Management Introduction Questions and Answers 51 to 60

Management Introduction 

Questions 51 to 60


51.
Which of the following steps in the planning process involves the organization asking the question “in which environment – internal or external – will our plans operate”? 
(a)  Formulating supporting plans         
(b)          Comparing alternatives in the light of goals     
(c)   Considering planning premises      
(d)   Identifying alternatives       
(e)   Setting objectives or goals.
52.
Sakshi Pathak is considering the following questions as she approaches a planning period: (a) What industries should we get into or out of? (b) In which businesses should the corporation invest money? Which of the following levels would be appropriate to address the questions facing Ms. Pathak?
(a)  Corporate level                                (b)  Business level             
(c)  Operational level                                                            (d)  Functional level                              
(e)  Departmental level.
53.
Which of the following managers deal with the actual operations of an organization’s units?
(a)  First level                                         (b)  Top level                         (c)  Middle level                       
(d)  Administrative                                  (e)  Customer support.
54.
Which of the following is/are objectives of sensitivity training? 
I.     It helps individuals gain insights into their behavior and helps them analyze the way they appear to others.
II.     It helps individuals develop the skills necessary for diagnosing and understanding of group processes.
III.    It exposes managers to theories, principles and new developments in management.
(a)  Only (I) above                                  (b)  Only (III) above                               
(c)  Both (I) and (II) above                       (d)  Both (II) and (III) above                      
(e)  All (I), (II) and (III) above.
55.
Douglas McGregor identified two opposing perspectives (Theory X and Theory Y) that he believed typified managerial views of employees and suggested that management must start with the basic question of how managers see themselves in relation to others. Which of the following is not correct about his theory?
(a)   Theory X managers view people as having an inherent dislike of work
(b)   Theory X managers assume that people are self motivated and do not want to be directed
(c)   Theory Y managers assume that the average person will accept, even seek, responsibility
(d)   Theory Y managers view people as responsible and conscientious
(e)   Theory Y managers assume that people are internally motivated to accomplish the goals and objectives.
56.
Inventory is vital to organizations, as it represents considerable costs. Various methods have been developed to control inventory related costs. Which inventory control method minimizes ordering and holding costs, while avoiding stock-out costs?
(a)  Mathematical model                         (b)  Linear programming                        
(c)  Economic order quantity                  (d)  JIT inventory system
(e)  Kanban.
57.
Which of the following ratios tests the relationship between the sales and the various assets of a firm?
(a)  Activity ratio                                    (b)  Current ratio      (c)  Inventory turnover ratio 
(d)  Return on investment ratio                (e)  Debt ratio 
58.
Which model/theory of leadership does Kavita Ramakrishnan use, when she determines the effectiveness of decisions as measured by group performance/participation; quality and acceptance?
(a)   House's Path-Goal Theory  
(b)  Fiedler’s Contingency approach
(c)  Blake and Mouton's Managerial Grid
(d)  Hersey and Blanchard's Situational Leadership Model
(e)  Vroom and Yetton's Normative Decision Model.
59.
The bargaining power of buyers, as described by Porter, is high when 
(a)  There are only a few players in the industry 
(b)          Their purchases form a large chunk of the sellers’ total sales    
(c)    There are no substitutes for products being purchased       
(d)   Products or services are critical to the buyer’s business
(e)   There are great differences in products, in terms of features, manufactured by various suppliers.
60.
Performance appraisals are important in an organization because they
I.     Provide systematic judgements to support promotions.
II.     Provide a basis for coaching.
III.    Provide a basis for counseling.
IV.   Let subordinates know where they stand with the boss.
(a)  Only (I) above                                  (b)  Only (II) above                                                              
(c)  Both (I) and (IV) above                     (d)  (I), (III) and (IV) above                      
(e)  All (I), (II), (III) and (IV) above.

Answers



51.
Answer : (c)
Reason:  The question “in which environment – internal or external – will our plans operate” is asked in the stage/step when an organization is considering planning premises.    
52.
Answer : (a)
Reason:  The puspose of the corporate level strategy is to identify the busines areas in which an organization will carry out its operations. Therefore, the corporate level strategy would be appropriate to address the questions facing Ms. Pathak
53.
Answer : (c)
Reason:  Middle level managers deal with the actual operation of the organization’s units.
54.
Answer : (c)
Reason:  Statements (I) and (II) are objectives of sensitivity training. Sensitivity training involves training in small groups in which people develop a sensitive awareness and understanding of themselves and of their relationships with others. Statement (III) is an objective of university management programs.
55.
Answer : (b)
Reason:  As per McGregor, Theory X managers assume that people prefer to be directed, wish to avoid responsibility, have little ambition, and above all, want security. Hence, option (b) is not correct about his theory. Options (a), (c), (d) and (e) are all correct about his theory.
56.
Answer : (c)
Reason:  The Economic Order Quantity (EOQ) is an inventory control method developed to minimize ordering and holding costs, while avoiding stockout costs.
57.
Answer : (a)
Reason:  Activity ratio tests the relationship between the sales and the various assets of a firm.
58.
Answer : (e)
Reason:  Kavita Ramakrishnan is using Vroom and Yetton's Normative Decision Model. In this model, the degree of participation of employees in the decision making process is important. Also the acceptance of the decision by subordinates is important.
59.
Answer : (b)
Reason:  The bargaining power of buyers is high when their purchases form a large chunk of the sellers’ total sales. The remaining options are factors that make buying power of suppliers high. Hence, option (b) is the answer.
60.
Answer : (e)
Reason:  Performance appraisals are important in an organization because they provide systematic judgements to support promotions; provide a basis for coaching; provide a basis for counseling; and let subordinates know where they stand with the boss.

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