110+ Fundamentals of Management Solved MCQs

1.

The concept of ‘Management by Objectives’ was introduced by

A. Frederick Herzberg.
B. F.W. Taylor
C. Elton Mayo
D. Peter F. Drucker
Answer» D. Peter F. Drucker
2.

Scalar Chain denotes

A. a Production Process
B. an Appraisal Process
C. Span of Management.
D. authority from the highest to the lowest ranks.
Answer» D. authority from the highest to the lowest ranks.
3.

Which one of the following examples is not included in the intangible premises of planning.

A. Public Relations
B. Employee Morale
C. Labour Hours
D. Competitive Strength
Answer» C. Labour Hours
4.

Which one of the following elements is odd with Weber’s Six Major Principles?

A. Hierarchical Structure
B. Unity of Command
C. “In-focused” mission
D. Technical Qualifications.
Answer» B. Unity of Command
5.

Decisions which are repetitive and can be established well in advance to solve the day-today problems in an organization are known as

A. Programmed Decisions
B. Non-programmed Decisions
C. Personal Decisions
D. Heuristic Techniques
Answer» A. Programmed Decisions
6.

In the case of selecting candidates in an organization, the first step is

A. Preliminary Interview
B. Back ground Investigation
C. Blank Application
D. Medical Examination
Answer» C. Blank Application
7.

Reporting relationship is a step of

A. Planning
B. Organizing
C. Leading
D. Medical Examination
Answer» B. Organizing
8.

All the following principles are included in ‘Directing’ except

A. Harmony of Objectives
B. Unity of Command
C. Coordination
D. Follow up
Answer» C. Coordination
9.

Controlling involves 17

A. Determining the Objectives
B. Setting Standards of Performance
C. Identifying Activities for the Creation of Departments
D. Directing the People towards Accomplishment of Common Goals
Answer» B. Setting Standards of Performance
10.

‘No news is good news’ relate to

A. Historical Feedback Control
B. Predictive Feed Forward Control
C. Critical Point Control
D. Control by Exception
Answer» D. Control by Exception
11.

Authority is

A. Right to do something
B. Ability to do something
C. Derived from many sources
D. Not visible from organizational chart
Answer» A. Right to do something
12.

Vroom’s Theory of Motivation is known as

A. Need Hierarchy Theory
B. Equity Theory
C. Expectancy Theory
D. Theory X and Theory Y
Answer» C. Expectancy Theory
13.

Which one of the following needs is missing in the ‘Hierarchy of Needs’ Theory?

A. Psychological Needs
B. Physiological Needs
C. Safety Needs
D. Wealth Needs
Answer» D. Wealth Needs
14.

Which one of the following elements is associated with Herzberg’s Model?

A. Self – Actualization
B. Safety
C. Esteem
D. Hygiene
Answer» D. Hygiene
15.

Which one of the following methods is included in the ‘off-the-job-training’?

A. Coaching
B. Case Studies
C. Apprenticeship Training
D. Vestibule Training
Answer» B. Case Studies
16.

Under the Likert’s Four Management System, which one of the following adopts a paternalistic approach towards the subordinates?

A. System 1 – Exploitative Autocratic
B. System 2 – Benevolent Autocratic
C. System 3 – Consultative
D. System 4 – Democratic
Answer» B. System 2 – Benevolent Autocratic
17.

Which one of the following is not the merit of Oral communication?

A. Authenticity
B. Effective
C. Easy Communication
D. Instant Feedback
Answer» A. Authenticity
18.

‘Simulation’ is useful

A. to observe the behavior of a system
B. to find solution to the Waiting-line Problem
C. to optimize the objective function
D. to make decision under competition
Answer» A. to observe the behavior of a system
19.

Flow of communication among the same level of people is known as

A. Upward communication
B. Downward communication
C. Horizontal communication
D. Formal communication
Answer» C. Horizontal communication
20.

Which one of the following is not an objective of MIS?

A. To facilitate the Decision making process
B. To provide requisite information at each level of management
C. To support the Decision making Process
D. To recruit people for the system
Answer» D. To recruit people for the system
21.

Which one of the following is not included in Scientific Management technique?

A. Division of labour
B. Scientific selection
C. Training and placement of workers
D. Hierarchical Structure
Answer» D. Hierarchical Structure
22.

Under Fayol’s 14 Principles of Management, which one of the following factor is related with Esprit de Corps?

A. Division of work
B. Team Work
C. Personal ability
D. Personal interest
Answer» B. Team Work
23.

In the organization, reporting relationship is a function of

A. Planning
B. Organizing
C. Leading
D. Controlling
Answer» B. Organizing
24.

Which one of the following is not included in “The Managerial Activities”?

A. Commanding
B. Controlling
C. Accounting
D. Organizing
Answer» C. Accounting
25.

Heuristic techniques refer to

A. Trial and Error technique
B. Group Decision making technique
C. Brain Storming technique
D. Critical Problem Solving technique
Answer» A. Trial and Error technique
26.

Which one of the following is not correct in case of planning?

A. Planning is goal oriented
B. Planning is pervasive
C. Planning is discreet function
D. Planning is flexible
Answer» C. Planning is discreet function
27.

PERT stands for

A. Progressive Evaluation and Review Tool
B. Programme Evaluation and Review Technique
C. Programme Evaluation and Regression Technique
D. Progressive Evaluation and Regression Tool
Answer» B. Programme Evaluation and Review Technique
28.

‘Cybernetics’ relates to

A. Feed-back control
B. Feed-forward control
C. Steering control
D. Critical point control
Answer» A. Feed-back control
29.

Directing is a

A. Discreet process
B. Continuous process
C. One-way process
D. Circular process
Answer» B. Continuous process
30.

Which one of the following is an example of non-routine decisions?

A. Decision related to fill up the vacated position of an organization
B. Decision related to launch a new production plant
C. Decision related to restructure the organization for improvement
D. Decision related to take over a sick unit
Answer» B. Decision related to launch a new production plant
31.

In making a decision, ‘game theory’ is useful under conditions of

A. Certainty
B. Various probabilities
C. Competitive rivalry
D. Irregular demand
Answer» C. Competitive rivalry
32.

Referrent power is the

A. Power of ability to grant or withhold the rewards to others
B. Power of ability to punish others for not carrying out orders
C. Power of dominance over others through specialized knowledge
D. Power of attracting peoples towards a person himself or herself
Answer» D. Power of attracting peoples towards a person himself or herself
33.

Which one of the following techniques does not imply ‘On-the-job training’ method?

A. Apprenticeship training
B. T-Group training
C. Vestibule training
D. Self-improvement programmes
Answer» B. T-Group training
34.

Which leadership style permits quick decision making?

A. Democratic Style
B. Laissez Fair Leadership
C. Authoritarian Leadership
D. None of the above
Answer» C. Authoritarian Leadership
35.

Programmed decisions are concerned with

A. Basic decisions
B. Unique decisions
C. Repetitive and Routine decisions
D. Non-routine decisions
Answer» C. Repetitive and Routine decisions
36.

Channels of communication in an informal organization is known as

A. Grapevine
B. Gangplank
C. Upward communication
D. Downward communication
Answer» A. Grapevine
37.

When communication flows from top to bottom is known as

A. Upward communication
B. Downward communication
C. Horizontal communication
D. Formal communication
Answer» B. Downward communication
38.

An individual’s degree of like or dislike of oneself is known as

A. Self-belief
B. Self-concept
C. Self-efficacy
D. Self-esteem
Answer» C. Self-efficacy
39.

Close supervision, control of subordinates, centralization of authority, autocratic leadership styles are the features of

A. Need hierarchy theory
B. Two factor theory
C. Theory X
D. Theory Y
Answer» C. Theory X
40.

Existence, Relatedness and Growth (ERG) theory was propounded by

A. Alderfer
B. Likert
C. Vroom
D. Herzberg
Answer» A. Alderfer
41.

_________________ is called as the father of Scientific Management.

A. Henri Fayol
B. F.W. Taylor
C. Max Weber
D. Elton Mayo
Answer» B. F.W. Taylor
42.

Administrative function is the _______________ managerial function.

A. top-level
B. middle – level
C. lower – level
D. supervisory level
Answer» A. top-level
43.

______________ form the basis for the functioning of an organization.

A. Profits
B. Objectives
C. Policies
D. Strategies
Answer» C. Policies
44.

____________ is a means to an end.

A. Organising
B. Planning
C. Controlling
D. Coordinating
Answer» C. Controlling
45.

_____________ is the foundation of most successful actions of all enterprises.

A. Controlling
B. Planning
C. Organising
D. Directing
Answer» B. Planning
46.

____________ process is called a negative process.

A. Training
B. Placement
C. Selection
D. Induction
Answer» C. Selection
47.

Control by Exception is also known as ________________

A. Management by Exception
B. Management by Objectives
C. Decision making
D. Management Information System
Answer» A. Management by Exception
48.

_________ is concerned with the total manner in which a manager influences the actions of subordinates.

A. Planning
B. Organising
C. Directing
D. Staffing
Answer» C. Directing
49.

_______________ is the essence of management.

A. Directing
B. Coordinating
C. Controlling
D. Planning
Answer» B. Coordinating
50.

______________ refers to the process of passing information from one person to another and its understanding.

A. Planning
B. Communicating
C. Controlling
D. Motivating
Answer» B. Communicating
51.

_________ defines management as the process of getting things done by and through others.

A. Hicks
B. Massie
C. Fayol
D. Drucker
Answer» A. Hicks
52.

____________ has defined authority as the power to take decisions which guide the actions of others.

A. Simon
B. Barnard
C. Terry
D. Taylor
Answer» A. Simon
53.

_____________ flows from the top-level management to the bottom level management.

A. Authority
B. Performance
C. Responsibility
D. Accountability
Answer» A. Authority
54.

__________ power is the ability to punish others for not carrying out orders.

A. Reward
B. Legitimate
C. Expert
D. Coercive
Answer» D. Coercive
55.

The process of assigning work to others and giving them authority to do that is ________

A. Controlling
B. Organising
C. delegating authority
D. directing
Answer» C. delegating authority
56.

Under ____________ leadership system, goals are set and work-related decisions are taken by the subordinates.

A. Exploitative
B. Benevolent
C. Authoritarian
D. Democratic
Answer» D. Democratic
57.

__________ propounded the need-based theory of motivation.

A. Vroom
B. Porter
C. Maslow
D. Mc Gregor
Answer» C. Maslow
58.

Autocratic Leadership is also known as ______________ leadership.

A. Authoritarian
B. Democratic
C. free rein
D. participative
Answer» A. Authoritarian
59.

_____________ is not a quantitative technique of decision-making.

A. Linear programming
B. Game Theory
C. Management by Objectives
D. Simulation
Answer» C. Management by Objectives
60.

Decision making is expected to be based on ______________

A. competitors policies
B. rational thinking
C. government policies
D. workers activities
Answer» B. rational thinking
61.

Father of the Principles of Management is _________________

A. Drucker
B. Terry
C. Fayol
D. Taylor
Answer» C. Fayol
62.

Management is the art of _______________

A. managing customers
B. making super normal profit
C. keeping competitors under pressure
D. getting things done by groups of people
Answer» D. getting things done by groups of people
63.

Scientific Management is concerned with _______________

A. co-operation, not individualism
B. increased production through long experience
C. application of scientific principles to the management of production
D. increased sales
Answer» C. application of scientific principles to the management of production
64.

___________ is an intellectual process

A. Controlling
B. Planning
C. Organising
D. Directing
Answer» B. Planning
65.

The military organization leads to ______________

A. Specialization
B. unified control
C. over loading
D. over dependence
Answer» B. unified control
66.

Which one of the following is not a barrier to effective communication?

A. Selective Perception
B. Defensiveness
C. Emotions
D. Filtering
Answer» B. Defensiveness
67.

__________ refers to the introduction of a person to the job and the organization.

A. Induction
B. Selection
C. Recruitment
D. Placement
Answer» A. Induction
68.

____________ is the use of influence to motivate employees to achieve organizational goals.

A. Planning
B. Organising
C. Leading
D. Motivating
Answer» C. Leading
69.

The purpose of control is to ______________

A. fix standard
B. measure actual performance
C. find out deviation
D. (a), (b) & (c)
Answer» D. (a), (b) & (c)
70.

____________ is that managerial function which initiates organized action.

A. Directing
B. Organising
C. Leading
D. Motivating
Answer» A. Directing
71.

The elements of the management process are known as the _________ of management.

A. Functions
B. Nature
C. Concept
D. Scope
Answer» A. Functions
72.

Authority is derived from ____________

A. Position
B. Seniority
C. technical competence
D. qualifications
Answer» A. Position
73.

___________ power is derived from the formal position of a person in the organization.

A. Social
B. Coercive
C. Expert
D. Legitimate
Answer» D. Legitimate
74.

Concurrent Control is also known as ____________

A. Feedback Control
B. Feedforward Control
C. Steering Control
D. Critical Point Control
Answer» C. Steering Control
75.

__________ leadership is a compromise between laissez fair and autocratic leadership.

A. Persuasive
B. Democratic
C. Institutional
D. Free Rein
Answer» B. Democratic
76.

__________ of motivation is also known as Two factor Theory of Motivation.

A. Maslow’s Theory
B. Herzberg’s Theory
C. Mc Gregor’s Theory
D. Vroom’s Theory
Answer» B. Herzberg’s Theory
77.

____________ leader exercises complete control over the subordinates.

A. Autocratic
B. Democratic
C. Participative
D. Free Rein
Answer» A. Autocratic
78.

Dispersal of authority throughout the organization is ______________

A. Delegation of Authority
B. Decentralisation of Authority
C. Wide Span of Control
D. None of (A), (B) & (C)
Answer» B. Decentralisation of Authority
79.

________ is an act of choice wherein a person comes to a conclusion about what has to be done in a given situation.

A. Planning
B. Organising
C. Decision making
D. Controlling
Answer» C. Decision making
80.

___________ is the father of Management.

A. Fayol
B. Drucker
C. Taylor
D. David
Answer» B. Drucker
81.

_________ is the chain of the superiors existing from the highest authority to the lowest ranks.

A. Unity of Command
B. Unity of Direction
C. Scalar Chain
D. Authority
Answer» C. Scalar Chain
82.

Fayol viewed management as a process consisting of __________ functions which every manager performs.

A. 4
B. 5
C. 6
D. 7
Answer» B. 5
83.

Corporate Planning is done by the ____________

A. Top Level Management
B. Lower Level Management
C. Middle Level Management
D. Consultant
Answer» A. Top Level Management
84.

_________ refers to training conducted away from actual work setting.

A. Conference Method of Training
B. Coaching
C. Job Rotation
D. Vestibule Training
Answer» D. Vestibule Training
85.

__________ involves interpretation of the message by the receiver.

A. Encoding
B. Decoding
C. Feedback
D. Medium
Answer» B. Decoding
86.

___________ is that managerial function which analyses the alternatives available.

A. Planning
B. Organising
C. Directing
D. Staffing
Answer» A. Planning
87.

____________ is the essence of Management.

A. Decentralisaton
B. Span of Management
C. Training
D. Planning
Answer» D. Planning
88.

_______ refers to the process of passing information from one person to another.

A. Planning
B. Communication
C. Controlling
D. Motivation
Answer» B. Communication
89.

Which one of the following is not related to Control?

A. To fix the standard
B. To measure the actual performance
C. To find out the deviation
D. To communicate
Answer» D. To communicate
90.

Which one of the following was suggested by Fayol?

A. Management by Exception
B. Unity of Direction
C. Delegation of Authority
D. Centralisation
Answer» B. Unity of Direction
91.

Which one of the following is not a part of the communication process?

A. Encoding
B. Decoding
C. Medium
D. Situation
Answer» D. Situation
92.

___________ is necessary to take decisions to guide the actions of others.

A. Authority
B. Planning
C. Centralisation
D. Responsibility
Answer» A. Authority
93.

____________ is the process of entrusting part of the work by the superior to his/her subordinates.

A. Centralisation
B. Accountability
C. Delegation of Authority
D. Responsibility
Answer» C. Delegation of Authority
94.

__________ flows from the lower-level management to the top level management.

A. Authority
B. Responsibility
C. Centralisation
D. Decentralisation
Answer» B. Responsibility
95.

A decision to launch a new product is a / an _____________

A. Programmed Decision
B. Non – routine Decision
C. Personal Decision
D. Organisational Decision
Answer» D. Organisational Decision
96.

_________ process is an interplay of three elements – the leader, the follower and the situation.

A. Control
B. Motivation
C. Leadership
D. Planning
Answer» C. Leadership
97.

________ has modified the Hierarchy of Needs Theory of motivation.

A. Vroom
B. Mc Gregor
C. Herzberg
D. Mc Clelland
Answer» D. Mc Clelland
98.

There can be no leadership without __________

A. Managers
B. Subordinates
C. Followers
D. Supervisors
Answer» C. Followers
99.

________ decisions are of non-repetitive nature.

A. Basic
B. Routine
C. Personal
D. Policy
Answer» C. Personal
100.

Bureaucracy Theory was invented by

A. Elton Mayo
B. Henri Fayol
C. Max Weber
D. Peter Drucker
Answer» C. Max Weber
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