Académique Documents
Professionnel Documents
Culture Documents
1. The most important resources of an organization are its employees - the people who work in the organization and give < Answer >
it their talent, creativity and drive. Employees are vital for effective operation of a company. Which of the following
is/are true about organizationally committed and satisfied employees?
(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.
2. When a manager asks his assistant manager to provide feedback about the job performance of the individual < Answer >
subordinate working under him in writing, it is called
(a) Role perception
(b) Informal appraisal
(c) Formal appraisal
(d) Performance appraisal
(e) Role conflict.
3. A responsibility center is a sub-unit headed by a manager who is responsible for achieving one or more goals. Which < Answer >
of the following statements is/are true of responsibility centers?
I. An organizations choice of responsibility centers depends to a great extent on its control mechanisms.
II. Sales or marketing units may be considered as revenue centers.
III. Organizations that have a divisional structure may opt for profit centers.
IV. Autonomous businesses may be considered as investment centers.
(a) Only (I) above
(b) Only (IV) above
(c) Both (II) and (III) above
(d) (II), (III), and (IV) above
(e) All (I), (II), (III) and (IV) above.
4. ‘Management Information System’ (MIS) helps the manager to discharge his/her managerial functions in a more < Answer >
efficient manner. The first necessary step to effectively operate an MIS is
(a) Summarizing data
(b) Analyzing data
(c) Determining information needs
(d) Gathering appropriate information
(e) Generating reports from gathered data.
5. Which model of leadership behavior proposes that a leader should adjust his or her leadership style in accordance with < Answer >
the readiness of followers?
(a) Path-goal theory
(b) Vroom Yetten model
(c) Fiedler’s contingency model
(d) Hersey and Blanchard’s model
(e) Managerial grid.
6. There is a set of motivational techniques available to the managers to improve the productivity and performance of < Answer >
employees. Which one of the following is not a motivational technique?
(a) Reward
(b) Participation
(c) Quality of work life
(d) Job enrichment
(e) Job analysis.
7. Interviewing is an important step in the selection process of an organization. When a manager interviews a job < Answer >
candidate by asking him a list of questions from an outline, it is an example of which type of interview?
(a) Structured
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(b) Stress
(c) Unstructured
(d) Comprehensive
(e) Semi-structured.
8. An intervention, in Organization Development (OD) terms, is a systematic attempt to correct an organizational < Answer >
deficiency uncovered through diagnosis. Which of the following intervention techniques is 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.
9. In which of the following orientations toward international business, does a firm analyze the needs of customers < Answer >
worldwide and then adopts standardized practices for all the markets it serves?
(a) Ethnocentric
(b) Polycentric
(c) Geocentric
(d) Regiocentric
(e) Unicentric.
10. As per Hersey and Blanchard’s leadership model, a leader shows high relationship behavior and high task behavior < Answer >
when
I. Eventually, employees learn to perform their tasks.
II. Employees still need to be guided by leaders.
III. Employees are in the initial phase of readiness.
IV. Employees become more experienced.
I. The output of a discretionary expense center cannot be directly used to produce revenues.
II. Budgets for discretionary expense centers are developed only in terms of maximum resources that can be
consumed by them in a particular period.
III. For assessing the budgetary performance, the expense constraints are established at the discretion of the
manager.
(a) Only (I) above
(b) Only (III) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
14. In Japanese organizations, informal organizations that yield considerable power in formal organizations are referred to < Answer >
as
2
as
(a) Wa
(b) Habatsu
(c) Kaisha
(d) Kacho
(e) Henko.
15. Which of the following is not an example of current assets? < Answer >
I. Insight.
II. Intuition.
III. Unconscious scanning.
IV. Logical formulation.
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21. According to Fiedler, which of the following is a technique that measures whether a person is task-oriented or < Answer >
relationship-oriented?
(a) Least-preferred coworker questionnaire
(b) Most-preferred coworker questionnaire
(c) Least-preferred subordinate questionnaire
(d) Production orientation
(e) Employee orientation.
22. The basic elements of communication are < Answer >
5
(e) All (I), (II), (III) and (IV) above.
36. People who work in multinational corporations are generally categorized as < Answer >
I. Expatriates.
II. Third country nationals.
III. Host country nationals.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (III) above
(e) All (I), (II) and (III) above.
37. The stage of Kurt Lewin’s change model, which involves preparing employees to accept change is < Answer >
(a) Refreezing
(b) Changing
(c) Unfreezing
(d) Benchmarking
(e) Moving.
38. Of the various leadership styles suggested by the path-goal theory, which of the following statements is/are true about < Answer >
‘Supportive Leadership’?
I. It involves creating a pleasant organizational climate.
II. It involves providing clear guidelines to subordinates.
III. It shows concern for subordinates.
IV. It corresponds to task-centered leadership described in other leadership theories.
(a) Only (II) above
(b) Both (I) and (III) above
(c) Both (II) and (IV) above
(d) (I), (II) and (III) above
(e) (I), (III) and (IV) above.
39. Which of the following involves overseeing the transformation process that converts resources such as labor and raw < Answer >
materials into finished goods and services?
(a) Simulation
(b) Organizing
(c) Operations Management
(d) Linear programming
(e) Inventory management.
40. Hazard analysis and Critical Control Point Method (HACCP) is used in the food manufacturing industry to identify< Answer >
and prevent microbial and other germs from causing harm to food. Which of the following principles involves
identification of preventive measures the manufacturing units can adopt, to control food safety hazards that arise
during processing?
(a) Hazard analysis
(b) Identifying control points
(c) Critical limits
(d) Establish corrective actions
(e) Establishing procedures to ensure correct working.
41. Which of the following is/are example(s) of feedforward control? < Answer >
I. The dimension ‘initiating structure’ is similar to the job centered leader behavior identified by Iowa studies.
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II. The dimension ‘consideration’ emphasizes people related issues.
III. Ohio State studies consider initiating structure and consideration as the two ends of the same continuum.
IV. The two-dimensional approach led to the probability that a leader might place emphasis on both task and people
related issues.
(a) Only (IV) above
(b) Both (I) and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
43. Assigning workers additional tasks on the same level, which increases the number of tasks they have to do, is known < Answer >
as
(a) Job enrichment
(b) Job enlargement
(c) Job rotation
(d) Vertical job loading
(e) Job loading.
44. Force(s)/trait(s) within the manager that determine(s) effective leadership behavior include(s) his/her < Answer >
I. Values.
II. Confidence in subordinates.
III. Hunger for power.
IV. Aggressiveness.
(a) Only (I) above
(b) Both (I) and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
45. Which of the following information systems use events as inputs and gives outputs in the forms of detailed reports < Answer >
and lists?
(a) Transaction processing system
(b) Office automation system
(c) Decision support system
(d) Executive support system
(e) Management information system.
46. Raj, Rahul, Ramesh and Rohit all wanted to start their own business after they graduated with their Bachelor of < Answer >
Science degrees. They had a common purpose, they had set performance standards for themselves and they had an
approach to hold themselves mutually accountable. They can be referred to as a
(a) Group
(b) Alliance
(c) Federation
(d) Team
(e) Co-operation.
47. A team consists of a set of people working together towards a common purpose. In an organization, there can be < Answer >
different types of teams. A work team comprised of experts from various specialties is most accurately referred to as
(a) A functional team
(b) A cross-functional team
(c) An informal group
(d) A self-managed team
(e) A self-directed team.
48. Blake and Mouton used the Managerial Grid as a framework to help managers learn what their leadership style is and < Answer >
to track their movement toward the ideal management style. According to them, the most effective leadership style is
(a) Country club management style
(b) Team management style
(c) Impoverished management style
(d) Authority obedience management style
(e) Organization man management style.
49. The process of determining the tasks that make up a job and the skills, abilities and responsibilities an employee needs < Answer >
to accomplish that job is known as
(a) Job description
(b) Job analysis 7
(b) Job analysis
(c) Skills inventory
(d) Job specification
(e) Human resource inventory.
50. Andrew Carnegie said, "As I grow older, I pay less attention to what men say. I just watch what they do." He was < Answer >
suggesting the importance of
(a) Face-to-face verbal communication
(b) Non-verbal communication
(c) Cross-cultural communication
(d) Upward communication
(e) Downward communication.
51. Which of the following statements about assessment development centers is/are true? < Answer >
I. Support the flow of clear and concise statements through formal channels.
II. Ensure free access to formal channels for all organization members.
III. Assign specific communication responsibilities to staff personnel.
IV. Restrict the use of formal channels.
(a) Only (I) above
(b) Only (II) above
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(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (III) and (IV) above
(e) (I), (II) and (III) above.
65. Ketan has just been asked to type up a report in two days using a software program he has never seen before. < Answer >
Furthermore, fifteen graphs, bar charts, and pie charts are an integral part of the report. He will have to use a color
printer in a different department because their department does not have one. Ketan wonders if he will be able to get
his project accomplished on time and in the format wanted by his manager. This is an example of which variable in
Vroom's expectancy theory?
(a) Effort-performance linkage
(b) Performance-reward linkage
(c) Effort-reward linkage
(d) Attractiveness
(e) Valence.
66. The collection of positive feelings, attitudes and beliefs that an individual has about his or her current job can be < Answer >
referred to as
(a) Organization change
(b) Job satisfaction
(c) Internal locus control
(d) Organizational commitment
(e) Job sharing.
67. Which of the following refers to an organization’s ability to convert its assets into cash to meet current financial < Answer >
needs?
(a) Liquidity
(b) Equity
(c) Debt
(d) Profitability
(e) Net worth.
68. Information that originates outside the organization is known as external information. Which of the following is an < Answer >
example of external information in an organization?
(a) Daily receipts and expenditures
(b) Salesperson Quotas
(c) Descriptions of customer satisfaction with products and services
(d) Quantity of an item in hand or in inventory
(e) Cost and selling price of the company’s item.
69. Evaluation of the effectiveness and efficiency of various systems within an organization is referred to as < Answer >
(a) Budgeting
(b) Activity-based costing
(c) Quality control
(d) Management audit
(e) Transfer pricing.
70. Which of the following is not an effective way to reduce resistance to change? < Answer >
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72. McClelland highlighted the importance of three basic needs namely need for achievement, need for affiliation and < Answer >
need for power. Which of the following is/are characteristic(s) exhibited by power-motivated people?
I. They have an intense desire for success and seek competitive situations.
II. They are willing to assert themselves when a decision needs to be made.
III. The Power motive has significant implications for the organization.
IV. They have the desire to be influential.
(a) Only (IV) above
(b) Both (I) and (IV) above
(c) Both (II) and (III) above
(d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
73. Which of the following is/are advantage(s) of preventive control systems? < Answer >
(a) Profit
(b) Investment
(c) Cost
(d) Revenue
(e) Expense.
82. Which of the following is the first step in the control process? < Answer >
I. Managers should make sure the mechanics of the control process are understood by organization members
involved in controlling.
II. Managers should use control activities to achieve many different kinds of goals.
III. Managers should ensure that control activities are supported by most organization members.
IV. Managers should make sure that the information on which corrective action is based is timely.
(a) Only (I) above
(b) Both (I) and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
91. What is the correct sequence of the following steps in the ‘Career Strategy Formulation’ process? < Answer >
I. Promotion.
II. Opportunity to handle challenging projects.
III. Teamwork.
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IV. Lunch breaks.
V. Pay hike.
I. Quantity of work.
II. Quality of work.
III. Attendance.
IV. Dependability.
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(a) Only (II) above
(b) Both (I) and (III) above
(c) Both (II) and (IV) above
(d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
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Suggested Answers
Introduction to Management - II (MB112) : October 2006
1. Answer : (a) < TOP >
Reason : Lower rates of turnover and absenteeism are true about organizationally committed and satisfied
employees.
2. Answer : (d) < TOP >
Reason : When a manager asks his assistant manager to provide feedback about the job performance of the
individual subordinate working under him in writing, it is called performance appraisal.
3. Answer : (d) < TOP >
Reason : An organizations choice of responsibility centers depends to a great extent on the structure of the
organization and not on its control mechanisms. Hence, statement (I) is not true. Statements (II), (III)
and (IV) are true about responsibility centers. Hence, option (d) is the answer.
4. Answer : (c) < TOP >
Reason : MIS (Management Information System) can be defined as an integrated, user-machine system for
providing information to support managerial, operational and decision-making functions in an
organization. The first necessary step to effectively operate an MIS is determining information needs.
5. Answer : (d) < TOP >
Reason : Hersey and Blanchard’s model proposes that a leader should adjust his or her leadership style in
accordance with the readiness of followers.
6. Answer : (e) < TOP >
Reason : Job analysis is the process of determining the tasks that make up a job and the skills, abilities and
responsibilities an employee needs to accomplish that job. Therefore, job analysis is not a
motivational technique, while all others are techniques of motivation.
7. Answer : (a) < TOP >
Reason : When a manager interviews a job candidate by asking him a list of questions from an outline, it is an
example of a structured interview. In this, the interviewee has a predetermined set of questions that
are asked in sequence with virtually no deviations. (b) A stress interview relies on a series of harsh
rapid-fire questions that are indeed to upset the applicant and show how the applicant handles stress.
(c) Unstructured interviews are informal and unorganized. (d) A Comprehensive interview is an in-
depth selection interview which is designed to find out more about the applicant as an individual, and
in general, obtain information of interest to the interviewer so that the suitability of the candidate for
the job and the organization can be determined. (e) Semi-structured interview is a combination of
structured and unstructured interviews.
8. Answer : (d) < TOP >
Reason : Process Consultation intervention technique is concerned with the interpersonal relations and
dynamics operating in work groups. Hence, from above discussion, we can infer that option (d) is
correct.
9. Answer : (c) < TOP >
Reason : In the geocentric orientation toward international business, a firm analyzes the needs of customers
worldwide and then adopts standardized practices for all the markets it serves.
10. Answer : (a) < TOP >
Reason : A leader shows high relationship behavior and high task behavior when
I. Eventually, employees learn to perform their tasks.
II. Employees still need to be guided by leaders.
11. Answer : (c) < TOP >
Reason : All the given statements about equity theory are true except the statement that perception of fairness
depends on the behavior and treatment a superior emits towards an employee.
12. Answer : (d) < TOP >
Reason : An example of an internal force for change is workforce. Hence, from above discussion, we can infer
that option (d) is correct. Options (a), (b), (c) and (e) are all incorrect as they are all external forces
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for change.
13. Answer : (e) < TOP >
Reason : The following statements are true with respect to ‘discretionary expense centers’:
I. The output of a discretionary expense center cannot be directly used to produce revenues.
II. Budgets for discretionary expense centers are developed only in terms of maximum resources
that can be consumed by them in a particular period.
III. For assessing the budgetary performance, the expense constraints are established at the
discretion of the manager.
14. Answer : (b) < TOP >
Reason : Informal organizations that yield considerable power in formal organizations are referred to as
habatsu.
15. Answer : (d) < TOP >
Reason : Trade payables are a current liability and not a current asset.
16. Answer : (c) < TOP >
Reason : Manager Inventory Chart is a partial organization chart that shows managerial positions, current
incumbents, potential replacements for each position, and the age of each person. However, it does
not show the position to which a manager may be promoted. Hence from above discussion, we can
infer that option (c) is not an advantage of Manager Inventory Chart. Options (a), (b), (d) and (e) are
all advantages of Manager Inventory Chart.
17. Answer : (c) < TOP >
Reason : According to Maslow, a person who is looking for affection, belongingness, acceptance, and
friendship is said to be having a social need.
18. Answer : (a) < TOP >
Reason: The sequence of the phases in the managerial creative process is (III) unconscious scanning, (II)
intuition, (I) insight and (IV) logical formulation. Hence, option (a) is the answer.
19. Answer : (d) < TOP >
Reason : Liquidity ratios measure the ability of an organization to meet its short-term obligations by using its
current assets.
20. Answer : (c) < TOP >
Reason : In US Management style, organizing process usually involves (I) Individual responsibility and
accountability, (II) Clear and specific decision responsibility and (V) Formal, bureaucratic
organization structure.
21. Answer : (a) < TOP >
Reason : According to Fiedler, the least-preferred coworker questionnaire measures whether a person is task-
oriented or relationship-oriented.
22. Answer : (a) < TOP >
Reason : The basic elements of interpersonal communication are source/encoder, signal, and
decoder/destination.
23. Answer : (d) < TOP >
Reason : According to Herzberg and his associates job content factors which cause satisfaction are known as
motivators and job context factor that cause dissatisfaction Hygene factors. (d) is the correct answer.
24. Answer : (d) < TOP >
Reason : The following statements is/are true about ‘economic order quantity (EOQ)’:
I. It is helpful for determining desirable inventory levels when demand is predictable.
III. Decisions based on EOQ could lead to shortage or excess of inventory.
Statement (II) is not true as EOQ may not be useful in determining inventory levels of parts and
materials used in production.
25. Answer : (c) < TOP >
Reason : ‘An autocratic leader will always have low performance from employees’, is not a true statement
about autocratic leadership. An autocratic leader may have high performance too from employees.
26. Answer : (d) < TOP >
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Reason : In a PERT network, the sequence of events and activities requiring the longest period of time
complete is called the critical path.
27. Answer : (b) < TOP >
Reason : Having ISO 9001 certification is not a pre-requisite to adopt a Just-In-Time (JIT) system. Hence, from
above discussion, we can infer that option (b) is correct. Options (a), (c), (d) and (e) are all
characteristics of Just-In-Time (JIT) system.
28. Answer : (b) < TOP >
Reason : Activity rations when high increases an organization’s profitability resulting in a lesser need for
investment in assets.
29. Answer : (b) < TOP >
Reason : Manipulation strategy of overcoming resistance to change, usually involves selectively providing
information about a change so that it appears more attractive or necessary to potential resisters.
30. Answer : (d) < TOP >
Reason : Behaviorally Anchored Rating Scales (BARS) is a sophisticated and useful rating method. BARS
contain sets of specific behaviors that represent gradations of performance used as common reference
points (anchors). (d) is correct answer.
31. Answer : (b) < TOP >
Reason : The labor productivity index is also referred to as output per work-hour ratio.
33. Answer : (d) < TOP >
Reason : Managers must develop methods of measurement to signal when deviations from standards are
occurring so that corrective action can be taken.
34. Answer : (d) < TOP >
Reason : The following can be used in training high-potential employees to become effective leaders:
I. 360 degree feedback.
II. Organization culture workshops.
IV. Community empathy.
35. Answer : (d) < TOP >
Reason : Operations Management oversees the transformation process that converts resources such as labor
and raw materials into finished goods and services.
40. Answer : (a) < TOP >
Reason : Hazard analysis involves identification of preventive measures the manufacturing units can adopt, to
control food safety hazards that arise during processing.
41. Answer : (d) < TOP >
Reason : Policies, procedures, and budgets are examples of feedforward control. Quality inspections are
examples of concurrent controls and balance sheets are examples of feedback controls.
42. Answer : (d) < TOP >
Reason : The following are inferences drawn from the Ohio State studies:
I. The dimension ‘initiating structure’ identified by Ohio State studies is similar to the job
centered leader behavior identified by Iowa studies.
II. ‘Consideration’ in Ohio studies emphasizes people related issues.
IV. The two-dimensional approach led to the probability that a leader might place emphasis on
both task and people related issues.
Statement (III) is not an inference as Ohio State studies consider initiating structure and consideration
as independent behaviors and not two ends of the same continuum.
43. Answer : (b) < TOP >
Reason : Job enlargement is a job design approach that involves the allocation of a wider variety of similar
tasks to a job in order to make it more challenging.
44. Answer : (d) < TOP >
Reason : Forces/traits within the manager that determine effective leadership behavior include his/her
I. Values.
II. Confidence in subordinates.
IV. Aggressiveness.
45. Answer : (a) < TOP >
Reason : A transaction processing system uses events as inputs and gives outputs in the forms of detailed
reports and lists.
46. Answer : (d) < TOP >
Reason : A team has a common purpose and long-term existence and has an approach to hold themselves
mutually accountable. Any congregation of individuals is called a group. An alliance is a relatively
temporary group of persons. A federation is one which the constituents (members) act independently,
though bound by a common goal. Cooperation is extending help to other members of a group.
47. Answer : (b) < TOP >
Reason : A work team comprised of experts from various specialties is most accurately referred to as a cross-
functional team. Hence, from above discussion, we can infer that option (b) is correct.
48. Answer : (b) < TOP >
Reason : According to Blake and Mouton, the most effective leadership style is Team management style.
'Team Managers' believe that concern for people and tasks are compatible and that tasks need to be
carefully explained and decisions endorsed by subordinates to achieve a high level of commitment.
Hence, from above discussion, we can infer that option (b) is correct.
49. Answer : (b) < TOP >
Reason : Job analysis is the process of determining the tasks that make up a job and the skills, abilities and
responsibilities an employee needs to accomplish that job. Hence, from above discussion, we can
infer that option (b) is correct.
50. Answer : (b) < TOP >
Reason : Non-verbal communication includes body posture, eye contact, distance from the receiver, voice
inflection, rate of speech, gesture, silence etc.
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51. Answer : (b) < TOP >
Reason : The following statements about assessment development centers (ADC)are true:
I. It comprises appraisal of an employee by a high powered panel.
III. It identifies internal employees having the potential to carry the business forward.
Statement (II) is not true as evaluation in ADC is objective.
Statement (IV) is not true as in this process junior talent is identified and nurtured to take them to
higher managerial responsibilities.
52. Answer : (c) < TOP >
Reason : When an employee is promoted to another job, it becomes essential to find someone to fill his/her
position in the organization. This is referred to as the ripple effect.
54. Answer : (c) < TOP >
Reason: Debt management ratio shows what percentage of the organization’s assets is financed by
creditors.
Reason : A message that is generated by the receiver in response to the sender’s original message is known as
feedback. So, (b) is correct answer.
56. Answer : (c) < TOP >
Reason : The following statements are true about Douglas McGregor’s Theory X and Theory Y:
II. Theory X assumes that people have little ambition.
IV. Theory Y assumes that commitment towards achievement of goals is proportionate to the size
of rewards attained.
Statement (I)-All people want security is true of Theory X and statement (III) complete utilization of
the intellectual potential of the average person does not take place under the conditions of modern
industrial life is an assumption of theory Y. Hence, option (c) is the answer.
57. Answer : (d) < TOP >
Reason : Cybernetic control system is a self-regulating control system that once put into operation, can
automatically monitor the situation. All other control systems may rely on human discretion. So, (d)
is the correct answer.
58. Answer : (c) < TOP >
Reason : As a source of potential job candidates, employee referrals generate the best referrals, because
employees can provide information on the applicant’s ability to perform on the job and how well he
or she can get along with others. Hence from above discussion, we can infer that option (c) is correct.
59. Answer : (b) < TOP >
Reason : Avoiding eye contact is not an effective listening technique. Effective listening requires eye contact.
Hence, from above discussion, we can infer that option (b) is not an effective listening technique.
Options (a), (c), (d) and (e) are all effective listening techniques.
60. Answer : (b) < TOP >
Reason : Linear programming is a technique for selecting an optimum combination of factors from a series of
interrelated alternatives, each subject to limitations, to achieve a desired goal.
61. Answer : (b) < TOP >
Reason : Some managers allow their personal likes and dislikes to distort the ratings they give to subordinates.
This is called Rater bias.
62. Answer : (a) < TOP >
Reason : Vroom’s expectancy theory assumes that an individual tends to act in a certain way, with the
expectation that the act will be followed by a given outcome and according to the attractiveness of the
outcome.
63. Answer : (d) < TOP >
Reason : Successful global management requires enhanced sensitivity to differences in national customs and
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practices.
64. Answer : (e) < TOP >
Reason : To encourage formal organizational communication, managers should support the flow of clear and
concise statements through formal channels, ensure free access to formal channels for all organization
members, and assign specific communication responsibilities to staff personnel.
65. Answer : (a) < TOP >
Reason : The given example explains the effort-performance linkage of Vroom’s theory.
66. Answer : (b) < TOP >
Reason : Complete understanding the nature of job and expected level of performance and achieving/reaching
peak level performance gives job satisfaction.
67. Answer : (a) < TOP >
Reason : Liquidity refers to an organization’s ability to convert its assets into cash to meet current financial
needs.
68. Answer : (c) < TOP >
Reason : Descriptions of customer satisfaction with products and services are examples of external information
in an organization.
69. Answer : (d) < TOP >
Reason : Making definitive changes is not an effective way to reduce resistance to change. Hence, from above
discussion, we can infer that option (a) is correct. Options (b), (c), (d) and (e) are all effective ways to
reduce resistance to change.
71. Answer : (d) < TOP >
Reason : The following are the postulates of the path – goal theory - I. Expectancy theory is the foundation of
the path-goal concept. III. The leader sets clear and specific goals for subordinates. IV. The leader
suitably rewards its employees as per their performance. The behavior of the leader is motivational to
the extent that such behavior compliments the environment of the subordinates. Therefore, statement
(II) is incorrect and option (d) is the answer.
72. Answer : (e) < TOP >
Reason : In the operations research methodology, mathematical model construction precedes the other steps.
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76. Answer : (a) < TOP >
Reason : A skills inventory is a computerized database consisting of information regarding an employee, his
skills, experience, interests, performance and other relevant personal characteristics. However, skills
inventory does not provide any information about employee turnover.
78. Answer : (d) < TOP >
Reason : In the Japanese management style, the management function of leading is characterized by
II. Paternalistic style of management.
III. Common values.
V. Bottom-up communication.
In Japanese management the leader acts as a social facilitator and group member. Hence, statement (I)
is not characteristic of Japanese management.
In Japanese management, confrontation is avoided; emphasis is on harmony. Hence, statement (IV) is
also not a characteristic.
Both statements (I) and (IV) are characteristics of the US style of management.
79. Answer : (c) < TOP >
Reason : Controlling is the task of evaluating the performance and taking corrective actions to accomplish
organizational objectives in accordance with predetermined ones. For this the first step is setting
performance standards. So, (c) is the correct answer.
83. Answer : (b) < TOP >
Reason : Financial control is relevant for those aspects of business operations whose outcomes are expressed in
monetary terms. The major techniques of financial control at operative level are budgetary control,
break-even analysis, Responsibility accounting and internal audit. Quality circle is not a technique of
financial control and it is a technique of operating control.
84. Answer : (b) < TOP >
Reason : Relocations/plant closings constitute a short range factor in resource demand forecasting. Hence,
option (b) is the answer.
85. Answer : (c) < TOP >
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Reason : The event that would be most likely to happen if a company was operating with insufficient capacity
is that the company would have a loss of sales and lower profits.
87. Answer : (d) < TOP >
Reason : Job performance is an activity of the individual in a performance appraisal system and not a
corrective action resulting from an appraisal.
90. Answer : (d) < TOP >
Reason : Ensuring that control activities are supported by most organization members is not essential for
making controlling successful.
91. Answer : (e) < TOP >
Reason : The correct sequence of the steps in the ‘career strategy formulation’ process is:
IV. Preparation of personal profile.
II. Development of long-range personal and professional goals.
I. Analysis of environment threats and opportunities.
III. Development of strategic career alternatives.
V. Monitoring progress.
Hence, option (e) is the answer.
92. Answer : (e) < TOP >
Reason : Information scope refers to information as being broad or narrow in coverage of an area of interest is
known as information scope.
93. Answer : (a) < TOP >
Reason : The following elements at the workplace would constitute ‘esteem needs’:
I. Promotion.
V. Pay hike.
94. Answer : (c) < TOP >
Reason : An enterprise self-audit appraises an organization’s position and helps it determine where it is, where it
is heading with its current plans and programs, whether it is meeting its objectives, and whether any
revision of plans is required to enable the organization to achieve its predefined goals and objectives.
95. Answer : (a) < TOP >
Reason : Job design is the structure of work such that performance and worker satisfaction are maximized.
96. Answer : (c) < TOP >
Reason : Innovation may take place in the event of all the given situations except when there is a change in
leadership.
97. Answer : (d) < TOP >
Reason : Graphic rating scales use a number of factors, including general behaviors and characteristics on
which employees are rated by superior. Superiors rate individuals on each factor, using a scale that
typically has about five grades. So, (d) is correct answer.
98. Answer : (b) < TOP >
Reason : The following statements are true with regard to ‘Decision Support Systems (DSS)’:
I. It is characterized by rapid response times.
II. It deploys easy-to-use software and interactive processing.
The DSS uses information generated by transaction processing systems and office automation
systems. Hence, statement (III) is not true.
DSS supports a manager’s judgement, and does not replace it. Hence, statement (IV) is not true.
99. Answer : (c) < TOP >
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Reason : Monitoring of work in a fixed period of time and analyzing and advising is a controlling function of
management. So, (c) is correct answer.
100. Answer : (e) < TOP >
Reason : Graphic rating scales are performance appraisal forms listing a number of factors, including general
behaviors and characteristics (such as attendance, quality of work, appearance, dependability,
quantity of work and relationship with people), on which employee is rated by the supervisor.
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