Introduction to Management

MCQs for Introduction to management (Management Principals) also can be known as  introduction to business management  with Answers and explanation. We have structured it by set, each set contain 10 no of questions and answers. This will provide you an idea that what type of questions in introduction to business management paper can be ask in exam.  

Introduction to Management Set 1
Question 1 to 10


Introduction to Management Set 2
Question 11 to 20

Introduction to Management Set 3
Question 21 to 30


Introduction to Management Set 4
Question 31 to 40


Introduction to Management Set 5
Question 41 to 50


Introduction to Management Set 6
Question 51 to 60


Introduction to Management Set 7
Question 61 to 70


Introduction to Management Set 8
Question 71 to 80


Introduction to Management Set 9
Question 81 to 90


Introduction to Management Set 10
Question 91 to 100


Introduction to Management Set 11
Question 101 to 110


Introduction to Management Set 12
Question 111 to 120

Introduction to Management Set 13
Question 121 to 130


Introduction to Management Set 14
Question 131 to 140


Introduction to Management Set 15
Question 141 to 150


Introduction to Management Set 16
Question 151 to 160


Introduction to Management Set 17
Question 161 to 170


Introduction to Management Set 18
Question 171 to 180


Introduction to Management Set 19
Question 181 to 190


Introduction to Management Set 20
Question 191 to 200


Introduction to Management Set 21
Question 201 to 210


Introduction to Management Set 22
Question 211 to 220

Introduction to Management Set 23
Question 221 to 230


Introduction to Management Set 24
Question 231 to 240


Introduction to Management Set 25
Question 241 to 250


Introduction to Management Set 26
Question 251 to 260


Introduction to Management Set 27
Question 261 to 270

Introduction to Management Set 28
Question 271 to 280

Introduction to Management Set 29
Question 281 to 290

Introduction to Management Set 30
Question 291 to 300

Introduction to Management Set 31
Question 301 to 310

Introduction to Management Set 32
Question 311 to 320

Introduction to Management Set 33
Question 321 to 330

Introduction to Management Set 34
Question 331 to 340

Introduction to Management Set 35
Question 341 to 350

Introduction to Management Set 36
Question 351 to 360

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Management Introduction Questions and Answers 351 to 360

 Management Introduction 

Questions 351 to 360

351.	Behaviorally Anchored Rating Scales (BARS) is a sophisticated performance rating method. Which of the following is not true with regard to BARS? (a)   BARS minimizes subjective interpretation inherent in graphic rating scales (b)   BARS makes use of ‘anchors’ (common reference points of performance) (c)   BARS concentrates on job-specific behaviors and hence is highly meaningful (d)   BARS is a simple and cost-effective rating method (e)   BARS can be applied in organizations where a large number of people perform similar jobs.
352.	Which of the following is not true with regard to functional authority? (a)   Functional authority is the authority staff members have over line members within the limits of their functions (b)   Functional authority has the same effect as line authority but it doesn’t have the right that line authority has, to punish violations or deviations in order to ensure compliance (c)   Functional authority is limited to those areas where a staff member has some technical competence (d)   The use of functional authority should be restricted to the procedural aspects of a function (e)   Functional authority is in sync with the principle of unity of command.
353.	Creativity is an important factor in managing people. Which of the following is not true with regard to the creative process? (a)   Creativity is the ability to develop new ideas (b)   The creative process starts with unconscious scanning (c)   Intuition connects the unconscious with the conscious (d)   Insight leads to intuition (e)   Insight is tested against organizational reality.
354.	According to "expectancy theory", the probability of an individual acting in a particular way depends on I.     The personality of the individual and the likelihood it will change. II.     The company and its potential to be moving in the right direction. III.    The situation. IV.   The strength of that individual's belief that the act will have a particular outcome and on whether the individual values that outcome. (a) Only (I) above                                   (b) Only (IV) above  (c) Both (I) and (III) above                       (d) Both (II) and (IV) above (e) (I), (III) and (IV) above.
355.	Which of the following techniques for improving productivity aims at reducing costs by analyzing and improving individual operations of a product or service? (a) Work simplification                           (b) Time-event network (c) Value engineering (d) Total Quality Management                 (e) Quality Circle.
356.	Span of control an important factor, which is to be taken into account when undertaking organizational design. Maintaining a large span of control within an organization is most effective in all except one of the following situations? (a)   When subordinates prefer autonomy (b)   When tasks are routine (c)   When jobs are similar but have varying performance measures (d)   When subordinates are highly trained (e)   When managers are competent.
357.	Functional job analysis is a widely used systematic job analysis approach. Which of the following dimensions of an individual’s job does functional job analysis focus on? I.     Data, people and jobs pertaining to the individual’s job. II.     Interpersonal relationships required to perform the job. III.    Tools and equipment used by the worker. IV.   Products and services produced by the worker. (a) Only (I) above                                   (b) Only (III) above  (c) Both (II) and (IV) above                      (d) (I), (III) and (IV) above                       (e) All (I), (II), (III) and (IV) above.
358.	Organizational culture is the collection of shared values, beliefs, rituals, stories, myths and specialized language that foster a feeling of community among organization members. Which of the following is not a characteristic of organization culture? (a)   It differentiates one organization from another (b)   It defines the internal environment of an organization (c)   It ensures consistency in the behavior of organization members (d)   It remains absolutely stable throughout the life of an organization (e)   It is perceived by the organization members as well as by outsiders.
359.	Management By Objectives (MBO) is a system for achieving organizational objectives, enhancement of employee commitment and participation. Which of the following is not an advantage of MBO? (a) Role clarity                                       (b) Clarity in organizational action (c) Personnel satisfaction                       (d) Basis for organizational change (e) Flexibility.
360.	Which of the following are the characteristics of the planning process usually adopted in Japanese Management style? I.     Long-term orientation.                     II.     Individual decision-making. III.    Decisions flowing from bottom to top and back.     IV.   Slow decision-making. (a) Both (I) and (II) above                        (b) Both (I) and (III) above (c) Both (II) and IV) above                       (d) (I), (III) and (IV) above (e) (II), (III) and (IV) above.

Answers

351.	Answer : (d) Reason : BARS minimizes subjective interpretation inherent in graphic rating scales. They make use of ‘anchors’ (common reference points of performance) and they concentrate on job-specific behaviors and hence are highly meaningful. However, BARS are time-consuming and costly to develop, as they should cover each dimension of all jobs in the department. As a result, BARS tend to be used in situations in which relatively large numbers of individuals perform similar jobs.
352.	Answer : (e) Reason : The authority to control other departments, related to specific tasks, is known as functional authority. It is defined as the formal authority staff members have over line members within the limits of their functions. It has the same effect as line authority but it does not have the right that line authority has, to punish violations or deviations in order to ensure compliance. Functional authority is limited to those areas where a staff person has some technical competence. The use of functional authority should be restricted to the procedural aspects of a function. But functional authority violates the principle of unity of command since authority over specific functional activities is exercised not only by line managers but also by staff managers.
353.	Answer : (d) Reason : Creativity is the ability to develop new ideas. The creative process comprises four phases: unconscious scanning, intuition, insight, and logical formulation. Intuition connects the unconscious with the conscious, and leads to insight. In the final phase of the creative process, insight is tested against organizational reality.
354.	Answer : (b) Reason : According to "expectancy theory", the probability of an individual acting in a particular way depends on the strength of that individual's belief that the act will have a particular outcome and on whether the individual values that outcome. Hence option (b) is the correct answer.
355.	Answer : (c) Reason : Value engineering involves analyzing the operations of the products or service, estimating the value of each operation, and modifying that operation so that the cost is lowered. (a) Work simplification involves teaching workers the concepts of time and motion studies, layout of work situations, and workflow analysis in order to improve work methods.               (b) Time-event network is a logical extension of the Gantt chart and uses Critical Path Method to help in planning and controlling operations.               (d) Total Quality Management (TQM) calls for active participation of all the members at all levels of the organization in order to ensure its (the organization’s) long-term commitment to improvement of quality.         (e) A quality circle is a group of people who belong to an organizational area and who meet regularly to solve the problems they face at work.
356.	Answer : (c)   Reason : Maintaining a large span of control within an organization is most effective in all situations except when jobs are similar but have varying performance measures.
357.	Answer : (d) Reason : Functional Job Analysis focuses on the following dimensions of an individual job:               I.     Data, people and jobs pertaining to the individual’s job.               III.    Tools and equipment used by the worker. IV. Products and services produced by the worker. Hence, from above discussion, we can infer that option (d) is correct.
358.	Answer : (d) Reason : Organization culture is the collection of shared values, beliefs, rituals, stories, myths, and specialized language that foster a feeling of community among organization members. Organizational culture is distinctive and it differentiates one organization from another. It is based on certain norms, which define the internal environment of an organization. When the members of an organization interact with each other, they use a common language, and follow the same norms and hence organizational culture ensures consistency in their behavior. It is perceived by the members of the organization as well as by outsiders. Though organizational culture is fairly stable, it keeps evolving from time to time.
359.	Answer : (e) Reason : MBO helps in better managing the organizational resources and activities through clarity of objectives, role clarity, periodic feedback on performance, and participation by managers. It provides the key result areas (KRAs) where organizational efforts are needed, which leads to clarity in organizational action. Since MBO allows participation of employees in objective setting and a rational performance appraisal, it provides the greatest opportunity for personnel satisfaction. Also, MBO stimulates organizational change and provides a framework and guidelines for planned change, enabling the top management to initiate, plan, direct, and control the direction and speed of change. However, MBO has some limitations also, which include inflexibility in the organization, particularly when the objectives need to be changed.
360.	Answer : (d) Reason : The characteristics of the planning process usually adopted in Japanese Management style are: (1) Long-term orientation, (2) Collective decision-making, (3) Decisions flowing bottom to top and back, (4) Slow decision-making. Hence, (d) is the correct answer.

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Management Introduction Questions and Answers 341 to 350

Management Introduction 

Questions 341 to 350

341.	Information that originates outside the organization is known as external information. Which of the following is/are example(s) of external information in an organization? (a)   Daily receipts and expenditures (b)   Salesperson Quotas (c)   Descriptions of customer satisfaction with products and services (d)   Quantity of an item in hand or in inventory (e)   Cost and selling price of the company’s item.
342.	Which of the following decision-making models emphasizes short-run solution of a problem rather than long-term goal accomplishment? (a) Rational model (b) Satisficing model  (c) Incremental model                            (d) Garbage-can model (e) Decision tree.
343.	Sofia works in one of seven research and development departments at General Automobile Corporation. This would suggest that General Automobiles has a (a) Functional structure                           (b) Divisional structure (c) Flat structure (d) High degree of centralization             (e) Tall structure.
344.	Which of the following information processing systems gives the output in the form of summary and exception reports that are useful to the managers? (a) Decision support system                   (b) Management information system (c) Office automation system                 (d) Transaction processing system (e) Executive support system.
345.	In which of Likert’s four systems of leadership, managers do not have complete confidence and trust in subordinates but nevertheless, solicit advice from subordinates while retaining the right to make final decision? (a) Participative leadership style             (b) Benevolent-authoritative leadership style (c) Consultative leadership style             (d) Exploitative-authoritative leadership style (e) Trait theory of leadership style.
346.	Performance appraisals are important in an organization because they I.     Provide systematic judgments 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.
347.	Ratio analysis helps a manager to compare the performance of the organization with its previous performance or the performance of its competitors. Which of the following is a ratio of creditors’ contribution to that of the owners? (a) Current ratio                                      (b) Debt-equity ratio (c) Return on investment (ROI)                (d) Net profit margin (e) Inventory turnover.
348.	Which of the following inventory techniques uses cards to monitor inventory movement? (a) ABC Analysis                                    (b) JIT Approach                                    (c) Kanban (d) Kaizen                                              (e) Economic Order Quantity.
349.	A decision support system (DSS) is an interactive computer system used to plan and make decisions. Which of the following is/are true with regard to Decision Support System (DSS)? I.     Executive decisions are the focal points in DSS. II.     DSS specializes in easy-to-use software. III.    DSS employs interactive processing. IV.   The control and use of DSS rests with the central information management department. (a) Only (I) above                                   (b) Both (I) and (II) above (c) Both (III) and (IV) above                     (d) (I), (II) and (III) above (e) (II), (III) and (IV) above.
350.	Which of the following is/are postulates of the path – goal theory? I.     The leader clearly defines the path to goal attainment for subordinates. II.     The leader motivates subordinates to participate in decision-making. III.    The leader sets clear and specific goals for subordinates. IV.   The leader suitably rewards employees as per their performance. (a) Only (II) above                                  (b) Only (IV) above  (c) Both (II) and (IV) above                      (d) (I), (II) and (IV) above                         (e) All (I), (II), (III) and (IV) above.

Answers

341.	Answer : (c) Reason : Descriptions of customer satisfaction with products and services are examples of external information in an organization. Hence from above discussion, we can infer that option (c) is correct. Options (a), (b), (d) and (e) are all examples of internal information in an organization.
342.	Answer : (c) Reason : Incremental model emphasizes short-run solution of a problem rather than long-term goal accomplishment. (a) Rational model is a model of managerial decision-making, which suggests that managers engage in completely rational decision process, ultimately make optimal decisions and process, and understand all information relevant to their decisions at the time they make them. (b) Satisficing model describe the way modern managers must, of necessity, make decisions with incomplete information by choosing from among the few most likely alternatives. (d) Garbage can model is a non-rational model of management decision-making stating that mangers behave in virtually a random pattern in making non-programmed decisions. (e) Decision tree is a quantitative decision-making tool based on a graphic model that displays the structure of a sequence of alternative courses of action and usually shows the payoff associated with various paths and the probabilities associated with future conditions.
343.	Answer : (b) Reason : Sofia works in one of seven research and development departments at General Automobile Corporation and this suggests that General Automobile has a divisional structure. i.e. to say divisional structure is a type of departmentation in which positions are grouped according to similarity of products, services or markets. (a) Functional structure is a type of departmentation in which positions are grouped according to their main functional or specialized area. (c) Flat structure is a structure that has few hierarchical levels and wide spans of control. (d) High degree of centralization is the tendency to restrict delegation of decision-making in an organization structure, usually by holding authority at or near the top of the organization structure. (e) Tall structure is a structure that has many hierarchical levels and narrow spans of control.
344.	Answer : (b) Reason : MIS (Management Information System) gives the output in the form of summary and exception reports that are useful to the manager.
345.	Answer : (c) Reason : When managers have substantial but not complete confidence and trust in subordinates and solicit advice from subordinates while retaining the right to make final decision, Likert’s four systems of management describes it as consultative leadership style. (a) In Participative leadership style the manager has complete trust and confidence in the subordinates in all the matters. (b) In Benevolent leadership style the managers have a patronizing confidence and trust in subordinates, solicit some ideas and opinions from subordinates, motivate with rewards and some fear and punishment, permit some upward communication and allow some delegation of decision-making but with close policy control. (d) In exploitative-authoritative leadership style the managers represents doctorial leadership behavior with all decisions made by the manager. (e) Trait theory of leadership style assumes that leaders share certain inborn personality traits.
346.	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.
347.	Answer : (b) Reason : Debt-equity ratio indicates what percentage of the organization’s assets creditors furnish. (a) Current ratio is the ratio of current assets to current liabilities. (c) Return on investment (ROI) is the ratio of net income to total assets. (d) Net profit margin is the ratio of net income to net sales. (e) Inventory turnover is the ratio of cost of goods sold to inventory.
348.	Answer : (c) Reason : Kanban is a subsystem of the JIT approach involving a simple parts movement system that depends on cards and containers to pull parts from one work center to another. (a)ABC analysis is a technique of inventory management, in which the inventory is distributed based on price & usage of the inventory. (b) A JIT is an approach to inventory control that emphasizes having materials arrive just as they are needed in the production process. (d) Kaizen is a Japanese term implying continuous improvement. (e) EOQ is an inventory control method developed to minimize ordering plus holding        costs, while avoiding stock out costs.
349.	Answer : (d) Reason : The following are the characteristics of DSS:               (I)    Executive decisions are the focal points in DSS.               (II)    DSS specializes in easy-to-use software               (III)   DSS employs interactive processing.               (1V) The control and use of DSS rests with the users and not the central information management department                Statement given in (IV) is incorrect; hence option (d) is the correct answer.
350.	Answer : (e) Reason : According to Path-Goal theory, the leader clearly defines the path to goal attainment for subordinates, when leader motivates subordinates to participate in decision-making and sets clear and specific goals to the organization and a leader should suitably reward employees as per their performance. So, all the statements mentioned are true for path-goal theory.

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