MGT503- Principles of Management Solved Complete Past Paper Final Term 2008

FINALTERM  EXAMINATION

Fall 2008

MGT503- Principles of Management (Session - 1)

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

 Value chain partners are part of which of the following component of Value Chain Management.

       ► Technical investment

       ► Leadership

       ► Coordination and Collaboration

       ► Planning

   

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

 The process of managing the entire sequence of integrated activities and information about product flow is called:

       ► Total Quality Management

       ► Supply Chain Management

       ► Kaizen

       ► Value Chain Management

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

 Control that prevents anticipated problems is called:

       ► Feed forward control

       ► Concurrent control

       ► Feedback control

       ► Management control

   

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

 The organizational communication network that uses internet technology and allows authorized users inside the organization to communicate with certain outsiders such as customers or vendors is called:

       ► Intranet

       ► Extranet

       ► Videoconference

       ► E-mail

   

Question No: 5    ( 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: 6    ( Marks: 1 )    - Please choose one

 According to Fiedler, in moderately favorable situations which of the following leader performs better?

       ► Structure oriented

       ► Position oriented

       ► Production oriented

       ► Relationship oriented

   

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

 The recent survey depicts that in the opinion of employees the most powerful workplace motivator is:

       ► Flextime

       ► Recognition

       ► Goals

       ► Salary

   

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

 Which theory includes the component that employee motivation is influenced by relative as well as absolute rewards?

       ► Expectancy

       ► Three-needs

       ► Goal-setting

       ► Equity

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

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

       ► Working Conditions

       ► Salary

       ► Relationship with supervisor

       ► Work itself

   

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

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

       ► Safety

       ► Esteem

       ► Physiological

       ► social

   

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

 Maslow's hierarchy of needs theory proposes that every person has a hierarchy of:

       ► Four needs

       ► Five needs

       ► Three needs

       ► Six needs

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

 What should a manager do while motivating employees?

       ► Increase wages and salaries

       ► Incorporate promotional opportunities

       ► Recognize individual differences

       ► Use employee-recognition program

   

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

 An unsatisfied need creates which type of emotion?

       ► Anxiety

       ► Tension

       ► Drive

       ► Pressure

   

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

 Which of the following is the best description of effort?

       ► The level of willpower towards work

       ► The measure of intensity or drive

       ► One's ability to work

       ► The work required to complete a task

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

 Contemporary organizational design includes all of the following EXCEPT :

       ► Team based structure

       ► Matrix structure

       ► Project structure

       ► Divisional structure

   

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

 Which of the following is the crucial element of team structure?

       ► Employee empowerment

       ► Faster decision-making

       ► Inexpensive to maintain

       ► Clear chain of command

   

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

 Which of the following factors influence an organization towards centralization?

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       ► Lower-level managers want a part in decision making

       ► Environment is complex and uncertain

       ► Decisions are significant

       ► Company is geographically dispersed

   

Question No: 18    ( 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

       ► Departmentalization

       ► Chain of command

   

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

 An organization that groups activities according to women's footwear, men's footwear, apparel and accessories would use which of the following departmentalization?

       ► Product

       ► Customer

       ► Geographic

       ► Functional

   

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

 What kind of departmentalization would be in place in a government organization where different public service responsibilities are divided into activities for employers, children, and the disabled?

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       ► Product

       ► Geographic

       ► Outcome

       ► Customer 

   

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

 Which of the following is not among the three perspectives that should be considered in preparing a business plan?

       ► Marketing perspective

       ► Perspective of the entrepreneur

       ► Investor perspective

       ► Technical perspective

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

 An organization's structure should facilitate which of the following?

       ► Chain of command

       ► Necessity of departmentalization

       ► Achievement of goals

       ► Span of control

   

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

 In which organizational structure employee have two  managers?

       ► Team

       ► Learning

       ► Boundaryless

       ► Matrix

   

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

 The fact that managers can become experts within their industry is a function of which kind of departmentalization?

       ► Process

       ► Geographical

       ► Functional

       ► Product

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

 Which of the following is a process by which individuals pursue opportunities, fulfill needs and wants through innovation, without regard to the resources they currently control?

       ► Small business ownership

       ► Innovative Management

       ► Entrepreneurship

       ► Privatization

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

 First step of strategic management process, the mission, answers which of the following question?

       ► What business should we be in?

       ► What is our reason for being in business?

       ► Who are our customers?

       ► Who are our creditors?

   

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

 When the hierarchy of organizational goals is clearly defined, it forms an integrated network of goals which is called:

       ► Hierarchical-link chain

       ► Means-ends chain

       ► Weakest-link chain

       ► Level-level chain

   

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

 Safeguard is an anti-bacterial soap that provides superior longer lasting germ protection. Through this soap Procter & Gamble is practicing which of the following strategies?

       ► Stability Strategy

       ► Differentiation strategy

       ► Emergent strategy

       ► Cost leadership strategy

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

 At the first step of goal setting a manager should:

       ► Evaluate available resources

       ► Review organization’s mission

       ► Write down goals

       ► Estimate expected benefits

   

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

 Which of the following is a primary benefit of MBO?

       ► Avoid competition

       ► Resistance against new entrance

       ► Improve employee motivation

       ► Increase resources

   

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

 Which of the following is an area in the environment that if exploited may generate high performance for organization?

       ► Strength

       ► Weakness

       ► Opportunity

       ► Threat

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

 A skill and capability that does not enable an organization to choose and implement strategies that support its mission is called its:

       ► Strength

       ► Weakness

       ► Opportunity

       ► Threat

   

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

 Which of the following strategy specifies the range of markets in which an organization will compete?

       ► Scope

       ► Distinctive Competency

       ► Resource deployment

       ► Effective strategy

   

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

 Few years ago Nike has problem with inconsistency of goals. The firm was producing high quality shoes but they were not stylish. As a result company lost substantial market share. In this situation which kind of goal was missing?

       ► Manufacturing goal

       ► Marketing goal

       ► Financial goal

       ► Operational goal

   

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

 Sony has a goal to acquire a firm in the entertainment industry. The goal was realized when Sony bought Columbia picture. It comes under which of the following?

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       ► Strategic goal

       ► Operational goal

       ► Tactical goal

       ► Personal goal

   

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

 Which of the following group technique allows group members to meet together, but also allows independent thinking?

       ► Groupthink

       ► Electronic meetings

       ► Brainstorming

       ► Nominal group technique

   

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

 Many decisions fail after the final choice because of the occurrence of which of the following?

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       ► Decision criteria weights were incorrect

       ► People affected failed to accept the solution

       ► Satisficing occurred

       ► Choice was wrong

   

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

 Which of the following term sometimes used to describe picking a course of action that is satisfactory under the circumstances?

       ► Escalation of commitment  

       ► Satisficing

       ► Risk

       ► Bounded rationality

   

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

 Jay tends to always look at the broad picture and likes to look at many alternatives. He focuses on the long run and looks for creative solutions. He prefers which of the following styles of decision making?

       ► Analytic

       ► Conceptual

       ► Directive

       ► Behavioral

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

 The decision-making model consists of four styles: directive, analytic, behavioral and _______.

       ► Conceptual

       ► Intuitive

       ► Group interaction

       ► Laggard

   

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

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

       ► Rule

       ► Procedure

       ► Policy

       ► Plan

   

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

 A large chemical company not only disposes of all toxic waste properly as outlined by law, but it also spends $1 million dollars each year on research to determine better processes for all businesses to use in disposing of toxic wastes. This company is exhibiting which of the following?

       ► Social responsibility

       ► Social obligation

       ► Moral obligation

       ► Social responsiveness

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

 Which of the following approaches recognize differences among organizations and categorizes variables that affect an organization's performance?

       ► Process approach

       ► Contingency approach

       ► Function approach

       ► System approach

   

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

 Giving prestigious job titles would be one way to satisfy people’s need for :

       ► Esteem

       ► Belongingness

       ► Self-actualization

       ► Safety

   

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

 “Specialization increases output by making employees more efficient” it is called:

       ► Division of work

       ► Authority

       ► Scalar chain

       ► Order

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

 Henry Fayol described principles of management in the form of:

       ► 11 points

       ► 12 points

       ► 14 points

       ► 15 points

   

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

 Which of the following functions or activities involve recruiting and placing qualified personnel needed for the organization so that it may achieve its objectives and goals?     

       ► Planning

       ► Organizing

       ► Staffing

       ► Leading

   

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

 An organized set of behavior that is associated with particular office or position is called:

       ► Role

       ► Obligation

       ► Responsibility

       ► Responsibility

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

 The person who maintains network of connection outside the organization to obtain information is called:

       ► Entrepreneur

       ► Disseminator

       ► Spokesperson

       ► Liaison

   

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

 Ali has a job that pays him well, he desires to make a contribution to the organization, and he has an active social life. His desire is to become all that he is capable of becoming. Ali is at which of the following need defined by maslow?

       ► Self-actualization

       ► Safety

       ► Social

       ► Esteem

   

Question No: 51    ( Marks: 5 )

 Who are responsible for setting goals? Do you think different Managers set goals, or one manager is responsible for it?

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ANS: GOAL SETTING: Goals are the desired outcomes for the individuals, groups or organizations. The success of an organization depends on its goals and how they are achieved. Goal setting is the responsibility of a manager. There are three managers at three different levels:

• Top manager
• Middle manager
• First Line manager

 Each manager is responsible for setting goals at different level.

1. Top manager sets the strategic goals which are organization wide.
2. Middle managers set Tactical goals
3. First line managers set operational goals which are related to the operations of the organization.

But it is important that all the goals set by managers should be in accordance to organization's mission.

   

Question No: 52    ( Marks: 10 )

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

ANS: MOTIVATION: It is the willingness to exert high levels of efforts to reach organizational goals.

               Motivation is an important aspect in today's world where competition is increasing day by day, so there is a strong need for motivating employees in order to get best performance from them. Inspite the importance of motivation there are various issues which affect the motivation in today's workforce. Some of the such factors are given below:

• Inappropriate Goals: the goal itself acts as a motivator but if not set well it creates lack of understanding in employees which results in poor performance.
• Recognition: In today's world recognition acts as a strong motivator. If a worker's performance is good he needs to be recognized so that his performance is reinforced but if there is lack of recognition it will de- motivate the worker.
• Salary/Pay: The basic physiological needs are satisfied by money so salary /pay plays an important role in motivating an employee. If it is not upto to the limit where it satisfies workers basic needs it is obvious that low salary will cause de-motivation in employee.
• Opportunities: Everyone desires to develop their capabilities and reaching their full potential, it can somehow be achieved by career opportunities offered by the organization. If an organization does not allow an employee to excel in his/her career this may lose his interest in work.
• Work Itself: The job and the working conditions if not liked by worker he will not do his job with interest and will yield low performance.

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Question No: 53    ( Marks: 10 )

 How can a manager make the delegation process more effective? Give logical reasons to support your answer.

ANS: DELEGATION: Delegation is the assignment of part of manager's work to others along with responsibility and authority.

Effective Delegation: Delegation can be made effective in many ways:

·        Trust: It is very important while delegating to have full trust in the subordinates. If manger lacks trust in subordinates he will always have a threat of their failure.

·        Training the subordinates: Delegation can be effectively done if subordinates know what and how they have to do their work. For this they must be trained well.

·         Manager's knowledge about delegation: While delegating manager should know how to delegate i.e how to take work from subordinates and which tasks should be assigned to subordinates.

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Question No: 54    ( Marks: 10 )

 Discuss the Boston Consulting Group (BCG) matrix and explain its usefulness in segmenting businesses. Discuss the characteristics for each of the four categories based on the BCG matrix..

ANS: BOSTON CONSULTING GROUP (BCG) MATRIX: The BCG matrix was developed by Boston Consulting Group. Its main purpose was to compare different businesses in an organization's portfolio on the basis of market share and market growth. It helps the organization in allocating resources to its various businesses.

Categories of BCG matrix:

                 The matrix defines four business groups. The SBUs plotted on BCG matrix can be classified as follows:

• Star: Star has a high market share in a growing market.
• Cash Cow: Cash Cow is an SBU which has high market share in a slowly growing market.
• Question Mark: Have low market share in a growing market. They are the problem creators.
• Dog: Has low market share in a low growing market.

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