SAHAY INSTITUTE

Chapter 1

Nature and Significance of Management

Multiple Choice Questions

1. Management is

(a) Science
(b) An Art
(c) Both Science and Art
(d) Neither (a) nor (b)

2. Management is a ...... function as it adapts itself according to the changing

environment.

(a) Continuous
(b) Dynamic
(c) Pervasive
(d) All ofthese

3. Mr. Rohit, who was an employee in Z Cosmetics Limited was able to produce
the goods in time but: at higher cost. Mr. Rohit was

(a) effective only

(b) efficient only
(c) effective but inefficient
(d) neither effective nor efficient

4. It is always noticed that efficient management motivates employees to adopt

changes by convincing them. Which point of importance of management
discussed here?
(a) Management helps in achieving personal objectives
(b) Management helps in achieving group goals
(c) Management helps in the development of society
(d) Management creates dynamic organisation

5. Priya is using environmental friendly methods of production. She is trying to

achieve .......... objective of management.

(a) Social
(b) Organisational
(c) Personal
(d) Economical

6. The policies framed by the top management is interpreted by .…………. level of

management.

(a) Top
(b) Middle
(c) Lowe
(d) Operational

7.……………. management passes on the instructions of management to the

workers.

(a) Top
(b) Middle
(c) Supervisory
(d) None of the above

8. It is a common view that efficient management always satisfy its employees.

Which point of features of management discussed here?

(a) Group activity

(b) Dynamic function
(c) Intangible force
(d) Continuous process

9. Management helps an organisation to change, as per change in environment

Which point of features of management is discussed here?

(a) Group activity

(b) Dynamic function
(c) Intangible force
(d) Continuous process

10. Levels of management in an organisation serve as a ...……….. line among the

different managerial posts.

(a) Strong
(b) Dividing
(c) Weak
(d) Straight

11. "Diverse members of management work towards fulfilling the common

organisational goals." Which point of features of management is discussed
here?

(a) Group activity

(b) Dynamic function
(c) Intangible force
(d) Continuous process

12. A …......... chain is formed from top level management to the lower level
management.

(a) Vertical
(b) Thick
(c) Scalar
(d) Small

13. The terms ‘Cooperation` and ‘Coordination' are .....……

(a) Opposite
(b) Synonym
(c) Complementary
(d) All of these
14. Personal objectives are related with satisfying the personal needs of the
employees. Management must seek to satisfy the diverse needs of employees
Like

(a) financial needs, by giving competitive salary and perks

(b) social needs, by peer recognition
(c) higher level needs, by providing opportunities for personal growth and
development
(d) All of the above

15. Efficiency means doing the task correctly and with maximum cost.

(a) True
(b) False
(c) Can't say
(d) Partialy True

16. Google and Microsoft make the provision of crèche, laundry, gym and
entertainment facilities for their employees. Which obiective of management is
achieved by the management?

(a) Social objective

(b) Personal objective
(c) Organisational objective
(d) Economic objective

17. Nestle manufactures its products by using environment friendly methods of

production.

Nestle manufacturer fulfills objective of the management.

(a) Individual
(b) Organisational
(c) Social
(d) Economic

18. Human resource resist to adapt the changes in business environment

(a) True
(b) False
(c) Can’t say
(d) Partially True

19. Management is ......... as it can't be seen but its effects can be felt in the
form of results like whether the objectives are met and whether people are
motivated or not and there is orderliness and co-ordination in the work
environment.

(a) Intangible force

(b) Tangible force
(c) Internal force
(d) External force

20. Provision of crèche for the children of employees refers to the social
objective of a business.

(a) True
(b) False
(c) Can’t say
(d) Partially False

21. Every organisation whether it is business or non-business, has an

obligation to fulfill. This refers to consistently creating economic value for
various constituents of society.

Which objective of management is highlighted in aforesaid statement?

(a) Organisational objective

(b) Social objective
(c) Personal objective
(d) None of the above

22. The marketing manager of Informatics Limited' always keeps a check on the
changes happening in the surroundings and instructs the research and
development department to improve the products accordingly. This habit of
the marketing manager helps the company to keep an edge over the
competitors.

Which feature of management is depicted in the above case?

(a) Pervasive
(b) Intangible force
(c) Continuous
(d) Dynamic

23. Management is not a full-fledged profession

(a) True
(b) False
(c) Can't say
(d) Partially True

24. Management as an art and a science are not mutually exclusive, but
complement to each other.

(a) True
(b) False
(c) Cant say
(d) Partially True

25. In order to achieve target production of 12,000 units per month, the
production manager of a company has to operate on double shifts due to power
failure. This leads to achievement of the target of purifiers at a higher
production cost

In your opinion, what is lacking in management?

(a) Efficiency
(b) Effectiveness
(c) Cooperation
(d) Planning
26. To meet the objectives of the firm, the management of Bhavya Ltd. offers

employment to physically challenged persons. Identify the organisational

objective it is trying to achieve

(a) Survival (b) Profit (c) Growth (d) Social

27. "Use of plastic polythene is abandoned by a company to package its

product." Which objective is being achieved in this statement?

(a) Organisational
(b) Social
(c) Personal
(d) Economical

28. Creation of job positions from the top to bottom is known as hierarchy of
the management.

(a) True
(b) False
(c) Can't say
(d) Partially True

29. Coordination is the responsibility of the top-level managers

(a) True
(b) False nane-
(c) Cant say
(d) Partially True

30. Even where members of a department has willingly to coordinate cooperate

the and efforts work, of a different manager people in a conscious manner.'

Identify the characteristic of coordination discussed above

(a) Coordination ensures unity of action

(b) Coordination is a deliberate function
(c) Coordination is a continuous process
(d) Coordination is an all-pervasive function
31. The purchase, production and sales managers at Sharda Ltd, a firm
manufacturing ready made garments are generally at a conflict,
as they have their own objectives Usually each thinks that only they are
qualified to evaluate, judge and decide on any matter, according to their
professional criteria. Name the concept, which will be required by the CEO Mr.
Raman, to reconcile the differences in approach, interest or opinion in the
organisation.

(a) Coordination
(b) Cooperation
(c) Planning
(d) Organising

32. Which of the following is not an importance of management?

(a) Management increases efficiency

(b) Management helps achieving individual goals only
(c) Management creates a dynamic organisation
(d) Both (a) and (c)

33. Integration, balancing and timing are the three elements of coordination.

(a) True
(b) False
(c) Can't say
(d) Partially True

34. Match the columns on the basis of importance of management

Column I Column II
A. Create dynamic organisation (i) The task of manager is to reduce the
cost and to increase the productivity.
B. Increases efficiency (ii) Job of the manager is to give
common direction to individual efforts.
(iii) Organisation has to work in an
environment which is constantly
changing.
Identify the correct options

A B A B
a) (ii) (iii) (b) (iii) (i)
c) (i) (iii) (d) (ii) (i)

35. Which managerial function ensures that the right people with the right
qualifications are available at the right place and time to accomplish the goals
of the organisation?

(a) Planning
(b) Organising
(c) Staffing
(d) Directing

36. Which of the following statements is false with respect to coordination?

(a) Coordination unifies unrelated or diverse interests into purposeful work

activity.
(b) The purpose of coordination is to secure unity of action in the realisation of a
common purpose
(c) Coordination is not a one-time function but a continuous process.
(d) None of the above

37. Which of the following is a cost benefit analysis?

(a) Effectiveness
(b) Efficiency
(c) Both (a) and (b)
(d) None of these

38. Match the columns to identify the

Column I Column II
A. Functional differentiation (i) When all departments have their
own objectives, policies and their own
style of working
B. Specialisation (ii) When organization is performing on
large scale and more people are
employed
(iii) When more complexities of
modern technology and diversity of
task is to be perfomed

Identify the correct option

A B A B
a) (ii) (i) (b) (i) (iii)
c) (iii) (i) (d) (i) (ii)

39. A and B, both got training from National School of Drama, New Delhi
but they perform differently. Which feature of art is associated with the above
fact?

(a) Based on practice and creativity

(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalised application

40. A doctor has to obtain certificate from the Medical Council medical
profession. Which feature of the profession is revealed here?

(a) Ethical code of conduct

(b) Restricted entry
(c) Service motive
(d) Professional association

41. The sales department accuses production department for the poor sales due
to late delivery of goods, production department accuses purchase department
for not delivering the raw material in time and purchase department accuses
finance department for not releasing funds on time. Which quality of
management is missing in the above situation?

(a) Planning
(b) Cooperation
(c) Coordination
(d) Poor hierarchy
42. Match the columns

Column I Column II
A. The forces that binds all other (i) Planning
functions of management
B. Doing the right task, completing (ii) Coordinating
activities and achieving goals
C. Doing the task correctly with (iii) Efficiency
minimum cost.
D. Setting goals (iv) Effectiveness

Identify the correct option

A B C D
a) (i) (ii) (iv) (iii)
b) (iv) (ii) (iii) (i)
c) (i) (iv) (iii) (ii)
d) (ii) (iii) (iv) (i)

43. Which of the following statements is true as management as a science?

(a) Existence of theoretical knowledge

(b) Based on practice and creativity
(c) Principles based on experimentation
(d) Professional association

44. To oversee the efforts of the workforce is the function of

(a) Operational or supervisory management

(b) Top level management
(c) Middle level management
(d) None of the above

45. Which of the following is the function of lower level management?

(a) To integrate diverse elements and coordinate the activities of different
departments.
(b) To know the business environment and its implications for the survival of the
firm
(c) To be responsible for implementing and controlling plans and strategies
developed by the top management.
(d) To interact with the actual work force and pass on instructions of the middle
management to the workers

46. Geeta is working in a private sector bank. One of her key function relates to
the formulation of the overall organisational goals and strategies of the bank.
Identify the level of management at which she is working?

(a) Lower Level

(b) Top Level
(c) Middle Level
(d) None of these

47. Ram has recently joined AMV Limited a company manufacturing

refrigerator.
He found that his department was under-staffed and other departments were
not cooperating with his department for smooth functioning of the organisation
Therefore, He ensured that his department has the required number of
employees and its cooperation with other departments is improved.

Identify the level at which Ram was working

(a) Top Level

(b) Middle Level
(e) Lower Level
(d) None of these

48. Through their efforts quality of output is maintained, wastage of materials

minimised and safety standards are maintained. Which level of management is
highlighted in aforesaid statement?

(a) Top level of management

(b) Middle level of management
(c) Operational level of management
(d) None of the above
49. Which of the following functions is performed by the middle-level
management?

(a) Analysis of business environment and its implication for survival of

organisation.
(b) Maintenance of quality output and minimisation of wastage
(c) Formulation of organisational goals and strategies
(d) Interpretation of the policies framed by the top management

50. Human Resource Department of any organisation has to ensure the

adequate number of employees available throughout the organisation. At which
level a human resource manager works?

(a) Top-level management

(b) Middle-level management
(c) Operational management
(d) All of the above

51. Hari is responsible for taking decision on which machinery to be purchased

to improve the productivity of the organisation. At which level Hari is working?

(a) Top Level

(b) Middle Level
(c) Lower Level
(d) Supervisory Level

52. Which of the following points supports the fact that Management is a
Profession ?

(a) Service motive

(b) Personalised application
(c) Principles based on experimentation
(d) Based on practice and creativity

53. Superintendent works at which level of management?

(a) Operational level of management

(b) Middle level of management
(c) Top level of management
(d) Either (b) or (c)

54. Policy formulation is the function of

(a) top level managers

(b) middle level managers
(c) operational management
(d) All of the above

55. “Deciding in advance what is to be done, how it is to be done, when it is to

be done", highlights which function of the management?

(a) Organising
(b) Planning
(c) Directing
(d) Controlling

56. Match the columns on the basis of nature of management.

Column I Column II
A. Principles are based on observed (i) Management as an art
and experimentation
B. Principles are based on practice and (ii) Management as a profession
creativity
(iii) Management is a science

Identify the correct options

A B
(a) (ii) (iii)
(b) (iii) (i)
(c) (i) (iii)
(d) (ii) (i)

57. Following are the management functions against their respective aspects:

Managerial Functions Aspects

A. Planning (i) Deviation
B. Staffing (ii) Objectives
C. Direction (iii) Abilities
D. Controlling (iv) Leadership

Select the most appropriate combination

A B C D A B C D
(a) (iv) (iii) (ii) (i) (b) (iv) (i) (iii) (ii)
(c) (ii) (iii) (iv) (i) (d) (iii) (i) (ii) (iv)

58. Which one of the following sequences of process of management is correct?

(a) Planning, controlling, staffing, organising

(b) Staffing, planning, controlling, organising
(c) Planning, organising, staffing, controlling
(d) Organising. staffing, controlling, planning

59. Match the functions of management with their respective examples.

Functions of Management Examples

A. Planning (i) Conform actual results with planned
results
B. Organising (ii) Bridge the gap between where we
are and where we want to go.
C. Staffing (iii) Establishing authority responsibility
relationship
D. Directing (iv) Right people for the right job
E. Controlling (v) Putting resources into action

Identify the correct option

A B C D E A B C D E
(a) (i) (v) (iv) (ii) (iii) (b) (i) (iv) (iii) (ii) (iv)
(c) (ii) (iii) (iv) (v) (i) (d) (iii) (iv) (i) (v) (ii)

60. Ajay joins a garment factory as a plant supervisor in Lucknow. He observes

that the output of some workers is very low as compared to the standards set
for their performance. On analysing the reasons for the same, he finds out that
a lot of time of the workers is wasted in the requisite material issued from
getting the store. Whereas on asking. The storekeeper complains that there is
no harmony in the working of the production department as a whole. Everyday
the workers approach him at the last minute to procure different kinds of

threads, laces, mirrors, buttons, etc. If it is not available in the store then he has
to place an order with the purchase officer. As a result, a lot of time of the
workers is wasted. So, in order to integrate the various production activities,
henceforth, Ajay ensures that the storekeeper is informed well three days in
advance about the requisite material. Consequently, the storekeeper is able to
keep the material ready for the workers every morning in accordance with their
requirements.

In context of the above case, identify quality of management that Ajay has
introduced in the working of the production department as a corrective
measure to control the output of the workers.

(a) Organising
(b) Planning
(c) Coordinating
(d) Directing