60+ MCQs on Management

For more MCQs on SEBI and NABARD join our Telegram channel:
 Management MCQs-1
Management: its nature and scope; The Management Processes; Planning, Organization, Staffing, Directing
and Controlling;

1. Which of the following is not a function of management?

(a) planning
(b) staffing
(c) cooperating
(d) Controlling

Answer: (c)
Explanation:
Management has been defined as a process of getting things done with the aim of achieving goals effectively and
efficiently. We need to analyse this definition. There are certain terms which require elaboration. These are (a)
process, (b) effectively, and (c) efficiently.
Process in the definition means the primary functions or activities that management performs to get things done.
These functions are​ planning, organising, staffing, directing and controlling​.

2. Effectiveness means
(a) doing the right task, completing activities and achieving goals
(b) doing the task correctly and with minimum cost.
(c) Both a and b
(d) Neither a nor b

Answer: (a)
Explanation:
Being effective or doing work effectively basically means finishing the given task. Effectiveness in management is
concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the
end result.
But it is not enough to just complete the tasks. There is another aspect also, i.e., being efficient or as we say doing
work efficiently.
Efficiency means doing the task correctly and with minimum cost. There is a kind of cost-benefit analysis involved and
the relationship between inputs and outputs. If by using less resources (i.e., the inputs) more benefits are derived
(i.e., the outputs) then efficiency has increased.

3. Management is
(a) an art
(b) a science
(c) both art and science
(d) neither

Answer: (c)
Explanation:​ Management has features of both art and science. The practice of management is an art. However,
managers can work better if their practice is based on the principles of management. These principles constitute the
science of management. Management as an art and a science are therefore not mutually exclusive, but complement
each other.

4. Which of the following is not an objective of management?

(a) earning profits
(b) growth of the organisation
 (c) providing employment
(d) policy making

Answer: (d)
Explanation:​ Management seeks to achieve certain objectives which are the desired result of any activity. They must
be derived from the basic purpose of the business. In any organisation there are different objectives and
management has to achieve all objectives in an effective and efficient manner. Objectives can be classified into
organisational objectives, social objectives and personal or individual objectives.
(i) Organisational Objectives:​ The main objective of any organisation should be to utilise human and material
resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival,
profit and growth.
Survival: The basic objectives of any business is survival. Management must strive to ensure the survival of the
organisation. In order to survive, an organisation must earn enough revenues to cover costs.
Profit: Mere survival is not enough for business. Management has to ensure that the organisation makes a profit.
Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for
covering costs and risks of the business. ​{Option a - eliminated}
Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. To
remain in the industry, management must exploit fully the growth potential of the organisation.​ {Option b -
eliminated}
(ii) Social objectives: ​It involves the creation of benefits for society. As a part of society, every organisation whether it
is business or non-business, has a social obligation to fulfill. This refers to consistently creating economic value for
various constituents of society. This includes using environmental friendly methods of production, giving employment
opportunities to the disadvantaged sections of society ​{option c - eliminated}​ and providing basic amenities like
schools and crèches to employees.
(iii) Personal objectives:​ Organisations are made up of people who have different personalities, backgrounds,
experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from
financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs
such as personal growth and development. Management has to reconcile personal goals with organisational
objectives for harmony in the organisation

5. Policy formulation is the function of

(a) top level managers
(b) middle level managers
(c) operational management
(d) all of the above

Answer: (a)
Explanation:​ Generally speaking there are three levels in the hierarchy of an organisation.
(i) Top Management:​ They consist of the senior-most executives of the organisation. They are usually referred to as
the chairman, the chief executive officer, chief operating officer, president and vice-president. Their basic task is to
integrate diverse elements and coordinate the activities of different departments. according to the overall objectives
of the organisation. These top level managers are responsible for the welfare and survival of the organisation. They
formulate overall organisational policies, goals and strategies for their achievement.
(ii) Middle Management:​ is the link between top and lower level managers. They are subordinate to top managers
and superior to the first line managers. They are usually known as division heads, for example production managers.
Middle management is responsible for implementing and controlling plans and strategies developed by top
management. At the same time they are responsible for all the activities of first line managers. Their main task is to
carry out the plans formulated by the top managers.
(iii) Supervisory or Operational Management:​ Foremen and supervisors comprise the lower level in the hierarchy of
the organisation. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility is limited
according to the plans drawn by the top management. Supervisory management plays a very important role in the
organisation since they interact with the actual work force and pass on instructions of the middle management to the
workers. Through their efforts quality of output is maintained, wastage of materials is minimised and safety standards
are maintained.

6. Coordination is
(a) function of management
(b) the essence of management
(c) an objective of management
(d) none of the above

Answer: (b)
Explanation: ​While it is true that coordination is a function of management, it can be much better described as the
essence of management.
A manager has to perform ​five interrelated functions (planning, organising, staffing, directing and controlling)​ in the
process of managing an organisation which is a system made up of different interlinked and interdependent
subsystems. A manager has to link these diverse groups towards the achievement of a common goal. ​The process by
which a manager synchronises the activities of different departments is known as coordination.
Coordination is the force that binds all the other functions of management. It is the common thread that runs
through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the
organisation. ​Coordination is sometimes considered a separate function of management. It is however, the essence
of management​, for achieving harmony among individual efforts towards the accomplishment of group goals

7. Budgeting is a managerial activity of which one of the following functions:

(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer: (a)
Explanation: ​Planning refers to anticipating the future conditions and choosing from among the alternative future
courses of action. The planning process generally includes the following activities.
i) ​Forecasting​ is looking ahead to anticipate the opportunity, problems and conditions in a future period of time.
ii) ​Establishing objectives​ means setting the end results to be accomplished by directing organisational efforts.
iii) ​Programming​ is establishing the sequence and priority of actions to be followed in the attainment of the
objectives.
iv) ​Scheduling​ is deciding on time sequence for programme steps.
v) ​Budgeting​ is allocation of resources to minimise costs.
vi) ​Establishing procedures​ means developing and applying standardised methods of performing a specific work.
vii) ​Developing policies​ involve establishment and interpretation of standing decisions that apply to repetitive
questions and problems of significance to the organisation as a whole.

8. Establishing performance standards ia a managerial activity of which one of the following functions:
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer: (d)
Explanation: ​Controlling enables management to ensure that achievement is in accordance with the established
plans. It involves:
i) Establishing performance standards for evaluating results.
ii) Performance on the basis of records and reports on the progress of work.
iii). Performance evaluation against the standards set.
iv) Corrective action to regulate operations, remove deficiencies and improve performance.

9. Motivating belongs to
(a) Planning function
(b) Organising function
(c) Directing function
(d) Controlling function

Answer: (c)
Explanation:​ Directing involves managing people and the work through the means of ​motivation​, proper leadership,
effective communication and coordination. A manager must develop the ability to command. He should issue orders
and instructions without arousing any resentment among the subordinates. He must be able to secure willing
obedience from his subordinates without destroying their initiative and creativity. Moreover, it requires a sound
communication system to enable exchange of ideas and information for common understanding.

10. Which of the following skills is most difficult to acquire?

(a) Technical skill
(b) Human skill
(c) Conceptual skill
(d) All of the above

Answer: (c)
Explanation:​ At all levels, managers require three types of skills. They are 1) technical skills, 2) human skills, and 3)
conceptual skills.
1. Technical skill​ : It is the ability of a manager to use the equipment, methods and techniques involved in
performing specific tasks. Technical skill is required more at the lower level of management i.e., at the
supervisory level. At higher levels, the technical skill is less important as managers can rely upon others for
technical information.
2. Human skill​ : The ability of a manager to work with, understand, and motivate people in the organisation is
known as human skill. It also involves the ability to build effective work teams. The human aspect of
management requires individual as , well as group relations to be maintained and developed for achieving
maximum efficiency. Human skills are important at all levels of management.
3. Conceptual skill​ : This consists of the manager's ability to coordinate all organisational activities and varied
interests involved in it. It involves viewing the organisation in its totality and understanding the
inter-dependence of its individual parts. ​Of all the skills, this conceptual skill is the most difficult skill to
acquire.​ Conceptual skill is very important for top management in formulating long-range plans, broad
policies and relating the business enterprise to the industry and economy.
 Management MCQs-2
The Role of a Manager in an Organization

1. Which of the following characterize a manager as being effective?

(a) They use a minimum amount of resources for the amount of outputs produced.
(b) They devote a large amount of time to planning.
(c) They achieve their goals.
(d) They interview, select, and train people who are most suitable to fill open jobs.

Answer: (c)
Explanation: Efficiency is getting output while using less resources. Hence, an efficient manager is naturally
characterised by one who produces results while using less resources.

2. Which type of issues are first level managers routinely influenced by?
(a) long range issues
(b) short range issues
(c) strategic issues
(d) shareholder issues

Answer: (b)
Explanation: ​The first level managers are also called by the name of first-line managers, shop-level managers, or the
supervisors. They are responsible for managing the workers—those employees who actually produce or manufacture
the product or provide the service that the company offers. They are routinely influenced by short range issues as
they have to deal with day-to-day management.

3. Which one of the following people is known for his classification of 10 Managerial roles?
(a) W. Edwards Deming
(b) Ken Blanchard
(c) Tom J. Peters
(d) Henry Mintzberg

Answer: (d)
4. According to Mintzberg, managerial roles can be broken down into interpersonal, informational, and
(a) Liaison.
(b) Decisional.
(c) Technical.
(d) conceptual

Answer: (b)

5. According to Mintzberg, which of the following is an example of the decisional roles which a manager plays?
(a) Allocating some of the resources of the organisation
(b) Acting as a spokesperson for the organisation
(c) Monitoring progress
(d) Leading

Answer: (a)

6. According to Mintzberg, all of the following are examples of the interpersonal roles of a manager, ​except​:
(a) Acting as a symbol
(b) Negotiating
(c) Leading
(d) Acting as a liaison

Answer: (b)

7. Which of the following is not an example of a decisional role?

a. resource allocator.
b. disturbance handler.
c. negotiator.
d. figurehead.

Answer: (d)

8. The head of a division in a company who is responsible for the production, marketing and finance of this division
and for generally ensuring its profitability is known as what type of manager?
(a) First-line manager
(b) General manager
(c) Supervisor
(d) Functional manager

Answer: (b)
Explanation: ​A general manager or GM is an executive who has overall responsibility for managing both the ​revenue
and ​cost​ elements of a company's ​income statement​, known as profit & loss (P&L) responsibility. A general manager
usually oversees most or all of the firm's ​marketing​ and ​sales​ functions as well as the day-to-day ​operations​ of the
business. Frequently, the general manager is responsible for effective planning, delegating, coordinating, staffing,
organizing, and decision making to attain desirable profit making results for an organization.

9. A staff manager is someone who performs which of these functions?

(a) is in charge of support functions such as finance, personnel or legal matters
(b) Is responsible for recruiting and selecting new staff
(c) Deals with customer complaints
(d) Manages the staff of the organisation
Answer: (a)
Explanation: Staff manager is the executive who provides information, advice, or technical assistance to aid line
managers; does not have the authority to give orders outside his or her own department or to compel line managers
to take action. Staff Manager is an assistant and advises line managers in accomplishing the basic goals.

10. Motivating team-members will be classified as which one of the following managerial roles?
(a) Spokesperson
(b) Disseminator
(c) Figurehead
(d) Leader

Answer: (d)
Explanation:
Interpersonal Roles
● Figurehead – includes symbolic duties which are legal or social in nature.
● Leader – includes all aspects of being a good leader. This involves building a team, coaching the
members, motivating them, and developing strong relationships.
● Liaison – includes developing and maintaining a network outside the office for information and
assistance.

Informational Roles
● Monitor – includes seeking information regarding the issues that are affecting the organization. Also,
this includes internal as well as external information.
● Disseminator – On receiving any important information from internal or external sources, the same
needs to be disseminated or transmitted within the organization.
● Spokesperson – includes representing the organization and providing information about the
organization to outsiders.

Decisional Roles
● Entrepreneur – involves all aspects associated with acting as an initiator, designer, and also an
encourager of innovation and change.
● Disturbance handler – taking corrective action when the organization faces unexpected difficulties which
are important in nature.
● Resource Allocator – being responsible for the optimum allocation of resources like time, equipment,
funds, and also human resources, etc.
● Negotiator – includes representing the organization in negotiations which affect the manager’s scope of
responsibility.
 Management MCQ-3
Leadership Styles; Leadership Theories; A successful Leader versus an effective Leader.

1. What do you call a style of leadership that takes account of others' views, opinions and ideas?
(a) Laissez-faire
(b) People-oriented
(c) Democratic
(d) Autocratic

Answer: (c)
Explanation: Democratic approaches rely on taking on board other people's opinions and views.

2. How can you describe the thinking and outlook of transformational leaders?
(a) Strategic
(b) Operational
(c) Functional
(d) Developmental

Answer: (a)
Explanation: Leaders who contribute to radically altering the environment are strategic in thinking.

3. What are the key characteristics of transactional leaders?

(a) Guiding, mentoring and motivating
(b) Guiding, commanding and motivating
(c) Guiding, demonstrating and motivating
(d) Guiding, mentoring and demonstrating
Answer: (a)
Explanation: Transactional leaders are characterised by their skills in guiding, mentoring and motivating.
Transactional Leadership:​ Leaders who guide, mentor, and motivate followers by clearly establishing the roles and
tasks for the achievement of the stated aims or goals
Transformational leadership:​ Leaders who inspire followers to act in ways that benefit the organisation or a wider
cause other than their own self-interest.

4. What is the term for power derived from status or position

in an organisation?
(a) Referent
(b) Expert
(c) Reward
(d) Legitimate

Answer: (d)

5. Who among the following has proposed ‘Great Man Theory’ of Leadership?
(a) Thomas Carlyle
(b) Philip Yetton
(c) Bernard M Bass
(d) Martin Evans

Answer: (a)
Explanation: This school of thought espouses that great leaders are born, not made. These individuals come into the
world possessing certain characteristics and traits not found in all people. These abilities enable them to lead while
shaping the very pages of history. Under this theory, prominent leaders throughout the course of history were born
to lead and deserved to do so as a result of their natural abilities and talents.
That is the foundation upon which the Great Man Theory was established in the 19th century by proponents such as
historian Thomas Carlyle, who put forth the idea that the world’s history is nothing more than a collection of
biographies belonging to great men.

6. Based on “Leadership Grid Theory’’, a country club manager is

someone whose -
(a) Concern is low for both people and production
(b) Concern for production is low, but for people is high
(c) Concern for production is high, bit for people is low
(d) Concern is high for both people and production

Answer: (b)
Explanation:

7. “Least-Preferred Coworker” (LPC) scale is integral to -

(a) Path-Goal theory of leadership
(b) Situational Theory of Leadership
(c) Leader Member Exchange Theory
(d) Contingency Theory of Leadership

Answer: (d)

8. What follower characteristic does Hersey and Blanchard’s (1971) situational leadership theory suggest a leader has
to adjust their behaviour to?
(a) subordinate readiness
(b) subordinate willingness
(c) subordinate maturity
(d) subordinate technical ability

Answer: (c)
Explanation: Situational leadership asserts that the characteristics of a successful leader will vary based on the people
he or she needs to lead, as well as on the context in which the group is operating. This theory stems from the belief
that individuals respond differently to particular leadership styles. For example, one worker may respond positively to
a leader who gives detailed directives, but another worker may not work well under that approach but instead
responds well to a collaborative leadership style. Hence, the leader has to adjust their behaviour to the subordinate's
maturity.

9. Which of the leadership theories has identified Exploitative authoritative, Benevolent authoritative, Consultative
and Participative as four main styles of leadership?
(a) Linkert’s Leadership Theory
(b) Managerial Grid Theory
(c) Kurt Lewin's Leadership Theory
(d) Path Goal Theory of Leadership

Answer: (a)

10. Under Ohio State studies, which of the following refers to how strict a leader’s standards are?
(a) Independent dimensions
(b) Comprehensive dimensions
(c) Initiating structures
(d) Consideration

Answer: (c)
Explanation: The most comprehensive and replicated of the behavioural theories resulted from research that began
at Ohio State University in the late 1940s92. These studies sought to identify independent dimensions of leader
behaviour. Beginning with over a thousand dimensions, they eventually narrowed the list down to two categories
that substantially accounted for most of the leadership behaviour described by subordinates. They called these two
dimensions initiating structure and consideration.
The Initiating structure refers to the extent to which a leader is likely to define and structure his or her role and those
of subordinates in the search for goal attainment. It includes behaviour that attempts to organize work, work
relationships and goals.
The Consideration is described as the extent to which a person is likely to have job relationships that are
characterized by mutual trust, respect for subordinates’ ideas, and regard for their feelings. He shows concern for his
follower’s comfort, well-being, status and satisfaction.
 Management MCQs-4
Human Resource Development: Concept of HRD; Goals of HRD;

1. Which of these activities is not included in the scope of human resource management?
(a) Job analysis and job design
(b) Motivation and communication
(c) Safety and health
(d) Organizational structure and design
Answer: (d)
Explanation: Organizational structure and design is more a part of organizational development, than human resource
development.
Human resource development scope includes:
● Human resources planning
● Job analysis design
● Recruitment and selection
● Orientation and induction
● Training and development
● Performance appraisal
● Compensation planning and remuneration
● Motivation, welfare, health and safety
● Industrial relations

2. Which of the following tasks related to recruitment and hiring is not typically handled by HR staff?
(a) Specify necessary job qualifications
(b) Develop pool of qualified applicants
(c) Conduct initial screening packages
(d) Explain benefit packages

Answer: (a)
Explanation: Generally specifying job qualification is done by a technical guy or head of that department (where
vacancy arises), not HR staff.

3. The poor quality of selection will mean extra cost on ______ and supervision
(a) Training
(b) Recruitment
(c) Work quality
(d) None of the above

Answer: (a)

4. Quantitative performance measures used by human resource managers to assess operations are called
(a) Ratios
(b) Benchmarks
(c) Metrics
(d) Grades

Answer: (c)
Explanation:
Qualitative = Benchmarks; Quantitative = Metrics
5. ______ are useful tool for determining why employees are leaving an organisation
(a) Government labour reports
(b) Exit interviews
(c) Benchmarks
(d) HR portal

Answer: (b)
Explanation: In human resource terms, an exit interview is a survey that is conducted with an employee when he or
she leaves the company. The information from each survey is used to provide feedback on why employees are
leaving, what they liked about their employment and what areas of the company need improvement.

6. The _______ measures the rate at which employees leave the company
(a) Turnover costs
(b) Turnover rate
(c) Time to fill
(d) Cost per hire

Answer: (b)
Explanation: Many aspirants get confused with Employee turnover rate. There was a question in RBI grade B mains
where one question went something like which of the following is a sign of bad performance by the Company. Many
aspirants seem to be confused into thinking that higher employee turnover is something good. But higher employee
turnover is bad for the organisation. It means many employees are leaving the organisation on a regular basis.

7. When managers use metrics to assess performance and then develop strategies for corrective action, they are
performing the ____ function of management.
(a) Planning
(b) Leading
(c) Staffing
(d) Controlling

Answer: (d)
Explanation: Control is a primary goal-oriented function of management in an organisation. It is a process of
comparing the actual performance with the set standards of the company to ensure that activities are performed
according to the plans and if not then taking corrective action. Clearly, when managers use metrics to assess
performance and then develop strategies for corrective action, they are performing control function.

8. Most people who are classified as non-traditional workers are _____

(a) Contingent workers
(b) Independent contractors
(c) Job sharing
(d) Working multiple jobs

Answer: (b)
Explanation: Freelancers, self-employed workers, contract workers, remote workers, consultants, etc are categorised
as non-traditional workers

9. Based on his 14 principles, Edward Deming is a strong proponent of

(a) Increase in quotas to enhance productivity
(b) Inspection at the end of production process
(c) Training and development of employees
(d) Creating quality slogans to motivate workforce
Answer: (c)

10. Action learning is a training techniques in which

(a) Trainee is allowed to work full time analyzing and solving problems in other departments
(b) Trainee moves from department to department to broaden experience
(c) Trainee is presented with written description of organisational problems
(d) Trainee is sent for formal training outside the organisation.

Answer: (a)
 Management MCQs-5
Motivation Theories

1. Which is NOT a dimension in Maslow's Hierarchy of Needs?

(a) Ego
(b) Physiological
(c) Safety
(d) Esteem

Answer: Ego
Explanation: Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of
human needs, often depicted as hierarchical levels within a pyramid. Needs lower down in the hierarchy must be
satisfied before individuals can attend to needs higher up. From the bottom of the hierarchy upwards, the needs are:
physiological, safety, love and belonging, esteem, and self-actualization.

2. _____ theory is an extension of Maslow's hierarchy of needs.

(a) Two-factor
(b) Theory Y
(c) Theory X
(d) ERG

Answer: ERG
Explanation: To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research,
Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He recategorized
Maslow’s hierarchy of needs into three simpler and broader classes of needs:
 ● Existence needs-​ These include need for basic material necessities. In short, it includes an individual’s
physiological and physical safety needs.
● Relatedness needs-​ These include the aspiration individual’s have for maintaining significant interpersonal
relationships (be it with family, peers or superiors), getting public fame and recognition. Maslow’s social
needs and external component of esteem needs fall under this class of need.
● Growth needs-​ These include need for self-development and personal growth and advancement. Maslow’s
self-actualization needs and intrinsic component of esteem needs fall under this category of need.

3. Which of the following comments was made by a Theory X manager?

(a) Employees dislike work.
(b) Employees will exercise discretion.
(c) The average person will seek responsibility.
(d) Employees can view work as natural as rest or play.

Answer: Employees dislike work.

Explanation:
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behaviour at work, or
in other words, two different views of individuals (employees): one of which is negative, called as Theory X and the
other is positive, so called as Theory Y. According to McGregor, the perception of managers on the nature of
individuals is based on various assumptions.

Assumptions of Theory X

● An average employee intrinsically does not like work and tries to escape it whenever possible.
● Since the employee does not want to work, he must be persuaded, compelled, or warned with punishment so
as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a
more dictatorial style.
● Many employees rank job security on top, and they have little or no aspiration/ ambition.
● Employees generally dislike responsibilities.
● Employees resist change.
● An average employee needs formal direction.

Assumptions of Theory Y

● Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts in an
inherent manner in their jobs.
● Employees may not require only threat, external control and coercion to work, but they can use self-direction
and self-control if they are dedicated and sincere to achieve the organizational objectives.
● If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization.
● An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to obtain
responsibility.
● The employees have skills and capabilities. Their logical capabilities should be fully utilized. In other words,
the creativity, resourcefulness and innovative potentiality of the employees can be utilized to solve
organizational problems.

4. Which of the following is a motivational factor, according to Herzberg's two-factor theory?

(a) quality of supervisions
(b) Recognition
(c) Pay
(d) relations with others

Answer: recognition
Explanation: Herzberg's findings revealed that certain characteristics of a job are consistently related to job
satisfaction, while different factors are associated with job dissatisfaction. These are:

5. According to _____ theory, allocating extrinsic rewards for behaviour that had been previously intrinsically
rewarding tends to decrease the overall level of motivation.
(a) management by objectives
(b) Goal-setting
(c) Self-efficacy
(d) cognitive evaluation

Answer: cognitive evaluation

Explanation: Cognitive evaluation theory, which states that allocating extrinsic rewards for behaviour that had been
previously intrinsically rewarding tends to decrease the overall level of motivation, has been widely supported by
research.

6. According to Edwin Locke, _____ goals produce the greatest degree of achievement.
(a) ambiguous and difficult
(b) specific and difficult
(c) specific and easy
(d) ambiguous and easy

Answer: specific and difficult

Explanation: In the 1960's, ​Edwin Locke​ put forward the ​Goal​-​setting​ theory of motivation. This theory states that
goal setting​ is essentially linked to task performance. It states that specific and challenging ​goals​ along with
appropriate feedback contribute to higher and better task performance.

7. _____ programs emphasize participatively set goals that are tangible, verifiable, and measurable.
(a) Self-efficacy
(b) Management by objectives
(c) Reinforcement
(d) Organizational

Answer: Management by objectives

Explanation: The term Management by Objectives was coined by Peter Drucker in 1954. ​The process of setting
objectives in the organization to give a sense of direction to the employees is called as Management by Objectives​.
It refers to the process of setting goals for the employees so that they know what they are supposed to do at the
workplace. Management by Objectives defines roles and responsibilities for the employees and help them chalk out
their future course of action in the organization. Management by objectives guides the employees to deliver their
level best and achieve the targets within the stipulated time frame.

8. _____ is also known as social cognitive theory or social learning theory.

(a) Self-efficacy
(b) Reinforcement
(c) Goal-setting
(d) Cognitive evaluation

Answer: Self-efficacy
Explanation: Self-efficacy theory deals with an individual's belief that he or she is capable of performing a task.

9. The _____ effect is a form of self-fulfilling prophecy where believing something to be true can make it true.
(a) Archimedes
(b) Galatia
(c) Icarus
(d) Pygmalion

Answer: Pygmalion
Explanation: ​The Pygmalion effect​, also known as the ​Rosenthal effect​, is the phenomenon whereby higher
expectations lead to an increase in performance,​ ​named after the Ovid tale of a sculptor who falls in love with one of
his statues.

10. _____ theory argues that behaviour is a function of its consequences.

(a) Equity
(b) Reinforcement
(c) Goal-setting
(d) Expectancy

Answer: Reinforcement
Explanation: Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that an
individual's behaviour is a function of its consequences. It is based on the “law of effect”, i.e, an individual's behaviour
with positive consequences tends to be repeated, but an individual's behaviour with negative consequences tends
not to be repeated.

11. _____ theory makes the assumption that people will compare their job inputs and outcomes with those of others
and then respond to eliminate perceived inequities.
(a) Equity
(b) Reinforcement
(c) Goal-setting
(d) Expectancy

Answer: Equity
Explanation: The core of the equity theory is the principle of balance or equity. As per this motivation theory, an
individual’s motivation level is correlated to his perception of equity, fairness and justice practiced by the
management. Higher is an individual's perception of fairness, greater is the motivation level and vice versa. While
evaluating fairness, an employee compares the job input (in terms of contribution) to outcome (in terms of
compensation) and also compares the same with that of another peer of equal cadre/category. O/I ratio
(output-input ratio) is used to make such a comparison.

12. When an employee compares their inputs and outcomes with another employee within their organization, they
are making a(n) _____ comparison.
(a) Self-outside
(b) Self-inside
(c) Other-inside
(d) Other-outside

Answer: c
Explanation: The four comparisons an employee can make have been termed as “referents” according to Goodman.
The referent chosen is a significant variable in equity theory. These referents are as follows:
● Self-inside: An employee’s experience in a different position inside his present organization.
● Self-outside: An employee’s experience in a situation outside the present organization.
● Other-inside: Another employee or group of employees inside the employee’s present organization.
● Other-outside: Another employee or employees outside the employee’s present organization.
 Management MCQs-6
Communication

1. The most important goal of business communication is _________.

(a) Favourable relationship between sender and receiver
(b) Organizational goodwill
(c) Receiver response
(d) Receiver understanding

Answer: (d)
Explanation: The most important goal of business communication is receiver understanding. Every receiver who
enters into the Communication Process brings with them their own ideas and feelings that influence their
understanding of your message, and their response to it. That means it's your job, as the sender, to take these ideas
and feelings into consideration when drawing up your message.

2. Appeals and representations are used in _____ communication.

(a) Horizontal
(b) Downward
(c) Upward
(d) Grapevine

Answer: (c)
Explanation: Appeals and representations are used in upward communication. Upward communication is the
communication where information or messages flows from the down or bottom of the organizational structure form
the top of the organizational structure.

3. The study of communication through touch is ________.

(a) Chronemics
(b) Haptics
(c) Proxemics
(d) Semantics

Answer: (b)
Explanation: The study of communication through touch is haptics. Haptic communication is a form of nonverbal
communication and the way by which people and animals communicate via touching.

4. _________ is not one of the 7Cs of communication.

(a) Conciseness
(b) Correctness
(c) Clarity
(d) Character

Answer: (d)
Explanation: Character is not one of the 7 Cs of communication. The 7 C’s of Communication is a checklist that helps
to improve the professional communication skills and increases the chance that the message will be understood in
exactly the same way as it was intended. According to the seven ​Cs​, ​communication​ needs to be: clear, concise,
concrete, correct, coherent, complete and courteous.

5. What is the primary purpose of the report?

(a) To control problems, sell products and service
 (b) To analyze problems and predict practical alternatives
(c) To monitor and control production, sales, shipping, etc.
(d) To solve problems and supply facts

Answer: (b)
Explanation: To analyze problems and predict practical alternatives is the primary purpose of report. Reports
communicate information which has been compiled as a result of research and analysis of data and of issues. Reports
can cover a wide range of topics, but usually focus on transmitting information with a clear purpose, to a specific
audience.

6. All of the following might be used to improve organizational communication except

(a) Surveys and feedback
(b) Management training
(c) Filtering
(d) TV networks

Answer: (c)
Explanation: All of the following might be used to improve organizational communication except filtering.
Organizational communication is the exchange of information, ideas, and views within and outside the organization.
Organizational communication indicates communication not only in business but also in hospitals, churches,
government agencies, military organization, and academic institutions.

7. What is necessary for effective communication to occur?

(a) The right environment, the right people, a message in a timely manner
(b) The right information, the right environment, feedback
(c) The right people, the right information, a message in a timely manner
(d) The right people, feedback, the right information

Answer: (c)
Explanation: The right people, the right information, a message in a timely manner is necessary for effective
communication to occur. Effective communication can help to foster a good working relationship between you and
your staff, which can in turn improve morale and efficiency.

8. _______ barrier is related to the process of coding and encoding the message
(a) Organisational
(b) Semantic
(c) Technological
(d) Individual

Answer: (b)
Explanation: Semantic barrier is related to the process of coding and decoding the message. Semantic barriers to
communication are the symbolic obstacles that distort the sent message in some other way than intended, making
the message difficult to understand. The meaning of words, signs and symbols might be different from one person to
another and the same word might have hundreds of meanings.

9. As per Newman and Summer Communication is the Exchange of

(a) Facts
(b) Opinion
(c) Emotions
(d) All of the above
Answer: (d)
Explanation: As per Newman and Summer Communication is the Exchange of Facts, Opinion and Emotions. It is an
exchange of facts, ideas, opinions or emotions by two or more persons. It is the sum of all the things one person does.

10. The following is/are the most effective ways of communication.

(a) Verbal
(b) Non-verbal
(c) Written
(d) All of the above

Answer: (c)
Explanation: The written communication is the most effective ways of communication. Written communication allows
one to think thoroughly and refer back to it whenever required. This means record maintenance in Business. There
are different ways businesses encounter written communication.