Revision Class 2 Lyst7012

Revision Class 2
TABLE OF CONTENT
1. PERCEPTION
2. MOTIVATION
3. LEADERSHIP
4. AUTHORITY & POWER
5. COMMUNICATION
PERCEPTION
9999466225 w w w. a n u j j i n d a l . i n info@anujjindal.in
Q.1) Which of the following is the correct sequence of the perceptual process?
[a] Inputs---Perceptual mechanisms---Output---Shaping up of behaviour

[b] Perceptual mechanisms---Inputs---Shaping up of behaviour---Output
[c] Perceptual mechanisms---Inputs ---Output--- Shaping up of behaviour
[d] Inputs---Shaping up of behaviour---Perceptual mechanisms---Output
[e] Inputs---Output---Shaping up of behaviour--- Perceptual mechanisms
Answer – (a)
Perception is the process through which people receive, select, organise and interpret
information from their environment.
Inputs: The perceiver comes across information, objects, events, people, etc.
in the environment. These serve as the inputs of the perceptual process. Thus,
perceptual inputs encompass all stimuli that exist in the environment.
Perceptual Mechanisms: when the perceiver receives information, he tries to

process it through the sub-processes of selection, organisationand
interpretation. Thus, the mechanisms of perception are selection, organisation
and interpretation. Perceptual selection takes account of only those stimuli that
are relevant and appropriate for an individual.
Outputs: As a result of the perceptual process, the outputs that the individual gets
are changes in attitudes, opinions, beliefs, feelings, etc.
Behaviour: The perceiver’s behaviour is shaped by the perceived outputs,

i.e., changes in attitudes, opinions, beliefs, etc. The perceiver’s behaviour
generates responses depending upon the situation and these responses
further give rise to a new set of inputs.
Miss Sarita was employed in a multi-product company and was placed in the payroll office as a Steno.
She was intelligent, cheerful, energetic and had pleasing manners, but looked delicate and somewhat
lacked in self-confidence. The payroll officer had asked for a girl who was good at figures, could type
with reasonable speed and accuracy and do shorthand to perform the job efficiently. The payroll
officer was immensely pleased with Sarita’s intelligence.
There were twenty girls in the payroll office, and Sarita readily made friends with all of them. She not
only adapted herself quickly to the job but evidently enjoyed the work. She was usually the first to
arrive in the morning. She became an asset to the department head and within a year had
demonstrated to the employment manager, Mr Praveen, that she was in line for promotion.
Consequently, when Mr Praveen received a requisition for a secretary to one of the sales executives,
Sarita came to his mind. He went to the payroll officer, Mr Vineet and suggested Sarita’s released for
transfer.
Vineet was reluctant to release Sarita as she was good at her work and his department wants such
talent. Praveen told him that the transfer of Sarita would lead to more money for her. After
continuous series of convincing Vineet, Praveen finally had a talk with Sarita.
He told Sarita that though this is a transfer but you could fetch more money in the new position. Also,
he mentioned that if she joins in then she would be the only girl in office. Male employees generally
want to maintain their self-image in front of the female employees. Subsequently, Vineet could
observe Sarita’s changed attitude as she may have made up her mind to leave the job in his
department.
Q.2) Errors creep into the perceptual interpretation of individuals because of short-cuts in judging
others or effects. In light of the above case study, which of the following errors has been committed by
the payroll officer while hiring Sarita?
[a] Halo Effect

[b] Stereotyping
[c] Projection
[d] Impression
[e] Inference
Answer – (a)
Halo effect- Tendency of drawing a general impression about an individual based on a single
characteristic such as intelligence, sociability etc.
Projection- attributing one’s own traits or characteristics to the people being judged
Stereotyping - judging people on the basis of the characteristics of the group to which they belong
Impression - even before knowing any of their personality traits, they start having impressions and
making an assessment of individuals they meet for the first time.
Inference - there is a tendency on the part of some people to judge others on limited information
Based on Sarita’s intelligence, she was hired. Her low self-confidence was ignored
Dev was a man on the move. Everyone in the firm felt that someday he would be company president.
To listen to his boss, Manohar, Vice President of marketing it was only a matter of time before Dev
would be at the helm.
The current president of the firm was a marketing person. She had worked her way up from field
salesperson to president by selling satisfaction to customers and raising the image of the company. In
a manner of speaking, the marketing department was the “well-oiled” road to the top. Dev was the
number 1 salesperson and accordingly to the grapevine, was due to get Manohar’s job when the
latter retired in two years. However, Dev was not sure that he wanted to be Vice President of
marketing. Another slot was opening up in foreign sales. Dev knew nothing about selling in Europe,
but this was the first firm’s first venture outside the country and he thought he might like to give it a
try.
He talked to Manohar about it, but the Vice President tried to discourage him. In fact, Manohar
thought that Dev was crazy to consider the job at all. “Kid”, he said, “that’s no place for you. Things
are soft and cosy back here. You don’t have to prove yourself to anyone. You’re the number 1 boy
here. Just sit tight and you will be President. Don’t go out and make some end runs.” Dev was not
convinced. He thought perhaps it would be wise to discuss the matter with the president herself. This
he did. The president was very interested in Dev’s ideas about international marketing.
After careful considerations of matching opportunity with threats, he finally decided that he would
much rather go to Europe and try to establish a foothold over there than sit back and wait for the
promotion when his boss retires. Dev told Manohar about his final decision.
When the meeting regarding this was conducted, Dev came to know that he was not selected. The
president explained the situation to him in this way, “I thought you wanted the job so I pushed your
name. But you were weak in convincing Manohar about the same as he pitched against you saying
that ‘Dev is doing well here and therefore he perceives that he will be able to manage in Europe as
well. He doesn’t want to see the dynamic environment over there and as a result, the committee
members were convinced with him.
Q.3) In light of the above case study, which of the following errors have been committed
by Manohar, Vice President during the ongoing committee?
[a] Selective Perception

[b] Projection
[c] Stereotyping
[d] Halo Effect
[e] Impression
Answer – (a)
Selective Perception: Receivers can selectively see and hear based on their needs, motivations,
experience, background and other personal characteristics. Receivers also project their interests
and expectations into communication as they decode them. We don’t see reality. We interpret
what we see and call it reality.
Inderjit is about 40 and for the last one year has been the chief executive of a manufacturing
company, that operates autonomously, but belongs to a large group. He has firm ideas on how best
to manage people. In general terms, he believes that people respond best when the pressure is on
them.
Inderjit has tremendous energy. He comes to work at 7.00 o’clock and stays late each evening. He
works very hard and expects others to do the same. He is a sticker for details and often sends his
managers running back from meetings to collect more facts. Face to face meetings with him are
something like inquisitions. He has a very aggressive questioning style and bowls people out when he
notices mistakes. He is proud that he can move heaven and earth to “fix” problems. Since he is good
both in technical and financial matters, he tends to intervene as soon as he suspects a deficiency. He
almost “pounces” to sort it out himself.
When there is a problem to be solved, Inderjit likes to call all those involved together in committee
room, irrespective of rank or reporting relationships and forces the facts out on to the table. In order
to bring out the truth, he adopts a very challenging style (such as, “I don’t believe in you…”, “You are
lying…”).
Such remarks are made out in public, often to senior managers on the presence of their
subordinates. He is critical of others and not flexible enough to modify his own ideas. What is more,
Inderjit will even keep the group at it all night, if necessary, keeping aside other commitments.
Eventually, he succeeds in solving the problem and also gets advance warning about other likely
problems.
Raghunath, the personal manager, is one who reports to inderjit and particularly resents this
treatment. He finds it degrading for a man in his position and also feels that, as personnel manager,
he must do something to change Inderjit’s style. Raghunath is seriously concerned about the effects
of Inderjit’s behaviour. He notices that his colleagues are showing signs of stress; they are putting in
enormously long hours. They have become more competitive towards each other and less
cooperative. Their preoccupation with Inderjit has reached absurd proportions. They spend lots of
precious time talking about Inderjit in his absence and trying to anticipate “his next move”.
Another alarming effect of Inderjit’s behaviour is that senior managers spend long hours, getting the
details right, so that Inderjit’s probing will not catch them out. Managers who were previously willing
to delegate, are now less inclined to do so. They feel the only right way is to do things themselves.
The managers thus spend all their time on day-to-day issues and are not inclined to do any forward
planning. Furthermore, Raghunath notices that the managers are less willing to accept mistakes than
before. They try more to contain the problems, conceal them from Inderjit to escape his wrath.
Q.4) In the light of the above case study, Inderjit works hard and expects other to work hard as well.
He attributes his own trait to the people being judged. Which type of perceptual error is committed by
him?
[a] Projection
[b] Stereotyping
[c] Halo Effect
[d] Impression
Answer – (a)
It means attributing one’s own traits or characteristics to the people being judged. The
tendency to attribute one’s own characteristics to other people can disport perceptual
judgement about others. This may be particularly true regarding undesirable traits which
the perceiver possesses but fails to recognise in himself.
MOTIVATION
Q.5) Carrot and stick motivation is a motivational approach that involves offering a “carrot” (a
reward—for good behaviour) and a “stick” (a negative consequence for poor behavior). It motivates
staff by creating actionable goals and desirable rewards for employees who can alter their behaviour
and performance. The theory that suggests employing the "Carrot and Stick" Method is
[a] Theory Y
[b] Theory X
[c] Maslow’s Need Hierarchy Theory
[d] Herzberg’s Model
[e] Vroom’s Valence Expectancy Theory
Answer – (b)
Q.6) Who made the claim that performance and satisfaction are not correlated with motivation-force
or level of effort?
[a] Theory X
[b] Porter-Lawler model
[c] Theory Z
[d] Paths Goal theory
[e] Adam' s equity theory
Answer – (b)
Q.7) Choose the correct answer regarding the theories of motivation from the following statements:
1. The concept of ERG theory is similar to Maslow's hierarchy of needs
2. Theory 'X' and 'Y' are similar to each other
3. Two-factor theory is given by McClelland
[a] Only (1)

[b] Only (2)
[c] Only (1) and (2)
[d] (1), (2) and (3)
[e] (2) and (3)
Answer – (a)
Two-factor theory is given by Frederick Herzberg
Q.8) According to Vroom’s theory, a person’s motivation towards an action is determined by his
perception that a certain type of action would lead to a specific outcome and his personal preference
for this outcome. Which one of the following is an element of motivation according to his theory?
[a] Involvement
[b] Equity
[c] Instrumentality
[d] Existence
[e] Performance
Answer – (c)
Valence (Reward Preference)
It refers to the strength of an individual’s preference for receiving a reward.
It is an expression of the value he places on a goal (outcome or reward)
Expectancy (Effort – Performance Probability)
It refers to the extent to which the person perceives or believes that his efforts would lead to
the completion of a task.
Instrumentality (Perfromance – reward probability)
It refers to the probability which the performance (first-leveloutcome) would lead to the
desired results (second-leveloutcome). For instance, an individual wants a promotion and
feels that superior performance is very important in achieving promotion. Superior
performance is the first-leveloutcome and promotion is the second-leveloutcome.
Q.9) Which reinforcement strategy is also known as escape conditioning" or "avoidance learning" that
involves the withholding of punishment. It takes place when individuals learn to avoid or escape from
unpleasant consequences.
[a] Positive Reinforcement

[b] Negative Reinforcement
[c] Punishment
[d] Extinction
[e] Compensation
Answer – (b)
Reinforcement theory is based on the concepts of operant conditioning developed initially by the well-
known psychologist B.F. Skinner
Positive reinforcement: It entails the use of rewards (or other positive consequences) that
stimulate desired behaviour and strengthens the probability of repeating such behaviour in
the future. Positive reinforcement can be money, praise, promotion, recognition, etc.
Negative reinforcement: This strategy is called “avoidance learning”.It implies the use of
unpleasant consequences to condition individualsavoid behaving in an undesirable way. By
making unpleasant consequences contingent on undesirable behaviour, individuals learn to
systematically change patterns of behaviour.
Extinction: There is a withdrawal of all forms of reinforcement to remove or extinguish
undesirable behaviour.
Punishment: This tool is used when an unpleasant or undesirable behaviour needs to be

reduced or eliminated. For example, a worker’s wages may be deducted if the quality of
goods produced is of standard quality.
Mr W. Bird builds pianos from scratch and is a consultant to a leading piano manufacturer. He is on
call and works about one week a month, including some travel, to solve the problems of customers.
He also rebuilds about a dozen grand pianos every year for special customers; but, according to Bird,
the most satisfying part of his life is his hobby of building pianos from the beginning. The challenge of
the work is what lures Bird onward. He derives satisfaction from precision and quality, in the words of
Bird, “Details make the difference. When you cut a little corner here and a little corner there, you
have cut a big hole.”
Bird feels a substantial challenge in making a whole piano. His work combines skills in cabinet-
making, metal-working, and engineering, with knowledge of acoustics and a keen ear for music. It
requires great precision because a tiny misalignment would ruin a piano’s tune. He wants to share his
values and beliefs with his employees to run this organization successfully. He seeks not money but
challenge and satisfaction. His big dream is to build a grand piano.
Q.10) Which among the following types of motivation is achieved by Mr. Bird while building the piano
in light of the above case study?
[a] Intrinsic Motivation

[b] Positive Motivation
[c] Extrinsic Motivation
[d] Negative Motivation
[e] Physiological Motivation
Answer – (a)
Q.11) According to Alderfer’s theory of motivation, Mr Bird fits into which set of needs?
[a] Self-Actualization Needs

[b] Existence Needs
[c] Relatedness Needs
[d] Growth Needs
[e] Self-Esteem Needs
Answer – (d)
Alderfer’s Existence-Relatedness-Growth Model
Alderfer has provided an extension of Maslow’s need hierarchy Theory.
1. Existence Needs: These include all forms of material and physiological and safety needs,
i.e., Maslow’s first two-level needs.
2. Relatedness Needs: These include all needs that involve relationships with other people
we care about. Relatedness needs cover Maslow’s social needs and that part of esteem
needs are derived from other people.
3. Growth Needs: These needs involve persons making creative efforts to achieve their full
potential in the existing environment. It is like Maslow’s last level of needfor self-actualisation.
Sanjay, doing MBA with a management institute, has taken up a summer job in a big factory at
Faridabad. He has been assigned to a small group of men who are responsible for loading and
unloading the boxcars that supply the materials and carry away the finished goods of the factory.
These group of people were paid good salaries and often rewards were given to them.
After two weeks on the job, Sanjay was amazed at how little work the men in his crew accomplished.
It seemed that they were forever standing around and talking or in some cases, even going off to hide
when there was work to be done. Sanjay often found himself alone unloading a boxcar while the
other members of the crew were off messing around somewhere else. When Sanjay complained to
his co-workers, they made it very plain that if he did not like it, he could quit, but if he complained to
the supervisor, he would be sorry.
Sanjay has been deliberately excluded from any of the crew’s activities such as taking breaks together
or having delicious snacks at the popular restaurants across the street. Yesterday, he went up to one
of the older members of the crew and said, “I don’t know why you people behave like this. I am just
trying to do my job because I am here only for my summer assignment. I get a good salary which is all
that I care about. I would have liked to know you all better, but frankly I am not like you all.” The elder
man replied, “Sanjay, if you had been here as long as I have, you would have been just like us.”
Q.12) As per the above case study, in which of the following categories of motivation does Sanjay
lies?
[a] Esteem Needs of Maslow Theory

[b] Hygienic Factors of Herzberg Theory
[c] Motivating Factor of Herzberg Theory
[d] Self Actualisation of Maslow Theory
[e] Theory X developed by McGregor
Answer – (b)
Explanation- Money provides for the satisfaction of physiological and safety needs which have been
called hygienic factors by Herzberg
Bernard Malinowski supervised the five service representatives and one secretary in the Customer
Service Department at Buford department store. The secretarial position provided important support
to all the service representatives. There had been a pronounced turnover of personnel in this
position. When Bernard hired Betty Lyons two months ago, he thought things might be different, and
was at first, he was actually pleased with her work.
However, he was now concerned about her performance: letters looked sloppy, correspondence took
too long to get out, and filing and record keeping were behind schedule. Betty was making the same
mistakes as her predecessors in the same job position. Moreover, Betty was complaining about being
over-worked and not having any direction. Bernard increased her work both horizontally and
vertically. Bernard thought that he might need to terminate her if things didn’t improve.
Bernard believed that the good employees always seemed to be the most disappointing. They did
well, were given more work, and then, their performance failed. He believed that annual merit raises
were sufficient rewards for good work, and that was the only kind of reinforcement he gave them.
Q.13) In light of the above case study, Bernard’s personality is suitable to which of the following
theories of management?
[a] Theory X
[b] Theory Y
[c] Theory Z
[d] Equity Theory
Answer – (b)
This theory assumes that people are not unrealisable and lazy by nature. If they are properly
motivated, they could really be creative.
An employee who is properly motivated can achieve his goals by directing his own efforts and
thus, he can help in accomplishing the organisational goals
The Compensation philosophy at XYZ Pvt. Ltd. evolved over a period of four years. Prior to that, each
unit followed its own industry specific compensation practices. Four years ago, the company’s top
management decided to adopt a more centralised management approach to better manage its talent
and build a unified corporate culture. One of the first initiatives of the Corporate HR Team was to
enlist a vendor to help with a common compensation philosophy. Hann Associates (HA) emerged as
the preferred vendor for the activity. The following compensation philosophy that guides
remuneration for its employees was decided.
At XYZ Pvt. Ltd. We believe in a performance- based culture and remain committed to this through
well- structured compensation and rewards and recognition programs. The total compensation
structures for all employees would be uniform and would consists of basic salary and wages, DA,
HRA, Car allowance, Medical allowance, special allowance incentive pay for rewarding management
skills and based on output basis.
The Compensation positioning of all BU’s are uniformly pegged in all markets and geographies at the
70th percentile to ensure that we are leading the market at paying our top performers.
There is compensation committee composed of minimum of 3 Directors and led by the Corporate
Compensation and Benefits Director which will meet at least twice a year to review the
compensation
9 9 9 9 4 6 6 2strategy.
Q.14) According to the statement “The total compensation structures for all employees would
be uniform”, which of the following theories of remuneration is pursued by XYZ Ltd.?
[a] Equity Theory

[b] Reinforcement and Expectancy Theory
[c] Agency Theory
[d] Goal Setting Theory
[e] Self-Determination Theory
Answer – (a)
The equity theory of motivation was formulated by J.S. Adams
According to equity theory, two variables are important, i.e., inputs and outcomes.
Inputs are the efforts and skills that a member of an organisation perceives that she puts into
her job.
Outputs are the rewards that the member receives from the organisation and her job.
Q.15) Which of the following is the equation of Vroom’s Expectancy Model?
[a] Motivation = Valence * Expectancy * Instrumentality

[b] Motivation = Valence + Expectancy * Instrumentality
[c] Motivation = Valence * Expectancy - Instrumentality
[d] Motivation = Valence * Expectancy + Instrumentality
[e] Motivation = Valence + Expectancy + Instrumentality
Answer – (a)
LEADERSHIP
Q.16) Leadership Continuum highlights the diverse range of various leadership styles. Who of the
following developed this continuum?
[a] Prof. Bernard

[b] Prof. Terry
[c] Tannenbaum and Schmidt
[d] Stephen Robbins
[e] Herzberg
Answer – (c)
Q.17) Select the correct code of the statements being correct or incorrect.
Statement (I) : Leadership is the ability to influence a group towards the achievement of a vision or
set of goals.
Statement (II) : A manager is required to plan and organise, but a leader is one who makes others
follow him and move in the direction in which he wants.
[a] Statement (I) is correct but (II) is incorrect.

[b] Statement (II) is correct but (I) is incorrect.
[c] Both the statements (I) and (II) are correct.
[d] Both the statements (I) and (II) are incorrect.
[e] Inadequate Information
Answer – (c)
Leadership refers to the process where a person (Acting as a leader) guides, directs and influences
the behaviour of others, providing them a direction to work for accomplishment of given
objectives. It is the ability to influence a group towards achievement of a vision or set of goals.
While Management is about coping up with complexity, Leadership is about coping up with the
change.
Management establishes plans while leadership establishes direction for the organisation.
Manager is required to plan and organise, but a leader is one who makes other’s follow him and
move in the direction in which he wants.
Dynamic organizations require leaders who can lead the organization in the right direction in times
of turbulence. It is no guarantee that managers can lead effectively. Thus, effective leadership is a
must in the present business environment.
Q.18) As per the managerial grid given by Blake and Mouton, the leadership style focussing on High
tasks and low concern for the people is known as
[a] impoverished management

[b] club country management
[c] team management
[d] middle of the road management
[e] task management
Answer – (e)
Q.19) Fill in the blank with an appropriate word below:
"If the leadership style allows substantial participation by members of the group in the management
and decision-making process, subordinates are frequently consulted by the manager on wide-ranging
problems and are allowed sufficient freedom to communicate with the leader and also with their
fellow subordinates." It is called __________
[a] autocratic style of leadership

[b] democratic style of leadership
[c] laissez fair style of leadership
[d] paternalistic style of leadership
[e] Authoritative leadership style
Answer – (b)
Autocratic or authoritarian leadership
The autocratic leader gives orders which must be obeyed by the subordinates.
He determines policies for the group without consulting them and does not give detailed information
about future plans, but simply tells the group what immediate steps they must take.
Participative or Democratic Leadership
This style is also called democratic, consultative or ideographic. A demographic leader is one who
gives instructions only after consulting the group. He sees to it that policies are worked out in group
discussionsand with the acceptance of the group.
Free Rein or Laissez Faire Leader
Free rein or laissez-faire leadership style means giving complete freedom to subordinates. In this
style, the manager once determines policy, programmes and limitations for actions and the entire
process is left to subordinates. Group members perform everything.
Paternalistic Leadership
Under this, the leader assumes that his function is paternal or fatherly. His attitude is that of
treating the relationship between the leader and his group as that of a family with the leader
as the head of the completely.
Q.20) Which of the styles of leadership in the diagram given below:
A: Leader
B, C, D and E : Subordinates
[a] autocratic style of leadership

[b] democratic style of leadership
[c] Free – Rein leadership
[d] paternalistic style of leadership
Answer – (c)
[e] Authoritative leadership style
Harish Nawal, did his MBA from IIM Bangalore and joined his father’s business, which employed 60
semi-skilled workers and five supervisors. They are all willing to take on responsibility. After one
week, his father called him and said, “Nawal, I have had a chance to observe your working with the
men and women for the past few days. Although I hate to, I must say something. You are just too nice
to people. I know they taught you human relations stuff at IIM, but it just does not work here. I
remember, when the Hawthorne studies were first reported, everyone in the academic field got all
excited about them. But, believe me, there is more to managing people than just being nice to them.”
Q.21) In the light of the above case study, which of the followings style of leadership is followed by
Nawal as per the Hersey and Blanchard Situational theory ?
[a] Participating Style

[b] Telling Style
[c] Selling Style
[d] Delegating Style
[e] Laissez Faire Style
Answer – (a)
Telling style: This is a high-task relationship style and is effective when followers are at a
very low level of maturity.
Selling styles: This is a high-task, high-relationship style and is effective when followers are on the low
side of maturity.
Participative Style: This is a low-risk, high-relationship style and is effective when followers are on the
high side of maturity.
Delegating Style: This is a low-risk, low-relationship style and is effective when followers are at a very
high level of maturity.
Peter Gilmore was an energetic, capable manager with the republic insurance company. He began his
career with republic some 15 years ago, after graduating with an accounting degree from the night
school program at City University. He was personable, well-liked and bright.
Peter worked hard and diligently, regularly putting in 10-hour days and working on the weekends.
Because of his dedication, Peter had been rewarded with ever-increasing responsibilities and
promotions. He was now serving effectively as the second in command in the strategic management
division.
Peter once summarised his supervisory philosophy and practice in this way: “You know every time
my boss gave me an assignment, I always worked as hard and as fast as I could to complete it
perfectly and on time. I expect the same from my subordinates: If I give them something to do, I
expect the same from them- it should be done correctly and on time. I can’t take time to check up on
them or see if they are doing it.”
Peter’s management strategies were good to his word: he delegated projects easily and would expect
them to get done. When he handed out an assignment, he didn’t expect to have to deal with it again
until the employee brought back the completed task within a reasonable time.
Q.22) As per the Likert’s Management systems, which of the following type of leadership style best
suites the characteristics portrayed by Peter?
[a] Exploitative Authoritative

[b] Benevolent Authoritative
[c] Consultative
[d] Participating
[e] Democratic
Answer – (b)
In the above case, Peter easily delegates his work to his subordinates (showing confidence) but at the
same time also expects that employees complete the work and then bring it back to him (Subordinates
during the completion of the work, do not feel very free to go back to Peter to discuss things)
Ray Kroc worked for many years as a sales person for a food supplier. He learned how retail food
operations were conducted. One day, Kroc received a large order for multimixers from the McDonald
brothers. The order intrigued Kroc, and he decided to look in on the operation the next time he was
in their area. When he did, Kroc became convinced that the McDonald's fast food concept would
sweep the nation. Kroc died many years ago, but the culture he left behind is still very much alive in
McDonald's franchisees across the globe. In fact, new employees receive videotaped messages from
the late Mr Kroc. Some of the more interesting pronouncements that reflect and carry on his values
are his thoughts on cleanliness: "If you have got time to lean, you have got time to clean." about the
competition he says, "if they are drowning to death, I would put hose in their mouth." and on
expanding he declared: "when you are green, you grow; when you are ripe, you rot."
Q.23) According to the trait theory of leadership, which of the following traits are suitable to describe
Mr Kroc?
1. Vision and foresight
2. Inner motivation drive
3. Physical features
4. Open mind and adaptability
5. Fairness and objectivity
[a] 1, 2 and 5
[b] 1, 2 and 4
[c] 1, 2, 3 and 4
[d] 1, 2, 4 and 5
[e] 2, 4 and 5 Answer – (b)
Naina is a manager at Nath Investment Pvt Ltd. The company has a strict rule that the employees
shall not come late to the office. Priyanka, an employee, was scolded by Naina, for being late to work.
Priyanka was late for the very first time due to public transport strike.
Garima, another employee is supposed to work on a project. Naina has asked Garima to consult her
every time an important decision has to be made. She seldom appreciates Garima for the good work
she does. Also, without consulting her, Naina has communicated the growth figures to her boss.
Naina’s superior is Vikram who sets challenging goals for her but at the same time displays
confidence in her abilities.
Q.24) Naina seems to be a manager while Vikram seems to be a leader in the case mentioned above.
Which of the following is a difference between Manager and Leader?
[a] Leaders have followers while Managers have employees.

[b] Leaders build relationships while Managers build systems and processes.
[c] Leader creates a vision while Managers create goals.
[d] All of the above
Answer – (d)
Manisha works at ADJ Pvt. Ltd. Her boss, Junaid, is very friendly in nature. One day, he said to
Manisha,” you are a born leader. One day you will make a great leader this organization has ever
had.” She thanked him and pressed how important it is for leaders to be motivated, visionary and
self-confident. Junaid added that it’s equally important to be open minded to everything that comes
their way. He further added that he completed his management studies from U.S.A. and they had to
study various theories of leadership in teams of students.
He faced a hard time researching about the Michigan Studies. Sharing her experience, Manisha said,
"My professor gave different situations and we were required to enact a role play, the focus of which
should be Fiedler’s Contingency Model.”
Junaid said while studying traditional theories is important, one must not neglect emerging
approaches to leadership such as Transformational Leadership, Charismatic Leadership, etc.
Q.25) Manisha is told, “You are a born leader”. Which of the following theories of leadership has been
highlighted through this statement?
[a] Hersey and Blanchard’s Situational Theory

[b] Great Man Theory of Leadership
[c] Ohio State Leadership Studies
[d] Fiedler’s Contingency Model
[e] Blake and Mouton’s Managerial Grid
Answer – (b)
Authority &
Power
Desert Cool ltd. is an old company engaged in the manufacture and distribution of ice cream with the
help of a workforce of about 300. Because of increasing business, the company needed to strengthen
its accounting procedure, particularly through computerisation. For this purpose, the company
decided to hire a new manager, designated as the assistant commercial manager. The company
invited applications through press advertisement and after receiving applications, it appointed a
selection committee that interviewed several candidates and finally selected Mr. Vishwanath.
After joining the committee, Mr Vishwanath showed great dedication to his work. He used to put in
extra effort and even worked during holidays as he did not have any family responsibility. He gained
the reputation of being a dedicated employee, his strong point being his knowledge of accountancy
and computers. He was reporting to Mr Rajesh, the commercial manager who was quite impressed
with his work.
The accounting procedures of the company were in need of considerable improvement. Mr. Ajay
Kumar, the Managing Director of the company, directed Mr. Rajesh to get the needful done for
introducing a computerised system. Since most of accounting work related to sales, no separate
accounting department existed and the work was performed under the direction of the commercial
manager.
In order to get the first hand information about the problem, Mr. Vishwanath began meeting Mr. Ajay
Kumar without the knowledge of Mr. Rajesh. Ajay would just call Vishwanath in for a report without
bothering to tell Mr. Rajesh. The members of the management team had formed a tight-knit group
and appeared satisfied with the company.
Mr. Rajesh was gradually losing contact with the progress of the project as Mr. Vishwanath was
almost reporting directly to the managing director though he was placed under the commercial
manager. Rajesh was now visibly upset over the development and also worried about Vishwanath’s
increasing area of influence.
Q.26) Mr Vishwanath possesses which source of power in the case study described above?
[a] Reward Power

[b] Expert Power
[c] Coercive Power
[d] Legitimate Power
[e] Referent Power
Answer – (b)
Coercive Power: The coercive power base depends on fear of the negative results from failing to
comply. In other words, it is based on the influencer’s ability to punish the influencee for not carrying
out orders or for not meeting requirements. Fear of punishment may make the subordinates execute
the instructions of the boss.
Reward Power: The opposite of coercive power is reward powers with which people comply because
it produces benefits; someone who can distribute rewards others view as valuable will have power
over them.
Legitimate Power: It is based on the formal rights one receives as a result of holding a position in an
organisation. It may also be called ‘positional power’ because of the authority inherent in the
position. It exists when an influencee acknowledges that the influencer is lawfully entitled to exert
influence
Expert Power: It is based on the perception or belief that the influencer has some relevant expertise
or special knowledge that others do not have
Referent Power: It is based on the influencee’s desire to identify with or imitate the behaviour of the
influencer.
Sanjay, doing MBA with a management institute, has taken up a summer job in a big factory at
Faridabad. He has been assigned to a small group of men who are responsible for loading and
unloading the boxcars that supply the materials and carry away the finished goods of the factory.
These group of people were paid good salaries and often rewards were given to them.
After two weeks on the job, Sanjay was amazed at how little work the men in his crew accomplished.
It seemed that they were forever standing around and talking or in some cases, even going off to hide
when there was work to be done. Sanjay often found himself alone unloading a boxcar while the
other members of the crew were off messing around somewhere else. When Sanjay complained to
his co-workers, they made it very plain that if he did not like it, he could quit, but if he complained to
the supervisor, he would be sorry.
Sanjay has been deliberately excluded from any of the crew’s activities such as taking breaks together
or having delicious snacks at the popular restaurants across the street. Yesterday, he went up to one
of the older members of the crew and said, “I don’t know why you people behave like this. I am just
trying to do my job because I am here only for my summer assignment. I get a good salary which is all
that I care about. I would have liked to know you all better, but frankly I am not like you all.” The elder
man replied, “Sanjay, if you had been here as long as I have, you would have been just like us.”
Q.27) Which of the following kind of power can be used by a higher authority to improve the
performance and efficiency of the group of people who try to avoid responsibilities and are not
motivated by anything to work?
[a] Coercive Power

[b] Normative Power
[c] Utilitarian Power
[d] Expert Power
[e] Referent Power
Answer – (a)
Charles Thompson recently was appointed manager of the Business Services Department. Earlier in
his career, he had worked as a specialist in this department for 18 months, until he transferred to
another department. When he moved back, he was reunited with a group he had previously worked
with. Everyone praised him and followed his order due to the knowledge he possesses. This group,
known officially as the Business Services Group, was experienced and effective in working together.
Spurred by his new boss to improve service quality, Charles raised their quotas by 20 per cent and
threatened to put anyone who did not meet this quota on formal discipline. After two weeks, he did
so to one employee. There is now a major morale problem and a grievance filed with the personnel
department.
Q.28) In reference to the above case study, which of the following base of power is possessed by
Charles in the department he has been transferred to?
[a] Coercive Power

[b] Normative Power
[c] Utilitarian Power
[d] Expert Power
[e] Referent Power
Answer – (d)
C and D are straightaway out as there is no mention of followers imitating Charles, or Charles giving
or withholding any rewards. Subordinates will be put to formal discipline, i.e., no rewards will be
cancelled.
Options A and B may confuse us through the last few sentences of the passage, however, if we
read the passage carefully, we will realize that Charles had to take that stern action on the
instruction of his boss. Actually, he commanded influence over others through his expertise and
knowledge. Hence, E is the correct answer.
Q.29) Zone of indifference is the specific limit that is defined or set by individuals. Subordinates
willingly accept authority within this zone of indifference only. As soon as authority goes out of this
zone, the subordinates reject the exercise of authority over them.
This is related to which theory on authority
[a] Acceptance Theory

[b] Competence Theory
[c] Formal Authority Theory
[d] Approval Theory
[e] Traditional Theory
Answer – (a)
Authority
The Formal Authority Acceptance The Competence

Theory Authority Theory Authority
The Formal Authority Theory
According to this theory, an authority originates at the top in the formal structure of an organisation
and it flows downward to subordinates through the process of delegation.
Acceptance Authority Theory
According to this theory, authority is the power which is accepted by others. The formal authority has
no significance unless it is accepted by the subordinates.
The competence Theory
According to this theory authority is generated by the personal qualities or technical competence of
the manager.
COMMUNICATION
Q.30) Whenever there is a threat from group B, group A includes key people of group B in important
positions or policy-making committees in order to remove criticism and threat emanating from group
B.
The following example is which type of Tactic to Gain Power?
[a] Bargaining
[b] Competition
[c] Co-optation
[d] Coalition
Answer – (c)
Q.31) Arrange the following elements of the process of interpersonal communication in sequential
order
(a) the sender
(b) the decoding
(c) the receiver
(d) the encoding
(e) the message
(f) feedback
(g) the channel
[a] (d). (f), (a), (b), (g), (e) and (c)

[b] (a), (d). (e), (g). (b). (c) and (f)
[c] (a), (b), (d), (g), (e), (c) and (f)
[d] (b), (a), (c), (d), (f), (g) and (e)
Answer – (b)
[e] (d), (a), (f), (b), (g), (e) and (c)
Q.32) A speaker delivering a talk to school students used various technical terms which left the
students unable to properly understand what he was trying to say. Which barrier of communication is
this?
[a] Psychological Barrier

[b] Semantic Barrier
[c] Organisational Barrier
[d] Personal Barrier
[e] Linguistic Barrier
Answer – (b)
Semantic Barrier
Semantics is the study of meaning, signs and symbols used for communication.
Words and symbols used to communicate facts and feelings may mean different things to different
persons.
People interpret the same message in different ways depending on their social and cultural
backgrounds, education and experience.
Q.33) Semantic barriers in communication take place due the following reasons:
(a) Badly expressed message
(b) Organizational facilities, status relationships
(c) Faulty Translations
(d) Distrust
[a] (a) and (b)

[b] (a) and (c)
[c] (b) and (c)
[d] (a) and (c)
[e] (c) and (d)
Answer – (b)
It was 9.30 AM when two trucks brought some large crates to the assembly shop. Everyone saw the
truck crew unloading the boxes quickly, leaving them piled near the gate of the stores’ department
and driving away. Mohan, a worker, watched and approached the foreman and pointed to the boxes.
The foreman stopped, shrugged his shoulders and walked away.
Mohan came across another worker and asked: “What’s there in the boxes?”
“I don’t know”, was the reply. Mohan went back to his work and continued to wonder: “What could
be in those boxes? And why does not the foreman want to tell us? Maybe it is new machines …. Say,
that’s probably what is, those new automated machines. All you have to do is push the button and
the machine does the rest. There won’t be many jobs in the assembly shop if these machines are
installed”
Mohan became more nervous. He got up and went over to the water cooler where two other
workers were gossiping. Words spread like wildfire, soon no one was working at all, all were talking
and their voices grew angrier.
Just then superintendent came running and stood in there. After asking about the matter he clarified
that the crates contained new equipment for a new plant, and they are kept here just for a few days.
Q.34) In light of the above case study, which of the following barriers to effective communication has
been highlighted?
[a] Barriers due to positions and status

[b] Semantic Barriers
[c] Selective Perception
[d] Closed Minds
Answer – (c)
Receivers can selectively see and hear based on their
needs, motivations, experience, background and
other personal characteristics. Receivers also project
their interests and expectations into communication
as they decode them. We don’t see reality. We
interpret what we see and call it reality.
For example, if an HR manager in charge of hiring has

negative beliefs and stereotypes of a certain gender
or race, they likely aren’t going to hire them. Even if
that candidate is the best fit for the job they still
won’t hire them because all they see are the
stereotypes.
Q.35) According to the case study described above, which of the following problem is present in the
organization?
[a] Controlling
[b] Rumour
[c] Communication
[d] Technology
[e] Coordination
Answer – (b)
Q.36) Which of the following type of communication is directly related to the problem of unreliable
information?
[a] Formal Communication

[b] Grapevine
[c] Downward Communication
[d] Upward Communication
[e] Coordination
Answer – (b)
Informal communication or grapevine arises from the social
interactions of people.
Q.37) Match the following.
1. Kinesics a) the study of the way in which certain body movements and gestures serve as a
form of non-verbal communication.
2. Proxemics b) the branch of knowledge that deals with the amount of space that people feel it
necessary to set between themselves and others.
3. Chronemics c) Chronemics is the role of time in communication
4. Haptics d)The way we communicate through our physical contact or by touching the other
person is known as haptics.
[a] 1-c, 2-d, 3-c, 4-a
[b] 1-a, 2-b, 3-c, 4-d
[c] 1-a, 2-c, 3-c, 4-d
[d] 1-c, 2-d, 3-a, 4-c Answer – (b)
[e] 1-c, 2-d, 3-a, 4-a
Kinesics
Kinesics is the study of the body’s physical movements for the purpose of
communication, that is, the way our body communicates without words,
through various movements of its parts. For example, nodding one’s head
communicates acceptance
Proxemics
Space or lack of it between the sender and the receiver of the message also
speaks volumes. When one hugs someone, though no words are exchanged
yet the warmth of the relationship can be felt by both. This is
communication. The study of physical space in interpersonal relations is
called Proxemics.
Chronemics
How we manage our time communicates a lot about the kind of person we
are. The study of the use of time to communicate is known as chronemics.
In the professional world, time is a valuable resource. When we are late for
an appointment, people react negatively. If we arrive early, we are
considered over-eager.
Haptics: Language of Touch
The way we communicate through our physical contact or by touching the

other person is known as haptics. For instance, kissing, slapping or shaking
hands with someone are ways of communicating.
Q.38) Even when no words are spoken, communication still takes place because body language is a
form of non-verbal communication. An illustration of one of these forms of nonverbal communication
is shown below. Pick the best choice after reading.
“A co-worker is telling you about their recent vacation, so you can smile and nod along while you
listen to show you’re enjoying their story.”
[a] Facial Expression

[b] Posture
[c] Personal appearance
[d] Positive tone of voice
[e] Eye contact
Answer – (a)
Akshay is a Ranchi native. He completed his post-graduate studies at one of Delhi's top universities.
Akshay has always done well in school and wants to move to a sophisticated city where he can use his
talent well and fulfil his lifelong dream of starting his own business. After putting in a lot of effort, he
was given the option to work in Bengaluru. He seized the chance and moved on to live the life of his
dreams. He rents a flat while he travels there. Akshay has a puppy named "Rony" to help him get over
his loneliness. Every time Akshay returns from work, Rony greets him joyfully and wags his tail to
show it. Akshay is thrilled by his behaviour and wishes him well.
Q.39) Which of the following type of communication is being discussed in the above case study?
[a] Extrapersonal
[b] Intrapersonal
[c] interpersonal
[d] Impersonal
[e] Extrapersonal
Answer – (a)
Extra personal communication
In extra-personal communication, human beings interact with non-human entities.
Intrapersonal communication
Intrapersonal communication happens when we communicate with ourselves

which we often do for various reasons.
Interpersonal communication
Interpersonal communication refers to all communications that we share with

other human beings.
Q.40) Karan Dhingra heads the Accountancy department at Riwayat Fashions. He instructs his junior,
Rohit, who works in the marketing department, to optimize the expenditure on paying influencers on
Instagram who uses and promote their products on the Social Media Platform.
What type of communication do you think is involved here?
[a] Informal Communication

[b] Upward Communication
[c] Downward Communication
[d] Horizontal Communication
[e] Diagonal Communication
Answer – (e)
Crosswise or Diagonal Communication
• It means communication between persons who are neither in the

same department nor on the same level of organizational
structure.
• It cuts across departmental lines.
• It generally takes place when members cannot communicate
effectively through other channels.
Q.41) Mr. Chand recently joined a new milk distribution firm. Prior to this, he has worked in a
computer chip-making company. On the third day of his joining the new firm, he was told about the
mistakes he'd been committing in the past two days. His boss used such words which he could not
comprehend. However, afraid of speaking in front of his boss, he simply nodded to whatever he had
to say. In the next days, Mr. Chand committed the same mistakes again. Which communication barrier
is present in the conversation?
[a] Gender barrier

[b] Organisational barrier
[c] Language barrier
[d] Psychological barrier
[e] Interpersonal barrier
Answer – (c)
Language barrier occurs when a person uses a language which the other person cannot understand.
This can happen when the other person does not know the language or the words used are technical
(jargons) or there is no clarity in speech.
Organisational barrier relates with the rules and policies of the organisation whereas Gender barrier
arises when different thoughts and words are used according to gender.
Psychological barrier occurs when the mental condition of at least one party is not balanced whereas
interpersonal barrier arises when the two parties involved in communication do not want or like to talk
to each other.

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4. AUTHORITY & POWER

[a] Inputs---Perceptual mechanisms---Output---Shaping up of behaviour

Perceptual Mechanisms: when the perceiver receives information, he tries to

Behaviour: The perceiver’s behaviour is shaped by the perceived outputs,

[a] Halo Effect

[a] Selective Perception

[a] Only (1)

It refers to the strength of an individual’s preference for receiving a reward.

It is an expression of the value he places on a goal (outcome or reward)

Expectancy (Effort – Performance Probability)

[a] Positive Reinforcement

Punishment: This tool is used when an unpleasant or undesirable behaviour needs to be

[a] Intrinsic Motivation

[a] Self-Actualization Needs

Alderfer has provided an extension of Maslow’s need hierarchy Theory.

[a] Esteem Needs of Maslow Theory

[a] Equity Theory

[a] Motivation = Valence * Expectancy * Instrumentality

[a] Prof. Bernard

[a] Statement (I) is correct but (II) is incorrect.

[a] impoverished management

[a] autocratic style of leadership

Participative or Democratic Leadership

[a] autocratic style of leadership

[a] Participating Style

[a] Exploitative Authoritative

[a] Leaders have followers while Managers have employees.

[a] Hersey and Blanchard’s Situational Theory

[a] Reward Power

[a] Coercive Power

[a] Coercive Power

[a] Acceptance Theory

The Formal Authority Acceptance The Competence

Acceptance Authority Theory

The competence Theory

[a] (d). (f), (a), (b), (g), (e) and (c)

[a] Psychological Barrier

[a] (a) and (b)

[a] Barriers due to positions and status

For example, if an HR manager in charge of hiring has

[a] Formal Communication

Haptics: Language of Touch

The way we communicate through our physical contact or by touching the

[a] Facial Expression

Intrapersonal communication happens when we communicate with ourselves

Interpersonal communication refers to all communications that we share with

What type of communication do you think is involved here?

[a] Informal Communication

• It means communication between persons who are neither in the

[a] Gender barrier

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