Model Question Paper I

1. Which of the following is not a leadership style according to the ‘path-

goal
a. Instrumental leadership
b. Supportive leadership
c. Participative leadership
d. Authoritative leadership
2. A project manager in a software development company establishes
reasonable
e. Upward legitimate power
f. Vertical legitimate power
g. Downward legitimate power
h. Horizontal legitimate power
3. A top executive takes a high risk when launching an advertising
campaign which predicts 40% success, but the top executive when
buying machinery decides not to take a risk. Which of the following best
describes the position of the manager in both the situations
i. Risk averter-gambler
j. Gambler-speculator
k. Gambler-risk averter
l. Risk evader-gambler
4. Which one of the following is not an important reason for goal setting?
m. Acts as a motivational force
n. Discourages focused work
o. Emphasizes team-work
p. Directs the activities of the organization
5. According to Vroom’s expectancy theory what would be the valence of
an individual who is indifferent to the outcome
q. +1
r. 0
s. –1
t. +0.5

6. A large manufacturing company producing multiple products found that

large differences in the product or services lines make coordination
within a functional design extremely slow and inefficient. In this
situation, which of the following organizational structures is suitable for
the company to solve this problem?
u. Territorial division structure
v. Geographic division structure
w. Product division structure
x. Customer division structure
7. Which of the following functions of management involves filling and
keeping filled positions in the organization structure
y. Planning
z. Organizing
aa. Staffing
bb. Controlling
 8. Which of the following media is not used for written downward
communication
cc. Memorandum
dd. Grapevine
ee. Handbooks
ff. Pamphlets
9. Company A’s top management is planning to introduce a new product in
the
market. Which information will not help the management take a decision
regarding the new product
a. Demand for new products
b. Availability of substitutes
c. Information describing customer satisfaction with substitutes
d. Quantity of another product in the inventory
10. Styre Company is a tyre manufacturing company. Recently, to expand its
operations. Therefore, the company wanted to take up a new venture. To
take up a new venture, the company needs to review the current financial
position of the organization. Which of the following shows the financial
condition of a business at a given point of time?
gg. Balance sheet
hh. Income statement
ii. Cash flow statement
jj. Funds flow statement
11. Which of the following branches of the classical viewpoint of
management is based on the contributions of Max Weber
kk. Scientific management
ll. Bureaucratic management
mm. Administrative management
nn. Behavioral management

12. Which of the following is not a motivational technique

oo. Participation
pp. Quality of work life
qq. Job enrichment
rr. Job description
13. In Zahir Group of industries, there was low concern for people and also
there was low concern for tasks and production. According to managerial
grid, which type of management style is ‘Zahir Group’ following
ss. Impoverished management
tt. Authority compliance management
uu. Middle of the road management
vv. Team management
14. Which theory paved way for ideas such as upward communication and
the informal organization
ww. Theory X
xx. Systems theory
yy. Acceptance theory of authority
zz. General theory of management
 15. Which type of planning provides the organization with well-equipped
individuals who can be selected as managers for top-level and middle-
level positions in future?
aaa. Replacement planning
bbb. b. Succession planning
ccc. Resource planning
ddd. Requirements planning
16. Who among the following proposed the concept of functional suthority?
eee. Chris Argyris
fff. Max Weber
ggg. F.w.Taylor
hhh. Elton Mayo
17. Which of the following is not a potential resource weakness and
competitive deficiency?
iii. No clarity in strategic direction
jjj. Obsolete facilities
kkk. Strong brand name
lll. High debt
18. Which of the following needs of Maslow’s needs hierarchy theory does not
correspond with the hygiene factors of Herzberg’s two factor theory?
mmm. Physiological needs
nnn. Esteem needs
ooo. Security or safety needs
ppp. Social needs

19. In the classical approach, who first introduced the concept of training workers for
the benefit of both workers and the organization ?
qqq. HenryL. Gantt
rrr. Frederick W. Taylor
sss.Frederick W. Taylor
ttt. Max Weber
20. Which of the following is not a corrective control?
uuu. Concurrent control
vvv. Feed forward control
www. Feedback control
xxx. Yes-no control

21. Whose principles of management gave rise to the concept of team spirit among
employees (known as ‘Espirit de corps)?
a. Henry L. Gantt
b. Henri Fayol
c. Max Weber
d. Lillian B. Gilbreth
 22. In process consultation, an organizational development change agent observes the
group and provides feedback relating to dysfunctions in all the following area
except:
a. Decision making
b. Conflict handling
c. Communication patterns
d. Fund management
23. Which one among the following area for strategic goals identifies factors that
indicate the financial well being of an organization?
a. Profit requirements
b. Productivity
c. Financial resources
d. Physical resources
24. Which of the following is not a competitive advantage or a strength for any
company?
a. Strong brand image
b. Product innovation skills
c. Cost advantage
d. High debt
25. Which of the following terms refers to the time gap between placing and
receiving an order?
a. Reorder time
b. Lead time
c. Real time
d. Just –I n- time
26. Which of the following types of manager is unlikely to delegate authority to his
subordinates?
a. Docile
b. Autocratic
c. Passive
d. Submissive
27. Who outlined planning, organizing staffing, leading and controlling as functions
of management
a. Frederick Winslow Taylor
b. Henri Fayol
c. Henry L. Gantt
d. Max Weber
28. Which of the following is a disadvantage of the divisional structure of
departmentalization?
a. Simplifies coordination
b. Focuses of resources
c. Duplication of resources and activities
d. Equips personnel with variety of skills.

29. Which of the following is not a form of group decision – making?

a. Interacting groups
b. Delphi groups
c. Simulation
d. Nominal groups
30. Which of the following is the origin of any motivated behavior?
a. Need
b. Drives
c. Goals
d. Wants
31. Which of the following is not a storage device?
a. Floppy discs
b. Bar – code readers
c. Magnetic discs
d. Laser – generated compact discs
31. Which of the following standards are nonmonetary measurements common at
the operational level?
a. Cost standards
b. Revenue standards
c. Program standards
d. Physical standards
32. Which of the following is an argument against involvement of businesses in social
welfare activities?
a. Balance of responsibility and power
b. Protecting shareholder interests
c. Excessive costs
d. Favorable public image

33. Which of the following is not a liquidity ratio

a. Acid test ratio
b. Activity ratio
c. Current ratio
d. Working capital
34. What kind of plans do managers make on the basis of future expectations of
political, legal, social, technological and economic environments
a. Primary plans
b. Secondary plans
c. Contingency plans
d. Situational plans
35. Which of the following managers are concerned with producing and managing the
systems that create an organization’s products and services?
a. Marketing
b. Financial
c. Operations
d. Human resource
36. Which of the following is a growth strategy that is concerned with the number of
various business run by an organization and the degree to which these business
are related to each other
a. Simulation
b. Synergy
c. Diversification
d. Strategic alliance
37. Which type of technical innovation involves changes in the physical
characteristics of a product or the creation of new products
a. managerial innovation
 b. Radical innovation
c. Process innovation
d. Product innovation

38. Which of the following is an analytical approach and involves the evaluation of
the various business units of an organization by its top management
a. Value based approach
b. Corporate portfolio approach
c. BCG matrix
d. Business unit approach
39. Which managerial function involves the process of setting goals, and finding and
deciding the best ways to achieve them?
a. Planning
b. Organizing
c. Staffing
d. Controlling
40. Which of the following is/are the reason(s) for not allowing line managers in
certain situations to exercise functional authority
a. lack of specialized knowledge
b. Risk of policies being interpreted incorrectly
c. Lack of competence and expertise to supervise processes
d. All the above
41 Which of the following is useful in interpreting an organization’s financial
statements, assessing the organization’s current financial condition and
determining its strengths and weaknesses
a. Marginal analysis
b. Financial analysis
c. Ratio analysis
d. Break-even analysis
42. Which of the following is synonymous with the external culture of an
organization
a. Corporate culture
b. Social culture
c. Corporate philosophy
d. Social programs
43. Which of the following is not a part of human resource planning
a. Forcasting manpower demand
b. Forecasting manpower supply
c. Performance appraisal
d. Hiring and training manpower
44. David and Mary are working in GB Industries David, a graduate earns $20,000,
whereas, Mary a post graduate earns $25,000. David feels equitably rewarded
even though he is earning $5000less than Mary. Which theory of motivation
explains this process, where individuals compare themselves with others in terms
of input and output
a. Expectancy theory
b. Two-factor theory
c. Equity theory
d. Path-goal theory
45. Which of the following is a normal process that may result in the decline of a
system
a. Entropy
b. Synergy
c. Simulation
d. Extinction
46. What kind of plan facilitates the delegation of authority
a. Single-use plan
b. Contingency plan
c. Standing plan
d. None of the above
47. Which of the following steps of the change process involve discovering and
adopting new attitudes, values and behaviors
a. Moving
b. Refreezing
c. Unfreezing
d. Freezing
48. Which of the following describes the distribution of an organization’s resources
over the areas in which it competes
a. Resource deployment
b. Resource accumulation
c. Resource gathering
d. Resource garnering
49. Which of the following is not used as a bases for departmentation
a. Departmenattion by simple numbers
b. Departmentation by time
c. Departmentation by process or equipment
d. Departmentation by strategies
50. Which one of the following did not contribute to Pre-classical management
though
a. Robert Owen
b. Charles Babbage
c. Henri Fayol
d. Henry R. Towne
51. Which of the following is not an area of managerial decision-making where liner
programming can be used
a. Product mix decisions
b. Inventory management problems
c. Scheduling production facilities
d. Determining break-even point
53. Which of the following is not a method used in selecting prospective candidates
under staffing
a. Preliminary screening
b. Exit interviews
c. Selection test
d. Comprehensive interviews
54. Which of the following is not a responsibility of a Chief executive Office
a. Advising the board on various aspects
b. Selecting and evaluating board members
c. Designing short- range operational
 d. Acting as a link between employees
55. Which of the following practices went on to become a major tool in quality
improvement programs
a. Brainstorming
b. Benchmarking
c. BCG matrix
d. Bounded rationality
56. Which of the following refers to the ability of a corporation to relate its operations
and policies to the social environment in ways that are mutually beneficial to the
company and to social
a. Social responsibility
b. Organizational responsiveness
c. Social responsiveness
d. Social adaptability
57. Which of the following is not required to attain cost leadership
a. Process engineering skills
b. Intense supervision labor Creative flair
c. Creative flair
d. Low-cost distribution system
58. Which of the following is an independent appraisal of an organization’s
management by an outside firm
a. Certified accounting audit
b. Certified management audit
c. Enterprise self audit
d. Control audit
59. Which of the following is not a transaction processing system
a. Groupware
b. Merging contents of various files
c. Retrieving stored data
d. Printing data
60. David Kirch, a palant manager, is looking for a site for a new plant. The first site
met the basic requirements for utilities, transportation and price. He selected this
site without further searching for a better location, though further search might
have led to the identification of a better site. With reference to the administrative
model of decision-making, which of the following terms best describes Krich’s
decision
a. Bounded rationality
b. Using incomplete information
c. Satisficing
d. Using imperfect information
61. Which of the following includes factors like profitability, sales, and R&D and
has a direct bearing on an organization’s well being
a. Planning premises
b. Key result areas
c. Corporate objectives
d. Operations
62. Which of the following dimension of the task environment involves two or more
companies working together in partnerships?
a. Competitors
b. Strategic allies
 c. Technocrats
d. Quality circle
63. Which of the following is not a form of on – the – job training for managers?
a. Planned progression
b. Job rotation
c. Temporary promotions
d. Planned regression
64. What do managers do in the liaison role?
a. Communicate with outsiders on behalf of the organization
b. Communicate with people outside and within the organization.
c. Communicate organizational information to subordinates
d. Receive information about the organization.

65. Which of the following is not a variable in the strategy implementation phase of
the strategic management process?
a. Technology
b. Human resources
c. Structure
d. Financial resources
66. Which of the following can be a basic for specifying standards of performance?
a. Positional job analysis
b. Job description
c. Functional job analysis
d. Job performance

67. The quality manager of Tyris manufactures instructed the production manager of
the company to reduce the number of defective products in the production
process. Which kind of authority was the quality manager exercising in this case?
a. Functional authority
b. Line functional authority
c. Ancroachment of line authority
d. Both a and b
68. Which type of leaders gives complete freedom to their employees?
a. Autocratic leaders
b. Bureaucratic leaders
c. Participative leaders
d. Laissez- fair leaders
69. _________ are the funds accumulated from the profits of the organization.
a. Accrued pension
b. Retained earnings
c. Trade receivables
d. Bills receivables
70. A manufacturing company has grouped is main functions into marketing,
engineering, production and finance. What kind of organizational structure has
this company adopted?
a. Functional structure
b. Hybrid structure
c. Divisional structure
d. Matrix structure
71. ‘Company S’ wants to configure the hardware and software in its existing system
and also wishes to design the architecture for a new system. Whom should
‘Company S’ employ to carry out this task?
a. Data – entry operators
b. Data processing managers
c. Programmers
d. System analysts
72. Which of the following control principles suggest that managers should be
informed about a problem only when the data shown a significant deviation from
established standards?
a. Management by walking around
b. Management by objectives
c. Management by goals
d. Management by exception
73. In Vroom’s expectancy theory, what would be the valence of an individual who
has a strong desire individual who has a strong desire for the outcome and an
individual who wants to avoid the outcome ?
a. Negative : positive
b. Positive : positive
c. Positive : negative
d. Negative : negative
74. Which one of the following management function helps maintain managerial
effectiveness by establishing guidelines for future activities?
a. Organizing
b. Planning
c. Staffing
d. Leading
75. Which of the following occurs when a company that is headquatered in one
country builds or starts operations in a foreign country?
a. Partnerships
b. Direct investment
c. Joint venture
d. Strategic alliance
76. Which of the following is a distinctive business or collection of related business
that can be managed relatively independent of other business within the
organization?
A. Established market
b. Niche market
c. Target market
d. Potential market
77. Which of the following is a distinctive business or collection of related business
that can be managed related business that can be managed relatively independent
of other businesses within the organization ?
a. Functional unit
b. Departmental unit
c. Organizational unit
d. Strategic business unit.
78. Which of the following is not a mode of communication that helps managers
communicate effectively with subordinates
a. Fax
b. Teleconferencing
c. Photocopying
d. Internet
79. Which of the following is a mix of all the four approaches to formal appraisal?
a. Peer assessment
b. Superior’s rating of subordinates
c. 360 – degree appraisal
d. Subordinates rating of superiors
80. Which of the following is synonymous with need theories?
a. Supply theory
b. Process theory
c. Surplus theory
d. Content theory
81. Crosswise communication consists of which two types of information flows?
a. Upwards and downwards
b. Downwards and diagonal
c. Upwards and horizontal
d. Horizontal and diagonal
82. Which of the following is not a way to assess internal labor supply?
a. Skills inventories
b. Skills inventories
c. Succession planning
d. Marketing planning
83. Which of the following refers to the amount of inventory to be used during a
particular period of time as specified by a particular system?
a. Reorder stock
b. Safety stock
c. Stockout
d. Cycle stock
84. “The output – input ratio within a time frame with regard to quality” is known as_
a. Refreezing
b. Unfreezing
c. Moving
d. Freezing
85. Which one of the following is used by top management as a basis for developing
long-range plans?
a. Procedures
b. Rules
c. Vision
d. Both a and b
86. Which of the following is not a quality of power?
a. Ability ton do something
b. No formal position required
c. Right to do something
d. Is derived from multiple sources
87. According to the equity theory when do individuals leave the organization?
a. Low rewards – high inputs
 b. Low input – high rewards
c. Low input – low output
d. High input high output
88. Which of the following is not a feature of the American management style with
regard to decision making in organizations?
a. Short term orientation
b. Bottom up decision flow
c. Fast decision making
d. Individual decision making
89. Company A has cost advantage and product innovation skills ; wheres, Company
B has high debt. Which of the following would best describe the current positions
of the two companies?
a. Strength and opportunity
b. Strength and weakness
c. Strength and threat
d. Weakness and opportunity
90. Which of the following is not a leadership theory?
a. Trait theory
b. ERG theory
c. Contingency theory
d. Transactional theory
91. The general conclusion of the ‘Replay Assembly Test Room Experiments’ was
that employees would work better if the management were concerned about their
welfare and superiors paid special attention to them. This phenomenon was
subsequently labeled as the
a. Relay effect
b. Hawthorne effect
c. Behavioral effect
d. Human effect
92. Which of the following is an esteem need?
a. Basic pay
b. Safety regulations
c. Prestigious office location
d. Training
93. Which one of the following situations requires the use of standing plans?
a. Intermittent
b. Occasional
c. Recurring
d. Temporary
94. Which of the following is not a way to overcome the initial resistance to change
in organizations?
a. Education and communication
b. Group inertia
c. Participation and involvement
d. Negotiation and agreement
95. Julia and Meg working in GB Industries. Julia, a graduate earns $35,000,
whereas, Meg a post graduate earns $ 45,000. Julia feels equitably rewarded even
though he is earning $5000 less than Meg. Which theory of motivation explains
this process where individuals compare themselves with others in terms of input
and output?
 a. Expectancy theory
b. Two – factor theory
c. Equity theory
d. Path – goal theory
96. What role should a manager don when communicating with the outside world?
a. Disseminator
b. Spokesperson
c. Recipient
d. Liaison
97. Which of the following forms a basis for job description and job specification?
a. Job evaluation
b. Job analysis
c. Individual analysis
d. Positional analysis
98. Which of the following is/are the weakness(es) of MBO programs?
a. Takes too much time and effort
b. Necessitates the training of managers
c. Decreases paperwork
d. Both a and b
99. Which of the following refers to feeling arising stress
a. Poor-quality work
b. Behavioral
c. Burnout
d. Psychological
100. Which of the following perspectives opposes the concept of finding the one best
way for managing organizations
a. Universal
b. Behavioral
c. Scientific
d. Contingency
101. Which of the following decision making techniques involves the construction of a
model that represents a real or an existing system
a. Linear programming
b. Model analysis
c. Game theory
d. Simulation
102. Which of the following is an advantage of decentralization
a. Encourages decision-making
b. Easy to have uniform policy
c. Greater control
d. Decreases complexity of coordination
103. Which of the following types of plans defines the actions of major departments
and other sub-units that are necessary for successful execution of strategic plans
a. Tactical plan
b. Operational plan
c. Single plan
d. Long-term plan

104. Who among the following is regarded as the ‘father of motion study’
a. Lillian Gilbreth
 b. Charles Babbage
c. Henry Gantt
d. Frank Gilbreth
105. Which of the following procedures ensures the availability of accurate and
complete data for the organization
a. Data management
b. Security
c. Integrity
d. Data entry and validation
106. Which of the following describes a set of feelings or beliefs that individuals have
about certain ideas, situations or people
a. Attitude
b. Dogmatism
c. Self-esteem
d. Self-efficacy
107. Which type of departmentation is useful only at the lowest level of organizations
a. Departmentation by simple numbers
b. Departmentation by time
c. Departmentation by process or equipment
d. Departmentation by strategic numbers
108. Which managerial function gives attention to influencing and motivating
employees to improve performance and achieve corporate objective
a. Leading
b. Organizing
c. Staffing
d. Controlling

109. Which of the following does not explain the reluctance of managers to set goals
a. Fear of failure
b. Thorough knowledge of organizational policies
c. Lack of confidence
d. Lack of knowledge of organizational procedures
110. Which of the following helps individuals assess the worth of a job in comparison
to other jobs?
a. Job analysis
b. Job description
c. Job specification
d. Job evaluation
111. Which of the following represents the formulation and quantification of plans for
a particular period of time in the future?
a. Linear programming
b. Budgeting
c. Leveraging
d. Computing
112. Which of the following is/ are the tool (s) in the recruitment process under
staffing?
a. Job analysis
b. Job description
c. Job specification
d. All the above
113. McKnsey’s Which managerial approach considers organizations to be open
systems?
a. Cooperative social systems approach
b. Systems approach
c. 7 – S approach
d. Management science approach
114. Which of the following is not a major component of management information
systems (MIS)?
a. Data gathering
b. Information utilization
c. Risk analysis
d. Data transformation
115. Which of the following is a set of forces that leads individuals to behave in a
specific manner?
a. Attitude
b. Personality
c. Motivation
d. Affiliation
116. Which of the following process shows how an individual seeks information about
a certain issue and how he interprets that information ?
a. Dogmatism
b. Perception
c. Stereotyping
d. Cognitive dissonance

117. Which of the following refers to assumptions about the environment in which the
plan is to be carried out?
a. Planning environment
b. Planning premises
c. Planning boundaries
d. Decision premises
118. Which of the following refers to the conflict an individual experience among her /
his attitudes?
a. Dogmatism
b. Risk propensity
c. Locus of control
d. Cognitive dissonance
119. In which of the following stages of the change process is the new behavior pattern
locked in by means of supporting or reinforcing mechanism so that it becomes the
new norm?
a. Moving
b. Refreezing
c. Unfreezing
d. Freezing
120. Which of the following is not a factor to be considered when forecasting
manpower demand?
a. Expected organizational growth
b. Budgetary constraints
c. Existence of grapevine
d. Introduction of new technology
 121. Which of the following facilitates the conversion of data into digital images?
a. Groupware
b. Facsimile transmission
c. Graphics
d. Voice mail

122. Which one of the following assumption highlight the ‘intrinsic’ satisfaction that
an individual derives from the tasks and responsibilities related to his / her job ?
a. Social
b. Social – actualization
c. Complex
d. Rational – economic
123. According to Blake and Mouton’s managerial grid, which of the following
managerial styles is also known as ‘organization –man-management’?
a. Impoverished management
b. Middle – of-the-road management
c. Country club management
d. Team management
124. The plant manager of Crux Industries has established certain work schedule for
supervisors of the company. Which of the following powers was used by the
plant manager of Crux Industries in this case?
a. Downward referent power
b. Reward power
c. Downward legitimate power
d. Upward legitimate power
125. Employees of ‘Company S’ are complaining about uncomfortable working
conditions, poor supervision and job insecurity. According to Herzberg, these job
context factors lead to dissatisfaction of individuals. He termed these factors as
a. Motivators
b. Context
c. Esteem
d. Hygiene
126. Style garments, an apparel designer and manufacturer recently brought out some
new designs. It was able to convince customers that the product was unique in the
industry. Which of the following strategies did the company has adopted?
a. Focus
b. Overall cost leadership
c. Differentiation
d. Product leadership
127. Which of the following best describes a situation where the goals of the
organization and those of the employees do not match
a. Goal match
b. Goal incongruence
c. Goal congruence
d. Goal analysis
128. ‘Company A’ is an MNC headquartered in India. Ajay, an India who works as a
senior executive in the company, is familiar with the policies of the company.
Recently, the company transferred him to a foreign country and made him
manager of that particular foreign branch office. Which of the following sources
of managerial talent has been utilized by the company
a. Host country nationality
b. Home-country nationality
c. Third-country nationality
d. Foreign-country nationality
129. Which of the following studies gave importance to the “initiating structure” and
“consideration” dimensions of leadership
a. Iowa studies
b. Michigan studies
c. Ohio State studies
d. Likert’s four systems of management
130. In which of the following situations will recruitment of external manpower
become necessary for an organization
a. High demand-high supply
b. Low demand-high supply
c. High demand-low supply
d. Low demand –low supply
131. “Two heads are better than one” refers to which approach to decision-making
a. Decision support system approach
b. Group approach
c. Management information systems approach
d. Transaction support system approach
132. Which of the following describes an individual’s set of beliefs about his/her
capacity to complete a job
a. Locus of control
b. Dogmatism
c. Self-efficacy
d. Self-esteem
133. Which of the following is not a major type of structural alternative used for
departmentation
a. Functional
b. Divisional
c. Vertical
d. Matrix
134. In which role do managers try new methods to improve the functioning of a unit
or the whole organization
a. Disseminator
b. Leader
c. Entrepreneur
d. Liaison
135. Which of the following views proposes that people are unpredicatable, relative
(rather than absolute), subjective and unique in nature
a. Rational view
b. Self-actualizing view
c. Phenomenological view
d. Emotional view
136. Which of the following is not a type of control based on timing or stage in the
production process
a. Feed forward control
b. Feed back control
c. Cybernetic control
d. Concurrent control
137. Which of the following areas for strategic goals deals in finding sources of capital
supply and how capital will be utilized
a. Market standing
b. Innovation
c. Physical resources
d. Financial resources
138. Which of the following is not regarded as a source of funds when preparing the
cash flow statement
a. Sale of products
b. Accounts receivables
c. New shares issued
d. Research and development
139. Who divided the business operations of an organization into technical
commercial, managerial, financial
a. Max Weber
b. Hency L. Gant
c. Henri Fayol
d. Frank B. Gilbreth
140. Which of the following is a type of crosswise communication flow in
organizations?
a. Upward
b. Vertical
c. Diagonal
d. Downward
141. Which of the following involves the systematic assessment of the adherence of
employees to the ethical policies of the organization?
a. Ethics training
b. Ethics audit
c. Ethics hotline
d. Code of ethics
142. Which of the following is a computer – based information system that help
managers carryout their functions efficiently by gathering comprehensive data
and organizing and summarizing it in a form that provides valuable information to
managers?
a. Decision support system
b. Management information system
c. Executive support system
d. Office automation system
143. Which of the following is not an advantage of geographic division?
a. Places responsibility at a lower level
b. Improves coordination in a region
c. Places emphasis on local markets
d. High operational costs
144. At which point does the total revenue equals total cost and the profit is going to be
nil?
a. Break point
b. Break over point
c. Break – even point
d. Break – odd point
145. Which of the following is a preventive control?
a. Feed forward control
b. Concurrent control
c. Feedback control
d. Steering control
146. Which of the following is not a content theory?
a. Equity theory
b. Two- factor theory
c. Needs hierarchy theory
d. ERG theory
147. A superior officer evaluates the performance of his subordinates, in order to
decide who should be promoted. What type of power can the superior be said to
have in this case?
a. Referent
b. Coercive
c. Legitimate
d. Reward
148. Which of the following refers to the adoption of a specific geographic area and
providing cutting edge technology and equipment to the residents?
a. Global village
b. Digital village
c. Hitech village
d. Local village
149. What are the tasks that managers perform with regards to organizing?
a. Influencing people in the organization to achieve goals
b. Identifying future trends business
c. Comparing performance with standards
d. Allocating and arranging resources
150. Which of the following is likely to be an advantage of internal recruitment when
compared to recruiting from outside?
a. Availability of new ideas and new ways of thinking
b. Selection does not involve office politics
c. Access to a larger pool of candidates
d. Low recruitment costs
151. Which one of the following best describes a sequence of steps formed to achieve a
particular objective?
a. Programs
b. Policies
c. Procedures
d. Rules
152. Which approach to decision – making under conditions of uncertainty believes
that individual attitudes towards risk vary?
a. Risk analysis
b. Risk communication
 c. Decision trees
d. Utility theory.
153. Which of the following innovations is not likely to affect the physical appearance
or performance of products directly?
a. Radical innovation
b. Incremental innovation
c. Managerial innovation
d. Product innovation
154. Which of the following is a best practice for ensuring employee participation in
various activities at all levels of the organization?
a. Management by walking around
b. Management by goals
c. Management by objectives
d. Management by exception
155. Which of the following structures is a type of departmentalization that
superimposes a horizontal set of divisional reporting relationships on a
hierarchical functional structure?
a. Matrix
b. Hybrid
c. Divisional
d. Horizontal
156. Which of the following decision making techniques is used to estimate the
profitability of an investment ?
a. Marginal analysis
b. Financial analysis
c. Break – even analysis
d. Ratio analysis
157. Which of the following refers to the strength of person’s convictions?
a. Locus of control
b. Ego strength
c. Emotional strength
d. Locus of strength

158. Which of the following is the power to exercise discretion in decision making and
is derived by virtue of the positional in an organization?
a. Functional authority
b. Formal authority
c. Informal authority
d. Organizational authority
159. Which type of planning focuses on improving organizational effectiveness?
a. Operational
b. Divisional
c. Strategic
d. Tactical
160. Which of the following is not an output device?
a. Printers
b. Visual display monitors
c. Graphic plotters
d. Optical scanners
161. Which of the following identify problem area and increase the feasibility of
achieving goals?
a. Key result areas
b. Goals
c. Action plans
d. Procedures
162. Which of the following units in the task environment have the potential to control
an organization’s practices and policies?
a. Suppliers
b. Strategic allies
c. Regulators
d. Customers
163. Which management approach can be divided into the scientific management
school, bureaucratic school and administrative school?
a. Neo – Classical
b. Pre – Classical
c. Classical
d. Behavioral
164. Which of the following designations does not fall in the category of top level
management?
a. Chief executive officer
b. Executive director
c. President
d. Supervisor
165. Which of the following principles of management identified by Henri Fayol states
that promoting team spirit will give the organization a sense of unity ?
a. Equity
b. Espirit de corps
c. Discipline
d. Initiative
166. Which one of the following strategies focus on the best means of competing in a
particular market?
a. Business – level
b. Corporate – level
c. Functional – level
d. Organizational –level
167. Which of the following techniques is used in decision – making to figure out how
much extra output will result it one more variable is added?
a. Financial analysis
b. Ratio analysis
c. Break – even analysis
d. Marginal analysis
168. Which of the following is not one of the bases of power that managers rely on?
a. Coercive
b. Reward
c. Expert
d. Illegitimate
169. Which management approach involves forecasting inventory analysis, materials
requirement planning systems and networking models?
a. Classical approach
b. Quantitative approach
c. Modern approach
d. Preclassical approach
170. Which of the following is a decision making technique that helps in the evaluation
of available alternatives during the process of planning?
a. Statistical quality control methods
b. Inventory analysis
c. Operations research
d. Forecasting
171. Which of the following is not a disadvantage of the matrix structure of
organizations?
a. High administrative costs
b. Adaptable to changes in the environment
c. Excessive focus on internal relations
d. Over concentration on group decision making
172. Which of the following skills help managers visualize the most appropriate
response to a situation
a. Conceptual skills
b. Diagnostic skills
c. Decision-making skills
d. Technical skills

173. Which of the following is not a step in the organizational development process
a. Diagnosis
b. Interruption
c. Intervention
d. Evaluation
174. Which of the following is not a fixed asset?
a. Land
b. Building
c. Marketable securities
d. Machinery
175. Which management approach ignores the functions of management, namely,
planning organizing and controlling and instead pays attention to individual
psychology
a. Group behavior approach
b. Interpersonal behavior approach
c. Management science approach
d. Managerial roles approach
176. Which of the following does not represent the bargaining power of customers?
a. Making bulk purchases of products and services
b. Dominating a large part of the seller’s total sales
c. Difference in the features of products manufactured by various suppliers
d. No difference in the features of products manufactured by various
suppliers
177. Which of the following approaches is/are considered universal perspective
a. Classical
b. Quantitative
c. Behavioral
d. All the above

178. Which of the following managers are familiar with all the functional areas of
management
a. Operations managers
b. Human resource managers
c. Financial managers
d. General managers

179. Some software professionals who are working at company other than Microsoft
Corporation are influenced by and agree to the opinions of Bill Gates, because of
his brilliant ideas and charismatic personality. In such a case, what type of power
can Bill Gates be side to possess
a. Referent
b. Legitimate
c. Coercive
d. Reward
180. The SD-50 Company manufactures a single product, the SD-50 spray lubricant
and sells it only in South Asia. Which diversification strategy is SD-50 following
a. Related diversification
b. Unrelated diversification
c. Relative diversification
d. Single-product strategy
180. Company C is planning to introduce personal computers to ease the access to
information in the organization. In order to use the personal computers,
employees should learn certain packages. However, a group of managers who
dislike computers resisted this change. The employees in the information systems
department feel that this change will threaten their survival in the organization.
Which of the following best describes the resistance by group of managers and
resistance b7y employees in the information systems department?
a. Individual resistance; organizational resistance
b. Individual resistance; individual resistance
c. Organizational resistance; individual resistance
d. Organizational resistance organizational resistance
181. Which of the following methods encourages the involvement of employees in the
setting of objectives?
a. Management by walking around
b. Management by goals
c. Management by objectives
d. Management by exception
182. Which management approach is based on pure logic and expresses management
concepts as mathematical symbols
a. Contingency approach
b. Management science approach
c. Operational approach
 d. System approach
189. According to equity theory, which of the following conditions will encourage `
employees to work harder
a. When out put equals in put
b. When output is greater than in put
c. When out put is less than in put
d. When output is less than or equal to in put
190. Cool Infotech, a software development company, like to monitor the profits made
in the second quarter of 2003. Which of the following statements would help Cool
Infotech obtain a clear picture of profits earned during the period i.e. April-June
2003
a. Trial balance
b. Balance sheet
c. Income statement
d. Cash flow statement
200. In which of the following styles of management do managers trust employees and
involve them in decision-making and encourage upward communication
a. Exploitative-authoritative
b. Participative
c. Benevolent-authoritative
d. Consultative
201. Which of the following specifies the broad parameters within which organization
members are expected to operate in pursuit of organizational goal
a. Procedures
b. Rules
c. Policies
d. Regulations
202. ‘Company S’ recently developed a new software. It wants to restrict access to the
software to authorized individuals in the organization. Which of the following
procedures will help the company restrict access to the new software
a. Data management
b. Security and integrity
c. Data entry validation
d. Data uniformity
203. Who identified the three types of managerial roles, namely, interpersonal,
informational, and decision roles?
a. Peter F. Drucker
b. Henry Mintzberg
c. C. Max Weber
d. Henri Fayol
204. Which of the following theories developed by McGregor takes an optimistic,
dynamic, flexible and positive view of employees
a. Theory X
b. Theory Z
c. Theory Y
d. Theory A
205. Which of the following is not a model of performance appraisal
a. Comprehensive review
b. Progressive review
c. Static review
 d. Continuous monitoring
206. In addition to recruiting selecting training and placing what are the other activities
of staffing?
a. Promotion
b. Performance appraisal
c. Compensation
d. All the above
207. Which of the following does not pertain to skills inventory while assessing
internal labor supply?
a. Employee skills
b. Employee interests
c. Employee turnover
d. Employee performance
208. Which of the following is an inventory control method developed to minimize
ordering and holding costs?
a. Economic order quantity
b. Minimum order quantity
c. Constant order quantity
d. Maximum order quantity
209. Which of the following is a one-time plan created in response to non-programmed
decision
a. Standing
b. Single-use
c. Long-term
d. Tactical
210. Which of the following does not come under the Quantitative Approach to
Management theory
a. Management Science
b. Operations Management
c. Management Information System
d. The Systems theory
211. Which of the following decision making techniques is used to calculate the
payback period
a. Financial analysis
b. Marginal analysis
c. Ratio analysis
d. Break-even analysis
212. Which of the following is not a process theory
a. Expectancy theory
b. Two-factor theory
c. Equity theory
d. Inequity theory
213. Which of the following was defined by Bowen ‘as a commitment to the
systematic assessment and reporting of some meaningful, definable domain of a
company’s activities that have a social impact”
a. Social ethics
b. Ethics audit
c. Social audits
d. Code of ethics
214. Which of the following is a written document describing the minimum acceptable
qualifications required of a person who fills a particular job
a. Job analysis
b. Job specification
c. Job description
d. Job evaluation

215. Strategy implementation involves carrying out strategic plans and

a. Maintaining quality control
b. Maintaining strategic control
c. Maintaining inventory control
d. Maintaining production control
216. At which stage of the MBO process should an organization consider changes in
the external environment to develop effective short – term as well as long – term
plans?
a. Objective setting
b. Implementation
c. Control
d. Appraisal
217. Which of the following is considered synonymous used with “downsizing”?
a. Rebuilding
b. Recreating
c. Reestablishing
d. Restructuring
218. Which one of the following types of leader motivates subordinates to perform at
expected levels?
a. Autocratic leader
b. Transactional leader
c. Democratic leader
d. Transformational leader
219. Which of the following techniques for enhancing creativity involves a complex
set of interactions from which a solution emerges?
a. Brainstorming
b. Synectics
c. Simulation
d. Linear programming
220. Which of the following does not come under the McKinsey’s 7-s approach?
a. Strategy
b. Style
c. Situations
d. Skills
221. Which one of the following types of control techniques is concerned with the are
a part of the transformation process to ensure that they conform to organizational
standards?
a. Feed forward
b. Concurrent
c. Standard
d. Operational
223. Which of the following is not one of Fayol’s principles of management?
a. Division of work
 b. Remuneration
c. Equity
d. Well – defined hierarchy
224. Which of the following is a formalized, long-range planning process used to
define and achieve organizational goals?
a. Strategic
b. Operational
c. Tactical
d. Divisional
225. Which of the following is not a profitability ratio?
a. Gross profit margin
b. Net margin
c. Return on investment
d. Tangible net worth
226. In the organizational development process, which of the following intervention
techniques aims at helping work groups become effective at task
accomplishment?
a. Process consultation
b. Team building
c. Third – party intervention
d. Skill development
227. What skills do middle-level managers require to move up the corporate ladder?
a. Only conceptual and technical skills
b. Only technical skills
c. Conceptual, design and human skills
d. Only human skills
228. Which of the following is a written statement describing the objectives of a job?
a. Job specification
b. Job analysis
c. Job statement
d. Job description
229. Which of the following types of plan is formulated to achieve strategic goals?
a. Job specification
b. Job analysis
c. Job statement
d. Job description
230. Which of the following systems consists of sets of interacting elements operating
without any exchange with the environment in which it exists?
a. Flexible
b. Open
c. Closed
d. Standard
231. Which of the following is not an advantage of group – aided decision making and
problem solving ?
a. Greater pool of knowledge
b. Different perspectives
c. Groupthink
d. Increased acceptance
232. Which of the following is not tested through intelligence tests?
a. Emotional stability
b. Comprehension
c. Reasoning ability
d. Mental Alertness
233. Which of the following approaches is neither immoral nor moral and simply
ignores ethical considerations?
a. Moral management
b. Amoral management
c. Immoral management
d. Both a and c
234. In which of the following forms of control is the source of an unsatisfactory
outcome traced back to the individuals responsible for it so that they can be made
to correct their work practices?
a. Preventive
b. Direct
c. Strategic
d. Indirect
235. Which of the following is not a source of individual resistance to change?
a. Security
b. Economic factors
c. Structural inertia
d. Selective information processing
236. Which of the following skills refers to the ability, both individually and in a
group?
a. Conceptual
b. Human
c. Design
d. Technical
237. Which of the following costs does not increase when the inventory level
increases?
a. Cost of capital
b. Storage space
c. Ordering costs
d. Obsolescence
238. According to the utility theory, which of the following best describes a person
who is willing to take greater risks than others?
a. Risk averters
b. Gamblers
c. Risk evaders
d. None of the above
239. In the Pre- classical era who gave attention to the welfare of workers?
a. Charles Babbage
b. Andrew Ure
c. Robert Owen
d. Henry R. Towne
240. Which of the following management approaches focuses on the need to adjust
managerial systems to suit the specific circumstances of the situation confronting
the organization?
a. Contingency
b. Empirical or case approach
c. Systems approach
d. Mc Kinsey’s 7 – s frame work

241. A ticket collector ‘T’ find a person for traveling without ticker a t a metropolitan
railway station. What kind of ‘power’ was the ticket collector exercising
a. Coercive
b. Referent
c. Legitimate
d. Expert
242. According to Vroom’s expectancy theory, which of the following refers to the
probability that successful performance will lead to certain outcomes
a. Motivation
b. Valence
c. Expectancy
d. Instrumentality
243. There has been a fall in Company A’s operational efficiency. Which one of the
following would help ‘Company A’ identify the particular area in which
productivity needs to be improved
a. Total productivity
b. Partial productivity
c. Sum productivity
d. Cumulative productivity
244. According to Blake and Mouton, leadership style 9,1 which reverses the emphasis
of style 1,9 is called
a. Impoverished management
b. Authority-compliance management
c. Country club management
d. Team management
245. Which of the following situations represents a degree of saturation regarding
manpower in the organization and calls for organization planning
a. High demand-low supply
b. Low demand-low supply
c. High demand-high supply
d. Low demand-high supply
246. Company C adopted a performance appraisal approach that includes assessment
of individuals’ performance by his/her superior(s), subordinates and peers. Which
of the following approaches is Company C following?
a. 90-degree appraisal
b. 180-degree appraisal
c. 270-degree appraisal
d. 360-degree appraisal
247. Which of the following is not required for a differentiation strategy
Creative flair
Fill in the blanks

1. ‘Company S’, a multi national corporation (MNC) in the FMCG industry, has
customized its operations for each and every foreign market it serves. This
management approach is popularly known as the ------------------
yyy. Ethnocentric approach
zzz. Regiocentric approach
aaaa. Polycentric approach
bbbb. Geocentric approach
2. According to the BCG matrix, a ‘question mark’ requires ----------- to become a
‘star’
cccc. Cash outflows
dddd. Cash inflows
eeee. Divestment
ffff. Profit distribution
3. ---------- are staff specialists, who hold influential positions in the bureaucracy and
specialize in economic planning
gggg. Democrats
hhhh. Technocrats
iiii. Autocrats
jjjj. Both a and c
4. I the control process, a/an -------------- is know as the permissible deviation from
the standard
kkkk. Cover
llll. Cushion
mmmm. Amplifier
nnnn. Animator
5. A ------- is a large-scale single-use plan which coordinates a complex set of
activities for achieving a major nonrecurring goal.
oooo. Program
pppp. Project
qqqq. Budget
rrrr. Policy
6. --------------- facilitates control, communication and coordination in organizations.
ssss. Deceleration
tttt. Departmentation
uuuu. Disntegration
vvvv. Decentralization
7. The modern multinational corporation has a --------- approach
wwww. Polycentric approach
xxxx. Ethnocentric approach
yyyy. Geocentric approach
zzzz. Regiocentric approach
8 Individual differences among human being are rooted in differences in their--------
make up.
aaaaa. Penological
bbbbb. Pathological
ccccc. Physiological
ddddd. Psychological
 9. According to the Kurt Lewin, the first step to overcome resistance to organizational
change is to unfrreze the status quo. The status quo can be regarded as a
________________
eeeee. State of quilibrium
fffff. State of instability
ggggg. State of dis- equilibrium
hhhhh. State of disparity
10. According to mintzberg __________ are interpersonal roles.
iiiii. Figurehead, recipient liaison
jjjjj. Leader, liaison, spokesperson
kkkkk. Geocentric approach
lllll. Regiocentric approach
11. If MIS (management information system) is designed with the primary
objective of managerial decision support, then it is known as a/an___
mmmmm. Expert system
nnnnn. Transaction support system
ooooo. Decision support system
ppppp. None of the above
12. Critical – incident statements can also be called__________
qqqqq. Arrows
rrrrr. Anchors
sssss. Bullets
ttttt. Numbers

13. Shareholder’s equity is represented on the balance sheet by stock and ________
uuuuu. Retained earning
vvvvv. Trade receivables
wwwww. Fixed assets
xxxxx. Short – term investments
14. Managers with an internal __________are likely to take responsibility for the
consequences of their actions.
a. Ego strength
b. Locus of strength
c. Emotional strength
d. Locus of control
15. The situation theory is also known as __________
yyyyy. Trait theory
zzzzz. Locus of strength
aaaaaa. Emotional strength
bbbbbb. Locus of control
16. The situational theory is also known as _________
cccccc. Trait theory
dddddd. Transactional theory
eeeeee. Contingency theory
ffffff. Behavioral theory
 17. The tendency of a system to break down or degrade, become disorganized, or
disintegrate is known as_________
gggggg. Entropy
hhhhhh. Extropy
iiiiii. Autonomy
jjjjjj. Distropy
18. In Japan informal organizations are referred to as _________
a. Shushin koyo
b. Henko
c. Ringi system
d. Habatsu
19. Alex F. Osborn developed the _________ techniques for facilitating creativity.
a. Brainstorming
b. Synectics
c. Linear programming
d. Simulation
20. ________ is a comprehensive managerial system that integrates many key manner
and is consciously directed towards the effective and efficient achievement of
organizational and individual objectives.
a. Management by objectives
b. Management of goals
c. Management by exception
d. Organization by objectives
20. MBO techniques work successfully when managers consider the assumption of
_____ and the actions of employees are consistent with these assumptions.
a. Theory W
b. Theory X
c. Theory Y
d. Theory Z
21. According to Renis Likert, the _____ management style represents dictatorial
leadership behavior
a. Benevolent – authoritative
b. Consultative leadership
c. Exploitive – authoritative
d. Participative leadership
22. The objective of refreezing is to ------- the new situation by balancing the new
driving and restraining forces.
a. Stabilize
b. Unstabilize
c. Unequalize
d. Disarrange
23. ----------- tried to analyze the increase in the number of interactions and
relationships by increasing the number of subordinates under a particular
manager.
a. Robert Kreitner
b. Goerge Homans
c. V.A. Graicunas
d. David C. Martin
24. Organizational culture is an aspect of the --------- environment of an organization
a. General
b. Task
c. Internal
d. External
25. Holding cost is synonymous with ----------
a. Ordering cost
b. Item cost
c. Carrying cost
d. Stock out cost
26. A--------------- is a computer-based information system that records and
transactions required to conduct an organization’s business.
a. Office automation system
b. Transaction processing system
c. Decision support system
d. Management information system
27. ------------------------------- Control focuses on assessing the implementation of
tactical plans at department levels, monitoring associated results, and taking
corrective action when necessary
a. Tactical
b. Operational
c. Strategic
d. Functional

28. ----------------------- refers to the rigidity of a person’s beliefs and his openness to
other viewpoints
a. Locus of control
b. Attitude
c. Self-efficacy
d. Dogmatism
29. A/an ---------- is a feed forward control system
a. Financial control system
b. Inventory control system
c. Quality control system
d. Budgetary control system
30. A pant manager discovered that employee turnover in the plant over the last year
has increased by five percent. In order to reduce the employee turnover, the plant
manager considered the following options: increasing benefits, increase wages or
changing hiring standards. In this case, the plant manager is in the ----------- stage
of the decision-making process.
a. ‘Recognizing the problem’
b. ‘Identifying alternatives’
c. ‘Evaluating alternatives’
d. ‘Implementing the chosen alternative’
31. The ___model of decision making was developed by Herber Simon.
a. Garbage – can
b. Incremental
c. Satisficing
d. Rational
32. A plant manager has discovered that employee that employee turnover in the plant
over the last quarter has increased by five percent. The manager can be said to be
in the _______ stage of the rational decision making process.
a. Recognizing and defining the problem
b. ‘Identifying alternative’
c. ‘Valuating alternatives’
d. ‘mplementing the chosen alternative’
33. _________ is known as “quantitative common sense”
a. Operations research
b. Operations management
c. Efficient operations
d. Operations planning
34. In _________ existing products or technologies in an industry are replaced by
new products or technologies.
a. Technical innovation
b. Product innovation
c. Process innovation
d. Radical innovation
35. An MBO process may not be successful if implemented by _____ managers and
subordinates.
a. Theory Z
b. Theory W
c. Theory X
d. Theory Y
36. According to Liker’s system of management, __________ represents “dictatorial
leadership” behavior.
a. System 1 management
b. System 2 management
c. System 3 management
d. System 4 management
37. ‘Shushin koyo’, a Japanese management practice is also known as ________
a. Continuous training
b. Lifetime employment
c. Decision – making
d. Seniority system
38. A/an ________ is a vital tool for providing information about organizational
relationships.
a. Organizational chart
b. Functional chart
c. Organizational model
d. Functional model
39. Managers with a high ________are consistent in their moral judgements and
moral actions.
a. Peer assessment
b. Superior’s rating of subordinates
c. 360 – degree appraisal
d. Subordinates rating of superiors
40. The ____approach to decision – making holds that managers behave randomy
while making non-programmed decisions. Garbage-can
a. Garbage-can
b. Rational
c. Satisficing
d. Increamental
41. The establishment of a distinct area, unit or subsystem of an organization over
which a manager has authority for the performance of specialized activities and
results is termed ___________
a. Efficiency
b. Effectiveness
c. Productivity
d. All the above
42. In the ______ stage in the change process, the new behavious pattern locked into
place by means of supporting or reinforcing mechanisms, so that it becomes the
new norm.
a. Refreezing
b. Unfreezing
c. Moving
d. Freezing
43. Usually, short –term creditors want to be informed of the ____of an organization.
a. Inventory turnover ratio
b. Current ratio
c. Leverage ratio
d. Gross profit margin
44. Concurrent controls are not referred to as _________
a. Steering control
b. Screening control
c. Preliminary control
d. Yes – no control
45. Robert Owen, Charles Babbage, Henry R. Lowne, Andrew Ure and Charles
Duplin contributed to the _____ school of management thought
a. Classical
b. Behavioral
c. Neo – classical
d. Pre – classical
46. Brainstorming and synectics techniques encourage individuals to think _______
a. Optimistically
b. Pessimistically
c. Intuitively
d. Emotionally
47. ________ Is a quantitative technique used to arrive at a decision concerning the
allocation of scarce or limited resources for achieving a particular objective
a. Linear programming
b. Queuing or waiting – line method
c. Decision tree
d. Game theory
48. Open systems uses _______ to identify deviation from objectives.
a. Feed forward mechanism
b. Feedback mechanisms
c. Information mechanism
d. System mechanisms
49. ________ are also known as leverage rations.
a. Liquidity ratios
b. Asset management ratios
c. Debt management ratios
d. Profitability rations
50. According to some experts, knowledge work systems are advanced versions of __
a. Decision support systems
b. Office automation systems
c. Executive support systems
d. Transaction processing system
51. In ______ the opinions of experts are collected to arrive at a consensus.
a. Interacting groups
b. Nominal groups
c. Delphi groups
d. Formal groups
52. A/.an ____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 it to achieve its
predefined goals and objectives.
a. Enterprise self- audit
b. Social audit
c. Control audit
d. Management audit
53. Through _____both the management and the union arrive at an agreement that is
satisfactory to both parties
a. Grievance procedures
b. Collective bargaining
c. Individual bargaining
d. Management bargaining
54. Geographic division is also known as ______
a. Torrential
b. Tonsorial
c. Terrestrial
d. Territorial
55. Work specialization improves the efficiency of operations. This principal of
management identifies by Henri Fayol, is termed _______
a. Division of work
b. Stability
c. Espirit de corps
d. Discipline
56. System 1 management as proposed by Likert, is also known as the _______
a. Exploitative-authoritative style
b. Authoritative-delegative style
c. Exploitative-delegative style
d. Exploitative-democratic style
57. According to the principle of _______ the same result can be reached by different
means.
a. Differentiation
b. Equifinality
c. Entropy
d. Homeostasis
58. In the creative process_____ links the unconscious mind with the conscious mind
a. Insight
b. Intuition
c. Logical formulation
d. Unconscious scanning
59. When a strength is unique and cannot be easily imitated by competitors, it is
know as _______
a. Universal
b. Behavioral
c. Scientific
d. Contingency
60. _______ amoral managers exclude ethical issues from their decisions and actions
as they think that general ethical standards are not appropriate for conducting
business.
a. Intentional
b. Unintentional
c. General
d. Formal
61. In negotiation and agreement, management offers something of value in
exchange for cooperation thereby________ potential or actual resistance from
employees.
a. Neutralizing
b. Increasing
c. Decreasing
d. Aggravating
62. The control function helps managers identify_____ errors and thus helps
organization avoid excessive costs.
a. Operational errors
b. Planning errors
c. Accounting errors
d. Errors in objectives
63. The ratio of net income to total organizational assets is known as _____
a. Tangible worth
b. Return on investment
c. Net profit margin
d. Gross profit margin
64. __________ refers to the price of an inventory item.
a. Ordering cost
b. Item cost
c. Carrying cost
d. Stock-out cost
65. The ______ method can be used by a organization to change the working
relationships between subordinates and superiors from confrontational to
cooperative.
a. Team building
b. Third-party peacemaking
c. Diagnostic activities
d. Process consultation
66. The High profits that a cash cow generates can be used to support______
a. Question marks and stars
b. Dogs and stars
c. Dogs and questions marks
d. Dogs
67. A/an _______ is a person who focuses on innovation and creativity and who
transforms a dream or an ides into a profitable venture by operating within
organization environment
a. Entrepreneur
b. Intrapreneur
c. Innovator
d. Manager
68. Problems in the organizational structure and the political environment are defined
as _________ constraints
a. Internal – internal
b. External-internal
c. Internal-external
d. External-external
69. Top-management at ‘Company A’ assumed that work practices in the home
country will also work abroad. This kind of approach is known as the _____
a. Ethnocentric approach
b. Regiocentric approach
c. Polycentric approach
d. Geocentric approach
70. In _______ there will be face-to-face discussions, formal group presentations
special reports and publications to clear up misunderstandings among employees.
a. Participation and involvement
b. Education and communication
c. Facilitation and support
d. Negotiation and agreement
71. The ______ refers to the delivery by one individual to another of the right to act,
to make decisions, to requisition resources and to perform other tasks in order to
fulfill job responsibilities.
a. Centralization of power
b. Delegation of authority
c. Centralization of authority
d. Delegation of responsibility
72. ______ are related to the balance sheet instead of the income statement.
a. Capital standards
b. Revenue standards
c. Program standards
d. Cost standards
73. The various interest groups that influence a firm’s functioning and get affected by
the firm’s decisions are known as ___________
a. Social stakeholders
b. Social – makers
c. Social professionals
d. Social administrators
74. A firm using a _____ strategy tries to specialize within a very narrow segment of
the market by establishing a position of overall cost leadership differentiation, or
both.
a. Specific
b. Focus
c. Directive
d. Differentiation
75. __________ innovations lead to changes in the physical processes through which
in the product or service passes.
a. Technical
b. Radical
c. Incremental
d. Managerial
76. ____________ managers bring in new work practices and help the organization
sail smoothly through changes.
a. Top – level
b. Middle – level
c. First – level
d. Supervisory – level
77. When construction a mathematical model in operations research methodology,
both controllable and uncontrollable variable are manipulated to variables are
manipulated to achieve the effectiveness of the system in the ____-model.
a. Decision model
b. Simulation model
c. Quantitative model
d. Qualitative model
78. A SWOT analysis does not consider an organization’s____________
a. Internal strengths
b. External opportunities
c. Internal weaknesses
d. External task environment
79. “Company JSK” is a multinational firm in the power generation, transmission and
distribution sectors. The three sectors are regarded as three different units in the
organization. For the financial year ending 2002, the transmission unit generated
the most profits and made the largest contribution to the overall profits of the
organization JSK’s transmission division can be categorized as a _______
a. Discretionary expense center
b. Investment sector
c. Profit center
d. Standard cost center
80. Company S’s inventory is stored in a warehouse. The company has incurred
expenses like rent for the storage space, insurance, breakage, etc. These expenses
are referred to as ______
a. Item cost
b. Holding costs
c. Stock out cost
d. Ordering cost
81. A system analyst in ‘Company A’ is giving specifications to his team of
___________regarding the development of new software.
a. Data processing managers
b. Data-entry operators
c. Programmers
d. End users
82. McGregor’s ________ takes a pessimistic static and rigid view of human nature.
a. Theory W
b. Theory X
c. Theory Y
d. Theory Z
83. A _______ outlines the expected results of a given future period in numerical
terms.
a. Program
b. Budget
c. Policy
d. Procedure
84. OD relies on the use of______ which are change strategies developed and
initiated with the help of a change agent.
a. Interventions
b. Information
c. Plans
d. Policies
85. Management techniques are used at the _______ level of the organization
a. Top-level
b. Middle-level
c. First-level
d. All the above
86. According to Herzberg and his associates, ______are job content factors which
lead to job satisfaction
a. Motivators
b. Hygiene factors
c. Context factors
d. Physiological factors
87. ___________ is the earliest management thinkers to use this term ‘ Management
by Objectives”.
a. Peter F. Drucker
b. Frederick Taylor
c. Henri Fayol
d. Henry Mintzberg
88. __________ bring about changes in the way products or services are
manufactured.
a. Product innovation
b. Radical innovation
c. Incremental innovation
d. Process innovation
89. A chart the contains information about major managerial positions present
incumbents, potential replacements for each position and the age of each person
on the chart is know as ________ chart.
a. Manager inventory
b. Raw material inventory
c. Control and coordination
d. Skills inventory
90. ______________ contain sets of specific behaviors that represent gradations of
performance used as common reference points (or anchors) for rating employees
on various job dimensions
a. Behaviorally anchored rating scales
b. Graphic rating scales
c. Behavior rating scales
d. Behavior scales
91. An exhaustive appraisal of the important positive and negative attributes of each
major functional area of a business is called_______
a. A Functional audit
b. A SWOT analysis
c. A Mission analysis
d. An Organizational audit
92. The _________ concept stresses the need for flexibility and adaptability in the
organizational structure, and the interdependence of the system and tis external
environment.
a. Open-system
b. Closed-system
c. Stable-system
d. Flexible-system
93. According to ________ organizations must go through a three step change
process (unfreeze, move. Refreeze) to achieve acceptance of change.
a. Elton mayo
b. Frederick W. Taylor
c. Kurt Lewin
d. Max Weber
94. Leadership style 1.9 in Balke and Mouton’s managerial grid represents the
________ style.
a. Impoverished management
b. Country club management
c. Team management
d. Organization man management
95. The efficient use of resources relative to outcomes is known as __________
a. Innovation
b. Financial resources
c. Physical resources
d. Productivity
96. ___________ is also known as staffing.
a. Resource management
b. Human management
c. Human resource management
d. Human resource development
97. The principle of ________- control is based on the belief that most of the negative
deviations from standards can be overcome by applying the fundamentals of
management .
a. Successive
b. Directive
c. Preventive
d. Indirect
98. The ___________ relates to decision – making by consensus.
a. Shushin koyo
b. Henko
c. Ringi system
d. Kacho
99. __________ provide direction for the activities of an organization
a. Resources
b. Goals
c. Information
d. Manpower
100. The clearer the line of authority from the apex management position in an
organization to every subordinate position, the clearer will be the responsibility
for decision making and the more effective will be the organizational
communication. This is known as the ________ principle.
a. Molar
b. Scalar
c. Lunar
d. Secular
101. When employees deliberately work at a slower pace they are said to be _______
a. Shouldering
b. Soldiering
c. Sundering
d. Slandering
102. A ___________ strategy aims at achieving reduction in cost.
a. Cost leadership
b. Market leadership
c. Focus
d. Differentiation
103. Just – in time is also known as “stockless production” and “______”.
a. Finished goods inventory
b. Zero inventory
c. Raw – material inventory
d. Work – in progress inventory
104. A human resource department in a software company is regarded as a/an______
a. Profit center
b. Cost center
c. Revenue center
d. Investment center
105. A/ an _________ organization is a network of personal and social relations not
established or required by the formal organization and arising spontaneously as
people associate with one another.
a. Informal
b. Formal
c. Party formal
d. Strategic
106. Avoidance, problem solving, structural change, etc. are ways of __________.
a. Managing by objectives
b. Managing organizational conflict
c. Managing organizational change
d. Managing organizational culture
107. Categorizing individuals on the basis of a single attribute is known as_________
a. Attribution
b. Dogmatism
c. Cognitive dissonance
d. Stereotyping
108. In the ________- strategy of overcoming resistance to change, information about
a change is presented selectively so that it appears more attractively or necessary
to potential resisters.
a. Manipulation
b. Co – optation
c. Coercion
d. Negotiation
109. Feedforward control is not known as _________
a. Pre control
b. Preliminary control
c. Preaction control
d. Reaction control
110. The ________ of an organization provides guidelines for its policies and
practices.
a. Corporate culture
b. Corporate philosophy
c. Corporate rules
d. Corporate program
111. A __________ organization structure has a wide span of control and only a few
hierarchical levels.
a. Flat
b. Narrow
c. Tall
d. Wide
112. The ___________ dimension of an organization’s environment consists of factors
like inflation, unemployment and interest rates.
a. Political
b. Legal
c. Economic
d. Technological
113. A __________ is designed to enhance the decision – making capability of
managers.
a. Management information system
b. Executive support system
c. Decision support system
d. Office automation system
114. _________ decisions usually involve a lot of uncertainty.
a. Programmed
b. Non programmed
c. Tactical
d. Operational

115. In the BCG matrix, dogs have ___________ market share in a ______ market.
a. Low : high growth
b. Low : low growth
c. High; low growth
d. Low; stable
116. It is often difficult to measure the productivity of a ______
a. Technical
b. Manufacturing
c. Knowledge
d. Industrial
117. According to Porter’s five competitive force model, the ease with which new
competitors can enter the market is referred as _____
a. The bargaining power of customers
b. The bargaining power of suppliers
c. The threat of new entrants
d. The threat of substitute products or services
118. _________ decision involve simple, common, frequently occurring problems that
have well established and understood solutions
a. Non-programmed
b. Programmed
c. Tactical
d. Strategic
119. The grapevine is a/an ______ communication channel.
a. Informal
b. Formal
c. Stable
d. Organization
120. The process of comparing an individual’s job performance against standards or
objectives developed for the individual’s position is termed as _______
a. Evaluation
b. Job appraisal
c. Skills appraisal
d. Performance appraisal
121. _________ involves the identification of potential candidates for filling specific
managerial positions.
a. Succession planning
b. Replacement planning
c. Resources planning
 d. Requirements planning
122. According to Likert, _______ are characterized by low output
a. System 1 and System 2
b. System 2 and System 3
c. System 3 and System2
d. System 3 and System 4
123. The _______ describes a situation where an employee’s position has be filled
when he/she is promoted to next higher position
a. Ripple effect
b. Ripple effect
c. Supply effect
d. Shortage effect
124. _______ refers to the Japanese practice of providing privileges to older
employees who have been with the company for a long time
a. Shushin koyo
b. Henko
c. Kaisha
d. Ringi system
125. A _______ approach involves a graphic representation of alternative courses of
action and the possible outcomes and risks associated with each action
a. Utility theory
b. Decision trees
c. Risk analysis
d. Financial analysis
126. Management by walking around is also known as ______
a. Management by wandering around
b. Management by wondering around
c. Management by objectives
d. Management by exception
127. Technosructural activities seek to improve work technology and/or ______
a. Organizational culture
b. Organizational structure
c. Organizational profits
d. Organizational compensation policy
128. A firm using a ________ strategy tries to offer products and services that are
considered unique in the industry.
a. market leadership
b. Focus
c. Differentiation
d. Cost leadership
129. The structural methods used for promoting innovation help organizations
implement _________ and achieve goal
a. Procedures
b. Policies
c. Strategies
d. Rules
130. Divisions which handle key business within multi-product companies and which
have specific resources, objective and competitions are known________
a. Strategic functional units
b. Strategic business units
 c. Strategic planning units
d. Key business units
131. __________ advocated the use of MBO as a performance planning and appraisal
system.
a. Douglas McGregor
b. Peter Drucker
c. William Ochi
d. Elton Mayo
132. __________ is also know as an organization’s net worth.
a. Shareholders’ equity
b. Total assets
c. Long-term liabilities
d. Profit before taxes
133. Process theories of motivation are also known as ______
a. Cognitive theories
b. Content theories
c. Need theories
d. Static theories
134. According to the ________,a person’s behavior is influenced by the environment.
a. Behaviorist view
b. Emotional view
c. Economic view
d. Self-actualizing view
135. ________ is a systematic and sophisticated decision-making technique that
enables competitors to select rational strategies for the attainment of goals.
a. Linear programming
b. Game theory
c. Simulation
d. Decision tree
136. An employee who reports real or perceived misconduct to an external agency is
know as a _______
a. Whistle-blower
b. Whistle-bowler
c. Whistle-grower
d. Whistle-mower
137. Democratic leadership is also know as ________leadership
a. Autocratic
b. Participative
c. Bureaucratic
d. Laissez-faire
138. According to McClelland, ______ thrive on pursuing and attaining goals.
a. Power-motivated people
b. Achievement-motivated people
c. Affiliation-motivated people
d. Need-motivated people
139. Information about cities, roads, malls in the cities, and land occupied by lakes can
be obtained through maps generated by a_______
a. Decision support system
b. Transaction processing system
c. Geographic information system
 d. Management information system
140. The functional departments of a hybrid structure have greater staff authority
which originates from the top level of the organization. Therefore, functional
departments in a hybrid structure are also referred to as ______ departments.
a. Top-level
b. Operational
c. Corporate
d. Matrix
141. When plotted on a BCG matrix, business units are plotted according to the growth
rate of the industry they are operating in and according to their________
a. Volume of units produced
b. Volume of sales
c. Organization growth rate
d. Relative market share
142. ________ refers to the process through which employees adapt to an
organization’s culture.
a. Workforce socialization
b. Socialization
c. Organizational socialization
d. Personnel socialization
143. In ________ organization, lower-level employees participate in the decision-
making process
a. Decentralized
b. Centralized
c. Party centralized
d. Partly unified
144. __________communication originates from subordinates and travels up the
organizational hierarchy to superiors.
a. Upward
b. Downward
c. Diagonal
d. Horizontal
145. Concurrent control is also known as ______
a. Steering control
b. Steeling control
c. Primary control
d. Steaming control
146. _________ information refers to the information that originates within an
organization
a. Internal
b. External
c. Environmental
d. Political
147. In ______ a leader or an influential person among the potential resisters is given a
seemingly desirable role in the change process in order to gain his/her cooperation
a. Coercion
b. Facilitation
c. Cooptation
d. Participation
148. The __________ theory indicates that effective leadership is dependent on clearly
defining for subordinates the paths to goal attainment, and the degree the chances
that subordinates will achieve
a. Transformational
b. Path-goal
c. Hersey and Blanchard’s
d. Transformational leadership
149. Managers who are _________ belong to a country other than the home country or
the host country.
a. Home-country nationals
b. Host country nationals
c. Third country nationals
d. Domestic – country nationals
150. ________ is known as “the father of scientific management”?
a. Henri Fayol
b. Henry Mintzberg
c. Frederick Taylor
d. Max Weber
151. In the _________ , managers consider the impact of changes in the external
environment on the firm and on every aspect of planning.
a. Open systems approach
b. Management information system
c. Closed systems approach
d. Grass- root budgeting
152. According to the functional viewpoint, ________ functions are accomplishment
of organizational objectives.
a. Line
b. Staff
c. Line and staff
d. Both a and b
153. To develop queuing models, advanced mathematical and ________knowledge is
necessary.
a. Illogical
b. Financial
c. Statistical
d. Synthetical
154. According to the ______of decision-making, limitations of information gathering
and information – processing make it difficult for managers to make optimal
decisions
a. Rational model
b. Satisficing model
c. Incremental model
d. Non – rational model
155. _________ are monetary measurements common at the operational level.
a. Cost standards
b. Revenue standards
c. Capital standards
d. Program standards.
156. The _________ refers to the desire to maintain a warm, friendly relationship with
others.
a. Need for achievement
b. Need for power
c. Need for motivation
d. Need for affiliation
157. A ________ is a type of departmentation in which positions are grouped
according to their main functional (or specialized) areas.
a. Matrix structure
b. Divisional structure
c. Functional structure
d. Hybrid structure.
158. According to the ________ approach to inventory control, materials should arrive
just as they are needed in the production process.
a. Real time
b. Just- in – time
c. On time
d. Materials
159. A computer –based information system which increases the efficiency and
productivity of managers and office workers through document and message
processing is known as a/an ______
a. Decision support system
b. Management information system
c. Office automation system
d. Transaction processing system
160. The BCG matrix examines the two variables to assess the performance of a firm’s
businesses: the growth rate of the industry and _________
a. The relative market share
b. Resources required
c. Return on assets
d. Break – even point
161. Frederick W. Taylor’s approach to management led to the development of ______
a. Time – study and motion – study
b. Time study and work study
c. Time and motion study and the piece rate incentive system
d. Work study and Piece rate incentive system
162. ______ aims at regulating organizational activities so that actual performance
conforms to expected organizational standards and goals.
a. Leading
b. Controlling
c. Organizing
d. Planning
163. ______ are responsible for directing the overall use of a system.
a. Data – entry operators
b. Data- processing managers
c. Programmers
d. End users
164. Tasks in a flat organizational structure are highly ________
a. Independent
b. Inter-related
c. Isolated
d. Restricted
165. Managers use _____ to deal with situations that occur on a regular basis.
a. Tactical plans
b. Operational plans
c. Strategic plans
d. Standing plans
166. The process of developing an organization structure is also referred to as _____
a. Organization design
b. System design
c. Structure design
d. Process design
167. Organizational behavior’ is a study of _________
a. Competitive firms
b. Customers psychology
c. Large groups
d. External environment
168. ______--refers to the power to make decisions that guide the actions of another.
a. Responsibility
b. Authority
c. Power
d. Delegation
170. _________ are implemented along with the transformation process.
a. Feedback control systems
b. Feed forward control system
c. Standard control system
d. Concurrent control systems
171. In ______ managers and subordinates sit together to set objectives in their
relevant areas.
a. Management by walking around
b. Management by objectives
c. Management practices
d. Motivational techniques
172. __________ control involves monitoring critical environmental factors that could
affect the viability of strategic plans, ensuring that strategic plans are
implemented as intended and assessing the effects of organizational strategic
plans.
a. Tactical
b. Strategic
c. Operational
d. Organizational
173. Decreasing the role of subordinates in decision – making is known as ______
a. Centralization
b. Stabilization
c. Decentralization
d. Delegation of authority
174. Mishra Industries Ltd. Is plagued with certain internal operating problems due to
the inefficiency of its top management. If a SWOT analysis of the company was
carried out, these problems would be categorized as a ________
a. Opportunity
b. Strength
c. Weakness
d. Threat
175.. ________ refers to the number of subordinates a superior can supervise efficiently
and effectively.
a. Span of authority
b. Span of control
c. Span of direction
d. Span of power
176. A successful fast-food chain had a policy regarding franchising: it would not grant
a franchisee to an individual who already owned a fast-food restaurant. The fast-
food chain’s policy can be regarded as a _________ plan.
a. Single use
b. Operational
c. Standing
d. Double use