profitability
(d) It restricted forcible selling of products to customers without offering utility
561. According to Arthur D Little, there are a number of factors that influence performance of
businesses. Identify the factors.
(i) Stake-holders
(ii) Processes
(iii) Resources
(iv) Organization
(a) Only (i)
(b) Only (iii) and (iv)
(d) (i), (ii), (iii) and (iv)
562.
An evaluative comparison between a product's performance and the buyer's expectations is the basis for
determining
(a) Customer Loyalty.
(b) Customer Delivered Value.
(c) Customer Choice.
(d) Customer Satisfaction.
563. Which of the following is influenced by the geographical location of an organization?

(a) Organizational functions
(b) Organizational secrets
(c) Organizational culture
(d) Organizational goal
564.
The process of collecting information about political, legal, regulatory, societal, economic, competitive and
technological forces that may affect its marketing activities is called
(a) environmental analysis.
(b) survey of environment.
(c) environmental scanning.
(d) assessment of environment.
565.
You are directed to study the factors that are close to the company that affect its ability to serve its
customers the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
What are you studying?
(a) The macro environment
(b) The global environment
(c) The microenvironment
(d) The national environment
566.
What type of competitive structure does exist when a firm produces a product that has no close substitutes?
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(a) Monopoly
(c) Perfect competition
(d) Duopoly
567.
In which of the following structures, are usually branded products sold and heavy marketing and advertising are its
key features?
(a) Monopolistic
(b) Monopoly
(c) Multipoly
(d) Oligopoly
568.
Which of the following does create ample opportunities for marketers to venture into new regions?
(a) Trade barrier
(b) Trade alliances
(c) Trade wars
(d) Trade meal
569.
The software industry has to be prepared to unlearn the existing software (language) and learn new software.
The software professionals have to constantly keep a watch on
(a) career opportunities. .
(b) technological changes.
(c) regulatory changes
(d) political changes.
570.
The airline industry comprising of companies such as Air India, Singapore Airlines, Malaysian Airlines etc
have high entry barriers due to high costs involved. Which type of competitive structure do they come
under?
(a) Monopoly
(c) Oligopoly
(d) Pure competition
571.
In buying decision process, which of the following is NOT considered as “personal source of information”?
(a) Family
(b) Friends
(c) Journal
(d) Reference groups
572. Organizational buying process does consist of which of following stages?
(i)Problem reorganization, general needs description
(ii)Production specification and supplier search
(iii)Proposal solicitation, supplier selection (iv)Order
routine specification performance review (v)Problem
reorganization value analysis
(b) (i), (ii), (iii), (iv) and (v)
(c) Only (i), (ii) and (iii)
(d) Only (i), (ii) and (iv)
573.
A company producing ink pens wants to venture into producing ball point pens. They need to procure raw
materials from the same supplier. What is this process of buying called?
(a) Straight rebuy
(b) New task buying
(c) Modified rebuy
(d) Routinized buying
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574.
In a business organization, which of the following divisions does generate the revenues essential for the
survival and growth of the firm?
(a) Marketing
(b) Finance
(c) R&D
(d) Manufacturing
575.
In the olden days, people used to exchange goods and services, instead of money, according to the needs and
availability. This system of exchange is known as
(a) marketing system.
(b) societal system.
(c) need based system.
(d) barter system.
576.
Technological advancement is rapidly changing the marketplace and causing intense competition among firms.
To cope with the changing dynamics, firms use various approaches. They are divided into company responses.
Which of the following is the company response?
(a) Customization
(b) Integrated marketing communication
(c) Target marketing
(d) Outsourcing
577. Which of the following is / are the steps to identify the market segment?
(i)Analysis
(ii)Survey
(iii)Benefit
(iv)Profiling
(b) All (i), (ii), (iii) and (iv)
(d) Only (ii) and (iii)
578.
Which is the factor that does influence the organizational purchase process by providing information about the
general market situation, growth rate, poverty rate and unemployment rate?
(a) Political factors
(b) Social factors
(c) Legal factors
(d) Economic factors
579.
Marketers are providing better “Form Utility” by creating product to suit individual’s need. company’s
inviting inputs from customers and seeking their ideas in designing better and more suitable products is an example
of
(a) reengineering.
(b) outsourcing.
(c) e-commerce.
(d) customization.
.
580. The four P's of the marketing mix are
(a) personnel, priorities, placement, and profits.
(b) promotion, product, personnel, and place.
(c) product, place, politics and economy.
(d) product, promotion, price and place.
.
581. Common sense usually helps you in analyzing
(a) marketing problems
(b) when to diversify.
(c) what segment to drop
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(d) future opportunities.
582.
Which of the following sets of activities can be called primary activities involved in value chain?
(a) Inbound logistics, operations, procurement and firm infrastructure
(b) Inbound logistics, operations, outbound logistics, marketing and sales and services
(c) Outbound logistics, operations, procurement, firm infrastructure and services
(d) Outbound logistics, operations, services, procurement and firm infrastructure
583. Activity based costing (ABC) usually helps an organization to assess

(a) profitability of the organization.
(b) strengths and weaknesses of the competitors.
(c) which customers are profitable and which ones are subsidized.
(d) internal environment of the organization.
584. The Indian Oil campaign “Save oil-save India” is a form of de- marketing
its product. This is
basically the company’s initiative to maintain the ecological balance by creating an awareness of oil
conservation. This in turn gives the opportunity to the company to manage its
(a) technological environment.
(b) economic environment.
(c) legal environment.
(d) natural environment.
585.
When anybody registers for an email ID with any of the email service providers, viz. rediffmail.com or
yahoo.com, while registering, a person has various options to check in the registration form. If an individual
checks those options, these email service providers send various information on sports, news, weather and other
subjects to the individual’s email address. This is an example of
(a) Web casting.
(b) Newsletters.
(c) E-mails.
(d) Brochures.
586.
Which of the following is a method for maintaining the minimum inventory of raw materials and finished goods?
(a) Just-in-time
(b) Material requirement planning
(c) Production schedule
(d) Delivery schedule
587. Which of the following is a change in behavior based on experience?

(a) Selective retention
(b) Dissonance
(c) Learning
(d) Motivation
588. What is the difference between ‘total customer value’ and ‘total customer cost called?
(a) Value analysis
(b) Customer cost
(c) Customer desired value
(d) Eigen value
589. Which of the following is NOT a method of online advertising?

(a) Web communities
(b) Bulletin boards
(c) Banners
(d) Newsgroup
590. According to BCG Matrix, question marks are

(a) SBU’s with a large market share in a fast growing market.
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(b) SBU’s with a low market share in an intensely competitive, mature industry characterized by
low profits.
(c) SBU’s with an uncertainty about their future.
(d) SBU’s which are characterized by low market share and high growth.
591.
When a foreign product enters India, the Indian government imposes a kind of tax on those goods. What is
this tax on the foreign goods called, in the context of global trade?
(a) Tariff
(b) Restriction
(c) Embargo
(d) Barriers
592. A firm is considered socially responsible, when it fulfills its economic, legal, ethica l and
.................... commitments.
(a) environmental
(b) global
(c) organizational
(d) philanthropic
593.
Which of the following is NOT a principle of seven modern marketing principles that address the public policy
towards marketing?
(a) Principle of economic efficiency
(b) Principle of consumer protection
(c) Principle of curbing potential harm
(d) Principle of profiteering
594.
McDonald’s world popular product is Hamburger which is made of beef. But, when it started operating in India,
it replaced this Hamburger with various vegetable burgers. Which global environmental factor forced McDonald
to do so?
(a) Legal environmental factor
(b) Cultural environmental factor
(c) Economic environmental factor
(d) Technological environmental factor
595. ‘Emami Fair and Handsome’ cream is an example of

(a) lifestyle segmentation. .
(b) value segmentation.
(c) benefit segmentation
(d) usage rate segmentation.
596. What does SAFTA stand for?

(a) South Asian Free Tariff Agreement
(b) South Atlantic Free Trade Agreement
(c) South African Free Trade Agreement
(d) South Asia Free Trade Agreement
597.
Which of the following is the type of marketing where the company gathers as many names as possible through
mass mailing and forms a database?
(a) Personalized marketing
(b) Database marketing
(c) Lifetime value marketing
(d) Carpet bombing
598. Which strategy in NOT used by a market leader in its defense? Identify from the following.
(a) Guerilla attack
(b) Mobile attack
(c) Flank attack
(d) Position attack
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599. Needs differ from wants because
(a) wants are a socialized manifestation of underlying needs.
(b) needs are a socialized manifestation of underlying wants.
(c) needs are historical and wants are about the future.
(d) wants are historical and needs are about the future.
600.
PepsiCo, a cola major in the world has bought a number of restaurant chains as its growth strategy. Among
many, Pizza Hut, KFC are a few names, although currently Pepsi Co. has spun
off them. This type of strategy of the company is called
(a) lateral integration.
(b) vertical integration.
(c) forward integration.
(d) horizontal integration.
601. Which of the following deals with the study of the characteristics of human population?
(a) Socio-cultural
(b) Demographics
(d) Natural environment
602. SWOT analysis helps in formulating effective strategies for the company to deal with
(a) competitors.
(b) suppliers.
(c) distributors.
(d) customers.
603. Which of the following is not a form of direct marketing?

(a) Telemarketing
(b) Kiosk Marketing
(c) Catalog marketing
(d) Newspaper advertising
604.
Unlike products, services cannot be inventoried or stored for future consumption. This points to one unique
feature of services. Identify it.
(a) Heterogeneity
(b) Inseparability
(c) Intangibility
(d) Perishability
605. Which of the following is not the stage or stages of the ‘competitive intelligence system’?
(a) Setting up the system
(b) Value analysis
(c) Data collection
(d) Analysis and evaluation of data
606. The factor which differentiates a service from a product is

(a) Homogeneity.
(b) Separability.
(c) Accessibility.
(d) Intangibility.
607. Which of the following is an example of personnel differentiation?

(i) HPCL train their distributors to provide better services to the end user.
(ii) McDonald trains its employee to be friendly, respectful to the customers.
(iii) Linux trains their users on how to operate the software.
(iv) Reliance Petroleum trains the employees of their customers to provide a better service to the customers.
(v) Consumer redressal forum trains people about the rights they have of being a customer.
(a) only
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(b) only
(c) (iii), (iv) and (v)
(d) (i), (ii) and (v)
608.
Currently almost all automobile companies are following ‘Euro II’ norms while plying their operations in
India. In which concept of marketing can we put these automobile companies for their act of this kind?
(a) Managerial concept
(b) Marketing concept
(c) Societal marketing concept
(d) Production concept
609.
What is the objective of a bank, if it is conducting a market research to find out the general public opinion about the
bank?
(a) Image assessment
(b) Future prediction
(c) Consumer behavior survey
(d) New product development
610.
Despite the lack of enough opportunities to differentiate the service offerings, service organizations try to
gain customer loyalty by differentiating their services on the basis of the
(a) offer, delivery and image of the organization.
(b) offer, process and image of the organization.
(c) offer, perishability and image of the organization.
(d) offer, feel and image of the organization.
611. Which is not an element of ‘Intensity of rivalry among firms’ – One of the forces of
Michael Porter’s five forces model?
(a) Concentration ratio
(b) Diversity of rivals
(c) Market share
(d) Government policies
612.
The service that are purchased by individual customers for their own consumption are defined as :
(a) Business to Business Services
(b) Consumables Services
(c) Consumed Services
(d) Consumer Services
613. Which of the following emphasizes the importance of satisfying the customers by providing the highest
quality standards at all times?
(a) Total quality management
(b) Value delivery system
(c) Just in time
(d) Competitive intelligence system
614. Organization structure primarily refers to

(a) how activities are coordinated and controlled
(b) how resources are allocated
(c) the location of departments and office space
(d) the policy statements developed by the firm
615. The job design would be LEAST formal in a

(a) matrix structure
(b) professional bureaucracy
(c) divisionalized structure
(d) machine bureaucracy
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616. The purpose of job enrichment is to
(a) expand the number of tasks an individual can do
(b) increase job efficiency
(c) increase job effectiveness
(d) increase job satisfaction of middle management
617. Individuals such as Albert Einstein, Edwin Land and Steven Jobs lead through which type of power?
(a) Legitimate
(b) Reward
(c) Expert
(d) Charismatic
618. Strategic planning as a broad concept consists of

(a) corporate strategy and business strategy
(b) strategy formulation and strategy implementation
(c) inputs and outputs
(d) environmental analysis and internal analysis
619. Early theories about how individuals make decisions were based on the concept of a(n)
(a) utilitarian philosophy
(b) action man
(c) economic man
(d) attentive man
620. Communication begins with

(a) encoding
(b) idea origination
(c) decoding
(d) channel selection
621. Functional managers are responsible

(a) for a single area of activity
(b) to the upper level of management and staff
(c) for complex organizational sub-units
(d) for obtaining copyrights and patents for newly developed processes and equipment
622. Policies are sometimes defined as a(n)

(a) shortcut for thinking
(b) action plan
(c) substitute for strategy
(d) substitute for management authority
623. One method of bringing a group to agreement is called

(a) proportional values
(b) consensus
(c) accordance
(d) conformance
624. In general, if a policy is not thought out and established

(a) a situation requiring action will arise
(b) social issues will cause change in the organization
(c) managers will be hired from the outside
(d) there will be significant staff turnover
625. The problem-solving process begins with

(a) clarification of the situation
(b) establishment of alternatives
(c) identification of the difficulty
(d) isolation of the cause
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626. All of the following are requirements for successful value chain management EXCEPT :
(a) Coordination and Collaboration
(b) Continuous Process Improvement
(c) Organizational Processes
(d) Technology
627. An individual's belief that he or she is capable of performing a task is called:

(a) Self esteem
(b) Self direction
(c) Self efficacy
(d) Self confidence
628. In which stage of the conflict process does conflict become visible?
(a) Illumination
(b) Intentions
(c) Behaviour
(d) Cognition
629. is an attempt through a formal program to integrate employees’ needs and wellbeing
with the intention of improved productivity, better involvement and satisfaction
(b) Quality Circle
(d) Job Redesign
630. is small groups of workers who meet regularly with their supervisor to solve work
related problem
(b) Quality Circle
(d) Job Redesign
631. The concept of Work- Week is related with

(b) Quality Circle
(d) Job Redesign
632. When a group gives some of its leadership positions to the members of other group, it is
(a) Contracting
(b) Co-opting
(c) Co-alition
(d) Competition
633. The LEAST-used communication channel in an organization is usually
(a) upward
(b) downward
(c) diagonal
(d) horizontal
634. An important potential environmental source of change is

(a) a new competitive product
(b) dissatisfied employee attitudes
(c) employee grievances
(d) a wildcat strike
635. What does SBU stand for :

(a) Single Business Unit
(b) Stratified Business Unit
(c) Strategic Business Unit
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636. Choose the best option that fits the meaning of the word ‘benchmarking’ ?
(a) Setting targets to be achieved.
(b) Setting goals and measuring performance
(c) Setting goals and measuring productivity based on the best industry practices
637. Who proposed the Motivation-Hygiene Theory ?

(a) Abraham Maslow
(b) Fredrick Winslow Taylor
(c) Frederic Herzberg
638. Following are examples of the Macro environment ?

(a) Demographic environment
(b) Economic Environment
(c) Technological environment
639. Peter F Drucker was of the view that :

(a) Business cannot be explained in terms of profit
(b) Business are always explained in terms of profit
(c) None of the above.
(d) Both a and b
640. In the hierarchal structure of an organisation, ................. managers are at the base of the pyramid :
(a) Top Level.
(b) Middle Level
(c) First Level.
(d) Link Level.
641. Which of the following is a function of middle management?

(a) Reviewing daily and weekly production or sales reports.
(b) Selecting Board members.
(c) Supervising day-to-day operations.
(d) Evaluating the all-round performance of various departments.
642. The process of designing and maintaining an environment in which individuals working together
in groups, efficiently accomplish specific aims is termed :
(a) Administration.
(b) Management.
(c) Organisation.
(d) Staffing.
643. The management functions which involves influencing, motivating and directing human resources
towards the achievement of organisational goals is known as :
(a) Leading.
(b) Controlling.
(c) Planning.
(d) Staffing.
644. managers deal with the actual operation of an organisations units :

(a) First Level.
(b) Top Level.
(c) Middle Level.
(d) Link level.
645. are at the lowest level of the hierarchy and are directly responsible for the
performance of operational level employees :
(a) Middle level managers.
(b) First Level managers.
(c) Top-Level Managers.
(d) Trainee-level managers.
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646. First level managers must possess ....................... skills, which include knowledge of and proficiency in
the methods, processes and procedures for carrying out activities :
(a) Human.
(b) Conceptual.
(c) Design
(d) Technical.
647. Name the skill which is important at all levels of an organisation :

(a) Conceptual.
(b) Design
(c) Human
(d) Technical.
648. Which theory states that there is no best way to manage all situations?
(a) Systems Theory.
(b) Contingency Theory.
(c) Administrative Theory.
(d) Bureaucratic Theory.
649. Which of the following theories gives managers a new way of looking at an organisation as a whole and
as a part of the larger external environment :
(a) Contingency Theory.
(b) Theory Z and quality management.
(c) Systems Theory
(d) Theory X and Theory Y
650. According to the systems theory, planning, organising, leading, controlling and technology come under
component of an organisational system.
(a) Inputs.
(b) Transformation process.
(c) Outputs.
(d) Feedback.
651. Which management theory gives importance to the achievement of customer satisfaction and loyalty?
(c) Situations theory.
(d) Quality management.
652. Which type of management approach focuses only on the economic and physical needs of workers and
ignores their social needs?
(b) Bureaucratic management.
(c) Administrative management.
(d) Operations management.
653. Which one of the following management concepts leads to the destruction of the creativity and
flexibility required to respond to changes in the global environment?
(a) Bureaucratic management.
(b) Scientific management.
(d) Administrative management.
654. Under which system does a worker’s wage increase in proportion to the output produced?
(b) Piece Rate incentive system.
(c) Micro motion study.
(d) Gantt Chart.
655. Which of the following was not a phase in the Hawthorne experiments?
(a) Illumination experiments.
(b) Bank wiring observation room experiments.
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(c) Group discussions.
(d) Interview phase
656. Which of the following is not a result of poor span of control in organisations?
(a) Over supervision.
(b) Timely decision.
(c) High costs.
(d) Communication problems.
657. Which of the following factors does not indicate an effective span of management?
(a) Trained subordinates.
(b) Clarity of delegation of authority.
(c) Physical appearance of manager.
(d) Communication technique.
658. The span of management.............................. at different levels of the same organisation :

(a) Matches.
(b) Varies.
(c) Is parallel.
(d) Is similar.
659. To eliminate the problems created by a large span of management in flat structures,
organisations are forced to...........
(a) Recue the hierarchical levels.
(b) Maintain the existing hierarchical levels.
(c) Increase the hierarchical levels.
(d) Decrease the existing hierarchical levels.
660. Which of the following is not a contingency factor that influences the design of an effective organisation
structure?
(a) Technology used.
(b) Size of the organisation.
(c) Transfer process.
(d) Environmental factors.
661. Which of the following methods help managers find out the minimum time and cost required to complete a
project?
663. refers to unanalyzed and unorganised facts and figures describing entities.
(a) Information.
(b) Intelligence.
(c) Data
(d) Systems.
664. External information is more useful for. .............managers :

(a) Top level.
(b) Middle level
(c) Lower level
(d) Link level
information?
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(a) Customer.
(b) Employee
(c) Supplier
(d) Government

(a) Keyboard.
(b) Printers.
(c) Floppy discs.
(d) Magnetic discs
(a) Direct control.
668. According to the. ................ approach, business should be conducted on the basis of established
standards and facts or truths gained through systematic observation, experiment and reasoning.
(a) Administrative.
(b) Behavioural
(c) Bureaucratic
(d) Scientific
669. The two major managerial practices that emerged from Taylor’s approach to management
are the piece-rate incentive systems and............
(b) Work-study.
(c) Fatigue.
(d) Organisation study.
670. Unlike Classical theorists who viewed organisation from the production point of view,
behaviour theorists viewed it from the ................... point of view.
(a) Human.
(b) Technical.
(c) Administrative.
(d) Scientific.
671. strategies provide guidelines for organisational growth.

(a) Organisation.
(b) Finance.
(c) Marketing.
(d) Growth.
672. Cost leadership, differentiation and ......................... are the three generic business level strategies
identified by Michael Porter.
(a) Growth.
(b) Market Leadership.
(c) Focus.
(d) Product leadership.
673. In a SWOT analysis, a ........................... is regarded as an internal characteristics which can improve
an organisation’s competitive capabilities.
(a) Threat.
(b) Weaknesses.
(c) Strength.
(d) Opportunity.
674. A/ an ....................... is an environmental condition that helps an organisation improves its situation
relative to the competitors :
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(a) Strength.
(b) Opportunity.
(c) Threat.
(d) Weakness.
675. Which of the following is not an approach to organisational development?

(a) Problem solving.
(c) Team development.
(d) Cooperation.
676. The .................. level strategy identifies the business area that an organisation will operate in.
(a) Business.
(b) Functional.
(c) Corporate.
(d) Operational.
677. Which of the following is not an external threat to a company’s well being?
(a) Reduction in sales due to substitute products.
(b) Likely entry of new competitors.
(c) Underutilised plant capacity.
(d) Costly regulatory requirements.
678. Which one of the following constitutes a threat to the company?

(a) Serving additional customer groups.
(b) Expanding the product line.
(c) Integrating forward or backward.
(d) Slowdown in market growth.
679. Which of the following is not determined by organisational strategies?

(a) How centralised the decision making authority should be.
(b) How de-centralised the decision making authority should be.
(c) How the employees should be trained.
(d) How the staff positions should be designed.
680. Which of the following is not a tangible reward?

(a) Bonuses.
(b) Awards
(c) Personal feeling of accomplishment.
(d) Promotions.
681. Which one of the following is not a social constraint?

(a) Changing lifestyles.
(b) Increasing number of women in the workforce.
(c) Domestic demand.
(d) Increasing number of divorces.
682. Which of the following is not an environmental constraint?

(a) Recycling waste.
(b) Keeping pollution under control.
(c) Adopting automation in the manufacturing process.
(d) Manufacturing environment friendly products.
683. A situation of information asymmetry gives rise to...................

(a) Certainty.
(b) Uncertainty
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(c) Risk
(d) Stability.
684. Which of the following functions of management involves filling and keeping filled positions in the
organization structure?
(a) Planning.
(b) Organizing.
(c) Staffing
(d) Controlling.
685. Which managerial function involves the process of setting goals and findings and deciding on the best
ways to achieve them?
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
686. A manufacturing company has grouped its main functions into marketing, engineering,
production and finance. What kind of organizational structure has this company adopted?
(b) Hybrid structure
687. Which of the following is synonymous with need theories?

(a) Supply theory.
(b) Process theory
(c) Surplus theory
(d) Content theory
688. According to the principle of ....................... , the same result can be reached by different
means.
(a) Insight
(b) Intuition
(c) Logical formulation
(d) Unconscious scanning
689. Which of the following perspectives opposes the concept of finding the on best way for managing
organizations?
(a) Universal
(b) Behavioural
(c) Scientific
(d) Contingency
690. is known as “quantitative common sense”

(a) Operations research
(b) Operations management
(c) Efficient organization
(d) Operations planning
691. Brainstorming and synectics techniques encourage individuals to think ……………….

(a) Optimistically
(b) Pessimistically
(c) Intuitively
(d) Emotionally.
692. According to some experts knowledge work, system is advanced versions of …………….
(a) Decision support systems
(b) Office automation systems
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(c) Executive support systems
(d) Transactional processing system
693. What role should a manager do when communicating with the outside world?
(a) Disseminator
(b) Spokesperson
(c) Recipient
(d) Liaison
694. Which of the following is not a major component of the Management information system?
(a) Data gathering
(b) Information utilization
(c) Risk Analysis
(d) Data transformation
695. In negotiation and agreement, management offers something of value in exchange for cooperation
thereby potential or actual resistance from employees.
(a) Neutralizing
(b) Increasing
(c) Decreasing
(d) Aggravating
696. refers to the price of an inventory item.

(a) Ordering cost
(b) Item cost
(c) Carrying cost
(d) Stock-out cost
697. Management techniques are used at the ............................... level of the organization.
(a) Top level
(b) Middle level
(c) First level
698. innovations lead to changes in the physical process through which a product
or service passes.
(a) Technical
(b) Radical
(c) Incremental
(d) Managerial
699. A ..................Outline the expected results of a given future period in numerical terms
(a) Program
(b) Budget
(c) Policy
(d) Procedure
700. Which of the following is not a major type of structural alternative used for departmentation?
(a) Functional
(b) Divisional
(c) Vertical
(d) Matrix
701. In which role do managers try new methods to improve the functioning of a unit or the whole
organization?
(a) Disseminator
(b) Leader
(c) Entrepreneur
(d) Liaison
702. refers to the managements efforts to increase organizations effectiveness by

intervention in the organizations processes?
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(a) Planned development
(b) Functional development
(c) Company development
(d) Organization development
703. What is the nature of the problems that top management generally deals with and what kind of decisions
do they take to solve their problem s?
(a) Unstructured an programmed
(b) Structured and non programmed
(c) Unstructured and non programmed
(d) Structured and programmed
704. specializes in feeding input data into a system and extracting required
information from it.
(a) Data processing managers
(b) Data entry operators
(c) Programmers
(d) System analysis
705. A .................. is a type of departmentation in which positions are grouped according to

similarity of products services or market’s
(a) Hybrid structure
(c) Matrix structure
(d) Functional structure

(c) Discipline
(d) Scalar chain
707. In which of the following models will a manager completely disregard the emotions or feelings of his or her
subordinates?
(a) Phenomenological
(b) Economic
(c) Rational
(d) Behaviouristic
708. Managers perceptions of workers in Theory X and Theory Y are ................ respectively.
(a) Negative and negative
(b) Positive and negative
(c) Negative and Positive
(d) Positive and positive
709. Which of the following is considered synonymous used with “downsizing”

(a) Rebuilding
(b) Recreating
(c) Re-establishing
(d) Restructuring
710. According to the functional view point, .................. functions are directly related to the
accomplishment of organizational objectives
(a) Line
(b) Staff
(c) Linea and staff
(d) Both a and b
711. Which of the following is not a content theory?

(a) Equity Theory
(b) Two factor theory
(c) Need hierarchy theory
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(d) ERG theory
712. Which of the following principles of management identified by Henri Fayol states that
promoting tem spirit will give the organization a sense of unity?
(a) Equity
(b) Espirit de Corps
(c) Discipline
(d) Initiative
713. Which of the following perspective is/are considered universal perspective?

(a) Classical
(b) Quantitative
(c) Behavioural
714. Which of the following managers are familiar with all the functional areas of management /
(a) Operations managers
(b) Human resource managers
(c) Financial managers
(d) General managers
715. Which of the following strategies focuses on the best means of computing in a particular market?
(a) Business Level
(b) Corporate Level
(c) Functional Level
(d) Organizational Level
716. Which of the following techniques is used in decision making to figure out how much extra output will
result if one more variable is added?
(a) Financial analysis
(b) Ratio analysis
(d) Marginal analysis
717. ………………….. decisions usually involve a lot of uncertainly

(a) Programmed
(b) Non programmed
(c) Tactical
(d) Operational
718. The ........ role, identified by Mintzberg includes the specific roles of entrepreneur, disturbance
handler, resource allocator and negotiator.
(a) Decisional.
(b) Interpersonal
(c) Informational.
(d) Administrative
719. Which of the following approaches to management examines practical cases but is having only limited
value for developing management theory?
(a) Group behaviour approach.
(b) Systems approach.
(c) Operations approach.
(d) Emperical approach.
720. In the ............ approach to management, managerial practice depends on circumstances.

(a) Systems.
(b) Contingency or Situational.
(c) McKinsey’s &-S framework.
(d) Emperical or case.
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721. Which one of the following theories ignored the concept of leadership, motivation, power, and informal
relations :
(a) Pre-classical.
(b) Classical
(c) Behavioural.
(d) Modern.
722. Which one of the following did not contribute to the behavioural concept of management :
(a) Elton Mayo.
(c) Chris Argyris
(d) Henry R Towne
723. Which behavioural thinker supported the idea of ‘power sharing’ between superiors and
subordinates in an organisation?
(a) Abraham Maslow.
(b) Elton Mayo.
(c) Mary Parker Follet
724. Who proposed that human needs develop in a hierarchical manner in the order of
physiological needs, safety, social needs, esteem needs and self-fulfilment needs?
(a) Elton Mayo
(b) Abraham Maslow.
(c) Chris Argyris.
725. Who was the most prominent among the general administrative theorist?
(a) Henry Mintzberg.
(b) Henri Fayol.
(c) Frederick W. Taylor.
(d) Frank Gilbreth.
726. Which management thinker regarded people and organisations as closed systems?
(a) Elton Mayo.
(b) Henri Fayol.
(c) Frederick. W. Taylor.
(d) Chris Argyris.
727. proposed the hierarchy of needs theory.

(a) Abraham Maslow.
(b) Elton Mayo.
(c) Douglas McGregor.
(d) Chris Argyris.
728. is generally recognised as the “Father of the Human relations Approach. “

(a) Max Weber.
(c) Abraham Maslow.
(d) Elton Mayo.
729. In the systems theory the terms ’throughputs’ refers to the..............

(a) Input.
(b) Output.
(c) Feedback.
(d) Transformation process.
730. Which of the following Fayol’s principles of management aims at avoiding the possibility of
conflicting orders?
(a) Well defined hierarchy of authority.
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(c) Authority on par with responsibility.
(d) Downward delegation of authority or responsibility.
731. Max Weber, a German sociologist believed that effective organisations had a formal structure and
followed a predefined set of rules and regulations. To identify such organisations he used the term..........
(a) Autocracy.
(b) Autonomy.
(c) Formal.
(d) Bureaucracy.
732. Who developed the ‘hierarchy of needs theory?

(a) Herzberg.
(b) Abraham Maslow.
(c) McClelland.
(d) Alderfer
733. According to Herzberg ............. are job content factors which lead to job dis-satisfaction :
(a) Motivators.
(b) Hygiene factors.
(c) Context factors.
(d) Psychological factors
734. 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
735. 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
736. Self-actualisation and esteem needs in Maslow’s theory correspond to....... factor in Herzberg’s
theory :
(a) Interpersonal relations.
(b) Working conditions.
(c) Challenging work.
(d) Quality of supervision.
737. Which of the following needs does not come under McClellands needs theory :
(a) Achievement needs.
(b) Affiliation needs.
(c) Power needs.
(d) Safety needs
738. MBO was first suggested by:

(a) Frederick Taylor
(b) Henri Fayol
(c) Peter. F Drucker
(d) Henry Mintzberg
739. Fayol out lined 14 principles of management. One of them, the................... , states that each employee
must receive instructions about a particular operation from only one person.
(b) Discipline.
(d) Centralisation.
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740. Weber coined the term... identify large organisations that operated on a rational basis.
(a) Autocracy.
(b) Dictatorship.
(c) Bureaucracy.
(d) Diplomacy.
741. Henry Mintzberg classified the managerial roles of recipient, disseminator and spokesperson as...............
(a) Interpersonal roles.
(b) Informational roles
(c) Decisional roles.
(d) Intelligence roles.
742. In Herzberg’s two factor theory of motivation, hygiene factors are also known as :
(a) Job content factors.
(b) Job context factors.
(c) Motivators.
(d) Job satisfying factors
743. George Homans’ “format vs informal” organisation model is based on three concepts. Which of
the following is not one among the three concepts?
(a) Interactions.
(b) Activities.
(c) Behaviour.
(d) Sentiments.
744. According to Vroom’s expectancy theory, what would be the valence of an individual who is
indifferent to the outcome?
(a) +1
(b) 0
(c) -1
(d) +0.5
745. Which of the following branches of the classical viewpoint of management is based on the
contributions of Max Weber?
(b) Bureaucratic management
(d) Behavioural management
746. Who among the following proposed the concept of functional authority?
(a) Chris Argyris
(b) Max Weber
(c) F. W Taylor
(d) Elton Mayo.
747. According to Mintzberg ........... are interpersonal roles.

(a) Figurehead, recipient, liaison
(b) Leader, Liaison, spokesperson
(c) Figurehead, leader, liaison
(d) Figurehead, liaison, entrepreneur
748. Which of the following needs of Maslow’s needs hierarchy theory does not correspond with the
hygiene factors of Herzberg’s two-factor theory
(a) Physiological theory
(b) Esteem needs
(c) Security or safety needs
(d) Social needs
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749. In the classical approach, who first introduced the concept of training workers for the benefit of both
workers and organization?
(a) Henry L Grant
(b) Henri Fayol
(c) Frederick Winslow Taylor
(d) Max Weber
750. The situational theory is also known as ………………..

(a) Trait theory
(b) Transactional theory
(d) Behavioural theory
751. Whose principles of management gave rise to the concept of team spirit among employees (known as
Espirit de corps)?
(a) Henry L Grant
(b) Henri Fayol
(c) Max Weber
(d) Lillian B Gilbreth
752. Which one of the following did not contribute to pre classical management thought?
(a) Robert Owen
(b) Charles Babbage
(c) Henri Fayol
(d) Henry R Towne
753. The ..................... model of decision-making was developed by Herbert Simon.

(a) Garbage-can
(b) Incremental
(c) Satisficing
(d) Rational
754. According to Likert’s system of management ................... represents ‘dictatorial leadership

behaviour’
(a) System 1 management
(b) System 2 management
(c) System 3 management
(d) System 4 management
755. Which of the following is not a leadership theory?

(a) Trait theory
(b) ERG theory
(d) Transactional theory
756. Which specialization improves the efficiency of operations? This principle of management
indentified by Henri Fayol is termed as ……………….
(b) Stability
(d) Discipline
757. Who among the following is regarded as the Father of motion study?
(a) Lillian Gilbreth
(b) Charles Babbage
(c) Henry Grant
(d) Frank Gilbreth
758. According to Blake and Moutons’ managerial grid, which of the following managerial styles is
known as ‘organizational management?’
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(b) Middle of the road management
(c) Country club management
(d) Team management
759. Mc Gregors’s ..................... takes a pessimistic static and rigid view of human nature.
(a) Theory W
(b) Theory X
(c) Theory Y
(d) Theory Z
760. Which of the following studies gave importance to the “initiating structure” and “consideration
dimensions of leadership?”
(a) Iowa studies
(b) Michigan studies
(c) Ohio State studies
(d) Likert’s four system of management
761. According to Herzberg and his associates … are job content factors, which lead to job
satisfaction.
(a) Motivators
(b) Hygiene factors
(c) Context factors
(d) Physiological factors
762. is the earliest management thinker to use this term ‘Management by

Objectives.
(a) Peter F Drucker
(b) Frederick Winslow Taylor
(c) Henri Fayol
(d) Henry Mintzberg
763. Leadership style 1, 9 in Blake and Mouton’s management grid represents the ………………
style.
(b) Country club management
(c) Team management
(d) Organization man management
764. Theory X and Theory Y, two sets of assumptions about the nature of people, proposed by:
(a) Abraham Maslow
(b) McGregor
(c) Herzberg
(d) McClelland
765. According to Vroom’s expectancy theory, which of the following refers to the probability that
successful performance will lead to certain outcomes?
(a) Motivation
(b) Valence
(c) Expectancy
(d) Instrumentality
766. Is known as the “Father of scientific management“

(a) Henri Fayol
(b) Henry Mintzberg
(c) Frederick W. Taylor
(d) Max Weber
767. To achieve organisational objectives managers ensure that the plans made a different levels of an
organisation are............
(a) Independent.
(b) Inter-dependent.
(c) Non-reticulate.
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(d) Separate.
768. Which level of managers is involved in the development of plans?

(c) First level managers.
(d) All the above.
769. Organisations use contingency plans to cope with..............

(a) Anticipated events.
(b) Premeditated events.
(c) Unforeseen events.
(d) Predictable events.
770. Planning encourages ...................... thinking among managers this type of thinking is essential for
the long-term survival and growth of an organisation.
(a) Conservative.
(b) Innovative.
(c) Conventional.
(d) Stereotyped.
771. What type of plan is used when unique situations of a non-recurring nature occur?
(a) Primary plans.
(b) Secondary plans.
(c) Single-use plans.
(d) Standing plans.
772. Which of the following is action based and result oriented management approach that contributes
to the smooth and efficient functioning of organisations?
(a) Projects.
(b) Programs.
(c) Rules.
(d) Policies.
773. Which one of the following is not a type of single use plan?
(a) Programs.
(b) Policies.
(c) Budgets.
(d) Projects.
774. Budgets are not expressed in the form of..................

(a) Units of production.
(b) Labour hours.
(c) Machine hours.
(d) Written policies.
775. Which of the following plans are rigid in nature and do not allow any deviation from the
established guidelines?
(a) Programs.
(b) Policies.
(c) Rules.
(d) Procedures.
776. Which one of the following is the first step in the planning process?
(a) Established objectives.
(b) Analysing opportunities.
(c) Determining planning premises.
(d) Identifying alternatives.
777. Which of the following is not a limitation of planning?

(a) Time-consuming process.
(b) Expensive.
(c) Flexible.
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(d) Lack of accurate information.
778. When developing a contingency plan, managers should not try to........
(a) Increase interruptions to the operations of the business.
(b) Speed up the restoration of services.
(c) Reduce financial losses.
(d) Resume critical operations within a specified time after a disaster.
779. Which one of the following does not come under the “formulating supporting plans” stage in
the planning process?
(a) Hiring workers.
(b) Training new workers.
(c) Expenditures for capital equipment.
(d) Developing a new product.
780. The open systems approach to planning is effective as it leads to. ............................... in planning.
(a) Rigidity.
(b) Flexibility.
(c) Inelasticity.
(d) Invariability.
781. Which of the following is the second step in the planning process?
(a) Determining planning premises.
(b) Establishing objectives.
(c) Implementation
(d) Identifying resources.
782. Which of the following are large scale single use plans that coordinate a complex set of activities to
achieve important non-recurring goals?
(a) Budgets.
(c) Projects
(d) Programs.
783. Which of the following indicate the action that major departments and subunits should take to execute a
strategic plan?
(a) Operational plan.
(b) Tactical plan.
(c) Single use plan.
(d) Project plan.
784. Generally, ‘strategic plans’ is an important aspect of the jobs of managers.

(a) Operational Level
(b) Middle-level
(c) Top-level
(d) At the levels
785. If goals are the desired ends, which of the following are the means for achieving those ends?
(a) Commitments
(b) Strategies
(c) Plans
(d) Programs
786. Managers involved in the development of plans generally work in an environment of

uncertainty and are required to make assumptions about future threats and opportunities.
(a) Tactical
(b) Operational
(c) Single-use
(d) Strategic
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787. Which of the following plans are developed by low-level managers?
(a) Operational.
(b) Tactical.
(c) Strategic.
(d) Standing.
788. spell out the specific action that must or must not be taken in given situations :
(a) Programs.
(b) Rules.
(c) Budgets.
(d) Policies.
789. Which of the following plans provide guidelines for day-to-day actions in an organisation?
(a) Short term plans
(b) Long term plans
(c) Intermediate plans.
(d) Standing plans.
790. Which of the following strategic plans of an organisation have a time frame exceeding 5 years?
(a) Short term plans.
(b) Single use plans.
(c) Long terms plans.
(d) Intermediate plans.
791. Which of the following is the first step in the planning process?
(a) Establishing objectives.
(b) Determining planning premises.
(c) Identifying alternatives.
(d) Analysing opportunities.
792. Which of the following steps in the planning process involves the execution of a plan?
(a) Implementation.
(b) Selection.
(c) Evaluation.
(d) Review.
793. There are three major kinds of standing plans: policies, rules and...................
(a) Projects.
(b) Programs.
(c) Procedures.
(d) Standards.
794. Operational plans are generally oriented towards issues that have a time horizon of..........
(a) About 5 years.
(b) 3 to 5 years.
(c) 1 to 2 years.
(d) One year or less.
795. Which of the following refers to the determination of the purpose and the basic long-term objectives
of an enterprise, and the adoption of courses of action and the allocation of resources necessary for achieving
those objectives?
(a) Strategies.
(b) Plans
(c) Policies.
(d) Procedures.
796. Top-level managers with good conceptual and design skills are responsible for..........
(a) Operational planning.
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(d) Tactical planning.
797. Managers refer to strategic plans as..................

(a) Goal setting.
(b) Organisational planning.
(d) Action plans.
798. are aimed at achieving a specific goal and are designed to meet the needs of a
unique situation :
(a) Single use plans
(b) Standing plans
(c) Short-term plans
(d) Double use plans
799. A ............... is a large scale single use plan which coordinates a complex set of activities for
achieving a major non recurring goal.
(a) Program.
(b) Project
(c) Budget.
(d) Policy.
800. Which type of planning provides the organization with well-equipped individuals for top level and
middle level positions?
(a) Replacement planning
(b) Succession planning
801. Which of the follow terms refers to the time gap between placing and receiving an order?
(a) Reorder time
(b) Lead time
(c) Real time
(d) Just in time
802. What kind of plans do manager make on the basis of future expectations of political, legal, social
technological, and economic environments?
(a) Primary plans
(b) Secondary plans
(c) Contingency plans
(d) Situational plans
803. Holding cost is synonymous with …………………..

(a) Ordering cost
(b) Item cost
(c) Carrying cost
(d) Stock-out cost
804. What kind of plan facilitates the delegation of authority?

(a) Single use plan
(b) Contingency plan
(c) Standing plan
805. Which one of the following situations requires the use of standing plans?
(a) Intermittent
(b) Occasional
(c) Recurring
(d) Temporary
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806. Which of the following includes factors like profitability, sales and R&D and has a direct bearing on an
organizations well being ?
(a) Planning premises
(c) Corporate objectives
(d) Operations
807. Which of the following is an advantage of decentralization?

(a) Encourages decision making
(b) Easy to have uniform policy
(c) Greater control
(d) Decreases complexity of coordination
808. Which of the following refers to assumptions about the environment in which the plan is to be carried
out?
(a) Planning environment
(b) Planning premises
(c) Panning boundaries
(d) Decision premises
809. A SWOT analysis does not consider organization’s ………………

(a) Internal strengths
(b) External opportunities
(c) Internal weaknesses
(d) External task environment
810. The plant manager of Crux industries has established certain work schedule for supervisors of the
company. Which of the following powers was used by the plant manager of Crux industries in this case?
(a) Downward referent power
(b) Reward Power
(c) Downward legitimate power
(d) Upward legitimate power
811. Which of the following is a type of departmention that adopts aspects of both functional and divisional
structures at the same level of management?
(a) Matrix
(b) Flexible
(c) Hybrid
(d) Partly functional
812. The use of effective control systems does not lead to …………………..
(a) Improved output per unit of output
(b) Reduction in wastage
(c) Increase in personnel turnover
(d) Lower labour costs
813. Which of the following types of plan is formulated to achieve strategic goals?
(a) Tactical plans
(b) Strategic plans
(c) Operational plans
(d) Standing plans
814. Which of the following is a one-time plan created in response to a non-programmed decision?
(a) Standing
(b) Single use
(c) Long term
(d) Tactical
815. Which of the following identify problem areas and increase the feasibility of achieving goals?
(a) Key result areas
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(b) Goals
(c) Action plans
(d) Procedures
816. Feed forward control is not known as …………………..

(a) Pre control
(b) Preliminary control
(c) Preaction control
(d) Reaction control
817. involves the identification of potential candidates for filling specific

managerial positions.
(a) Succession planning
(b) Replacement planning
818. is distinct business set up within a company to ensure that certain product or
product line is promoted and handled as though it were an independent business?
(a) Strategic planning units
(b) Strategic business units
(c) Strategic functional units
(d) Specific business units
819. Which of the following is not a feature of an adaptable organization?

(a) Employee participation in decision making
(b) Broad goals and objectives
(c) Rigid functional division
(d) Regular feedback from the environment
820. A firm using a ...................strategy tries to offer products and services that are considered
unique in the industry.
(a) Market Leadership
(b) Focus
(c) Differentiation
(d) Cost Leadership
821. The structural methods used for promoting, innovation help organizations implement
……………… and achieve goals.
(a) Procedures
(b) Polices
(c) Strategies
(d) Rules
822. A message that is generated by the receiver in response to the sender’s original message is
known as...............
(a) Feedback.
(b) Feed forward.
(c) Perception.
(d) Transmission.
823. The communication flow from people at higher levels to those at lower levels in the
organisational hierarchy is referred to as....................
(b) Crosswise communication
(c) Downward communication
(d) Horizontal communication
824. Which of the following is not a gateway to effective communication in an organisation?

(a) Effective listening.
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(b) Non-directive counselling.
(c) Interpersonal trust.
(d) Improper feedback.
825. Which of the following is not a form of upward communication?

(a) Suggestion systems.
(b) Oral instructions.
(c) Counselling sessions.
(d) Complaint system.
826. In the process of communication the translation of intended meaning into words and gestures is known as
:
(a) Encoding
(b) Decoding
(c) Processing
(d) Transforming.
827. Which of the following media is not used for written downward communication?
(a) Memorandum
(b) Grapevine.
(c) Handbooks
(d) Pamphlets.
828. facilitates control, communication and coordination in organisations.

(a) Deceleration
(b) Departmentation
(c) Disintegration
(d) Decentralization
829. Which of the following is not a mode of communication that helps managers communicate effectively
with subordinates?
(a) Fax
(b) Teleconferencing
(c) Photocopying
(d) Internet
830. Which of the following is a type of crosswise communication flow in organizations?

(a) Upward
(b) Vertical
(c) Diagonal
(d) Downward
831. Which of the following skills helps manager realize the most appropriate responses to a situation?
(a) Conceptual skills
(b) Diagnostic skills
(c) Decision making skills
(d) Technical skills
832. The grapevine is a/an...................... communication channel.

(a) Informal
(b) Formal
(c) Stable
(d) Organization
833. power is based on the influencers ability to punish the influence for not meeting
requirements :
(a) Referent
(b) Legitimate.
(c) Expert.
(d) Coercive.
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834. Which of the following is not a feature of authority?
(a) Right to do something.
(b) Legitimate power given by organisation.
(c) Derived from position.
(d) Requires no formal position.
835. A lawyer specialised in criminal law is said to have which type of power?
(a) Coercive.
(b) Referent
(c) Legitimate
(d) Expert.
836. In a manufacturing company, which of the following functions is not a staff function?
(a) Plant maintenance.
(b) Accounting.
(c) Sales
(d) Quality control.
837. Which of the following powers is based on the perception or belief that the influencer has relevant
expertise, special knowledge or skill that the influence lacks?
(a) Referent
(b) Legitimate.
(c) Expert.
(d) Reward.
838. The authority to control the functions of other departments related to specific task is known as :
(a) Functional authority.
(b) Formal authority.
(c) Informal authority.
(d) Managerial authority.
839. The establishment of a distinct area, unit or subsystem of an organization over which a manager
has authority for the performance of specialized activities and results is termed as
…………………
(a) Centralization
(b) Departmentalization
(d) Functionalization
840. The output-input ratio within a time frame with regard to quality is known as …………………..
(a) Efficiency
(b) Effectiveness
(c) Productivity
(d) All the above
841. In the...................... stage in the change process the new behaviour pattern is locked into
place by means of a supporting or re-enforcing mechanism so that it becomes the new norm:
(a) Refreezing
(b) Unfreezing
(c) Moving
(d) Freezing
842. managers bringing new work practices and help the organization sail smoothly
through changes.
(a) Top Level
(b) Middle level
(c) First level
(d) Supervisory level
843. In the context of employee behaviour, which of the following is not an outcome of established standards?
(a) Helps employees perform efficiently
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(b) Identifies task related deficiencies
(c) Reduces their potentially negative effects of goal incongruence.
(d) Reduces the potentially positive effects of goal incongruence
844. An informal organization lays emphasis on ……………

(a) Authority
(b) People and relationships
(c) Responsibility
(d) Accountability
845. is a blue print of the formal organization indicating the lines of authority within
the organization.
(a) Management chart
(b) Authority chart
(c) Flow chart
(d) Organization chart
846. Decreasing the role of subordinates in decision-making is knows as:

(a) Centralization
(b) Stabilization
(d) Delegation of authority
847. refers to the number of subordinates a superior can supervise efficiently and
effectively.
(a) Span of authority
(b) Span of control
(c) Span of direction
(d) Span of power.
848. Which one of the following best describes a sequence of steps formed to achieve a particular objective?
(a) Programs
(b) Policies
(c) Procedures
(d) Rules
849. The management function that involves setting goals and deciding how best to achieve them is known as
(a) Planning
(b) Organising
(c) Leading
(d) Controlling
850. Which of the following is not a problem faced during the implementation of the MBO process?
(a) Motivational assessment.
(b) Individual action.
(c) Group action.
(d) Appraisal of appraisers.
851. Which of the following is a limitation of MBO?

(a) Helps in the coordination of goals and plans.
(b) Provides clarity in organisational action.
(c) Emphasises short terms goals.
(d) Develop effective controls.
852. Which of the following specifies the broad parameters within which organisation members are expected to
operate in pursuit of organisational goals?
(a) Budget.
(b) Program.
(c) Project.
(d) Policy.
Page 92
853. The MBO process should receive continuous support from ........................ managers for its successful
implementation.
(a) Top Level.
(b) Middle level.
(c) First level.
(d) Link level.
854. Which of the following is not an external environment?

(a) Political.
(b) Social.
(c) Organisational policies.
(d) Technology.
855. Goals improve the cohesiveness or unity of a group as they make the group members..............
(a) Self-reliant.
(b) Independent.
(c) Inter-dependant.
(d) Self-sufficient.
856. Periodic reviews allow managers to give.................... to their subordinates.

(a) Objectives.
(b) Feedback.
(c) Bonus.
(d) Gifts.
857. The use of effective control systems does not lead to................
(a) Improved output per unit of input.
(b) Reduction in wastage.
(c) Increase in personnel turnover.
(d) Lower labour costs.
858. The first step in the decision making process is indentifying the problem; this involves the following
stages :
(a) Scanning.
(b) Categorisation.
(d) Diagnosis.
859. refers to the extent to which an alternative can be accomplished within

(a) Acceptability.
(b) Quality.
(c) Ethics
(d) Feasibility.
860. Decision alternatives must be evaluated against the. ......................... criterion to determine their
(a) Quality.
(b) Feasibility.
(c) Ethics
(d) Acceptability.
(a) Programmed and non-programmed.
862. is the first step in the decision making process :

Page 93
863. Managers using the. .................. model of decision making arrives at an optimal decision after
(a) Garbage can.
(b) Satisficing.
(c) Incremental.
(d) Rational.
864. Which of the following is not a non-rational model of decisions making?

(a) Garbage-can.
(c) Satisficing.
(d) Incremental.
865. The evaluation of an organisations task environment is necessary to understand its impact
on...................
(a) Strategic goals.
(b) Operational goals
(c) Functional goals.
(d) Individual employee goals.
866. Non programmed decisions usually involve a lot of.............................. , a condition in which the decision
maker must choose a course of action without having complete knowledge of the consequences that will follow the
implementation of the decision :
(a) Certainty.
(b) Stability.
(c) Opportunity.
(d) Uncertainty.
867. Most of the important decision that managers make are .......................... decisions :
(a) Functional
(b) Programmed
(c) Non programmed
(d) Tactical.
868. The most significant decisions made in today’s complex environment are taken under
conditions of....................
(a) Risk.
(b) Uncertainty.
(c) Certainty.
(d) Stability
869. gives managers access to more information and knowledge.

(a) Individual decision-making.
(b) Strategic decision-making.
(c) Operational decision-making.
(d) Group decision making.
870. In which of the following steps of the decision making process is the transformation technique used?
(a) Generating alternative solutions.
(b) Evaluating alternatives.
(c) Identifying resource and constraints.
(d) Selecting an alternative.
871. Which of the following is not considered when evaluating the alternatives in the decision making
process?
(a) Feasibility.
(b) Quantity.
Page 94
(c) Quality.
(d) Acceptability.
872. Which of the following approaches is not used in the decision making process when selecting an
alternative?
(a) Experience.
(b) Experimentation.
(c) Acceptability.
(d) Research and analysis.
873. The first step in the decision making process is identifying the problems. This involves :
(a) Scanning.
(b) Categorisation.
(d) Diagnosis.
874. refers to the extent to which an alternative can be accomplished within

(a) Acceptability.
(b) Quality.
(c) Ethics
(d) Feasibility.
875. Decision alternatives must be evaluated against the. ......................... criterion to determine their
(a) Quality.
(b) Feasibility.
(c) Ethics
(d) Acceptability.
(a) Programmed and non programmed.
877. is the first step in the decision making process :

878. Managers using the. .................. model of decision making arrives at an optimal decision after
(a) Garbage can.
(b) Satisficing.
(c) Incremental.
(d) Rational.
879. Which of the following is not a rational model of decisions making?

(a) Garbage-can,
(c) Satisficing.
(d) Incremental.
880. Decisions that deal with strategies for mergers, acquisitions, and takeovers are.............................. in nature.
(a) Programmed.
(b) Non-programmed.
(c) Operational.
(d) Tactical.
Page 95
882. control systems help managers manage inputs in such a way that they are
available at the right place and at the right time and in the right quantity at minimum cost.
(a) Budgetary
(b) Inventory
(c) Financial
(d) Quality.
883. Which of the following control systems help managers ensure that actual performance is in tune with
planned performance?
(a) Budgetary control systems.
(b) Financial control systems.
(c) Inventory control systems.
(d) All the above.
884. Which of the following is a self-regulating control system that can automatically monitor the situation
and take corrective action :
(a) Cybernetic control system.
(b) Non-cybernetic control system.
(c) Multiple control system.
(d) Feedback control system.
885. Which of the following is a control technique applied during or following the completion of an activity :
(a) Direct control.
(b) Preventive control.
(c) Corrective control.
(d) Activity control.
886. The main source of information for .................managers are mostly internal.
(a) Input.
(b) Output.
(c) Storage.
(d) Instruction.
887. An international enterprise has to scan the. ........................ market to identify threats and opportunities
for the company.
(a) Domestic.
(b) National.
(c) Worldwide
(d) Native market.
888. Which of the following management functions help managers in achieving desired objectives by
establishing guidelines for future activities?
(a) Staffing.
(b) Controlling
(c) Planning
(d) Organising.
889. refers to the ability to persuade others to seek defined objectives enthusiastically :
(a) Authority
(b) Morale
(c) Leadership
(d) Controlling
Page 96
890. Which of the following is not a stage in delegating authority?
(a) Briefing.
(b) Monitoring progress.
(c) Executing.
(d) Evaluating results
891. Which of the following is a limitation of decentralisation?

(a) Does not aid organisation in adapting to the environment.
(b) Gives managers more freedom.
(c) Considerable expense for training managers.
(d) Adds to burden on top management.

(c) Discipline.
(d) Scalar chain.
893. is the unbroken line of authority linking each employee with the top most position

(a) Security.
(b) Status.
(d) Social satisfaction.
895. are action oriented and provide an energising thrust towards the achievement of
goals :
(a) Drive.
(b) Need
(c) Goals
(d) Wants.
896. Internal information used for operations control provided by management information systems is used
by...................
(a) Top Level managers.
(c) Link level managers.
(d) First level managers.
(c) Inflexible.
(d) Adaptable.
898. Organisations with. .................. structures usually have many hierarchical levels and narrow spans
of control.
(a) Flat.
(b) Broad.
(c) Wide.
(d) Tall.
899. ........ is the crux of entrepreneurship?

(a) Management.
(b) Doing business.
(c) Innovation.
Page 97
(d) Goals.
900. Which of the following is not one of the bases of power that managers rely on?
(a) Coercive.
(b) Reward
(c) Expert
(d) Illegitimate
901. The structural methods used for promoting innovation help organisations implement ............................. and
achieve goals.
(a) Procedures
(b) Policies
(c) Strategies
(d) Rules
902. In the .............. , managers consider the impact of changes in the external environment on the
firm and on every aspect of planning :
(a) Open systems approach
(b) Management information system
(c) Closed system approach
(d) Grass-root budgeting
903. Participation and commitment from which of the following level(s) of management is necessary
for the success of an MBO program.
(a) Top level.
(b) Lower level.
(c) Middle level.
(d) All the above.
904. A/ an .................... is an environment condition that has the possibility of undermining an

organisations competitive capability.
(a) Strength.
(b) Threat.
(c) Opportunity.
(d) Weakness.
906. A/an ....................organisation refers to a group of people working together cooperatively, under
authority, toward goals that mutually benefit the participants and the organisation.
(a) Informal.
(b) Partly Informal.
(c) Formal.
(d) Stable.
907. refers to the grouping of activities and resources in a logical fashion.

(a) Organising.
(b) Staffing.
(c) Planning.
(d) Controlling.
908. Which of the following interactive subsystems is used to develop an open system model and is known as
production function?
(a) Technical
(b) Boundary-spanning
(c) Managerial.
(d) Financial.
Page 98
(a) People.
(b) Position.
(c) Relationships.
(d) Public.
910. Which one among the following areas for strategic goals indentifies factors that indicate the financial
well being of an organization?
(b) Productivity
911. Which of the following describes the distribution of organizations resources over the areas in which it
competes?
(a) Resource deployment
(b) Resource accumulation
(c) Resource gathering
(d) Resource garnering
912. What do managers do in a liaison role?

(a) Communicate with outsiders on behalf of the organization.
(b) Communicate with people outside an within the organization
(c) Communicate organizations information to subordinates
(d) Receive information about the organization
913. A/an................... is a vital tool for providing information about organizational relationships.
(a) Organizational chart
(b) Functional chart
(c) Organizational model
(d) Functional model
914. Which one of the following management functions helps maintain managerial effectiveness for future
activities?
(a) Organizing
(b) Planning
(c) Staffing
(d) Leading
915. Which of the following occurs when a company that is headquartered in one country builds or starts
operations in a foreign country?
(a) Partnerships
(b) Direct investment
(c) Joint venture
(d) Strategic alliance
916. The high profits that a cash cow generates can be used to support ………………
(a) Question marks and stars
(b) Dogs and stars
(c) Dogs and question marks
(d) Dogs
917. Which type of departmentation is useful only at the lower level of organizations?
(a) Departmentation by simple numbers
(b) Departmentation by time
(c) Departmentation by process or equipment
(d) Departmentation by strategic numbers.
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918. Which managerial function gives attention to influencing and motivating employees to improve
performance and achieve corporate objectives?
(a) Leading
(b) Organizing
(c) Staffing
(d) Controlling
919. Which of the following processes shows how an individual seeks information about a certain issue and
how he interprets that information?
(a) Dogmatism
(b) Perception
(c) Stereotyping
920. Problems in the organization structure and the political environment are defined as …………..
constraints.
(a) Internal-internal
(b) External-internal
(c) Internal-external
(d) External-external
921. Which of the following does not explain the reluctance of managers to set goals?
(a) Fear of failure
(b) Thorough knowledge of organisational policies
(c) Lack of confidence
(d) Lack of knowledge of organizational procedures
(a) Job analysis
923. Which of the following is not considered as an irregularity in organizations?

(a) Increasing personnel turnover
(b) Decreasing personnel turnover
(c) Product defects
(d) Cost overruns
924. The principle of ................ is based on the belief that most of the negative deviations from the
standards can be over taken by applying the fundamentals of management
(a) Successive
(b) Directive
(c) Preventive
(d) Indirect
925. provide directions for the activities of an organization.

(a) Resources
(b) Goals
(c) Information
(d) Manpower
926. is also known as staffing

(a) Resource management
(b) Human management
(d) Human resource development
927. The process of developing an organizational structure is also known as ………………

(a) Organizational design.
(b) System design.
(c) Structure design.
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(d) Process design.
928. refers to the powers to make decisions to guide their actions of another.
(a) Responsibility
(b) Authority
(c) Power
(d) Delegation
929. refers to the set of documents, programs, and procedures associated with the
operations of a corporate system.
(a) Hardware
(b) Software
(c) People
(d) Data
930. Which of the following intervention techniques is concerned with the interpersonal relations and
dynamic operating in work groups?
(a) Team building
(d) Survey feedback
931. brings about changes in the way products or services are manufactured.
(a) Product innovation
(c) Incremental innovation
(d) Process innovation
932. The efficient use of resources relative to outcomes is known as ………………

(a) Innovation
(b) Financial resources
(c) Physical resources
(d) Productivity
933. Which of the following is not a step in the organizational development process?
(a) Diagnosis
(b) Interruption
(c) Intervention
(d) Evaluation
934. Which of the following is not a fixed asset?

(a) Land
(b) Building
(c) Marketable securities
(d) Machinery
935. Which of the following means is not used by managers when implementing operational research
techniques?
(a) Scientific
(b) Financial
(c) Logical
(d) Mathematical
936. A ...................... organization structure has a wide span of control and only a few
(a) Flat
(b) Narrow
(c) Tall
(d) Wide
Page 101
(c) President
(d) Supervisor
938. are related to the balance sheet instead of the income statement.
(a) Capital standard
(b) Revenue standard
(c) Program standards
(d) Cost standards
939. Which of the following decision making techniques is used to estimate the profitability of an
investment?
(a) Marginal analysis
(b) Financial analysis
(d) Ratio analysis
940. Which of the following is not an output device?

(a) Printers
(b) Visual display monitors
(c) Graphic plotters
(d) Optical scanners
941. In the MBO transformation process objectives are not stated in terms of..........
(a) Quantity.
(b) Quality.
(c) Profits
(d) Time.
942. Action plans are concerned with identifying and grouping activities in the.............................. stage of the
943. Which of the following sub-systems is an integral part of the MBO process
i. Man power planning
ii. Compensation.
iii. Appraisal
(a) i and ii.
(b) i and iii.
(c) ii and iii.
(d) i, ii and iii.

(b) Flexibility.
945. The first step in an MBO program is................

(a) Formulating action plans.
(b) Clarifying organisational roles.
(c) Establishing specific goals for various departments.
(d) Developing overall organisational goals.
Page 102
946. Which of the following terms refers to the areas in which good performance is essential for the success of
an enterprise?
(a) Key result areas.
(b) Performance areas.
(c) Significant areas.
(d) Key work areas.
responsiveness?
(a) Social audit.
948. Many people oppose the involvement of organisations in social welfare activities. Which of the following is
not a reason for their opposition to such activities?
(a) Excessive costs.
(b) Absence of mechanism to ensure accountability to society.
(c) Protecting shareholders interests.
(d) Weakened international balance.
949. Which of the following determines a person ethical or unethical behaviour?

(a) Values.
(b) Procedures.
(c) Rules.
(d) Policies.
950. In which of the following situations does the intensity of an ethical issue increase?
(a) Everyone agrees that the action is right.
(b) Many people will be harmed by the action.
(c) When the chances of the act causing harm are negligible.
(d) When the action has no serious impact on people.
951. Which of the following refers to developments in countries other than/outside the organisations home
country that have the potential to influence the organisation?
(a) Sociocultural component.
(b) Technological component.
(c) International component.
(d) Economic component.
952. divisions are set up to serve particular types of clients or customers.

(a) Customer
(b) Product.
(c) Service
(d) Geographic.
953. Which of the following is not a structural method for promoting innovation in organisations?
(a) Roles.
(b) Reservations.
(c) Environment.
(d) Differentiation.
954. Which of the following is not an advantage of functional departmentation in organisations?

(a) In depth skill development.
(b) Simplified training.
(c) Reduced coordination between functions.
(d) Clarity about career paths
955. Which of the following is not a major form of the divisional structure of departmentalisation?
(a) Product division.
(b) Geographic division.
Page 103
(c) Sales division.
(d) Customer division.
956. Which of the following is not an advantage of product division?

(a) Improves coordination of functional activities.
(b) Requires more people with general managerial abilities.
(c) Permits growth of products and services.
(d) Places attention and efforts on product line.
957. Which of the following is not a characteristic of a line manager when exercising his authority?
(a) Takes operating decisions.
(b) Direct others.
(c) Delegates.
(d) Assist others.
958. Which of the following is not a feature of the consultative style of management?
(a) Motivating employees.
(b) No upward communication flow.
(c) Downward communication flow.
(d) Managers acting as consultants.
959. The ...................... refers to the assignment of formal authority and responsibility to another person
(d) Delegation of authority.
960. The willingness of subordinates to take on additional responsibilities is a factor that affects the degree
of..............
(a) Centralisation.
(d) Controlling.
(a) Theory W
(b) Theory X
(c) Theory Y
(d) Theory Z
(b) Social culture
(d) Social programs
964. In ....................... , the opinion of experts are collected to arrive at a consensus.

(a) Interacting groups
(b) Nominal groups
(c) Delphi groups
(d) Formal groups
965. Which of the following terms refers to the measurement of performance in an organization?
Page 104
(a) Coordination
(b) Organizational development
(c) Appraisal
(d) Control
966. Which of the following is not a social need?

(a) Cooperative peers
(b) Good superiors
(c) Job security
(d) Loyal customers
967. A firm using a .................. strategy tries to specialize within a very narrow segment of the
market by establishing a position of overall cost, leadership, differentiation or both.
(a) Specific
(b) Focus
(c) Directive
(d) Differentiation
968. Which of the following represents the formulation and quantification of plans for a particular period of
time in the future?
(a) Linear programming
(b) Budgeting
(c) Leveraging
(d) Computing
969. A superior officer evaluates the performance of his subordinates in order to decide who should be
promoted. What type of power does the superior have in this case?
(a) Referent
(b) Coercive
(c) Legitimate
(d) Reward
970. Just in time is also known as stockless production and …………………..

(a) Finished goods inventory
(b) Zero inventory
(c) Raw material inventory
(d) Work in progress inventory
971. The specific roles of figurehead’s leader and liaison fall in category of. ..... role:
(a) Informational.
(b) Decisional.
(c) Organisational.
(d) Interpersonal.
972. Which of the following is not a key leadership trait as proposed by the trait theory?
(a) Leadership motivation.
(b) Honesty and integrity
(c) Rigidness.
(d) Self-confidence.
973. According to the trait theory of leadership, which of the following is a social characteristic of leaders?
(a) Interpersonal skills.
(b) Achievement
(c) Enthusiasm
(d) Adaptability
974. Which of the following is not a critical dimension of the leadership situation identified by Fiedler that
would help in deciding the most effective style of leadership?
Page 105
(a) Position power.
(b) Task structure.
(c) Organisational structure.
(d) Leader-member relations.
975. Research on leadership has been carried out at the University of Michigan, and Ohio State university.
Which of the following studies focused on the aspects of leadership?
(a) Behavioural.
(b) Situational
(c) Substitutes.
(d) Traits.
976. The. ............... leader tends to make unilateral decisions, dictates work methods, limits worker
(a) Participative
(b) Autocratic.
(c) Laissez-faire
(d) d. Democratic.
977. Fiedler’s approach to leadership is one of the popular ........... theories of leadership :
(a) Behavioural.
(b) Trait
(c) Situational
(a) Bureaucratic
(b) Democratic
(c) Autocratic
(d) Laissez faire.
980. Which type of technical innovation involves changes in the physical characteristics of a product or
the creation of new products?

982. Democratic Leadership is also known as ...................... Leadership

(a) Autocratic
(b) Participative
(c) Bureaucratic
(d) Laissez-faire

(a) Participation.
(c) Job enrichment
(d) Job description
Page 106
984. Which of the following is the origin of any motivated behaviour?
(a) Need
(b) Drives
(c) Goals
(d) Wants
985. Which of the following methods encourages the involvement of employees in the setting of objectives?
986. A collection of values, norms, beliefs, attitudes and habits that directs the behaviour of a group of people is
known as................
(a) Culture.
(b) Programs.
(c) Rules
(d) Philosophy.

988. Which of the following methods help managers find out the minimum time and cost required to complete a
project?
990. refers to unanalyzed and unorganised facts and figures describing entities.
(a) Information.
(b) Intelligence.
(c) Data
(d) Systems.
991. External information is more useful for. ............... managers :

(a) Top level.
(b) Middle level
(c) Lower level
(d) Link level
information?
(a) Customer.
(b) Employee
(c) Supplier
(d) Government

(a) Keyboard.
(b) Printers.
Page 107
(c) Floppy discs.
(d) Magnetic discs
(a) Direct control.
995. Individual differences in human beings are rooted in difference in their .................. make up.
(a) Penological
(b) Pathological
(c) Physiological
(d) Psychological
(b) Social culture
(d) Social programs
997. Organization culture is an aspect of the ................ environment of an organization.

(a) General
(b) Task
(c) Internal
(d) External
998. Which of the following describe the set of feelings or beliefs that individuals have about
(a) Attitude
(b) Dogmatism
(c) Self esteem
(d) Self efficacy
999. According to the ................. , a person’s behaviour is influenced by the environment.

(b) Emotional view
(c) Economical view
1000. A/ an....................................... organization is a network of personal and social relations not established
(a) Informal
(b) Formal
(c) Partly formal
(d) Strategic
Page 108
Multiple Choice Questions
Subject: Management Fundamentals (GE-UL-01)
1. The Practice of Management written by __________.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
2. Management is an organ, organs can be described and defined only through their functions. This
definition was given by ____________.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
3. Management is what a manger does_____________.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: C
4. To manage is to forecast and plan, to organize, to compound, to co-ordinate and to control. This
definition
was given by____________.
B. Henry Fayol.
C. Louis Allan.
D. Terry.
ANSWER: B
5. Management is the art of getting things done through and with an informally
organized_____________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
6. Management is the art and science of decision making and leadership _____.
A. Harold Koontz.
B. Donald J. Clough.
C. Louis Allan.
D. Terry.
ANSWER: B
7. Luther Gullik classifies the function of management as ___________.
A. POSDCORB.
B. POSTCARD.
C. POSDCORB.
D. POSDORBC.
ANSWER: C
8. Father of Administrative management______________.
A. Mary Parkett.
B. Lillian Gilbert.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: C
9. Pioneer of Human Relations is ___________.
A. Mary Parkett.
B. Lillian Gilbert.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: D
10. Henry Fayol laid down_____________.
A. 12 principles.
B. 13 principles.
C. 14 principles.
D. 15 principles.
ANSWER: C
11. Espirit de corps means______________.
A. union is strength.
B. service is our motto.
C. buyer beware.
D. product is our strength.
ANSWER: A
12. F.W. Taylor is associated with________________.
A. Scientific Management.
B. Future management.
C. Modern management.
D. Principles of management.
ANSWER: A
13. Management is________________.
A. an art.
B. a science.
C. an art and a science.
D. an art not science.
ANSWER: C
14. Henry Fayol was a French__________________.
A. Industrialist.
B. Writer.
C. Manager.
D. Actor.
ANSWER: A
15. General and Industrial Management was written by_________________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: D
16. Every subordinate should receive orders from and be accountable to only one superior is
__________.
C. Centralization.
D. Scalar chain.
ANSWER: B
17. Control system of an organisation has no influence over the _____________.
A. internal environment.
B. external environment.
C. customers.
D. government.
ANSWER: B
18. The chain of command from the highest authority to the lowest level in the organization is
_________.
C. Centralization.
D. Scalar chain.
ANSWER: D
19. Allotment of work to each worker on the basis of the capacity of an average worker functioning
in the
normal working condition is _____________.
A. social task planning.
C. not a planning.
D. scientific organizing.
ANSWER: B
20. Study of the movements of both the workers and the machine to eliminate wasteful movement
is
_____________.
A. fatigue study.
B. time study.
C. motion study.
D. work-study.
ANSWER: C
21. A study relating to the fixing of the working hours with rest periods to recoup the energy while
performing
in a job is called ____________.

A. fatigue study.
B. time study.
C. motion study.
D. work-study.
ANSWER: A
22. The first and foremost function of management is ___________.
A. planning.
B. organizing.
C. controlling.
D. coordination.
ANSWER: A
23. Planning lays down the overall objective, strategies and polices for the total enterprise is
___________.
A. corporate planning.
B. divisions planning.
C. unit planning.
D. department planning.
ANSWER: A
24. Strategic planning is ___________.
A. long term planning.
B. medium term planning.
C. short term planning.
D. annual planning.
ANSWER: A
25. The assumptions about future derived from forecasting and used in planning are known as
_____________.
A. planning premises.
B. freehold premises.
C. business premises.
D. corporate premises.
ANSWER: A
26. Goals, aims, purposes, missions and target is also known as ____________.
A. objective.
B. strategies.
C. policies.
D. rules.
ANSWER: A
27. Contingent plan to meet environmental pressures is ______________.
A. objective.
B. strategies.
C. policies.
D. rules.
ANSWER: B
28. A chronological sequence of steps to be undertaken to enforce a policy and to attain an objective
is known
as ___________.
A. objective.
B. strategies.
C. procedures.
D. rules.
ANSWER: C
29. A statement of expected results expressed in numerical terms for a definite period of time in the
future is
known as ____________.
A. objective.
B. strategies.
C. procedures.
D. budgets.
ANSWER: D
30. The process of establishing a time sequence for the work is known as __________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: B
31. A rigid plan, no scope for discretion __________.
A. rule.
B. schedules.
C. procedures.
D. budgets.
ANSWER: A
32. Specifying the manner of executing policy is known as ________________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: C
33. ____________ is the harmonising or synchronising of individual efforts with the purpose of
achieving
group goals.
A. coordination.
B. control.
C. decision making.
D. delegation.
ANSWER: A
34. __________ is an obligation to perform certain functions and achieve certain results.
A. responsibility.
B. decentralisation.
C. centralisation.
D. delegation.
ANSWER: A
35. Plan that establishes a required method of handling future activities is called _________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B
36. Set of clear instruction in a clear and logical sequence to perform a particular task______.
A. rules.
B. programme.
C. policy.
D. methods.
ANSWER: B
37. Employees will be promoted on the basis of seniority is an example of __________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: C
38. Steps to be taken for selecting salespersons is an example of ___________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B
39. An identified group of people contributing their efforts towards the attainment of goals is called
an
_____________.
A. organization.
B. business.
C. management.
D. department.
ANSWER: A
40. A system of co-operative activities of two or more persons is called __________.
A. department.
B. co-ordination.
C. organization.
D. control.
ANSWER: C
41. Supply of human and material resources and helps to achieve the objective of business
is______________.
A. planning.
B. organisaiton.
C. management.
D. control.
ANSWER: B
42. Formal authority flows from upwards to downwards in___________.
ANSWER: A
43. Informal authority flows upwards to downwards or horizontally in _____________.
ANSWER: B
ANSWER: A
45. Which is created for technological purpose?
ANSWER: A
ANSWER: B
47. Which type of organization is permanent and stable?
ANSWER: A
48. Which type of organization gives importance to terms of authority and functions?
ANSWER: A
ANSWER: B
50. Which organisational relationship gives a greater job satisfaction and results in maximum
production?
ANSWER: B
51. Which type of organization has no place in the organization chart?
ANSWER: B
52. Decision making is the selection based on some criteria from two or more possible alternatives is
defined
by___________.
A. Farland.
B. Mac Donald.
C. Terry.
D. M.C. Nites.
ANSWER: C
A. selection.
B. decision-making.
C. organizing.
D. budgeting.
ANSWER: B
C. major decision.
D. minor decision.
ANSWER: A
C. major decision.
D. decision.
ANSWER: A
56. The decision which is taken within the purview of the policy of the organization is_______.
C. major decision.
D. minor decision.
ANSWER: A
C. major decision.
D. minor decision.
ANSWER: A
ANSWER: A
ANSWER: B
ANSWER: B
ANSWER: C
ANSWER: D
ANSWER: B
A. major decision.
ANSWER: D
B. crisis decision.
ANSWER: C
ANSWER: B
67. Decision taken by a committee formed by the top management for specific purpose is ____.
A. group decision.
ANSWER: A

A. group decision.
B. major decision.
C. minor decision.
D. spot decision.
ANSWER: D
B. crisis decision.
ANSWER: B
70. The authority flows from top to bottom through the structure of an organization is ____.
ANSWER: B
71. Which theory is also called traditional authority theory?
ANSWER: B
72. If the subordinates do not accept the command of their superior, then the superior cannot be
said to have
any authority over them is given in.

ANSWER: A
73. The type of authority is invested with the persons by virtue of the office held by them is ____.
ANSWER: C
74. The process whereby a manager shares his work and authority with his subordinates is________.
A. Decentralisation
B. Responsibility.
C. Delegation.
D. decision making.
ANSWER: C
75. The subordinate is granted authority to perform all the functions in his department or division is
____.
ANSWER: A
76. The orders, instructions or direction are delegated to a particular person specifically is known as
____.
ANSWER: C
77. When authority is delegated as per the organisation structure it is called ____.
ANSWER: A
78. When an individual or a group agrees to work under the direction of an informal leader is called
_____.
ANSWER: B
79. Delegation made by written orders and instruction is known as ____.
A. oral delegation.
B. written delegation.
C. downward delegation.
D. sideward delegation.
ANSWER: B
80. Departmentation on the basis of activities grouped according to the type of customer is _____.
ANSWER: D
81. The process of dividing the large monolithic functional organization into small and flexible
administrative units is called ____.
A. staffing.
B. delegation.
C. departmentation.
D. control.
ANSWER: C
82. Departmentation is a part of the ___.
A. organisation process.
B. control process.
ANSWER: A
83. Banks, insurance companies and distribution agencies are examples of ____.
ANSWER: C
84. Departmentation on the basis of the production process is called ____.
A. equipment department.
ANSWER: A
85. The term span of management is also known as ____.

A. span of business.
B. span of control.
C. span of activity.
D. span of planning.
ANSWER: B
86. The number of subordinates that report directly to a single supervisor is ___.
A. span of supervision.
B. span of activity.
C. span of business.
D. span of organizing.
ANSWER: A
87. Few subordinates report directly to a manager is ____.
ANSWER: D
88. Large number of subordinates report to a manager is ____.
ANSWER: A
89. Making assignments, issuing orders and instructions, providing guidance and inspiration to
subordinates
for the achievement of organizational objective is called ___.
A. Planning.
B. Organizing.
C. Directing.
D. controlling.
ANSWER: C
90. Motivation based on force of fear is called ____.
A. negative motivation.
B. positive motivation.
D. intrinsic motivation
ANSWER: A
91. Wages, salaries, bonus, vacation pay, insurance are examples of ____.
ANSWER: A
92. Participation, recognition and power are some of the examples of ___.
ANSWER: B
93. ____ means that each section has its own workers to perform activities within the department.
A. centralisation.
B. departmentation.
C. decentralisation.
D. delegation.
ANSWER: C
94. According to Maslow, self-actualization needs is a ____.
A. high level needs.
B. medium level needs.
C. lower level needs.
D. psychological needs.
ANSWER: A
95. Expectancy motivation theory is given by ____.
A. Vroom.
B. Maslow.
C. Herzberg.
D. Mc Gregor.
ANSWER: A
96. Management By Objectives was introduced by _____.
A. Taylor.
B. Elton Mayo.
C. Peter Drucker.
D. Maslow.
ANSWER: C
97. Leadership behaviour is influenced by certain qualities of a person is ____.
A. Followers theory.
B. Trait theory.
C. Situational theory.
D. Managerial grid.
ANSWER: B
98. The leadership theory study leaders behaviour is _____.

A. Flowers theory.
B. Trait theory.
C. Behavioural theory.
D. Managerial grid.
ANSWER: C
99. All decision-making power is centralized in the leader is under ____.
B. liberal leader.
ANSWER: A
100. The leader makes decisions in consultation with his followers is ____.
B. liberal leader.
ANSWER: C
101. Complete freedom for group or individual decision, with a minimum of leader participation is
under ____.
B. democratic style.
C. free-rein style.
D. creative style.
ANSWER: C
102. A leader exercises his power over his followers because of his position held in the.
organizational
hierarchy is ____.
C. liberal leader.
ANSWER: D
103. The leader who excels as a leader because of his superior knowledge is ___-.
C. liberal leader.
ANSWER: B
104. A leader who serves as the head of the family and treats his followers like his family members is
____.
A. paternalistic leader.
C. liberal leader.
ANSWER: A
105. A leader motivates his followers to work hard by offering them rewards is ____.
A. positive style.
B. negative style.
ANSWER: C
106. A leader forces his followers to work had and penalizes them is ____.
A. positive style.
B. negative style.
ANSWER: B
107. Leader acts more as bosses then leadership style is ____.
A. positive style.
B. negative style.
ANSWER: B
108. The leader acts as a liaison officer between the employees and the outside world is ____.
A. positive style.
B. free-rein style.
ANSWER: B
109. The last function of management is____.
A. Planning.
B. Organizing.
C. Controlling.
D. Staffing.
ANSWER: C
110. Fixation of standards, measurement of performance, comparison, and correction of deviation

are the steps in________.
A. planning.
B. organizing.
C. Staffing.
D. control process.
ANSWER: D
111. Planning is looking ahead and control is_________.
A. looking back.
B. looking front.
C. looking sideward.
D. looking down.
ANSWER: A
112. Control exercised while the activity is in progress is__________.
A. concurrent control.
B. feedforward control.
C. feedback control.
D. preserving control.
ANSWER: A
113. Exchange of ideas, opinions, information etc. between two or more persons is________.
A. Planning.
B. organizing.
C. Communication.
D. Staffing.
ANSWER: C
114. Communication is a _______.
A. one-way process.
B. two-way process.
C. three-way process.
D. four-way process.
ANSWER: B
115. The person who sends a message is known as________.
A. Sender.
B. Receiver.
C. Messenger.
D. Communicator.
ANSWER: A
116. The act of making ones ideas and opinions known to others is said by_______.
A. Meyer.
B. Brown.
C. Newman.
D. Keith Davis.
ANSWER: A
117. The act of translating the message into words, pictures, symbols, signs or some other form is
known as _________.
A. Sender.
B. Receiver.
C. Encoding.
D. decoding.
ANSWER: C
118. The person who receives the message is called _________.
A. sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: B
119. Converting symbols, signs or pictures into meaning is known as _______.
A. Sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: D
120. communication that flow from superior to subordinates is________.
ANSWER: A
121. Informal communication is commonly known as ________.
D. Grapevine.
ANSWER: D
122. Communication of policies, procedures and programmes is example of_________.
ANSWER: A
123. Reports, suggestions, appeals, grievances, etc is example of_________.
ANSWER: B
124. Inter-departmental committee meeting is an example of__________.

ANSWER: C
125. Rumours and gossips are_________.
ANSWER: D
126. Exchange of messages through spoken words is_________.
ANSWER: A
127. Lectures, group discussions, interviews, social gathering are example of _____.
ANSWER: A
128. Letters, circulars, memos, bulletin, manuals, reports are example of________.
ANSWER: B
129. The problems in communication channels is known as______.
A. organizational barriers.
B. mechanical barriers.
C. personal barriers.
D. semantic barriers.
ANSWER: B
130. The integration of objectives and activities of an organization is________.
A. control.
B. co-ordination.
C. Planning.
D. organizing.
ANSWER: B
131. Co-ordination between the activities of various departments and individuals working within the
organization is known as _________.
A. vertical co-ordination.
B. external co-ordination.
C. internal co-ordination.
D. horizontal co-ordination.
ANSWER: C
132. Scalar chain means ________.
A. hierarchy levels.
B. chain of command.
C. delegation of authority.
D. span of control.
ANSWER: A
133. The oldest type of organization__________.
B. line organization.
C. matrix organization.
D. committee organization.
ANSWER: B
134. The organization which was devised by FW Taylor was ________.
B. matrix organisation.
C. committee organization.
D. line and staff organization.
ANSWER: A
135. Devices which shows the organizational relationships________.
A. organizational charts.
B. scalar chain.
C. overall plan.
D. Budgets.
ANSWER: A
136. When the supervisor commands subordinates and has close supervision is called ______.
A. free-rein.
B. autocratic.
C. consultative.
D. democratic.
ANSWER: B
137. Praise, recognition and power are_______.
A. intrinsic motivation.
B. extrinsic motivation.
C. positive motivation.
D. negative motivation.
ANSWER: A
138. X and Y theory was introduced by_______.
A. Mc gregor.
B. Peter drucker.
C. Henry fayol.
D. FW taylor.
ANSWER: A
139. Time-event network is _________.
A. PERT.
B. CPM.
C. MIS.
D. statistical reports.
ANSWER: A
140. Management is ____________.
A. art.
B. science.
C. art and science.
D. humanities.
ANSWER: C
141. Decision making helps in the smooth function of the___________.
A. business.
B. staffing.
C. organization.
D. planning.
ANSWER: A
142. The transmission of thoughts from person to another is_____________.
A. communication.
B. controlling.
C. consultative.
D. organizing.
ANSWER: A
143. The study relating to the movement of a machine operator and his machine while performing
the job is
called__________.
A. time study.
B. work study.
C. motion study.
D. fatigue study.
ANSWER: C
144. Selecting a best course of action among the alternatives is called as_________.
A. decision making.
B. planning.
C. organizing.
D. controlling.
ANSWER: A
145. The decisions which are frequent and repetitive in nature are called as________.
A. non programmed decisions.
B. programmed decisions.
C. major decisions.
ANSWER: B
146. A decision which is taken to meet unexpected situation__________.
A. problem decision.
B. certainty decisions.
C. crisis decision.
D. organizational decision.
ANSWER: C
147. The right of a person to give instructions to his subordinates is known as_________.
A. responsibility.
B. authority.
C. accountability.
D. line authority.
ANSWER: B
148. Elements of delegation_________.
A. responsibility, authority, accountability.
B. authority, delegation, accountability.
C. responsibility, decentralization, centralization.
D. controlling, responsibility, authority.
ANSWER: A
149. The extent to which power and authority are retained at the top is called as________.
A. centralization.
B. decentralization.
C. responsibility.
D. accountability.
ANSWER: A
150. _____ deals with appointing people and placing them at the appropriate jobs.
A. Human resources.
B. Recruitment.
C. Staffing.
D. Placement.
ANSWER: C
SECTION: 2
1. What is the planning horizon?
A. The distance ahead for the forecasts on which plans are made.
B. The time period within which uncertainty is very low.
C. The time ahead for which there is no information.
D. The maximum time for which managers can make plans.
Correct answer: (A)
2. While guiding organization members in appropriate directions, a manager exhibits

______________
A. Consideration behavior
B. Authoritarian behavior
C. Theory y behavior
D. Leadership behavior
Correct answer: (D)
3. Which role of manager that needs to resolve major and minor crisis that may occur unexpectedly?
A. Negotiator
B. Entrepreneur
C. Resource allocator
D. Disturbance handler
Correct answer: (D)
4. Group brainstorming encourages all of the following except ______________
A. Team building
B. Analysis of alternatives
C. Convergent thinking
D. Uninhibited verbalization
Correct answer: (C)
5. ______________ is not one of the eight steps in the decision making process.
A. Identifying the problem

B. Analyzing alternative solutions
C. Implementing the decision
D. Delegating the decision making
Correct answer: (D)

6. All of the following are the levels of communication EXCEPT ______________
A. Intrapersonal Communication
B. Interpersonal Communication
C. Mediated Communication
D. Frame Communication
Correct answer: (D)
7. In which organizational form are there dual or multiple lines of authority?
A. Matrix
B. Modular
C. Multidivisional
D. Decentralized
Correct answer: (A)
8. Functional managers are responsible ______________
A. For a single area of activity

B. To the upper level of management and staff
C. For complex organizational sub-units
D. For obtaining copyrights and patents for newly developed processes and equipment
Correct answer: (A)
9. Which of the following is the determinant of organization structure?
A. Technology
B. Centralization
C. Size of the work unit
D. Coordination of activities
Correct answer: (A)
10. In communications management, to assimilate through the mind or senses is the process of
______________
A. Receiving
B. Decoding
C. Comprehending
D. Understanding
Correct answer: (B)
11. ______________ is an individual's capacity to influence decisions.
A. Span of control
B. Line authority
C. Staff authority
D. Power
Correct answer: (D)
12. What is involved in communication process?

A. Idea-encoding-channel-decoding-feedback
B. Idea-information-channel-receiver
C. Information-channel-receiver
D. Sender-receiver-channel
Correct answer: (A)
13. Frederick Taylor and Frank and Lillian Gilbreth were advocates of an approach to management
involving the use of scientific method, known as ______________
A. The contingency approach.

B. Scientific management.
C. The quantitative approach
D. Management science.
Correct answer: (B)
14. Some policies are imposed by external forces, such as ______________
A. Governmental regulatory agencies

B. Employee demands
C. Management decisions
D. Lack of funding
Correct answer: (A)
15. The job design would be LEAST formal in a ______________
A. Matrix structure
B. Professional bureaucracy
C. Divisionalized structure
D. Machine bureaucracy
Correct answer: (B)
16. Which of the following is not an example of formal communication?
A. Contact
B. email
C. Project status report
D. Status meeting
Correct answer: (B)
17. All of the following are communication tools EXCEPT ______________
A. Memos
B. Verbal circulation of a rumor
C. Body language
D. Inputting data into a spreadsheet
Correct answer: (D)
18. ______________ is a communication that flows from a higher level to one or more lower levels
in the organization.
A. Horizontal communication
B. Upward communication
C. Downward communication
D. None of given options
Correct answer: (C)
19. Which management concept suggests that low-importance decisions be handled by

subordinates, so that managers can focus on high-importance decisions?
A. management by objective
B. management by exception
C. participatory management
D. inclusionary management
Correct answer: (B)
20. Authority, discipline, unity of command, and unity of direction are ______________
A. Principles of the human relations movement.

B. Taylor's four principles of management.
C. Elements of Weber's ideal bureaucratic structure.
D. Four of Fayol's fourteen principles of management.
Correct answer: (D)
21. Organization structure primarily refers to ______________
A. how activities are coordinated and controlled

B. how resources are allocated
C. the location of departments and office space
D. the policy statements developed by the firm
Correct answer: (A)
22. Policies are sometimes defined as a(n) ______________
A. Shortcut for thinking

B. Action plan
C. Substitute for strategy
D. Substitute for management authority
Correct answer: (A)
23. The problem-solving process begins with ______________
A. Clarification of the situation

B. Establishment of alternatives
C. Identification of the difficulty
D. Isolation of the cause
Correct answer: (C)
24. Scalar chain refers to ______________
A. The line of authority from top management to the lowest rank

B. Degree to which subordinates are involved in decision making
C. Every employees should receive orders from only one superior
D. People and materials should be in the right place at the right time
Correct answer: (A)
25. Which of the following is the determinant of organization structure
A. Technology
B. Centralization
C. Size of the work unit
D. Coordination of activities
Correct answer: (A)
26. ______________ is the process of getting results accomplished through others.
A. Ordering
B. Mandating
C. Delegating
D. Working
Correct answer: (C)
27. The receiver filters messages based on all but the following ______________
A. Culture
B. Semantics
C. Language
D. Distance
Correct answer: (D)
28. The communication process must have a medium to convey information between two or more
parties. The three common media are ______________.
A. Written, spoken, and signalized

B. Visual, audio, and tactile
C. Seeing, talking, and listening
D. Seeing, listening, and touching
Correct answer: (B)
29. The decision-making model consists of four styles: directive, analytic, behavioral and
______________.
A. Conceptual
B. Intuitive
C. Group interaction
D. Laggard
Correct answer: (A)
30. Which of the following is not a basic function of the management process?
A. Controlling
B. Organizing
C. Working
D. Leading
Correct answer: (C)
31. What is the term used to define the number of subordinates directly controlled by a manager?
A. Division management
B. Departmentation
C. Investment span
D. Span of management
Correct answer: (D)
32. Which of the following is not a basic function of the management process?
A. Controlling
B. Organizing
C. Working
D. Leading
Correct answer: (C)
33. In general, if a policy is not thought out and established ______________
A. A situation requiring action will arise

B. Social issues will cause change in the organization
C. Managers will be hired from the outside
D. There will be significant staff turnover
Correct answer: (A)
34. Who is the person was well known for the "Hawthorne Studies"?
A. Elton Mayo
B. Max-Weber
C. Chester Barnard
D. Mary Parker Follet
Correct answer: (A)
35. Maslow and Herzberg are two examples of ______________ theories of motivation.
A. Expectancy
B. Content
C. Process
D. Equity
Correct answer: (B)
36. Which type of decision making is carried out by lower level management and deals with specific
day ______________ day processes?
A. Programmed decision making

B. Operational decision making
C. Administrative decision making
D. Mid-level decision making
Correct answer: (B)
37. Which management theorist is responsible for the motivation-hygiene theory?
A. Abraham Maslow
B. Dale Hawthorne
C. Peter Drucker
D. Frederick Herzberg
Correct answer: (D)
38. Strategic planning as a broad concept consists of ______________
A. Corporate strategy and business strategy

B. Strategy formulation and strategy implementation
C. Inputs and outputs
D. Environmental analysis and internal analysis
Correct answer: (B)
39. Which of the following is NOT a principle of management given by Taylor?
A. Science, not rule of the Thumb

B. Functional foremanship
C. Maximum not restricted output
D. Harmony not discord
Correct answer: (B)
40. Equity theory of motivation focuses on ______________
A. Peoples expectation of different outcomes for a given action

B. Peoples perception of how fairly they have been treated in comparison with others
C. The motivational force involved in a person’s action at work
D. People’s perception of how they should perform in a given situation at work
Correct answer: (B)
Unit 2:
41. Supervisory staff management constitutes the ______________ of the management ladder.
A. highest rank.
B. middle rank.
C. lowest rank.
D. administration rank.
Correct answer: (C)

42. Combining several techniques which can be applied to all kinds of efficiency problems, including
labour productivity problems is called as ______________.
A. work study.
C. fatigue study.
D. time study.
Correct answer: (A)
43. ______________ is a place where production plans are executed but the people working therein
have nothing to do with the framing of the plans.
A. Factory
B. Store
C. Office
D. Departments
Correct answer: (A)
44. According to Fayol, business activities can be broadly classified into ______________ categories.
A. 4.
B. 5.
C. 6.
D. 7.
Correct answer: (C)
45. A hierarchy of superiors ranging from the ultimate authority to the lowest ranks is called as
______________.
A. hierarchical order.
B. social order.
C. scalar chain.
D. direction.
Correct answer: (C)
46. Under scientific management, planning had been separated from ______________.
A. direction.
B. execution.
C. organizing.
D. determination.
Correct answer: (B)
47. Planning is done for ______________.
A. A specific period.
B. Various department.
C. An organization.
D. The employees.
Correct answer: (A)
48. Planning does not come to an end with the establishment of a business concern because it
is'______________.
A. common to all.
B. flexible.
C. a continuous process.
D. a linchpin for all activities.
Correct answer: (C)
49. According to time, plan can be divided into ______________ types.
A. 3.
B. 4.
C. 2.
D. 5.
Correct answer: (A)
50. The organization should have an effective network to ______________ all the information that is
relevant to planning of the goals at every level.
A. communicate.
B. control.
C. co-ordinate.
D. develop.
Correct answer: (A)
51. Secondary information relating to the methods in planning process can be obtained by
______________.
A. informal scanning.
B. formal scanning.
C. environmental monitoring.
D. websites.
Correct answer: (B)
52. Secondary plans flow from ______________ plans.
A. basic.
B. strategic.
C. top management.
D. employees view.
Correct answer: (A)
53. Organizational planning is done by ______________.
A. top level management.

B. middle level management.
C. low level management.
D. people from all level of management.
Correct answer: (A)
54. A ______________denotes activities of a broad nature including many different functions &
interactions.
A. programme.
B. problem.
C. project.
D. budget.
Correct answer: (A)
programme.
55. Planning seeks to examine a series of ______________.
A. flexibility.
B. cause-effect relationship.
C. process.
D. continuity.
Correct answer: (B)
56. ______________ may be defined as the future results or a desired state of affairs which the
organization seeks and strives to achieve.
A. Objectives.
B. Policies.
C. Procedures.
D. Rules.
Correct answer: (A)
57. The Hawthorne studies______________.
A. found that to increase worker efficiency, management must analyze and minimize the
motions required to complete a task.
B. found that when workers know they are being watched, their productivity increases
C. found that a worker is inherently lazy and will use any excuse not to perform their duties.
D. found that workers accept a managerial directive only if it is acceptable in terms of their
personal interests.
Correct answer: (B)
58. The resources within an organization, used to achieve its goal, make up the______________ of a
business.
A. external environment.
B. internal environment.
C. social responsibility.
D. workers motivation.
Correct answer: (B)

59. Which of the following is the most common type of departmentalization?
A. Customer/Market Departmentalization
B. Function Departmentalization
C. Geography Departmentalization.
D. Process Departmentalization.
Correct answer: (B)
60. Which of the following is NOT a major influence on the rate of compensation?
A. Competition.
B. Voluntary retirement.
C. Laws.
D. Unions.
Correct answer: (B)
61. Rules, duties and responsibilities of workers are given in writing in______________.
C. business organisation.
Correct answer: (A)
A. Formal Organization.
B. Informal Organization.
C. Business Organization.
D. Strategic Organization.
Correct answer: (B)
63. Deal with routing and repetitive problems is a ______________.
C. major decision.
D. minor decision.
Correct answer: (A)
64. The decision dealing with novel and non-repetitive problems is______________.
Correct answer: (A)
65. Programmed decision is also known as ______________.

Correct answer: (D)
66. The decision which is implemented within the concerned department is known as
______________.
Correct answer: (B)
67. Departmentation is a part of the ______________.
A. organisaton process.
B. control process.
Correct answer: (A)
68. Departmentation on the basis of activities grouped according to the type of customer is
______________.
A. Departmentation by function.
B. Departmentation by products.
C. Departmentation by territory.
D. Departmentation by customers.
Correct answer: (D)
69. Father of Management is ______________.
A. Henry Fayol.
B. Koontz o Donnel.
C. Fredrick Winslow Taylor.
D. Luther Gullik.
Correct answer: (A)
70. Correcting the deviations in the predetermined targets is called as ______________.
A. decision making.
B. budgeting.
C. controlling.
D. organizing.
Correct answer: (A)

71. Practitioners of management were the first to formulate the principles of management based on
their ______________.
A. skills.
B. knowledge.
C. own experience.
D. theoretical knowledge.
Correct answer: (C)
72. Administrative people need ______________ skills than technical skills.
A. managing & administering.

B. planning.
C. coordinating.
D. decision making.
Correct answer: (A)
73. Communication begins with ______________.
A. Encoding.
B. Idea origination.
C. Decoding.
D. Channel selection.
Correct answer: (B)
74. Life span of F.W.Taylor was ______________.
A. 1857 - 1915.
B. 1856 - 1915.
C. 1858 - 1916.
D. 1880 - 1940.
Correct answer: (B)
75. ______________ was developed mainly to increase the output of the average worker and to
improve the efficiency of the management.
A. Scientific management.
B. Human resource management
C. Piece rate system.
D. Time rate system.
Correct answer: (A)
76. Fayol was a ______________ Industrialist.
A. French
B. Japan
C. American
D. Australian
Correct answer: (A)

77. An employee receives order from only one superior and this concept is named as
______________.
A. unity of command.
B. unity of direction.
C. discipline.
D. centralization.
Correct answer: (A)
78. ______________ is the first & foremost function of management.
A. Planning.
B. Decision-making.
C. Forecasting.
D. Budgeting.
Correct answer: (A)
79. Planning is an interdependent process which co-ordinates ______________.
A. various departments.
B. various business activities.
C. various levels of management.
D. various dimensions.
Correct answer: (B)
80. Planning is required at ______________.
A. all the department.

B. all levels of management.
C. all the shops.
D. all the institutions.
Correct answer: (B)
81. Expand MBE.
A. Materials By Exception.
B. Management By Experience.
C. Materializing By Experience.
D. Management By Exception.
Correct answer: (D)
82. Every organization has to develop its ______________ irrespective of the differences in size,
nature of activities etc.,
A. strategic plan.
B. distinct planning process.
C. standard plan.
D. profit line.
Correct answer: (B)

83. The term alternative course of action means ______________ to achieve desired objective.
A. more than one action-plan.

B. more than one derivative plan.
C. opportunities.
D. direction plans.
Correct answer: (A)
84. Planning is a ______________ function.
A. significant.
B. pervasive.
C. development.
D. forecasting.
Correct answer: (B)
85. It is important to present yourself positively within an organization to ensure that

______________
A. customers see the organization in a negative light.

B. customers see the organization in a negative light.
C. your appearance reflects the standards within the organisation.
D. your appearance conflicts with standards within the organisation.
Correct answer: (C)
86. The duration of medium term plan is ______________.
A. 1 to 2 years.
B. 2 to 3 years.
C. 3 to 4 years.
D. 4 to 5 years.
Correct answer: (B)
87. The external environment factor that states: The values and culture that affect the way people
feel about the organization they are in and about work itself is ______________.
A. sociological factors.
B. political factors.
C. economic factors.
D. psychological factors.
Correct answer: (A)
88. All of the following are the characteristics of an organization EXCEPT ______________.
A. People.
B. Product.
C. Purpose.
D. Structure.
Correct answer: (B)

89. A ______________ organizational structure is the simplest form and has clear lines of authority
and ease of decision making.
A. horizontal
B. line
C. vertical
D. staff
Correct answer: (A)
90. Formal authority flows from upwards to downwards in______________.
C. business organisation.
Correct answer: (A)
91. Which organizational relationship gives a greater job satisfaction and results in maximum
production?
A. Formal Organization.
B. Informal Organization.
C. Business Organization.
D. Strategic Organization.
Correct answer: (B)
92. The decision which is taken within the purview of the policy of the organization is
______________.
C. major decision.
D. minor decision.
Correct answer: (A)
93. Non-programmed decision is also called ______________.
Correct answer: (C)
94. Crisis decision is also known as ______________.
A. group decision.
B. major decision.
C. minor decision.
D. spot decision.
Correct answer: (D)
95. Banks, insurance companies and distribution agencies are examples of ______________.
Correct answer: (D)
96. An unaccomplished human goal with the positive support of other resources indicates
______________.
A. unavailability of raw materials.

B. repair in machinery.
C. inability of people to work together.
D. market declination.
Correct answer: (C)
97. Placing the right person in the right job is called as ______________.
A. recruiting.
B. staffing.
C. hiring.
D. transfer.
Correct answer: (B)
98. Serving the society is called as ______________.
A. social obligation.
B. ethics.
C. responsibility.
D. human nature.
Correct answer: (A)
99. Motivating and leading the human resources towards better performance & higher productivity
is known as ______________.
A. direction.
B. commanding.
C. span of control.
D. scalar chain.
Correct answer: (A)
100. Who is the political scientist and philosopher whose main interest was to study the psychology
behind individual & group action?
A. Albert Einstein.
B. Newton.
C. Aldfer.
D. Mary Parker follet.
Correct answer: (D)

Department MBA
MCQ Chapter 2
Planning
1.Name the function of management which involves setting objectives and developing
appropriate courses of action to achieve these objectives.
A. Directing
B. Organizing
C. Planning
D. Staffing
2.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 minimized or eliminated.
D. All the above.
3. 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
organization.
4. In Management by Objective (MBO), the manager and subordinate jointly
A. Identify Common goals
B. Defines each individual’s major areas of responsibility
C. Assess the contribution of each of its members
D. All the above.
5.Objectives are decided by
A. Superior
B. Subordinates
C. Mutual consultations of both superior and subordinates
D. None of the above.
6.Management by objectives (MBO) is also known as

A. Management by results
B. Management by goals
C. Management by outcomes
D. Management by organization
7.Management by objectives (MBO) was first popularized by

A. Henry Fayol
B. Peter Drucker
C. George S. Odiorne
D. Mary Parker
8. In MBO, objectives can be

A. Collective
B. individual
C. both (A) and (B)
D. none of the above
9-In mnemonic S.M.A.R.T., ‘R’ stands for

A. Realistic
B. Reliable
C. Relevant
D. Relative
10. A desired future state that the organization attempts to realize.
Desired outcomes or targets.
A. Plan
B. Goal
11. -------------------are goals set by and for top management of the organization. These goals
are made by focusing on broad general issues.
A. Strategic Goals.
B. Tactical Goals.
C. Operational Goals.
12--------------------- are set for middle managers. These goals focus on how to operationalize
actions necessary to achieve the strategic goals.
A. Strategic Goals.
B. Tactical Goals.
13. -------------------are set by and for lower-level managers. Operational goals are usually made
to tackle shorter-term issues associated with the tactical goals and lower-managers are
responsible for their attainment.
A. Strategic Goals.
B. Tactical Goals.
14. Long term objectives are aimed to be achieved
A. Within one years
B. Within 2 years
C. In more than 3 years
D. In more than 5 years.
15. The following is (are) the disadvantage(s) of Management by Objective (MBO).

A. Inflexibility
B. Lack of relevant skill
C. Lack of individual motivation
D. All the above.
16. less than one year in order to assist their company in moving gradually toward its longer
term.
A. True
B. False
17. 5 year or more then that. Adopt to changes in external environment and focus on
overall organization performance is a --------------
A. Strategic plan.
B. Operational plan
C. Long Term Plan
Planning provides direction is a
A. Importance of planning
B. Limitation of planning
C. Characteristics of planning
D. Method
Planning requires logical and systematic thinking rather than guess work or wishful thinking.
A. Identify the related feature of planning.
B. Planning is a mental exercise.
C. Planning establishes standards for controlling.
D. Planning focuses on achieving objectives.
JSPJSPM’s Jayawant Institute of Management Studies
Department MBA
MCQ Chapter 3
Organizing
1. Organising can be defined as:-

(a) Identifying & grouping various activities
(b) Establishing productive relations for the achievement of goals
(c) Both (a) & (b)
2. Name the process which co-ordinates human efforts, assembles resources and
integrates both into a unified whole to be utilized for achieving specified objectives,
(a) Management
(b) Planning
(c) Organizing
(d) Directing
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
4. Responsibility flows from :-
(a) Superior to subordinate
(b) Subordinate to superior
(c) None of the above
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
6. Which of the following is not a process of organising:-
(b) Assignment of duties
(c) Grouping jobs
(d) Decision making
7. ___________ clearly defines what tasks & activities shall be carried out at
particular job
(a) Role clarity
(b) Coordination
(c) Job design
(d) Specialization
8. When managers are made responsible for coordinating a particular number of jobs
effectively is called
(a) Adaptation
(b) Span of control
(c) Coordination
(d) Job design
9. ________ structure is suitable when the size of the organization is large
(a) Organisational
(b) Divisional
(c) Functional
10. Which of the following is not true about formal organization:-
(a) Deliberately planned & created by management
(b) Stable & predictable
(c) Violation of rules may lead to penalties
(d) Leaders are chosen
11. Process of entrusting responsibility & authority & creating accountability of
person who work has been given:-
(a) Delegation
(b) Centralization
12. Identify the type of organisational structure which facilitates occupational
specialisation,
(b) Horizontal structure
(c) Network structure
(d) Divisional structure
13. 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
(c) Functional structure
14. 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
15. Under this type of organisational structure, manpower is grouped on the basis of
different products manufactured.
16. Which of the following is not a feature of functional structure?
(a) It promotes functional specialization.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.
17. Rishabh 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. Identify the related step in
organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships
18. Indigo Limited has a staff of 300 people which is grouped into different departments.
The organisational structure depicts that 100 people work in Production department,
150 in Finance department, 20 in Technology department and 30 in Human
Resource department. Identify the type of organisational structure being followed by
the company.
(c) Informal structure
19. 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.
20. Which of the following is not a demerit of divisional structure?
(a) It is an expensive structure to maintain, since there may be a duplication of
activities across products.
(b) All functions related to a particular product are integrated in one
department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the managers to supervise all activities related to a
particular division may lead to undesirable consequences.
21. 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
22. Which of the following is not a demerit of functional structure?
(a) It places more emphasis on the objectives pursued by a functional head than on
overall enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated
departments.
23. Lakshay has been given the task of arranging for five-day conference for foreign
delegates. In order to ensure smooth functioning of the event, he has made two
people as co-ordinators to take care of activities related to registration and
refreshment. Identify the function of management being carried out by Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) Directing
24. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behavior 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
25. Which of the following is not a demerit of informal organisation?
(a) It leads to spreading of rumours.
(b) It gives more importance to structure and work.
(c) It may restrict implementation of changes within the organisation.
(d) It puts psychological pressure on members to conform to group expectations,
even if they are against the interest of organisation.
Department MBA
MCQ Chapter 4
Decision Making
1. Controlling function finds out how far __________ deviates from standards.
(a) Actual performance
(b) Improvement
(c) Corrective actions
(d) Cost
2. 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
3. “Planning is theoretical whereas controlling is practical”
(a) True
(b) False
4. 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
5. A decision for repetitive or routine problems for which the responses have been
already been decided and been known to the person who will make the decision is
called:
a. programmed.
b. non programmed.
c. strategic.
d. professional.
6. Non programmed decisions are most likely to be made by:
a. middle management.
b. lower management.
c. top management.
d. supervisory management.
7. A decision made before the occurrence of an external or internal change is called a
_________ decision.
a. reactive.
b. proactive.
c. intuitive.
d. systematic.
8. 3A decision based primarily on an almost unconscious reliance on the decision
maker's experience without a conscious rational analysis having been made is called:
a. systematic.
b. programmed.
c. non programmed.
d. intuitive.
9. ____________ decision making is an organized, exacting, data-driven process.
a. systematic.
b. programmed.
c. non programmed.
d. intuitive.
10. The first step in decision making is to:
a. establish priorities.
b. establish specific goals and objectives.
c. identify and define the problem.
d. determine courses of the problem.
11. Problems are usually of the following type(s):
a. crisis problems.
b. routine problems.
c. problems of failing to take advantage of opportunities.
12. _____________ refers to the seriousness of a problem's effects.
a. urgency.
b. impact.
c. growth tendency.
13. The concept that a manager's freedom to make totally rational decisions is restricted
by internal and external environmental factors and by the manager's own
characteristics and decision-making ability is called:
a. bounded rationality.
b. values.
c. objective rationality.
d. A & B.
14. Several studies have examined the effect of selected personality variables on the
decision making process. These studies generally have focused on _____________
variables.
a. personality.
b. situational.
c. interactional.
15. A group brought together from different functions and levels of an organization to
consider ways in which the organization's activities could be improved is called a(n):
a. quality team.
b. process improvement team.
c. task team.
d. unit team.
16. A process in which a group of individuals generate and state ideas, but in which the
rules prohibit questioning, evaluating, or rejecting any ideas, even if they seem
ridiculous is called:
b. brainstorming.
17. A process for arriving at an evaluation of decisions, in which selected individuals are
asked to respond individually to key questions about a problem, then are provided
with a summary of the responses, all members have given and invited to respond
again is called:
b. brainstorming.
18. Which of the following is not an attribute of useful information?

a. accessible.
b. timely.
c. relevant.
d. none of the above
19. An employee in a company is working out a schedule to ensure that all the sales staff
arrive at the company conference on time. This is a:
a. non programmed decision.
b. programmed decision.
c. problem decision.
d. crisis decision.
20. ------------------------- is the idea that rationality is limited, when individuals
make decisions, by the tractability of the decision problem, the cognitive
limitations of the mind, and the time available to make the decision.
a. Bounded rationality
b. Programmed decision.
c. Problem decision.
d. Crisis decision.
21.The ------------------- to gathering information focuses on describing a phenomenon
across a larger number of participants thereby providing the possibility of
summarizing characteristics across groups or relationships
a. Quantitative approach
b. Environmental Approach
c. System Approach
d. Ethical Approach
22.In simple terms, ----------------is taken to mean decision making that has an effect
on our environment
a. Environmental decision making
b. System Approach
c. Ethical Approach
Department MBA
MCQ Chapter 5
Controlling
1. 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.
2. 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.
3. 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.
4. It is the process of ensuring that events confirm to plans.
(a) Planning
(b) Controlling
(c) Organising
(d) Directing
5. The controlling function is performed by
(b) Lower level management
(c) Middle level management
6. Controlling function brings the management cycle back to the

(a) Organising function
(b) Directing function
(c) Planning function
7. 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
8. 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)
9. 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 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
10. Which of the following is a technique used for measuring actual performance?
(a) Random sampling
(b) Personal observation
(c) Performance reports
11. 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
12. 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
(c) Management by exception
(d) Deviations
13. 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
15. The need for the controlling function is felt in
(a) Business organisations
(b) Political organisations
(c) Social organisations
16. 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.
17. 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
18.Prevents anticipated problems,Takes place in advance of actual activity Problem in
getting timely and accurate information is a characteristic of
a) Feed forward
b) Concurrent
c) Feedback
19.Takes place while an activity is in progress,The best known form of this control is direct
supervision .Helps in workers feedback is a characteristic of
a) Feed forward
b) Concurrent
c) Feedback
20.Takes place after the activity is done in some activities it is the only option ,Provides
manager with meaningful information is a characteristic of
a) Feed forward
b) Concurrent
c) Feedback
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
C. Human skills remain necessary and technical-skill needs decrease as
D. Both human-skill and technical-skill needs decrease as managers
Page 2 of 21
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
Page 3 of 21
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
Page 4 of 21
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
Page 5 of 21
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
Page 6 of 21
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
Page 7 of 21
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
Page 8 of 21
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
Page 9 of 21
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
Page 10 of 21
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
Page 11 of 21
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
Page 12 of 21
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
Page 13 of 21
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?
Page 14 of 21
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:
Page 15 of 21
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
Page 16 of 21
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
Page 17 of 21
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
Page 18 of 21
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
Page 19 of 21
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
Page 20 of 21
25 A 50 A 75 C 100 D
Page 21 of 21
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?
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.
St. Joseph’s College of Engineering 1 Downloaded From: https://cse-r17.blogspot.com
Which Quality of Principles of management is highlighted above?

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?
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
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

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
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
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
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
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?
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
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

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.
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.
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
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.
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.
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.
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
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
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
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

MG8591
PRINCIPLES OF
MANAGEMENT

REGULATIONS - 2017
FOR ALL FIVE UNITS

Downloaded from: https://cse-r17.blogspot.com
UNITS

 INTRODUCTION TO MANAGEMENT &
ORGANIZATIONS
 PLANNING
 ORGANIZING
 DIRECTING
 CONTROLLING


What are the points to be
Considered while attending
MCQs???

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.

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.

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.

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.

 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.

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.


PRINIPLES OF MANAGEMENT

MCQ’s

1. Which of these in not a function of management?
 A – Planning
 B – Aligning
 C – Staffing
 D - Controlling

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

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

MCQ’s

4. Who is called the Father of Scientific management?
 A- Charless babbage
 B – Henri Fayol
 C – Fredrick W. Taylor
 D – Henry Gantt

MCQ’s

 5. Henri Fayol’s number of principles of
management
 A- 10
 B- 6
C–8
 D- 14

MCQ’s

6. MBO stands for
 Management By Objectives
 Manpower By Opportunities
 Management By Opportunities
 Manpower By Objective


 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

MCQ’s

 8. Types of Planning includes
 A – Tactical
 B - Strategical
 C - Contigency
 D- All the above

MCQ’s

9. Pick the odd one out, “Objectives” are
 A – Aim oriented
 B – Budget oriented
 C – Purposes oriented
 D – Goals oriented

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

MCQ’s

 11. Formal organizations are not
 A- Planned and official

 B – Large in size
 C – Having definite structure
 D – Unstable in nature

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

MCQ’s

13. Prioritize by superior position, “ Manager”, “Vice
President”, “ President”, “Managing director”
A–4231
B–3241
C–3412
D–1234

MCQ’s

14. Functions of HRD
 A -Performance appraisal
 B – Training
 C – Career development
 D – All the above

MCQ’s

 15. Production creates which type of utility
 (A) Form
 (B) Place
 (C) Time
 (D) Possession


MCQ’s

 16. ________ concept increases the efficiency of
economic system.
 (A) Financing
 (B) Advertising
 (C) Marketing
 (D) Packaging

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

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

MCQ’s

 19.Price strategies change over the ____ of the
product.
 (A) Quality
 (B) Life cycle
 (C) Manufacturing

MCQ’s

 20. Business is rated on which dimensions
 (A) Market attractiveness ,
 (B) Business strength
 (D) Profit margin

MCQ’s

21- Management is a creative and ________
process.
(A) Continuous
(B) Technical
(C) Democratic

MCQ’s

22- The old control technique(s) which was (were)
used through years is (are)

MCQ’s

23- Which type of strategies do professional managers
help organizations in chalking out?
(B) Corporate
(C) Managerial

MCQ’s

24. Management exists at the ___ level of the
organization.
(A) Lower
(B) Middle
(C) Top

MCQ’s

25. Limitation(s) of control is (are)

MCQ’s

26- Management is said to be the combination of

MCQ’s

27- ___ is supposed to be immutable, unchanging and
eternal.
(A) Policy
(B) Vision
(C) Mission

MCQ’s

28- The summary of important trends in retailing
are

MCQ’s

29- Costliness of the ________ is the overriding factor
determining the extent of decentralization.
(A) Decision
(B) Staffing

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

MCQ’s

31- The objective(s) in corporate governance is (are)
(A) shareholders value maximization
(B) growth
(C) stability

MCQ’s

32- The heart of administration is the ___ function.
(A) Directing
(B) Organizing
(C) Controlling
(D) Cooperating

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

MCQ’s

34- Fedrick Winslow Taylor’s Mechanism of Scientific
Management includes

MCQ’s

35- Direction is a ________ function performed by all
the managers at all levels of the organization.
 (A) Managerial
 (B) Organizational

MCQ’s

36- Retailing category(ies) based on ownership
arrangement would be
(A) Super Markets
(B) Consumer Durables Stores
(C) Departmental Stores

MCQ’s

37- ___ is a tool for corporate governance.
(A) Training
(B) Recruitment
(C) Communication
(D) Consulting

MCQ’s

38-Horizontal co-ordination takes place ___ .
(A) upwards
(B) downwards
(C) sideways

MCQ’s

39-The internal environment factor(s) that influence
management is (are)
(A) Labor
(B) Machines
(C) Place

MCQ’s

40-What articulates the long-term goals of an
enterprise?
(A) Policies

ORGANIZATION
MANAGEMENT

41-What is the other name for vertical job loading?
(A) Job enrichment
(B) Job enlargement
(C) Job evaluation

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

MCQ’s

43-Stage of resistance
 (A) Maximum adaption

 (B) Alarm reaction disappears
 (C) Resistance increases

MCQ’s

44-Conflict management helps to understand
 (A) Nature and origin of conflict

 (B) Personality bias
 (C) Individual conflict

MCQ’s

45- ___ and ___ can prosper if they help each other.
 (A) Employees, Organization

 (B) Manager, Employees
 (C) Supervisor, Employees

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

MCQ’s

47-Individual personality trait(s) that serve as hurdle
in communication
 (A) Low adjustments

 (B) Low sociability
 (C) Low agreeableness

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

MCQ’s

49-Basic Organizational Behavior concepts take into
consideration
 (A) Nature of people

 (B) Nature of organization

MCQ’s

50- Organizational socialization includes
 (A) Developing competencies

 (B) Developing organizational values
 (C) Developing social and working relationship

MCQ’s

51- Group members should have
 (A) same salary

 (B) a common objective
 (C) same skill

MCQ’s

52-To live longer, organization need
 (A) To adapt change

 (B) To increase market share
 (D) Longer goals

MCQ’s

53-Changing task includes
 (A) Job redefinition

 (B) Job specification
 (C) Job enrichment

MCQ’s

54- ____ leaders display authority in the ___ belief that
it frightens everyone into productivity.
 (A) Negative, False

 (B) Negative, true
 (C) Positive, False

MCQ’s

55- Job enlargement means ___ .
 (A) Adding more manpower

 (B) adding other task to the job

MCQ’s

56-Term LOC in the study of personality stand for
 (A) Locus of control

 (B) Line of control
 (C) Level of control

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

MCQ’s

58- As the Supervisory level the requirement of
technical skills is the ____ .
 (A) Lowest
 (B) Medium
 (C) Average
 (D) Highest

MCQ’s

59-Perception is used in
 (A) Selection of candidate for employment

 (B) Performance appraisal

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


61-While planning for surplus, the following are the
option(s):
 (A) Reduce work hours
 (B) Redesign the jobs
 (C) Reassign the jobs


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


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


64-Name the recruitment process which is said to be a
costly affair.
 (A) Internal
 (B) External


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


66- Stephen Knauf defined HRA as ” the
measurement & ________ of Human organizational
inputs such as recruitment , training experience &
commitment
 (A) work experience
 (B) Qualification


67- One of the feature HRD goals are, ________ is a
perishable commodity.
 (A) Labor
 (B) Training
 (C) Recruitment


68- ___ assignment can also be recommended for
career development.
 (A) Mandatory
 (B) Rotational
 (C) Temporary
 (D) Permanent


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


70- Name the important component(s) in aligning
business strategy with HR practice:
 (A) Organizational Capabilities
 (B) Business Strategy
 (C) Human Resource Practices


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


72- Some organizations use ________ & committee
management as techniques of training & development
for flexitime systems.
 (A) Job enrichment
 (B) Job enlargement
 (C) Job rotation


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


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


75-The three phases of recruitment process are:
 (A) Planning, Implementing, Evaluating
 (B) Planning, Evaluating, Screening
 (C) Planning, implementing, screening


76- Name the system where the required competencies
are available through training, counseling etc.:
 (A) Recruitment
 (B) Development
 (C) Management


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


78- Name the system which is simple, less expensive
& less time consuming.
 (A) Point
 (B) Ranking


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


80- Under HRD, name the factor(s) that act as
motivating force(s).
 (A) Job enrichment
 (B) Informal organization
 (C) Participative management


81-These people are charged with the responsibility of
continuous screening of performance.
 (A) Finance committee
 (B) Audit committee
 (C) Middle management
 (D) Managers


82- ________ identifies the impact of any change on
performance.
 (A) Statistical process control
 (B) Statistical quality control


83- ___ company is generally protected from
competition.
 (A) Large
 (B) Focused
 (C) Small


84- An approach that strives to follow ethical
principles and percepts is
 (A) Ethical management
 (B) Moral management
 (C) Anger management


85-Economics of scale requires ___ .
 (A) High market share
 (B) Specialization


86-The following is (are) kind(s) of information
system
 (A) Operational level system
 (B) Knowledge level system
 (C) Management level system


87- Export entry modes are
 (A) direct/indirect export
 (B) upper/lower export
 (C) inside/outside export
 (D) all of the above


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


89- Strategic evaluation determines the effectiveness
of ________ .
 (A) Evaluation
 (B) Strategy
 (C) Product
 (D) Manpower


90-________ is a deep understanding of ones
emotions, strengths, weaknesses, needs, drives &
their effects on self and others.
 (A) Emotional quotient
 (B) Self-awareness


91- Strategic management is concerned with
 (A) short-range planning
 (B) medium-range planning
 (C) long-range planning


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


93-Market research is conducted by
 (A) by employees
 (B) by research agencies
 (C) by consultants



94- Delay in ________ measurement defeats the
purpose of evaluation.
 (A) Work
 (B) Motion
 (C) Time


95- Factor(s) to be considered while deciding
candidates for divestiture is (are)
 (A) Taxes
 (B) Availability of buyers
 (C) Market reaction


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


97- Associated external agencies means
 (A) channel members
 (B) customers
 (C) suppliers


98- Strategic management is mainly the responsibility
of
 (A) Lower management
 (B) Middle management
 (C) Top management


99- Organizational model(s) is (are)
 (A) multinational model
 (B) international model
 (C) global organizational model


100- Strategic management deals with
 (A) Business process
 (B) Business proposal
 (C) Business ethics


 Thank you

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

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

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

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

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.

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.

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
47. People in the organisations carry out diverse tasks with the aim to achieve
a) Different objectives
(b) Common objectives

48. Efficiency is concerned with
(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
49. Effectiveness relates to
(a) Doing the right task
(b) Completing activities
(c) Achieving goals
50. Management is said to be poor if it is
(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
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
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.

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
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
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
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.
(b) Discipline
(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

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
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
Mrs.H.MICKLE AANCY- PANIMALAR ENGINEERING COLLEGE Page 1

(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
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.
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.

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

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
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

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.
(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

(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.
(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

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

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
Ans: d
4. It is defined as the framework within which managerial and operating tasks are
performed.
(b) Organisational structure
(c) Informal organisation
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
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
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

the type of organisational structure followed by the organisation.
(b) Relational structure
Ans: a
8. Identify the type of organisational structure which facilitates occupational specialisation,
(b) Horizontal 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
(c) Functional 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,
Ans: b
11. Under this type of organisational structure, manpower is grouped on the basis of
different products manufactured.
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

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,
(c) Identification and division of work, Assignment of duties, Departmentalisation,
(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.
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
Ans : a
a) formal organization.
b) informal organization.

c) business or organisation.
d) strategic organization.
Ans : a
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
Ans : a
23. The responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards
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
Ans : c
25. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
Ans : c
26. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
Ans : c
27. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
Ans : b

28. Authority arises from
(a) Responsibility
(b)Formal position
(c) Accountability
Ans : a
29. Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
Ans : a
30. Accountability is derived from
(a) Authority
(b) Formal position
(c) Responsibility
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
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
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

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
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.

a. Recruitment
b. Placement
c. Selection
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
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
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
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
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

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
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

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
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

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.

(b) Vertical 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

(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?
(b) Middle level management
(c) Lower level management
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
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

(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

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

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
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
38. Upward communications refer to flow of communication from

(a) Subordinate to superior
(b) One departmental manager to another
(c) Superior to subordinate
39. Downward communications refer to flow of communication from

(a) One departmental manager to another
(b) Superior to subordinate
(c) Subordinate to superior
40. Lateral communication takes place from

(a) First to second division of the same organisattion
(b) Superior to subordinate
(c) Subordinate to superior
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
42. Which of the following is not a type of communication barriers?

(a) Semantic barriers

(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
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.

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.
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.

(a) Perquisites
(b) Productivity linked wage incentives
(c) Co-partnership
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.
(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

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

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

Principles of management- Unit-V Controlling
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
20. Which of the following is a traditional technique of managerial control?
(a) Personal observation
(b) Breakeven analysis
(c) Budgetary control
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
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.

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
(b) Lower level management
29. Controlling function brings the management cycle back to the
(a) Organising function
(b) Directing function
(c) Planning function
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
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)
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

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
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
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
(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
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
38. The need for the controlling function is felt in
(a) Business organisations
(b) Political organisations
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.

40. Reducing the workers, absenteeism in a factory by 20% is an example of

(a) Quantitative standard
(b) Qualitative standard
(c) Deviation
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

1- Management is a creative and ________ process.
(A) Continuous
(B) Technical
(C) Democratic
2- The old control technique(s) which was (were) used through years is (are)
3- Which type of strategies do professional managers help organizations in chalking out?

(B) Corporate
(C) Managerial
4- Management exists at the ___ level of the organization.

(A) Lower
(B) Middle
(C) Top
5- Limitation(s) of control is (are)

6- Management is said to be the combination of

7- ___ is supposed to be immutable, unchanging and eternal.

(A) Policy
(B) Vision
(C) Mission
8- The summary of important trends in retailing are

9- Costliness of the ________ is the overriding factor determining the extent of decentralization.
(A) Decision
(B) Staffing
10- Positive motivation makes people willing to do their work in the best way they can and improve their
________.
(A) Productivity
(B) Personality
(C) Performance
11- The objective(s) in corporate governance is (are)

(A) shareholders value maximization
(B) growth
(C) stability
12- The heart of administration is the ___ function.

(A) Directing
(B) Organizing
(C) Controlling
(D) Cooperating
13- 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
14- Fedrick Winslow Taylor’s Mechanism of Scientific Management includes

15- Direction is a ________ function performed by all the managers at all levels of the organization.
(A) Managerial
(B) Organizational
16- Retailing category(ies) based on ownership arrangement would be

(A) Super Markets
(B) Consumer Durables Stores
(C) Departmental Stores
17- ___ is a tool for corporate governance.
(A) Training
(B) Recruitment
(C) Communication
(D) Consulting
18-Horizontal co-ordination takes place ___ .

(A) upwards
(B) downwards
(C) sideways
19-The internal environment factor(s) that influence management is (are)

(A) Labor
(B) Machines
(C) Place
20-What articulates the long-term goals of an enterprise?

(A) Policies
ANSWERS:
1-(A), 2-(D), 3-(B), 4-(D), 5-(D), 6-(A), 7-(A), 8-(D), 9-(A), 10-(C), 11-(D), 12-(A), 13-(B), 14-(D), 15-(A), 16-
(D), 17-(C), 18-(C), 19-(D), 20-(B)
Sr No. Questions option 1 option 2 option 3 option 4 Correct
Ans
1 The Practice of Management written by __________. Peter F. Drucker Terry Louis Allan Henry Fayol. 1
2 Who is a person who advanced early scientific management Weber Taylor Vest Fayol 2
principles?
3 Which worked on administrative management theory I & II I & III II & III I, II & III 2
I. Fayol
II. Parker
III. Weber
4 Theory is based on positive assumptions about workers X Y Z TQM 2
5 The _____________ theory states a manager's choice of Mechanistic Managemen Organic Contingency 4
organizational structures and control systems depends on t science
characteristics of the external environment.
6 Which is not one of Fayol's principles Authority and Line of Globalization Unity of 3
responsibility Authority command
7 Theory states that the average employee is lazy and will try to do as X Y Z TQM 1
little as possible
8 Scientific management, administrative management, and classical behavioral quantitative systems 1
bureaucratic management belong to the management viewpoint perspective perspective perspective perspective
known as the
9 The theorist that advocated standard methodology for doing a task Elton Mayo Max Weber Frederick Henri Fayol 3
and suggested that workers were motivated by pay according to Taylor
output (piecework) is
10 As a Theory Y manager, you believe that your employees dislike work and need a should be are self- 4
will avoid it if hierarchy of trained to motivated
possible. authority standard and self-
and lots of methodology directed
rules and in all their toward
regulations. tasks. achieving
organization
al goals.
11 What does the case, ‘Scientific management in action’ illustrate? Scientific Managers A traditional Quality 3
management should apply approach to usually
theory is an classical management suffers as
outdated managemen can be productivity
management t theory to successfully increases.
theory. their applied to the
everyday problems of a
work if they modern
want to be organization.
more
effective.
12 According to Frederick Taylor, who was to blame for the inefficiency The unions The The The workers 2
in organizations? managers organization
as a whole
13 Which of these was not an integral part of scientific management? Differential pay Worker Systematic Work 2
rates control of selection of specializatio
production workers n
14 Which of the following is not a valid criticism of scientific Increases in pay Worker Jobs became Fear of 3
management theory? for workers were discretion too complex redundancy
not proportional over the for workers to was
to increases in execution of handle increased
productivity the task was
reduced
15 Which of the following is not a fundamental characteristics of Specialisation of Well defined Striving to be a Formal rules 3
Bureaucratic Management? labour hierarchy ‘first-class and
worker’ regulations
16 Which of these statements concerning Weber’s concept of It is based on rules It is still a It has acquired It rejects 4
Bureaucracy is not correct? and procedures relevant a negative rational
rather than concept in reputation for approaches
personal today’s inefficiency to managing
preference and organization and rigidity organization
judgment s
17 Which of the following was an early key management idea, pre- Differential pay Rule-by-the- Work Classical 3
dating the work of Frederick Taylor and Max Weber? rates office specialization managemen
t theory
18 Which of the following was the key aim of scientific management ? To increase To increase To decrease To develop 2
worker control of productivity absenteeism time-and-
production motion
studies
19 Which of the following is NOT a key concept associated with One best way Formalizatio Time-and- Systematic 2
scientific management ? n motion studies selection
20 Contingency theory suggests which of the following as a limitation of Management Managemen Everything is Managemen 1
classical management theory? approaches need t contingent t practices
to take into approaches upon the need to
account the need to take workers in an recognize
informal social life into account organization stability in
of workers at complexity the
work and environment
instability in
the
environmen
t
21 Which of the following is NOT true of scientific management? It gave rise to the
It raises It is outdated Managers 3
modern questions as as a theory as are chosen
operations to how it cannot be for their
research rewards applied to intellectual
from today’s ability and
increased modern rationality
productivity organizations
should be
distributed
22 Which of the following does NOT describe a problem with scientific Productivity It is better Improvement It is better 4
management? increases may not suited to is not suited to
be reflected in complex necessarily simple jobs
workers’ pay jobs maintainable
23 Whose writings are associated with bureaucracy? Max Weber Henri Fayol Frederick Douglas 1
Taylor McGregor
24 According to Fayol’s 14 principles of management, ‘esprit de corps’ Being treated Spirit of the Team work Spirit of 3
refers to which of the following? fairly and kindly corporation and harmony work
25 Which of the following images best captures how classical As an organism As a human As a machine As a wheel 3
management views the organization? being in an engine
26 The management process functions consist of Planning, Planning, Planning, Planning, 4

organizing, organizing, organizing, organizing,
staffing and leading and leading and leading and
directing directing staffing controlling
27 is attributed with developing the scientific management perspective Elton Mayo Robert Frank Gilbirth Frederick 4
Owens Taylor
28 Maslow in his hierarchy has not considered psychological security wealthy needs existence 3
needs needs needs
29 Maslow and Herzberg are two examples of theories of motivation process content expectancy equity 2
30 Maslow suggests that human needs are arranged in a series of levels, The hierarchy is A satisfied A need is not All of the 4
a hierarchy of importance. Which of the following statements are not necessarily in need is no necessarily above
relevant to Maslow's hierarchy of needs theory? a fixed order longer a fully satisfied
motivator before a
subsequent
need arises
Ans
1 Planning is based on decision-making forecasting staffing organizing 2
2 Planning do not consider choice communication machine Co-ordination 3
3 Strategic plans are single use plans long range plans for lower standing plans 2
management levels
4 Short-term plans guides lower level bridges gap forecasting environmental 1

management between past and factors
present
5 Planning is looking ahead guiding people delegation of fundamentals of 1
authority staffing
6 Single use plans are applicable in non- deals with recurring budgets strategic 1
recurring situation situations
7 The limitations of planning are proper environment planning premises wrong information feasibility 3
8 What are the three levels of Operational, Headquarters, Top, middle and None of the above 1
planning? intermediate and divisional and local bottom
strategic
9 All of the following would be steps Designing a sound Checking to see if Setting supporting Defining a clear 2
or concerns in the process of business portfolio an advertising spot objectives company mission
strategic planning except had been run in its
allotted time slot
10 Identify the best definition of An integrated The core activity of Setting an Devising ways of 3
planning process in which planners and organization’s achieving the
plans are planning objectives and the objectives of an
formulated, carried departments means of reaching organization
out and controlled them
11 Management by Objective (MBO) is also Management by Management by Management by Management by 1

known as results goals planning evaluation
12 Management by Objective (MBO) is a Sets of rules Series of procedure Way of thinking about All of the above 4
management
13 In Management by Objective (MBO), Identify Common Defines each Assess the All of the above 4
the manager and subordinate jointly goals individual’s major contribution of each
areas of responsibility of its members
14 Objectives are the ______ of Design End points Starting points Planning 2
Management action
15 Long term objectives are aimed to be Within one years Within 2 years In more than 3 years In more than 5 4
achieved years
16 Mangement objectives when it is being Multiple objectives Three objectives Two objectives Single objective 1
considered must have
17 The following is not true for MBO It acts an effective The superior It forces the Better management 2
Performance appraisal evaluate the management to plan and improved
tool individual concerned the activities in a communication
systematic way
18 Management by objectives (MBO) was Henry Fayol Peter Drucker George S. Odiorne Mary Parker 2
first popularized by
19 Which of the following company Dell Canon Hewlett-Packard All of the above 3
claimed that MBO led to their success
20 MBO process is as follows set worker objective – Review organizational Review organizational Review 2
Review organizational goal – set worker goal – monitor organizational goal
goal –monitor objective – monitor progress – set worker – set worker
progress – Evaluation progress – Evaluation objective –Evaluation objective – monitor
– Give reward – Give reward – Give reward progress– Give
reward – Evaluation
21 provides a focus and direction for Management by Strategy by Management by Strategic planning 1
formulating strategy to achieve objectives objectives strategy model
organizational objectives
Ans
1 A reporting relationship in which an Line of authority Centralization Unity of direction Unity of 4
employee receives orders from, and command
reports to, only one supervisor is known
as
2 is the study of how to create an Scientific Job specialization Administrative Allocation 4
organizational structure that leads to management management management
high efficiency and effectiveness
3 is the singleness of purpose that makes Unity of direction Unity of command Unity of authority Unity of 1
possible the creation of one plan of action to resources
guide managers in resource allocations.
4 Which is an organizational - environmental I & II II, III & IV I, II & III I, II & IV 1
theory?
II Contingency theory
III. The Theory of Bureaucracy
IV. Theory Z
5 Organizing refers to planning delegation of training selection 2
authority
6 Organizing aims to serve common purpose corruption authority All of the above 3
structure
7 For effective organizing, an organization principle of balance span of organization planning and 2
required management process forecasting
8 The structure of organization includes identification and informal establishing authority 1
classification of organization enterprise relationships
required activities objectives
9 Unity of command means parity of authority flow of command flow of command parity in 3
and responsibility from subordinate to from superior to controlling
superior subordinate
10 Organization structure is primarily Allocation and Allocation and Reporting and Setting 1
concerned with _________ and Delegation apportionment delegating standards and
____________ of tasks and authority delegation
11 Line organization is also known as Scalar Chain Matrix Staff 1

____________ organization
12 An advantage of the matrix structure is Because product lines Top management It is easily Improved lateral 4
said to be can be identified as has more time to understood by communications
cost centers, it devote to long term the people
facilitates financial strategic issues involved
control
13 Organizational structure is made up of Centralization Coordination Decentralization Span of control 2

key elements. Which of the following is
not one of these elements?
14 The foundations of ‘behavioral theory Structural Bethlehem steel Hawthrone The long well 2
of organization’ were laid down by experiments, Gullick corporations, experiments, coal mining
conducted by Mooney Mayo study, Weber
15 The systems approach Emphasizes the Emphasizes the Encourages the All of the above 3
technical psychological and managers to view
requirements of the social aspects the organization
organization and its both as a whole
needs and as a part of
larger
environment
16 The Contingency theory focuses on Situational variables Interrelationships Groups and Economic needs 1
human behavior of workers
Ans
1 Which of the factors listed below is not a People have to make Several Factors in the Modern 4
reason for decision making in decisions in a stakeholders will current context of information
organizations being a complex process? historical context have an interest the organization systems enable
in the decision affect the decision people to evaluate
a range of possible
outcomes
2 A solution to a problem that is arrived at Bounded rationality Programmed Non-programmed Uncertainty 3

through an unstructured process of decision decision
decision making is called a
3 As a manager moves to higher positions Programmed; less Non- Non-programmed; Programmed; 2

in an organization the ability to make programmed; less much more
_______ becomes _______ important more
4 Decision making situations can be Certainty to risk to Certainty to Certainty to risk to Uncertainty to 1
categorized along a scale which ranges uncertainty to uncertainty to uncertainty certainty to risk
from ambiguity risk
Ans
1 The characteristics of direction include guiding motivating planning performance 1
appraisal
2 Direction is a discrete process continuous process circular process supervisory process 2
3 The principles of direction do not include to have a thorough to remove the labor turnover to have an effective 3
knowledge about the inefficient communication
terms to bind the employees superior and his
employees and the subordinates
organization
4 The techniques of direction excludes an alternative device supervisory coordination standard practices 3
of communication techniques and procedures
5 Control is a function aimed at economic staffing organizational planning 3

development development
6 Control is a static activity plan pervasive All of the above 3
function
7 The objective of control is take corrective actions make plans prepare influence and 1
manpower persuasiveness
planning
8 Strategic control is implemented with micro perspective department macro motivational 3
perspective perspective perspective
9 Deviation is a term used in controlling motivation directing staffing 1
10 Controlling plays an important role in increase the costs fixing standards identify time management 3
helping opportunities
11 Difficulty in controlling the external controlling motivation staffing organizing 1
factors is a drawback for
12 Effective control requires flexibility rigidity high cost high time 1
13 The standard performances need to be actual performances costs time involved external factors 1
adjusted after measuring with
14 The process of monitoring performance Planning Organizing Leading Controlling 4
monitoring it with goals and correcting
any significant deviations is known as
1. Whose approach to management is known as 'scientific management'?
1. Taylor
2. Mayo
3. Drucker
4. McGregor
5. Herzberg
2. Herzberg's hygiene factors lead to which of the following?

1. Motivation
2. Frustration
3. Lack of dissatisfaction
4. Satisfaction
5. Dissatisfaction
3. Which of the following statements is false about the perceptual process?

1. A person's perceptual process does not learn from repeated exposure to stimuli.
2. The perceptual process includes inputs to the person
3. A person selectively attends to inputs.
4. The perceptual process plays a role in a person's adaptation to a changing environment.
4. Self-perception has all the following parts except

1. Self-esteem
2. Self-presentation
3. Self-concept
4. Distinctiveness information
5. Which of the following statements is false about attitudes?

1. An attitude is a learned predisposition about an object.
2. The three parts of an attitude are cognitive, affective, and behavioral intentions
3. Attitudes and behavior are not strongly connected.
4. Only physical objects are the targets of an attitude
6. Which of the following is not a goal of self-presentation?

1. Affect other people's impressions
2. Increase a person's influence in a situation
3. Attribution processes
4. Ensure others have an accurate impression of the person
7. Which of the following is not true about attitude formation?

1. Early family upbringing has little effect on attitude formation
2. Negative beliefs about attitude object lead to negative attitudes
3. Positive beliefs about attitude object lead to positive attitude
4. The amount and type of information a person has affect attitude formation
8. All but one of the following can change attitudes.

1. Cognitive dissonance
2. Social group norms
3. Multiple cognitions
4. Persuasive communication
9. Which of the following statements is false about the major classes of personality theories?
1. Operant-learning theory views people as learning behavior because external stimuli reinforce behavior
2. Behavior genetics says an individual's unique gene structure affects personality development
3. Cognitive social-learning theory sees behavior as largely learned by observation
4. Cognitive theory says people develop their thinking patterns as their lives unfold. This class of personality theory sees a child as unwittingly
shaped by environmental influences
10. Your organizational behavior textbook offered observations on all but one of the following stereotypes.
1. Americans are energetic
2. New Mexicans like green Chile
3. The Swiss are punctual
4. Germans are task oriented
11. Which of the following is false about perception and ethical behavior?
1. Situational and personal attributions likely do not affect an observer's belief about another person's ethical behavior
2. Many people may have inaccurate stereotypes about the ethics of people with diverse backgrounds
3. Some people deliberately manage their self-presentation to appear ethical
4. Attribution errors can affect conclusions about who is responsible for an unethical act
12. Which of the following is an incorrect statement about social perception?

1. A perceiver can make attributions and integrate the attributions to form a final impression
2. When forming an impression of a person, a perceiver first observes the person, the situation, and the person's behavior
3. The perceiver likely will not form a quick impression by making a snap judgment about the observed person
4. Social perception is the process by which people come to know and understand other people
13. Pick the incorrect statement about emotions and emotional intelligence.
1. Four dimensions define emotional intelligence including self-awareness and social awareness
2. Anger, surprise, and disgust are basic human emotions
3. Nonverbal communication plays an important role in emotional assessment
4. Behavior triggered by emotions happens slowly, with careful thought about why one behaves in a particular way
14. A commercial airline pilot who is secure, relaxed, and calm while flying likely is high in
1. Conscientiousness
2. Extroversion
3. Emotional stability
4. Openness to experience
15. A person who pauses to think about where he or she is headed in a career is likely which of the following personality types?
1. Type B personality
2. Machiavellian
3. Type A personality
4. External locus of control
16. Which of the following statements about expectancy theory concepts is wrong?
1. Valence is the preference people have for outcomes
2. Extrinsic outcomes are rewards people receive from someone else
3. Blockages have two forms: individual and organizational
4. Performance — outcome expectancy is the link between a person's effort and a desired performance level
17. Which of the following is false about equity theory?

1. People try to balance the ratios of inputs to outcomes in an exchange relationship
2. Inputs are personal characteristics and behaviors that a person brings to the employment exchange
3. Positive inequity happens when a person's ratio is less than the perceived ratio of a comparison other
4. A person can compare her or his ratio to an absolute standard of fairness
18. Which of the following is incorrect about some behavior modification concepts?
1. Extinction withdraws something the employee values to decrease the frequency of an undesirable behavior
2. Positive reinforcement applies a positive event to increase the frequency or strength of desirable behavior
3. Negative reinforcement applies a negative event to decrease the frequency of undesirable behavior
4. Intermittent reinforcement applies a consequence based on time between behaviors or number of behaviors
19. Each of the following statements is true about punishment except

1. Punishment is less potent for shaping behavior than positive reinforcement
2. Punishment stops behavior temporarily
3. The undesirable behavior can return when the source of punishment is not present
4. Punishment does not induce an emotional reaction from the punished person
20. Each statement below is true about the ethical implications of behavior modification except
1. The controller and the person being controlled interact with each other
2. Knowledge of human motivation can only be used for positive ends
3. The issue of who will control people's behavior is an important one
4. Critics say that behavior modification is used to control people
21. Pick the incorrect statement about the cognitive and behavioral theories of motivation.
1. Equity theory describes people's reactions when they feel unfairly treated
2. Expectancy theory describes how people choose from different behaviors
3. Goal-setting theory emphasizes setting external goals that a person tries to reach
4. Behavior modification uses internal psychological processes to explain motivation
22. Pick the incorrect statement below.

1. People perceive a connection between effort and a desired performance level
2. Expectancies and valences combine multiplicatively when people assess various results of their behavior
3. Expectancy theory describes people's choices among behaviors by using only valences
4. Multiple outcomes are possible for behavior
23. Which of the following statements is correct about organizational theory and organizational behavior?
1. Organizational behavior focuses on organizational design
2. Organizational behavior draws from anthropology and social psychology
3. Organizational theory draws from political science
4. Organizational theory and organizational behavior are independent of each other
24. Which approach to personality sees personality as something which is measurable?

1. Ideographic
2. Nomothetic
3. Social-radical
4. All of the above
25. Which of the following statements would be true of a person with, in Jung's (1923) terms, an extraverted personality?
1. They gain energy from social situations
2. Social situations drain them of energy
3. They get energy from within
4. They thrive on working alone
26. How are the big five personality factors (McRae and Costa, 1990, 1996) also known?
1. RIVER scale
2. BROOK scale
3. PONDS scale
4. OCEAN scale
27. Which of the following is a factor which may cause bias in an interview?
1. Predictive validity
2. Halo/horns effect
3. Hawthorne effect
4. Nomothetic approach
28. During psychology you are falling asleep. You know last night you only got three hours of sleep; therefore you have a valid reason. The
person sitting in front of you is sleeping also. You automatically think that they are lazy and really don’t care about the class. This is an
example of
1. Halo effect
2. Implicit Personality Theory
3. Observer bias
4. Stereotype
29. Which one of the following is not one of the factors in the Big Five model of personality?
1. Conscientiousness
2. Psychoticism
4. Agreeableness
5. Extraversion
30. Using your cognitive processes to regulate and control your own behavior is called:
1. Self–efficacy
2. Self–reaction
3. Peak experiences
4. Self–regulation
31. The centrality of an attitude reflects:

1. A person’s degree of negative or positive feelings about an object
2. The extent to which an attitude is related to a person’s other attitudes.
3. The extent to which an attitude is part of a person’s concept of self.
4. The attitude’s resistance to change
32. The ego-defensive function of an attitude:

1. Helps a person adjust to his/her world.
2. Helps an person defend his/her self-image.
3. Allows satisfaction to be derived from expressing central values.
4. Helps a person mentally structure and organize his/her world, to make it more predictable.
33. Cognitive dissonance occurs when:

1. The attitude to an object and the behaviour towards it are consistent.
2. The attitude to an object and the behaviour towards it are inconsistent
3. When a person has no attitude towards an object
4. When a person is unsure of his/her attitude to an object
34. Which of the following is NOT true about the link between attitudes and behaviour?
1. Attitudes do not predict behaviour as well as they predicts behavioral intentions
2. Attitudes are infallible predictors of behaviour
3. Nobody knows whether there is a link between attitudes and behaviour
4. None of the above
35. A common method of measuring attitudes is by using:

1. In-depth interviews.
2. Observing people’s behaviour
3. Semantic differential scales
4. A lie detector
36. A study of human behavior in organizational settings is

1. Individual behavior
2. Group behavior
3. Organizational behavior
4. None of these
37. Scientific Management approach is developed by

1. Elton Mayo
2. Henry Fayol
3. F.W. Taylor
4. A. Maslow
38. Organization Behavior is

1. An interdisciplinary approach
2. A humanistic approach
3. Total system approach
4. All of these
39. “Cognitve theory” of learning was given by

1. Skiner
2. Pavlov
3. Tolman
4. Piajet
40. -------is a relatively permanent change in behavior that occurs as a result of experience
1. Behavior modification
2. Learning
3. Motivation
4. Skills
41. Thematic Apperception Test (TAT) is designed to understand

1. Perception of individual
2. Personality of individual
3. Learning of individual
4. None of these
42. What do we call it when we judge someone on the basis of our perception?
What do we call it when we judge someone on the basis of our perception?
1. Stereotyping
2. Categorizing
3. Halo effect
4. Prototyping
43. Sobha is an honest and straightforward person. She believes her employees are al similarly honest and straightforward, ignoring signs that
they may be manipulating her. What perceptual shortcut is Sobha most likely using?
a. Contrast effect
b. Halo effect
c. Stereotyping
d. Projection
44. Sathish has a low absenteeism rate. He takes responsibility for his health and has god health habits. He is likely to have a (an):
a. Internal locus of control
b. External locus of control
c. Core locus of control
d. High emotional stability level
45. People with which type of personality trait commonly make poor decisions because they make them too fast?
a. Type A
b. Type B
c. Self-monitors
d. Extroverts
46. Which of the following is not a trait dimension in Big 5 personality trait?
1. Extroversion
2. Agreeableness
3. Ego
4. Culture
47. Which dimension of Big 5 personality traits represents artistically sensitive, refined etc
a. Culture
b. Emotional stability
c. Conscientiousness
d. Extroversion
48. The cognitive process through which an individual selects, organizes but misinterprets environmental stimuli s known as_____
a. Perception
b. Projection
c. Selective Perception
d. Miss-Perception
49. In Maslow’s hierarchy needs which of the following pair of needs is ranked as” lower order needs”?
1. Physiological and safety needs
2. Physiological and social need
3. Self actualization and safety needs
4. Social and esteem needs
50. Which of the following is not one of the four primary management functions?
1. Controlling
2. Planning
3. Staffing
4. Organizing
51. Determining how tasks are to be grouped is part of which management function?
1. Planning
2. Leading
3. Controlling
4. organizing

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Paper 1 – Fundamentals of Organization and Management (Syllabus 2008)

MULTIPLE CHOICE QUESTIONS

1. Who is a person who advanced early scientific management principles?

3. Which worked on administrative management theory:

6. Which is an organizational - environmental theory?

7. Theory __ is based on positive assumptions about workers.

9. Which is not one of Fayol's principles:

10. Which is not a management science theory:

13. Scientific management, administrative management, and bureaucratic management belong to

15. As a Theory Y manager, you believe that your employees

16. What does the case, ‘Scientific management in action’ illustrate?

18. Which of these was not an integral part of scientific management?

(c) Systematic selection of workers.

20. Which of the following is not a fundamental characteristics of Bureaucratic Management?

26. Which of the following is NOT true of scientific management?

(d) Operations research.

32. Which of the following is the ‘odd one out’?

38. Which of the following is not a way of overcoming resistance to change?

(b) Bullying and harassing people

39. Which of the following is the reason for resistance to change?

43. The management process functions consist of

46. Which of the following is not an organ of company management?

47. Disqualifications from becoming a Director of a company is

50. The maximum limit of holding Directorship in public companies is

52. Which of the following is a characteristic of a Public sector organization?

54. Planning is based on:

55. Planning do not consider:

56. Strategic plans are:

(c) for lower management levels.

57. Short-term plans guides:

58. Participating in the planning process makes:

60. Planning is:

61. Single use plans are:

62. Programs are a complex of:

63. The limitations of planning are:

64. What are the three levels of planning?

66. Identify the best definition of planning.

(d) Devising ways of achieving the objectives of an organisation.

67. Budget refers to

68. Which of the following indicates the importance of planning?

69. Which of the following is not a technique of planning?

70. ___________ plans have clearly defined objectives

75. Qualitative forecasting methods include

77. One purpose of short-range forecasts is to determine

80. Organizing refers to:

81. Organizing aims to serve:

82. Organizing destroys:

83. The principle of objective states:

84. For effective organizing, an organization required:

85. The structure of organization includes:

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

88. Delegation is:

89. Unity of command means:

90. Defective delegation:

93. Line organization is also known as _____________ organization.

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

(b) Bethlehem steel corporations, Mooney

97. The systems approach _______________________?

98. The Contingency theory focuses on

99. ___________ is attributed with developing the scientific management perspective.

101. ___________ refers to changes implemented by an organization due to pressure by external

102. Selection devices must:

103. The popular on-the-job training methods include:

104. Need refers to: