FINALTERM  EXAMINATION
Spring 2010
MGT503- Principles of Management (Session - 2)
Shared by Raza Tahir
 
Time: 90 min
M - 69
Question No: 1    ( M - 1 )    .
 Promoting team spirit within the organization is called:
       ► Stability of tenure of personnel
       ► Remuneration
       ► Centralization
       ► Esprit de corps
   
Question No: 2    ( M - 1 )    .
 Through technological and managerial process inputs of an organization are transformed into:
       ► Output
       ► Feedback
       ► Feed forward
       ► Transformation
   
Question No: 3    ( M - 1 )    .
 Constituencies in an organization’s external environment that are affected by the organization’s decisions and actions are called:
       ► Stakeholders
       ► Advisories
       ► Beneficiaries
       ► Environmentalists
Question No: 4    ( M - 1 )    .
 The culture of an organization is largely determined by:
       ► Top management
       ► Employees
       ► Stockholders
       ► The company founders
   
Question No: 5    ( M - 1 )    .
 The set of processes involved in creating or determining the strategies of the organization is called:
       ► Strategy formulation
       ► Strategy implementation
       ► Strategy evaluation
       ► Strategy imitation
   
Question No: 6    ( M - 1 )    .
 When the strength provides superior and unique customer value and is difficult to imitate then the distinctive competence creates a sustainable:
       ► Competitive advantage
       ► Scope
       ► Resource deployment
       ► Effective strategy
Question No: 7    ( M - 1 )    .
 Most managers believe that if an MBO (management by objective) program is to be successful, it must start at:
       ► Non-managerial level
       ► Top Level
       ► Middle level
       ► Lower level
   
Question No: 8    ( M - 1 )    .
 Which of the following is the set of strategic alternatives that an organization chooses from, as it manages its operations simultaneously across several industries and several markets?
       ► Business-level strategy
       ► Corporate-level strategy
       ► Functional-level strategy
       ► Market-level strategy
   
Question No: 9    ( M - 1 )    .
 ABC Company continues to offer the same quality beauty products it has for the last 10 years. The company is successful and has no current plans for change. Which of the following types of strategies is it employing?
       ► Growth
       ► Stability
       ► Retrenchment
       ► Combination
   
Question No: 10    ( M - 1 )    .
 A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services is called:
       ► Deliberate strategy
       ► Differentiation strategy
       ► Emergent strategy
       ► Focus Strategy
Question No: 11    ( M - 1 )    .
 In which organizational structure employee have two  managers?      
       ► Team
       ► Learning
       ► Boundaryless
       ► Matrix
   
Question No: 12    ( M - 1 )    .
 Suppose that motivated employees are in great tension. In order to relieve this tension they should:
       ► Involve in entertaining activities                                                                                                                                                                                                                                                                                                            
       ► Achieve their personal Goal
       ► Reduce putting efforts
       ► Exert more efforts
   
Question No: 13    ( M - 1 )    .
 In Equity theory, which of the following term is used for persons, systems or selves against which individuals compare themselves?
       ► Model
       ► Referent
       ► Leader
       ► Professional
   
Question No: 14    ( M - 1 )    .
 Which of the following is one of the seven traits associated with leadership?
       ► Fluency of speech
       ► Honesty
       ► Appearance
       ► Social class
   
Question No: 15    ( M - 1 )    .
 Women tend to use which of the following leadership style?
       ► Autocratic
       ► Laissez-faire
       ► Dictatorial
       ► Democratic
Question No: 16    ( M - 1 )    .
 It is most appropriate to use oral communication when you have to communicate:
       ► A monthly report to the CEO on company performance
       ► An impersonal message to a group of people
       ► A lengthy welcoming message to a new salesperson
       ► A brief, time sensitive personal massage
   
Question No: 17    ( M - 1 )    .
 Direct supervision is the best-known form of which of the following control?
       ► Feed forward
       ► Concurrent
       ► Feedback
       ► Management
   
Question No: 18    ( M - 1 )    .
 Which of the following is a process that involves managers from all parts of the organization in the formulation of strategic goals?
       ► Strategic organizing
       ► Strategic management
       ► Strategic positioning
       ► Strategic planning
   
Question No: 19    ( M - 1 )    .
 Which of the following is the disadvantage of the Process departmentalization?
       ► Time consuming process
       ► Cost of Production is high
       ► Can be used only with certain type of products
       ► Duplication of functions across the departments
   
Question No: 20    ( M - 1 )    .
 According to Adam Smith, the division of labor results in:
       ► Increased worker's motivation
       ► Decreased worker's specialization
       ► Increased worker's productivity
       ► Decreased worker's motivation
Question No: 21    ( M - 1 )    .
 Which of the following terms is sometimes used to describe picking a course of action that is satisfactory under the circumstances?
       ► Escalation of commitment  
       ► Satisficing
       ► Risk
       ► Bounded rationality
   
Question No: 22    ( M - 1 )    .
 Which of the following order is correct about strategy formulation?
       ► Developing specific strategies, identifying the mission and strategic goals, conducting competitive analysis
       ► Identifying the mission and strategic goals, conducting competitive analysis, developing specific strategies
       ► Identifying the mission and strategic goals, developing specific strategies, conducting competitive analysis
       ► Developing specific strategies, conducting competitive analysis, identifying the mission and strategic goals
   
Question No: 23    ( M - 1 )    .
 When we talk about an organization’s core technology, we mean organization’s:
       ► Less important technology
       ► Most important technology
       ► All technologies the organization is using
       ► Technology that is never used
   
Question No: 24    ( M - 1 )    .
 “What motivates us” relates to which of the following type of motivation theory?
       ► Content Theories of motivation
       ► Process theories of motivation
       ► Reinforcement theories of motivation
       ► Hawthorne studies
   
Question No: 25    ( M - 1 )    .
 Mr. A is working as machine operator and he has to take precautionary measures to keep himself safe from any injury. Which of the following needs is critical for Mr. A?
       ► Social   
       ► Self actualization
       ► Esteem
       ► Safety
    
Question No: 26    ( M - 1 )    .
 Saad, a new employee has observed that one of his colleagues is being warned by the manager on coming late. Saad decided to come on time to avoid such warning, manager has used which of the following behavior modification method?
       ► Extinction
       ► Negative reinforcement
       ► Punishment
       ► Positive reinforcement
Question No: 27    ( M - 1 )    .
 According to Goal setting theory which of the following is important while setting the goals?
       ► Goal commitment
       ► All of the given options
       ► Goal specificity
       ► Goal acceptance
   
Question No: 28    ( M - 1 )    .
 Mr. A has been given the project of collecting data on students’ motivation from different institutes. He is performing the tasks by putting all of his efforts because he will be given bonus pay if he fulfills his task on time. He is influenced by which of the following powers of his boss?
       ► Reward Power
       ► Coercive Power
       ► Referent Power
       ► Expert Power
   
Question No: 29    ( M - 1 )    .
 Amir has very good communication skills and inspires his followers through his personal appeal and confidence. Which leadership styles Amir adopts?
       ► Visionary
       ► Charismatic
       ► Transformational
       ► Laissez fair
   
Question No: 30    ( M - 1 )    .
 The behavior that arises among individuals who have previously worked in any other groups is called:
       ► Primacy
       ► Carryover behavior
       ► Group cohesiveness
       ► Group behavior
   
Question No: 31    ( M - 1 )    .
 Controlling function is important at which level of organizations?
       ► Strategic
       ► Tactic
       ► Operation
       ► All of the given options
Question No: 32    ( M - 1 )    .
 A performance measurement tool that covers four areas "financial, customer, internal processes, and people" and that can enhance company’s performance is called:
       ► Benchmarking
       ► Cyber control system
       ► Non-cybernetic control system
       ► Balanced scorecard
   
Question No: 33    ( M - 1 )    .
 In order to successfully attain the organizational targets & customer satisfaction, in which of the following area managers have to concentrate?
       ► Co-ordination with subordinates & peers
       ► Feedback from internal & external environment
       ► Integrated network of departments & divisions
       ► All of the given options
   
Question No: 34    ( M - 1 )    .
 In order to deal against global competition which of the given approach is generally adopted by different countries?
       ► Concentrate on producing cheap products
       ► Target the elite class of the society only
       ► Draft cooperation agreement with other countries
       ► Enhance profit margins by setting high prices
   
Question No: 35    ( M - 1 )    .
 Cognitive ability of an individual effects the decision making process in which of the following manner?
       ► Can not utilize the available resources
       ► Can not interpret all available information
       ► Can not provide required financial resources
       ► Can not control the external situations
Question No: 36    ( M - 1 )    .
 While scanning the environment, which of the given element is considered at the most, by the organizations?
       ► Internal environment
       ► Task external environment
       ► Mega external environment
       ► Domestic environment
   
Question No: 37    ( M - 1 )    .
 Which of the element of SWOT analysis is most useful in developing competitive advantage of a firm?
       ► Strength
       ► Weakness
       ► Opportunity
       ► Threat
   
Question No: 38    ( M - 1 )    .
 All of the following are the characteristics of Max Weber’s ideal bureaucracy EXCEPT:
       ► Formalization of rules and procedures
       ► Impersonality in application of rules and sanctions
       ► Production enhancement through employee empowerment
       ► Specialization of labor
Question No: 39    ( M - 1 )    .
 Which of the following is called an input to an organizational system?
       ► Employees
       ► Products
       ► Services
       ► Customers
   
Question No: 40    ( M - 1 )    .
 Decisions should be made after a thorough:
       ► Action
       ► Planning
       ► Investigation
       ► Proceeding
   
Question No: 41    ( M - 1 )    .
 In order to make organization more flexible and responsive through employee participation, organization should tend towards which of the following?
       ► Decentralization
       ► Globalization
       ► Departmentalization
       ► Widen the span of control
   
Question No: 42    ( M - 1 )    .
 With respect to five hierarchical needs of Marlow's theory, at which level transformational style is more beneficial?
       ► Physical needs
       ► Safety needs
       ► Social needs
       ► Self-actualization needs
Question No: 43    ( M - 1 )    .
 A third member in a group of three individuals significantly:
       ► Assists in taking decisions through majority agreement
       ► Adds valuable suggestions and ideas than other two
       ► Maintains unbiased environment within group
       ► Helps in decreasing individualism and enhances cohesiveness
   
Question No: 44    ( M - 1 )    .
 Organic control is best described as the controlling mechanism of:
       ► Learning organization
       ► Bureaucratic organization
       ► Mechanistic organization
       ► Centralized organization
   
Question No: 45    ( M - 1 )    .
 Which of the following groups usually adjourns?
       ► Task group
       ► Command group
       ► Friendship group
       ► Functional group
   
Question No: 46    ( M - 1 )    .
 Which of the given factor significantly differentiate ‘Teams’ from ‘Groups’?
       ► Teams consisted of at least 5 members, whereas group with at least 2 members
       ► Teams have common goal which is missing among the groups
       ► Teams are more synergized than groups
       ► Teams interact regularly while groups occasionally
   
Question No: 47    ( M - 1 )    - Please choose vuzsone
 MA. Sohail, CEO of Leads Group has to increase the salaries of marketing staff because of high turnover, demand of more salary and lack of motivation in the marketing department. Which of the following force created the need for change in the salary of marketing department?
       ► Change in implemented technology
       ► Change in the regional economy
       ► Change in employees’ behavior
       ► Change in marketing strategy
Question No: 48    ( M - 1 )    .
 When public sector organizations serve in terms of varying needs of children, disabled & adults, it is said to be adopting which kind of departmentalization?
       ► Product
       ► Geographic
       ► Outcome
       ► Customer 
   
Question No: 49    ( M - 3 )
 Enlist any three powers by which leaders can affect/influence the behavior of others.
ANS:
·        Increase in circle of tolerance
·        Align values to the environment we can create
·        Increase in references that helpful.
   
Question No: 50    ( M - 3 )
 In which areas Market Control is implemented?
ANs:
   
Question No: 51    ( M - 5 )
 “Leadership is both process and a property”. Explain.
ANS:
Leadership is a trait which comprises of many virtues and qualities. It is a process but at the same time having attained all the qualities of a leader, it can also be termed as a property. Leadership is a multi-disciplined and a multi-dimensional trait which comprises of different elements.
Places where a decision is required to be taken may require a leadership process to reach a specific decision. But at times when there are individuals who look forward and join an individual since they think that he is the one who will assist them in achieving their goals would be termed as a property. Corporations and businesses want to acquire such managers who have the charisma to make people follow them blindly. In such cases leadership becomes a property    
Question No: 52    ( M - 5 )
 How would your differentiate Job enlargement, job rotation and job enrichment?
ANS:
In job enlargement as the name shows, the span of responsibilities is more wider with several tasks which makes the job more challenging, where the worker get more work load which decease the efficiency.
In job rotation worker are being shifted through a set of jobs in a planned manner, and as compare to job enlargement here tasks are esy and responsibilities are not so heavy. And the basic aim is not make the job challenging but to develop and train the employ.
job enrichment is the upgrading of job task mix the reason to do so is to increase growth potential , responsibilities and achievement’s.   
Question No: 53    ( M - 5 )
 For what reasons organizations are inclined towards developing & implementing a strong control system?
ANS:
An organization is only successful when it has a good control system. Controlling is one of the major management functions. A good control system would not only include a good monitoring system but at the same time it would have the inbuilt system to rectify any faults at any stage of the production process. The reasons the organizations are inclined towards developing and implementing a strong control system can be elicited as under:
•        To develop and maintain standards
•        To have a regular check on the standards so that they are not compromised
•        Recognize good performances and give recognition to the deserving individuals.
•        Take corrective action where it is felt that the standards have not been met and there was a weakness or a weak link was observed
•        Keep on revising the standards as per requirement to retain a competitive advantage
•        The good control system would also incorporate any weaknesses of the top management and highlight the measures to be taken by them.