IIMT Engineering College

Principles & Practices of Management

MBA Ist Sem.(UPTU)
Question Bank

1 Which one of following is most descriptive characteristic of a Manager?

a) Decisive
b) Amiable
c) Kindly
d) Agreeable

2 In Hawthrone’s Experiments, Ilumination experiment was conducted during the

period
a) 1927-28
b) 1921-24
c) 1924-27
d) 1931-32

3 The formal & legitimate right of manager to take decisions, give orders and
allocate resources is known as
a) Accountability
b) Power
c) Authority
d) Responsibility

4 Neoclassical Approach of Management Thoughts covers

a) Human Relation & social System
b) Management Science Approach
c) Human Behavior Approach
d) All of above
e) None of these

5 Which one of following term is not associated with Social Responsibility?

a) Social Commitment
b) Social Concern
c) Social programme
d) Social Structure

6 Acc. to Hergberg’s motivation Hygiene theory, which one of the following is a

motivating factor?
a) Job Security
b) Company Policy
c) Work itself
d) Interpersonal relations
e)
7 Which of the following is a reality of a manager’s job?
 a) A manager’s job is less a Science than an art
b) Managers are self starting, self-directing and autonomous.
c) Managers have no regular duties to perform
d) Managers are reflective and systematic planners

8 The Contingency, path goal and life cycle theories of leadership are considered
a) autocratic
b) Organizational
c) Situational
d) Unrealistic

9 Which of the following is not an element of a communication process?

a) Encoding
b) Channel
c) Receiver
d) Measurement

10 In which type of barriers, does premature evaluation fall?

a) Semantic Barriers
b) Psychological barriers
c) Organizational Barrier
d) Personal barrier

11 Acc. to Maslow’s needs Hierarchy theory, which of the following sequence is

correct?
a) Physiological, safety, social, esteem, self actualization
b) Safety, Social, Esteem, physiological, Self actualization
c) Self actualization, safety, esteem, social, physiological
d) Physiological, safety, esteem, social, self actualization

12 The basic role of a Strategy is to provide

a) Direction for action
b) Direction for motivation
c) Setting procedures
d) Prescribing methods

13 Which of the following is a single use plan?

a) Budget
b) Procedure
c) Rule
d) Policy

14 Tactical planning is also known as

a) Strategic planning
b) Operational Planning
c) Corporate planning
 d) Proactive planning

16 Which one of the following approach has emerged from the findings of
Hawthorne Experiments?
a) Human behavior approach
b) System approach
c) Human Relation approach
d) Decision theory approach
17 Bureaucracy is considered most efficient system because
a) It prescribes informal relationship
b) It insist on rules
c) It emphasis on Human elements in the organization
d) It provides more freedom to action
18 Top Management functions are the most important because these take care of
a) Overall organization b) Specific Problems
c) Routine problems d) extraordinary problemss
19 Which one of the following skill combination is required for top management in
descending order?
a) Technical, human, conceptual b Conceptual, human, technical
c) Technical, conceptual, human d Human, conceptual, technical

20 In which category of profession does management fall?

a) Established profession b) Marginal Profession
c) Semi profession d) Emerging Profession

21 The famous book ‘ General and Industrial Management’ was written by

a) Oliver Sheldon b) Henry fayol
c) Elton mayo d) Maslow

22 Five M’s of Management are

a) Manager, Muscle, Machinary, methods and marketing
b) Man, Money, materials, Machinary & methods
c) Marketing, Manpower, Muscle Power, motivation and methods
d) Marketing, monitoring, motivation, machinary and methods

23 The overall goal of Scientific Management is

a) Maximisation of social welfare b) Maximisation of employement
c) Higher industrial efficiency d) None of above

24 “ Science, not rule of thumb” according to Taylor stands for

a) One best way of doing a task b) obtaining harmony in group action
c) scientific division of work between workers and management
d) scientific selection of workment

25 The role of gang boss in Taylor’s functional foremenship is

a) Inspects the quality of work life b) Issues instructions to workers
 c) sets up tools and machines for work
d) compiles cost of production

26 Social stakeholders of business are

a) Shareholders b) Employees
c) Customers d) All of these

27 A supervisor’s job is difficult because

a) He is linking pin between management and operatives
b) He has to handle technical problems
c) He has to deal with only uneducated workers
d) He is not well recognised in the organisation

28 Business organizations should feel concerned with making social responsibility

because they
a) are the part of society b) can make huge profits
c) can be more efficient d) can compete in better way

29 Which one of the following is a feature of good plan?

a) Consistency b) Highly ambiguous targets
c) Formulated by all persons d) rigid targets

30 Pervasiveness of planning indicates that planning

a) Extends throughout the organization
b) is a top management function
c) is the first element of management process
d) is future oriented activity

31 One of the major elements of planning process is

a) Developing leadership qualities
b) selecting right personnel
c) perception of oppourtunities
d) designing organisation structure

32 Strategic planning differs from operational planning as strategic planning focuses

on
a) future course of action
b) long term perspective
c) short term perspective
d) single use plans

33 The concept of Management by Objective was introduced by

a) Peter drucker b) George Odiorne
c) Rensis Likert d) Elton mayo

34 Which of the following is not a key result area for business organisation?
 a) Profitability b) Productivity
c) Market standing d) Organisational structure

35 Rigidity in budgeting may be overcome by

a) capital budget b) Revenue budget
c) Flexible budget d) zero base budget

36 Which of the following features is not related to a policy

a) Guidelines for employees b) Formulated only at the top level
c) expressed in qualitative way d) more freedom than rules

37 Organising process does not involve one the following elements

a) departmentation b) Delegation of authority
c) fixing responsibility d) appraisal of subordinate

38 which of the following factors is not important in organisational design?

a) Environment b) strategy
c) informal relationships d) technology

39 Which one of the following is departmentation based on fuctions?

a) Marketing b) North territory
c) Department named A d) department named one

40 Narrow Span of Management results

a) Flat Structure b) Tall structure
c) Mechanistic structure d) organic structure

41 In what respect, does formal organisation differs from informal organisation?

a) structuring b) Production process
c) financial procedure d) marketing procedure

42 For which of the situations, is line organisation structure suitable?

a) Highly diversifies organisation
b) Small organisation
c) Organisation with many projects
d) large organisations

43 From which companies, is a matrix structure created?

a) Functional and divisional b) Functional and project
c) Functional and line d) Divisional and line

44 Self managing team is also known as

a) empowered team b) problem solving team
c) cross functional team d) virtual team

45 Which one of these is not a source of authority

 a) Organisational position b) competence of a person
c) acceptance by subordinates d) extra organisational relation

46 which one of these can be delegated?

a) Power b) Authority
c) Responsibility d) Accountability

47 Degree of decentralisation indicates

a) degree of delegation of authority b) degree of responsibility
c) degree of power d) degree of accountability
48 Staff authority works as
a) a chain of command b) a channel of communication
c) a carrier of responsibility d) advice on certain matters
49 Planned change includes all except one of the following elements
a) Technology b) Structure
c) People d) environment
50 Which of the following form is the expression of human response to change?
a) Resistance b) Motivation
c) Planning d) Organising
51 In staffing functions, which one of the following group of managers are involved?
a) Only top management b) only middle managers
c) Only personnel managers d) All managers
52 Manpower Planning is also known as
a) Organisational Planning b) Human resource planning
c) Job planning d) Manpower inventory planning
53 A job description provides the information about
a) nature and characterstics of the job
b) characterstics of the person performing the job
c) characterstics of the management
d) characterstics of organisation
54 Acheivement Test is also known as
a) trade test b) aptitude test
c) interest test d) attitude test
55 In staffing, which combination of activities in sequenctial order is correct?
a) Job analysis, recruitment, selection, placement
b) Recruitment, selection, placement, job analysis
c) Selection, job analysis, placement, recruitment
d) Placement, recruitment, selection, job analysis
56 Time management is a part of
a) simulation training b) transactional analysis
c) self-development d) sensitivity training
57 For which group of persons is vestibule training appropriate?
a) Top management b) operatives
c) middle management d) supervisors
58 Senstivity training is also known as
a) T group training b) operative training
 c) In basket exercise d) Problem solving training
59 Job rotation involves
a) moving a person from one job to another job
b) making job more motivating
c) enlarging the activities involved in the job
d) upgrading the job to a higher rank
60 Which one the following is not an element of direction?
a) guiding employees b) instructing employees
c) motivating employees d) controlling employees
61 Which one the following factors is not an imortant considerations in order giving?
a) general or specific b) written or oral
c) formal or informal d) wide or narrow
62 With which of the factors, is carrot and stick approach of motivation associated?
a) Reward punishment b) equity inequity
c) equility- inequility d) Motivation hygiene
63 Which one of the following aspects of managing has not been emphasised by Mc
Gregor’s theories X & Y?
a) Planning b) organising
c) directing d) appraising
64 Which one of the following is a financial incentive?
a) Stock option b) promotion
c) status d) participation
65 which one these is used for motivation?
a) job simplification b) job rotation
c) job enlargement d) job enrichment
66 which one the following is not an indicator of status of morale?
a) employee absenteeism b) employee turnover
c) job satisfaction d) promotion
67 which one the following is not a form of autocratic leader?
a) strict b) Benevolent
c) Incompetent d) free rein
68 Management grid has been developed by
a) Blake and mouton b) W. J. Reddin
c) Rensis Likert d) Elton Mayo
69 on which form of communication do managers spend maximum time?
a) oral communciation b) written communication
c) non verbal communication d) pictorial communication
70 Grapevine is a type of
a) informal communication b) formal communication
c) written communication d) pictorial communication
71 in which relationship, does upward communication travel?
a) from superior to subordinate b) from subordinate to superior
c) from peer to peer d) from managers to workers
72 Which of the following statement is true?
a) Planning is backward looking
b) Planning provides base for control
 c) Planning is just the reverse of control
d) Planning and control are not related
73 Which one of the following types of control is not relevant for operational
control?
a) Feedforward control b) Feedback control
c) concurrent control d) strategic control
74 Which one of the following is not essential element of an effective control
system?
a) Rigid b) Flexible
c) Economical d) Simple
75 Social performance of an organisation is measured by
a) Social responsibility b) social concern
c) social audit d) social system

Unit I
1. “Management is the art of getting things done through other people.” Explain the
importance of management in the light of this statement?
2. Is management a profession? Give arguments for and against the
professionalisation of management? Also present the scenario of Professionalism in
India?
3. Discuss the various skills required by a manager at different levels to achieve the
organizational objectives effectively and efficiently?
4. How will you classify the levels of management? Briefly explain the functions of
different levels of management?
5. Assess the contribution of F.W Taylor’s Scientific Management to the
development of management thought? How did Taylor propose to modify the functions
of foreman?
6. Assess the contributions of Henry Fayol to management Thought?
7. In what respect have Fayol’s principles of management resulted in contribution to
management methods that are different from the techniques of Taylor’s Scientific
Management?
8. Discuss the contributions of ‘Hawthorne Experiments’ in the development of
managerial thinking?
9. What are the main characteristics of Quality & effective Manager?
10. Explain the different Functions of management in detail?
11. What is the concept of universality of Management? Do you think that there are
universal principles of management that affect the success of all organizations and
managers? Elaborate the reasons for the stand taken by you.
12. “In Indian organizations, the social responsibilities are more in theory than in
practice” Do you agree with this statement? Explain.
13. “Profit is a major but not the sole criterion of the success of business
organizations”: Discuss this statement
14. Explain the concept of Business Ethics, its importance in Indian context?

Unit II
15. Explain the different Functions of management in detail?
16. How do functional areas of management differ from management functions?
Discuss the major functional areas of management?
17. “Planning is an intellectual process, the conscious determination of course of
action, the basis of decisions on purposes, facts and estimates” discuss the statement and
identify the steps involved in the planning process?
18. Describe the different types of plan. How does it differ from policy and rule?
What are the characteristics of a good procedure?
19. What do you mean by planning premises? How are they important in formulation
and operation of plans?
20. “Decision Making is the primary task of the management.” Discuss this statement
and explain the process of decision making?
21. What is the concept of organizing? What are its different elements?
22. What is the system approach of modern organization theory? Describe the
implications of system approach in organizational design?
23. Describe the various bases for departmentation and suggest a scheme of
departmentation for a large marketing company with a field network all over the country?
24. What do you mean by Span of management? As a manager, do you prefer wide or
narrow span? Give reasons? Explain the factors determining appropriate span of
management?
25. What do you mean by matrix organization? How does it differ from project
organization? Discuss the situations under which matrix organization can be used
fruitfully?
26. How does line & staff organization structure differ from pure line organization
structure? What are the benefits and limitations of line & staff organization structure?
27. What are the various factors which act as barriers to effective planning? How to
overcome those?
28. “What are the essential features of a good plan? How can planning be made
effective?
29. What are the main difficulties in the smooth relationship between line and staff
officials in an enterprise? How can they be removed?
30. Explain the meaning and scope of authority, responsibility and accountability. To
what extent, can these be delegated?
31. Discuss the reletive merits and demerits of decentralisation of authority. How can
decentralisation be made more effective?
32. Define the term policy and identify the features of a good policy. How does it
differ from strategy?
33. What do you mean by Management by objective? What are the different steps
involved in it?

Unit III
34. “A good Leader is not necessarily a good manager” Discuss this statement and
compare leadership with management.
35. What do you mean by Staffing? How is it important to an organization? Discuss
how every manager is responsible for staffing?
36. What is system approach to staffing? What are the factors which affect staffing?
37. What do you mean by manpower planning? What are the steps involved in
preparing a manpower plan?
38. What do you mean by job specification and job description? What are their uses?
39. Define recruitment & Selection? Point out the sources of recruitment? Explain the
selection procedure?
40. what is the need of training & development in an organization? How will you
differentiate between training & development? Explain the different methods of training?
41. What do you mean by performance appraisal? Discuss its need and importance of
organization?
42. Compare direction and supervision? How can supervision be made more
effective?
43. What is the concept of motivation? How does it affect behaviour and
performance?
44. Critically examine Herzberg’s two factor theory? Make a comparison between
theories of Hergberg & Maslow. Which of these theories do you prefer in Indian context?
Give reasons?
45. Explain the main features of Theory Z and their implications for managers. What
are the problems in applying the precepts of Theory Z?
46. “Non financial incentives are as strong motivators as financial one’s” Critically
examine this statement and discuss various non financial incentives and their role in
motivation?
47. What is carrot and stick approach of motivation? Explain the situation in which
carrot is more effective than stick and viceversa.
48. What do you mean by quality of worklife? What are the factors relevant for
improving the QWL?
49. What is concept of moral? How is morale related to productivity?
50. What does the directing functions of management involve? Discuss the
importance of directing in management process?
51. What are the various types of financial incentives which an organization can use
to motivate its employees?

Unit IV

52. Discuss the leadership styles with examples which Indian manager’s follow. Can
you suggest a best style for them?. How?
53. “Leadership is situational” Explain this statement by bringing out the situational
factors important for effective leadership?
54. What is managerial grid as provided by Blake and Mouton? What are the various
leadership styles in this grid? What combination of the style do you think the best and
why?
55. What are different barriers of communication? What steps can be taken to
overcome these barriers?
56. What do you mean by communication network? Discuss the relative merits &
Demerits of formal & Informal channels?
57. “Control is a fundamental function that ensures work accomplishment according
to plans” Analyze the statement and outline the various steps involved in contorl process.
58. What do you mean by controlling & explain its importance?
59. Discuss the stages of an operation at which control is exercised. How does
feedforward control differs from feedback control?
60. Discuss the various techniques used for controlling?
61. What do you mean by PERT amd CPM? What are their uses in managerial
planning and control?
62. Explain the techniques of controlling?
63. What do you mean by quality control & explain its techniques?
64. What is responsibility accounting? How does it differ from other braches of
accounting?
65. “Communication is sharing of understanding” discuss this and bring out the
process of communication?
66. What do you mean by leadership styles? How can leadership styles be decided
based on the use of authority & responsibility?
67. “ One of the few things in real permanence in this world is change” Explain this
statement and show why organizations bring changes in their operations over the period
of time?
 Case Study
Mr. soni had recently joined as the Managing Director of a car
manufacturing company which at present is incurring heavy losses. Mr soni
has been entrusted with fomidable task of rejuvenating the company. He
faces many challenges to achieve this task, such as controlling cost and
expenses, increasing the productdivity and boosting the morale of the
employees so that they unhesitatingly cooperate to achieve the set standards
of output.
Mr. Soni, in his previous company- also a car manufacturing company, as
the Deputy Managing Director had proved to be a proficient manger and a
talented leader who had successfully inspired his employees to increase the
productivity. He was commended for his maximum concern for both people
and production and also for bringing about an integration and harmony
between the needs of employee and of production.
In the new company also, Mr Soni continued his policies of participative
management and his high concern of production and people. With a view
to reviving the company nack to health, he effected some major changes.
First of all, he had decentralised the organisation so that the subordinates
could exercise their discretion and initiative in decision making and their
imagination and creativity in performing their other managerial functions.
Furthermore, he empowered the junior managers to sanction expenditure
upto an approved limit without seeking prior approval of the higher
management. Communication system was also improved to facilitate free
flow of upward and down ward communciation.
Mr Soni also adopted several measures to cut costs and wasteful
expenditures. He banned donations to charitable institutions but increased
the amount being spent on the welfare activities of the employees.
Will Mr Soni’s leadership style prove effective in ensuring bright futures of
the company? Some employees are of the view that lot of things are being
done but they might not be effective in the long run. Others disagreed with
them and said, ‘Okay, we will give it a try’.

Read and analysis the case and answer the following questions:-
a) Is Mr. Soni, a Theory of X or a Theory of Y manager? Give reasons for
your answer.
b) Will you advise Mr soni to change his presumptions about the nature of
people at work? Give reasons?
c) In terms of the ‘managerial grid’ developed by Blake and Mouton, how
would you describe Mr Soni’s leadership style? Is it the best style, if yes
then give reasons?