mgt503 Principles of management MCQs (solved by MAHA)

Question.1: Which of the following is not allowed in a brainstorming session?

A: Clear definition of the problem

B: Criticism of poor ideas

C: Large number of alternatives

D: Recording of all alternatives

Question.2: Mr. A is the HR Manager of XYZ Company. He decided to terminate a group of employees because their positions were no longer necessary in the organization. What will you say Mr. A has decided for?

A: Restructuring

B: Turnover

C: Downsizing

D: Job Rotation

Question.3: A job has high -------------- if workers are given substantial freedom, independence, and discretion in scheduling the work and determining the procedures to be used in carrying it out.

A: Autonomy

B: Feed back

C: Skill Variety

D: Enlargement

Question.4: A ------------- Structure is well suited to organizations which have a single or dominant core product because each subunit becomes extremely adept at performing its particular portion of the process.

A: Divisional

B: Functional

C: Matrix

D: Both A and B

Question.5: Which of the following has not contributed to the boundaryless organization?

A: Changes in technology

B: Complex and dynamic environments

C: Static environments

D: Increases in telecommunication

Question.6: Managers will often not choose the decision alternative that rational decision making indicates to be best because they have a “vague feeling” that another alternative will be better. Which of the behavioral factors that influence decision-making does this behavior reflect?

A: Bounded rationality

B: Escalation of commitment

C: Intuition

D: Satisficing

Question.7: ------------ means that the two merging companies became history and a new firm is established

A: Acquisition

B: Merger

C: Joint Venture

D: Both A and B

Question.8: ------------- means only one company became history which is the acquired company while the acquiring company remain.

A: Joint Venture

B: Merger

C: Acquisition

D: Both A and B

Question.9: A ------------- takes as input an object or situation described by a set of properties, and outputs a yes/no decision.

A: Decision Criteria

B: Decision Making Process

C: Decision Tree

D: None of the given options

Question.10: Maslow's hierarchy of needs proposes that an individual begins by satisfying ----------- needs.

A: Self-actualization

B: Esteem

C: Physiological

D: Safety

Question.11: Which element of structure refers to the continuous line of authority that extends from the highest organizational levels to the lowest and clarifies who reports to whom?

A: Work specialization

B: Span of control

C: Centralization

D: Unity of command

Question.12: For a manager to control or direct the work of an employee, the manager must have _____.

A: Line authority

B: Responsibility

C: Referent power

D: Staff authority

Question.13: Organizations that have developed the capacity to continuously adapt and change because their members take an active role in identifying and resolving work-related issues are called _____ organizations.

A: Learning

B: Visionary

C: Community

D: Interdependent

Question.14: Master Sofa Makers recently bought an upholstery firm, Fabulous Fabrics, in an effort to control its inputs by becoming its own supplier. This is an example of -------------.

A: Concentration

B: Vertical integration

C: Horizontal integration

D: Diversification

Question.15: When an organization is in several different businesses, these single businesses that are independent and formulate their own strategies are often called _____.

A: Strategic business units

B: Monopolistic advantages

C: Quality controllers

D: Stars

Question.16: Organizations using Porter's _____ strategy select a market segment in an industry and attempt to exploit it rather than serve the broad market.

A: Cost leadership

B: Differentiation

C: Stuck in the middle

D: Focus

Question.17: ----------- involves increasing----------.

A: Job enrichment; job variety

B: Job enlargement; job depth

C: Job enlargement; job scope

D: Job enrichment; job feedback

Question.18: ---------- are an organization's objectives, and --------- are the documented ways that organizations intend to meet those objectives.

A: Goals; plans

B: Stated goals; real goals

C: Standing plans; single-use plans

D: Specific plans; directional plans

Question.19: Which of the following is NOT one of the characteristics of well-designed goals?

A: Goals should be written in terms of actions rather than outcomes.

B: Goals should be measurable and quantifiable.

C: Goals should be challenging but attainable.

D: Goals should be communicated to all organizational members who need to know about them.

Question.20: Work specialization, departmentalization, chain of command, and span of control are ----------- f an organization that managers may be able to change.

A: technologies

B: human resources

C: strategies

D: structural components

Question.21: __________ is the degree to which followers perceives someone as honest, competent, and able to inspire.

A: Credibility

B: Trust

C: Integrity

D: Consistency

Question.22: Women leaders tend to adopt a more ____________than men do.

A: Autocratic

B: Democratic

C: Directive

D: None of above mentioned

Question.23: __________leadership is described as going beyond charisma with the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves on the present.

A: Charismatic

B: Transformational

C: Visionary

D: None of above mentioned

Question.24: ___________studied three leadership styles: autocratic, democratic, and laissez-faire.

A: Ohio State Studies

B: University of Michigan Studies

C: University of Iowa Studies

D: Hawthorne studies

Question.25: When a divisional structure is superimposed over a functional structure, the type of structure that results is called a _________organization.

A: functional

B: divisional

C: matrix

D: product

Question.26: _________ would NOT be considered a source of position or legitimate power for a manager.

A: The ability to give special monetary rewards to deserving subordinates

B: Possession of a charismatic personality

C: The ability to recommend disciplinary action for subordinates

D: Being a high-ranking executive in the company

Question.27: The rights inherent in a managerial position to give orders and expect them to be obeyed is known as:

A: responsibility

B: span of control

C: wauthority

D: accountability

Question.28: Power can be viewed as a three-dimensional concept. It includes functional and hierarchical dimensions as well as a third dimension called:

A: influence.

B: legitimacy.

C: departmentalization.

D: centrality

Question.29: An organization that groups activities according to women's footwear, men's footwear, apparel, accessories, and leggings would use ___________ departmentalization.

A: functional

B: product

C: customer

D: geographic

Question.30: One of the following is characteristic of Democratic Leaders:

A: Unilateral decisions

B: nvolve group in decision making

C: Dictate work method

D: None of above

Question.31: The strategic management process is an/a _______________process.

A: Eight step

B: Eleven step

C: Twelve step

D: None of abov

Question.32: MBO was first described by ______________.

A: Abraham Maslow

B: Peter Drucker

C: Fredrick W. Taylor

D: Adam Smith

Question.33: Corporate-level strategy is developed by ____________and the board of directors.

A: Top level manager

B: Middle level manager

C: Lower level manager

D: Non-manager

Question.34: An ________________is the purchase of all or part of one organization by another.

A: merger

B: Concentration

C: Acquisition

D: Joint ventur

Question.35: A _____________is a mean whereby an organization that is unable to pay its debts can seek court protection from creditors and from certain contract obligations while it attempts to regain financial stability.

A: Bankruptcy

B: Divestiture

C: Harvest

D: Liquidation

Question.36: The planning process can be used to promote ________in organizations.

A: Technology

B: Relation

C: Innovation

D: None of above

Question.37: Tactical goals and plans typically involve time periods of ________years.

A: 1 to 3

B: 3 to 5

C: 5 to 7

D: 7 to 10

Question.38: A __________involves attempting to develop products and services that is viewed as unique in the industry.

A: Differentiation strategy

B: Focus strategy

C: Cost leadership strategy

D: Portfolio strategy

Question.39: ___________is the obligation or expectation to perform and carry out duties and achieve goals related to a position.

A: Accountability

B: Authority

C: Responsibility

D: Liability

Question.40: ___________is a form of departmentalization that adopts parts of both functional and divisional structures at the same level of management.

A: Hybrid structure

B: Divisional structure

C: Functional structure

D: Matrix structure

Question.41: Corporate-level strategy is developed by_____________________.

A: Top-level management

B: Middle-level management

C: Board of directors

D: Both a & c

Question.42: Which of the following is/are an element(s) of organizational structure?

A: Job design

B: Departmentalization

C: Vertical coordination

D: All of the above

Question.43: Small businesses have fewer than _________ employees.

A: 50

B: 100

C: 150

D: 200

Question.44: Employees who work in a ____________, report to two “bosses,”

A: Functional structure

B: Divisional structure

C: Matrix organization

D: Hybrid structure

Question.45: _____________entails selling or dissolving an entire organization.

A: Liquidation

B: Bankruptcy

C: Harvest

D: Divestiture

Question.46: The process structure is sometimes called the _________________.

A: Vertical organization

B: Horizontal organization

C: Networked structure

D: Virtual corporation

Question.47: ___________ is the second function of management.

A: Organizing

B: Planning

C: Leading

D: Controlling

Question.48: Which of the following is not a part of entrepreneurial process?

A: Exploring the entrepreneurial context

B: Starting the venture

C: Managing the venture

D: None of the above

Question.49: Horizontal coordination is the linking of activities across departments at____________ levels.

A: Similar

B: Upper

C: Lower

D: Different

Question.50: _____________are divisions, set up to service particular types of clients or customers.

A: Customer divisions

B: Geographic divisions

C: Product divisions

D: None of the above

Question.51: McClelland presented ______________ theory

A: Acquired - needs theory

B: Motivation hygiene theory

C: ERG theory

D: None of the above

Question.52: The practice of periodical shifting workers through a set of jobs in a planned sequence is called _________

A: Job rotation

B: Job enlargement

C: Job enrichment

D: Job depth

Question.53: Five levels of need are not always present, it is a____________ point of the Maslow's theory.

A: Weak

B: Strong

C: Good

D: None of above

Question.54: An internal state that makes certain outcomes appear attractive is called __________

A: Motivation

B: Need

C: Satisfaction

D: None of the above

Question.55: Frederick Hertzberg's theory states that there are only____________ categories of needs.

A: One

B: Two

C: Three

D: Four

Question.56: According to Maslow's theory, Order of needs and hierarchy may not be the_______________ for all employees.

A: Same

B: Equal

C: Effective

D: Impressive

Question.57: ______________is the extent to which the worker sees the job output as having an important impact on others.

A: Skill variety

B: Task significance

C: Autonomy

D: Task identity

Question.58: ____________ is a measure of intensity or drive.

A: Quality

B: Efficiency

C: Loyalty

D: Effort

Question.59: In ERG theory Maslow's social need is called___________

A: Existence needs

B: Growth needs

C: Related needs

D: None of the above

Question.60: Which of the following is not the purpose of job rotation?

A: Combat boredom

B: Cross training

C: Employee satisfaction

D: Employee development

Question.61: An organization's ------------ is the organization's purpose or fundamental reason for existence.

A: Goal

B: Plan

C: Mission

D: Vision

Question.62: In the brutal world of athlete endorsements, the two big sporting-apparel companies -- Reebok and Adidas frequently go head to head. Adidas acquired Reebok in 2006 and combined with each other as one organization, the process is called:

A: Acquisition

B: Divesture

C: Merger

D: Joint venture

Question.63: ABC Company is unable to pay its debts and seek court protection from creditors and from contract obligations while it attempts to regain its financial ability. The status of the organization is:

A: Divesture

B: Harvest

C: Turnaround

D: Bankruptcy

Question.64: A firm pursuing --------------- attempts to gain a competitive advantage primarily by reducing its economic costs below its competitors.

A: Differential strategy

B: Focus Strategy

C: Stability Strategy

D: Cost Leadership Strategy

Question.65: Mr. Umar undertook a new business of providing internet fiber cables to corporations and homes by investing Rs. 1000000 and assumes some accountability for the inherent risks. We can say that Mr Umar is an

A: Entrepreneur

B: Intrapreneur

C: Innovator

D: Risk taker

Question.66: ---------------is the downward transfer of formal authority from superior to subordinate. The employee is empowered to act for the supervisor, while the supervisor remains accountable for the outcome.

A: Accountability

B: Delegation

C: Authority

D: None of the given options

Question.67: ---------------is an environmental condition that offers significant prospects for improving an organization's situation relative to competitors.

A: Threat

B: Weakness

C: Strength

D: Opportunity

Question.68: All the organizations make --------------- that are also called large scale action plans for interacting with the environment in order to achieve long-term goals.

A: Policies

B: Plans

C: Strategies

D: Rules

Question.69: Mr. Amir is the Chief Executive officer of ABC Company. All of his subordinates coordinate with him in order to achieve organizational goals. The type of coordination they have with one an other is called:

A: Vertical Coordination

B: Horizontal Coordination

C: Flat coordination

D: All of the given options

Question.70: In ABC Company, middle level managers are also given the authority to give their opinion in decision making process. It is called as:

A: Centralization

B: Decentralization

C: Span of control

D: Downsizing

Question.71: _____ teams rely on the use of information technology and a strong commitment to the group instead of frequent personal exchange and face-to-face meetings.

A: Virtual

B: Cross-functional

C: Transnational

D: Self-managed

Question.72: High-performing teams have members who possess both technical and _____ skills.

A: Managerial

B: Technological

C: Interpersonal

D: Nonconformity skills

Question.73: A group that engages in collective work that requires joint effort and generates a positive synergy is a ______.

A: Work group

B: Work team

C: Quality circle

D: Functional team

Question.74: What should a manager do while motivating employees?

► Increase wages and salaries

► Incorporate promotional opportunities

► Recognize individual differences

► Use employee-recognition program

Question.75: According to Herzberg's Motivation-Hygiene Theory, which of the following is NOT a hygiene factor?

► Working Conditions

► Salary

► Relationship with supervisor

► Work itself

Question.76: Entrepreneurs can act as:

► Idea sponsor

► Idea champion

► Idea generator

► All of the following options

Question.77: MR. Sohail, CEO of Leads Groups has to increase the salaries of marketing staff because of high turnover, demand of more salary and lack of motivation in the marketing department. Which of the following force created the need for change in the salary of marketing department?

► Change in strategy

► Technology

► Economic changes

► Change in employee behavior

Question.78: An individual's belief that he or she is capable of performing a task is called:

► Self esteem

► Self direction
► Self efficacy
► Self confidence

Question.79: All of the following are requirements for successful value chain management EXCEPT :
► Coordination and Collaboration
► Continuous Process Improvement
► Organizational Processes
► Technology Investment

Question.80: Munsterberg is considered to be the father of ______ psychology.
► Clinical
► Industrial

► Behavior
► Theoretical

Question.81: As the number of employees in an organization grows, structure tends to become more:
► Informal
► Centralized
► Decentralized
► Specialized

Question.82: The study of society is called:

► Anthropology
► Behavioral sciences
► Sociology
► Psychology

Question.83: Which of the following are the hygiene factors?
► Fringe benefits, recognition and motivation
► Achievement, responsibility and growth
► Friendship groups, working conditions and responsibilities
► Company policies, working conditions and salary

Question.84: Which one of the following functions or activities involves in recruiting and placing qualified personnel needed for the organization so that it may achieve its objectives and goals?
► Planning
► Organizing
► Staffing
► Leading

Question.85: MA. Sohail, CEO of Leads Groups has to increase the salaries of marketing staff because of high turnover, demand of more salary and lack of motivation in the marketing department. Which of the following force created the need for change in the salary of marketing department?

► Change in strategy
► Technology
► Economic changes
► Change in employee behavior

Question.86: A field of expertise that is responsible for the production and delivery of an organization's products and services is called:

► Management information system

► Operations management

► Marketing management

► Principles of management

Question.87: “Discretion or decision making power can be given to a person, unit or an organization” refers to which of the following?
► Autonomy
► Supervision
► Responsibility
► Feedback

Question.88: All of the following are the situational theories EXCEPT:
► Michigan Studies
► Hersey and Blanchard Leadership approach
► Path Goal Model
► Fiedler's Model

Question.89: All of the following are the dimensions that make the concept of trust. EXCEPT:
► Competence
► Consistency
► Communication
► Integrity

Question.90: The process in which one party perceives that its interests are being opposed or adversely affected by some other parties is called:
► Crises
► Conflict
► Agreement
► Stress

Question.91: Plans that apply to the entire organization, establish the organization's overall objectives and seek to position the organization in terms of its environment are called:

► Tactical plans

► Strategic plans

► Single-use plans

► Operational plans

Question.92: A strategy in which an organization operates in several business that are some how linked with one another is called:

► Single product strategy

► Related diversification

► Unrelated diversification

► Conglomerate diversification

Question.93: Which of the following is a special group presenting unique motivational challenges?

► Top management

► Professionals

► Stakeholders

► Competitors

Question.94: Groups that are determined by the organization chart and composed of individuals who report directly to a given manager are called:

► Formal groups

► Informal groups

► Task groups

► Command groups

Question.95: Which of the following refers to the fact that individuals see and hear depending upon their needs, motivation, experience, background and other personal characteristics?

► Filtering

► Feedback

► Emotions

► Selective Perception

Question.96: ABC Corp. has turned each of its divisions into profit centers and evaluates each division by the percentage of total corporate profits that it generates. It uses which of the following control?

► Accounting

► Bureaucratic

► Market

► Sector

Question.97: A significant edge over the competition in dealing with competitive forces is called:

► Core Competencies

► Competitive advantage

► Competitive force

► Swot analysis

Question.98: Which of the following leaders can inspire followers above their own self-interests and can have a profound effect on their performance?

► Transactional leader

► Transformational leader

► Emotional leader

► Informational leader

Question.99: Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation is called:
► Contingency theory
► Behavioral theory
► Administrative theory
► Social theory

Question.100: If you get more output from a given input, you have:
► Decreased effectiveness
► Increased effectiveness
► Decreased efficiency
► Increased efficiency

Question.101:A structure that is characterized by narrow span of management and many hierarchical levels is:

► Tall Structure
► Flat Structure
► Matrix Structure
► Divisional Structure

Question.102:Which of the following is a weakness of a simple structure?
► It relies on one person
► It is not flexible
► It is expensive
► There is unclear