Management Introduction
Questions 11 to 20
11.
|
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.
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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
11.
|
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.
|
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.
|
|
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.
|
|
Answer
: (b)Reason : MIS (Management Information System) gives the output in the
form of summary and exception reports that are useful to the manager.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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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