Model Question Paper

Introduction to Management (MD0101)

Answer all 100 questions. Each question carries one mark.

1.

Mintzberg identified ten managerial roles which were grouped into various categories. The roles of entrepreneur, disturbance handler, resource allocator and negotiator can be categorized as (a) (b) (c) (d) (e) Decisional roles Interpersonal roles Informational roles Administrative roles Organizational roles.

2.

According to which of the following management approaches, does managerial practice depend on circumstances? (a) (b) (c) (d) (e) Systems approach Contingency approach Mc Kinseys 7-S framework Empirical approach Human relations approach.

3.

The aim of managers is to improve productivity, efficiency and effectiveness. Which of the following is/are way(s) to improve productivity? I. II. III. IV. (a) (b) (c) (d) (e) By producing more output with the same inputs. By reducing inputs, but maintaining the same level of outputs. By increasing outputs and reducing inputs. By increasing both inputs and outputs. Only (I) above Only (II) above Both (I) and (III) above Both (II) and (IV) above (I), (II) and (III) above.

4.

Andrew Ure and Charles Dupin were prominent contributors to pre-classical management thought. Which of the following did they advocate/propose? (a) (b) (c) (d) (e) Division of labor Legislative reforms to improve working conditions of labor Profit-sharing plan Management education Emphasis on the importance of business skills for running a business.

5.

Which of the following are characteristics of Webers Ideal bureaucracy? I. II. III. IV. V. (a) (b) (c) (d) (e) Working for maximum output. Specialization of labor. Obtaining harmony in group action. Well-defined hierarchy. Career advancement based on merit. Both (I) and (III) above Both (II) and (V) above Both (III) and (V) above (I), (III) and (IV) above (II), (IV) and (V) above.

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6.

Which of the following refers to the use of an open system of rating an employees work on a daily basis, recommended by Robert Owen? (a) (b) (c) (d) (e) Silent monitor Accomplishment monitor Piece-rate incentive system Therbligs Open monitor.

7.

Various moderating variables determine whether a manager will act in an ethical or unethical manner. Moderating variables include individual characteristics, structural design of the organization, the organizational culture and the intensity of the ethical issue. Which of the following individual characteristics indicates the degree to which people believe they are masters of their own fate? (a) (b) (c) (d) (e) Perception Value Attitude Locus of control Ego Strength.

8.

The most important factor that affects a manager's ethical behavior is the intensity of the ethical issue itself. The intensity of an ethical issue is greater when I. II. III. IV. (a) (b) (c) (d) (e) The number of people harmed is large. Everyone agrees that the action is wrong. The consequences of the action are felt later on. The person feels close to the victims. Both (I) and (II) above Both (III) and (IV) above (I), (II) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

9.

Social responsiveness refers to the development of organizational decision processes that enable managers to anticipate, respond to and manage the areas of social responsibility. The social responsiveness of an organization can be measured on the basis of which of the following criteria? (a) (b) (c) (d) (e) Contributions to profit-oriented projects Fair treatment of employees, fair pay and safe working conditions Biased employment opportunity Questionable quality products to customers Ignoring environment pollution.

10. Which of the following are the assumptions about the anticipated environment in which plans are expected to operate? (a) (b) (c) (d) (e) Objectives Premises Tactics Strategies Probabilities.

11. Planning is a prerequisite not only for achieving success but also for surviving in a complex and competitive world. Which of the following is not a characteristic of planning? (a) (b) (c) (d) (e) It is goal-oriented It is a secondary function It is an intellectual or rational process It is forward-looking It is an integrated process.

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12. Standing plans are the plans developed for activities that occur regularly over a period of time. They are predetermined courses of action developed for repetitive situations. Which of the following is/are standing plans? I. Policies. II. Procedures. III. Rules. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.

13. There are different types of plans in an organization. A plan that comprises general guidelines, does not lock managers into a specific course of action and does not have defined objectives is referred as (a) (b) (c) (d) (e) Operational plan Tactical plan Strategic plan Directional plan Short-term plan.

14. Despite of the many advantages of planning, there may be some obstacles and limitations in this process. Which of the following is not considered as a potential advantage of planning? (a) (b) (c) (d) (e) It helps mangers to be future oriented It enhances decision coordination It increases the amount of time available for other managerial functions It emphasizes organizational objectives It helps in offsetting uncertainty and risk.

15. Which of the following is a process where objectives to be achieved by subordinates' are set jointly by the immediate superior and subordinates, and the subordinates are evaluated according to the accomplishment of these objectives? (a) (b) (c) (d) (e) Means-ends analysis Knowledge management Management by wandering around Management by objectives Management by exception.

16. Sairah is associated with a committee that is given the responsibility to review and institute a process for employees to use when requesting upgrades in computer equipment. Which type of objectives would Sairah most likely develop? (a) (b) (c) (d) (e) Intermediate-term objectives Long-term objectives Short-term objectives Organizational objectives Division objectives.

17. Which of the following are steps that can help overcome problems associated with the Management by Objectives process? I. Motivational assessment. II. Group action. III. Appraisal of appraisers. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (III) above All (I), (II) and (III) above.

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18. Which of the following refers to end results or targets that organizations or individuals aim at or strive to attain within a specified period of time? (a) (b) (c) (d) (e) Operations management Objectives Departmentation Decentralization Delegation.

19. Which of the following is/are the essential factors to make Management by Objectives (MBO) effective? I. Top-management support. II. Training for MBO. III. Formulating clear objectives. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (III) above All (I), (II) and (III) above.

20. In order to understand the opportunities and threats faced by an organization, managers should analyze their organizations environment. What are the three most effective tools that managers can use to analyze their organizations environment? (a) (b) (c) (d) (e) Benchmarking, planning, and evaluating Environmental scanning, forecasting, and benchmarking Strategic planning, environmental scanning, and TQM Forecasting, budgeting, and time management Strategic planning, environmental scanning, and management control.

21. Every company wants to gain competitive advantage over its competitors. If a company is able to be unique in its industry in a manner widely valued by the market, it is likely to be following a (a) (b) (c) (d) (e) Diversification strategy Differentiation strategy Focus strategy Cost-leadership strategy Growth strategy.

22. In the strategic management process, any organizational skills or resources that are exceptional or unique to the organization are the organizations (a) (b) (c) (d) (e) Potential external opportunities Potential internal strengths Core competencies Bargaining power Marketing niche skills.

23. With its Everyday Low Pricing (EDLP) strategy, Wal-Mart generally follows which of the following generic strategies to meet or beat competitors? (a) (b) (c) (d) (e) Focus Differentiation Market segmentation Cost leadership Niche strategy.

24. SWOT analysis helps companies identify their strengths and weaknesses and opportunities and threats in the environment it operates. Which of the following cannot be considered a potential opportunity for a company? (a) (b) (c) (d) (e) Serving additional customer groups Ability to take advantage of economies of scale Falling trade barriers in attractive foreign markets Integrating forward or backward Using Internet technologies to pursue sales growth.

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25. Under which of the Porter's five sections for analyzing a firm's task environment would an absolute cost advantage most likely appear as a decision variable? (a) (b) (c) (d) (e) The nature of rivalry New entrants Substitutes Bargaining power of buyers Bargaining power of suppliers.

26. The business level strategies described by Michael E. Porter are also referred to as (a) (b) (c) (d) (e) Generic strategies Corporate strategies Business strategies Functional strategies Value based strategies.

27. Tyrone holds a management position at XYZ Corporation. He is excellent at time management and does not hesitate to delegate tasks to subordinates. Tyrone feels the most challenged and performs at his best level when unique problems arise at his company. He is most often one of the first managers to come up with an effective solution for the problem. Which of the following can be stated of Tyrone? (a) (b) (c) (d) (e) Tyrone is excellent with programmed decisions Tyrone relies too heavily on the work of others Tyrone is apparently risk averse Tyrone excels at deriving non-programmed decisions Tyrone is an excellent resource allocation manager.

28. Which of the following decision-making models suggests that the ability of managers to be completely rational in making decisions is limited by certain factors? (a) (b) (c) (d) (e) Rational model Satisficing model Incremental model Garbage-can model Queuing model.

29. Which of the following is a form of conformity whereby group members withhold information or discussion in order to give the appearance of agreement? (a) (b) (c) (d) (e) Group conformity Groupthink Minority domination Group domination Logrolling.

30. If an organization is placing an order for office supplies, it is engaged in which of the following types of decision? (a) (b) (c) (d) (e) Non-programmed decision Programmed decision Decision made under risk Decision made under uncertainty Strategic decision.

31. Which of the following decision-making techniques provides scientific criteria to estimate profitability of an investment and to analyze cash inflows and cash outflows? (a) (b) (c) (d) (e) Linear programming Queuing method Financial analysis Ratio analysis Break-even analysis.

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32. Managers sometimes have an almost perfect understanding of the conditions surrounding a decision, but at other times they have very little understanding of the same. Under which of the following conditions would a manager most likely be operating, if he has absolutely no idea what the result of an implemented alternative will be, and the future environment is unpredictable? (a) (b) (c) (d) (e) Certainty Risk Uncertainty Reality Virtual.

33. Brainstorming is a creative decision-making technique used for (a) (b) (c) (d) (e) Generating alternative and unusual solutions Evaluating alternatives Identifying resources and constraints Selecting the best alternative Implementing the solution.

34. Fayol and Taylor considered organizing to be a part of management. Their theories gave rise to certain principles of organizing. With respect to these traditional perspectives of organizing, the aim of which principle is to ensure the pursuit of organizational goals by the employees in a coordinated manner? (a) (b) (c) (d) (e) Unity of direction Unity of command Hierarchy of authority Authority on par Downward delegation.

35. The characteristic of organizations that describes the degree to which an organization monitors and responds to changes in the external environment is termed as (a) (b) (c) (d) (e) Open-systems focus Means-end orientation Control Unit integration Closed-system focus.

36. Which of the following is/are integral part(s) of an effective organizing effort? I. II. III. IV. (a) (b) (c) (d) (e) Rationale for the orderly use of management system resources. Responsibility. Authority. Delegation. Only (II) above Both (I) and (II) above Both (III) and (IV) above (I), (III) and (IV) above (II), (III) and (IV) above.

37. A business takes the inputs, processes and transforms them and gives the output. There is a set of interactive subsystems in an open system. Identify from the following, the interactive subsystems. (a) (b) (c) (d) (e) Technical and managerial Managerial and accounting Accounting, non-technical and organizational Technical, managerial and boundary spanning Boundary spanning, accounting and organizational.

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38. The traditional flow of authority and communication in an organization was downward. Subsequently, however, theorists suggested that organizations are cooperative systems where the authority that a leader has over his subordinates is determined by the subordinates' willingness to comply with it implying that authority or communication can be upward as well. This non-traditional concept is referred as (a) (b) (c) (d) (e) Top-down management Bottom-up management Unity of command Unity of direction Horizontal management.

39. The span of management has a direct effect on the number of hierarchical levels in an organization. A flat structure has a wide span of control and fewer hierarchical levels. As the structure becomes flat and span of control grows wider the disadvantage is that (a) (b) (c) (d) (e) Superiors are forced to delegate There is excessive distance between lowest level and top level There is a danger of superiors loss of control There are many levels of management Overhead costs are high.

40. An organization structure that has many hierarchical levels can be described as one having a (a) (b) (c) (d) (e) Limited structure Open structure Wide structure Tall structure Flat structure.

41. Which of the following is an aspect of organization structure that involves specification of task activities associated with a particular job? (a) (b) (c) (d) (e) Organizational culture Job rotation Goals Job design Authority.

42. Which of the following principles emphasizes that, employees should gain expertise in a particular area of work? (a) (b) (c) (d) (e) Socialization Dignity of labor Principle of specialization Economies of scale Delegation.

43. To compete in the global market, an organization has to be more flexible and responsive. In recent years there has been a movement to make organizations more flexible and responsive through (a) (b) (c) (d) (e) Alternative organizational structure Customer-based structure Centralization Decentralization Product-based structure.

44. Which of the following is the employer-employee authority relationship that follows the chain of command? (a) (b) (c) (d) (e) Staff authority Referent power Line authority Functional authority Expert power.

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45. Apart from the relationship between structure and strategy, there are certain contingency factors that affect the effectiveness of a particular structure. Which of the following constitute(s) these contingency factors? I. Size of the organization. II. Technology used. III. Environment. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (II) and (III) above All (I), (II) and (III) above.

46. Pizza Hut is a medium-sized organization with a limited number of products that caters to a set of customers whose needs are relatively similar. Which of the following organizational structures best suits the company? (a) (b) (c) (d) (e) Functional structure Product structure Geographic structure Hybrid structure Matrix structure.

47. The major disadvantage of the matrix structure is (a) (b) (c) (d) (e) Duplication of resources Lack of employee satisfaction Lack of economies of scale Its propensity to foster power struggles Monotony of work.

48. Which of the following is a formal system of relationships that determine lines of authority and the tasks assigned to individuals and units? (a) (b) (c) (d) (e) Grapevine Organizational culture Closed system Span of control Organization structure.

49. Which of the following is not an advantage of the functional structure? (a) (b) (c) (d) (e) Economies of scale Minimization of duplication Employee satisfaction Pursuit of functional goals Specialization.

50. The benefits associated with adopting the divisional organization structure include all but which of the following? (a) (b) (c) (d) (e) Development of managers' skills Reduced specialization Improved service Coordination among business functions Accountability for performance.

51. All of the following are characteristics of organizational culture except (a) (b) (c) (d) (e) Member identity Distinctiveness Observed behavioral regularities Uniform strength Dominant and stable values.

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52. When Maria, a new employee, dressed in casual jeans came to work, she was teased and her manager suggested she dress in business attire as her co-workers did. In this scenario, Maria had violated (a) (b) (c) (d) (e) A rule A policy Group norms Groupthink A procedure.

53. Mr. Arvind, the CEO of EEC Ltd., has identified the benefits of practicing job rotation for his managers and trainees. Which of the following would be suitable position(s) that Arvind can use for job rotation for his managers and trainees? I. Non-supervisory positions. II. Observation assignments. III. Top-level positions. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above Both (II) and (III) above.

54. The selection process involves choosing the candidates who best meet the qualifications and have the greatest aptitude for the job. Different kinds of selection devices are used for the purpose. Which of the following selection devices involves measuring practical ability on a specific job? (a) (b) (c) (d) (e) Physical examination Intelligence test Personality test Work sampling test Knowledge test.

55. Which of the following is a computerized database that contains basic information about each employee such as their knowledge, experience, interests, performance etc., which can be used to assess the likely availability of individuals for meeting current and future human resource needs? (a) (b) (c) (d) (e) Job description Replacement planning Succession planning Skills inventory Inventory record file.

56. The characteristics of the individual who should be hired for the job are indicated by the (a) (b) (c) (d) (e) Job analysis Job description Job specification Job rotation Job enlargement.

57. External recruitment involves attracting people from outside the organization to apply for jobs. Which of the following is a disadvantage of external recruitment? (a) (b) (c) (d) (e) There will be no new ideas entering organization Candidates may not have broader experience Candidates wont be familiar with competitors Potential internal candidates may be resentful Candidates may not have new specialties.

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58. Which of the following is/are factor(s) or objective(s) that can be considered in developing performance appraisal systems? I. Allowing subordinates to give feedback during the performance review. II. Emphasizing work behaviors instead of personality traits. III. Identifying employees who need to be fired. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.

59. In order to reduce the subjective interpretation inherent in graphic rating scales, performance appraisal experts developed (a) (b) (c) (d) (e) Assessment centers Information technology based appraisals Corrective appraisals Behaviorally anchored rating scales 360-degree appraisal.

60. Which of the following implies perceiving all the attributes and characteristics of another person on the basis of knowledge of single trait of that person? (a) (b) (c) (d) (e) Stereotyping Halo effect Hawthorne effect Domino effect Ripple effect.

61. Performance appraisal is a continuous process that focuses on organizations objectives, task accomplishment, and personal development. Which of the following is not an objective of a performance appraisal? (a) (b) (c) (d) (e) Identification of potential Compensation administration Work-force planning Validation of selection procedures Enhancing superior-subordinate interpersonal relationship.

62. The effectiveness of a formal performance appraisal system depends on the quality of control techniques used. Which of the following is/are control technique(s) used in a formal appraisal system? I. Standards. II. Information. III. Corrective actions. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (III) above All (I), (II) and (III) above.

63. Raj, Rahul, Ramesh and Rohit wanted to start their own business after they graduated with their Bachelor of Science degree. They had a common purpose, they had set performance standards for themselves and they had an approach to hold themselves mutually accountable. They can be referred to as a/an (a) (b) (c) (d) (e) Group Alliance Federation Team Co-operative.

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64. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes. Which of the following conflict resolution techniques implies emphasizing the areas of agreement and common goals and de-emphasizing disagreements? (a) (b) (c) (d) (e) Problem Solving Forcing Smoothing Compromise Avoidance.

65. The forces of change in an organization can be internal or external to the organization. Which of the following is not an internal force of change? (a) (b) (c) (d) (e) Organizational strategy Technology Employee attitude Organizational culture Workforce.

66. Managers vary in their assumptions about people working in an organization. Which of the following types of managers would best describe an individual who believes that most people dislike work and will avoid it whenever possible? (a) (b) (c) (d) (e) Creative manager Transformational manager Theory Y manager Theory X manager Autocratic manager.

67. Shivani Sondhi has been assigned the task of planning a strategy to enhance creativity in her organization. Which of the following would be the best suggestion for Ms. Sondhi to explore, in order to meet her objective of enhancing creativity? (a) (b) (c) (d) (e) Mandate that all employees think creatively Hire a Vice-President of creativity Use diversity in the organization to expand perspectives on creative efforts stress conformity less Creativity in an organization is either there or it is not it is a natural process and cannot be controlled Conduct a training program.

68. The managerial creativity process involves various overlapping phases/stages. Which of the following stages of the creativity process links the unconscious state of mind with the conscious state? (a) (b) (c) (d) (e) Unconscious scanning Intuition Insight Logical formulation Decision.

69. Zeeshan has a job that pays well, desires to make a contribution to the organization, and has an active social life. His overpowering drive now is to become all that he is capable of becoming. At which level of Maslows need hierarchy is Zeeshan? (a) (b) (c) (d) (e) Self-actualization Safety Social Esteem Physiological.

70. Herzbergs two-factor theory focuses on motivators and hygiene factors at the workplace. Which of the following could be a motivator as per this theory? (a) (b) (c) (d) (e) Supervision Salary Status Recognition Working conditions.

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71. Theories of motivation can be divided into content theories and process theories. Equity theory, which is a process theory of motivation, recognizes that individuals are concerned with (a) (b) (c) (d) (e) Only absolute rewards Their compensation package Their rewards relative to others Whether others perceive equity Only others rewards.

72. Rewards can be broadly categorized into extrinsic and intrinsic rewards. While extrinsic rewards are pay-offs granted by others, intrinsic rewards are self-granted and internally experienced payoffs. Which of the following is not an extrinsic reward? (a) (b) (c) (d) (e) Money Satisfaction Amenities Promotion Perks.

73. In Alderfers ERG theory of motivation, ERG stands for (a) (b) (c) (d) (e) Existence-relatedness-gain Existence-relatedness-growth Endurance-relatedness-growth Existence-resemblance-gain. Endurance-resemblance-growth.

74. The managerial grid identified five specific leadership styles. Which of the following leadership styles implies that thoughtful attention to the needs of people for a satisfying relationship leads to a comfortable, friendly organizational atmosphere and work tempo? (a) (b) (c) (d) (e) Authority-compliance management Middle of the road management Country club management Team management Impoverished management.

75. The path-goal theory, proposed by Robert House, suggests some leadership styles that can be used in order to affect subordinates perceptions of paths and goals. Which of the following is not one of the leadership styles suggested by path-goal theory? (a) (b) (c) (d) (e) Instrumental leadership Benevolent-authoritative leadership Supportive leadership Participative leadership Achievement-oriented leadership.

76. Kurt Lewin, a researcher at the University of Iowa, and his colleagues made some of the earliest attempts to scientifically determine effective leader behaviors and proposed some leadership styles. According to Lewin, a leader who involves employees in decision-making, delegates authority and gathers inputs from employees, but makes the final decision himself is possibly using which style of leadership? (a) (b) (c) (d) (e) Democratic Laissez-faire Autocratic Consultative Benevolent authoritative.

77. Hersey and Blanchards model of leadership implies that the relationship between a leader and follower moves through four phases based on the parameters of task behavior and relationship behavior. Task behavior refers to the extent to which the leader has to provide guidance to the individual or group. Relationship behavior refers to the degree to which the leader engages in two-way communication. According to Hersey and Blanchard, when followers are in the initial readiness stage, the leader's behavior should be of (a) (b) (c) (d) (e) High task and high relationship High task and low relationship Low task and low relationship Low task and high relationship Moderate task and moderate relationship. Page 12 of 21

78. A leader who pays attention to the concerns and developmental needs of individual followers, help followers to look at old problems in new ways, and are able to inspire followers to put extra effort into the group goals are (a) (b) (c) (d) (e) Visionary leaders Transformational leaders Transactional leaders Autocratic leaders Consultative leaders.

79. According to the Ohio State studies, a leader with an orientation towards which of the following dimensions of leadership would attempt to define his or her own role and those of subordinates so as to achieve organizational goals? (a) (b) (c) (d) (e) Boss-centered Initiating structure Consideration Subordinate-centered Employee-centered.

80. Communication flow in an organization can be upward, downward and lateral (crosswise). The primary purpose served by lateral organizational communication is (a) (b) (c) (d) (e) Coordination Enhanced organizing Leadership Planning Control.

81. In a meeting, when a senior manager communicates ambiguously giving rise to different responses from different people, then the communication aberration can be referred to as (a) (b) (c) (d) (e) Grapevine Crosswise communication Lateral communication Semantic distortion Premature evaluation.

82. Which of the following does not constitute upward communication? (a) (b) (c) (d) (e) Cost accounting report Purchase order summary Production report Corporate policy statement Sales report.

83. Organizations implement control in a number of different ways and at various levels. Which of the following is not one of the types of management control? (a) (b) (c) (d) (e) Feedback control Feedforward control Concurrent control Exception control Cybernetic control.

84. There can be various types of controls in an organization. Which of the following is a self-regulating control system that once put into operation, can automatically monitor the situation? (a) (b) (c) (d) (e) Strategic control system Tactical control system Operational control system Cybernetic control system Non-cybernetic control system.

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85. General Manager (Marketing) of Sumit Ltd., who monitors fortnightly achievements of each manager and gives instructions for better results in marketing, is acting in terms of which function? (a) (b) (c) (d) (e) Planning Staffing Controlling Leading Organizing.

86. A Funds Flow statement is I. Source of funds statement. II. A statement of use of funds. III. An income statement. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above Both (II) and (III) above.

87. Ratio is an index that measures one variable relative to another and is generally expressed as a percentage or a rate. The ratio that tests how leveraged an organization is, may be referred to as (a) (b) (c) (d) (e) Current ratio Return-on-investment ratio Debt ratio Net profit margin ratio Inventory turnover ratio.

88. Debts are an important source of finance for a business. Which of the following ratios indicate the companys ability to pay long-term debts? (a) (b) (c) (d) (e) Asset Management Leverage Liquidity Profitability Activity.

89. A responsibility center is a sub-unit headed by a manager who is responsible for achieving one or more goals. Which of the following is/are true regarding responsibility centers? I. II. III. IV. (a) (b) (c) (d) (e) An organizations choice of responsibility centers depends to a great extent on its control mechanisms. Sales or marketing units may be considered as revenue centers. Organizations that have a divisional structure may opt for profit centers. Autonomous businesses may be considered as investment centers. Only (I) above Only (IV) above Both (II) and (III) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

90. Productivity can be described as the relationship between the amount of goods/services produced and (a) (b) (c) (d) (e) Profits The organizational resources needed to produce them Quality Operations management activities Advanced manufacturing support.

91. Which of the following does not constitute a set of decisions that are included in an operations management program? (a) (b) (c) (d) (e) Capacity decisions Facilities decisions Quality decisions Materials/inventory decisions Budgeting decisions. Page 14 of 21

92. An organization incurs several costs in maintaining inventory. Loss of sale and loss of customer goodwill are examples of (a) (b) (c) (d) (e) Carrying cost Item cost Ordering cost Stock-out cost Superfluous cost.

93. Information is one of the important resources for managers. For information to be useful to managers, it must possess certain attributes. The information attribute which tells whether the information pertains to the situation at hand or not, is known as (a) (b) (c) (d) (e) Information Accuracy Information Timeliness Information Relevance Information Completeness Information Frequency.

94. Information needs vary by level of activity and also by levels in the managerial hierarchy. For which of the following levels of management would information about environmental trends be most appropriate? I. Top management. II. Middle management. III. Lower-level management. (a) (b) (c) (d) (e) Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.

95. Management Information System (MIS) helps the manager to discharge his/her managerial functions in a more efficient manner. The first necessary step to effectively operate an MIS is (a) (b) (c) (d) (e) Summarizing data Analyzing data Determining information needs Gathering appropriate information Generating reports from gathered data.

96. Information that originates outside the organization is known as external information. Which of the following is an example of external information in an organization? (a) (b) (c) (d) (e) Daily receipts and expenditures Salesperson Quotas Descriptions of customer satisfaction with products and services Quantity of an item in hand or in inventory Cost and selling price of the companys item.

97. There are different orientations toward international business. One such orientation is geocentric orientation. The view associated with this type of orientation can be termed as (a) (b) (c) (d) (e) National Narrow Regional Global Culture-bound.

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98. According to the Japanese style of management, which of the following are the characteristics of the planning function? I. II. III. IV. V. (a) (b) (c) (d) (e) Long-term orientation. Individual decision-making. Decisions flowing from bottom to top and back. Decisions initiated at the top, flowing down. Slow decision-making. Both (I) and (II) above Both (I) and (III) above Both (II) and (IV) above (I), (III) and (V) above (II), (III) and (IV) above.

99. Which of the following Japanese management practices, refers to my/ones company where people are treated as family members? (a) (b) (c) (d) (e) Ringi Henko Kacho Kaisha Habatsu.

100. With respect to international management, staff specialists, such as engineers and budget analysts, who hold influential positions in the bureaucracy and specialize in economic planning are referred to as (a) (b) (c) (d) (e) Senators Technocrats Expatriates Outlaws migrs.

END OF QUESTION PAPER

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Suggested Answers
Introduction to Management (MD0101)
1. 2. 3. ANSWER A B E REASON The roles of entrepreneur, disturbance handler, resource allocator, and negotiator can be categorized as decisional roles. According to contingency approach to management, managerial practice depends on circumstances. Productivity can be improved by (I) producing more output with the same inputs, (II) reducing inputs, but maintaining the same level of outputs and (III) increasing outputs and reducing inputs. Therefore, option (e) is the answer. Andrew Ure and Charles Dupin advocated management education. The following are characteristics of Webers Ideal bureaucracy: Specialization of labor. Well-defined hierarchy. Career advancement based on merit. Silent monitor refers to the use of an open system of rating an employees work on a daily basis, recommended by Robert Owen. Locus of Control indicates the degree to which people believe they are masters of their own fate. Hence from above discussion, we can infer that option (d) is correct. The intensity of an ethical issue is greater in the following cases: The number of people harmed is large. Everyone agrees that the action is wrong. The person feels close to the victims. The intensity of an ethical issue is greater when the consequences of the action may be felt immediately. Therefore, statement (III) does not hold good. The social responsiveness of an organization can be measured on the basis of fair treatment of employees; fair pay and safe working conditions. Hence from above discussion, we can infer that option (b) is correct Assumptions about the anticipated environment in which plans are expected to operate are called premises. Planning is a primary function as it precedes the execution of all other management functions. So it is not a secondary function. Hence from above discussion, we can infer that option (b) is not a characteristic of planning. Options (a), (c), (d) and (e) are all characteristics of planning. A standing plan is used for activities that occur regularly over a period of time. It is a predetermined course of action developed for repetitive situations. Policies, Procedure and Rules are examples of standing plan. Hence, from above discussion, we can infer that option (e) is correct A plan that comprises general guidelines, does not lock managers into a specific course of action and does not have defined objectives is referred to as a directional plan. Hence, from above discussion, we can infer that option (d) is correct. Planning can be defined as the process by which managers set missions and objectives, assess the future, and develop courses of action to accomplish these objectives. However, it need not increase the amount of time available for other managerial functions. Hence, from above discussion, we can infer that option (c) is correct. Options (a), (b), (d) and (e) are all potential advantages of planning.. Management by objectives is a method where the subordinates' objectives are set jointly by the immediate superior and subordinates, and the subordinate is evaluated according to the accomplishment of these objectives. An objective is the aim of an action. It implies a specific work to be accomplished within a given period of time. Short-term objective is developed to accomplish a work in a very short period of time. Hence, from above discussion, we can infer that option (c) is correct. The following are steps that can help overcome problems associated with the MBO process: I. Motivational assessment.

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Objectives refer to end results or targets that organizations or individuals aim at or strive to attain within a specified period of time. Factors mentioned in all three statements are essential to make management by objectives (MBO) effective. Environmental scanning, forecasting, and benchmarking are the three most effective tools that managers can use to analyze their organizations environment. Hence from above discussion, we can infer that option (b) is correct. Differentiation strategy involves attempting to offer products and services that are considered unique in the industry. Hence, from above discussion, we can infer that option (b) is correct. In the strategic management process, any organizational skills or resources that are exceptional or unique are the organizations core competencies. Hence from above discussion, we can infer that option (c) is correct. With its Everyday Low Pricing (EDLP) strategy, Wal-Mart generally follows the cost leadership generic strategy to meet or beat competitors. Ability to take advantage of economies of scale could be a strength of the company and not an opportunity. An absolute cost advantage would most likely appear as a decision variable for new entrants. The business level strategies described by Michael E. Porter are also referred to as Generic strategies. Non-programmed decisions are those that deal with unusual or exceptional problems. They are the decisions for which predetermined decision rules are impractical because the situations are novel and/or ill-structured. So, we can say that Tyrone excels at deriving non-programmed decisions. Satisficing model suggests, the ability of managers to be completely rational in making decisions is limited by certain factors. Groupthink is a form of conformity whereby group members withhold information or discussion in order to give the appearance of agreement. Programmed decisions are those involving simple, common, frequently occurring problems that have well-established and understood solutions. These decisions are made in routine, repetitive, well-structured situations through the use of predetermined decision rules. Hence, from above discussion, we can infer that option (b) is correct. Financial Analysis is the decision-making technique which provides scientific criteria to estimate profitability of an investment and to analyze cash inflows and cash outflows. Hence, from above discussion, we can infer that option (c) is correct. A manger would most likely be operating under complete uncertainty condition if he has absolutely no idea what the result of an implemented alternative will be, and the future environment is unpredictable. Brainstorming is technique used for generating alternative solutions. Hierarchy of authority ensures the pursuit of organizational goals by the employees in a coordinated manner. Open-system focus is characteristic of organization that describes the degree to which the organization monitors and responds to changes in the external environment. An effective organizing effort involves responsibility, authority, and delegation. An open system model is based on organization-environment interaction. This system is viewed as comprising a set of interactive subsystems, out of which three important subsystems can be identified. They are (i) Technical, (ii) Boundary-spanning and (iii) Managerial. Majority of the decisions in an organization flows through the organization structure level by level. If managers are totally involved in all processes at their level, to their optimum capacity, the management system followed is bottom-up management system. (b) is correct answer. As the structure becomes flat and span of control grows wider the disadvantage is that there is a danger of superiors loss of control. Option (a) - superiors are forced to delegate is an advantage of a wide span of control. Options (b), (d) and (e) are disadvantages of a tall structure and narrow span of control. An organization structure that has many hierarchical levels can be described as one having a tall structure. Job design is an aspect of organization structure that involves the specification of task activities associated with a particular job. Principle of specialization emphasizes that the work of each person should be confined to a single person. Hence, from above discussion, we can infer that option (c) is correct. Page 18 of 21

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Decentralization is the systematic delegation of authority in an organization-wide context. In recent years there has been a movement to make organizations more flexible and responsive through decentralization. Hence from above discussion, we can infer that option (d) is correct. Line authority is the employer-employee authority relationship that follows the chain of command. The three contingency factors on which an organizational structure depends on are size of the organization, technology used and environment. (a) A functional structure suits small or medium-sized organizations that have a limited number of products or services. (b) A product structure is suitable for extremely large, complex and multi-product organizations, where large differences in the product or service lines make co-ordination within a functional design extremely slow and inefficient. (c) A territorial structure is adopted by organizations that operate over wide geographic areas such as banking, insurance, and transportation firms. (d) Large organizations requiring functional expertise and which operate in uncertain environments adopt a hybrid structure. (e) A matrix structure is usually found in construction, in the installation of electronic data processing systems, in aerospace, or in a consultancy firm. The major disadvantage of the matrix structure is its propensity to foster power struggles. Organization structure is a formal system of relationships that determine lines of authority and the tasks assigned to individuals and units. Employee satisfaction is not an advantage of the functional structure as it (functional structure) leads to boredom and monotony. The benefits associated with engaging in the divisional approach include all but reduced specialization. The following are the characteristics of organization culture: distinctiveness; based on strong norms; observed behavioral regularities; member identity; stable and dominant values; and variable strength (weak and strong cultures). Maria had violated Group norms. Group norms are standards set by a group that regulate and foster uniformity in member behaviors. (a) Rules are statements of actions that must be taken or not taken to a given situation. (b) A policy is defined as a general guideline for decision making. (d) Groupthink is a phenomenon in which the desire for group cohesiveness and consensus becomes stronger than the desire for the best possible decision. (e) A procedure is a guide to action that explains in detail the manner in which activities are to be performed. The purpose of job rotation is to broaden the knowledge of managers or potential managers and trainees learn through different enterprise functions like non-supervisory works, observation assignments etc. by rotation into different positions. But they cannot be posted in top-level management positions as high stakes are involved. Work Sampling Test involves measuring practical ability on a specific job. Skills Inventory is a computerized database containing basic information about each employee that can be used to assess the likely availability of individuals for meeting current and future human resource needs. Hence, option (d) is correct. Job specification indicates characteristics of the individual who should be hired for the job. External recruitment will lead to job dissatisfaction among the potential internal candidates of he organization. Performance appraisal have the objectives of performance feedback, job analysis, work behavior, work planning and potentialities. Subordinate participation in performance appraisals is also a factor that can be considered. Hence, option (d) is correct answer. Behaviorally Anchored Rating Scales (BARS) is a sophisticated and useful rating method. BARS contain sets of specific behaviors that represent gradations of performance used as common reference points (anchors) (d) is correct answer. Halo effect is the process of perceiving all the attributes and characteristics of another person on the basis of knowledge of single trait of that person. Hence, option (b) is correct. Enhancing superior-subordinate interpersonal relationship is not an objective of a performance appraisal.

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The following are control techniques used in a formal appraisal system: I. Standards. II. Information. III. Corrective action. A team has a common purpose and long-term existence and has an approach to hold themselves mutually accountable. Any congregation of individuals is called a group. An alliance is a relatively temporary group of persons. A federation is one which the constituents (members) act independently, though bound by a common goal. Cooperation is extending help to other members of a group. Smoothing conflict resolution technique implies emphasizing the areas of agreement and common goals and de-emphasizing disagreements. Hence, option (c) is correct. Technology is an external force of change. Hence, option (b) is not an internal force of change. Options (a), (c), (d) and (e) are all internal forces of change. Mc Gregor's Theory X manager assumes that individuals dislike work and will avoid it whenever possible. Hence, option (d) is correct. Creativity in an organization is either there or it is not it is a natural process and cannot be controlled. This would be the best suggestion for Ms. Sondhi to explore. The intuition stage of the creative process links the unconscious state of mind with the conscious state. Self-actualization need is the drive to become all that one is capable of becoming. Achievement, recognition, and growth are examples of motivators in Herzbergs theory. Equity theory recognizes that individuals are concerned with their rewards relative to others. Satisfaction is an intrinsic reward. In Alderfers ERG theory, ERG stands for existence-relatedness-growth. According to the managerial grid, the country club leader believes that thoughtful attention to the needs of people for a satisfying relationship leads to a comfortable, friendly organizational atmosphere and work tempo. Path-goal theory suggests four types of leadership: instrumental, supportive, participative, and achievement-oriented leadership. A consultative leader involves employees in decision-making, delegates authority, and gathers input from employees, but makes the final decision himself/herself. According to Hersey and Blanchard, when followers are in the initial readiness stage, the leader's behavior should be one of high task and low relationship. Leaders who pay attention to the concerns and developmental needs of individual followers, help followers to look at old problems in new ways, and are able to inspire followers to put extra effort into the group goals are transformational leaders. According to the Ohio State studies, a leader who is high in initiating structure is characterized by behavior that attempts to organize work, work relationships, and goals. Coordinating is the primary purpose served by lateral organizational communication. Semantic distortion, either deliberate or accidental, acts as a barrier to effective communication. Such distortion takes place if the meaning is not communicated properly. So, (d) is correct answer. Except corporate policy statements, all the options given are examples of upward communication. There is no such management control as exception control. Cybernetic control system is a self-regulating control system that once put into operation, can automatically monitor the situation. All other control systems may rely on human discretion. So, (d) is the correct answer. Monitoring of work in a fixed period of time and analyzing and advising is a controlling function of management. So, (c) is correct answer. A Funds Flow statement is a statement of sources and uses of funds for a definite period between two dates. Debt ratio measures the percentage of total assets financed by debt (including current liabilities). So, it tests how leveraged an organisation is. Hence, option (c) is correct. Leverage or debt management ratios indicate the companys ability to pay long-term debts. Page 20 of 21

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An organizations choice of responsibility centers depends to a great extent on the structure of the organization and not on its control mechanisms. Hence, statement (I) is not true. Statements (II), (III) and (IV) are true about responsibility centers. Hence, option (d) is the answer. Productivity is the relationship between the amount of goods/services produced and the organizational resources needed to produce them. Budgeting decisions do not constitute a set of decisions that are included in an operations management program. The cost of not having the stock of product requested by the customer is called stock-out cost. Loss of sale and loss of customer goodwill are examples of stock-out cost. The information attribute which tells whether the information pertains to the situation at hand or not, is known as Information relevance. Hence, option (c) is correct. The level of management for which information about environmental trends would be most appropriate is top management. Hence, option (a) is correct. MIS (Management Information System) can be defined as an integrated, user-machine system for providing information to support managerial, operational and decision-making functions in an organization. The first necessary step to effectively operate an MIS is determining information needs. Hence, option (c) is correct. Descriptions of customer satisfaction with products and services are examples of external information in an organization. Hence, option (c) is correct. Options (a), (b), (d) and (e) are all examples of internal information in an organization. The view associated with geocentric attitude can be said to be global. In such a situation, executives believe that a global view is needed in both the headquarters of the parent company and its various subsidiaries. Hence, option (d) is correct. The characteristics of the planning process usually adopted in Japanese Management style are: (1) Long-term orientation, (2) Collective decision-making, (3) Decisions flowing bottom to top and back, (4) Slow decision-making. Hence, (d) is the correct answer. According to the Japanese management practices, Kaisha refers to my/ones company where people are treated as family members. With respect to international management, staff specialists, such as engineers and budget analysts, who hold influential positions in the bureaucracy and specialize in economic planning are referred to as technocrats.

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