Complete Solved Paper MGT503- Principles of Management FinalTerm VU Paper 2008

FINALTERM  EXAMINATION

Fall 2008

MGT503- Principles of Management (Session - 2)

Time: 120 min

Marks: 85

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Question No: 1    ( Marks: 1 )    - Please choose one

 Which of the following statement shows the starting point in strategic management process?

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       ► Analyzing current mission, strategies and objectives (Correct)

       ► Identifying opportunities and threats

       ► Conducting an environmental scan

       ► Identifying opportunities and weaknesses

   

Question No: 2    ( Marks: 1 )    - Please choose one

 The supplies or raw materials needed to create a product are called:

 

       ► Outputs

       ► Investments

       ► Processes

       ► Inputs (Correct)

   

Question No: 3    ( Marks: 1 )    - Please choose one

 To maximize the speed of communication, managers should use which of the following networks?

       ► Social

       ► Neural

       ► Chain

       ► Wheel

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Question No: 4    ( Marks: 1 )    - Please choose one

 Which of the following is selected by the source and may be formal for job-related messages or informal for personal or social messages?

►Message

►Channel

►Feedback

►Noise

   

Question No: 5    ( Marks: 1 )    - Please choose one

 Tone of voice, posture and nonverbal facial expressions are examples of which of the following?

       ► Body language (Correct)

       ► Feelings

       ► Formal communication

       ► Informal Communication

   

Question No: 6    ( Marks: 1 )    - Please choose one

 All of the following are advantages of oral communication EXCEPT:

       ► It is easy to use

       ► It is accurate (Oral)

       ► It facilitates feedback

       ► It can be done with little preparation

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Question No: 7    ( Marks: 1 )    - Please choose one

 Which of the following leaders provide vision and sense of mission, instill pride and gain the respect and trust of their followers?

       ► Transactional

       ► Charismatic

       ► Supportive

       ► Directive

   

Question No: 8    ( Marks: 1 )    - Please choose one

 Women tend to use which of the following leadership style?

       ► Autocratic

       ► Laissez-faire

       ► Dictatorial

       ► Democratic (Correct)

   

Question No: 9    ( Marks: 1 )    - Please choose one

 A leader who involves employees in decision making, delegates authority and allows employees to have direct input into the final decision is using which of the following leadership style?

       ► Democratic-participative

       ► Laissez-faire

       ► Autocratic

       ► Democratic-consultative

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Question No: 10    ( Marks: 1 )    - Please choose one

 According to Herzberg's Motivation-Hygiene Theory, which of the following is NOT a motivator?

       ► Recognition

       ► Responsibility

       ► Advancement

       ► Status (Correct)

   

Question No: 11    ( Marks: 1 )    - Please choose one

 "Employees dislike work, they are lazy, dislike responsibilities and must be coerced to perform". Which of the following best describes this statement?

       ► Hygiene Factor Theory

       ► Resistance theory

       ► Theory X (Correct)

       ► Two factors theory

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Question No: 12    ( Marks: 1 )    - Please choose one

 According to Maslow's hierarchy of needs, which needs are predominantly satisfied internally?

       ► Safety

       ► Esteem (Correct)

       ► Physiological

       ► social

   

Question No: 13    ( Marks: 1 )    - Please choose one

 What should a manager do while motivating employees?

       ► Increase wages and salaries

       ► Incorporate promotional opportunities

       ► Recognize individual differences (Correct)

       ► Use employee-recognition program

   

Question No: 14    ( Marks: 1 )    - Please choose one

 Which of the following factor is more important for men than women?

       ► Opportunity to learn

       ► Flexibility

       ► Autonomy (Correct)

       ► Convenient

   

Question No: 15    ( Marks: 1 )    - Please choose one

 All of the following factors are the most challenging for the managers in today’s competitive world EXCEPT:

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       ► Meet the market demand of products

       ► Motivating competitors to do work efficiently

       ► Facing the competition

       ► Environmental uncertainty (Correct)

   

Question No: 16    ( Marks: 1 )    - Please choose one

 Which of the following organization has a limitless span of control?

       ► Learning (Correct)

       ► Boundaryless

       ► Team

       ► Matrix

   

Question No: 17    ( Marks: 1 )    - Please choose one

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

       ► Tall Structure (correct)

       ► Flat Structure

       ► Matrix Structure

       ► Divisional Structure

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Question No: 18    ( Marks: 1 )    - Please choose one

 A company would have a characteristic of a mechanistic organization if:

       ► It contained cross-functional teams

       ► It had narrow spans of control (Correct)

       ► There is low formalization

       ► There is a free flow of information

   

Question No: 19    ( Marks: 1 )    - Please choose one

 Which of the following processes allows lower level employees to be involved in decision-making?

       ► Departmentalization

       ► Unity of command

       ► Span of control

       ► Decentralization (Correct)

   

Question No: 20    ( Marks: 1 )    - Please choose one

 Identify the organizational design process which has a potential weakness that, managers will not be able to provide necessary leadership and support?

       ► Span of control

       ► Decentralization (Correct)

       ► Departmentalization

       ► Chain of command

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Question No: 21    ( Marks: 1 )    - Please choose one

 An organization that wants to be more responsive to changes in its environment, especially to customers, is likely to have which kind of organization structure?

       ► Decentralized

       ► Very formal and rule oriented

       ► Highly centralized

       ► Mechanistic (Correct)

   

Question No: 22    ( Marks: 1 )    - Please choose one

 Employees with more training and experience are able to work with less direct supervision which is the characteristics of which of the following?

       ► Wide span of control and a flatter organization

       ► Violates Fayol’s principle of chain of command

       ► A highly centralized organization

       ► Very narrow span of control and more levels of managers (Correct)

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Question No: 23    ( Marks: 1 )    - Please choose one

 Explicit job descriptions and clearly defined procedures are part of which of the following organizational design process?

       ► Formalized (Correct)

       ► Process

       ► Centralized

       ► Functional

   

Question No: 24    ( Marks: 1 )    - Please choose one

 The accounting department in an organization is an example of which of the following?

       ► Product departmentalization

       ► Customer departmentalization

       ► Functional departmentalization (Correct)

       ► Geographical departmentalization

   

Question No: 25    ( Marks: 1 )    - Please choose one

 In BCG matrix which of the following businesses have a large share of a market that are not expected to grow substantially?

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       ► Dogs

       ► Question mark

       ► Star

       ► Cash cow (Correct)

   

Question No: 26    ( Marks: 1 )    - Please choose one

 A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services is called:

       ► Deliberate strategy

       ► Differentiation strategy

       ► Emergent strategy

       ► Focus Strategy (Correct)

   

Question No: 27    ( Marks: 1 )    - Please choose one

  ABC Company is in the process of buying a smaller competitor and incorporating that company's resources into his business. This is an example of which of the following types of strategies?

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       ► Merger

       ► Stability

       ► Retrenchment

       ► Acquisition (Correct)

   

Question No: 28    ( Marks: 1 )    - Please choose one

 Which one of the following is a strength of MBO?

       ► Overemphasis of quantitative goals

       ► Requires training of employees (Correct)

       ► Clarify priorities and expectation

       ► Tends to falter without strong commitment

   

Question No: 29    ( Marks: 1 )    - Please choose one

 Most managers believe that if an MBO (management by objective) program is to be successful, it must start at:

       ► Non-managerial level

       ► Top Level

       ► Middle level (Correct)

       ► Lower level

   

Question No: 30    ( Marks: 1 )    - Please choose one

 Organizations that exploit their distinctive competencies often attain above normal economic performance and obtain which of the following?

       ► Distinctive competencies

       ► Common strength

       ► Competitive edge (Correct)

       ► Competitive parity

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Question No: 31    ( Marks: 1 )    - Please choose one

 Which of the following is a strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals?

       ► Effective strategy

       ► Scope

       ► Emergent strategy (Correct)

       ► Deliberate strategy

   

Question No: 32    ( Marks: 1 )    - Please choose one

 Sony Recently set a goal of reducing its reliance on the consumer electronics market. Manager believes that the volatile nature of market made reliance too risky. It comes under which of the following goals?

       ► Strategic goal (Correct)

       ► Operational goal

       ► Tactical goal

       ► Personal goal

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Question No: 33    ( Marks: 1 )    - Please choose one

 Mission Statement of Hoover Universal Inc is:

“Hoover universal is a diversified multi-industry corporation with strong manufacturing capabilities, entrepreneurial policies and individual business unit autonomy”

 This statement shows which of the following attributes of mission statement?

       ► Customers

       ► Location

       ► Self concept

       ► Desired public image (Correct)

   

Question No: 34    ( Marks: 1 )    - Please choose one

 Competitor intelligence allows managers to do which of the following?

       ► React to competitor actions

       ► Cut cost below the competition

       ► Increase market diversification (correct)

       ► Predict competitor actions

   

Question No: 35    ( Marks: 1 )    - Please choose one

 Tactical and strategic plans differ in all of the following ways EXCEPT:

       ► Time frame

       ► Scope

       ► Known set of organizational objectives

       ► Environmental effects (correct)

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Question No: 36    ( Marks: 1 )    - Please choose one

 A single use plan of less scope and complexity which may be a part of broader program or may be a self contained plan is called:

       ► A Program

       ► A project (Correct)

       ► A policy

       ► A rule

   

Question No: 37    ( Marks: 1 )    - Please choose one

 When a manager evaluates alternatives, selects it and then goes on to other problems without considering the remaining rational alternatives, it is known as:

       ► Optimizing

       ► Satisficing

       ► Bounded Rationality (Correct)

       ► Rational decision-making

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Question No: 38    ( Marks: 1 )    - Please choose one

 Suppose you need a subject to take in order to graduate. There are five different courses you could take. You call one friend and on the basis of her excellent experiences in mathmatics, you choose it. Which of the following would best describe this situation?

       ► Bounded rationality

       ► Unbounded rationality

       ► Escalation of commitment

       ► Rational decision-making (Correct)

   

Question No: 39    ( Marks: 1 )    - Please choose one

 Only employees with top-secret clearance may enter the sealed room, is an example of which of the following?

       ► Rule (Correct)

       ► Procedure

       ► Policy

       ► Plan

   

Question No: 40    ( Marks: 1 )    - Please choose one

 "Whenever possible, we promote from within" is an example of which of the following?

       ► Rule

       ► Procedure (Correct)

       ► Policy

       ► Plan

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Question No: 41    ( Marks: 1 )    - Please choose one

 Once a manager has identified a problem, the next step would be the identification of:

       ► Discrepancies (Correct)

       ► Decision criteria

       ► Scenarios

       ► Factor weights

   

Question No: 42    ( Marks: 1 )    - Please choose one

 In decision making process, ideas should  be evaluated  on the basis of:

       ► Acceptability (Correct)

       ► Durability

       ► Accountability

       ► Liability

   

Question No: 43    ( Marks: 1 )    - Please choose one

 All of the following are the assumptions of rational decision making EXCEPT:

       ► Alternatives are known

       ► Possible outcomes known

       ► Optimal decision is possible

       ► Information is unknown (Correct)

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Question No: 44    ( Marks: 1 )    - Please choose one

 The choice of alternative is influenced by the limited amount of information available to the decision maker and by the psychological orientation of the decision maker under the conditions of:

       ► Certainty

       ► Uncertainty

       ► Risk

       ► Intuition (Correct)

   

Question No: 45    ( Marks: 1 )    - Please choose one

 All of the following are Dimensions of organizational culture EXCEPT:

       ► Innovation

       ► Aggressiveness

       ► Stability

       ► Customer orientation (Correct)

   

Question No: 46    ( Marks: 1 )    - Please choose one

 Which of the following is called an input to a system?

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       ► Human (correct)

       ► Products

       ► Services

       ► Employee behavior

   

Question No: 47    ( Marks: 1 )    - Please choose one

 Group of studies that was conducted at Western Electric's during 1920 and 1930 are called:

       ► Social studies

       ► Moral studies

       ► Ethical studies

       ► Hawthorne studies (Correct)

   

Question No: 48    ( Marks: 1 )    - Please choose one

 Which of the following is NOT one of Fredrick Taylor's four principles of management?

       ► Avoid cooperation with workers (Correct)

       ► Scientifically select and then train workers

       ► Divide work and responsibility

       ► Study tasks scientifically and develop best method to perform it

   

Question No: 49    ( Marks: 1 )    - Please choose one

 Which of the following theory describes that effective group performance depends on the proper match between the leader's style of interacting with employees and the degree to which the situation gives control and influence to the leader?

       ► Fiedler's contingency model

       ► Path-goal theory (Correct)

       ► Hersey and Blanchard's model

       ► The Ohio State studies

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Question No: 50    ( Marks: 1 )    - Please choose one

 A leader who emphasizes the technical aspects of the job and is concerned with accomplishing the group's tasks is said to be _____ according to the University of Michigan studies.

       ► Employee-oriented

       ► Initiating

       ► Considerate

       ► Production-oriented

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Question No: 51    ( Marks: 5 )

 List and explain the barriers to effective communication.

Answer:

• Filtering is the deliberate manipulation of information to make it appear more favorable to the receiver. For example, as information is communicated up through the organizational levels, it’s condensed and synthesized, and those doing the condensing filter communication through their personal interests and perceptions of what are important.
• Selective perception is when people selectively understand what they see or hear on the basis of their interests, background, experience, and attitudes.
• Emotions control how a recipient understands a message when it is received. It’s best to avoid Reacting to a message when the receiver is upset because he/she is not likely to be thinking clearly.
• Information overload happens when the information we have to work with exceeds our
• Processing. Receivers tend to select out, ignore, or forget information when they have too much information. or, receivers may put off further processing until the overload situation is over—still ineffective communication.
• Defensiveness—engaging in behaviors such as verbally attacking others, making sarcastic remarks, being overly judgmental, and questioning others’ motives.
• Language—words mean different things to different people. Age, education, and cultural background can influence language use and definition given to words. Jargon is specialized terminology or technical language that members of a group use to communicate among themselves.
• National culture can affect the way a manager chooses to communicate.

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Question No: 52    ( Marks: 10 )

 Describe the significant workplace issues that affect motivation in today's workforce.

   

Question No: 53    ( Marks: 10 )

 Explain the emerging issues in organization design.

Answer:

Following points can be considered as emerging issues in today’s managerial structure or designs.

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• Team-based structures: One of the newer concepts in organizational design in which structure made up of work groups or teams that performs the organization’s work.
• Matrix organization assigns specialists from different functional departments to work on one or more projects being led by project managers.
• Project structure, is a structure in which employees are permanently assigned to projects.
• Autonomous Internal Units: Some large organizations have started adopting this structure. It is a design in which there are independent, autonomous decentralized business units, each with its own products, clients, competitors, and profit goals.
• The Boundary less Organization: Another approach to organizational design. It describes an organization whose design is not classified by, or limited to the horizontal, vertical, or external borders imposed by a predefined configuration.
• Learning Organization: An organization that facilitate the life long learning and growth of its workforce while renovating itself to react to changing demands and needs of market.

   

Question No: 54    ( Marks: 10 )

 Suppose you are a manager in 'Unilever Pakistan' and you have been assigned the task of conducting SWOT analysis of 'Unilever Pakistan'. What could be your findings after completing this task?

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Answer:

The SWOT analysis involves assessing organization

(S) Strengths is an internal characteristic that has the possibility of improving the organization’s competitive state of affairs.

(W) Weaknesses is an inner quality that leaves the organization potentially at risk to tactical moves by rivals.

(O) Opportunities is an ecological condition that offers momentous prospects for improving an organization’s situation comparative to rivals.

(T) Threats is an ecological condition that offers momentous prospects for undermining an organization’s competitive state of affairs.

Now, Uniliver Pakistan’s findings as under.

Uniliver Pakistan’s one of the major strength is its multinational presence, Aggressive Marketing, Chain of command, Managerial structure.

Weakness is that chain of command is not clear among employees. Individuals are trying to give individual performances instead of doing in a team work. Where as the rivals have an edge in this field and that can put behind Unilivers presence in the market.

Uniliver is always very aggressive in encashing opportunities available in the market.

Rivals new marketing strategy is a big threat to Unilivers presence in the market. They can come up with these threats by improving environmental conditions.

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