Question PaperIntroduction to Management (MB111): July 2005Section A : Basic Concepts• Answer all questions.• Each question carries one mark.
1. In the area of diversity, establishing task forces or committees to explore issues and provide ideas,carefully choosing work assignments to support the career development of all employees, andevaluating the extent to which diversity goals are being achieved, would most likely be classified underwhich of the following managerial roles?(a) Planning (b) Staffing (c) Leading (d) Organizing (e) Controlling.
2. When a General Manager tries to resolve a dispute between marketing department and the productiondepartment on rescheduling of orders, he is acting in which managerial role of Mintzberg?(a) Mediator (b) Disturbance handler(c) Leader (d) Spokesperson (e) Controller.
\3. Which of the following skills is most important for first level managers and includes knowledge of andproficiency in activities involving methods, processes, and procedures?(a) Human (b) Conceptual (c) Design(d) Technical (e) Administrative.
4. Managerial functions are general administrative duties that need to be carried out in virtually allproductive organizations. When a General Manager is trying to determine the number of personnelrequired for achieving the forecasted targets, it comes under which type of management function?(a) Planning (b) Organizing (c) Controlling (d) Staffing (e) Leading.
5. The Gantt Chart was invented by Henry L. Gantt. It is still used today in the production planning areaof many organizations. It was the first simple visual device to maintain production control. The chartvisually shows when tasks are supposed to be done and compares that with the(a) Scheduled delivery of materials(b) Supervisors’ estimate of completion(c) Customer’s requested date of delivery(d) Actual progress on each(e) Scheduled release of future orders
.6. Which of the following is not a generally accepted advantage of division of labor in an organization?(a) Workers’ skills in performing their jobs tend to increase(b) Workers need to know only how to perform their specific work tasks(c) Workers do not waste time in moving from one task to another(d) Workers try to make their individual tasks easier and more efficient(e) Workers obtain cross-functional expertise.
7. Tanya must constantly report to the departmental head as well as her immediate supervisor. Which ofthe following is being violated?(a) Work specialization (b) Unity of command(c) Span of control (d) Departmentalization(e) Decentralization.
8. Which of the following is not one of the philosophies of the management science approach?(a) Managers can improve the organization by using scientific methods(b) Mathematical techniques can solve organizational problems(c) Models should be used to represent the system(d) Individual work is better than teamwork(e) Observation of the system must take place.
9. Practicing ethical guidelines enables managers to become followers of moral management approach.They facilitate ethical business decisions. One such ethical guideline is Primum Non-Nocere, which2means(a) Telling the truth (b) Above all, doing no harm(c) Always acting when one has responsibility (d) Obeying the law(e) Allowing room for participation of stakeholders in the decision-making process.
10. Today, many organizations are involved in social activities. Since the expectations of the society havechanged, organizations have become more aware of their social responsibilities. A careful analysis ofargument for and against the involvement of organizations in social welfare is necessary to determinewhether an organization should implement social initiatives. The belief that businesses are beingsocially responsible when they attend only to economic interests is known as which argument against afirm being socially responsible?(a) Too much power (b) Violation of profit maximization(c) Excessive costs (d) Lack of social skills(e) Lack of accountability.
11. Archie B. Carroll, an eminent researcher in the area of social responsibility, identified three types ofmanagement, based on how ethical or moral their decisions are. The three types are MoralManagement, Amoral Management and Immoral Management. Which of the following is acharacteristic of Immoral Management?(a) Managers strive for success, but never violate the parameters of ethical standards(b) Managers follow the law not only in letter, but also in spirit(c) Managers show lack of concern about others' desire to be treated fairly(d) This type of management strives to follow ethical principles and precepts(e) It is in the best interests of the organization in the long run.
12. Which of the following refers to the basic convictions that individuals hold about what is right andwrong?(a) Perception (b) Attitude (c) Value(d) Ego Strength (e) Locus of Control.
13. The only thing that is permanent in this world is change. Changes will happen in the internalenvironment or external environment, no matter what management does. Planning can’t eliminatechange, but managers usually plan in order to(a) Decide what needs to be done when a change in environment takes place(b) Anticipate changes and develop the most-effective response to changes(c) Have the appropriate materials available when the demand for them comes about(d) Be prepared for when changes in management at the top occur(e) Recruit new people if old employees leave.
14. Planning is an endless process. The process is constantly modified to suit changes in environmentalconditions and changes in objectives and opportunities for the firm. As organizations differ in terms oftheir size and complexity, no single planning procedure is applicable to all organizations. However, allplanning processes contain some basic steps. Which of the following steps in the planning processshould be completed before the others can be addressed?(a) Put plans into action(b) State organizational objectives(c) List alternative ways of reaching objectives(d) Develop premises on which to base each alternative(e) Evaluate alternatives by weighing them in the light of premises and goals.
15. Just as organizations define goals at different levels, they also establish plans at different levels. On thebasis of the organizational level, plans can be strategic, tactical and operational. Which of the followingwould not be an accurate depiction of the differences between strategic and tactical planning?(a) Strategic planning is developed mainly by upper-level management and tactical planning isgenerally developed by lower-level management(b) Facts for strategic planning are generally easier to gather than facts for tactical planning(c) Strategic plans generally contain less detail than tactical plans(d) Strategic plans generally cover a longer period of time than tactical plans(e) Managers who are engaged in the development of strategic plans tend to work in more uncertaintythan those managers engaged in the development of tactical plans.
16. Most of the planning is carried out in today's complex environment under a state of uncertainty.Conditions of uncertainty exist when the future environment is unpredictable and everything is in a3state of flux. In an environment of such high uncertainty, which of the following strategies should beused to make a plan more effective?(a) Rely on long-term forecasting in the industry(b) Place less reliance on lower and middle management’s advice(c) Go for long-term planning, i.e., more than five years' duration(d) Adopt a directional plan with an emphasis on the short-term(e) Adopt a specific plan, which lays down clearly defined objectives.
17. The Japanese Management organizing process usually involvesI. Collective responsibility and accountability.II. Ambiguity of decision responsibility.III. Clear and specific decision responsibility.IV. Informal organization structure.V. Formal bureaucratic organization structure.(a) (I), (II) and (III) above (b) (I), (II) and (IV) above(c) (I), (II) and (V) above (d) (II), (III) and (IV) above(e) (III), (IV) and (V) above.18. In US Management style, the usual staffing position isI. Rapid advancement desired.II. Slow promotion through ranks.III. Loyalty to the profession.IV. Appraisal of short-term results.V. Promotions based on multiple criteria.(a) (I), (II) and (III) above (b) (I), (II) and (IV) above(c) (I), (II) and (V) above (d) (I), (III) and (IV) above(e) (II), (III) and (IV) above.19. Globalization has become the buzzword in today's corporate world. A large number of firms isexpanding their businesses globally to stay ahead of the cut-throat competition. Therefore it becomesnecessary that managers manage their global businesses effectively. Successful global managementrequires an attitude that is best described as(a) Ethnocentric (b) Parochial (c) Geocentric (d) Polycentric (e) Regiocentric.
20. If an employee of a multinational company indicates that she believes that since she is a citizen of thehost country, she would be best suited to manage the company, then her attitude toward the operationof the organization would most likely be classified as(a) Ethnocentric attitude (b) Polycentric attitude(c) Regiocentric attitude (d) Gendercentric attitude(e) Geocentric attitude.
21. Management Information System (MIS) is used for effective utilization of a major organizationresource, viz., management information. Which of the following is not true about MIS?(a) It can be defined as an integrated, user-machine system for providing information to supportmanagerial, operational and decision-making functions in an organization(b) Many of the terms used in MIS are imprecise and controversial(c) It incorporates a limited variety of knowledge areas(d) MIS problems are not easy to define or structure(e) The body of knowledge in MIS is relatively recent and limited.
22. Information that originates within the organization is internal information and is essential for day-todayoperations. Which of the following is an example of internal information in an organization?(a) Information about demand of new products or services(b) Information describing change in policies of suppliers(c) Details of changes in government regulations(d) Salesperson Quotas(e) Descriptions of customer satisfaction with products and services.
23. Information needs vary by level of activity and also by levels in the managerial hierarchy. For whichlevel of management would information about environmental trends be most appropriate?4(a) Top management (b) Middle management(c) First-line management (d) Lower-level management(e) The information would be valuable to all levels of management.
24. Direct control is the control that is exercised after the deviations from plans have occurred. Which ofthe following is not the underlying assumption of direct control?(a) Performance can be measured(b) Personal responsibility is absent(c) The time expenditure is warranted(d) Mistakes can be discovered in time(e) The individual who is responsible will take corrective steps.
25. JIT (Just-In-Time) inventory control is an approach to inventory control which stipulates that materialsshould arrive just, as they are needed, in the production process. Which of the following wouldgenerally not be associated with a successful JIT program, for the purpose of inventory control?(a) Well-organized receiving and handling of materials purchased from suppliers(b) Strong management commitment(c) Suppliers located in diverse and distant locations(d) High quality of materials purchased from suppliers(e) Dependable and long-lasting relationships with suppliers and customers.
26. Managers often have to choose the best alternative from a given set of alternatives. What is thetechnique that managers use for selecting an optimum combination of factors from a series ofinterrelated alternatives?(a) Economic order quantity (b) Linear programming(c) JIT system (d) Kanban(e) Distribution logistics.
27. Productivity is one of the major concerns of managers as it helps organizations survive in a competitiveenvironment. Productivity includes the overall output of goods and services that is __________ by theinputs.(a) Divided (b) Multiplied (c) Subtracted (d) Added (e) Differentiated.28. A TQM programme is not characterized by(a) A continual process(b) Efforts by all organization members(c) A focus on only a few critical work activities(d) A focus on the production process(e) Efforts to involve organization members.
29. Financial ratios are particularly important to managerial control in an organization. One such financialratio, viz., return on investment, is a ratio that attempts to measure a firm's(a) Leverage (b) Profitability (c) Liquidity (d) Reliability (e) Serviceability.
30. Control systems used in organizations can be of different kinds, depending upon the specificrequirements of the organization. Which of the following statements is true with regard tononcybernetic control system?(a) It is a self-regulating control system(b) It can automatically monitor the situation and take action(c) It is a sophisticated control system and is not easy to understand(d) It relies on human discretion(e) Comparison of actual costs with budgeted costs is done.
31. Debts are an important source of finance for a business. Which of the following ratios indicates thecompany’s ability to pay long-term debts?(a) Asset Management (b) Leverage(c) Liquidity (d) Profitability (e) Activity.32. Control is an essential part of every organization. The management process is incomplete andsometimes useless without the control function. Control function plays an important role of assistingmanagers inI. Coping with uncertainty.5II. Detecting irregularities in the organization activities.III. Centralising authority.IV. Avoiding complex situations.(a) Both (I) and (II) above (b) Both (I) and (III) above(c) Both (II) and (III) above (d) Both (III) and (IV) above(e) Both (I) and (IV) above.
33. Management by walking around (MBWA) may be used as a control technique by managers to monitorthe performance of their employees while they are performing their tasks. MBWA is based primarilyon which of the following sources of information?(a) Statistical information (b) Oral reports(c) Written reports (d) Computer databases(e) Personal observation.
34. General Manager (Marketing) of Sumit Ltd., who monitors fortnightly achievements of each managerand gives instructions for better results in marketing, is acting in terms of which function?(a) Planning (b) Auditing (c) Controlling (d) Leading (e) Organizing.
35. For becoming a successful interpersonal communicator for efficient and effective management, amanager must be able to grasp all of the following except(a) How interpersonal communication works(b) The importance of verbal versus non-verbal interpersonal communication(c) How to get the most out of the grapevine(d) The relationship between feedback and interpersonal communication(e) How certain factors act as barriers to effective interpersonal communication.
36. Listening is one of the most essential ingredients of effective communication. No message can beproperly understood without intent listening. Which of the following is not an effective listeningtechnique?(a) Avoiding premature evaluation(b) Avoiding eye contact(c) Exhibiting affirmative nods and appropriate facial gestures(d) Finding an area of interest in what the other person is saying(e) Judging the content of the message, but not the weakness of the speaker.
37. Andrew Carnegie said, "As I grow older, I pay less attention to what men say. I just watch what theydo." He was suggesting the importance of(a) Face-to-face verbal communication (b) Non-verbal communication(c) Cross-cultural communication (d) Upward communication(e) Downward communication.38. Communication is a process of exchanging ideas or information between two persons. During thecommunication process, when the message is converted to a symbolic form, it is known as(a) Encoding (b) Expanding (c) Contracting (d) Decoding (e) Deciphering.39. Interpretation of messages plays a very important role in communication within or outsideorganizations. The interpretation of a message by an individual is known as(a) Message interference (b) Perception(c) Noise (d) Semantics (e) Feedback.40. The communication process is made up of various components. A look at the various components ofthe communication process helps one appreciate the challenge of effective communication inorganizations. Which of the following is the actual physical product from the source, i.e., the sender?(a) Feedback (b) Filter (c) Message(d) Channel (e) Understanding.41. The managerial grid identified five specific leadership styles. The _____ leader believes that thoughtfulattention to the needs of people for a satisfying relationship leads to a comfortable, friendlyorganizational atmosphere and work tempo.(a) Task (b) Middle of the road(c) Country club (d) Team6(e) Impoverished.42. According to Kurt Lewin, a leader who allows his employees complete freedom to make decisions andto complete work in whatever way they think is best, is using which leadership style?(a) Democratic-participative (b) Laissez-faire(c) Autocratic (d) Democratic-consultative(e) Team management.43. Which theory of leadership states that the leader's job is to clarify the objectives they wish theiremployees to reach and to remove roadblocks that employees find as they work toward theirobjectives?(a) Fiedler’s Model (b) Path-goal Theory(c) Hersey and Blanchard's Model (d) The Ohio State Studies(e) Vroom-Yetton Model.44. German Sociologist, Max Weber, introduced the concept of ‘charisma’ into discussions of leadership.Which of the following is not generally regarded as a characteristic of charismatic leadership?(a) Behaviour that is out of the ordinary(b) Vision and the ability to articulate the vision(c) Environment sensitivity(d) Self-confidence(e) Excess attention to detail.45. According to the Tannenbaum and Schmidt Leadership model, which of the following would be mostaccurate regarding someone exhibiting behavior toward right of the continuum of leader behaviours?(a) He would be a boss-centered leader(b) He would be more likely to ask the group to make a decision(c) He would be more autocratic(d) He would be more likely to "sell" the decision(e) He would present ideas and invite questions.46. One important issue involving leadership is the argument that managers and leaders are not necessarilyone and the same. As per the argument, a major difference between management and leadership is thatleadership includes(a) Bringing together resources to achieve organizational goals(b) Designing organizational structures(c) Bringing about order and consistency(d) The ability to inspire people(e) Drawing up formal plans.47. When managers have substantial but not complete confidence and trust in subordinates and solicitadvice from subordinates while retaining the right to make final decision, Likert’s four systems ofmanagement describes it as(a) Participative leadership style (b) Benevolent-authoritative leadership style(c) Consultative leadership style (d) Exploitative-authoritative leadership style(e) Trait theory of leadership style.48. Jyotsna strives to develop friendships, prefers to work in cooperative situations, and works toward ahigh degree of mutual understanding in her relationships. Which need is she demonstrating?(a) Achievement (b) Power (c) Recognition(d) Affiliation (e) Self-actualization.49. Building on the work of Abraham Maslow, psychologist Frederick Herzberg interviewed two hundredaccountants and engineers in the vicinity of Pittsburgh in U.S.A. He propounded the famous two-factortheory of motivation, which was based on the question(a) What do people want from their jobs?(b) What is satisfaction in a job?(c) Will a person receive justice in awarding pay?(d) Who is the right boss?(e) Will the person receive respect from his/her peers and subordinates?50. According to Herzberg, the various job content factors that make individuals satisfied with their jobsare known as motivators. Which of the following can be classified as a motivator as per his two-factor7theory of motivation?(a) Supervision (b) Job Security(c) Working Conditions (d) Recognition of work(e) Socializing in work.51. To overcome the criticisms of Maslow's Need Hierarchy theory, motivation researcher ClaytonAlderfer proposed an alternative theory known as ERG theory. Which of the following is not trueabout Alderfer's ERG theory?(a) Alderfer proposed a condensed version of Maslow's Need Hierarchy theory with only threegroups of core needs, viz., existence, relatedness and growth(b) The existence needs are related to Maslow’s physiological and safety needs(c) The relatedness needs are the desire to establish and maintain interpersonal relationships(d) The growth needs are the desires to be creative and to have opportunities for personaldevelopment(e) ERG theory assumes a rigid hierarchy where a lower level need must be substantially gratifiedbefore one can move on.52. Managers need to know the different motivation theories in order to motivate individual employeesperform to the best of their ability in any type of organization. Which of the following motivationtheories states that people develop beliefs about the fairness of the rewards they receive relative to theircontributions?(a) Two-factor theory (b) ERG theory(c) Needs theory (d) Expectancy theory(e) Equity theory.53. Creative thoughts are the result of hard work and there are various techniques to foster creativity.Which of the following is one of the best-known techniques for facilitating creativity, developed byAlex F. Osborn?(a) Brainstorming (b) Synectics(c) Delphi Technique (d) Nominal Group Technique(e) Simulation.54. Managers vary in their assumptions about people working in an organization. Which of the followingmanager types would best describe an individual who believes that most people dislike work and willavoid it whenever possible?(a) Creative manager (b) Transformational manager(c) Theory Y manager (d) Theory X manager(e) Autocratic manager.55. Behavioral problems can arise in an organization due to a number of factors. One has to know theunderlying cause behind behavioral problems. Which of the following will not be a cause forbehavioral problems?(a) Lack of team-spirit (b) Lack of positive attitude(c) Blind adherence to rules (d) Personality problem(e) Perception problem.56. An intervention, in Organization Development (OD) terms, is a systematic attempt to correct anorganizational deficiency uncovered through diagnosis. Which of the following intervention techniquesis concerned with the interpersonal relations and dynamics operating in work groups?(a) Technostructural Activity (b) Team Building(c) Skill Development (d) Process Consultation(e) Survey Feedback.57. Every organization makes minor structural adjustments in reaction to changes. Change is any alterationof the "status quo". The forces of change can be internal or external to the organization. An example ofan internal force for change is(a) Marketplace (b) Government regulation(c) Technology (d) Workforce(e) Economic change.58. Most of the conflict-resolution approaches either focus on interpersonal relationships or structuralchanges. There are different conflict-resolution approaches. The conflict-resolution approach that8corresponds with a high level of assertiveness and a low level of cooperativeness, is referred to as(a) Compromising (b) Collaborating(c) Forcing (d) Avoiding(e) Accommodating.59. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of thefollowing is not a useful suggestion for providing effective feedback in an appraisal review?(a) Make the feedback goal-oriented(b) Ensure understanding(c) Keep the feedback impersonal(d) Direct negative feedback toward behaviour that is uncontrollable(e) Focus on specific behaviours.60. Which of the following contain sets of specific behaviours that represent gradations of performanceand are used as common reference points for rating employees on various job dimensions?(a) Behaviourally anchored rating scales(b) Graphic rating scales(c) Behaviour rating scales(d) Behaviour scales(e) Performance rating scales.61. There are various appraisal techniques used in an organization. A performance appraisal technique thatmakes use of feedback from supervisors, subordinates and co-workers, is known as(a) Results-oriented appraisal (b) 360-degree appraisal(c) Informal appraisal (d) Graphic Rating Scale(e) Behaviourally Anchored Rating Scale.62. A person who had applied for the post of a service representative, is asked to handle a simulatedsituation involving a complaining customer, by the company. Which of the following selection devicesis being made use of?(a) Application Blank (b) Intelligence Test(c) Personality Test (d) Work Sampling Test(e) Knowledge Test.63. Which of the following is a computerized database containing basic information about each employeethat can be used to assess the likely availability of individuals for meeting current and future humanresource needs?(a) Manpower Inventory (b) Replacement Planning(c) Succession Planning (d) Skills Inventory(e) Inventory Record File.64. Two widely used systematic job analysis approaches are the Functional Job Analysis and the PositionAnalysis Questionnaire. Of the two, Functional Job Analysis focuses on which of the followingdimensions of an individual job?I. What does the worker do with respect to data, people and jobs?II. Which machines, tools and equipment does the worker use?III. Which products or services does the worker produce?(a) Only (I) above (b) Both (I) and (III) above(c) Both (II) and (III) above (d) Both (I) and (II) above(e) (I), (II) and (III) above.65. The selection process involves choosing the candidates who best meet the qualifications and have thegreatest aptitude for the job. There are various steps in the selection process. Which of the followingsteps usually precedes the others in the selection process?(a) Selection Test (b) Comprehensive Interview(c) Application Blank (d) Reference Check(e) Physical examination of the candidate.66. In modern times, organizations have been trying to create a corporate culture with a distinct identity bymoulding the behaviour of their members. The original source of an organisation’s culture is moststrongly associated with9(a) Overseas influences (b) Political factors in the external environment(c) General economic trends (d) The vision of the organisation’s founder(s)(e) The make-up of organisational members when the organisation was established.67. Each of the following is a characteristic of organizational culture except(a) Member identity (b) Distinctiveness(c) Observed behavioral regularities (d) Uniform strength(e) Dominant and stable values.68. Power is a much broader concept than authority, and it is the ability of individuals or groups to induceor influence the beliefs or actions of other persons and groups. There can be different types of powers.According to which of the following powers, people or groups may exercise influence, because othersbelieve in them and their ideas?(a) Position (b) Legitimate (c) Expert (d) Referent (e) Coercive.69. Subordinates are vital in an organization for implementation of the ideas set forth by top management.The willingness of subordinates to take on additional responsibilities, is a factor that affects the degreeof(a) Centralization (b) Decentralization(c) Decision-making (d) Controlling (e) Staffing.70. An important issue in organizing is the extent to which authority is centralized, or its opposite,decentralization, in a formal organization structure. Centralization is at one end of a continuum and atthe other end is decentralization. Centralization refers to(a) The number of employees a manager can supervise(b) The degree to which jobs within the organization are standardized(c) The degree to which decision making is concentrated at a single point in the organization(d) The unity of command within an organization(e) The systematic delegation of authority in an organization-wide context.71. Which of the following refers to the rights inherent in a managerial position to give orders and expectthe orders to be obeyed?(a) Responsibility (b) Authority(c) Span of control (d) Unity of command (e) Unity of direction.72. Divisional structure is a type of departmentation in which positions are grouped according to similarityof products, services or markets. Which of the following is not an advantage of Divisional Structure?(a) Each unit or division can respond or react quickly, when required, because they normally do notneed to coordinate with other divisions before taking an action(b) Coordination is simplified as each division is similar to an organization, containing the variousfunctions within it(c) Individuals are able to develop in-depth areas of specialization to the same extent as in afunctional structure(d) It helps the organization to focus on serving a particular customer(e) It helps to fix responsibility and accountability for performance.73. There are three major forms of divisional structure: product division, geographic division and customerdivision. Geographic Divisions are divisions designed to serve different geographic areas. Which of thefollowing statements is false regarding Geographic Division or Departmentation?(a) It allows a manager to pay special attention to the needs and problems of the local markets(b) It provides facilities to local customers(c) It helps managers get extensive knowledge of specialized activities(d) Product function can be organized on the basis of territory by establishing plants in a particularregion(e) It requires more persons with managerial capabilities.74. Strategic Business Unit (SBU) is a more recent form of organization structure adopted by severalcompanies. Which of the following is not correct regarding Strategic Business Unit (SBU)?(a) All SBUs of an organization have the same mission(b) An SBU has well defined competitor groups(c) An SBU efficiently manages its resources in prime areas(d) An SBU should have a proper size, that is neither too small nor too large10(e) A Business Manager is appointed for each SBU and delegated the responsibility for guiding andpromoting the product.75. Departmentation can be done through four major structural alternatives: Functional structure,Divisional structure, Hybrid structure, Matrix structure. Of these, Functional departmentalizationgroups jobs by(a) Tasks they perform (b) Territory they serve(c) Type of customer they serve (d) Products they manufacture(e) Services they provide.76. Which of the following factors determine(s) an effective span of control?I. Clarity and Delegation of Authority.II. Use of Objective Standards.III. Rate of Change.(a) Only (I) above (b) Both (I) and (III) above(c) Both (II) and (III) above (d) Both (I) and (II) above(e) (I), (II) and (III) above.77. Purchasing agents are responsible for timely and reliable flow of raw materials and public relationsstaff is responsible for developing and maintaining a favorable public image of the organization. Allthese jobs, also known as interface functions form part of the(a) Boundary spanning sub system (b) Technical subsystem(c) Operational subsystem (d) Managerial subsystem(e) Formal subsystem.78. If in an organization, individuals have adequate authority and also responsibility in achievement oforganizational goals, the situation is called(a) Downward delegation (b) Authority on par with responsibility(c) Well-defined hierarchy of authority(d) Unity of direction (e) Unity of command.79. Anil, the manager of Internet Made Easy, is concerned. He is trying, like all technological basedcompanies, to stay ahead of the competition by being the first to offer the new services available on theInternet. His business offers training to local businesses, and so he must offer the latest availableinformation; however, he must also advertise the classes and the content, which means going to thepublisher with that information six weeks before a class is to begin. He also has to think what he shouldoffer in his next series of classes. Anil is operating under which of the following conditions?(a) Uncertainty (b) Certainty(c) Risk (d) Optimal decision-making (e) Maximin.80. When predictability is lower, a condition of risk exists. Which of the following is a characteristic ofdecision-making under risk?(a) The decision-maker has complete information about available alternatives, and has a good idea ofthe probability of particular outcomes for each alternative(b) The decision-maker has complete information about available alternatives, but has no idea of theprobability of particular outcomes for each alternative(c) The decision-maker has incomplete information about available alternatives, but has a good ideaof the probability of particular outcomes for each alternative(d) Future environment is unpredictable and everything is in a state of flux(e) The decision-maker is not aware of all alternatives, the risks associated with each, or theconsequences of each alternative, or their probabilities.81. The strap of Rahul's backpack tears off as he starts to throw it over his shoulder. On the way to school,he stops at the first store that carries backpacks, walks in, and purchases one off the front rack. Rahulhas just made what type of a decision?(a) Irrational decision (b) Satisficing decision(c) Risky decision (d) Optimal decision (e) Optical decision.82. Once the best available alternative has been selected, it must be effectively implemented to achieve theobjective for which it was selected. It is very much possible for a good decision to become ineffectivedue to poor implementation. Which of the following is important in effectively implementing the11chosen alternative in the decision-making process?(a) Double-checking your analysis for potential errors(b) Ignoring criticism concerning your chosen alternative(c) Getting upper-management support(d) Allowing those impacted by the outcome to participate in the process(e) Getting lower-management support.83. Managers who use a rational, intelligent and systematic approach are more likely than others to comeup with high quality solutions to the problems they face. There are two major types of decision-makingmodels. viz., the Rational Model and the Non-rational Models. Which of the following is falseregarding Rational Model of decision-making?(a) Managers are completely involved in rational decision-making processes(b) Managers possess and understand all information that is relevant to their decisions at the time theymake them(c) Managers always make decisions, which are in the best social interests of their firms(d) This view was in vogue during the first half of the nineteenth century(e) The rational view is useful in providing a benchmark against which the actual managerialdecision-making patterns can be compared.84. Tyrone currently holds a management position at XYZ Corporation. He is excellent at timemanagement and does not hesitate to delegate tasks to subordinates. Tyrone feels the most challengedand performs at his best level when unique problems arise at his company. He is most often one of thefirst managers to come up with an effective solution for the problem. Which of these can be stated ofTyrone?(a) Tyrone is excellent with programmed decisions(b) Tyrone relies too heavily on the work of others(c) Tyrone is apparently risk averse(d) Tyrone excels at deriving non-programmed decisions(e) Tyrone is an excellent resource allocation manager.85. The success of an organization greatly depends on the decisions that managers make. Decision-makingis the process by which a course of action is selected so as to deal with a specific problem. It is asystematic process and involves a series of steps. Feedback is usually used in which of the followingstages of the decision-making process?(a) Problem identification stage (b) Resources and constraints identification stage(c) Alternative evaluation stage (d) Monitoring stage(e) Implementation stage.86. Every company wants to gain competitive advantage over its competitors. So, a company followscertain strategies to achieve it. If a company is able to be unique in its industry in a manner widelyvalued by the market, it is likely to follow a(a) Diversification strategy (b) Differentiation strategy(c) Focus strategy (d) Cost-leadership strategy(e) Growth strategy.87. An objective is the object or aim of an action. It implies an explicit direction or the action taken and aspecific quality of work to be accomplished within a given period of time. Decisions relating todetermining organizational objectives and designating the corresponding action necessary to reachthem are(a) Operational control decisions (b) Strategic planning decisions(c) Management control decisions (d) Management information decisions(e) Financial control decisions.88. As an organization grows in size and complexity, specialization of various tasks becomes a necessity,in most of the cases. Which of the following refers to the tendency of a system to move towardsincreased specialization of various tasks?(a) Equifinality (b) Focus(c) Differentiation (d) Dynamic Homeostasis(e) Cost leadership.89. The eight key result areas in which Peter Drucker advises managers to set objectives include all of thefollowing except12(a) Market standing (b) Productivity(c) Public responsibility (d) Inventory control(e) Manager performance and development.90. If you were responsible for setting up an MBO program, which of the following steps would you needto complete before the others?(a) Establish specific goals for various departments, subunits and individuals(b) Formulate action plans (c) Clarify organizational roles(d) Implement and maintain self-control (e) Do performance appraisal.91. Management by Objectives (MBO) is a management process that is popular in many organizations. Itis the joint setting of goals and objectives by superiors and subordinates. A major difference betweentraditional objective setting and MBO is(a) In MBO, there are multiple objectives covering a range of organisational activities(b) In traditional objective setting the objectives, once formulated, provide direction for managementdecisions(c) In traditional objective setting the objectives, once established, form the criteria against whichactual accomplishments can be measured(d) In MBO, organisation members may actually pursue objectives other than the formalorganisational objectives(e) Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’process.92. A local firm has earned a good reputation because of quality paper bags manufactured by it. Moreover,it is environmental conscious and makes use of only recycled paper for manufacturing the bags. Sowhen the firm advertises that it uses only recycled paper products, it is(a) Meeting its social obligation(b) Being socially responsive(c) Meeting its ethical responsibilities(d) Paying attention to the bottom line(e) Paying attention to the top line.93. Complex interactions between the manager’s stage of moral development and the various moderatingvariables determine whether he will act in an ethical or unethical manner. Moderating variables includeindividual characteristics, structural design of the organization, the organizational culture and theintensity of the ethical issue. Which of the following is/are not individual characteristic(s)?(a) Perception (b) Attitudes (c) Motivation (d) Roles (e) Ego Strength.94. The most important resources of an organization are its employees - the people who work in theorganization and give it their talent, creativity and drive. Employees are vital for effective operation ofa company. Which of the following is/are true about organizationally committed and satisfiedemployees?(a) Lower rates of turnover and absenteeism(b) Higher rates of voluntary turnover (c) Higher rates of absenteeism(d) Low motivation (e) Early voluntary retirement.95. The social responsiveness of an organization can be measured on the basis of which of the followingcriteria?(a) Contributions to profit-oriented projects(b) Fair treatment of employees; fair pay and safe working conditions(c) Unequal employment opportunity(d) Unsafe and poor quality products to customers(e) Disregard to environment pollution.96. An open system model is based on organization-environment interaction. A business takes the inputs,processes and transforms them and gives the output. There is a set of interactive subsystems in such asystem. Identify from the following, the interactive subsystems.(a) Technical and managerial(b) Managerial and accounting(c) Accounting, non-technical and organizational(d) Technical, managerial and boundary spanning(e) Boundary spanning, accounting and organizational.1397. Formal planning in an organization involves formal documentation, with properly laid-down guidelinesto be followed. Which of the following statements is not a correct criticism of formal planning?(a) Planning may create rigidity(b) Planning may focus managers’ attention on today’s competition, not on tomorrow’s survival(c) No relationship exists between formal planning and organisational performance(d) Formal planning reinforces success, which may lead to failure(e) Formal plans can’t replace intuition and creativity.98. There are many steps to be followed in creating sustainable competitive advantage for any firm. Whichone of the following is not a part of this process?(a) Identify the specific target market the firm wants to serve(b) Identify the potential opportunities that have not been tapped(c) Analyze the resources and abilities to find out whether it can exploit the opportunities that havebeen identified(d) Motivate employees(e) Integrate resources and capabilities to build distinctive competencies.99. The principle of preventive control makes a sharp distinction between analyzing performance reportsand determining whether managers adopted the established principles in actual practice. All of thefollowing are advantages of preventive control except(a) One need not have a thorough understanding of managerial principles, functions and techniquesand the management philosophy(b) Greater accuracy at work is achieved in assigning personal responsibility to managers(c) Managers will be able to take corrective actions in time(d) It encourages self-control(e) It provides psychological advantage to subordinates.100. In Aid Labs, the main department is of research and development and it is very difficult for them tomeasure the output in monetary terms. So, the budgets for it are developed only in terms of themaximum resources that can be consumed by them in the past year. This kind of responsibility center isknown as(a) Standard cost center (b) Revenue center(c) Discretionary expense center (d) Investment center (e) Profit center.
