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MBA Quiz Questions with Answers (Management Quiz - 63)

1. Companies can achieve a sustainable competitive advantage with
I. Non-physical assets, such as customer database information.
II. Online ordering systems and other continual product and process innovations.
III. Employee knowledge sharing.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]All (I), (II) and (III) above

2. Unlike the rational view, several non-rational models of managerial decision-making suggest that limitations of information gathering and information-processing make it difficult for managers to make optimal decisions. In which of the following situations, is the garbage-can model of decision-making more appropriate?
[A]When managers do not have a goal preference
[B]When managers do not have adequate information
[C]When managers are unable to remember large amounts of information
[D]When managers ignore critical information

3. Centralisation is the systematic and consistent reservation of authority at central points within an organization. Which of the following characteristics makes centralisation more appropriate?
[A]The environment is complex and uncertain
[B]Decisions are relatively minor
[C]Lower level managers are capable and experienced decision-makers
[D]Lower level managers are reluctant to be involved in decision-making

4. Which of the following refers to the practice of employees deliberately working at a slower pace than their capabilities?
[B]Bounded rationality
[D]Espirit de corps

5. Decision-making is the process by which a course of action is selected so as to deal with a specific problem. Which of the following stages in the decision-making process attempts to understand the performance gap between predicted or expected level of performance and the actual level?
[A]Problem identification stage
[B]Resources and constraints identification stage
[C]Alternative evaluation stage
[D]Alternative selection stage

6. Which of the following is an organizational requirement with respect to Porter’s cost leadership strategy?
[A]Strong coordination among functions in R&D, product development and marketing
[B]Subjective measurement and incentives
[C]Amenities to attract skilled labor
[D]Incentives based on meeting quantitative targets

7. Which of the following is defined as the possibility that individuals selected to participate in a study may show higher productivity only because of the added attention they receive from the researchers rather than any other factor being tested in the study?
[A]Bank wiring observation
[B]Hawthorne effect
[C]Halo effect
[D]Illumination effect

8. Span of management includes
I. Assigning equal number of subordinates to managers at the same level.
II. Assessing employee skill and motivation levels.
III. Determination of how many people working with each other report to a single manager.
IV. Determination of the number of individuals a manager can effectively supervise.
[A]Only (II) above
[B]Only (IV) above
[C]Both (I) and (III) above
[D]Both (III) and (IV) above

9. Functional authority violates the principle of
[A]Unity of command
[B]Specialized knowledge
[D]Unity of direction

10. The anticipated environment in which plans are expected to operate is known as
[A]Macro environment
[B]Micro environment
[C]Planning premise
[D]Open system

11. From the viewpoint of staff personnel, major reason(s) for line-staff conflict is that line personnel
I. Do not make proper use of staff personnel.
II. Resist new ideas.
III. Do not give staff personnel enough authority.
IV. Lack a first-hand experience of operations.
[A]Only (I) above
[B]Only (II) above
[C]Both (III) and (IV) above
[D](I), (II) and (III) above

12. It is essential that an organization clearly defines every managerial position. Which of the following is not a benefit of position descriptions?
[A]They identify duties and responsibilities that are overlapping or neglected
[B]They help in deciding upon the organization design
[C]They provide guidance regarding candidate requirements, salary levels and training needs of new employees
[D]They help managers determine the tasks to be done and the employees who should do them

13. Which of the following is a term coined by Gilbreths to refer to the seventeen basic hand motions they identified while carrying out motion studies?

14. The management function of organizing involves determining
I. Tasks to be performed.
II. How tasks can best be combined into specific jobs.
III. Authority and reporting relationships within the corporate hierarchy.
IV. Promotions and career planning.
[A]Both (I) and (III) above
[B]Both (II) and (IV) above
[C](I), (II) and (III) above
[D](II), (III) and (IV) above

15. Changes occur in the internal environment or external environment, no matter what management does. Planning cannot eliminate change, but managers usually plan in order to
[A]Decide what needs to be done when a change in environment takes place
[B]Anticipate changes and develop the most-effective response to changes
[C]Have the appropriate materials available when the demand for them comes about
[D]Be prepared for when changes in management at the top occur


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