Introduction To Management Ii 0107

Question Paper Introduction to Management – II (MB112): January 2007 • •

1.

Listening is one of the most essential ingredients of effective communication. No message can be properly understood without intent listening. Which of the following is not an effective listening technique? (a) (b) (c) (d) (e)

2.

4.

5.

6.

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Management Information System Decision Support System Executive Support System Transaction Processing System Automation System.

Performance appraisal methods must consider various aspects of a job. Which of the following types of appraisal implies evaluating an individual based on actual job performance? (a) (b) (c) (d) (e)

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Source of funds statement A statement of use of funds A statement of sources and uses of funds for a definite period between two definite dates An income statement A balance sheet.

There are different information systems that serve the needs of different organization members at different organizational levels. Which of the following information systems has low-volume data and analytical models as data inputs? (a) (b) (c) (d) (e)

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Coordinating Organizing Direction Evaluation Control.

A Funds Flow statement is (a) (b) (c) (d) (e)

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Multinationalizes ownership of corporate stock Multinationalizes management from top to bottom Establishes foreign manufacturing facilities Establishes sales organizations abroad Exports its products.

The primary purpose served by lateral organizational communication is (a) (b) (c) (d) (e)

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Avoiding premature evaluation Avoiding eye contact Exhibiting affirmative nods and appropriate facial gestures Finding an area of interest in what the other person is saying Judging the content of the message, but not the weakness of the speaker.

The first stage in a corporation’s multinationalization is when the corporation (a) (b) (c) (d) (e)

3.

Answer all questions. Each question carries one mark.

Behavior-oriented Results-oriented Work-oriented Skills-oriented Knowledge-oriented.

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7.

There can be different sources of resistance to change. For analytical purposes, they can be categorized as individual and organizational sources. Which of the following is an organizational source of resistance to change? (a) (b) (c) (d) (e)

8.

9.

Habit Structural inertia Security Fear of the unknown Selective information processing.

According to Fiedler, the primary factors that should be used as a basis for moving leaders into more appropriate situations are (a) (b) (c) (d) (e)

IV. (a) (b) (c) (d) (e)

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The ideas are accepted only after criticism from all members. The emphasis is on obtaining as many ideas as possible. Participants are encouraged to contribute towards improving the ideas of the other participants in the group. The more radical the ideas, the more effective they make the brain storming technique. Only (II) above Only (IV) above Both (I) and (III) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

12. According to Herzberg, which of the following is a hygiene factor? (a) (b) (c) (d) (e)

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Visionary leaders Transformational leaders Transactional leaders Autocratic leaders Supportive leaders.

11. Which of the following is/are rule(s) observed in brainstorming? I. II. III.

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Operations managers are not found in the service sector Operations Management is concerned with only the input stage of product development The outputs of the operations system include both goods and services Labor is part of the transformation stage and is not considered an input The techniques of Operations Management are not applicable to other disciplines such as finance, marketing and human resource management.

10. Leaders who pay attention to the concerns and developmental needs of individual followers, help followers to look at old problems in new ways, and are able to inspire followers to put extra effort into the group goals are (a) (b) (c) (d) (e)

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Task behavior, consideration behavior, maturity Maturity, job knowledge, responsibility The worker, the leader, the situation Leader-member relations, task structure, position power Task structure, leadership style, maturity.

Operations Management is a tool by which management can create and improve upon its operations. Which of the following statements is true regarding Operations Management? (a) (b) (c) (d) (e)

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Salary Responsibility Achievement Growth Recognition.

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13. Which of the following is a broad approach to job enrichment? (a) (b) (c) (d) (e)

Value engineering Social responsiveness T Group training Total quality management Quality of work life.

14. The characteristics of the individual who should be hired for the job are indicated by the (a) (b) (c) (d) (e)

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Job analysis Job description Job specification Job review Job identification.

15. Which of the following is/are an example(s) of feed forward control?

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I. Rules. II. Procedures. III. Policies. IV. Budgets. (a) (b) (c) (d) (e)

Only (I) above Only (III) above Both (I) and (III) above Both (II) and (IV) above All (I), (II), (III) and (IV) above.

16. Mr. Arvind, the CEO of EEC Ltd., has identified the benefits of practicing job rotation. But he is unable to find positions for rotation for his managers and trainees. Which of the following would be suitable position(s) that Arvind can use for job rotation for his managers and trainees? I. II. III. (a) (b) (c) (d) (e)

Non-supervisory. Observation. Top-level management position. Only (I) above Only (II) above Only (III) above Both (I) and (III) above Both (I) and (II) above.

17. Control is an essential part of every organization. The management process is incomplete and sometimes useless without the control function. Control function plays an important role of assisting managers in I. Coping with uncertainty. II. Detecting irregularities in the organization activities. III. Centralizing authority. IV. Avoiding complex situations. (a) (b) (c) (d) (e)

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Both (I) and (II) above Both (I) and (III) above Both (I) and (IV) above Both (II) and (III) above Both (III) and (IV) above.

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18. Cultural change is of utmost importance to bring about changes in the business processes of an organization. Which of the following situational factors is most unlikely to facilitate cultural change? (a) (b) (c) (d) (e)

A dramatic crisis occurs Leadership changes hands The culture is strong The culture is weak The organisation is young and small.

19. Effective leadership calls for various traits – physical, intelligence and ability, personality, task-related and social. Which of the following is not a personality trait required for effective leadership? (a) (b) (c) (d) (e)

(b) (c) (d) (e)

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Alderfer proposed a condensed version of Maslow's Need Hierarchy theory with only three groups of core needs. viz., existence, relatedness and growth The existence needs are related to Maslow’s physiological and safety needs The relatedness needs are the desire to establish and maintain interpersonal relationships The growth needs are the desires to be creative and to have opportunities for personal development ERG theory assumes a rigid hierarchy where a lower level need must be substantially gratified before one can move on.

23. Which of the following statements is false concerning Vroom's expectancy theory? (a) (b) (c) (d) (e)

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Downward Upward Horizontal Diagonal Formal.

22. To overcome the criticisms of Maslow's Need Hierarchy theory, researcher Clayton Alderfer proposed an alternative theory known as ERG theory. Which of the following is not true about Alderfer's ERG theory? (a)

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Acceptable standards shared by a group’s members A stage in the group development A temporary group established to achieve a specific task A work group that meets regularly to discuss, investigate and correct quality problems An organization’s long-term commitment to the continuous improvement of quality.

21. In an effective organization, information flows in various directions. Which of the following information flows takes place among persons at different levels, who have no direct relationships? (a) (b) (c) (d) (e)

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Adaptability Enthusiasm Malice Cooperativeness Self-confidence.

20. In addition to operations research, there are other techniques for improving productivity in an organization. One such technique is ‘quality circle’. The term ‘quality circle’ refers to (a) (b) (c) (d) (e)

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It is based on self-interest where each employee seeks to maximize personal satisfaction Managers must understand which rewards employees will positively value The employee must see the connection between performance and rewards The theory is concerned with reality, not perceptions There are two crucial linkages among effort-performance-reward in this theory.

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24. The process of incorporating motivators into the job situation is called (a) (b) (c) (d) (e)

Job enlargement Flextime Satisfying Job enrichment Theory X.

25. Lead Management had given Saila a very tight deadline and she wanted to get the job done as quickly as possible. Saila knew the job to be completed well, having once been a member of the team she now managed. Many of the team members were new to the job and the company. Which of following styles might work best in this situation? (a) (b) (c) (d) (e)

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Employee-centered Participative Laizzez-faire Job-centered Autocratic.

26. McClelland highlighted the importance of three basic needs namely need for achievement, need for affiliation and need for power. Which of the following is/are characteristics exhibited by affiliationoriented people?

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I. They enjoy a sense of intimacy and understanding. II. They console and help those in trouble. III. They suffer pain when rejected. IV. They have an intense desire for success. (a) (b) (c) (d) (e)

Only (II) above Both (I) and (II) above Both (III) and (IV) above (I), (II) and (III) above (I), (III) and (IV) above.

27. There are various appraisal techniques used in an organization. A performance appraisal technique that makes use of feedback from supervisors, subordinates and co-workers, is known as (a) (b) (c) (d) (e)

Results-oriented appraisal 360-degree appraisal Informal appraisal Graphic rating scale BARS (Behaviorally Anchored Rating Scale).

28. Which of the following management information systems aims at facilitating communication and increasing the efficiency and productivity of managers and office workers through document and message processing? (a) (b) (c) (d) (e)

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Transaction processing system Decision support system Office automation system Executive support system Line support system.

29. The overall effect on the break-even point of increasing costs or decreasing selling prices is that (a) (b) (c) (d) (e)

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The number of products an organization must sell to break even increases The amount of profit a firm will receive at a fixed number of units sold increases The number of products an organization must sell to break even decreases The number of products an organization must sell to break even remains constant There is no effect on the break-even point.

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

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Problem Solving Forcing Smoothing Compromise Avoidance.

31. What is the correct sequence for the following four steps involved in training individuals?

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I. Designing the training program. II. Evaluating the training program. III. Determining training needs. IV. Administering the training program. (a) (b) (c) (d) (e)

(1), (II), (III) and (IV) (I), (III), (II) and (IV) (I), (III), (IV) and (II) (III), (I), (IV) and (II) (III), (I), (II) and (IV).

32. According to the University of Michigan studies, a leader who emphasizes the technical aspects of the job and is concerned with accomplishing the group's tasks is said to be (a) (b) (c) (d) (e)

Employee-oriented Benevolent Considerate Production-oriented Visionary.

33. In a meeting, when a senior manager communicates meaning in two very different ways, then the communication distortion is called (a) (b) (c) (d) (e)

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The level of satisfaction employees have with their job Achieving one’s potential and self-fulfillment Equitable distribution of tasks Analyzing what motivates people The dynamics of motivation and how the motivation process takes place.

35. A leader who tends to centralize authority, dictate work methods, and make unilateral decisions is a/an (a) (b) (c) (d) (e)

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Unclarified assumption Premature evaluation Insufficient adjustment Semantics Mental predisposition.

34. Motivation theories can be broadly classified into two main categories by looking at their major areas of thrust. viz., Content theories and Process theories. Content theory of motivation focuses on (a) (b) (c) (d) (e)

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Transactional leader Laissez-faire leader Autocratic leader Consultative leader Impoverished.

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36. The staffing function, in the Japanese management style, is characteristic of

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I. Young people hired out of school. II. Rapid advancement desired. III. Slow promotion through ranks. IV. Promotions based on multiple criteria. V. Appraisal of short-term results. (a) (b) (c) (d) (e)

(I), (II) and (III) above (I), (III) and (IV) above (I), (III) and (V) above (II), (III) and (IV) above (II), (IV) and (V) above.

37. Which of the following is a specialized appraisal system wherein a high powered panel constituted by senior persons in the organization appraises employees by identifying their best capabilities or skills and training them further? (a) (b) (c) (d) (e)

Peer assessment 360 degree appraisal Formal appraisal BARS Assessment development centers.

38. A TQM programme is not characterized by (a) (b) (c) (d) (e)

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Directive Achievement-oriented Participative Supportive Transformational.

41. A guideline established by management to be used as a basis for evaluating performance is called a/an (a) (b) (c) (d) (e)

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Application Blank Intelligence Test Personality Test Work Sampling Test Knowledge Test.

40. Varun Prashant always consults with his employees and uses their suggestions before making a decision. According to House, he is demonstrating which type of leadership style? (a) (b) (c) (d) (e)

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A continual process Efforts by all organization members A focus on only a few critical work activities A focus on the production process Efforts to involve organization members.

39. A person, who had applied for the post of a service representative, is asked to handle a simulated situation involving a complaining customer, by the company. Which of the following selection devices is being made use of? (a) (b) (c) (d) (e)

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Internal control strategy External control strategy Standard Deviation Preventive control.

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42. Which of the following is not upward communication? (a) (b) (c) (d) (e)

Cost accounting report Purchase order summary Production report Corporate policy statement Sales report.

43. Information that originates within the organization is internal information and is essential for day-to-day operations. Which of the following is an example of internal information in an organization? (a) (b) (c) (d) (e)

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Top management Middle management First-line management Lower-level management The information would be valuable to all levels of management.

48. Which of the following is not a strategy for companies to remain continuously innovative? (a) (b) (c) (d) (e)

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Well-organized receiving and handling of materials purchased from suppliers Strong management commitment Suppliers located in diverse and distant locations High quality of materials purchased from suppliers Dependable and long-lasting relationships with suppliers and customers.

47. Information needs vary by level of activity and also by levels in the managerial hierarchy. For which level of management would information about environmental trends be most appropriate? (a) (b) (c) (d) (e)

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Development of Strategic Career Alternatives Analysis of Personal Strengths and Weaknesses Consistency Testing and Strategic Choices Implementation of the Career Plan Monitoring Progress.

46. JIT (Just-In-Time) inventory control is an approach to inventory control which stipulates that materials should arrive just, as they are needed, in the production process. Which of the following would generally not be associated with a successful JIT program, for the purpose of inventory control? (a) (b) (c) (d) (e)

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Current ratio Inventory turnover Debt ratio Return on investment Net Profit Margin.

45. A career strategy should be designed to overcome weaknesses and utilize strengths so as to take advantage of career opportunities. There are various steps in formulating a career strategy. Which of the following steps will precede the others in formulating a career strategy? (a) (b) (c) (d) (e)

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Information about demand of new products or services Information describing change in policies of suppliers Details of changes in government regulations Salesperson quotas Descriptions of customer satisfaction with products and services.

44. If you were looking to investigate how productive your assets were in meeting short-term obligations, you would be most likely to use which of the following ratios? (a) (b) (c) (d) (e)

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Do not resort to outsourcing of activities, instead develop them in-house Make everyone accountable Replace rigid procedures with clear business activities Challenge employees to compete Reward employees for innovation exhibited.

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49. Which of the following is/are assumptions of preventive control?

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I. Application of fundamentals can be evaluated. II. Personal responsibility exists. III. Well qualified managers can make minimum mistakes. IV. Management concepts, tools, principles and techniques are effective standards for measuring managerial standards and performance. (a) Only (IV) above (b) Both (I) and (III) above (c) Both (II) and (IV) above (d) (I), (II) and (III) above (e) (I), (III) and (IV) above. 50. Which of the following are characteristics of the planning process usually adopted in the American management style?

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I. Short-term orientation. II. Collective decision-making. III. Decisions initiated at the top, flowing down. IV. Fast decision-making. V. Fast decision implementation. (a) (b) (c) (d) (e)

(I), (II) and (III) above (I), (II) and (V) above (I), (III) and (IV) above (II), (IV) and (V) above (III), (IV) and (V) above.

51. Performance appraisals are important in an organization because they

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I. Provide systematic judgements to support promotions. II. Provide a basis for coaching. III. Provide a basis for counseling. IV. Let subordinates know where they stand with the boss. (a) (b) (c) (d) (e)

Only (I) above Only (II) above Both (I) and (IV) above (I), (III) and (IV) above All (I), (II), (III) and (IV) above.

52. Hersey and Blanchard define _______ as the extent to which followers have the ability and the willingness to accomplish a specific task. (a) (b) (c) (d) (e)

Training Readiness Preparedness Motivation Morale.

53. Which of the following is/are steps involved in the enterprise self audit? I. Study the outlook of the industry in which the firm is operating. II. Appraise the position of the firm. III. Re-examine the basic objectives and major policies of the firm. IV. Take the opinion of an outside firm. (a) (b) (c) (d) (e)

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Only (II) above Both (I) and (II) above Both (III) and (IV) above (I), (II) and (III) above All (I), (II), (III) and (IV) above.

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54. Which of the following is/are advantage(s) of BARS (Behaviorally Anchored Rating Scale)? I. II. III. (a) (b) (c) (d) (e)

It provides specific feed back about job performance. The program is jointly developed by manager and subordinates. Anchors are based on the experience of the subordinates. Only (II) above Only (III) above Both (I) and (II) above Both (I) and (III) above All (I), (II) and (III) above.

55. Financial ratios are particularly important to managerial control in an organization. One such financial ratio, viz., return on investment, is a ratio that attempts to measure a firm's (a) (b) (c) (d) (e)

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Task Middle of the road Country club Team Impoverished.

57. Which of the following is not a step in the controlling process? (a) (b) (c) (d) (e)

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Leverage Profitability Liquidity Reliability Serviceability.

56. Blake and Mouton's _____ leader operates on the assumption that adequate organization performance is possible through balancing the necessity to get out work while maintaining morale of people at a satisfactory level. (a) (b) (c) (d) (e)

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Taking corrective action Establishing planned activities Comparing performance to standards Measuring performance Analysis of causes of deviation.

58. Motivation theories are classified as content theories and process theories. Which of the following statements is/are true with respect to content theories of motivation?

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I. Maslow’s self-actualization and esteem needs correspond to Herzberg’s motivators. II. McClelland’s need for achievement corresponds to Alderfer’s relatedness needs. III. Maslow’s esteem needs correspond to Alderfer’s need for power. IV. Herzber’s hygiene factors correspond to McClelland’s need for affiliation, Maslow’s social needs and Alderfer’s existence needs. (a) (b) (c) (d) (e)

Only (I) above Both (I) and (III) above Both (II) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

59. Douglas McGregor propounded Theory X and Theory Y which typified managerial views of employees. Which of the following is an assumption of Theory Y? (a) (b) (c) (d) (e)

The average person prefers to be directed Most people must be threatened and coerced before they put forth adequate effort Commitment to objectives is a function of the rewards associated with achievement The average person seeks no responsibility People generally dislike work.

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60. Which leadership style did Lewin find to be ineffective on every performance criterion? (a) (b) (c) (d) (e)

Team management Laissez-faire Autocratic Country club Impoverished.

61. Which of the following consists of wages paid directly for time worked or the number of units produced, as well as more indirect benefits that employees receive as part of their employment relationships with an organization? (a) (b) (c) (d) (e)

(e)

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Allowing the workers do their work independently Encouraging participation and involvement of workers Giving the workers financial incentives Providing feedback to the employees about the importance of the their tasks to the finished product Giving people feedback on their job performance, preferably before their supervisor gets it.

65. In which of the following controls is the cause of an unsatisfactory outcome traced back to the individual responsible for it who is then made to correct the practice? (a) (b) (c) (d) (e)

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Carrying costs Item costs Ordering costs Stock-out costs Superfluous costs.

64. Which of the following factors does not enrich the job? (a) (b) (c) (d)

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A mentor relationship Planned Progression Job rotation Simulation exercises Classroom lectures.

63. An organization incurs several costs in maintaining inventory. Loss of sale and loss of customer goodwill are examples of (a) (b) (c) (d) (e)

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Remuneration Fringe Benefit Payment Compensation Incentive.

62. Managers using which of the following techniques most effectively acquire problem-solving skills? (a) (b) (c) (d) (e)

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Preventive control Cybernetic control Direct control Steering control Yes-no control.

66. Managers who make foreign investments believe such investments I. Reduce or eliminate high transportation costs. II. Allow participation in the rapid expansion of a market abroad. III. Provide foreign technical, design, and marketing skills. IV. Earn higher profits.

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(a) (b) (c) (d) (e)

Only (II) above Both (I) and (III) above Both (II) and (IV) above (II), (III) and (IV) above All (I), (II), (III) and (IV) above.

67. Which of the following is not one of the types of management control? (a) (b) (c) (d) (e)

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Feedback control Feed forward control Concurrent control Exception control Lateral control.

68. Functional job analysis is a widely used systematic job analysis approach. Which of the following dimensions of an individual’s job does functional job analysis focus on?

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I. Data, people and jobs pertaining to the individual’s job. II. Interpersonal relationships required to perform the job. III. Tools and equipment used by the worker. IV. Products and services produced by the worker. (a) (b) (c) (d) (e)

Only (I) above Only (III) above Both (II) and (IV) above (I), (III) and (IV) above All (I), (II), (III) and (IV) above.

69. The psychological process of selecting stimuli, organizing the data into recognizable patterns, and interpreting the resulting information is known as (a) (b) (c) (d) (e)

Belief Perception Value Attribution Valence.

70. Inventory is vital to organizations, as it represents considerable costs. So, various methods have been developed to control inventory related costs. Which is the inventory control method developed to minimize ordering and holding costs, while avoiding stock out costs? (a) (b) (c) (d) (e)

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Mathematical model Linear programming Economic order quantity JIT inventory system Kanban.

71. According to the Tannenbaum and Schmidt model of leadership, which of the following statements describe more of a boss centered leadership? I. A manager more likely asks the group to make a decision. II. A manager permits subordinates to function within limits. III. A manager more likely "sells" the decision. IV. A manager presents ideas and invites questions. (a) (b) (c) (d) (e)

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Only (III) above Both (I) and (II) above Both (II) and (III) above Both (III) and (IV) above (I), (II) and (IV) above.

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72. There are various means of assessing internal labor supply. Which of the following is a means of identifying potential candidates to fill specific managerial positions? (a) (b) (c) (d) (e)

Succession Planning Replacement Planning Resources Planning Requirements Planning Operational Planning.

73. Which of the following is a computerized database containing basic information about each employee that can be used to assess the likely availability of individuals for meeting current and future human resource needs? (a) (b) (c) (d) (e)

(a) (b) (c) (d) (e)

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It increases personal commitment of employees. It improves employees understanding of job performance. It provides a great deal of information about the appraisee. Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.

77. Organizational development (OD) is a systematic, integrated and planned approach to improve enterprise effectiveness. Organizational development relies on the use of _______, which are change strategies developed and initiated with the help of a change agent. (a) (b) (c) (d) (e)

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Problem-solving skills Observational skills Interpersonal skills Technical skills Non-verbal communication skills.

76. Which of the following are claims that support self-appraisal? I. II. III.

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Information accuracy Information timeliness Information relevance Information completeness Information frequency.

75. Training is usually essential for new recruits as well as for existing manpower, who require improved skills to advance in the organization. If a training program attempts to sharpen logic, reasoning, or defining problems, it is most likely teaching (a) (b) (c) (d) (e)

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Manpower Inventory Replacement Planning Succession Planning Skills Inventory Inventory Record File.

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

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Interventions Plans Policies Innovations Programs.

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78. Program Evaluation and Review Technique (PERT), which is a logical extension of Gantt Chart, can be used as a tool to improve productivity in an organization. PERT is especially useful in scheduling (a) (b) (c) (d) (e)

Plans Processes Projects Programs Policies.

79. If a manager is evaluating the quality of the company’s product by examining complaint forms submitted by customers, then he/she is using which of the following types of control? (a) (b) (c) (d) (e)

(a) (b) (c) (d) (e)

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They indicate what percentage of the organization’s assets are financed by creditors. They are also called leverage ratios. A higher percentage indicates that creditors have lesser claim over the assets of the organization than the owners. Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.

83 If an employee of a multinational company indicates that she believes that since she is a citizen of the host country, she would be best suited to manage the company, then her attitude toward the operation of the organization would most likely be classified as (a) (b) (c) (d) (e)

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Internal timely information External timely information Internal accurate information External accurate information Internal and External information that is timely and accurate.

82. Which of the following statements is/are true with respect to debt management ratios? I. II. III.

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Profits earned The organizational resources needed to produce them Quality Operations management activities Advanced manufacturing support.

81. An information system is an organized collection of data, equipment, procedures and people involved in the collection, storage and processing of data to produce information required in the management of an organization. For an information system to be effective, it should provide (a) (b) (c) (d) (e)

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Concurrent control Feedback control Preventive control Yes-no control Preliminary control.

80. Productivity is the relationship between the amount of goods/services produced and (a) (b) (c) (d) (e)

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Ethnocentric attitude Polycentric attitude Regiocentric attitude Gender centric attitude Geocentric attitude.

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84. Which of the following is not a limitation of group discussion techniques to enhance creativity? (a) (b) (c) (d) (e)

Members of a group may pursue only one idea, ignoring other alternatives Members may hesitate to express their idea before the group due to fear of being ridiculed Lower level managers may not be able to express their views openly in presence of top-level managers The need to arrive at a consensus may be stronger than the need to explore creativity Creativity is an individual phenomenon and cannot be discovered through groups.

85. Lyman W. Porter and Edward E. Lawler III developed the expanded expectancy theory model. Which of the following is not true with regard to the Porter and Lawler model of motivation? (a) (b) (c) (d) (e)

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When it is substantially satisfied When the next level of needs is achieved When an individual returns to a lower level need A need never stops motivating When an individual learns that his/her needs cannot be satisfied.

90. Which of the following is not one of the leadership styles suggested by path-goal theory? (a) (b) (c) (d) (e)

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Grapevine is generally used irregularly in organizations Grapevine can and often does generate harmful rumors Grapevine is used largely to serve the self-interests of people within it Some managers use grapevine to their advantage In time, and with proper pressure, grapevine can be eliminated.

89. According to Maslow, a need stops motivating (a) (b) (c) (d) (e)

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Change masters Change agents Catalysts Charismatic leaders Operations managers.

88. Which of the following statements concerning grapevine is not correct? (a) (b) (c) (d) (e)

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Democratic-participative Laissez-faire Autocratic Consultative Exploitative.

87. In organizations, people who act as catalysts and assume the responsibility for managing the change process are called (a) (b) (c) (d) (e)

< Answer >

It’s built on Vroom’s expectancy theory It means motivation is not a simple cause-and-effect matter It assumes that satisfaction leads to performance It emphasizes careful assessment of the reward structure It assumes that performance leads to intrinsic as well as extrinsic rewards.

86. A leader who involves employees in decision-making, delegates authority, and gathers inputs from employees, but makes the final decision himself is using which style of leadership? (a) (b) (c) (d) (e)

< Answer >

Direct leadership Benevolent-authoritative leadership Supportive leadership Participative leadership Achievement-oriented leadership.

< Answer >

91. Debts are an important source of finance for a business. Which of the following ratios indicate the company’s ability to pay long-term debts? (a) (b) (c) (d) (e)

Asset Management Leverage Liquidity Profitability Activity.

92. Equity theory recognizes that individuals are concerned with (a) (b) (c) (d) (e)

(d) (e)

< Answer >

Mandate that all employees think creatively Hire a Vice-President of Creativity Use diversity in the organization to expand perspectives on creative efforts – stress conformity less Creativity in an organization is either there or it is not – it is a natural process and cannot be controlled Conduct a training program.

95. Which of the following is an index that measures one variable relative to another? (a) (b) (c) (d) (e)

< Answer >

Ringi Henko Kacho Kaisha Habatsu.

94. Shivani Sondhi has been assigned the task of planning a strategy to enhance creativity in her organization. Which of the following would be the best suggestion for Ms. Sondhi to explore, in order to meet her objective of enhancing creativity? (a) (b) (c)

< Answer >

Only absolute rewards Their compensation package Their rewards relative to others Whether others perceive equity Only others’ rewards.

93. According to the Japanese management practices, what refers to “my/one’s company” where people are treated as family members? (a) (b) (c) (d) (e)

< Answer >

< Answer >

Balance sheet Ratio Asset Budget Liability.

96. Feedback can be used (a) As a barrier (b) As a way for sources to evaluate their communication effectiveness (c) To ensure that instructions will be carried out (d) To evaluate the decoder (e) To set objectives.

< Answer >

97. Managers need to consider the type of control system that they wish to use. Which control system helps managers to regulate and supply inputs to obtain maximum production without any interruption?

< Answer >

(a) (b) (c) (d) (e)

Budgetary control Financial control Quality control Inventory control Clan control.

98. The selection process involves choosing the candidates who best meet the qualifications and have the greatest aptitude for the job. Different kinds of selection devices are used for the purpose. The interview, as a selection device, is most useful for which of the following types of occupations? (a) (b) (c) (d) (e)

Crane operator Caretaker Watchman Bank manager Office boy.

99. According to research carried out by Ohio University researchers, leadership behavior that reflects friendship, mutual trust, respect, and warmth in the relationship between leader and followers is (a) (b) (c) (d) (e)

< Answer >

Employee-centered behavior Consideration behavior Job-centered behavior Structure behavior Task behavior.

100. Managers can adopt various methods to overcome initial resistance to change. In which of the following methods of overcoming resistance to change, management neutralizes potential or actual resistance by exchanging something of value for cooperation? (a) (b) (c) (d) (e)

< Answer >

< Answer >

Facilitation and support Manipulation Negotiation and agreement Explicit and implicit coercion Education and communication.

Suggested Answers Introduction to Management – II (MB112): January 2007 1.

Answer : (b) Reason : Avoiding eye contact is not an effective listening technique. Effective listening requires eye contact. Hence, from above discussion, we can infer that option (b) is not an effective listening technique. Options (a), (c), (d) and (e) are all effective listening techniques.

2.

Answer : (e) Reason : The first stage in a corporation’s multinationalization is when the corporation exports its products.

3.

Answer : (a) Reason : Coordinating is the primary purpose served by lateral organizational communication.

4.

Answer : (c) Reason: A Funds Flow statement is a statement of sources and uses of funds for a definite period between two dates.

5.

Answer : (b) Reason : Decision Support System (DSS) is an information system that helps the managers in decision-making. It uses low-volume data and analytical models as data inputs. Hence from above discussion, we can infer that option (b) is correct.

6.

Answer : (b) Reason : Results-oriented appraisal implies evaluating an individual based on actual job performance. Hence, from above discussion, we can infer that option (b) is correct.

7.

Answer : (b) Reason : Structural inertia is an organization’s built-in mechanism to produce stability. e.g., formal rules and procedures for employees to follow. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability. Hence, from above discussion, we can infer that option (b) is correct. Options (a), (c), (d) and (e) are all individual sources of resistance to change.

8.

Answer : (d) Reason : According to Fiedler, leader-member relations, task structure, position power are the primary factors that should be used as a basis for moving leaders into more appropriate situations.

9.

Answer : (c) Reason : Operations Management oversees the transformation process that converts resources such as labor and raw materials into finished goods and services. Hence, from above discussion, we can infer that option (c) is true regarding Operations Management. Options (a), (b), (d) and (e) are all false regarding Operations Management.

10.

Answer : (b) Reason : Leaders who pay attention to the concerns and developmental needs of individual followers, help followers to look at old problems in new ways, and are able to inspire followers to put extra effort into the group goals are transformational leaders.

11.

Answer : (d) Reason : In brainstorming none of the ideas are criticized. Therefore, statement (I) is not a rule of brainstorming. All other statements are rules observed in brainstorming. Hence, option (d) is the answer.

12.

Answer : (a) Reason : Salary, working conditions, and security are examples of hygiene factors in Herzberg’s theory.

13.

Answer : (e) Reason: Quality of work life is a broad approach to job enrichment.

14.

Answer : (c) Reason : Job specification indicates characteristics of the individual who should be hired for the job.

15.

Answer : (e) Reason : Rules, policies, procedures, and budgets are all examples of feed forward control.

16.

Answer : (e) Reason : The purpose of job rotation is to broaden the knowledge of managers or potential managers and trainees learn through different enterprise functions like non-supervisory works, observation assignments etc. by rotation into different positions. But they cannot be posted in top-level management positions as high stakes are involved.

17.

Answer : (a) Reason : Controlling function is gaining importance in today’s organizations due to a number of factors. It plays an important role in assisting managers with changes like coping with uncertainty and detecting irregularities. Centralizing authority and avoiding complex situations are not applicable.

18.

Answer : (c) Reason : The situational factor that is most unlikely to facilitate cultural change is a strong culture. Hence, from above discussion, we can infer that option (c) is correct.

19.

Answer : (c) Reason : Malice is not a personality trait required for effective leadership.

20.

Answer : (d) Reason : The term ‘quality circle’ refers to a work group that meets regularly to discuss, investigate and correct quality problems. Hence, from above discussion, we can infer that option (d) is correct.

21.

Answer : (d) Reason : Diagonal information flow takes place among persons at different levels who have no direct relationships. Hence, from above discussion, we can infer that option (d) is correct.

22.

Answer : (e) Reason : Alderfer proposed a condensed version of Maslow's Need Hierarchy theory with only three groups of core needs. viz., existence, relatedness and growth. According to this ERG theory, different needs can emerge simultaneously, and people can move backward and forward through the need continuum as circumstances change. There is every possibility that a higher-level need may emerge before a lowerlevel need, given the right circumstances. Hence, from above discussion, we can infer that option (e) is not true about Alderfer's ERG theory. Options (a), (b), (c) and (d) are all true about Alderfer's ERG theory.

23.

Answer : (d) Reason : Vroom's expectancy theory is based on self-interest where each employee seeks to maximize personal satisfaction and holds that there are two crucial linkages among effort-performance-reward in this theory.

24.

Answer : (d) Reason : Job enrichment is the process of incorporating motivators into the job situation.

25.

Answer : (d) Reason : Job-centered style might work best in the given situation, where Saila can divide work into routine tasks and as a leader can closely monitor workers to ensure prescribed methods are followed and productivity standards met.

26.

Answer : (d) Reason : The following are characteristics exhibited by affiliation-oriented people” I. They enjoy a sense of intimacy and understanding. II. They console and help those in trouble. III. They suffer pain when rejected. An intense desire for success is exhibited by achievement oriented people. Hence, option (d) is the answer.

27.

Answer : (b) Reason : A performance appraisal technique that makes use of feedback from supervisors, subordinates and coworkers, is known as 360-degree appraisal. Hence, from above discussion, we can infer that option (b) is correct.

28.

Answer : (c) Reason : An office automation system aims at facilitating communication and increasing the efficiency and productivity of managers and office workers through document and message processing.

29.

Answer : (a) Reason : The overall effect on the break-even point of increasing costs or decreasing selling prices is that the number of products an organization must sell to break even increases.

30.

Answer : (c) Reason : Smoothing conflict resolution technique implies emphasizing the areas of agreement and common goals and de-emphasizing disagreements. Hence, from above discussion, we can infer that option (c) is correct.

31.

Answer : (d) Reason : The correct sequence of the steps involved in training individuals is: determining training needs, designing the training program, administering the training program, and evaluating the training program.

32.

Answer : (d) Reason : A leader who emphasizes the technical aspects of the job and is concerned with accomplishing the group's tasks is said to be production-oriented, according to the University of Michigan studies.

33.

Answer : (d) Reason : Semantic distortion, either deliberate or accidental, acts as a barrier to effective communication. Such distortion takes place if the meaning is not communicated properly. So, (d) is correct answer.

34.

Answer : (d) Reason : Content theory of motivation focuses on analyzing what motivates people. Hence, from above discussion, we can infer that option (d) is correct.

35.

Answer : (c) Reason : An autocratic leader tends to centralize authority, dictate work methods, and make unilateral decisions.

36.

Answer : (b) Reason : In Japanese Management style, the usual staffing position is I. Young people hired out of school. III. Slow promotion through ranks. IV. Promotions based on multiple criteria. Hence, (b) is the correct answer.

37.

Answer : (e) Reason : Assessment development centers are a specialized appraisal system wherein a high powered panel constituted by senior persons in the organization appraises employees by identifying their best capabilities or skills and training them further.

38.

Answer : (c) Reason : A TQM programme is a continual process involving all organization members that spans all production activities in the organization.

39.

Answer : (d) Reason : Work Sampling Test is used as a means of measuring practical ability on a specific job. The applicant completes some job activity under structured conditions. Hence from above discussion, we can infer that option (d) is correct.

40.

Answer : (c) Reason : A manager who consults with his employees and uses their suggestions before making a decision is a participative leader, according to House.

41.

Answer : (c) Reason : A guideline established by management to be used as a basis for evaluating performance is called a standard. Hence from above discussion, we can infer that option (c) is correct.

42.

Answer : (d) Reason : Except corporate policy statements, all the options given are examples of upward communication.

43.

Answer : (d) Reason : Salesperson Quotas is an example of internal information in an organization. Hence from above discussion, we can infer that option (d) is correct. Options (a), (b), (c) and (e) are all examples of external information.

44.

Answer : (a) Reason : Current ratio is the ratio of current assets to total current liabilities and measures an organization’s ability to meet short-term obligations. Hence from above discussion, we can infer that option (a) is correct.

45.

Answer : (b) Reason : The steps in formulating a career strategy are as follows: Preparation of a personal profile. Development of long-range personal and professional goals. Analysis of the environment. Analysis of Personal Strengths and Weaknesses. Development of Strategic Career Alternatives. Consistency Testing and Strategic Choices. Development of short-range career objectives and action plans. Development of contingency plans. Implementation of the Career Plan. Monitoring Progress. Hence, from above discussion, we can infer that option (b) is correct.

46.

Answer : (c) Reason : A successful JIT program requires that suppliers be located in close proximity of the company, so that materials can arrive as and when needed. Hence from above discussion, we can infer that option (c) would generally not be associated with a successful JIT program. Options (a), (b), (d) and (e) would all be associated with a successful JIT program.

47.

Answer : (a) Reason : The level of management for which information about environmental trends would be most appropriate is top management. Hence from above discussion, we can infer that option (a) is correct.

48.

Answer : (a) Reason : Do not resort to outsourcing of activites, instead develop them in-house is not a strategy for innovation; instead, companies should focus on the core strengths and outsource most other activities.

49.

Answer : (e) Reason : The following are assumptions of preventive control: I. Application of fundamentals can be evaluated. III. Well qualified managers can make minimum mistakes. IV. Management concepts, tools, principles and techniques are effective standards for measuring managerial standards and performance. Statement (II) – personal responsibility exists is an assumption of direct control.

50.

Answer : (c) Reason : The characteristics of the planning process usually adopted in US Management style are: (I) Short-term orientation, (III) Decisions initiated at the top, flowing down, (IV) Fast decision-making. Hence, (c) is the correct answer.

51.

Answer : (e) Reason : Performance appraisals are important in an organization because they provide systematic judgements to support promotions; provide a basis for coaching; provide a basis for counseling; and let subordinates know where they stand with the boss.

52.

Answer : (b) Reason : Hersey and Blanchard define “readiness” as the extent to which followers have the ability and the willingness to accomplish a specific task.

53.

Answer : (d) Reason : The following are steps involved in the enterprise self audit: I. Study the outlook of the industry in which the firm is operating. II. Appraise the position of the firm. III. Re-examine the basic objectives and major policies of the firm.

54.

Answer : (e) Reason : BARS contain set of specific behaviors that represent gradation of performance used as common reference points for rating employees. Ratings on job performance and evaluation jointly by manager and sub-ordinates. Option (e) is correct answer.

55.

Answer : (b) Reason : Return on investment is the ratio of earnings before taxes to that of total assets. So, it attempts to measure profitability. Hence, from above discussion, we can infer that option (b) is correct.

56.

Answer : (b) Reason : Blake and Mouton's middle-of-the-road leader operates on the assumption that adequate organization performance is possible through balancing the necessity to get out work while maintaining morale of people at a satisfactory level.

57.

Answer : (b) Reason : All options except (b) establishing planned activities, are steps in the control process.

58.

Answer : (b) Reason : The following statements are true with respect to content theories of motivation: I. Maslow’s self-actualization and esteem needs correspond to Herzberg’s motivators. Maslow’s esteem needs correspond to Alderfer’s need for power. The following statements are not true with respect to content theories of motivation II. McClelland’s need for achievement corresponds to Alderfer’s relatedness needs since McClelland’s need for achievement corresponds to Alderfer’s growth needs. IV. Herzber’s hygiene factors correspond to McClelland’s need for affiliation, Maslow’s social needs and Alderfer’s existence needs since Herzber’s hygiene factors correspond to Maslow’s safety and physiological needs and Alderfer’s existence needs.

59.

Answer : (c) Reason : Theory Y assumes that commitment to objectives is a function of the rewards associated with achievement.

60.

Answer : (b) Reason : According to Kurt Lewin, impoverished leadership style is ineffective on every performance criterion.

61.

Answer : (e) Reason : The purpose of job rotation is to broaden the knowledge of managers or potential managers and trainees learn through different enterprise functions like non-supervisory works, observation assignments etc. by rotation into different positions. But they cannot be posted in top-level management positions as high stakes are involved.

62.

Answer : (d) Reason : Simulation exercises create conditions to depict the reality. Problem-solving skills are most effectively acquired using these exercises. Hence, from above discussion, we can infer that option (d) is correct.

63.

Answer : (d) Reason :

Loss of sale and loss of customer goodwill are examples of stock-out costs.

64.

Answer : (c) Reason : Job enrichment is an attempt to build into jobs a higher sense of challenge and achievement, which does not involve payment of any financial incentives to the workers.

65.

Answer : (c) Reason : In direct control the cause of an unsatisfactory outcome traced back to the individual responsible for it who is then made to correct the practice.

66.

Answer : (e) Reason : Managers who make foreign investments believe such investments reduce or eliminate high transportation costs; allow participation in the rapid expansion of a market abroad; provide foreign technical, design, and marketing skills; and earn higher profits.

67.

Answer : (d) Reason : There is no such management control as ‘exception control’.

68.

Answer : (d) Reason : Functional Job Analysis focuses on the following dimensions of an individual job: I. Data, people and jobs pertaining to the individual’s job. III. Tools and equipment used by the worker. IV. Products and services produced by the worker. Hence, from above discussion, we can infer that option (d) is correct.

69.

Answer : (b) Reason : The psychological process of selecting stimuli, organizing the data into recognizable patterns, and interpreting the resulting information is known as perception. Hence, from above discussion, we can infer that option (b) is correct.

70.

Answer : (c) Reason : The Economic Order Quantity (EOQ) is an inventory control method developed to minimize ordering and holding costs, while avoiding stock out costs.

71.

Answer : (d) Reason : According to the Tannenbaum and Schmidt model of leadership, the following statements describe more of a boss centered leadership III. A manager more likely "sells" the decision. IV. A manager presents ideas and invites questions. The other two statements describe the subordinate centered leadership.

72.

Answer : (b) Reason : Replacement Planning is a means of identifying potential candidates to fill specific managerial positions. Hence, from above discussion, we can infer that option (b) is correct.

73.

Answer : (d) Reason : Skills Inventory is a computerized database containing basic information about each employee that can be used to assess the likely availability of individuals for meeting current and future human resource needs. Hence, from above discussion, we can infer that option (d) is correct.

74.

Answer : (c) Reason : The information attribute which tells whether the information pertains to the situation at hand or not, is known as Information Relevance. Hence from above discussion, we can infer that option (c) is correct.

75.

Answer : (a) Reason : If a training program attempts to sharpen logic, reasoning, or defining problems, it is most likely teaching Problem-solving skills. Hence from above discussion, we can infer that option (a) is correct.

76.

Answer : (d) Reason : The following are claims that support self-appraisal: I. It increases personal commitment of employees. II. It improves employees understanding of job performance. Hence, option (d) is the answer. III. It provides a great deal of information about the appraisee is a claim that supports appraisal.

multiple

77.

Answer : (a) Reason : Organizational development relies on the use of interventions, which are change strategies developed and initiated with the help of a change agent. Hence, from above discussion, we can infer that option (a) is correct.

78.

Answer : (c) Reason : The Program Evaluation and Review Technique (PERT) is especially useful in scheduling Projects. Hence from above discussion, we can infer that option (c) is correct.

79.

Answer : (b) Reason : Feedback control is a control type based on timing that involves regulation exercised after a product or service has been completed, to ensure that they meet the standards necessary for the transformation process. Hence, from above discussion, we can infer that option (b) is correct.

80.

Answer : (b) Reason : Productivity is the relationship between the amount of goods/services produced and the organizational resources needed to produce them.

81.

Answer : (e) Reason : For an information system to be effective, it should provide both internal and external information that is timely and accurate.

82.

Answer : (d) Reason : Debt management ratios (I) indicate what percentage of the organization’s assets are financed by creditors, (II) they are also called leverage ratios and (III) a higher percentage indicates that creditors have a greater claim over the assets of the organization than the owners. Hence statement (III) is not true and option (d) is the answer.

83.

Answer : (b) Reason : Polycentric attitude is based on the notion that it is best to give foreign subsidiaries, staffed by local nationals, a great deal of managerial freedom. Hence, from above discussion, we can infer that option (b) is correct.

84.

Answer : (e) Reason : Creativity is an individual phenomenon and cannot be discovered through groups is not a limitation of group discussion techniques to enhance creativity.

85.

Answer : (c) Reason : The Porter-Lawler model of motivation, which is an improvement of the expectancy theory, assumes that motivation does not equal satisfaction. It assumes satisfaction does not lead to performance. Rather, the converse is true: performance can, but does not always, lead to satisfaction through the reward process. It assumes that motivation is not a simple cause-and-effect matter. The model advocates that managers carefully assess their reward structures and also assumes that performance leads to intrinsic as well as extrinsic rewards.

86.

Answer : (d) Reason : A democratic-consultative leader involves employees in decision-making, delegates authority, and gathers input from employees, but makes the final decision himself/herself.

87.

Answer : (b) Reason : In organizations, people who act as catalysts and assume the responsibility for managing the change process are called change agents. Hence from above discussion, we can infer that option (b) is correct.

88.

Answer : (e) Reason : Grapevine is an integral part of organizational communication and hence cannot be eliminated.

89.

Answer : (a) Reason : According to Maslow, a need stops motivating when it is substantially satisfied.

90.

Answer : (b) Reason : Path-goal theory suggests four types of leadership: direct, supportive, participative, and achievementoriented leadership.

91.

Answer : (b) Reason : Leverage or debt management ratios indicate the company’s ability to pay long-term debts.

92.

Answer : (c) Reason : Equity theory recognizes that individuals are concerned with their rewards relative to others.

93.

Answer : (d) Reason: According to the Japanese management practices, Kaisha refers to “my/one’s company” where people are treated as family members.

94.

Answer : (d) Reason: Creativity in an organization is either there or it is not – it is a natural process and cannot be controlled. This would be the best suggestion for Ms. Sondhi to explore.

95.

Answer : (b) Reason : Ratio is an index that measures one variable relative to another.

96.

Answer : (b) Reason : Feedback can be used as a way for sources to evaluate their communication effectiveness.

97.

Answer : (d) Reason: Inventory control system helps a manger to manage the inputs in such a way that they (inputs) are available at right time, at right place and in the right quantity with minimum cost of maintenance.

98.

Answer : (d) Reason : The interview, as a selection device, is most useful for selecting persons to managerial jobs, such as the job of a Bank Manager. Hence from above discussion, we can infer that option (d) is correct.

99.

Answer : (b) Reason : According to research carried out by Ohio University researchers, consideration is the degree to which a leader builds mutual trust with subordinates, respects their ideas and shows concerns for their feelings. Hence, from above discussion, we can infer that option (b) is correct.

100. Answer : (c) Reason : In negotiation and agreement method of overcoming resistance to change, management neutralizes potential or actual resistance by exchanging something of value for cooperation. Hence, from above discussion, we can infer that option (c) is correct. < TOP OF THE DOCUMENT >