Management Quiz - 2

1. Ratio analysis helps a manager compare the performance of the organization with its previous performance or the performance of its competitors. Which of the following is a ratio of creditors’ contribution to that of the owners?
[A]Current ratio
[B]Debt-equity ratio
[C]Return on Investment (ROI)
[D]Net profit margin



2. Which of the following techniques for improving productivity aims at reducing costs by analyzing and improving individual operations of a product or service?
[A]Work simplification
[B]Time-event network
[C]Value engineering
[D]Total Quality Management



3. Information provided by market intelligence agencies is part of which of the following types of information system?
[A]Management Information System
[B]Decision Support System
[C]Executive Support System
[D]Transaction Processing System



4. Control is of three types – feed forward, concurrent, and feedback control. Which of the following is not an example of feed forward control?
[A]Sales forecast
[B]Budgetary control
[C]Inventory control
[D]Quality control.



5. Mahesh strongly believes that employees should value organizational goals more than individual goals. Which of the following are we talking about?
[A]Perception
[B]Attitude
[C]Personality
[D]Values



6. Tangent Electronics Ltd. is faced with the problem of allocating resources to its newly set up computer peripherals division. Which of the following decision-making techniques can help solve the problem?
[A]Linear Programming
[B]Decision tree
[C]Simulation
[D]Waiting-line method



7. Divisional organization structure takes three forms: product division, geographic division and customer division. Which of the following is an advantage of a product divisional structure?
[A]It addresses the special and widely varied needs of customers for clearly defined services
[B]It encourages the development of expertise in functional areas
[C]It allows better understanding of local markets
[D]It facilitates comparison of the performance of various product lines.



8. Decentralization is the systematic delegation of authority in an organization-wide context. Which of the following factors does not influence the degree of decentralization in an organization?
[A]Size of the organization
[B]External environment
[C]Geographical location of the organization
[D]Geographical dispersion of the organization



9. A skills inventory is a computerized database containing basic information about each employee that can be used to assess the availability of candidates for meeting current and future human resource needs. Which of the following is an application of skills inventory?
[A]Forecasting manpower demand
[B]Forecasting manpower supply
[C]Replacement training
[D]Succession planning



10. Organization Development (OD) is a systematic, integrated, and planned approach to improving enterprise effectiveness. Which of the following OD intervention techniques involves giving feedback on interpersonal relations and dynamics operating in work groups?
[A]Survey feedback
[B]Process consultation
[C]Team building
[D]Third-party intervention



11. Which of the following is not true with regard to the Porter and Lawler model of motivation?
[A]It’s built on Vroom’s expectancy theory
[B]It means motivation is not a simple cause-and-effect matter
[C]It assumes satisfaction leads to performance
[D]It emphasizes reward structure



12. Corporate Social Responsibility (CSR) is seriously considering the impact of the company’s actions on society. Which of the following is not true with regard to corporate social responsibility?
[A]CSR involves fulfilling obligations to various interest groups
[B]CSR involves three types of behavior – positive, neutral and negative
[C]The management of every organization must be conscious of its CSR
[D]CSR is essentially the same as Social Responsiveness.



13. Organizational culture is the collection of shared values, beliefs, rituals, stories, myths and specialized language that foster a feeling of community among organization members. Which of the following is not a characteristic of organization culture?
[A]It differentiates one organization from another
[B]It defines the internal environment of an organization
[C]It ensures consistency in the behavior of organization members
[D]It remains absolutely stable throughout the life of an organization



14. Management By Objectives (MBO) is a system for achieving organizational objectives, enhancement of employee commitment and participation. Which of the following is not an advantage of MBO?
[A]Role clarity
[B]Clarity in organizational action
[C]Personnel satisfaction
[D]Flexibility.



15. When Vision Informatics Ltd. invited external experts for performance appraisal, the employees resisted the move. To overcome the resistance, the management invited the leader of the employees’ union to participate in the decision-making process. Which of the following measures to overcome resistance did Vision Informatics adopt?
[A]Participation and involvement
[B]Facilitation and support
[C]Negotiation and agreement
[D]Manipulation and co-optation