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Principles of Management | Set 3
1. Which of the following statement best described the principle of ‘Division of work’?
A. work should be divided into small tasks
B. labour should be divided
C. resource should be divided among jobs
D. it leads to specialisation
Correct : B. labour should be divided
2. Which of the following is Not a principle of management given by Taylor?
A. Science, not rule of Thumb
B. Functional foremanship
C. Maximum ,not restricted output
D. Harmony not discord
Correct : B. Functional foremanship
3. Management should find ' One best way ' to perform a task. Which technique of scientific management is defined in this sentence?
A. Time study
B. Motion study
C. Fatigue study
D. Method study
Correct : D. Method study
4. Who is known as 'the Father of Modern Theory of Management’?
A. Harold Koontz.
B. Henry Fayol
C. F.W. Taylor
D. Max Weber
Correct : B. Henry Fayol
5. The main aim of Taylor was to.................
A. improve labour relations
B. improve productivity
C. To attempt a general theory of management
D. None of these
Correct : B. improve productivity
6. Method study is ..................
A. preliminary survey of production Process
B. study of the movement of a work
C. study of operational efficiency
D. All of the above
Correct : A. preliminary survey of production Process
7. Henry fayol is well known...........
A. As the father of modern management
B. for formulating general principles of management
C. for promoting trade unionism
D. None of these
Correct : A. As the father of modern management
8. Unity of command implies
A. A subordinate should receive orders from all the superiors
B. individuals must sacrifice in the larger interest
C. be accountable to one and only one superior
D. None of these
Correct : C. be accountable to one and only one superior
9. Purpose of time study is ...........
A. to remove wastage of time
B. to give timely assistance
C. to determine fair days work
D. watching time
Correct : C. to determine fair days work
10. The scientific technique of task setting is known as ......................
A. work study
B. motion study
C. time study
D. method study
Correct : C. time study
11. Management by Objectives concept was developed by -------.
A. Peter.F.Drucker
B. Fayol
C. Chester Bernard
D. None
Correct : A. Peter.F.Drucker
12. MBO offers the basis for assessing the -----------------.
A. Techniques
B. Performance
C. Authority
D. Subject
Correct : B. Performance
13. The process of MBO starts with -----.
A. setting up of obligation
B. Fetron plan
C. Review
D. All
Correct : A. setting up of obligation
14. Principles of management are not
A. behavioural.
B. absolute.
C. universal.
D. flexible.
Correct : B. absolute.
15. Principles of management provide
A. readymade solutions to problems.
B. general guidelines.
C. methods and procedures.
D. rules and regulations.
Correct : B. general guidelines.
16. Management principles differ from pure science principles because management principles are
A. vague.
B. situation-bound.
C. rig
Correct : B. situation-bound.
17. Principles of management are significant because these result in___________.
A. taking initiative.
B. adapting to new technology.
C. employee satisfaction.
D. optimum utilisation of resources.
Correct : D. optimum utilisation of resources.
18. Which one of the following is not a principle of scientific management?
A. Functional foremanship
B. Development of personnel
C. Harmony, not discord
D. Maximum, not restricted output
Correct : A. Functional foremanship
19. Management should find ‘one best way’ to perform a task. Which technique of scientific management is defined in this sentence?
A. Time Study
B. Method Study
C. Fatigue Study
D. Motion Study
Correct : B. Method Study
20. Unity of command is related to
A. superiors and subordinates.
B. management and workers.
C. planned actions.
D. cooperation among employees.
Correct : A. superiors and subordinates.
21. Gang plank is related to
A. communication.
B. motivation.
C. supervision of workers.
D. incentives to workers.
Correct : A. communication.
22. Management principles are flexible whereas ______________ principles are rigid.
A. Pure Science
B. Employment
C. Scientific Management
D. Art
Correct : A. Pure Science
23. ___________ denotes concentration of authority at the top level.
A. Decentralisation
B. Centralisation
C. Coordination
D. Delegation
Correct : B. Centralisation
24. __________ is the technique in which each worker is supervised by eight supervisors.
A. Functional foremanship
B. Unity of action
C. Centralisation
D. Simplification of work
Correct : A. Functional foremanship
25. _________ principle of management puts emphasis on judicious application of penalties by the management.
A. Esprit de corps
B. Order
C. Division of work
D. Discipline
Correct : D. Discipline
26. _________ principle of management states that there should be a place for everything and everything should be in its place.
A. Equity
B. Discipline
C. Order
D. Esprit de corps
Correct : C. Order
27. __________ means one plan, one boss.
A. Unity of direction
B. Unity of command
C. Centralisation
D. Gang Plank
Correct : A. Unity of direction
28. __________ involves harmony and team spirit among employees.
A. Discipline
B. Esprit de corps
C. Order
D. Standardisation
Correct : B. Esprit de corps
29. “Unity of command means one employee getting orders and instructions from one supervisor”.
A. True
B. False
C. all
D. none
Correct : A. True
30. Time study involves analysing movements involved in performing an activity.
A. True
B. False
C. all
D. none
Correct : B. False
31. Scalar chain involves direct communication between two employees at horizontal level.
A. True
B. False
C. all
D. none
Correct : B. False
32. Discipline principle of management leads to development of team spirit.
A. True
B. False
C. all
D. none
Correct : B. False
33. The principals of management are significant because of
A. increase in efficiency
B. Initiative
C. optimum utilisation of resources
D. Adaptation of changing technology
Correct : D. Adaptation of changing technology
34. Observe the following management principles and pick the odd one out. Justify your answer.
A. unity of command
B. unity of direction
C. maximum output
D. equity
Correct : C. maximum output
35. Which scholar's definition on management is " Management is the art of getting things done through and with people in formally organised groups"?
A. Harold Koontz
B. J.N. Schulze
C. S. George
D. Henry Fayol
Correct : A. Harold Koontz
36. Which of the following is not a Management Principle ?
A. Order
B. Discipline
C. Equity
D. Cooperation
Correct : D. Cooperation
37. The term hierarchy implies.........
A. departmentalisation
B. a definite ranking order
C. specialisation
D. None of these
Correct : B. a definite ranking order
38. Scientific analysis of work under scientific management requires......
A. time study
B. motion study
C. Both a & b
D. work study
Correct : C. Both a & b
39. Management by objective is
A. goal oriented
B. work oriented
C. none of the above
D. all
Correct : A. goal oriented
40. Which scholar introduced the functional type of organisation?
A. F.W. Taylor
B. Chester Bernard
C. Allen
D. Max Weber
Correct : A. F.W. Taylor
41. _________ is known as the founder of Human Relation School.
A. Henry Fayol
B. Elton Mayo
C. Peter Drucker
D. F.W. Taylor
Correct : B. Elton Mayo
42. ___________ Principle of Management is concerned with promoting team spirit.
A. Equity
B. Scaler
C. Unity of Command
D. Espirit de Crops
Correct : D. Espirit de Crops
43. Pervasiveness of planning indicates that planning
A. is a top management function.
B. extends throughout the organisation.
C. is a future-oriented activity.
D. is the first element of management process.
Correct : B. extends throughout the organisation.
44. Which one of the following is an importance of planning?
A. Reducing uncertainty
B. Identifying alternatives critically
C. Developing leadership
D. Selecting the most appropriate plan
Correct : A. Reducing uncertainty
45. Which one of the following is not a limitation of planning?
A. Dynamic environment
B. Costly process
C. Rigidity
D. Top management approach
Correct : D. Top management approach
46. Which one of the following is a step of planning?
A. Analysis of organisation structure
B. Analysis of environment
C. Analysis of employee behaviour
D. Analysis of employee morale
Correct : B. Analysis of environment
47. The basic role of strategy is to provide
A. setting procedures.
B. direction for action.
C. direction for motivation.
D. direction for control.
Correct : B. direction for action.
48. Which one of the following plans prescribes chronological steps for performing activities?
A. Procedure
B. Rule
C. Policy
D. Method
Correct : A. Procedure
49. Which one of the following is a single-use plan?
A. Strategy
B. Rule
C. Budget
D. Method
Correct : C. Budget
50. Organising process includes one of the following:
A. Grouping of activities
B. Prescribing disciplinary action
C. Determining objectives
D. Prescribing work schedule
Correct : A. Grouping of activities
51. One of the following is not an importance of organising:
A. Role clarity
B. Performance appraisal
C. Adaptation to change
D. Growth and expansion
Correct : B. Performance appraisal
52. Organisation structure establishes relationships between
A. organisation and environment.
B. people, work and resources.
C. organisation and society.
D. suppliers and customers.
Correct : B. people, work and resources.
53. One of the following is an advantage of functional structure:
A. Responsibility for end results
B. Flexibility
C. Personalised attention
D. Easier employee learning
Correct : D. Easier employee learning
54. Divisional structure leads to conflict in
A. resource allocation.
B. marketing management.
C. motivation.
D. planning process.
Correct : A. resource allocation.
55. In which respect does formal organisation differ from informal organisation?
A. Production process
B. Structuring
C. Financial procedure
D. Purchasing
Correct : B. Structuring
56. Which one of the following does not follow scalar chain?
A. Informal organisation
B. Functional structure
C. Formal organisation
D. Divisional structure
Correct : A. Informal organisation
57. Degree of decentralisation indicates
A. degree of authority delegation.
B. degree of responsibility.
C. degree of power delegation.
D. degree of accountability.
Correct : A. degree of authority delegation.
58. In staffing function, which one of the following groups of managers is involved?
A. Only top managers
B. Only human resource managers
C. Only middle managers
D. All managers
Correct : D. All managers
59. Which one of the following is not an importance of staffing?
A. Suitable division of work among employees
B. Developing skills in employees
C. Employee satisfaction
D. Efficient use of human resources
Correct : A. Suitable division of work among employees
60. In staffing function, which combination of activities in sequential order is correct?
A. Recruitment, selection, training, placement
B. Selection, training, recruitment, placement
C. Recruitment, selection, placement, training
D. Recruitment, training, selection, placement
Correct : C. Recruitment, selection, placement, training
61. Which one of the following sources is most relevant to recruiting managerial personnel?
A. Direct recruitment
B. Employment exchange
C. Advertisement
D. Casual callers
Correct : C. Advertisement
62. Which one of the following is an internal source of recruitment?
A. Transfer
B. Employee recommendations
C. Campus recruitment
D. Personal contacts
Correct : A. Transfer
63. Which type of learning is management development concerned with?
A. Specific job skill development
B. Multi-skill development
C. Manual skill development
D. Inventory development
Correct : B. Multi-skill development
64. For which group of persons is vestibule training relevant?
A. Operatives
B. Top management
C. Middle management
D. Supervisory management
Correct : A. Operatives
65. Which one of the following is an element of directing?
A. Delegating authority
B. Designing organisation structure
C. Communication
D. Designing control system
Correct : C. Communication
66. Motivation is not
A. a complex process.
B. related to satisfaction.
C. an easy process.
D. a goal-directed behaviour.
Correct : C. an easy process.
67. Need hierarchy theory of motivation has been given by
A. Maslow.
B. Fayol.
C. Taylor.
D. Koontz.
Correct : A. Maslow.
68. Which one of the following is not a financial incentive?
A. Bonus
B. Provident Fund
C. Co-partnership
D. Challenging job
Correct : D. Challenging job
69. Which one of the following is a non-financial incentive?
A. Recognition
B. Perquisite
C. Retirement benefit
D. Stock option
Correct : A. Recognition
70. Leadership is based on a superior’s
A. authority.
B. responsibility.
C. accountability.
D. persuasive communication.
Correct : D. persuasive communication.
71. Encoding is related to
A. converting message into symbols.
B. converting symbols into message.
C. transmitting message.
D. receiving symbols.
Correct : A. converting message into symbols.
72. Grapevine is a form of
A. formal communication.
B. channel of communication.
C. informal communication.
D. barrier to communication.
Correct : C. informal communication.
73. Which one of the following is a semantic barrier?
A. Organisational policy
B. Lack of attention
C. Technical jargon
D. Status
Correct : C. Technical jargon
74. Which one of the following is not a feature of controlling?
A. Continuous process
B. Action-oriented
C. Keeping employees busy
D. Pervasive function
Correct : C. Keeping employees busy
75. Which one of the following is not an importance of controlling?
A. Better coordination
B. Better use of resources
C. Better planning
D. Better grievance handling
Correct : D. Better grievance handling
76. Which one of the following is a step of controlling?
A. Assessing personnel required
B. Taking corrective action
C. Assessing environment
D. Taking disciplinary action
Correct : B. Taking corrective action
77. ___________ is the process of ensuring that actual results are in accordance with planned results.
A. Controlling
B. Coordinating
C. Planning
D. Directing
Correct : A. Controlling
78. _________ is the focus point for a manager while controlling, as controlling at every step is not possible.
A. Controlling
B. Coordinating
C. Critical point control
D. Both a and b
Correct : C. Critical point control
79. Controlling is ________.
A. Forward looking
B. Backward looking
C. Continous process
D. All of these
Correct : D. All of these
80. Decision-making is the case of __________.
A. Planning
B. Organising
C. Staffing
D. Directing
Correct : A. Planning
81. __________ is a statement of expected results in numerical terms.
A. Forecast
B. Budget
C. Plan
D. Estimate
Correct : B. Budget
82. __________ is a feature of planning also referred to as primacy of planning.
A. Pervasive
B. Primary function of management
C. Continuous
D. Integrating
Correct : B. Primary function of management
83. __________ is a comprehensive plan for achieving its objectives.
A. Strategy
B. Method
C. Rule
D. Policy
Correct : A. Strategy
84. __________ are relevant to recurring activities.
A. Single-use plans
B. Standing plans
C. Objectives
D. Programmes
Correct : B. Standing plans
85. ___________ involves giving authority and responsibility to subordinates.
A. Division of work
B. Decentralisation
C. Delegation
D. Centralisation
Correct : C. Delegation
86. __________ is the process of grouting similar activities together and creating departments.
A. Division of work
B. Departmentalisation
C. Delegation
D. Centralisation
Correct : B. Departmentalisation
87. _________ is the right to command.
A. Authority
B. Responsibility
C. Accountability
D. Both a and b
Correct : A. Authority
88. ____________ is a process of learning and growth.
A. Training
B. Development
C. Recruitment
D. Both a and b
Correct : B. Development
89. ___________ leads to optimum use of resources.
A. Recruitment
B. Staffing
C. Development
D. Training
Correct : B. Staffing
90. __________ is the “On the Job Training” method used to train electricians.
A. Web publishing
B. Job rotation
C. Coaching
D. Apprenticeship
Correct : D. Apprenticeship
91. Directing flows in ____________ direction.
A. Upward
B. Downward
C. Diagonal
D. Both a and b
Correct : B. Downward
92. ____________ is the process of exchanging information and understanding between two or more persons.
A. Directing
B. Leadership
C. Communication
D. Motivation
Correct : C. Communication
93. What is the full form of TQM?
A. Total quality measurement
B. Total quantity management
C. Typical quality management
D. Total quality management
Correct : D. Total quality management
94. Which among the following is not a technique of TQM?
A. Re-engineering
B. Quality measurement
C. Bench marking
D. Empowerment
Correct : B. Quality measurement
95. According to Kurt Lewin, which of the following is not a stage in the change process?
A. Unfreezing
B. Changing
C. Refreezing
D. Restraining
Correct : D. Restraining
96. A company that decides to decentralize its sales procedures is managing what change category?
A. Technology
B. People
C. Competitors
D. Structure
Correct : D. Structure
97. Which of the following statements is true
A. In small quantities, stress is good
B. Too much stress is harmful
C. All stress is bad
D. Only a & b are right
Correct : D. Only a & b are right
98. Outsourcing is
A. Exporting
B. Importing
C. A firm having someone else do part of what it previously did itself.
D. Building a factory in another country to produce for that country’s market.
Correct : C. A firm having someone else do part of what it previously did itself.
99. Offshoring is
A. Substituting foreign for domestic labor.
B. Subcontracting a part of production to another firm.
C. Exporting
D. Importing
Correct : A. Substituting foreign for domestic labor.
100. Here, parties involved in the electronic transactions are from within a given business firm, hence, the name is ________.
A. Intra-C Commerce
B. Intra-D Commerce
C. Intra-B Commerce
D. Intra-A Commerce
Correct : C. Intra-B Commerce