Fundamentals of Management (MCQs SET 1)

Q1: Which of the following is not a step in selection process?

a) Orientation.

b) Job offer.

c) Physical examination.

d) In depth selection interview.

6 steps of an employee selection process:

1. Initial screening applications. ...

2. Employment tests. ...
3. Selection interview. ...
4. Verifications and references. ...
5. Physical examination. ...
6. Final decision. ...
7. Benefits of using employee selection. ...
8. Put the test results into perspective.

Q2: Which of the following strategic plans of an organization have a time frame exceeding 5 years:

a) Single use plans.

b) Long term plans.

c) Intermediate plans.

d) Short term plans.

Time-Frame Plans
 Short-, medium-, and long-range plans—differ in the distance into the future projected:
o Short-range—several hours to a year
o Medium-range—one to five years
o Long-range—more than five years

Q3: Theory states that the average employee is lazy and will try to do as little as possible.

a) X

b) Y

c) Z
d) None of above.

Theory X and theory Y are part of motivational theories. Both the theories, which are very different
from each other, are used by managers to motivate their employees. Theory X gives importance to
supervision, while theory Y stresses on rewards and recognition.

According to McGregor, Theory X management assumes the following: Work is inherently distasteful to
most people, and they will attempt to avoid work whenever possible. Most people are not ambitious,
have little desire for responsibility, and prefer to be directed.

Q4: Which of the following is a second step in the planning process?

a) Identifying resources.

b) Establishing objectives.

c) Implementation.

d) Determining planning premises.

Steps in planning process:

i) identifying resources.

ii) establishing objectives and goals.

iii) determining planning premises.

iv) implementation and review.

Q5: Which one of the following Mintzberg’s Nine managerial roles is exercised by a manager who
gathers information from contacts within and outside the organization?

a) Monitor.

b) Leader.

c) Disseminator

d) Spokesperson.

Answer:
Information Roles
Monitor

 Seeks out and gathers information relevant to the organization

 Finding out about legal restrictions on new product technology

Disseminator
  Provides information where it is needed in the organization

 Providing current production figures to workers on the assembly line

Spokesperson

 Transmits information to people outside the organization

 Representing the company at a shareholders’ meeting

Interpersonal Roles
Figurehead

 Represents the company in a symbolic way

 Cutting the ribbon at ceremony for the opening of a new building

Leader

 Guides and motivates employees to achieve organizational goals

 Helping subordinates to set monthly performance goals

Liaison

 Acts as a go-between among individuals inside and outside the organization

 Representing the retail sales division of the company at a regional sales meeting

Decisional Roles

Entrepreneur

 Searches out new opportunities and initiates change

 Implementing a new production process using new technology

Disturbance handler

 Handles unexpected events and crises

 Handling a crisis situation such as a fire

Resource allocator

 Designates the use of financial, human, and other organizational resources

 Approving the funds necessary to purchase computer equipment and hire personnel

Negotiator

 Represents the company at negotiating processes

 Participating in salary negotiations with union representatives.

Q6: Which one of the following is not the reason to develop manager as leader?

i) Energies and support change.

ii) Support commitment.

iii) Support, challenge and develop people.

iv) None of the above.

a) Option (iv) is correct.

b) Option (ii) is correct.

c) Option (iii) is correct.

d) Option (i) is correct.

1. The ability to build relationships: Successful leaders establish connections with others to
build trust, share ideas and accomplish work.

2. The ability to develop people: They help others become more effective through strengths
development, clear expectations, encouragement and coaching.

3. The ability to drive change: They set goals for change and lead purposeful efforts to adapt
work that aligns with the stated vision.

4. The ability to inspire others: They leverage positivity, vision, confidence and recognition to
influence performance and motivate workers to meet their challenges.

5. The ability to think critically: They seek information, critically evaluate the information,
apply the knowledge gained and solve problems.

6. The ability to communicate clearly: They listen, share information concisely and with
purpose, and are open to hearing opinions.

7. The ability to create accountability: They identify the consequences of actions and hold
themselves and others responsible for performance.

Q7: One of the advantages of conflict is that it forces you to examine problems and work towards a
potential .

a) Solution.

b) Outcome.

c) Relationship.
d) Experience.

Q8: In a formal organization, power is associated with:

a) an individual.

b) control.

c) position.

d) relationship.

Let’s take a look at the different types of power:

1. Legitimate power (position power):

This is a type of formal power that you receive when you occupy a certain position in your organization.

Depending on the position, it gives you authority within the company. It also lasts as long as you remain
in that role.

This type of power is recognized by subordinates. For this reason, it works well in hierarchical
organizations such as the military.

Legitimate power is obtained through demonstrating you have the skills required for the role. Because
this type of power is given, it can also be taken away. Effective leaders don’t depend solely on legitimate
power. Instead, they use it in combination with others.

2. Reward power

Reward power means having the capacity to offer rewards or benefits in exchange for carrying out a task
or achieving a result.

Rewards usually come in the form of raises, benefits, promotions, or public praise. However, this type of
power is not always as effective as some leaders think.

It should be relevant and tangible enough to motivate your employees. It should also be something
that’s within your power to give and doesn’t depend on your superiors.

This type of power may help achieve results, but it doesn’t necessarily ensure the support or
commitment of your employees.

3. Expert power

Expert power comes from having both deep technical knowledge and extensive experience in your field
of expertise.
When you’re the expert in your field, people in your company naturally come to you to benefit from
your knowledge. Your expertise gives you credibility, and people trust and respect your opinions.

Expert power gives you the ability to influence co-workers across all levels of the organization. This
enables you to steer the growth and development of both individual colleagues and the company as a
whole.

However, a true expert knows they must continue developing their knowledge and skills to maintain
credibility.

4. Referent power

Leaders get referent power through qualities that inspire trust and respect in their colleagues. These
include honesty and integrity.

A person who holds referent power has excellent interpersonal skills and exudes confidence. This makes
them natural leaders. They listen to their colleagues and offer help and support.

This type of power is internal rather than external. It is a personal power that cannot be handed to you
by someone else. As your referent power grows, so too will your capacity to influence your colleagues.

5. Coercive power

It involves using threats to force people to do your will. They might not agree with what they have to do,
but they do it out of fear of repercussions such as losing their jobs.

Q9: A message can only be deemed effective when it is:

a) delivered with confidence.

b) understood by others and produces the intended results.

c) repeated back as proof of understanding.

d) communicated face to face.

Q10: Which of the following phrases is closely connected to contingency theory?

a) No one best way.

b) Universal ideas of good management.

c) Today’s ideas are tomorrow’s history.

d) One best way.