MULTIPLE CHOICE QUESTIONS.

Decision-making is the result of a complex, eight step process that should

conclude with
a.
b.
c.
d.

Implementing the alternative.

Identifying the problem
Analyzing the problem
Evaluating the effectiveness of the decision.

Plans that establish the organizations overall goals and position the
organization in relation to its environment are:
a.
b.
c.
d.

Tactical plans
Strategic plans.
Standing plans
Operational plans.

The idea that managers try to make decisions rationally, but are limited by
their ability to gather and process information is called
a.
b.
c.
d.

Bias.
Intuitive decision-making
Bounded rationality
Escalation of commitment

The people at the bottom of the organization generally deal with repetitive
and familiar problems such as workers who are late or machinery that
breaks down. As a result, most of the decisions made by first line
supervisors are
a. Programmed decisions
b. Conceptual
c.
Wrong.
d.
Un programmed

Decisions are made in each management function. When we decide about

what activities should be controlled and how. MIS system, Significance of
deviation, we do_________
a.
b.
c.
d.

planning
organizing
Leading
Controlling

A primary functional managerial activity that involves: Defining the

organizations goals, establishing an overall strategy for achieving those
goals, developing a comprehensive set of plans to integrate and coordinate
organizational work.
a.
b.
c.
d.

Coordination
organization
Communication
Planning.

Of the two key elements in the planning process, formal goals are
a.
b.
c.
d.

The desired objectives toward which the members of the organization are working.
Known only to top management and are not written or publicized.
The same as plans.
Documents that allocate resources and schedules.

Documents that outline how goals are to be accomplished, describe how

resources are to be allocated and establish activity schedules
a.
b.
c.
d.

Procedures
Policies
Plans
Regulations.

Management by objectives (MBO) is a management system

a. Where employees set their own goals.

b. Through which managers set goals for employees that fit within the goals of the
organization.
c. In which achievement of goals is separate from allocation of rewards such as pay
increases.
d. Through which goals are jointly determined by employees and their managers.

The plans which specify the details of how the overall goals are to be
achieved, Cover short time period are called:a.
b.
c.
d.

Strategic plans
Operational plans
Single use plan
Specific plans

Strategic management is that set of managerial decisions and actions that

determine the long-run performance of an organization by
a. Ignoring the external environment
b. Coordinating and focusing the many decisions made by managers to achieve the
organizations goals.
c. Providing a rigid structure of goals at all levels
d. Giving one response to any change in the environment

The process that analyzes an organizations external environment for

opportunities that fit its internal resources and capabilities to find a
strategic niche is known as
a.
b.
c.
d.

A Porter analysis
Portfolio analysis
BCG analysis
SWOT analysis.

Any activity that has been performed well create value for the customer
and strengthen the competitive position of the firm is called:a.
b.
c.
d.

opportunity
Threat
weakness
strength

At a time when an industry is involved in rapid change and great

uncertainty, or when a company is already stretched to its limits, a strategy
of __________ would be a wise choice.
a.
b.
c.
d.

Stretching beyond its limits

The rule of three
Growth
Stability

According to the Boston Consulting Groups Portfolio Analysis matrix, a

product with a low market share and low growth rate is a
a.
b.
c.
d.

Dog
Cash cow
Question Mark
Star

The number of employees who can be effectively and efficiently supervised

by a manager.
a.
b.
c.
d.

Centralization
Work specialization
Span of control
Chain of command

__________ refers to the right inherent in a managerial position to tell

people what to do and expect them to do it.
a.
b.
c.
d.

Accountability
Unity of command
Responsibility
Authority

A manufacturing organization that uses outside suppliers to provide

product components for its final assembly operations is called:a. Modular organization

b. Network organization
c. Learning organization
d. Virtual organization.

Mechanistic organizational structures tend to be most effective in

a.
b.
c.
d.

Dynamic and complex environment

Highly technological environment
Stable and simple environments
Non of the above.

A matrix structure is a contemporary organization design

a.
b.
c.
d.

Where each employee has only one boss.

With permanent assignments from all functions.
That follows all of Fayols principles of organizing
That brings together those with functional expertise such as marketing and those with
product knowledge.

The element of motivation that is an internal state that makes certain

outcomes attractive is
a.
b.
c.
d.

An effort
A goal
A drive
A need

The theory which assumes that a desired behavior is a function of its

consequences, is externally caused, and if reinforced, is likely to be
repeated.
a.
b.
c.
d.

Three-Needs Theory
Goal-Setting Theory
Reinforcement Theory
Expectancy Theory

According to McClellands three needs theory of motivation, The drive to

excel and succeed and to achieve according to the standards is
a.
b.
c.
d.

nAff
nPow
nAch
All three needs.

Designing motivating jobs by expanding them vertically through added

planning and responsibility tasks is
a.
b.
c.
d.

Job enlargement.
Job scope
Job arrangement
Job enrichment

The motivation theory that explains why you would be upset to discover
that a co-worker with the same qualifications and experience makes Rs.
10,000/- more than you do is
a.
b.
c.
d.

Maslows hierarchy
McGregors Theory X and Theory Y
McClellands Theory
Equity theory

The approach to control that uses shared values, norms, traditions, beliefs,
and the organizations culture to control is known as
a.
b.
c.
d.

Bureaucratic control
Statistical process control
Clan control
Market control

Personal observation, Statistical reports, Oral reports, Written reports

are the sources of information used in_______________
a.
b.
c.
d.

Comparing
Adapting the feedback
Measuring
Taking managerial action

The most desirable type of control, because it anticipates problems before

they occur, is
a.
b.
c.
d.

Feed forward control

Feedback control.
Concurrent control.
Statistical process control.

The value that the stock market places on a firms past and expected
capital investment projects is :a.
b.
c.
d.

Market value added

Departmental statistical process control.
Feed forward control
Economic value added.

A very important characteristic of learning organizations is that

a. They are highly centralized.
b. Employees are reluctant to collaborate and share knowledge.
c. Employees share information and collaborate on work activities across
specialties and hierarchical levels of the organization.
d. They must have a wide span of control.

TRUE AND FALSE

Top managers make decisions that about organization goals, where to
locate new facilities, and new products or services to offer.
a. True
b. False

A discrepancy or disparity between an existing and desired state of affairs

is called a
Decision criteria.
a. True
b. False

Because they cant analyze all of the information about all of alternatives,
managers maximize rather than satisfice.
a. True
b. False

Escalation of Commitment is increasing or continuing a commitment to

previous decision despite mounting evidence that the decision may have
been wrong.
a. True
b. False

A manager with an analytic style is more likely to be comfortable with a

decision made rationally than an intuitive one.
a. True
b. False

Stated goals are the goals which the organizations actually pursues as
defined by the actions of its members.
a. True
b. False

The Operational plans establish the organizations overall goals.

a. True
b. False

Standing Plans are ongoing plans that provide guidance for activities
performed repeatedly.
a. True
b. False

Operational plans cover longer time periods than strategic goals, usually
one year, two years or five years.
a. True
b. False

Studies of actual MBO programs shows that they do not affect

productivity and employee performance.
a. True
b. False

Opportunities: positive trends in external environmental factors.

a. True
b. False

The negative side of a strong corporate culture is that it is very easy to

change.
a. True
b. False

According to the BCG matrix, a star has high growth and high market
share .
a. True
b. False

A distinct edge based on its core competencies that is unique and sets an
organization apart is its opportunity.
a. True
b. False

According to Porters model of competitive forces, factors such as industry

growth rate, increasing or falling demand, and product differences
determine the intensity of the rivalry between firms already in the
industry.
a. True
b. False

Organizational designs involve decisions about work specialization,

departmentalization, chain of command, span of control, level of
centralization, and formalization.
a. True
b. False

Work specialization is the continuous line of authority that flows from the
top to the bottom of an organization.
a. True
b. False

The rights inherent in a managerial position to tell people what to do and

to expect them to do it is called responsibility.
a. True
b. False

Large organizations, those with 2,000 or more employees, tend to have

more specialization, centralization, rules and regulations than smaller
organizations.
a. True
b. False

Employee empowerment is addition of more tasks in his job horizontally.

a. True
b. False

McGregors theory X assumes that workers have little ambition, dislike

work, avoid responsibility, and require close supervision.
a. True
b. False

Expectancy Theory Proposes that employees perceive what they get from a
job situation (outcomes) in relation to what they put in (inputs) and then
compare their inputs-outcomes ratio with the inputs-outcomes ratios of
relevant others.
a. True
b. False

The goal of open book management is to get employees to think like owners
by showing them the impact their decisions and actions have on the
financial health of the company.
a. True
b. False

One way to reduce motivation is to combine job enlargement and feedback.

a. True
b. False

Motivators for professionals are Job challenge and Organizational support

of their work
a. True
b. False

Comparing is the last step in the control process.

a. True
b. False

Control is important because it is the only way managers know whether

organizational goals are being met.
a. True
b. False

Because there are so many of them, industry rankings are a poor measure
of organizational effectiveness.
a. True
b. False

Budgets provide managers with qualitative measures of success.

a. True
b. False

Computerized management information systems increase the ability to

develop effective control systems.
a. True
b. False

What is motivation, Describe Motivation Process and McGregors

Theory X and Theory Y
Why control is important , Elaborate the three steps in control
process.