MGT503- Principles of Management (Session - 6)
Ref No: 1470875
Time: 60 min
Question No: 1 ( Marks: 1 ) - Please choose one
Which of the following is NOT one of Fredrick Taylor's four principles of management?
► Avoid cooperation with workers
► Scientifically select and then train workers
► Divide work and responsibility
► Study tasks scientifically and develop best method to perform it
Question No: 2 ( Marks: 1 ) - Please choose one
LG and Sony electronics agreed to cooperate on developing new technologies. Representatives from each firm meet regularly to coordinate this new venture. Which of the following roles these mangers are playing?
Question No: 3 ( Marks: 1 ) - Please choose one
Ali is a Branch Manager at Mutual Saving Bank. If he is an average middle manager, which of the following management activities is he likely to spend the greatest amount of time?
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following acts as an unambiguous measure of the effectiveness of a business organization?
► Employee satisfaction
► Increased revenues
Question No: 5 ( Marks: 1 ) - Please choose one
Manager's interpersonal skills are known as:
► Understand and motivate others
► Coordinate interests and abilities
► Use necessary tools and procedures
► Establish the right connections
Question No: 6 ( Marks: 1 ) - Please choose one
The managerial functions according to Fayol were :
► Organizing, staffing, commanding, coordinating and controlling
► Commanding, organizing, planning, coordinating and staffing
► Controlling, commanding, organizing, planning and leading
► Planning, organizing, commanding, coordinating and controlling
Question No: 7 ( Marks: 1 ) - Please choose one
According to Maslow's hierarchy of need, a healthy work environment is an example of which of the following need?
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following management perspective focuses on decision making, economic effectiveness, mathematical models and use of computers?
► Knowledge management
► Total quality management
► Marketing management
► Quantitative management
Question No: 9 ( Marks: 1 ) - Please choose one
Daimler- Benz, an automobile manufacturer use realistic computer simulations to study collision damage to cars. These simulations give them precise information and avoid the costs of crashing so many test cars. Which of the following approach of management is helping them in reducing their cost?
► Management science
► Operations management
► Total quality management
► Contingency perspective
Question No: 10 ( Marks: 1 ) - Please choose one
Mega environment is also called:
► Open environment
► Close environment
► Flexible environment
► General environment
Question No: 11 ( Marks: 1 ) - Please choose one
Environment made up of specific outside elements within which an organization interfaces in the course of conducting its business is called:
► Internal environment
► External environment
► The task environment
► The mega environment
Question No: 12 ( Marks: 1 ) - Please choose one
Mega environment, that includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are characteristics of a given geographic area, is called:
► The socio-cultural element
► The international element
► The economic element
► The legal-political element
Question No: 13 ( Marks: 1 ) - Please choose one
The belief that a firm's obligation goes beyond that required by law and economics, and includes a pursuit of long-term goals that are good for society is known as:
► Ethical responsibility
► Social responsibility
► Social obligation
► Social responsiveness
Question No: 14 ( Marks: 1 ) - Please choose one
A choice made from two or more alternatives is called:
Question No: 15 ( Marks: 1 ) - Please choose one
Most of the time lower level management of organizations have to deal with problems which are:
Question No: 16 ( Marks: 1 ) - Please choose one
Many decisions fail after the final choice because of the occurrence of which of the following?
► Decision criteria weights were incorrect
► People affected failed to accept the solution
► Satisficing occurred
► Choice was wrong
Question No: 17 ( Marks: 1 ) - Please choose one
When an organization encounters a serious problem which needs to be solved immediately, it is called:
► Crisis problem
► Non- Crisis problem
► Opportunity problem
► Financial Problem
Question No: 18 ( Marks: 1 ) - Please choose one
As managers move toward the organizational hierarchy, problems are more likely to become which of the following?
Question No: 19 ( Marks: 1 ) - Please choose one
Usman authorized an additional $100,000 for the production of the new product. The cost of the new product seems to be increased far beyond what was planned or even forecasted. However, Usman continues to support the project. He is engaged in which of the following?
► Availability heuristic
► Representative heuristic
► Escalation of commitment
► Optimal decision making
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following refers to the concentration of decision authority at the top levels of the organizational hierarchy?
Question No: 21 ( Marks: 1 ) - Please choose one
In which of the following conditions forecasting is considered to be the most accurate?
► Try to predict non-seasonal events
► Complex forecasting methods are used
► The environment is rapidly changing
► More people are involved in the process
Question No: 22 ( Marks: 1 ) - Please choose one
Which of the given element of an organization is supposed to perform to achieve the organizational goals?
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is the important point of Deming’s' philosophy?
► Collaboration among the members
► Achievement of Goals
► Well defined purpose
► Reduction of resource wastage
Question No: 24 ( Marks: 1 ) - Please choose one
It was estimated by the chief engineer that the bridge will be accomplished within 3 years, whereas, the construction of bridge was completed at the end of year 2. Therefore, the construction of bridge is labeled as:
► Effective plan
► Targeted accomplishment
► Efficient completion
► Controlled resources
Question No: 25 ( Marks: 1 ) - Please choose one
Increased importance of TQM gave emergence to the concept of employee empowerment that has made the ________ skill category mandatory for all managerial levels.
Question No: 26 ( Marks: 1 ) - Please choose one
‘Break-even Analysis’ is a means of earning profitable operations of the business through concrete calculations. Therefore, it falls under:
► Scientific management
► Behavioral management
► Management science
► Operation management
Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following management style is based on the universal perspective of management that describes one best approach to be adopted?
► All of the given options
► Classical management
► Behavioral management
► Quantitative management
Question No: 28 ( Marks: 1 ) - Please choose one
How suppliers can generally influence the organizational activities?
► Impose environmental constraints
► Compel tariffs on the final goods
► Enforce use of specific technology
► Slow down the production process
Question No: 29 ( Marks: 1 ) - Please choose one
Selection of students in the admission process of university is an illustration of:
► Structured decisions
► Ill-structured decisions
► Programmed decisions
► Non-programmed decisions
Question No: 30 ( Marks: 1 ) - Please choose one
In order to identify the most efficient path for execution of activities, managers use:
► Linear programming
► PERT chart
► GANTT chart
► Scenario analysis
Question No: 31 ( Marks: 1 ) - Please choose one
Which of the resource allocation technique gives more emphasis to allotment of time?
► Break even analysis
► Linear programming
Question No: 32 ( Marks: 1 ) - Please choose one
All of the following are the parts of organization’s external environment, EXCEPT:
► Organizational cultures
► Target customers
► Company competitors
► Performance regulators
Question No: 33 ( Marks: 1 ) - Please choose one
WTO appears to play an important role in monitoring and promoting:
► Provincial trade
► Global trade
► Regional trade
► National trade
Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following is the basic rule of brainstorming?
► Criticism is not allowed
► Ideas should be radical
► Improvement of ideas is encouraged
► Involvement of experts is mandatory
Question No: 35 ( Marks: 3 )
Explain the possible risks associated with Budgeting.
1. Interest Rates :-
The Council has no current long term debts but significant investments. Changes in interest rates can have a significant effect on interest income. However much of the interest income is credited to the HRA and there is usually an offsetting change to housing subsidy
2. Pension Fund :-
The Council contributes to the Essex County Local Government pension fund.
3. Changes in specific grant income :-
The Council receives large sums each year in specific grants, eg £25m for housing and council tax benefit. The risk is that changes in Government rules or an inadvertent failure to comply with grant conditions might result in a significant loss of income
4. Fraud :-
Major fraud might cause significant financial loss to the Council as well as weakening public confidence
5. Insolvency of Counterparties :-
The Council might suffer losses in the event of the insolvency of major partners or commercial suppliers. This is a particular risk in relation to investment transections.
6. Changes to Housing Subsidy :-
The Housing Revenue Account (HRA) makes a net payment of ‘subsidy’ to the Government. However changes in subsidy rules could increase this payment and worsen the financial position of the HRA (equally changes could benefit the HRA)
Question No: 36 ( Marks: 5 )
Identify the major elements of mega environment which effect an organization.
Elements of the Mega Environment
There are many external elements that can negatively affect a business, such as increased competition, rapidly changing technology and economic fluctuations. Within these elements, you will find, among other things, foreign competition, capital markets movements, legal contrasts and non-responsive political solutions. A change in an external uncontrollable element will be felt by all businesses in an industry, but the impact these changes have on a specific business depends on the strength and stability of the management team.
A major problem with predicting the movement of uncontrollable elements is their interaction with each other. External elements are closely interrelated, and consequently, anything affecting one element can have a secondary effect on another element. For example, a cultural/social change in our society can result in a legal/political change. These adjustments can affect our economic environment, which can lead to changes in technological developments. The development of technology, in turn, can affect the level of competition. These interactions prove circular when you realize the status of competition then affects our economy, culture and society. (See Exhibit 3.) Many managers do not realize that they can plan for changes in the external environment to safeguard their businesses. Foresight is essential in order to adapt to changes in the external environment. For example, consider a company that thrives on the sale of a single line of computer software. If this company does not begin developing new products or improve its existing product, it will quickly be shut out by the competition. Producing single or narrow-lined products with no concentration on new product development severely limits a business's ability to compete. This is true especially when external changes, such as technological discoveries, inspire competitors to improve existing products or to create newer, more effective ones.
Managers can safeguard their businesses by planning for external changes. Consider the tobacco companies as an example. They have known for many years about the external changes affecting their industry. They have been affected by cultural/social and legal/political changes for the last several decades.They developed new products, such as smokeless tobaccos, to offset their declining product sales
Question No: 37 ( Marks: 5 )
Why organizational management favors group-decision making over decisions by individuals?
Human performance in decision making terms has been the subject of active research from several perspectives. From a psychological perspective, it is necessary to examine individual decisions in the context of a set of needs, preferences an individual has and values they seek. From a cognitive perspective, the decision making process must be regarded as a continuous process integrated in the interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with the logic of decision making and rationality and the invariant choice it leads to.
Yet, at another level, it might be regarded as a problem solving activity which is terminated when a satisfactory solution is found. Therefore, decision making is a reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions or tacit assumptions.
Logical decision making is an important part of all science-based professions, where specialists apply their knowledge in a given area to making informed decisions. For example, medical decision making often involves making a diagnosis and selecting an appropriate treatment. Some research using naturalistic methods shows, however, that in situations with higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision making rather than structured approaches, following a recognition primed decision approach to fit a set of indicators into the expert's experience and immediately arrive at a satisfactory course of action without weighing alternatives. Recent robust decision efforts have formally integrated uncertainty into the decision making process.