Chapter 1: Introduction to Management

1. Management may be defined as:

(a) A static process, that helps to get the things done, through and with the
efforts of people.
(b) A dynamic process, that helps to get the things done, through and with the
efforts of people.
(c) A cyclic process, that helps to get the things done, through and with the
efforts of people.
(d) A statutory process, that helps to get the things done, through and with the
efforts of people.
2. The father of scientific management is:
(a) .!. Taylor
(b) "eter #ruc$er
(c) !illiam %. &cott
(d) %eorge '. Terry
(. M)* stands for:
(a) Management by *b+ect
(b) Manage by *b+ecti,e
(c) Management by *b+ecti,e
(d) Management by *rgani-ation
.. %eneral theory of management was gi,en by:
(a) Ma/ !eber
(b) 0enry 1. %antt
(c) 0enri ayol
(d) rederic$ !. Taylor
2. Motion study in,ol,es the study of:
(a) Mo,ements in doing a +ob
(b) 0a-ards in doing a +ob
(c) "recaution in doing a +ob
(d) 3rror in doing a +ob
4. %antt chart compares the actual and planned performances for:
(a) "roduct planning
(b) "roduction planning
(c) Material planning
(d) 5uality planning
6. The scientific management school of thought ignores:
(a) 0uman desire for +ob satisfaction
(b) "iece7'ate incenti,e system
(c) ATTA8989% organi-ed $nowledge
(d) !or$ for ma/imum output
:. ;nity of command means:
(a) All operations of an organi-ation need to be directed to one ob+ecti,e.
(b) Managers must ha,e authority to get things done.
(c) Members in an organi-ation must recei,e instructions from only one
person.
(d) 8f people are speciali-ed, they can perform their tas$s better.
<. 3sprit de =orps means:
(a) Team spirit should be promoted to de,elop a culture of unity in an
organi-ation.
(b) &ubordinates should ha,e the freedom to concei,e and do their tas$
(c) Managers should be fair to their subordinates.
(d) There should be a line of authority
1>. !ho contributed the ?effect of human moti,ation on producti,ity and output@A
(a) Abraham Maslow
(b) 3lton Mayo
(c) =hris Argyris
(d) #ouglas Mc%regor
11. Management &cience Approach ,isuali-es management as a:
(a) 1ogical entity
(b) 0uman entity
(c) Manufacturing entity
(d) 3conomic entity
12. =ontingency Theory and &ystems Theory together are classified as the:
(a) &ystems theory approach
(b) Management science approach
(c) 5uantitati,e approach
(d) 8ntegrati,e school of management thought
1(. Theory B =oncepts, pioneered by *uchi and Caeger (1<6:), incorporate:
(a) 8ndian and American management culture
(b) Capanese and American management culture
(c) Capanese and Asian management culture
(d) 'ussian and American management culture
1.. Mint-berg, based on his study of fi,e organi-ations, identified ten different:
(a) 'oles of managers
(b) Types of wor$ culture
(c) Moti,ation factors
(d) *rgani-ation principles
12. M)* pa,ed the way for:
(a) formati,e management
(b) integrated management
(c) open management
(d) participati,e management
Dey:
1. (b)
2. (a)
(. (d)
.. (c)
2. (a)
4. (b)
6. (a)
:. (c)
<. (a)
1>. (b)
11. (a)
12. (d)
1(. (b)
1.. (a)
12. (d)
Chapter 2: Organizational Planning
1. &trategy is primarily concerned with:
(a) &cope of an organi-ation@s acti,ities
(b) =oncerns with resource implication
(c) Matching of the acti,ities of an organi-ation to that en,ironment in which
it operates
(d) All of the abo,e
2. ind the true statement:
(a) A ,ision in tangible form is a mission statement
(b) Eision is the category of intensions that are few, focused and narrow
(c) A mission statement ,erbali-es the goal
(d) 8t specifies the means that are used to achie,e the desired ends
(. !hich among the following is not a component of planningA
(a) "olicy
(b) )udgets
(c) "rocedures
(d) =ompliances
.. &trategic sur,eillance is designed to monitor a broad range of e,ents:
(a) inside the company
(b) outside the company
(c) inside and outside the company
(d) none of the abo,e
2. &trategy which is designed to assess the o,erall strategy results associated with
the incremental steps and actions that implement the o,erall strategy is:
(a) "remise control
(b) 8mplementation control
(c) &trategic sur,eillance
(d) &pecial alert control
4. A good budget is:
(a) i/ed
(b) 'igid
(c) le/ible
(d) 1i$ed by all
6. The #elphi techniFue is a:
(a) Time series analysis
(b) =ause7effect model
(c) 5ualitati,e model
(d) Manpower forecasting
:. '&3 stands for:
(a) 'unning summation of forecasting error
(b) 'unning sum of forecasting error
(c) 'unning sum of following error
(d) 'andom sum of forecasting error
<. A budget is a statement of anticipated results in:
(a) financial terms
(b) non7financial terms
(c) both (a) and (b)
(d) neither (a) nor (b)
1>. A decision tree is a:
(a) mathematical representation
(b) graphic representation
(c) diagrammatic representation
(d) geometrical representation
11. Method which smoothens random errors by gi,ing e/ponentially decreasing
weights to historical data is
(a) 3/ponential smoothing
(b) Mean absolute de,iation
(c) Mo,ing a,erage method
(d) Time series analysis
Dey:
1. (d)
2. (a)
(. (d)
.. (c)
2. (b)
4. (c)
6. (c)
:. (b)
<. (c)
1>. (b)
11. (a)
Chapter 3: Organizing
1. The form of departmentation that adopts parts of both functional and di,isional
structures at the same le,el of management is $nown as:
a) le/ible
b) 0ori-ontal
c) Matri/
d) 0ybrid
2. The buffering role to account for the e/ternal organi-ational uncertainty is called:
(a) =ontingency Approach
(b) )oundary Tapping
(c) 8ndustry &panning
(d) )oundary &panning
(. 3ach &);@s competitor groups are:
(a) #ifferent
(b) =ategori-ed together
(c) &ame
(d) Match completely
.. low of Authorities from the top to down the line employees is $nown as:
(a) unctional *rgani-ation
(b) &taff *rgani-ation
(c) ormal *rgani-ation
(d) 1ine *rgani-ation
2. According to #ruc$er, acti,ity analysis, decision analysis and G are three
aspects that help an organi-ation achie,e its ob+ecti,es.
(a) regression analysis
(b) relation analysis
(c) correlation analysis
(d) organi-ation analysis
4. !hich of the following organi-ational structures does Mc#onald@s followA
(a) Machine bureaucracy
(b) "rofessional bureaucracy
(c) Adhocracy
(d) 3ntrepreneurial structure
6. !ho used the term HadhocracyI for the first timeA
(a) Mint-berg
(b) Toffler
(c) !aterman
(d) #ruc$er
:. Wider spans of management lead to Gorgani-ation structures
(a) Tall
(b) lat
(c) )ig
(d) &mall
Key:
1. (d)
2. (d)
(. (a)
.. (a)
2. (b)
4. (a)
6. (b)
:. (b)
Chapter 4: Staffing in Organization
1. A sound recruitment policy needs to:
(a) 8dentify, at the outset, the recruitment needs of the organi-ation
(b) 8dentify the preferred sources of recruitment
(c) rame suitable criteria for selection and finally
(d) All the abo,e

2. The four le,els of measurement in scaling techniFues for attitudinal mapping are:
(a) 9ominal, ordinal, internal and ratio
(b) 9ominal, ordinal, e/ternal and ratio
(a) 9ominal, ordinal, internal and relation
(b) =ardinal, ordinal, internal and ratio

(. A 1i$ert scale is a:
(a) &emantic scale
(b) &emantic differential scale
(c) &ummated instrument scale
(d) Thurstone scale
.. !hich among the following is not an attitude measuring scaleA
(a) 1i$ert@s summated scale
(b) Thurstone@s eFual appearing inter,al scale
(c) %uttman@s cumulati,e scale
(d) "sychoanalytical scale
2. An inter,iew that assesses the candidates@ emotional balance is called a:
(a) %roup inter,iew
(b) &tress inter,iew
(c) #irect planned inter,iew
(d) "anel or board inter,iew
4. &pecific orientation is intended to help new employees:
(a) )y gi,ing guidance and counselling them
(b) )uild a sense of pride for the organi-ation
(c) %et acclimati-ed with their new wor$ en,ironment
(d) "ro,ide targets and Dey 'esult Areas
6. The ,arious stages of the employee sociali-ation process include:
(a) "re7Arri,al &tage, 3ncounter &tage and Metamorphosis &tage
(b) "ost7Arri,al &tage, 3ncounter &tage and Metamorphosis &tage
(c) "re7Arri,al &tage, &ettlement &tage and Metamorphosis &tage
(d) "re7Arri,al &tage, 3ncounter &tage and Transformation &tage
:. ollow7up orientation is the one which is conducted:
(a) At the time initial induction of an employee
(b) After some time of initial induction of an employee
(c) After initiation of wor$ by the employee
(d) #uring the first phase of an employee@s e,aluation
<. %roup inter,iew is conducted to assess the:
(a) 3motional balance of the candidates
(b) Management ability of the candidates
(c) 1eadership ability of the candidates
(d) =ontrol ability of the candidates
1>. The problems with attitude measurement are:
(a) #efinition of attitude
(b) 1ac$ of common methods of measurement
(c) *perationalisation of outcome measures
(d) All the abo,e
Dey:
1. (d)
2. (a)
(. (c)
.. (d)
2. (b)
4. (c)
6. (a)
:. (b)
<. (c)
1>. (d)
Chapter !
1. !hich one of the following is an e/ceptional moti,ating factorA
(a) "unishment
(b) "romotion
(c) "articipation
(d) 8ncrease in salaries
2. The elements of direction are
(a) 8ssuing instructions
(b) Moti,ation
(c) &uper,ision
(d) All the abo,e
(. The 0awthorne e/periments were conducted by G and his colleagues.
(a) 3lton Mayo
(b) Abraham Maslow
(c) rederic$ Taylor
(d) "hilip Dotler
.. TAT, a test used by Mc1elland, stands for the G
(a) Test of aggression and thin$ing
(b) Time appreciation test
(c) Thin$ing and apprehension test
(d) Thematic apperception test
2. !ho professed the need hierarchy theory of moti,ationA
(a) Mc%regor
(b) .!. Taylor
(c) Abraham Maslow
(d) 0enry ayol
4. Theory J and Theory K are propounded by:
(a) !illiam %. *uchi
(b) Abraham Maslow
(c) 0er-berg
(d) #ouglas Mc%regor
6. !ho propounded the moti,ationLhygiene theoryA
(a) Maslow
(b) 0er-berg
(c) Mint-berg
(d) Mc%regor
:. G theory concerns itself with the cogniti,e process by which an indi,idual
interprets beha,iour attributing to certain parts of the rele,ant en,ironment.

(a) &atisfaction
(b) attribution
(c) e/pectancy
(d) eFuity
Key
(c)
(d)
(a)
(d)
(c)
(d)
(b)
(b)
Chapter " : #irecting $hrough %eaderhip
1. !hat among the following is not true for leadershipA
(a) 8t is a "rocess of 8nfluencing *thers
(b) 8t regulates 8ndi,idual )eha,iour
(c) 8t is a 8rregular "rocess
(d) 1eadership 8s &ituational

2. 1eadership can e/ist on a
(a) ormal )asis
(b) 8nformal )asis
(c) "rescribed )asis
(d) )oth (a) and (b)
(. According to 8owa 1eadership &tudies, which of the following is not a leadership
styleA
(a) Team leader
(b) #emocratic leader
(c) 1aisse-7faire leader
(d) Authoritarian leader
.. =ontinuum Theory fails because:
(a) 8t supports uni7dimensional thin$ing
(b) The continuum does not hold
(,) 3ither (a) or (b)
(d) )oth (a) and (b)
2. !hich among the following is not a style of leadershipA
(a) =ountry =lub
(b) Middle on the road
(c) "lacard
(d) 8mpo,erished
4. The our ramewor$ Model does not include the:
(a) &ymbolic ramewor$
(b) "olitical ramewor$
(c) &tructural ramewor$
(d) &ocial ramewor$
6. The our ramewor$ Approach was gi,en by:
(a) 1ee )olman and Terrence #eal
(b) .!. Taylor
(c) '.D. 0ouse
(d). Delly
:. The Trait Theory of 1eadership stresses on:
(a) )eha,ioural characteristics of effecti,e leaders
(b) 8ndi,idual characteristics of effecti,e leaders
(c) 8ntuiti,e characteristics of effecti,e leaders
(d) "ersonal characteristics of effecti,e leaders
<. The &ituational Theory of 1eadership emphasi-es that:
(a) 1eadership emerges from training
(b) 1eadership emerges from a situation
(,) 1eadership emerges from ability
(d) 1eadership emerges from responsibility
1>. The %reat Man Theory of 1eadership emphasi-es that:
(a) 1eaders are made and not born
(b) 1eaders are born and not made
(c) 1eaders are born or made
(c) 9one of these
11. 8n which type of leadership style does the leader assume his function li$e a fatherA
(a) 1aisse-7faire style of leadership
(b) #emocratic style of leadership
(c) "aternalistic leadership
(d) Autocratic style of leadership
Dey:
1. (c)
2. (d)
(. (a)
.. (d)
2. (c)
4. (d)
6. (a)
:. (d)
<. (b)
1>. (b)
11. (c)
Chapter &: Introduction to Control
1. The prereFuisites that must e/ist before any manager can de,ise or maintain a
system of control are:
(a) "lan
(b) *rgani-ational &tructure
(c) )oth (a) and (b)
(d) 3ither (a) or (b)

2. 8n accordance with the stages of application, the control function is di,ided
into:
(a) "reliminary =ontrol
(b) Monitoring
(c) 3,aluati,e or eedbac$ =ontrol
(d) All the abo,e
(. !hich among the following is not a type of controlA
(a) "roduction =ontrol
(b) Tactical =ontrol
(c) *perational =ontrol &ystems
(d) &trategic =ontrol
.. The first step in the process of control is:
(a) Measurement of "erformance
(b) =orrection of #e,iations
(c) Monitoring the =hanges
(d) 3stablishment of &tandards
2. A manager should structure the control system in such a way that de,iations
are predicted well in time and correcti,e actions initiated before substantial
de,iations occur. This type of control is called:
(a) predicti,e control
(b) correcti,e control
(c) forward7loo$ing control
(d) all of the abo,e
4. The two prereFuisites of a good control system are:
(a) planning and organi-ational structure
(b) good managers and wor$ers
(c) both (a) and (b)
(d) none of the abo,e
6. M=& stands for:
(a) Management control systems
(b) Manager@s control systems
(c) Managing control systems
(d) 9one of the abo,e
:. G is largely credited with institutionali-ing the control systems in
organi-ations.
(a) Taylor
(b) Maslow
(c) ayol
(d) !eber
Dey:
1. (c)
2. (d)
(. (a)
.. (d)
2. (c)
4. (a)
6. (a)
:. (d)
Chapter ': Coordination in Organization
1. 0enri ayol laid emphasis on an internal coordination suggesting:
(a) 3ach department of an organi-ation should wor$ in a proper harmony with
the rest
(b) 3ach department or di,ision should be informed of its share in the group
tas$
(c) !or$ing schedule of different departments should be constantly attuned to
circumstances
(d) All of the abo,e
2. =oordination between different departments at the same le,el in a chain of
command is called:
(a) Eertical coordination
(b) 0ori-ontal coordination,
(c) *rgani-ation coordination,
(d) 9one of the abo,e
(. *rgani-ational ob+ecti,es change with organi-ational budgets and priorities.
)udgets being made annually and priorities being changed to $eep pace with
the en,ironmental forces, coordination is:
(a) e,er e/isting,
(b) dynamic
(c) a continuous process
(d) All of the abo,e
.. =oordination is necessary to integrate group acti,ities with the organi-ational
ob+ecti,es. Through MMMMMMMMMMMMMMMcoordination, organi-ations integrate
indi,iduals as well as group acti,ities.
(a) ,ertical
(b) hori-ontal
(c) ,ertical and hori-ontal
(d) 9one of the abo,e
2. =oordination is considered as an all7per,asi,e and permeating function of
management, which passes through the managerial functions of:
(a) planning
(b) controlling
(c) directing
(d) All of the abo,e
4. =oordination cannot be achie,ed spontaneously. 8t emanates from conscious
and concerted action of the:
(a) *rgani-ation
(b) management
(c) 3mployee
(d) 9one of the abo,e
6. MMMMMMMMMMMis more ,isible for entrepreneurial organi-ations.
(a) #irect super,ision
(b) Mutual ad+ustments
(c) &tandardi-ation of wor$
(d) &tandardi-ation of outputs
:. An important function of coordination is to:
(a) o,ercome the unhealthy human nature
(b) promote synergy within a group which helps in accomplishing e,en in
e/cess of the standard rate of indi,idual performance
(c) help a growing organi-ation by de,eloping an effecti,e networ$ of a huge
number of people wor$ing in an organi-ation
(d) All of the abo,e
<. MMMMMMMMM help to coordinate acti,ities of different indi,iduals. 8t helps in
bringing agreement on different managerial actions and decisions duly
clarifying possible misunderstandings of employees.
(a) #irect personal contacts
(b) 3arly start
(c) 'eciprocity
(d) =ontinuity
1>. The ob+ecti,e and purpose of coordination in an organi-ation is to:
(a) 'econcile goals by eliminating conflict
(b) achie,e economy and efficiency as the a,oidance of duplication of efforts
lead to sa,e wastage of men, materials and machine
(c) achie,e good personal relations, which enhance employees@ morale and
producti,ity and through +ob satisfaction increases their le,el of intrinsic
moti,ation
(d) All of the abo,e
11. MMMMMMMMMMMMMM is the coordination between different le,els of the
organi-ation to ensure that all le,els of organi-ation are in harmony with the
organi-ational policies and programmes.
(a) Eertical coordination
(b) 0ori-ontal coordination
(c) 8nternal coordination
(d) 3/ternal coordination
12. !hich of the following techniFues helps in achie,ing internal coordinationA
(a) =oordination through effecti,e super,ision
(b) =oordination through organi-ational process
(c) =oordination through personal contact
(d) All of the abo,e
Dey:
1. (d)
2. (b)
(. (d)
.. (c)
2. (d)
4. (b)
6. (a)
:. (d)
<. (a)
1>. (d)
11. (a)
12. (d)
Chapter (: Organizational )orm
1. A sole proprietor runs hisNher business as an entrepreneur and is
MMMMMMMMMMMresponsible for all business out comes, which includes personal
obligation for all liabilities.
(a) "ublicly
(b) "ersonally
(c) 1egally
(d) 8llegally

2. The ad,antage of sole proprietorship is G
(a) 8t is relati,ely easy and less e/pensi,e to form and administrate.
(b) 8t en+oys ma/imum managerial control
(c) )oth (a) and (b)
(d) 9one of the abo,e
(. =haracteristically in a MMMMMMMMfirm, we find in,ol,ement of two or more
persons, contractual relations between the persons, lawful business, sharing of
profit, agency relationship, unlimited liability and non transferability of
interest.
(a) "ri,ate
(b) "ublic
(c) &ole proprietorship
(d) "artnership
.. 'esponsibility of managerial control on partners become more significant
when the si-e of the firm is:
(a) 'elati,ely small
(b) 'elati,ely big
(c) Medium si-e
(d) 9one of the abo,e
2. A +oint stoc$ company is identified by the terms:
(a) 1td
(b) =orp
(c) 8nc.
(d) All of the abo,e
4. An erstwhile pri,ate or public limited company ta$en o,er by the go,ernment
(a case of nationali-ation) is $nown as a:
(a) go,ernment underta$ing
(b) departmental underta$ing
(c) go,ernment enterprise
(d) go,ernment firm
6. MMMMMMMMMMMMMare those organi-ations which are different from the rest as
they are formed not for the purpose of ma$ing profit but to pro,ide their
members goods and ser,ices at reasonable rates.
(a) 9%*s
(b) =ooperati,e organi-ations
(c) %o,ernment organi-ations
(d) "ublic organi-ations
:. The structure of a cooperati,e organi-ation ensures:
(a) *pen and ,oluntary membership
(b) 1imited interest on share capital
(c) &urplus is returned to the members according to amount of patronage
(d) All of the abo,e
<. Adidas is an e/ample of a:
(a) 0ori-ontally integrated M9=
(b) Eertically integrated M9=
(c) #i,ersified M9=
(d) 9one of the abo,e
1>. The disad,antage of a cooperati,e organi-ation is that:
(a) it entails a longer decision7ma$ing process
(b) it reFuires members to participate for success
(c) e/tensi,e record $eeping is necessary in this form of organi-ation
(d) All of the abo,e
11. MMMMMMMMMMMmultinational corporations do not manage production
establishments located in different countries.
(a) 0ori-ontally integrated M9=
(b) Eertically integrated M9=
(c) #i,ersified M9=
(d) 9one of the abo,e
12. A MMMMMMMMM is an organi-ation that has its facilities and other assets in at
least one country other than its home country.
(a) 0ori-ontally integrated M9=
(b) Eertically integrated M9=
(c) #i,ersified M9=
(d) Multi 9ational 3nterprise
1(. Most of the multinational corporations are based in
(a) #e,eloped countries
(b) #e,eloping countries
(c) Asian countries
(d) 3uropean =ountries

Dey:
1. (b)
2. (c)
(. (d)
.. (a)
2. (d)
4. (a)
6. (b)
:. (d)
<. (b)
1>. (d)
11. (c)
12. (d)
1(. (a)