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251. ________teams consist of employees from the same hierarchical level, but from different functional
areas of the organization.
a. Problem-solving teams
b. Self-managed work teams
c. Cross-functional teams
d. Quality circles
Ans: C
252. ______allow employees from diverse functional areas within an organization or from different
organizations to cooperate with one another to handle complicated projects, share ideas, and solve
various problems pertaining to the organization.
a. Problem solving teams
b. Self-managed teams
c. Quality circles
d. Cross-functional teams
Ans: D
253. Which of the following is not essential for building effective teams?
a. Providing a supportive environment
b. Relevant skills and role clarity
c. Focus on super ordinate goals
d. Employees benefits
Ans: D
254. _______is a management philosophy that focuses on customer relationships and tries to build an
environment of trust and openness.
a. Team Rewards
b. Total Quality Management
c. Task force
d. Quality Circle
Ans: B
255. What are the prerequisites of TQM initiatives?
i. High levels of communication
ii. High levels of adaptation
iii. High levels of coordination and sequencing
iv. Advanced management skills
Only I,ii, and iii
Only I, iii and iv
Only ii, iii and iv
I, ii, iii and iv
Ans: A
256. Which of the following automobile companies initiated TQM?
a. Toyota
b. Nissan
c. General Motors
d. Ford Motor Company
Ans: D
257. Which of the following is identify not an advantage of team and work force diversity?
a. Complexity
b. Multiple perspectives
c. Greater openness to new ideas
d. Increased flexibility
Ans: A
258. The Bank Wiring Room Experiments are related to the ______

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a. Hawthorne studies
b. Grapevine
c. Rumors
d. Probability chain
Ans: A
259. How is control exerted in a formal organization?
a. Through rewards and punishments
b. Through norms
c. Through sanctions
d. Both b and ac
Ans: A
260. What does the grapevine usually include?
a. Oral communication between employees
b. Informal written communication
c. Informal electronic messages
d. All of the above
Ans: D
261. Where is the grapevine most active in the organization ?
i. Lunch rooms
ii. Coffee vending machines
iii. Near water coolers
iv. Conferences
Only I, ii, and iii
Only I, iii and iv
Only ii, iii and iv
I, ii, iii, and iv
Ans: A
262. Though communication spreading along the grapevine may contain some legitimacy, it doesnt
contain the entire truth and research has shown that only about _______ of the information that
spreads through the grapevine is true.
a.1/3
b.1/3
c. 2/3
d.
Ans: D
263. ______ is a type of organization grapevine in which one person randomly spreads the information to
everybody he/she comes in contact with. Further the flow of information along this type of network is
not very fast
a. Single Strand
b. Gossip
c. Probability
d. Cluster
Ans: D
264. What is grapevine?
a. Well-defined communication systems consisting of formal memos, reports, etc.
b. Channels of communication in an informal organization
c. The telegraph wires strung over trees across the battlefield
d. Social interactions that take place between people
Ans: B
265. Define the term Rumor?

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a. An unofficial interesting story or piece of news that might be true or invented, which quickly spreads
from person to person
b. The channels of communication in an informal organization
c. A well-defined communication system consisting of formal memos, rep[orts, company newsletters,
official notices, departmental meetings, and conferences
d. None of the above
Ans: A
266. What does the term Filtration refer to?
a. It is the process by which people, based on their reasoning, add new details to the original information
and distort it.
b. It is the process by which an individual retains complete details of the incident and transmits them to
others in ditto.
c. It refers to damage caused to a business by the baseless spread of rumors.
d. It is the process by which an individual retains a few basic details of the incident which he/she finds
interesting and transmits only these details to others.
Ans: D
267. _____arise during periods of stress, are action-oriented in nature, originate without any planning, and
do not involve forethought.
a. Spontaneous rumors
b. Premeditated rumors
c. Bogy rumors
d. Wedge rumors
Ans: A
268. Building blocks for designing an organizational structure consist of six elements, which of the
following alternatives is not one of these elements?
a. Departmentalization
b. Formalization
c. Span of control
d. Bureaucracy
Ans: D
269. _______is a process in which jobs are grouped together for coordination among organizational tasks.
a. Departmentalization
b. Chain of command
c. Span of control
d. Formalization
Ans: A
270. ______involves breaking down an organization into small, independent units called Strategic
Business Units, each of which produces a particular product or service.
a. Departmentalization by function
b. Departmentalization by product
c. Departmentalization by process
d. Departmentalization by geography
Ans: B
271. ____________ helps organizations customize products to suit customer tastes and preferences, and
formulate strategies depending on the intensity of competition in the region. Which of the following
types of departmentalization has this inherent advantage?
a. Departmentalization by customer
b. Departmentalization by product
c. Departmentalization by process
d. Departmentalization by geography
Ans: D

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272. What is decentralization?


a. It refers to concentration of power and authority at the topmost level of the organization
b. It refers to the extent of centralization implemented in the organization
c. It is delegation of authority and decision making power to different levels in the organization
d. It is the degree to which rules and procedures govern roles and responsibilities of employees.
Ans: C
273. The degree to which rules and procedures govern the roles and responsibilities of employees is
referred to as ________
a. Bureaucracy
b. Span of control
c. Formalization
d. Centralization
Ans: C
274. What are the three most commonly used organizational designs?
i. simple structure
ii. Bureaucracy
iii. Matrix Structure
iv. Hierarchy
Only I, ii, and iii
Only I, ii and iv
Only I, iii and iv
Only ii, iii and iv
Ans: A
275. In what kind of organizational structure is decision-making power for the entire organization vested
in one person at the top?
a. Bureaucracy
b. Simple structure
c. Matrix structure
d. None of the above
Ans: B
276. Who among the following formulated the bureaucratic model of organizations for the first time?
a. Fred Luthans
b. Stephen Robbins
c. Herbert Simon
d. Max Weber
Ans: D
277. What are the disadvantages of Division of Labor?
a. Decrease in productivity and efficiency of an organization
b. Repetition of the same task gives rise to boredom, fatigue, and stress in employees
c. Division of labor segregates people into blue and while collar employees, and widens the gap between
them, both in the organization and the society.
d. Both b and c
Ans: D
278. Which of the following statements are definitely true about Hierarchy?
a. It discourages creativity and enterprenuership
b. Organizations adopting rigid hierarchical structure cannot promptly respond to dynamic changes in
market conditions
c. Organizations adopting rigid hierarchical structure promote dependency and creates Yes men.
d. All of the above
Ans: D
279. In which of the following organizations is upward communication nominal?

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a. Simple structured organization


b. Bureaucratic organization
c. Matrix organization
d. Both a and c
Ans: B
280. Which of the following alternatives is definitely not a disadvantage of Matrix Organization?
a. It leads to delayed decision making that affects the organization ability to compete in the market
b. It leads to duplication of activities resulting in cost increase
c. It involves the principle of unity of command, resulting in conflicts between managers.
d. It creates confusion and stress among individuals
Ans: A
281. Certain employees are most productive in mechanistic structures where there is a high degree of
work specialization. Who are these employees?
a. Employees who prefer tasks that require low level of skills
b. Employees who prefer tasks that can be performed mechanically
c. Employees who prefer tasks that facilitate personal growth and give individuals an opportunity to
utilize skills.
d. Both a and b
Ans: D
282. Some employees are able to work to their full potential only when they are under minimum
supervision. Such employees are most productive in which type of organizational structure?
a. In organizational structures where there is a narrow span of control
b. In organizations where the supervisor constantly guides subordinates
c. In organization structures where there is a wide span of control .
d. Both a and b
Ans: C
283.which of the following structures combines the features of project design with those of a functional
one ?
a. tall structure
b. simple structure
c. bureaucratic structure
d. matrix structure
Ans: d
284.________is popularly used in sectors characterized by a high degree of specialization along with
emphasis on projects and other specific goals such as R&D organizations ,consultancies ,advertising
,agencies ,hospitals, universities, etc
a. formalization
b. matrix structure
c. tall structure
d. bureaucratic structure
Ans: b
285. Robert kreitner defines what as a process of identifying and choosing alternative courses of
action in a manner appropriate to the demand of the situation .the act of choosing implies that
alternative courses of action must be weighed and weeded out?
a. divergent thinking
b. cognitive thinking
c. brainstorming
d. decision making
Ans: d
286. a new problem or decision-making situation which involves the development and evaluation of
alternatives without the aid of a decision rule is generally called a__________.

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a. choice activity
b. decision rationality
c. programmed decision
d. non-programmed decision
Ans: d
287. Decisions about how to market new product or service ,are an example of______.
a. . programmed decision
b. non-programmed decision
c. structured decision
d. both (a) and (c)
Ans: b
288. which of the following models of behavioral decision making proposes that decision makers operate
with bounded rationality ?
a. economic rationality model
b. simons bounded rationality model
c. judgmental heuristics and biases model
d. social model
Ans: b
289. In the ________ model of behavioral decision making that is drawn from psychology ,human
emotions and feelings are said to affect the decision making process of the decision makers .
a. judgmental heuristics and biases
b. social
c. simons bounded rationality
d. economic rationality
Ans: b
290.who among the following conducted a conformity experiment to demonstrate the impact of social
influence over human behavior and decision-making processes?
a. Herbert A.simon
b. fred luthans
c. Solomon asch
d. kahneman and Tversky
Ans: C
291. ___________is the inherent propensity of decision makers to commit resources to a course of action
that is certain to fail.
a. Escalation of commitment
b. organizational determinants
c. cognitive complexity
d. group polarization
Ans: A
292. the most common traditional participative technique is the __________.
a. management science technique
b. computerized decision support systems (DSS)
c. expert systems
d. Scanlon plan
Ans: d
293. what are the disadvantages of participative decision-making techniques?
a. develops a constrained set of adaptive strategies
b. delay the entire process of decision making
c. lead to dysfunctional conflicts due to inherent differences in opinions among individuals in a group
d. both (b) and (c)
Ans: D

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294. _________is a modern participative decision making technique that comprises a group of 10-12
volunteers who meet regularly to indentify ,analyze, and come up with solutions to quality related
and other problems in their area of responsibility .
a. quality circles
b. self-managed teams
c. scanlon plan
d. none of the above
Ans: a
295. according to feldman an individuals ability to develop innovative ,but relevant responses to given
questions or problems may be referred to as__________.
a. convergent thinking
b. divergent thinking
c. cognitive complexity
d. bounded rationality
Ans: b
296.What is Group Polarization?
a. It refers to the shift in attitudes of members of a group towards a more extreme state after having a
discussion among themselves when compared to pre-discussion attitudes.
b. It is the phenomenon when decisions are made by a cohesive group of individuals and their motivation
to appraise and appreciate alternative courses of action is overpowered by their desire for unanimity
of decision.
c. It is a technique that is widely used in the idea generation phase of a decision-making process and aims
at generating all the possible alternative courses of action.
d. None of the above
Ans: A
297. Every one intends to discuss a great deal about issues related to their work atmosphere. Of the topics
mentioned below, the wish to discuss is minimum with regard to ________ owing to varied reasons.
a. Job satisfaction
b. Job profile
c. Power issues
d. Training activities
Ans: C
298. Legitimate power emanates from the
a. Performance in the organization
b. Rewards showered
c. Hierarchical position in the organization
d. Belief of the subordinates
Ans: C
299. Referent power is dependent of which of the following attributes?
a. Position in the organizational hierarchy
b. Belief of the subordinate
c. Charisma of the superior and admiration of the same by the subordinates
d. It is a derivative of the domain expertise
Ans: C
300. Which of the following is identical to authority?
a. Referent power
b. Expert power
c. Legitimate power
d. Reward power
Ans: C

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