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 <Answer
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) Kanban
(b) Performance appraisal
(c) Training
(d) Human resource planning
(e) Compensation.
2. External recruitment involves attracting people from outside the organization to apply for jobs. Which of <Answer
>
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.
3. In the selection process, which of the following involves furnishing information of persons who can assure <Answer
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 <Answer
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 <Answer
area of work? >

(a) Performance Appraisal

(b) Training
(c) Compensation
(d) Staffing
(e) Human resource planning.
6. There are various means of assessing internal labor supply. Which of the following provides the <Answer
>
organization with a well qualified pool of individuals from which top-level and middle-level managers can
be selected in future?
(a) Succession Planning
(b) Replacement Planning
(c) Resources Planning
(d) Requirements Planning
(e) Operational Planning.

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7. External recruitment involves attracting people from outside the organization to apply for jobs. There are a <Answer
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 <Answer
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 <Answer
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.
10. Training is essential for new recruits as well as for existing personnel to improve their capabilities and <Answer
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) Interpersonal skills
(b) Technical skills
(c) Problem-solving skills
(d) Analytical skills
(e) Observational skills.

11. The effectiveness of a formal performance appraisal system depends on the quality of control techniques <Answer
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 <Answer
so as to take advantage of career opportunities. Which of the following steps precede the others in >
formulating a career strategy?
(a) Development of strategic career alternatives
(b) Analysis of personal strengths and weaknesses
(c) Consistency testing and strategic choices
(d) Implementation of the career plan
(e) Monitoring progress.

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13. Performance appraisal is a continuous process that focuses on organization’s objectives, task <Answer
accomplishment, and personal development. Which of the following is not an objective of a performance >
appraisal?
(a) Identification of potential
(b) Compensation administration
(c) Work-force planning
(d) Validation of selection procedures
(e) Enhancing superior-subordinate interpersonal relationship.
14. As the future cannot be predicted with absolute accuracy, career plans are developed in an environment of <Answer
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? <Answer
>
I. Quality of work.
II. Attendance.
III. Dependability.
(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.
16. Various appraisal techniques are used in organizations. A performance appraisal technique that makes use <Answer
of feedback from supervisors, subordinates and co-workers, is known as >

(a) Results-oriented appraisal

(b) 360-degree appraisal
(c) Informal appraisal
(d) Graphic rating scale
(e) Behaviorally anchored rating scale.
17. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of the <Answer
>
following would not be a useful suggestion for providing effective feedback in an appraisal review?
(a) Make the feedback goal-oriented
(b) Ensure understanding
(c) Keep the feedback impersonal
(d) Direct negative feedback toward behavior that is uncontrollable
(e) Focus on specific behaviors.
18. If a manager advises one of his subordinates on what the expectations of the management are from the <Answer
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 <Answer
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? <Answer
>
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) 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.
21. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes. <Answer
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) Problem solving
(b) Forcing
(c) Smoothing
(d) Compromise
(e) Avoidance.
22. Which of the following strategies of overcoming resistance to change involves selectively providing <Answer
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 <Answer
effectiveness. Which of the following are change strategies used in OD that are developed and initiated >
with the help of a change agent?
(a) Interventions
(b) Plans
(c) Policies
(d) Innovations
(e) Programs.

24. Sources of resistance to change can be categorized as individual and organizational sources. Which of the <Answer
following is an organizational source of resistance to change? >

(a) Habit
(b) Structural inertia
(c) Security
(d) Fear of the unknown
(e) Selective information processing.
25. The Organizational Development (OD) process consists of three major steps: diagnosis, intervention <Answer
and evaluation. 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.
26. On-the-job training is one of the approaches to manager development. Which of the following is an on-the- <Answer
job training technique? >

(a) Organizational socialization

(b) Creation of “assistant-to” positions
(c) Performance appraisal
(d) Job enlargement
(e) Job analysis.

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27. A team consists of a set of people working together towards a common purpose. A work team comprising <Answer
experts from various specialized areas can be referred to as a/an >

(a) Functional team

(b) Cross-functional team
(c) Informal group
(d) Self-managed team
(e) Self-directed team.

28. Which of the following is the ability to develop new ideas and is a function of knowledge, imagination, <Answer
and evaluation? >

(a) Motivation
(b) Entrepreneurship
(c) Creativity
(d) Management
(e) Change.
29. In order to explain the nature of people, McGregor identified two sets of assumptions known as Theory <Answer
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.
30. Which of the following is/are not assumption(s) on which Edgar H. Schein based his study of human <Answer
behavior? >

I. Rational- economic assumptions.

II. Social assumptions.
III. Self-actualization assumptions.
IV. 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 <Answer
process links the unconscious state of mind with the conscious state? >

(a) Unconscious scanning

(b) Intuition
(c) Insight
(d) Logical formulation
(e) Decision.
32. Lyman Porter and his colleagues classified the underlying nature of people into six models. Which of the <Answer
following views proposes that people are unpredictable, subjective, relative and unique in nature? >

(a) Rational
(b) Emotional
(c) Behavioristic
(d) Self-actualizing
(e) Phenomenological.
33. Thomas has needs that are highly relevant to him. These needs include the need for sense of belonging, <Answer
friendship and supervisory support. Thomas’ needs reflect which needs in Maslow’s hierarchy of needs? >

(a) Physiological needs

(b) Social needs
(c) Self-actualization needs
(d) Safety needs
(e) Esteem needs.

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34. Which of the following needs are at the top of Maslow’s hierarchy of needs? <Answer
>
(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 <Answer
>
(a) Job analysis
(b) Leadership
(c) Job satisfaction
(d) Job enrichment
(e) Control.
36. The equity theory refers to the subjective judgment of an individual about the fairness of his reward, <Answer
relative to the inputs, in comparison with the rewards of others. If employees perceive their inputs- >
outcomes ratio to be equal to that of relevant others whom they compare themselves to, then
(a) A state of equity exists
(b) A state of imbalance exists
(c) A state of dissatisfaction is present
(d) A state of disequilibrium is present
(e) The employees immediately quit their jobs.

37. In Vroom’s expectancy theory of motivation, which variable refers to the probability that successful <Answer
performance will lead to certain outcomes? >

(a) Valence
(b) Expectancy
(c) Instrumentality
(d) Motivation
(e) Drive.
38. Existence need in ERG theory corresponds to which of the following needs in Maslow’s need hierarchy <Answer
>
theory?
(a) Self-actualization
(b) Esteem
(c) Social
(d) Safety
(e) Physiological.
39. Herzberg’s two-factor theory focuses on motivators and hygiene factors at the workplace. Which of the <Answer
following could be a hygiene factor as per this theory? >

(a) Salary
(b) Responsibility
(c) Achievement
(d) Growth
(e) Recognition.
40. There are various elements in the motivation process proposed by Fred Luthans. Which of the following <Answer
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? <Answer
>
(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.

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42. Which of the following can be cited to be a broad approach to job enrichment? <Answer
>
(a) Value engineering
(b) Social responsiveness
(c) T Group training
(d) Total quality management
(e) Quality of work life.
43. The path-goal theory, proposed by Robert House, suggests some leadership styles that can be used in <Answer
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) Instrumental leadership
(b) Benevolent-authoritative leadership
(c) Supportive leadership
(d) Participative leadership
(e) Achievement-oriented leadership.
44. Blake and Mouton’s Managerial Grid is an approach to defining leadership styles based on a manager’s <Answer
>
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) Impoverished management
(b) Country club management
(c) Authority-obedience management
(d) Organization man management
(e) Team management.
45. Kurt Lewin, a researcher at the University of Iowa, and his colleagues made some of the earliest attempts <Answer
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) Democratic
(b) Laissez-faire
(c) Autocratic
(d) Consultative
(e) Participative.
46. Lead Management had given Saila a very tight deadline and she wanted to get the job done as quickly as <Answer
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) Employee-centered
(b) Participative
(c) Laizzez-faire
(d) Job-centered
(e) Autocratic.
47. To help managers decide which leadership style to choose, particularly when decisions had to be made, <Answer
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) Employee centered and job centered
(b) Initiating structure and consideration
(c) Position power and task structure
(d) Task and relationship
(e) Boss-centered and subordinate-centered.

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48. Fred E. Fiedler provided a starting point for situational leadership research. He identified critical <Answer
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) Leader-member relations
(b) Position power
(c) Task structure
(d) Concern for people
(e) Initiating structure.
49. According to the University of Michigan studies, a leader who focuses on building effective work groups <Answer
in order to attain higher group productivity and higher job satisfaction is >

(a) Employee-centered
(b) Initiating structure centered
(c) Considerate centered
(d) Production-centered
(e) Boss centered.
50. Which of the following aspect(s) can be attributed to a transformational leader? <Answer
>
I. Charismatic leadership.
II. Inspirational leadership.
III. Intellectual stimulation.
IV. 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 <Answer
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.
52. John Denver is a manager who constantly shows concerns for the needs of his employees and is friendly <Answer
and approachable. As per House’s path-goal theory, which type of leadership style is John Denver >
demonstrating?
(a) Instrumental
(b) Achievement-oriented
(c) Participative
(d) Supportive
(e) Democratic.

53. Which of the following do Hersey and Blanchard define as the extent to which followers have the ability <Answer
and the willingness to accomplish a specific task? >

(a) Training
(b) Readiness
(c) Instrumentality
(d) Motivation
(e) Valence.

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54. As per the managerial grid proposed by Blake and Mouton, ‘organization-man management’ is also <Answer
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”. <Answer
He was suggesting the importance of >

(a) Face-to-face verbal communication

(b) Non-verbal communication
(c) Crosswise communication
(d) Upward communication
(e) Downward communication.

56. In an organization, communication flows in different directions. When instructions are sent from the Head <Answer
>
Office to branches, the communication is
(a) Downward
(b) Upward
(c) Informal
(d) Horizontal
(e) Diagonal.
57. When a junior employee responds to his manager after interpreting the message received from the manager <Answer
and simultaneously ensures that he understands the message correctly, which element of the >
communication process is in play?
(a) Encoding
(b) Feedback
(c) Decoding
(d) Noise
(e) Transmission.
58. Communication is the means through which organizational participants are linked. Communication can be <Answer
best described as the process of >

(a) Disclosing facts

(b) Sharing information
(c) Sending messages
(d) Receiving feedback
(e) Conversation.
59. Which of the following is not the gateway to effective communication? <Answer
>
(a) Effective listening
(b) Proper feedback
(c) Understanding non-verbal cues
(d) Lack of trust
(e) Non-directive counseling.
60. All of the following are the means through which oral downward communication takes place except <Answer
>
(a) Instructions
(b) Telephone
(c) Grapevine
(d) Meetings
(e) Memorandum.

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61. Organizations implement control in a number of different ways and at various levels. Which of the <Answer
following is not one of the types of management control? >

(a) Feedback control

(b) Feedforward control
(c) Concurrent control
(d) Exception control
(e) Cybernetic control.
62. There can be various types of controls in an organization. Which of the following is a self-regulating <Answer
control system that once put into operation, can automatically monitor the situation? >

(a) Strategic control system

(b) Tactical control system
(c) Operational control system
(d) Cybernetic control system
(e) Non-cybernetic control system.
63. Management by walking around (MBWA) may be used as a control technique by managers to monitor the <Answer
performance of their employees while they are performing their tasks. MBWA is primarily based on >

(a) Statistical information

(b) Oral reports
(c) Written reports
(d) Computer databases
(e) Personal observation.

64. Lower level managers concerned with schedules, budgets, rules and specific individual output <Answer
>
requirements make use of which of the following levels of control?
(a) Strategic
(b) Tactical
(c) Operational
(d) Feedforward
(e) Feedback.
65. All managers need adequate and effective systems of control to help them make sure that events conform <Answer
to plans. Which of the following is not the characteristic of effective control systems? >

(a) Control systems should be understandable

(b) Control systems should be cost-effective
(c) Control systems should be rigid
(d) Control systems should provide accurate information
(e) Control systems should identify only major exceptions.
66. Which of the following control systems use two or more control processes and involve several strategic <Answer
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, <Answer
shareholders, unions and other stakeholders to evaluate the performance of the organization? >

I. Balance sheet.
II. Income statement.
III. Ratio analysis.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) 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 <Answer
financial needs? >

(a) Liquidity
(b) Equity
(c) Debt
(d) Profitability
(e) Net worth.
69. Which of the following control systems helps mangers to match actual and the planned revenues and costs <Answer
of various organizational activities? >

(a) Financial control

(b) Budgetary control
(c) Quality control
(d) Inventory control
(e) Systems control.
70. Debts are an important source of finance for a business. Which of the following ratios indicate the <Answer
>
company’s ability to pay long-term debts?
(a) Asset Management
(b) Leverage
(c) Liquidity
(d) Profitability
(e) Current.
71. Which of the following statements is/are true about revenue centers? <Answer
>
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? <Answer
>
(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? <Answer
>
(a) Balance sheet
(b) Ratio
(c) Asset
(d) Budget
(e) Liability.
74. Which of the following ratios measures the effectiveness of an organization in managing its assets? <Answer
>
(a) Activity ratio
(b) Current ratio
(c) Debt ratio
(d) Net profit margin ratio
(e) Return on investment ratio.
75. Which of the following is not a limitation of operations research? <Answer
>
(a) The magnitude of calculations hikes up the cost of operations research
(b) Qualitative factors such as human resources cannot be quantified
(c) It emphasizes the logical physical presentation of a problem in the form of a model
(d) There is a gap between practicing managers and trained operations researchers
(e) It provides solutions only when all elements related to a problem are quantified.
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76. PERT and Critical Path method, which are logical extensions of Gantt charts used to improve productivity, <Answer
are examples of >

(a) Value engineering

(b) Time-event networks
(c) Work simplification
(d) Quality circles
(e) Linear programming.
77. An organization incurs several costs in maintaining inventory. The cost of not having the inventory of the <Answer
product requested by the customer is called as >

(a) Carrying cost

(b) Item cost
(c) Ordering cost
(d) Stock-out cost
(e) Superfluous cost.
78. Simulation models are used in which of the following steps of the operations research methodology? <Answer
>
(a) Formulating the problem
(b) Constructing a mathematical model
(c) Testing the method
(d) Providing controls
(e) Putting the solution into effect.
79. Which of the following is the process or procedure developed to transform a set of input elements like <Answer
men, materials, money (capital), information and energy into a specified set of output elements in the >
form of finished products or services?
(a) Knowledge management
(b) Production
(c) Management audit
(d) Transaction processing
(e) Inventory control.
80. The labor productivity index is also referred to as <Answer
>
(a) Output per labor unit ratio
(b) Output per work-hour ratio
(c) Output per work-day ratio
(d) Input per work-hour ratio
(e) Input per work-day ratio.
81. In addition to operations research, there are other techniques for improving productivity in an organization. <Answer
One such technique is ‘quality circle’. The term ‘quality circle’ refers to >

(a) Acceptable standards shared by a group’s members

(b) A stage in the group development
(c) A temporary group to establish a specific task
(d) A work group that meets regularly to discuss, investigate and correct quality problems
(e) 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 <Answer
used as a tool to improve productivity in an organization. PERT is especially useful in scheduling >

(a) Plans
(b) Processes
(c) Projects
(d) Programs
(e) Policies.
83. Which of the following is not an output in the ‘distribution logistics model’? <Answer
>
(a) Warehousing lead-times
(b) Inventory plan
(c) Production schedule
(d) Materials procurement schedule
(e) Raw materials warehousing schedule.

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84. In human resource planning, which of the following is not an element in ‘resource demand forecasting’? <Answer
>
(a) Turnover rate
(b) Strategic plans
(c) Demographics
(d) Production schedules
(e) Relocations.
85. Non-directive counseling is one of the means to bring about effective communication. In non-directive <Answer
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) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above.
86. Strategic control involves monitoring critical environmental factors to ensure that strategic plans are <Answer
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) Top-level
(b) Middle-level
(c) Lower-level
(d) Foremen
(e) Trainee.
87. Which of the following is the process of formulating future plans for the organization for a given period of <Answer
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 <Answer
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 <Answer
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 <Answer
of management would information about environmental trends be most appropriate? >

(a) Top management

(b) Middle management
(c) First-line management
(d) Lower-level management
(e) 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 <Answer
increasing the efficiency and productivity of managers and office workers through document and message >
processing?
(a) Transaction processing system
(b) Decision support system
(c) Office automation system
(d) Executive support system
(e) Line support system.
92. Information that originates outside the organization is known as external information. Which of the <Answer
following is an example 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.
93. In an information system, which of the following refers to the physical equipment that is used to input, <Answer
store and retrieve data? >

(a) Hardware
(b) Software
(c) Data
(d) People
(e) Procedures.
94. Which of the following refers to any event or activity that involves the interaction of the organization with <Answer
external agents? >

(a) Transaction
(b) Information
(c) Data processing
(d) Software
(e) Communication.
95. If an employee of a multinational company believes that since he is a citizen of the host country, he would <Answer
be best suited to manage the company, then his orientation toward international business can be expressed >
as
(a) Ethnocentric
(b) Polycentric
(c) Regiocentric
(d) Gendercentric
(e) Geocentric.
96. According to the American style of management, which of the following are the characteristics of the <Answer
>
planning function?
I. Short-term orientation.
II. Collective decision-making.
III. Decisions initiated at the top, flowing down.
IV. Slow decision-making.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (II) and (IV) above
(d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
97. According to which of the following Japanese management practices are tasks not assigned to an <Answer
>
individual, instead they are assigned to a group?
(a) Lifetime employment
(b) Seniority system
(c) Continuous training
(d) Emphasis on group work
(e) Decision making.

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98. In which of the following orientations toward international business, does a firm analyze the needs of <Answer
customers worldwide and then adopts standardized practices for all the markets it serves? >

(a) Ethnocentric
(b) Polycentric
(c) Geocentric
(d) Regiocentric
(e) Unicentric.
99. According to William Ouchi, organizations that exhibit a style of management that combines traits of <Answer
Japanese and American companies are called >

(a) Theory X organizations

(b) Theory Y organizations
(c) Theory Z organizations
(d) Modern organizations
(e) Supportive organizations.
100 In Japanese management, which of the following refers to decision-making by consensus? <Answer
>
.
(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 < TOP
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.
2. D External recruitment will lead to job dissatisfaction among the potential internal < TOP
candidates of the organization.

3. C Reference check involves furnishing information of persons who can assure the < TOP
recruiting firm that the information given by the applicant is reliable.

4. E A job description is a written statement of what a jobholder does, how it's done, and < TOP
why it's done.
Hence, option (e) is correct.
5. B Training is defined as a planned effort to improve the performance of the employee < TOP
in his area of work.

6. A Succession planning provides the organization with a well qualified pool of < TOP
individuals from which top-level and middle-level managers can be selected in
future.
7. D Promotions are not an external source to obtain the job candidate for the vacant < TOP
position.
Options (a), (b), (c) and (e) are external sources of recruitment.

15
8. C The formal form candidates are usually required to complete is referred to as the < TOP
application blank.

9. D The interview, as a selection device, is most useful for selecting persons to < TOP
managerial jobs, such as the job of a Bank Manager.
Hence, option (d) is correct.
10. A If a training event includes learning to be a better listener or learning to interact < TOP
effectively with coworkers, it is attempting to teach Interpersonal skills.
Hence, option (a) is correct.
11. E The following are control techniques used in a formal appraisal system: < TOP

 Standards.

Information.

Corrective action.
12. B 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.
13. E Enhancing superior-subordinate interpersonal relationship is not an objective of a < TOP
performance appraisal.

14. A As the future cannot be predicted with absolute accuracy, career plans are developed < TOP
in an environment of uncertainty. Hence, individuals should develop contingency plans
based on alternate assumptions.
15. E Graphic rating scales are performance appraisal forms listing a number of factors, < TOP
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.
16. B A performance appraisal technique that makes use of feedback from supervisors, < TOP
subordinates and co-workers, is known as 360-degree appraisal.
Hence, option (b) is correct.
17. D Directing negative feedback toward behavior that is uncontrollable, is not a useful < TOP
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.

16
18. C Manager assesses performance of an employee among a group and advises the < TOP
employee the specific expectations of management on day to day basis. It is setting
standards for that employee. Option(c) is correct answer.
19. A Luck plays an important role in the performance of an individual is a weakness of < TOP
appraisal against verifiable objectives.

20. C BARS contain set of specific behaviors that represent gradation of performance used < TOP
as common reference points for rating employees. Ratings on job performance and
evaluation jointly by manager and sub-ordinates.
Option (c) is correct answer.
21. A In problem solving technique, the two parties involved in the conflict identify and < TOP
correct the source of their conflict.

22. B Manipulation strategy of overcoming resistance to change, usually involves < TOP
selectively providing information about a change so that it appears more attractive or
necessary to potential resisters.
Hence, option (b) is correct.
23. A Organizational development relies on the use of interventions, which are change < TOP
strategies developed and initiated with the help of a change agent.
Hence, option (a) is correct.
24. B Structural inertia is an organization’s built-in mechanism to produce stability. e.g., < TOP
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.
25. D Process Consultation intervention technique is concerned with the interpersonal < TOP
relations and dynamics operating in work groups.
Hence, option (d) is correct.
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 < TOP
referred to as a cross-functional team.
Hence, option (b) is correct.
28. C Creativity is the ability to develop new ideas and is a function of knowledge, < TOP
imagination, and evaluation.

29. C A theory Y manager assumes that employees view work as being as natural as rest or < TOP
play; they will exercise self-direction if they are committed to the objectives; and
they can learn to accept and even seek responsibility.
30. B Physiological assumptions are not assumptions on which Edgar H. Schein based his < TOP
study of human behavior.

31. B The intuition stage of the creative process links the unconscious state of mind with < TOP
the conscious state.

32. E The phenomenological view proposes that people are unpredictable, subjective, < TOP
relative and unique in nature.

33. B Thomas has needs that are highly relevant to him. These needs include a sense of < TOP
belonging, friendships, and supervisory support. Thomas's needs reflect social needs
in Maslow's hierarchy of needs theory.
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 < TOP
job enrichment.

36. A If employees perceive their inputs-outcomes ratio to be equal to the relevant others < TOP
that they compare themselves to, then a state of equity exists.

37. C In Vroom’s expectancy theory, instrumentality refers to the probability that < TOP
successful performance will lead to certain outcomes.

38. E Existence need in ERG theory corresponds to physiological needs in Maslow’s need < TOP
hierarchy theory.

39. A Salary, working conditions, and security are examples of hygiene factors in < TOP
Herzberg’s theory.

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 * < TOP
instrumentality.

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, < TOP
participative, and achievement-oriented leadership.

44. C In Authority-obedience management style, there is high concern for production but < TOP
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.
45. B According to Kurt Lewin, Laissez-faire leadership style is ineffective on every < TOP
performance criterion.

46. D Job-centered style might work best in the given situation, where Saila can divide < TOP
work into routine tasks and as a leader can closely monitor workers to ensure
prescribed methods are followed and productivity standards met.
47. E Boss-centered and subordinate-centered are the approaches at the two ends of this < TOP
continuum.

48. B Fiedler's position power is referred to the degree of influence a leader has over power < TOP
variables such as hiring, firing, discipline, promotions, and salary increases.

49. A According to the University of Michigan studies, leaders who were employee- < TOP
oriented were associated with higher group productivity and higher job satisfaction.

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 < TOP
the ability to inspire people.
Hence, option (d) is correct.
52. D A manager who constantly shows concerns for the needs of his employees is a < TOP
supportive leader, according to House.

53. B Hersey and Blanchard define “readiness” as the extent to which followers have the < TOP
ability and the willingness to accomplish a specific task.

18
54. A Organization-man management is also referred to as Middle-of-the-road < TOP
management.

55. B Non-verbal communication includes body posture, eye contact, distance from the < TOP
receiver, voice inflection, rate of speech, gesture, silence etc.
Hence, option (b) is correct.
56. A Most decisions in an organization flow through the organization structure level by < TOP
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.
57. B A message that is generated by the receiver in response to the sender’s original < TOP
message is known as feedback. So, (b) is correct answer.

58. B Communication is best described as the process of sharing information. < TOP

59. D The following are the gateways to effective communication: < TOP

 Interpersonal trust
 Effective listening
 Proper feedback
 Understanding non-verbal cues
 Non-directive counseling.
60. E Oral downward communication may take place by means of instructions, meetings, < TOP
telephone, loudspeakers and even grapevine. Memorandum is the means for written
downward communication.
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 < TOP
operation, can automatically monitor the situation. All other control systems may rely
on human discretion. So, (d) is the correct answer.
63. E Management by walking around (MBWA) is based primarily on personal < TOP
observation.
Hence, option (e) is correct.
64. C Lower level managers concerned with schedules, budgets, rules and specific < TOP
individual output requirements makes use of operational control.

65. C Control systems should be rigid is not the characteristic of effective control systems. < TOP
In fact, control systems should be flexible enough to accommodate change.

66. A Multiple control systems use two or more control processes and involve several < TOP
strategic control points.

67. D The following are financial statements used by managers, creditors, investment < TOP
analysts, shareholders, unions and other stakeholders to evaluate the performance of
the organization:
 Balance sheet.

Income statement.

Ratio analysis is a technique to exercise financial control and not a financial

statement.
68. A Liquidity refers to an organization’s ability to convert its assets into cash to meet < TOP
current financial needs.

69. B The budgetary control system helps a manager to match the actual and the planned < TOP
revenues and costs of various organizational activities.

19
70. B Leverage or debt management ratios indicate the company’s ability to pay long-term < TOP
debts.

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 < TOP
organization in managing its assets.

75. C Emphasis on the logical physical presentation of a problem in the form of a model is < TOP
a characteristic of operations research and not a limitation

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 < TOP
customer is called stock-out cost.

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 < TOP
like men, materials, money (capital), information and energy into a specified set of
output elements in the form of finished products or services.
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, < TOP
investigate and correct quality problems.
Hence, option (d) is correct.
82. C The Program Evaluation and Review Technique (PERT) is especially useful in < TOP
scheduling Projects.
Hence, option (c) is correct.
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 < TOP
forecasting.

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 < TOP
period of time (usually a year) and estimating the amount of resources required to
carry out the planned activities.
88. D Just-in time inventory control approach stipulates that materials should arrive just as < TOP
they are needed in the production process.

89. E The information attribute which is prepared or presented to users often enough to be < TOP
>
up-to-date is known as information frequency.
90. A The level of management for which information about environmental trends would < TOP
be most appropriate is top management. >

Hence, option (a) is correct.

91. C An office automation system aims at facilitating communication and increasing the < TOP
>
efficiency and productivity of managers and office workers through document and
message processing.
92. C Descriptions of customer satisfaction with products and services are examples of < TOP
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.
93. A In an information system, hardware refers to the physical equipment that is used to < TOP
input, store and retrieve data. >

94. A A transaction refers to any event or activity that involves the interaction of the < TOP
organization with external. >

95. B Polycentric orientation is based on the notion that it is best to give foreign < TOP
>
subsidiaries, staffed by local nationals, a great deal of managerial freedom.
Hence, option (b) is correct.
96. B Statements (I) and (III) are the characteristics of the American planning function. < TOP
Statement (II) and (IV) are the characteristics of the Japanese planning function. >

97. D In most Japanese organizations, Emphasis on group work is a task is not assigned to < TOP
>
an individual, instead several tasks are assigned to a group, which consists of a small
number of people.
98. C In the geocentric orientation toward international business, a firm analyzes the needs < TOP
of customers worldwide and then adopts standardized practices for all the markets it >
serves.
99. C Organizations that exhibit a style of management that combines traits of Japanese and < TOP
>
American companies are called theory Z organizations.
100. A In Japanese management, ringi refers to decision-making by consensus. < TOP
>

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< TOP OF THE DOCUMENT >

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