Management Quiz - 22

1. Today, many organizations are involved in social activities. Since the expectations of the society have changed, organizations have become more aware of their social responsibilities. A careful analysis of argument for and against the involvement of organizations in social welfare is necessary to determine whether an organization should implement social initiatives. Which of the following is an argument for Social Responsibility of Business?
[A]Loss of Profit Maximization
[B]Excessive Costs
[C]Weakened International Balance of Payments
[D]Balance of Responsibility and Power



2. Practicing ethical guidelines enables managers to become followers of moral management approach. They facilitate ethical business decisions. Which of the following is not an ethical guideline for managers?
[A]Upholding human dignity
[B]Obeying the law
[C]Non-allowance for participation of stakeholders in the decision-making process
[D]Primum Non-Nocere



3. Planning is the first function of management and can be defined as the process by which managers set missions and objectives, assess the future and develop courses of action to accomplish these objectives. However, there is no shortage of myths and misconceptions about planning. Which of the following statements is a common misconception about planning?
[A]The end result of planning is only one of its purposes
[B]Planning cannot eliminate change
[C]Planning that proves inaccurate is a waste of management’s time
[D]The process of planning can, in itself, be valuable even if the results are inaccurate



4. Formal planning in an organization involves formal documentation, with properly laid-down guidelines to be followed. Which of the following statements is not a correct criticism of formal planning?
[A]Planning may create rigidity
[B]Planning may focus managers’ attention on today’s competition, not on tomorrow’s survival
[C]No relationship exists between formal planning and organisational performance
[D]Formal planning reinforces success, which may lead to failure



5. Problems are encountered at all levels in an organization, and managers at various levels have to solve them or manage them in the best possible way. Which of the following is a series of interrelated sequential steps that can be used to respond to a well-structured problem?
[A]Rule
[B]Policy
[C]Budget
[D]Procedure



6. Establishment of, and the agreement by managers and planners to utilise consistent assumptions critical to plans under consideration, is known as _______________, and is a prerequisite for effective planning.
[A]Organization climate
[B]Organization culture
[C]Premising
[D]Strategic planning



7. Assume that you have recently been assigned to a committee that is given the responsibility to review and institute a process for employees to use when requesting upgrades in computer equipment. Which type of objectives would you most likely be developing?
[A]Intermediate-term objectives
[B]Long-term objectives
[C]Short-term objectives
[D]Organizational objectives



8. An objective is the object or aim of an action. Management by Objectives (MBO) is a management process that is popular in many organizations. It is the joint setting of goals and objectives by superiors and subordinates. A major difference between traditional objective setting and MBO is
[A]In MBO, there are multiple objectives covering a range of organisational activities
[B]In traditional objective setting, the objectives, once formulated, provide direction for management decisions
[C]In traditional objective setting, the objectives, once established, form the criteria against which actual accomplishments can be measured
[D]Traditional objective setting is ‘top down’ only, while MBO is both a ‘top down’ and ‘bottom up’ process



9. As an organization grows in size and complexity, specialization of various tasks becomes a necessity, in most of the cases. Which of the following refers to the tendency of a system to move towards increased specialization of various tasks?
[A]Equifinality
[B]Focus
[C]Differentiation
[D]Dynamic Homeostasis



10. Management by Objectives (MBO) is a management process that is popular in many organizations. It is the joint setting of goals and objectives by superiors and subordinates. If you were responsible for setting up an MBO program, which of the following steps would you need to complete before the others?
[A]Establish specific goals for various departments, subunits and individuals
[B]Formulate action plans
[C]Clarify organizational roles
[D]Implement and maintain self-control



11. Managers involved in strategic planning aim at translating the broad intentions of the firm into more concrete and measurable strategic plans, policies and budget allocations. There are various steps involved in the strategic planning process. Which of the following steps in the strategic planning process usually precedes the others?
[A]Formulating Strategy
[B]Assessing Organizational Resources, Risks and Opportunities
[C]Developing Organizational Objectives
[D]Implementing Strategy



12. The BCG matrix was devised by the Boston Consulting Group, a leading management consulting firm, in the 1970s. It is a widely used method of portfolio management and helps businesses evaluate their profitability. According to the BCG matrix, an SBU comprising speculative products that entail high risks, would be referred to as
[A]A question mark
[B]A bull
[C]A dog
[D]A cash cow



13. Managers involved in strategic planning aim at translating the broad intentions of the firm into more concrete and measurable strategic plans, policies and budget allocations. There are various steps involved in the strategic planning process. The final step in strategic planning answers the question
[A]What business have we been in?
[B]How much money have we lost?
[C]How effective have our strategies been?
[D]What business should we have we been in?



14. A firm’s external environment usually consists of customers, competitors and suppliers. It is necessary to carry out an analysis of the external environment, in order to find out the opportunities and threats that can positively or negatively influence an organization’s ability to reach its goals. Analysing the external environment and the organisation’s resources are usually part of
[A]Functional level planning process
[B]Financial planning process
[C]Determining the mission of the business
[D]Strategic planning process



15. 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 different group decision-making techniques. One of these techniques for group decision-making that involves questionnaires is
[A]Brainstorming
[B]Nominal group technique
[C]Delphi technique
[D]Interacting group