Principles and practices of Management-DBM


Section A
All questions carry equal marks.
1. Compare the three schools of management thought and discuss which theory as per you is most important and why?
2. Discuss the 14 general principles of management given by Fayol. Which principle do you think is the most important?
3. “Decision making is the most critical managerial task.” Discuss the above statement in light of decision-making steps.
4. Which party bears more responsibility in the communication process- sender, receiver or both’? Justify your answer.
5. “Planning is charting the future course of action at present.” Do you agree? Discuss the advantage of planning as a management process.

Section B
All questions carry equal marks.

1. Management can be defined as “a process of bringing about improvement in knowledge, skill, habits, and attitudes of the employees ‘in an organization”. Discuss.
2. Which are the various types of plans you are familiar with? Discuss the steps involved in the planning process.
3. Departmentalization is grouping activities and people into departments. Which are the various forms seen in the industry?

Case Study

When Mr. Ram Bansal took over the handbag department at RK & Company New Delhi, he established several important goals for the department. One was to increase sales without increasing the number of salespeople or the way they were paid. Unlike some retail supervisors, Mr. Bansal was not in a position to use commissions to reward improved performance. All his employees were paid a straight wage without commissions and all members of the staff were union led. He also wanted to improve customer service and employee satisfaction.
This arrangement offered few motivational options and had a negative effect on employee attitudes. In other departments of the company, customers were often shown a dressing room “cop” who asked how many garments were included and gave them the appropriately coloured tag.
The original sales clerk rarely appeared for additional customer service. Many sales people in the company were painfully aware of the lack of personal commitment to their job and customers. One employee commented, “There’s a lot of talk about increasing customers.” Mr. Bansal knew he had to make some changes in order to improve the sales production in the department.

His first step was to give full-time employees their own counter area and their own line of merchandise. He also increased the responsibility of the sales staff for managing their own inventory and their own line of merchandise. Any sales person who needed information was encouraged to offer the buying staff suggestions, was encouraged to talk with buyer of handbags. Previously, the sales staff had felt they were not supposed to talk to buyers.
Every week, Mr.Bansal brings the staff together for a meeting. At these meetings, he emphasizes the importance of customer service ‘and reviews any change in departmental policies and procedures. He also encourages employees to discuss problems and ask questions. These meetings provide Mr. Bansal with an opportunity to publicly recognize the accomplishments of employees.

1. What motivational need did Mr. Bansal satisfy for his full-time employees?
2. Discuss these needs with reference to Maslow’s hierarchy of needs.
3. Mr. Bansal achieved significant productivity gains because of a positive change in employee’s attitudes. What motivational strategies did he use to achieve this success?

Section C
Objective Type Questions

All questions carry equal marks

1. The ability to see the organization as a whole and being aware how changes in anyone part of
the organization affect all the other parts is known as:
a. Leading skill
b. Human Skill
c. Conceptual skill
d. Organising skill

2. Which of the following should be encouraged by a manager in order to develop subordinate
a. Understanding and camaraderie
b. Open communication and effective delegation
c. Effective delegation and clear task definition
d. Opening communication and effective motivation

3. A system in which the level of equilibrium between its subsystems is always dynamic may be
termed as:
a. An open system
b. A closed system
c. A system which is self sufficient and self regulatory
d. All of the above

4. A plan can not be said to exist unless:
a. It has been reduced to writing
b. It has been signed by the chairman
c. It has been conveyed to all managers
d. Commitment of resources, direction, or reputation has been made

5. The managerial function of staffing means:
a. Hiring people for the organization
b. Filling, and keeping filled, positions in the organization structure
c. Right man for the right job
d. Maintaining good relationship between staff and the line personnel

6. Corporate planning is nothing but (choose the most appropriate one).
a. Planning the future of the organization
b. Planning for expansion of the organization
c. Planning for Human Resources Utilization
d. Budgeting for an extended period

7. (2+2 = 5) effect is often used to indicate:
a. Error in mathematical problems
b. Synergy
c. Enhanced skills
d. Better management control and supervision

8. Which one of the following is not a component of McKingsey’s 7-S Framework?
a. Staff
b. Skills
c. Shared value
d. Sale

9. SWOT Analysis (TOWS Matrix) is a modem management tool for:
a. Inventory control
b. Production scheduling
c. Human Resource Development
d. Developing of alternate strategies during planning 10.

10. A company
a. Is a person
b. Though a person has neither a mind nor a body of its own
c. Is an artificial person which has no body but has a mind of its own
d. Is an artificial person, invisible, intangible and existing only in contemplation of law

11. Effective communication means:
a. 20 per cent listening
b. 50 per cent listening
c. 50 per cent reading
d. 50 per cent speaking

12. Conflict is:
a. Always destructive
b. Always constructive
c. Never constructive
d. Could be destructive or constructive

13. Job Evaluation is a technique which aims at:
a. Establishing fair and equitable pay structure
b. Analysing of requirement of updating technology
c. Assessing safety requirement of jobs
d. Improving productivity

14. Induction or Orientation is an integral part of:
a. Training
b. Selection
c. Recruitment
d. Neither of the above

15. Conflicts in work environment could be classified as under (Tick mark wrong one).
a. Perceived conflict
b. Apparent conflict
c. Manifest conflict
d. Latent conflict

16. Industrial Dispute Act, 1947 provides the following Industrial Relations machinery for resolution
of conflicts: (Tick mark wrong one)
a. Negotiation
b. Conciliation
c. Mediation
d. Arbitration

17. The most common type of performance appraisal scheme followed in Public Sector is:
a. Management Group Appraisal
b. Superior-subordinate Appraisal
c. Staff-group Appraisal
d. Committee Appraisal

18. What can an organization do to alleviate stress (Tick mark wrong one).
a. Undertake a stress audit
b. Use scientific input
c. Spread the message of stress awareness
d. Organise job evaluation

19. The power a person derives from the closeness to a powerful person is known as:
a. Authority
b. Emotional power
c. Expert power
d. All of the above

20. The saying “Give a man fish, He will eat it, Train a man to Fish, He will feed his family” is used
in relation to which management activity?
a. Motivation
b. Recruitment
c. Training
d. Production

21. Performance review is done to:
a. Reward work done
b. Focus on areas requiring improvement
c. Giving appropriate feed back to individuals
d. All of the above

22. The influence a person has because of his high competence may be termed as:
a. Authority
b. Reflected power
c. Referrent Power
d. Reinforcing power

23. When a young person joins an organization he needs some senior person in whom he can
confide and get advice and support. Such a relationship may be called:
a. Mentoring
b. Counselling
c. Listening
d. Understanding

24. Counselling is:
a. Helping the employee to grow and develop
b. Giving him feed back
c. Reading hi9s performance report
d. Explaining legal implications

25. The term OCTAPAC is used in relation to which of following:
a. Organisational Development
b. Organisational culture and climate
c. Quality control
d. Marketing synergy

26. Line Managers are:
a. Supervisors
b. Staff authorities
c. Managers with authority to direct operations in their spheres of activity
d. Production.& Marketing Managers

27. Job specification spell out:
a. The functional description of the job.
b. The attributes of person in terms of education, training expenses, abilities, skills &
c. Neither of the above
d. Both (a) & (b) above

28. The methods of recruitment may include:
a. Internal
b. Direct
c. Indirect and Third Party
d. All of the above

29. Which of the following is not a typical Rater error:
a. Average behaviour
b. First Impressions
c. Central Tendency
d. Halo effect

30. Spillover Effect in Rater Errors means:
a. Rating is influenced by the most recent Behaviour
b. Basing the entire appraisal on the basis of one perceived positive quality
c. Allowing past performance to influence how present performance is evaluated
d. Ratee may be rated very strictly or very leniently

31. Key result areas are usually termed as:
a. Objectives
b. Mission
c. Goals
d. KRAs

32. The logical and possible sequences of positions that could be held by an individual based on
what and how people perform in an organization is called:
a. Career
b. Career Anchors
c. Career Path
d. Succession Planning

33. “In-Basket” Technique is used in:
a. Production
b. Marketing
c. Training
d. Accounting

34. The Act which aims to ensure regular and prompt payment of wages and to prevent the
exploitation of wage earners by prohibiting arbitrary fines and deductions is called:
a. The Equal Remuneration Act, 1976
b. The Payment of Bonus Act, 1965
c. TheMinimumWagesAct,l948
d. The Payment of Wages Act, 1936

35. “All reasonably healthy adults have a considerable Reservoir of Potential Energy” is one of the
basis principles of:
a. Motivation
b. Performance Appraisals
c. Development
d. Job Evaluation

36. For reduction/retrenchment firms now offer inducements to the Workforce to leave on their
own before they reach the age of superannuation. Such a scheme is called:
a. Golden Handshake
b. Voluntary Retirement Scheme
c. Both (a) and (b) above
d. Neither (a) nor (b) above.

37. An enquiry into the allegations of misconduct against an employee conducted within the
organization based on the principles of natural justice is called:
a. Investigation
b. Disciplinary proceeding
c. Domestic Enquiry
d. Disciplinary action

38. What are the barriers to communication?
a. Noise
b. Ourselves
c. Stress
d. All of the above

39. Which one is not a type of communication?
a. Horizontal
b. Upwards
c. Inwards
d. Downward

40. Which one is not a stage of Group process?
a. Forming
b. Norming
c. Welcoming
d. Performing