Pariksha Vol 23-

Solution MANAGEMENT Test Paper - 3

1. The following technique is used to evaluate an employee individually.

(a) Graphic Rating Scale
(b) Ranking
(c) Paired Comparison
(d) Forced Distribution
Solution a
 Graphic Rating Scale is a type of performance appraisal method in which
traits or behaviours that are important for effective performance are listed out
and each employee is rated against these traits. The rating scale method offers
a high degree of structure for appraisals. Each employee trait or characteristic
is rated on a bipolar scale that usually has several points ranging from "poor"
to "excellent" (or some similar arrangement).
 Ranking Method is the oldest and simplest formal systematic method of
performance appraisal in which employee is compared with all others for the
purpose of placing order of worth. The employees are ranked from the highest
to the lowest or from the best to the worst.
 Paired comparison method of evaluation is one in which each employee and
job is compared with each other employee and job. Employee comparisons are
performed usually on the basis of overall performance
 Forced distribution is a method of employee performance appraisal that many
companies use. It is a controversial workforce management tool that uses
 intense yearly evaluations to identify a company's best and worst performing
employees, using person-to-person comparisons.

2. In this technique, managers prepare lists of statements of very effective

and very ineffective behavior of an employee.
(a) Critical Incident Technique
(b) Forced Choice
(c) Essay Evaluation
(d) Management by Objective
Solution a
 The critical incident method of performance appraisal involved identifying and
describing specific events (or incidents) where the employee did something
really well or something that needs improvement. It's a technique based on the
description of the event, and does not rely on the assignment of ratings or
rankings, although it is occasionally coupled with a ratings type system.
 Essay performance appraisals are for use in addressing performance factors
in the most comprehensive manner possible. Managers who write essays
about employee performance assess virtually every aspect of the employee
performance. Essays include performance assessments concerning job
knowledge and proficiency, developmental activities, interpersonal
communication and business ethics and philosophy. This type of
performance appraisal is generally suited to mid- to senior-level managers.
Essay performance appraisals require a substantial investment of the
manager’s time – preparation, construction and discussion are three major
points in the essay format performance appraisal.
 MBO (management by objectives) methods of performance appraisal are
results-oriented. That is, they seek to measureemployee performance by
examining the extent to which predetermined work objectives have been met.
Usually theobjectives are established jointly by the supervisor and subordinate.
3. Which of the following is not an objective of performance appraisal?
(a) Assessment of Performance
(b) Measuring the Efficiency
(c) Maintaining disciplinary machinery
(d) Designing Organizational Goal
Solution c
 The main objective of performance appraisals is to measure and improve the
performance of employees and increase their future potential and value to the
company. Other objectives include providing feedback, improving
communication, understanding training needs, clarifying roles, goals and
responsibilities and determining how to allocate rewards.

4. …………..is not a step of performance appraisal

(a) Communicating Standards
(b) Comparing Actual with Standards
(c) Discussing the Results
(d) Adjusting the Standards
Solution d
6 Steps Involved In The Process Of Performance Appraisal
 Necessary Steps in Process Of Performance Appraisal.
 Step 1: Establish performance expectations and standards.
 Step 2: Providing regular feedback.
 Step 3: Measure actual performance.
 Step 4: Compare actual performance with standards.
 Step 5: Discuss results of appraisal.
 Step 6: Come up with corrective measures.

5. How often should an employee be assessed

(a) Monthly
 (b) Yearly
(c) Quarterly
(d) Any of them
Solution d
 Self-explanatory
6. HRD systems are designed to suit the
(a) Organizational Culture
(b) Human Resources
(c) Economy of the county
(d) Markets
Solution a
 HRD systems must be designed differently for different organizations. Although the basic
principles may remain the same, the specific components, their relationships, the processes
involved in each, the phasing, and so on, may differ from one organization to another
organization. Designing an integrated HRD system requires thorough understanding of the
principles and models of human resource development and a diagnosis of the organization
culture, existing HRD practices in the organization, employee perceptions of these practices,
and the developmental climate within the organization

7. Which out of the following is not an element of staffing?

(a) Recruitment & Selection
(b) Placement & Orientation
(c) Training & Development
(d) None of the above
Solution d
 Elements of Staffing include:
 Estimating Manpower Requirements:
 Recruitment:
 Selection:
 Placement and orientation:
 Training and Development:
 Performance Appraisal:
 Promotion:
 Compensation:
8. The organization which has no interaction with its external environment is
called.
(a) Open System
(b) Closed System
(c) Non-interceptive System
(d) Moderated System
Solution b
 There are two types of systems in organizations: closed systems and open
systems. An open system interacts with its environment through giving and
receiving information.
 Closed systems are closed off from the outside environment, and all interaction
and knowledge is transmitted within the closed system only. Closed systems
can hamper growth since the flow of information stays within the system and
has no chance to interact with or build on knowledge from the outer
environment

9. Functional organization groups jobs/people by which of the following?

(a) Tasks they perform
(b) Territories they serve
(c) Products or services they manufacture
(d) Type of customers they serve
Solution a
 A functional organization structure is a hierarchical organization structure
wherein people are grouped based on their area of specialization. These people
are supervised by a functional manager with expertise in the same field. This
 expertise helps him to effectively utilize the skills of employees, which
ultimately helps organizations in achieving its business objectives.
 People are classified according to the function they perform within the
organization in this kind of organization structure. The organizational chart for
a functional organization structure shows the president, vice president, finance
department, sales department, customer service, administration, etc.

10. A plan developed to carry out a course of action that is not likely to be
repeated in the future is called?
(a) Single use Plan
(b) Specific Plan
(c) Reaction Plan
(d) Directional Plan
Solution a
 A single use plan is a set of activities aimed at achieving a specific goal within
a particular budget and time period that is unlikely to be repeated in
future. Examples of a single use plan that could be employed by a business
might be an advertising campaign for a new product launch or an integration
plan for a recent acquisition
 A specific plan is a document designed to implement the goals and policies of
the General Plan.
 A reaction plan is the action that is taken in a control plan when abnormal
events or a non-conforming phenomenon have been detected.
 Directional strategy is the game plan a company decides on and implements to
grow business, increase profits, and accomplish goals and objectives. Small
businesses to large corporations can create their own types of directional
strategies that work for the focus and scope of each individual business.

11. Which of the following is true concerning technical and managerial skills?
 (a) Human skills and technical skills remain equally important as
managers move to higher levels.
(b) Technical skills increases and human skills decrease as managers
move to higher levels
(c) Human skills remain necessary & technical skills decrease as
managers move to higher levels.
(d) Both human skills and technical skills decrease as managers move to
higher levels
Solution c

12. Determining how best to group activities and resources is defined as

(a) Leading
(b) Planning & Decision Making
(c) Controlling
(d) Organizing
Solution d
 Organizing involves assigning tasks, grouping tasks into departments,
delegating authority, and allocating resources across the organization. During
the organizing process, managers coordinate employees, resources, policies,
and procedures to facilitate the goals identified in the plan.

13. ……….skills refer to the manager’s ability to prioritize work, to work

efficiently, to delegate appropriately
(a) Technical
(b) Time Management
(c) Conceptual
(d) Decision Making
Solution b
 “Time management” is the process of organizing and planning how to divide
your time between specific activities. Good time management enables you to
work smarter – not harder – so that you get more done in less time, even when
time is tight and pressures are high. Failing to manage your time damages your
effectiveness and causes stress.
 Technical skills are the abilities and knowledge needed to perform specific
tasks. They are practical, and often relate to mechanical, information
technology, mathematical, or scientific tasks. ... Many technical skills require
training and experience to master.
 Conceptual skills allow a manager to visualize the entire organization and
work with ideas and the relationships between abstract concepts.
 In its simplest sense, decision-making is the act of choosing between two or
more courses of action. In the wider process of problem-solving, decision-
making involves choosing between possible solutions to a
problem. Decisions can be made through either an intuitive or reasoned
process, or a combination of the two.
14. Match the following:

(i) Leadership a) Any condition to be taken into account when

designing the whole or part of an organization

(ii) Power b) Influencing people towards the achievement

of
goals
(iii) Motivation c) The authority to influence the behavior of
others

(iv) Contingency d) The effect of internal processes and external

Factor forces that direct the behaviors

(a) i-a,ii-b,iii-c,iv-d
(b) i-b,ii-c,iii-a,iv-d
(c) i-c,ii-b,iii-d,iv-a
(d) i-b,ii-c,iii-d,iv-a
Solution d

15. Which one out of the following is not a leadership theory?

(a) Motivational theory of leadership
(b) Behavioural theory of leadership
(c) Trait theory of leadership
(d) Situational theory of leadership

Solution a
 The various leadership theories are: 1. Trait Theory of Leadership 2.
Behavioral Theories 3. Contingency (Situational) Theories 4. Transformational
Leadership Theory.

16. According to the Path-Goal theory of House and others, what do leaders
assume?
(a) Leaders should smooth the path towards a fixed goal
 (b) Leaders cannot influence subordinates through the latter’s
expectations
(c) Different leaders are needed in different circumstances
(d) Subordinates are motivated by believing that more effort improves
job performance
Solution a
 Path–goal theory assumes that leaders are flexible and that they can change
their style, as situations require. The theory proposes two contingency
variables, such as environment and follower characteristics, that moderate the
leader behavior-outcome relationship. Environment is outside the control of the
follower-task structure, authority system, and work group. Environmental
factors determine the type of leader behavior required if the follower outcomes
are to be maximized. Follower characteristics are the locus of control,
experience, and perceived ability. Personal characteristics of subordinates
determine how the environment and leader are interpreted. Effective leaders
clarify the path to help their followers achieve goals and make the journey
easier by reducing roadblocks and pitfalls. The theory is useful because it
reminds leaders that their central purpose as a leader is to help subordinates
define and reach their goals in an efficient manner.[

17. Plan in which employees get some ownership in organization for which
they are working is classified as -
(a) Employee stock options plan
(b) Employee stock ownership plan
(c) Profit ownership plan
(d) Recruitment ownership plan
Solution a
 Employee Stock Options Plans. Many companies use employee stock options
plans to compensate, retain, and attract employees. These plans are contracts
 between a company and its employees that give employees the right to buy a
specific number of the company's shares at a fixed price within a certain period
of time.
18. Arrange the following in order,
(i) Promotion
(ii) Performance Appraisal
(iii) Recruitment
(iv) Training& Development

(a) (iii), (ii), (i), (iv)

(b) (ii), (iii), (i), (iv)
(c) (iii), (iv), (ii), (i)
(d) (ii), (iv), (iii), (i)
Solution c
 Self-explanatory
19. Early leadership trait research sought
(a) To clarify the need for leadership traits
(b) Find the trait status of leaders
(c) Identification of traits that leaders could use
(d) Characteristics that might differentiate leaders from non-leaders
Solution d
 The trait model of leadership is based on the characteristics of many leaders -
both successful and unsuccessful - and is used to predict leadership
effectiveness. The resulting lists of traits are then compared to those of
potential leaders to assess their likelihood of success or failure.
 Scholars taking the trait approach attempted to identify physiological
(appearance, height, and weight), demographic (age, education and
socioeconomic background), personality, self-confidence, and aggressiveness),
intellective (intelligence, decisiveness, judgment, and knowledge), task-related
 (achievement drive, initiative, and persistence), and social characteristics
(sociability and cooperativeness) with leader emergence and leader
effectiveness.
 Successful leaders definitely have interests, abilities, and personality traits that
are different from those of the less effective leaders. Through many researches
conducted in the last three decades of the 20th century, a set of core traits of
successful leaders have been identified. These traits are not responsible solely
to identify whether a person will be a successful leader or not, but they are
essentially seen as preconditions that endow people with leadership potential.

20. What is the key difference of the LPC contingency theory to other
contingency theories?
(a) Assumes Situations Cannot Change
(b) Assumes Followers Cannot Change
(c) Assumes Organizations Cannot Change
(d) Assumes Leaders Cannot Change
Solution d
 The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler,
a scientist who studied the personality and characteristics of leaders.
The model states that there is no one best style of leadership. Instead, a leader's
effectiveness is based on the situation.. Fiedler believed that an individual's
leadership style is the result of their experiences throughout the lifespan,
therefore it is extremely difficult to change Fiedler would argue that rather than
teaching people a particular leadership style, instead one should concentrate on
helping people understand their particular leadership style and learn how to
match that style to the particular situation). In order to help one understand
their specific leadership style, Fiedler developed the Least-Preferred Coworker
Scale). According to Fiedler, because leadership behavior is fixed effectiveness
could only be improved by restructuring tasks or changing the amount of
 power the leader had over organizational factors such as salary, disciplinary
action, and promotions Fiedler's model does have some weaknesses. For
example, some leaders may be more effective in certain situations than others).
The LPC scale can be questioned because the assessment is performed by one
individual on another
 The theory holds that the effectiveness of a task group or of an organization
depends on two main factors: the personality of the leader and the degree to
which the situation gives the leader power, control, and influence over the
situation or, conversely, the degree to which the situation confronts the leader
with uncertainty

21. ……………….need involves the desire to affiliate with and be accepted by others.
(a) Esteem
(b) Belongingness
(c) Safety
(d) Self Actualization
Solution b
Maslow’s Need Heirarchy

22. The philosophy of management known as total quality management

developed primarily out of the work of
 (a) Henri Fayol
(b) Frederick Taylor
(c) Robert McNamara
(d) Edwards Deming
Solution d
 Deming is best known for his work in Japan after World War II, particularly
his work with the leaders of Japanese industry. That work began in July and
August 1950, in Tokyo [4], when Deming delivered speeches on what he
called "Statistical Product Quality Administration". Many in Japan credit
Deming as one of the inspirations for what has become known as the Japanese
post-war economic miracle of 1950 to 1960, when Japan rose from the ashes of
war on the road to becoming the second-largest economy in the world through
quality managing processes partially influenced by the ideas Deming taught:
 Better design of products to improve service
 Higher level of uniform product quality
 Improvement of product testing in the workplace and in research centers
 Greater sales through side [global] markets

23. Which of the following functions or activities requires recruiting and

placing qualified personnel needed for the organization so that it may
achieve its objectives and goals?
(a) Planning
(b) Staffing
(c) Organizing
(d) Controlling
Solution b
 Staffing can be defined as one of the most important functions of management. It
involves the process of filling the vacant position through the right personnel at
the right job, at right time. It is a truth that human resource is the most important
 resource for every organization because in any organization all other resources
like- money, material, machine etc. can be utilized effectively and efficiently by
the positive efforts of human resource.
 Therefore it is very important that each and every person should get right position
in the organization so as to get the right job, according to their ability, talent,
aptitude, and specializations so that it will help the organization to achieve the
pre-set goals in the proper way by the 100% contribution of manpower. Thus it
can be said that it is staffing is an essential function of every business
organization

24. Leaders who inspire followers to transcend their own self-interests for the
good of the organization, and are capable of having an extraordinary
effect on followers are……………leaders.
(a) Transactional
(b) Transformational
(c) Democratic
(d) Autocratic
Solution b
 Transformational leadership is a theory of leadership where a leader works
with teams to identify needed change, creating a vision to guide the change
through inspiration, and executing the change in tandem with committed
members of a group;Transformational leaders have a vision of what they want
to achieve and the ability to clearly communicate this vision so that everyone
in the organization understands what is needed to achieve this vision. ...
 Courage: ...
 Self-motivation: ...
 Inspiration: ...
 Know your people: ...
 Set a company standard: ...
 Follow through:
25. The process by which a sender transmits content is known as
(a) Encoding
(b) Decoding
(c) Feedback
(d) Receiver
Solution a
 In order to convey meaning, the sender must begin encoding, which means
translating information into a message in the form of symbols that represent
ideas or concepts. This process translates the ideas or concepts into the coded
message that will be communicated.
 Encoding means the creation of a messages (which you want to communicate
with other person). On the other hand decoding means listener or audience of
encoded message. So decoding means interpreting the meaning of the
message. ... You will interpret and understand the message, what just been
said.
 Feedback is a response from the receiver that informs the sender how
the communication is being received in general
 In the communication process, the receiver is the listener, reader, or
observer—that is, the individual (or the group of individuals) to whom a
message is directed. Another name for receiver is audience or decoder. The
person who initiates a message in the communication process is called the
sender.
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