Principles of Management

Module-1

Self-Assessment Test

1. What are the three interpersonal roles of managers?

a) Figurehead, leader and liaison

b) Spokesperson, leader, coordinator

c) Director, coordinator, disseminator

d) Communicator, organiser, spokesperson

2. Which one is not a recognised key skill of management?

a) Conceptual skills

b) Human skills

c) Technical skills

d) Writing skills

3. Which is NOT an informational role of manager?

Monitor’s role

B. Disturbance’s handler role

C. Disseminator’s role

D. spokesperson’s role

4. In the context of decision-making, what does the term "Rationality" mean?

a) Making decisions based on emotions and instincts

b) Making decisions based on facts, logic, and rational thinking

c) Making decisions based on intuition and guesswork

d) Making decisions without considering the consequences

5. Which of the following is a characteristic of an effective manager?

a) Micromanaging every task of their team

b) Having a rigid leadership style

c) Fostering open communication and teamwork

d) Avoiding decision-making responsibilities

6. Bounded rationality refers to:

a) The rational decision-making process without any limitations.

b) The process of making decisions based on emotions and instincts.

c) The idea that decision-makers have limited information and cognitive abilities.

d) The process of involving employees in decision-making.

7. Bounded rationality suggests that decision-makers:

a) Always make optimal decisions given the available information.

b) Consider all possible alternatives before making a decision.

c) Use heuristics and shortcuts to simplify complex decision-making tasks.

d) Rely solely on intuition and gut feelings for decision-making.

8. Which of the following is an example of bounded rationality in decision-making?

a) A manager thoroughly analyzing all possible outcomes before choosing a course of action.

b) A consumer buying a product based on emotional appeal rather than a detailed cost-benefit

analysis.

c) An organization using complex algorithms to make business decisions.

d) A leader relying solely on their intuition to guide organizational strategies.

9. The principle of satisficing in bounded rationality suggests that decision-makers:

a) Seek to maximize their gains in every decision.

b) Settle for the first solution that meets their minimum criteria.

c) Always choose the option with the highest perceived utility.

d) Consider all alternatives equally before making a decision.

10. In the context of bounded rationality, "cognitive limitations" refer to:

a) The inability to think critically in high-pressure situations.

b) The inability to make decisions based on emotions.

c) The limited capacity of the human mind to process information and analyse all

alternatives.

d) The tendency to rely on instincts for decision-making.

11. Bounded rationality challenges the assumption of traditional economic theory, which

assumes that individuals:

a) Always act in their own self-interest.

b) Are perfectly rational and have access to complete information.

c) Are not influenced by emotions in decision-making.

d) Rely on social norms to make decisions.

12. In "The Intern's Dilemma" case, Mark Yang demonstrated effective self-
management.

How did his awareness of his core values served him?

a) A set of rules for personal conduct

b) A guideline for aggressive career advancement

c) A strategic plan for financial success

d) A way to conform to societal expectations

13. According to Drucker’s theory of ‘managing oneself’, one's career plan should be based

on:

a) The latest industry trends and fads

b) The goals and expectations of colleagues and supervisors

c) An honest assessment of one's strengths and weaknesses

d) Copying the career paths of successful individuals

14. In "Managing Oneself," Drucker suggests that individuals should be prepared to

make:

a) Frequent job changes to explore different career paths

b) Sacrifices in personal life to excel professionally

c) Decisions based on external pressures and trends

d) A lifelong commitment to learning and self-improvement

15. The central theme of "Managing Oneself" is the concept of personal responsibility,
which

implies that individuals should:

a) Blame external factors for any career setbacks

b) Seek assistance from colleagues for all decision-making

c) Take charge of their own learning, development, and career choices

d) Delegate important tasks to others to free up personal time

16. How does the scientific aspect of management manifest?

a) By following strict rules and regulations in decision-making.

b) By using empirical evidence and data to make informed decisions.

c) By relying on intuition and personal judgment to guide actions.

d) By avoiding experimentation and sticking to proven methods.

17. In what ways does the "art" of management become evident?

a) By strictly adhering to predetermined processes and procedures.

b) By using creative problem-solving and decision-making techniques.

c) By avoiding subjective approaches and focusing on quantifiable data.

d) By relying solely on standardized best practices.

18. Which of the following characteristics best describes Indra Nooyi's management

approach?

a) Authoritarian and directive

b) Democratic and inclusive

c) Laissez-faire and hands-off

d) Autocratic and dominating

19. One of Indra Nooyi's key management skills is her ability to:

a) Avoid taking risks and stick to traditional practices.

b) Set unrealistic goals to challenge employees.

c) Adapt to changing market conditions and drive innovation.

d) Delegate all decision-making responsibilities to subordinates.

20. Indra Nooyi's tenure as the CEO of PepsiCo was marked by her focus on promoting:

a) Unhealthy snacks and sugary beverages.

b) Sustainable business practices and healthier product options.

c) Aggressive marketing strategies targeting children.

d) Outsourcing manufacturing to low-cost countries.

21. What role did strategic planning play in Indra Nooyi's management style?

a) She disregarded strategic planning and relied solely on instincts.

b) She prioritized short-term gains over long-term strategies.

c) She emphasized long-term planning and goal-setting to drive growth.

d) She made spontaneous decisions without considering future implications.

22. Indra Nooyi's effective communication skills allowed her to:

a) Maintain a distant and aloof relationship with employees.

b) Withhold crucial information from stakeholders.

c) Clearly articulate her vision and rally support for company goals.
d) Avoid addressing sensitive issues and conflicts.

23. During her leadership, Indra Nooyi successfully led PepsiCo's transformation to focus on:

a) Expanding into unrelated industries for diversification.

b) Increasing profits without considering social responsibility.

c) Healthier product offerings and sustainability initiatives.

d) Undercutting competitors' prices to gain market share.

24. Which of the following statements is true about efficiency and effectiveness?

a) Efficiency and effectiveness are the same concepts with interchangeable meanings.

b) Efficiency focuses on resource optimization, while effectiveness emphasizes goal

attainment.

c) Efficiency is solely concerned with customer satisfaction, while effectiveness focuses on

cost reduction.

d) Efficiency and effectiveness are unrelated and do not impact each other.

25. How can efficiency be measured in an organization?

a) By calculating the number of customer complaints received.

b) By comparing the actual output with the planned output.

c) By analyzing employee turnover rates.

d) By evaluating the company's market share.

26. Which of the managerial roles (out of Henry Mintzberg’s role) would you recommend the

CEO in the case to play more effectively?

ANS) NEGOTIATOR, ENTRPRENEUR, DISSEMINATOR

27. Will Mark Yang prove to be an effective manager? If so, how?

28. Which skills can Mark Yang learn from Indra Nooyi to become an effective leader in the

future?