Mba Papers (present & Last Yrs )

Question Paper Introduction to Management-II (MB112): April 2006 • Answer all questions. • Marks are indicated against each question.

1.

According to the University of Michigan studies, leaders who were associated with higher group productivity and higher job satisfaction were (a) Employee oriented (c) Consideration oriented (e) Transformational.

2.

3.

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Performance can be measured Personal responsibility is absent The time expenditure is warranted Mistakes can be discovered in time The individual who is responsible will take corrective steps.

(a) Job analysis (d) Job review

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(b) Both (I) and (III) above (d) (II), (III) and (IV) above

The characteristics of the individual who should be hired for the job are indicated by the

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(b) Job description (c) Job specification (e) Job identification.

A PERT network depicts the sequence of activities needed to complete a project and the (a) (b) (c) (d) (e)

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Reduce or eliminate high transportation costs. Allow participation in the rapid expansion of a market abroad. Provide foreign technical, design, and marketing skills. Earn higher profits.

Direct control is the control that is exercised after the deviations from plans have occurred. Which of the following is not the underlying assumption of direct control? (a) (b) (c) (d) (e)

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(c) Sales report

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

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

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(b) Purchase order summary (e) Production report.

Managers who make foreign investments believe that such investments will I. II. III. IV.

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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 theories of motivation focus on (a) (b) (c) (d) (e)

4.

(b) Initiating structure oriented (d) Production-oriented

Which of the following is not an upward communication? (a) Cost accounting report (d) Corporate policy statement

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Amount of money needed for each activity Time or costs associated with each activity Step of each activity Schedule of each activity Estimated day of each activity.

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 explains that information is available when it is needed without excessive delay pertains to (a) Information accuracy (c) Information time horizon (e) Information frequency.

(b) Information timeliness (d) Information completeness 1

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9.

Senthil is a salesperson for Cloud 9 Corporation's Chennai office. If the salespersons meet their sales goals for the month, they are given an all-expense-paid trip to a Salgaonkar Club football game. Football is not one of Chennai's favorite sports, and the Salgaonkar Club is definitely not Senthil's favorite team. Which component of Vroom’s expectancy theory influences Senthil’s performance? (a) Effort-performance linkage (d) Performance-reward linkage

(b) Instrumentality (c) Valence (e) Effort-reward linkage.

10. Which of the following does not constitute a set of decisions that are included in an operations management program? (a) Capacity decisions (d) Materials/inventory decisions

(b) Facilities decisions (e) Budgeting decisions.

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The magnitude of calculations hikes up the cost of operations research Qualitative factors such as human resources cannot be quantified It emphasizes the logical physical presentation of a problem in the form of a model There is a gap between practicing managers and trained operations researchers It provides solutions only when all elements related to a problem are quantified.

12. Evaluation of the effectiveness and efficiency of various systems within an organization is referred to as (a) Social audit (d) Management audit

(a) 360 degree appraisal (c) Formal appraisal (e) Assessment development centers.

(b) Participative (e) Autocratic.

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(c) Laissez-faire

16. 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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Data, people and jobs pertaining to the individual’s job. Interpersonal relationships required to perform the job. Tools and equipment used by the worker. Products and services produced by the worker.

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

(b) Only (III) above (d) (I), (III) and (IV) above

17. Information overload is a barrier to communication. Employees may react to information overload by I. II. III. IV.

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(b) Financial control (c) Quality control (e) Clan control.

15. Lead Management had given Saila a very tight deadline and she wanted to get the job done as quickly as possible. Saila was well versed with the job to be completed, 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) Employee-centered (d) Job-centered

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(b) Behaviorally anchored rating scales (d) Peer assessment

14. 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? (a) Budgetary control (d) Inventory control

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(b) Ethical audit (c) Quality control (e) Functional audit.

13. 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?

I. II. III. IV.

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(c) Quality decisions

11. Which of the following is not a limitation of operations research? (a) (b) (c) (d) (e)

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Resorting to impersonal communication. Making processing errors. Disregarding certain information. Delaying information processing.

(a) Both (I) and (II) above (c) Both (III) and (IV) above (e) (II), (III) and (IV) above.

(b) Both (I) and (IV) above (d) (I), (II) and (III) above

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18. Which of the following refers to the way data should be verified for accuracy and completeness? (a) Data management (d) Data integrity

(b) Data validation (c) Data security (e) Data sufficiency.

19. The dual nature of leader behaviors, focusing on the work to be done and focusing on the employees, is a key characteristic of which of the following? (a) Fiedler's contingency model (c) Situational leadership theory (e) University of Michigan studies.

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(b) Least preferred task (d) Least preferred position

21. 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) Top-level management (c) First-line management (e) All levels of management.

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(b) The path-goal theory (d) The Ohio State studies

20. Which of the following variables is at the heart of Fiedler's Contingency Theory? (a) Least preferred leader (c) Least preferred company (e) Least preferred co-worker.

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(b) Middle-level management (d) Lower-level management

22. Which of the following statements is/are true with respect to content theories of motivation?

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I. II. III. IV.

Maslow’s self-actualization and esteem needs correspond to Herzberg’s motivators. McClelland’s need for achievement corresponds to Alderfer’s relatedness needs. Maslow’s esteem needs correspond to Alderfer’s need for power. Herzber’s hygiene factors correspond to McClelland’s need for affiliation, Maslow’s social needs and Alderfer’s existence needs. (a) Only (I) above (b) Both (I) and (III) above (c) Both (II) and (IV) above (d) (II), (III) and (IV) above (e) All (I), (II), (III) and (IV) above. 23. Potential pitfall(s) of using budgets as control tools include I. II. III. IV.

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Placing too much emphasis on relatively insignificant organizational expenses. Changing budgets periodically. Increasing budgeted expenses year after year without adequate information. Having inexperienced people on the budget committees.

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

(b) Both (I) and (IV) above (d) (I), (II), and (III) above

24. With respect to creativity in organizations, which of the following is/are assumption(s) of the human relations model of management?

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I. II.

People want to contribute to meaningful goals. Most people can exercise far more creative, responsible self-direction and self-control than their present jobs demand. III. People desire to belong and to be recognized as individuals. IV. What workers do is less important than what they earn for doing it. (a) Only (III) above (c) Both (I) and (II) above (e) (I), (II) and (III) above.

(b) Only (IV) above (d) Both (III) and (IV) above

25. Which of the following is/are problem(s) with Herzberg’s theory, as spelt out by Edwin Locke? I. II. III.

The theory maximizes differences across people. The original classification and statements bear some confusion. The arguments are characterized by illogical inconsistencies.

(a) Only (I) above (d) Both (II) and (III) above

(b) Only (II) above (c) Only (III) above (e) All (I), (II) and (III) above.

26. Which of the following statements is/are true about feedback control? I.

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It identifies deviations that went undetected earlier. 3

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II. It is also referred to as yes-no control. III. It helps in revising existing plans and formulating new ones. IV. It provides information that facilitates the planning process. (a) Only (I) above (c) Both (II) and (IV) above (e) All (I), (II), (III) and (IV) above.

(b) Only (III) above (d) (I), (III) and (IV) above

27. In a meeting, when a senior manager’s communication gives ambiguous meanings and generates different responses in different people, then the distortion is called (a) Unclarified assumption (d) Insufficient adjustment

(b) Premature evaluation (e) Mental predisposition.

(c) Semantics

28. Which of the following is not true with respect to the function of ‘leading’ in the Japanese management style? (a) (b) (c) (d) (e)

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Outplacement. Layoffs. Promotions. Training and development.

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

(b) Both (I), and (II) above (d) (I), (II) and (IV) above

30. Which of the following ratios measures the effectiveness of an organization in managing its assets? (a) Activity ratio (d) Net profit margin ratio

(a) Manpower inventory (c) Succession planning (e) Inventory record file.

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(b) Current ratio (c) Debt ratio (e) Return on investment ratio.

31. 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?

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(b) Replacement planning (d) Skills inventory

32. Manager inventory chart is used in replacement planning of human resource management in an organization. Which of the following is not a disadvantage of the manager inventory chart? (a) (b) (c) (d) (e)

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Leader acts as a decision maker and head of the group It is characterized by the paternalistic style of management It avoids confrontation Communication is bottom-up It is characterized by common values facilitating cooperation.

29. Which of the following actions does an organization undertake, if manpower demand is low and manpower supply is high? I. II. III. IV.

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A fair assessment of the individual cannot be made using the data on the chart It does not show the position to which a manager may be promoted Updating the chart is time consuming and requires a lot of effort Top-level managers may be reluctant to share their charts with other top level managers Managers who do not perform satisfactorily cannot be identified. < Answer >

33. Which of the following is not true about standards? (a)

They constitute the criteria on which employees’ performance and employees’ behavior can be evaluated (b) They help the managers stimulate the need to watch every step in the execution of plans (c) They are incorporated into goals during the planning process (d) Sometimes standards need to be developed during the control process (e) They are expressed numerically. 34. Organizations get accustomed to the processes in place and consequently are unwilling to make any changes. Which source of organizational resistance to change does this represent? (a) Limited focus of change (c) Structural inertia

(b) Threat to expertise (d) Threat to established resource allocation 4

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(e) Group inertia. 35. 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)

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

36. Which of the following is the process of perceiving all the attributes and characteristics of another person on the basis of knowledge of a single trait of that person? (a) Stereotype (d) Expectancy

(a) Capital

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(b) Halo Effect (c) Attribute (e) Hawthorne Effect.

37. Productivity can be measured in two ways: total productivity and partial productivity. In both the cases it is expressed as a ratio of outputs to inputs. Which one of the following inputs is common to both the measures? (b) Energy

(c) Materials

(d) Labor

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(e) Technology.

38. Fred E. Fiedler and his associates at the University of Illinois, suggested a very famous leadership model, which was based on the premise that a certain leadership style would be (a) (b) (c) (d) (e)

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More effective than concern for production Effective, dependent on the readiness of followers Most effective in different types of situations Less effective than the behavioral style models Effective, depending on the degree of participation by subordinates in the decision-making process.

39. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of the following guidelines is least likely to improve the effectiveness of the appraisal process?

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Stress both performance in the position the individual holds and the success with which the individual is attaining organizational objectives (b) Emphasize the evaluator's impression of the individual's work habits (c) Ensure that the appraisal is acceptable to both the evaluator and the evaluated (d) Ensure that the appraisal provides a base for improving individuals' productivity within the organization by making them better equipped to produce (e) Determine standards of effective performance.

(a)

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40. In non-directive counseling, a manager should I. II. III.

Raise appropriate questions. Create an atmosphere of privacy to help the employee communicate freely. Encourage the employee to find solutions through examples set by others.

(a) Only (I) above (c) Only (III) above (e) All (I), (II) and (III) above.

(b) Only (II) above (d) Both (I) and (II) above

41. According to the Tannenbaum and Schmidt model of leadership, which of the following statements describes more of a boss centered leadership? I. II. III. IV.

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A manager more likely asks the group to make a decision. A manager permits subordinates to function within limits. A manager more likely "sells" the decision. A manager presents ideas and invites questions.

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

(b) Both (I) and (II) above (d) Both (III) and (IV) above

42. Which of the following Japanese management practices implies that promotion and wage increases are based on an employee’s length of service and not on job performance? (a) Shushin kayo (d) Kacho

(b) Kaisha (e) Ringi. 5

(c) Henko

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43. In which of the following situations can innovation take place? I. II. III. IV.

Realization of congruity between what is assumed and what the real situation is. Demographic changes. The need to improve a task of a process. Changes in meaning or in the way things are perceived.

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

(b) Both (I) and (II) above (d) (I), (III) and (IV) above

44. Which of the following are reasons, why productivity of knowledge workers is more difficult to measure than productivity of industrial workers?

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I. II.

The quality of a knowledge worker’s output cannot be determined immediately. The output of a knowledge worker often contributes only indirectly to the achievement of the endresult. III. Upgraded skills of knowledge workers due to rapid technological advances make output measurement difficult. IV. Knowledge workers often assist other organizational units and this contribution is difficult to measure. (a) Both (I) and (II) above (c) (I), (II) and (IV) above (e) All (I), (II), (III) and (IV) above.

(b) Both (III) and (IV) above (d) (II), (III) and (IV) above

45. Which of the following control systems do low-level managers more frequently use? I. II. III. IV.

Financial control system. Budgetary control system. Quality control system. Inventory control system.

(a) Both (I) and (II) above (c) Both (III) and (IV) above (e) (II), (III) and (IV) above.

(b) Both (II) and (III) above (d) (I), (II) and (III) above

46. Which of the following intervention techniques is used to help organization members enhance their own effectiveness by showing them, how to evaluate and make appropriate changes in task design, work method and organization structure? (a) Technostructural Activities (d) Process Consultation

(b) Skill Development (e) Survey Feedback.

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They should reflect plans, positions and structure They should be flexible They should be cost-effective They should provide accurate information They should have a single criterion for measuring performance.

48. During which stage of the basic control process model, the manager should have strong diagnostic skills and a certain level of expertise? (a) (b) (c) (d) (e)

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(c) Team Building

47. All managers need adequate and effective control systems to help them make sure that actual performance more or less conforms to planned performance. Which of the following is not a characteristic of effective control systems? (a) (b) (c) (d) (e)

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Establish standards Measure performance Analysis of causes of deviation Compare performance against standards Evaluate results and take necessary correction action.

49. Various selection devices are used to choose candidates who best meet the qualifications and have the greatest aptitude for the job. Asking a candidate for an automotive mechanic’s position, to assemble and disassemble part of an engine motor would be an example of what kind of selection device? (a) Psychological test (d) Intelligence test

(b) Performance test (c) Personality test (e) Attitude test. 6

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50. Which of the following are advantages of an internal recruitment? I. II. III. IV. V.

Training costs will be low. Reliable information is available about candidates. Candidates may have broader experience. Recruitment costs are low. Employee morale is increased due to upward mobility opportunities.

(a) (I), (II) and (III) above (c) (I), (IV) and (V) above (e) (II), (IV) and (V) above.

(b) (I), (III) and (V) above (d) (II), (III) and (IV) above

51. Mr. Arbind, the CEO of E.E.C. Inc. has identified the benefits that a company can derive by practicing job rotation. But he is unable to find positions for job rotation for his managers and trainees. Which of the following can Arbind identify as suitable position(s) for job rotation? I. II. III.

Non-supervisory. Observation. Top-level management position.

(a) Only (I) above (d) Both (I) and (III) above

(b) Only (II) above (c) Only (III) above (e) Both (I) and (II) above.

52. According to House, a leader that sets challenging goals and expects employees to perform at their highest level is using which of the following leadership styles? (a) Directive (d) Supportive

(b) Achievement-oriented (e) Transformational.

(a) Remuneration (d) Compensation

(b) Fringe benefit (e) Incentive.

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(c) Payment < Answer >

54. A funds flow statement Is a source of funds statement Is a statement of use of funds A statement of sources and uses of funds for a definite period between two dates Summarizes the financial results of a company’s operations over a specified time period Shows the overall financial worth of the organization at a specific point of time.

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

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(c) Participative

53. 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)

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

56. In which of the following methods of overcoming resistance to change, is a leader or an influential person among the potential resisters given a seemingly desirable role in the change process in order to gain the leader’s cooperation? (a) Facilitation and support (d) Explicit and implicit coercion

(b) Negotiation and agreement (c) Manipulation (e) Cooptation.

57. In Blake and Mouton’s managerial grid, which of the following styles of management minimum effort is exerted to complete work and there is dependence on previous practices, to keep the organization going? (a) Team management (c) Country Club management (e) Organization-man management.

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(b) Authority-obedience management (d) Impoverished management

58. 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) A work group that meets regularly to discuss, investigate and correct quality problems (b) A stage in the group development 7

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(c) A temporary group to establish a specific task (d) Acceptable standards shared by a group’s members (e) An organization’s long-term commitment to the continuous improvement of quality. 59. Which of the following types of leaders can be perceived as agents of radical change rather than as caretakers of the status quo? (a) Charismatic (d) Democratic

(b) Transactional (e) Visionary.

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(c) Autocratic

60. Which of the following is not a limitation of group discussion techniques to enhance creativity?

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(a) Members of a group may pursue only one idea, ignoring other alternatives (b) Members may hesitate to express their idea before the group due to fear of being ridiculed (c) Lower level managers may not be able to express their views openly in presence of top-level managers (d) The need to arrive at a consensus may be stronger than the need to explore creativity (e) Creativity is an individual phenomenon and cannot be discovered through groups. 61. There are various means of assessing internal labor supply. Which of the following provides the organization with a well qualified pool of individuals from which top-level and middle-level managers can be selected in future? (a) Succession Planning (c) Resources Planning (e) Operational Planning.

(b) Replacement Planning (d) Requirements Planning

62. Vikas Tripathi tore up his contract and threw it on his desk. What caused Vikas to act this way? He just learned that a new employee was hired in an entry-level position and this new employee was to earn 30 percent more than Vikas. Which of the following process theories of motivation was developed to explain Vikas’s reaction to the situation he faced? (a) Social cognition theory (d) Goal-setting Theory

(b) Expectancy theory (e) Porter Lawler model.

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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.

64. In the US Management style, the staffing function is characterised by I. II. III. IV. V.

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(c) Equity theory

63. Which of the following statements is false concerning Vroom's Expectancy Theory? (a) (b) (c) (d) (e)

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Rapid advancement desired. Loyalty to the profession. Slow promotion through ranks. Appraisal of short-term results. Promotions based on multiple criteria.

(a) (I), (II) and (III) above (c) (I), (II) and (V) above (e) (II), (III) and (IV) above.

(b) (I), (II) and (IV) above (d) (I), (III) and (IV) above

65. 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) Ethnocentric attitude (c) Polycentric attitude (e) Geocentric attitude.

(b) Regiocentric attitude (d) Gendercentric attitude

66. In the operations research methodology, which of the following steps precedes the others? (a) Testing the model (c) Putting the solution into effect (e) Providing controls for the model.

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(b) Deriving a solution from the model (d) Mathematical model construction

67. In which of the following responsibility centers does the control system examine the role of assets in generating profit apart from measuring the monetary value of inputs and outputs? 8

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(a) Profit centers (d) Standard cost centers

(b) Investment centers (c) Revenue centers (e) Discretionary expense centers.

68. 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) Democratic- consultative (d) Democratic- participative

(b) Laissez-faire (c) Autocratic (e) Middle of the road. < Answer >

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

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.

(a) Only (I) above (c) Only (III) above (e) All (I), (II) and (III) above.

(b) Only (II) above (d) Both (I) and (II) above

70. Performance rating can either be behavior-oriented or results-oriented. Within the behavior-oriented category, two assessment means are Graphic Rating Scales and Behaviorally Anchored Rating Scales (BARS). Which of the following is not true with regard to BARS? (a) (b) (c) (d) (e)

(a) Carrying cost (d) Stock-out cost

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(b) Item cost (c) Ordering cost (e) Superfluous cost. < Answer >

72. Which of the following is not an application of office automation systems? (a) Voice mail (d) Teleconferencing

(b) Internet (e) Graphics.

(c) Groupware

73. 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?

(b) Both (I) and (II) above (d) (I), (II) and (III) above

74. According to Herzberg’s motivation-hygiene theory, which of the following responses are hygiene factors?

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Personal life, security, salary and recognition Advancement, salary, status, company policy Relationship with peers, status, supervision and security Working conditions, relationship with subordinates, supervision and work itself Responsibility, salary, status, company policy.

75. According to Hersey and Blanchard, a high task-low relationship situation would require which of the following leadership styles? (a) Delegating

(b) Directing

(c) Participating

(d) Selling

76. Which of the following are advantages of a ‘geographical information system?’ I. II. III.

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They enjoy a sense of intimacy and understanding. They console and help those in trouble. They suffer pain when rejected. They have an intense desire for success.

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

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

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BARS minimize subjective interpretation inherent in graphic rating scales BARS make use of ‘anchors’ (common reference points of performance) BARS concentrate on job-specific behaviors and hence is highly meaningful BARS are a simple and cost-effective rating method BARS can be applied in organizations where a large number of people perform similar jobs.

71. Loss of sale and loss of customer goodwill are examples of

I. II. III. IV.

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Maps can be prepared economically and updated with ease. Maps are automatically supplemented with statistical analysis. Maps can be generalized to suit all needs of users. 9

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(e) Telling. < Answer >

IV. Maps use a unidimensional format. (a) Both (I) and (II) above (d) Both (III) and (IV) above (e) (I), (III) and (IV) above.

(c) Both (I) and (III) above (d) (I), (II) and (IV) above < Answer >

77. Which of the following is not an input in the ‘distribution logistics model?’ (a) Manufacturing costs (d) Customer service standards

(b) Procurement lead times (e) Inventory plan.

(c) Sales forecasts

78. Which of the following information systems has outputs in the form of projections and responses to queries? (a) Transaction processing (d) Executive support

(b) Office automation (c) Decision support (e) Management information. < Answer >

79. Which of the following is/are advantage(s) of preventive control? I. II. III.

Greater accuracy at work is achieved. Corrective actions improve the processes and make them more effective. It discourages managers implementing controls through self exercised control.

(a) Only (I) above (c) Only (III) above (e) All (I), (II) and (III) above.

(b) Only (II) above (d) Both (I) and (II) above

80. Hazard analysis and Critical Control Point Method (HACCP) is used in the food manufacturing industry to identify and prevent microbial and other germs from causing harm to food. With respect to HACCP, which of the following principles involves identifying the maximum or minimum level at which the food safety hazard has to be controlled to reduce it to an acceptable level? (a) Hazard analysis (d) Establish corrective actions

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House's Path-Goal Theory Vroom and Yetton's Normative Decision Model Blake and Mouton's Managerial Grid Hersey and Blanchard's Situational Leadership Model Fiedler’s Contingency Theory.

82. 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) Problem Solving (d) Compromise

(b) Forcing (e) Avoidance.

(a) Turnover rate (d) Production schedules

(b) Strategic plans (e) Relocations.

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(c) Smoothing

83 In human resource planning, which of the following is not an element in ‘resource demand forecasting?’

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(c) Demographics

84. Which of the following is/are claim(s) that support self-appraisal? I. II. III.

< Answer >

(b) Identifying control points (c) Critical limits (e) Record keeping.

81. Which leadership theory, Vinod Sharma is said to be using when he determines the effectiveness of decisions as measured by group performance with respect to quality of the decision and its acceptance? (a) (b) (c) (d) (e)

< Answer >

< Answer >

It increases personal commitment of employees. It improves employees understanding of job performance. It provides a great deal of information about the appraisee.

(a) Only (I) above (c) Only (III) above (e) All (I), (II) and (III) above.

(b) Only (II) above (d) Both (I) and (II) above

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) It’s built on Vroom’s expectancy theory (b) It means motivation is not a simple cause-and-effect matter (c) It assumes that satisfaction leads to performance 10

< Answer >

(d) It emphasizes careful assessment of the reward structure (e) It assumes that performance leads to intrinsic as well as extrinsic rewards. 86. Which of the following is included in the set of situational factors for effective leadership identified in path-goal theory? (a) Organization structure (d) Self confidence

(b) Formal authority system (e) Bureaucracy.

(c) Work group

87. Kurt Lewin, a researcher at the University of Iowa, and his colleagues, proposed three leadership styles. viz., autocratic, democratic and laissez-faire. Which of the following statements is not true regarding these three leadership styles? (a) (b) (c) (d) (e)

< Answer >

< Answer >

A democratic leader actively tries to solicit the input of subordinates. A laissez-faire leader avoids making decisions An autocratic leader will always have low performance from employees A democratic leader usually requires a consensus before reaching a decision Autocratic leaders make decisions on their own. < Answer >

88. Which of the following statements is not true? (a) Steering controls are used following completion of activity (b) Preventive controls are used prior to the start of activity and feedback controls follow completion of activity (c) Concurrent controls are used during the performance of activity and feedforward controls prior to start of activity (d) Quality control tests of output are an example of concurrent control (e) Comparison of employee input per hour with established standards is an example of steering control.

< Answer >

89. Which of the following statements about revenue centers is/are true? I. II. III.

Sales and marketing departments are examples of revenue centers. In revenue centers, outputs are measured in monetary terms and directly compared with input costs. A revenue center cannot be responsible for changes in profit levels.

(a) Only (I) above (c) Both (I) and (III) above (e) All (I), (II) and (III) above.

(b) Only (II) above (d) Both (II) and (III) above < Answer >

90. Which of the following is not true about a comprehensive interview? (a) (b) (c) (d) (e)

The unstructured interview yields more valid data than a structured interview The structured interview is useful if a large number of candidates have to be interviewed In an unstructured interview the candidate is allowed to talk freely on general questions Structured interviews are mechanical and may convey disinterest to the candidate Structured interviews do not allow the interviewer to probe interesting or unusual issues that may arise during the interview.

91. Managers often have to choose the best alternative from a given set of alternatives. What is the technique that managers use for selecting an optimum combination of factors from a series of interrelated alternatives? (a) Economic order quantity (d) Kanban

(b) Linear programming (c) JIT system (e) Distribution logistics.

92. Managers using which of the following techniques most effectively acquire problem-solving skills? (a) A mentor relationship (d) Simulation exercises

(b) Planned Progression (e) Classroom lectures.

(b) Intuition (e) Decision.

(b) Cybernetic control (e) Yes-no control. 11

< Answer >

(c) Insight

94. Which of the following controls is based on the idea that most of the negative deviations from standards can be overcome by applying the fundamentals of management? (a) Preventive control (d) Steering control

< Answer >

(c) Job rotation

93. Which stage of the creative process links the unconscious state of mind with the conscious state? (a) Unconscious scanning (d) Logical formulation

< Answer >

(c) Direct control

< Answer >

95. Which of the following are characteristics of the planning process usually adopted in the Japanese management style? I. II. III. IV. V. (a) (c) (e)

Long-term orientation. Individual decision-making. Decisions flowing from bottom to top and back. Decisions initiated at the top, flowing down. Slow decision-making. Both (I) and (II) above (b) Both (I) and (III) above Both (II) and (IV) above (d) (I), (III) and (V) above (II), (III) and (IV) above.

96. Which of the following responsibility centers are also referred to as ‘engineered expense centers?’ (a) Discretionary expense centers (d) Revenues centers

(b) Standard cost centers (e) Investment centers.

< Answer >

Focus on the entire supply chain Organization should retain ownership of inventory and not shift it to suppliers Share information with suppliers Adopt A,B, C segmentation for products Improve accuracy of demand forecasts.

99. Which of the following is not a strength of appraisal against verifiable objectives? (a) (b) (c) (d) (e)

< Answer >

Employees are given more freedom in decision-making. Management sets broad goals and objectives. Accountability revolves around positions. Organizational learning is ongoing. Both (I) and (III) above (b) Both (II) and (IV) above Both (III) and (IV) above (d) (I), (II) and (IV) above All (I), (II), (III) and (IV) above.

98. Which of the following is not a measure for inventory control? (a) (b) (c) (d) (e)

< Answer >

(c) Profit centers

97. Adaptability is essential for present day organizations to survive. Which of the following are characteristics of adaptable organizations? I. II. III. IV. (a) (c) (e)

< Answer >

< Answer >

Luck plays an important role in the performance of an individual It is operational in nature There is credibility because the appraisal is objective in nature It is carried out with mutual cooperation from superiors and subordinates It does not form a separate component from the job.

100. In Vroom’s expectancy theory, which variable refers to the probability that successful performance will lead to certain outcomes? (a) Valence (d) Motivation

(b) Expectancy (e) Drive.

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(c) Instrumentality

< Answer >

Suggested Answers Introduction to Management-II (MB112): April 2006 1.

Answer : (a) Reason : According to the University of Michigan studies, leaders who were employee-oriented were associated with higher group productivity and higher job satisfaction.

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2.

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

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3.

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

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4.

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. Answer : (b) Reason : The underlying assumptions of direct control are: e. Performance can be measured. f. Personal responsibility exists. g. The time expenditure is warranted. h. Mistakes can be discovered in time. The individual who is responsible will take corrective i. steps. Hence, from above discussion, we can infer that option (b) is not the underlying assumption of direct control. Options (a), (c), (d) and (e) are all underlying assumptions of direct control.

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6.

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

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7.

Answer : (b) Reason : A PERT network depicts the sequence of activities needed to complete a project and the time or costs associated with each activity.

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8.

Answer : (b) Reason : The information attribute explains that information is available when it is needed without excessive delay pertains to information timeliness. Hence, option (c) is correct.

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5.

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9.

Answer : (c) Reason : Senthil’s performance is influenced by the component of valence.

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10.

Answer : (e) Reason : Budgeting decisions do not constitute a set of decisions that are included in an operations management program.

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11.

Answer : (c) Reason : Emphasis on the logical physical presentation of a problem in the form of a model is a characteristic of operations research and not a limitation.

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12.

Answer : (d) Reason : Evaluation of the effectiveness and efficiency of various systems within an organization is referred to as management audit.

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13.

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.

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14.

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.

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15.

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.

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16.

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.

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17.

Answer : (e) Reason : Employees may react to information overload by • Filtering information • Making processing errors • Disregarding certain information • Delaying information processing • Ignoring communication. Hence, employees may react to information overload in

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18.

ways mentioned in statements (II), (III) and (IV) and option (e) is the answer. Answer : (b) Reason : Data validation refers to the way data should be verified for accuracy and completeness.

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19.

Answer : (e) Reason : The dual nature of leader behaviors, focusing on the work to be done and focusing on the employees, is a key characteristic of the University of Michigan studies.

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20.

Answer : (e) Reason : The variable that is at the heart of Fiedler's contingency theory is least preferred co-worker.

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21.

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.

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22.

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. III. 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 dince 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.

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23.

Answer : (c) Reason : Potential pitfalls of using budgets as control tools include placing too much emphasis on relatively insignificant organizational expenses, and increasing budgeted expenses year after year without adequate information.

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24.

Answer : (a) Reason : The assumptions of the human relations model of management are: • People want to feel useful and important • People desire to belong and to be recognized as individuals • Creative needs are more important than money in motivating people to work Statements (I) and (II) are assumptions of the human resources model. Statement (IV) is an assumption of the traditional model of management. Hence option (a) is the

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answer. 25.

Answer : (d) Reason : The following are problems with Herzberg’s theory as spelt out by Edwin Locke: I. The theory minimizes differences across people II. The original classification and statements bear some confusion III. The arguments are characterized by illogical inconsistencies Hence, the statement – the theory maximizes differences across people is not correct and option (d) is the answer.

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26.

Answer : (d) Reason : Concurrent control is referred to as yes-no control and not feedback control. Hence, statement (II) is not true about feedback control and option (d) is the answer.

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27.

Answer : (c) 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 and generates different responses in different people. Hence, (c) is correct answer.

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28.

Answer : (a) Reason : In the Japanese management style the leader acts as a social facilitator and group member.

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29.

Answer : (b) Reason : If manpower demand is low and manpower supply is high a company undertakes • Changes in company plans • Outplacement • Layoffs • Demotions • Early retirement Promotions are undertaken when both manpower demand as well as supply are high. Training and development is undertaken when manpower supply is low and manpower demand is high. Hence, option (b) is the answer.

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30.

Answer : (a) Reason : Activity ratios or asset management ratios measure the effectiveness of an organization in managing its assets.

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31.

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.

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32.

Answer : (e) Reason : Manager Inventory Chart does identify employees who are not performing up to expectations and help in training or

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replacing them. 33.

Answer : (b) Reason : Controls help managers in eliminating the need to watch every step in the execution of plans. Hence option (b) is not true about standards.

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34.

Answer : (c) Reason : Organizations getting accustomed to the processes in place and consequently being unwilling to make any changes refers to structural inertia.

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35.

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

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36.

Answer : (b) Reason : Halo Effect is the process of perceiving all the attributes and characteristics of another person on the basis of knowledge of single trait of that person. Hence, from above discussion, we can infer that option (b) is correct.

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37.

Answer : (d) Reason : Labor is a common input to both the productivity measures: total productivity and partial productivity.

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38.

Answer : (c) Reason : Fred E. Fiedler and his associates at the University of Illinois, suggested a very famous leadership model, was which was based on the premise that a certain leadership style would be most effective in different types of situations. Hence from above discussion, we can infer that option (c) is correct.

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39.

Answer : (b) Reason : Performance appraisal involves the formal evaluation of an individual's job performance. Emphasizing the evaluator's impression of the individual's work habits is least likely to improve the effectiveness of the appraisal process. Hence, from above discussion, we can infer that option (b) is correct.

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17

Answer : (d) Reason : In non-directive counseling, a manager should • Be attentive and friendly • Raise appropriate questions. • Be tactful and enable the employee to think through the problem clearly • Create an atmosphere of privacy to help the employee communicate freely • Be a patient listener to help the employee to express his emotions freely • Encourage the employee to examine his own ideas and do some introspection. 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.

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42.

Answer : (c) Reason : The Japanese management practice Henko, implies that promotion and wage increases are based on an employee’s length of service, not job performance.

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43.

Answer : (e) Reason : Innovation can take place in all of the given situations namely: I. Realization of congruity between what is assumed and what the real situation is. II. Demographic changes. III. The need to improve a task of a process. IV. Changes in meaning or in the way things are perceived. Answer : (c) Reason : The following are reasons why productivity of knowledge workers is more difficult to measure than productivity of industrial workers” I. The quality of a knowledge worker’s output cannot be determined immediately. II. The output of a knowledge worker often contributes only indirectly to the achievement of the end-result. IV. Knowledge workers often assist other organizational units and this contribution is difficult to measure.

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45.

Answer : (e) Reason : Low level managers use budgetary control system to ensure organizational activities re carried out according to the budgets allocated, quality control systems &inventory control low-level managers use systems. Low level mangers generally not concerned with financial control system. Top-level management usually uses financial control system.

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46.

Answer : (a) Reason : Technostructural activities are used to help organization members enhance their own effectiveness by showing them how to evaluate and make appropriate changes in task design, work methods and organization structure. 18

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40.

41.

44.

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design, work methods and organization structure. 47.

Answer : (e) Reason : Effective control systems should have multiple criteria for measuring performance.

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48.

Answer : (e) Reason : The manager has strong diagnostic skills and a certain level of expertise in the evaluation and, correction implementation stage.

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49.

Answer : (b) Reason : Performance test or 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 (c) is correct.

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50.

Answer : (e) Reason : The following are advantages of internal recruitment • Candidates are already oriented to the organization • Reliable information is available about candidates • Recruitment costs are low • Employee morale is increased due to upward mobility opportunities Candidates may have broader experience is an advantage of external recruitment Hence, option (e) is the answer. 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.

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52.

Answer : (b) Reason : According to House, a leader that sets challenging goals and expects employees to perform at their highest level is an achievement-oriented leader.

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53.

Answer : (d) Reason : Compensation 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. Hence, from above discussion, we can infer that option (d) is correct.

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54.

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

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55.

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 19

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51.

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companies should focus on the core strengths and outsource most other activities. 56.

Answer : (e) Reason : In cooptation, a leader or an influential person among the potential resisters is given a seemingly desirable role in the change process in order to gain the leader’s cooperation

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57.

Answer : (d) Reason : Impoverished management assumes that exertion of minimum effort to get required work done is appropriate to sustain organization membership. It also relies on previous practices to keep the organization going.

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58.

Answer : (a) 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.

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59.

Answer : (a) Reason : Charismatic leaders are perceived as agents of radical change rather than as caretakers of the status quo.

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60.

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.

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61.

Answer : (a) Reason : Succession planning provides the organization with a well qualified pool of individuals from which top-level and middle-level managers can be selected in future.

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62.

Answer : (c) Reason : J.S. Adam’s equity theory points out that people are motivated to maintain fair relationship between their performance and reward in comparison to others. Therefore, the equity theory explains Vikas’s behaviour.

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63.

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 effortperformance-reward in this theory.

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64.

Answer : (b) Reason : In US Management style, the usual staffing position is (1) Rapid advancement desired and demanded. (2) Loyalty to the profession. (1) Appraisal of short-term results. Hence, (d) is the correct answer.

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65.

Answer : (c) 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, 20

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deal of managerial freedom. Hence, from above discussion, we can infer that option (b) is correct. 66.

Answer : (d) Reason : In the operations research methodology, mathematical model construction precedes the other steps.

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67.

Answer : (b) Reason : In investment centers the control system examine the role of assets in generating profit apart from measuring the monetary value of inputs and outputs.

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68.

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

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69.

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.

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70.

Answer : (d) Reason : BARS minimizes subjective interpretation inherent in graphic rating scales. They make use of ‘anchors’ (common reference points of performance) and they concentrate on job-specific behaviors and hence are highly meaningful. However, BARS are time-consuming and costly to develop, as they should cover each dimension of all jobs in the department. As a result, BARS tend to be used in situations in which relatively large numbers of individuals perform similar jobs.

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71.

Answer : (d) Reason : The cost of not having the stock of product requested by the customer is called stock-out cost. Loss of sale and loss of customer goodwill are examples of stock-out cost.

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72.

Answer : (b) Reason : Internet in itself is not an application of office automation systems, although it may aid in office automation.

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73.

Answer : (d)

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Reason : The following are characteristics exhibited by affiliationoriented 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. 74.

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Answer : (c) 21

Reason : According to Herzberg’s motivation-hygiene theory, relationship with peers, status, supervision and security are the four responses, that are all hygiene factors. Hence, from above discussion, we can infer that option (c) is correct. 75.

Answer : (b) Reason : According to Hersey and Blanchard, a high task-low relationship situation would require the directing leadership style.

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76.

Answer : (a) Reason : The following are advantages of a geographical information system: • Maps can be prepared economically and updated with ease. • Maps are automatically supplemented with statistical analysis. • Maps can be customized to suit specific needs of users • Maps use a 3D format Hence, option (a) is the answer. Answer : (e) Reason : Inventory plan is an output in the distribution logistics model. The remaining options are inputs.

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78.

Answer : (d) Reason : Executive support systems have outputs in the form of projections and responses to queries.

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79.

Answer : (d) Reason : The following are advantages of preventive control: I. Greater accuracy at work is achieved. II. Corrective actions improve the processes and make them more effective. Statement (III) is not an advantage since preventive control encourages managers implementing controls through self exercised control, which helps in taking corrective actions voluntarily whenever deficiencies are found.

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80.

Answer : (c) Reason : Critical limits involves identifying the maximum or minimum level at which the food safety hazard has to be controlled to reduce it to an acceptable level.

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81.

Answer : (b) Reason : Vinod Sharma is said to be using Vroom and Yetton's Normative Decision Model.

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82.

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.

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83.

Answer : (a)

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77.

22

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Reason : In human resource planning, turnover rate is not an element in ‘resource demand forecasting.

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 multiple appraisal. 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.

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86.

Answer : (d) Reason : Self-confidence is an employee contingency factor identified by the path-goal theory, while all the other options given are environmental contingency variables.

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87.

Answer : (c) Reason : ‘An autocratic leader will always have low performance from employees’, is not a true statement about autocratic leadership. An autocratic leader may have high performance too from employees.

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88.

Answer : (a) Reason : Steering controls are used during the performance of activity. So option (a) is the answer.

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89.

Answer : (c) Reason : The following statements about revenue centers are true: I. Sales and marketing departments are examples of revenue centers. III. A revenue center cannot be responsible for changes in profit levels. Statement (II) is not true because in revenue centers, outputs are measured in monetary terms but are not directly compared with input costs. Hence option (c) is the answer.

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90.

Answer : (a) Reason : Structured interviews yield more valid data than unstructured interviews, therefore, option (a) is the answer.

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91.

Answer : (b) Reason : Linear programming is a technique for selecting an optimum combination of factors from a series of interrelated alternatives, each subject to limitations, to

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84.

85.

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achieve a desired goal. 92.

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.

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93.

Answer : (b) Reason : The intuition stage of the creative process links the unconscious state of mind with the conscious state.

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94.

Answer : (a) Reason : Preventive control is based on the idea that most of the negative deviations from standards can be overcome by applying the fundamentals of management.

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95.

Answer : (d) Reason : The characteristics of the planning process usually adopted in Japanese Management style are: (1) Long-term orientation, (2) Collective decision-making, (3) Decisions flowing bottom to top and back, (4) Slow decision-making. Hence, (d) is the correct answer.

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96.

Answer : (b) Reason : Standard cost centers are also referred to as engineered expense centers.

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97.

Answer : (d) Reason : The following are characteristics of adaptable organizations • Employees are given more freedom in decision-making • Management sets broad goals and objectives • Organizational learning is ongoing • Accountability revolves around projects and not positions Hence, option (d) is the answer. Answer : (b) Reason : Organization should shift ownership of inventory to suppliers as a measure of inventory control. Hence option (b) is the answer.

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Answer : (a) Reason : Luck plays an important role in the performance of an individual is a weakness of appraisal against verifiable objectives.

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100. Answer : (c) Reason : In Vroom’s expectancy theory, instrumentality refers to the probability that successful performance will lead to certain outcomes.

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98.

99.

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