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Question Paper Introduction to Management – II (MB1A2): October 2008
Answer all 0 questions.
Each question carries one mark.
1. Human resource management is the management of various activities that are designed to enhance the effectiveness of an organization’s manpower in achieving organizational goals. Which of the following is not a part of the human resource management function in most organizations? (a) (b) (c) (d) (e)
Kanban Performance appraisal Training Human resource planning Compensation.
2. External recruitment involves attracting people from outside the organization to apply for jobs. Which of the following is a disadvantage of external recruitment? (a) There will be new ideas entering organization (b) Candidates may have broader experience (c) Candidates may be familiar with competitors (d) Potential internal candidates may be resentful (e) Candidates may have new specialties. In the selection process, which of the following involves furnishing information of persons who can assure the recruiting firm that the information given by the applicant is reliable? (a) Preliminary screening (b) Application blank (c) Reference check (d) Comprehensive interview (e) Personal guarantee. 4. Which of the following is a written statement of what a jobholder does, how a job is done, and why it’s done? (a) Job specification (b) Job analysis (c) Job enlargement (d) Job rotation (e) Job description. 5. Which of the following is defined as a planned effort to improve the performance of an employee in his area of work? (a) (b) (c) (d) (e)
Performance Appraisal Training Compensation Staffing Human resource planning.
6. 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) (b) (c) (d) (e)
Succession Planning Replacement Planning Resources Planning Requirements Planning Operational Planning.
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7. External recruitment involves attracting people from outside the organization to apply for jobs. There are a variety of sources from which external job candidates can be obtained. Which of the following is not an external source to obtain the job candidates for the vacant positions? (a) Advertising (b) Educational institutions (c) Employment agencies (d) Promotions (e) Voluntary applicants. 8. In the selection process, candidates are usually required to complete a formal application form specially designed to obtain the required information about the candidate. This form is referred to as the (a) Interview (b) Walk-in (c) Application blank (d) Selection test (e) Performance appraisal. 9. Various selection devices are used to choose candidates who best meet the qualifications and aptitude requirements of a job. A formal interview would be the most appropriate selection device for which of the following positions? (a) Gate keeper (b) Security guard (c) Watchman (d) Bank manager (e) Office boy. Training is essential for new recruits as well as for existing personnel to improve their capabilities and skills. If a training program emphasizes learning to be a better listener or learning to interact effectively with coworkers, it is attempting to teach (a) (b) (c) (d) (e)
Interpersonal skills Technical skills Problem-solving skills Analytical skills Observational skills.
11. The effectiveness of a formal performance appraisal system depends on the quality of control techniques used. Which of the following is/are control technique(s) used in a formal appraisal system? I. Standards. II. Information. III. Corrective actions. (a) Only (I) above (b) Only (II) above (c) Only (III) above (d) Both (I) and (III) above (e) All (I), (II) and (III) above. 12. A career strategy should be designed so as to help individuals overcome weaknesses and utilize strengths so as to take advantage of career opportunities. Which of the following steps 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.
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13. Performance appraisal is a continuous process that focuses on organization’s objectives, task accomplishment, and personal development. Which of the following is not an objective of a performance appraisal? (a) (b) (c) (d) (e)
Identification of potential Compensation administration Work-force planning Validation of selection procedures Enhancing superior-subordinate interpersonal relationship.
14. As the future cannot be predicted with absolute accuracy, career plans are developed in an environment of uncertainty. In this uncertainty, what should an individual do to formulate a career strategy? (a) Develop contingency plans (b) Develop long-range personal and professional goals (c) Analyze environment threats and opportunities (d) Develop short-range career objectives and action plans (e) Monitor progress. 15. Which of the following factor(s) can be measured or evaluated by using Graphic Rating Scales? I. Quality of work. II. Attendance. III. Dependability. (a) (b) (c) (d) (e)
Only (I) above Only (II) above Only (III) above Both (I) and (III) above All (I), (II) and (III) above.
16. Various appraisal techniques are used in organizations. 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 Behaviorally anchored rating scale.
17. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of the following would not be a useful suggestion for providing effective feedback in an appraisal review? (a) (b) (c) (d) (e)
Make the feedback goal-oriented Ensure understanding Keep the feedback impersonal Direct negative feedback toward behavior that is uncontrollable Focus on specific behaviors.
18. If a manager advises one of his subordinates on what the expectations of the management are from the employee on day-to-day performance basis, it would be an example of (a) Halo effect (b) Hawthorne effect (c) Setting standards (d) Controlling (e) Assessment. 19. A widely used approach to managerial appraisal is to evaluate managers’ performance in setting and accomplishing verifiable objectives. Which of the following is not a strength of appraisal against verifiable objectives? (a) Luck plays an important role in the performance of an individual (b) It is operational in nature (c) There is credibility because the appraisal is objective in nature (d) It is carried out with mutual cooperation from superiors and subordinates (e) It does not form a separate component from the job.
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20. Which of the following is/are advantage(s) of Behaviorally Anchored Rating Scales? I. They focus on job-specific behavior. II. The evaluation program is jointly developed by manager and subordinates. III. Anchors are based on the experience of the subordinates. (a) (b) (c) (d) (e)
Only (II) above Only (III) above Both (I) and (II) above Both (I) and (III) above All (I), (II) and (III) above.
21. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes. In which of the following conflict resolution techniques do the two parties involved in the conflict identify and correct the source of their conflict? (a) (b) (c) (d) (e)
Problem solving Forcing Smoothing Compromise Avoidance.
22. Which of the following strategies of overcoming resistance to change involves selectively providing information about a change so that it appears more attractive or necessary to potential resisters? (a) Cooptation (b) Manipulation (c) Coercion (d) Negotiation (e) Participation. 23. Organizational Development (OD) is a systematic, integrated and planned approach to improve enterprise effectiveness. Which of the following are change strategies used in OD that are developed and initiated with the help of a change agent? (a) (b) (c) (d) (e)
Interventions Plans Policies Innovations Programs.
24. Sources of resistance to change 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)
Habit Structural inertia Security Fear of the unknown Selective information processing.
25. The Organizational Development (OD) process consists of three major steps: diagnosis, intervention and evaluation. Which of the following intervention techniques is concerned with the interpersonal relations and dynamics operating in work groups? (a) (b) (c) (d) (e)
Technostructural activity Team building Skill development Process consultation Survey feedback.
26. On-the-job training is one of the approaches to manager development. Which of the following is an on-the- job training technique? (a) (b) (c) (d) (e)
Organizational socialization Creation of “assistant-to” positions Performance appraisal Job enlargement Job analysis. 4
27. A team consists of a set of people working together towards a common purpose. A work team comprising experts from various specialized areas can be referred to as a/an (a) (b) (c) (d) (e)
Functional team Cross-functional team Informal group Self-managed team Self-directed team.
28. Which of the following is the ability to develop new ideas and is a function of knowledge, imagination, and evaluation? (a) Motivation (b) Entrepreneurship (c) Creativity (d) Management (e) Change. In order to explain the nature of people, McGregor identified two sets of assumptions known as Theory X assumptions and Theory Y assumptions. Which of the following assumptions would a Theory Y manager consider to be true? (a) Employees dislike work (b) Employees must be coerced, controlled, or threatened to make them work (c) Employees view work as being as natural as rest or play (d) Employees will shirk responsibilities whenever possible (e) Employees prefer to be directed. Which of the following is/are not assumption(s) on which Edgar H. Schein based his study of human behavior? I. II. III. IV.
Rational- economic assumptions. Social assumptions. Self-actualization assumptions. Physiological assumptions.
(a) Only (I) above (b) Only (IV) above (c) Both (II) and (IV) above (d) Both (III) and (IV) above (e) (I), (II) and (III) above. 31. The managerial creativity process involves four overlapping phases/stages. Which stage of the creativity process links the unconscious state of mind with the conscious state? (a) Unconscious scanning (b) Intuition (c) Insight (d) Logical formulation (e) Decision. Lyman Porter and his colleagues classified the underlying nature of people into six models. Which of the following views proposes that people are unpredictable, subjective, relative and unique in nature? (a) (b) (c) (d) (e)
Rational Emotional Behavioristic Self-actualizing Phenomenological.
33. Thomas has needs that are highly relevant to him. These needs include the need for sense of belonging, friendship and supervisory support. Thomas’ needs reflect which needs in Maslow’s hierarchy of needs? (a) (b) (c) (d) (e)
Physiological needs Social needs Self-actualization needs Safety needs Esteem needs.
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34. Which of the following needs are at the top of Maslow’s hierarchy of needs? (a) Physiological needs (b) Social needs (c) Security needs (d) Esteem needs (e) Self-actualization needs.
35. The process of incorporating motivators into the job situation can be referred to as
(a) Job analysis (b) Leadership (c) Job satisfaction (d) Job enrichment (e) Control. The equity theory refers to the subjective judgment of an individual about the fairness of his reward, relative to the inputs, in comparison with the rewards of others. If employees perceive their inputsoutcomes ratio to be equal to that of relevant others whom they compare themselves to, then (a) (b) (c) (d) (e)
A state of equity exists A state of imbalance exists A state of dissatisfaction is present A state of disequilibrium is present The employees immediately quit their jobs.
37. In Vroom’s expectancy theory of motivation, which variable refers to the probability that successful performance will lead to certain outcomes? (a) (b) (c) (d) (e)
Valence Expectancy Instrumentality Motivation Drive.
38. Existence need in ERG theory corresponds to which of the following needs in Maslow’s need hierarchy theory? (a) (b) (c) (d) (e)
Self-actualization Esteem Social Safety Physiological.
39. Herzberg’s two-factor theory focuses on motivators and hygiene factors at the workplace. Which of the following could be a hygiene factor as per this theory? (a) (b) (c) (d) (e)
Salary Responsibility Achievement Growth Recognition.
40. There are various elements in the motivation process proposed by Fred Luthans. Which of the following elements implies a felt deprivation of physiological or psychological well-being? (a) Drive (b) Want (c) Need (d) Incentive (e) Goal. 41. Which of the following is the correct description of the components of Vroom’s expectancy theory? (a) Motivation = Valence * Expectancy * Instrumentality (b) Valence = Motivation * Expectancy * Instrumentality (c) Expectancy = Motivation * Valence * Instrumentality (d) Instrumentality = Motivation * Expectancy * Valence (e) Motivation * Valence = Expectancy * Instrumentality. 6
42. Which of the following can be cited to be 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.
43. The path-goal theory, proposed by Robert House, suggests some leadership styles that can be used in order to affect subordinates’ perceptions of paths and goals. Which of the following is not one of the leadership styles suggested by path-goal theory? (a) (b) (c) (d) (e)
Instrumental leadership Benevolent-authoritative leadership Supportive leadership Participative leadership Achievement-oriented leadership.
44. Blake and Mouton’s Managerial Grid is an approach to defining leadership styles based on a manager’s concern for people and concern for production. According to the Managerial Grid, in which of the following management styles, is there high concern for production and low concern for people? (a) (b) (c) (d) (e)
Impoverished management Country club management Authority-obedience management Organization man management Team management.
45. Kurt Lewin, a researcher at the University of Iowa, and his colleagues made some of the earliest attempts to scientifically determine effective leader behaviors and proposed some leadership styles. Which leadership style did Lewin find to be ineffective on every performance criterion? (a) (b) (c) (d) (e)
Democratic Laissez-faire Autocratic Consultative Participative.
46. 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)
Employee-centered Participative Laizzez-faire Job-centered Autocratic.
47. To help managers decide which leadership style to choose, particularly when decisions had to be made, management scholars Robert Tannenbaum and Warren H. Schmidt devised a continuum of leader behaviors. Which of the following are approaches at the two ends of this continuum? (a) (b) (c) (d) (e)
Employee centered and job centered Initiating structure and consideration Position power and task structure Task and relationship Boss-centered and subordinate-centered.
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48. Fred E. Fiedler provided a starting point for situational leadership research. He identified critical dimensions of the leadership situation that would help in deciding the most effective style of leadership. Which of these dimensions refers to the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases? (a) (b) (c) (d) (e)
Leader-member relations Position power Task structure Concern for people Initiating structure.
49. According to the University of Michigan studies, a leader who focuses on building effective work groups in order to attain higher group productivity and higher job satisfaction is (a) (b) (c) (d) (e)
Employee-centered Initiating structure centered Considerate centered Production-centered Boss centered.
50. Which of the following aspect(s) can be attributed to a transformational leader? I. II. III. IV.
Charismatic leadership. Inspirational leadership. Intellectual stimulation. Divine grace.
(a) Only (IV) above (b) Both (I) and (IV) above (c) Both (II) and (III) above (d) (I), (II) and (III) above (e) All (I), (II), (III) and (IV) above. 51. An issue involving leadership is the argument that managers and leaders are not necessarily one and the same. As per the argument, a major difference between management and leadership is that leadership includes (a) Bringing together resources to achieve organizational goals (b) Designing organizational structures (c) Bringing about order and consistency (d) The ability to inspire people (e) Drawing up formal plans. John Denver is a manager who constantly shows concerns for the needs of his employees and is friendly and approachable. As per House’s path-goal theory, which type of leadership style is John Denver demonstrating? (a) (b) (c) (d) (e)
Instrumental Achievement-oriented Participative Supportive Democratic.
53. Which of the following do 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 Instrumentality Motivation Valence.
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54. As per the managerial grid proposed by Blake and Mouton, ‘organization-man management’ is also referred to as (a) Middle-of-the-road management (b) Team management (c) Authority-compliance management (d) Impoverished management (e) Country club management. 55. Andrew Carnegie said, “As I grow older, I pay less attention to what men say. I just watch what they do”. He was suggesting the importance of (a) (b) (c) (d) (e)
Face-to-face verbal communication Non-verbal communication Crosswise communication Upward communication Downward communication.
56. In an organization, communication flows in different directions. When instructions are sent from the Head Office to branches, the communication is (a) (b) (c) (d) (e)
Downward Upward Informal Horizontal Diagonal.
57. When a junior employee responds to his manager after interpreting the message received from the manager and simultaneously ensures that he understands the message correctly, which element of the communication process is in play? (a) (b) (c) (d) (e)
Encoding Feedback Decoding Noise Transmission.
58. Communication is the means through which organizational participants are linked. Communication can be best described as the process of (a) (b) (c) (d) (e)
Disclosing facts Sharing information Sending messages Receiving feedback Conversation.
59. Which of the following is not the gateway to effective communication? (a) (b) (c) (d) (e)
Effective listening Proper feedback Understanding non-verbal cues Lack of trust Non-directive counseling.
60. All of the following are the means through which oral downward communication takes place except (a) (b) (c) (d) (e)
Instructions Telephone Grapevine Meetings Memorandum.
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61. Organizations implement control in a number of different ways and at various levels. Which of the following is not one of the types of management control? (a) (b) (c) (d) (e)
Feedback control Feedforward control Concurrent control Exception control Cybernetic control.
62. There can be various types of controls in an organization. Which of the following is a self-regulating control system that once put into operation, can automatically monitor the situation? (a) (b) (c) (d) (e)
Strategic control system Tactical control system Operational control system Cybernetic control system Non-cybernetic control system.
63. Management by walking around (MBWA) may be used as a control technique by managers to monitor the performance of their employees while they are performing their tasks. MBWA is primarily based on (a) (b) (c) (d) (e)
Statistical information Oral reports Written reports Computer databases Personal observation.
64. Lower level managers concerned with schedules, budgets, rules and specific individual output requirements make use of which of the following levels of control? (a) (b) (c) (d) (e)
Strategic Tactical Operational Feedforward Feedback.
65. All managers need adequate and effective systems of control to help them make sure that events conform to plans. Which of the following is not the characteristic of effective control systems? (a) (b) (c) (d) (e)
Control systems should be understandable Control systems should be cost-effective Control systems should be rigid Control systems should provide accurate information Control systems should identify only major exceptions.
66. Which of the following control systems use two or more control processes and involve several strategic control points? (a) Multiple (b) Cybernetic (c) Noncybernetic (d) Steering (e) Preventive. 67. Which of the following is/are financial statement(s) used by managers, creditors, investment analysts, shareholders, unions and other stakeholders to evaluate the performance of the organization? I. Balance sheet. II. Income statement. III. Ratio analysis. (a) (b) (c) (d) (e)
Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.
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68. Which of the following refers to an organization’s ability to convert its assets into cash to meet current financial needs? (a) (b) (c) (d) (e)
Liquidity Equity Debt Profitability Net worth.
69. Which of the following control systems helps mangers to match actual and the planned revenues and costs of various organizational activities? (a) (b) (c) (d) (e)
Financial control Budgetary control Quality control Inventory control Systems control.
70. 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 Current.
71. Which of the following statements is/are true about revenue centers? I. Sales and marketing departments are examples of revenue centers. II. In revenue centers, outputs are measured in monetary terms and directly compared with input costs. III. A revenue center cannot be responsible for changes in profit levels. (a) Only (II) above (b) Only (III) above (c) Both (I) and (II) above (d) Both (I) and (III) above (e) All (I), (II) and (III) above. 72. Which of the following is not of one of the major control systems used by an organization? (a) Financial control system (b) Budgetary control system (c) Inventory control system (d) Quality control system (e) Employee control system. 73. Which of the following is an index that measures one variable relative to another? (a) (b) (c) (d) (e)
Balance sheet Ratio Asset Budget Liability.
74. Which of the following ratios measures the effectiveness of an organization in managing its assets? (a) (b) (c) (d) (e)
Activity ratio Current ratio Debt ratio Net profit margin ratio Return on investment ratio.
75. Which of the following is not a limitation of operations research? (a) (b) (c) (d) (e)
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. 11
76. PERT and Critical Path method, which are logical extensions of Gantt charts used to improve productivity, are examples of (a) (b) (c) (d) (e)
Value engineering Time-event networks Work simplification Quality circles Linear programming.
77. An organization incurs several costs in maintaining inventory. The cost of not having the inventory of the product requested by the customer is called as (a) (b) (c) (d) (e)
Carrying cost Item cost Ordering cost Stock-out cost Superfluous cost.
78. Simulation models are used in which of the following steps of the operations research methodology? (a) (b) (c) (d) (e)
Formulating the problem Constructing a mathematical model Testing the method Providing controls Putting the solution into effect.
79. Which of the following is the process or procedure developed to transform a set of input elements like men, materials, money (capital), information and energy into a specified set of output elements in the form of finished products or services? (a) (b) (c) (d) (e)
Knowledge management Production Management audit Transaction processing Inventory control.
80. The labor productivity index is also referred to as (a) (b) (c) (d) (e)
Output per labor unit ratio Output per work-hour ratio Output per work-day ratio Input per work-hour ratio Input per work-day ratio.
81. 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)
Acceptable standards shared by a group’s members A stage in the group development A temporary group to establish 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.
82. 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.
83. Which of the following is not an output in the ‘distribution logistics model’? (a) (b) (c) (d) (e)
Warehousing lead-times Inventory plan Production schedule Materials procurement schedule Raw materials warehousing schedule. 12
84. In human resource planning, which of the following is not an element in ‘resource demand forecasting’?
(a) Turnover rate (b) Strategic plans (c) Demographics (d) Production schedules (e) Relocations. Non-directive counseling is one of the means to bring about effective communication. In non-directive counseling, a manager should I. Raise appropriate questions. II. Create an atmosphere of privacy to help the employee communicate freely. III. Encourage the employee to find solutions through examples set by others. (a) (b) (c) (d) (e)
Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.
86. Strategic control involves monitoring critical environmental factors to ensure that strategic plans are implemented as intended, assessing the impact of strategic plans and adjusting such plans when necessary. Strategic control is mainly the function of which level of managers? (a) (b) (c) (d) (e)
Top-level Middle-level Lower-level Foremen Trainee.
87. Which of the following is the process of formulating future plans for the organization for a given period of time (usually a year) and estimating the amount of resources required to carry out the planned activities? (a) Profitability (b) Budgeting (c) Asset management (d) Debt management (e) Responsibility center. 88. Which of the following inventory control approaches stipulates that materials should arrive just as they are needed in the production process? (a) Distribution logistics (b) Linear programming (c) Total quality programming (d) Just-in-time (e) Economic order quantity. 89. 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 is prepared or presented to users often enough to be up-to-date is known as (a) Information accuracy (b) Information timeliness (c) Information relevance (d) Information completeness (e) Information frequency. 90. 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)
Top management Middle management First-line management Lower-level management The information would be valuable to all levels of management.
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91. 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)
Transaction processing system Decision support system Office automation system Executive support system Line support system.
92. Information that originates outside the organization is known as external information. Which of the following is an example of external information in an organization? (a) (b) (c) (d) (e)
Daily receipts and expenditures Salesperson Quotas Descriptions of customer satisfaction with products and services Quantity of an item in hand or in inventory Cost and selling price of the company’s item.
93. In an information system, which of the following refers to the physical equipment that is used to input, store and retrieve data? (a) (b) (c) (d) (e)
Hardware Software Data People Procedures.
94. Which of the following refers to any event or activity that involves the interaction of the organization with external agents? (a) (b) (c) (d) (e)
Transaction Information Data processing Software Communication.
95. If an employee of a multinational company believes that since he is a citizen of the host country, he would be best suited to manage the company, then his orientation toward international business can be expressed as (a) (b) (c) (d) (e)
Ethnocentric Polycentric Regiocentric Gendercentric Geocentric.
96. According to the American style of management, which of the following are the characteristics of the planning function? I. II. III. IV. (a) (b) (c) (d) (e)
Short-term orientation. Collective decision-making. Decisions initiated at the top, flowing down. Slow decision-making. Both (I) and (II) above Both (I) and (III) above Both (II) and (IV) above (I), (II) and (III) above (II), (III) and (IV) above.
97. According to which of the following Japanese management practices are tasks not assigned to an individual, instead they are assigned to a group? (a) (b) (c) (d) (e)
Lifetime employment Seniority system Continuous training Emphasis on group work Decision making. 14
98. In which of the following orientations toward international business, does a firm analyze the needs of customers worldwide and then adopts standardized practices for all the markets it serves? (a) (b) (c) (d) (e)
Ethnocentric Polycentric Geocentric Regiocentric Unicentric.
99. According to William Ouchi, organizations that exhibit a style of management that combines traits of Japanese and American companies are called (a) (b) (c) (d) (e)
Theory X organizations Theory Y organizations Theory Z organizations Modern organizations Supportive organizations.
100 In Japanese management, which of the following refers to decision-making by consensus? . (a) Ringi system (b) Delphi (c) Kacho (d) Wa (e) Just-in-time.
END OF QUESTION PAPER
Suggested Answers Introduction to Management – II (MB1A2): October 2008 Answer
Reason
1.
A
Kanban is a subsystem of Just-in-Time (JIT) approach. It not a part of the human resource management function in most organizations. Hence, option (a) is correct. Options (b), (c), (d) and (e) are all parts of the human resource management function in most organizations.
< TOP
2.
D
External recruitment will lead to job dissatisfaction among the potential internal candidates of the organization.
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3.
C
Reference check involves furnishing information of persons who can assure the recruiting firm that the information given by the applicant is reliable.
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4.
E
A job description is a written statement of what a jobholder does, how it's done, and why it's done. Hence, option (e) is correct.
< TOP
5.
B
Training is defined as a planned effort to improve the performance of the employee in his area of work.
< TOP
6.
A
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.
< TOP
7.
D
Promotions are not an external source to obtain the job candidate for the vacant position. Options (a), (b), (c) and (e) are external sources of recruitment.
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15
8.
C
The formal form candidates are usually required to complete is referred to as the application blank.
< TOP
9.
D
The interview, as a selection device, is most useful for selecting persons to managerial jobs, such as the job of a Bank Manager. Hence, option (d) is correct.
< TOP
10.
A
If a training event includes learning to be a better listener or learning to interact effectively with coworkers, it is attempting to teach Interpersonal skills. Hence, option (a) is correct.
< TOP
11.
E
The following are control techniques used in a formal appraisal system:
< TOP
Standards.
Information.
12.
B
Corrective action. The steps in formulating a career strategy are as follows:
< TOP
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. Enhancing superior-subordinate interpersonal relationship is not an objective of a performance appraisal.
< TOP
13.
E
14.
A
As the future cannot be predicted with absolute accuracy, career plans are developed in an environment of uncertainty. Hence, individuals should develop contingency plans based on alternate assumptions.
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15.
E
Graphic rating scales are performance appraisal forms listing a number of factors, including general behaviors and characteristics (such as attendance, quality of work, appearance, dependability, quantity of work and relationship with people), on which employee is rated by the supervisor.
< TOP
16.
B
A performance appraisal technique that makes use of feedback from supervisors, subordinates and co-workers, is known as 360-degree appraisal. Hence, option (b) is correct.
< TOP
17.
D
Directing negative feedback toward behavior that is uncontrollable, is not a useful suggestion for providing effective feedback in an appraisal review, as the situation might become more uncontrollable. Hence, option (d) is not a useful suggestion for providing effective feedback in an appraisal review. Options (a), (b), (c) and (e) are all useful suggestions for providing effective feedback in an appraisal review.
< TOP
16
18.
C
Manager assesses performance of an employee among a group and advises the employee the specific expectations of management on day to day basis. It is setting standards for that employee. Option(c) is correct answer.
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19.
A
Luck plays an important role in the performance of an individual is a weakness of appraisal against verifiable objectives.
< TOP
20.
C
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 (c) is correct answer.
< TOP
21.
A
In problem solving technique, the two parties involved in the conflict identify and correct the source of their conflict.
< TOP
22.
B
Manipulation strategy of overcoming resistance to change, usually involves selectively providing information about a change so that it appears more attractive or necessary to potential resisters. Hence, option (b) is correct.
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23.
A
Organizational development relies on the use of interventions, which are change strategies developed and initiated with the help of a change agent. Hence, option (a) is correct.
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24.
B
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, option (b) is correct. Options (a), (c), (d) and (e) are all individual sources of resistance to change.
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25.
D
Process Consultation intervention technique is concerned with the interpersonal relations and dynamics operating in work groups. Hence, option (d) is correct.
< TOP
26.
B
Creation of “assistant-to” positions is an on-the-job training.
< TOP
27.
B
A work team comprised of experts from various specialities is most accurately referred to as a cross-functional team. Hence, option (b) is correct.
< TOP
28.
C
Creativity is the ability to develop new ideas and is a function of knowledge, imagination, and evaluation.
< TOP
29.
C
A theory Y manager assumes that employees view work as being as natural as rest or play; they will exercise self-direction if they are committed to the objectives; and they can learn to accept and even seek responsibility.
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30.
B
Physiological assumptions are not assumptions on which Edgar H. Schein based his study of human behavior.
< TOP
31.
B
The intuition stage of the creative process links the unconscious state of mind with the conscious state.
< TOP
32.
E
The phenomenological view proposes that people are unpredictable, subjective, relative and unique in nature.
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33.
B
Thomas has needs that are highly relevant to him. These needs include a sense of belonging, friendships, and supervisory support. Thomas's needs reflect social needs in Maslow's hierarchy of needs theory.
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34.
E
Self-actualization needs are at the top of Maslow’s hierarchy of needs.
< TOP
17
35.
D
The process of incorporating motivators into the job situation can be referred to as job enrichment.
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36.
A
If employees perceive their inputs-outcomes ratio to be equal to the relevant others that they compare themselves to, then a state of equity exists.
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37.
C
In Vroom’s expectancy theory, instrumentality refers to the probability that successful performance will lead to certain outcomes.
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38.
E
Existence need in ERG theory corresponds to physiological needs in Maslow’s need hierarchy theory.
< TOP
39.
A
Salary, working conditions, and security are examples of hygiene factors in Herzberg’s theory.
< TOP
40.
C
Need implies a felt deprivation of physiological or psychological well-being.
< TOP
41.
A
According to Vroom’s expectancy theory, motivation = valence * expectancy * instrumentality.
< TOP
42.
E
Quality of work life is a broad approach to job enrichment.
< TOP
43.
B
Path-goal theory suggests four types of leadership: instrumental, supportive, participative, and achievement-oriented leadership.
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44.
C
In Authority-obedience management style, there is high concern for production but low concern for people. This management style is task-oriented and stresses the quality of the decision over the wishes of subordinates. So, (c) is the correct answer.
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45.
B
According to Kurt Lewin, Laissez-faire leadership style is ineffective on every performance criterion.
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46.
D
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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47.
E
Boss-centered and subordinate-centered are the approaches at the two ends of this continuum.
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48.
B
Fiedler's position power is referred to the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases.
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49.
A
According to the University of Michigan studies, leaders who were employeeoriented were associated with higher group productivity and higher job satisfaction.
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50.
E
The following aspects can be attributed to a transformational leader
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Charismatic leadership.
Inspirational leadership.
Intellectual stimulation.
Divine grace.
51.
D
A major difference between management and leadership is that leadership includes the ability to inspire people. Hence, option (d) is correct.
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52.
D
A manager who constantly shows concerns for the needs of his employees is a supportive leader, according to House.
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53.
B
Hersey and Blanchard define “readiness” as the extent to which followers have the ability and the willingness to accomplish a specific task.
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18
54.
A
Organization-man management.
Middle-of-the-road
< TOP
55.
B
Non-verbal communication includes body posture, eye contact, distance from the receiver, voice inflection, rate of speech, gesture, silence etc. Hence, option (b) is correct.
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56.
A
Most decisions in an organization flow through the organization structure level by level. i.e., Head Office to regional office, regional office to branches. The given example is that of downward communication. So, (a) is correct answer.
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57.
B
A message that is generated by the receiver in response to the sender’s original message is known as feedback. So, (b) is correct answer.
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58.
B
Communication is best described as the process of sharing information.
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59.
D
The following are the gateways to effective communication:
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management
is
Interpersonal trust
Effective listening
Proper feedback
Understanding non-verbal cues
Non-directive counseling.
also
referred
to
as
60.
E
Oral downward communication may take place by means of instructions, meetings, telephone, loudspeakers and even grapevine. Memorandum is the means for written downward communication.
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61.
D
There is no such management control as ‘exception control’.
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62.
D
Cybernetic control system is a self-regulating control system that once put into operation, can automatically monitor the situation. All other control systems may rely on human discretion. So, (d) is the correct answer.
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63.
E
Management by walking around (MBWA) is based primarily on personal observation. Hence, option (e) is correct.
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64.
C
Lower level managers concerned with schedules, budgets, rules and specific individual output requirements makes use of operational control.
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65.
C
Control systems should be rigid is not the characteristic of effective control systems. In fact, control systems should be flexible enough to accommodate change.
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66.
A
Multiple control systems use two or more control processes and involve several strategic control points.
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67.
D
The following are financial statements used by managers, creditors, investment analysts, shareholders, unions and other stakeholders to evaluate the performance of the organization:
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Balance sheet.
Income statement.
68.
A
69.
B
Ratio analysis is a technique to exercise financial control and not a financial statement. Liquidity refers to an organization’s ability to convert its assets into cash to meet current financial needs. The budgetary control system helps a manager to match the actual and the planned revenues and costs of various organizational activities. 19
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< TOP
70.
B
Leverage or debt management ratios indicate the company’s ability to pay long-term debts.
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71.
D
The following statements about revenue centers are true:
< TOP
Sales and marketing departments are examples of revenue centers.
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 (d) is the answer. 72.
E
Employee control system is not a major control system used in organizations.
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73.
B
Ratio is an index that measures one variable relative to another.
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74.
A
Activity ratios or asset management ratios measure the effectiveness of an organization in managing its assets.
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75.
C
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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76.
B
PERT and Critical Path methods are examples of time-event networks.
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77.
D
The cost of not having the inventory or stock of the product requested by the customer is called stock-out cost.
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78.
B
Simulation models used in constructing mathematical models.
< TOP
79.
B
Production is the process or procedure developed to transform a set of input elements like men, materials, money (capital), information and energy into a specified set of output elements in the form of finished products or services.
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80.
B
The labor productivity index is also referred to as output per work-hour ratio.
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81.
D
The term ‘quality circle’ refers to a work group that meets regularly to discuss, investigate and correct quality problems. Hence, option (d) is correct.
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82.
C
The Program Evaluation and Review Technique (PERT) is especially useful in scheduling Projects. Hence, option (c) is correct.
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83.
A
Warehousing lead-times is an input not an output in the distribution logistics model.
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84.
A
In human resource planning, turnover rate is not an element in ‘resource demand forecasting.
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20
85.
D
In non-directive counseling, a manager should
< TOP
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. 86.
A
Strategic control is mainly the function of top-level managers.
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87.
B
Budgeting is the process of formulating future plans for the organization for a given period of time (usually a year) and estimating the amount of resources required to carry out the planned activities.
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88.
D
Just-in time inventory control approach stipulates that materials should arrive just as they are needed in the production process.
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89.
E
The information attribute which is prepared or presented to users often enough to be up-to-date is known as information frequency.
< TOP >
90.
A
The level of management for which information about environmental trends would be most appropriate is top management. Hence, option (a) is correct.
< TOP >
91.
C
An office automation system aims at facilitating communication and increasing the efficiency and productivity of managers and office workers through document and message processing.
< TOP >
92.
C
Descriptions of customer satisfaction with products and services are examples of external information in an organization. Hence, option (c) is correct. Options (a), (b), (d) and (e) are all examples of internal information in an organization.
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93.
A
In an information system, hardware refers to the physical equipment that is used to input, store and retrieve data.
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94.
A
A transaction refers to any event or activity that involves the interaction of the organization with external.
< TOP >
95.
B
Polycentric orientation is based on the notion that it is best to give foreign subsidiaries, staffed by local nationals, a great deal of managerial freedom. Hence, option (b) is correct.
< TOP >
96.
B
Statements (I) and (III) are the characteristics of the American planning function. Statement (II) and (IV) are the characteristics of the Japanese planning function.
< TOP >
97.
D
In most Japanese organizations, Emphasis on group work is a task is not assigned to an individual, instead several tasks are assigned to a group, which consists of a small number of people.
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98.
C
In the geocentric orientation toward international business, a firm analyzes the needs of customers worldwide and then adopts standardized practices for all the markets it serves.
< TOP >
99.
C
Organizations that exhibit a style of management that combines traits of Japanese and American companies are called theory Z organizations.
< TOP >
100.
A
In Japanese management, ringi refers to decision-making by consensus.
< TOP >
21
< TOP OF THE DOCUMENT >
22
Answer all 0 questions.
Each question carries one mark.
1. Human resource management is the management of various activities that are designed to enhance the
Kanban Performance appraisal Training Human resource planning Compensation.
2. External recruitment involves attracting people from outside the organization to apply for jobs. Which of
Performance Appraisal Training Compensation Staffing Human resource planning.
6. There are various means of assessing internal labor supply. Which of the following provides the
Succession Planning Replacement Planning Resources Planning Requirements Planning Operational Planning.
1
7. External recruitment involves attracting people from outside the organization to apply for jobs. There are a
Interpersonal skills Technical skills Problem-solving skills Analytical skills Observational skills.
11. The effectiveness of a formal performance appraisal system depends on the quality of control techniques
Development of strategic career alternatives Analysis of personal strengths and weaknesses Consistency testing and strategic choices Implementation of the career plan Monitoring progress.
2
13. Performance appraisal is a continuous process that focuses on organization’s objectives, task
Identification of potential Compensation administration Work-force planning Validation of selection procedures Enhancing superior-subordinate interpersonal relationship.
14. As the future cannot be predicted with absolute accuracy, career plans are developed in an environment of
Only (I) above Only (II) above Only (III) above Both (I) and (III) above All (I), (II) and (III) above.
16. Various appraisal techniques are used in organizations. A performance appraisal technique that makes use
Results-oriented appraisal 360-degree appraisal Informal appraisal Graphic rating scale Behaviorally anchored rating scale.
17. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of the
Make the feedback goal-oriented Ensure understanding Keep the feedback impersonal Direct negative feedback toward behavior that is uncontrollable Focus on specific behaviors.
18. If a manager advises one of his subordinates on what the expectations of the management are from the
3
20. Which of the following is/are advantage(s) of Behaviorally Anchored Rating Scales? I. They focus on job-specific behavior. II. The evaluation program is jointly developed by manager and subordinates. III. Anchors are based on the experience of the subordinates. (a) (b) (c) (d) (e)
Only (II) above Only (III) above Both (I) and (II) above Both (I) and (III) above All (I), (II) and (III) above.
21. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes.
Problem solving Forcing Smoothing Compromise Avoidance.
22. Which of the following strategies of overcoming resistance to change involves selectively providing
Interventions Plans Policies Innovations Programs.
24. Sources of resistance to change can be categorized as individual and organizational sources. Which of the
Habit Structural inertia Security Fear of the unknown Selective information processing.
25. The Organizational Development (OD) process consists of three major steps: diagnosis, intervention
Technostructural activity Team building Skill development Process consultation Survey feedback.
26. On-the-job training is one of the approaches to manager development. Which of the following is an on-the-
Organizational socialization Creation of “assistant-to” positions Performance appraisal Job enlargement Job analysis. 4
27. A team consists of a set of people working together towards a common purpose. A work team comprising
Functional team Cross-functional team Informal group Self-managed team Self-directed team.
28. Which of the following is the ability to develop new ideas and is a function of knowledge, imagination,
Rational- economic assumptions. Social assumptions. Self-actualization assumptions. Physiological assumptions.
(a) Only (I) above (b) Only (IV) above (c) Both (II) and (IV) above (d) Both (III) and (IV) above (e) (I), (II) and (III) above. 31. The managerial creativity process involves four overlapping phases/stages. Which stage of the creativity
Rational Emotional Behavioristic Self-actualizing Phenomenological.
33. Thomas has needs that are highly relevant to him. These needs include the need for sense of belonging,
Physiological needs Social needs Self-actualization needs Safety needs Esteem needs.
5
34. Which of the following needs are at the top of Maslow’s hierarchy of needs? (a) Physiological needs (b) Social needs (c) Security needs (d) Esteem needs (e) Self-actualization needs.
35. The process of incorporating motivators into the job situation can be referred to as
(a) Job analysis (b) Leadership (c) Job satisfaction (d) Job enrichment (e) Control. The equity theory refers to the subjective judgment of an individual about the fairness of his reward,
A state of equity exists A state of imbalance exists A state of dissatisfaction is present A state of disequilibrium is present The employees immediately quit their jobs.
37. In Vroom’s expectancy theory of motivation, which variable refers to the probability that successful
Valence Expectancy Instrumentality Motivation Drive.
38. Existence need in ERG theory corresponds to which of the following needs in Maslow’s need hierarchy
Self-actualization Esteem Social Safety Physiological.
39. Herzberg’s two-factor theory focuses on motivators and hygiene factors at the workplace. Which of the
Salary Responsibility Achievement Growth Recognition.
40. There are various elements in the motivation process proposed by Fred Luthans. Which of the following
42. Which of the following can be cited to be 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.
43. The path-goal theory, proposed by Robert House, suggests some leadership styles that can be used in
Instrumental leadership Benevolent-authoritative leadership Supportive leadership Participative leadership Achievement-oriented leadership.
44. Blake and Mouton’s Managerial Grid is an approach to defining leadership styles based on a manager’s
Impoverished management Country club management Authority-obedience management Organization man management Team management.
45. Kurt Lewin, a researcher at the University of Iowa, and his colleagues made some of the earliest attempts
Democratic Laissez-faire Autocratic Consultative Participative.
46. Lead Management had given Saila a very tight deadline and she wanted to get the job done as quickly as
Employee-centered Participative Laizzez-faire Job-centered Autocratic.
47. To help managers decide which leadership style to choose, particularly when decisions had to be made,
Employee centered and job centered Initiating structure and consideration Position power and task structure Task and relationship Boss-centered and subordinate-centered.
7
48. Fred E. Fiedler provided a starting point for situational leadership research. He identified critical
Leader-member relations Position power Task structure Concern for people Initiating structure.
49. According to the University of Michigan studies, a leader who focuses on building effective work groups
Employee-centered Initiating structure centered Considerate centered Production-centered Boss centered.
50. Which of the following aspect(s) can be attributed to a transformational leader? I. II. III. IV.
Charismatic leadership. Inspirational leadership. Intellectual stimulation. Divine grace.
(a) Only (IV) above (b) Both (I) and (IV) above (c) Both (II) and (III) above (d) (I), (II) and (III) above (e) All (I), (II), (III) and (IV) above. 51. An issue involving leadership is the argument that managers and leaders are not necessarily one and the
Instrumental Achievement-oriented Participative Supportive Democratic.
53. Which of the following do Hersey and Blanchard define as the extent to which followers have the ability
Training Readiness Instrumentality Motivation Valence.
8
54. As per the managerial grid proposed by Blake and Mouton, ‘organization-man management’ is also
Face-to-face verbal communication Non-verbal communication Crosswise communication Upward communication Downward communication.
56. In an organization, communication flows in different directions. When instructions are sent from the Head
Downward Upward Informal Horizontal Diagonal.
57. When a junior employee responds to his manager after interpreting the message received from the manager
Encoding Feedback Decoding Noise Transmission.
58. Communication is the means through which organizational participants are linked. Communication can be
Disclosing facts Sharing information Sending messages Receiving feedback Conversation.
59. Which of the following is not the gateway to effective communication? (a) (b) (c) (d) (e)
Effective listening Proper feedback Understanding non-verbal cues Lack of trust Non-directive counseling.
60. All of the following are the means through which oral downward communication takes place except (a) (b) (c) (d) (e)
Instructions Telephone Grapevine Meetings Memorandum.
9
61. Organizations implement control in a number of different ways and at various levels. Which of the
Feedback control Feedforward control Concurrent control Exception control Cybernetic control.
62. There can be various types of controls in an organization. Which of the following is a self-regulating
Strategic control system Tactical control system Operational control system Cybernetic control system Non-cybernetic control system.
63. Management by walking around (MBWA) may be used as a control technique by managers to monitor the
Statistical information Oral reports Written reports Computer databases Personal observation.
64. Lower level managers concerned with schedules, budgets, rules and specific individual output
Strategic Tactical Operational Feedforward Feedback.
65. All managers need adequate and effective systems of control to help them make sure that events conform
Control systems should be understandable Control systems should be cost-effective Control systems should be rigid Control systems should provide accurate information Control systems should identify only major exceptions.
66. Which of the following control systems use two or more control processes and involve several strategic
Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.
10
68. Which of the following refers to an organization’s ability to convert its assets into cash to meet current
Liquidity Equity Debt Profitability Net worth.
69. Which of the following control systems helps mangers to match actual and the planned revenues and costs
Financial control Budgetary control Quality control Inventory control Systems control.
70. Debts are an important source of finance for a business. Which of the following ratios indicate the
Asset Management Leverage Liquidity Profitability Current.
71. Which of the following statements is/are true about revenue centers? I. Sales and marketing departments are examples of revenue centers. II. In revenue centers, outputs are measured in monetary terms and directly compared with input costs. III. A revenue center cannot be responsible for changes in profit levels. (a) Only (II) above (b) Only (III) above (c) Both (I) and (II) above (d) Both (I) and (III) above (e) All (I), (II) and (III) above. 72. Which of the following is not of one of the major control systems used by an organization? (a) Financial control system (b) Budgetary control system (c) Inventory control system (d) Quality control system (e) Employee control system. 73. Which of the following is an index that measures one variable relative to another? (a) (b) (c) (d) (e)
Balance sheet Ratio Asset Budget Liability.
74. Which of the following ratios measures the effectiveness of an organization in managing its assets? (a) (b) (c) (d) (e)
Activity ratio Current ratio Debt ratio Net profit margin ratio Return on investment ratio.
75. Which of the following is not a limitation of operations research? (a) (b) (c) (d) (e)
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. 11
76. PERT and Critical Path method, which are logical extensions of Gantt charts used to improve productivity,
Value engineering Time-event networks Work simplification Quality circles Linear programming.
77. An organization incurs several costs in maintaining inventory. The cost of not having the inventory of the
Carrying cost Item cost Ordering cost Stock-out cost Superfluous cost.
78. Simulation models are used in which of the following steps of the operations research methodology? (a) (b) (c) (d) (e)
Formulating the problem Constructing a mathematical model Testing the method Providing controls Putting the solution into effect.
79. Which of the following is the process or procedure developed to transform a set of input elements like
Knowledge management Production Management audit Transaction processing Inventory control.
80. The labor productivity index is also referred to as (a) (b) (c) (d) (e)
Output per labor unit ratio Output per work-hour ratio Output per work-day ratio Input per work-hour ratio Input per work-day ratio.
81. In addition to operations research, there are other techniques for improving productivity in an organization.
Acceptable standards shared by a group’s members A stage in the group development A temporary group to establish 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.
82. Program Evaluation and Review Technique (PERT), which is a logical extension of Gantt Chart, can be
Plans Processes Projects Programs Policies.
83. Which of the following is not an output in the ‘distribution logistics model’? (a) (b) (c) (d) (e)
Warehousing lead-times Inventory plan Production schedule Materials procurement schedule Raw materials warehousing schedule. 12
84. In human resource planning, which of the following is not an element in ‘resource demand forecasting’?
(a) Turnover rate (b) Strategic plans (c) Demographics (d) Production schedules (e) Relocations. Non-directive counseling is one of the means to bring about effective communication. In non-directive
Only (I) above Only (II) above Only (III) above Both (I) and (II) above All (I), (II) and (III) above.
86. Strategic control involves monitoring critical environmental factors to ensure that strategic plans are
Top-level Middle-level Lower-level Foremen Trainee.
87. Which of the following is the process of formulating future plans for the organization for a given period of
Top management Middle management First-line management Lower-level management The information would be valuable to all levels of management.
13
91. Which of the following management information systems aims at facilitating communication and
Transaction processing system Decision support system Office automation system Executive support system Line support system.
92. Information that originates outside the organization is known as external information. Which of the
Daily receipts and expenditures Salesperson Quotas Descriptions of customer satisfaction with products and services Quantity of an item in hand or in inventory Cost and selling price of the company’s item.
93. In an information system, which of the following refers to the physical equipment that is used to input,
Hardware Software Data People Procedures.
94. Which of the following refers to any event or activity that involves the interaction of the organization with
Transaction Information Data processing Software Communication.
95. If an employee of a multinational company believes that since he is a citizen of the host country, he would
Ethnocentric Polycentric Regiocentric Gendercentric Geocentric.
96. According to the American style of management, which of the following are the characteristics of the
Short-term orientation. Collective decision-making. Decisions initiated at the top, flowing down. Slow decision-making. Both (I) and (II) above Both (I) and (III) above Both (II) and (IV) above (I), (II) and (III) above (II), (III) and (IV) above.
97. According to which of the following Japanese management practices are tasks not assigned to an
Lifetime employment Seniority system Continuous training Emphasis on group work Decision making. 14
98. In which of the following orientations toward international business, does a firm analyze the needs of
Ethnocentric Polycentric Geocentric Regiocentric Unicentric.
99. According to William Ouchi, organizations that exhibit a style of management that combines traits of
Theory X organizations Theory Y organizations Theory Z organizations Modern organizations Supportive organizations.
100 In Japanese management, which of the following refers to decision-making by consensus? . (a) Ringi system (b) Delphi (c) Kacho (d) Wa (e) Just-in-time.
END OF QUESTION PAPER
Suggested Answers Introduction to Management – II (MB1A2): October 2008 Answer
Reason
1.
A
Kanban is a subsystem of Just-in-Time (JIT) approach. It not a part of the human resource management function in most organizations. Hence, option (a) is correct. Options (b), (c), (d) and (e) are all parts of the human resource management function in most organizations.
< TOP
2.
D
External recruitment will lead to job dissatisfaction among the potential internal candidates of the organization.
< TOP
3.
C
Reference check involves furnishing information of persons who can assure the recruiting firm that the information given by the applicant is reliable.
< TOP
4.
E
A job description is a written statement of what a jobholder does, how it's done, and why it's done. Hence, option (e) is correct.
< TOP
5.
B
Training is defined as a planned effort to improve the performance of the employee in his area of work.
< TOP
6.
A
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.
< TOP
7.
D
Promotions are not an external source to obtain the job candidate for the vacant position. Options (a), (b), (c) and (e) are external sources of recruitment.
< TOP
15
8.
C
The formal form candidates are usually required to complete is referred to as the application blank.
< TOP
9.
D
The interview, as a selection device, is most useful for selecting persons to managerial jobs, such as the job of a Bank Manager. Hence, option (d) is correct.
< TOP
10.
A
If a training event includes learning to be a better listener or learning to interact effectively with coworkers, it is attempting to teach Interpersonal skills. Hence, option (a) is correct.
< TOP
11.
E
The following are control techniques used in a formal appraisal system:
< TOP
Standards.
Information.
12.
B
Corrective action. The steps in formulating a career strategy are as follows:
< TOP
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. Enhancing superior-subordinate interpersonal relationship is not an objective of a performance appraisal.
< TOP
13.
E
14.
A
As the future cannot be predicted with absolute accuracy, career plans are developed in an environment of uncertainty. Hence, individuals should develop contingency plans based on alternate assumptions.
< TOP
15.
E
Graphic rating scales are performance appraisal forms listing a number of factors, including general behaviors and characteristics (such as attendance, quality of work, appearance, dependability, quantity of work and relationship with people), on which employee is rated by the supervisor.
< TOP
16.
B
A performance appraisal technique that makes use of feedback from supervisors, subordinates and co-workers, is known as 360-degree appraisal. Hence, option (b) is correct.
< TOP
17.
D
Directing negative feedback toward behavior that is uncontrollable, is not a useful suggestion for providing effective feedback in an appraisal review, as the situation might become more uncontrollable. Hence, option (d) is not a useful suggestion for providing effective feedback in an appraisal review. Options (a), (b), (c) and (e) are all useful suggestions for providing effective feedback in an appraisal review.
< TOP
16
18.
C
Manager assesses performance of an employee among a group and advises the employee the specific expectations of management on day to day basis. It is setting standards for that employee. Option(c) is correct answer.
< TOP
19.
A
Luck plays an important role in the performance of an individual is a weakness of appraisal against verifiable objectives.
< TOP
20.
C
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 (c) is correct answer.
< TOP
21.
A
In problem solving technique, the two parties involved in the conflict identify and correct the source of their conflict.
< TOP
22.
B
Manipulation strategy of overcoming resistance to change, usually involves selectively providing information about a change so that it appears more attractive or necessary to potential resisters. Hence, option (b) is correct.
< TOP
23.
A
Organizational development relies on the use of interventions, which are change strategies developed and initiated with the help of a change agent. Hence, option (a) is correct.
< TOP
24.
B
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, option (b) is correct. Options (a), (c), (d) and (e) are all individual sources of resistance to change.
< TOP
25.
D
Process Consultation intervention technique is concerned with the interpersonal relations and dynamics operating in work groups. Hence, option (d) is correct.
< TOP
26.
B
Creation of “assistant-to” positions is an on-the-job training.
< TOP
27.
B
A work team comprised of experts from various specialities is most accurately referred to as a cross-functional team. Hence, option (b) is correct.
< TOP
28.
C
Creativity is the ability to develop new ideas and is a function of knowledge, imagination, and evaluation.
< TOP
29.
C
A theory Y manager assumes that employees view work as being as natural as rest or play; they will exercise self-direction if they are committed to the objectives; and they can learn to accept and even seek responsibility.
< TOP
30.
B
Physiological assumptions are not assumptions on which Edgar H. Schein based his study of human behavior.
< TOP
31.
B
The intuition stage of the creative process links the unconscious state of mind with the conscious state.
< TOP
32.
E
The phenomenological view proposes that people are unpredictable, subjective, relative and unique in nature.
< TOP
33.
B
Thomas has needs that are highly relevant to him. These needs include a sense of belonging, friendships, and supervisory support. Thomas's needs reflect social needs in Maslow's hierarchy of needs theory.
< TOP
34.
E
Self-actualization needs are at the top of Maslow’s hierarchy of needs.
< TOP
17
35.
D
The process of incorporating motivators into the job situation can be referred to as job enrichment.
< TOP
36.
A
If employees perceive their inputs-outcomes ratio to be equal to the relevant others that they compare themselves to, then a state of equity exists.
< TOP
37.
C
In Vroom’s expectancy theory, instrumentality refers to the probability that successful performance will lead to certain outcomes.
< TOP
38.
E
Existence need in ERG theory corresponds to physiological needs in Maslow’s need hierarchy theory.
< TOP
39.
A
Salary, working conditions, and security are examples of hygiene factors in Herzberg’s theory.
< TOP
40.
C
Need implies a felt deprivation of physiological or psychological well-being.
< TOP
41.
A
According to Vroom’s expectancy theory, motivation = valence * expectancy * instrumentality.
< TOP
42.
E
Quality of work life is a broad approach to job enrichment.
< TOP
43.
B
Path-goal theory suggests four types of leadership: instrumental, supportive, participative, and achievement-oriented leadership.
< TOP
44.
C
In Authority-obedience management style, there is high concern for production but low concern for people. This management style is task-oriented and stresses the quality of the decision over the wishes of subordinates. So, (c) is the correct answer.
< TOP
45.
B
According to Kurt Lewin, Laissez-faire leadership style is ineffective on every performance criterion.
< TOP
46.
D
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.
< TOP
47.
E
Boss-centered and subordinate-centered are the approaches at the two ends of this continuum.
< TOP
48.
B
Fiedler's position power is referred to the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases.
< TOP
49.
A
According to the University of Michigan studies, leaders who were employeeoriented were associated with higher group productivity and higher job satisfaction.
< TOP
50.
E
The following aspects can be attributed to a transformational leader
< TOP
Charismatic leadership.
Inspirational leadership.
Intellectual stimulation.
Divine grace.
51.
D
A major difference between management and leadership is that leadership includes the ability to inspire people. Hence, option (d) is correct.
< TOP
52.
D
A manager who constantly shows concerns for the needs of his employees is a supportive leader, according to House.
< TOP
53.
B
Hersey and Blanchard define “readiness” as the extent to which followers have the ability and the willingness to accomplish a specific task.
< TOP
18
54.
A
Organization-man management.
Middle-of-the-road
< TOP
55.
B
Non-verbal communication includes body posture, eye contact, distance from the receiver, voice inflection, rate of speech, gesture, silence etc. Hence, option (b) is correct.
< TOP
56.
A
Most decisions in an organization flow through the organization structure level by level. i.e., Head Office to regional office, regional office to branches. The given example is that of downward communication. So, (a) is correct answer.
< TOP
57.
B
A message that is generated by the receiver in response to the sender’s original message is known as feedback. So, (b) is correct answer.
< TOP
58.
B
Communication is best described as the process of sharing information.
< TOP
59.
D
The following are the gateways to effective communication:
< TOP
management
is
Interpersonal trust
Effective listening
Proper feedback
Understanding non-verbal cues
Non-directive counseling.
also
referred
to
as
60.
E
Oral downward communication may take place by means of instructions, meetings, telephone, loudspeakers and even grapevine. Memorandum is the means for written downward communication.
< TOP
61.
D
There is no such management control as ‘exception control’.
< TOP
62.
D
Cybernetic control system is a self-regulating control system that once put into operation, can automatically monitor the situation. All other control systems may rely on human discretion. So, (d) is the correct answer.
< TOP
63.
E
Management by walking around (MBWA) is based primarily on personal observation. Hence, option (e) is correct.
< TOP
64.
C
Lower level managers concerned with schedules, budgets, rules and specific individual output requirements makes use of operational control.
< TOP
65.
C
Control systems should be rigid is not the characteristic of effective control systems. In fact, control systems should be flexible enough to accommodate change.
< TOP
66.
A
Multiple control systems use two or more control processes and involve several strategic control points.
< TOP
67.
D
The following are financial statements used by managers, creditors, investment analysts, shareholders, unions and other stakeholders to evaluate the performance of the organization:
< TOP
Balance sheet.
Income statement.
68.
A
69.
B
Ratio analysis is a technique to exercise financial control and not a financial statement. Liquidity refers to an organization’s ability to convert its assets into cash to meet current financial needs. The budgetary control system helps a manager to match the actual and the planned revenues and costs of various organizational activities. 19
< TOP
< TOP
70.
B
Leverage or debt management ratios indicate the company’s ability to pay long-term debts.
< TOP
71.
D
The following statements about revenue centers are true:
< TOP
Sales and marketing departments are examples of revenue centers.
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 (d) is the answer. 72.
E
Employee control system is not a major control system used in organizations.
< TOP
73.
B
Ratio is an index that measures one variable relative to another.
< TOP
74.
A
Activity ratios or asset management ratios measure the effectiveness of an organization in managing its assets.
< TOP
75.
C
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
< TOP
76.
B
PERT and Critical Path methods are examples of time-event networks.
< TOP
77.
D
The cost of not having the inventory or stock of the product requested by the customer is called stock-out cost.
< TOP
78.
B
Simulation models used in constructing mathematical models.
< TOP
79.
B
Production is the process or procedure developed to transform a set of input elements like men, materials, money (capital), information and energy into a specified set of output elements in the form of finished products or services.
< TOP
80.
B
The labor productivity index is also referred to as output per work-hour ratio.
< TOP
81.
D
The term ‘quality circle’ refers to a work group that meets regularly to discuss, investigate and correct quality problems. Hence, option (d) is correct.
< TOP
82.
C
The Program Evaluation and Review Technique (PERT) is especially useful in scheduling Projects. Hence, option (c) is correct.
< TOP
83.
A
Warehousing lead-times is an input not an output in the distribution logistics model.
< TOP
84.
A
In human resource planning, turnover rate is not an element in ‘resource demand forecasting.
< TOP
20
85.
D
In non-directive counseling, a manager should
< TOP
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. 86.
A
Strategic control is mainly the function of top-level managers.
< TOP
87.
B
Budgeting is the process of formulating future plans for the organization for a given period of time (usually a year) and estimating the amount of resources required to carry out the planned activities.
< TOP
88.
D
Just-in time inventory control approach stipulates that materials should arrive just as they are needed in the production process.
< TOP
89.
E
The information attribute which is prepared or presented to users often enough to be up-to-date is known as information frequency.
< TOP >
90.
A
The level of management for which information about environmental trends would be most appropriate is top management. Hence, option (a) is correct.
< TOP >
91.
C
An office automation system aims at facilitating communication and increasing the efficiency and productivity of managers and office workers through document and message processing.
< TOP >
92.
C
Descriptions of customer satisfaction with products and services are examples of external information in an organization. Hence, option (c) is correct. Options (a), (b), (d) and (e) are all examples of internal information in an organization.
< TOP >
93.
A
In an information system, hardware refers to the physical equipment that is used to input, store and retrieve data.
< TOP >
94.
A
A transaction refers to any event or activity that involves the interaction of the organization with external.
< TOP >
95.
B
Polycentric orientation is based on the notion that it is best to give foreign subsidiaries, staffed by local nationals, a great deal of managerial freedom. Hence, option (b) is correct.
< TOP >
96.
B
Statements (I) and (III) are the characteristics of the American planning function. Statement (II) and (IV) are the characteristics of the Japanese planning function.
< TOP >
97.
D
In most Japanese organizations, Emphasis on group work is a task is not assigned to an individual, instead several tasks are assigned to a group, which consists of a small number of people.
< TOP >
98.
C
In the geocentric orientation toward international business, a firm analyzes the needs of customers worldwide and then adopts standardized practices for all the markets it serves.
< TOP >
99.
C
Organizations that exhibit a style of management that combines traits of Japanese and American companies are called theory Z organizations.
< TOP >
100.
A
In Japanese management, ringi refers to decision-making by consensus.
< TOP >
21
< TOP OF THE DOCUMENT >
22
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