Principles of Management

1 of 6 sets

Chapter: Introduction to Management and Organizations

1. Henry Fayol, F.W.Taylor belongs to which of the following school of

management?
A. Neoclassical School
B. Modern School
C. Classical School
D. Early Perspective
Answer:C

2. …………………….. involves a series of steps to o

m
. c be taken to accomplish desired
goals.
t e
A. Values
a
B. Techniques
q M
C. Programmes
c
D. Actions
Answer:B
M
3. While practicing principles of management ………………………….. cannot be
neglected as business have to fulfill social and ethical responsibility towards
society.
A. Values
B. Techniques
C. Programmes
D. Actions
Answer:D

4. Derivation of Principles of Management is a matter of (i)………………… and

their application is a matter of (ii)…………………….
A. (i) art (ii) science
B. (i) science (ii) art
 C. (i) art (ii) discipline
D. (i) discipline (ii) science
Answer:A

5. “ Principles help managers to take decisions while performing functions of

management”
A. True, Principles are guidelines to take actions.
B. False, Functions of management are not related with Principles of Management
C. Partly True, Principles denotes cause and effect relationship which may help functions
D. False, Functions of management are just actions.
Answer:A

6. Principles of division of work is applicable to a government office where there is

a diary/dispatch clerk whose job is to receive and send mail, a data entry operator
whose task is to input data on the computer. Division of work is also applicable to
limited company where there are separate departments like productions, finance,
research and development etc. Which quality of Principles of management is
highlighted above?
A. General Guidelines
B. Universal applicability
C. Flexible
D. Contigent
Answer:B

7. The degree of concentration of authority or its dispersal depend upon the

situation and circumstances of each enterprise. Principles give enough discretion to
manger to adjust according to situation. Which Quality of Principles of
management is highlighted above?
A. General Guidelines
B. Universal applicability
C. Flexible
D. Contingent
Answer:B

8. Principles of management do not provide readymade solution to any problem

but in dealing with a situation of conflict between two departments, a manager
may emphasize the primacy of the organisational goal. Which Quality of Principles
of management is highlighted above?

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 A. General Guidelines
B. Universal applicability
C. Flexible D.
D. Contingent
Answer:A

9. Employees deserve fair and just renumeration but what is just, and fair is
determined by multiple factors. They include contribution of the employee, Paying
capacity of the employer and prevailing wage rate for the occupation under
consideration. Which quality of Principles of Management is highlighted above?
A. General Guidelines
B. Universal applicability
C. Flexible
D. Contingent
Answer:D

10. Management Principles increase managerial efficiency as manager leave

routine decision making to his subordinates and deal with expectional situations
which require his expertise by following the Principles of delegation. Which Does
the above case signify about management?
A. Meeting changing environment requirements
B. Providing mangers with useful insights into reality
C. Fulfilling social responsibility
D. Management training, education and research
Answer:B

11. Which of following statement justifies understanding of Principles of

Management helps in taking scientific decisions
A. Adherence to these principles and add to knowledge and understanding of managerial
situations.
B. Principles emphasis logic rather than blind faith.
C. Principles of management are at the core of the management theory
D. Principles are guidelines that can be modified as per the changing environment
Answer:B

12. In the words of …………………..,”…………………. means knowing exactly

what you want men to do and seeing that they do it in the best and cheapest way”.

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Find the above blank with right option
A. Henry Fayol, Management
B. W. Taylor, Scientific Management
C. Haraold Koontz, Administrative Management
D. W.Taylor Management
Answer:B

13. Even a small production activity like loading pigs of iron into boxcars can be
scientifically planned and managed. This can result in tremendous saving of
human energy as well as wastage of time and materials. Which of the following
Principles if management emphasize on above situation?
A. Harmony does not discord
B. Science not Rule of Thumb
C. Initiative
D. Development of each person to his or her greatest efficiency and prosperity
Answer:B

14. As per Cooperation, Not individualism principle of management, Competition

should be replaced with………………..
A. Coordination
B. Cooperation
C. Management
D. Harmony
Answer:B

15. Which of the following statements justifies the Principle Cooperation not
Individualism.
A. Management and workers should transform their thinking towards each other Coordination
B. There should be equal division of work between Management and workers
C. Industrial efficiency depends to a large extent on personnel competencies
D. There is only one best method to maximize efficiency
Answer:B

16. Which of the following scientific management is violation of Unity of Command

A. Differential piece wage system
B. Fatigue study

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 C. Functional Foremanship
D. Simplification of work
Answer:C

17. Which of the following technique of scientific management has the objective to
determine the number of workers to be employed: frame suitable incentive
schemes and determine labour cost.
A. Differential piece wage system
B. Time study
C. Functional foremanship
D. Simplification of work
Answer:B

18. According to Taylor there can be many hindrances in good performance which
may lead to fatigue. Identify the most suitable cause of Fatigue among the
following options.
A. Long working hours
B. Doing unsuitable work
C. Non cordial relation with boss
D. All the above
Answer:D

19. . …………………… among the following was the first to identify four functions
of management.
A. Henry Fayol
B. W. Taylor
C. Max Weber
D. Harold Koontz
Answer:A

20. Fayol’s Principle of Division of work can be applied to following kind of work.
A. Technical
B. Managerial
C. Both
D. None of these
Answer:C

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21. “Authority is undermined, displine in jeopardy, order disturbed and stability
threatened” Above statement is the violation of one of the principles of
management.
A. Unity of direction
B. Discipline
C. Unity of command
D. Stability of Personnel
Answer:C

22. Which of the following is the most suitable example for principle of
Centralization and Decentralization’
A. Manager should not fall in the temptation of misusing his/her powers for personal gains.
B. Panchayats in India have been given more powers to decide spend fund for welfare of people
of their village.
C. Company has suggestion box system to encourage suggestions from
D. Personnel should be given reasonable time to show results
Answer:B

23. The continuation of Fayol and Taylor are ………………………. to each other
A. Competitive
B. Cooperative
C. Complimentary
D. Coordinated
Answer:C

24. General theory of Administration is the expression of:

A. W.Taylor
B. Henry Fayol
C. Max Weber
D. Brech
Answer:B

25. How are principles of management are formed?

A. By rule of Thumb
B. By observation and experimentation
C. By experiences of customers

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 D. By experiments in Science laboratory
Answer:B

26. Direction is a ________ function performed by all the managers at all levels of
the organization.
A. Managerial
B. Organizational
C. Both (A) and (B)
D. None of the above
Answer:A

27. Retailing category(ies) based on ownership arrangement would be

A. Super Markets
B. Consumer Durables Stores
C. Departmental Stores
D. All of the above
Answer:D

28. Which type of strategies do professional managers help organizations in

chalking out?
A. Multi-disciplinary
B. Corporate
C. Managerial
D. All of the above.
Answer:B

29. Which of the following is not a principle by Henry Fayol?

A. Division of work
B. Harmony not discord
C. Discipline
D. Unity of Command
Answer:B

30. Management should find the one best way to perform a task. Which technique
of management states that:
A. Time study

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 B. Motion study
C. Fatigue study
D. Method study
Answer:D

Chapter: Planning

31. Identify the best definition of planning.

A. An integrated process in which plans are formulated, carried out and controlled
B. Devising ways of achieving the objectives of an organization.
C. Setting an organization’s objectives and the means of reaching them.
D. The core activity of planners and planning departments.
Answer:C

32. The top management works on

A. Strategic Plan
B. Corporate Plan
C. Budgeting
D. Both A and B
Answer:A

33. What is the planning horizon?

A. The time ahead for which there is no information.
B. The time between making a plan and putting it into effect.
C. The maximum time for which managers can make plans.
D. The time period within which uncertainty is very low.
Answer:B

34. A strategic plan is also called ___________

A. Long term plan
B. Short term plan
C. Both A and B
D. None of above
Answer:A

35. The first step in the planning process is to

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 A. Set an objective
B. Evaluate alternatives
C. Determine strength and weaknesses
D. None of above
Answer:A

36. The decision making step, which consists of organization goals, predicting
alternatives and communicating goals is called __________
A. Organization
B. Alternation
C. Planning
D. Valuing
Answer:C

37. MBO offers the basis for assessing the ---

A. Operations
B. performance
C. equality
D. None these
Answer:B

38. MBO was developed by ----

A. Peter.F.Drucker
B. Chester Bernard
C. Fayol
D. None
Answer:A

39. The process of MBO starts with -----

A. setting up of obligation
B. Fetron plan
C. Review
D. All
Answer:A

40. Organisational decisions are made by ------

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 A. Directors
B. Managers
C. Managing directors
D. None of these
Answer:B

41. Policies are flexible where as procedure are --------

A. specific
B. detailed
C. Rigid
D. All
Answer:C

42. -----------is described as interpretative planning

A. Procedure
B. Strategy
C. Policies
D. None of the above.
Answer:B

43. --------------indicates the exact manner in which the integrated serious of

activities will
A. Procedures
B. Planning
C. Organizing
D. Staffing
Answer:A

44. Planning is --------------process

A. Directing
B. Thinking
C. Forecasting
D. None of these
Answer:B

45. MBO offers the basis for assessing the -----------------

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 A. Techniques
B. Performance
C. Authority
D. Subject
Answer:B

46. Planning is...........

A. Pervasive
B. Futuristic
C. Continues
D. All of these
Answer:D

47. Planning involves................

A. Future course of action
B. Review of past performance
C. Analysis of policies
D. All of these
Answer:A

48. Planning provides.............

A. Information to outsiders
B. Basis for recruitment and selections
C. Purpose and direction of all persons
D. None of these
Answer:C

49. Operational planning is undertaken at.................

A. Top level
B. lower level
C. middle level
D. All of these
Answer:B

50. Planning process began with

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 A. Setting objectives
B. Identity alternatives
C. Developing planning premise
D. Selecting alternatives
Answer:A

51. It is a function of management which refers to the process of integrating the

activities of different units of organization to achieve the organization goals. This is
called
A. Actuating
B. Controlling
C. Co-ordination
D. Planning
Answer:C

52. Planning is
A. Forward looking
B. Backward looking
C. Both forward and backward looking
D. None of the above
Answer:C

53. Management by objective is

A. goal oriented
B. work oriented
C. budget oriented
D. none of the above
Answer:A

54. What is the full form of MBO?

A. Management By Opportunity
B. Method By opportunity
C. Management By Objectives
D. Method By Objective
Answer:C

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55. Which among the following involves in planning process?
A. Selection of objective
B. Determine the way to achieve objective
C. Both A and B
D. None of the above
Answer:C

56. Which among the following is a single use plan?

A. Objectives
B. Policies
C. Rules
D. Budget
Answer:D

57. __________ is the decision making body of an organization?

A. Decentralization
B. Administration
C. Functional organization
D. Leadership
Answer:B

58. The difference between annual and long-range plans versus a strategic plan is
that the annual and long-range plans deal with the company’s current business and
how to keep them going, while the strategic plan deals with:
A. Functional activities
B. Global activities
C. Tactical decisions.
D. Adapting the firm to take advantage of opportunities in its constantly changing environment.
Answer:D

59. The three types of plans usually prepared by companies include annual plans,
strategic plans and ___________ plans.
A. Hourly
B. Long-range
C. Model
D. Psychological

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Answer:B

60. Planning encourages management to think systematically about what has

happened, what is happening and ______________
A. When it is happening
B. What might happen
C. Should something happen
D. Should something stop
Answer:B

Chapter: Organising

61. Which of the following activities is better decentralised in the typical

organisation?
A. Operations management
B. Information systems design
C. Purchasing capital equipment
D. Controlling international cash flows
Answer:A

62. Factors affecting organizational behavior is/are

A. People
B. Enviournment
C. Technology
D. All the above
Answer:D

63. Which organisational structure facilitates occupational specialisation,

A. Functional structure
B. Horizontal structure
C. Network structure
D. Divisional structure
Answer:A

64. As we go higher up in the management hierarchy the scope of authority

A. Increases

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 B. Decreases
C. Remains same
D. None of the above
Answer:A

65. Which of the following is not an example of 'structure?

A. Supplies of materials
B. Rules and procedures
C. Formal hierarchy
D. Information systems
Answer:A

66. An organizational chart describes:

A. The relationship between the different departments and their personnel
B. The company goals
C. The function each person performs.
D. Both B and C
Answer:A

67. Choose the correct sequence of steps to be followed in an organizing process.

A. Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification
and division of work
B. Identification and division of work, Assignment of duties, Departmentalisation, Establishing
reporting relationships
C. Identification and division of work, Establishing reporting relationships, Departmentalisation,
Assignment of duties
D. Identification and division of work, Departmentalisation, Assignment of duties, Establishing
reporting relationships
Answer:D

68. For An employee Authority granted should be

A. Equal to the responsibility entrusted to him
B. Less than the responsibility entrusted to him
C. More than the responsibility entrusted to him
D. All of the above

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Answer:A

69. Employee relationships are major element of occupation of

A. Marketing manager
B. Account manager
C. Finance manager
D. Human resource manager
Answer:D

70. When the "voice of customers" is brought into the organization, which of the
following organizational structures work best?
A. Virtual teams
B. Cross functional teams
C. Matrix
D. Line and staff
Answer:B

71. The average loss of manpower due to leave, retirement, death, transfer,
discharge, etc to calculate the need for manpower is known as
A. Work load analysis
B. Forecasting
C. Job analysis
D. Workforce analysis
Answer:D

72. Which of the following is not ways to departmentalize

A. By function
B. By employee
C. By process
D. By product
Answer:B

73. Choose option that is not a feature of formal organisation?

A. It specifies the relationships among various job positions
B. The standards of behaviour of employees are evolved from group norms
C. It is deliberately designed by the top management

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 D. It places less emphasis on interpersonal relationships among the employees
Answer:B

74. A strategy of jog design that increases job depth by meeting employees needs
for psychological growth
A. Job rotational
B. Job enlargement
C. Job engagement
D. Job enrichment
Answer:D

75. A job is evaluated based on essential information is

A. Job description
B. Job enrichment
C. Job ranking
D. Job enlargement
Answer:A

76. Which of the following characteristics under Job specification

A. Psychological characteristics
B. Physical characteristics
C. Personal characteristics
D. All of the above
Answer:D

77. Higher management levels retains decision-making authority in organisation is

said to be
A. Decentralised
B. Centralised
C. Fragmented
D. All the above
Answer:B

78. The record of outcomes produced on a specific job function or activity during a
specific time period is called
A. Work function

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 B. Evaluation
C. Performance
D. None of the above
Answer:C

79. Information on the human attributes in terms of education, skills, aptitudes,

and experience necessary to perform a job effectively is
A. Job evaluation
B. Job specification
C. Job description
D. Job analysis
Answer:B

80. Career development is defined as

A. Providing information to students about opportunities of employment
B. Determining the potentialities of students for a suitable career
C. Conscious determination of career aspirations and potentialities of employees and matching
them with the organisation’s needs
D. Providing counselling to students to choose their careers
Answer:C

81. Human Resource planning is compulsory for

A. Base for recruitment
B. Base for selection policy
C. Effective employee development programme
D. All the above
Answer:D

82. Appointing someone on a post that is at same wages/rank refers to

A. Internal recruiters
B. Employee referral
C. Lateral hiring
D. Sourcing
Answer:C

83. 360° appraisal means?

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 A. A process that provides an employee opportunity in decision making
B. A process that provides an officer opportunity of feedback about own performance
C. Both A and B
D. A process that provides an employee with feedback about his / her workplace performance
Answer:D

84. Identify the related step in organising process being mentioned in the below
lines. Hari has joined as a Creative Head in an entertainment company. He always
ensures that the work has been divided into small and manageable activities and
also the activities of similar nature are grouped together.
A. Identification and division of work
B. Departmentalisation
C. Assignment of duties
D. Establishing reporting relationships
Answer:B

85. Find correct one which cannot be delegated?

A. Responsibility and accountability
B. Authority and responsibility
C. Accountability and responsibility
D. All of the above
Answer:A

86. Training & Development program in international Human Resource

Management should give attention to
A. Understanding of the cultural environment of the host country
B. Improvement of technical expertise
C. Promotion of efficiency of personnel in the host country
D. All the above
Answer:D

87. Linkedin, Twittter, facebook are used for recruitment is

A. Media recruiting
B. Social recruiting
C. External recruiting
D. Internal recruiting

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Answer:B

88. Why grievances to be redressed?

A. Collective disputes conversion
B. Affects the management
C. Affects the individual
D. All the above
Answer:D

89. Termination of employee by an owner besides will of worker is /are

A. Screening
B. Dismissal
C. Firing
D. Both B and C
Answer:D

90. Manpower planning is

A. Estimating the turnover likely to happen in near future
B. Identifying the skills / filling up the requirements
C. Determining the jobs to be done / identifying the skills / estimating the exists likely / filling up
the requirements
D. Determining the jobs to be done
Answer:C

Chapter: Directing

91. It is very difficult to detect the source of such communication.

A. Upward communication
B. Vertical communication
C. Lateral communication
D. Informal communication
Answer:D

92. It refers to the process of instructing, guiding, counseling, motivating and

leading people in the organization to achieve their objectives.
A. Planning

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 B. Organizing
C. Staffing
D. Directing
Answer:D

93. Which of the following is not an element of directing?

A. Supervision
B. Communication
C. Leadership
D. Inspection
Answer:D

94. Identify the level at which the directing function takes place in an organization?
A. Top level management
B. Middle level management
C. Lower level management
D. All of the Above
Answer:D

95. It means the process of making subordinates to act in a desired manner to

achieve certain organizational goals.
A. Supervision
B. Communication
C. Leadership
D. Motivation
Answer:C

96. Effective motivation in the organisation does not contribute towards

A. Developing performance levels of employees
B. Helping to reduce employee turnover
C. Resistance to changes in the organisation
D. All of the above
Answer:C

97. Which of the following is not an example of financial incentive?

A. Perquisites

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 B. Job Enrichment
C. Profit Sharing
D. Co-partnership
Answer:B

98. It is the process of influencing the behavior of people by making them strive
voluntarily towards achievement of organisational goals.
A. Supervision
B. Communication
C. Leadership
D. Motivation
Answer:C

99. Which of the following is not a feature of leadership?

A. It shows ability of an individual to influence others.
B. It leads to achievement of organisational goals.
C. Leadership is one-time process.
D. It leads to desired change in the organisation.
Answer:C

100. Identify the correct sequence of steps involved in the communication process.
A. Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
B. Sender, Decoding, Receiver, Feedback, Message, Encoding, Media
C. Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
D. Sender, Media, Decoding, Receiver, Message, Encoding, Feedback
Answer:C

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