Practice Paper

PRINCIPLES OF
MANAGEMENT
Principles of Management: Practice Paper

MULTIPLE CHOICE QUESTIONS

1. Organization is a group of people coming together to achieve.
a. A common objective b. Individual objective
c. Both (a) and (b) above d. Neither (a) and (b)
e. To share the profit
2. Organization contribute to society
a. Progress b. Hindrance
c. Both (a) and (b) above d. Neutral
e. Negatively
3. Organizations success depends on
a. Planning b. Execution
c. Planning and execution d. None of the above
e. Recruitment
4. For the success of the organization___________ is vital
a. Efficiency b. Effectiveness
c. Both (a) and (b) above d. Neither (a) and (b)
e. Decisions
5. Management is a process of
a. Planning, Organizing, Leading and Controlling
b. Planning, Execution, Finance and Decision making
c. Planning, Motivation, Communication and Leading
d. Planning, Organizing, Motivation and Leading
e. Capital, officers, Communication, Decision
6. Resources of the management are
a. Money, Men, Materials, Methods, Machinery and Time
b. Money, Planning, Executives, Execution, Land, Location
c. Money, Materials, H R Policies, Marketing and Advertisement
d. Money, Materials, Machinery, H R Practices, Marketing and Advertisement
e. Money, Land, Materials, workers, Systems, Customers.
7. Which are the various levels of management?
a. Frontline, Middle Level and Top Level b. Bottom Half and the Top Half
c. Staff, Officers and Executives d. Staff, Officers
e. Officers, staff, Subordinate staff
8. There is basically _____ number of skills
a. 3 b. 2
c. 4 d. 6
e. 5
 Multiple Choice Questions

9. Mintzberg has stated a successful manager has the following roles

a. Inter personal, Decision making and Information
b. Inter personal, Leadership and Decision making
c. Inter personal, Informational, Leadership and Personal Role
d. Formal, Informal and Personal
e. Personal, Official, External
10. Inter personal role means he acts as
a. Figure head, Leader and Liaison
b. Figure head, Spokesperson and Entrepreneur
c. Entrepreneur, Resource allocator and H R
d. None of the above
e. Manager, Leader Problem solver
11. The scientific theory of Management was propounded by
a. Elten Mayo b. Henry Fayol
c. Fredrick Taylor d. Max Weber
e. Douglas Mcgregor
12. Espirit De Corps means
a. Union is strength b. Individual can produce more
c. Supervision yields more d. None of the above
e. No Need for supervision.
13. The main functions of the management are
a. Planning, Organizing, Staffing, Directing and Controlling
b. Policies, Strategies, Directing, Executing and Controlling
c. Planning, Organizing, H R and Control
d. Planning, Marketing, Advertisement and H R
e. Planning, Marketing, Finance, H R
14. Espirit De Corps was enunciated by
a. Elten Mayo b. Henry Fayol
c. Fredrick Taylor d. Max Weber
e. Charles Babbage
15. Time and Motion study was introduced by
a. Fedrick Taylor b. Henry Fayol
c. Charles Babbage d. Max Weber
e. Abraham Maslow
Principles of Management: Practice Paper

16. Task and Bonus system was introduced by

a. Elten Mayo b. Henry Gantt
c. Charles Babbage d. Max Weber
e. Frederick Taylor
17. Max Webber was responsible for
a. Bureaucratic Management b. Scientific Management
c. Time and motion study d. Administrative Theory
e. Systems Theory
18. Scientific Management
a. Overlooks the social needs of the workers
b. Over emphasizes the economic needs of the workers
c. Both (a) and (b)
d. None of the above
e. Cares for Profit only
19. The Human Relations Approach for the management was contributed by
a. Elten Mayo b. Henry Fayol
c. Fredrick Taylor d. Max Weber
e. Abraham Maslow
20. The best way to manage for the manager is to identify the situation, interpret them and apply the best
approach to solve-. This is according to
a. Systems Theory b. Administrative Theory
c. Contingency Theory d. Bureaucratic Theory
e. Human relations Theory
21. When a manager finds that most of the employees go out for coffee frequently & spend a lot of time
outside the office on the pretext of rejuvenation the manager is losing a lot of office time. His best option to
prevent the loss of time is
a. To provide coffee at the working table
b. To restrict the time spent outside for the coffee
c. Not to allow anyone to go out for coffee
d. To install a coffee vending machine in the office
e. To prepare coffee in the office
22. _________ gives managers a new way of looking at an organization as a whole and as a part of a larger
external environment.
a. Systems Theory b. Administrative Theory
c. Contingency Theory d. Bureaucratic Theory
e. Humans Relations
 Multiple Choice Questions

23. Which of the following is correct?

a. Theory X and Theory Y were propounded by Douglas McGregor and Theory Z by William Ouchi
b. Theory X was propounded by Abraham Maslow, Theory Y William Ouchi and Theory Z by William
Ouchi
c. Theory X was propounded Douglas McGregor, Theory Y William Ouchi by and Theory Z by
Abraham Maslow
d. None of the above
e. Theory ‘X’ was propounded by Frederick Taylor, Theory ‘Y’ was propounded by Abraham Maslow
&Theory ‘Z’ was propounded by William Ouchi
24. The theory that incongruence between the organization and the individual can be corrected by allowing the
employees to participate in the decision making was propounded by
a. Chrys Argyris b. Henry Fayol
c. Fredrick Taylor d. Max Weber
e. Abraham Maslow
25. Stakeholders are those
a. Who are affected by the organizations pursuit of its goals
b. Who affect the organization
c. Who are the observers of the organizations
d. Who bet on the organization’s success
e. None of the above
26. The continuous Line of Authority that extends from the upper level of the management to the lowest level
is called
a. Authority Line of Responsibility b. Unity of Commerce
c. Responsibility Factor d. Chain of Command
e. Distribution of Command
27. One of the most common cause of business failure is
a. Insufficient Capital b. Unstable Market
c. Insufficient Experience d. Inefficiency in Management
e. Wrong decisions
28. Achievement of the objective and adherence to the organization of the policy is possible only if one has
a. Planning Skills b. Organising Skills
c. Authority d. Self Motivation
e. Clear Perception
29. Effective achievement of the organization is possible only when organization has
a. Objectives b. Strategic Goals
c. Effective Strategies d. Motivation
e. Communication
Principles of Management: Practice Paper

30. Which provides a superior and unique customer value which other competitors cannot have
a. Competitve Advantage b. Scope
c. Resources Deployment d. Effective Strategies
e. Advertisement
31. When the Branch Manager sets the Sales Manager an increase in the target by 10% and at the end of the
year he checks whether he has done, the BM is doing
a. Planning Function b. Motivating
c. Communicating d. Controlling
e. Organising
32. The process of monitoring performance, comparing it with goals and correcting any significant deviations
is known as:
a. Planning b. Organizing
c. Leading d. Controlling
e. Communicating
33. Mr. Rao the Divisional Manager had called a meeting of all the 4 Branch managers & all the 4 branch
managers had agreed to increase the individual performance by 30% over the previous year. During the
second quarterly meeting the Divisional Manager discussed the progress made & made suggestions, and
advised those Branch managers who were lagging behind as to how to enhance the performance. Here the
Divisional Manager was
a. Planning b. Organizing
c. Leading d. Controlling
e. Communicating
34. When a manager transmits the information to the external environment he is acting as a
a. Spokesperson b. Representative
c. Dissiminator d. Agent
e. None of the above
35. A successful manager must have
a. Human Resources Skill b. Technical Skill
c. Conceptual Skill d. All the above
e. Only Technical skills
36. Controlling function means
a. Setting goals in advance b. Granting Authority
c. Motivating the Sub Ordinates d. Checking whether the performance is in
e. Only exercising authority accordance with the plans
37. The function of dividing the plans to the task selecting the staff and granting necessary authority to function
is called
a. Startegic Planning b. Long Term Planning
c. Organizing d. Controlling
e. Communicating
 Multiple Choice Questions

38. The purpose of job enrichment is to

a. Expand the number of tasks an individual can do
b. Increase job efficiency
c. Increase job effectiveness
d. Increase job responsibilities and job satisfaction of the employees
e. To show one’s authority to load the work
39. The concept of Power refers to
a. Defined authority & responsibility
b. A relative hierarchical position in the organization
c. The ability to influence the behavior of others
d. The specialized knowledge possessed by an individual
e. The ability to dominate
40. Management by objectives means
a. Setting the goals and directing the sub ordinates
b. Evaluating the performances frequently
c. Setting the goals in consultation with the sub ordinates and evaluating the performances frequently
and introducing necessary corrections.
d. None of the above
e. (a) & (b) of the above
41. An organization that assigns specialists from different functional departments to work on one or more than
one projects being lead by a project manager is called
a. Team Organization b. Matrix Organization
c. Virtual Organization d. Centralized Organization
e. Complex Organisation
42. The degree of power confined in decision making at a single point in an organization is called
a. Unity of Command b. Style of Command
c. Centralisation d. Decentralisation
e. None of the Above
43. The idea that the employees should also share the profit of the organization was given by
a. Charles Babbage b. Henry Fayol
c. Robert Owen d. Max Weber
e. Frederick Taylor
44. Conceptual Skill is necessary most for
a. Frontline Managers b. Middle Level Managers
c. Top Level Managers d. At all Levels
e. Not necessary for front line
Principles of Management: Practice Paper

45. A Budget is an example of

a. A Strategic Plan b. Standard Plan
c. Single Use Plan d. None of the above
e. Long Term plan
46. Sales responsibilities divided into various directions like North South East West regions is called
Departmentalization’s based on
a. Process b. Product
c. Geographic d. Profit
e. Authority
47. The problem-solving process begins by
a. Clarification of the situation
b. Establishment of the alternatives
c. Identification of the problem or the difficulty experienced
d. Isolation of the causes
e. The use of authority
48. When a H R manager discusses with the employees the matter of wage revision he is acting as
a. Management b. Leader
c. Negotiator d. Liaisoning Officer
e. None of the above
49. Planning Process includes
a. Goal formation b. Resource Analysis
c. Identification of Strategic Opportunities d. All the above
e. None of the above
50. In order to communicate Motivate& Delegates Manager must have
a. Conceptual skill b. Technical skill
c. Communicating skills d. Interpersonal skills
e. Controlling Skills
51. When Mr. Ramesh sends two additional officers to a department lagging in target achievement he is
functioning as a
a. Leader b. Motivator
c. Controller d. Resource Allocator
e. Planner
52. Checking whether the progress is as per plan is called
a. Planning b. Leadership
c. Controlling d. Reporting
e. Communicating
 Multiple Choice Questions

53. The principal that each subordinate should report to only one officer is called
a. Chain of command b. Unity of command
c. Span of Supervision d. Authority
e. Controlling
54. The process of Motivation does not include
a. Recognize the individual differences b. Making goals very difficult to achieve
c. Match people to jobs d. Individualise Rewards
e. Listening to employees grievances
55. Which of the following describes the Global Market place?
a. The entire world is a market place
b. National borders are irrelevant
c. The potential for the organizations to grow expands dramatically
d. All the above options
e. None of the above
56. When a manager in a legal department gives his advice he has
a. Legitimate Power b. Rewarding Power
c. Coercive Power d. Expert Power
e. Special Power
57. The assignment of Responsibility to a subordinate is called
a. Coordination b. Specialization
c. Delegation d. Span of Control
e. Authority
58. Lower levels of Management can also take Decisions when powers of the management are
a. Centralized b. Decentralized
c. Under scalar chain d. None of the above
e. Under Authority
59. A manager can set goals successfully to the subordinates only when
a. Employee recognitions used as reward
b. They provide Feedback to the employees
c. They allow the employees to participate in management
d. All the above
e. When he has Authority
60. Someone who works with and through other people by coordinating their work activities to accomplish
organizational goals is called:
a. A Very intelligent: Individual b. A Supervisor of Production Work
c. A Manager d. An operation Supervisor
e. Co coordinator
Principles of Management: Practice Paper

61. Decision Making is a Process which involves

a. Identifying the problem
b. Identifying a suitable alternative solution
c. Evaluating the effectiveness of the selected alternative
d. All the above three
e. None of the above
62. Application of M B O in an organization serves
a. To increase the authority b. To reduce the competition
c. To improve the managerial control d. To improve the employee motivation
e. Employee Control
63. When a manager takes a decision whose outcome is uncertain it is called
a. Poor quality decision b. Unacceptable
c. Successful d. Risky
e. Bold
64. Forecasting techniques will fall into the following category
a. Fixed asset & Human capital b. Predictive & confirmatory
c. Quantitative & Qualitative d. Empirical & conceptual
e. None of the Above
65. One method of bringing up a group to agreement is called
a. Proportionate values b. Consensus
c. Accordance d. Conformance
e. None of the Above
66. Acceptance theory of Authority was propounded by
a. Douglas McGregor b. Abraham Maslow
c. Frederic Hertzberg d. Chester Bernard
e. Henry Fayol
67. Organisations culture depends on the employee’s
a. Skills b. Personality
c. Motivation d. Ability
e. Authority
68. The theory of Hierarchy of Needs was propounded by
a. Douglas McGregor b. Abraham Maslow
c. Frederic Hertzberg d. Henry Fayol
e. None of the Above
 Multiple Choice Questions

69. The real meaning of Power in an organization means

a. To dominate b. To Delegate
c. To Control d. To Influence
e. To Communicate
70. SWOT analysis means
a. Speed, Wants, order, training
b. Strengths, Weaknesses, Opportunities, threats
c. Studies, Workflows, Opportunities Threats
d. Strategies, Worries, Objectives, Techniques
e. Strategies, worries, objections, Training
71. A supply firm is having 3 departments based on Retail, Wholesale & Government customers. How will you
describe the departmentalization – whether?
a. Functional b. Product
c. Customer d. Geographic
e. Authority
72. When a manager is telling his subordinate that he (manager) is going to recommend a promotion he is
using
a. Reward power b. Co-ercive power
c. Expert power d. Legitimate power
e. Referent Power
73. The power of a person derived from the hierarchy of the organization is called
a. Legitimate power b. Reward power
c. Referent power d. Co-ercive power
e. Expert Power
74. When a security guard checks the identity of the incoming person he is using
a. Legitimate Authority b. Special Authority
c. Controlling Authority d. Expert authority
e. Special Authority
75. The Willingness of the subordinates to take up additional responsibilities at lower level will help the
organization to decide the degree of
a. Centralization b. Decentralization
c. Administration d. Authorization
e. None of the Above
76. The process of developing the organization structure is called
a. Organizational Design b. System Design
c. Structure Design d. Process Design
e. Planning Design
Principles of Management: Practice Paper

77. An organization can distinguish itself from the companies by

a. Offering better customer services b. Offering new features
c. Creating Brand image d. Using all the above strategies
e. None of the Above
78. ………….. guides or channelizes the Decision Making process of an organization
a. Policies of the Organization b. Procedure
c. Rules of the organization d. Strategies
e. Motivating Techniques
79. The moral compulsion of the subordinate to complete the assigned tasks is called
a. Responsibility b. Accountability
c. Authority d. Power
e. Delegation
80. Power of a manager in an organization may be
a. Reward power b. Co-ercive power
c. Legitimate power d. All the above three
e. Not necessarily
81. When we say Consult a Devil’s advocate, we mean
a. Assess the bias in the analysis made b. Reconsider the assumptions made
c. Review the alternatives discarded d. All the above three
e. Not necessarily
82. Michael E Porter’s competitive strategies emphasize
a. Overall cost leadership b. Differentiation
c. Focus d. All the above
e. None of the Above
83. Non Programmed Decisions involve
a. Certainty b. Stability
c. Uncertainty d. Opportunity
e. Risks
84. Programmed Decisions normally involve
a. Common & frequently occurring problems b. Uncommon & not known to the manager
c. That requires special authority d. Only top level managers
e. All the Managers
85. Organising aims at
a. Developing a definite structure of work b. Achievement of organizational performance
c. Coordinating controlling of efforts d. All the above three
e. None of the above
 Multiple Choice Questions

86. The reasons why the subordinates hesitate to accept delegation may be
a. Fear of criticism b. Lack of self confidence
c. Lack of positive incentives d. All the above three
e. Only (a) above
87. The reasons for the managers not willing to delegate may be
a. Lack of ability to direct b. Feeling that managers can do it better
c. Desire to dominate d. All the three above
e. Because subordinates do not accept
88. An Effective Delegation leads to
a. Better Decisions b. Subordinates accept delegations & take decisions
c. Trains &develops the subordinates d. All the above
e. Officers will not have sufficient work
89. Span of Supervision means
a. No of Subordinates a manager can effectively supervise
b. No of people he can dominate
c. No of people he can appoint
d. Number indicating his status
e. Number of people who are working with him
90. Factors limiting the span of supervision may be
a. Time & energies of the delegating executive may be limited
b. The capacity of the delegating executive to deal with the problems is limited
c. Some of the subordinates have a fancy for reporting to a top boss
d. All the three above
e. None of the above
91. Span of Supervision cannot be increased of
a. Inaccuracy in Communication b. Dangers of layering
c. Effect on Morale d. All the above three
e. Managers do not wish
92. Motivation- Hygiene Theory was propounded by
a. Douglas McGregor b. Abraham Maslow
c. Frederic Hertzberg d. Henry Fayol
e. Frederick Taylor
93. The process of Control means
a. Establishing the standards for measurement b. Measuring the performance
c. Take corrective measures wherever necessary .d. All the above three
e. None of the above
Principles of Management: Practice Paper

94. Actual job performance’s a criterion for appraisal where the organization is
a. Behavior oriented b. Results oriented
c. Work oriented d. Skills oriented
e. Authority oriented
95. Which function frontline manager is doing
a. Planning b. Organizing
c. Controlling d. Staffing
e. Communicating
96. Organisational change is necessitated by factors like
a. Economic b. Technological
c. Both (a) & (b) above d. Neither (a) & (b).
e. Competition
97. Intentional adaptation & implementation of new policy or goal or new climate is called
a. Routine Change b. Planned Change
c. Specific Change d. Spontaneous
e. Compulsion
98. The process of Refreezing in the new situation is an act to
a. Stabilize b. Destabilize
c. Unequalise d. Disarrange
e. Review
99. The process of Unfreezing the Status quo is the first step to overcome resistance since status quo is treated
as
a. State of Equilibrium b. State of Instability
c. State of disequilibrium d. State of disparity
e. Disapproval
100. The Human Resources Management process means & includes
a. Training b. Human Resources Planning
c. Employee Compensation d. All the above three options
e. None of the above
 Multiple Choice – Answers and Explanations

MULTIPLE CHOICE – ANSWERS AND EXPLANATIONS

1. (a) A Common Objective

The very purpose of people coming together to achieve the common purpose and not individual’s.
2. (a) Progress
There is a Social Responsibility of the organization to contribute to the society’s progress.
3. (c) Planning and execution
Neither Planning nor execution alone will be sufficient There should be both planning and execution.
4. (c) Both a and b are vital
Efficiency is doing the right thing and effectiveness is getting the right thing done through others. A
manager not only knows how to do the job correctly but also can get the things done correctly from
others.
5. (a) Planning, Organizing, Leading and Controlling
These are the fundamental functions of the management.
6. (a) Money, Men, Materials, Methods, Machinery and Time
These are the fundamental resources of a management.
7. (a) Frontline, Middle Level and Top Level
There are only three levels of management.
8. (a) 3
These are the fundamental skills to be possessed by the manager.
9. (a) Inter personal, Decision making and Information
These are the fundamental rules classified by Mintzberg.
10. (a) Figure head, Leader and Liaison
These involve transactions with the human beings and each manager should know how to deal with
everyone one else individually.
11. (c) Fredrick Taylor
The Scientific Theory says people are rational and are motivated primarily by the desire of material
wealth. Taylor said in his theory economic and physical needs play a dominant role in an employee’s
life.
12. (a) Union is strength
The employees believe that their individual objective could be achieved by the strength of the union
against all obstacles.
13. (a) Planning, Organizing, Staffing, Directing and Controlling
These are the fundamental operations.
14. (b) Henry Fayol
Henry Fayol said that promoting team spirit will build harmony and unity within the organization.
15. (a) Fredrick Taylor
16. (b) Henry Gantt
He introduced an incentive plan for every worker who reached the daily standards and if all the workers
under foremen would reach the daily standard then the foremen would get extra bonus. This would
motivate foremen to train workers to perform the tasks efficiently.
Principles of Management: Practice Paper

17. (a) Bureaucratic Management

According to Weber bureaucracy is a highly structured formulized and impersonal organization. An
organization should have a defined structure managed by defined regulations and line of authority.
18. (c) Both (a) and (b)
This theory says people were rational and were motivated primarily by the desires of the employees.
Therefore Fredrick Taylor says that the management should emphasize the economic and physical needs
of the employees.
19. (a) Elten Mayo
Human Beings are not machines they have lives. The theory recognize the importance of relations
among the participants and the employees would work better if management was concerned about the
welfare and the supervisors paid special attention to them.
20. (c) Contingency Theory
This theory recognizes that no single principle can be used to manage all the situations equally well. A
manager should be able to identify the situation, interpret them and apply the suitable solution for each
problem.
21. (d) To install a coffee vending machine in the office
If coffee vending machine is available anyone can have as many coffees as he wants without going out
and without losing time
22. (a) System Theory
A System is a group of parts that operate as whole to achieve a common objective. The System approach
gives the managers a new way of looking at an organization as whole and as a part of the larger, external
environment.
23. The correct option is (a)
The theory ‘X’ & Theory ‘y’ were propounded by Douglas McGregor and Theory ‘Z’ was propounded
byWillium Ouchi.
24. (a) by Chrys Argrys
25. (a) Who are affected by the organization’s pursuit of objectives
26. (d) Chain of Command
A chain means continuous links And here the command flows continuously from the top most to the
lowest in a sequential manner without leaving any position of authority out so that every one in the line
is aware of the decision taken
27. (d) Inefficiency in management
When things are not done exactly in the manner it is expected then company cannot make profit. The
reason why companies fail is people do not take things seriously & do the things carelessly, resulting in
losses.
28. (c) Authority
Authority is power to do an act. Without power one can not do anything &obviously cannot achieve the
objectives.
29. (c) Effective Strategies
Strategies are the special way of achieving the goal. If the strategies are not effective whatever may be
the motivation levels or nature of objectives goals of the organization cannot be achieved.
30. (a) Competitive Advantage.
When we compete with other competitors in the market we should have some special qualities with other
do not have. These special qualities are advantages over other hence it called competitive advantage.
 Multiple Choice – Answers and Explanations

31. (d) Controlling

Controlling is a function to check whether actions are being taken as per plans if not taking correction
were ever necessary
32. (d) Controlling
Controlling is a function to check whether action is being taken as per plans if not taking correction was
ever necessary.
33. (d) Controlling
Since he is comparing the agreed performance with the actual performance & correcting the measures
taken wherever necessary.
34. (a) Spokesperson
Manager represent a company to all the external customers and he speaks on behalf of the company he
does not speak individually he speaks only what company asks him to speak
35. (d) All the above
The basic skills necessary for a manger to be successful are human resource skill technical skill and
conceptual skill hence a successful manages should have all the 3 skills.
36. (d) Checking whether the performance is in accordance with plans
Controlling is the function to check whether actions are taken as per plans and if not correction is made
necessary.
37. (c) Organizing
Organizing is a function which divides a plan into various task and selecting suitable people to perform
the function and grinding them necessary authority.
38. (d) Increase job responsibilities and job satisfaction of the employees
Since the employees may get bored in doing the same jobs again & again and the motivation of the
employees may go down. If the jobs are enriched the employees may get additional responsibility yet
they may be rejuvenated & get a fresh motivation to work.
39. (c) The ability to influence the behavior of others
The concept of power is given only to help you to get the job done by others. This is possible only when
you can make others behave as you want, i.e., when you can influence others.
40. (c) Setting the goals in consultation with the sub ordinates and evaluating the performances
frequently and introducing necessary corrections.
The propose of MBO is to make Avery one participate not only setting objectives but also work for the
achievement of the objectives hence manager takes the confidence of the employees and guides them to
perform and achieve.
41. (b) Matrix Organization
Matrix organization is nothing but a single manager to supervise a multiple specialized function done by
respective specialist.
42. (c) Centralization
In this method all the powers of decision making are kept with the top management only.
43. (a) Charles Babbage
Charles Babbage thought each worker should be trained in with one specific skill and made responsible
for that part of the operation this will improve the skill and efficiency further he advised that employees
should share the profit since the employees interest & the management interest were interlink.
Principles of Management: Practice Paper

44. (c).Top Level Managers

The conceptual skill means and includes as to how the future of organization should be. This should be
the concern of the top level management the loyal level management concentrates on the implementation
of the discussion taken at the top level.
45. (c) Single Use Plan
Budget is numerical plan of action for a known period of time generally one year for an organization at
the end of a year this is verified with actual performance at the end of the year. It acts as a guide and it
not used again hence it is use as a single use plane.
46. (c) Geographic
Science the divisions are based on regions that is geographic.
47. (c) Identification of the problem or the difficulty experienced
The reason is simple; it is possible to solve the problem only when you can know the problem exactly. If
the problem is not known it is like administering wrong medicine. Hence identify the problem first, then
solve.
48. (d) Liaisoning Officers
A HR manager is a link between top management and employees and he conveys the mind of the top
management to the employees.HR manager cannot take diction by himself hence he can only act as an
link between the top management and employees hence its action is Liaisoning.
49. (d) All the above.
Before actual planning is taken up an organization should frame the goals first the analyses weather
necessary resources all available if not how to get them then identify the opportunities’ and the threats in
the achieving the goals.
50. (d) Interpersonal skills
The acts of motivation communication and delegation will depend up on individual respond. A manager
in order to be successful must know his employees individually and exercise the skills this is called
interpersonal skills.
51. (d) Resource Allocator.
One of the basic resource is human resource when Mr. Ramesh is sending additional officer he
allocating more of the human resource necessary to achieve the target hence he is acting as a resource
allocator.
52. (c) Controlling
Controlling is a function to ensure action are taking place as per the plan if not necessary corrections are
made.
53. (b) Unity of command
In any organization no single employees repot to not more than superior. if not employees will not be
carry out the instruction of any of the superior hence there should be only one command for each
subordinate.
54. (b) Making goals very difficult to achieve
Motivation is a process by which a manager has to make each worker do a little more than he normally
he does .Therefore he cannot make the job very difficult to achieve.
55. (d) All the above options
A global market means entire world and as a result a organization has to transact with more than single
country and grow dramatically.
56. (d) Expert Powers.
Expert Power is a power a person derives from his special knowledge.
 Multiple Choice – Answers and Explanations

57. (c) Delegations

Delegation is process where in person transfers his job another and make him to do.it
58. (b) Decentralized
When the top management has confidence in the ability of lower management to take decision they
authorise them .to take decisions. The lower lever management need not take specific permission for any
decision they take.
59. (d) All the above
It is necessary for a manager to set the goals and achieve the goals through the employees. This can be
done only when the employees willingly participate in the working .They will do when they are sure of
getting reward and a chance to participate in the management process.
60. (c ) A Manager.
A Manager is a person who has given the task of achieving the objective of the organization and it is his
duty to the get work done through the subordinates.
61. (d) All the above three.
A manager before make the decision he should know the problem and various ways of solving and
before he chooses he should evaluate each choice.
62. (d) To improve the employee motivation.
The purpose of MBO is to provide an opportunity to every employee to feel he is important to the
organization and also realize its potential. This motivates the employees.
63. (d) Risky.
A future uncertain event which can produce a financial loss is called a risk. So when a manager takes a
decision whose outcome is not known it can also result in financial loss hence it is risky.
64. (c) Quantitative & Qualitative.
Any forecast should be able to provide information about the quantity for benefit and also the quality of
the benefit.
65. (b) Consensus
Consensus is a method where every member is made to understand the need of the situation & every one
willingly comes forward to adjust, understand & compromise his stand so as to achieve the common
purpose.
66. (d) Chester Bernard.
According to Chester Bernard One’s authority is valid only when somebody is willing to obey or accept
the instruction .If the instructions are not accepted then there authority. is not valid
67. (b) Personality
The culture of an organization depends upon the attitude, values, heredity and behavior of individual
employees hence the organizational culture depends on the personality of the individual
68. (b) Abraham Maslow
Abraham Maslow was the first person to identify the five basic basic needs of an individual and arrange
them in a hierarchy. This theory called the Hierarchy of needs.
69. (d) To Influence.
Power is the authority to get the work done this is possible only when a manager can influence the
employees to carry out the tasks.
70. (b) Strengths, Weaknesses, Opportunities, threats.
This analysis will give an organization as to the areas that can be improved and area which can be
explored and area to be cautiously overcome in order to achieve target.
Principles of Management: Practice Paper

71. (a) Functional

It is bifurcation based on the function of the organization.
72. (a) Reward power
Reward power is a manager power that can get benefit to employees if the employees obey the
instructions
73. (a) Legitimate power
Legitimate power a power a person gets by occupy a section potion in an organization he does not have
relevant knowledge in that
74. (a) Legitimate Authorities
The security guard get authority to question anyone how comes into the premises science guard is
responsible for responsible for the organization. He gets power by virtue of been a security guard.
75. (b) Decentralization
Decentralization means authority to take decision at lower level. How much of authority can given
depends up on how willing the employees.
76. (a) Organizational Design
Design is a process of deciding the shape and size of an organization so the organization decides the
structure of an organization.
77. (d) Using all the above strategies.
Better customer service, developing new features and creating a band image are some of the common
strategies adopted by various organizations to beat the competitors.
78. (a) Policies of the Organization
Any decision taken by the manager should be according to the policy of organization falling
organization looses the image in the market.
79. (a) Responsibility
When a subordinate gets an assignment he is compelled to complete and he has conscience to remind
that he is committing a mistake by not doing it.
80. (d) All the above three.
The power in an organization is classified as Reward power coerciver power legitimate power referent
power expert power.
81. (d) All the above three.
Consulting a devil’s advocate is a process of reaffirming the decision taken by cocedering the biases,
assumptions and the discorded options so that the decision taken is correct.
82. (d) All the above.
An organization should use an strategy which can emprises the overall cost of leadership, differentiation
and focus on the objective in the organization.
83. (c) Uncertainty
A decision can be programmed only when all the attributes of problem are certainly known but when the
attributes remain or unknown the decision cannot be programmed.
84. (a) Common & frequently occurring problems
When the lower level managers while caring out the task face problems most of this are common are
frequently recurring in this cases the decision are framed by the ,manager and this are the programmed
decision.
85. (d) All the above three.
The aim of Organizing is to achieve the organization goals. This is done by developing a defined
structure of goals organizational performance through coordinating control efforts.
 Multiple Choice – Answers and Explanations

86. (d) All the above three.

Normally subordinates do not want to be accept the delegation because they do not like criticism from
others, they don’t have confidence and they do not get any reward for accepting delegation.
87. (d) All the three above.
The managers do not want to delegate since he feels he can do better he doesn’t have the ability to guide
us.
88. (d) All the above.
The purposes of delegation are to develop better decision taking abilities among the subordinates,
develop the better performance by subordinates by training and developing them.
89. (a) Number of Subordinates a manager can effectively supervise
A manager has to supervise the working of the subordinates effectively .if the number of subordinates
are more it may not be possible for the manager to effectively supervise.
90. (d) All the three above.
Reason are either the time and energy of an manager ability to deal the problems or limited some
subordinate has a fancy to report to the top boss.
91. (d) All the three above.
The reason is greater the number greater the inaccuracy, layering and lack of enthusiasm in the part of
subordinates.
92. (c) Frederic Hertzberg
Frederic Hertzberg considered company policy administration, supervision working, and condition, inter
personal relation salary status job security and personal life as factors which affect the motivation of the
employees.
93. (d) All the above three.
The process of Control means establishing the standards for measurement, measuring the performance,
take corrective measures wherever necessary so that objectives are achieved
94. (b) Results oriented
A success full organization will definitely concern itself with only the results of the efforts and noting
else.
95. (c) Controlling
Unless the front line manager ensures the correct way of performing the tasks of the organization will
not succeed.
96. (c) Both (a) & (b) above
Any progressive organization must look out for changes in the organization due to either economic
factor or technical factors both this factors keep changes time to time.
97. (b) Planned Change
A planned change not only intentional it is pre meditated and considered after consulting the people
concerned .Only when alternative is acceptable it will be implemented.
98. (a) Stabilize
Refreezing is a process to stabilize a change in intervention by balancing driving and restraining forces.
99. (a) State of Equilibrium
Unfreezing is an effort to overcome the pressure of both individual resistance and group conformity
there by bringing about a state of equilibrium in the organization.
100. (d) All the above three options.
The human resource management menace managing human resources with tanning recruited employ
compensation so that people are happy achieve the objectives.