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    Model Question PaperPrinciples of Management (SMB101)

    Answer all 100 questions.

    Each question carries one mark.

    1. Mintzberg identified ten managerial roles which were grouped into three categories. The roles of entrepreneur,

    disturbance handler, resource allocator and negotiator can be categorized as

    a! "ecisional roles

    b! #nterpersonal rolesc! #nformational roles

    d! Administrati$e rolese! %rganizational roles.

    2. Managers at which of the following le$els deal with the actual operation of $arious departments in an

    organization&

    a! 'irst le$el

    b! Top le$elc! Middle le$el

    d! (ero le$ele! 'rontline le$el.

    3. The management function of influencing, moti$ating, and directing human resources toward the achie$ement of

    organizational goals is commonl) referred to as

    a! *eading

    b! +ontrollingc! lanning

    d! -taffinge! %rganizing.

    4. Managers need certain skills to perform the functions associated with their obs. /hich of the following skills

    are important at all le$els in the organization&

    a! +onceptual

    b! "esignc! uman

    d! Technicale! Administrati$e.

    5. The management function of organizing in$ol$es determining

    #. Tasks to be performed.##. ow tasks can best be combined into specific obs.

    ###. Authorit) and reporting relationships within the corporate hierarch).#. romotions and career planning.

    a! 2oth #! and ###! abo$eb! 2oth ##! and #! abo$e

    c! #!, ##! and ###! abo$ed! ##!, ###! and #! abo$e

    e! All #!, ##!, ###! and #! abo$e.

    . /hich of enr) 'a)ol3s principles of management states that 4work specialization leads to efficienc) of

    operations3&

    a! "i$ision of laborb! -tabilit)

    c! Esprit de corpsd! "iscipline

    e! "ecentralization.

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    !. As per the s)stems approach to management, an organization that interacts with e5ternal forces is termed as a6an

    a! +losed s)stem

    b! Modelc! #ndependent entit)

    d! %pen s)steme! +ontingenc) unit.

    ". /hich of the following is6are the finding6s of awthorne -tudies&

    #. /orkplace culture sets its own production standards.##. 'atigue is the main factor affecting the output.

    ###. 7ob performance depends on the indi$idual worker.

    a! %nl) #! abo$e

    b! %nl) ##! abo$ec! %nl) ###! abo$e

    d! 2oth #! and ##! abo$ee! All #!, ##! and ###! abo$e.

    #. /hich of the following approaches to management emphasized the human element, thus $iewing the organization

    from an indi$iduals3 point of $iew&

    a! Management science approach

    b! -cientific approachc! Administrati$e approach

    d! -)stems approache! 2eha$ioral approach.

    10. racticing ethical guidelines enables managers to become followers of moral management approach. The)

    facilitate ethical business decisions. /hich of the following is notan ethical guideline for managers&

    a! 8pholding human dignit)

    b! %be)ing the lawc! Top management commitment

    d! rimum non9nocere

    e! Telling the truth.11. /hich of the following is not a wa) b) which business firms can fulfill their obligations towards their customers&

    a! +harging reasonable prices for their productsb! Ensuring pro$ision of standardized and qualit) goods and ser$ices

    c! Abstaining from unethical practicesd! Ensuring eas) a$ailabilit) of goods and ser$ices

    e! +reating a long9term and health) relationship with creditors.

    12. /hich of the following refers to the in$ol$ement of emplo)ees in ci$ic acti$ities&

    a! olunteerism

    b! 'und9raisingc! :ec)cling

    d! aluing di$ersit)e! ;ualit) of work life.

    13. /hich of the following t)pes of management stri$es to follow ethical principles and doctrines&

    a! #mmoral managementb! Moral management

    c! Amoral management

    d! +risis managemente! "isaster management.

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    14. 2ased on the frequenc) of use, plans can be categorized as single9use plans and standing plans. -tanding plans

    that furnish broad guidelines for channeling management thinking in a specified direction are called

    a! roceduresb! rograms

    c! -ingle9use plansd! olicies

    e! :ules.15. lanning is a prerequisite not onl) for achie$ing success but also for sur$i$ing in a comple5 and competiti$e

    world. /hich of the following is not a characteristic of planning&

    a! #t is goal9orientedb! #t is a secondar) function

    c! #t is an intellectual or rational processd! #t is forward9looking

    e! #t is an integrated process.

    1. -ara is associated with a committee that is gi$en the responsibilit) to re$iew and institute a process for emplo)eesto use when requesting upgrades in computer equipment. /hich t)pe of obecti$es would -ara most li$el%

    de$elop&

    a! #ntermediate9term obecti$esb! *ong9term obecti$es

    c! -hort9term obecti$esd! %rganizational obecti$es

    e! "i$ision obecti$es.

    1!. The ke) result areas in business suggested b) eter "rucker include

    #. h)sical and financial resources.

    ##. rofitabilit).

    ###. #nno$ation.#. /orker performance and attitude.

    a! 2oth #! and ##! abo$e

    b! 2oth ###! and #! abo$ec! #!, ##! and #! abo$ed! #!, ###! and #! abo$e

    e! All #!, ##!, ###! and #! abo$e.

    1". /hich of the following is nota factor that would make Management b) %becti$es more effecti$e&

    a! Emphasis on short9term goals

    b! Top management supportc! 'ormulating clear obecti$es

    d! Training for M2%

    e! Encouraging participation.

    1#. "epartmentation b) 4time3 is one of the oldest forms of departmentation, generall) used at lower le$els of the

    organization. /hich of the following is an ad$antage of departmentation b) 4time3&

    a! *ack of super$ision in the night shifts

    b! Emplo)ees ma) find it difficult to switch from one shift to another

    c! +oordination and communication becomes a problem with se$eral shifts

    d! Emplo)ees ma) postpone work in order to get paid o$ertimee! /orkers ma) concentrate on the total s)stem rather than concentrating on narrow and specified technical

    aspects.

    20. The concept that defines the number of subordinates that report to a manager and that indirectl) specifies thenumber of le$els of management in an organization is called

    a! Authorized line of responsibilit)b! 8nit) of command

    c! 8nit) of direction

    d! -pan of controle! :esponsibilit) factor.

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    21. According to the 2+< matri5, an -28 comprising speculati$e products that entail high risks, would be referred to

    as a

    a! ;uestion markb! 2ull

    c! "ogd! +ash cow

    e! -tar.22. /hich of the following refers to the process that helps new emplo)ees adapt to the organization3s culture&

    a!

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    2". %rganizations that adopt a matri5 structure generall) pass through some structural stages. /hich of the following

    can be correctl%stated about these stages&

    #. As each stage of the matri5 structure pro$ides increasing amounts of horizontal integration, it makesadministration simpler.

    ##. 2ecause managerial integrators often coordinate directl) with $arious members of functional departmentsassigned to assist them with their proects, dual authorit) is eliminated.

    ###. Teamwork is emphasized.#. A mature matri5 is adopted when the functional and di$isional dimensions are equall) important.

    a! %nl) #! abo$eb! 2oth #! and ##! abo$e

    c! 2oth ###! and #! abo$ed! #!, ##! and ###! abo$e

    e! #!, ##! and #! abo$e.

    2#. The tendenc) of a s)stem to break down or degrade, become disorganized, or disintegrate is known as

    a! Entrop)

    b! Autonom)c! Equifinalit)

    d! Espirit de +orps

    e! "omino Effect.

    30. /hich of the following is6are features! of competiti$e ad$antage&

    #. #t is strongest when it is e5tremel) difficult for or e5pensi$e for competitors to cop).##. #t is possible for a firm to build a competiti$e ad$antage o$er all other competitors.

    ###. #t should ultimatel) create increased $alue for customers.#. #t is generated on the basis of organizational competencies.

    a! %nl) #! abo$eb! 2oth #! and ###! abo$e

    c! 2oth ##! and #! abo$ed! #!, ###! and #! abo$e

    e! All #!, ##!, ###! and #! abo$e.

    31. /hich of the following refers to a s)stem of shared $alues, assumptions, beliefs, and norms that unite themembers of an organization&

    a! %rganizational changeb! +ommunication

    c! %rganization restructuringd! +orporate social responsibilit)

    e! %rganization culture.

    32. /hich of the following is6are ad$antages! of departmentation b) process or equipment&

    #. #t brings about horizontal coordination to proects.

    ##. #t is beneficial when the equipment or machiner) requires special operating skills.###. The basic purpose of the departmentation is to get economic benefits.

    a! %nl) #! abo$e

    b! %nl) ###! abo$e

    c! 2oth #! and ##! abo$ed! 2oth #! and ###! abo$e

    e! 2oth ##! and ###! abo$e.

    33. Management is the act of getting things done through people. /hich of the following is nota ke) aspect ofmanagement&

    a! Managers carr) out the functions of planning, organizing, staffing, leading and controllingb! Management is essential to an) kind of organization

    c! Management is essential onl) at few hierarchical le$elsd! The goals of all managers is to generate surplus

    e! The aim of all managers is to impro$e producti$it).

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    34. /ith respect to a -/%T anal)sis of the competiti$e en$ironment in which a compan) operates, which of the

    following cannotbe a potential 4threat3 for a compan)&

    a! +ostl) new regulator) requirementsb! *oss of sales to substitute products

    c! %bsolete facilitiesd! Technological changes that undermine demand for a product

    e!

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    41. /hich of the following is notallowed in a brainstorming session&

    a! +lear definition of the problem

    b! +riticism of poor ideasc! *arge number of alternati$es

    d! :ecording of all alternati$ese! 2uilding on alternati$es generated.

    42. /hich of the following statements are truewith respect to power and the t)pes of power&

    #. *egitimate power is similar to authorit) and is $er) important in the organizational conte5t.##. *egitimate power works onl) downwards.

    ###. :eferent power functions at superior and peer le$els.#. +oerci$e power is used to ensure a minimum standard of performance.

    . ower can be personal.

    a! 2oth #! and ##! abo$e

    b! 2oth ###! and #! abo$ec! #!, ###! and #! abo$e

    d! #!, #! and ! abo$ee! All #!, ##!, ###!, #! and ! abo$e.

    43. /hich of the following in$ol$es maor changes in organizational structure and changes in some maorcomponents of the organization&

    a! :estructuring

    b! -pan of controlc! Transfer

    d! lanninge! %rganizing.

    44. The degree to which decision making is concentrated at a single point in the organization is referred to as

    a! +onflictb! +entralization

    c! *ine authorit)

    d! "epartmentatione!

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    55. Application blank is one of the steps in a t)pical selection process. /hich of the following is not truewith regard

    to application blank&

    a! Application blank is an efficient method of gathering information about the applicant3s pre$ious workhistor) and education background

    b! The data pro$ided in the application blank is used formall) to decide whether a candidate merits furthere$aluation

    c! #nter$iewers use application blank to familiarize themsel$es with candidates before inter$iewing themd! The application blank can also include reasons for appl)ing, e5pected salar) and positions last held

    e! +andidates who pass the preliminar) screening are required to complete a formal application formspeciall) designed to obtain the required information about the candidate.

    5. 'ormal appraisals are usuall) conducted annuall) or semi annuall) or on a s)stematic basis. /hich of the

    following is a mi5 of all the four approaches to formal performance appraisal&

    a! eer assessment

    b! -uperior3s rating of subordinatesc! ?@09degree appraisal

    d! -ubordinates3 ratings of superiors

    e! +omprehensi$e re$iew.

    5!. The emplo)ee performance rating method 42A:-3 stands for

    a! 2eha$iorall) Assisted :ating -cales

    b! 2eha$iorall) Aided :ating -calesc! 2eha$iorall) Anchored :ating -cales

    d! 2enchmark Anchored :ating -cales

    e! 2enchmark Assisted :ating -cales.

    5". Abraham Maslow3s hierarch) of human needs theor) is classified into $arious groups. An organization satisfieswhich of the following needs of its emplo)ees b) pro$iding a well9furnished office, a car, a personal assistant and

    other benefits such as stock options, club memberships, etc.&

    a! h)siological

    b! -afet) and securit)c! -ocial

    d! Esteeme! -elf9actualization.

    5#. -e$eral factors lead to organizational change. /hich of the following is nota factor that leads to organizational

    change&

    a! >ature of workforce

    b! Technolog)c! Economic factor

    d! abite! +ompetition.

    0. /hich of the following refers to the process of using creati$e ideas and looking at things in a new light&

    a! #nitiati$e

    b! Moti$ationc! Managementd! erception

    e! #nno$ation.

    1. /hich of the following is a theor) proposed b) "ouglas Mc

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    2. Most of the conflict resolution techniques either focus on interpersonal relationships or structural changes. /hich of

    the following is a traditional wa) of coping with conflict and in$ol$es agreeing in part with the other person3spoint of $iew&

    a! roblem sol$ing

    b! 'orcingc! -moothing

    d! +ompromisee! A$oidance.

    3. The inabilit) of organizations to adapt to the changing en$ironment is called

    a! %rganizational infle5ibilit)b! %rganizational conflict

    c! :etrenchmentd! %rganizational restructuring

    e!

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    #. A useful wa) to classif) $arious moti$ation theories is to look at their maor thrust. /hich of the following

    moti$ation theories emphasizes on the d)namics of moti$ation and how indi$iduals are moti$ated&

    a! +ontent theoriesb! rocess theories

    c! Transformational leadership theoriesd! Transactional leadership theories

    e! -ituational leadership theories.!0. /hich of the following shows managerial positions, current incumbents, potential replacements for each position

    and the age of each person&

    a!

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    !. /hich of the following is notan e5ample of current assets&

    a! repaid e5penses

    b! +ash and cash equi$alentsc! Marketable securities

    d! Trade pa)ablese! #n$entor).

    !!. /hich of the following does notconstitute a set of decisions that are included in an operations managementprogram&

    a! +apacit) decisions

    b! 'acilities decisionsc! ;ualit) decisions

    d! Materials6in$entor) decisionse! 2udgeting decisions.

    !". rofessor :ensis *ikert and his associates at the 8ni$ersit) of Michigan studied the patterns and st)les of leaders

    and managers and suggested certain s)stems of management for understanding leadership beha$ior. A manager,e5hibiting lack of confidence or trust in subordinates, will be categorized into which of *ikert3s management

    s)stems&

    a! -)stem 1 e5ploiti$e9authoritati$e st)le!b! -)stem C bene$olent9authoritati$e st)le!

    c! -)stem ? consultati$e st)le!d! -)stem D participati$e leadership st)le!

    e! -)stem consultati$e 9 authoritati$e st)le!.

    !#. /hich of the following financial ratios measures the abilit) of an organization to meet its short9term obligations

    b) using its current assets&

    a! *e$erage

    b! Asset managementc! "ebt management

    d! *iquidit)e! rofitabilit).

    "0. According to /illiam %uchi, organizations that e5hibit a st)le of management that combines traits of 7apanese

    and American companies are called

    a! Theor) organizations

    b! Theor) B organizationsc! Theor) ( organizations

    d! Modern organizationse! -upporti$e organizations.

    "1. According to Furt *ewin, a leader who in$ol$es emplo)ees in decision9making, delegates3 authorit), gathers

    inputs from emplo)ees, and makes the final decision b) himself is most possibl) using which st)le of leadership&

    a! "emocratic

    b! *aissez9faire

    c! Autocraticd! +onsultati$ee! 2ene$olent authoritati$e.

    "2. #n which of the following techniques for impro$ing producti$it) are workers in$ited to participate in simplif)ingtheir work&

    a! Time9e$ent networks

    b! alue engineeringc! /ork simplification

    d! ;ualit) circlese! Total qualit) management.

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    "3. Management b) walking around M2/A! ma) be used as a control technique b) managers to monitor the

    performance of their emplo)ees while the) are performing their tasks. M2/A is primaril) based on

    a! -tatistical informationb! %ral reports

    c! /ritten reportsd! +omputer databases

    e! ersonal obser$ation."4. /hich of the following management information s)stems is an interacti$e computer s)stem that pro$ides

    managers with the necessar) information for making intelligent decisions&

    a! Transaction processing s)stemb! "ecision support s)stem

    c! %ffice automation s)stemd! E5ecuti$e support s)stem

    e! *ine support s)stem.

    "5. #nformation s)stems are resource management agents used to plan, monitor, control, and e$aluate the utilizationof 4management information3 which is a maor organizational resource. /hich of the following is not a

    component of an information s)stem&

    a! ardwareb! -oftware

    c! eopled! "ata

    e! olicies.

    ". /hich of the following control s)stems do lower9le$el managers3 use more frequentl)&

    #. 'inancial control s)stem.

    ##. 2udgetar) control s)stem.

    ###. ;ualit) control s)stem.#. #n$entor) control s)stem.

    a! 2oth #! and ##! abo$e

    b! 2oth ##! and ###! abo$ec! 2oth ###! and #! abo$ed! #!, ##! and ###! abo$e

    e! ##!, ###! and #! abo$e.

    "!. %rganizations make use of fi$e maor t)pes of information s)stems. /hich of the following s)stems records an)e$ent or acti$it) that in$ol$es the interaction of the organization with e5ternal agents&

    a! Transaction processing s)stemb! %ffice automation s)stem

    c! "ecisions support s)stem

    d! E5ecuti$e support s)steme! Management information s)stem.

    "". /hich of the following factors! can be measured or e$aluated b) using

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    "#. /hich of the following strategies of o$ercoming resistance to change in$ol$es selecti$el) pro$iding information

    about a change so that it appears more attracti$e or necessar) to potential resisters&

    a! +ooptationb! Manipulation

    c! +oerciond! >egotiation

    e! articipation.#0. /hich of the following is notan upward communication&

    a! +ost accounting report

    b! urchase order summar)c! -ales report

    d! +orporate polic) statemente! roduction report.

    #1. /hich of the following $ariables is at the heart of 'iedler=s +ontingenc) Theor)&

    a! *east preferred leaderb! *east preferred task

    c! *east preferred compan)

    d! *east preferred positione! *east preferred co9worker.

    #2. /hich of the following ratios when high increases an organization3s profitabilit) resulting in a lesser need forin$estment in assets&

    a! +urrentb! Acti$it)

    c! *iquidit)

    d! rofitabilit)

    e! ;uick.

    #3. /hich of the following statements is6are true with respect to content theories of moti$ation&

    #. Maslow3s self9actualization and esteem needs correspond to erzberg3s moti$ators.

    ##. Mc+lelland3s need for achie$ement corresponds to Alderfer3s relatedness needs.###. Maslow3s esteem needs correspond to Alderfer3s need for power.

    #. erzberg3s h)giene factors correspond to Mc+lelland3s need for affiliation, Maslow3s social needs andAlderfer3s e5istence needs.

    a! %nl) #! abo$eb! 2oth #! and ###! abo$e

    c! 2oth ##! and #! abo$ed! ##!, ###! and #! abo$e

    e! All #!, ##!, ###! and #! abo$e.

    #4. /hich of the following statements is6are trueabout 4Economic %rder ;uantit)3 E%;!&

    #. #t is helpful for determining desirable in$entor) le$els when demand is predictable.

    ##. E%; is useful in determining in$entor) le$els of parts and materials used in production, as well.###. "ecisions based on E%; could lead to shortage or e5cess of in$entor).

    a! %nl) ##! abo$eb! %nl) ###! abo$e

    c! 2oth #! and ##! abo$ed! 2oth #! and ###! abo$e

    e! All #!, ##! and ###! abo$e.

    #5. /hich one of the fallowing is nota technique of financial control&

    a! 2udgetar) control

    b! ;ualit) circlec! 2reak9e$en anal)sis

    d! :esponsibilit) accountinge! #nternal audit.

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    #. Assigning workers additional tasks on the same le$el, which increases the number of tasks the) ha$e to do, is

    known as

    a! 7ob enrichmentb! 7ob enlargement

    c! 7ob rotationd! ertical ob loading

    e! 7ob loading.#!. A Total ;ualit) Management programme is notcharacterized b)

    a! A continual process

    b! Efforts b) all organization membersc! A focus on onl) a few critical work acti$ities

    d! A focus on the production processe! Efforts to in$ol$e organization members.

    #". /hich of the following is6are inferences! drawn from the %hio -tate studies&

    #. The dimension 4initiating structure3 is similar to the ob centered leader beha$ior identified b) #owa studies.##. The dimension 4consideration3 emphasizes people related issues.

    ###. %hio -tate studies consider initiating structure and consideration as the two ends of the same continuum.

    #. The two9dimensional approach led to the probabilit) that a leader might place emphasis on both task andpeople related issues.

    a! %nl) #! abo$e

    b! 2oth #! and ##! abo$ec! 2oth ###! and #! abo$e

    d! #!, ##! and #! abo$ee! All #!, ##!, ###! and #! abo$e.

    ##. /hich of the following costs decreases with an increase in in$entor)&

    a! +ost of capitalb! -torage space costs

    c! %bsolescence costs

    d! %rdering costse! #nsurance.

    100. roducti$it) can be measured in two wa)sG total producti$it) and partial producti$it). #n both the cases it ise5pressed as a ratio of outputs to inputs. /hich of the following inputs is common to both the measures of

    producti$it)&

    a! +apital

    b! Energ)c! Materials

    d! *abor

    e! Technolog).

    &' * Q+&S,-' PP&/

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    Suggested nsersPrinciples of Management (SMB101)

    'S&/ /&S'

    1. A The roles of entrepreneur, disturbance handler, resource allocator, and negotiator can be

    categorized as decisional roles. ence, we can infer that option a! is correct.

    2. + Middle le$el managers deal with the actual operation of the organization3s units. ence, we caninfer that option c! is correct.

    3. A The management function of influencing, moti$ating, and directing human resources toward the

    achie$ement of organizational goals is leading. ence, we can infer that option a! is correct.

    4. + uman skills are important at all le$els in the organization. ence, we can infer that option c! is

    correct.

    5. + The management function of organizing in$ol$es determiningG

    Tasks to be performed.

    ow tasks can best be combined into specific obs.

    Authorit) and reporting relationships within the corporate hierarch).

    romotions and career planning are part of the staffing function.

    ence, we can infer that option c! is correct.

    . A enr) 'a)ol3s principle of di$ision of labor states that 4work specialization leads to efficienc) of

    operations3. ence, we can infer that option a! is correct.

    !. " An organization that interacts with e5ternal forces is an open s)stem. %ther options are not true

    with respect to the question. ence, we can infer that option d! is correct.

    ". A /orkplace culture sets its own production standards is the finding of the awthorne studies.

    -tatements ##! and ###! are pre9udgments of the awthorne studies. ence, we can infer thatoption a! is correct.

    #. E 2eha$ioral approach to management emphasized the human element, thus $iewing theorganization from an indi$iduals3 point of $iew. ence, we can infer that option e! is correct.

    10. + Top management commitment is a mechanism for ethical management in organizations and notan ethical guideline for managers. ence, we can infer that option c! is correct.

    11. E +reating a long9term and health) relationship with creditors is an obligation towards creditorsthat business firms should fulfill. ence, we can infer that option e! is correct.

    12.A olunteerism refers to the in$ol$ement of emplo)ees in ci$ic acti$ities. ence, we can infer that

    option a! is correct.

    13. 2 Moral management stri$es to follow ethical principles and doctrines. ence, we can infer thatoption b! is correct.

    14. " olicies are standing plans that furnish broad guidelines for channeling management thinking inspecified direction. ence, we can infer that option d! is correct.

    15. 2 lanning is a primar) function as it precedes the e5ecution of all other management functions. -o

    it is not a secondar) function. %ptions a!, c!, d! and e! are all characteristics of planning.ence from abo$e discussion, we can infer that option b! is not a characteristic of planning.

    1. + An obecti$e is the aim of an action. #t implies a specific work to be accomplished within a gi$en

    period of time. -hort9term obecti$e is de$eloped to accomplish a work in a $er) short period oftime. ence, from abo$e discussion, we can infer that option c! is correct.

    1!. E The ke) result areas in business suggested b) eter "rucker includesG

    h)sical and financial resources. rofitabilit).

    #nno$ation.

    /orker performance and attitude.

    ence, from abo$e discussion, we can infer that option e! is correct.

    1". A Emphasis on short9term goals is not a factor that would make Management b) %becti$es M2%!

    more effecti$e. ence, from abo$e discussion, we can infer that option a! is correct.

    1#. & #n departmentation b) time, workers ma) concentrate on narrow and specified technical aspectsrather than the total s)stem. Therefore, option e! is the answer.

    20. -pan of control is the concept that defines the number of subordinates that report to a managerand that indirectl) specifies the number of le$els of management in an organization. ence from

    abo$e discussion, we can infer that option d! is correct.

    21. A question mark is a business unit that has a small relati$e market share in a rapidl) growing

    market. The future performance of such a business unit is uncertain. ence, from abo$ediscussion, we can infer that option a! is correct.

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    22. -ocialization refers to the process that helps new emplo)ees adapt to the organization3s culture.ence, from abo$e discussion, we can infer that option c! is correct.

    23. 'unctional departmentation is the grouping of acti$ities b) functions performed. ence, fromabo$e discussion, we can infer that option a! is correct.

    24. + rogrammed decisions require managers to e5ercise little discretion. ence, from abo$ediscussion, we can infer that option c! is correct.

    25. & The three le$els of strateg) include #! corporate le$el, ##! business le$el and ###! functional

    le$el. ence, from abo$e discussion, we can infer that option e! is correct.2. 2 #n -/%T anal)sis, opportunities and threats are e5ternal characteristics of an organization.

    ence, from abo$e discussion, we can infer that option b! is correct.

    2!. + E5pert power is the power based upon one=s e5pertise, special skills, or knowledge. ence, fromabo$e discussion, we can infer that option c! is correct.

    2". + The following can be stated about these stagesG

    Teamwork is emphasized.

    A mature matri5 is adopted when the functional and di$isional dimensions are equall)

    important.

    -tatement #! is not correct because e$en though each stage of the matri5 structure pro$ides

    increasing amounts of horizontal integration, but at the same time, it makes administration morecomple5.

    -tatement ##! is not correct because dual authorit) e5ists to some degree, e$en with managerial

    integrators, because the integrators often coordinate directl) with $arious members offunctional departments e.g. marketing, purchasing, engineering, etc.! assigned to assist them

    with their proects.ence, from abo$e discussion, we can infer that option c! is correct.

    2#. A The tendenc) of a s)stem to break down or degrade, become disorganized, or disintegrate isknown as entrop). ence, from abo$e discussion, we can infer that option a! is correct.

    30. " The following is6are features of competiti$e ad$antageG#. #t is strongest when it is e5tremel) difficult for or e5pensi$e for competitors to cop)

    ##. #t is not possible for a firm to build a competiti$e ad$antage o$er all other competitors.###. #t should ultimatel) create increased $alue for customers.

    #. #t is generated on the basis of organizational competencies.ence, from abo$e discussion, we can infer that option d! is correct.

    31. E %rganization culture refers to a s)stem of shared $alues, assumptions, beliefs, and norms that

    unite the members of an organization. ence, from abo$e discussion, we can infer that option e!is correct.

    32. E The following are ad$antages of departmentation b) process or equipmentG

    #t is beneficial when the equipment or machiner) requires special operating skills.

    The basic purpose of the departmentation is to get economic benefits.

    -tatement #! is an ad$antage of a matri5 organization. ence, from abo$e discussion, we caninfer that option e! is correct.

    33. + Management is essential at all le$els in a n organization. ence, option c! is not a ke) aspect ofmanagement. ence, from abo$e discussion, we can infer that option c! is correct.

    34. + %bsolete facilities are a potential resource weakness not a threat. ence, from abo$e discussion,we can infer that option c! is correct.

    35.

    A reference theor) is based on the notion that indi$idual attitudes towards risk $ar). ence, from

    abo$e discussion, we can infer that option a! is correct.

    3. + The planning process begins with stating organizational obecti$es ence, from abo$e discussion,we can infer that option c! is correct.

    3!. E E5ploiting staff is not a means of a$oiding line and staff conflicts. ence, from abo$e discussion,we can infer that option e! is correct.

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    53. 2 :ecruitment is process of identif)ing and attempting to attract candidates who are capable ofeffecti$el) filling up ob $acancies. ence, from abo$e discussion, we can infer that option b! is

    correct.

    54. + The following are ke) elements of erzberg3s two9factor theor) of moti$ationG

    #. Moti$ators.##. )giene factors.

    ence, from abo$e discussion, we can infer that option c! is correct.

    55. 2 %ption b! is not true with regard to application blank. The data pro$ided in the application blankis used informall) to decide whether a candidate merits further e$aluation but not formall) asgi$en in the question. ence, from abo$e discussion, we can infer that option b! is correct.

    5. + #n H?@0 degree appraisal,I an indi$idual is e$aluated using all the four approaches to formalappraisal. To be successful, these appraisals must be carefull) designed and skillfull)

    implemented. ence, from abo$e discussion, we can infer that option c! is correct.

    5!. + 2A:-3 stands for 2eha$iorall) Anchored :ating -cales. ence, from abo$e discussion, we can

    infer that option c! is correct.

    5". " An organization satisfies esteem needs of its emplo)ees b) pro$iding a well9furnished office, a

    car, a personal assistant and other benefits such as stock options, club memberships, etc. ence,from abo$e discussion, we can infer that option d! is correct.

    5#. " abit is not a factor that leads to organizational change. #t is a source of resistance to change.ence, from abo$e discussion, we can infer that option d! is correct.

    0. E #nno$ation refers to the process of using creati$e ideas and looking at things in a new light.ence, from abo$e discussion, we can infer that option e! is correct.

    1. A Theor) theor), proposed b) "ouglas Mc

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    !. " Trade pa)ables are a current liabilit) and not a current asset. ence, from abo$e discussion, wecan infer that option d! is correct.

    !!. E 2udgeting decisions do not constitute a set of decisions that are included in an operationsmanagement program. ence, from abo$e discussion, we can infer that option e! is correct.

    !". A A manager e5hibiting a lack of confidence or trust in subordinates will be categorized into-)stem 1 e5ploitati$e9authoritati$e! of *ikert=s Management -)stems. ence, from abo$e

    discussion, we can infer that option a! is correct.

    !#. " *iquidit) ratios measure the abilit) of an organization to meet its short9term obligations b) usingits current assets. ence, from abo$e discussion, we can infer that option d! is correct.

    "0. + %rganizations that e5hibit a st)le of management that combines traits of 7apanese and American

    companies are called theor) ( organizations. ence, from abo$e discussion, we can infer thatoption c! is correct.

    "1. " A consultati$e leader in$ol$es emplo)ees in decision9making, delegates3 authorit), and gathers

    input from emplo)ees, but makes the final decision himself6herself. ence, from abo$e

    discussion, we can infer that option d! is correct.

    "2. + #n work simplification method, workers are in$ited to participate in simplif)ing their work.

    ence, from abo$e discussion, we can infer that option c! is correct.

    "3. E Management b) walking around M2/A! is based primaril) on personal obser$ation. ence,from abo$e discussion, we can infer that option d! is correct.

    "4. 2 "ecision support s)stem is an interacti$e computer s)stem that pro$ides managers with the

    necessar) information for making intelligent decisions. ence, from abo$e discussion, we caninfer that option b! is correct.

    "5. E olicies are not a component of an information s)stem. ence, from abo$e discussion, we can

    infer that option e! is correct.

    ". E *ow le$el managers use budgetar) control s)stem to ensure organizational acti$ities re carried

    out according to the budgets allocated, qualit) control s)stems Jin$entor) control low9le$el

    managers use s)stems. *ow le$el mangers generall) not concerned with financial control s)stem.Top9le$el management usuall) uses financial control s)stem. ence, from abo$e discussion, we

    can infer that option e! is correct.

    "!. A Transaction processing s)stem s)stems records an) e$ent or acti$it) that in$ol$es the interaction

    of the organization with e5ternal agents. ence, from abo$e discussion, we can infer that optiona! is correct.

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    #4. " The following statements is6are true about 4economic order quantit) E%;!3G

    #t is helpful for determining desirable in$entor) le$els when demand is predictable.

    "ecisions based on E%; could lead to shortage or e5cess of in$entor).

    -tatement ##! is not true as E%; ma) not be useful in determining in$entor) le$els of parts and

    materials used in production. ence, from abo$e discussion, we can infer that option d! iscorrect.

    #5. 2 'inancial control is rele$ant for those aspects of business operations whose outcomes are

    e5pressed in monetar) terms. The maor techniques of financial control at operati$e le$el arebudgetar) control, break9e$en anal)sis, :esponsibilit) accounting and internal audit. ;ualit)circle is not a technique of financial control and it is a technique of operating control. ence,

    from abo$e discussion, we can infer that option b! is correct.

    #. 2 7ob enlargement is a ob design approach that in$ol$es the allocation of a wider $ariet) of similar

    tasks to a ob in order to make it more challenging. ence, from abo$e discussion, we can inferthat option b! is correct.

    #!. + A T;M programme is a continual process in$ol$ing all organization members that spans allproduction acti$ities in the organization. ence, from abo$e discussion, we can infer that option

    c! is correct.

    #". " The following are inferences drawn from the %hio -tate studiesG

    The dimension 4initiating structure3 identified b) %hio -tate studies is similar to the ob

    centered leader beha$ior identified b) #owa studies.

    4+onsideration3 in %hio studies emphasizes people related issues. The two9dimensional approach led to the probabilit) that a leader might place emphasis on

    both task and people related issues.-tatement ###! is not an inference as %hio -tate studies consider initiating structure and

    consideration as independent beha$iors and not two ends of the same continuum.ence, from abo$e discussion, we can infer that option d! is correct.

    ##. " %rdering costs decrease with an increase in in$entor). The remaining costs increase with anincrease in in$entor). ence, from abo$e discussion, we can infer that option d! is correct.

    100

    .

    " *abor is a common input to both the producti$it) measuresG total producti$it) and partialproducti$it). ence, from abo$e discussion, we can infer that option d! is correct.

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