Model Question Paper

Principles of Management (SMB101)

1. Answer all 100 questions. Each question carries one mark.

Mintzberg identified ten managerial roles which were grouped into three categories. The roles of entrepreneur, disturbance handler, resource allocator and negotiator can be categorized as a! b! c! d! e! "ecisional roles #nterpersonal roles #nformational roles Administrati$e roles %rganizational roles.

2.

Managers at which of the following le$els deal with the actual operation of $arious departments in an organization& a! b! c! d! e! 'irst le$el Top le$el Middle le$el (ero le$el 'rontline le$el.

3.

The management function of influencing, moti$ating, and directing human resources toward the achie$ement of organizational goals is commonl) referred to as a! b! c! d! e! *eading +ontrolling ,lanning -taffing %rganizing.

4.

Managers need certain skills to perform the functions associated with their .obs. /hich of the following skills are important at all le$els in the organization& a! b! c! d! e! +onceptual "esign 0uman Technical Administrati$e. Tasks to be performed. 0ow tasks can best be combined into specific .obs. Authorit) and reporting relationships within the corporate hierarch). ,romotions and career planning. 2oth #! and ###! abo$e 2oth ##! and #1! abo$e #!, ##! and ###! abo$e ##!, ###! and #1! abo$e All #!, ##!, ###! and #1! abo$e.

5.

The management function of organizing in$ol$es determining #. ##. ###. #1. a! b! c! d! e!

/hich of 0enr) 'a)ol3s principles of management states that 4work specialization leads to efficienc) of operations3& a! b! c! d! e! "i$ision of labor -tabilit) Esprit de corps "iscipline "ecentralization.

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!.

As per the s)stems approach to management, an organization that interacts with e5ternal forces is termed as a6an a! b! c! d! e! +losed s)stem Model #ndependent entit) %pen s)stem +ontingenc) unit.

".

/hich of the following is6are the finding6s of 0awthorne -tudies& #. /orkplace culture sets its own production standards. ##. 'atigue is the main factor affecting the output. ###. 7ob performance depends on the indi$idual worker. a! b! c! d! e! %nl) #! abo$e %nl) ##! abo$e %nl) ###! abo$e 2oth #! and ##! abo$e All #!, ##! and ###! abo$e.

#.

/hich of the following approaches to management emphasized the human element, thus $iewing the organization from an indi$iduals3 point of $iew& a! b! c! d! e! Management science approach -cientific approach Administrati$e approach -)stems approach 2eha$ioral approach.

10. ,racticing ethical guidelines enables managers to become followers of moral management approach. The) facilitate ethical business decisions. /hich of the following is not an ethical guideline for managers& a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! 8pholding human dignit) %be)ing the law Top management commitment ,rimum non9nocere Telling the truth. +harging reasonable prices for their products Ensuring pro$ision of standardized and qualit) goods and ser$ices Abstaining from unethical practices Ensuring eas) a$ailabilit) of goods and ser$ices +reating a long9term and health) relationship with creditors. 1olunteerism 'und9raising :ec)cling 1aluing di$ersit) ;ualit) of work life. #mmoral management Moral management Amoral management +risis management "isaster management.

11. /hich of the following is not a wa) b) which business firms can fulfill their obligations towards their customers&

12. /hich of the following refers to the in$ol$ement of emplo)ees in ci$ic acti$ities&

13. /hich of the following t)pes of management stri$es to follow ethical principles and doctrines&

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14. 2ased on the frequenc) of use, plans can be categorized as single9use plans and standing plans. -tanding plans that furnish broad guidelines for channeling management thinking in a specified direction are called a! b! c! d! e! ,rocedures ,rograms -ingle9use plans ,olicies :ules.

15. ,lanning is a prerequisite not onl) for achie$ing success but also for sur$i$ing in a comple5 and competiti$e world. /hich of the following is not a characteristic of planning& a! b! c! d! e! #t is goal9oriented #t is a secondar) function #t is an intellectual or rational process #t is forward9looking #t is an integrated process.

1 . -ara is associated with a committee that is gi$en the responsibilit) to re$iew and institute a process for emplo)ees to use when requesting upgrades in computer equipment. /hich t)pe of ob.ecti$es would -ara most li$el% de$elop& a! b! c! d! e! #. ##. ###. #1. a! b! c! d! e! a! b! c! d! e! #ntermediate9term ob.ecti$es *ong9term ob.ecti$es -hort9term ob.ecti$es %rganizational ob.ecti$es "i$ision ob.ecti$es. ,h)sical and financial resources. ,rofitabilit). #nno$ation. /orker performance and attitude. 2oth #! and ##! abo$e 2oth ###! and #1! abo$e #!, ##! and #1! abo$e #!, ###! and #1! abo$e All #!, ##!, ###! and #1! abo$e. Emphasis on short9term goals Top management support 'ormulating clear ob.ecti$es Training for M2% Encouraging participation.

1!. The ke) result areas in business suggested b) ,eter "rucker include

1". /hich of the following is not a factor that would make Management b) %b.ecti$es more effecti$e&

1#. "epartmentation b) 4time3 is one of the oldest forms of departmentation, generall) used at lower le$els of the organization. /hich of the following is an ad$antage of departmentation b) 4time3& a! b! c! d! e! *ack of super$ision in the night shifts Emplo)ees ma) find it difficult to switch from one shift to another +oordination and communication becomes a problem with se$eral shifts Emplo)ees ma) postpone work in order to get paid o$ertime /orkers ma) concentrate on the total s)stem rather than concentrating on narrow and specified technical aspects.

20. The concept that defines the number of subordinates that report to a manager and that indirectl) specifies the number of le$els of management in an organization is called a! b! c! d! e! Authorized line of responsibilit) 8nit) of command 8nit) of direction -pan of control :esponsibilit) factor. ,age 3 of 21

21. According to the 2+< matri5, an -28 comprising speculati$e products that entail high risks, would be referred to as a a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! ;uestion mark 2ull "og +ash cow -tar. <rape$ine :ecruitment -ocialization Appraisal Training. 'unctional departmentation ,roduct departmentation +ustomer departmentation <eographic departmentation Matri5 departmentation. The) are made in well9structured situations The) are based on established policies and procedures The) require managers to e5ercise discretion The) are made mostl) b) lower9le$el managers The) limit the managers3 fle5ibilit).

22. /hich of the following refers to the process that helps new emplo)ees adapt to the organization3s culture&

23. /hich of the following t)pes of departmentation refers to grouping of acti$ities b) tasks performed&

24. /hich of the following is not true regarding programmed decisions&

25. /hich of the following is6are the $arious le$els of strategies in an organization& #. +orporate le$el. ##. 2usiness le$el. ###. 'unctional le$el. a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! %nl) #! abo$e %nl) ##! abo$e %nl) ###! abo$e 2oth #! and ##! abo$e All #!, ##! and ###! abo$e. -trengths and weaknesses %pportunities and threats -trengths and opportunities /eaknesses and threats /eaknesses and opportunities. +oerci$e power *egitimate power E5pert power :eferent power :eward power.

2 . #n -/%T anal)sis, which of the following are e5ternal en$ironment characteristics of an organization&

2!. ,ower based upon one=s e5pertise, special skills, or knowledge is

,age 4 of 21

2". %rganizations that adopt a matri5 structure generall) pass through some structural stages. /hich of the following can be correctl% stated about these stages& #. As each stage of the matri5 structure pro$ides increasing amounts of horizontal integration, it makes administration simpler. ##. 2ecause managerial integrators often coordinate directl) with $arious members of functional departments assigned to assist them with their pro.ects, dual authorit) is eliminated. ###. Teamwork is emphasized. #1. A mature matri5 is adopted when the functional and di$isional dimensions are equall) important. a! b! c! d! e! a! b! c! d! e! #. ##. ###. #1. a! b! c! d! e! %nl) #1! abo$e 2oth #! and ##! abo$e 2oth ###! and #1! abo$e #!, ##! and ###! abo$e #!, ##! and #1! abo$e. Entrop) Autonom) Equifinalit) Espirit de +orps "omino Effect. #t is strongest when it is e5tremel) difficult for or e5pensi$e for competitors to cop). #t is possible for a firm to build a competiti$e ad$antage o$er all other competitors. #t should ultimatel) create increased $alue for customers. #t is generated on the basis of organizational competencies. %nl) #! abo$e 2oth #! and ###! abo$e 2oth ##! and #1! abo$e #!, ###! and #1! abo$e All #!, ##!, ###! and #1! abo$e.

2#. The tendenc) of a s)stem to break down or degrade, become disorganized, or disintegrate is known as

30. /hich of the following is6are feature s! of competiti$e ad$antage&

31. /hich of the following refers to a s)stem of shared $alues, assumptions, beliefs, and norms that unite the members of an organization& a! b! c! d! e! %rganizational change +ommunication %rganization restructuring +orporate social responsibilit) %rganization culture.

32. /hich of the following is6are ad$antage s! of departmentation b) process or equipment& #. #t brings about horizontal coordination to pro.ects. ##. #t is beneficial when the equipment or machiner) requires special operating skills. ###. The basic purpose of the departmentation is to get economic benefits. a! b! c! d! e! %nl) %nl) 2oth 2oth 2oth #! abo$e ###! abo$e #! and ##! abo$e #! and ###! abo$e ##! and ###! abo$e.

33. Management is the act of getting things done through people. /hich of the following is not a ke) aspect of management& a! b! c! d! e! Managers carr) out the functions of planning, organizing, staffing, leading and controlling Management is essential to an) kind of organization Management is essential onl) at few hierarchical le$els The goals of all managers is to generate surplus The aim of all managers is to impro$e producti$it).

,age 5 of 21

34. /ith respect to a -/%T anal)sis of the competiti$e en$ironment in which a compan) operates, which of the following cannot be a potential 4threat3 for a compan)& a! b! c! d! e! +ostl) new regulator) requirements *oss of sales to substitute products %bsolete facilities Technological changes that undermine demand for a product <rowing bargaining power of customers.

35. /hich of the following theories of decision9making is based on the notion that indi$idual attitudes towards risk $ar)& a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! ,reference theor) "ecision trees +ertaint) -atisficing <arbage9can. "e$eloping premises *isting alternati$e wa)s of reaching organizational ob.ecti$es -tating organizational ob.ecti$es "e$eloping plans to pursue chosen alternati$es ,utting plans into action. +larit) in relationships ,roper use of staff +ompleted staff work 0olding staff accountable for result E5ploiting staff.

3 . ,roper planning makes half wa) done. /hich of the following is the first ma.or step in the planning process&

3!. /hich of the following is not a means of a$oiding line and staff conflicts&

3". Mark=s Embroider) produces custom9made embroider) products. %ne department sells to retail customers, another department sells to catalog customers and a third department sells onl) to college bookstores. Mark=s Embroider) is departmentalized b) a! b! c! d! e! a! b! c! d! e! ,roduct +ustomer <eographical location ,rocess 'unction. >egati$e entrop) 'eedback mechanisms ")namic homeostasis Technolog) Equifinalt).

3#. /hich of the following is not one of the si5 characteristics of open9s)stem organizations&

40. /hich of the following is the process b) which managers allocate a chunk of their work to subordinates along with sufficient authorit) to accomplish the work& a! b! c! d! e! "elegation ,ower Moti$ation 'eedback "epartmentation.

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41. /hich of the following is not allowed in a brainstorming session& a! b! c! d! e! #. ##. ###. #1. 1. a! b! c! d! e! +lear definition of the problem +riticism of poor ideas *arge number of alternati$es :ecording of all alternati$es 2uilding on alternati$es generated. *egitimate power is similar to authorit) and is $er) important in the organizational conte5t. *egitimate power works onl) downwards. :eferent power functions at superior and peer le$els. +oerci$e power is used to ensure a minimum standard of performance. ,ower can be personal. 2oth #! and ##! abo$e 2oth ###! and #1! abo$e #!, ###! and #1! abo$e #!, #1! and 1! abo$e All #!, ##!, ###!, #1! and 1! abo$e.

42. /hich of the following statements are true with respect to power and the t)pes of power&

43. /hich of the following in$ol$es ma.or changes in organizational structure and changes in some ma.or components of the organization& a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! :estructuring -pan of control Transfer ,lanning %rganizing. +onflict +entralization *ine authorit) "epartmentation <rape$ine. A staff manager is a generalist A staff manager assists others A staff manager ser$es authorit) A staff manager makes plans A staff manager sol$es special problems.

44. The degree to which decision making is concentrated at a single point in the organization is referred to as

45. /hich of the following statements is not true of staff authorit)&

4 . Technosoft *td. is facing the problem of allocating resources to its newl) set up computer peripherals di$ision, because of some practical constraints like limited a$ailabilit) of resources, time, man9hours etc. /hich of the following decision9making techniques can help sol$e the problem& a! b! c! d! e! *inear programming "ecision tree -imulation /aiting9line method <ame theor).

4!. /hich of the following is not a significant wa) through which culture is transmitted to emplo)ees in an organization& a! b! c! d! e! -tories :ituals M)ths *anguage :ewards.

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4". /hich approach to management includes the three schools of scientific management, administrati$e theor) and bureaucratic management& a! b! c! d! e! +lassical approach 2eha$ioral approach ;uantitati$e approach +ustodial approach -)stems approach.

4#. /hich of the following management functions in$ol$es designing and maintaining a formal structure of roles and positions& a! b! c! d! e! ,lanning %rganizing -taffing *eading +ontrolling.

50. <roup decision9making is practiced in man) large and comple5 organizations. /hich of the following is not true regarding group decisions& a! b! c! d! e! a! b! c! d! e! <roup decisions are faster <roup decisions tend to be more accurate <roup decisions are more creati$e <roup decisions are more widel) accepted <roup decisions ha$e the ad$antage of pooling of e5pertise. 7ob anal)sis 7ob description 7ob specification 7ob rotation 7ob enlargement.

51. /hich of the following indicates the characteristics of an indi$idual who should be hired for the .ob&

52. Managerial creati$it) process in$ol$es certain phases. /hich of the following is not a phase of the creati$it) process& a! b! c! d! e! 8nconscious scanning #ntuition #nsight *ogical formulation 2rainstorming.

53. /hich of the following is the process of identif)ing and attempting to attract candidates who are capable of effecti$el) filling up .ob $acancies& a! b! c! d! e! Moti$ation :ecruitment -election ,erformance appraisal -ocialization.

54. /hich of the following are the ke) elements of 0erzberg3s two9factor theor) of moti$ation& #. Moti$ators. ##. 0)giene factors. ###. 1alence factors. a! b! c! d! e! %nl) %nl) 2oth 2oth 2oth #! abo$e ##! abo$e #! and ##! abo$e #! and ###! abo$e ##! and ###! abo$e.

,age " of 21

55. Application blank is one of the steps in a t)pical selection process. /hich of the following is not true with regard to application blank& a! b! c! d! e! Application blank is an efficient method of gathering information about the applicant3s pre$ious work histor) and education background The data pro$ided in the application blank is used formall) to decide whether a candidate merits further e$aluation #nter$iewers use application blank to familiarize themsel$es with candidates before inter$iewing them The application blank can also include reasons for appl)ing, e5pected salar) and positions last held +andidates who pass the preliminar) screening are required to complete a formal application form speciall) designed to obtain the required information about the candidate.

5 . 'ormal appraisals are usuall) conducted annuall) or semi annuall) or on a s)stematic basis. /hich of the following is a mi5 of all the four approaches to formal performance appraisal& a! b! c! d! e! a! b! c! d! e! ,eer assessment -uperior3s rating of subordinates ?@09degree appraisal -ubordinates3 ratings of superiors +omprehensi$e re$iew. 2eha$iorall) Assisted :ating -cales 2eha$iorall) Aided :ating -cales 2eha$iorall) Anchored :ating -cales 2enchmark Anchored :ating -cales 2enchmark Assisted :ating -cales.

5!. The emplo)ee performance rating method 42A:-3 stands for

5". Abraham Maslow3s hierarch) of human needs theor) is classified into $arious groups. An organization satisfies which of the following needs of its emplo)ees b) pro$iding a well9furnished office, a car, a personal assistant and other benefits such as stock options, club memberships, etc.& a! b! c! d! e! ,h)siological -afet) and securit) -ocial Esteem -elf9actualization.

5#. -e$eral factors lead to organizational change. /hich of the following is not a factor that leads to organizational change& a! b! c! d! e! a! b! c! d! e! >ature of workforce Technolog) Economic factor 0abit +ompetition. #nitiati$e Moti$ation Management ,erception #nno$ation.

0. /hich of the following refers to the process of using creati$e ideas and looking at things in a new light&

1. /hich of the following is a theor) proposed b) "ouglas Mc<regor, that has a pessimistic and rigid $iew of human nature& a! b! c! d! e! Theor) A Theor) B Theor) ( E5pectanc) theor) E:< theor).

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2. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes. /hich of the following is a traditional wa) of coping with conflict and in$ol$es agreeing in part with the other person3s point of $iew& a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! ,roblem sol$ing 'orcing -moothing +ompromise A$oidance. %rganizational infle5ibilit) %rganizational conflict :etrenchment %rganizational restructuring <rape$ine. 2alance sheet :atio Asset 2udget *iabilit). Monitoring progress ,reparation of a personal profile #mplementation of a career plan "e$elopment of contingenc) plans "e$elopment of strategic career alternati$es. 2udgeting Acti$it)9based costing ;ualit) control Management audit Transfer pricing.

3. The inabilit) of organizations to adapt to the changing en$ironment is called

4. /hich of the following is an inde5 that measures one $ariable relati$e to another&

5. /hich of the following is the first step in formulating a career strateg)&

. E$aluation of the effecti$eness and efficienc) of $arious s)stems within an organization is referred to as

!. /hich of the following is6are the models of management proposed b) :a)mond E. Miles& #. Traditional model. ##. 0uman relations model. ###. 0uman resources model. a! %nl) #! abo$e b! %nl) ##! abo$e c! %nl) ###! abo$e d! 2oth #! and ###! abo$e e! All #!, ##! and ###! abo$e. ". %rganizations implement control in $arious wa)s and at $arious le$els. /hich of the following is not one of the wa)s of management control& a! b! c! d! e! 'eedback control 'eedforward control +oncurrent control E5ception control +)bernetic control.

,age 10 of 21

#. A useful wa) to classif) $arious moti$ation theories is to look at their ma.or thrust. /hich of the following moti$ation theories emphasizes on the d)namics of moti$ation and how indi$iduals are moti$ated& a! b! c! d! e! +ontent theories ,rocess theories Transformational leadership theories Transactional leadership theories -ituational leadership theories.

!0. /hich of the following shows managerial positions, current incumbents, potential replacements for each position and the age of each person& a! b! c! d! e! a! b! c! d! e! <antt chart -kills in$entor) Manager in$entor) chart ,ie chart ,E:T diagram. +ommunication "ata 0ardware >oise 'eedback.

!1. 8nanal)zed facts and figures can be referred to as

!2. #n the management conte5t, 4control3 refers to the e$aluation of performance and the implementation of correcti$e actions to accomplish organizational ob.ecti$es. /hich of the following is the correct sequence of the steps in controlling& #. ##. ###. #1. 1. a! b! c! d! e! Measurement of performance. +omparison of actual and standard. Anal)sis of causes of de$iation. Actual performance. +orrecti$e action plan. ###!, #1!, 1!, #! and ##! abo$e ##!, ###!, #1!, 1! and #! abo$e #!, ##!, #1!, ###! and 1! abo$e #1!, #!, ##!, ###! and 1! abo$e 1!, #1!, ###!, ##! and #! abo$e.

!3. +ommunication is a process of e5changing ideas or information between two persons. "uring the communication process, when the message is con$erted to a s)mbolic form, it is known as a! b! c! d! e! Encoding Transmission :ecei$ing "ecoding >oise.

!4. An organization incurs se$eral costs in maintaining in$entor). The cost of not ha$ing the in$entor) of the product requested b) the customer is called a! b! c! d! e! +arr)ing cost #tem cost %rdering cost -tock9out cost -uperfluous cost.

!5. 0erse) and 2lanchard defined which of the following as the e5tent to which followers ha$e the abilit) and the willingness to accomplish a specific task& a! b! c! d! e! Training :eadiness #nstrumentalit) Moti$ation 1alence. ,age 11 of 21

! . /hich of the following is not an e5ample of current assets& a! b! c! d! e! ,repaid e5penses +ash and cash equi$alents Marketable securities Trade pa)ables #n$entor).

!!. /hich of the following does not constitute a set of decisions that are included in an operations management program& a! b! c! d! e! +apacit) decisions 'acilities decisions ;ualit) decisions Materials6in$entor) decisions 2udgeting decisions.

!". ,rofessor :ensis *ikert and his associates at the 8ni$ersit) of Michigan studied the patterns and st)les of leaders and managers and suggested certain s)stems of management for understanding leadership beha$ior. A manager, e5hibiting lack of confidence or trust in subordinates, will be categorized into which of *ikert3s management s)stems& a! b! c! d! e! -)stem 1 -)stem C -)stem ? -)stem D -)stem E e5ploiti$e9authoritati$e st)le! bene$olent9authoritati$e st)le! consultati$e st)le! participati$e leadership st)le! consultati$e 9 authoritati$e st)le!.

!#. /hich of the following financial ratios measures the abilit) of an organization to meet its short9term obligations b) using its current assets& a! b! c! d! e! *e$erage Asset management "ebt management *iquidit) ,rofitabilit).

"0. According to /illiam %uchi, organizations that e5hibit a st)le of management that combines traits of 7apanese and American companies are called a! b! c! d! e! Theor) A organizations Theor) B organizations Theor) ( organizations Modern organizations -upporti$e organizations.

"1. According to Furt *ewin, a leader who in$ol$es emplo)ees in decision9making, delegates3 authorit), gathers inputs from emplo)ees, and makes the final decision b) himself is most possibl) using which st)le of leadership& a! b! c! d! e! "emocratic *aissez9faire Autocratic +onsultati$e 2ene$olent authoritati$e.

"2. #n which of the following techniques for impro$ing producti$it) are workers in$ited to participate in simplif)ing their work& a! b! c! d! e! Time9e$ent networks 1alue engineering /ork simplification ;ualit) circles Total qualit) management.

,age 12 of 21

"3. Management b) walking around M2/A! ma) be used as a control technique b) managers to monitor the performance of their emplo)ees while the) are performing their tasks. M2/A is primaril) based on a! b! c! d! e! -tatistical information %ral reports /ritten reports +omputer databases ,ersonal obser$ation.

"4. /hich of the following management information s)stems is an interacti$e computer s)stem that pro$ides managers with the necessar) information for making intelligent decisions& a! b! c! d! e! Transaction processing s)stem "ecision support s)stem %ffice automation s)stem E5ecuti$e support s)stem *ine support s)stem.

"5. #nformation s)stems are resource management agents used to plan, monitor, control, and e$aluate the utilization of 4management information3 which is a ma.or organizational resource. /hich of the following is not a component of an information s)stem& a! b! c! d! e! #. ##. ###. #1. a! b! c! d! e! 0ardware -oftware ,eople "ata ,olicies. 'inancial control s)stem. 2udgetar) control s)stem. ;ualit) control s)stem. #n$entor) control s)stem. 2oth #! and ##! abo$e 2oth ##! and ###! abo$e 2oth ###! and #1! abo$e #!, ##! and ###! abo$e ##!, ###! and #1! abo$e.

" . /hich of the following control s)stems do lower9le$el managers3 use more frequentl)&

"!. %rganizations make use of fi$e ma.or t)pes of information s)stems. /hich of the following s)stems records an) e$ent or acti$it) that in$ol$es the interaction of the organization with e5ternal agents& a! b! c! d! e! Transaction processing s)stem %ffice automation s)stem "ecisions support s)stem E5ecuti$e support s)stem Management information s)stem.

"". /hich of the following factor s! can be measured or e$aluated b) using <raphic :ating -cales& #. ;ualit) of work. ##. Attendance. ###. "ependabilit). a! b! c! d! e! %nl) #! abo$e %nl) ##! abo$e %nl) ###! abo$e 2oth #! and ###! abo$e All #!, ##! and ###! abo$e.

,age 13 of 21

"#. /hich of the following strategies of o$ercoming resistance to change in$ol$es selecti$el) pro$iding information about a change so that it appears more attracti$e or necessar) to potential resisters& a! b! c! d! e! a! b! c! d! e! a! b! c! d! e! +ooptation Manipulation +oercion >egotiation ,articipation. +ost accounting report ,urchase order summar) -ales report +orporate polic) statement ,roduction report. *east preferred leader *east preferred task *east preferred compan) *east preferred position *east preferred co9worker.

#0. /hich of the following is not an upward communication&

#1. /hich of the following $ariables is at the heart of 'iedler=s +ontingenc) Theor)&

#2. /hich of the following ratios when high increases an organization3s profitabilit) resulting in a lesser need for in$estment in assets& a! b! c! d! e! #. ##. ###. #1. a! b! c! d! e! +urrent Acti$it) *iquidit) ,rofitabilit) ;uick. Maslow3s self9actualization and esteem needs correspond to 0erzberg3s moti$ators. Mc+lelland3s need for achie$ement corresponds to Alderfer3s relatedness needs. Maslow3s esteem needs correspond to Alderfer3s need for power. 0erzberg3s h)giene factors correspond to Mc+lelland3s need for affiliation, Maslow3s social needs and Alderfer3s e5istence needs. %nl) #! abo$e 2oth #! and ###! abo$e 2oth ##! and #1! abo$e ##!, ###! and #1! abo$e All #!, ##!, ###! and #1! abo$e.

#3. /hich of the following statements is6are true with respect to content theories of moti$ation&

#4. /hich of the following statements is6are true about 4Economic %rder ;uantit)3 E%;!& #. #t is helpful for determining desirable in$entor) le$els when demand is predictable. ##. E%; is useful in determining in$entor) le$els of parts and materials used in production, as well. ###. "ecisions based on E%; could lead to shortage or e5cess of in$entor). a! b! c! d! e! a! b! c! d! e! %nl) ##! abo$e %nl) ###! abo$e 2oth #! and ##! abo$e 2oth #! and ###! abo$e All #!, ##! and ###! abo$e. 2udgetar) control ;ualit) circle 2reak9e$en anal)sis :esponsibilit) accounting #nternal audit. ,age 14 of 21

#5. /hich one of the fallowing is not a technique of financial control&

# . Assigning workers additional tasks on the same le$el, which increases the number of tasks the) ha$e to do, is known as a! b! c! d! e! a! b! c! d! e! #. ##. ###. #1. a! b! c! d! e! a! b! c! d! e! 7ob enrichment 7ob enlargement 7ob rotation 1ertical .ob loading 7ob loading. A continual process Efforts b) all organization members A focus on onl) a few critical work acti$ities A focus on the production process Efforts to in$ol$e organization members. The dimension 4initiating structure3 is similar to the .ob centered leader beha$ior identified b) #owa studies. The dimension 4consideration3 emphasizes people related issues. %hio -tate studies consider initiating structure and consideration as the two ends of the same continuum. The two9dimensional approach led to the probabilit) that a leader might place emphasis on both task and people related issues. %nl) #1! abo$e 2oth #! and ##! abo$e 2oth ###! and #1! abo$e #!, ##! and #1! abo$e All #!, ##!, ###! and #1! abo$e. +ost of capital -torage space costs %bsolescence costs %rdering costs #nsurance.

#!. A Total ;ualit) Management programme is not characterized b)

#". /hich of the following is6are inference s! drawn from the %hio -tate studies&

##. /hich of the following costs decreases with an increase in in$entor)&

100. ,roducti$it) can be measured in two wa)sG total producti$it) and partial producti$it). #n both the cases it is e5pressed as a ratio of outputs to inputs. /hich of the following inputs is common to both the measures of producti$it)& a! b! c! d! e! +apital Energ) Materials *abor Technolog). &'( )* Q+&S,-)' P.P&/

,age 15 of 21

Suggested .ns0ers
Principles of Management (SMB101)
1. 2. 3. 4. 5. .'S1&/ A + A + + /&.S)' The roles of entrepreneur, disturbance handler, resource allocator, and negotiator can be categorized as decisional roles. 0ence, we can infer that option a! is correct. Middle le$el managers deal with the actual operation of the organization3s units. 0ence, we can infer that option c! is correct. The management function of influencing, moti$ating, and directing human resources toward the achie$ement of organizational goals is leading. 0ence, we can infer that option a! is correct. 0uman skills are important at all le$els in the organization. 0ence, we can infer that option c! is correct. The management function of organizing in$ol$es determiningG Tasks to be performed. 0ow tasks can best be combined into specific .obs. Authorit) and reporting relationships within the corporate hierarch). ,romotions and career planning are part of the staffing function. 0ence, we can infer that option c! is correct. 0enr) 'a)ol3s principle of di$ision of labor states that 4work specialization leads to efficienc) of operations3. 0ence, we can infer that option a! is correct. An organization that interacts with e5ternal forces is an open s)stem. %ther options are not true with respect to the question. 0ence, we can infer that option d! is correct. /orkplace culture sets its own production standards is the finding of the 0awthorne studies. -tatements ##! and ###! are pre9.udgments of the 0awthorne studies. 0ence, we can infer that option a! is correct. 2eha$ioral approach to management emphasized the human element, thus $iewing the organization from an indi$iduals3 point of $iew. 0ence, we can infer that option e! is correct. Top management commitment is a mechanism for ethical management in organizations and not an ethical guideline for managers. 0ence, we can infer that option c! is correct. +reating a long9term and health) relationship with creditors is an obligation towards creditors that business firms should fulfill. 0ence, we can infer that option e! is correct. 1olunteerism refers to the in$ol$ement of emplo)ees in ci$ic acti$ities. 0ence, we can infer that option a! is correct. Moral management stri$es to follow ethical principles and doctrines. 0ence, we can infer that option b! is correct. ,olicies are standing plans that furnish broad guidelines for channeling management thinking in specified direction. 0ence, we can infer that option d! is correct. ,lanning is a primar) function as it precedes the e5ecution of all other management functions. -o it is not a secondar) function. %ptions a!, c!, d! and e! are all characteristics of planning. 0ence from abo$e discussion, we can infer that option b! is not a characteristic of planning. An ob.ecti$e is the aim of an action. #t implies a specific work to be accomplished within a gi$en period of time. -hort9term ob.ecti$e is de$eloped to accomplish a work in a $er) short period of time. 0ence, from abo$e discussion, we can infer that option c! is correct. The ke) result areas in business suggested b) ,eter "rucker includesG ,h)sical and financial resources. ,rofitabilit). #nno$ation. /orker performance and attitude. 0ence, from abo$e discussion, we can infer that option e! is correct. Emphasis on short9term goals is not a factor that would make Management b) %b.ecti$es M2%! more effecti$e. 0ence, from abo$e discussion, we can infer that option a! is correct. #n departmentation b) time, workers ma) concentrate on narrow and specified technical aspects rather than the total s)stem. Therefore, option e! is the answer. -pan of control is the concept that defines the number of subordinates that report to a manager and that indirectl) specifies the number of le$els of management in an organization. 0ence from abo$e discussion, we can infer that option d! is correct. A question mark is a business unit that has a small relati$e market share in a rapidl) growing market. The future performance of such a business unit is uncertain. 0ence, from abo$e discussion, we can infer that option a! is correct. ,age 1 of 21

. !. ". #. 10. 11. 12. 13. 14. 15. 1 . 1!.

A " A E + E A 2 " 2 + E

1". 1#. 20. 21.

A & ( .

22. 23. 24. 25. 2 . 2!. 2".

2 . + & 2 + +

2#. 30.

A "

31. 32.

E E

-ocialization refers to the process that helps new emplo)ees adapt to the organization3s culture. 0ence, from abo$e discussion, we can infer that option c! is correct. 'unctional departmentation is the grouping of acti$ities b) functions performed. 0ence, from abo$e discussion, we can infer that option a! is correct. ,rogrammed decisions require managers to e5ercise little discretion. 0ence, from abo$e discussion, we can infer that option c! is correct. The three le$els of strateg) include #! corporate le$el, ##! business le$el and ###! functional le$el. 0ence, from abo$e discussion, we can infer that option e! is correct. #n -/%T anal)sis, opportunities and threats are e5ternal characteristics of an organization. 0ence, from abo$e discussion, we can infer that option b! is correct. E5pert power is the power based upon one=s e5pertise, special skills, or knowledge. 0ence, from abo$e discussion, we can infer that option c! is correct. The following can be stated about these stagesG Teamwork is emphasized. A mature matri5 is adopted when the functional and di$isional dimensions are equall) important. -tatement #! is not correct because e$en though each stage of the matri5 structure pro$ides increasing amounts of horizontal integration, but at the same time, it makes administration more comple5. -tatement ##! is not correct because dual authorit) e5ists to some degree, e$en with managerial integrators, because the integrators often coordinate directl) with $arious members of functional departments e.g. marketing, purchasing, engineering, etc.! assigned to assist them with their pro.ects. 0ence, from abo$e discussion, we can infer that option c! is correct. The tendenc) of a s)stem to break down or degrade, become disorganized, or disintegrate is known as entrop). 0ence, from abo$e discussion, we can infer that option a! is correct. The following is6are features of competiti$e ad$antageG #. #t is strongest when it is e5tremel) difficult for or e5pensi$e for competitors to cop) ##. #t is not possible for a firm to build a competiti$e ad$antage o$er all other competitors. ###. #t should ultimatel) create increased $alue for customers. #1. #t is generated on the basis of organizational competencies. 0ence, from abo$e discussion, we can infer that option d! is correct. %rganization culture refers to a s)stem of shared $alues, assumptions, beliefs, and norms that unite the members of an organization. 0ence, from abo$e discussion, we can infer that option e! is correct. The following are ad$antages of departmentation b) process or equipmentG #t is beneficial when the equipment or machiner) requires special operating skills. The basic purpose of the departmentation is to get economic benefits. -tatement #! is an ad$antage of a matri5 organization. 0ence, from abo$e discussion, we can infer that option e! is correct. Management is essential at all le$els in a n organization. 0ence, option c! is not a ke) aspect of management. 0ence, from abo$e discussion, we can infer that option c! is correct. %bsolete facilities are a potential resource weakness not a threat. 0ence, from abo$e discussion, we can infer that option c! is correct. ,reference theor) is based on the notion that indi$idual attitudes towards risk $ar). 0ence, from abo$e discussion, we can infer that option a! is correct. The planning process begins with stating organizational ob.ecti$es 0ence, from abo$e discussion, we can infer that option c! is correct. E5ploiting staff is not a means of a$oiding line and staff conflicts. 0ence, from abo$e discussion, we can infer that option e! is correct.

33. 34. 35. 3 . 3!.

+ + A + E

,age 1! of 21

3".

3#. 40. 41. 42.

" A 2 +

43. 44. 45. 4 .

A 2 A A

4!.

4". 4#. 50. 51. 52.

A 2 A + E

Mark=s Embroider) is departmentalized b) customer, i.e. to sa) customer di$isions are di$isions set up to ser$ice particular t)pes of clients or customers. 8nder this method, acti$ities are grouped according to the customers the organization ser$es and ser$ice to the customers is of top priorit). a! ,roduct di$isions are di$isions created to concentrate on a single product or ser$ice or at least a relati$el) homogeneous set of products or ser$ices. c! <eographic di$isions are di$isions that are designed to ser$e different geographic areas. 8nder this method, territor) or location is taken as the basis for departmentation. d! ,rocess di$isions are designed to departmentalize the acti$ities through the different processes which the organization follows. e! #n 'unctional departmentation, acti$ities are grouped according to their main functional or specialized areas such as ,roduction, 'inance, Marketing, 0:, etc. 0ence, from abo$e discussion, we can infer that option b! is correct. The si5 characteristics of open9s)stem organizations includeG c)cle of e$ents, feedback mechanisms, d)namic homeostasis, negati$e entrop), differentiation, and equifinalit). 0ence, from abo$e discussion, we can infer that option d! is correct. "elegation is the process b) which managers allocate a chunk of their work to subordinates along with sufficient authorit) to accomplish the work. 0ence, from abo$e discussion, we can infer that option a! is correct. +riticism of poor ideas is not allowed in a brainstorming session. 0ence, from abo$e discussion, we can infer that option b! is correct. The following statements are true with respect to power and the t)pes of powerG #. *egitimate power is similar to authorit) and is $er) important in the organizational conte5t. ###. :eferent power functions at superior and peer le$els. #1. +oerci$e power is used to ensure a minimum standard of performance. -tatement ##! is not true as legitimate power works both downwards and upwards. -tatement 1! is not true as power can be institutional or impersonal. 0ence, from abo$e discussion, we can infer that option c! is correct. :estructuring in$ol$es ma.or changes in organizational structure and changes in some ma.or components of the organization. 0ence, from abo$e discussion, we can infer that option a! is correct. The degree to which decision making is concentrated at a single point in the organization is referred to as centralization. 0ence, from abo$e discussion, we can infer that option b! is correct. A staff manager is a specialist not a generalist. A line manager is a generalist. 0ence, from abo$e discussion, we can infer that option a! is correct. *inear programming is a mathematical technique used in optimum allocation of resources in the organization. "ecision tree is a graphical method for identif)ing alternati$e actions, estimating probabilities, and indicating the resulting e5pected pa)9off. -imulation is the technique of de$eloping a model that represents a real or e5isting s)stem for sol$ing comple5 problems that cannot be readil) sol$ed b) other techniques. /aiting9line or queuing model is a mathematical model that describes the operating characteristics of queuing situations, in which ser$ice is pro$ided to persons or units waiting in line. <ame theor) is a technique for determining the strateg) that is likel) to produce ma5imum profits in a competiti$e situation. 0ence, from abo$e discussion, we can infer that option a! is correct. The most significant wa)s that culture is transmitted to emplo)ees consist of shared beliefs, $alues, rituals, stories, m)ths and specialized language that foster a feeling of communit) among organization members. +ulture is not transmitted through rewards. 0ence, from abo$e discussion, we can infer that option e! is correct. +lassical approach to management includes the three schools of scientific management, administrati$e theor) and bureaucratic management. 0ence, from abo$e discussion, we can infer that option a! is correct. %rganizing in$ol$es designing and maintaining a formal structure of roles and positions. 0ence, from abo$e discussion, we can infer that option b! is correct. <roup decisions are slower than indi$idual decisions due to the participation of se$eral members. 0ence, from abo$e discussion, we can infer that option a! is correct. 7ob specification indicates characteristics of the indi$idual who should be hired for the .ob. 0ence, from abo$e discussion, we can infer that option c! is correct. 2rainstorming is not a phase of the creati$it) process. 0ence, from abo$e discussion, we can infer that option e! is correct. ,age 1" of 21

53. 54.

2 +

55. 5 . 5!. 5". 5#. 0. 1. 2. 3. 4. 5. .

2 + + " " E A " A 2 2 "

!.

". #. !0. !1. !2. !3. !4. !5.

" 2 + 2 " A " 2

:ecruitment is process of identif)ing and attempting to attract candidates who are capable of effecti$el) filling up .ob $acancies. 0ence, from abo$e discussion, we can infer that option b! is correct. The following are ke) elements of 0erzberg3s two9factor theor) of moti$ationG #. Moti$ators. ##. 0)giene factors. 0ence, from abo$e discussion, we can infer that option c! is correct. %ption b! is not true with regard to application blank. The data pro$ided in the application blank is used informall) to decide whether a candidate merits further e$aluation but not formall) as gi$en in the question. 0ence, from abo$e discussion, we can infer that option b! is correct. #n H?@0 degree appraisal,I an indi$idual is e$aluated using all the four approaches to formal appraisal. To be successful, these appraisals must be carefull) designed and skillfull) implemented. 0ence, from abo$e discussion, we can infer that option c! is correct. 2A:-3 stands for 2eha$iorall) Anchored :ating -cales. 0ence, from abo$e discussion, we can infer that option c! is correct. An organization satisfies esteem needs of its emplo)ees b) pro$iding a well9furnished office, a car, a personal assistant and other benefits such as stock options, club memberships, etc. 0ence, from abo$e discussion, we can infer that option d! is correct. 0abit is not a factor that leads to organizational change. #t is a source of resistance to change. 0ence, from abo$e discussion, we can infer that option d! is correct. #nno$ation refers to the process of using creati$e ideas and looking at things in a new light. 0ence, from abo$e discussion, we can infer that option e! is correct. Theor) A theor), proposed b) "ouglas Mc<regor has a pessimistic and rigid $iew of human nature. 0ence, from abo$e discussion, we can infer that option a! is correct. +ompromise is a traditional wa) of coping with conflict and in$ol$es agreeing in part with the other person=s point of $iew. 0ence, from abo$e discussion, we can infer that option d! is correct. The inabilit) of organizations to adapt to the changing en$ironment is called organizational infle5ibilit). 0ence, from abo$e discussion, we can infer that option a! is correct. :atio is an inde5 that measures one $ariable relati$e to another. 0ence, from abo$e discussion, we can infer that option b! is correct. The first step in formulating a career strateg) is the preparation of a personal profile. 0ence, from abo$e discussion, we can infer that option b! is correct. 'unctioning of $arious s)stems in an organization can be better understood b) conducting management audits. The management audit encompasses $erification of $arious functioning s)stems within an organization. 0ence, from abo$e discussion, we can infer that option d! is correct. The following are models of management proposed b) :a)mond E. MilesG #. Traditional model. ##. 0uman relations model. ###. 0uman resources model. 0ence, from abo$e discussion, we can infer that option e! is correct. There is no such management control as 4e5ception control3. 0ence, from abo$e discussion, we can infer that option d! is correct. ,rocess Theor) focuses on the d)namics of moti$ation and how the moti$ation process takes place. The other theories are not applicable in this case. 0ence, from abo$e discussion, we can infer that option b! is correct. Manager #n$entor) +hart shows managerial positions, current incumbents, potential replacements for each position, and the age of each person. 0ence, from abo$e discussion, we can infer that option c! is correct. 8nanal)zed facts and figures can be referred to as data. 0ence, from abo$e discussion, we can infer that option b! is correct. The steps in controlling are actual performance, measurement of performance, comparison of actual and standard. Anal)sis of courses of de$iation and correcti$e action plan. 0ence, from abo$e discussion, we can infer that option d! is correct. The process of con$erting a message into a s)mbolic form is called Encoding. 0ence, from abo$e discussion, we can infer that option a! is correct. The cost of not ha$ing the in$entor) or stock of the product requested b) the customer is called stock9out cost. 0ence, from abo$e discussion, we can infer that option d! is correct. 0erse) and 2lanchard define HreadinessI as the e5tent to which followers ha$e the abilit) and the willingness to accomplish a specific task. 0ence, from abo$e discussion, we can infer that option b! is correct. ,age 1# of 21

! . !!. !". !#. "0. "1. "2. "3. "4. "5. " .

" E A " + " + E 2 E E

"!. "".

A E

"#. #0. #1. #2. #3.

2 " E 2 2

Trade pa)ables are a current liabilit) and not a current asset. 0ence, from abo$e discussion, we can infer that option d! is correct. 2udgeting decisions do not constitute a set of decisions that are included in an operations management program. 0ence, from abo$e discussion, we can infer that option e! is correct. A manager e5hibiting a lack of confidence or trust in subordinates will be categorized into -)stem 1 e5ploitati$e9authoritati$e! of *ikert=s Management -)stems. 0ence, from abo$e discussion, we can infer that option a! is correct. *iquidit) ratios measure the abilit) of an organization to meet its short9term obligations b) using its current assets. 0ence, from abo$e discussion, we can infer that option d! is correct. %rganizations that e5hibit a st)le of management that combines traits of 7apanese and American companies are called theor) ( organizations. 0ence, from abo$e discussion, we can infer that option c! is correct. A consultati$e leader in$ol$es emplo)ees in decision9making, delegates3 authorit), and gathers input from emplo)ees, but makes the final decision himself6herself. 0ence, from abo$e discussion, we can infer that option d! is correct. #n work simplification method, workers are in$ited to participate in simplif)ing their work. 0ence, from abo$e discussion, we can infer that option c! is correct. Management b) walking around M2/A! is based primaril) on personal obser$ation. 0ence, from abo$e discussion, we can infer that option d! is correct. "ecision support s)stem is an interacti$e computer s)stem that pro$ides managers with the necessar) information for making intelligent decisions. 0ence, from abo$e discussion, we can infer that option b! is correct. ,olicies are not a component of an information s)stem. 0ence, from abo$e discussion, we can infer that option e! is correct. *ow le$el managers use budgetar) control s)stem to ensure organizational acti$ities re carried out according to the budgets allocated, qualit) control s)stems Jin$entor) control low9le$el managers use s)stems. *ow le$el mangers generall) not concerned with financial control s)stem. Top9le$el management usuall) uses financial control s)stem. 0ence, from abo$e discussion, we can infer that option e! is correct. Transaction processing s)stem s)stems records an) e$ent or acti$it) that in$ol$es the interaction of the organization with e5ternal agents. 0ence, from abo$e discussion, we can infer that option a! is correct. <raphic rating scales are performance appraisal forms listing a number of factors, including general beha$iors and characteristics such as attendance, qualit) of work, appearance, dependabilit), quantit) of work and relationship with people!, on which emplo)ee is rated b) the super$isor. 0ence, from abo$e discussion, we can infer that option e! is correct. Manipulation strateg) of o$ercoming resistance to change, usuall) in$ol$es selecti$el) pro$iding information about a change so that it appears more attracti$e or necessar) to potential resisters. 0ence, from abo$e discussion, we can infer that option b! is correct. E5cept corporate polic) statements, all the options gi$en are e5amples of upward communication. 0ence, from abo$e discussion, we can infer that option d! is correct. The $ariable that is at the heart of 'iedler=s contingenc) theor) is least preferred co9worker. 0ence, from abo$e discussion, we can infer that option e! is correct. Acti$it) rations when high increases an organization3s profitabilit) resulting in a lesser need for in$estment in assets. 0ence, from abo$e discussion, we can infer that option b! is correct. The following statements are true with respect to content theories of moti$ationG Maslow3s self9actualization and esteem needs correspond to 0erzberg3s moti$ators. Maslow3s esteem needs correspond to Alderfer3s need for power. The following statements are not true with respect to content theories of moti$ation Mc+lelland3s need for achie$ement corresponds to Alderfer3s relatedness needs since Mc+lelland3s need for achie$ement corresponds to Alderfer3s growth needs. 0erzber3s h)giene factors correspond to Mc+lelland3s need for affiliation, Maslow3s social needs and Alderfer3s e5istence needs since 0erzber3s h)giene factors correspond to Maslow3s safet) and ph)siological needs and Alderfer3s e5istence needs. 0ence, from abo$e discussion, we can infer that option b! is correct.

,age 20 of 21

#4.

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The following statements is6are true about 4economic order quantit) E%;!3G #t is helpful for determining desirable in$entor) le$els when demand is predictable. "ecisions based on E%; could lead to shortage or e5cess of in$entor). -tatement ##! is not true as E%; ma) not be useful in determining in$entor) le$els of parts and materials used in production. 0ence, from abo$e discussion, we can infer that option d! is correct. 'inancial control is rele$ant for those aspects of business operations whose outcomes are e5pressed in monetar) terms. The ma.or techniques of financial control at operati$e le$el are budgetar) control, break9e$en anal)sis, :esponsibilit) accounting and internal audit. ;ualit) circle is not a technique of financial control and it is a technique of operating control. 0ence, from abo$e discussion, we can infer that option b! is correct. 7ob enlargement is a .ob design approach that in$ol$es the allocation of a wider $ariet) of similar tasks to a .ob in order to make it more challenging. 0ence, from abo$e discussion, we can infer that option b! is correct. A T;M programme is a continual process in$ol$ing all organization members that spans all production acti$ities in the organization. 0ence, from abo$e discussion, we can infer that option c! is correct. The following are inferences drawn from the %hio -tate studiesG The dimension 4initiating structure3 identified b) %hio -tate studies is similar to the .ob centered leader beha$ior identified b) #owa studies. 4+onsideration3 in %hio studies emphasizes people related issues. The two9dimensional approach led to the probabilit) that a leader might place emphasis on both task and people related issues. -tatement ###! is not an inference as %hio -tate studies consider initiating structure and consideration as independent beha$iors and not two ends of the same continuum. 0ence, from abo$e discussion, we can infer that option d! is correct. %rdering costs decrease with an increase in in$entor). The remaining costs increase with an increase in in$entor). 0ence, from abo$e discussion, we can infer that option d! is correct. *abor is a common input to both the producti$it) measuresG total producti$it) and partial producti$it). 0ence, from abo$e discussion, we can infer that option d! is correct.
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,age 21 of 21