Question Paper

Introduction to Management-II (MB112): April 2006

• Answer all questions.
• Marks are indicated against each question.

1. According to the University of Michigan studies, leaders who were associated with higher group < Answer >
productivity and higher job satisfaction were
(a) Employee oriented (b) Initiating structure oriented
(c) Consideration oriented (d) Production-oriented
(e) Transformational.
2. Which of the following is not an upward communication? < Answer >

(a) Cost accounting report (b) Purchase order summary (c) Sales report
(d) Corporate policy statement (e) Production report.
3. Motivation theories can be broadly classified into two main categories by looking at their major areas of < Answer >
thrust viz., content theories and process theories. Content theories of motivation focus on
(a) The level of satisfaction employees have with their job
(b) Achieving one’s potential and self-fulfillment
(c) Equitable distribution of tasks
(d) Analysing what motivates people
(e) The dynamics of motivation and how the motivation process takes place.
4. Managers who make foreign investments believe that such investments will < Answer >

I. Reduce or eliminate high transportation costs.

II. Allow participation in the rapid expansion of a market abroad.
III. Provide foreign technical, design, and marketing skills.
IV. Earn higher profits.
(a) Only (II) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
5. Direct control is the control that is exercised after the deviations from plans have occurred. Which of the < Answer >
following is not the 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.
6. The characteristics of the individual who should be hired for the job are indicated by the < Answer >

(a) Job analysis (b) Job description (c) Job specification

(d) Job review (e) Job identification.
7. A PERT network depicts the sequence of activities needed to complete a project and the < Answer >

(a) Amount of money needed for each activity

(b) Time or costs associated with each activity
(c) Step of each activity
(d) Schedule of each activity
(e) Estimated day of each activity.
8. 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 explains that information is available
when it is needed without excessive delay pertains to
(a) Information accuracy (b) Information timeliness
(c) Information time horizon (d) Information completeness
(e) Information frequency.
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9. Senthil is a salesperson for Cloud 9 Corporation's Chennai office. If the salespersons meet their sales < Answer >
goals for the month, they are given an all-expense-paid trip to a Salgaonkar Club football game. Football
is not one of Chennai's favorite sports, and the Salgaonkar Club is definitely not Senthil's favorite team.
Which component of Vroom’s expectancy theory influences Senthil’s performance?
(a) Effort-performance linkage (b) Instrumentality (c) Valence
(d) Performance-reward linkage (e) Effort-reward linkage.
10. Which of the following does not constitute a set of decisions that are included in an operations < Answer >
management program?
(a) Capacity decisions (b) Facilities decisions (c) Quality decisions
(d) Materials/inventory decisions (e) Budgeting decisions.
11. 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.
12. Evaluation of the effectiveness and efficiency of various systems within an organization is referred to as < Answer >

(a) Social audit (b) Ethical audit (c) Quality control

(d) Management audit (e) Functional audit.
13. Which of the following is a specialized appraisal system wherein a high powered panel constituted by < Answer >
senior persons in the organization appraises employees by identifying their best capabilities or skills and
training them further?
(a) 360 degree appraisal (b) Behaviorally anchored rating scales
(c) Formal appraisal (d) Peer assessment
(e) Assessment development centers.
14. Managers need to consider the type of control system that they wish to use. Which control system helps < Answer >
managers to regulate and supply inputs to obtain maximum production without any interruption?
(a) Budgetary control (b) Financial control (c) Quality control
(d) Inventory control (e) Clan control.
15. Lead Management had given Saila a very tight deadline and she wanted to get the job done as quickly as < Answer >
possible. Saila was well versed with the job to be completed, 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) Laissez-faire
(d) Job-centered (e) Autocratic.
16. Functional job analysis is a widely used systematic job analysis approach. Which of the following < Answer >
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.
17. Information overload is a barrier to communication. Employees may react to information overload by < Answer >

I. Resorting to impersonal communication.

II. Making processing errors.
III. Disregarding certain information.
IV. Delaying information processing.
(a) Both (I) and (II) above (b) Both (I) and (IV) above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.

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18. Which of the following refers to the way data should be verified for accuracy and completeness? < Answer >

(a) Data management (b) Data validation (c) Data security

(d) Data integrity (e) Data sufficiency.
19. The dual nature of leader behaviors, focusing on the work to be done and focusing on the employees, is < Answer >
a key characteristic of which of the following?
(a) Fiedler's contingency model (b) The path-goal theory
(c) Situational leadership theory (d) The Ohio State studies
(e) University of Michigan studies.
20. Which of the following variables is at the heart of Fiedler's Contingency Theory? < Answer >

(a) Least preferred leader (b) Least preferred task

(c) Least preferred company (d) Least preferred position
(e) Least preferred co-worker.
21. Information needs vary by level of activity and also by levels in the managerial hierarchy. For which < Answer >
level of management would information about environmental trends be most appropriate?
(a) Top-level management (b) Middle-level management
(c) First-line management (d) Lower-level management
(e) All levels of management.
22. Which of the following statements is/are true with respect to content theories of motivation? < Answer >

I. Maslow’s self-actualization and esteem needs correspond to Herzberg’s motivators.

II. McClelland’s need for achievement corresponds to Alderfer’s relatedness needs.
III. Maslow’s esteem needs correspond to Alderfer’s need for power.
IV. Herzber’s hygiene factors correspond to McClelland’s need for affiliation, Maslow’s social needs
and Alderfer’s existence needs.
(a) Only (I) above (b) Both (I) and (III) above
(c) Both (II) and (IV) above (d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
23. Potential pitfall(s) of using budgets as control tools include < Answer >

I. Placing too much emphasis on relatively insignificant organizational expenses.

II. Changing budgets periodically.
III. Increasing budgeted expenses year after year without adequate information.
IV. Having inexperienced people on the budget committees.
(a) Only (II) above (b) Both (I) and (IV) above
(c) Both (I) and (III) above. (d) (I), (II), and (III) above
(e) All (I), (II), (III) and (IV) above.
24. With respect to creativity in organizations, which of the following is/are assumption(s) of the human < Answer >
relations model of management?
I. People want to contribute to meaningful goals.
II. Most people can exercise far more creative, responsible self-direction and self-control than their
present jobs demand.
III. People desire to belong and to be recognized as individuals.
IV. What workers do is less important than what they earn for doing it.
(a) Only (III) above (b) Only (IV) above
(c) Both (I) and (II) above (d) Both (III) and (IV) above
(e) (I), (II) and (III) above.
25. Which of the following is/are problem(s) with Herzberg’s theory, as spelt out by Edwin Locke? < Answer >

I. The theory maximizes differences across people.

II. The original classification and statements bear some confusion.
III. The arguments are characterized by illogical inconsistencies.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) Both (II) and (III) above (e) All (I), (II) and (III) above.
26. Which of the following statements is/are true about feedback control? < Answer >

I. It identifies deviations that went undetected earlier.

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 II. It is also referred to as yes-no control.
III. It helps in revising existing plans and formulating new ones.
IV. It provides information that facilitates the planning process.
(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.
27. In a meeting, when a senior manager’s communication gives ambiguous meanings and generates < Answer >
different responses in different people, then the distortion is called
(a) Unclarified assumption (b) Premature evaluation (c) Semantics
(d) Insufficient adjustment (e) Mental predisposition.
28. Which of the following is not true with respect to the function of ‘leading’ in the Japanese management < Answer >
style?
(a) Leader acts as a decision maker and head of the group
(b) It is characterized by the paternalistic style of management
(c) It avoids confrontation
(d) Communication is bottom-up
(e) It is characterized by common values facilitating cooperation.
29. Which of the following actions does an organization undertake, if manpower demand is low and < Answer >
manpower supply is high?
I. Outplacement.
II. Layoffs.
III. Promotions.
IV. Training and development.
(a) Only (II) above (b) Both (I), and (II) above
(c) Both (III) and (IV) above (d) (I), (II) and (IV) above
(e) (I), (III) and (IV) above.
30. 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.
31. Which of the following is a computerized database containing basic information about each employee < Answer >
that can be used to assess the likely availability of individuals for meeting current and future human
resource needs?
(a) Manpower inventory (b) Replacement planning
(c) Succession planning (d) Skills inventory
(e) Inventory record file.
32. Manager inventory chart is used in replacement planning of human resource management in an < Answer >
organization. Which of the following is not a disadvantage of the manager inventory chart?
(a) A fair assessment of the individual cannot be made using the data on the chart
(b) It does not show the position to which a manager may be promoted
(c) Updating the chart is time consuming and requires a lot of effort
(d) Top-level managers may be reluctant to share their charts with other top level managers
(e) Managers who do not perform satisfactorily cannot be identified.
33. Which of the following is not true about standards? < Answer >

(a) They constitute the criteria on which employees’ performance and employees’ behavior can be
evaluated
(b) They help the managers stimulate the need to watch every step in the execution of plans
(c) They are incorporated into goals during the planning process
(d) Sometimes standards need to be developed during the control process
(e) They are expressed numerically.
34. Organizations get accustomed to the processes in place and consequently are unwilling to make any < Answer >
changes. Which source of organizational resistance to change does this represent?
(a) Limited focus of change (b) Threat to expertise
(c) Structural inertia (d) Threat to established resource allocation

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 (e) Group inertia.
35. A career strategy should be designed to overcome weaknesses and utilize strengths so as to take < Answer >
advantage of career opportunities. There are various steps in formulating a career strategy. Which of the
following steps will 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.
36. Which of the following is the process of perceiving all the attributes and characteristics of another < Answer >
person on the basis of knowledge of a single trait of that person?
(a) Stereotype (b) Halo Effect (c) Attribute
(d) Expectancy (e) Hawthorne Effect.
37. Productivity can be measured in two ways: total productivity and partial productivity. In both the cases < Answer >
it is expressed as a ratio of outputs to inputs. Which one of the following inputs is common to both the
measures?
(a) Capital (b) Energy (c) Materials (d) Labor (e) Technology.
38. Fred E. Fiedler and his associates at the University of Illinois, suggested a very famous leadership < Answer >
model, which was based on the premise that a certain leadership style would be
(a) More effective than concern for production
(b) Effective, dependent on the readiness of followers
(c) Most effective in different types of situations
(d) Less effective than the behavioral style models
(e) Effective, depending on the degree of participation by subordinates in the decision-making process.
39. Performance appraisal involves the formal evaluation of an individual’s job performance. Which of the < Answer >
following guidelines is least likely to improve the effectiveness of the appraisal process?
(a) Stress both performance in the position the individual holds and the success with which the
individual is attaining organizational objectives
(b) Emphasize the evaluator's impression of the individual's work habits
(c) Ensure that the appraisal is acceptable to both the evaluator and the evaluated
(d) Ensure that the appraisal provides a base for improving individuals' productivity within the
organization by making them better equipped to produce
(e) Determine standards of effective performance.
40. In non-directive counseling, a manager should < Answer >

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.
41. According to the Tannenbaum and Schmidt model of leadership, which of the following statements < Answer >
describes more of a boss centered leadership?
I. A manager more likely asks the group to make a decision.
II. A manager permits subordinates to function within limits.
III. A manager more likely "sells" the decision.
IV. A manager presents ideas and invites questions.
(a) Only (III) above (b) Both (I) and (II) above
(c) Both (II) and (III) above (d) Both (III) and (IV) above
(e) (I), (II) and (IV) above.
42. Which of the following Japanese management practices implies that promotion and wage increases are < Answer >
based on an employee’s length of service and not on job performance?
(a) Shushin kayo (b) Kaisha (c) Henko
(d) Kacho (e) Ringi.

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43. In which of the following situations can innovation take place? < Answer >

I. Realization of congruity between what is assumed and what the real situation is.
II. Demographic changes.
III. The need to improve a task of a process.
IV. Changes in meaning or in the way things are perceived.
(a) Only (III) above (b) Both (I) and (II) above
(c) Both (II) and (IV) above (d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
44. Which of the following are reasons, why productivity of knowledge workers is more difficult to measure < Answer >
than productivity of industrial workers?
I. The quality of a knowledge worker’s output cannot be determined immediately.
II. The output of a knowledge worker often contributes only indirectly to the achievement of the end-
result.
III. Upgraded skills of knowledge workers due to rapid technological advances make output
measurement difficult.
IV. Knowledge workers often assist other organizational units and this contribution is difficult to
measure.

(a) Both (I) and (II) above (b) Both (III) and (IV) above
(c) (I), (II) and (IV) above (d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
45. Which of the following control systems do low-level managers more frequently use? < Answer >

I. Financial control system.

II. Budgetary control system.
III. Quality control system.
IV. Inventory control system.
(a) Both (I) and (II) above (b) Both (II) and (III) above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
46. Which of the following intervention techniques is used to help organization members enhance their own < Answer >
effectiveness by showing them, how to evaluate and make appropriate changes in task design, work
method and organization structure?
(a) Technostructural Activities (b) Skill Development (c) Team Building
(d) Process Consultation (e) Survey Feedback.
47. All managers need adequate and effective control systems to help them make sure that actual < Answer >
performance more or less conforms to planned performance. Which of the following is not a
characteristic of effective control systems?
(a) They should reflect plans, positions and structure
(b) They should be flexible
(c) They should be cost-effective
(d) They should provide accurate information
(e) They should have a single criterion for measuring performance.
48. During which stage of the basic control process model, the manager should have strong diagnostic skills < Answer >
and a certain level of expertise?
(a) Establish standards
(b) Measure performance
(c) Analysis of causes of deviation
(d) Compare performance against standards
(e) Evaluate results and take necessary correction action.
49. Various selection devices are used to choose candidates who best meet the qualifications and have the < Answer >
greatest aptitude for the job. Asking a candidate for an automotive mechanic’s position, to assemble and
disassemble part of an engine motor would be an example of what kind of selection device?
(a) Psychological test (b) Performance test (c) Personality test
(d) Intelligence test (e) Attitude test.

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50. Which of the following are advantages of an internal recruitment? < Answer >

I. Training costs will be low.

II. Reliable information is available about candidates.
III. Candidates may have broader experience.
IV. Recruitment costs are low.
V. Employee morale is increased due to upward mobility opportunities.
(a) (I), (II) and (III) above (b) (I), (III) and (V) above
(c) (I), (IV) and (V) above (d) (II), (III) and (IV) above
(e) (II), (IV) and (V) above.
51. Mr. Arbind, the CEO of E.E.C. Inc. has identified the benefits that a company can derive by practicing < Answer >
job rotation. But he is unable to find positions for job rotation for his managers and trainees. Which of
the following can Arbind identify as suitable position(s) for job rotation?
I. Non-supervisory.
II. Observation.
III. Top-level management position.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) Both (I) and (III) above (e) Both (I) and (II) above.
52. According to House, a leader that sets challenging goals and expects employees to perform at their < Answer >
highest level is using which of the following leadership styles?
(a) Directive (b) Achievement-oriented (c) Participative
(d) Supportive (e) Transformational.
53. Which of the following consists of wages paid directly for time worked or the number of units produced, < Answer >
as well as more indirect benefits that employees receive as part of their employment relationships with
an organization?
(a) Remuneration (b) Fringe benefit (c) Payment
(d) Compensation (e) Incentive.
54. A funds flow statement < Answer >

(a) Is a source of funds statement

(b) Is a statement of use of funds
(c) A statement of sources and uses of funds for a definite period between two dates
(d) Summarizes the financial results of a company’s operations over a specified time period
(e) Shows the overall financial worth of the organization at a specific point of time.
55. Which of the following is not a strategy for companies to remain continuously innovative? < Answer >

(a) Do not resort to outsourcing of activites, instead develop them in-house

(b) Make everyone accountable
(c) Replace rigid procedures with clear business activities
(d) Challenge employees to compete
(e) Reward employees for innovation exhibited.
56. In which of the following methods of overcoming resistance to change, is a leader or an influential < Answer >
person among the potential resisters given a seemingly desirable role in the change process in order to
gain the leader’s cooperation?
(a) Facilitation and support (b) Negotiation and agreement (c) Manipulation
(d) Explicit and implicit coercion (e) Cooptation.
57. In Blake and Mouton’s managerial grid, which of the following styles of management minimum effort is < Answer >
exerted to complete work and there is dependence on previous practices, to keep the organization going?
(a) Team management (b) Authority-obedience management
(c) Country Club management (d) Impoverished management
(e) Organization-man management.
58. In addition to operations research, there are other techniques for improving productivity in an < Answer >
organization. One such technique is ‘quality circle’. The term ‘quality circle’ refers to
(a) A work group that meets regularly to discuss, investigate and correct quality problems
(b) A stage in the group development

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 (c) A temporary group to establish a specific task
(d) Acceptable standards shared by a group’s members
(e) An organization’s long-term commitment to the continuous improvement of quality.
59. Which of the following types of leaders can be perceived as agents of radical change rather than as < Answer >
caretakers of the status quo?
(a) Charismatic (b) Transactional (c) Autocratic
(d) Democratic (e) Visionary.
60. Which of the following is not a limitation of group discussion techniques to enhance creativity? < Answer >

(a) Members of a group may pursue only one idea, ignoring other alternatives
(b) Members may hesitate to express their idea before the group due to fear of being ridiculed
(c) Lower level managers may not be able to express their views openly in presence of top-level
managers
(d) The need to arrive at a consensus may be stronger than the need to explore creativity
(e) Creativity is an individual phenomenon and cannot be discovered through groups.
61. 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.
62. Vikas Tripathi tore up his contract and threw it on his desk. What caused Vikas to act this way? He just < Answer >
learned that a new employee was hired in an entry-level position and this new employee was to earn 30
percent more than Vikas. Which of the following process theories of motivation was developed to
explain Vikas’s reaction to the situation he faced?
(a) Social cognition theory (b) Expectancy theory (c) Equity theory
(d) Goal-setting Theory (e) Porter Lawler model.
63. Which of the following statements is false concerning Vroom's Expectancy Theory? < Answer >

(a) It is based on self-interest where each employee seeks to maximize personal satisfaction
(b) Managers must understand which rewards employees will positively value
(c) The employee must see the connection between performance and rewards
(d) The theory is concerned with reality, not perceptions
(e) There are two crucial linkages among effort-performance-reward in this theory.
64. In the US Management style, the staffing function is characterised by < Answer >

I. Rapid advancement desired.

II. Loyalty to the profession.
III. Slow promotion through ranks.
IV. Appraisal of short-term results.
V. Promotions based on multiple criteria.
(a) (I), (II) and (III) above (b) (I), (II) and (IV) above
(c) (I), (II) and (V) above (d) (I), (III) and (IV) above
(e) (II), (III) and (IV) above.
65. If an employee of a multinational company indicates that she believes that since she is a citizen of the < Answer >
host country, she would be best suited to manage the company, then her attitude toward the operation of
the organization would most likely be classified as
(a) Ethnocentric attitude (b) Regiocentric attitude
(c) Polycentric attitude (d) Gendercentric attitude
(e) Geocentric attitude.
66. In the operations research methodology, which of the following steps precedes the others? < Answer >

(a) Testing the model (b) Deriving a solution from the model
(c) Putting the solution into effect (d) Mathematical model construction
(e) Providing controls for the model.
67. In which of the following responsibility centers does the control system examine the role of assets in < Answer >
generating profit apart from measuring the monetary value of inputs and outputs?

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 (a) Profit centers (b) Investment centers (c) Revenue centers
(d) Standard cost centers (e) Discretionary expense centers.
68. A leader who involves employees in decision-making, delegates authority, and gathers inputs from < Answer >
employees, but makes the final decision himself is using which style of leadership?
(a) Democratic- consultative (b) Laissez-faire (c) Autocratic
(d) Democratic- participative (e) Middle of the road.
69. Which of the following statements is/are true with respect to debt management ratios? < Answer >

I. They indicate what percentage of the organization’s assets are financed by creditors.
II. They are also called leverage ratios.
III. A higher percentage indicates that creditors have lesser claim over the assets of the organization
than the owners.
(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.
70. Performance rating can either be behavior-oriented or results-oriented. Within the behavior-oriented < Answer >
category, two assessment means are Graphic Rating Scales and Behaviorally Anchored Rating Scales
(BARS). Which of the following is not true with regard to BARS?
(a) BARS minimize subjective interpretation inherent in graphic rating scales
(b) BARS make use of ‘anchors’ (common reference points of performance)
(c) BARS concentrate on job-specific behaviors and hence is highly meaningful
(d) BARS are a simple and cost-effective rating method
(e) BARS can be applied in organizations where a large number of people perform similar jobs.
71. Loss of sale and loss of customer goodwill are examples of < Answer >

(a) Carrying cost (b) Item cost (c) Ordering cost

(d) Stock-out cost (e) Superfluous cost.
72. Which of the following is not an application of office automation systems? < Answer >

(a) Voice mail (b) Internet (c) Groupware

(d) Teleconferencing (e) Graphics.
73. McClelland highlighted the importance of three basic needs namely need for achievement, need for < Answer >
affiliation and need for power. Which of the following is/are characteristics exhibited by affiliation-
oriented people?
I. They enjoy a sense of intimacy and understanding.
II. They console and help those in trouble.
III. They suffer pain when rejected.
IV. They have an intense desire for success.
(a) Only (II) above (b) Both (I) and (II) above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) (I), (III) and (IV) above.
74. According to Herzberg’s motivation-hygiene theory, which of the following responses are hygiene < Answer >
factors?
(a) Personal life, security, salary and recognition
(b) Advancement, salary, status, company policy
(c) Relationship with peers, status, supervision and security
(d) Working conditions, relationship with subordinates, supervision and work itself
(e) Responsibility, salary, status, company policy.
75. According to Hersey and Blanchard, a high task-low relationship situation would require which of the < Answer >
following leadership styles?
(a) Delegating (b) Directing (c) Participating (d) Selling (e) Telling.
76. Which of the following are advantages of a ‘geographical information system?’ < Answer >

I. Maps can be prepared economically and updated with ease.

II. Maps are automatically supplemented with statistical analysis.
III. Maps can be generalized to suit all needs of users.
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 IV. Maps use a unidimensional format.
(a) Both (I) and (II) above (c) Both (I) and (III) above
(d) Both (III) and (IV) above (d) (I), (II) and (IV) above
(e) (I), (III) and (IV) above.
77. Which of the following is not an input in the ‘distribution logistics model?’ < Answer >

(a) Manufacturing costs (b) Procurement lead times (c) Sales forecasts
(d) Customer service standards (e) Inventory plan.
78. Which of the following information systems has outputs in the form of projections and responses to < Answer >
queries?
(a) Transaction processing (b) Office automation (c) Decision support
(d) Executive support (e) Management information.
79. Which of the following is/are advantage(s) of preventive control? < Answer >

I. Greater accuracy at work is achieved.

II. Corrective actions improve the processes and make them more effective.
III. It discourages managers implementing controls through self exercised control.
(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.
80. Hazard analysis and Critical Control Point Method (HACCP) is used in the food manufacturing industry < Answer >
to identify and prevent microbial and other germs from causing harm to food. With respect to HACCP,
which of the following principles involves identifying the maximum or minimum level at which the
food safety hazard has to be controlled to reduce it to an acceptable level?
(a) Hazard analysis (b) Identifying control points (c) Critical limits
(d) Establish corrective actions (e) Record keeping.
81. Which leadership theory, Vinod Sharma is said to be using when he determines the effectiveness of < Answer >
decisions as measured by group performance with respect to quality of the decision and its acceptance?
(a) House's Path-Goal Theory
(b) Vroom and Yetton's Normative Decision Model
(c) Blake and Mouton's Managerial Grid
(d) Hersey and Blanchard's Situational Leadership Model
(e) Fiedler’s Contingency Theory.
82. Most of the conflict resolution techniques either focus on interpersonal relationships or structural < Answer >
changes. Which of the following conflict resolution techniques implies emphasizing the areas of
agreement and common goals and de-emphasizing disagreements?
(a) Problem Solving (b) Forcing (c) Smoothing
(d) Compromise (e) Avoidance.
83 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.
84. Which of the following is/are claim(s) that support self-appraisal? < Answer >

I. It increases personal commitment of employees.

II. It improves employees understanding of job performance.
III. It provides a great deal of information about the appraisee.

(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.
85. Lyman W. Porter and Edward E. Lawler III developed the expanded expectancy theory model. Which of < Answer >
the following is not true with regard to the Porter and Lawler model of motivation?
(a) It’s built on Vroom’s expectancy theory
(b) It means motivation is not a simple cause-and-effect matter
(c) It assumes that satisfaction leads to performance

10
 (d) It emphasizes careful assessment of the reward structure
(e) It assumes that performance leads to intrinsic as well as extrinsic rewards.
86. Which of the following is included in the set of situational factors for effective leadership identified in < Answer >
path-goal theory?
(a) Organization structure (b) Formal authority system (c) Work group
(d) Self confidence (e) Bureaucracy.
87. Kurt Lewin, a researcher at the University of Iowa, and his colleagues, proposed three leadership styles. < Answer >
viz., autocratic, democratic and laissez-faire. Which of the following statements is not true regarding
these three leadership styles?
(a) A democratic leader actively tries to solicit the input of subordinates.
(b) A laissez-faire leader avoids making decisions
(c) An autocratic leader will always have low performance from employees
(d) A democratic leader usually requires a consensus before reaching a decision
(e) Autocratic leaders make decisions on their own.
88. Which of the following statements is not true? < Answer >

(a) Steering controls are used following completion of activity

(b) Preventive controls are used prior to the start of activity and feedback controls follow completion
of activity
(c) Concurrent controls are used during the performance of activity and feedforward controls prior to
start of activity
(d) Quality control tests of output are an example of concurrent control
(e) Comparison of employee input per hour with established standards is an example of steering
control.
< Answer >
89. Which of the following statements about revenue centers is/are true?
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 (I) above (b) Only (II) above
(c) Both (I) and (III) above (d) Both (II) and (III) above
(e) All (I), (II) and (III) above.
< Answer >
90. Which of the following is not true about a comprehensive interview?
(a) The unstructured interview yields more valid data than a structured interview
(b) The structured interview is useful if a large number of candidates have to be interviewed
(c) In an unstructured interview the candidate is allowed to talk freely on general questions
(d) Structured interviews are mechanical and may convey disinterest to the candidate
(e) Structured interviews do not allow the interviewer to probe interesting or unusual issues that may
arise during the interview.
< Answer >
91. Managers often have to choose the best alternative from a given set of alternatives. What is the
technique that managers use for selecting an optimum combination of factors from a series of
interrelated alternatives?
(a) Economic order quantity (b) Linear programming (c) JIT system
(d) Kanban (e) Distribution logistics.
< Answer >
92. Managers using which of the following techniques most effectively acquire problem-solving skills?
(a) A mentor relationship (b) Planned Progression (c) Job rotation
(d) Simulation exercises (e) Classroom lectures.
< Answer >
93. Which stage of the creative process links the unconscious state of mind with the conscious state?
(a) Unconscious scanning (b) Intuition (c) Insight
(d) Logical formulation (e) Decision.
< Answer >
94. Which of the following controls is based on the idea that most of the negative deviations from standards
can be overcome by applying the fundamentals of management?
(a) Preventive control (b) Cybernetic control (c) Direct control
(d) Steering control (e) Yes-no control.
11
 < Answer >
95. Which of the following are characteristics of the planning process usually adopted in the Japanese
management style?
I. Long-term orientation.
II. Individual decision-making.
III. Decisions flowing from bottom to top and back.
IV. Decisions initiated at the top, flowing down.
V. 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 (V) above
(e) (II), (III) and (IV) above.
< Answer >
96. Which of the following responsibility centers are also referred to as ‘engineered expense centers?’
(a) Discretionary expense centers (b) Standard cost centers (c) Profit centers
(d) Revenues centers (e) Investment centers.
< Answer >
97. Adaptability is essential for present day organizations to survive. Which of the following are
characteristics of adaptable organizations?
I. Employees are given more freedom in decision-making.
II. Management sets broad goals and objectives.
III. Accountability revolves around positions.
IV. Organizational learning is ongoing.
(a) Both (I) and (III) above (b) Both (II) and (IV) above
(c) Both (III) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
< Answer >
98. Which of the following is not a measure for inventory control?
(a) Focus on the entire supply chain
(b) Organization should retain ownership of inventory and not shift it to suppliers
(c) Share information with suppliers
(d) Adopt A,B, C segmentation for products
(e) Improve accuracy of demand forecasts.
< Answer >
99. 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.
< Answer >
100. In Vroom’s expectancy theory, which variable refers to the probability that successful performance will
lead to certain outcomes?
(a) Valence (b) Expectancy (c) Instrumentality
(d) Motivation (e) Drive.

12
 Suggested Answers
Introduction to Management-II (MB112): April 2006
1. Answer : (a) <

Reason : According to the University of Michigan studies, leaders

who were employee-oriented were associated with higher
group productivity and higher job satisfaction.

2. Answer : (d) <

Reason : Except corporate policy statements, all the options given

are examples of upward communication.

3. Answer : (d) <

Reason : Content theory of motivation focuses on analysing what

motivates people. Hence, from above discussion, we can
infer that option (d) is correct.

4. Answer : (e) <

Reason : Managers who make foreign investments believe such

investments reduce or eliminate high transportation
costs; allow participation in the rapid expansion of a market
abroad; provide foreign technical, design, and marketing
skills; and earn higher profits.
5. Answer : (b) <

Reason : The underlying assumptions of direct control are:

e. Performance can be measured.
f. Personal responsibility exists.
g. The time expenditure is warranted.
h. Mistakes can be discovered in time.
i. The individual who is responsible will take corrective
steps.
Hence, from above discussion, we can infer that option (b) is not
the underlying assumption of direct control. Options (a),
(c), (d) and (e) are all underlying assumptions of direct
control.
6. Answer : (c) <

Reason : Job specification indicates characteristics of the individual

who should be hired for the job.

7. Answer : (b) <

Reason : A PERT network depicts the sequence of activities needed

to complete a project and the time or costs associated with
each activity.

8. Answer : (b) <

Reason : The information attribute explains that information is
available when it is needed without excessive delay
pertains to information timeliness. Hence, option (c) is
correct.

13
9. Answer : (c) <

Reason : Senthil’s performance is influenced by the component of

valence.

10. Answer : (e) <

Reason : Budgeting decisions do not constitute a set of decisions that

are included in an operations management program.

11. Answer : (c) <

Reason : Emphasis on the logical physical presentation of a problem

in the form of a model is a characteristic of operations
research and not a limitation.

12. Answer : (d) <

Reason : Evaluation of the effectiveness and efficiency of various

systems within an organization is referred to as
management audit.

13. Answer : (e) <

Reason : Assessment development centers are a specialized appraisal

system wherein a high powered panel constituted by senior
persons in the organization appraises employees by
identifying their best capabilities or skills and training them
further.
14. Answer : (d) <

Reason : Inventory control system helps a manger to manage the

inputs in such a way that they (inputs) are available at right
time, at right place and in the right quantity with minimum
cost of maintenance.

15. Answer : (d) <

Reason : Job-centered style might work best in the given situation,

where Saila can divide work into routine tasks and as a
leader can closely monitor workers to ensure prescribed
methods are followed and productivity standards met.

16. 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.
17. Answer : (e) <

Reason : Employees may react to information overload by

• Filtering information
• Making processing errors
• Disregarding certain information
• Delaying information processing
• Ignoring communication.
Hence, employees may react to information overload in
14
 ways mentioned in statements (II), (III) and (IV) and option
(e) is the answer.
18. Answer : (b) <

Reason : Data validation refers to the way data should be verified

for accuracy and completeness.

19. Answer : (e) <

Reason : The dual nature of leader behaviors, focusing on the work

to be done and focusing on the employees, is a key characteristic of
the University of Michigan studies.

20. Answer : (e) <

Reason : The variable that is at the heart of Fiedler's contingency

theory is least preferred co-worker.

21. Answer : (a) <

Reason : The level of management for which information about

environmental trends would be most appropriate is top
management. Hence from above discussion, we can infer
that option (a) is correct.

22. Answer : (b) <

Reason : The following statements are true with respect to content

theories of motivation:
I. Maslow’s self-actualization and esteem needs
correspond to Herzberg’s motivators.
III. Maslow’s esteem needs correspond to Alderfer’s need
for power.
The following statements are not true with respect to
content theories of motivation
II. McClelland’s need for achievement corresponds to
Alderfer’s relatedness needs dince McClelland’s need for
achievement corresponds to Alderfer’s growth needs.
IV. Herzber’s hygiene factors correspond to McClelland’s
need for affiliation, Maslow’s social needs and Alderfer’s
existence needs since Herzber’s hygiene factors correspond
to Maslow’s safety and physiological needs and Alderfer’s
existence needs.
23. Answer : (c) <

Reason : Potential pitfalls of using budgets as control tools include

placing too much emphasis on relatively insignificant
organizational expenses, and increasing budgeted expenses
year after year without adequate information.

24. Answer : (a) <

Reason : The assumptions of the human relations model of

management are:
• People want to feel useful and important
• People desire to belong and to be recognized as
individuals
• Creative needs are more important than money in
motivating people to work
Statements (I) and (II) are assumptions of the human
resources model. Statement (IV) is an assumption of the
traditional model of management. Hence option (a) is the
15
 answer.
25. Answer : (d) <

Reason : The following are problems with Herzberg’s theory as spelt

out by Edwin Locke:
I. The theory minimizes differences across people
II. The original classification and statements bear some
confusion
III. The arguments are characterized by illogical
inconsistencies
Hence, the statement – the theory maximizes differences
across people is not correct and option (d) is the answer.
26. Answer : (d) <

Reason : Concurrent control is referred to as yes-no control and not

feedback control. Hence, statement (II) is not true about
feedback control and option (d) is the answer.

27. Answer : (c) <

Reason : Semantic distortion, either deliberate or accidental, acts as a

barrier to effective communication. Such distortion takes
place if the meaning is not communicated properly and
generates different responses in different people. Hence, (c)
is correct answer.
28. Answer : (a) <

Reason : In the Japanese management style the leader acts as a social

facilitator and group member.

29. Answer : (b) <

Reason : If manpower demand is low and manpower supply is high a

company undertakes
• Changes in company plans
• Outplacement
• Layoffs
• Demotions
• Early retirement
Promotions are undertaken when both manpower demand
as well as supply are high. Training and development is
undertaken when manpower supply is low and manpower
demand is high.
Hence, option (b) is the answer.
30. Answer : (a) <

Reason : Activity ratios or asset management ratios measure the

effectiveness of an organization in managing its assets.

31. Answer : (d) <

Reason : Skills Inventory is a computerized database containing

basic information about each employee that can be used to
assess the likely availability of individuals for meeting
current and future human resource needs. Hence, from
above discussion, we can infer that option (d) is correct.
32. Answer : (e) <

Reason : Manager Inventory Chart does identify employees who are

not performing up to expectations and help in training or

16
 replacing them.

33. Answer : (b) <

Reason : Controls help managers in eliminating the need to watch

every step in the execution of plans. Hence option (b) is not
true about standards.

34. Answer : (c) <

Reason : Organizations getting accustomed to the processes in place

and consequently being unwilling to make any changes
refers to structural inertia.

35. Answer : (b) <

Reason : The steps in formulating a career strategy are as follows:

(i) Preparation of a personal profile.
(ii) Development of long-range personal and
professional goals.
(iii) Analysis of the environment.
(iv) Analysis of Personal Strengths and Weaknesses.
(v) Development of Strategic Career Alternatives.
(vi) Consistency Testing and Strategic Choices.
(vii) Development of short-range career objectives and
action plans.
(viii) Development of contingency plans.
(ix) Implementation of the Career Plan.
(x) Monitoring Progress.
Hence, from above discussion, we can infer that option (b)
is correct.
36. Answer : (b) <

Reason : Halo Effect is the process of perceiving all the attributes

and characteristics of another person on the basis of
knowledge of single trait of that person. Hence, from above
discussion, we can infer that option (b) is correct.

37. Answer : (d) <

Reason : Labor is a common input to both the productivity measures:

total productivity and partial productivity.

38. Answer : (c) <

Reason : Fred E. Fiedler and his associates at the University of

Illinois, suggested a very famous leadership model, was
which was based on the premise that a certain leadership
style would be most effective in different types of
situations. Hence from above discussion, we can infer that
option (c) is correct.
39. Answer : (b) <

Reason : Performance appraisal involves the formal evaluation of an

individual's job performance. Emphasizing the evaluator's
impression of the individual's work habits is least likely to
improve the effectiveness of the appraisal process. Hence,
from above discussion, we can infer that option (b) is
correct.

17
40. Answer : (d) <

Reason : In non-directive counseling, a manager should

• 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.
41. Answer : (d) <

Reason : According to the Tannenbaum and Schmidt model of

leadership, the following statements describe more of a boss
centered leadership
III. A manager more likely "sells" the decision.
IV. A manager presents ideas and invites questions.
The other two statements describe the subordinate centered
leadership.
42. Answer : (c) <

Reason : The Japanese management practice Henko, implies that

promotion and wage increases are based on an employee’s
length of service, not job performance.

43. Answer : (e) <

Reason : Innovation can take place in all of the given situations

namely:
I. Realization of congruity between what is assumed and
what the real situation is.
II. Demographic changes.
III. The need to improve a task of a process.
IV. Changes in meaning or in the way things are
perceived.
44. Answer : (c) <

Reason : The following are reasons why productivity of knowledge

workers is more difficult to measure than productivity of
industrial workers”
I. The quality of a knowledge worker’s output cannot be
determined immediately.
II. The output of a knowledge worker often contributes
only indirectly to the achievement of the end-result.
IV. Knowledge workers often assist other organizational
units and this contribution is difficult to measure.
45. Answer : (e) <
Reason : Low level managers use budgetary control system to ensure
organizational activities re carried out according to the
budgets allocated, quality control systems &inventory
control low-level managers use systems. Low level
mangers generally not concerned with financial control
system. Top-level management usually uses financial
control system.
46. Answer : (a) <

Reason : Technostructural activities are used to help organization

members enhance their own effectiveness by showing them
how to evaluate and make appropriate changes in task
design, work methods and organization structure.
18
 design, work methods and organization structure.
47. Answer : (e) <

Reason : Effective control systems should have multiple criteria for

measuring performance.

48. Answer : (e) <

Reason : The manager has strong diagnostic skills and a certain level
of expertise in the evaluation and, correction
implementation stage.

49. Answer : (b) <

Reason : Performance test or work sampling test is used as a means
of measuring practical ability on a specific job. The
applicant completes some job activity under structured
conditions. Hence from above discussion, we can infer that
option (c) is correct.
50. Answer : (e) <

Reason : The following are advantages of internal recruitment

• Candidates are already oriented to the organization
• Reliable information is available about candidates
• Recruitment costs are low
• Employee morale is increased due to upward mobility
opportunities
Candidates may have broader experience is an advantage of
external recruitment
Hence, option (e) is the answer.
51. Answer : (e) <
Reason : The purpose of job rotation is to broaden the knowledge of
managers or potential managers and trainees learn through
different enterprise functions like non-supervisory works,
observation assignments etc. by rotation into different
positions. But they cannot be posted in top-level
management positions as high stakes are involved.
52. Answer : (b) <

Reason : According to House, a leader that sets challenging goals

and expects employees to perform at their highest level is
an achievement-oriented leader.

53. Answer : (d) <

Reason : Compensation consists of wages paid directly for time

worked or the number of units produced, as well as more
indirect benefits that employees receive as part of their
employment relationships with an organization. Hence,
from above discussion, we can infer that option (d) is
correct.
54. Answer : (c) <

Reason : A funds flow statement is a statement of sources and uses

of funds for a definite period between two dates.

55. Answer : (a) <

Reason : Do not resort to outsourcing of activites, instead develop

them in-house is not a strategy for innovation; instead,
companies should focus on the core strengths and outsource
19
 companies should focus on the core strengths and outsource
most other activities.
56. Answer : (e) <
Reason : In cooptation, a leader or an influential person among the
potential resisters is given a seemingly desirable role in the
change process in order to gain the leader’s cooperation

57. Answer : (d) <

Reason : Impoverished management assumes that exertion of

minimum effort to get required work done is appropriate to
sustain organization membership. It also relies on previous
practices to keep the organization going.

58. Answer : (a) <

Reason : The term ‘quality circle’ refers to a work group that meets
regularly to discuss, investigate and correct quality
problems. Hence, from above discussion, we can infer that
option (d) is correct.

59. Answer : (a) <

Reason : Charismatic leaders are perceived as agents of radical

change rather than as caretakers of the status quo.

60. Answer : (e) <

Reason : Creativity is an individual phenomenon and cannot be

discovered through groups is not a limitation of group
discussion techniques to enhance creativity.

61. Answer : (a) <

Reason : Succession planning provides the organization with a well

qualified pool of individuals from which top-level and
middle-level managers can be selected in future.

62. Answer : (c) <

Reason : J.S. Adam’s equity theory points out that people are
motivated to maintain fair relationship between their
performance and reward in comparison to others.
Therefore, the equity theory explains Vikas’s behaviour.

63. Answer : (d) <

Reason : Vroom's expectancy theory is based on self-interest where

each employee seeks to maximize personal satisfaction and
holds that there are two crucial linkages among effort-
performance-reward in this theory.

64. Answer : (b) <

Reason : In US Management style, the usual staffing position is

(1) Rapid advancement desired and demanded.
(2) Loyalty to the profession.
(1) Appraisal of short-term results.
Hence, (d) is the correct answer.
65. Answer : (c) <

Reason : Polycentric attitude is based on the notion that it is best to

give foreign subsidiaries, staffed by local nationals, a great
deal of managerial freedom. Hence, from above discussion,
20
 deal of managerial freedom. Hence, from above discussion,
we can infer that option (b) is correct.
66. Answer : (d) <

Reason : In the operations research methodology, mathematical

model construction precedes the other steps.

67. Answer : (b) <

Reason : In investment centers the control system examine the role

of assets in generating profit apart from measuring the
monetary value of inputs and outputs.

68. Answer : (a) <

Reason : A democratic-consultative leader involves employees in

decision-making, delegates authority, and gathers input
from employees, but makes the final decision
himself/herself.

69. Answer : (d) <

Reason : Debt management ratios (I) indicate what percentage of the

organization’s assets are financed by creditors, (II) they are
also called leverage ratios and (III) a higher percentage
indicates that creditors have a greater claim over the assets
of the organization than the owners. Hence statement (III)
is not true and option (d) is the answer.
70. 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.
71. Answer : (d) <

Reason : The cost of not having the stock of product requested by the
customer is called stock-out cost. Loss of sale and loss of
customer goodwill are examples of stock-out cost.

72. Answer : (b) <

Reason : Internet in itself is not an application of office automation

systems, although it may aid in office automation.

73. Answer : (d) <

Reason : The following are characteristics exhibited by affiliation-

oriented people”
I. They enjoy a sense of intimacy and understanding.
II. They console and help those in trouble.
III. They suffer pain when rejected.
An intense desire for success is exhibited by achievement
oriented people. Hence, option (d) is the answer.
74. Answer : (c) <

21
 Reason : According to Herzberg’s motivation-hygiene theory,
relationship with peers, status, supervision and security are
the four responses, that are all hygiene factors. Hence, from
above discussion, we can infer that option (c) is correct.
75. Answer : (b) <

Reason : According to Hersey and Blanchard, a high task-low

relationship situation would require the directing leadership
style.

76. Answer : (a) <

Reason : The following are advantages of a geographical information

system:
• Maps can be prepared economically and updated with
ease.
• Maps are automatically supplemented with statistical
analysis.
• Maps can be customized to suit specific needs of users
• Maps use a 3D format
Hence, option (a) is the answer.
77. Answer : (e) <

Reason : Inventory plan is an output in the distribution logistics

model. The remaining options are inputs.

78. Answer : (d) <

Reason : Executive support systems have outputs in the form of

projections and responses to queries.

79. Answer : (d) <

Reason : The following are advantages of preventive control:

I. Greater accuracy at work is achieved.
II. Corrective actions improve the processes and make
them more effective.
Statement (III) is not an advantage since preventive control
encourages managers implementing controls through self
exercised control, which helps in taking corrective actions
voluntarily whenever deficiencies are found.
80. Answer : (c) <

Reason : Critical limits involves identifying the maximum or

minimum level at which the food safety hazard has to be
controlled to reduce it to an acceptable level.

81. Answer : (b) <

Reason : Vinod Sharma is said to be using Vroom and Yetton's

Normative Decision Model.

82. Answer : (c) <

Reason : Smoothing conflict resolution technique implies

emphasizing the areas of agreement and common goals and
de-emphasizing disagreements. Hence, from above
discussion, we can infer that option (c) is correct.

83. Answer : (a) <

22
 Reason : In human resource planning, turnover rate is not an element
in ‘resource demand forecasting.

84. Answer : (d) <

Reason : The following are claims that support self-appraisal:

I. It increases personal commitment of employees.
II. It improves employees understanding of job
performance.
Hence, option (d) is the answer.
III. It provides a great deal of information about the
appraisee is a claim that supports multiple appraisal.
85. Answer : (c) <

Reason : The Porter-Lawler model of motivation, which is an

improvement of the expectancy theory, assumes that
motivation does not equal satisfaction. It assumes
satisfaction does not lead to performance. Rather, the
converse is true: performance can, but does not always,
lead to satisfaction through the reward process. It assumes
that motivation is not a simple cause-and-effect matter. The
model advocates that managers carefully assess their
reward structures and also assumes that performance leads
to intrinsic as well as extrinsic rewards.
86. Answer : (d) <

Reason : Self-confidence is an employee contingency factor

identified by the path-goal theory, while all the other
options given are environmental contingency variables.

87. Answer : (c) <

Reason : ‘An autocratic leader will always have low performance

from employees’, is not a true statement about autocratic
leadership. An autocratic leader may have high
performance too from employees.

88. Answer : (a) <

Reason : Steering controls are used during the performance of

activity. So option (a) is the answer.

89. Answer : (c) <

TOP
Reason : The following statements about revenue centers are true: >
I. Sales and marketing departments are examples of
revenue centers.
III. 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 (c) is the answer.
90. Answer : (a) <
TOP
Reason : Structured interviews yield more valid data than >
unstructured interviews, therefore, option (a) is the answer.
91. Answer : (b) <
TOP
Reason : Linear programming is a technique for selecting an >
optimum combination of factors from a series of
interrelated alternatives, each subject to limitations, to

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 achieve a desired goal.
92. Answer : (d) <
TOP
Reason : Simulation exercises create conditions to depict the reality. >
Problem-solving skills are most effectively acquired using
these exercises. Hence, from above discussion, we can infer
that option (d) is correct.
93. Answer : (b) <
TOP
Reason : The intuition stage of the creative process links the >
unconscious state of mind with the conscious state.
94. Answer : (a) <
TOP
Reason : Preventive control is based on the idea that most of the >
negative deviations from standards can be overcome by
applying the fundamentals of management.
95. Answer : (d) <
TOP
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.
96. Answer : (b) <
TOP
Reason : Standard cost centers are also referred to as engineered >
expense centers.
97. Answer : (d) <
TOP
Reason : The following are characteristics of adaptable organizations >
• Employees are given more freedom in decision-making
• Management sets broad goals and objectives
• Organizational learning is ongoing
• Accountability revolves around projects and not
positions
Hence, option (d) is the answer.
98. Answer : (b) <
TOP
Reason : Organization should shift ownership of inventory to >
suppliers as a measure of inventory control. Hence option
(b) is the answer.
99. Answer : (a) <
TOP
Reason : Luck plays an important role in the performance of an >
individual is a weakness of appraisal against verifiable
objectives.
100. Answer : (c) <
TOP
Reason : In Vroom’s expectancy theory, instrumentality refers to the >
probability that successful performance will lead to certain
outcomes.

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