Management Introduction Questions and Answers 41 to 50

Management Introduction 

Questions 41 to 50

41.	Managers making ethical decisions may belong to any of the three levels of moral development. Which of the following stages describes the conventional level of moral development? (a)   Following rules only when it is in one’s immediate interest (b)   Valuing rights of others and upholding absolute values and rights, regardless of the majority's opinion (c)   Sticking to rules to avoid physical punishment (d)   Living up to what is expected by people who are close to oneself (e)   Following self-chosen ethical principles even if they violate the law.
42.	Direct control is the control that is exercised after the deviations from plans have occurred. Which of the following is not an underlying assumption of direct control? (a)   Performance can be measured (b)   Personal responsibility is absent (c)   The time expenditure is warranted (d)   Mistakes can be discovered in time (e)   The individual who is responsible will take corrective steps.
43.	Which function of management involves filling, and keeping filled, the positions in the organization structure? (a)  Organizing                                       (b)  Planning                                          (c)  Staffing (d)  Controlling                                       (e)  Leading.
44.	Which of the following is not true about ‘power’? (a)  Power requires no formal position                           (b)  Power works both ways – downward and upward     (c)  Power is derived from many sources           (d)  Formal authority is a type of power             (e)  Power is a narrow term compared to authority.
45.	In an organization, a superior has the right to get tasks accomplished by his subordinates, but the responsibility remains with the superior. This principle which intends to eliminate the practice of “passing the buck”, is known as (a)  Authority on par with responsibility    (b)  Hierarchy of authority (c)  Unity of direction                                                           (d)  Downward delegation of authority (e)  Unity of command.
46.	Robert Owen was one of the prominent contributors to preclassical management thought. Which of the following did Robert Owen advocate/propose?  (a)  Division of labor    (b)   Legislative reforms to improve working conditions of labor              (c)  Profit-sharing plan              (d)  Study of management        (e)  Emphasis on the importance of business skills for running a business.
47.	Informal communication is also referred to as (a)  Grapevine                                        (b)  Buzz                                                (c)  Pipeline (d)  Noise                                              (e)  Uproar.
48.	An intervention, in Organization Development (OD) terms, is a systematic attempt to correct an organizational deficiency uncovered through diagnosis. Which of the following intervention techniques is concerned with the interpersonal relations and dynamics operating in work groups? (a)  Technostructural activity                   (b)  Team building              (c)  Skill development (d)  Process consultation                       (e)  Survey feedback.
49.	Why do such companies as Ford, Federal Express, Boeing, or Proctor & Gamble put together cross-functional teams? (a)  Because each member has unique knowledge that adds value to the overall decision (b)  Because it is cheaper than hiring consultants (c)  Because decisions can be reached at almost twice the speed of other decision format styles (d)  Because it diffuses risk (blame) of a wrong decision choice (e)  Because of inadequate availability of manpower.
50.	Which of the following is an advantage of the functional structure? (a)  It follows principle of occupational specialization                 (b)  It permits growth and diversity of products and services      (c)  There is better face-to-face communication with local interests         (d)  There is improved environmental monitoring            (e)  It improves coordination in a region.

Answers

41.	Answer : (d) Reason:  Living up to what is expected by people who are close to oneself describes the conventional level of moral development. Options (a) and (c) describe the  preconventional stage. Options (b) and (e) describe the principled stage.
42.	Answer : (b) Reason:  The underlying assumptions of direct control are: (i)    Performance can be measured. (ii)   Personal responsibility exists. (iii)      The time expenditure is warranted. (iv)     Mistakes can be discovered in time. (v)   The individual who is responsible will take corrective steps.        Hence, option (b) is not the underlying assumption of direct control.        Options (a), (c), (d) and (e) are all underlying assumptions of direct control.
43.	Answer : (c) Reason:  The staffing function of management involves filling, and keeping filled, the positions in the organization structure.
44.	Answer : (e) Reason:  Power is a much broader concept than authority. Therefore, option (e) is not true about power and is the answer.
45.	Answer : (d) Reason:  The principle which intends to eliminate the practice of “passing the buck”, is known as downward delegation of authority. In downward delegation, a superior has the right to get tasks accomplished by his subordinates, but the responsibility remains with the superior.
46.	Answer : (b) Reason:  Robert Owen proposed legislative reforms to improve working conditions of labor.
47.	Answer : (a) Reason:  Informal communication is also referred to as grapevine.
48.	Answer : (d) Reason:  Process Consultation intervention technique is concerned with the interpersonal relations and dynamics operating in work groups. Hence, option (d) is correct.
49.	Answer : (a) Reason:  Companies such as Ford, Federal Express, Boeing, or Proctor & Gamble put together cross-functional teams because each member has unique knowledge that adds value to the overall decision. A cross-functional team, in business, consists of a group of people working toward a common goal and made of people with different functional expertise, which makes their knowledge unique.
50.	Answer : (a) Reason:  Following the principle of occupational specialization is an advantage of the functional structure. (b) Permitting growth and diversity of products and services is an advantage of divisional structure. (c) Better face-to-face communication with local interests and (e) improved coordination in a region are advantages of a divisional structure. (d) Improved environmental monitoring is an advantage of the matrix structure.

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