General Management – Part 2

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 Introductory Note
This document contains the following 2 Parts –
Part I – We have discussed the Objective Questions asked in
previous years.
Part II – We have discussed the Descriptive Questions asked
in previous years.

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 Part I

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Guidelines for Part I

Under this part, you will find the exact previous year’s questions (Objective part) that were asked in RBI, SEBI,
and PFRDA. It includes 3 sections:

Section A – Under this section, you will find the exact previous year’s questions that were asked in RBI, SEBI,
and PFRDA. This section will enable you to test your knowledge based on different concepts and for your
comfort, we have segregated the questions according to the different examinations. The questions have been
arranged in the following manner:

1. RBI Grade B - Here, you will find all the previous year’s questions, which were asked in phase 2 of the RBI
Grade B exam, starting from 2016 onwards.
2. SEBI Grade A - Here, you will find all the previous year’s questions, which were asked in phase 2 of the RBI
Grade B exam, starting from 2018 onwards.
3. PFRDA Grade A - Here, you will find all the previous year’s questions, which were asked in phase 2 of the
RBI Grade B exam, starting from 2021 onwards.

If there is no question in this document on any exam for a particular year or years, it means no question was
asked for that exam in that year(s) or the exam itself was not conducted in that year.

Section B - In this section, you will find the answer key for all the questions, and it will enable you to check your
marks and understand your performance accordingly.

Section C – This section contains a detailed explanation of every question, and herein you will be able to
understand the concept in the best holistic manner possible.

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 Part I
Section A

Questions asked in Phase 2 of the RBI Grade B exam, from 2016 onwards

Question 1 – Which of the following personalities gave the decision-making model? RBI Grade B – Phase 2 -
2016

A. Vroom, Yetton and Jago

B. Fred Fiedler
C. Robert Greenfield
D. Hershey and Blanchard
E. None of the above

Question 2 – What is the Full Form of MBO? RBI Grade B – Phase 2 - 2016

A. Management by Officers
B. Management by Objective
C. Management by Obfuscation
D. Management by Objection
E. None of the above

Question 3 - Decision making is __________ Process? RBI Grade B – Phase 2 – 2017

A. Psychoanalytical
B. Cognitive
C. Emotional
D. Socio-Cognitive
E. None of the above

Question 4 – What is first step in Decision Making? RBI Grade B – Phase 2 - 2017

A. Evaluating Options
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B. Getting Alternatives
C. Brainstorming
D. Identifying Objectives
E. None of the above

Question 5 – In the field of management MBO is also known as ____________ ?RBI Grade B – Phase 2 - 2017

A. Management by Targets
B. Management by Goals
C. Management by Results
D. Management by Officers
E. None of the above

Question 6 - What are the overall objectives, purpose and mission and vision of a business that have been
established by its management and communicated to its employees called ________ ? RBI Grade B – Phase 2 -
2017

A. Functional Goals
B. Organizational Goals
C. Technical Competency
D. Appraisal Goals
E. Proposal

Question 7 – Identify the Decision metric, under which the worst outcomes are considered among many and
the best among those worst outcomes is selected as part of decision making ? RBI Grade B – Phase 2 – 2018

A. Worst Payoff Decision matrix

B. Max-Min Decision Matrix
C. Worst Outcome Decision matrix
D. Profit oriented Decision Matrix
E. None of the above

Question 8 - Who gave the management principle of ‘MBO’? RBI Grade B – Phase 2 – 2019

A. Philip Kotler
B. Michael Porter
C. Henri Fayol
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D. Peter Ducker
E. None of the above

Questions asked in Phase 1 and Phase 2 of the SEBI Grade A exam, starting from 2018
onwards.

Question 1 - Short Term Planning which is for less than 1 year is called as ______________? SEBI Grade A –
Phase 2 - 2018

A. Tactical Plan
B. Strategic Plan
C. Directional Plan
D. Standing Plan
E. None of the above

Question 2 – There are various types of plans, in the same regard, unambiguous action for late
workers/absenteeism would be called as ________? SEBI Grade A – Phase 2 – 2018

A. Policies
B. Procedures
C. Rules
D. Standards
E. None of the above

Questions asked in Phase 1 and Phase 2 of the PFRDA Grade A exam, starting from 2021
onwards

Question 1 - _________ function of the management deals with the process of choosing appropriate goals and
actions to pursue and then determining what strategies to use, what actions to take, and deciding what
resources are needed to achieve the goals. PFRDA Grade A – Phase 1 – 2021

A. Planning
B. Organizing
C. Leading
D. Staffing
E. Controlling
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 Section - B
Answer Key

RBI Grade B questions

Question Number Answer

Question 1 Option A
Question 2 Option B
Question 3 Option B
Question 4 Option D
Question 5 Option C
Question 6 Option B
Question 7 Option B
Question 8 Option D

SEBI Grade A questions

Question Number Answer

Question 1 Option A
Question 2 Option C

PFRDA Grade A questions

Question Number Answer

Question 1 Option A

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 Section C

Explanation
RBI Grade B questions
Question 1 – Which of the following personalities gave the decision-making model? RBI Grade B – Phase 2 -
2016

A. Vroom, Yetton and Jago

B. Fred Fiedler
C. Robert Greenfield
D. Hershey and Blanchard
E. None of the above

Answer – Option A

Explanation –
This is a very factual question, Vroom-Yetton-Jago decision making model, which is also known as Leader
Participation Model, will be the correct answer, as all the other options relates to different leadership models,
although, Vroom, Yetton and Jago model is also a leadership model, but here the question specifically
mentions about decision making, therefore the correct answer will be option A.

This model considers three factors, which are –

1. Decision Quality – Sometimes, making the "right" decision is critical, and you'll need to use a large
number of resources (people, time, information, and so on) to ensure that the action you take has been
well thought through and is of high quality.
2. Team Commitment – Some of your decisions will have a major impact on your team, while others will
go unnoticed. When a decision will likely impact your team, it is best to use a collaborative process. This
will improve the quality of the decision, and you will likely deliver a successful result faster.
3. Time Constraints – When the issue at hand is not time sensitive, you have more "space" to research your
options and to include others, which will help to boost the quality of your decision. If your time is limited,
however, it may not be feasible to include others or to undertake thorough research.

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The framework poses seven "yes/no"
questions, which you need to answer to find
the best decision-making process for your
situation.

And then after the answer to all 7 questions is

known, then a particular leader or a manager
can make the best decision.

Question 2 – What is the Full Form of MBO? RBI Grade B – Phase 2 - 2016

A. Management by Officers
B. Management by Objective
C. Management by Obfuscation
D. Management by Objection
E. None of the above

Answer – Option B

Explanation
This question is based on the popular concept which was given by Peter Ducker. Management by
objectives (MBO), also known as management by results (MBR), was first popularized by Peter Drucker in his
1954 book The Practice of Management

MBO is defined as comprehensive managerial system that integrates key managerial activities in a
systematic manner which is directed towards efficient and effective achievement of organizational objective

The essence of MBO is “participative goal setting”. The principle behind Management by Objectives (MBO) is
to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of
that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The
goals are agreed by employees and are not merely imposed on them.

Question 3 - Decision making is __________ Process? RBI Grade B – Phase 2 – 2017

A. Psychoanalytical
B. Cognitive
C. Emotional
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D. Socio-Cognitive
E. None of the above

Answer – Option B

Explanation
Decision-making is regarded as the cognitive process resulting in the selection of a belief or a course of action
among several alternative possibilities. Decision-making is the process of identifying and choosing
alternatives based on the values, preferences, and beliefs of the decision-maker.

Moreover, Cognitive processes are a series of chemical and electrical signals that occur in the brain that allow
you to comprehend your environment and gain knowledge.

Question 4 – What is first step in Decision Making? RBI Grade B – Phase 2 - 2017

A. Evaluating Options
B. Getting Alternatives
C. Brainstorming
D. Identifying Objectives
E. None of the above

Answer – Option D

Explanation –
The answer to this question is based on the process of decision making, which generally starts with the either
setting up of objectives or identifying the objectives.

Decision making process contains following steps -

1. Specify Objective: The need for decision making arises to achieve certain objectives.

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 2. Identification of Problem: Problem is the gap between actual situation and desired situation. The
problem must be identified properly so that correct solution can be found out. Company may be facing
the problem of fall in sales

3. Generating alternative solutions: Manager must generate various alternative solutions to solve that
problem. For e.g.: Various alternative solutions to counter fall is sales can be revision of prices, effective
distribution strategy, improving product quality etc.

4. Evaluation of alternatives: In this step all the alternatives are evaluated to find the most suitable. All the
alternatives may not be taken for evaluation due to time constraint.

5. Selecting the best solution: The best alternative is always that solution which will generate maximum
returns at minimum cost

6. Action: Implementation should be done by having proper allocation of resources. For e.g. for actual
improvement in product quality, raw material can be changed, advanced technology can be installed,
and lab our can be trained more etc.

7. Result: The decisions will lead to result and results must correspond to an objective for which the
decision making was undertaken. If there is any deviation between objective and result, this should be
analyzed and factors responsible for deviation should be location and suitable actions should be taken

Question 5 – In the field of management MBO is also known as RBI Grade B – Phase 2 - 2017

A. Management by Targets
B. Management by Goals
C. Management by Results
D. Management by Officers
E. None of the above

Answer – Option C

Explanation –
Management by objectives (MBO), also known as management by results (MBR), was first popularized
by Peter Drucker in his 1954 book The Practice of Management

MBO is defined as comprehensive managerial system that integrates key managerial activities in a systematic
manner which is directed towards efficient and effective achievement of organizational objective

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The essence of MBO is “participative goal setting”. The principle behind Management by Objectives (MBO) is
to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of
that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The goals
are agreed by employees and are not merely imposed on them.

Question 6 - What are the overall objectives, purpose and mission and vision of a business that have been
established by its management and communicated to its employees called ________ ? RBI Grade B – Phase 2 -
2017

A. Functional Goals
B. Organizational Goals
C. Technical Competency
D. Appraisal Goals
E. Proposal

Answer – Option B

The key words in the above question, will be purpose, mission, vision of the business, all these key words are
the pillars of the organisational goals. Moreover, please be informed that, organisational objectives are also
known as economic objectives.

Various types of objectives can be summarized from the following picture

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Question 7 - Decision metric under which the worst outcomes are considered among many and the best among
those worst outcomes is selected as part of decision making ? RBI Grade B – Phase 2 – 2018

A. Worst Payoff Decision matrix

B. Max-Min Decision Matrix
C. Worst Outcome Decision matrix
D. Profit oriented Decision Matrix
E. None of the above

Answer – Option B

Explanation
Here, the key word is that decision maker is selecting the worst outcome, which directly means that’s it’s a
Pessimistic Criterion of decision making, which is also known as Maximin Criterion of decision making.

Maximin criterion is adopted by the most pessimistic decision maker. He believes that the worst possible
may occur. This pessimism results in the selection of that alternative which maximizes the worst payoff of
each alternative. In other words, we select the worst payoff of each alternative and then select the
maximum one among those worst payoffs.

The opposite of Pessimistic Criterion is the Optimistic Criterion, which is also known as “Maxima Criterion”.
In this the best payoff of each alternative is selected and then maximum among those best payoffs will be
selected

Question 8 - Who gave the management principle of ‘MBO’? RBI Grade B – Phase 2 - 2019

A. Philip Kotler
B. Michael Porter
C. Henri Fayol
D. Peter Ducker
E. None of the above

Answer – Option D

Explanation –
Management by objectives (MBO), also known as management by results (MBR), was first popularized
by Peter Drucker in his 1954 book The Practice of Management

MBO is defined as comprehensive managerial system that integrates key managerial activities in a systematic
manner which is directed towards efficient and effective achievement of organizational objective

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The essence of MBO is “participative goal setting”. The principle behind Management by Objectives (MBO) is
to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of
that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The goals
are agreed by employees and are not merely imposed on them.

Explanation
SEBI Grade A questions
Question 1 - Short Term Planning which is for less than 1 year is called? SEBI Grade A – Phase 2 - 2018

A. Tactical Plan
B. Strategic Plan
C. Directional Plan
D. Standing Plan
E. None of the above

Answer – Option A

Explanation
The answer to this question is based on different type of plans, and most tactical plans are called as short
terms plans.

Based on Importance of content, mainly there are two types of plans

1. Strategic plans - Strategic planning deals with strategic issues like diversification of business, new products
to be launched. Strategic planning relates to issues pertinent to the mission of your small business—the
purpose of its existence. It is done to establish long term objectives and how the resources should be used
to meet these objectives. The responsibility for strategic planning rests with higher management. Strategic
planning involves analysing external environmental factor while framing the strategy for the organization

2. Tactical plans - Tactical planning also known as operational planning relates to actions taken day-to-day
basis. In tactical planning we will make effective use of resources allocated through strategic planning and
to develop a control mechanism to ensure effective implementation. Usually, operational planning covers
one year or so.

Question 2 – There are various types of plans, in the same regard, unambiguous action for late
workers/absenteeism would be called ________? SEBI Grade A – Phase 2 – 2018

A. Policies
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B. Procedures
C. Rules
D. Standards
E. None of the above

Answer – Option C

Explanation –
The answer to this question is based on different types of plans which are made by the organisation based on
different hierarchy. Moreover, here the company has made a rule, which is applicable to only those employees
who are coming late to the work.

Rule is a specific statement that prescribes what is to be done or not done in the organization. An organization
may prescribe different rule which govern the behaviour of the organizational members. Rules may be in
different forms like “everyone has to wear a tie in the organization”

Some other types of organisational plans are discussed below -

1. Mission: Every organization should have mission. Mission is the statement which reflects purpose,
philosophy, and vision of the organization. Mission guides the overall working of the enterprise.
2. Objectives - The end results which organizations seeks to achieve are known as goals or objectives.
3. Strategy - Strategy is course of action which an organization tries to relate itself with its environment to
develop competitive advantage which helps in achieving its objectives
4. Policies - The term “Policy” is defined by koontz and O ‘Donnel as “policies are general statements or
understandings which guide mangers thinking in decision making”. Policies define how an organization
should deal with its stakeholders such as employees, suppliers, customers etc.
5. Procedure - Procedure is a plan because it provides guidelines for performing activity. A procedure is
chronological sequence in which ac activity should be performed to achieve the objective of the
activity. Procedure thus provides guideline for performing an action. It involves how each task will take
place, when and by whom it will take place

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 Explanation
PFRDA Grade A questions
Question 1 - _________ function of the management deals with the process of choosing appropriate goals and
actions to pursue and then determining what strategies to use, what actions to take, and deciding what
resources are needed to achieve the goals. PFRDA Grade A – Phase 1 – 2021

A. Planning
B. Organizing
C. Leading
D. Staffing
E. Controlling

Answer – Option A

Explanation –
The key words in this question, are choosing appropriate goals and determining what strategies to use, these
key words soundly reverts that the answer to this question is planning. Because in planning you set your goals
and then make strategies to accomplish the already set goal.

Planning (also called forethought) is the process of thinking about and organizing the activities required to
achieve a desired goal. Planning involves deciding in advance what needs to be done and how to do it.

Features of planning

1. Planning is Primary Function: Management process starts with planning. So planning is a primary
function of management. Other functions of management i.e. organizing, directing, and controlling are
dependent on planning
2. Rational Approach: Planning is rational approach for defining where one stands and where one plans
to go in future and how to reach there
3. Open system approach: This approach of planning indicates that the future course of action is
influenced by the environment in which system operates. So, while planning, managers must consider
various features of environment
4. Planning is Result Oriented: Every plan is framed to achieve certain well-defined objectives. Planning
is done to achieve goals. First targets are set and then planning is done
5. Planning is a continuous activity: Planning is a continuous function of management. Managers are
required to formulate, modify, and withdraw the plans according to business environmental changes.
Planning is necessary as long as the business remains in existence

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Planning is Pervasive: Planning is pervasive in nature. It is required for all the business activities and by all the
managers at all the levels. Planning is required not only in business organizations but also in non-business
organizations

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 Part II

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Guidelines for Part II

Under this part, you will find the exact previous year’s questions (Descriptive part) that were asked in RBI.

RBI started including a Descriptive component in 2021 after a gap of 6 years (after 2014). Between 2007-2014,
the RBI exam had a descriptive portion but from 2014 to 2020, there was no descriptive component in RBI.
Hence,

1. We shall cover all previous year questions asked in RBI Grade B Exam from 2021 and between 2007-2014
2. For questions asked in RBI Grade B Exam between 2007-2014, the following points must be noted -
I. Some questions from previous years might not be covered in any of the chapters since they might
not belong to the current syllabus. The syllabus earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are related to current affairs of
that year, which is not relevant now.
III. Moreover, some chapters have a lot of previous year questions, in those chapters, we have given
complete answers to some questions and for the rest of the questions, the answer outline is given.

If there is no question in this document on any exam for a particular year or years, it means no question was
asked for that exam in that year(s) or the exam itself was not conducted in that year.

Other Points to be Noted.

1. The answers given here are not to be crammed. They are not given from the perspective of being perfect
answers. No answer is a perfect answer. If we ask 500 people to write answers to these questions, then we
will get 500 different answers and we cannot decide which one is the perfect answer. The answers given
here are to help you guide towards the approach to answering.
2. The answers written here may exceed the word limit in some cases. But that is done intentionally so that
you understand it better and, in the exam, you can further summarize that information to achieve the
desired word limit.
3. In certain answers, the content/points written may not be covered in the notes/videos. But that is also
done to make you realize that we cannot simply be bookish in writing answers, rather some content/points
need to be written from our understanding of things. This is called the application part.

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 Questions asked in Phase 2 of the RBI Grade B since 2021 and between 2007-2014

Q.1) “Planning is the bridge between the present and the future”. Discuss RBI Gr B 2007-14 - 15 marks,
600 words)

Answer

In the ever-changing landscape of today's world, where uncertainty and complexity are constants, the art
of planning has emerged as a critical tool for individuals and organizations seeking success and resilience.
Planning serves as the bridge that connects the present with the future, guiding us from where we stand
today to the envisioned destination we aspire to reach. It is the blueprint that shapes our actions, empowers
our decisions, and aligns our efforts toward the fulfillment of goals and objectives.

As we embark on this journey across the bridge of planning, we will uncover the transformative power it
holds, paving the way for achievement and prosperity. In the same regard, here are the points which make
planning a bridge between present and future.

• Goal Setting and Clarity of Vision: Planning begins with setting clear and well-defined goals and
objectives. These goals serve as the destination points that an individual or organization aims to
reach in the future. By articulating a clear vision of what they want to achieve, individuals and
organizations can create a roadmap for the future. This roadmap acts as the bridge between their
current reality and the desired future reality.
• Direction and Purpose: Planning provides direction and purpose to actions. When individuals or
organizations have a well-structured plan, they know what steps to take, when to take them, and
how to allocate resources effectively. This sense of direction and purpose enables them to move
forward with confidence, making progress toward their desired future state.
• Resource Allocation and Optimization: Effective planning involves assessing available resources and
allocating them optimally to achieve the set goals. It ensures that resources such as time, money,
manpower, and technology are used efficiently to avoid wastage and maximize output. Proper
resource allocation is crucial for bridging the gap between the present and the future by ensuring
that there are no impediments to progress.
• Risk Management and Contingency Planning: Planning also involves identifying potential risks and
uncertainties that may arise on the journey toward the future. By anticipating challenges and
developing contingency plans, individuals and organizations can prepare for unexpected events.
Effective risk management ensures that the bridge remains steady even in the face of adversity,
helping them stay on course despite obstacles.
•

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The statement "Planning is the bridge between the present and the future" holds true as planning serves
as the essential link that connects the current state with the desired future state. By setting clear goals,
providing direction, optimizing resources, managing risks, and fostering adaptability, planning provides a
roadmap for individuals and organizations to navigate the uncertainties of the future. It acts as a guiding
force that bridges the gap between where they are now and where they want to be. Effective planning not
only propels them forward but also ensures long-term sustainability, creating a culture of accountability,
and fostering motivation and commitment. As individuals and organizations build and cross the bridge of
planning, they can confidently journey toward a successful and fulfilling future.

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