Intro to business - part 2
1) Performance appraisals are important in an organization because they
I. Provide systematic judgments to support promotions.
II. Provide a basis for coaching.
III. Provide a basis for counseling.
IV. Let subordinates know where they stand with the boss.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
2) Ratio analysis helps a manager to compare the performance of the organization with its previous performance or the performance of its competitors. Which of the following is a ratio of creditors’ contribution to that of the owners?
(a) Current ratio
(b) Debt-equity ratio
(c) Return on investment (ROI)
(d) Net profit margin
(e) Inventory turnover.
3) Which of the following inventory techniques uses cards to monitor inventory movement?
(a) ABC Analysis
(b) JIT Approach
(c) Kanban
(d) Kaizen
(e) Economic Order Quantity.
4) A decision support system (DSS) is an interactive computer system used to plan and make decisions. Which of the following is/are true with regard to Decision Support System (DSS)?
I. Executive decisions are the focal points in DSS.
II. DSS specializes in easy-to-use software.
III. DSS employs interactive processing.
IV. The control and use of DSS rests with the central information management department.
(a) Only (I) above (b) Both (I) and (II) above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
5) Which of the following is/are postulates of the path – goal theory?
I. The leader clearly defines the path to goal attainment for subordinates.
II. The leader motivates subordinates to participate in decision-making.
III. The leader sets clear and specific goals for subordinates.
IV. The leader suitably rewards employees as per their performance.
(a) Only (II) above (b) Only (IV) above
(c) Both (II) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
6) Behaviorally Anchored Rating Scales (BARS) is a sophisticated performance rating method. Which of the following is not true with regard to BARS?
(a) BARS minimizes subjective interpretation inherent in graphic rating scales
(b) BARS makes use of ‘anchors’ (common reference points of performance)
(c) BARS concentrates on job-specific behaviors and hence is highly meaningful
(d) BARS is a simple and cost-effective rating method
(e) BARS can be applied in organizations where a large number of people perform similar jobs.
7) Which of the following is not true with regard to functional authority?
(a) Functional authority is the authority staff members have over line members within the limits of their functions
(b) Functional authority has the same effect as line authority but it doesn’t have the right that line authority has, to punish violations or deviations in order to ensure compliance
(c) Functional authority is limited to those areas where a staff member has some technical competence
(d) The use of functional authority should be restricted to the procedural aspects of a function
(e) Functional authority is in sync with the principle of unity of command.
8) Creativity is an important factor in managing people. Which of the following is not truewith regard to the creative process?
(a) Creativity is the ability to develop new ideas
(b) The creative process starts with unconscious scanning
(c) Intuition connects the unconscious with the conscious
(d) Insight leads to intuition
(e) Insight is tested against organizational reality.
9) According to "expectancy theory", the probability of an individual acting in a particular way depends on:
I. The personality of the individual and the likelihood it will change.
II. The company and its potential to be moving in the right direction.
III. The situation.
IV. The strength of that individual's belief that the act will have a particular outcome and on whether the individual values that outcome.
(a) Only (I) above (b) Only (IV) above
(c) Both (I) and (III) above (d) Both (II) and (IV) above
(e) (I), (III) and (IV) above.
10) Which of the following techniques for improving productivity aims at reducing costs by analyzing and improving individual operations of a product or service?
(a) Work simplification
(b) Time-event network
(c) Value engineering
(d) Total Quality Management
(e) Quality Circle.
11) Span of control an important factor, which is to be taken into account when undertaking organizational design. Maintaining a large span of control within an organization is most effective in all except one of the following situations?
(a) When subordinates prefer autonomy
(b) When tasks are routine
(c) When jobs are similar but have varying performance measures
(d) When subordinates are highly trained
(e) When managers are competent.
12) Functional job analysis is a widely used systematic job analysis approach. Which of the following dimensions of an individual’s job does functional job analysis focus on?
I. Data, people and jobs pertaining to the individual’s job.
II. Interpersonal relationships required to perform the job.
III. Tools and equipment used by the worker.
IV. Products and services produced by the worker.
(a) Only (I) above
(b) Only (III) above
(c) Both (II) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
13) Organizational culture is the collection of shared values, beliefs, rituals, stories, myths and specialized language that foster a feeling of community among organization members. Which of the following is not a characteristic of organization culture?
(a) It differentiates one organization from another
(b) It defines the internal environment of an organization
(c) It ensures consistency in the behavior of organization members
(d) It remains absolutely stable throughout the life of an organization
(e) It is perceived by the organization members as well as by outsiders.
14) Management By Objectives (MBO) is a system for achieving organizational objectives, enhancement of employee commitment and participation. Which of the following is notan advantage of MBO?
(a) Role clarity
(b) Clarity in organizational action
(c) Personnel satisfaction
(d) Basis for organizational change
(e) Flexibility.
15) Which of the following are the characteristics of the planning process usually adopted in Japanese Management style?
I. Long-term orientation.
II. Individual decision-making.
III. Decisions flowing from bottom to top and back.
IV. Slow decision-making.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (II) and IV) above
(d) (I), (III) and (IV) above
(e) (II), (III) and (IV) above.
16) Which of the following refers to the flow of information among persons at different levels, who have no direct reporting relationships?
(a) Horizontal communication
(b) Diagonal communication
(c) Upward communication
(d) Downward communication
(e) Forward communication.
17) Every organization structure, even a poor one, can be charted. Which of the following isfalse with respect to Organization Chart?
(a) It is a vital tool for providing information about organizational relationships
(b) It provides a visual map of the chain of command
(c) Charting an organization structure can show up the complexities and inconsistencies, which can be corrected
(d) It shows authority relationships as well as informal and informational relationships
(e) It helps managers and new personnel to know how and where they fit into the organization structure.
18) As Arvind Misra is reviewing the progress of his organization in meeting its organizational goals, he is struck by the fact that his organization has an organizational structure that might be causing problems. The current structure diffuses accountability, makes it difficult to respond to changing conditions quickly, and results in situations where someone might have two bosses. Which of the following organization forms best fits these disadvantages being experienced by Mr. Misra?
(a) Geographical structure
(b) Matrix structure
(c) Divisional structure
(d) Customer structure
(e) Functional structure.
19) The garbage-can model is effective in which of the following situation/s?
I. When managers have no specific goal preferences.
II. When the means of achieving goals are unclear.
III. When there are frequent changes in the participants involved in decision-making.
IV. When the degree to which decision-makers can determine optimal decisions is limited by the individuals’ capacity and intelligence.
(a) Only (IV) above
(b) Both (I) and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
20) Which of the following is true about the conclusions drawn from the trait approach to leadership?
(a) The trait approach identifies traits that consistently separate leaders from nonleaders
(b) There are certain traits that guarantee that a leader will be successful
(c) The trait approach is based on early research that assumes that a good leader is born, not made
(d) Leadership is a simple issue of describing the traits of successful leaders
(e) The trait approach is based on early research that assumes that a good leader is made, not born.
21) Which of the following information systems has low-volume data and analytical models as data inputs?
(a) Management Information System
(b) Decision Support System
(c) Executive Support System
(d) Transaction Processing System
(e) Office Automation System.
22) An objective is the object or aim of an action. Management by Objectives (MBO) is a management process that is popular in many organizations. It is the joint setting of goals and objectives by superiors and subordinates. A major difference between traditional objective setting and MBO is
(a) In MBO, there are multiple objectives covering a range of organisational activities
(b) In traditional objective setting the objectives, once formulated, provide direction for management decisions
(c) In traditional objective setting the objectives, once established, form the criteria against which actual accomplishments can be measured
(d) In MBO, organisation members may actually pursue objectives other than the formal organisational objectives
(e) Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’ process.
23) In the Japanese management style, the controlling function is characteristic of
I. Focus on individual performance.
II. Control by peers.
III. Extensive use of quality control circles.
IV. Fixing blame.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (I) and (IV) above
(d) Both (II) and (III) above
(e) Both (II) and (IV) above.
24) The strengths and weaknesses of each alternative become obvious in which step of the decision making-process?
(a) Identifying the problem
(b) Identifying the decision criteria
(c) Analyzing the alternatives
(d) Implementing the alternative
(e) Obtaining the needed resources.
25) The recruitment procedure is initiated when a vacancy occurs and is reported to the HR department. Which of the following is usually the first step followed in the recruitment procedure?
(a) Designing job description
(b) Developing a job specification
(c) Performing job analysis
(d) Attracting a pool of applicants
(e) Selecting best recruits.
I. Provide systematic judgments to support promotions.
II. Provide a basis for coaching.
III. Provide a basis for counseling.
IV. Let subordinates know where they stand with the boss.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
2) Ratio analysis helps a manager to compare the performance of the organization with its previous performance or the performance of its competitors. Which of the following is a ratio of creditors’ contribution to that of the owners?
(a) Current ratio
(b) Debt-equity ratio
(c) Return on investment (ROI)
(d) Net profit margin
(e) Inventory turnover.
3) Which of the following inventory techniques uses cards to monitor inventory movement?
(a) ABC Analysis
(b) JIT Approach
(c) Kanban
(d) Kaizen
(e) Economic Order Quantity.
4) A decision support system (DSS) is an interactive computer system used to plan and make decisions. Which of the following is/are true with regard to Decision Support System (DSS)?
I. Executive decisions are the focal points in DSS.
II. DSS specializes in easy-to-use software.
III. DSS employs interactive processing.
IV. The control and use of DSS rests with the central information management department.
(a) Only (I) above (b) Both (I) and (II) above
(c) Both (III) and (IV) above (d) (I), (II) and (III) above
(e) (II), (III) and (IV) above.
5) Which of the following is/are postulates of the path – goal theory?
I. The leader clearly defines the path to goal attainment for subordinates.
II. The leader motivates subordinates to participate in decision-making.
III. The leader sets clear and specific goals for subordinates.
IV. The leader suitably rewards employees as per their performance.
(a) Only (II) above (b) Only (IV) above
(c) Both (II) and (IV) above (d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.
6) Behaviorally Anchored Rating Scales (BARS) is a sophisticated performance rating method. Which of the following is not true with regard to BARS?
(a) BARS minimizes subjective interpretation inherent in graphic rating scales
(b) BARS makes use of ‘anchors’ (common reference points of performance)
(c) BARS concentrates on job-specific behaviors and hence is highly meaningful
(d) BARS is a simple and cost-effective rating method
(e) BARS can be applied in organizations where a large number of people perform similar jobs.
7) Which of the following is not true with regard to functional authority?
(a) Functional authority is the authority staff members have over line members within the limits of their functions
(b) Functional authority has the same effect as line authority but it doesn’t have the right that line authority has, to punish violations or deviations in order to ensure compliance
(c) Functional authority is limited to those areas where a staff member has some technical competence
(d) The use of functional authority should be restricted to the procedural aspects of a function
(e) Functional authority is in sync with the principle of unity of command.
8) Creativity is an important factor in managing people. Which of the following is not truewith regard to the creative process?
(a) Creativity is the ability to develop new ideas
(b) The creative process starts with unconscious scanning
(c) Intuition connects the unconscious with the conscious
(d) Insight leads to intuition
(e) Insight is tested against organizational reality.
9) According to "expectancy theory", the probability of an individual acting in a particular way depends on:
I. The personality of the individual and the likelihood it will change.
II. The company and its potential to be moving in the right direction.
III. The situation.
IV. The strength of that individual's belief that the act will have a particular outcome and on whether the individual values that outcome.
(a) Only (I) above (b) Only (IV) above
(c) Both (I) and (III) above (d) Both (II) and (IV) above
(e) (I), (III) and (IV) above.
10) Which of the following techniques for improving productivity aims at reducing costs by analyzing and improving individual operations of a product or service?
(a) Work simplification
(b) Time-event network
(c) Value engineering
(d) Total Quality Management
(e) Quality Circle.
11) Span of control an important factor, which is to be taken into account when undertaking organizational design. Maintaining a large span of control within an organization is most effective in all except one of the following situations?
(a) When subordinates prefer autonomy
(b) When tasks are routine
(c) When jobs are similar but have varying performance measures
(d) When subordinates are highly trained
(e) When managers are competent.
12) Functional job analysis is a widely used systematic job analysis approach. Which of the following dimensions of an individual’s job does functional job analysis focus on?
I. Data, people and jobs pertaining to the individual’s job.
II. Interpersonal relationships required to perform the job.
III. Tools and equipment used by the worker.
IV. Products and services produced by the worker.
(a) Only (I) above
(b) Only (III) above
(c) Both (II) and (IV) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
13) Organizational culture is the collection of shared values, beliefs, rituals, stories, myths and specialized language that foster a feeling of community among organization members. Which of the following is not a characteristic of organization culture?
(a) It differentiates one organization from another
(b) It defines the internal environment of an organization
(c) It ensures consistency in the behavior of organization members
(d) It remains absolutely stable throughout the life of an organization
(e) It is perceived by the organization members as well as by outsiders.
14) Management By Objectives (MBO) is a system for achieving organizational objectives, enhancement of employee commitment and participation. Which of the following is notan advantage of MBO?
(a) Role clarity
(b) Clarity in organizational action
(c) Personnel satisfaction
(d) Basis for organizational change
(e) Flexibility.
15) Which of the following are the characteristics of the planning process usually adopted in Japanese Management style?
I. Long-term orientation.
II. Individual decision-making.
III. Decisions flowing from bottom to top and back.
IV. Slow decision-making.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (II) and IV) above
(d) (I), (III) and (IV) above
(e) (II), (III) and (IV) above.
16) Which of the following refers to the flow of information among persons at different levels, who have no direct reporting relationships?
(a) Horizontal communication
(b) Diagonal communication
(c) Upward communication
(d) Downward communication
(e) Forward communication.
17) Every organization structure, even a poor one, can be charted. Which of the following isfalse with respect to Organization Chart?
(a) It is a vital tool for providing information about organizational relationships
(b) It provides a visual map of the chain of command
(c) Charting an organization structure can show up the complexities and inconsistencies, which can be corrected
(d) It shows authority relationships as well as informal and informational relationships
(e) It helps managers and new personnel to know how and where they fit into the organization structure.
18) As Arvind Misra is reviewing the progress of his organization in meeting its organizational goals, he is struck by the fact that his organization has an organizational structure that might be causing problems. The current structure diffuses accountability, makes it difficult to respond to changing conditions quickly, and results in situations where someone might have two bosses. Which of the following organization forms best fits these disadvantages being experienced by Mr. Misra?
(a) Geographical structure
(b) Matrix structure
(c) Divisional structure
(d) Customer structure
(e) Functional structure.
19) The garbage-can model is effective in which of the following situation/s?
I. When managers have no specific goal preferences.
II. When the means of achieving goals are unclear.
III. When there are frequent changes in the participants involved in decision-making.
IV. When the degree to which decision-makers can determine optimal decisions is limited by the individuals’ capacity and intelligence.
(a) Only (IV) above
(b) Both (I) and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
20) Which of the following is true about the conclusions drawn from the trait approach to leadership?
(a) The trait approach identifies traits that consistently separate leaders from nonleaders
(b) There are certain traits that guarantee that a leader will be successful
(c) The trait approach is based on early research that assumes that a good leader is born, not made
(d) Leadership is a simple issue of describing the traits of successful leaders
(e) The trait approach is based on early research that assumes that a good leader is made, not born.
21) Which of the following information systems has low-volume data and analytical models as data inputs?
(a) Management Information System
(b) Decision Support System
(c) Executive Support System
(d) Transaction Processing System
(e) Office Automation System.
22) An objective is the object or aim of an action. Management by Objectives (MBO) is a management process that is popular in many organizations. It is the joint setting of goals and objectives by superiors and subordinates. A major difference between traditional objective setting and MBO is
(a) In MBO, there are multiple objectives covering a range of organisational activities
(b) In traditional objective setting the objectives, once formulated, provide direction for management decisions
(c) In traditional objective setting the objectives, once established, form the criteria against which actual accomplishments can be measured
(d) In MBO, organisation members may actually pursue objectives other than the formal organisational objectives
(e) Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’ process.
23) In the Japanese management style, the controlling function is characteristic of
I. Focus on individual performance.
II. Control by peers.
III. Extensive use of quality control circles.
IV. Fixing blame.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (I) and (IV) above
(d) Both (II) and (III) above
(e) Both (II) and (IV) above.
24) The strengths and weaknesses of each alternative become obvious in which step of the decision making-process?
(a) Identifying the problem
(b) Identifying the decision criteria
(c) Analyzing the alternatives
(d) Implementing the alternative
(e) Obtaining the needed resources.
25) The recruitment procedure is initiated when a vacancy occurs and is reported to the HR department. Which of the following is usually the first step followed in the recruitment procedure?
(a) Designing job description
(b) Developing a job specification
(c) Performing job analysis
(d) Attracting a pool of applicants
(e) Selecting best recruits.