MANAGEMENT questions and improvement

1.When we talk of the features of management, we say 'Management is a

science as well as an art.' Why is management considered as an art?
a)
Management is an art because by the application of management principles,
predetermined objectives can be achieved.
b)
Management is an art because management is concerned with directing and
controlling of the various activities of the organisation
c)
Management is an art because managing requires certain skills which are
personal possessions of managers.
d)
Management is an art because the principles of management are dynamic and
not static. It has to adopt itself according to social changes.
e)
Management is an art because it is applicable to all professions.
Correct Choice : c
Solution : Management is considered as a science because it has an organized body of
knowledge which contains certain universal truth. It is called an art because managing
requires certain skills which are personal possessions of managers. Science provides
the knowledge & art deals with the application of knowledge and skills.
Management may be defined in many different ways. Many eminent authors
on the subject have defined the term "management". Match the following
authors with their definitions of management:
Author
Definition
1. Lawrence A Appley
a) Management is a multi-purpose organ that manages a
business and manages managers and manages worker and work
2. Mary Cushing Niles
b) Management is the development of people and not the
direction of things
3. Peter F Drucker
c) Management is the force which leads, guides and directs an
organisation in the accomplishment of a pre-determined object
4. J.N. Schulze
d) Management is defined as the creation and maintenance of an
internal environment in an enterprise where individuals working together in groups
can perform efficiently and effectively towards the attainment of group goals
5. Koontz and O'Donnell
e) Good management or scientific management
achieves a social objective with the best use of human and material energy and time
and with satisfaction for the participants and the public
a)
1b, 2a, 3c, 4d, 5e
b)
1c, 2d, 3a, 4e, 5b
c)
1d, 2a, 3e, 4c, 5b
d)
1b, 2e, 3a, 4c, 5d
e)
1a, 2b, 3c, 4d, 5e
Correct Choice : d

Solution : Some of the definitions of management by

eminent authors:

Lawrence A Appley: "Management is the development of people and not the

direction of things".

Joseph Massie: "Management is defined as the process by which a co-operative

group directs action towards common goals".

George R Terry: "Management is a distinct process consisting of planning,

organising, actuating and controlling performed to determine and accomplish
the objectives by the use of people and resources".

Henry Fayol: "To manage is to forecast and to plan, to organise, to command, to

co-ordinate and to control".

Peter F Drucker: "Management is a multi-purpose organ that manages a

business and manages managers and manages worker and work".

J.N. Schulze: "Management is the force which leads, guides and directs an
organisation in the accomplishment of a pre-determined object".

Koontz and O'Donnell: "Management is defined as the creation and maintenance

of an internal environment in an enterprise where individuals working together
in groups can perform efficiently and effectively towards the attainment of
group goals".

Ordway Tead: "Management is the process and agency which directs and guides
the operations of an organisation in realising of established aims".

Stanley Vance: "Management is simply the process of decision-making and

control over the actions of human beings for the express purpose of attaining
pre-determined goals".

Wheeler: "Business management is a human activity which directs and controls

the organisation and operation of a business enterprise. Management is centred
in the administrators of managers of the firm who integrate men, material and
money into an effective operating limit".

William Spriegel: "Management is that function of an enterprise which concerns

itself with the direction and control of the various activities to attain the
business objectives".

S. George: "Management consists of getting things done through others.

Manager is one who accomplishes the objectives by directing the efforts of
others".

Keith and Gubellini: "Management is the force that integrates men and physical
plant into an effective operating unit".

E. Peterson and E.G Plowman: Management is "a technique by means of which

the purpose and objectives of a particular human group are determined,
classified and effectuated".

Mary Cushing Niles: "Good management or scientific management achieves a

social objective with the best use of human and material energy and time and
with satisfaction for the participants and the public".

1.What is the difference between Recruitment and Selection?

a)
Recruitment deals with a wide pool of candidates while Selection deals with only
applicants

b)
Selection deals with a wide pool of candidates while Recruitment deals with only
applicants
c)
Both can be used interchangeably
d)
Recruitment means acquiring talent while Selection means sourcing talent
e)
Recruitment is more of Art while selection is more of Science
Recruitment means sourcing talent from all available sources while Selection means
acquiring talent from applicants.
2.A good leader plays a key role in defining organizational culture which in
turn highly depends on values of diverse workforce. Managing diversity
becomes a key challenge for any organization. Which one amongst below
options is not important for diversity management?
a)
Acknowledging and recognizing people's differences
b)
Preventing discrimination by being inclusive
c)
Providing a platform which takes care of individual needs of employees
d)
Applying one size fits all principle while recruiting employees
e)
Self-awareness in understanding own culture
Solution : d
3. Managing diversity in recruitment requires a customized approach based on the
needs and behavior of the person to be hired. One size fits all approach doesn't apply
here.
Which of the following situation is not apt for Oral communication?
a)
Illiterate audience
b)
Large gathering
c)
Immediate Feedback
d)
Motivating audience
e)
All are apt
Correct Choice : e
Solution :All the situations given are actually apt for Oral communication and written
communication obviously becomes problematic with illiterate audience. Even
feedback requires time if carried out via written method. Audience can be motivated
in a better way through speeches than written communication.

4.Which of the following situation is not apt for Oral

communication?
a)
Illiterate audience
b)
Large gathering
c)
Immediate Feedback
d)
Motivating audience
e)
All are apt
Correct Choice : e
Solution : All the situations given are actually apt for Oral communication and written
communication obviously becomes problematic with illiterate audience. Even
feedback requires time if carried out via written method. Audience can be motivated
in a better way through speeches than written communication.
5.Barriers to communication are the reasons why communications often fail.
Semantic communication barriers consist of all of the following except:a)
Words with multiple meanings
b)
Faulty translation
c)
Inapt methods used for interpreting meaning of words
d)
Premature evaluation
e)
Technical Jargon

Correct Choice : d
Solution : Semantic is related to the language. Premature evaluation is more related to
human psycology and falls under psychological or emotional barrier.

Human Capital Planning and Management has an impact on:

1. Customer Satisfaction
2. Employee commitment
3. Productivity
a)
1&2
b)
1, 2 & 3
c)
Only 2
d)
1&3
e)
2&3
Correct Choice : b
Solution : Human capital management (HCM) is an approach to employee staffing that
perceives people as assets (human capital) whose current value can be measured and
whose future value can be enhanced through investment. Human Capital Planning
improves the utility of human Resources thus ensuring better customer service hence
business productivity and outcomes.

Human Resource

is shifting its focus from Transactional HR to Business HR.

Amongst the options mentioned below, which all demonstrates this transformation of
conventional HR to 'Business HR'?
1. Technological Disruptions in HR
2. Improved qualification of HR professionals
3. HR Metrics - Quantified HR
a)
1&2
b)
2&3
c)
1&3
d)
Only 1
e)
1, 2 & 3
Correct Choice : c
Solution : The shift in HR is characterized by focus on measuring value addition of HR
domain which in turn is highly affected by investment of HR in Technology and
utilization of the same.
Business HR has also given rise to HR metrics, which are a vital way to quantify the
cost and the impact of employee programs and HR processes and measure the
success (or failure) of HR initiatives. They enable a company to track year-to yeartrends and changes in these critical variables.

6. Matrix Organization Structure

is a blend of two or more

organization structures where people have more than one boss. Which of the following
is not an advantage of Matrix Org Structure?
a)
Reduces the complexity of decision-making and working of processes
b)
Efficient information exchange between various departments
c)
Improved employee motivation through shared belief and team work
d)
Diverse employee experience leading to enhanced functional knowledge of
different domains
e)
Enhances knowledge and skill base of employees
Correct Choice : a
Solution : Matrix management is the practice of managing individuals with more than
one reporting line (in a matrix organization structure), but it is also commonly used to

describe managing cross functional, cross business group and other forms of working
that cross the traditional vertical business units.
In matrix organization structure the complexity increases because of dual authority.
Inefficiency and miscommunication leads to slower processes and prolonged decisionmaking.

7.Which of these is not an essential part of a manager's

duties?
a)
Directing how the planned tasks should be achieved and controlling the
deviations in the process
b)
Staffing the tasks appropriately to bring in efficiency
c)
Organizing the planned activities in order to give structure to the process
d)
Delegating the appropriate tasks to people with relevant skill sets for enhancing
the performance and getting best result for the assigned task
e)
Controlling the entire gamut of organization's activities and ensuring better
coordination among resources
Correct Choice : e
Solution : A manager works towards specific goals and is more concerned about the
achievement of set goals in best possible manner rather than focusing on entire
gamut of activities

8.Hygiene factors are those whose presence don't motivate but

whose absence demotivates a person. Which of the below
mentioned options, well describe hygiene factors of a workplace?
a)
Good working conditions, good salary, regular team outings
b)
Good Salary, Medical & Health Insurance, Good Infrastructure and Cafeteria
c)
Company Policies, International Exposure, Interpersonal Relationships
d)
Job Security, Good Working Conditions, Company Policies
e)
International Exposure, Medical Insurance, Company Policies
Correct Choice : d
Solution :

Herzberg's motivation-hygiene theory or Two-Factor

Theory is based on two factors:
Hygiene factors which include status, job security, salary, fringe benefits, work
conditions, good pay, paid insurance, vacations, etc.
Motivation factors which include challenging work, recognition for one's
achievement, responsibility, opportunity to do something meaningful, involvement in
decision making, sense of importance to an organization.
The two factor theory is based on two parameters, hygiene and motivation. Both can
be high or low, so this results in four possible combinations.
1. High Hygiene + High Motivation: The ideal situation where employees are highly
motivated and have few complaints.
2. High Hygiene + Low Motivation: Employees have few complaints but are not highly
motivated. The job is viewed as a paycheck.
3. Low Hygiene + High Motivation: Employees are motivated but have a lot of
complaints. A situation where the job is exciting and challenging but salaries and work
conditions are not up to par.

4. Low Hygiene + Low Motivation: This is the worst situation where employees are not
motivated and have many complaints.

9.Which of the following statements is not true about

Business Process Management?
a)
BPM is the way of controlling processes in the organization
b)
BPM covers how we study, identify, monitor and change business processes
c)
BPM is a study of changing existing processes and streamlining them for better
results
d)
BPM relates to formalizing and institutionalizing better ways of doing work
e)
BPM is a technology which enables identifying and modifying existing processes
for improving them
Correct Choice : e
Solution :BPM is not a technology, rather it is a business practice aimed at improving
business processes.

10. Potential appraisal is done in organizations subscribed to

HRD. Which of the following is not true about potential appraisal?
a)
Employees are assessed periodically
b)
The organization is assumed to be growing continuously
c)
Conducting employee interviews to assess his interests and skill areas
d)
A position is searched to which the employee can be moved or promoted
e)
The best way is to let employee try all the possible jobs and reach the
conclusion
Correct Choice : e
Solution : The ideal way is to let employees try all the possible jobs, definitely not the
best way as it is not at all practical. Often simulation activities are carried out to
provide some information. Rest options are true about Potential appraisal, the
company has to grow in order to provide room for potential development of
employees and this has to be done time to time in different phases. It is obvious by
the name itself that potential appraisal is a future-oriented appraisal.

COMMUNICATION
High context and Low context culture

refers to how people

communicate. High context cultures focus on unspoken communication and long-term
relationships where people value personal connections and feelings more. On the
other hand, in Low context culture information exchange happens majorly through
messages and people generally tend to have short-term relationships.
0. Which of these is not true about Culture?
a)
We can determine and measure the value of culture and can also use it as
a measuring instrument for other articles and artifacts.
b)
Culture cannot be easily passed to another generation. It cannot be
learned by the other generation without some required intelligence.
c)
Culture is made of integrated learned behavior patterns and is not
biologically inherited.
d)
Culture highly affects working conditions of the place hence employee
morale and motivation too.
e)
Culture is accumulation of artificial objects, tools, techniques.
Correct Choice : a
Solution :

Culture has no value in itself, rather it is used as a measuring rod for other articles
(not for itself). Only a part of first statement is true. Rest all statements are true about
culture
1.What is not true with regards to High context cultures?
a)
Groups are preferred for working and learning
b)
More popular in eastern countries than western countries
c)
Focus less on rules and structures
d)
Flat organizational structures and decentralized control
e)
All of the above are true
Correct Choice : d
Solution : High context culture follows hierarchical and centralized structure because it
follows traditional line of command (generally prevalent in eastern countries). Groups
are preferred for working and learning and there's less focus on rules and structures. It
is more popular in eastern countries than western countries.
2. When you are doing business with low-context cultures, like Germany and
US, you should keep in mind
A. Clear messaging
B. Tight Schedules
C. Using intuition in making decisions
D. Using limited sources to gain knowledge
a)
A, B
b)
A, B, D
c)
B, C, D
d)
C, D
e)
A, C, D
Correct Choice : b
Solution : In low context culture, there is lesser emphasis on intuition and feelings and
more on logic-based decision making. Rest all is true for low-context culture.
Identify the true statement
a)
Bureaucratic procedures for hiring and promotion in low context culture
b)
Employee loyalty is more in high-context cultures
c)
Stable organizations and lower employee turnover in low context culture
d)
Recent performances are basis of pay in high context culture
e)
Lower investment in training and development in high context culture
Correct Choice : b
Solution : Low context is performance driven and gender-neutral culture. Hence,
power and position is determined majorly by performance. In low-context culture,
flexibility is more and the culture is very dynamic, thereby falsifying options a and c.
In high-context cultures, Overall performance, stability, employee loyalty and focus on
employee's personal development is more.
Shannon and Weaver model was around telephones. It involved a sender,
channel and receiver. They identified three levels of problems with
communication. Which of the following is not among the three?
a)
b)
c)
d)
e)

Accuracy of the message being transmitted

The precision of the message being conveyed (semantic).
The inequality in the power relations
The effectiveness of the received meaning on the behavior
They introduced four levels of problem and all of the above are among the four

Correct Choice : c
Solution : The Shannon - Weaver model of communication refers to an integrated
model of the concepts of information source, message, transmitter, signal, channel,
noise, receiver, information destination, probability of error, encoding, decoding,
information rate, channel capacity, etc.
The Shannon and Weaver model was one of the first models of communication. The
accuracy and precision were essential for the model. It never factored in unequal
power relations.

Cross-cultural communication
Hofstede developed a framework for cross-cultural communication and how
culture effects the workplace. His study focuses on 6 major dimensions.
Individualism versus collectivism, Power Distance, Masculinity versus
femininity, Long-term versus short-term orientation and Uncertainty
avoidance and indulgence versus restraint. This theory gives an understanding
of different cultures and how to behave with people of different cultures.
Individualism relates to interpersonal connections among people and how much they
share the responsibility and credits with others. High individualistic countries focus on
individual credentials and performance and not on group performance.
Power distance relates to hierarchy in equality in society. Low power distance
cultures focus on formalized structures for employee selection so that everyone gets a
fair chance
Long-term orientation relates to pragmatism and sustenance. It focuses on future,
stability and strong company culture, frequent pay adjustments cannot be expected in
such a culture.

11.Going by the concept

performance gap?

of Performance Management,

what is

a)
Gap between mean performance and actual performance
b)
Gap between ideal output level and mean output level
c)
Gap between actual performance and desired performance
d)
Gap between top performance and mean performance
e)
Gap between the boss and his subordinates
Correct Choice : c
Solution : Performance management is a process by which managers and employees
work together to plan, monitor and review an employee's work objectives and overall
contribution to the organization. A performance gap is the measurement of the
difference between the present status in a business operation and its ultimate goal of
performance. With the eventual goal of eliminating the gap, analyzers often compare
productive employees with unproductive ones and the business as a whole with other
similar businesses. The goal of the Organizational Development is to reduce the gap
between the actuals and the desired.
2. The management process involves setting of goals, planning and controlling and
leading the execution of processes/projects. The following are the steps in
Management Process in correct order.
a)
Planning, Staffing and Organizing
b)
Planning, Organizing and Staffing
c)
Organizing, Staffing and Planning
d)
Organizing, Planning and Staffing
e)
Staffing, Planning and Organizing
Correct Choice : b
Solution : Different experts have classified functions of management. According to
George & Jerry, "There are four fundamental functions of management i.e. planning,
organizing, actuating and controlling".
According to Henry Fayol, "To manage is to forecast and plan, to organize, to
command, & to control". Whereas Luther Gullick has given a keyword 'POSDCORB'
where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Coordination, R for reporting & B for Budgeting. But the most widely accepted are
functions of management given by KOONTZ and O'DONNEL i.e. Planning, Organizing,
Staffing, Directing and Controlling.
12. Planning, is to set the goals, evaluate the alternatives and selecting the best,
followed by Organizing, which define the functions, hierarchy, relationships. Staffing,
is then for development of the Human Resources
Which of the following is true about HRD (Human Resource Development)?
a)
Human Resources are treated as expenses to the company
b)
HRD is to be a carried out when the company starts making profit
c)
The objective of HRD is to cultivate an organization where shareholders come
first
d)
HRD involves management development, quality circles and other techniques.
e)
It is impossible to justify the benefits of HRD from monetary point of view.
Correct Choice : d
Solution : Human Resources are treated as the assets to the company under HRD
concept, HRD is a continuous process and in HRD people (employees) come first.
Therefore only (iv) is true. Last option is not true, though it is difficult, but not

impossible to justify as we have techniques to analyze savings due to reduction in

attrition or savings in employee cost due to more employee satisfaction.
13. The following is not a characteristic of Control in the perspective of
Management Process
a)
Control is a continuous process
b)
Control is backward-looking
c)
Control is an end process
d)
Control is at each level of hierarchy
e)
Control involves three steps: - setting standards, measuring actual performance,
and taking corrective Choice :
b
Solution : Control helps in taking corrective actions so the deviations from any
standards decided are minimal. Hence Control is actually forward looking and not
backward-looking.

ROLES OF MANAGER

Mintzberg, a management researcher, said there are three types of roles

which can be taken up by managers. Among the following which role(s) was/were
not mentioned by Mintzberg?
1. Interpersonal Role
2. Decision role
3. Informational role
4. Audit role
a)
1 and 3
b)
2
c)
2 and 4
d)
4
e)
Mintzberg had mentioned 4 roles and the above are all of them
Correct Choice : d
Solution : While a leader may involve himself in audit, it is not as important as the
other three roles mentioned - Interpersonal role (dealing with others), Informational
role (collecting, disseminating and transmitting information), decision role (initiate
changes in the organization). These are three roles which were proposed by Mintzberg

Which of the following is true about cognitive counselling theory?

a)
It focusses on behavior which can be learnt
b)
It focusses on how people's behavior and feelings can change their thinking
c)
It focusses on how people's thinking can change their behavior and feelings
d)
It focusses on humanity aspects and goodness of people
e)
It focusses on how people react to different situations
Correct Choice : c
Solution : Cognitive therapy is based on the principle that thoughts and perceptions
can impact our feelings and behaviour, and looks at ways to reassess negative
thoughts so individuals can learn more flexible, positive ways of thinking that will
subsequently influence behaviors. The word cognitive should indicate it has to do with
thinking. The thinking comes first and then the people reactions.

PERFORMANCE APPRAISAL

1. There are three main methods of collecting the data for Performance
Appraisal
i) Objective production
ii) Personnel method
iii) Judgmental evaluation.

Match the above with the following.

a) Suitable for data-entry workers
b) Suitable for blue-collar jobs in manufacturing
c) The rating system in this kind of system is prone to leniency and central tendency
errors
d) This system is heavily prone to criterion deficiency and criterion contamination
a)
i)- a, d, ii)- b, iii)- c
b)
i)- d, ii) - b, c iii)- a
c)
i)- a, b ii)- c ii)- d
d)
i)- a, d ii)-c iii)-b
e)
i)- a, b, c ii) - d, e
Correct Choice : a
Solution :
The objective method is based on collecting direct measures of performance which
are often limited. They are therefore prone to proper definition of criteria. They may
however be suitable for Data Entry workers whose performance can be much easily
measured directly. Personnel method includes recording of withdrawing tendencies
(like leaves, accidents). For blue-collar workers in manufacturing it can be used.
Judgmental evaluation involves rating system which can be prone to bias and forced
central tendency errors.
2. Best method for performance evaluation of senior levels is:
a)
Self Appraisals
b)
Critical Incident
c)
360 degree feedback
d)
Assessment Centre
e)
3 and 4
Correct Choice : d
Solution : Self appraisals is the self evaluation process involved in determining the
level of self-efficacy.
The Critical Incident Technique is a set of procedures used for collecting direct
observations of human behavior that have critical significance.
360 Degree Feedback is a system or process in which employees receive
confidential, anonymous feedback from the people who work around them. This
typically includes the employee's manager, peers, and direct reports.
An assessment centre is a process where candidates are assessed to determine
their suitability for specific types of employment. Assessment centers are rigorous and
combines two or more objective selection methods to measure job suitability. It is
used for performance evaluation of senior levels.

Performance Management

is a system that helps in attainment of

corporate and individual goals. It enables tracking and monitoring performance of
individuals as well as organization. Performance Management is more than yearly
appraisal process; it is a process which define objectives of employee, assess their
progress and provides feedback to ensure they are moving rightly towards the defined
objectives.
Which of the following is not true about Performance Appraisal Process?
a)
It is an ongoing process
b)
Managers and Employees both work together in this
c)
It is job specific and covers all jobs in the organizations
d)
It needs well defined jobs and job descriptions
e)
All the statements are true

Correct Choice : e
Solution : All the above mentioned statements are true for performance management
process. The process is continuous, needs employees and managers to work together
for setting goals and discussion, covers all jobs while being specific to one at a time
and needs well-define job descriptions so that the performances can be assessed
effectively
When you are introducing a new Performance Management System in your
organization, you:
a. Need to communicate the purpose of PMS to employees before its implementation
b. Need to communicate the steps in PMS to employees before its implementation
c. Review your PMS periodically and make adjustments
a)
A&B
b)
B&C
c)
A&C
d)
Only C
e)
A, B and C
Correct Choice : e
Solution : For implementing a new PMS employee support and awareness is important.
Also, you need to assess the effectiveness of system time to time
Match the following (Steps in Performance Management Cycle)
a. Plan
b. Monitor
c. Review and Evaluate
i. Identifying and agreeing upon expectations, agreeing on monitoring and
measurement of results
ii. Documenting challenges encountered and identifying unknown barriers
iii. Taking corrective actions, continuous coaching and feedback
a)
A-i, B-ii, C-iii
b)
A-i, B-iii, C-ii
c)
A-ii, B-iii, C-i
d)
A-ii, B-i, C-ii
e)
None of these
Correct Choice : b
Solution : Planning reviews the job description, relates it to organization goals and
how the performance will be measured against it. Monitoring relates to assessing
performance and providing continuous feedback. Review and Evaluation relates to
summarize and highlight the employee's performances, challenges faced.

Career Planning

is an essential practice of any good HRM. Without Career

Planning, attrition risks will be on the higher side. Which of the following is/are true
about Career Planning?
i) Assisting employees in finding the best match between their goals and opportunities
inside a firm.
ii) It happens during Appraisal
iii) It starts with creation of opportunities and then understanding the needs and
aspirations of the employees.
a)
i), ii) and iii)
b)
i) & ii)
c)
i)
d)
iii)
e)
i), iii)

Correct Choice : c
Solution : Career planning is the process by which a person (with/without the help of
his organization) selects the career path for himself. Organizations now a days take
Career Planning seriously and try to assist their employees in the same so as to keep
the directions aligned. It is continuous process and not necessary during appraisal. It
starts with identification of needs and aspirations of the employees and then later the
opportunities part come. Hence only (i) is true.

LEADERSHIP
0. Which of the below mentioned options best define a leader?
a)
A leader has a group of people working for him and he is able to effectively
delegate the work to his subordinates
b)
A leader has a charisma and he is followed by the people who work with him
c)
A good leader's job is to plan, organize and control of activities for completion of
the required tasks
d)
A good leader is happy with the status quo, proper structure and systems in
place
e)
A Leader and Manager performs almost same functions with only minute
differences between the two
Correct Choice : b
Solution : A leader is inspiring and motivating who takes people along with himself,
rather than controlling them. He is followed by the people who work with him
1. Which of the following is not a type of leadership given by Max Weber?
a)
Charismatic
b)
Participative
c)
Traditional
d)
Legal-rational
e)
Both 1 and 2
Solution : b
Max Weber distinguished three ideal types of legitimate political leadership,
domination and authority.
1. Charismatic authority: It grows out of the personal charm or the strength of an
individual personality.
2. Traditional authority: In this, the legitimacy of the authority comes from tradition or
custom.
3. Legal authority: In this, an individual or institution exerts power by virtue of the
legal office that they hold.

2.Trait theory of leadership

is used for predicting success of leadership

effectiveness. It is based on premise that successful leaders have different traits from
others, which make them more effective. These traits are first identified and then
compared to those of potential leaders to assess their probability of success. Although
these core traits are not the only differentiating factors but they do set the
preconditions for endowing people with leadership potential.
Which of these is not considered as a core trait amongst those which are
identified in this theory?
a)
Achievement Drive
b)
Emotional Maturing
c)
Business knowledge
d)
Confidence in subordinates
e)
Cognitive Abilities
Correct Choice : d

Solution : Self-confidence is a core trait for traits theory of leadership. Although,

confidence in subordinates is an important trait too but it reflects more of behavior
and is not categorized as a core trait.
Which of the following statements is false with respect to Traits theory?
a)
It can be applied by people at all levels in organization
b)
Leaders can use this theory for self-evaluation of their position and how it can
be made stronger
c)
They cannot use it for judging the impact on others of their traits
d)
There is a disagreement over which traits are more important for being a
successful leader
e)
Honesty and integrity is also a core trait for this theory
Correct Choice : c
Solution :
Traits theory can be used for judging impact of your position and action on others as
well as it gives you deep knowledge and understanding of your own identity.

MENTORING AND COACHING

What is these statements is not true about mentoring and coaching?
a)
Mentoring is informal while coaching is formal
b)
Mentoring focuses on overall development of mentee while coaching relates to
specific problem related development and its resolution
c)
Coaching is goal-oriented while mentoring focuses on both, career & personal
development
d)
Mentor sets the goal in mentoring while person being coached sets the goal in
coaching
e)
Mentoring is generally done by a higher-experienced while coaching is not
always related to experience level of the person unless it is skill-specific
Correct Choice : d
Solution :
Mentee sets the goal in mentoring which is an informal process which can be aimed at
person development of mentee while coaching is based on some issue, hence coach
defines the agenda in coaching. Coaching is goal-oriented while mentoring focuses on
both, career & personal development. Mentoring is generally done by a higherexperienced while coaching is not always related to experience level of the person
unless it is skill-specific.
15.Which of the following statements is not true about Employee Benefits?
a)
Benefits are personal in nature and the employee can use them on his
own discretion
b)
A benefit given to an employee includes reimbursement of personal expenses
and allowances given
c)
An employer has to disburse at least some part of salary/wages in benefits
d)
Benefits can be paid as both cash and kind (non-cash) benefits
e)
Benefits are paid over and above wages
Correct Choice : c
Solution : Employee benefits are personal in nature and the employee can use them
on his own discretion. They are paid over and above wages and can be paid as both
cash and kind (non-cash). They may include reimbursement of personal expenses and
allowances given. Benefits are optional and paid in addition of salary/wages.
16. Which of these is not an advantage of Functional Organization
Structure?
a)
Specialization
b)
Communication

c)
Hierarchy
d)
Career Path
e)
All are advantages
Correct Choice : c
Solution : A functional organization is a common type of organizational structure in
which the organization is divided into smaller groups based on specialized functional
areas. Functional Organization is best for smaller companies or those that focus on a
single product or service. Hierarchy is disadvantage of functional organization
systems because it is not well-defined in this case.
17. Which is not the primary outcome of Human Resource Development
(HRD)?
a)
Learning
b)
Performance Growth
c)
Organizational Development
d)
Succession Planning
e)
Employee Development
Correct Choice : d
Solution : HRD focuses on learning which leads to performance improvement and
organizational development. It does not result in succession planning.
18. Job Analysis deals with collecting information related to job
responsibilities in order to develop job descriptions. Job Analysis can be
performed through a. Observation
b. Questionnaires
c. Interviews
a)
A& B
b)
B& C
c)
Only C
d)
Only B
e)
A, B and C
Correct Choice : e
Solution : Job Analysis can be done by all the 3 techniques. Observation method is
used to observe employees' behavior and performance. Responses of employees and
managers to Questionnaires can be used for job analysis as well. Interview method
lets employer exactly know about employee's feelings for his job and responsibilities.
Match the following:
A. Skills
B. Competencies
C. Abilities
i. Quality of being able to do something
ii. Defines requirement for job success and differentiates star performers with others
iii. A learned behavior to perform predetermined tasks
a)
A- I, b- II, C- III
b)
A- III, B- II, C-I
c)
A-II, B- I- C-III
d)
A-III, B- I, C-II
e)
A-II, B-III, C-I
Skills are always learnt, abilities are inherent qualities and competencies
define job requirements.
Match the following leadership styles with the scenarios:

a. Visionary
b. Affiliative
c. Democratic
d. Coaching
i. Focus on individual's performance improvement and connecting them with
organization goals
ii. Organization's direction depends upon the wisdom of group
iii. Team network is important thereby harmony, communication and trust are
emphasized
iv. Setting new direction for organization and making people move towards it
a)
A-IV, B-II, C-I, D-III
b)
A-II, B-IV, C-III, D-I
c)
A-IV, B-III, C-II, D-I
d)
A-IV, B-II, C-III, D-I
e)
A- II, B-III, C-IV, D-I
Choice :
c
Solution : Visionary leader gives direction to the organization. Affiliative leadership
style promotes harmony and communication in group. Democratic leader focuses on
team wisdom and Coaching is emphasized individual development

ADDIE model of training

gives a descriptive guideline for building and

implementing effective training programs. It is similar to Instructional Systems Design
framework which considers that training is most effective when learners are provided
with a clear statement of what they must be able to do after completion of training.
Which of these is a correct sequence for ADDIE model?
a)
Analysis, Develop, Design, Implement, Evaluate
b)
Analysis, Design, Develop, Implement, Evaluate
c)
Analysis, Develop, Design, Improvise, Execute
d)
Analysis, Design, Develop, Improvise, Evaluate
e)
Analysis, Develop, Design, Implement, Execute
Choice :
b
Solution : Correct sequence is analysis of training needs, designing the program,
develop the blueprint prepared in design phase, implement the plan and evaluate the
performance
Analysis phase includes analyzing:
a)
Future needs and Current Needs
b)
Trainee's profile
c)
Resources and Constraints
d)
Delivery System
e)
All of the above
Correct Choice : e Solution :
Each of the above mentioned parameters needs to be analyzed for ensuring
effectiveness of the training program.
Development phase includes:
a)
Developing instructional objectives
b)
Developing sequence and structure of the course
c)
Selection and development of training material
d)
Developing tests to show success of training program
e)
Identifying learning steps needed
Correct Choice : c

Solution : Development phase includes selection and development of training

material. Rest all steps comes under design phase.
Implementation Phase- During the implementation phase, a procedure for training
the facilitators and the learners is developed. The facilitators' training should cover
the course curriculum, learning outcomes, method of delivery, and testing procedures.
Preparation of the learners include training them on new tools (software or hardware),
student registration. This is also the phase where the project manager ensures that
the books, hands on equipment, tools, CD-ROMs and software are in place, and that
the learning application or Web site is functional.
Evaluation Phase - The evaluation phase consists of two parts: formative and
summative. Formative evaluation is present in each stage of the ADDIE process.
Summative evaluation consists of tests designed for domain specific criterion-related
referenced items and providing opportunities for feedback from the users.
MBE & MBO are techniques used to
a)
Exercise control by the management
b)
Motivate the employees
c)
Report the stage of implementation of tasks
d)
Both b & c
e)
Both a & c
Correct Choice : a
Solution : MBE (Management by Exception) and MBO (Management by Objectives) are
techniques widely used by managers to exercise control over subordinates.
Management by objectives: Management by objectives can be defined as a
management model that attempts to devise a common objective that is acceptable
for both the management and employees, which will improve the overall performance
of the organization.
Management by exception: Management by exception can be defined as a
management mode that provides the objectives for employees and only concentrate
on significant deviations from the set objectives or task which will reduce the energy
and time lost on unnecessary monitoring and evaluation procedures.
Survival of an organisation depends on maintenance of equilibrium between
the contribution and satisfaction of the participant/employee. Based on this
equilibrium he derived the Acceptance theory of Authority. Identify the
thinker.
a)
Herbert Simon
b)
Peter Drucker
c)
Chester Barnard
d)
Mary Follett
e)
Elton Mayo
Correct Choice : c
Solution : Chester Barnard was an American business executive, public administrator,
and the author of pioneering work in management theory and organizational studies.
He gave the famous acceptance theory of authority while rejecting the classical
theory and stated that the basis of legitimacy of superior's authority is the
'acceptance of it by the subordinates'.

According to Barnard, organizations are not long-lived because they do not meet the
two criteria necessary for survival: effectiveness and efficiency. Effectiveness, is
defined the usual way: as being able to accomplish stated goals. In contrast, Barnard's
meaning of organizational efficiency differed substantially from the conventional use
of the word. He defined efficiency of an organization as the degree to which that
organization is able to satisfy the motives of the individuals. If an organization
satisfies the motives of its members while attaining its explicit goals, cooperation
among its members will last.
The functions of staff agencies do not include
i. Coordination
ii. Planning
iii. Execution
iv. Supervision
v. Housekeeping
a)
i, ii and iii
b)
iii and v
c)
ii, iii and iv
d)
ii, iv and v
e)
ii and iv
Solution : b
Staff agencies perform functions such as coordination, planning and supervision while
the actual execution is done by the line agencies and the common housekeeping is
under the auxiliary agencies.
Luther Gulick identified four bases of organisation which are called four P's
of Gulick. Which of the following are the 'four P's of Gulick'?
i. Purpose
ii. Planning
iii. Process
iv. Persons
v. Place
vi. Project
a)
i, ii, iii, iv
b)
i, ii, iv, vi
c)
ii, iii, iv, vi
d)
i, iii, iv, v
e)
ii, iii, v, vi
Correct Choice : d
Solution : Luther Gulick identified four bases on which different departments are
created. These are: Purpose, Process, Persons and Place. These bases are called four
Ps of Gulick.
These are described as under:
Purpose: The functions and goals of the organization can be a criterion for creating
departments in any organization. Co-ordination becomes quite easy in such type of
departments. However there may be some disadvantages also in such a classification.
These are: problems faced during division of work, lack of opportunities various
specialists etc.
Process or Skills: Processes or skills involved in the functioning of the department
can be other criterion for creating departments. All the works involving same
knowledge, skills and processes may be grouped together and can form a
department. Such department can undertake activities which are required by other

departments as well. Hence it saves time and energy of other departments also to do
the similar kinds of things
Persons or Clientele: Departments may also be created according to the clientele
served by them. The major advantage of such types of departments is that the
personnel working in such departments acquire skills in dealing with particular
clientele. The major disadvantage of such departments is the overlapping and
duplication in their functioning.
Place or Territory: It is one of the most important bases of departmentalization. All
the functions created in an area are clubbed together. This is helpful in intensive
development of the area and promotes area specialization as well as the coordination.
22. Complex projects require a series of activities, some of which must be
performed sequentially and others that can be performed in parallel with other
activities. This collection of series and parallel tasks can be modelled as a network.
Program Management and Review Technique (PERT) and Critical Path
Method (CPM) are two popular statistical tools used by the business entities for the
management of the project. CPM is different from PERT in a way that the former cost
based while the latter is time-based.
Which of the following statements about PERT and CPM is not true?
a)
PERT is set according to events while CPM is aligned towards activities.
b)
A deterministic model is used in CPM while PERT uses probabilistic model.
c)
There are three times estimates in PERT i.e. optimistic time, most likely
time, pessimistic time. On the other hand, there is only one estimate in CPM.
d)
PERT technique is best suited for a high precision time estimate, whereas
CPM is appropriate for a reasonable time estimate.
e)
All the above statements are true
Solution :

Differences between PERT and CPM:

PERT is a project management technique, whereby planning, scheduling, organising,

coordinating and controlling of uncertain activities is done. CPM is a statistical
technique of project management in which planning, scheduling, organising,
coordination and control of well-defined activities takes place.
PERT is a technique of planning and control of time. Unlike CPM, which is a method
to control costs and time.
PERT is set according to events while CPM is aligned towards activities.
A deterministic model is used in PERT. Conversely, CPM uses probabilistic model.
There are three times estimates in PERT i.e. optimistic time (to), most likely time ,
pessimistic time (tp). On the other hand, there is only one estimate in CPM.
PERT technique is best suited for a high precision time estimate, whereas CPM is
appropriate for a reasonable time estimate.
PERT deals with unpredictable activities, but CPM deals with predictable activities.
PERT is used where the nature of the job is non-repetitive. In contrast to, CPM
involves the job of repetitive nature.
There is a demarcation between critical and non-critical activities in CPM, which is
not in the case of PERT.
PERT is best for research and development projects, but CPM is for non-research
projects like construction projects.
Crashing is a compression technique applied to CPM, to shorten the project duration,
along with least additional cost. The crashing concept is not applicable to PERT.

What is Critical Path in Project Management?

a)
It is the longest-duration path through the network
b)
It is the shortest-duration path through the network
c)
It is the mean-duration path through the network
d)
It is the median-duration path through the network
e)
None of the above
Solution : a
The critical path is determined by adding the times for the activities in each sequence
and determining the longest path in the project. The critical path determines the total
calendar time required for the project. The significance of the critical path is that the
activities that lie on it cannot be delayed without delaying the project. Because of its
impact on the entire project, critical path analysis is an important aspect of project
planning.
Match the columns:
A
B
a. Productivity
i. Achievement of ends with least amount of resources
b. Effectiveness ii. Ratio of output to input in a given time period with consideration
to quality
c. Efficiency
iii. Achievement of objectives
a)
a-ii, b-iii, c-i
b)
a-i, b-ii, c-iii
c)
a-iii, b-ii, c-i
d)
a-i, b-iii, c-ii
e)
a-ii, b-i, c-ii
Solution : a
Productivity refers to ratio of output to input within a specified time with due
consideration to quality of the product. Effectiveness has to do with the achievement
of the objectives while efficiency refers to achievement of ends with least amount of
resources.
What can lead to agency costs (arising from agency problems in Corporate
Governance)?
a)
When managers try to maximize the firm value
b)
When the owners have to incur monitoring costs for managers
c)
When Managers think about spending company's money as hard as he think for
his own
d)
None of the above
e)
All of the above
Correct Choice : b
Solution : Agency costs are incurred when managers do not try to maximize firm value
or do not think about spending company's money as their own. To monitor these
shareholders have to appoint a board to oversee managers, which results in incurring
of agency costs
Which of these correctly captures the change in Human Resource
Development?
a)
From training as something which organization do to people to learning as
something for which people themselves take responsibility
b)
Focus on informal interventions to focus on formal workplace learning
c)
Decentralized training departments to centralized training teams

d)
Emphasis on developing intellectual capital to emphasis on developing
employee skills
e)
Small teams delivering training to large teams delivering training
Correct Choice : a
Solution : HRD has undergone evolution from training to self-owned learning. Rest all
are opposite with respect to HRD.
Which of these is not a sub-system of integrated Human Resource
Development?
a)
Feedback and counselling
b)
Compensation
c)
Career Planning
d)
Potential Appraisal
e)
All of the above are parts of HRD
Solution : b
Compensation does not focus on individual or organisation learning. It is a part of
human resource management but not human resource development.
Which of the options is not true about Line Managers?
a)
Line managers' task is to micromanage their employees to create an
engaged workforce
b)
Line managers implement performance appraisal processes
c)
Line managers have a significant role to play in Performance related pay
d)
In smaller businesses, employee management is carried out by line
mangers only
e)
Line managers have a day-to-day business in implementing HR initiatives
and policies
Solution : a
Line managers play a crucial role in employee engagement. If they micromanage their
workforce, it will result in a disengaged workforce. Rest all statements are true about
line managers.
Which of these statements is false?
a)
Annual financial results and accomplishments can be best recognized by lumpsum bonus
b)
For every additional skill acquired, base pay increase in consistence to
incremental contribution of these skills is a good approach
c)
With additional responsibilities, base salary increase is better than benefits/ pay
for performance
d)
For special projects undertaken, lump-sum bonus will be a good idea
e)
All are true
Solution : e
Pay for performance/bonus is a good option for one-time projects (annual projects) or
special projects. Base salary increase is to reward achievements to make employees
feel more valuable. Hence if an employee acquires a new skill or is given additional
responsibilities, base salary should be increased.

COMPETANCY
A competency is an underlying characteristic for performing any given task or activity.
It covers both inherent and acquired traits viz. Knowledge, Attitude, Skill, Behaviours,
Traits, Values etc. Competency Mapping is a process of assessing and evaluating one's
strengths in required fields through analysing combination of strengths. Competency

Map also analyses areas in which an individual needs more training. In short, it is a
process to identify core competencies for a job or an organization and incorporating
them throughout various processes of organization. There are several methods for
analysing person's fitment to the job on the basis of competency mapping, yet it is
considered to be a difficult task.
1. Identify correct sequence of steps for competency mappingA. Develop job description
B. Identify competencies where individual needs training
C. Conduct Job Analysis
D. Map the competencies and evaluate the performance
a)
A-C-B-D
b)
A-B-C-D
c)
C-A-D-B
d)
C-B-A-D
e)
B-C-A-D
Solution : c For competency mapping, first job analysis is done on incumbents and
then its results are used to develop competency-based job description. After writing
job description, competency mapping can be done and then respective competencies
can be used for performance assessment. We can then use the results to identify
areas where individual needs training.
Hence the right order is CADB
2. Which of these is not a method for competency mapping under
Assessment centre?
a)
Role Play
b)
In Basket
c)
Group Discussion
d)
Case Study
e)
Critical Incident Method
Correct Choice : e
Solution : Critical Incident method is a separate technique for Competency mapping
which forms its basis from behaviour of individual in particular events. It does not
come under Assessment Centre.
3.Which is the incorrect option for Interview technique of competency
mapping?
a)
Critical areas around which the interview will revolve, must be identified
and told to the interviewee
b)
Establishing rapport with interviewee
c)
Asking leading questions
d)
Avoiding complex questions in beginning
e)
Discussion with the interviewee over areas of agreement and
disagreement
Correct Choice : c
Solution Leading questions are those which prompts interviewee to make desired
answer. They should always be avoided in an interview because they lead to biasness
and misrepresentation of information.
4. Which of the statements is not true about employee benefits?
a)
It is not a viable incentive to induce behaviour changes
b)
They have more intrinsic value than extrinsic
c)
Benefits are major part of compensation package in addition to fixed salary
especially at lower levels

d)
Perquisites are executive benefits which are given and hence are mainly given
on organization level
e)
All of the above are true
Correct Choice : e
Solution : Benefits are independent of performance and mostly deal with those needs
for which employer would otherwise have to pay from his pocket. Hence, they are not
related to performance improvement. Also, Fixed Salary and Benefits are major
components at lower levels in almost every organization. At CEO level, other factors
are included too. Perquisites are given to executive employees. They typically include
Company car, financial planning, executive retirement benefits etc.

Management Information Systems(MIS)

has largely made a direct

impact on:
a)
Motivation
b)
Governance
c)
Span of control
d)
Both a & b
e)
Both b & c
Correct Choice : c
Solution : MIS enables management to have better control over operations and has
changed the idea of span of control due to the information revolution in recent times.

Performance objectives

prescribe what employees can do after getting

trained which they couldn't do before. They are goal-oriented and lead to objectivity in
interpretation thereby easily measuring how close the goal is! Flexible objectives are
those which allows trainee to learn something and also apply that too, if possible. The
results or changes occur over-time in this case and aren't easily quantifiable.
Which of these is not an example of performance objectives?
a)
Asking hotel staff to greet foreign customers in their own language when they
come to stay in the hotel
b)
Being very humble while handling employee issues, be them subordinates/
superiors
c)
Analysing and giving a monthly report on performance metrics to support
business excellence
d)
Researching the business problems and coordinating with different departments
to gather relevant information
e)
Ensuring the quality review is performed before delivering it to client
Solution : b
All other options will directly relate to business results and performance of the
employee with regards to the goal. Changes in attitude, behaviour and perception
takes time, hence option b is an example of flexible objective.
Which of these is not a potential challenge for writing performance
objective?
a)
Writing objectives for a job that changes time to time
b)
Writing objectives for activities which are difficult to measure
c)
Writing objectives for short-term goals
d)
Writing objectives that relate to higher-level goals
e)
Writing clear objectives
Correct Choice : c
Solution : Writing objectives for long-term goals is difficult while it is easy to write
objectives for short-term goals. We have to break it in smaller parts and then write

targets for the same. Rest all are potential challenges for defining performance-based
objectives.
Match the following
a. Analyze worst and best performance events
b. Comprehensive feedback on employee's performance
c. Emphasis on tangible and measurable goals
d. Measure employee performance on multiple parameters
i. Numerical Rating Scale
ii. 360 degree feedback
iii. Critical Incident
iv. Management by Objective (MBO)
a)
a-iii, b-ii, c-iv, d-i
b)
a-iii, b-iv, c-iii, d-ii
c)
a-i, b-ii, c-iv, d-iii
d)
a-i, b-iii, c-iv, d-iii
e)
a-iv, b-ii, c-iii, d-i
choice-a
Solution : Critical incident method relates to performance in specific incident, 360
degree is a comprehensive feedback from all shareholders and stakeholders (including
customers, subordinates and peers). Numerical Rating Scale is widely used for
measuring employee performance on various factors while MBO focuses on tangible
goals and outcomes.

Which of these is not correct with respect to perceptual errors?

a)
Drawing general impression on basis of one dimension
b)
Tendency to form opinion based on first meeting/impression
c)
Tendency to overestimate the influence of external factors but
underestimate influence of internal factors
d)
Tendency to take credit for success and blame others for failures
e)
Changing the reality to serve own notions and preconceptions as true
Solution : Drawing general impression on basis of one dimension is halo effect.
Tendency to form opinion based on first meeting/impression is primary effect.
Tendency to take credit for success and blame others for failures is self-serving bias.
Changing the reality to serve own notions and preconceptions as true is self-fulfilling
prophecy. Option c is opposite to fundamental attribution error which means
underestimating influence of external factors and overestimating internal influence.