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Business Quiz for Management Principles - 68

1. Planning is a prerequisite not only for achieving success but also for surviving in a complex and competitive world. Planning gives direction, reduces the impact of change, minimizes waste and redundancy, and
[A]Sets the standards used in controlling
[B]Eliminates departments that are found to be not needed within the plan
[C]Sets the basis used for promotion of individuals within the organization
[D]Establishes the workloads for each of the departments


2. Organizing is a continuous process of determining
I. Which tasks are to be performed?
II. How individuals can be motivated to perform tasks?
III. How tasks can be grouped into jobs and various units?
IV. What are the authority and reporting relationships?
[A]Both (I) and (III) above
[B]Both (I) and (IV) above
[C]Both (III) and (IV) above
[D](I), (III) and (IV) above


3. Andrew Ure and Charles Dupin were prominent contributors to preclassical management thought. Which of the following did they advocate/propose?
[A]Division of labor
[B]Legislative reforms to improve working conditions of labor
[C]Profit-sharing plan
[D]Management education


4. Which of the following are characteristics of Weber’s Ideal bureaucracy?
I. Working for maximum output.
II. Specialization of labor.
III. Obtaining harmony in group action.
IV. Well-defined hierarchy.
V. Career advancement based on merit.
[A]Both (I) and (III) above
[B]Both (II) and (V) above
[C]Both (III) and (V) above
[D](II), (IV) and (V) above


5. The strengths and weaknesses of each alternative become obvious in which step of the decision making-process?
[A]Identifying the problem
[B]Identifying the decision criteria
[C]Analyzing the alternatives
[D]Implementing the alternative


6. Strategy “Guru” Michael E. Porter developed the “five competitive forces” model in order to analyse the nature and intensity of competition in a given industry. The profit potential available to business operating in a particular industry is directly affected by the collective strength of these forces. Which of the following is not one of Porter’s five competitive forces?
[A]Threat of substitutes
[B]Threat of technological advances
[C]Threat of new entrants
[D]Bargaining power of suppliers


7. In a business situation things are so complex, that without proper plans this complexity cannot be handled. Planning is a prerequisite not only for achieving success but also for surviving in a complex and competitive world. Which of the following is not a characteristic of planning?
[A]It is goal-oriented
[B]It is a secondary function
[C]It is an intellectual or rational process
[D]It is forward-looking


8. The major disadvantage of the divisional structure is
[A]Diseconomies of scale
[B]Requires people with general managerial capabilities
[C]Managerial vacuum
[D]Duplication of activities and resources


9. Major decisions in organizations are most often made by groups rather than a single individual. Group decision-making is the norm in most large and complex organizations. There are both advantages and disadvantages of group decision-making. Which of the following would generally not be considered an advantage of group decision-making?
[A]Groups generally come up with more and better decision alternatives than an individual
[B]The members of the group tend to support the implementation of the decision more fervently than they would if the decision had been made by an individual
[C]A group can bring much more information and experience to bear on a decision or problem than an individual acting alone
[D]The group is more likely to use "groupthink" when coming to a decision


10. Division of labor tends to result in
[A]Human motivation
[B]Revolt from workers
[C]Specialized work
[D]Decreased work skill


11. Social responsiveness refers to the development of organizational decision processes that enable managers to anticipate, respond to and manage the areas of social responsibility. The social responsiveness of an organization can be measured on the basis of which of the following criteria?
[A]Contributions to profit-oriented projects
[B]Fair treatment of employees; fair pay and safe working conditions
[C]Biased employment opportunity
[D]Questionable quality products to customers


12. The repetitive process by which an organization receives inputs from its environment, processes them and produces the output required by a system is called
[A]Negative entropy
[B]Dynamic homeostasis
[C]Feedback
[D]Cycle of events


13. Power is a much broader concept than authority, and it is the ability of individuals or groups to induce or influence the beliefs or actions of other persons and groups. Power can be derived from many sources. The manager’s source of power that comes directly from his formal position within the organization is called
[A]Advisory
[B]Expert
[C]Reward
[D]Legitimate


14. Carrying out strategic plans involves synchronization of major internal elements. Which of the following is not one of these elements?
[A]Technology
[B]Human resources
[C]Structure
[D]Strategic control system


15. Which of the following is/are mechanisms for ethical management?
I. Code of ethics.
II. Ethics hot line.
III. Adhering to golden rule.
IV. Allowing room for participation.
[A]Only (I) above
[B]Both (I) and (II) above
[C]Both (III) and (IV) above
[D](I), (II) and (IV) above


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