SMB101 WB

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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS
Participants in flexible learning programs have limitations on the nature of the

time they can spend on learning. Typically they are employed fully or partially,
pursuing higher studies or have other social and familial responsibilities.
Availability of time is a great constraint to these students.
To aid the participants, we have developed four unique learning tools as below:
 Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the student during preparation of examinations and
placement interviews
 Case Studies : Illustrate the concepts through real life experiences
 Workbook : Helps absorption of learning through questions based on real life nuggets
 PEP Notes : Sharing notes of practices and experiences in the Industry will help the student
to rightly perceive and get inspired to learn concepts at the cutting edge
application level.
Why are these needed?
 Adults learn differently from B. School or college going
students who spend long hours at campus.
 Enhancing analytical skills through application related learning
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kits trigger experiential learning
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 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success
What makes it relevant?

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 Practitioners can use their real life knowledge and skill to enhance learning skills.
 Immediate visualization of the practical dimension of the concept will offer a rich learning
experience.
How is it useful?
 Through these tools, the learning bytes are right sized for ease of learning for time challenged
participants.
 The content starts from practice and connect to precept making it easy to connect to industry
and retain.
 They can be connected to continuous assessment process of the academic program.
Where does this lead to?
 Helps stay motivated and connected.
 Easier to move ahead in the learning process.
 Will facilitate the student to complete the program earlier than
otherwise.
When is it useful?
 As and when you get 5 to 10 minutes you can read one of these and absorb and comprehend.
Spending more time is your choice.
 You can use the time in travel, waiting for meetings, lunch time, small breaks or at home
usefully.
Principles of
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Management
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Workbook
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© The ICFAI Foundation for Higher Education (IFHE), Hyderabad,
December, 2014. All rights reserved
No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or
transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without
prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad.
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Ref. No. PM-WB-IFHE – 122014
For any clarification regarding this book, the students may please write to The ICFAI Foundation for
Higher Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter
and page number.
While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation
for Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future
editions.
Our E-mail ID: cwfeedback@icfaiuniversity.in

INTRODUCTION
Participants in ICFAI University Programs are eager to learn more from practice. They realize
that application orientation can enhance their learning and subsequent usage of management
precepts and practices. Picking out the principle behind real world events is critical to this
learning, as also identifying the alternative/solution using the principle. Towards this end the
institution has reengineered the Workbook.
The Workbook is a set of questions which typically illustrate a real life context from
contemporary corporate happenings and then poses a question to the student for reflection. The
narration of question helps the reader to reinforce the concept and facilitates the student to
enhance his/her capabilities in analyzing and interpreting the conceptual frameworks.
The examples depicting the names of existing persons or companies are taken from news
clippings/ published articles from various public domain websites or website of respective
companies. Since live examples reinforce the understanding of the students, the possible
responses are connected to the concepts taught directly or indirectly. In many cases the
alternatives provided are choices in a work situation based on alternative approaches.
These questions provoke the learner to start thinking from the application side and connect to
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the knowledge that he will use to solve. Practitioners can connect better thereby improving the
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learning experience. This form of assessment improves learning while assessing whereas the
conventional form is more about assessment of learning.
The learning outcomes expected are:

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1. The examples are linked back to application of theoretical knowledge in the illustrated
real-time situation. This facilitates the student to develop analytical approach in similar
or related situations.
2. Application based approach which enhances absorption and retention significantly.
3. Exposure to the current incidences and situations in relation to important concepts of
the subject.
The Workbook format is also used for Assessment.

DETAILED CURRICULUM
UNIT 1: MANAGEMENT: AN OVERVIEW
Definition of Management- The Role of Management - Functions of Managers: Planning,

Organizing, Staffing, Leading, Controlling - Levels of Management: Top-level Managers,
Middle-level Managers, First-level Managers; Time spent in carrying out Managerial Functions
- Management Skills and Organizational Hierarchy: Technical Skills, Human Skills,
Conceptual and Design Skills - Approaches to Management
UNIT 2: EVOLUTION OF MANAGEMENT THOUGHT
Early Approaches to Management: Robert Owen: Human Resource Management Pioneer;

Charles Babbage: Investor and Management Scientist; Andrew Ure and Charles Dupin:
Management Education Pioneers; Henry Robinson Towne (1844-1924) - Classical Approach:
Scientific Management-Frederick Winslow Taylor, Frank and Lillian Gilbreth, Henry Laurence
Gantt, Limitations of Scientific Management; Administrative Theory-Henri Fayol, Bureaucratic
Management, Limitations of bureaucratic management and administrative theory - Behavioral
Approach: Mary Parker Follet: Focusing on Group Influences Elton Mayo : Focusing on
Human Relations-Illumination experiments, Relay assembly test room experiments, Interview
Phase, Bank wiring observation room experiments, contributions and criticism of Hawthorne
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studies Abraham Maslow: Focusing on Human Needs Douglas McGregor: Challenging
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Traditional Assumptions about Employees Chris Argyris: Matching Human and Organizational
Development, Model I and Model II organizations - Quantitative Approach: Management
Science, Operations Management, Management Information Systems - Modern Approaches to
Management: Systems Theory, Contingency Theory, Theory Z
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UNIT 3: SOCIAL AND ETHICAL RESPONSIBILITIES OF MANAGEMENT
Social Responsibilities of Management -Arguments for and against Social Responsibilities of

Business: Arguments for Social Responsibilities of Business: Change in public expectations,
Business is a part of society, Avoiding intervention by government, Balance of responsibility
and power, Impact of internal activities of the organization on the external environment,
Protecting shareholder interests, New avenues to create profits, favorable public image,
Endeavor to find new solutions, Best use of resources of a business, Prevention is better than
cure - Arguments against Social Responsibilities of Business: Opposes the principle of profit
maximization, Excessive costs, Weakened international balance of payments, Increase in the
firm’s power and influence, Lack of necessary skills among business people, Lack of
accountability to society, Lack of consensus on social involvement -Social Stakeholders:
Shareholders, Employees, Customers, Creditors and Suppliers, Society, Government -
Measuring Social Responsiveness: Contributions, Fund-raising, Volunteerism, Recycling,
Valuing diversity, direct corporate investment, Quality of work life, Attention to consumers,
Pollution control, Social audits - Managerial Ethics - Types of Managerial Ethics: Moral
management, Amoral management, Immoral management.
Factors that influence Ethical Behavior: stages of moral development, individual

characteristics, Structural variables, Organization’s culture, Issue intensity - Ethical Guidelines
for Managers: Obeying the law, Tell the truth, Uphold human dignity, Adhere to the golden
rule, Primum non-nocere, Allow room for participation, Always act when you have
responsibility - Mechanism for Ethical Management: Code of ethics, Ethics committee, Ethics
audits, Ethics training, Ethics hotline.
UNIT 4: FUNDAMENTALS OF PLANNING
Definitions of Planning - Nature of Planning -Significance of Planning: Focuses Attention on

Objectives, Offsets Uncertainty and Risk, Provides Sense of Direction, Increases
Organizational Effectiveness, Provides Efficiency in Operations, Ensures Better Coordination,
Facilitates Control, Encourages Innovation and Creativity, Facilitates Delegation - Types of
Plans: Plans based on Organizational Level: Strategic plans, Tactical plans, Operational plans,
Plans based on Frequency of Use: Single-use plans, Standing plans, Plans based on their Time-
Frame: Short-term plans, Intermediate-term plans, Long-term plans - Steps in the Planning
Process: Analyzing Opportunities, Establishing Objectives, Determining Planning Premises,
Identifying Alternatives, Evaluating Available Alternatives, Selecting the Most Appropriate
Alternative, Implementing the Plan, Reviewing the Plan - Prerequisites of Effective Planning:
Establishing the Right Climate for Planning, Clear and Specific Objectives, Planning Premises,
Initiative at the Top Level, Participation in Planning Process, Communication of Planning
Process, Integrating Long-Term and Short-Term Plans, An Open Systems Approach,
Management Information System - Limitations of Planning: Lack of Accurate Information,
Time consuming Process, Expensive, Inflexibility, Resistance to Change, Environmental
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Constraints, Lack of Ability and Commitment, False Sense of Security, Reluctance to Establish
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Goals
UNIT 5: MANAGEMENT BY OBJECTIVES
Nature of Objectives: Hierarchy of Objectives, The Process of Forming Objectives and

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Organizational Hierarchy, A Network of Objectives, Multiplicity of Objectives - Concepts of

MBO: Early Impetus to MBO, Emphasis on Performance Appraisal, Inclusion of Long-term
Planning in the MBO Process, The Systems Approach to MBO - The Process of MBO:
Developing overall organizational goals, Establishing specific goals for various departments,
subunits and individuals, Formulating action plans, Implementing and maintaining self-control,
Periodic Review, Performance appraisal - Benefits of MBO: Better Management, Clarity in
Organizational Action, Encouragement of Personal Commitment, Personnel Satisfaction, Basis
for Organizational Change, Development of Effective Controls - Limitations of MBO: Failure
to Teach MBO Philosophy, Failure to Give Guidelines to Goal Setters, Difficulty in Goad-
setting, Emphasis on Short-term Goals, Inflexibility, Other Dangers - Making MBO Effective:
Top Management Support, Training for MBO, Formulating Clear Objectives, Effective
Feedback, Encouraging Participation
UNIT 6: STRATEGIES, POLICIES AND PLANNING PREMISES
Nature and Purpose of Strategies and Policies: The Key Function, The Guide, The Need for
Operational Planning, The Effect on all Areas of Management - The Three Levels of Strategy:
Corporate-Level Strategy : The values-based approach, The corporate portfolio approach, The
BCG Matrix; Business-Level Strategy, Functional-Level Strategy - Strategic Planning:
Characteristics of Strategic Planning, Significance of Strategic Planning, Limitations of
Strategic Planning - Strategic Planning Process: Defining the Mission of the Organization,
Drawing up Organizational Objectives, Assessing Organizational Resources, Risks and
Opportunities, Formulating Strategy, Implementing Strategy, Monitoring and Adapting
Strategic Plans; Strategic Planning Vs. Operational Planning - Competitive Analysis in Strategy
Formulation: Environmental Assessment-Porter’s five competitive forces model,
Organizational Assessment-SWOT Analysis - Major Kinds of Strategies and Policies: Growth,
Finance, Organization, Personnel, Public relations, marketing - Porter’s Competitive Strategies:
Overall Cost Leadership, Differentiation, Focus - Strategy Implementation: Carrying Out
Strategic Plans – Technology, Human resources, Reward systems , Decision processes,
Structure; Maintaining Strategic Control - Effective Implementation of Strategy:
Communicating Strategies to all Key Decision-making Managers, Developing and
Communicating Planning Premises, Developing an Appropriate Fit between Organizational
Structure and Planning Needs, Ensuring that Action Plans Contribute to and Reflect Major
Objectives and Strategies, Developing Contingency Strategies and Programs, Reviewing
Strategies Regularly, Continuing to Emphasize Planning and Implementing Strategy, Creating a
Proper Organizational Climate - Planning Premises: Planning Premises Vs. Future
Expectations, Effective Premising – Selection of premises that affect the plans of the
organization, Development of alternative premises for contingency planning, Verification of
consistency of premises, Communication of the premises
UNIT 7: MANAGERIAL DECISION MAKING
Significance and Limitations of Rational Decision-making - Managers as Decision-makers: The

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Rational Model, Non-Rational Models – Satisficing model, Incremental model, Garbage-can
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model - Decision-making Process: Identifying the Problem, Identifying Resources and
Constraints, Generating Alternative Solutions, Evaluating Alternatives, Selecting an
Alternative, Implementing the Decision, Monitoring the Decision - Types of Managerial
Decisions: Programmed Decisions, Non-programmed Decisions - Decision-making under
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Certainty, Risk and Uncertainty: Decision-making under Certainty, Decision-making under

Risk, Decision-making under Uncertainty, Risk analysis, Preference or utility theory - The
Systems Approach to Decision-making: Management Information System, Decision Support
System - Group Decision-making: Forms of Group Decision-making – Interacting groups,
Delphi groups, Nominal groups
-Decision-making Techniques: Marginal Analysis, Financial Analysis, Ratio Analysis, Break-

even Analysis, Operation Research Techniques – Linear Programming, Queuing or waiting-line
method, Game theory, Simulation, Decision-tree
UNIT 8: FUNDAMENTALS OF ORGANIZING
Definitions of Organizing - Benefits of Organizing - Traditional Perspectives on Organizing:

Four principles from Fayol and Taylor’s theories of organizing: Unity of command, Well-
defined hierarchy of authority, Authority at par with responsibility, Downward delegation of
Authority and not Responsibility; Challenges to the Traditional View of Organizations –
Bottom-up authority, Environmental complexity and unce-rtainty - Closed System Vs. Open
System: Closed System view of Organizations, Open System view of Organizations – Daniel
Katz and Robert Kahn’s Open-system characteristics, Developing an open system model -
Formal Vs. Informal Organization - The Process of Organization: The Logic of Organizing,
Some Misconceptions - Bases for Departmentation: Departmentation by Simple Numbers, by
Time, by Process or Equipment - Choosing the Pattern of Departmentation.
UNIT 9: STRATEGIC ORGANIZATION DESIGN
Span of Management: Tall versus Flat Structure, Factors Determining an Effective Span –
Trained subordinates, Clarity of delegation of authority, Clarity of plans, Use of objective
standards, Rate of change, Communication techniques, Amount of personal contact needed,
Organizational levels, Use of staff assistance, Supervision by others, Other factors - Authority
Defined - Power: Bases of Power: Legitimate Power, Expert Power, Referent Power, Reward
Power, Coercive Power - Line and Staff Relationships: Concept of Line and Staff, Functional
Authority, Line and Staff Conflicts – Viewpoint of line managers, Viewpoint of staff managers,
Nature of Line and Staff Relationship, Avoidance of Line and Staff Conflict - Centralization
Versus Decentralization: Factors responsible for relative centralization and decentralization in
an organization: History of an Organization, Availability of Competent Managers, Size of the
Organization, Geographical Dispersion, Complexity of Tasks, Time Frame of Decisions,
Importance of a Decision, Planning and Control Procedures, View of Subordinates,
Environmental Influences - Delegation of Authority: Factors Affecting Delegation of Authority
– The delegator’s aspect, The delegant’s aspect, The organizational aspect - Balance: The Key
to Decentralization
UNIT 10: STRATEGIC ORGANIZATION STRUCTURE
Ensuring Understanding of Organizational Structure: Teaching the Nature of the Organizations’

Structure, recognizing the Importance of the Informal Organization and the Grapevine -
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Designing Organizational Structures: An Overview: Which Comes First: Strategy or Structure?,
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Factors Influencing Organization Design - Major Structural Alternatives: Advantages,
Disadvantages and Uses of Functional Structure, Divisional Structure – Product divisions,
Geographic divisions, Customer divisions, Hybrid Structure, Matrix Structure - Strategic
Business Units
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UNIT 11: EFFECTIVE ORGANIZING AND ORGANIZATIONAL CULTURE
Prerequisites for Effective Organizing - Avoiding Mistakes in Organizing by Planning:

Planning for the Ideal, Modification for Human Factor, Advantages of Organization Planning -
Avoiding Organizational Inflexibility: Signs of Inflexibility, Avoiding Inflexibility through
Reorganization, The Need for Readjustment and Changes - Avoiding Conflict by Clarification:
Organization Charts, Position Descriptions -Organizational Culture: Meaning, Significance and
Characteristics of Organizational Culture, The organizational socialization process and steps -
organizational Environment for Entrepreneuring and Intrapreneuring
UNIT 12: HUMAN RESOURCE MANAGEMENT AND STAFFING
Human Resource Management: An Overview :Human Resource Planning, Forecasting

manpower demand, Forecasting manpower supply-Internal labor supply and External labor
supply, Human resource actions, Staffing , Training and Development, Performance Appraisal,
Compensation - Recruitment: Sources of Recruitment, The Recruitment Process - Selection:
The Selection Process - Socialization Process of New Employees.
UNIT 13: PERFORMANCE APPRAISAL AND CAREER STRATEGY
Significance of Appraisal - Informal vs. Formal Appraisals - Performance Rating Methods:

Graphic Rating Method, Behaviourally Anchored Rating Scale (BARS) - Criteria for
Appraising Managers: Appraising Manages against Verifiable Objectives, Appraising
Managers as Managers - Formulating Career Strategy: Preparation of a Personal Profile,
Development of Long-range Personal and Professional Goals, Analysis of Environment Threats
and Opportunities, Analysis of Personal Strengths and Weaknesses, Development of Strategic
Career Alternative, Consistency Testing and Strategic Choices, Development of Short-range
Career Objectives and Action Plans, Development of Contingency Plans, Implementation of a
Career Plan, Monitoring Progress
UNIT 14: ORGANIZATIONAL CHANGE AND ORGANIZATIONAL

DEVELOPMENT
Organizational Change: Factors that Lead to Organizational Change, Sources of Resistance to

Change – Individual and Organizational resistance, Change Process - Planned Change through
Organization Development: The objectives of OD - Organizational Development Process:
Diagnosis, Intervention – Process consultation, Team building, Third-party intervention,
Survey Feedback, Technostructural activities, Skill development, Organizational culture
change; Evaluation - Approaches to Manager Development: On-the-Job Training, Off-the-Job
Training - Organizational Conflict: Sources of Conflict, Managing Conflict
UNIT 15: MANAGING AND THE HUMAN FACTOR
The Nature of People: Individual Difference, The Importance of Personal Dignity, Considering
the Whole Person, Multiplicity of Roles - Behavioral Models: Edgar H. Schein’s Model of the
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Complex Person, Lyman Porter’s Model of Human Nature, McGregor’s Theory X and Theory
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Y, Three Managerial Models by Raymon E. Miles -Managerial Creativity: The Creative
Process, Techniques to enhance Creativity; The Creative Manager
UNIT 16: MOTIVATING EMPLOYEES FOR JOB PERFORMANCE

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Definitions and Meaning of Motivation - Classification of Motivation Theories: Content

Theories of Motivation – Maslow’s needs hierarchy theory, Herzberg’s two-factor theory,
McClelland’s needs theory, Alderfer’s ERG theory; Process Theories of Motivation – Vroom’s
expectancy theory, The Porter-Lawler model, Equity theory of J Stacy -Motivational
Techniques: Rewards, Participation, Quality of Work Life (QWL), Job Enrichment - A Systems
and Contingency Approach to Motivation
UNIT 17: LEADERSHIP
Definition and Meaning of Leadership -Key Elements of Leadership -Leadership Theories:

Trait Theory of Leadership, Behavioral Theories, Likert’s Four Systems of Management, The
Managerial Grid, Situational or Contingency Theories, Transformational Leadership Theory
UNIT 18: MANAGING COMUNICATIONS
Definitions of Communication - Significance of Communication in Organizations -

Communication Process -Communication Flows in an Organization: Downward, Upward,
Crosswise Communication - Barriers to Communication: Lack of Planning, Badly Expressed
Messages, Faulty Translations, Unclarified Assumptions, Semantic Distortion, Loss by
Transmission and Poor Retention, Communication Barriers in the International Environment,
Inattention and Premature Evaluation, Impersonal Communication, Insufficient Adjustment
Period, Information Overload, Lack of Trust in the Communicator, Other Communication
Barriers - Gateways to Effective Communication: Interpersonal Trust, Effective Listening,
Proper Feedback, Non-verbal Cues, Non-directive Counseling
UNIT 19: THE CONTROL FUNCTION
Planning and Controlling - Importance of Controlling: Coping with Uncertainty, Detecting

Irregularities, Identifying Opportunities, Handling Complex Situations, Decentralizing
Authority, Minimizing Costs - Levels of Control: Strategic Control, Tactical Control,
Operational Control - Basic Control Process: Determining Areas to Control, Establishing
Standards, Measuring Performance, Comparing Performance against Standards, Recognizing
Good or Positive Performance, Taking Corrective Action when Necessary, Adjusting Standards
and Measures when Necessary - Direct Control vs Preventive Control - Types of Control:
Control Based on Timing, Cybernetic and Non-cybernetic control - Requirements for Effective
Controls - The Certified Management Audit and Enterprise Self-Audit
UNIT 20: CONTROL TECHNIQUES
Major Control Systems: Managerial level – Types of control system; Nature of timing – Types
of control system - Financial Control: Financial Statements, Ratio Analysis - Budgetary
Control: Responsibility Centers, Standard cost centers, Discretionary expense centers, Revenue
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centers Profit centers, Investment centers, Uses of responsibility centers - Quality Control:
Quality Circles, Total Quality Management (TQM) - Inventory Control
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UNIT 21: PRODUCTIVITY AND OPERATIONS MANAGEMENT
Production and Productivity - Productivity Problems and Measurement - Operations Research,

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Production & Operations Management: Operations Management and its Importance,

Operations Research for Planning, Controlling and Improving Productivity, The essentials of
operations research, operations research methodology - Some Operations Research Techniques:
Linear Programming, Inventory Control, Significance of Inventory, Costs of Inventory,
Economic Order Quantity, Just-in-time inventory system, Kanban, Distribution logistics, Time-
event Networks, Value Engineering ,Work Simplification - Limitations of Operations
Research: Magnitude of Computation, Gap between Managers and Operations Research, Lack
of Quantification and Involvement of Qualitative Factors
UNIT 22: MANAGEMENT INFORMATION SYSTEMS
Management Information: Meaning Attributes and Information needs of Managers -

Components of an Information System: Hardware, Software, People, Data, Procedures - Types
of Information Systems: Transaction Processing Systems, Office Automation Systems,
Decision Support Systems, Executive Support Systems - Management Information Systems:
Evolution of MIS, Computers and MIS, Advantages of MIS, Difference between MIS and DSS.
CONTENTS
Multiple Choice Questions 1
Unit 1 – Management: An Overview 1
Unit 2 – Evolution of Management Thought 3
Unit 3 – Social and Ethical Responsibilities of Management 5
Unit 4 – Fundamentals of Planning 7
Unit 5 – Management by Objectives 9
Unit 6 – Strategies, Policies and Planning Premises 11
Unit 7 – Managerial Decision Making 13
Unit 8 – Fundamentals of Organizing 15
Unit 9 – Strategic Organization Design 17
Unit 10 – Strategic Organization Structure 19
Unit 11 – Effective Organizing and Organizational Culture 21
Unit 12 – Human Resource Management and Staffing 23
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Unit 13 – Performance Appraisal and Career Strategy 25
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Unit 14 – Organizational Change and Organization Development 27
Unit 15 – Managing and the Human Factor 29
Unit 16 – Motivating Employees for Job Performance 31
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Unit 17 – Leadership 33
Unit 18 – Managing Communications 35
Unit 19 – The Control Function 37
Unit 20 – Control Techniques 39
Unit 21 – Productivity and Operations Management 41
Unit 22 – Managerment Information Systems 43
Multiple Choice – Answers and Explanations 45
MULTIPLE CHOICE QUESTIONS
UNIT 1 – MANAGEMENT: AN OVERVIEW
1. In a management quiz, the quiz master asked as to who has defined management as “the process
of designing and maintaining an environment in which individuals, working together in groups,
efficiently accomplish selected aims.” The correct answer is__________________.
a. Harold Koontz b. Heinz Weihrich
c. Henry Mintzberz d. a&b
e. a&c
2. On observing a drop in its first quarter earnings, a manager in a mobile manufacturing industry
wanted employees to pool ideas for innovation. The employees came up with an idea of
developing new apps in mobile where it had to get the permission from government officials to
import some of the chips from a foreign company. Then the manager assured them to get the same
talking to government officials. Name the decisional roles played by the manager.
a. Entrepreneurial role b. Disturbance handler
c. Resource allocator d. a&c
e. a&b
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3. Ritesh had a plan to start cab facility dealing with wide range of cars from normal to luxuries. His
objective was to provide the cheapest cab services with maximum comfort for the passengers. He
then selected the cities to locate offices and recruited people to manage those offices. He then
delegated the duties and responsibilities to the staff and took charge of supervising the overall
branches. What are the different functions Ritesh has performed?
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a. Planning &Organizing b. Staffing

c. Leading d. Controlling
e. All the above
4. Karthik as a supervisor has to manage the day to day tasks in a manufacturing division. He also
has to check the performance of the staff and ensure implementation of operational plans
according to the organizational requirements. Identify the managerial level that Karthik fits into.
a. Top-level managers b. Middle-level managers
c. First-level managers d. Second-level managers
e. None of the above
5. The top-level managers spend time in planning and organizing and first-level supervisors spend
time in communication. In addition to these there are many factors. Name the factor which is
similar at all the hierarchical levels in management.
a. Controlling b. Supervising
c. Operating d. All the above
6. Karan is Head-Accounts manager in a construction company. He co-ordinates with different site
supervisors and accumulates all the details of the accounts from different construction sites and
branches periodically, consolidates and reports the details to his superior. He prepares the balance
sheet and gets it audited by internal and external auditors as well. What are the different skills that
are demonstrated by Karan?
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Principles of Management
a. Technical skills b. Human skills

c. Conceptual and Design skills d. a&b
e. a&c
7. Manisha is a team leader in a software company. In order to meet her project deadlines, she
conducts meetings regularly, checks the progress status and motivates her team members
accordingly. She also helps them to tackle the problems encountered in the process. Identify the
skill exhibited by her to get her work done.
a. Technical skills b. Human skills
c. Conceptual skills d. Design skills
e. All the above
8. A marketing company proposed to combine its marketing and sales department to foster
coordination and improve sales. This decision has changed the job profiles of all the sales and
marketing team and the HR manager had to communicate their new profiles. Accordingly,
changes were made in the organizational structure and hierarchy in the marketing department.
Identify the management approach applied in the case.
a. The Interpersonal Behavior Approach b. The Empirical or Case Approach
c. The Operational Approach d. The McKinsey’s 7-S Framework
e. The Mathematical or “Management Science” approach
9. When a supermarket found that long queues are obstructing the billing staff to concentrate, it has
planned to increase billing stations to reduce the crowd. The management collected information
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on number of customers arriving at each station at each branch and used statistical methods to
come out with number of billing stations to be increased in each branch. Name the management
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approach used in the case in decision making.
a. The Interpersonal Behavior Approach b. The Management Science Approach
c. The Cooperative Social Systems Approach d. The Decision Theory Approach
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10. A Supervisor observed that an employee was coming late even after several reminders and as per
the company’s rule he needs to be dismissed. But on enquiry, the manager found that his mother
was seriously ill. He understood the circumstances and counseled him to make alternate
arrangements. Find out the management approach that manager has used.
a. The Contingency or situational Approach b. The Operational Approach
c. The Socio-technical Systems Approach d. The Empirical or Case Approach
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Multiple Choice Questions
UNIT 2 – EVOLUTION OF MANAGEMENT THOUGHT
11. Management students in a class were being taught about the evolution of management. A student
in the class raised doubt as to who was the first to contribute to the study of management concept.
Identify the person from the following:
a. Charles Babbage b. Robert Owen
c. Henry Robinson Towne d. Yale and Towne
e. Andrew Ure
12. In a quiz competition at a Management School, Quiz master asked to name the person who is
widely known as the ‘Father of modern computing” and also a pioneer in the field of
management. He is the person who invented the world’s first mechanical calculator and the
“analytical engine”. The student’s answer was
a. Henry Laurence Gantt b. Frank and Lillian Gilbreth
c. Andrew Ure and Charles Dupin d. Robert Owen
e. Charles Babbage
13. Harry was sharing his job experiences with one of his friends and was explaining how their
management deals with every issue in a scientific manner and provides the required support to the
employees. He was reminded of F.W. Taylor who proposed the scientific approach for the first
time. Immediately his friend argued that the first thought of scientific management was not from
Taylor and was by someone who inspired Taylor. Identify the person from the following.
a. Henry Robinson Towne
Ib. Robert Owen
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c. Charles Babbage d. Mary
14. A supervisor in a company doubtful of completing the production schedule on time wanted to
plan a strategy that could assure completion. He then decided to check and reduce the time taken
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to complete each task without compromising with quality to set a standard. He also planned to
reward the worker who meets the established standards of performance set by the management.
Name the school of thought that inspired him
a. Scientific Management b. Administrative theory
c. Bureaucratic Management d. Quantitative approach
e. All the above
15. In an Operation Management classroom, the professor was explaining about the latest Program
Evaluation and Review Techniques (PERT) that is used as production control technique. A
student in the classroom had a doubt about the earlier techniques of control before the PERT
model was introduced. Pick up the answer from the following.
a. Micromotion study b. Time-and-motion study
c. Gantt Chart d. Piece-rate incentive system
e. Gantt bars
16. A parent interested to check their children’s progress, went to their school one day. She had to
comply with all the rules and regulations of the school to meet the concerned authorities and there
was a line of hierarchy before she met the principal to clarify her doubts. Name the kind of
administration followed by the school.
a. Scientific management b. Bureaucratic management
c. Social management d. Administrative management
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17. Today, organizations are searching for multitasking individuals to meet the challenges of current
scenario and to encourage employees perform a variety of jobs in organization. There also exists a
conventional theory that strongly supports this modern practice. Name the person who proposed
the conventional theory from the following:
a. Mary Parker Follet: Focusing on Group influences
b. Elton Mayo: Focusing on Human Relations
c. Abraham Maslow: Focusing on Human Needs
d. Douglas McGregor
e. Chris Argyris: Matching Human and Organizational Development
18. An organization in its problem diagnosis found that its current manual data management system
was not effective and need an effective one. They searched for the latest technology and
implemented it where data collection, analysis and reports were easily accessible and manageable
to the managers. What is that management technique we are talking about?
a. Management Information Systems b. Operations Management
c. Management Science d. Scientific Management
e. Management science theory
19. Consequent to increased employee turnover, an organization decided to provide job security and
welfare measures for its employees. In addition, to reduce their boredom and to offer promotions,
training sessions were planned. This has reduced the labor turnover and absenteeism and
increased productivity. Name the theory applied in the case.
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a. Theory Y b. Systems theory
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c. Administrative theory d. Theory Z
e. Contingency theory
20. Gautam, a general manager in a manufacturing company tried to implement a strategy that was
successful in solving a problem. He tried to implement the same strategy to solve a similar
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problem in another department but failed. From this experience he has learnt that there is no
single principle to manage all the situations in an organization. Extract the important theory that
he has learnt in the case from the following.
a. Systems Theory b. Contingency Theory
c. Theory A d. Theory Z
e. Theory X
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UNIT 3 – SOCIAL AND ETHICAL RESPONSIBILITIES OF MANAGEMENT
21. The K. C. Mahindra Education Trust, a part of Mahindra & Mahindra started a number of
education plans to change the lives of worthy students. More than 7.5 crore were sanctioned in the
form of grants, loans and scholarships to encourage education in India. It has about 3,300 children
in its project called ‘The Nanhi Kali’. To reach the neglected children in rural areas, it has plans to
increase the number to 10,000 in the next two years. Name the responsibility it is taking up.
a. Political responsibility b. Social responsibility
c. Management responsibility d. Organization responsibility
e. Economical responsibility
22. Vodafone, as a part of its corporate social responsibility is trying to improve the efficiency in
energy consumption and to recycle its network equipment waste by 95%. Thus, it guarantees to
reduce their carbon dioxide emissions by 2020. In what way does this contribute to society?
a. Avoiding intervention by government b. Protecting shareholder interests
c. New avenues to create profits d. Balance of responsibility and power
23. Haagen-Dazs is an ice cream brand from New York. A micro-blog was created by this company
to enlighten tweeters about the significance of honeybees. Through its “save the honeybee”
campaign, it created awareness on the consequences of reducing bee population. It informed that
decline in bee population could reduce the global production and disappearance of several plant
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species. It also alerted that when bees die out, Haagen-Dazs may just go out of business. What
kind of social responsibility is this?
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a. Endeavor to find new solutions b. Best use of resources of a business
c. Favorable public image d. Balance of responsibility and power
e. Change in public expectations
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24. McDonald’s sets its own standards on how suppliers have to take care of its employees. It also
started a program called “Flagship Farms Initiative (FFI)” through which it promotes the creative
and ethical farming practices. All these depict the social responsible practices of McDonald’s in
its supply chain strategy. Suppliers being one among the six major interest groups for
organizations, what are the other groups interested?
a. Shareholders b. Employees
c. Government d. Society
e. All the above
25. Infosys Technologies has a CSR foundation. It conducts training programmes and promotes
computer education in village schools. Name the category of social responsiveness Infosys has
demonstrated.
a. Fund-raising b. Recycling
c. Direct corporate investment d. Contributions
e. Quality of work life
26. Hindustan Zinc Limited reviews its monitoring systems for environmental safety at its mining
units. It maintains eco-friendly environment by building control plants for dust emission, mine
dumps for solid waste disposal, waste water treatment systems and more. Which category of
social responsiveness are we talking about?
a. Contributions b. Recycling
c. Attention to consumers d. Pollution control
e. Valuing diversity
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27. Apple Inc. is the largest US-based technology firm known for its innovative products. At the same
time, it is also known for maintaining secrecy to an extent that secrecy has become one of the key
fundamentals of its corporate culture. In 2009, it was blamed for not disclosing the crucial
information regarding CEO Steve Job’s health to its shareholders. It also had to face criticism for
maintaining the information as a secret. This depicts the organization’s ____________.
a. Social responsibility b. Social audits
c. Code of conduct d. Social adaptability
e. Managerial ethics
28. Exxon Mobil’s main products are petroleum and gasoline owning refineries to drill and pump
crude oil all across the world. In 2007, Exxon Mobil was blamed for misguiding the public
claiming that it was concerned about the global warming and taking measures to reduce their
carbon footprint through commercial releases. They have removed these commercials
immediately when questions arose from the advertisements. What is the factor that influenced the
ethical behavior in the case?
a. Structural variable b. Issue intensity
c. Organization’s culture d. Individual characteristics
29. Clinical trials are essential for the development of medical science and advancement in
therapeutics. But protecting the human rights and human safety plays a primary role in clinical
trials. In India, the regulatory agency that oversees and approves clinical trials is the CDSCO
(Central Drugs Standard Control Organization). Who is responsible for overseeing their
activities?
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a. Ethics Committee b. Ethics audits
c. Code of ethics d. Ethics training
30. Adidas always looks out for innovative ways to connect directly with its suppliers/ workers. In
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2012, the Adidas group wanted to test mobile phone communication at one of the company’s
main footwear suppliers in Indonesia and started sending SMS to its workers. Through which
channel, is Adidas trying to get connected with its suppliers?
a. Ethics training b. Ethics hotline
c. Ethics committee d. Ethics audit
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UNIT 4 – FUNDAMENTALS OF PLANNING
31. The CEO and Board members of a Food Products company set goals to increase its sales by
implementing new flavors of chips from the next quarter. Based on these goals, the middle level
managers started collecting the customer tastes through market research team and subsequently
decided flavors with the help of top level executives. Instructions were given to the operating
supervisors to make necessary arrangement for the production of new flavored chips. Which
nature of planning is depicted in this case?
a. Planning is goal-oriented b. Planning is all-pervasive
c. Planning is forward-looking d. Planning is an integrated process
e. All the above
32. Amit had a plan to supply building materials and was searching for the right place. He located a
place where a group of real estate ventures were approved by the government. He chose to start
his business there anticipating huge demand for the material supplies when the ventures get
started. Where can we fit the situation in significance of planning?
a. Planning provides sense of direction

b. Planning increases organizational effectiveness
c. Planning provides efficiency in operations
d. Planning offsets uncertainty and risk
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33. An FMCG organization’s goal was to exceed the sales target of the last quarter. Accordingly a
meeting was conducted with all the department heads. The marketing manager was assigned the
responsibility to ensure timely supply of goods to the sales executives coordinating with the
production manager. In turn production manager was required to produce goods on time
coordinating with finance department. This case depicts the significance of planning in_______.
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a. Facilitating delegation b. Ensuring better coordination

c. Encouraging innovation and creativity d. Facilitating control
e. Providing efficiency in operations
34. To gain competitive advantage through quality products, top management of an Electric appliance
organization decided to implement Total Quality Management in the entire organizational
operations and processes within next five years. The Board of directors, CEO and heads of the
departments passed a resolution to implement the same. Name the type of plan discussed in the
case.
a. Strategic plans b. Tactical plans
c. Operational plans d. Single-use plans
e. Standing plans
35. After Chanda Kochhar joined ICICI Bank, organization started rethinking. Organization decided
not to hire former employees, not to sack employees even during recession, underperforming
employees were declared ineligible to increments, decided to continue giving medical support till
60 years of age even after leaving the organization to boost up the morale and improve the
performance of employees. Which aspect of the organization has got changed?
a. Budgets b. Policies
c. Programs d. Procedures
e. Projects
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36. An organization planned to open a branch in foreign country within two years. It has instructed its
executives to survey market potentials in the first year and select the location and organize
resources the next year. Name the type of plan based on the time-frame.
a. Short-term plan b. Long-term plans
c. Intermediate-term plan d. Very short-term plan
37. Exploring the craze for eco-friendly plastic vessels, Nidhi wanted to start one such manufacturing
unit. Her objective was to deliver goods as per customers’ tastes at lowest price. She has selected
three different places to establish the plant. While one location was near to the finished goods
supplies, the other location was near to raw material supply. The third location was suitable for
the availability of cheap labor. She started analyzing all the three alternatives to choose the best
one. Where exactly she is in the process of planning?
a. Analyzing opportunities b. Determining planning premises
c. Establishing objectives d. Evaluating available alternatives
e. Identifying alternatives
38. A Bank manager at a branch decided to improve its operations to foster the process and reduce the
service time. He collected suggestions of customers through suggestion box and questionnaires.
He requested his employees to suggest effective ways to improve the performance of bank during
a meeting. Consequently, he came up with an innovative and effective plan that could achieve his
objective. Identify the systems approach that helped him in effective planning.
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a. Management Information System b. An Open Systems Approach
c. Planning Premises d. Closed systems approach
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39. Sirish planned to open a computer training institute to earn lump sum by offering latest
technologies expected to be in the market shortly . In order to start the program, he started
collecting information on the technology and best personnel available to teach those technologies.
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It took him almost six months to complete the activity. By then many institutes emerged in the
area competing with him. Name the planning limitation that shattered his expectations.
a. Lack of accurate information b. Inflexibility
c. Resistance to change d. Environmental constraints
e. Time consuming process
40. In a manufacturing company, the supervisor passed a circular asking employee to work two hours
extra a day to complete the production schedule by next week. Workers refused to do so as it was
against their agreement with the management and the change was without their consent. What do
you call this situation in an organization?
a. False sense of security b. Reluctance to establish goals
c. Lack of ability and commitment d. Resistance to change
e. Environmental constraints
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UNIT 5 – MANAGEMENT BY OBJECTIVES
41. Karan, a production manager of AGK group attended a meeting with CEO along with the heads
of other departments to discuss targets for the coming assessment year. She was worried about the
target assigned as the productivity level of employees was continuously falling. She then called
her team to convey the target and invite suggestions and set individual targets. They decided to
follow up every week with feedback. Finally they could meet the target. Identify the type of
management followed by her.
a. Management by objectives b. Management by exception
c. Organization by objectives d. Organization by Exception
e. Management by Goals
42. Karthik is a CEO of Creative Minds Ad agency. One day he called his manager and informed
about his goals for the next year and asked him to set objectives and means to achieve those
objectives discussing with the employees. Name the hierarchy of objectives.
a. Top-down approach b. Vertical approach
c. Bottom-up approach d. Diagonal approach
43. Organizations would first develop overall goals, next establish specific goals for various
departments, subunits and individuals. Then it would formulate action plans, implement and
maintain self-control through periodical reviews and appraises. These statements are explaining
about the __________.
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a. MBO characteristics b. MBO process
c. Benefits of MBO d. Limitations of MBO
e. Concepts of MBO
44. In MBO program, employees are encouraged to set their own objectives and asked to show
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__________________ to achieve the goals.

a. Satisfaction b. Motivation
c. Management d. Commitment
e. Clarity
45. The marketing VP of XYZ company observed that national sales went down by 9% for the last
quarter. When the president demanded a remedy, fearing to lose his job, he instantly increased
national advertising which improved sales for that moment. But while doing so he ignored its
effect on the long term. Identify the area focused by the VP in the case.
a. Failure to teach MBO philosophy b. Inflexibility
c. Failure to give guidelines to goal setters d. Difficulty in goal-setting
e. Emphasis on short-term goals
46. Mr. Bansal, manager of an online business first set organizational goals discussing with his
subordinates and employees. Later, he set goals for individuals in each department and formulated
action plans. He extended all his support required by his employees during the process. He gave
them time for six months and reviewed the work on the last day. But to his surprise, he saw some
gaps in the performances. If followed, which step could have helped him in making his MBO
process effective?
a. Top management support b. Training for MBO
c. Formulating clear objectives d. Encouraging participation
e. Effective feedback
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47. Bhargav, working as head of a super market was given a target to increase the number of
customers by his superior under MBO process. On the day of performance review, his superior
found that there was only a marginal increase as against the set target. The superior being
dissatisfied, asked Bhargav to give an explanation and cut his incentives for that quarter. What
aspect of the MBO helped supervisor in taking the action?
a. Basis for organizational change b. Encouragement of Personal commitment
c. Development of effective controls d. Better managing
e. Clarity in organizational action
48. Manish, a team leader in a software company first set individual goals to all his team members.
He then started reviewing the performance periodically. After two weeks, he found that one of his
team members Mr. Nisheeth was not committed due to which the overall team’s performance was
lagging behind. Mr. Manish could overcome this situation by_______.
a. Encouraging participation b. Training for MBO
c. Formulating clear objectives d. Effective feedback
49. Karthik has joined newly as an executive in a multinational company. He was asked to prepare
list of objectives along with his subordinates for the next assessment year. He was surprised as to
why his subordinates should be included in setting objectives as his earlier boss never asked him
to do so. On inquiring his senior manager, he was told that organization practices MBO. Identify
the limitation factor of MBO that confused Karthik in the new office.
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a. Emphasizing on short-term goals b. Failing to teach MBO philosophy
c. Inflexibility d. Failing to teach goal setting
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50. The MBO process should receive continuous support from __________managers for its
successful implementation.
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a. Top-level b. Middle-level
c. Low-level d. First-level
e. Last-level
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UNIT 6 – STRATEGIES, POLICIES AND PLANNING PREMISES
51. Mary, CEO of a confectionery planned to break into a new overseas market. She started
developing relationships with overseas suppliers, identified network of retail outlets, conducted
market research to identify consumer needs and finally found location for overseas sales team
head quarter. All these activities reflect the organizations’________.
a. Policy b. Goal
c. Guidelines d. Strategy
e. All the above
52. A woman shoe company set its mission statement as “we put shoes on the feet of women who are
style-conscious while insisting on health and ease”. Accordingly, the marketing manager
suggested advertising the company’s shoes in high-fashion health stores for the first time. How
could the marketing manager come up with such an idea?
a. Giving direction to organizing b. Giving direction to planning
c. Giving direction to staffing d. Giving directions to operational planning
53. Nestle company introduced its products in Pakistan with full advertising on all media in 2012. It
involved media, advertising and campaigns for promotions. The company’s financials for the first
quarter ending March 31, 2012 showed a profit of Rs.1.66 billion. They evaluated their business
portfolios (Mineral water, Milkpack, Noodles and chocolates/juices) in two dimensions i.e.
market growth rate and relative market share. The results were displayed as follows:
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Market Growth Relative
Product Name SBU
Rate Market Share
Mineral Water Star 85% 89%
Milkpack Cash cow 55% 65%
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Noodles Question Mark 75% 44%

Chocolates/Juices Dog 40% 38%
Identify the corporate-level strategy followed by Nestle.

a. The value-based approach b. The strategy portfolio approach
c. The corporate portfolio approach d. All the above
54. Reliance Industries Limited manages textile fabrics and a range of petrochemical products. For
each product group, the nature of market in terms of customers, competition, and marketing
channel is differentiated. It plans different strategies for its different product groups. Each
Strategic Business Unit (SBU) builds its own strategies to utilize its resources effectively. Name
the organizational strategy used by the Reliance Industries.
a. Corporate-level strategy b. Functional-level strategy
c. Department-level strategy d. Business-level strategy
e. All the above
55. Nokia came to India to exploit the diverse market, especially the unexploited market in rural
India. Its mission was to provide the customer with durable and low cost cell phones. It
formulated marketing objectives to achieve its goals by conducting SWOT analysis. After
analyzing the resources and environment to operate, its major strategy was to continue as No.1
position in India’s rural and urban market. It adopted low cost strategy for rural India and
differentiation strategy for urban India. Name the process that Nokia adopted to capture the Indian
market.
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a. Strategic planning process b. Administration process

c. Crisis management process d. Competitive process
56. A quality inspector in a manufacturing organization proposed a strategy to adopt latest safety
measures to which the management agreed. Accordingly, he wanted to inform his workers about
the latest safety measurement tools procured by the organization. He sent a circular to the
manufacturing unit specifying the list of tools and procedures to use in writing. To that effect, he
also sent some pictures to display at the unit. Name the strategy that is used by the Quality
inspector.
a. Communication strategy b. Marketing strategy
c. Sales strategy d. Project strategy
57. A service business unit initiated a strategy to retain its existing customers and increase sales. It
changed the compensation system and the targets for its managers. It discarded the old practice of
measuring senior managers by revenue and margin targets and fixed 20 percent of their
compensation to achieve the retention goals. It also offered other bonus packages. These
initiatives taken by the company encouraged managers to make the strategy successful. Identify
the factor that helped the organization in its strategy implementation.
a. Technology b. Decision processes
c. Structure d. Maintaining strategic control
e. Reward systems I
58. Goodwin Company manufactures and sells domestic cleaning products. Its target was to earn a
profit of billion dollars in household business in one year. But due to new entry in to the business,
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it was able to earn only half a billion dollars through its business in household. Margerett, the
sales manager quickly observed that there was huge potential of generating profits in retail market
and decided to shift the focus to contract packaging and distribution in industrial and automotive
cleaning markets. This helped her to meet the target of the organization. Name the strategy that
helped her to achieve the target.
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a. Communication strategy b. Implementation strategy

c. Contingency Strategy d. All the above
59. Bhargav, a General Manager was developing plans to enter overseas market that was set as a
strategic vision by the company. After a SWOT analysis, he chose a specific country but found
that several competitors with similar products have entered that market recently. Bhargav after
discussing with the Superiors decided to choose the promising opportunity of introducing a new
product. He developed plans to challenge the competitors through marketing efforts to introduce
the new product to challenge competitors successfully. Identify the element of planning that
helped Bhargav to meet the competition.
a. Organization premises b. Planning premises
c. System premises d. Market premises
e. Produce premises
60. In the above case 59, Bhargav took the help of his subordinates in exploring the overseas market
and coming up with a new challenge to introduce a new product in place of similar products.
Name the factor that helped him to effectively implement the strategy.
a. Developing an appropriate fit between organizational structure and planning needs
b. Creating a proper organizational climate
c. Reviewing strategies regularly
d. Ensuring action plans to reflect major objectives and strategies
e. Maintaining strategic control
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UNIT 7 – MANAGERIAL DECISION MAKING
61. Violet Jones is a manager at the fast food restaurant. She got a mail from the headquarters to
increase her monthly profits. She determined to select the best path to save money and decided to
cut costs in other ways than eliminating employees. She chose other alternatives such as finding
cheaper vendors, reducing store hours, changing menu options, etc. Violet evaluated all
alternatives and after much consideration, decided to submit her recommendations to management
with the hope that it will increase store profits. Name the decision-making process described in
the case.
a. Rational decision-making b. Irrational decision-making
c. Garbage-can decision-making d. Satisficing decision-making
e. Incremental decision-making
62. Hari went to purchase a best model car available in Hyderabad that could suit his budget, give
him all comforts, have the maximum seating capacity and belongs to a top brand. At the
showroom, he found that there are no models that can meet all his demands and finally he had to
choose the one that best suited his budget. Identify the decision-making model used by Hari.
a. Rational model b. Incremental model
c. Garbage-can model d. Satisficing model
e. Programmed decision model
63. From several decades, customers of fast food restaurants were concerned with the taste and the
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price of food rather their health. In 2005, Mc Donald encountered an unusual problem when
customers showed growing concern with regard to foods high in fat and calories. In response,
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McDonald’s started offering healthy food by substituting apple slices in Happy meals to French
fries and stopped using trans-fats. Identify the decision making approach followed by McDonald
in the above case.
a. Programmed decision-making b. Non-programmed decision-making
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c. Incremental decision-making d. Garbage-can decision-making

e. Bounded decision-making
64. To introduce a new caffeine-free cola, the vice-president of marketing for a Cola company was
considering several plans. One plan was expected to cost him 10 crores while the other to cost
only 5 crores. As per his estimations there was an equal chance of acceptance of the new cola
both the ways and profits were also marginal. He conducted expected monetary value analysis to
decide about the type of plan to be implemented. Determine the decision-making category applied
in the above case.
a. Decision-making under certainty b. Decision-making under risk
c. Decision-making under uncertainty d. Decision-making under stability
e. Decision-making using preference or utility theory
65. Prateek, a manager of a production floor that has different lines of production wanted to keep
track of labor costs. He started collecting and comparing the pay roll reports to the budget set by
the organization in order to implement corrective actions, if necessary. These reports were
required every week. He observed that the time taken to complete this process is eating up most of
his valuable time and wanted to adapt a system that could help him with speed, precision and
economy in carrying out this function effectively. Kindly help him with the right suggestion from
the following alternatives.
a. Management Expert System b. Transaction Support System
c. Management Decision System d. None of the above
e. Management Information System
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66. ABZ Engineering company is committed to a specific decision making approach. Whenever the
company calls for interviews, eight to ten employees are involved in interviewing every job
candidate. Also when the company has to take major decisions, it forms a committee involving
employees from all the levels of management to address the issue. Name the approach followed
by the company.
a. Group decision-making b. Expert decision-making
c. Operational decision-making d. Individual decision-making
e. Strategic decision-making
67. Vice President of a large manufacturing company planned to replace technology for
manufacturing a new product line. He selected members of the organization, plant managers,
executives, consumers and some renowned experts in the field to discuss on the matter. He then
collected the opinions of all the experts to calculate average and take the decision based on the
results. Name the technique used by the Vice President to take the decision in the above case.
a. Nominal group technique b. Interacting group technique
c. Delphi group technique d. Break-even analysis technique
e. Ratio analysis technique
68. After renovating the restaurant, a restaurant manager observed that the customer arrivals have
increased and some of the customers are kept waiting for long time to serve. He decided to
increase the number of servers. He then took the help of an operation technique to suit the number
of servers to the increased customer demand. Identify the technique used by the restaurant
manager from the list given below:
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a. Linear programming b. Game theory
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c. Simulation d. Queuing theory
e. Replacement theory
69. A manufacturer wanted to sell a product. He had two options before him. The product can be
either made inside the factory or purchased from outside. While producing inside would require
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using some of the scarce resources, procuring from outside would not. To achieve his goal of
minimizing the total cost, he used a technique to come out with the best solution. He was
successful by adopting such technique. Name the technique that helped him in making the best
choice.
a. Delphi group technique b. Simulation theory
c. Linear programming technique d. Critical path method
e. Ratio analysis technique
70. Neeta was interested to invest in a company that can assure good returns. She selected some
companies to test their past performances before investing. She started calculating the long term
solvency, fixed assets to long term and debt percentages of all the firms and then compared their
findings. She then selected a company whose financial condition was stable and invested. Name
the analysis used by Neeta in this case.
a. Ratio analysis b. Marginal analysis
c. Financial analysis d. Comparative analysis
e. Operations analysis
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UNIT 8 – FUNDAMENTALS OF ORGANIZING
71. A Construction company manager is responsible for ensuring the project completion on time. For
this, he has to appoint the best subcontractors and see that building materials reach the project
place within the stipulated time and ensure proper utilization of resources and eliminate
duplication of efforts. Identify the function of management the manager is performing in the
construction company.
a. Planning b. Marketing
c. Organizing d. Controlling
e. Staffing
72. Karthik, a floor manager in a production department who has recently joined, examined the floor
management at the manufacturing plant. He insisted the supervisor to display the flow of work
activities being carried out at each floor. He conducted a meeting and informed the workers about
the channel of communication to approach for any clarification. These efforts of the manager
have brought improvement in the productivity of the workers. Identify the aspect of organizing
that is explained in the case.
a. Benefits of organizing b. Limitations of organizing
c. Traditional perspectives on organizing d. Formal organization
e. Informal organization
73. A furniture manufacturer got an order for 300 lecture stands. He has five workers to do the job.
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There are two ways to complete this order. One is every worker can be asked to manufacture 60
lecture stands. The other method is to distribute different parts of the lecture stands, like top
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board, center support, assembling and polishing individually to different workers. The
manufacturer strongly believes in a management principle and has adopted the second method.
Name the principle the manufacturer believed in.
a. Chain of command b. Span of control
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c. Hierarchy of authority d. Delegation of authority

e. Division of labor
74. An electronics supplies owner who observed downtrend in his sales volumes, immediately
planned to collect feedback from his customers on the parameters of quality and the expected
changes in the products. He then started supplying the information to the manufacturers to update
their products as per the customer’s requirements. This approach helped not only the shop owner
to improve his sales but also enhanced the quality of manufacturers through innovations. Name
the approach that helped both the owner and the organization to increase their sales.
a. Closed system b. Open system
c. Stable system d. Unstable system
75. Get-well, a super specialty hospital is located in an industrial Area. It has 160 beds capacity. It has
40 duty medical officers and 300 Para medical staff. It recently started 24 hours medical, surgical
and cardiac emergency services. The team of medical officers, consultants and para medical staff
serves the patients throughout the day by segregating themselves into three shifts. It makes its
services available to customers round-the-clock. What form of departmentation is the hospital
following?
a. Departmentation by numbers b. Departmentation by simple numbers
c. Departmentation by time d. Departmentation by process
e. Departmentation by equipment
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76. A soap manufacturing company on being successful in achieving its target of highest market share
in national markets started manufacturing cleaning products for domestic and industrial purpose.
The General Manager-operations now is facing difficulty in managing the three lines of products
due to increase in the volume of operations. Now the organization is planning to reduce the
burden of its operations manager through departmentation. Identify the best suitable
deparmentation for the organization.
a. Departmentation by products b. Departmentation by process
c. Departmentation by customers d. Departmentation by territories
e. Departmentation by functions
77. A Corporate bank whose services are spread across territorial regions has now planned to further
provide its services by offering separate departments for commercial loans, installment loans,
savings accounts, and checking accounts. The bank has planned to departmentalize its services
based on ______________.
a. Functions b. Territory
c. Process d. Products
e. Equipment
78. 3M, an innovative company is a leading supplier for electronic products and protective products.
At 3M, everyone is welcome to participate in innovation irrespective of their levels in the
management. It offers best challenges to innovators who can convince themselves first and able to
convince several levels of management about the value of those ideas. Name the approach
followed by 3M in innovation.
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a. Top-down approach b. Bottom-up approach
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c. Diagonal approach d. Cross sectional approach
e. Virtual approach
79. Departmentation by ____________________ is a type of departmentalization which is widely
used in manufacturing organizations where people and material are brought together to carry out a
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particular operation. It provides the benefit of specialization and facilitates the optimum use of
resources.
a. Process or equipment b. Product
c. Territory d. Function
e. Time
80. Sphoorthy and Sneha, working for a company, became friends through regular meetings at lunch
time in the canteen. Both of them are working under different teams of the same project. When
Sphoorthy was in trouble to complete her task, Sneha helped spontaneously with her expertise and
experience. What type of organization has helped Sphoorthy in overcoming her problem in the
company?
a. Formal organization b. Stable organization
c. Flexible organization d. Informal organization
e. Closed organization
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UNIT 9 – STRATEGIC ORGANIZATION DESIGN
81. Ritesh is a sales executive at one of the branches of Machine Tools Supply Company. One day,
his sales representatives reported a customer complaint regarding the quality of the tools. Ritesh
forwarded the complaint to his manager and manager in turn passed it to the central manager.
Ritesh has been following up since then. But It was almost a fortnight from the day the complaint
was registered and there was no solution offered and the customer returned the tools being
dissatisfied by the delay. What aspect of management was responsible for the delay in the case
discussed above?
a. Tall structure b. Flat structure
c. Broad structure d. Wide structure
e. Large structure
82. Muthuraman, started a Steel Manufacturing company and was successful in gaining market share
in his state. With the success, he started branches in other states and retained the power of
decision-making with him. Slowly branches started improving sales and that demanded most of
his time for decision making. To reduce the overburden, he gave some guidelines on decision-
making to the branch manager and asked them to take charge. Name the factor of effective span
of management Muthuraman has planned in the case.
a. Use of objective standards b. Rate of change
c. Clarity of delegation of authority d. Clarity of plans
e. Trained subordinates
83.
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Kannan has started a BPO with a staff of 50 numbers. He used to take care of sales, marketing,
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accounting, HR and IT manager responsibilities all alone. When the company started progressing,
number of staff got increased to 300 and he was unable to manage the financial aspects of the
company. He then decided to appoint an accountant to take care of company accounts. Which
factor among the effective span of management helped Kannan to reduce his burden.
a. Organizational levels b. Amount of personal contact needed
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c. Use of staff assistance d. Communication techniques

e. Trained subordinates
84. Srinivas is working as VP for an Automobile Sales company. He sets targets to his sales managers
of different branches. In terms of growing need of demand, he informed them that those who meet
the sales target would be given incentives as a percentage over the generated profits and those
who do not meet would be demoted. Name the power that the VP used in granting incentives to
successful managers.
a. Expert power b. Legitimate power
c. Referent power d. Reward power
e. Coercive power
85. In case no.84, name the power used by the VP to demote the unsuccessful managers.
a. Legitimate power b. Reward power
c. Coercive power d. Expert power
e. Referent power
86. Caterpillar Inc., an American corporation designs, manufactures and sells machinery and engines.
At Caterpillar Inc., price related decisions were made only at the corporate headquarters. When a
sales representative working in Africa wanted to give a discount on a product, he had to check
with headquarters. Headquarters took more than a week’s time to check the markets for
information to take effective decision. The delay in decision making made them to lose their
customers. What type of management was Caterpillar following?
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a. Centralized b. Decentralized
c. Flat d. Tall
e. Informal
87. Home Store is a retail giant with 2,000 stores across India. At each store, managers were given
responsibility to manage a team of sales and meet the sales target. They were also responsible to
handle complaints and resolve the problems of customers. To facilitate quick decision making,
managers were also given authority to act autonomously. Name the type of authority the
management is following?
a. Centralized b. Functional
c. Formal d. Informal
e. Decentralized
88. Preethi, a HR manager in a multinational company was deeply engaged in a thought on how to
solve the problem of an employee. Her personal assistant observed the intensity of the problem
and recommended some alternative solutions to her. Though the solutions were feasible and
acceptable, Preethi refused her recommendations and shouted at her assistant not to involve in her
job. Name the factor of line and staff conflict that affected Preethi.
a. Viewpoint of line managers b. Lack of accountability
c. Encroachment of line authority d. Dilution of authority
e. Theoretical bias
89. Charan who joined as an incharge for billing counters of big super market was promoted as
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supervisor looking at his relationship maintenance and control competencies. Consequently, the
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branch manager was asked by the management to explain him the job profile of supervisor and
help him in executing his tasks. Subsequently, whenever Charan approached the manager, he
simply refused to help him fearing that Charan may excel in his job and become a good contender
for him. What factor of delegation is seen affected in the case.
a. Love for authority b. Fear of subordinates’ advancement
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c. Fear of exposure d. Attitude towards subordinates

e. Personality traits and experience of the superior
90. Continuing the case no.89, for several months Charan managed to work without proper guidance
from the manager. Finally, unable to sustain, he submitted his resignation to the management.
Identify the factor that forced Charan to resign.
a. Lack of information and resources b. Fear of criticism
c. Lack of self-confidence d. Absence of rewards and incentives
e. Fear of exposure
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UNIT 10 – STRATEGIC ORGANIZATION STRUCTURE
91. Sheela hired a consulting firm to conduct a market comparison of staff salaries before she decided
about promotions. Soon after, a rumor started circulating through the organization that a specific
group of professionals were going to have their salaries cut as a result of comparison. Staff
members did not ask their managers. The rumor spread like wild fire. Immediately, Sheela called
an emergency staff meeting and addressed the issue by providing with the facts and gave an
opportunity to the employees to speak. What do you call this kind of communication in an
organization?
a. Formal communication b. The Grapevine
c. Upward communication d. Downward communication
e. Cross communication
92. When DuPont manufactured gunpowder, individuals involved in the process got specialized. The
process resulted in developing separate departments for manufacturing, sales and R&D. The
functional heads were reporting directly to the Company President or CEO. To coordinate, sales
manager in New York had to interact with other sales managers than with the manager of New
York-based plants. Coordination between the plant manager and the sales manager had to occur
through the corporate head office. Name the structure followed by DuPont in the case.
a. Functional structure b. Divisional structure
c. Matrix structure d. Hybrid structure
e. SBUs
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93. In case no. 92, which of the following factors benefit the individuals?
a. Coordination b. Monotony
c. Specialization d. a&c
e. a&b
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94. In continuation to case no.92, once DuPont entered the diversified range of products, its
coordination requirements got changed. The production manager of DuPont’s main Dulux paint
plant started coordinating with the sales manager for paints and the other functional heads
responsible for paints only, than with any other functional head. To facilitate coordination,
DuPont changed its structure to ____.
a. Geographical structure b. Matrix structure
c. Divisional structure d. Functional structure
95. In case no.94, while the divisional structure (product division) promoted coordination, it increases
the problem of _______at the top management level.
a. Control b. Delegate
c. Organize d. Plan
e. Review
96. A large conglomerate organization is composed of 90 divisions such as ConAgro, ConFood etc.
The chief executive officer faced difficulty in managing the efforts for implementing the
strategies. He then decided to divide the many divisions into individual units that has a distinct
mission, strategies and objectives and named them as i) Food Service (restaurants) 2) Retail
(grocery stores) and 3) Agricultural products. The CEO transformed its structure from divisional
to ______________.
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a. Matrix structure b. Functional structure

c. Geographical structure d. Hybrid structure
e. Strategic Business Unit
97. In case no. 96, each individual business unit named specifically act as a distinct___________.
a. Business strategy b. Business entity
c. Business Plan d. Business decision
e. Business group
98. Philips Electronics was founded in 1892. Philips first focused only on the production of light
bulbs. Later it broadened its product lines across different countries. The formal corporate-level
structure was built based on the geography and product lines. With growing market changes,
Philips realized the need to restructure to cope with the changing global demands. It established
national organizations (NOs) with product divisions (PDs), and operated successfully through a
network. The network was managed by a number of coordinating committees. These committees
helped in resolving the conflicts. What do you call the organizational structure followed by
Philips?
a. Matrix structure b. Customer division
c. Product division d. Geographic division
e. Hybrid structure
99. The coordinating committees through networks helped the individuals across the organization to
work as ________.
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a. Unit b. Team
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c. Panel d. An association
e. Entity
100. HP's operations are organized into seven business segments; They are Enterprise Storage, Servers
and Networking ("ESSN"), HP Networking, a combination of HP ProCurve and 3Com, (now part
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of ESSN), HP Enterprise Services ("HPES"), HP Enterprise Security Services ("HPESS"), HP

Software Division, HP Technology Services (HPTS), Personal Systems Group ("PSG"), Imaging
and Printing Group ("IPG"), HP Financial Services ("HPFS"), and Corporate Investments. Each
business segment is organized based on the activities or functions of an organization. What do
you call the type of structure adopted by HP?
a. Functional structure b. Divisional structure
c. Matrix structure d. Hybrid structure
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UNIT 11 – EFFECTIVE ORGANIZING AND

ORGANIZATIONAL CULTURE
101. Kshitij owns a chemical supplies company. Currently he has a team of 30 members working for
his company in different positions. Kshitij is planning to invest the profits he earned in further
expansion of business by starting new branches. He started estimating the future personnel needs
and the type of proposals for training, if any for expansion. These activities can make an
organization effective by_____________.
a. Listing Prerequisites b. Avoiding mistakes
c. Avoiding organizational inflexibility d. Avoiding conflict by clarification
102. In mobile phone industry, efficient logistics processes and manufacturing capabilities are
considered as important success factors. Nokia was indirectly underestimating its own existence
in spite of significant process. It deeply failed to consider adaptation, culture, economic
environment, creative destruction, leadership and sustainability. Nokia realized its
core competency only after forming alliance with Microsoft, when it has all the capabilities. What
factor could be the reason for Nokia’s failure in the changing market environment?
a. Organizational flexibility b. Organizational conflict
c. Organizational relationship d. Organizational culture
e. Organizational inflexibility
103. In case no.102, Nokia could sustain through________________.
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a. Reorganization b. Reengineering
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c. Reinvention d. Recollection
e. Remodification
104. Meenal is a General Manager for a tool manufacturing company. She instructed her sales team to
directly communicate with the development team to reduce the time delays in modifying its
designs as per customer’s requirement. As the company expanded, many functional teams
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emerged and some of the employees were reporting to different managers. These changes created
chaos and confusion in reporting system due to absence of concerned manager’s instructions. The
organization could come out of chaos with the help of a definite _______________.
a. Organizational chart b. Functional chart
c. Organizational culture d. Functional model
e. Organizational model
105. Southwest Airlines CEO Herb Kelleher promotes informality and fun at workplace. His practice
of acknowledging births, marriages and deaths by sending notes and cards shows how employees
are valued. In response, the staff encourages at check-in and thus the time consumed for checking
takes less than half the industry average. These characteristics derived from its founders depict
Southwest Airline’s__________.
a. Social culture b. Organizational structure
c. Organizational culture d. Organizational rules
e. Organizational programs
106. Wal-Mart founder Sam Walton believed that giving respect to staff builds their self confidence.
Walton addresses his staff by their first name and always supports change to sustain in the
competitive environment. Which characteristic of organizational culture did Walton promote to
maintain the competitive edge?
a. Promoting dominant and stable values b. Being distinctive
c. Shaping philosophy and rules d. Leading to common behavioral aspects
e. Strengthening through visibility
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107. The HR manager of Corning, Inc., a manufacturing firm wanted to improve productivity. He
focused on reducing the training period and voluntary turnover of new employees. Accordingly
the orientation program was designed to foster understanding about the company’s values and to
build a positive attitude towards the company. As a result newcomer turnover was reduced by
69%. The example of Corning illustrates ____in the socialization process.
a. Step i b. Step iii
c. Step vi d. Step vii
e. Step v
108. In 1983, Oprah Gail Winfrey got her dream job of hosting a talk-show and soon became one of
the most famous and most professional people in the entertainment industry. In 1988, she started
the company Harpo Studios. Her television career helped the business to grow by giving her a
huge advertising. The company has more than 250 employees now and is growing every year. She
also co-founded oxygen media that helped in attracting more than 50 million viewers. Because of
the skills she possesses, she has succeeded as _________________.
a. An intrapreneur b. An entrepreneur
c. An innovator d. A manager
e. A leader
109. W.L Gore of Gore-Tex fabric gives his employees 10% of their work day to spend on creativity
and personal projects. One employee, Dave Myers, discovered that one of their products,
ePTFE(coating for push-pull cables) could be used to coat guitar strings. The coated strings were
more comfortable and durable than conventional guitar strings. W.L. Gore launched those strings
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with a brand name ELIXIR Strings which are now the leading guitar strings sold in the market.
W.L. Gore stood as an example for ______________.
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a. Intrapreneur b. Entrepreneurship
c. Executive d. CEO
e. Chief Executive
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110. Patrick Naughton, a developer in Sun was planning to leave the company in 1995 believing that
their management was missing out the demands of PC consumer market. Then he was convinced
to continue and develop a group dedicated to the consumer market. Later, this group where James
Gosling was a member created a program called object-oriented programming language. It was
initially called Oak and later renamed as Java. The above case illustrates that it is the manager’s
responsibility to build ___________ that facilitates the achievement of group goals.
a. Energy b. Enthusiasm
c. Environment d. Ethics
e. Empowerment
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UNIT 12 – HUMAN RESOURCE MANAGEMENT AND STAFFING
111. Rahul is working as HR manager in a Steel company where the number of current workers is 300.
He received a mail from head office to plan for the expansion of production capacity by recruiting
skilled workers and a competent supervisor to manage. Keeping the strategic plan of the company
in view, Rahul started estimating the size and composition of the future work force. He started
preparing the list of skills, competencies and experiences they need to possess. What do you call
the process where Rahul is currently engaged in?
a. Forecasting manpower supply b. Forecasting manpower demand
c. Human resource planning d. Human resource actions
e. Human resource management
112. Continuing the case no.111, Rahul first planned to check the current computerized database for
the availability of competent and able employee who could take up the position of supervisor.
What do you call this means of assessment in human resource planning ?
a. Skills inventory b. Succession planning
c. Replacement planning d. Human inventory
e. Management inventory
113. Continuing the case no.112, Rahul’s efforts to trace the competent individual from the current
employees went futile. He then decided to give an advertisement in the newspaper and electronic
media. Recruiting people through these resources is called ____________.
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a. Internal labor supply b. Global labor supply
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c. External labor supply d. Selection
e. Placement
114. After completing Engineering graduation, Meenal went to attend an interview in a software
company. She completed all the rounds of interview and at last her name got displayed in the final
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list. She was asked to report the next Monday. On the day of joining, she is given a list of
documents to sign an agreement where all the conditions of organization such as working hours,
lunch timing, facilities available and the promotions list including submitting a bond for one lakh
rupees in case of violating the agreement of job for two years. In the above case, what are the
factors that the organization is taking care of at the time of staffing?
a. Personnel policies b. Climate in the organization
c. Appraisal system d. All the above
e. a & c only
115. Apple Inc., an American computer technology company is known for its innovation. It sells
personal computer products and a range of hardware products. In order to survive and react to
emerging market demand, it reviews business documents, interprets observations, and uses
surveys to measure what is needed by most of the employees within the organization. Based on
the results, it effectively implements programs to empower employees and improve their
performance. What exactly is Apple Inc. planning to do?
a. Staffing b. Performance appraisal
c. Compensation d. Layoffs
e. Training and development
116. In 2010, Google was facing problems with competitors like Facebook who were attracting
employees with stock options. To address the poaching problem, Google transferred a part of
employee bonus into the basic salary. It also granted 10% salary increase and offered $1000
bonus in the form of cash. All these initiatives are a part of "competitive _____________."
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a. Training plans b. Compensation plans

c. Appraisal plans d. Promotion plans
e. Demotion plans
117. Software companies today are approaching educational institutes such as universities, university
affiliated colleges and business colleges to recruit potential employees for first level positions.
What do you call this type of recruitment?
a. External recruitment b. Internal recruitment
c. Vertical recruitment d. Horizontal recruitment
e. Recruitment by referral
118. An education institution was offering graduation programs in management sciences. Being
successful it planned to offer post graduation programs. The top management started listing out
the number of subjects in each program to be offered and the number of available faculty for each
subject. Then it decided to appoint additional faculty members and started describing the job
profiles of the faculty members with detailed specifications. Then it gave a notification in the
newspaper and through electronic media for the requirement of faculty members. What is this
process called in an organizational environment?
a. Selection process b. Production process
c. Operation process d. Recruitment process
e. Transaction process
119. After qualifying a written test for the post of assistant production manager and being successful in
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personal interview, Sohail was asked to attend a third round of interview at the production plant.
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The interview would be headed by the production manager to whom Sohail is supposed to report
on final selection. These type of interviews are called as
a. Personal interview b. Informal interview
c. Comprehensive interview d. Exit interview
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e. Stress interview
120. Standard Chartered Bank selects management trainees from premium B- schools and conducts
training program for about six months. During the training period, the new recruiters are given an
opportunity to visit several bank divisions and meet the bank’s business heads. It is an effort made
to enable the new recruits to get an overall view of the internal operations of bank. Further, team
building sessions are also conducted for two days. Before exactly starting to work on the job, the
new recruits are given a brief description about the job. This process of introduction of new
employee to the organization is called ________________.
a. Maximization b. Minimization
c. Centralization d. Decentralization
e. Socialization
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UNIT 13 – PERFORMANCE APPRAISAL AND CAREER STRATEGY
121. McKinsey is a leading strategy consulting firm. It has a HR policy where, managers evaluate their
employees on completion of each consulting assignment in addition to the annual performance
evaluation. As such, consultants are given around 20 mini-evaluations in one year. This is done to
match with the needs of the organization and the development needs of the employee. Identify the
objective of appraisals depicted in the case.
a. Identification of potential b. Promotion decisions
c. Compensation administration d. Validation of selection procedures
e. Performance improvement
122. The process followed in the case no.121 is referent to which form of appraisal?
a. Informal appraisal b. Formal appraisal
c. Standard appraisal d. Systematic appraisal
e. Official appraisal
123. Tata Motors incorporated quarterly appraisals in to its performance appraisal system recently. The
new system facilitates employees to select their own Key Result Areas (KRAs) for each quarter
and gives an opportunity to review their performance based on these parameters. These types of
appraisals are called _________.
a. Standard appraisal b. Formal appraisal
c. Informal appraisal
Id. Systematic appraisal
e. Official appraisal
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124. In Tata Motors, major revenue is generated by sales department. As such, sales people are given
increments in cash and promotions based on their performance. Rahul, who was not performing
up to the satisfaction, was given training. Consequently, his performance improved and he was
also given cash benefits. Name the quality control technique used by Tata Motors in the case, to
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motivate Rahul.
a. Standards b. Information
c. Corrective action d. Performance action
e. Management action
125. Frito lay products include Lays, Sun chips and Doritos. It has more than 50,000 employees
working out of which one third are route sales representatives (RSR). Their job is to negotiate and
put products on store shelves. Their performance was measured through sales figures as the job
was paid on commission basis. The management observed that profitability goals were not met
because of low productivity and high RSR turnover. Soon, the management detected that more
than sales figures, sales skills had the greatest impact on the sales and introduced other
performance behavior based measures to evaluate RSR such as sales task, driving and delivery
tasks and merchandising tasks. Name the latest performance management adopted by Frito lay.
a. Graphic rating method b. Management by objectives (MBO)
c. 360 degree appraisal d. Comprehensive appraisal
e. Behaviorally Anchored Rating Scales (BARS)
126. In a glass manufacturing company, management followed conventional output based appraisal
system. In performance appraisal meeting, the production manager identified that most of the
knowledgeable employees were not satisfied by the system. He then proposed a change in the
appraisal system where quality of work, job knowledge, dependability, punctuality and attendance
are considered in addition to output for performance appraisals. Identify the assessment method
proposed by the production manager in the case.
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a. Graphic Rating Method b. Behaviorally Anchored Rating Method

c. Forced Ranking Method d. Critical Incident Method
e. The Narrative Method
127. Production manager in a bearing company got instructions to produce 100 tonnes within three
months as against the actual capacity of 80 tonnes. The manager put all his efforts to meet the
target by giving required resources and instruction to the workers and planned to review the
progress every month. By the end of second month, they could produce 70 tonnes. Unfortunately,
message received by the manager from the Head office stated that the order has been replaced for
only 80 tons which is their normal target. The efforts of the manager went unnoticed by the
management during performance appraisal. Which factor of MBO implementation played the role
in performance management?
a. Strengths of appraisal against verifiable objectives
b. Opportunities of appraisal against verifiable objectives
c. Weaknesses of appraisal against verifiable objectives
d. Threats of appraisal against verifiable objectives
128. Pratheek, a good performer as a system administrator was recommended for a training program in
the latest java development courses. But his interest was always to learn the new Hadoop
technology yet to be popular in the market. He tried to express his view to the management about
his concern but things did not work and he had to undertake the training program. Later, under the
real project, his performance was not up to the expectations. Where lays the reason for Pratheek’s
low performance in the case?
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a. Implementation of a career plan b. Monitoring progress
c. Analysis of persona strengths and weaknesses
d. Consistency testing and strategic choices
e. Analysis of environment threats and opportunities
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129. Tesco follows an appraisal system called 'talent planning'. This practice promotes people to work
with commitment in the organization. Individuals are allowed to apply for promotions in the areas
of their career interest through annual appraisal scheme. Their manager helps them in acquiring
the technical skills and behaviors required for these roles by conducting training sessions. This is
how Tesco achieves its business objectives and facilitates its employees to achieve their personal
and career objectives. Name the activity taken up by the Tesco managers under career strategy
formulation.
a. Preparation of a personal profile
b. Analysis of environment threats and opportunities
c. Development of strategic career alternatives
d. Monitoring progress e. Implementation of a career plan
130. Team leader in a software company was planning to conduct a training session for his team
members. He started comparing the current competencies of his team members against the
organizational requirements and market trends to find the performance gaps. For the purpose, he
also checked their completed projects for the identification of potential training needs. But all
these efforts were time consuming, he then decided to list out such gaps through performance
appraisals from the next time. In which part of the career strategy do you realize this concept?
a. Monitoring progress b. Monitoring training needs
c. Development of short-range career objectives and action plans
d. Development of strategic career alternatives
e. Development of long-range personal and professional goals
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UNIT 14 – ORGANIZATIONAL CHANGE AND ORGANIZATION

DEVELOPMENT
131. In 2010, IBM introduced Accessible Workplace Connection (AWC), a process of giving special
facilities to handicapped people to complete their work. This assistive technology is also called as
a “one-stop-shop”. It allows interaction between employees and the in charges of IBM teams
providing accommodations. AWC are established to provide continuous support by giving
reasonable and effective accommodations to eliminate process confusion. Name the factor that
forced change in the workplace environment in IBM.
a. Technology b. Economic factors
c. Competition d. Nature of the workforce
e. Political factors
132. An organization offering business analysis services decided to start a cost reduction program. It
searched for potential chances in the company and found most of the employees using individual
printers connected to their computer in the office. When approached IT department for an
alternative solution, they proposed replacing the individual printers with networked printers and
placing them at convenient work stations. This change was estimated to save $2 million annually.
The proposal to that effect was signed by the senior management and individual printers were
slowly being replaced. Meanwhile, majority of employees complained great inconvenience and
reported to the top management due to which the program was postponed losing the significant
opportunity costs. What is the cause for losing opportunity costs?
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a. Organizational resistance b. Individual resistance
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c. Group resistance d. Customer resistance
e. Stakeholder resistance
133. An electronic product manufacturing company wanted to eliminate unnecessary processes and
improve the use of materials by employing lean manufacturing system. In the process, it had to
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change the procedures for ordering and had to lay off some of its employees. In a way the change
has affected the entire system of operations in the company leading to further cost and design
assessment. The organization temporarily put off the plans for the support from all the
departments. Which source of organizational resistance is affected in the plan?
a. Limited focus b. Threat to expertise
c. Threat to established power relationships d. Threat to established resource allocation
e. Group inertia
134. In case no.132, the top management gave instructions on how to motivate employees to accept the
change. Accordingly, middle level managers conducted meetings department wise and explained
the benefits of using printers through networks and the concept of cost saving. They also
explained how these benefits shall reap fruits for employees. Identify the factor that helped the
managers to overcome resistance.
a. Supervision and control b. Facilitation and support
c. Negotiation and agreement d. Manipulation and co-optation
e. Education and communication
135. In case no.133, Top management called for a meeting with all the heads of departments and
requested to participate in the discussion on the change consequences. The top management tried
to clear the fears about the change and asked them to come up with plans on how to implement
the change gradually with the consent of employees. Name the factor that helped the management
to overcome the resistance of change.
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a. Explicit and implicit coercion b. Facilitation and support

c. Participation and involvement d. Training and monitoring
e. Negotiation and agreement
136. Jack Welch as an OD practitioner brought many changes in General Electricals. He initiated more
than 200 merger and acquisitions through integration model. He observed the vast bureaucracy
existing in GE and reduced the layers of management eliminating the functional division within
the company and restructured the organization. Welch recommended digitizing every process as a
part of e-initiative. This has helped the company to sell more than $8 billion of products and
services via internet. He also worked out to change the attitudes and behaviors within GE to
ensure that managers listen to workers, giving employees a voice in decision making and brought
all functions people together in a room to focus on a problem and react with best ideas developed.
Name the role played by Jack Welch in GE change process.
a. Business agent b. Sales agent
c. Change agent d. Purchase agent
e. Commission agent
137. In case no.136, Identify the intervention technique used for reducing the layers of management
and eliminating the functional division.
a. Skill development b. Organizational culture change
c. Process consultation d. Techno structural activities
e. Team building
138.
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In case no.136, empowering the employees through work out on attitude and behavior change
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resulted in ________________.
a. Product development b. Skill development
c. Functional development d. Culture development
e. Structure development
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139. Geeta Institute of Management in Hyderabad observed that the quality of their students’ education
is relatively low compared to leading business schools. The board appointed one Mr. Ramaiah as
chief academic advisor along a team of faculty members to analyze and improve the quality of
education. Mr. Ramaiah recommended the team to attend a faculty development program
conducted by an apex body and learn analytical skills for effective implementation of plans.
Which training technique has helped the team to effectively implement the plan?
a. Readings b. Sensitivity training
c. University management programs d. Conference program
e. Business simulation
140. A pharmacy company that entered the market newly offered wages higher than the market rate
and lured most skilled workers from similar companies. This resulted in conflict between the new
organization and the existing ones. The similar organizations could not increase the wages but
tried to retain their valuable employees offering incentives. What is the potential source of
conflict in the case.
a. Competition for scarce resources
b. Time pressure
c. Unreasonable standards, policies, rules or procedures
d. Communication breakdown
e. Personality clashes
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UNIT 15 – MANAGING AND THE HUMAN FACTOR
141. Rahul works as an executive in an advertising agency. His job includes planning advertising
campaigns and presenting them to the clients. Rahul performs well when he is working with his
own team for developing advertising campaigns and also while presenting. But when it comes to
presenting his campaign to clients, he performs poorly. The manager understood his nature and
motivated him to undergo soft skill training. Within six months of training Rahul improved his
presentation skills and could confidently address the audience. Which aspect of human behavior
encouraged the manger to motivate Rahul?
a. Multiplicity of roles b. Considering the whole person
c. The importance of personal dignity d. Individual differences
e. Group Behavior
142. A manager in a steel company announced that workers who can lift maximum load of coal per
day would be paid 60% higher wages than those who cannot. He then observed that most of them
were able to meet the goal and accordingly he recommended the top management to reduce the
workforce in the company. The company reduced its workforce from 600 to 140 and could
achieve its goals by saving huge funds. Which assumption of Edgar H. Schein’s model is
considered for decision making at the steel plant?
a. Social assumption b. Self-actualization assumption
c. Complex assumptions d. Simple assumption
e. Rational-economic assumption
143.
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A Manager in Tulip Software Company found his teams behaving poorly. He decided to develop
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a system that will motivate them to behave better. He started a new system where at the end of
each day, whichever team follows the rules would be given a star mark on the board. At the end
of the week, whichever team scores more than five star marks would be given a party and
incentives on the percentage of improvement. He believed that the party and incentives will
motivate them to follow the rules. Identify the model that helped the manager to improve the
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team’s performance.
a. Rational model b. Emotional model
c. Behavioristic model d. Phenomenological model
e. Economic model
144. Kapil, a supervisor in a mesh manufacturing company observed that a group of workers were
coming late by crossing the grace period of time given to them. They were also seen spending
more time during lunch hours and are found irresponsible in their work. He immediately issued a
circular to them saying that if they do not follow the rules and behave indisciplined, they will
have salary cuts and would not be considered for promotions. Which theory best suits the group
of workers in the case?
a. Theory X b. Theory Y
c. Theory Z d. Theory A
e. Theory B
145. Gautam started his career as a sales representative in a marketing agency and has been promoted
twice to reach the designation of sales manager. He was also given increments matching with his
designations par with the industry. But he was not happy with his career development because his
dream was always to head a branch as branch manager. Which model of Raymon E. Miles reflect
Gautam’s expectations?
a. The traditional model b. The human relations model
c. The human resources model d. The contemporary model
e. The behavioristic model
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146. Intuit Inc., which offers electronic accounting software to small businesses, has its India
headquarters located in Bangalore. It acts as the local center for providing engineering, sales and
support functions in the country. It also has the company’s Development Centre. As a part of the
company’s entrepreneurial culture, employees are given free time to pursue and develop new
ideas outside their work. Opportunities are also given to employees to master new skills and take
up new challenges. It also organizes programs called “lean start-ins” to teach intrapreneurs the
techniques of innovation. Intuit is empowering its employees to encourage_____________.
a. Creativity b. Productivity
c. Leadership d. Ownership
e. Partnership
147. A consumer goods company whose business boundaries are spread across countries planned to
introduce total quality management throughout the business lines. Its top management called for a
meeting with all the regional and branch heads across countries. The management asked them to
generate as many ideas as possible and improve them. The management could pool the ideas
through this meeting and successfully implemented the new system with due cooperation from the
heads. What do you call these types of meetings?
a. Group meetings b. Brainstorming
c. Synectics d. Annual meeting
e. Statutory meeting
148. Anita Ahuja, co-founder for Conserve India (NGO) thought of improving the lives of the rag
pickers. She started a program which generates income by recycling plastic waste to make
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beautiful export-quality handbags. In a very short period, the organization started collecting and
sorting waste from 500 households around the city. Today Conserve India has 300 employees
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with a turnover of around $150,000 and sells handbags on high streets across the globe. The case
described above is an example of________________.
a. Leadership and entrepreneurship b. Innovation and leadership
c. Innovation and entrepreneurship d. Creativity and leadership
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e. Creativity and innovation

149. A mid-sized media business always had coordination problem between team of production,
marketing and editorial staff in various issues starting from the book cover design to publicity
strategy and production deadlines. Complaining became the established method of
communicating and the product lines resulted in mediocre. The CEO had to insist and put lot of
efforts on integrating the activities and concentrate on cooperation of departments rather than on
product development. He initiated team building activities and conducted workshops for team
building. Name the role played by the CEO in the above case.
a. Manager b. Creator
c. Destroyer d. Harmonizer
e. Tutor
150. The ___________ of leading helps to bridge the gap between effective control techniques, logical
and well-defined plans on one hand and the need for people to understand, to be motivated and to
contribute their capabilities to achieve organizational objectives on the other hand. These
activities of a manager come under which function?
a. Leadership function b. Operational function
c. Production function d. Managerial function
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UNIT 16 – MOTIVATING EMPLOYEES FOR JOB PERFORMANCE
151. Subroto is working as a marketing manager in a mobile sales shop. He has been saving a portion
of his salary to purchase a new car. One day the top management announced that the managers
who show exponential increase in the sales volume would be rewarded a lump sum amount. To
fulfill his dream of buying a new car, Subroto put forth all his efforts to meet the challenge and
could achieve the target. He bought a new car with the lump sum amount he was rewarded with.
Name the components of motivation that drove Subroto to meet the challenge.
a. Morale, motivation, incentive b. Wishes, wants, rewards
c. Needs, intention, awards d. Needs, drives, goals
e. Wishes, intention, rewards
152. Manoj is from a middle class family and immediately after his higher secondary school he had to
look up for a job. He secured the job of a sales person in a big mall where his earnings were
sufficient to satisfy his primary needs such as food, clothing and shelter. After one year he got
increment in the salary and he started making savings in the bank. Under Maslow’s needs
hierarchy theory, which two needs of Manoj are satisfied?
a. Physiological, and safety and b. Safety and security, and
security needs Self-actualization needs
c. Social and Esteem needs d. Physiological and Social needs
e. Social and self-actualization needs
153. Nidhi completed her engineering graduation from a reputed college and was in search of a good
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job. She attended two interviews for the purpose and got selected in both the organizations. Now
she is in a dilemma to choose the best. She started comparing the job content and the work
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environment in both the organizations. One of the jobs was providing her motivating factors such
as good opportunities for career growth and promotions, has rewards for recognition while the
other job also has the same job content along with facilities such as cab for pickup and drop,
canteen, encouragement for further education and job security. She has finally selected the second
organization to join as it was providing both the motivating and hygiene factors. Who has
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proposed the theory of motivation based on motivating and hygiene factors?

a. Abraham Maslow b. Frederick Herzberg
c. Clayton Alderfer d. David McClelland
e. Victor H. Vroom
154. Raman has accolades from many institutions for being a successful manager. He is creative,
responsible and encourages innovation within the organization. He is known for possessing good
leadership skills and also for his corporate social responsibility. In addition to institutional social
responsibility Raman also renders services to many NGO’s personally. Sometimes Raman had to
contribute his official time to his personal obligations for maintaining good social relationships
which was not encouraged by his top management. When he was warned by the management, he
expressed his willingness to leave the job. Identify the factor of motivational need that is more of
concern to Raman.
a. Need for achievement b. Need for power
c. Need for affiliation d. Need for recognition
e. Need for security
155. A Marketing Ad Agency appointed a new creative executive when its sales volume was
consistently declining since two years. The new executive took the challenge and helped the team
by giving training and conducting workshops for improving creativity and also provided new
ideas to the management for promotions to improve the sales. Within one year he could meet the
challenge with a voluminous increase in the sales. Based on his performance the top management
promoted him as manager with a hike in salary. The executive was overwhelmed as the reward
offered was more than his colleagues. Which theory of motivation explains the connectivity
between the inputs and rewards?
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a. Herzberg’s two-factor theory b. McClelland’s need theory

c. Vroom’s expectancy theory d. The Porter-Lawler model
e. Equity theory
156. IKEA is a Swedish home furnishing retailer that sells well-designed and functional furniture at
low prices. It has 150 stores spread in 20 countries around the world. IKEA’s dream is “to create a
better everyday life for the many people.” To this effect, it has introduced new policies and
programs to encourage its employees for higher productivity. It introduced paid leaves for special
occasions such as “first day of school leave”, “marriage leave” and “moving house leave” for its
staff. It included flex-time, full-time and part-time work to increase the morale of the employees.
What do you call the initiatives taken by IKEA to increase its productivity?
a. Job Enrichment b. Quality of Work Life (QWL)
c. Participation d. Promotion
e. Personal Satisfaction
157. Google Inc. founders believe that in order to attract the best talent, they have to provide an
environment where employees would wish to come to work regularly, have fun, dream big and
get promoted for hard work. To encourage hardworking, Google motivates its employees by
providing a package of fringe benefits such as gyms, massage rooms, haircuts etc. It also provides
extra rewards such as free health and dental benefits, insurance plans and vacation packages etc.
Name the technique used by Google to motivate its employees.
a. Rewards b. Promotion
c. Participation d. Job Rotation
e. Job enrichment
158.
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AT&T Corp., that provides voice, video, data, and Internet telecommunications and professional
services to businesses, consumers, and government agencies, once observed that turnover in the
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team was too high and performance too low. They analyzed the situation and found several
deficiencies in the work system such as teams working in isolation and the service representatives
having minimum client contact or responsibility with inadequate feedback on their job
performance. They changed the system by creating a process team where each member of the
team was given decision-making power which was a challenging task to members. Name the
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technique used by AT & T in motivation.

a. Quality of Work Life (QWL) b. Job Rotation
c. Job Specification d. Job Description
e. Job Enrichment
159. A meter manufacturing company repeatedly encountered problems in the quality aspect which
affected its sales and profit volume. The top management of the company for the first time
initiated a team involving employees from the company’s different departments with different
skills and knowledge on the quality aspects for decision making. The team sat together and set
goals. Soon quality became the competitive edge for the company and increased the employee
performance. What do you call the motivation technique used by the company in improving its
quality in the case?
a. Promotion b. Penalty
c. Demotions d. Participation
e. Rewards
160. Dilip strongly believes and practices democratic principles. As a manager he encourages his
employees by providing training and giving autonomy in decision making. He motivates his
employees by allowing them to participate in important decisions and helps them by giving them
the right feedback to improve their skills and knowledge. Identify the factor that affected Dilip’s
management practice.
a. Learning style b. Organization policies
c. Attitudes of the individual d. Situation
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UNIT 17 – LEADERSHIP
161. Mithun was working for a software company where he was put in to a team under a new project.
All the members involved in the team were new entrants and had no idea to perform the job other
than the training experience. His team leader was irresponsible and never bothered to give
instructions or conduct team meetings to assign jobs. Then Mithun took the lead and set
individual goals to each individual in the team, gave directions to complete the job and welcomed
them to approach for any kind of assistance. What do you call the initiation exhibited by Mithun
in the case?
a. Leadership b. Partnership
c. Entrepreneurship d. Membership
e. Scholarship
162. An automobile shop hired a branch manager to lead a team of 30 members. He is very much time
conscious and strictly follows timelines in all his works. He works dedicatedly during office
timings and is very punctual in maintaining office timings. Employees who never followed time
earlier under the management of old manager, started being punctual in their works and
demonstrated dedication in their works since the new manager has been appointed. The element
of leadership that motivated workers to follow the manager is the ability of a leader
to__________.
a. Use power in a responsible manner
b. Understand people at a fundamental level
c.
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Inspire followers to perform a task to the best of their capacities
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d. Adopt the style resulting influence on the work climate in the group
e. Adopt the style resulting influence on the work climate in the organization
163. Vikram Pandit, former CEO of Citigroup rose through the corporate ranks. He efficiently
managed the bank during financial crisis through his intelligence. Initially for two years, he
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worked for a salary of $1. As the Citi progressed under his leadership, his salary was raised to
$1.75 million. The company also awarded him $23.2 m as retention award making him as one of
the highest paid CEOs. Which leadership theory matches with the kind of leadership exhibited
through intelligence?
a. Behavioral theories b. Trait theory of leadership
c. Situational or contingency theories d. Transformational leadership theory
e. Path-goal theory
164. Krishna heads an Agro based company for its Hyderabad branch. He poses trust in his employees
and respects and regards their feelings. He maintains good relationships within and outside the
organization. He takes care of the needs of employees and tries to resolve the individual
differences among the team members with patience. Which studies under behavioral theories
exhibit the above discussed characteristics?
a. Michigan studies b. Iowa studies
c. Continuum of leader behaviors d. The Management grid
e. Ohio state studies
165. A textile mill senior supervisor Nikethkar encourages his subordinates to participate in their goal
setting. He also promotes team work by providing employees with work that is meaningful in a
dynamic workplace. He is transparent in his efforts to get the work done by the employees but do
not trust his employees. At the same time he is very particular about the regularity, punctuality
and meeting the deadlines. He pays incentives for the workers who successfully complete the
tasks and implements pay cuts for not meeting. Where do the characteristics of the manager fit in
Likert’s four systems of management?
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a. Exploitative-authoritative b. Benevolent-authoritative
c. Consultative management d. Authoritative leadership
e. Exploitative-benevolent
166. Robert, the CEO and Managing Director of Wonderworth, largest supermarket chain, is regarded
as a successful leader. His leadership is known for his high degree of concern for his employees.
He extends all his support to employees in accomplishing their tasks and motivates employees to
come up with new ideas. He believes that production will be high when people are taken care.
Identify the leadership style of Robert in the management grid.
a. Leadership style 1,1 b. Leadership style 1,9
c. Leadership style 5,5 d. Leadership style 9,1
e. Leadership style 9,9
167. Mitra, a production manager in a Textile Mill encountered a problem with overtime and wanted to
minimize it. He wanted his subordinates to solve the problem by themselves with confidence and
dedication with his guidelines. The team came up with very good ideas. They gave suggestions of
eliminating hours from positions that were already vacant and utilizing part time employees to
help fill open hours. Within one year, they were able to cut overtime by 33% overtaking the
expected 25%. Which theory of motivation is depicted here ?
a. Path-goal theory b. Contingency theory
c. Transformational leadership theory d. Situational or contingency theory
e. Trait theory of leadership
168. When an investor company with branches across the country was running in loss, its CEO who is
committed to implement a turnaround strategy selected some of his successful managers and
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executives to share their ideas and suggestions. He called them individually to his office and held
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discussions. Finally, he could come out with an innovative idea derived out of different ideas of
managers. What type of leadership style under Vroom YettonModel is used by the CEO in the
above case?
a. Autocratic I (A I) b. Autocratic II (A II)
c. Consultative I (C I) d. Consultative II (C II)
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e. Group II (G II)
169. Michelle Peluso is the chief executive of Travelocity, a US travel company. She planned to
implement a new business model called “seamless connectivity”. The model was developed to
improve the satisfaction levels of customers and suppliers. The successful implementation of the
model was questioned by the investors. She was confident that her model matches with
company’s philosophy of doing things differently. To influence the investors, she built a strong
relationship with employees and encouraged them to be innovative and committed in their work.
She also announced a weekly prize for exceptional and innovative worker. Her confidence and
commitment paid attractive profits. Identify the leadership exhibited by Peluso.
a. Autocratic leadership b. Bureaucratic leadership
c. Transformational leadership d. Transactional leadership
e. Charismatic leadership
170. When Louis Gerstner, Jr. a former CEO and Chairman of IBM entered the company, he found
that IBM was bigger software company than Microsoft and it worked only on IBM hardware. He
wanted IBM software to be used by several competitors. He changed the IBM culture by changing
the compensation system where rewards were based not on division or unit performance but on
total corporate performance. He changed the rules for promotions. He used to send e-mails to
employees to keep them posted of what is going on. Name the leadership exhibited by Louis
Gerstner.
a. Autocratic leadership b. Transformational leadership
c. Transactional leadership d. Democratic leadership
e. Bureaucratic leadership
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UNIT 18 – MANAGING COMMUNICATIONS
171. Deepak is a Soft Skills trainer and undertakes training sessions for engineering graduates,
executives and professionals. In one of his sessions explaining about the basics of
communication, he quoted definitions by some authors and concluded that communication is a
process of transmitting verbal and ______ information from the point of origin to the destination.
a. Non-verbal b. Non-Action
c. Non-Reaction d. Non-Response
172. Martin is working as a PRO in a sales agency. As a part of his job, he has to interact with the
customers, make deals, collect the feedback from the customers about the products, register and
pass on the complaints to the concerned in the office and resolve the problems of the customers
with respect to products, services and personnel. What is the significance of communication in the
above case?
a. Helping in planning and organizing b. Conveying important data and information
c. Bridging the gap between managers d. Maintaining harmony
e. Achieving organizational goals and objectives
173. In a meeting conducted by a production supervisor for the safety week celebrations, workers
recommended to display the safety measures stickers at concerned and appropriate places in
addition to the office notice boards. Accordingly, the stickers were displayed within a week.
Which element of communication is represented in displaying the stickers?
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a. Sender b. Transmission
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c. Noise d. Receiver
e. Feedback
174. Sridhar working as General Manager in a lubricant manufacturing company sent a sealed cover to
its plant manager. The sealed cover contained new policies and programs framed for the new
appraisal system to be implemented from the next year. The management issued instructions to
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the plant manager in the letter to communicate the same to the workers in the plant and also to
display the letter of authority in the notice board. What kind of communication is this?
a. Downward communication b. Upward communication
c. Crosswise communication d. Grapevine communication
e. Diagonal communication
175. In continuation to case no.174, workers discussed among themselves about the advantages and
disadvantages of the new appraisal system and sent their feedback in the form of a report. What
do you call this type of communication?
a. Verbal communication b. Horizontal communication
c. Nonverbal communication d. Upward communication
e. Grapevine communication
176. In a medical technology company, the top management decided to implement the new strategies
formed within the next two months. In the context, top management instructed the human
resources manager to interact and coordinate with the production manager in the implementation
process. The human resources manager arranged for a meeting with the production manager
following the instructions. Which type of communication represents the communication between
both the managers?
a. Vertical communication b. Upward communication
c. Horizontal communication d. Diagonal communication
e. Crosswise communication
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177. Karan has a meeting with the board members within a week of his return from a foreign trip. The
meeting agenda includes the progress of plans for establishing a plant in the foreign country.
Immediately on his arrival to the native country he encountered a problem in his department and
was busy in resolving it. He received a reminder a day before the meeting and in a hurry he could
not make an impressive presentation. Identify the communication barrier in the case that spoiled
the presentation.
a. Badly expressed messages b. Faulty translations
c. Semantic distortion d. Lack of planning
e. Impersonal communication
178. HR manger in a chemical supplies company sent a circular to employees explaining a new
insurance scheme to be implemented for them. Though the HR manager managed to send entire
details of the plans, employees were not convinced and requested to arrange a meeting with the
HR manager to get their doubts clarified and for further discussions on the plan. Name the barrier
of communication found in the above case.
a. Insufficient adjustment period b. Information overload
c. Impersonal communication d. Lack of trust in the communicator
e. Other communication barriers
179. In case no.178, The HR manager arranged for a meeting where the employees had a hot
discussion. Finally employees refused to accept the new insurance plan to be implemented.
Subsequently, HR manager asked them for proper explanation and their interest in further plans,
to communicate it to the top management. The manager handled the effective communication in
the case through_______________.
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a. Non-verbal cues b. Non-directive counseling
c. Trust in the communicator d. Sufficient adjustment period
e. Proper feedback
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180. In case no.179, before arranging for a meeting with the employees, the HR manager called the
workers leader for discussion on the issue. They had a long discussion of one hour where the
manager created an atmosphere of privacy and listened patiently to the questions posed by him.
He posed question on the rejections and asked him to express his feeling. What do you call the
initiative taken by the HR manager by talking to the union president?
a. Non-directive counseling b. Direct counseling
c. Convincing d. Compromising
e. Negotiating
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UNIT 19 – THE CONTROL FUNCTION
181. Ram is a manager in an Auto Repair Shop. On consultation with his mechanics, Ram set goals for
them to increase the customer satisfaction from the present 60% to 90%. He increased the repair
quota, the number of cars each mechanic must repair per week. Ram conducted a customer
satisfaction survey to that effect and gave guidelines to his employees on how to meet the set
goals. He reviewed the progress every month and corrected them wherever any deviations were
found. Finally he compared the actual results with the set goals at the end of the year and was
satisfied with the results. What do you call the process undertaken by Ram?
a. Controlling b. Staffing
c. Planning d. Organizing
e. Delegating
182. Ernst & Young, an international accounting firm makes man power planning based on the labor
hours required to perform specific services for each client. For the purpose it prepares a budget
for the labor hours to work. After the work is performed the actual labor hours spent by the
workers is compared to budgeted labor hours. The gaps observed help the management to make
analysis whether the employees were able to complete the work within the stipulated time and
accordingly plan for the future. Which two functions of management are reflected in the activities
specified in the case?
a. Directing and controlling b. Staffing and directing
c. Planning and controlling d. Organizing and planning
e. Staffing and organizing
183.
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In an industrial tool manufacturing company, Ketan is working as a quality inspector. Ketan
systematically plans the order processes and delivers the orders on time. As soon as he receives
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orders, he plans the production for six months and accordingly organizes the resources and
instructs the workers. He keeps reviewing the process once in a week to check the quality aspects.
Once at the time of review, he could find the defects of specifications and saved a large amount of
funds and time for the organization. Thus he is called a successful quality inspector. Ketan could
maintain the quality and supply the orders on due date by ___________________in time.
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a. Coping with uncertainty b. Detecting irregularities

c. Identifying opportunities d. Handling complex situations
e. Minimizing costs
184. Monica is a middle-level manager at Tasty Pizza’s for Hyderabad branch. Her job is to make plans
and implement them based on the strategic plans of management with regards to increasing
productivity, profits and sales volume. She has to create a set of calculated actions that take a shorter
amount of time and help the organization to get achieve its long-term goal. In the process she has to
conduct market research, analyze and update the tastes and preferences of the customers. For the
purpose, she reviews the process every fortnight and takes corrective actions if necessary to meet the
customer’s tastes and demand. What type of control is exercised by Monica in the case?
a. Tactical control b. Strategic control
c. Operational control d. Functional control
e. Divisional control
185. Jasinder has a heavy motor service station with a team of 50 workers. His strategic plan for the
current year included reducing the overall costs and increasing profit volumes. Among all the
alternatives he analyzed, reducing costs by reducing the service time by each individual was
considered the best. Accordingly he started planning to improve the repairing skills of the workers
by providing on the job training by senior members in the team. Explain where exactly is Jasinder
in the control process.
a. Determining areas to control b. Establishing standards
c. Measuring performance d. Comparing performance against standards
e. Taking corrective action when necessary
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186. In a large consumer products manufacturing company, Madhukar is working as a finance

manager. He has a team of four accounts officers for different product lines. But the overall
authorization and custody of the related assets was kept under his control except the accounting
part. As the size of the organization increased, Madhukar had to stretch his working time and
pace. To avoid mistakes due to overburden, the top management has decided to appoint
independent finance managers for categories of products. What type of control is being exercised
by the management in the case?
a. Direct control b. Indirect control
c. Preventive control d. Reactive control
e. Operational control
187. At St. Peters hospital, a new facility system was designed to reduce the errors in patient care and
at the same time to increase employee safety. They planned identical rooms, nonslip floors, and
glass walls with adequate lighting and ventilation. When the plan was being implemented, the
managers were instructed to walk around to interact directly with the patients and employees for
the feedback and to take corrective action, if necessary immediately. What do you call this type of
control?
a. Concurrent control b. Feedforward control
c. Feedback control d. Multiple control
e. Action control
188. In an enthusiasm to implement the total quality management, the manager at an aluminum tools
manufacturing company reviewed the progress of the executing plans regularly and overlooked
the cost burden. After one year, at the time of annual review, the cost evaluations revealed that the
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implementation costs exceeded the budgeted costs. To regain the lost amount, the manager had to
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put in extra efforts to minimize further costs. Name the factor that has been undermined in the
strategy implementation by the manager.
a. Control should be understandable
b. Control should be cost-effective
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c. Control should identify only important exceptions

d. Control system should be flexible
e. Control systems should provide accurate information
189. In an automatic traffic light, the program control changes occur at set moments. Even in case of
increase in the number of vehicles where complex control of the traffic light is required, it works
on a very simple feedback signal. The light changes every time the number of waiting vehicles
exceeds given quantity. The control system used in traffic lights is an example
for_________________.
a. Non-Cybernetic control system b. Multiple control system
c. Feedback control system d. Concurrent control system
e. Cybernetic control system
190. Maruti Suzuki India was awarded with ISO27001 Certification by STOC Directorate
(Standardization, Testing, and Quality Certificate), Ministry of Communications and Information
Technology, Government of India. The audits were carried out by M/s AVI, Belgium. The quality
management system of the company was certified next to ISO 9001:2008 standard. Re-
assessment of the quality systems was done at periodic intervals. For every three years, re-
certification assessments were done by a third party agency every year. The quality of information
at Maruti Suzuki India is reliable as it has got___________________.
a. The enterprise self-audit b. The certified management audit
c. Social audit d. Environment audit
e. Organization audit
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UNIT 20 – CONTROL TECHNIQUES
191. In a Multispecialty hospital, to avoid the problems that occur in emergency room, the
management allotted competent and skilled staff who can inspect and test equipment regularly
and can mange any medical emergency. Sufficient capital resources were also provided to meet
any medical emergency. All these efforts are put to see that things go in the right manner in the
emergency room. What type of control system is used by the management in maintaining the
emergency room?
a. Concurrent control system b. Feedforward control system
c. Feedback control system d. Multiple control system
e. Cybernetic control system
192. Madhu Joshi, a production manager in heavy industrial machine manufacturers planned to
propose the top management for replacement of its old machinery which are obsolete and out of
fashion to meet the current demand. For the purpose he checked whether the machines are bought
on finance and if so how much amount of interest is to be paid and the percentage of claim by
creditors on the assets owned. He took the help of a technique through which he could assess the
creditors claim. Name the technique that helped Madhu in the assessment.
a. Liquidity ratio b. Asset management ratios
c. Profitability ratios d. Debt management ratios
e. Current ratios
193. KGP group of hotels owner Gautam Ghani has been in the business since four years. His business
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has expanded across country with over 50 branches. Now he is planning to enter the fast food
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chain of business. Before he could step in to the new business, he was interested to check the
current status of his existing business. He wanted to know the assets, liabilities, and net worth of
the business. He took the help of one of the financial statements and analyzed his business
position which gave him satisfied figures and a sign to start his new business. Name the financial
statements that helped Gautam to execute his plans.
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a. Balance sheet b. Ratio analysis statement

c. Profit and loss account d. Cash flow analysis statement
e. Funds flow analysis statement
194. A UPS manufacturing company prompted a strategic plan to make investments by starting a
public relations office and a research and development center. Its strategy included collecting the
feedback from the customers from public relations office and then transferring the feedback to the
research and development for further innovations to meet the customer’s requirement. This idea
took almost two years to fetch the results and thereby to occupy the best place in innovations and
improve the productivity and sales of the company. What do you call these types of investments
in the context of an organization?
a. Discretionary expense centers b. Revenue centers
c. Profit centers d. Investment centers
e. Standard cost center
195. Shubham is successful in managing a group of hotels profitably. He wanted to spread his business
through auxiliary product lines to increase his profitability, where each unit adds a potential
profit. He got an idea to increase his operations by adding a snack bar for guests, gas stations and
stores for grocery, gyms or health clubs to generate extra income. He wanted to start new
operations in small size to experiment without incurring large amounts of expenses. This type of
investmentcomes under___________ of budgetary control.
a. Profit centers b. Revenue centers
c. Standard cost centers d. Investment centers
e. Profit centers
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196. Toyota engaged a team with a group of ten production members with not less than ten years of
experience in the company with a focus on developing employees in solving and eliminating
problems in control domain. The team followed the logic of PDCA (Plan-Do-Check-Act). The
experiments undertaken helped them to solve many operational problems such as reducing the
amount of concentration, variation in the coolant tanks which in turn reduced the defects in
machining and eliminated tool breakage problems on the machines. Today it has 0.05% defect
level in machining. This has also resulted in improving the morale and confidence of employees.
What do you call these types of teams in organizational context?
a. Quality circles b. Operation circles
c. Employee circles d. Production circles
e. Management circles
197. Xerox Corporation undertakes programs such as benchmarking, reduced supplier base and
leadership teams to learn what the competitor is doing and to set a level of quality, standard and
value to its products through comparison. In order to reduce its supplier base i.e. the number of
companies from whom it gets its materials from, Xerox has consolidated its group of suppliers
from individual suppliers to increase the accountability and to get the materials on time. This has
decreased the overhead costs because of shipping reductions and earned economies of scale
discounts. Further, it has also reduced the number of people required to take care of ordering
process thereby leading to less chances of errors. What do you call this technique of managing the
quality aspects in an organization?
a. Quality circles b. Operations management
c. Total Quality Management d. Production management
e. Operating circles
198.
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Nissan, a manufacturing company in Smyrna, Tennessee is known for its exceptional maintenance
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of raw material stock through just-in-time (JIT). It takes delivery of stock about 18 times per day.
To implement JIT, the team examined the entire supply chain for potential efficiency, and used
software for routing and scheduling to optimize collection and delivery of stocks. This has lead to
significant reduction in the car components stock holding activities. Since the day JIT is
implemented, the inventory was reduced from 2.5 to 0.7% days supply. These initiatives taken by
Nissan are the measures to implement _________________ in the organization.
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a. Financial control b. Budgetary control

c. Quality control d. Inventory control
e. Market control
199. A large spare parts supplying company holds huge items. Controlling has become a difficult task.
It searched the best ways of controlling the stock holdings. At last it came up with an idea based
on the principle that the money value is determined by multiplying the quantity of each item by its
unit price. Based on this approach, the high value items are more closely controlled than low
value items. Each item of inventory is divided in to three categories. First category represents
10% of the items and 75% of the money value; second category represents 20% of the items and
20% of the money value, third category 70% of the items and 5% of money value. This technique
of inventory control is called as ______.
a. Economic order Quantity (EOQ) b. Quality circles
c. FSN analysis d. ABC analysis
e. VED analysis
200. Prateek is an inventory manager and his job involves stocking the materials and resources needed
for the execution of organizational activities. He has to maintain the inventory at proper level to
overcome the problem of uncertainty of supply and demand. He has to control three kinds of
inventory – raw material, ____________and finished goods.
a. Work-in-progress b. Work-in-stores
c. Work-in-floor d. Work-in-stock
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UNIT 21 – PRODUCTIVITY AND OPERATIONS MANAGEMENT
201. A large paper bags manufacturing company was planning to increase its scale of operations to
reinvest the profits earned. It requested Kailash, the production supervisor to examine whether the
current human resources can meet the expected increase in the scale of operations. In the process,
Kailash started analyzing the efficiency of the current employees by comparing the outputs with
inputs in the form of ratios. As a result, he could suggest the top management to hire more human
resources to meet the target. What do you call the analysis used by Kailash in the case?
a. Production b. Productivity
c. Operations research d. Production management
e. Quality management
202. Mithilesh khanna works in a steel utensil manufacturing company. His job profile includes
controlling and coordinating the activities in making a product. His responsibility is to see that the
raw materials are converted into the required output by utilizing all the resources given by the
management. What do you call the management of these activities in an organization?
a. Production management b. Human resource management
c. Operations management d. Marketing management
e. Quality management
203. A manufacturing company adopts a new system of inventory management to avoid over stocking.
The new system involves the use of cards and containers to mover parts and components from one
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work area to another. When an empty container is sent to a workstation, it indicates that more
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parts will be needed shortly. Once these containers are full, production is stopped. If the process
at any workstation stops due to quality problems or a machine breakdown, all the workstations
involved in the process produce only until their containers are full and stop further production.
This type of production system is called ___________.
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a. Work simplification b. Time-event networks

c. Kanban d. Value engineering
e. Economic order quantity
204. The Gayatri Industries Pvt. Ltd. is a furniture manufacturing company located in Sangli,
Maharashtra, India. It wanted to improve its furniture designs. It has successfully added value
through in depth marketing research and the analysis of consumer demands. Based on the market
research, they developed an "ideal product" with the help of R&D and continuous cooperation
from the customers. This process is called ___________.
a. Work simplification b. Value engineering
c. Kanban d. Distribution logistics
e. Time-event networks
205. A large leather manufacturing company was becoming too complex and unmanageable and was
adding costs and slowing the decision making. The CEO wanted to resolve it through a permanent
solution. He discussed the issue with his senior team members on how to improve the productivity
while reducing costs and making decisions fast. He started educating employees about the
concepts and principles of techniques such as time and motion studies and helped them to
eliminate the idle time and workflow analysis to minimize the waste. Thus he could achieve the
improvement in performance. What do you call this technique of performance improvement?
a. Work simplification b. Kanban
c. Distribution logistics d. Critical Path Method (CPM)
e. Program evaluation and review technique (PERT)
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206. In a large electronic goods manufacturing company, the CEO felt necessity to appoint a manger
who could also undertake research to improve the process further. For the purpose, he was
expecting to appoint a person as manager who had statistics background in graduation and with
management at post-graduation. However, he could not find a perfect person and appointed two
different persons and asked them to co-operate each other in the tasks. But they could not
understand each other and always ended up in a dispute. What do you call this limitation in
operations research?
a. Magnitude of computation
b. Lack of quantification and involvement of qualitative factors
c. Magnitude of qualification
d. Gap between knowledge and practice
e. Gap between managers and operations research
207. Prakhyat, a production manager in an industry encountered problem due to non-availability of
labor and capital. He produces different lines of products and each product line has its own
profitability. He then had to make an optimal choice out of the different lines of products. He used
a technique for selecting an optimum combination of factors from a series of inter-related
alternatives, in subject to limitation, in order to achieve a desired goal. Name the technique that
Prakhyat has used to solve the problem.
a. EOQ b. PERT
c. Value engineering d. Linear programming
e. Work simplification
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208. In case no.207, Prakhyat formulated the problem, constructed a mathematical model as he had
mathematics background, derived a solution from the model. He then tested the model with a
limited capacity as it was effective; he put the solution into effect. What do you call this step-wise
procedure to be in the process of operations research?
a. The essentials of operations research b. Operations research methodology
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c. Operations research for planning d. Operations management importance

e. Operations research for controlling
209. A garment manufacturing company owner rented a warehouse and was incurring carrying and
holding costs. Out of the profits earned by him, now he wanted to own a warehouse. Before
deciding about owning, he wanted to conduct an analysis where he could confirm the chances of
reducing the costs by owning. He then calculated the cost benefit analysis to find the solution.
What do you call the elements of costs of ordering, carrying and holding the stocks that the owner
is calculating to make the decision?
a. Costs of inventory b. Costs of control
c. Costs of reviewing d. Costs of planning
e. Costs of staffing
210. In case no.209, the reason for owner to consider for owning a warehouse is because the cost of
storage was increasing with the increase in the level of inventory by increase in the scale of
production. Maintaining the required level of inventory levels was demanded. For some time
before making considerations, he was using a technique to maintain the level of inventory in the
minimum space available in the warehouse. What is that technique used by the owner called?
a. Dynamic programming b. Linear programming
c. Game theory d. Probability
e. Economic order quantity (EOQ)
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UNIT 22 – MANAGERMENT INFORMATION SYSTEMS
211. Rahul is an accounts manager in a large automobile showroom. He is responsible to take care of
cash dealing for that particular showroom. He has an assistant who takes care of the day-to-day cash
transactions in the showroom. At the end of the day he seeks the information of transactions for to
send a detailed report of sales and expenses to the distantly located office through internet facilities.
What do you call the information that is collected by the accounts manager in the showroom?
a. External information b. Internal information
c. Local information d. Global information
e. People information
212. Prateek as a CEO for a Plastic manufacturing company wanted to adopt green strategies in the
manufacturing process for sustainable development. For the purpose, he wanted to collect the latest
technologies available all over the world that is relevant to green strategies. He approached all his
managers and executive teams to share their ideas. He also started collecting the information
through the internet from the relevant websites. He then stored all the data he collected in his Laptop
and reviewed the information for further planning and process implementation. What do you call the
procedure adopted by Prateek in his strategy implementation?
a. Management information system b. Security information system
c. Data entry and validation d. Data administration
e. Data integrity
213. Subhash was making preparations to attend an international conference. He was ready with all the
slides for his presentations. He sent all the documents through word/power point documents to the
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concerned officials before hand as per the requirements of the conference team. At the same time
he also stored his presentations and relevant information for the conference in a machine readable
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device that could be retrieved by connecting the device to the computer system there at the
conference during presentation. What do you call the equipment/device that is connected to the
computer system in information systems language?
a. Software b. Data ware house
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c. Hardware d. Groupware
e. Program ware
214. In a multinational software company, Prasan Chakraborty was assigned the job of collecting
relevant and confidential information for a very important project having strict deadlines and
short period to complete. He sincerely put all his efforts in collecting the data and ensured that all
the data was entered in to the system file. He minimized the redundancy and ensured the
uniformity of data for the use and stored in his office desktop. As this is the first time he is
dealing with confidential matter, he gave a password to his system. What do you call the
precaution taken by Prasan in the information system procedure?
a. Data entry and validation b. Data management
c. Data retrieval d. Data storage
e. Security and integrity
215. A small data services company has three teams working for it. One team collects the information
requirements form the clients and forwards it to the information collection team and in turn is sent
to the information processing team. Initially, all these works were done manually and three teams
were helpful in coordinating and completing the job. But, as the size of the company has grown,
the information sharing and coordination has become a difficult task. The management decided to
enhance communication across the teams by providing intranet network facilities through
automation of document processing and enhance coordination and improve their performance.
The new system of intranet facility is referred to as______________________.
a. Transaction processing systems b. Decision support systems
c. Executive support systems d. Office automation systems
e. Electronic systems
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216. ABN AMRO, an international bank has its headquarters located in Hong Kong. It has more than
3000 branches across the globe in 60 countries. ABN AMRO chose Teradata Data Warehouse to
construct a platform for business decisions with focus on customer relationship management in
Asia. The data warehouse will help ABN AMRO in developing consumer businesses in Asia. It not
only allows the regional headquarters in Hong Kong to view the region's total business but also
shows the performance of each individual country's business. At the same time, each country can
also have a view of its own data. Teradata system that is used by ABM AMRO is called as _______.
a. Office automation systems b. Transaction processing systems
c. Executive support systems d. Decision support systems
e. Data support systems
217. In India, all the government transport reservation systems have been automated for easy access of
information and online bookings. A passenger can easily access the information regarding the
services to different destinations, their prices and departure and arrival timings and availability
and non-availability of seats etc. He can select a seat and nobody else can get the same seat even a
second later. He can book his tickets online and generate a soft copy of tickets. Any changes you
make to your reservation is also updated in real time. These types of information systems are
called as ______________.
a. Office automation systems b. Transaction processing systems
c. Executive support systems d. Decision support systems
e. Data support systems
218. Airplane maintenance requires a computer based system that effectively gives information about
the navigation, audio and more detailed internal diagnostics. The critical parts in an airplane are
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carefully inspected after a definite number of flight hours. A system is used to assist safety
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inspectors in making sure that no critical parts are missed and everything is appropriately dealt
with. In order to ensure outstanding safety record, the senior management would be interested in
regular checking/ inspection program for effective working. An information system that provides
these facilities is known as___________________.
a. Executive support system b. Manager support system
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c. Crew support system d. Staff support system

219. Rosenbluth International is a global player in the travel agent industry. But the digital revolution
introduced threats to its business as airlines and hotels started providing online services. In order
to meet the challenge, the company came up with two strategies. First, it had decided to get out of
the travel business and secondly to rebate customers with the entire commission the agency
receives and bill those by service provided. For the purpose, it used a web-based travel planning
technology, policy and profile management tools including the front-line services. This allowed
the customers to book reservations anytime and anywhere in minutes. The technology that helped
the Rosenbluth is __________________.
a. Security information system b. Office automation systems
c. Management information system d. Transaction processing systems
e. Data administration
220. With an increase in the number of clienteles, a marketing research firm has planned to introduce
electronic equipment that could analyze large amounts of data with accuracy. As the emphasis of
information is shifted from the speedy and efficient processing of data, it was searching out for
equipment that could not only help in record keeping and data processing but also in analyzing the
information in an effective manner. One such electronic equipment that could help the firm is _______.
a. Electronic data processing b. Electric data processing
c. Manual data processing d. Master data processing
e. Executive data processing
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MULTIPLE CHOICE – ANSWERS AND EXPLANATIONS
UNIT 1 – MANAGEMENT: AN OVERVIEW
1 d. a & b- Harold Koontz and Heinz Weihrich defined management as “the process of designing
and maintaining an environment in which individuals, working together in groups, efficiently
accomplish selected aims.”
2 d. a & c- Entrepreneurial role and Resource allocator: The four decisional roles of a manager
include entrepreneur-to seek innovative methods to improve the performance of a unit or the firm,
disturbance handler- take remedial actions for situations, resource allocator- allocate various
resources of the organization such as money, time material etc, negotiator- negotiate with other
units or other parties like suppliers, customers and government.
3 e. All the above: Managers perform five basic functions within an organization such as Planning
– to decide the mission and objectives of the firm; Organizing- assigning and allocating tasks,
authority and resources; Staffing- manning the various positions in the organizational hierarchy;
Leading- directing, influencing, and motivating employees; Controlling – continuous
measurement and analysis of actual operations against the established standards during planning.
4 c. First-level Managers: Managers at the first-level have the responsibility to manage the
performance of the non-managerial personnel in an organization and ensure implementation of
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operational plans. They are called with different titles in different companies such as Supervisors,
foreman, Clerical Supervisor or Technical Supervisor.
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5 a. Controlling: Top-level managers spend time on planning and organizing than the lower-level
managers. The first-level managers spend more time in leading than higher levels. Whereas time
spent on controlling is similar at all three hierarchical levels.
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6 e. a & c: A person’s ability to use methods, processes and procedures in a specialized field is
known as technical skill. Conceptual skills are the skills that are required by the managers to
conceptualize abstract and complex situations. These skills are essential to possess a clear
understanding of the overall functioning of the organization and relate it to the external
environment.
7 b. Human skills: Human skills refer to the ability to work with other people as individuals and in
groups. They help employees to communicate, motivate, lead and inspire others in an
organization.
8 d. The McKinsey’s 7-S framework: The seven S”s used in this approach are strategy, structure,
systems, style, staff, shared values and skills. These seven elements help estimate the
effectiveness of a firm. If one element changes, it will affect all the others.
9 b. The “management science” approach: A successful businessman must be very quick and
accurate in decision making. The statistics helps businessman to make correct decision about the
location of business, marketing of the products, financial resources etc. This approach treats
management as a logical process, which can be expressed in terms of mathematical symbols and
relationships.
10 a. The contingency or situational approach: In this approach, the main assumption is that there
is no hard and fast rule for all situations. Managerial practice depends upon circumstances.
Different circumstances may necessitate the use of different methods.
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UNIT 2 – EVOLUTION OF MANAGEMENT THOUGHT
11 b. Robert Owen: The earliest contribution to the concept of management can be traced to Robert
Owen, a British factory owner who was concerned about the work environment of his workers
and executed reforms in the operational process.
12 e. Charles Babbage: Charles Babbage (1792-1871) is known as the “father of modern
computing”. He was a pioneer not only in the field of computing but also in the field of
management. His major contributions in the field of computing were the world’s first mechanical
calculator and an “analytical engine”.
13 a. Henry Robinson Towne: Henry R. Towne emphasized the need to consider management as a
separate field of systematic study on the same level as engineering in a paper “The Engineer as an
Economist,” presented in 1886. F.W. Taylor who attended the presentation was influenced by
Towne’s ideas, developed the principles of scientific management
14 a. Scientific Management: Under scientific management, Taylor tried to determine the best way
to perform each and every job by introducing a method called “time-and-motion” study. To
resolve the problem of wage system, he advocated the use of piece-rate incentive system with an
aim to reward a worker who meets the established standards of performance.
15 c. Gantt Chart: Gantt’s charting procedures were precursors of today’s PERT. The Gantt chart
was the first simple visual device to maintain production control. The chart indicates the progress
of production in terms of time rather than quantity.
16 b. Bureaucratic management: Max Weber propagated the belief that an organization should
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have a defined hierarchical structure managed by clearly defined regulations and lines of
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authority.
17 e. Chris Argyris: Argyris points out that inherent conflict between the healthy individual and the
rigid structure of the formal organization. He argues that it can be corrected by techniques such as
job enlargement and job loading, which increase the work related responsibilities of the individual
and allow him to participate in the decision-making process.
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18 a. Management Information Systems(MIS): MIS aid in designing and implementing computer

based information systems for management applications. Data collected, analyzed, and made
available to managers when they need it.
19 d. Theory Z: The Theory Z proposed by William Ouchi involves providing job security to
employees to ensure their loyalty and long-term association with the company. It involves job
rotation of employees to develop their cross-functional skills.
20 b. Contingency Theory: Theory states that there is no single principle to manage all the
situations in an organization. Managers should identify the situations, interpret them, and apply
the approach which suits the situation best.
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Multiple Choice – Answers and Explanations
UNIT 3 – SOCIAL AND ETHICAL RESPONSIBILITIES OF MANAGEMENT
21 b. Social responsibility: Social responsibility is the duty of an organization to take measures to

protect the welfare of society, along with its own interests. Beyond making profits, organizations
should have social responsibility towards stakeholders.
22 c. New avenues to create profits: Social responsibility involves the conservation of natural
resources. Items that had been considered waste earlier can be recycled and profitably used again.
23 a. Favorable public image: Through social involvement, a firm can create a favorable public
image for itself and endear itself to society. By so doing, a firm can attract customers, employees
and investors.
24 e. All the above: Business enterprises are primarily accountable to six major interest groups;
shareholders, employees, customers, creditors and suppliers, society and government.
25 c. Direct corporate investment: Companies make direct investments to provide facilities for a
locality or a community. They launch local schools, businesses and community technology
centers with equipment and training in the latest digital technology to offer technological literacy
to residents of under-served communities.
26 d. Pollution control: Pollution is a major problem caused by rapid industrialization. Increasing
public awareness and government pressure have made corporations more environment conscious.
27 e. Managerial ethics: Ethics is a set of principles or standards by which human actions can be
judged. According to Clarence D. Walton and La Rue Tone Hosmer, “Business ethics is
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concerned with truth and justice and has a variety of aspects such as the expectations of society,
fair competition, advertising, public relations, social responsibilities, consumer autonomy and
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corporate behavior in the home country as well as abroad.”
28 b. Issue intensity: An issue can be considered ethical or unethical depending on certain factors
like the extent of harm, consensus about wrong, proximity to victims and concentration of effect.
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29 a. Ethics committee: An ethics committee is responsible for framing ethical policies and
implementing them in the right manner.
30 b. Ethics hotline: This is a special telephone line that enables employees to bypass the proper
channel for reporting their ethical dilemmas and problems. The line is usually handled by an
executive who investigates the matter and helps resolve the problems of the concerned employee.
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UNIT 4 – FUNDAMENTALS OF PLANNING
31 e. All the above: Planning is goal-oriented-It is a means for achieving set goals or objectives;
Planning is all-pervasive: Planning function extends throughout the organization. It is an
essential aspect of management at all executive levels. Predicting future trends and preparing for
them is an integral part of planning.
Planning is forward-looking: Planning is primarily concerned with anticipating the future.
Planning is an integrated process: Plans made at different levels are interdependent and
interrelated. The top level of an organization develops strategic plans, on the basis of which the
middle level of management develops tactical plans. In turn, the lower levels of management
develop operational plans on the basis of tactical plans.
32 d. Planning offsets uncertainty and risk: The action plans can be either be primary or
contingent in nature. Primary plans are formulated by managers on the basis of their future
expectations of political, legal, economic, technological and social environments.
33 c. Ensuring better coordination: Planning is essential for coordinating the activities of an
organization. Well developed plans unify interdepartmental activities so that the various
departments work together to achieve organization goals.
34 a. Strategic plans: Strategic plans are long-term plans that apply to the entire organization.
Strategic plans are applicable to the entire organization and are generally developed by the top
management in consultation with the board of directors and the middle management.
35 b. Policies: A policy defines the broad area within which the organizational members operate. It
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ensures that members confine themselves to the organization’s objectives.
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36 c. Intermediate-term plans: These define the organizational activities and also provide direction
to the middle-level mangers. They cover time periods ranging from one to five years.
37 d. Evaluating available alternatives: Alternatives must be evaluated in accordance with the
premises and the objectives of the firm. While evaluating an alternative, many variables must be
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taken into account due to the uncertainty of the outcome of the alternative.
38 b. An Open Systems Approach: Managers should adopt an open systems approach to make the
planning process effective. Since it introduces an element of flexibility in planning, thus making it
effective.
39 e. Time consuming process: The collection of data and revision of plans make planning time-
consuming, and in the process, opportunities may be lost.
40 d. Resistance to change: Employees resist change and planning requires willingness on the part
of employees to change and also to take risks.
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UNIT 5 – MANAGEMENT BY OBJECTIVES
41 a. Management by objectives: Harold Koontz and Heinz Weihrich defined Management by

Objectives (MBO) as “a comprehensive managerial system that integrates many key managerial
activities in a systematic manner and that is consciously directed toward the effective and efficient
achievement of organizational and individual objectives”.
42 c. Bottom-up approach: In the bottom-up approach the subordinates formulate the objectives
and get the approval from superiors.
43 b. MBO Process: The process of MBO emphasizes clarity and balancing of organizational
objectives and the participation of managers and subordinates at all levels of the organization. The
managers and subordinates sit together to set objectives in their relevant areas.
44 d. Commitment: MBO encourages employees to show a commitment to achieving the goals.
45 b. Emphasis on short-term goals: For quick results, managers emphasize more on short-term
goals and giving less emphasis to long-term goals. Therefore, the top management should ensure
that short-term goals should be in accordance with the long-term goals.
46 e. Effective feedback: Regular performance reviews should be conducted and feedback should be
provided.
47 c. Development of effective controls: Effective control is possible because MBO makes the
management state the objectives clearly. The availability of clearly stated objectives gives the
direction for effective control and helps the manager take corrective action in case of deviations.
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48 a. Encouraging participation: The commitment and participation of the employees at all levels
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of the organization is essential and has to be encouraged.
49 b. Failing to teach MBO philosophy: Managers should communicate the benefits of the MBO
process to their subordinates. Failure to understand and make others understand the philosophy of
MBO leads to the failure of the MBO process itself.
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50 a. Top-level:- For MBO to be successful, continuous support from the top management is
essential.
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UNIT 6 – STRATEGIES, POLICIES AND PLANNING PREMISES
51 d. Strategy: Strategy refers to the determination of the mission, and the basic long-term
objectives of an enterprise and the adoption of courses of action and allocation of resources
necessary to achieve these objectives.
52 b. Giving a direction to planning: The key function of strategies and policies is to give a
specific direction to plans. They serve as a guide for the achievement of organizational goals.
53 c. The corporate portfolio approach: Under this approach, each business unit is analyzed and
evaluated based on their performance, relative to their competitors and their internal makeup. The
most popular device used for portfolio analysis is the BCG matrix.
54 d. Business-level strategy: An organization with multiple businesses requires business-level
strategies. Each business, which operates independently and has its own goals and strategies, is
called a strategic business unit. The business-level strategy is related to the development of a
competitive advantage for the goods and services that are produced.
55 a. Strategic planning process:- Strategic planning is a six-step process, which includes planning ,
implementation and control stages; Defining the mission of the organization, drawing up
organizational objectives, assessing organizational resources, risks and opportunities, formulating
strategy, implementing strategy, monitoring and adapting strategic plans.
56 a. Communication strategy: Formulating meaningful strategies is of no use unless these are
communicated to the managers who are in a position to implement them. Strategies should be
communicated in writing, and it should be ensured that all those involved in implementing these
strategies understand them well.
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57 e. Reward Systems: Reward systems consist of tangible rewards such as bonuses, awards, and
promotions as well as intangible rewards like personal feelings of accomplishment and challenge.
Good reward systems help in motivating employees to perform better and provide support to a
given strategy.
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58 c. Contingency strategy: A manager should always be prepared with a contingency plan to

counter unforeseen changes in competitive factors or other external environmental elements. In
such a case, the manager has to proceed on the most reliable set of premises to come up with at eh
given time. Contingency plans help managers to deal with unforeseen situations.
59 b. Planning premises: Planning premises are defined as the anticipated environment in which
plans are expected to operate. They include assumptions or forecasts of the future and known
conditions that will affect the operation of plans.
60 d. Ensuring that action plans contribute to and reflect major objectives and strategies:
Action plans and decisions should reflect the desired objectives and strategies. There are several
ways in which the contribution of action plans to major goals can be ensured. The managers at all
levels can review the recommendations of staff advisers and line subordinates to make certain that
the action plans are consistent and contribute to the development of the organization.
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UNIT 7 – MANAGERIAL DECISION MAKING
61 a. Rational decision-making: According to rational model, managers engage in a decision-

making process which is totally rational. They have all the relevant information needed to take
decisions. They are also aware of different possible alternatives, outcomes and ramifications, and
hence make rational decisions.
62 d. Satisficing model: In the 1950s, Simon propounded the concept of bounded rationality. This
concept suggests that the managers may not always be perfectly rational in making decisions.
Simon argues that instead of searching for the perfect or ideal decision, managers frequently settle
for one that will adequately serve their purpose. He contends that managers accept the first
satisfactory decision they uncover, rather than searching till they find the best possible decision.
63 b. Non-programmed decision-making: Decisions developed to deal with unusual or exceptional
problems are known as non-programmed decisions. Since non-programmed decisions involve
situations that are unstructured, it is impractical to have predetermined decision rules for them.
64 c. Decision-making under uncertainty: A condition of uncertainty exists when the future is
unpredictable. The decision maker is not aware of all the available alternatives, the risks
associated with each, the consequences of each alternative or their probabilities.
65 e. Management Information System: Management Information System (MIS) is a system that
gathers comprehensive data, organizes and summarizes it in a form that is of value to functional
managers, and provides them with information they need to carry out their work.
66 a. Group decision-making: Large and complex organizations practice group decision-making.
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Since several members contribute their ideas in this kind of decision-making, the decision outputs
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are often better than individual decisions.
67 c. Delphi group technique: This technique uses the views of a panel of experts with a consensus
being developed based on their opinions. The opinions of all the experts are collected to calculate
an average.
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68 d. Queuing theory: This technique is used for balancing the services provided and the waiting
lines. Queuing occurs when there is a difference between the demand and supply of a product.
Organizations should work towards striking a balance between the two.
69 c. Linear programming technique: This is a technique used to make the optimum allocation of
an organization’s scarce resources to achieve a particular objective. This technique can be applied
in situations where two or more activities compete for limited resources and there is a linear
relationship among situations.
70 a. Ratio analysis: This ratio helps in interpreting financial statements to determine the strengths
and weaknesses of a firm and also in evaluating past performance and the present financial
condition.
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UNIT 8 – FUNDAMENTALS OF ORGANIZING
71 b. Organizing: Organizing is a managerial function that deals with the allotment of duties,
coordination of tasks, delegation of authority, sharing of responsibility, and allocation of
resources.
72 a. Benefits of organizing: Effective organizing provides numerous organizational benefits. The
process of organizing helps maintain the logical flow of work activities. By doing so, it helps
individuals and workgroups to easily accomplish their tasks.
73. e. Division of labor: Max Weber, a classical management theorist and a German sociologist
believed that effective organizations had a formal structure and followed a predefined set of rules
and regulations. One of the characteristics says that every individual in the organization
specialized in doing a specific task.
74 b. Open system: The open-system approach to organizing is considered more rational than the
closed-system approach because it provided a more realistic view of the interaction between an
organization and its environment and emphasized the need for flexibility and adaptability in
organization structure.
75 c. Departmentation by time: Departmentation by time is mostly used in organizations that
function round the clock. In such organizations, departmentation ensures operations throughout
the day by segregating workers into various shifts. The benefits of this system are that the
organization can make its services available to customers round-the-clock.
76 a. Deparmentation by products: A basic consideration to be kept in mind while selecting a basis
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for departmentation is that the organizational structure should help a manager achieve
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organizational goals efficiently and effectively.
77 d. Products: Every organization is different from the other. It has to select the pattern of
departmentation, depending on the situations it faces – the tasks to be performed and the manner
in which they should be performed, the technology being used in the department, the individuals
and their personalities and other internal and external environmental factors.
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78 b. Bottom-up approach: According to Barnard’s acceptance theory, organizations are

cooperative systems where the authority that a leader has over his subordinates is determined by
the subordinate’s willingness to comply with it.
79 a. Process or equipment: This type of departmentation, the activities is grouped on the basis of
process or equipment, which draw people together to carry out a particular function. It provides
the benefit of specialization and facilitates the optimum use of resources.
80 d. Informal organization: An informal organization is “ a network of personal and social
relations not established or required by the formal organization but arising spontaneously as
people associate with one another.”
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UNIT 9 – STRATEGIC ORGANIZATION DESIGN
81 a. Tall structure: A tall structure comprises many hierarchical levels with narrow spans of
control. It has certain demerits like delays in decision-making and communication is less effective
due to frequent blockages and distortions.
82 c. Clarity of delegation of authority: The main reason why a manager is overburdened with
time-consuming contacts with subordinates is because tasks have not been organized properly and
delegation of authority is not clear.
83 c. Use of staff assistance: Managers can manage a larger number of subordinates by delegating a
certain amount of work for staff assistance, who gather information and communicate orders and
instructions to the subordinates. This process enables managers to save time and allow them to
widen their span of control.
84 d. Reward power: The basis for reward power is the ability of the influencer to reward the
influence for performing a job well or meeting other organizational requirements.
85 c. Coercive power: Coercive power is the negative dimension of reward power. It is based on the
influencer’s ability to punish the influence for failing to perform a job well.
86 a. Centralized: Centralization refers to the top management retaining the control in areas of
decision making. In a centralized organization, only the top management makes the decisions.
87 e. Decentralized: According to Louis A. Allen, “Decentralization applies to the systematic
delegation of authority in an organization-wide context.” Decentralization is the granting of
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decision making authority by management to lower level employees.
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88 c. Encroachment of line authority: The line managers perceive staff personnel as invading their
territory by giving recommendations and advice on matters that come within the purview of line
managers. Thus, the encroachment of his authority by a staff functionary affects the proper
functioning of the line manager’s department.
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89 b. Fear of subordinates’ advancement: A manager may not delegate authority effectively due to
two reasons. One of the reasons is the superior may fear that the subordinate may excel in is job to
such an extent that he may become a contender for the manager’s position, status, and title.
90 a. Lack of information and resources: Subordinates are reluctant to accept delegation when they
do not have adequate information and resources. When tasks are not clearly defined, when
adequate authority is not delegated, when instructions are vague, and resources are scarce,
subordinates are unlikely to do a good job and their enthusiasm for delegated work dwindles.
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UNIT 10 – STRATEGIC ORGANIZATION STRUCTURE
91 b. The Grapevine: The grapevine refers to the informal communication network present
throughout the organization. In an informal organization, employees across different levels come
to know each other and pass on information related to the organization. At times, the information
shared may only be gossip.
92 a. Functional structure: A functional structure is a type of departmentalization in which
positions are grouped according to their main functional (or specialized) area. In other words,
positions are combined into units on the basis of similarity of expertise, skills and work activities.
93 d. a & c: Coordination and Specialization: A functional structure encourages employees to
become specialized in a particular area and develops their expertise. It allows easy coordination
within departments in a particular specialized area, as the activities are inter-related.
94 c. Divisional structure: The process of dividing large functional pyramids into smaller and more
flexible administrative units is called divisionalization. In a divisional structure, positions are
grouped according to the similarity of products, services, or markets.
95 a. Control: Product divisions may increase the problem of control at the top management level.
This is so because the management of an organization may find it difficult to monitor the
activities of different product departments.
96 e. Strategic Business Unit: Strategic Business Units (SBUs) are separate businesses set up as
units within a larger company. They handle and promote specific products and product lines as if
they were an independent business and ensure that they receive adequate attention. An SBU has a
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distinct mission, strategies, objectives, and a defined set of competitors.
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97 b. Business entity: Strategic Business Unit is a distinct business entity managed independently
with respect to other businesses within an organization.
98 a. Matrix structure: A matrix structure is a type of departmentalization that superimposes a
horizontal set of divisional reporting relationships onto a hierarchical functional structure. It is
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also known as grid organization or project management organization.

99 b. Team: A matrix structure has two chains of command – vertical and horizontal. It facilitates
decentralization of decisions, teamwork, and effective utilization of human resources.
100 d. Hybrid structure: Hybrid structure is a combination of both the functional and divisional
structures at the same level of management. Organizations adopt this structure to reap the benefits
of all structures.
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UNIT 11 – EFFECTIVE ORGANIZING AND

ORGANIZATIONAL CULTURE
101 b. Avoiding mistakes: Effective organizing depends on setting realistic objectives and to achieve
those objectives, systematic planning is required. Planning organization structure helps the
managers to estimate future personnel needs and to determine the training required by employees.
It also helps to have a clear idea of the kind of employees the organization requires and their
experience.
102 e. Organizational inflexibility: An organization should avoid being inflexible in the face of a
changing environment. A properly planned organization structure will help it to enhance its ability
to meet new contingencies.
103 a. Reorganization: Reorganization is generally done in response to changes in an organization’s
environment. Factors that force a firm to reorganize are: Mergers, acquisition or sale of major
organizational assets, influence of competitors in the market, etc.
104 a. Organizational chart: An organizational chart is a vital tool for providing information about
organizational relationships. It is a diagrammatic representation of the major functions and their
respective relationships, the channels of formal authority, and the relative authority of each
manager who is in charge of a specific function.
105 c. Organizational culture: Culture has a huge impact on management practices. According to
Smircich, “organizational culture is a system of shared values, assumptions, beliefs and norms
that unite the members of an organization.” Culture is derived from different sources such as
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strong founders, critical incidents, and major changes in the environment.
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106 d. Leading to common behavioral aspects: When members of an organization interact with one
another, they use a common language, and use the same jargon and rituals.
107 e. Step v: The organizational social process refers to the process that helps new employees adapt
themselves to the organization’s culture. In the process, employees are expected to understand the
most important values of the organization and adhere to them.
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108 b. Entrepreneur: Entrepreneurship generally refers to managing small, independent businesses.

As entrepreneurs, managers must try to capitalize on the available opportunities and improve the
organization’s position in the industry.
109 a. Intrapreneur: According to Pinchot, “An intrapreneur is a person who focuses on innovation
and creativity and who transforms a dream or an idea into a profitable venture by operating within
the organizational environment. In contrast, the entrepreneur is a person who does the same, but
outside the organizational setting.”
110 c. Environment: It is the manager’s responsibility to build an environment that facilitates the
achievement of group goals, he or she must encourage entrepreneurial employees to make the
most of any particular opportunity.
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UNIT 12 – HUMAN RESOURCE MANAGEMENT AND STAFFING
111 b. Forecasting manpower demand: This involves determining the number of people required by
the organization in the future and the abilities they need to have that enable the organization to
remain in operation.
112 a. Skill inventory: A skill inventory is a computerized database, which contains basic
information pertaining to each employee. This information can be used to assess the likely
availability of individuals for meeting current and future human resource needs.
113 c. External labor supply: Sources of external supply include advertisements, educational
institutions, employment agencies, voluntary applicants, referrals by employees existing in the
organization.
114 d. All the above: When staffing, it is necessary to take into account internal factors of the firm
such as personnel policies, the climate in the organization, and the appraisal system.
115 e. Training and development: Training is usually undertaken for new recruits as well as for
existing manpower to advance in the organization. Employees at all levels require some training
at some point of time in their careers. Development programs are designed to educate employees
beyond the requirements to help them get accustomed to the organizational climate. Development
is long-term in nature and helps employee to fit into the organization.
116 b. Compensation plans: Compensation consists of the wages paid directly to the employees for
the amount of time worked or the number of units produced. It also includes the monetary and
non-monetary benefits that an employee receives as part of his employment with the organization.
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A sound compensation program enhances the organization’s ability to attract and retain the
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employees.
117 a. External recruitment: This involves attracting people from outside the organization to apply
for vacant positions in the organization. The external sources include advertising, educational
institutions, employment agencies, voluntary applicants, referrals by current employees.
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118 d. Recruitment process: The recruitment process starts when a vacancy arises and is reported to
the human resource department. The recruitment process consists of five steps:
i) perform job analysis, ii) Designing job description, iii) developing a job specification, iv)
attracting a pool of applicants and v) selection.
119 c. Comprehensive interview: At this stage, a detailed interview is designed to find out more
details about the applicant that helps in evaluating the suitability of the candidate. Usually, the
manager to whom the applicant is supposed to report conducts this interview.
120 e. Socialization: The process of adaptation by a new employee is referred to as the socialization
process. There are two levels of socialization. The first level – initial socialization occurs during
the recruitment, selection and during the introductory training efforts made by the firm. The
second level – extended socialization aims at making the new recruit feel that he or she is an
integral part of the company.
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UNIT 13 – PERFORMANCE APPRAISAL AND CAREER STRATEGY
121 e. Performance improvement: Performance appraisal is the process by which organizational

expectations for employee performance are defined followed by the measurement, evaluation and
recording of actual performance. The major purpose of performance appraisal is to influence, in a
positive way, both employee performance and organizational development.
122 a. Informal appraisal: An informal appraisal is where the manager mentions that a particular job
was performed well or poorly during the performance of the job or immediately after the job is
performed. In an informal appraisal, continuous feedback is provided regarding the performance
of employees.
123 b. Formal appraisal: Formal appraisals are usually conducted annually or semi annually or on a
systematic basis. In this process, it is important for managers to evaluate employees not only on
their present performance, but also on their ability to perform different tasks effectively in the
future.
124 c. Corrective action: In the final stage of performance appraisals, the employee is either
rewarded for his/her performance through monetary and non-monetary benefits like incentives,
pay-raises, promotion, etc. In cases where there is scope for improvement, the employee is given
training to bridge the difference between expectations and actual performance.
125 e. Behaviorally Anchored Rating Scales (BARS): BARS concentrates on the behavioral traits
demonstrated by the employees instead of his actual performance. The main advantage of BARS
is that it increases the relevance of the system to each job and also improves its acceptance by
employees.
126
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a. Graphic Rating Method: This method of appraisal requires the rater to rate the employee on
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factors like quantity and quality of work, job knowledge, dependability, punctuality, attendance
etc. Graphic rating scale includes numerical ranges as well as written descriptions.
127 c. Weaknesses of appraisal against verifiable objectives: There are certain inherent weaknesses
in the implementation of MBO. Luck plays an important role in the performance of an individual.
This method does not take into consideration the managerial abilities of an individual and
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concentrates only on the individual’s operating performance.

128 d. Consistency testing and strategic choices: Though a person may have certain skills that are in
demand in the job market, a career in that field may not be congruent with personal values or
interests. Hence strategic choices require trade-offs. They require rational and systematic analysis
of an individual in analyzing his personal preferences, ambitions, and values.
129 e. Implementation of career plan: Career planning starts during performance appraisal and it is
the right time to discuss an individual’s personal growth and development. At this stage, personal
goals and ambitions can be considered in designing training and development programs.
130 a. Monitoring progress: Progress towards career goals must be monitored and necessary
corrections in the aims or plans must be made. Performance appraisal is the right time to assess
career programs. Apart from this progress has to be monitored as and when a task or project is
completed.
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UNIT 14 – ORGANIZATIONAL CHANGE AND ORGANIZATION

DEVELOPMENT
131 d. Nature of the workforce: Globalization has led to a multicultural work environment. So,
organizations should form policies and programs that will be helpful in effectively managing the
diverse workforce.
132 b. Individual resistance: Individual resistance arises due to differing perceptions, personalities
and needs. Some of the reasons for an individual’s resistance to change are habits, security,
economic factors, fear of the unknown and selective information processing.
133 a. Limited focus of change: Systems and processes in organizations are interdependent. So,
change in one system will definitely have an impact on other systems. Hence, change in
organizations does not have a limited focus.
134 e. Education and communication: This involves explaining the need for and the logic of change
to individuals. It involves providing adequate information and making sure that the change is
communicated clearly to those it will affect. Communication can be achieved through face-to-face
discussions, formal group presentations, or special reports or publications.
135 c. Participation and involvement: Resistance tends to be less pronounced when the individuals
who will be affected by a change are allowed to participate in planning and implementing it.
Personal involvement through participation tends to defuse both rational and irrational fears about
the change. I
136 c. Change agent: After diagnosing the situation, OD interventions or change strategies can be
designed and implemented with the help of a change agent.
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137 d. Techno structural activities: This technique is used to improve work technology and
organization structure. It is intended to help employees evaluate themselves and to make
appropriate changes in task design, work methods, and organization structure.
138 b. Skill development: This technique is used to help employees identify their shortcomings and
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overcome their deficiencies. It is used to improve performance in areas such as delegation,

problem solving, conflict resolution and leading.
139 c. University management program: Managers can attend training programs conducted by
universities. These are conducted in the form of courses, workshops, and conferences. On
attending such programs managers gain knowledge on theories, principles, and new developments
in management.
140 a. Competition for scarce resources: In an organization, anything of value (funds, personnel,
and valuable information) can be a competitively sought-after resource. When competition for
scarce resources becomes destructive, conflict can be avoided by increasing the resource base.
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UNIT 15 – MANAGING AND THE HUMAN FACTOR
141 d. Individual differences: In spite of having some common traits, each individual in an
organization is different from others. Therefore, managers should understand the complex and
individual nature of people before applying the principles of motivation, leadership and
communication.
142 e. Rational-economic assumption: According to this assumption, individuals are motivated mainly
by economic incentives. Individuals prefer economic incentives to other rewards. Economic
incentives are controlled by the organization and the employees of the organization are passive
and have no say in this matter.
143 c. Behavioristic model: According to behavioristic view, an individual’s behavior is influenced
by the environment. The managerial strategies based on this theory try to bring about changes in
the environment in order to make subordinates behave in the desired manner.
144 a. Theory X: Theory X has a pessimistic and rigid view of human nature and includes some of
the ‘traditional’ assumptions of human nature. Basically, people dislike work and they try to avoid
it and managers need to control, coerce, direct and threaten employees with punishment to make
them work towards achieving organizational goals.
145 b. The human relations model: This model focuses on social and egoistic needs of the
individual. This model recognizes the fact that fair treatment and remuneration are not enough to
motivate people to work.
146 a. Creativity: Creativity is the ability to generate new ideas. According to Robert Kreitner,
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“creativity is a function of knowledge, imagination, and evaluation. The greater our knowledge,
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the more ideas, patterns, or combinations we can achieve. But merely having the knowledge does
not guarantee the formation of new patterns; the bits and pieces must be shaken up and
interrelated in new ways. Then, the embryonic ideas must be evaluated and developed into usable
ideas.”
147 b. Brainstorming: Alwx F. Osborn developed the technique of brainstorming, one of the best-
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known techniques for facilitating creativity. The purpose of using the brainstorming technique is
to find new and unusual solutions to problems, thus improving problem solving.
148 c. Innovation and entrepreneurship: In recent times, considerable attention has been given to
innovation and entrepreneurship. These terms conjure up pictures of entrepreneurs who proved
successful within a short period of time by establishing new companies.
149 d. Harmonizer: A manager should have a thorough understanding of the human factor in order to
lead satisfactorily. Individuals in an organization usually work in groups, towards the
achievement of personal and organization goals and objectives. Sometimes these goals may clash
and lead to discord. As a leader, the manager must harmonize the needs of individuals with the
requirements of the organization.
150 d. Managerial function: The managerial function of leading helps to bridge the gap between
effective control techniques, logical and well-defined plans, carefully designed organization
structures, and efficient staffing programs on the one hand, and the need for people to understand
to be motivated, and to contribute all they are capable of to achieve organizational objectives on
the other.
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UNIT 16 – MOTIVATING EMPLOYEES FOR JOB PERFORMANCE
151 d. Needs, drives, goals: Motivation depends upon three important components which include
needs, drives, and goals. The fulfilling of an individual’s needs or desires can serve to motivate
him. A need is a felt deprivation of an individual, who strives to satisfy it by various means.
Drives or motives are intensified needs, which provoke the individual towards fulfillment of his
desires. Drives are action-oriented and provide an energizing thrust toward reaching a goal. (M)
152 a. Physiological and safety and security needs: According to Abraham Maslow’s motivation
theory, needs are classified into five-levels of hierarchy. The five levels are physiological needs,
safety and security needs, social needs, self-esteem needs, and self-actualization needs.
Physiological needs are basic needs for food, clothing, and shelter. Once the physiological needs
are met, the individual aims to satisfy his safety and security needs. (A)
153 b. Frederick Herzberg: Herzberg called the job content factors such as satisfaction included
having opportunities to achieve something through their work, receiving recognition from others
for their work, having opportunities for promotion and advancement as motivators and the job
context factors such as comfortable working conditions, good pay and benefits and job security as
hygiene factors. Herzberg suggested that providing job content factors would satisfy the
employees whereas hygiene factors would prevent workers from feeling dissatisfied but would
not lead to their satisfaction.
154 c. Need for affiliation: David C. McClelland explained the significance of three basic needs that
play a major role in the motivation of individuals. They are achievement needs, affiliation needs,
and power needs. While individuals with high need for achievement are a valuable source of
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creativity and innovative ideas in organizations, people with a need for affiliation have a strong
desire for interpersonal relationships.
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155. e. Equity theory: J. Stacy Admas is the proponent of the equity theory. His theory focuses on
people’s sense of fairness or justice. The equity theory refers to the subjective judgment of an
individual about the fairness of his reward, relative to the inputs, in comparison with the rewards
of others. The inputs include effort, experience, skills, and education. Outcomes may be pay,
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bonuses, appreciation, etc.

156 b. Quality of Work Life (QWL): QWL program is another approach to motivation. It helps in
increasing the productivity of workers by improving the work environment, handling grievances,
and paying fair wages and salaries.
157 a. Rewards: Rewards may be defined as material or psychological payoffs for the
accomplishment of tasks. Rewards are of two types – extrinsic and intrinsic rewards. Extrinsic
rewards such as money, perks and amenities, promotion, and recognition, are the pay-offs granted
by the management. Intrinsic rewards such as satisfaction and achievement are the internal
feelings generated in individuals through the performance of challenging and interesting jobs.
158 e. Job Enrichment: A job may be enriched by encouraging the workers’ participation in
decision-making, entrusting them with additional responsibilities, making the job more
challenging and interesting etc. Job enrichment techniques can lead to increased productivity,
reduced turnover and absenteeism, and improved morale.
159 d. Participation: Participation is an effective technique with which to motivate individuals. It
satisfies the esteem and self-actualization needs of employees. It improves the knowledge of
employees and contributes to their advancement. It allows employee participation in goal setting.
160 c. Attitudes of the individual: Motivation should be viewed from both the systems and
contingency approaches. A single motivation technique may not suit all the situations in an
organization. Certain factors like the attitudes of the individuals, various situations, influence
motivational techniques. Motivation also depends on leadership styles and management practice.
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UNIT 17 – LEADERSHIP
161 a. Leadership: Harold Koontz and Heinz Weihrich have defined leadership as the art or process
of influencing people so that they will strive willingly and enthusiastically towards the
achievement of group goals. In other words, leadership is the ability to persuade others to work
towards defined objectives. The function of leadership is to set goals, direct the individuals, and
motivate people to achieve the goals.
162 c. Inspire followers to perform a task to the best of their capacities: Supervisors inspire
subordinates by means of various incentives. But behavior of superior’s acts as a stronger
motivating force.
163 b. Trait theory of leadership: This theory proposes that leaders possess certain inborn
personality traits. Trait theorists have tried to associate certain characteristics such as physical,
mental, intellectual, and personality traits with leadership.
164 e. Ohio state studies: These studies identified two dimensions of leadership behavior- initiating
structure and consideration. Consideration is the degree of mutual trust between leader and his
subordinates; how much the leader respects subordinate’ ideas and shows concern for their
feelings. It is similar to the employee-centered leader.
165 c. Consultative management: Managers in this system do not have complete confidence and
trust in subordinates. But in this system, there is an upward flow of communication and managers
make genuine efforts to listen carefully to ideas. This style involves motivating employees with
rewards and occasionally punishment, using upward and downward communication flow, and
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managers acting as consultants in order to resolve various problems.
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166 e. Leadership 9,9: Leadership 9,9 is known as team management. The managers have a high
degree of concern for both people and the production. They encourage employees to attain goals;
the theory proposes that managers who exhibit a high level of concern for people are successful
leaders.
167 a. Path-goal theory: This theory was formulated by Robert J. House and Terence R. Mitchell.
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The theory proposed that leaders should assist their subordinates by directing them to the path that
led to the attainment of goals. The theory holds that an individual is motivated by his perception
of the possibility of achieving a goal through effective job performance.
168 c. Consultative-I (C-I): Managers discuss the problem with relevant subordinates individually,
getting their ideas and suggestions without bringing them together as a group. Then the managers
make the decision, which may or may not reflect subordinates’ influence.
169 d. Transactional leadership: Managers who favor detailed planning and efficient organization
are transactional leaders. They motivate subordinates to perform at expected levels in practical
ways rather than with inspiration.
170 b. Transformational leadership: Bernard M. Bass described a transformational leader as a
motivating and inspiring person who encourages his followers to achieve intrinsic higher level
goals, resulting in exceptional performance. He identified three attributes in a transformational
leader – charisma, individualized consideration, and intellectual stimulation.
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UNIT 18 – MANAGING COMMUNICATIONS
171 b. Non-verbal: Based on definitions by Newman and Summer and Koontz and O’Donnel,
communication is a process of transmitting verbal and non-verbal information from the point of
origin to the destination.
172 c. Bridging the gap between managers and the external environment: Effective
communication is crucial for the smooth functioning of an organization. It serves several purposes
including bridging the gap between managers and the external environment.
173 e. Feedback: A message generated by the receiver in response to the sender’s original message is
known as feedback. It helps a sender evaluate the effectiveness of his message, so that he can
modify his subsequent messages. Feedback confirms whether there has been any change in the
behavior of the individual or in the organization as a result of communication.
174 a. Downward communication: Downward communication refers to the flow of information from
higher levels to lower levels in the organizational hierarchy. This type of communication is used
to make employees aware of the organization’s policies, procedures, objectives, and programs.
175 d. Upward communication: Upward communication originates from subordinates and continues
up the organizational hierarchy to superiors. This type of communication helps the management
understand the performance of employees, the problems of employees, the result of decisions
taken, etc.
176 c. Horizontal communication: Horizontal communication refers to the flow of information at the
same level of the organizational hierarchy.
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177 d. Lack of planning: Communication would be ineffective if the manager did not devote
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sufficient time to think, plan, and state the purpose of the message.
178 c. Impersonal communication: Communication is much more than just relaying information to
employees. For communication to be effective, face-to-face contact in an environment of
openness and trust is required. To make communication impersonal, organizations should
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encourage face-to-face communication between superiors and subordinates.

179 e. Proper feedback: Feedback is an essential element in the communication process. The receiver
should provide feedback to the sender to acknowledge that he has understood the message. While
receiving negative feedback, managers should ask for clarification and examples about points
which seem ambiguous or unclear.
180. Non- directive counseling: Non-directive counseling is a process where a manager helps an
employee to examine his own ideas and attitudes about a problem.
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UNIT 19 – THE CONTROL FUNCTION
181 a. Controlling: The control function is concerned with ensuring that the planning, organizing,
staffing, and leading functions result in the attainment of organizational objectives. In other word,
control is a tool that helps organizations to measure and compare their actual progress with their
established plan.
182 c. Planning and controlling: A cyclical relationship exists between planning and controlling. The
planning/control cycle begins with the identification of the mission of the organization, the
establishment of goals and objectives, and the formulation of plans to accomplish them. When
these plans are implemented, the control function monitors the actual performance and compares
it with the predetermined standards, if any deviations are discovered, corrective action is taken.
183 b. Detecting irregularities: Control systems help managers detect undesirable irregularities, such
as product defects, cost overruns, or rising personnel turnover. Early detection of irregularities can
prevent minor problems from mushrooming into major ones and often save a great deal of time
and money for the organization.
184 a. Tactical control: Tactical control focuses on assessing the implementation of tactical plans at
department levels, monitoring associated periodic results, and taking corrective action when
necessary. Tactical control is exercised by the middle-level managers who deal with functional
objectives, programs, and budgets.
185 b. Establishing standards: Standards are the criteria against which actual performance is
measured and indicates the acceptable level of performance. Control standards are of different
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kinds – quantitative standards, cost standards, time standards, and qualitative standards.
Establishing standards helps employees understand what is expected of them and how their work
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will be evaluated.
186 c. Preventive control: Preventive control focuses on anticipating the occurrence of possible
deviations and preventing them. The principle of preventive control is based on the idea that
negative deviations can be eliminated by the application of management principles.
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187 a. Concurrent control: Concurrent control regulates ongoing activities that are a part of the
transformation process to ensure that they conform to organizational standards. This is also
known as steering control. The concurrent control system checks actual performance and ensures
that it conforms to the set standards.
188 b. Control should be cost-effective: The cost of controls is an important consideration. The
benefits of controls should outweigh the cost of implementing them. Efficient control systems
locate the actual or potential deviations from plans at the minimum cost.
189 e. Cybernetic control system: Control systems are classified as cybernetic and non-cybernetic
based on the degree of human discretion. A cybernetic control system is a computerized and self-
regulating control system which monitors situations and takes corrective actions.
190 b. The certified management audit: A certified management audit may be defined as an
independent appraisal of an organization’s management by an outside firm. To ensure the
objectivity of the audit, an outside firm, which has expertise in appraising a company’s
managerial system, should be entrusted with the responsibility of conducting the audit. A certified
management audit report should be based on a thorough study of the quality of managers and the
system within which they operate.
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UNIT 20 – CONTROL TECHNIQUES
191 b. Feed forward control system: Time period varies from one control system to another. If the
control system comes into operation before the process of transformation, it is called a feed
forward control system.
192 d. Debt management ratios: Debt management ratios determine the extent of debt used by a
company to finance its investment and its ability to meet the long-term obligations that result
from such a measure. This ration indicates what percentage of the organization’s assets is
financed by creditors. A higher percentage indicates that the creditors have greater claim over the
assets of the organization than the owners.
193 a. Balance sheet: “A balance sheet shows the financial condition of a business at a given point of
time.” A balance sheet describes a company in terms of its assets, liabilities, and net worth at a
given point of time. A comparative balance sheet, which shows figures from various years, tracks
the growth in assets, the state of liabilities and current net worth.
194 e. Standard cost center: A cost center is an organizational department or function that does not
produce direct profit and adds to the cost of running a company but that is nevertheless crucial to
the organization because it adds to profitability indirectly or fulfills some other mandate.
195 b. Revenue centers: A revenue center is the business operation responsible for generating a
company’s sales revenue. These centers may be departments, divisions or business units that have
direct interaction with consumers to sell goods and services.
196 a. Quality circles: A quality circle can be defined as a group of people formed to tackle work
I
problems. A group consists of 6-12 members who belong to a particular department. They
conduct regular meetings to discuss problems at the workplace. The members are educated about
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statistical control techniques and they apply these techniques to solve the problems.
197 c. Total quality management: Total quality management is a technique to improve the quality of
operations at all levels. It is a continuous process of building quality into the procedures and
methods of an organization. It calls for the active participation of members at all levels of the
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organization, so that customers’ expectations are not just met, but exceeded.
198 d. Inventory control: Inventory control involves stocking the materials and resources needed for
the execution of organizational activities. Maintaining the inventory helps managers to overcome
the problem of uncertainty of supply and demand. Different organizations use different methods
such as ABC analysis, Just-in-Time to control inventory etc.
199 d. ABC analysis: The ABC inventory control technique is based on the principle that a small
portion of the items may typically represent the bulk of money value of the total inventory used in
the production process, while a relatively large number of items may from a small part of the
money value of stores. The money value is ascertained by multiplying the quantity of material of
each item by its unit price.
200 a. Work-in-progress: Inventory control involves stocking the materials and resources needed for
the execution of organizational activities. Maintaining the inventory at proper level helps
managers to overcome the problem of uncertainty of supply and demand. Organizations maintain
three kinds of inventory- raw materials, work-in-progress, and finished goods.
64
UNIT 21 – PRODUCTIVITY AND OPERATIONS MANAGEMENT
201 b. Productivity: Productivity is a measure of the efficiency of an organization in terms of the

ratio of outputs to inputs. The higher the numerical value of this ratio, the greater the efficiency.
Productivity measures the employees’ efficiency in using the organization’s scarce resources to
produce goods and services.
202 a. Production management: Production management is a process of controlling and coordinating
the activities involved in making a product. It converts the inputs into outputs by utilizing the
physical resources.
203 c. Kanban: Kanban, a Japanese term by origin (Kan-card and ban-signal), is a subsystem of the
JIT approach. It involves the use of cards and containers to move parts and components from one
work area to another. When an empty container is sent to a workstation, it indicates that more
parts will be needed shortly.
204 b. Value engineering: Value engineering is a process where the operations of a product or
service are analyzed, value of each operation is determined, and the operation is modified or
improved to reduce costs.
205 a. Work simplification: Work simplification is a process where the work or task is simplified to
improve the productivity of workers. It involves educating employees about the concepts and
principles of techniques such as time and motion studies, layout of work situations, and workflow
analysis.
206 e. Gap between managers and operations research: Since operations research is a specialist’s
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job, it is handled by a mathematician or a statistician, who may lack an understanding of
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managerial problems. Similarly, the manager lacks knowledge and appreciation of mathematics
and fails to understand the logic used by the OR specialist. Many organizations try to get
managers and operations researchers to work as a team to fill the gap. But, the inability to
understand and appreciate each other’s opinion still remains a major limitation.
207 d. Linear programming: Linear programming is the most successful OR technique. The basic
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assumption in these techniques is that a linear relationship exists between the variable and that the
limits of variation can be determined. A manager or a researcher may solve the linear equations
and obtain the optimum solution in terms of machine utilization, cost, time, etc.
208 b. Operations research methodology: The methodology developed for solving business
problems through operations research involves formulating the problem, constructing a
mathematical model, deriving a solution from the model, testing the model, providing controls for
the model and the solution and putting the solution into effect.
209 a. Costs of inventory: An organization incurs several costs in maintaining inventory, such as
item cost, ordering cost, carrying or holding cost, and stock-out cost. Item cost is the price of an
inventory item itself. The ordering cost is the expenditure made in placing an order. The expense
associated with keeping an inventory item in the warehouse is called holding or carrying cost.
210 e. Economic order quantity (EOQ): EOQ is helpful technique for determining desirable
inventory levels when demand is predictable and fairly constant throughout the year. EOQ helps
managers to decide how much to order at a given point of time.
65
UNIT 22 – MANAGERMENT INFORMATION SYSTEMS
211 b. Internal information: Managers need information to perform their managerial activities.
Information that is created within an organization is known as internal information. This type of
information is essential for managing day-to-day operations.
212 a. Management information system: A management information system (MIS) may be defined
as a complex interaction among people, computer and communication technologies, and
procedures designed to quickly provide relevant data or information, collected from both internal
and external organizational sources, for organizational use. MIS is designed to acquire, store and
convert data into timely, relevant information to help managers carry out the planning, control,
and operational functions of organizations.
213 c. Hardware: Information system hardware refers to the equipment in the system that is used to
input, store, and retrieve data. Input devices allow data to be entered in machine-readable form
into the Central Processing Unit (CPU), the main memory and processing section of a computer.
These devices include printers, visual display monitors or terminals, and graphic plotters. Storage
devices allow information to be stored and retrieved when needed. Floppy discs, magnetic discs
and laser-generated compact discs are some examples of storage devices.
214 e. Security and integrity: Security and integrity ensures that the data will be protected from loss
or destruction and that only authorized individuals will be allowed to access the file or system.
215 d. Office automation systems: An office automation system (OAS) is a computer-based
information system that allows communication across various departments in an organization and
increased employee productivity through automation of document and message processing.
I
216 d. Decision support systems: The decision support system (DSS) is an interactive computer system
that provides managers with information that is used in decision-making. DSS provides data in
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the form of tables and charts that simplifies the process of analyzing the information. It uses the
information generated by office automation systems to arrive at complex decisions.
217 b. Transaction processing systems: A transaction processing system (TPS) is a computer-based
information system that executes and records the routine, daily transactions that take place in an
organization. These transactions are essential for the conduct of the organization’s business. This
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type is mostly used in highly structured and repetitive situations.

218 a. Executive support systems: An executive support system is a computer-based information
system that is helpful in decision-making at the top levels of an organization. Executive support
systems are considered effective because they offer more computing capabilities, better
telecommunications, and display options.
219 c. Management information systems (MIS): MIS is designed to deal with tactical and
operational issues. It summarizes information from transaction processing systems to produce
routine reports for managers and supervisors. It also provides information to capacity planners
about the capacity changes that would have to be made in the short-term and long-term.
220 a. Electronic data processing (EDP): EDP was developed to help organizations process and
analyze large amounts of data. It refers to the use of electronic equipment to process the data. Its
primary function is record keeping, which forms the basis for MIS.
66
The ICFAI Group
ICFAI was established in
1984 as a not-for-profit ICFAI practices the value of academic integrity at all
society with the broad levels.
objective of empowering
The ICFAI Group's culture of teaching and learning
citizens through world class
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quality education. Since its
development among its graduating students. They carry
establishment, ICFAI Group
an attitude of ownership of their work. ICFAI Group strives
has made a significant mark
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in the Indian educational
strongly believes in developing an 'entrepreneurial
field with a pan Indian
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Subsequently, there was a
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and transforming them into
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ICFAI Group has 3 Strategic
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Business Schools and the Flexible Learning Programs
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Participants in flexible learning programs have limitations on the nature of the

What makes it relevant?

Ref. No. PM-WB-IFHE – 122014

Our E-mail ID: cwfeedback@icfaiuniversity.in

The learning outcomes expected are:

The Workbook format is also used for Assessment.

Definition of Management- The Role of Management - Functions of Managers: Planning,

UNIT 2: EVOLUTION OF MANAGEMENT THOUGHT

Early Approaches to Management: Robert Owen: Human Resource Management Pioneer;

UNIT 3: SOCIAL AND ETHICAL RESPONSIBILITIES OF MANAGEMENT

Social Responsibilities of Management -Arguments for and against Social Responsibilities of

Factors that influence Ethical Behavior: stages of moral development, individual

UNIT 4: FUNDAMENTALS OF PLANNING

Definitions of Planning - Nature of Planning -Significance of Planning: Focuses Attention on

UNIT 5: MANAGEMENT BY OBJECTIVES

Nature of Objectives: Hierarchy of Objectives, The Process of Forming Objectives and

Organizational Hierarchy, A Network of Objectives, Multiplicity of Objectives - Concepts of

UNIT 6: STRATEGIES, POLICIES AND PLANNING PREMISES

UNIT 7: MANAGERIAL DECISION MAKING

Significance and Limitations of Rational Decision-making - Managers as Decision-makers: The

Certainty, Risk and Uncertainty: Decision-making under Certainty, Decision-making under

-Decision-making Techniques: Marginal Analysis, Financial Analysis, Ratio Analysis, Break-

UNIT 8: FUNDAMENTALS OF ORGANIZING

Definitions of Organizing - Benefits of Organizing - Traditional Perspectives on Organizing:

UNIT 10: STRATEGIC ORGANIZATION STRUCTURE

Ensuring Understanding of Organizational Structure: Teaching the Nature of the Organizations’

UNIT 11: EFFECTIVE ORGANIZING AND ORGANIZATIONAL CULTURE

Prerequisites for Effective Organizing - Avoiding Mistakes in Organizing by Planning:

UNIT 12: HUMAN RESOURCE MANAGEMENT AND STAFFING

Human Resource Management: An Overview :Human Resource Planning, Forecasting

UNIT 13: PERFORMANCE APPRAISAL AND CAREER STRATEGY

Significance of Appraisal - Informal vs. Formal Appraisals - Performance Rating Methods:

UNIT 14: ORGANIZATIONAL CHANGE AND ORGANIZATIONAL

Organizational Change: Factors that Lead to Organizational Change, Sources of Resistance to

UNIT 15: MANAGING AND THE HUMAN FACTOR

UNIT 16: MOTIVATING EMPLOYEES FOR JOB PERFORMANCE

Definitions and Meaning of Motivation - Classification of Motivation Theories: Content

UNIT 17: LEADERSHIP

Definition and Meaning of Leadership -Key Elements of Leadership -Leadership Theories:

UNIT 18: MANAGING COMUNICATIONS

Definitions of Communication - Significance of Communication in Organizations -

UNIT 19: THE CONTROL FUNCTION

Planning and Controlling - Importance of Controlling: Coping with Uncertainty, Detecting

UNIT 20: CONTROL TECHNIQUES

Production and Productivity - Productivity Problems and Measurement - Operations Research,

Production & Operations Management: Operations Management and its Importance,

UNIT 22: MANAGEMENT INFORMATION SYSTEMS

Management Information: Meaning Attributes and Information needs of Managers -

UNIT 1 – MANAGEMENT: AN OVERVIEW

a. Planning &Organizing b. Staffing

a. Technical skills b. Human skills

e. None of the above

UNIT 2 – EVOLUTION OF MANAGEMENT THOUGHT

UNIT 3 – SOCIAL AND ETHICAL RESPONSIBILITIES OF MANAGEMENT

UNIT 4 – FUNDAMENTALS OF PLANNING

a. Planning provides sense of direction

a. Facilitating delegation b. Ensuring better coordination

UNIT 5 – MANAGEMENT BY OBJECTIVES

__________________ to achieve the goals.

UNIT 6 – STRATEGIES, POLICIES AND PLANNING PREMISES

Noodles Question Mark 75% 44%

Identify the corporate-level strategy followed by Nestle.