Nature and Significance of Management

1) Successful organisations do not achieve goals by chance but by following a deliberate

process known as
(a) Planning
(b) Co-ordination
(c) Controlling
(d) Management

2) Management is essential for the organisations which are

(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above

3) Management contains a series of interrelated functions that include

(a) Planning
(b) Organising
(c) Directing
(d) All of the above

4) People in the organisations carry out diverse tasks with the aim to achieve
(a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above

5) Successful management ensures that

(a) Goals are achieved with least cost
(b) Timely achievement of goals
(c) Both of the above
(d) None of the above

6) Efficiency is concerned with

(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
(d) None of the above

7) Effectiveness relates to
(a) Doing the right task
(b) Completing activities
 (c) Achieving goals
(d) All of the above

8) Rohan works as a production manager in Global Enterprises Limited. He has been given the
task of getting 1000 units of hand woven table mats manufactured at the cost of ₹150 per
unit within 10 days. In order to be acknowledged as an effective manager, he must ensure
that
(a) The cost of production does not exceed ₹150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than ₹150 per unit
(d) All of the above

9) Jay is working as a marketing manager in a company. Has been given the task of selling
100000 units of a product at the cost of ₹100 per unit within 20 days. He is able to sell all
the units within the stipulated time, but had to sell last 1000 units at 20% discount in
order to complete the target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
(d) None of the above

10) Management is said to be poor if it is

(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above

11) Tarang Enterprises Limited is planning to increase its sales by 30% in the next quarter.
Identify the feature of management being highlighted in the given statement.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is a continuous process
(d) All of the above

12) Management is equally important to run a political organisation as it is to run an economic

organisation. Which feature of management is being reflected in the given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity

13) Management translates the works to be carried out in terms of goals to be achieved and
assigns the means to achieve it. This statement relates to
 (a) Management of work
(b) Management of people
(c) Management of operations
(d) All of the above

14) Which of the following statements highlights that management is a group activity?
(a) Organisation is a collection of diverse individuals with different needs.
(b) Achievement of common goal requires teamwork and co-ordination of efforts in a
common direction.
(c) Each member of the organisation may have different individual goals but they must
travel together towards common goals.
(d) All of the above

15) Keeping in view the changes in the consumer demands and preferences ‘Tasitemaker
Bakery’ has reduced the sugar and fat content in its products. This approach of business
shows that management is
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity

16) Which of the following is not an organisational objective of management?

(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Providing free education to their employees children

17) Management is considered important because

(a) It helps an organisation to adapt to the changes
(b) Seeks to integrate individual efforts
(c) It helps in development of the society
(d) All of the above

18) Management is considered to be an art because

(a) The principles of management have universal validity
(b) The principles of management have universal application
(c) Different principles of management are brought into effect differently by different
managers
(d) It is not important for the practising managers to be a member of a professional
association.

19) Which of the following statements is not relevant to the concept of “Management as an
inexact science”?
 (a) The principles of management lack universal validity
(b) The principles of management lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted
with utmost accuracy

20) The authority-responsibility relationships that exist within the organisation give rise to
(a) Different functions within the organisation
(b) Different levels in the organisation
(c) Management as a multidimensional activity
(d) Management as a group activity

21) Which of the following is not a designation related to top level management?
(a) President
(b) Vice-President
(c) Chairman
(d) Production Manager

22) Which of the following is not a designation related to middle level management?
(a) Operations Head
(b) Sales Manager
(c) Chief Operating Officer
(d) Divisional Manager

23) Which of the following is not a designation related to lower level management?
(a) Plant Superintendent
(b) Supervisors
(c) Section officers
(d) Marketing Manager

24) Which of the following is a function of top level management?

(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
(d) Ensuring that the safety standards are maintained within the organisation.

25) Which of the following statements does not pertain to middle level management?
(a) They are responsible for all the activities of the operational managers.
(b) They are responsible for the welfare and survival of the organisation.
(c) The interpreter the policies made by top level managers
(d) Co-operate with other departments for the smooth running of the organisation.
26) Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.

27) Identify the level of management which does not interact with the work force directly.
(a) Supervisory management
(b) Operational management
(c) First line managers
(d) Middle level management

28) The main task of this level of management is to determine the overall organisational
objectives and strategies for their realisation.
(a) Operational management
(b) Middle level management
(c) First line managers
(d) Top level management

29) This level of management serves as a link between top level managers and first line
managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
(d) None of the above

30) Organising as a function of management involves deciding

(a) What activities and resources are required
(b) Who will do a particular task
(c) Where will it be done
(d) All of the above

31) The function of management related to grouping of activities to be carried out into
departments and creating management hierarchy is
(a) Planning
(b) Organising
(c) Controlling
(d) Directing

32) This function of management relating to laying down the foundation for carrying out the
other functions of management successfully is
(a) Organising
(b) Staffing
 (c) Planning
(d) Controlling

33) Supervision, communication, motivation and leadership are the key elements of this •
function of management.
(a) Directing
(b) Controlling
(c) Planning
(d) Organising

34) This function of Management related to placing the right person at the right job is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

35) It is a force that binds all the functions Of management.

(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy

36) Co-ordination is considered to be the essence of management because

(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
(d) All of the above

37) Identify the process that provides the requisite amount, quality, timing and sequence of
efforts, which ensures that planned objectives are achieved with a minimum of conflict.
(a) Management
(b) Planning
(c) Co-ordination
(d) Controlling

38) Identify the feature of co-ordination being highlighted in the given statement:
“Coordination is not a one time function, it begins at the planning stage and continue till
controlling.”
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function
Multiple Choice Questions (MCQ) on Principles and Practices of Management (PPM)

1) In management process, the most misinterpreted word is

(A) Organizing
(B) Delegating
(C) Controlling
(D) Planning
2) The department(s) that an event management company will have is (are)
(A) Creative
(B) Production
(C) Client servicing
(D) All of the above
3) Who said, “Management is a multiple purpose organ that manages a business, manages a
manager and manages workers and work”?
(A) Harold Konntz
(B) Peter Drucker
(C) Kenneth O ‘Donell
(D) Anonymous
4) Under mechanism of scientific management, scientific task setting includes:
(A) Time study
(B) Motion study
(C) Method study
(D) All of the above
5) Management as a discipline is the function of________.
(A) Science
(B) Art
(C) Creativity
(D) All of the above
6) Which theory assumes that people are naturally lazy and will avoid work and responsibilities if
possible?
(A) Theory X
(B) Theory Y
(C) Theory Z
(D) None of the above
7) Who is the person you have to give importance under the company’s checklist before making
call to the consultant.
(A) Managers
(B) Employees
(C) Customer
(D) All of the above
8) What is one of the most significant inhibitors in customer preference while purchasing
perishable items in retail?
(A) Proximity of markets
(B) Customer preference to brands
(C) Both (A) and (B)
(D) None of the above
9) The objectives in corporate governance are
(A) Growth
(B) Stability
(C) Shareholders value maximization
(D) All of the above
10) The word________denotes a function, a task, a discipline.
(A) Management
(B) Leadership
(C) Motivation
(D) None of the above