CAREERS INSTITUTE OF MANAGEMENT & TECHNOLOGY

FINANCIAL & MANAGEMENT

ACCOUNTING
(MB0041)

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1 Financial Accounting An Introduction

Self Assessment Questions
1. Book keeping _________ the transactions and events, _________the identified transactions
and events in a common measuring unit, records them in proper books of accounts and finally
classifies them in the ledger.
2. Accounting in addition to book keeping involves ________ the classified transactions and
________ the summarized results.
3. ____________ interprets the analyzed results and communicates the interpreted information
to the interested parties.
4. Accounting is a tool for _______________ and ________
5. Expand SEBI.
6. Mention any five stakeholders.
7. ________ as chief provider of risk capital is keen to understand both the return from their
investments and the associated risk.
8. _________ use financial reports for negotiating wage package, declaration of bonus and other
benefits.
9. ___________ has a legitimate interest in financial reports of publicly held enterprise to
ensure efficient operation of capital market.
10. The regulatory agencies use _____________ to take action against the firm when
appropriate returns are not filed in time or when the returns fails to provide true and fair
position of the business or to take appropriate action against the firm when complaints /
misappropriation are being lodged.
11. Accounting grossly lacks ____________elements
12. The exact picture of the financial situation can be ascertained only on the ________of an
enterprise.
13. The danger of ___________ arises when the management decides to incorporate wrong
figures to artificially inflate revenue or deflate losses or when there is a threat of hostile
takeover.
14. Accounting ignores the price level changes when financial statements are prepared on
__________.

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1. Identifies, measures
2. Summarizing, analyzing
3. Accounting
4. Effective planning, controlling
5. Securities Exchange Board of India
6. Shareholders, Creditors, Bankers, Government, Employees
7. Investors
8. Trade Union
9. Stock Exchange
10. Financial Reports

11. Qualitative
12. Liquidation
13. Window dressing
14. Historical Cost

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Unit 2 Accounting Concepts, Principles,

Bases and Policies
Self Assessment Questions:
1. Accounting principles are _______, associated with theory and practice of accountings.
2. Accounting Principles are classified as ________ and ________.
3. Assets may be depreciated on fixed installment method or reducing balance method. Is it a
concept or a convention?
4. A business is started with an assumption of making profit. Is this assumption, a concept or a
convention?
5. The purpose of establishing ICAI and ASB is to ________.
6. How many accounting standards are issued by ASB so far?
7. State true or false:
a. If the household expenses of Rs 25,000 of a proprietor are shown as business expenses, the
profit of the business will be understated to the extent of Rs.25,000.
b. If a proprietor invests Rs.1,00,000 in the business, it is deemed that the proprietor has given
Rs.1,00,000 to the business and it is shown as an asset in the books of the business.
8. Business and its owner are _______________ entities.
9. Profits earned in business form an addition to the _____________ of the owner.
14. An event or a transaction expressed in monetary value is measured but inflation or changes
in the purchasing power are ignored in money measurement concept. Say yes or no.
15. Transactions or events should be expressed in ___________.
16. Revenues are matched with expense in accordance with money measurement principle.
State true or false
20. Interest earned but not received within an accounting period is called _______.
21. Following straight line method of depreciation of a particular asset year after year adhere to
consistency concept. State true or false.
22. Accrued income should be _________ to compute profit and prepaid expenses should be
_____ according to accrual concept of accounting.
23. Accrual concept considers not only cash transactions but also ______ transactions.
30. A cash payment may be a revenue payment or capital payment. Is it true or false?

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31. A payment which is revenue in nature is expenditure. Is it true or false?

32. Plant is purchased and payment is made. Is it an expenditure or acquisition of asset?
33. All revenue expenses are charged against ___________.
34. Capital payments resulting in acquisition of assets appear in the balance sheet. True
or False?
35. Matching concept of accounting considers only revenue incomes and expenses
relating to a particular accounting period. True or False?
36. Incomes and expenses for an accounting period are considered to compute _____.
37. Expenditure paid or payable and revenue earned whether realised or not in cash are
taken into account to find out profit or loss. True or False?
38. For the actual revenue received, outstanding incomes are ________ and income
received in advance are_________________ to find out the revenue income for the given
period.
39. For the actual revenue expenses (costs) paid during the accounting period,
outstanding expenses are _____ and prepaid expenses are _____ to find out expenses for the
accounting period.
40. All assets are shown at historical cost in balance sheet. True or False?
41. Depreciation is charged against the historical cost of assets. True or False?
42. Historical cost is the cost at which an asset is actually purchased. True or False?
43. Machinery is bought for Rs.200000 and its market value is Rs.80000. Which of these
values do you consider to mention in the balance sheet according to cost principle?
44. Inflation accounting has emerged as a result of limitation of historical cost concept.
True or False?
45. The principle of full disclosure implies that information which is of ___________
should be stated in financial statements.
46. The material information that is disclosed should be of great interest to the average
investors. True or False?
47. Non-disclosure of material information amounts to ___________.
48. Disclosing about assets without disclosing about liabilities is against the principle of
full disclosure. True or False?
49. Under dual aspect principle, total benefits received by business should match with
total benefits given. True or False?
50. Total liabilities should be equal to ___________ as per dual aspect principle.
51. For every debit, there should be an equivalent credit. This is called _________ of
accounting.
52. Modifying principle is also known as _____________.
53. The modifying principles states that benefit derived should over weigh the cost of
implementing it. State true or False?
54. A firm plans to establish costing department. By doing so it was estimated that the
cost of the product would increase by 50%. Is it advisable to have cost-department?
59. The purpose of principle of consistency is to help for ______ from one period to
another period.
60. Consistency principle helps for proper assessment of profit or loss. True or False?
61. Provision should be made whenever _____________ is anticipated.
62. The underlying spirit of principle of conservatism is __________ .
63. State the name of the relevant accounting principles for the following statements.
a. Following FIFO method of stock valuation year after year

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b. Appending notes to the financial statements.

c. Anticipate no profit but provide for all probable losses

SAQ 1:
1. Doctrines
2. Concepts, conventions
3. Convention
4. Concept
5. Bring uniformity in accounting
terminology and principles
6. 32
7. a. True, b. False
8. separate
9. capital
10. False
11. True
12. False
13. To replace it after a certain
period.

20. Accrued
interest
21. True
22. Added,
deducted
23. Credit
24. Realized
25. True
26. True
27. Yes
28. No
29. No
30. True
31. True
32. Asset
Acquisition
33. Profit
34. True
35. True

45. Substance
46. True
47. Fraud
48. True
49. True
50. Total Assets
51. Double entry
principle
52. Cost-benefit
principle
53. True
54. No
55. True
56. False
57. True
58. True
59. Comparison
60. True
61. Risk

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Unit 3 Double Entry Accounting

Self Assessment Questions 1:
1. The system of recording transactions based on dual aspect concept is called
a) Double account system
b) Double entry system
c) Single entry system
2. Show the dual aspect effect of the following transactions on the assets and liabilities of
business.
a. Purchased goods for cash Rs.80000
b. Purchased delivery van on credit for Rs.400000
c. Paid Rs.5000 to a supplier of goods on credit
d. The proprietor withdrew Rs.20000 from the bank account of business for Personal expenses.
3. State yes or no
a) State Bank of India is a Nominal Account.
b) Machinery is a Real Account.
c) Life Insurance Corporation is a Personal Account.
d) Proprietors Capital Account is a Personal Account.
e) Loan Account is a Real Account.
f) Postage and Telegram Account is a Nominal Account.
g) Interest on investment Account is a Nominal Account.
h) Carriage on Goods Account is a Real Account
i) The giver of a benefit must be debited.
j) Nominal Accounts fall in the category of impersonal accounts.
k) Every debit has an equal and corresponding credit.
l) Loss by fire is a Nominal Account.
m) Outstanding Wages Account is a Nominal Account.
n) Brokerage Account is a Real Account.
o) Investment Account is a Personal Account.
7. A transaction is a business activity which involves transfer of money or moneys
worth. True or False
8. An event happens as a result of internal policy of an organization. True or False
9. Business transactions and events have equal importance in finding the financial
results of the business concern. True or False?
10. Identify the following as transactions or events as the case may be.
i) Depreciation of assets :___________
ii) Tax rates announcement :___________
iii) Acquisition of assets :___________
iv) Selling an asset :____________
v) Transfer of profits to Reserve Fund:______________
11. Liabilities plus Equity is equal to ____________________________.
12. Assets minus liabilities to outsiders are equal to __________________.
13. If assets are Rs.5 lakhs, liabilities are Rs.3 lakhs, find out the equity.

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14. If Owners equity is Rs.3 lakhs, Outsider liabilities are Rs.2 lakhs, Owners share of profit is
Rs.1 lakhs, find out the total value of assets.
15. Every transaction influences balance sheet and it is shown by accounting equation True or
False?
SAQ
1. (b)
2. a. Stock of goods increases and cash balance is
reduced
b. Delivery Van is an asset and the supplier of the
delivery van becomes a creditor and it appears as
liability
c. Creditors balance is reduced on liabilities side and
cash paid brings down the cash balance on the asset
side
d. The bank balance comes

3. Yes : (b, c, d, f, g, j, k, l,)

No : (a, e, h, i, m, n, o)
4. True
5. Personal, real and nominal
6. True
7. True
8. True
9. True
10. i) Event ii) Event iii)
Transaction iv) Transaction v) Event
11. Assets
12. Equity
13. Rs.2 lakh

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Unit 4 Secondary Books

Self Assessment Questions:

1. All purchases cash or credit is entered into purchases day book. (State True/False)
2. Purchases of goods and other assets can also be recorded in purchase book. (State
True/False)
3. Inwards Invoice is a document to verify the quantity, price and other details of goods
purchased. (State True/False)
4. Purchases made from Mr. Ganesh on credit for Rs 6000, entered in the purchases book. What
is the journal entry?
5. Sales day book contains only credit sales of goods made. (State True/False)
6. Sale of any other asset other than goods is also recorded in sales day book. (State True/False)
7. Persons to whom sales are made on credit are called ________.
8. Outward invoice is a document issued to customer, when the goods are sold on credit. (State
True/False)
9. Purchase returns are also called returns outwards. (State True/False)
10. Purchase returns take place when the goods bought are not as for the specification.
(State True/False)
11. When goods bought are returned the suppliers account is _________ and purchase
return account is _____________.
12. Debit note is a document to show the supplies account is being debited. (State
True/False)
13. Sales return are also called returns inwards. (State True/False)
14. Credit note is a document to indicate that the goods are received as returned by
customers. (State True/False)
15. Credit noted is sent by _____________ to __________.
16. A bill is an instrument in writing similar to that of a promissory note. (State true or
false)
17. Who is a drawer of a bill of exchange in a business?
18. Who is the acceptor of a bill of exchange in a business?
19. Bills Receivable account shows _____________balance.
20. Can bills receivable be discounted?
21. Bills of exchange drawn by the supplier of goods and accepted by the proprietor of the
business are called _________.
22. Every bill has ______days of grace .
23. Bill payable account shows _________ balance.
24. Bill payable represents a ________.
25. When bills payable account is credited ________ account is debited.
State True or False
26. Cash book and cash account are one and the same. (State true/false)
27. Trade discounts allowed to customers or received from suppliers are not recorded in
cash book.
28. Cash discount allowed to customers appears on the ____ side of cash book. Cash
discount received appears on the ____ side of cash book.
29. Discount columns are independently totaled and not balanced. (State true/false)

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30. Contra entry is an entry where both cash account and bank account are affected.
(T/F)
31. Petty cash book is maintained in case of petty organization.
32. Imprest system of cash book is a system where the expenses incurred are
reimbursed.
33. The closing balance in imprest system of petty cash book always remains the same.
34. Imprest system of cash book is also called analytical cash book.
35. Rules of debit and credit are different for different types of accounts. True or False?
36. The words To Balance b/d or By Balance b/d denote an opening entry. State true
or false.
37. _________ And __________ are balanced while ______ are closed by transfer to
trading and profit and loss account.
38. In the ledger account during the beginning of the accounting period To Balance
b/d denotes debit balance and By balance b/d denotes credit balance. State true or false.
4.14 Answer for Self Assessment Questions
1. False
2. False
3. True
4. Purchases A/c Dr. To
Ganesh account (Being purchases
made)
5. True
6. False
7. Debtors
8. True
9. True
10. True
11. Debited, Credited
12. True

13. True
14. True
15. Businessman, the
Customer
16. True
17. Owner of the
business who is the seller
18. Customer /
debtor
19. Debit
20. Yes
21. Bills payable
22. Three
23. Credit
24. Liability
25. Supplier s
account / Creditors account

26. True
27. True
28. Debit,
29. Credit
30. True
31. False
32. True
33. False
34. True
35. True
36. True
37. Personal,
real and nominal
38. True

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Unit 5 Trial Balance

Self Assessment Questions:
1. Opening journal entries are drawn at the commencement of accounting period. (State
whether it is True / False).
2. When all assets are debited and all liabilities are credited, the difference is transferred to
___________ account.
3. If opening liabilities including capital are more than assets, to what account the difference is
transferred?
4. Pass the opening entry in the journal of Bharat as on 1st April 20X1. Cash in hand Rs.1,000;
Cash at bank Rs.5,000; Stock Rs.20,000; Land and Building Rs.1,00,000; Plant and Machinery
Rs.50,000; Furniture and Fixtures Rs.25,000; Owing from X Ltd Rs.12,500; Prepaid Insurance
Rs.500; Interest received in advance Rs.250; Loan from Y Ltd Rs.10,000; Owing to Z Ltd Rs.3,750.
5. All revenue accounts are closed at the end accounting period. (State whether it is True /
False).
6. All trade expenses are closed by debiting _________account
7. All expenses other than _________ are closed by transferring them to P & L account.
8. Are assets and liabilities accounts closed at the end of the accounting year? (State whether it
is Yes / No).
9. Transaction which are out of trial balance have to be adjusted for proper calculation
of profit / loss (state whether it is True / False).
10. What is the adjusting entry in the following cases?
a. Depreciation of Building
b. Closing stock
c. Pre-paid Insurance
d. Outstanding salaries
e. Stock used for personal purposes
11. Errors can be committed at all stages, beginning from journal entries, posting of
entries in ledger accounts, while balancing the closing balances etc. (True / False).
12. Errors of omission, error of principle and compensating errors are not disclosed by
trial balance (True / False).
13. Errors of casting, posting to wrong side of an account or posting a wrong amount etc
can be detected by trial balance (True / False).
14. Suspense account is the difference between debit total and credit total of a trial
balance. (True / false).
15. Suspense account is created temporarily and later, it is removed as and when errors
are detected and suitable rectified (True / False).
16. If amount paid to Rama Rs 500 is credited to Ramanan accounts, what type of error
has occurred and give the rectification entry.
17. Instead of putting Rs. 1500 to debit of wages account, Rs 15000 is recorded. Identify
the type of error and tell what impact it has on profit?
18. Refer Q.No.17. How do you rectify the above error?
19. If error of wrong posting, wrong casting, wrong calculation are committed in the books of
original entry or secondary books, such errors are called ________.
20. Error of commission affects trial balance (True / False).

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21. Furniture purchased for cash Rs 5000/- is not recorded in journal. Mention the type of error?
22. Error of omission can be detected only after a careful review of ledger balances of previous
years (True / False).
23. Error of principle affects the value of revenue and capital items (True / False).
24. It is very difficult to find out the compensating errors. (True / False).
25. Summary of all ledger balances is called _____________________ .
26. Trial balance is necessary to prepare _________________________ .
27. The broad two categories of errors are a) ________________ b) ____________.
28. Is casting error, an error of principle or error of commission?
29. Purchase of machinery is included in the purchases book. What type of error is it?
30. What is error of omission? Illustrate.
31. What are the errors that cannot be disclosed by trial balance?
32. The sum of errors in accounting is transferred temporarily to _________ account.
33. In which journal do you make rectification entries?
34. State any four steps to locate errors.
35. If sales account is under cast by Rs. 45, what is the rectification entry?
36. Returns inwards book is over cast by Rs. 9, write the rectification entry.
37. Salary paid to Gopal is debited to his personal account. What is the rectification
entry to correct the error?
38. Discount received Rs. 50 is transferred to the debit side of discount account. Write
the rectification entry.
39. An invoice of purchase for Rs. 760 is entered as Rs. 670. What type of error is this?
How to rectify this error?

5.13 Answers to SAQs and TQs

SAQ:
1. True
2. Capital
3. Goodwill
4. Opening entry:
20X1
Cash in Hand Dr
April 1 Cash at Bank Dr
Stock Dr
Land and Building Dr
Plant and Machinery Dr
Furniture & Fixtures Dr
X Ltd Dr
Prepaid Insurance Dr
To Interest received in advance
To Loan from Y Ltd
To Z Ltd
To Bharats Capital a/c
(Being the balance brought forward from last year)

1,000
5,000
20,000
1,00,000
50,000
25,000
12,500
500

250
10,000
3,750
2,00,000

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5. True
6. Trading
7. Trade expenses
8. No
9. True
10.
a. Depreciation a/c Dr
To Building account
b. Closing stock A/c Dr
To Trading A/c
c. Pre-paid Insurance a/c Dr
To insurance A/c
d. Salaries A/c
To outstanding salaries account.
e. Drawings A/c Dr
To stock account
11. True
12. True
13. True
14. True
15. True
16. It is a wrong posting and hence it is
errors of commission
Ramas a/c Dr 500
Ramanans a/c Dr 500
To Suspense a/c 1000
(Being amount paid to Rama wrongly
credited to Ramanans account
rectified)
17. Posting of wrong amount - Trial
balance is affected. Profit (gross) is
reduced by Rs 13500.

25. Trial balance.

26. final accounts
27. Error that are disclosed by trial balance
and those which cannot be disclosed by trial balance.
28. Error of commission.
29. Error of principle.
30. Omitting completely a transaction from
books of original entry. Sales made to Raghu of Rs
12000 completely ignored.
31. Error of omission, commission, principle,
compensating error.
32. Suspense account.
33. Journal proper
34. Four steps to locate the errors
Check the total of both sides of trial
balance,
Total debtors & creditors accounts,
Verify whether balancing is done correctly,
Check the totals of ledger balances etc.
35. Suspense a/c Dr. 45
To Sales a/c 45
Being sales account which was under cast rectified
36. Suspense a/c Dr.9
To Return Inward a/c 9
Being returned inward book which was over cast
rectified.

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Financial and Management Accounting Unit 5 Sikkim Manipal University Page No. 125
18. Suspense a/c Dr. 13,500
To Wages a/c 13,500
37. Salary a/c Dr.
(Being excess debit to wages
account rectified)
To Gopal a/c
19. Error of commission
Being wrong debit given to Gopal rectified
20. False
38. Suspense a/c Dr. Rs.100
21. Error of omission
To Discount received a/c Rs.100
22. True
Being wrong posting in discount received a/c rectified.
23.True
39. This is an error of Commission. By checking the original
24. True
invoice document, it can be rectified.
Purchase a/c Dr Rs.90
To Creditors a/c Rs.90
Being wrong posting in purchase book rectified.

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Unit 6 Final Accounts

1. Expenses due but not yet paid are known as ______

2. Prepaid expenses appear on the asset side of balance sheet. (State True / False).
3. Income earned but not received is called ____________.
4. Any income received in advance is a liability (state True / False)
5. Advertisement expenses outstanding for the year ending March 2005 is Rs.5000. Give
the journal entry
6. Depreciation is for __________ of an asset.
7. What entry is drawn if furniture costing Rs.50000 is depreciated at 5% under straight line
method?
8. Calculate the depreciation amount charged for the second year under written down or
reducing balance method for Plant and Machinery costing Rs.7,50,000. The depreciation rate is
10%.
9. Unrecovered debts are called ______.
10. Bad debts are not expenses but they incur loss to the firm. false)
11. If bad debts are recovered, what entry can be drawn?
12. What is the difference between Bad debts and doubtful debts?
13. Provision for Doubtful debts is a charge against the profits of the firm (state True /
False )
14. Bad debts incurred in the subsequent period are written off against reserve for bad
debts (state True / False).
15. Give the journal entry for writing off of bad debts against RBD?
16. Provision for Discount on Debtors is a charge against P & L a/c. (State True or False)
17. Provision for discount on debtors appears as a liability in the Balance Sheet (State
true/false)
18. Discount on creditors is an item of income (State True / false ).
19. Provision for discount on creditors is shown as an anticipated income (State
True/False).
20. What is the entry for adjusting the closing stock?
21. Closing stock always appears as an asset in balance sheet (State true/false)

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6.14 Answer to SAQs and TQs

1. Outstanding expenses
2. True
3. Accrued or Outstanding income
4. True
5. Advertisement expenses a/c Dr To
Outstanding Advertisement expenses a/c
6. Wear and Tear
7. Depreciation a/c Dr.2500
To Furniture a/c 2500
Being furniture depreciated
8. (7,50,000-75,000) = 6,75,000 x 10% =
67,500
9. Bad debts
10. True
11. Cash a/c

12. Bad debts are totally not

recoverable, doubtful debts may be
recovered.
13. True
14. True
15. Reserve for Bad debts a/c Dr
To Bad debts a/c
16. True
17. True
18. True
19. True
20. Closing stock a/c Dr
To Trading a/c
21. True

To Bad debts recovered a/c

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Unit 7 Introduction to Management Accounting

1. Management accountants have transformed from mere cost information providers to

_______________________
2. Management accountants facilitate in budget preparation on projected ______
3. Management accountants assess organizations _______________that arise due to
changing business environment.
4. Competitive position of a firm is determined by how well it provides a platform for
__________, ___________________ and adaptation to new technology.
5. Management Accounting serves as a vital source of data for management _________.
6. It provides a means for communicating management plans ______, __________and
at _________levels.
7. The management accounting is very helpful in controlling the financial performance
of the organization through comparing actual performance with __________________.
8. ______________ is the preparation and use of standard costs, their comparison with
actual costs and the analysis of variance.
9. ___________ will help the management in ascertaining how much cash will be
available to meet obligations to trade creditors, to pay bank loans and to pay dividends to the
shareholders.
10. ______________________reveals the changes in working capital position, the
sources from which the working capital was obtained and the purpose for which it was used.
11. ____________ means methodical classification of the data given in the financial
statements.
12. __________________helps to compare the current performance with pre-planned
performance thereby correcting the deviations if any
13. _____________is a performance measure and it reports the wealth generated by a
business undertaking over a period of time
14. ____________________identify and eliminate non-value added costs
15. The drivers of Balanced Score Card are ___________,
_________________,___________________ and
16. Management accounting aims at preparing and reporting financial data to
_____________.
17. Management accounting is oriented towards ______
18. In ____________financial data is presented for a definite period, say one year or a
quarter
19. __________accounting may adopt any measurement unit like labour hours, machine
hours or product units for the purpose of analysis

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7.15 Answer for SAQs and TQs

SAQ 1:
1. Strategic Business
Partner
2. Revenues and Costs
3. Competitive Position
4. Learning, continuous
improvement
5. Planning
6. Upward, downward,
lateral
7. Operating plans &
standards
8. Standard costing
9. Cash budget
10. Funds Flow statement
11. Analysis
12. Budgetary Control

13. Value added concept

14. Cost Management System
15. Customer, internal business process, learning,
growth perspective
16. Management
17. Future
18. Financial Accounting
19. Management

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Unit 8 Financial Statement Analysis

1. Analysis of performance between two companies can be made using ratios. State true or
false.
2. Ratios can be expressed in three forms _____________,____________ and _____________.
3. Stock has turned over 3 times a year the ratio is expressed as
4. For capital rich countries, the current ratio is usually ________
5. In quick ratio _________ and ___________ are excluded because they cannot be readily
converted into cash.
6. ___________ ratio is the most rigorous and conservative test of all liquidity ratios
7. ___________ ratio reflects the relative contribution of creditors and owners of the business in
its financing
8. In debt equity ratio if the objective is to examine the financing solvency of the firm preference
share capital is _________.
9. ___________ is the use of borrowed funds is to enhance higher returns to equity
shareholders.
10. ___________ is the ability of a firm to make the contractual payments required on a
scheduled basis over the life of the debt.
11. A high debtors turnover ratio indicates ____ time lag between credit sales and cash
collection.
12. ______________is indicative of management s ability to operate the business with
sufficient success not only to recover all the cost but also to leave a margin of reasonable
compensation to the owners.
13. _______________ is based on the relationship between cost of goods sold and assets of a
firm.
8.11 Answer for SAQs and TQs
1. True
2. Proportion, Percentage, Turnover rate
3. Turnover rate

4. Low
5. Inventory and prepaid expenses
6. Super quick/ cash
7. Debt equity
8. Included with equity capital
9. Trading on equity
10. Debt service coverage ratio
11. Shorter
12. Net Profit margin
13. Asset Turnover ratio

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Unit 9 Funds Flow Analysis

1. Explain the meaning and the concepts of funds flow statement.

2. Ascertain transactions that involve flow of funds and those that does not involve flow of
funds.
3. Know the techniques of preparing fund flow statement.
5. Flow of Funds refers to change in funds or ________________
6. ____ Working Capital refers to the firm s investment in current assets
7. __________ are those expenses which could not be written off during the period of their
incidence
8. When a transaction results in decrease of funds it is termed as ___________________.
5. When cash is collected from debtors there is flow of funds. State true or false.
6. When there is sale of fixed assets and cash is obtained there is flow of funds since it involves
non-current asset and current asset. State true or false.
7. X Ltd transfers Rs.10 lakhs of its profits to Redemption Reserve account. Does it involve flow
of funds? State yes or no
12. The difference in General Reserve between two accounting period shown in the Balance
Sheet is transferred to Adjusted Profit and Loss account since it is a _________
13. Any increase in Equity Share capital shown in the balance sheet is recorded as _________ in
Funds Flow Statement
14. Purchase of Fixed Asset is considered as application of fund. How do you ascertain the
amount if provision for depreciation is shown separately?
15. While preparing the schedule of changes in working capital:
a. Increase in current asset and decrease in current liability results in ______ in working capital
b. Decrease in current asset and increase in current liability results in _________ in working
capital.

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9.10 Answer Self Assessment

Questions

1. Change in Working Capital

2. Gross
3. Fictitious Assets
4. Application of Funds
5. False
6. True
7. No
8. False
9. This transaction will not have
any effect on flow of funds
because it involves only current
liability.
10. Creditors paid off by issue of
debentures
11. Building transferred to
creditors in satisfaction of their
claims.

12. Non cash items

13. Source
14. If provision for depreciation is shown
separately the difference between closing fixed asset
(gross) and opening fixed asset (gross) is taken as
additional purchase made during the year.
15. (a) increase
(b) decrease

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Unit 10 Cash Flow Analysis

1. Explain the meaning of cash flow statement.

2. Describe the broad classification of cash flow statement
3. Recall the revised AS 3 format of cash flow statement
4. Acquaint with steps in preparation of CFS.
5. Compute the Cash Flow Statement
6. Distinguish between Cash Flow Statement and Funds Flow Statement
7. Preparation and submission of Cash Flow Statement is mandatory according to
______________
8. Cash Flow Statement has three sub division- _____________ ,________________________
and ______________________.
9. Since depreciation, a component of internal source does not result in outflow of cash; the
depreciation amount is ______ to the Net Profit.
10. Give any three internal sources of cash that does not result in outflow of cash.
11. Decrease in liability denotes ____________ of cash
12. Purchase of Plant and Machinery on deferred payment basis is shown separately as source
of cash or ________________
7. Income Tax paid is ___________activity (operating/investing/financing).
8. Purchase of fixed assets is cash flow from ________ activity ( financing / investing).
9. Repayment of long term loans, dividend paid are _____________ activity (financing /
investing).
10. Net Increase in cash and cash equivalent + _______________________ = Cash and cash
equivalent at the end of the period
11. Decrease in Sundry Debtors should be _________ to Operating profit before working capital
changes
12. Increase in Sundry Creditors should be _________ to Operating profit before working capital
changes.
13. Dividend received is ____________ activity because income is received from investment in
shares of another company.
14. Dividend paid is _____________ activity.

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SAQ 1:
1. AS3
2. a. Net cash flow from operating activities
b. Net cash flow from investment activities
c. Net cash flow from financing activities
3. Added back
4. Depreciation, Amortization of intangible assets, Gains from sale of fixed assets
5. Outflow
6. Deferred credit
7. Operating
8. Investing
9. Financing
10. Cash and cash equivalent at the beginning of the year
11. Added
12. Added
13. Investment
14. Financing

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Unit 11 Understanding Cost

1. Unexpired costs is termed as ___________

2. Different types of job costing are ____________,___________ and __________
3. Different types of process costing are _________.________ and ____________
4. Standard costs are predetermined costs which are compared with actual costs and the
variance is determined. (state true or false)
5. _______ include costs both fixed and variable are charged to the products, jobs or process
6. Cost of hiring special machines, cost of special moulds are examples of _______
7. _______ are costs are unavoidable because these costs cannot be changed once incurred.

11.12 Answer to SAQs and TQs

1. Assets
2. Batch costing, Contract Costing and Composite costing
3. Unit costing, Operating costing and Operation costing
4. True
5. Absorption costing
6. Direct costing
7. Sunk Cost

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Unit 12 Marginal Costing and

Break Even Analysis

1. Elements of costs are classified into ______ and ______

2. Fixed Cost is treated as __________ and charged to P& L account
3. _____________ costs are treated as product cost.
4. The _____________shows the relationship among unit sale price, variable cost, sales volume,
sales mix and fixed cost
5. Fixed cost remains constant _________.
6. Those activities that results in cost are known as ___________.
7. Variable cost is fixed ______ but varies in________.
8. Contribution is also known as contribution margin or _____________.
9. Fixed cost Loss = ______________
1. Variable cost , fixed cost
2. Period cost
3. Variable
4. CVP analysis

5. In total
6. Cost drivers
7. Per unit, total
8. Gross margin
9. Contribution

12.18 Answer Self Assessment Questions

1. Variable cost , fixed cost 5. In total
2. Period cost
6. Cost drivers
3. Variable
7. Per unit, total
4. CVP analysis
8. Gross margin
9. Contribution

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Unit 13 Decisions Involving Alternative Choices

1. Relevant Costs are costs which would _________as a result of the decision.
2. ___________ are historical cost that cannot be recovered in a given situation.
3. Opportunity costs are _________________for not pursuing the alternative course
4. ____________ is also known as discretionary cost.
13.13 Answers to SAQ and TQs
Answer to SAQ
1. Change
2 Sunk cost
3. Monetary benefits foregone
4. Avoidable cost

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Unit 14 Budgetary Control

1. Budgets are not actual but ______.

2. After setting up objectives in terms of plans, it becomes imperative to organize the
factors of production to convert into a ____________and ______________
3. _______signifies such systematic efforts which help the management to know
whether actual performance is in line with predetermined goal, policy and plans.
4. Internal refinement, broad indexation of activities, concentrated details is the
essential features in _______.
5. Budgetary control acts as a ________ for the management. It prevents wastages of all
types
6. Business forecasts are the foundation of ________
7. _______ must wholeheartedly support the activities which developing a budget.
8. ______ is also known as static budget because it is prepared for a fixed or standard
volume of activity.
9. Types of budgets are _____________.
10. In _______ budget the revenues and costs targets are set in respect of different
levels of activity say from zero to hundred percent of the production volume.

4.14 Answer Self Assessment Questions

1. Estimates
2. Reality and workable preposition
3. Control
4. Planning
5. Safety signal
6. Budgets
7. Management
8. Fixed budget
9. Fixed , flexible, functional
10. Flexible

Answer for Terminal Questions

1. Refer to unit 14.5
2. Refer to unit 14.6
3. Refer to unit 14.7
4. Refer to unit 14.11

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Unit 15 Standard Costing

1. Standard costing is defined as a technique of cost accounting which compares the

_____________ of each product or service with the actual cost .
2. Standard cost focuses on _________.
3. Standard cost and budget control _________.
4. Standards are established for _________, __________ and _______________.
5. Variation refers to _____________.
6. When the actual cost is less than the standard cost, the difference is termed as
____________ or credit variance
7. Variances are interpreted as __________ and _____________.
8. The formula for Material Cost variance is ______________.
9. The formula for Material price variance is __________.
10. The formula for Material usage variance is _______.
11. The formula for Material mix variance is __________.
12. The formula for Material yield variance is __________.
13. The formula for Direct labor variance is ___________.
14. The formula for Labor efficiency variance to _________________.
15. The formula for Labor rate variance is __________.

15.19 Answer to SAQs and TQs

1. Standard cost
2. Financial control
3. Closely interrelated
4. Direct martial, direct labor, overheads
5. Deviation
6. Favourable
7. Favorable and adverse

8. SC AC
9. (SP AP) x AQ
10. SQ AQ x SP
11. RSQ AQ x SP
12. SY AY x SR
13. SC-AC
14. SH AH x SR
15. SR - AR x AH

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MANAGERIAL ECONOMICS
(MB0042)

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Self-Assessment Questions Managerial Economics-MB0042

Unit 1
1. Managerial Economics is the integration of Economic theory with Business Practicefor
solving business and management problems.
2. Managerial Economics fills up the gap between Economic Theory and Practice.
3. Managerial Economics is mainly a Prescriptive science.
4. Basic objective of a firm today is Profit optimization.
5. Managerial Economics is basically a branch of Microeconomics.
6. Two major functions of a Managerial Economist are Decision-makingand Forward Planning.
Unit 2
1. In a typical demand schedule quantity demanded varies Inverselywith price.
2. In case of Giffen s goods, price and demand go in the Same / upward directions.
3. If demand changes as a result of price changes, then it is a case of Expansion and
contractionin demand.
4. Law of demand is a Qualitative statement.
5. Demand function is much moreComprehensive / widerthan law of demand.
6. In case of Veblen goods, a fall in price leads to a Fall in demand.
7. Law of demand explains the Direction change in demand and elasticity of demand explain
percentage change in demand.
8. According to Marshall, Price Elasticity of Demand is the degree of responsiveness of demand
to the change in price of that commodity.
9. The relatively elastic demand curve is Flatter.
10. When the quantity demanded increases with the increase in income, we say that income
elasticity of demand will be Positive. When quantity demanded decreases with increase in
income, we say that the income elasticity of demand is negative.
11. Advertisement Elasticity of Demand helps the manager to decide the advertisement
expense.
12. Point method helps to measure Small quantity of change in demand and arc methods helps
to measure large changes in demand.
Unit 3
1. Demand forecasting refers to an estimate of Most likely future demand for the
product under given condition.
2. The heart of the survey method is Questionnaire.
3. Collective opinion method is also known as Sales-force polling.
4. Sample survey method of Demand forecasting is also called Consumer panel.
5. An economic indicator indicates changes in the magnitude of an Economic variable.
6. On the basis of Time series it is possible of project future sales of a company.
Unit 4
1. Stock is Potential supply.

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2. Supply curve generally slopes Upwards.

3.Law of supplyshows the relationship between price and quantity supplied of a particular
product.
4. The supply curve shifts when there is a change in quantity supplied due to the factors other
than Price.
5. When the supply increase the supply curve shifts to the Right.
6. Supply tends to be Inelastic in short run.
7. Tabular representation of different quantities of commodities supplied at varying price is
called Supply schedule.
8. Absence of change in movement in economics is called Equilibrium.
9. The quantity bought and sold at the equilibrium is called Equilibrium quantity.
10. There will be change in Equilibrium Price when there will be a shift in either demand curve
or supply curve or both.
Unit 5
1. Production creates New utilities or addition of value.
2. Production function explains Technological or engineering relationship between inputs and
outputs.
3. In the short period only Variable factor inputs are changed.
4. When marginal product is zero total product will be Highest.
5. An ISO _ Quant curve shows different alternative combinations of inputs which helps to
produce same level of output where as an ISO-Cost curve shows Various alternative,particular
combination of two inputs that can be purchased with a given amount of investment
expenditure while prices of two factor inputs remain constant.
6. When all inputs are increased by 8% and output increases by 13% then its is a case of laws of
Diminishing returns.
7. Internal economies depend on the growth of a ___ and external economies depend on the
growth of the Firms industry.
8. Economies of scope refers to the benefits which arise to a firm when it produces more than
One productjointly rather than producing separately by two firms.
9. Opportunity cost of anything is the alternative that has been foregone.
10. Marginal cost deals with changes in cost of One unit where as incremental cost deals with
changes in cost of a group of units.
11. AC minus AVC would give us AFC
12. Total cost includes Normal profits.
13. Marginal cost is associated with Variable costs.
14. In the long run all cost areVariable
Unit 6

1. In Profit Maximisation Modelmodel, the important assumption is that the entrepreneur aims
at maximizing his profits.
2. Break Even point is the point where the firm has stopped incurring losses but yet to start
gaining profit.
3. The full form of TR is Total Revenue

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4. According to Economist Theory of Firm, a firm is a Transformation unit, which converts input
into output and while doing so, tries to create surplus value.
5. The firm aiming for profit maximization reaches its equilibrium only when it produces Profit
maximizing output.
6. Business decisions are made to cope with Changes.
7. Market share goal is related to demand of sales management and sales decision.
8. Profit goalis related to price and resource allocation decisions.
9.Slack paymentworks as a shock absorber.
10. Sequential hearing to demand and Decentralizing the decision makingtypes of resolving
conflicts are qualitative.
11. Cyert and March points out that the coalition group has multiple, Conflicting and
oppositegoals.
12. According to Robin Marris modern firms are managed by both the manager and the
shareholders (owners).
13. In Marris Growth Maximization Model, the objective of the firm is balanced growth.
14. In Marris Growth Maximization Model, the manager tries to maximize his satisfaction and
his satisfaction lies in the Growth rate of the firm.
15. In Differentiated diversification relationship, growth determines profit.
16. Sales maximization model is an alternative for Profit maximization model.
17. Boumal thinks managers are more interested in maximisingSales rather than profit.
18. In oligopoly market structure, the firms compete more in terms of advertisement, product
variations etc. rather than Price.
19. The expenditure, which is incurred by the Managers indulgence in a company car is termed
by Williamson as Management slack
20. In the equation, S stands for Staff expenditure and D stands for discretionary profit
Unit 7
1. Total revenue is the total income realized from the sale of its output at a price.
2. TR / Q = AR .
3. Additional revenue earned by selling an additional unit of output is called Marginal revenue.
4. AR curve coincides with the MR curve and run parallel to OX axis under Perfect competition.
5. AR and MR curves slope downwards under condition of Imperfect competition.
6. Cost plus pricing = cost + Fair profits.
7. We come across going rate pricing generally under Oligopoly market
8. The objective of charging high prices for new products is to Skim the cream from the market
9. The rate of return pricing = Total cost per unit + Mark- up
10. Administered prices are the prices which are fixed and enforced by the Government in the
overall interested of community

Unit 8

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1. The firms can earn only normal profit under Perfect competition.
2. Under perfect competition demand curve is a Horizonta line.
3. Monopoly seller is the price marker and can restrict the output to increase the price.
4. Bilateral monopoly is a situation in which a single seller faces a single buyer.
5. Under Duopsony there are only two large buyers for a specific product or service.
6. Monopsony is the Market situation where there is a monopoly element in case of
buyer.
7. Oligopsony is a situation in which there are a few large buyers.
8. Selling costs are very important in monopolistic market
Unit 9
1. The concept of consumer surplus is based on demand theory by Marshall.
2. If the price increases there will be Decrease in consumer surplus.
3. Cost Benefit Analysis is used to judge the desirability of public investment of any
public projects or investment.
4. The excess burden or net loss in welfare is called Dead weight loss.
5. The direct or indirect payment by government to producers or consumers to defray
part of the cost of economic activity is called Subsidies.
6. Producers surplus exists when the actual price exceeds the minimum price that the
seller is ready to accept.

Unit 10
1. Inventory, Capital stock are Macro Stock variables.
2. National Income and output are Macro Flow variables.
3. Investment is the Change in the capital stock over a period of time.
4. Ex-ante means planned and desired whereas Ex-postmeans actual or realised value.
5. A variable is Dependent if its value varies as a result of variatious in the value if some
other independent variable.
6. Index number the statistical device, which indicates relative changes of a variable over a
period of time.
7. A flow variable is a quantity which can be measured in terms of specific period of time and
not at a Point of time.
8. Wholesale price Index is an index of prices paid by producers for their inputs.
9. Consumption income ratio tells us the percentage of consumption out of a given level of
income.
10. When a number of commodities and their prices at two different periods are arranged in a
tabular form, it is called as Index number.
Unit 11
1. The relationship between consumption and income is called Consumption Function.
2. Marginal Propensity to consume is the ratio of change in total consumption to change in
total income.
3. Two groups of factors that affect consumption function are Subjective and Objective factors
4. Investment made by government and departmental undertakings is called Public investment.

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5. Depreciation is part of Gross investment.

6. Autonomous investment does not depend on the changes in the national income.
7. Induced Investment varies with the changes in the level of national income
8. The ratio of change in national income resulting from a change in autonomous investment is
called Multipler.
9. When MPC = 1 multipler will be Infinite.
10.Multipler shows the effects of consumption on investment; where asAccelerator shows the
effect of investment on consumption.
11. Accelerator is called Magnification of derived demand.
Unit 12
1. Price stability means constant price, over a period of time
2. Central Bankby regulating its credit policy, can control the credit as per the requirement of
the economy.
3. The two instruments of monetary policy are Quantitative and Qualitative techniques.
4. The oldest method of controlling credit is Bank Rate or Discount Rate
5. Cash reserves maintained by commercial bank is called Statutory reserve.
6. Reserve over and above the Statutory Reserve is called Excess Reserve.
7. Qualitative instruments of monetary are also known as selective instrument of credit control.
8. The importance of fiscal policy as an economic tool was realized only after Great Depression
in 1930s.
9. Automatic stabilizers are called built- in- stabilizers to correct and thus restore economic
stability.
10. Tax on individual is called Direct tax and tax on commodity is called indirect tax or
commodity tax
11. Regressive taxleads to a reduction in the unequal distribution of income
12. Taxes determined on the basis of the value of a particular product are called Ad valorem tax.
13. Distribution of essential commodities through fair price shops is known as Public
distribution system.
14. Import controls are executed through a system of Quotas and licenses
15. Existence of two prices for the same commodity at the same time one controlled price
another free market price is called Dual pricing.
Unit 13
1. The cyclical movement of the business, both upwards and downwards is commonly called
Trade Cycle.
2. The five phases of business cycle are Depression, recovery, full employment, boom and
recession
3. Prosperity phase of the business cycle is called the upswing.
4. Boom is the phase of highest level of economic activity.
5. Depression / Contraction phase is the phase of low economic activity.
6. Schumpeters theory says that the economic fluctuations are due to innovation in the
industry.
7. According to Professor Hayek discrepancy between the Natural and the market rate of
interest cause business fluctuation.
8. According to R G HawtreyFlow of money supply is the sole cause for business fluctuations.

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9. According to Prof. Samuelson the interaction between multiplier and accelerator gives rise to
cyclical fluctuation in economic activity.
10. Prof Hicles explains cyclical fluctuations in terms of Ceilings and floors
Unit 14
1. The value of money and price level is Inversely related.
2. The state of steady rise in price level is called Inflation.
3. According to Coulborn Inflation is a phenomenon where too much money chases too few
goods.
4. The inflationary situation where people go with basketful of money and come home with
pocketful of commodities is Jumping / galloping / hyper inflation.
5. The Governments go for Deficit financing to finance public expenditure.
6. The concept of inflationary gap was introduced by Keynes.
7. The trade-off between inflation and unemployment is called the Philips Curve.
8. A situation where inflation is accompanied by stagnation is called Stagflation
9. A state of steady fall in price is called Deflation.
Unit 15
1. External cost and benefits together are called Externalities.
2. Negative externalities are defined as third party effects arising from production and / or
consumption of goods and services for which no appropriate compensation is paid.
3. Marginal social benefit = Marginal private benefit + Marginal external benefit.
4. When there are negative externalities in Production., the marginal social cost will be more
than the private marginal cost.
5. The process of development will become sustainable only when the stock of various types of
resources are maintained and Further improved.
6. Green house effe on earth means progressive warming-up of the earth s surface due to the
blanketing effect of man-made carbon dioxide with atmosphere.
7. The term acid rain was first coined by Robert Angus in 1872.
8. Nuclear accidents refer to accidents resulting from nuclear device and radio-active materials.

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MANAGEMENT PROCESS & ORGANIZATIONAL BEHAVIOR

MB0038

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Unit-1- Management Process

Self Assessment Questions
1. Management is the development of people and not the direction of things.This definition is
given by Appley
2. Management is a distinct process consisting of planning, organizing, actuating and
controlling performed to determine and accomplish the objectives by the use of people and
resources..This definition was given by Terry in 1953
3. Management is one of the factors of production together with land, labour and capital.
4. Management is a Distinct Process consisting of such functions as planning, organizing,
staffing, directing and controlling.
5. In recent time, management functions have been regrouped into Four categories.
6. Training starts with an Organizational analysis.
7. Ceremonial and symbolic role of a manager is called Figurehead
8. Vocational and on-the-job training programs can be used to develop Technical skill.
9. The average manager spent 32 percent of his or her time performing traditional management.
10. Effective managers spend 26 percent of their time in human resource management.
Answers to Self Assessment Questions
1. Appley
2. 1953
3. Management
4. Distinct Process
5. Four
6. Organizational
7. Figurehead
8. Technical
9. 32
10. 26

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Unit 2 Introduction and Foundations of Organizational Behaviour

Self Assessment Questions
1. Buchanan and Huczynski (1997) have defined Organizations as Social arrangements.
2. Barnard (1938) defined Organizations as system of Co-operative activities.
3. OB is concerned with the study of the structure, functioning and performance of
organizations, and the behavior of groups and individuals within them. This definition was
given by Pugh
4. Best Deal retails team is consciously coordinated social unit, composed of a group of players
that functions on a relatively continuous basis to achieve a common goal or set of goals, and
thus, it may best be described as:
A. An organization
B. A club
C. A company
D. A profit centre
5. The issues related to personality, creativity and motivation are related to Individual level of
analysis.
6. Organization culture and organization structure are aspects related to the Organizational
level of analysis.
7. Eight parameters for level of analysis were proposed by Wood in 1997.
8. Adam Smith stated that organizations and society would reap from the Division of labor.
9. Taylor has proposed Scientific principles of management.
10. Fayol has proposed Administrative theory.
11. Psychology is the science that attempts to measure, explain, and at times change the
behavior of humans and other animals.
12. Social psychology blends the concepts of psychology and sociology.
13. Political science studies the behavior of individuals and groups within a Political
environment.
Answers to Self Assessment Questions

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1) Social 2) Co-Operative 3) Pugh 4) An Organization (A) 5) Individual 6) Organizational

7) Wood 8) Division 9) Scientific 10) Administrative 11) Psychology 12) Social psychology
Unit 3 Learning and Ability
Self Assessment Questions
1. Classical Conditioning is a form of associative learning process proposed by Pavlov.
2. The operant conditioning theory is based on the idea that learning is a function of change in
Overt behavior
3. Social learning has Four processes.
4. Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable
behavior
5. Extinction is eliminating any reinforcement that is maintaining a behavior
6. In general, variable schedules tend to lead to Higher performance than fixed schedules.
7. The typical OB Modification program follows a Five step problem-solving model
8. OB Modification has been used by a number of organizations to improve employee
Productivity.
9. Continental Airlines lottery system follows a Variable-ratio schedule.
10. Forbes magazine used Well pay to cut its health care costs.
11. Women s absenteeism rates tend to be Higher than those of men.
12. There is a Negative relationship between tenure to absence.
13. Ability to do speedy and accurate arithmetic is called Number Aptitude aptitude.
14. Interpersonal intelligence means People smart.
15. Ability to exert force against external objects is called as Static Strength strength.
Answers to Self Assessment Questions
1. Pavlov
13. Number Aptitude
2. Overt
14. People
3. Four
15. Static Strength
4. Punishment
5. Extinction
6. Higher
7. Five
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9. Variable-ratio
10. Well pay
11. Higher
12. Negative
Unit 4 Value, Attitude and Job Satisfaction
Self Assessment Questions
1. ___________ values refer to desirable end-states of existence, the goals that a person
would like to achieve during his/her lifetime.
2. Social Recognition is ____________ value.
3. ___________ values refer to preferable modes of behavior, or means of achieving the
terminal values.
4. Workers who entered the workforce from the early 1940s through the early 1960s, are called
________________.
5. _______________ began to enter the workforce from the mid-1980s.
6. Power distance measures the _________________.
7. ______________ gauges to what extent individuals in a country consider themselves as
distinct entities rather than as members of cohesive groups.
8. Hofstede and Bond (1988) have identified a fifth dimension called __________________
9. There are ____________ components of an attitude
10. Festinger has proposed _________________________ theory.
11. ________________ theory proposes that attitudes are used to make sense out of an
action that has already occurred rather than devices that precede and guide action.
4.8 Answers
Answers to Self Assessment Questions
1. Terminal
2. Terminal
3. Instrumental
4. Veterans
5. Xers
6. Social equality
7. Individualism
8. Long-term orientation
9. Three
10. Cognitive Dissonance
11. Self-perception

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Unit 5 Personality
Self Assessment Questions
1. The heredity approach argues that the ultimate explanation of an individuals
personality is the molecular structure of the _____________
2. One of the most important determinants of the personality of a person is
the________ family
3. Cattell referred to these 16 factors as _____________ factors.
4. The MBTI classifies human beings into _____________ opposite pairs
5. Locus of control was formulated within the framework of Rotter's ___________ theory of
personality
6. Holland has proposed _________ themes of people and work environments, within which all
jobs can be classified
7. _____________ person prefers verbal activities in which there are opportunities to influence
others and attain power.
Answers to Self Assessment Questions
1. Genes
2. Immediate
3. Primary
4. Four
5. Social learning
6. Six
7. Enterprising

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Unit 6 Emotions
Self Assessment Questions
1. Subjective emotional responses are the result of __________ changes within human
bodies.
2. Both feedback from peripheral responses and a ___________ appraisal of what
caused those responses produce emotions.
3. _____________ emotions are an individual s actual emotions.
4. Ekman (1999) has found _________ emotions which are universally recognized and
applicable.
5. People who suffer from _________ rarely cry and are often seen by others as bland and cold
6. The most popular and accepted mixed model of emotional intelligence is the one proposed by
____________.
7. Personal competence comprises of ______________ dimensions of emotional intelligence.
8. Social competence comprises of _____________ dimensions
Answers to Self Assessment Questions
1. Physiological
2. Cognitive
3. Felt
4. Six
5. Alexithymia
6. Goleman
7. Three
8. Two

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Unit 7 Perception
Self Assessment Questions
1. _____________ factors shape perception of an individual.
2. The ______________ in which objects or events are seen by individuals also influence
their attention.
3. Attribution theory was proposed by __________ Kelley
4. ___________ occurs, if, everyone who is faced with a similar situation responds in the same
way.
5. The tendency of individuals to attribute their own successes to internal factors is
called__________________.
6. The ______________ occurs when we draw a general impression on the basis of a single
characteristic.
7. The process through which one s reaction is influenced by other persons he has encountered
recently is called ___________.
8. This tendency to attribute one s own characteristics to other people is called __________.
9. ___________ is the tendency for someone s expectations about another to cause
that person to behave in a manner consistent with those expectations.
10. A negative instance of the self-fulfilling prophecy is called _________________.
11. Decision-making occurs as a reaction to a ______________.
12. While making a decision, data are typically received from ____________ sources.
13. The rational decision making model proposes _______________ steps.
14. People respond to a problem with a limited information-processing capability. As a result,
people seek solutions that are satisfactory and sufficient. This is called __________________
Answers to Self Assessment Questions
1. Three
2. Context
3. Kelley
4. Consensus
5. Self-serving bias
6. Halo effect
7. Contrast effect
8. Projection
9. Self-fulfilling prophecy
10. Golem Effect
11. Problem
12. Multiple
13. Six
14. Bounded rationality

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Unit 8 Motivation
Questions
1. In Maslows theory, _____________ needs include hunger, thirst, shelter, sex, and other
bodily needs
2. In theory __________, management assumes employees are inherently lazy and will avoid
work
3. According to Herzberg, motivators are ____________ factors.
4. Alderfer classifies needs into __________ categories into hierarchical order.
5. The need to excel and to achieve in relation to a set of standards, to strive to succeed is called
need for ________________.
6. The perceived fairness of the interpersonal treatment used to determine organizational
outcomes is called as ______________.
7. Employees should have ____________ and specific goals.
8. Rewards should be ___________ on performance.
9. MBO and ____________Theory is closely linked
10. Employee Recognition Programs has close link with ____________ Theory
11. The professional employees likely to seek more _____________ satisfaction from their work
than blue-collar employees.
12. Temporary workers may be motivated if they are provided with ___________ job
opportunity.
Answers to Self Assessment Questions
1. Physiological
2. X
3. Intrinsic
4. Three
5. Achievement
6. Interactional Justice
7. Tangible
8. Contingent
9. Goal-Setting
10. Reinforcement
11. Intrinsic
12. Permanent

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Unit 9 Leadership
Self Assessment Questions
1. _________ may be said to be a proponent of The Great Man Theory.
2. _______ is one the main scholars of trait theory approach to leadership.
3. McCall and Lombardo (1983) researched both success and failure identified _______
primary traits by which leaders could succeed or 'derail'
4. This theory was developed by the scholars from Ohio State University during ________.
5. The modifications were made by Robert R Blake and ________to covert the managerial grid
into a leadership grid.
6. A ________ Leader, rather than taking autocratic decisions, seeks to involve other people in
the process, possibly including subordinates, peers, superiors and other stakeholders.
9. Major contribution towards development of situational leadership is made by
_______and _______.
10. The ________ of Leadership was developed to describe the way that leaders
encourage and support their followers in achieving the goals they have been set by making the
path that they should take clear and easy.
11. In this model leadership is effective when the leader s style is appropriate to the
situation, this is proposed in the contingency model developed by _____.
12. ______leadership is related to management theories.
13. _________leadership is based on relationship rheories.
14. he transactional leadership style was first described by ______ in 1947
Answerss to Self Assessment Questions
1. Aristotal
2. Stogdill
3. Four
4. 1940-1950
5. Anne Adams Mccanse
6. Participative
7. Likert
8. Lewin
9. Hersey and Blanchard
10. Path Goal Theory
11. Fiedler
12. Transactional
13. Transformational
14. Max Weber

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15. Servant Leader

16. Structural Leader

Unit 10 Group Behavior

Self Assessment Questions
1. Formal groups come into existence for serving a specific _________________
purpose.
2. A ______________ group is neither formally structured nor organizationally
determined.
3. All command groups are also __________ groups.
4 In the ___________ stage the members are entering the group
5. The __________________ stage of group development is especially important for the many
temporary groups that are rampant in todays workplaces.
6. Organizations have ____________ structures that define who reports to whom, who makes
decisions, and what decisions individuals or groups are empowered to make.
7. The more formal regulations that the organization imposes on all its employees, the more the
behavior of work group members will be _________ and _________.
8. Attributes that have a positive connotation in our culture tend to be ____________ related to
group productivity, morale, and cohesiveness
9. No ___________ personality characteristic is a good predictor of group behavior.
10. By watching and imitating __________ members of a group the new comers learn how to
take on their roles effectively and also learn how to play them well.
11. Role _________ is tuning oneself and behaving in a socially desirable manner is a part of
fulfilling role expectations in a given situation in the context of achieving group goals and
organizational goals.
12. When a group member is faced with the challenge of playing multiple roles, role _______
may occur
13. All groups have ________ acceptable standards of behavior that are shared by the groups
members.
14. __________ norms come from informal work groups and primarily regulate social
interactions within the group.
15. The _________ group is characterized as one where the person is aware of the others
16. Status is a _________ defined position or rank given to groups or group members by others.
17. When status inequity is perceived, it creates ______________ that results in corrective
behavior.
18. Schein observes that groups may make decisions through _________ methods.
19. In Decision by_________, two or three people are able to dominate the group into making a
decision to which they agree.
20. Team building is a ____________ way to gather and analyze data to improve teamwork.

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21. In ___________________ team Employees from different work areas but from same
hierarchical level, come together to accomplish a task.
Answers to Self Assessment Questions
1. Organizational
2. Informal
3. Task
4. Forming
5. Adjourning
6. Authority
7. Consistent, predictable
8. Positively
9. Single
10. Senior
11. Expectations
12. Conflict
13. Norms
14. Social arrangement
15. Reference
16. Socially
17. Disequilibrium
18. Six
19. Minority rule
20. Collaborative
21. Cross-functional

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Unit 11 Power and Politics

Questions
1. Formal power may be categorized into___________ types.
2. The opposite of coercive power is __________ power
3. Expert power is relative, not ______________.
4. Where success is less predictable, managers are more likely to use __________ and sanctions
to achieve their objectives
5. US people prefer use of reason in contrast to China where _____________ as a tactic is
preferred
6. _____________ is the process by which managers help others to acquire and use the power
required to make decisions affecting both themselves and their work.
7. When an organization attempts to move power down the ________, it must also alter the
existing pattern of position power
8. Successful coalitions have been found to contain ___________ membership.
9. More coalitions are likely be created where there is a great deal of task and resource
__________________.
10. Coalition formation will be influenced by the __________ tasks that workers
perform.
11. Organizational politics is viewed as the art of creative _____________ among competing
interests
12. Employees who are ___________ self-monitors, possess an internal locus of control
13. The ______________ personality is comfortable using politics as a means to further his/her
self-interest and does not see it as an unethical action.
Answers to Self Assessment Questions
1. Four
2. Reward
3. Absolute
4. 1.Assertiveness
5. Coalition
6. Empowerment
7. Hierarchy
8. Fluid
9. Interdependence
10. Actual
11. Compromise
12. High
13. Machiavellian

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Unit 12 Conflict Management

Self Assessment Questions
1. Who defines conflict "As any situation in which incompatible goals, attitudes, emotions or
behaviours lead to disagreement or opposition between two or more parties." __________
2. Conflict can occur when individuals or groups perceive they have mutually _________ goals or
values
3. Intrapersonal conflict may be of _________ types.
4. _____________________ conflict occurs when a person must choose between two negative
and equally unattractive alternatives.
5. _________ conflict occurs among members of different teams or groups
6. Conflict occurs whenever ____________ exist in a social situation over issues
9. Communication becomes a source of conflict due to _________ in the communication
channels.
10. The potential for conflict is greatest where group members are __________ and
turnover is __________ .
11. Personal variables include individual value systems and ___________ characteristics.
12. There are ___________ direct approaches to conflict management.
13. ____________ occurs when each party gives up something of value to the other.
14. ___________________ is a process where conflicts are reported to the senior levels to
reconcile and solve.
15. There are __________ general approaches to negotiation.
16. _________ bargaining strategy is adopted to create a win-win solution.
17. Personality traits have no significant ________ effect on the bargaining process or
negotiation outcomes.

Answers to Self Assessment Questions

1. R. W Woodman
2. Exclusive
3. Disagreements
4. Inter-actionist
5. Task
6. Three
7. Avoidanceavoidance
8. Inter-group
9. Noise
10. Younger, high
11. Personality
12. Five
13. Compromise
14. Hierarchical Referral
15. Two

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16. Integrative
17. Direct
Unit 13 Stress
Self Assessment Questions
1. Insomnia is __________.
2. Positive stress is called ________.
3. Negative stress is called ___________.
4. ______________is created when role expectations are not clearly understood.
5. Those with an ____________ locus of control believe they control their own destiny.
6. ______________ The confidence in ones own abilities appears to decrease stress.
7. Stress shows itself in _________ ways
8. ____________________ is the simplest and most obvious psychological effect of stress.
9. ______________physical exercise has long been recommended as a way to deal with
excessive stress levels.
10. Individuals can teach themselves to reduce tension through _____________
techniques, such as, meditation.
11. Improved personnel selection and job placement leading to right ______________
thereby reducing chances of non-performance and stress level.
12. The stress reaction is triggered by our __________________ of danger
14. _________ elements are common to most definitions of crisis.
15. There are __________ types of organizational crises
Answers to Self Assessment Questions
1. Sleeplessness
2. Eustress
3. Distress
4. Role ambiguity
5. Internal
6. Self-efficacy
7. Three
8. Job dissatisfaction
9. Non-competitive
10. Relaxation
11. Person-job-fit
12. Perception
13. Voluntary
14. Three
15. Four

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Unit 14 Organizational Change

Self Assessment Questions
1. Forces for change are of _____________ types.
2. Organizations are, therefore, forced to change their operational methods to meet the
demands of the _____________.
3. Environmental factors such as ___________, ______________, and _____________ factors
play a vital role in devising organizational policies and strategy
4. Resistance to change may be of _________ types.
5. Change leads to _______________ among the employees because of its unknown
consequences.
6. Change may bring some potential _________to the organizational power to some people.
7. Many people, depending on their basic values and beliefs, move from anger to ___________.
8. ___________ and considerate listening can reduce employees fear and anxiety towards
change.
9. This can be a costly proposition when there is more than one _____________ union in the
organization, as all the contending parties would fight for power and recognition.
12. Lewin (1951) proposed a ___________ step sequential model of change process.
13. Action research model is another model of __________ change.
14. Planned change can range from ____________ change to _________ change.
15. According to Bennis, Benne and Chin, _______ basic strategies can be adopted to
manage change:
16. According to Nicklos (2004), there can be a ________ strategy in adapting to
changes, i.e. environmental-adaptive.
17. ______________resistance argues for a coupling of power-coercive and
environmental-adaptive strategies.
18. _________________ populations argue for a mix of all four strategies.
19. Short time frames argue for a _____________strategy.
Answers to Self Assessment Questions
1. Two
15. Four
2. Stakeholders
16. 16. Fourth
3. Economic, political and demographic17. Strong
18. Large
13. Planned
14. Incremental, quantum
12. Three
19. Power-coercive
4. Two
5. Insecurity
6. Threat
7. Acceptance.
8. Empathetic
9. Dominant
10. Long-term
11. Social and political

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Unit 15 Organization Development

Questions
1. A technique to study symptom patterns and prescription to the organization. True/False
2. Organization development (OD) is a planned approach to improve _______and _________
effectiveness by conscious interventions in those processes and structures that have an
immediate bearing on the human aspect of the organization.
3 ________ is a strategy of planned change for organizational improvement. This planned
emphasis separates OD efforts from other kinds of more haphazard changes that are frequently
undertaken by organizations.
4. Laboratory training is popularly known as __________ training.
5. Exploitive authoritative system exhibits an autocratic ______________ approach to
leadership.
6. The most distinguishing feature of QWL program is the development of ________________
work groups which consist of multi-skilled workers.
7. The __________ step in OD process involves understanding and identification of the existing
and potential problems in the organization.
8. Any OD activity is incomplete without proper _____________.
9. Sensitivity training is also known as __________.
10. _________ is basically based on grid organization development developed by Blake and
Mouton.
11. In order to gather data and make a diagnosis information is collected from various sources
thorough the use of ________, ______________ and_________about the problems, spelled out
at the initial stage.
12. Organization must formulate the _________of OD programme very clearly and specifically.
13. Only fully competent _________ should be pressed for the service and he should develop
understanding with internal change agents.
Answers to Self Assessment Questions
1. False
2. Employee and organizatuional
3. OD
4. T-group
5. Top-down
6. Self-managing
7. First
8. Change
9. T-Group
10. Grid Training
11. Questionnaires, observations, and interview
12. Objectives
13. OD Consultant

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BUSINESS COMMUNICATION
(MBA0039)

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Unit 1

Basic Principles of Communication

Self Assessment Question

Fill in the blanks
1. For communication to take place, there must be a Sender
and a receiver .
2. Our dress code is an example of Non-verbal communication.
3. Communication is accurate when the Message that is sent is the same as the meaning that is
attached to it.
4. Communication can take place using Words, symbols
or pictures .
5. Communication may best be described as a Process .
Are the following statements true or false?
6. Communication is mostly through words. False
7. The communication message is the same as the meaning of the message. False
8. Communication is a dynamic process. True
9. One reason for failure of communication is wrong interpretation of the message. True
10. The success of communication depends only on the sender of the message. False
11. Immediate feedback is possible in the case of face-to-face communication. True
12. You feel that your professor does not have anything new to say and do not listen to him.
This is an example of physiological noise leading to communication failure. False
13. Your boss gives you a good performance review at a time when the company is making
profits. This is an example of chronological context influencing the communication. True

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14. Match the following

i. Environmental barrier
ii. Individual barrier
Understanding customers
iii. problems
iv. Suppressing the views of
junior employees
v. Speaking with a foreign accent

a. Physical noise
b. Psychological noise
c. Active listening
Organizational
d. barrier
e. Cultural barrier

vi. Messages with multiple meanings f. Semantic barrier

vii. Non-verbal communication
g. Eye movements
Letter addressing customer
Written
viii. complaints
h. communication
channel

Are the following questions true or false?

15. Listening is not a part of communication skills. FALSE
16. Communication is needed only between superiors and subordinates. FALSE
17. External communication is as important as internal communication. TRUE
18. Team skills do not require the ability to communicate effectively. FALSE
19. A destructive review of performance can lower employee morale. TRUE

Unit 2

Types and Channels of Communication

Are the following statements true or false?

1. Two broad areas of communication are oral and written communication. FALSE
2. What you say is more important than how you say it. FALSE
3. Verbal communication is more likely to go wrong in a cross-cultural context. TRUE
4. Jargon refers to words with multiple meanings FALSE

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5. Match the following

i. Nodding the head
ii. Time language
A boss visiting an employees
iii. office
for discussion
iv. An executive chair and a
carpeted room
v. Speaking loudly

a. Kinesics
b. Arriving late for a meeting
c. Personal space and distance
d. Physical context
e. Paralanguage

Fill in the blanks

6. A job interview between an employer and a prospective employee is an example of a TWOWAY FACE TO FACE communication channel.
7. In a one-way non face-to-face channel, the communication is VERBAL/WRITTEN and
IMPERSONAL in nature.

8. When you want the receiver to pay attention to your message,

ORAL communication is better than WRITTEN communication.
9. When using a lot of jargon, WRITTEN communication is more suitable than ORAL
communication.

Unit 3

The Nature of Business Communication

Self Assessment Questions

Are the following questions true or false?
1. Peers are co-workers who work only in different departments of an organization. FALSE
2. Criticizing an employee may be done in public. FALSE
3. A policy of openness is essential for good public relations. TRUE
4. Suggestions should only be given by superiors to subordinates. FALSE
5. Match the following

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i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)

Mass communication
Corporate Social Responsibility
Crisis PR
Distributors
Internet
Statutory compliance
Transparency
Credit rating
Publicity
Persuasion

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Advertising
Social development
Restoring company image
Motivation
Suppliers
Government
Bankers
Borrowing ability
Media
Consumers

Self Assessment Question

Fill in the blanks
6. A formal communication network is characterized by OFFICIAL
CHANNELS.
7.

The most valuable ideas and suggestions often come from

UPWARD communication.

8.
9.

10.

An advantage of regular downward communication is TRANSPARENCY/OPENNESS.

In a multi-layer organization, VERTICAL communication is more important than
HORIZONTAL/LATERAL communication.
While RUMORS should be suppressed, INFORMAL

Unit 4 The Importance of Listening

in the Workplace
Are the following statements true or false?
1. Some people are born listeners. FALSE
2. Comprehension listening is the most basic type of listening FALSE
3. Listening to a salespersons presentation is an example of evaluative listening? TRUE
4. Responding to customer complaints is an example of dialogic listening? FALSE

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5. Solving employees problems often involves both empathetic and therapeutic listening.
TRUE
6. Match the following
i) Listenerspeaker gap
ii) Listening for emotions
iii) Ego problems
iv) Switching from one TV channel to another
v) Speaking in a different language

a. Physiological barrier
b. Gender barrier
c. Attitudinal barrier
d. Bad listening habit
e. Cultural barrier

Fill in the blanks

7. Paying more attention to the way a speaker is dressed, is an example of focusing on
DELIVERY rather than CONTENT
.
8. A

good

listener

tries

to

understand

the

meaning

behind

VERBAL and NON-VERBAL messages.

9. LISTENERS are known to be physiologically quicker than

SPEAKERS.
10. Active listening can be demonstrated verbally through CLARIFICATIONS/QUESTIONS and
FEEDBACK/SUGGESTIONS
.
11. A good listener is CURIOUS and OPEN-MINDED/ATTENTIVE.
Self Assessment Question
Are the following statements true or false?
12. Listening skills are equally important in all types of industries.FALSE
13. Customers should be made to apologize for making wrong complaints FALSE
14. Listening actively to a customer should be indicated through verbal communication. TRUE
15. Listening to employees, or inviting their suggestions involves only downward
communication. FALSE
16. The type of listening during a job interview is mostly evaluative listening. TRUE

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Unit 5

Guidelines for Written

Business Communication

Self Assessment Question

Are the following statements true or false?
1. It is better to use the word cognizant, rather than aware. FALSE
2. The expression Her voice was silky smooth is an example of a metaphor. TRUE
3. Abstract nouns should be used as the subject in a sentence. FALSE
4. The sentence Each of the following employees are being promoted is grammatically
correct. FALSE
5. Positive ideas may be expressed by using the second person pronoun. TRUE

Self Assessment Question

6. Match the following
i) Passive voice
ii) American spelling
iii) Quotation marks
iv) Redundancy
v) Frequently misused words

a)
b)
c)
d)
e)

Negative ideas
Labor
Enclose title of an article
Full complete
Raise and rise

Self Assessment Question

Fill in the Blanks
7.

8.

The tone of business writing should not

DISCOURTEOUS/EXAGGERATED and DISCRIMINATORY.

be

NEGATIVE/INSINCERE/

Using the passive voice is a technique of SUBORDINATION/DE-EMPHASIS.

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9.

Saying Our products are synonymous with quality and affordability is

Of an example MY ATTITUDE

10. Readability is determined by SENTENCE LENGTH/WORD LENGTH.

11.

Saying Manpower instead of Human Resources is an example of

SEXIST LENGUAGE/DISCRIMINATORY TONE.

Unit 6

Developing Oral Business

Communication Skills

Self Assessment Question

Are the following statements true or false?
1. Conflicts between co-workers can be resolved through teleconferencing. FALSE
2. Asking for a few days of leave from work may be done through voice mail. FALSE
3. Telephone communication has the advantage of providing immediate feedback. TRUE
Self Assessment Question
4. Match the following
i) General purpose statement
ii) Quantified goal
iii) Audience size, age and gender
iv) Use of humor
v) Trigger words
Self Assessment Question

a.
b.
c.
d.

Demographics
Specific purpose statement
Specific purpose statement
Opening and closing statemet

e. Speaking from notes

Fill in the blanks

5. Two types of visual aids that can make presentations more credible are
PHOTOGRAPHS and PRODUCT DEMONSTRATIONS.
6.

TRANSPARENCIES are better suited for large audiences than

FLIP CHART.

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7.

Power point slides should not be CLUTTERED/OVERCROWDED and

OVER-DECORATED.

8.

In

general,

visuals

should

be

prepared

to

match

the

AUDIENCE.
9. Two types of media for presenting visual aids to a small audience are
FLIP CHARTS and COMPUTERIZED DISPLAYS .

Unit 7

Reading Skills for Effective Business

Communication

Self Assessment Question

Are the following statements true or false?
1. We cannot understand the intention of the author while reading any given text. FALSE
2. A book is read only for the pleasure of reading it. FALSE
3. The intention of reading a medical report is to gain information. TRUE
4. Reading is an encoding process of communication. FALSE

Unit 8

Internal Business Communication

Guidelines for Meetings

Self Assessment Question

Are the following statements true or false?
1. Only problem solving meetings need to be planned in advance. FALSE
14. An agenda is prepared by the participants of the meeting. FALSE
15. An agenda provides an outline of how the meeting will run. TRUE

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16. A progress meeting is the most challenging type of meeting. FALSE

17. A problem solving meeting is the most frequently held type of meeting. FALSE
Self Assessment Question
6. Match the following
i) Nominal Group Technique
ii) Convergence
iii) Minutes
iv) Meeting etiquette
v) Opening the meeting

a. Unbiased
b. Different viewpoints
c. Permanent record
d. Mini - meeting
e. Outline of meeting

Self Assessment Question

Fill in the Blanks
7.

8.

After the meeting, follow-up must be done by the CHAIR PERSON and the
PARTICIPANTS/MEMBERS.

A meeting without an agenda and convergence is a meeting that lacks

STRUCTURE

9.

A meeting where there are unrelated discussions is one which lacks

FOCUS

10.

11.

Meetings
are
efficiently
conducted
ORGANIZED/CONCLUSIVE/STRUCTURED/FOCUSED

when

they

are

Meetings are ineffective when DECISIONS are not made.

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Unit 9

Internal Business Communication

Writing Memos, Circulars and Notices

Self Assessment Question

Are the following statements true or false?
1. A memo is used only for upward communication. FALSE
2. One of the three Cs of prcis writing is Components. FALSE
3. Unlike a regular report, the memo is brief and informal. TRUE
4. Match the Following
i) Passive voice
ii) Direct organizational plan
iii) Persuasive memo
iv) Indirect organizational plan
v) Subject Line

a.
b.
c.
d.
e.

Regular reports
Informational memo
Call for action
Reasons first
Main message

Fill in the Blanks

5. A NOTICE is a type of legal document.
6. A common purpose of notices and circulars is to INFORM,
rather than PERSUADE .
7. A SHOW CAUSE notice is an example of a notice sent to individual employees.

Unit 10

Internal Business Communication

Electronic Media and Shareholder Communication

Self Assessment Question
Are the following statements true or false?
1. The intranet is part of an informal communication network. FALSE
2. The intranet can be customized to meet the needs of smaller companies. TRUE

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3. The intranet encourages grapevine. FALSE

4. The intranet can make meetings more focused. TRUE
5. The intranet involves high investment in maintenance and training. TRUE
6. Match the following
i) WIFM principle

a. Reader benefits

ii) Ps and Qs

b. Etiquette

iii) Shouting

c. All capital letters

iv) Readability

d. Bullet points and white space

v) FYI

e. Acronym

Fill in the blanks

7. ORAL and WRITTEN channels are used to communicate with shareholders.
8. Project site and factory visits are part of CRISIS communication with shareholders.
9. Effective communication with shareholders means being OPEN/TRUTHFUL with them.

Unit 11

External Business Communication

Writing Business Letters

Self Assessment Question

Are the following statements true or false?
1. The language of business letters is similar to the language of advertising. FALSE
2. Every business letter should have a salutation, a body and a close. TRUE
3. The tone of a business letter is more important than the format. FALSE
4.

Match the following

i) Adjustment
ii) Order letter
iii) Bad news letter
iv) AIDA format
v) Credit and collection letters

a)
b)
c)
d)
e)

Replacement of defective product

Supplier
Rejecting a business proposal
Persuasive message
Routine letters

Fill in the Blanks

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5. A letter expressing a goodwill message should follow the

ORGANIZATIONAL plan.
6. Granting a request for a refund at the beginning of
presenting the MAIN IDEA first.
7. A BUFFER is an opening statement in a bad news letter.

DIRECT
a letter means

8. In a persuasive letter, the indirect plan is called the AIDA FORMATE

.
9. In an indirect plan, they REASONS / EXPLANATIONS are presented first.

Unit 12

Other Forms of External

Business Communication

Self Assessment Question

Are the following statements true or false?
4. A press release is a paid form of communication. FALSE
5. Maintaining good media relations is important for getting a press or news release accepted.
TRUE
6. The purpose of a press release is to sell a companys products.FALSE
Self Assessment Question
4. Match the following
i) Corporate advertising objective
ii) Event sponsorship
iii) Corporate social responsibility
iv) Advocacy advertising
v) Crisis communication

a.
b.
c.
d.
e.

Change of attitude
Display logo and message
Public Service Advertising
Company viewpoint
Protect corporate reputation

5. Product advertising can communicate effectively without words, through choice of an

appropriate MEDIUM/VISUAL.
6. Interest in a product can be built by developing a UNIQUE SELLING PROPOSITION.

7. Another name for the AIDA format is the HIERARCHY OF EFFECTS.

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Unit 13

Internal and External Business

Communication Writing Business Reports

Are the following statements true or false?

4. A business report is a subjective presentation of information. FALSE
5. There is no single format for a business report. TRUE
6. The purpose of a proposal is to inform. FALSE
7. A compliance report is a one-time report. FALSE
8. The quality of a report is judged by its visual appeal. FALSE
Self Assessment Question
6. Match the following
i) Memo format
ii) Preliminary part
iii) Problem definition
iv) Appendix
v) Documentation
Fill in the Blanks

a.
b.
c.
d.
e.

Informal
Executive summary
Body of report
Technical specifications
Bibliography

7. Audience analysis helps to determine the Tone/length and the

formality/complexity of the report.
8. The survey method is used to gather Primary data for a report.
9.Expert opinions documentation/references/bibliography
are two ways of making a report more convincing.
9. The use of Transition sentences/concrete nouns/correct tenses recommended
technique of writing style in business reports. (10 number)
10. It is better to emphasize the Ideas in a report rather than the writer/reader. (11
number)

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Unit 14

Employment Communication
Resumes and Cover Letters

Self Assessment Question

Are the following statements true or false?
1. Resumes should be tailored to the needs of different employers. TRUE
2. In a chronological resume, only the most recent job is listed.FALSE
3. A functional resume is more applicable for experienced candidates. TRUE
4. The components included in a resume will depend on the type of resume. FALSE
5. There is no prescribed length for a resume. FALSE
6. Match the following
i) Solicited application letter

a. Subject line

ii) Less competition for applicant

b. Unsolicited application letter

iii) Attention-getting opening

c. Showing familiarity with employer

iv) Creating interest

d. Relating qualifications with job

10.5

Convincing prospective employer e. Providing evidence and benefits

7. Lettersofrecommendationshouldcontain Relevant information

legal safeguards AND
legal safeguards

8. The indirect organizational plan is used to write Job refusal

letters and negative recommendation letters.
9. A job acceptance letter conveys good news.

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Unit 15

Employment Communication
Group Discussions and Interviews

Are the following statements true or false?

1. A GD is a free-wheeling discussion, with full freedom given to participants to select topics of
their choice.FALSE
6. A GD evaluates participants based on the solution offered to a problem FALSE
7. What you say in a GD is as important as how you say it. TRUE
8. Group communication skills include listening skills. TRUE
9. A case-based GD requires greater analytical skills than a topic-based GD. TRUE
6. Match the following
i) Pre-interview preparation
ii) During the interview
iii) Commonly asked interview
question
iv) Action stage
v) Job related information

a. Structuring the interview

b. Body language
c. Strengths and weaknesses
d. Thank you letter
e. Opportunity for career
advancement

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STATISTICS FOR MANAGEMENT

(MBA0040)

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Unit 1 Introduction
1. In which of the following situations would you like to use Statistics?
a. Buying a house (Yes)
b. Purchasing medicine prescribed by a doctor (No)
c. Investing funds in several options. (Yes)
d. Attending relatives marriages (No)
2. According to the definition of Statistics given by Croxton and Cowden, what are the four
components of Statistics?
Ans - 2. Industrial Quality control, Investment policies, to find Market potential for a product.
3. Mention some other areas where there is scope of applying statistics.
Ans -3. The four components of Statistics are collection, presentation, analysis and
interpretation of data.
4. a) Will the same degree of accuracy be needed when measuring the height of a mountain and
the height of a person?
Ans a) No
b) Does Statistics deal with qualitative data?
Ans b) No
5. Categorise the following data as qualitative or quantitative data.
a) The number of transactions occurring in an ATM per day
Ans a) Quantitative
b) The popular brand name in cars is Maruthi.
Ans b) Qualatative
6. Total sales of a product in Area A is 840 for 30 working days. Total sales of same product in
Area B is 784 for 28 working days. Do you think that Statistics needs to be applied to get an
appropriate picture regarding comparison of sales?
Ans - Yes
Answers to Self Assessment Questions
1. a) Yes
b) No
c) Yes
d) No
2. Industrial Quality control, Investment policies, to find Market potential for a product.
3. The four components of Statistics are collection, presentation, analysis and interpretation of
data.
4. a) No
b) No

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5. a) Quantitative data
b) Qualitative data
6. Yes
Unit 2 Statistical Survey
Self Assessment Questions
1. What are the main stages in a survey? (Planning and execution)
2. Training of investigators belongs to which stage? (Planning)

3. Analysis of data is a part of execution of survey. Is this correct? (Yes)

4. Classify the following as finite or infinite population.
i) Production of a product in a factory for a day. (Finite)
ii) Number of points in this page. (Infinite)
iii) The set of rational numbers. (Infinite)
iv) The weight of new born babies measured up to first decimal place in a state during first week
of February 2008. (Finite)
5. Classify the following as attribute or variable.
i) Eye color of human beings (Attribute)
ii) Number of pages in a book of various subjects (Variable)
6. Classify the following as discrete or continuous variable
i) Number of shares sold each day in a stock market. (Discrete)
ii) Temperatures recorded every half hour at a regional meteorological centre.
(Continuous)
7. State whether the following data are primary or secondary.
i) An official of the Census Board of India is preparing a report on census of population based on
the survey data collected by the Census Board. .. (Primary data)
ii) An HR representative of a software company is deciding on the time taken to perform a
particular job on a project on the basis of random observations collected by him. (Primary data)
iii) A neurologist is examining the relationship between cigarette smoking and brain tumor
based on the data published in a famous neurology journal. (Secondary data)
8. State whether the following statements are True or False .
i) Census conducted by Government of India is an example of primary data.
ii) TV News Bulletins gather information on any event through their agents.
iii) Schedules make respondents record their answers.
Answers to self assessment questions
1. Planning and execution
2. Planning
3. Yes
4. i) Finite ii) Infinite iii) Infinite iv) Finite

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5. i) Attribute ii) Variable

6. i) Discrete ii) Continuous
7. i) Primary data ii) Primary data iii) Secondary data
8. i) True ii) True iii) False iv) True v) False
Unit 3 Classification, Tabulation and
Presentation of Data

Self Assessment Questions

1. Fill in the blanks
i. Classification is a systematic __________ of the units according to their ____________
__________.
ii. Classification reduces _________ of the data.
iii. Classification of data that are non-measurable is known as ____ ___.
iv. Data arranged logically according to size is known as _________.
v. Manifold classification involve more than _________ variables.
vi. Data arranged according to time of occurrence is known as _________.
2. State whether the following statements are true or false.
i) Tabulation presents the data in a minimum space
ii) Tabulation is a process of analysis
iii) General purpose table deals with specific objective
iv) Derived tables deal with total, percentages, ratios and so on
v) Row of a table is represented by the vertical arrangement of data
3. Fill in the blanks.
i) If the data readings are 3, 4, 5, 6, 7, then it is called _________ variable.
ii) Height is generally __________ variable.
iii) There are ____________ derived frequency distributions for any frequency distribution.
iv) Width of class-interval is given by the difference between ________ and ______.
v) There are ________ marginal distributions for a distribution.
4. State whether the following statements are true or false.
i) Diagrams give accurate value.
ii) Pie diagram is drawn according to degree subtended at the center of a circle.
iii) Simple bar diagram is drawn for multiple characteristics.
Answers to Self Assessment Questions
1. i. Grouping, Common, Characteristics.
ii. Bulk,
iii. Attribute
iv. Series
v. Two
vi. Series
2. i. True ii. False iii. False iv. True v. False
3. i. Discrete variable

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ii. Continuous variable

iii. Five
iv. Upper class limit and lower class limit
v. Two
vi. Sturge s
vii. F / N
4. i. False ii. True iii. False

Unit 4 Measures Used to Summarise Data

1. State whether the following questions are True or False .
i. For a given set of values if we add a constant 5 to every value, then the arithmetic mean is
affected.
ii. Arithmetic mean can be calculated for distribution with open-end classes.
iii. Arithmetic mean is affected by extreme values.
iv. Arithmetic mean of 12, 16, 23, 25, 28, 32 is 22.
2. State whether the following questions are true T or false F .
i. Mode is based on all values
ii. Mode = 3 Median Mean
iii. Geometric mean is used when we are interested in rate of growth of any phenomena.
iv. Harmonic mean exists if one of the values is zero.
v. A.M < G.M < H.M for any two values a and b .
vi. Arithmetic mean can be calculated accurately even when the distribution has openend class.
vii. Mode can be located graphically.
viii. Mode is used when data is on interval scale.
3. State whether the following questions are True or False .
i. Quantiles are positional value.
ii. Quantiles help us to find percentage of readings below or above a certain value.
iii. Q2 = P50 = D7 = Median
4. State whether the following questions are true, T or false, F .
i. The cost of living index numbers calculated are based on weighted averages.
ii. Many of the items which we use in our life can be assigned weights.
5. State whether the following questions are true T or false F .
i. Standard deviation is based on all values.
ii. Standard deviation of a set of values is increased if every value of the set is increased by a
constant.
iii. Standard deviation can be calculated for distributions with open-end classes.
Answers to Self Assessment Questions
1 i- T, ii- F, iii T, iv - F
2 i F, ii F, iii T, iv F, v F, vi F, vii T, viii T
3 i T, ii T, iii - F

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4 i- T, ii - T
5 i T, ii F, iii F, iv - T
T denotes True
F denotes False

Unit 5 Probabilities

Self Assessment Questions

1. To which approach the following probability estimates belong to:
i. The probability that India will win the game. (Relative frequency)
ii. The probability that Mr. Ram will resign from the post. (Subjective)
iii. Probability of drawing a red card. (Classical)
iv. Probability that you will go to America this year. (Subjective)
2. Find the probabilities in the following cases:
i. Getting an even number when a die is thrown
ii. Selecting two ys from the letters x, x, x, x, y, y, y
iii. Selecting a King and Queen from a pack of cards, when two cards are drawn at a time
iv. Getting 53 Mondays in ordinary year
B) = 0.5. Find 3. Given P(A) = 0.6, P(B) = 0.7, and P(A P(A U B)?
4. State whether the following questions are true or false.
i. Bayes probability estimates sample value
ii. Conditional probability can incorporate costs
iii. Bayes probability gives up to date information

Answers to self assessment questions

1.
i) Relative frequency
ii) Subjective
iii) Classical
iv) Subjective
2.
i) ii) 1/7 iii) 8/663 iv) 1/7
3. 0.8
4.
i) False ii) False iii) True
5.
i) 1 ii) Mean iii) [E(X)]2

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Unit 6 Theoretical Distributions

Self Assessment Questions
1. State whether the following statements are true T or false F.
i) The sum of probabilities sometimes will be greater than 1.
ii) The amount of time you study for an exam is a discrete random variable.
iii) The Bernoulli distribution has only one parameter p.
2. State whether the following statements are true T or false F.
i) Mean of binomial distribution is npq.
ii) n and p are the parameters of binomial distribution.
iii) If the mean and variance of a binomial distribution are
6 and 5, then p = 1/6.
iv) Each trial in a binomial experiment has the different probability of success, p.
3. State whether the following statements are true T or false F.
i. X is a Poisson variate if P < 0.1 and n > 10
ii. Example of bimodal distribution is Poisson distribution
4. State whether the following statements are true T or false F.
i. Quartile deviation of Normal distribution is 4/ 5
Answers to Self Assessment Questions
1. i F, ii- F, iii- T
2. i-F, ii- T, iii- T, iv- F
3. i- T, ii- T
4. i- F, ii- F, iii- T
T denotes True
F denotes False

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Unit 7 Sampling and Sampling Distributions

Self Assessment Questions
1. State whether the following statements are true T or false F .
i) Population is aggregate of objects under study.
ii) Sampling method consume time and resources.
iii) Any summarised figure from population is known as statistics.
iv) We adopt sampling technique in our activities.
v) Population is a subset of sample.
vi) An unbiased sample gives an accurate prediction of characteristics of an entire population.
vii) The standard deviation of sampling distribution of a statistic is known as standard error of
that statistic.
viii) Standard error is used as a reliability measure.
ix) Faulty selection of sample contributes to sampling error.
x) Personal bias increases the non-sampling errors.
xi) Unbiased errors are cumulative in nature.
xii) Biased errors are also known as compensatory errors.
2. State whether the following statements are true T or false F .
i) Sample in which units are selected by judgment is known as probability sample.
ii) Judgment sampling does not give representativeness of a sample.
iii) Large sample size always results in minimising the standard error.
iv) A sampling plan that divides the population into well-defined groups from which random
samples are drawn is known as cluster sampling.
v) The principles of simple random sampling are the theoretical basis for statistical inference.
vi) If the mean of a certain population is 20, it is likely that most of the sample means will be 20.
vii) Any sampling distribution can be totally described by its mean and standard deviation.
viii) Sampling from infinite population and from a finite population with replacement results in:
nx
ix) The central limit theorem assures that the sampling distribution of mean is always normal.
x) Stratified sampling is used when each group considered are more homogenous within itself
and heterogeneous between group.
Answers to Self Assessment Questions
1. i- T, ii- F, iii- T, iv- T, v- F, vi- T, vii- T, viii - T, ix- T, x- T, xi- F, xii- F
2. i- F, ii- T, iii- T, iv- F, v- T, vi- F, vii- F, viii - T, ix- T, x- T
T denotes True
F denotes False

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Unit 8 Estimation
Self Assessment Questions
1. XY Pizza has developed quite a business in Bangalore by delivering pizza orders promptly. It
guarantees that its pizzas will be delivered in 30 minutes or less from the time the order was
placed, and if the delivery is late, the pizza is free. The time that it takes to deliver each pizza
order that is on time is recorded in the Pizza Time Book (PTB), and the delivery time for those
pizzas that are delivered late is recorded as 30 minutes in the PTB. A sample of 12 random
entries from the PTB is listed in table 8.2.
Table 8.2: Twelve random entries of pizza delivery time
15.3 29.5 30
10.1 30
19.6
10.8 12.2 14.8 30
22.1 18.3
i) Find the mean for the sample.
ii) From what population was this sample drawn?
iii) Can this sample be used to estimate the average time that it takes for Pizza Hut to deliver a
pizza? Explain.
2. Madhu, a frugal student, wants to buy a used bike. After randomly selecting 125 wanted
advertisements, he found the average price of the bike to be Rs. 3250 with a standard deviation
of Rs. 615. Establish an interval estimate for the average price of bike so that Madhu can be:
i) 68.3% certain that the population mean lies in this interval.
ii) 95.5% certain that the population mean lies in this interval.
3. Given the following confidence levels, express the lower and upper limits of the confidence
interval for these levels in terms of and (Use the normal distribution tables). x x
i) 54 percent
ii) 75 percent
iii) 94 percent
iv) 98 percent
4. From a population of 540, a sample of 60 individuals is taken. From this sample the mean is
found to be 6.2 and the standard deviation to be 1.368.
i) Find the estimated standard error of the mean.
ii) Construct a 96 % confidence interval of the mean.
5. For the following sample sizes and confidence levels, find the approximatet values for
constructing confidence intervals (use the t table).
i) n = 28; 95%
ii) n = 8; 98%
iii) n = 13; 90%
iv) n = 25; 95%
Answers to Self Assessment Questions
1. i) For the given sample the mean is 20.225 minutes.

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ii) The population was drawn from the Pizza Time Book (PTB) of XY Pizza.
iii) No. As the time over 30 minutes is recorded as 30 and hence, it will underestimate the
delivery time.
2. The population standard deviation is given as:
3250xn;615
and standard error Se is calculated as:
55.01125615nx
i) = 3250
55.01 = 3194.99 and 3305.01 to be 68.3% certain. x1x
ii) 95.5%
110.02 giving a range between 3139 and 3360.02. x2x certain means = 3250
3. The required lower and upper class intervals are:
i. ii.
x15.1x x74.0x
iii. iv.
x33.2x
4.
i. as 05.0Nn

ii. = 6.2

x88.1x
1NnNNx

167.015406054060368.1x
2.05 (0.167) x05.2x

Hence, the LCL and UCL are 5.86 and 6.54 respectively.
5.
i) 2.052
ii) 2.998
iii) 1.782
iv) 2.262

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Unit 9 Testing of Hypothesis in Case of

Large and Small Samples
Self Assessment Questions
1. For the following cases; specify which probability distribution to use in hypothesis testing:
i. Ho: m = 27, H1: m 27, x = 33, sample s = 4, n = 25
ii. Ho: m = 98.6, H1: m > 98.6, x = 99.1, s = 1.5, n = 50
iii. Ho: m = 3.5, H1: m < 3.5, x = 2.8, sample s = 0.6, n = 18
iv. Ho: m = 382, H1: m 382, x = 363, sample s = 68, n = 12
v. Ho: m = 57, H1: m > 57, x = 65, sample s = 12, n = 42
2. State whether the following statements are True or False .
i) Null hypothesis states that there is significant differences between observed and hypothetical
values.
ii) 1% level of significance means we are ready to reject a true hypothesis in 99% of cases.
iii) If s then it is two-tailed test. = the Null hypothesis Ho:
iv) If the calculated value of a statistic is less than tabulated value of the statistics, then Ho is
accepted.
v) 1 - is called power of the test.
vi) if n1 2 = 12 results of two samples 1 = 10, 2 = 60, 1 = 50, = 300, n2 = 500, taken from
two cities A and B then we test for between means under different population.
vii) If n > 30, then we do not apply z test unless population S.D is known.
3. State whether the following statements are true T or false F .
i) t distribution is __________ probability distribution.
ii) t distribution s parameter is __________.
iii) t distribution has ___________ areas at the tail than normal distribution.
iv) The mean and variance of the t distribution are ________ and ________.
Answers to Self Assessment Questions
1. i. Normal distribution
ii. Normal distribution
iii. t distribution DOF
iv. Normal distribution
v. Normal distribution
2. i. False
ii. False
iii. True
iv. True
v. True
vi. True

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vii. True
3. i. Continuous
ii. Degrees of freedom
iii. Larger
iv. Zero, greater than one

Unit 10 Chi Square

Fill in the Blanks given below.
1. __________ divides the area under X2 into two equal portions.
2. The number of parameters for Chi-Square distribution is ____.
3. Mean 2 distribution is __________. of
2 4. test is a __________ test.
5. A table with 4 rows and 2 columns has the degrees of freedom of _____________.
6. Mode of X2 distribution is equal to degrees of freedom less ________
7. X2 test is wholly based on _________ data.
8. If 2 test, then the there are four rows and five columns in classification for number of
degrees of freedom equal to __________.
9. If the X calculated 2 2 value, then value is greater than the tabulated the null hypothesis
is __________.
Answers to Self Assessment Questions
1. Median
2. One
3. Degrees of Freedom
4. Non-parametric
5. 3
6. 2
7. Sample
8. 12
9. Not Rejected

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Unit 11F Distribution and Analysis of Variance

(ANOVA)
Self Assessment Questions
1. State whether the following statements are true T or false F.
i) Populations from which the samples are selected are normally distributed.
ii) The effects of various components are not additive.
iii) Sum of squared due to factors is crude sum of squares minus correction factor.
iv) Analysis variance is useful to test several means
v) Another tool applied to test several means is Z / t test.
vi) F ratio is always calculated with respect to mean square error.
vii) The F-distribution curve depends on the degrees of freedom.
viii) In applying analysis of variance, the sample sizes must be equal.
ix) In a one-way ANOVA, the null hypothesis always states that all the population means are
different.
x) The F-statistic is the ratio of variance between the samples to the variance within the samples
xi) In a one-way ANOVA, if the F test statistic is greater than the critical F value, you will reject
null hypothesis, because there is a significant difference between the sample means.
Answers to Self Assessment Questions
1.
i) T ii) F iii) T iv) T v) F vi) T vii) T viii) F ix) F x) T xi) T

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Unit 12 Simple Correlation and Regression

Self Assessment Questions
Calculate the required correlation coefficients.
1. i. From the following data, calculate the correlation between variables 1 and 2 keeping the
3rd constant.
r12 = 0.7; r13 = 0.6 r23 = 0.4
ii. Calculate r23.1 and r13.2 from the following:
r12 = 0.60; r13 = 0.51; r23 = 0.40
iii. Given the zero order correlation coefficients, calculate the partial correlation between
variables 1 and 3 keeping the 2nd constant. Interpret your result.
2. State whether the following questions are True or False .
i. Scatter diagram does not give us a quantitative measure of correlation coefficient.
ii. Correlation studies estimate the values of one variable from the knowledge of the other.
iii. Correlation coefficient is an absolute measure.
iv. The correlation studied between height and weight, keeping age as constant.
3. State whether the following statements are True or False .
i. Correlation coefficient is a geometric mean between regression coefficients
ii. The regression lines pass through )Y,X(
iii. byx = r . S.D of X / S.D of Y
iv. The higher the angle between regression coefficients, the lower is the correlation coefficient.
Answers to Self Assessment Questions
1. i. Refer section 12.6
ii. Refer section 12.6
iii. Refer section 12.6
2. i. True ii. False iii. False iv. True
3. i. True ii. True iii. False iv. True

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Unit 13 Business Forecasting

Self Assessment Questions
1. State whether the following statements are True or False .
i. Forecast is an estimate based solely on past data of the series under investigation.
ii. In time series analysis method a comparative study of variations can be made.
iii. In exponential smoothing, old observations are given increasing exponential weightage.
Answers to self assessment questions
1. i. False
ii. True
iii. False

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Unit 14 Time Series Analysis

Self Assessment Questions
1. State whether the following statements are True or False
i) The prices of cooking oils reduce after the harvesting of oil seeds and go up after some time
is an example of cyclic variations in a time series.
ii) The effect of national strikes, floods, earthquakes are examples of random variations in time
series.
2. Fill in the following blanks.
i) A set of numerical value observed at regular interval of time is called _______.
ii) Long term movements in time series are called ______.
iii) Variations that occur within a year are known as _______.
iv) Semi-Average Method is used to measure _________.
v) Method of Moving Averages does not show any _______ relationship.
Answers to Self Assessment Questions
1.
i) False
ii) True
2.
i) Time series
ii) Secular trend
iii) Seasonal variations
iv) Trend
v) Functional relationship

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Unit 15 Index Numbers

Self Assessment Question

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HUMAN RESOURCE MANAGEMENT

MBA0043

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Self Assessment Question:-Unit One Human Recourse Management An Introduction.

Q1-Personal Management is proactive while Human Resources Management is reactive [False]
Q2-Trade Unions Influence the HRM policies of a company [False]
Q3- PM Practices support business result better than HRM practices [False]
Q4-Career planning and employee growth is an initiate of the HRM philosophy [True]
Q5-A grievance management system is a common HRM function [False]
Q6- According to JUCIUS the human factor refers to a whole consisting of inters related
interdepended & inter-acting physiological, physiological, sociological & ethical components.
Q7- The PHYSIOLOGICAL elements in managing employees are more challenging as compared
the physiological one.
Q8-Physiologically it is characterized by EMOTION & IMPULSES.
Q9-Majority of the problems in organizational setting is HUMAN & SOCIAL rather than physical
or economic.
Q10-Conflicts in perception w.r.t. ETHICS also impact employee behavior work.
Q11- Leadership Practices and work-group pressures profoundly influence employee
SATISFACTION & PERFORMANCE.
Q12-Any factor influencing employee behavior is embedded in a SOCIAL SYSTEM. For instance,
to understand the impact of pay on performance, you also have to understand the CLIMATE
that exists in the work group and the LEADERSHIP STYLE.
Q13- The origin & progress of the human relation movement [practically in USA] has been due
to certain SOCIAL & CULTURAL FORCES working there, such as Recognition of the dignity of the
individual & his personality.
Q14-In management Awareness training, managers are made more SENSTIVE TO THERE
ATTITUDE [such as thinking of all engineers are male] & in CHANGING THERE ATTITUDES.
Q15-HUMAN RELATION MANAGEMENT is a process that brings employees into contact with
and causes them to be influenced by their leaders, their jobs, & other aspects of the
organizations which they work.
Q16-The decline in popularity of the term Human Relation stems in part from the frustrations
experienced by managers of the fifties & sixties who attempted to use a human relation concept
which was un-realistically limited to PEOPLE-PEOPLE RELATIONSHIP.
Q17-In the broadest sense, human relations refer to the INTERACTION of people in all walks of
life-in schools, homes, business & government.
Q18-Human relations week to emphasize EMPLOYEE aspects of work rather than technical or
economic aspects.
Q19-Every person bring a unique set of talents, ambition & work experience to a job.
Innovations in technology & production methods generally require the restructuring of
INEXPERINCED EMPLOYEES.
Q20-PERFORMANCE MANAGEMENT SYSTEM helps determine the correct processes for setting
goals & measuring achievements.
Unit-Two HRM in India.
Q1-In India diversity is a concern because we are very conservative & a closed society [False]
Q2- India is gaining importance because of the quality as well as the cheap cost of living [True]
Q3-Our legal framework is very advanced, allowing for foreign companies to work easily in India
[True]

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Q4- Grievance management system is a common HRM function [True]

Q5- Kautilya provides a systematic treatment of management of human resources as early as 4th
century B.C. in his treatise titled ARTHA-SHASTRA.
Q6-From the 14th century B.C. to the latter half of the 10th century A.D.the relationships
between the employer & employees were marked by JUSTICE & EQUITY.
Q7-In Varnashram of caste system, those devoting themselves in manual work were known as
SHUDRAS.
Q8-During early British rule, there prevailed a LAISSES-FAIRE a policy towards the business.
Q9-The Madras Labor Union was organized in 1918.
Q10-The culture is highly AUTHORITARIAN in character.
Q11-For lack of JOB-OPPORTUNITIES the workers can not & do not have any say in their job or
working condition.
Q12-COMMUNICATION here means not only the efficient sending & receiving of messages but
also includes sensitivity to the understanding of feelings, attitudes & cognitions of the
subordinate.
Q13-It was the advent of the information technology era in India the brought with it the
WESTERN MANAGEMENT Practices.
Q14-There was exponential growth in employment both DIRECTLY as well as INDIRECTLY.
Unit Three Human Resource Planning:-Q1-Through planning a management strives to have the right number & the right kind of people
at the right places, at the right time, to do things which result in both the ORGANIZATIONAL
AND THE INDIVIDUAL receiving the maximum large-range.
Q2- Anticipating manpower problems by projecting present resources in to the future &
comparing them forecast of requirements to determine their adequacy, both QUANTITATIVELY
AND QUALITATIVELY.
Q3-Manpower planning consists in PROJECTING FUTURE MANPOWER REQUIREMENTS &
developing manpower plans for the implementation of the projects.
Q4-Human Resource Planning is essential of frequent LABOUR TURN-OVER which is
unavoidable and even beneficial.
Q5-Manpower planning is required in order to meet the needs of expansion programs which
becomes necessary because of increase in the demand for goods & services BY A GROWING
POPULATION a rising standard of living.
Q6-Manpower planning is also needed in order to identify areas of SURPLUS personnel or areas
in which there is a SHORTAGE of personnel.
Q7-it is the generally done by government & covers items like population projection, program
of economic development, educational facilities, occupational distribution, & growth, industrial
& - Geographical mobility of personnel AT THE NATIONAL LEVEL.
Q8-It may be done by the government- Central or state-& may cover manpower needs of
agricultural industrial & service sector. AT THE SECTOR LEVEL.
Q9-It may cover manpower forecast for specific industries, such as engineering, heavy
industries, consumer goods industries, public utility industries, etc. AT THE INDUSTRIES LEVEL
Q10-It may relate to its manpower needs for various departments & for various types of
personnel AT THE LEVEL OF THE INDIVIDUAL UNIT.
Q11- FORECASTING provides the basic premises on which the manpower planning is built.
Q12-An expansion following enlargement & growth in business involves the use of additional
machinery & personnel, & a re- allocation of facilities, all of which call for ADVANCE PLANNING
of Human resource.

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Q13-A SKILL INVENTORY contains data about each employees skills abilities, work
performances & other items of information which indicate his overall value to the company.
Q14-To ASSIST, COUNSEL & PRESSURISE the operating management to plan & established
objectives:
Q15-To COLLECT & SUMMARISED DATA in total organizational terms & to ensure consistency
with long range objectives & other elements of the total business-plan.
Q16-To MONITOR & MEASURE PERFORMANCE against the plan & keep the top management
informed about it.
Q17-To PROVIDE THE RESEARCH NECESSARY for effective manpower & organizational planning.
Unit- Four Recruitment & Selection:-Q1-Recruitment or manpower selection process is the first step in the employment of TALENT.
Q2-Since works were drawn the RURAL POLULATION in the early days of industrial evolution in
India, factories found much difficulty in recruitment the necessary talent.
Q3- Matching the job with the suitable applicant is naturally, a 2 WAY PROCESS.
Q4- The size of the ORGANIZATION.
Q5- The employment condition in the COMMUNITY THE ORGANIZATION IS LOCATED.
Q6- The effects of the past recruiting efforts which show the ORGANIZATION ABILITY TO
LOCATE & KEEP GOOD PERFORMING PEOPLE.
Q7- Working condition & salary & benefit packages offered by the ORGANIZATION WHICH MAY
INFLUENCE TURN-OVER & NECESSITATE FUTURE RECRUITING.
Q8- Rate of growth of ORGANIZATION.
Q9- The level of seasonality of operation & FUTURE EXPANSION & PRODUCTION PROGRAMS.
Q10- Cultural & economic LEGAL FACTOR.
Q11- The most instances the jobs are posted on NOTICE BOARD though some carry listing in the
company news paper.
Q12- Friend & relatives of present employees are also a good source from which employees may
be drawn this is done through EMPLOYEE REFERALS.
Q13- EXECUTIVE SEARCH FIRMS are firms that are looked upon as Hate Hunters Raiders &
Pirates by organization which lose human resource through their efforts.
Q14- NEPOTISM is the hiring of relatives which will be inevitable components of recruitment
programs in family honored firms.
Q15- the selection procedure is essentially a series of methods of securing pertinent information
about the APPLICANT.
Q16- the real purpose of recruitment is not to fill up a vacancy but to add a person to the staff
whom the management expect o become important in the FUTURE SCHEME of things.
Q17- Sources for recruiting should be periodically EVALUATED.
Q18- Recruiting should take into consideration ethical practices such as use of TRUTH IN
HIRING.
Q19- All public sector enterprises are required to consider candidates sponsored by the
Q20- Executives too are mostly EMPLOYMENT EXCHANGES from within.
Q21-SONS OF THE SOIL in other words, local population in the matter of employment within
the local area has, of late, assumed a complex character.
Q22- in the Indian organization where INTERVIEWS are on of the most poplar methods for
selection.
Q23- An APPLICATION BLANK is a traditional, widely accepted device for getting information
from a prospective applicant.
Q24- INTERVIEWING is probably the most widely used single method of selection.

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Q25- stress interview are deliberate attempts to create pressure to observe an applicant
performs under stress.
Q26- DEPTH INTERVIEW covers the complete life history of an applicant.
Q27- PATTERNED INTERVIEWS is the combination of direct & indirect questioning of an
applicant?
Q28- INDUCTION is concerned with the problem f introducing or orienting a new employee to
the organization.
Unit Five Training & development:-Q1- TRAINING indicates any process by which the aptitude, skill and abilities of employees to
perform specific jobs are increased.
Q2- The concern for the organizations variability that it is should adapt itself to a CHANGING
ENVIROMENT.
Q3-Broadly Speaking, training is the act of increasing the knowledge & skill of an employee for
doing a PARTICULAR JOB.
Q4-According to Douglas McGregor, there three different purposes of learning ACQUIRING
INTELLECTUAL KNOWLEDGE, ACQUIRING MANUAL SKILL, ACQUIRING PROBLEM-SOLVING
SKILL.
Q5-A new employee many require knowledge about COMPANY POLICY.
Q6-Much of managers work is SOLVING PROBLEM.
Q7-Training is a practical & vital necessity because MARKET VALUE, EANRNING POWER & JOB
SECURITY.
Q8-It moulds the employees ATTITUDE & helps them to achieve a better co-operation with the
company & a greater loyalty to it.
Q9- Over & under-emphasis on training stems largely from INADEQUATE RECOGNITION &
DETERMINATION OF TRAINING NEEDS & OBJECTIVE.
Q10-The first step of organization analysis is achieving a clear understanding of both SHORT
RUN and LONG RUN GOALS.
Q11-In analyzing the organization climate both DIRECT & INDIRECT METHOD could be used.
Q12-Analysing of the job & its various components will indicate the SKILL & TRAINING
REQUIERED TO PERFORM THE JOB AT THE REQUIERD STANDERD.
Q13- Man analysis is the third components in identifying TRAINING NEEDS
Q14-MAN ANALYSIS help to identify whether the individual employee requires training & if so
what kind of was training.
Q15-There are server administrative aspects that have to be taken into account before
launching IN HOUSE TRAINING PROGRAMM or nominating participants TO EXTERNAL
PROGRAMS.
Q16-A TRAINING BUDGET foe each internal program has to be prepared, which would be
include cost of facilities like training room, food transport, guest faculty, if any & cost of
teaching material.
Q17-Training methods are a means of attaining of the desired objective in a learning situation.
Q18-Depending on the LEARING OUTCOME & the process by which it is attained, it,is possible to
categorize the various methods into several groups.
Q19- The man advantage of ON THE JOB TRAINING is that the trainee learns on the actual
equipment in use & in the true environment of his job.
Q20-Theoretical training is given in the CLASSROOM while the practical work is conducted on
the PRODUCTION LINE.

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Q21- SIMULATION is technique which duplicates, as nearly as possible, the actual condition
encountered on a job.
Q22- The emphasis in EXPERIENTAL METHODS is on achieving through group processes &
dynamic, a better understanding of oneself and others.
Q23-Executive development is attempt at improving an individuals managerial effectiveness
through a PLANNED AND DELIBERATE PROCESS OF LEARNING.
Q24-The change in the individual must take place in those crucial areas which can be considered
as output variables (mention any 2) KNOWLEDGE CHANGE, ATTITUDE CHANGE.
Q25-The organizational aims of management development are to secure the following valuable
end- result [mention any three] IMPROVEMENT IN TECHNICAL PERFORMANCE, IMPROVEMENT
IN SUPERVISION AND LEADERSHIP AT EACH LEVEL; FACILITATING SOUND PROMOTION FROM
WITHIN POLICIES AND PRACTICES.
Q26-To get a valid measure of TRAINING EFFECTIVENESS the personnel manager should
accurately assess trainees job performance two four month after completion of training.
Q27-TheRANDOM SELECTION helps to assure the formation of groups quite similar to each
other.
Q28-Another method involved in obtaining feedback on training effectiveness is LANGITUDINAL
OR TIME SERIES analysis.
Q29-Specific TRAINING OBECTIVES should be outlined on the basis of the type of performance
required to achieve organizational goals and objectives.
Q30-The training program should be planned so that it is related to the trainees PREVIOUS
EXPERIENCES
Q31- If possible, the ACTIV PARTICIPATION of the trainee should be got in the training
programme.
Unit Six [Employee Growth ]:-Q1- Companies are designing EMPLOYEE GROWTH PROGRAM to increase employee
productivity, prevent, job burnout and obsolescence, & improve the quality of employees work
lives.
Q2- To cope in todays turbulent times, it has become increasingly improvement for both
ORGNIZATIONAL & EMPLOYEES to better redress employees career needs.
Q3-The end result for a career-resilient work force is one that has self reliant workers who re
capable of REINVENTING THEMSELVES TO KEEP UP WITH THE FAST PACE OF ORGANIZATIONAL
CHANGE.
Q4-Career management is considered to be an organizational process that involves preparing,
implementing & monitoring career plans undertaken BY AN INDIVIDUAL ALONE OR WITHIN
THE ORGANIZATIONS CAREER SYSTEM.
Q5-CARRER PLANNING is a deliberate attempt by an individuals to becomes more aware of his
or her own skill interests values opportunities, constraints and consequences.
Q6-Understanding CAREER DEVELOPMENT in an organization requires an examination of two
processes; how individuals plan and implement their own career goals [career planning], and
how organizations design & implement their career development programs [career
management].
Q7-Succession planning is usually restricted to senior level management positions & can be
INFORMAL OR FORMAL.
Q8-Formal Succession planning involves an examination of strategic [long range] plans & HR
forecasts & a review of the data on all POTENTIAL CANDIDATES.
Q9-Succession planning reduces RANDOMNESS of managerial development movements.

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Unit Seven [Performance appraisal]:Q1- PERFORMANCE EVALUATION is the HR activity by means of which the organization
determines the extent to which the employees is performing the job effectively.
Q2-The LINE MANAGERS do the evaluation of the employees.
Q3-TOP MANAGEMENT must encourage its use and use it to make reward decisions such as
promotions.
Q4-To design a system for appraising performance, it is important to first define what is meant
by the term WORK PERFORMANCE.
Q5-Performance is defined as the record of outcomes on a specific job function or activity
during A SPECIFIC TIME PERIOD.
Q6-Performance on the job as a whole would be equal to the sum [or average] of the
PERFORMANCE ON THE JOB FUNCTION OR ACTIVITIES.
Q7-In FORCED CHOICE the evaluator must choose from a set of descriptive statements about
the employee.
Q8-In the ESSAY TECHNIQUE of evolution, the evaluator is asked to describe the strong and
weak aspects of the employees behavior.
Q9-In CRITICAL INCIDENT TECHNIQUE HR specialists & operating managers prepare list of
statements of very effective & very ineffective behavior for an employee.
10-In RANKING METHOD the evaluator is asked to rate employees from highest to lowest on
some overall criterion.
Q11- In PAIRED COMPARISON approach first, the name of the person to be evaluated are
placed on separate sheets in a predetermined order, so that each person is compared to all
others to be evaluated.
Q12-The FORCED-DISTRIBUTION SYSTEM is similar to grading on a curve.
Q13-RECOGNITION satisfies human need for esteem by others and for self-esteem.
Q14- Awards may be given in the form of ARTICLES, BANQUETS HONOURING CERTAIN
INDIVIDUALS, CERTIFICATES & PLAQUES ETC.
Q15-The use of INCENTIVES assumes that people action are related to their skill & ability to
achive important longer-run goals.

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Unit- Eight [Compensation Management]:-Q1-The term WAGE is commonly used for those employees whose pay is calculated according to
the number of hours worked.
Q2-SALARIED often implies a status distinction, because those who are on salary are generally
white-collar, administrative, professional and executive employees, whereas wage-earners are
designated as hourly, non-supervisory, or blue collar.
Q3-A JOB is defined as a collection or aggregation of task, duties and responsibilities that, as a
whole is regarded as the reasonable assignment to an individual employee.
Q4-The term WAGE is commonly used for those employees whose pay is calculated according to
the number of hours worked.
Q5-The term SALARY is defined in the Oxford Dictionary as fixed periodical payment to a person
doing other than manual or mechanical work.
Q6-SUBSITAENCE THEORY is also known as Iron Law Wages.
Q7-RESIDUAL CLAIMANT THEORY was propounded by Francis A. Walker.
Q8-MINIMUM WAGE has been defined by the committee as the wage which must provide not
only for the bare sustenance of life, but for the preservation of the efficiency of the worker.
Q9-when the employee perceives an DISONANCE in the way he is paid vs. what the relevant
other is paid there is discomfort and dissatisfaction at work.
Q10-In designing pay system organization need to pay attention to all three dimension of equity
INTERNAL EQUITY, EXTERNAL EQUITY AND INDIVIDUAL EQUITY.
Q11- Compensation design of policy and guidelines is managed by a dedicated COMPENATION
AND BENEFITS TEAM.
Q12-There is no scientific way of ascertaining the impact of BENEFITS on factor such as
employee satisfaction and employee retention or productivity.
Q13- Some organizations might insist on few benefits to be CONTRIBUTORY where the
employee might need to bear part of the cost.
Q14-The challenge in managing benefits is that while it costs a lot it is often TAKEN FOR
GRANTED by the employees.
Unit Nine [Job Evolution]:-Q1-A JOB DESCRIPTION is written record of the duties, responsibilities and conditions of the job.
Q2-Job analysis is the process of GETTING INFORMATION ABOUT JOB, specifically, what the
employee does; how he gets it done, why he does it, skill, education and training required;
relationship to other jobs; physical demands and environmental condition.
Q3-Job analysis and job evaluation do not replace judgment in the ADMINISTRATION OF PAY
STRUCTURE.
Q4- JOB EVALUATION is the purpose is to work towards a solution of the many wage and salary
administrative problems which confront the industries.
Q5- NON-QUANTITATIVE JOB EVALUATION systems are the ranking system and the jobclassification system.
Q6-Quantitative job evaluation measures are THE POINT SYSTEM AND THE FACTRECOMPARISON SYSTEM.
Q7-The GRADE DESCRIPTION METHOD depends upon recognition that there are differences in
the level of duties, responsibilities and skill required for the performance of different jobs.

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Q8-In the FACTOR-COMPARISON METHOD each factor [ as in the point method] is ascribed a
money value.
Q9-In the POINT METHOD each factor is attached a number of points the number varying
according to the degree of the factor involved.
Q10- JOB EVALUATION is a logical and an objective of ranking method of ranking jobs relatively
to each other.
Q11- Information collected in a process of JOB DESCRIPTION AND ANALYSIS c n be used for
improvement of selection, training, transfer and promotion, procedures.
Q12- When there are a large proportion of incentive employees, it may be difficult to maintain a
reasonable and acceptable structure of RELATIVE EARNINGS.
Q13-Competencies are underlying characteristic of a person which results in effective and /or
SUPERIOR performance on the job.
Q14- There are two THRESHOLD COMPETENCIES .
Q15- The DIFFRENTIATING COMPETENCIES for a job sever as the reference for the candidate
hunt for the position.
Q16-The competency framework provides a common benchmarking of all jobs across the
organization on the COMPETENCY PRFILE AND COMPETENCIES REQUIRED, THE PROFICIENCY
LEVEL FOR THE COMPETENCY.
Unit- Ten employees Satisfaction and Moral:-Q1-Goods ORGANIZATIONAL MORAL is a condition in which individuals and group voluntarily
make a reasonable subordination of their personal objective of their organization.
Q2-Morale is revealed by what individuals and group say and do to show an interest in,
understanding of, and personal identification with work-team survival and success.
Q3-POOR MORALE is evinced by surliness, insubordination, a feeling of discouragement and
dislike of the job, company and associates.
Q4-The content of morale could be broadly divided into THREE groups.
Q5-Morale depends upon the relation between EXPECTATION AND REALITY.
Q6-The EMPLOYEES BACKGROUND which includes his levels of indigence and education and his
type of personality-largely determines the way in which he seeks to fulfill his needs for
belonging, esteem and self-realization.
Q7-One of the most unpredictable effects of the level of morale is its impact on employee
PRODUCTIVITY.
Q8-Various research studies have revealed that the group having the highest morale NEED NOT
ALWAYS BE THE HIGHEST IN PRODUCTIVITY.
Q9- a MORAL-BUILDING ORGANIZATION tends to utilize fully the skill, initiative, judgment, and
training of its members and through such utilization succeeds in building up these and other
qualities in everyone.
Q10-Methods of measuring moral range all the way from THE HUNCHOR GENERAL FEELING,
APPRAISAL TO REASONABLY SCIENTIFIC EFFORTS.
Q11-Some executives are INSPIRATIONAL LEADERS and capable of developing a high moral, but
few of these are trained in observing and evaluating morale standards.
Q12-THE QUESTIONNAIRE METHOD is generally used to collect employee opinions about the
factors which morale and their effect on personnel objectives.
Unit Eleven [Motivation]:-Q1-Unless individuals are motivated to make sufficient potential to perform effectively, they
may not achieve the LEVEL OF PERFORMANCE THAT IS DESIRED FROM THEM.

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Q2-When we see someone working hard at some activity, we can conclude that the individual is
driven by a desire to achieve some goal which PERCEIVES AS HAVING VAALUE TO HIM.
Q3-Drives are set up to alleviate NEEDS.
Q4-A GOAL in the motivation cycle can be defined as anything which will alleviate a need and
reduce a drive.
Q5- Maslow Views an individuals motivation as a predetermined order of needs which HE
STRIVES TO SATISFY.
Q6-professor Douglas McGregor presented two opposite sets of assumptions about employees;
and about management views about the nature of man at work.
Q7- McGregor noted that managers throughout history assume, and just take it for granted, that
workers are naturally lazy, hate work try to avoid it, care not at all about an organizations goals
and must be FORCED TO WORK AGAINST THEIR WILL BY THREAT AND FEAR.
Q8-There are no ready-made remedies for bringing about an effective motivation but certain
factor as analyzed by research scientist, could be used as GUIDELINES.
Q9-A persons psychological needs affect his SELF-IMAGE.
Q10-Even if the employees have a high potential for self-motivation, it is the duty of THE
MANAGEMENT to provide the climate in which it will flourish.
Q11-Every employee need motivation, however, all people do not react in exactly the same way
to the same STIMULI.
Q12-The last stage of motivation is to follow-up the result of the SELFISHNESS.
Unit- Twelve [Employee misconduct and Disciplinary Procedure]:-Q1-DISCIPLINE is the observance of principles, rules or any other laid down procedures,
practices, written or otherwise in the organization by the employees or group of employees, to
whom these apply for smooth and effective functioning of the organization.
Q2-According to CALHOON RICHARD.D. Discipline may be considered as a force that prompts
individual or group to observe the rule, regulation and procedures which are deemed to be
necessary for the effective function.
Q3-Condition contributing to POOR DISCIPLINE can are caused by weaknesses within the
organizational structure or by external factor.
Q4-As far as possible, all the rules should be farmed in co-operation collaboration with the
REPRESENTETIVES OF EMPLOYEES.
Q5-RULES should be uniformly enforced if they are to be effective.
Q6-A disciplinary policy should have as its objective the prevention of any infringement rather
the the simple administration of penalties, however just IT SHOULD BE PREVENTIVE RATHER
THAN PUNITIVE.
Q7-The LINE EXECUTIVE should issue only verbal and written warning.
Q8-When finalizing the rules EVERYONE should be given the opportunity to express freely his
views thereon.
Q9-All DEFAULTERS should be treated alike, depending on the nature of their offence, identical
punishment should be awarded for identical offences, irrespective of the position or seniority of
the employee.
Q10-The supervisor must know his or her personnel in determining how to GIVE A REPRIMAND.
Q11-Since a written reprimand is more permanent than AN ORAL ONE it is considered a more
server penalty.
Q12-The use of DEMOTION as a penalty is highly questionable.
Q13-ACCURATE STATEMENT OF THE PROBLEM is the first step is to ascertain the problem.
Q14-Before any action is taken in a case, it is essential to GATHER ALL THE FACTS ABOUT IT.

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Q15-When a decision has been taken to impose a penalty, the punishment to be awarded
should be such as will PREVENT ARECURRENCE OF THE OFFENCE.
Unit Thirteen [Grievance and Grievance Procedure]:-Q1-The broadest interpretation of the term would include any discontent or dissatisfaction that
affects ORGANIZATIONAL PERFORMANCE.
Q2-In the language of the labour management relation, a grievance is a complaint formally
presented by the EMPLOYEE OR EMPLOYEES TO THE MANAGEMENT
Q3-The NATIONAL COMMISSION OF LAOUR states that complaints affecting one or more
individual workers in respect of their wage payments, overtime, leave transfer, promotion,
seniority, work assignments, and discharge would constitute grievances.
Q4-It is important from the point of view of the manager to know the ROOT CAUSE of the
employees dissatisfaction.
Q5-Some of the causes for grievances in organization are PROMOTIONS.
Q6-The role of the AMENITIES too were partly responsible for ensuring that the employees
views were heard and adequately responded to.
Q7-The clearest opportunity for settlement is found at the FIRST SATGE before the grievance
has left the jurdiction of the manager.
Q8-In gathering facts, one quickly becomes aware of the importance of KEEPING PROPER
RECORDS such as performance rating, attending records and suggestion.
Q9-In analysing and evaluating a grievance the manager must also be aware that tha decision
may constitute a PRECEDENT WITHIN THE DEPARTMENT AS WELL AS THE COMPANY.
Q10-A GRIEVANCE MACHINERY is usually thought of in connection with a company that deals
with a labour onion.
Q11-the details of the grievance procedure vary industry and from trade union to trade union
because of the variation in THE SIZE OF ORGANIZATION, TRADE UNION STRENGTH , THE
MANAGEMENT PHILOSOPHY, THE COMPANY TRADITION, INDUSTRIAL PRACTICES AND THE
COST FACTOR.
Q12-an employees conception of his problem(s) may be quite BIASED.
Q13-a grievance should be dealt within the limits of THE FIRST LINE MANAGER.
Q14- A GRIEVANCE MACHINERY is usually thought of in connection with a company that deals
with a labour union.
Q15- A ARBITRATOR is an outside third party who is brought in to settle a dispute, and he or she
has the authority to make a decision.
Unit Fourteen [Groups & Group Dynamics]:-Q1- NEWCOMB feels that a group consists of two or more persons who share norms about
certain things with one another & whose social roles are closely interlocking.
Q2- People who interact with one another & who share some common ideology are usually
ATRACTED TO ONE ANOTHER.
Q3- Through group membership, a person can gain status & thereby enhance his sense of SELFESTEEM .
Q4- The end goal of the managers organizing responsibility is to create formal work groups that
are necessary to achieve the ORGANISATIONS GOAL.
Q5- INFORMAL GROUPS exist because the formal groups established within the organization
frequently fail to safety human needs to a sufficient degree & also because the organizational
structure rarely anticipates everything that must be done of the organization is to meet all of its
objectives.

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Q6- Informal work groups increase the employees SENCE OF SECURITY & BELONGINGS & often
enable the work to be done more effectively.
Q7- INFORMAL GROUPS insulate the individual from a hostile work environment.
Q8- THE ADULT EGO STATE is based upon reason & seeking & processing information & on
factual discussion.
Q9- Persons interacting with a PARENT EGO are protective, dogmatic, evaluating & righteous.
Q10- COHESIVENESS is the degree of attraction that the group has for each of its members.
Q11- Even is a group of people do not formally sit together to thrash out a decision, SEVERAL
PEOPLE USUALLY PROVIDE INPUT TO ANY MAJOR DECISION.
Q12- Group decision-making is helpful in gaining ACCEPTANCE & COMMITMENT.
Q13- GROUP DECISIONS take longer than individual decisions & sometimes lead to compromise
decision of little value.
Unit FIFTEEN [LEADERSHIP]:-Q1- A leader is concerned both with the task of the organization, as well as the PEOPLE WITH
WHOM HE IS WORKING.
Q2-A leader should have the skill of INSPIRING CONFIDENCE in his followers and to manage
differences.
Q3-Some managers are self-oriented, some of them are people-oriented and some of them
TASK-ORIENTD.
Q4-Early leadership theories focused on what QUALITIES distinguished between leadership and
followers.
Q5-GREAT MAN THEORIES assume that capacity for leadership is inherent that great leaders are
born not made.
Q6-SITUATIONAL LEADERSHIP model suggests that effective of leaders to very their style with
the [1]- Readiness of followers, [2]- Ability and [3]-Willingness.
Q7-TRANSFORMATIONAL LEADERSHIP is change agents who energize and direct employees to
a new set of corporate values and behaviors.
Q8-Research suggests that charismatic leaders create DEVELOPMENT followers, whereas
transformational leaders support follower EMPOWERMENT.
Q9- The
Bureaucrat
Who stick to routine, pleases his superors, avoid, subordinates and he is contemptuous the.
Q10- The Autocrat He is directive and expects obedience from followers [Do as I say-Not as I do] Hence,
Subordinates do not like him.
Q11- The
Diplomat
He is an opportunist who exploits subordinates. Hence, he is not trusted by his subordinates.
[He is interested not in the flock but in the fleece].
Q12-The Expert
He identifies himself with his subordinates even at the risk of incurring displeasure of his
Superiors and subordinates at times. However, he is generally liked by his followers.
Q13-The Quarter
Back
He is an over-specialized man. He is self-centre and interested in his own narrow field.
He treats his subordinates only as follow-workers without any feeling. He always finds himse
Q14-If there is no FOLLOWER there is no leader.
Q15-Basicaly a leader should have the skill of INSPIRING CONFIDANCE in his followers & to
manage differences.

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Q16-GREAT MAN THEORIES assume that the capacity for leadership is inherent that great
leader are born, not made.
Q17-TRAIT THEORY assumes that people inherit certain qualities and trait that make them
better suited to leadership.
Q18-CONTINGENCY THEORIES OF LEADERSHIP focus on particular variables related to the
environment that might determine which particular style of leadership is best suited for the
situation.
Q19-The managerial Grid Model [1964] is a behavior leadership model developed by ROBERT
BLAKE AND JANE MOUTON.

Q20-A leader use a DELEGATE & DISAPEAR management style, when they are not committed to
either task accomplishment or maintenance; they essentially allow their team to do whatever it
wishes and prefer to detach themselves from the team process.
Q21-With a high concern for production and a low concern for people, managers using this style
find employees needs unimportant; they provide their employees MONEY & EXPECT
PERFORMSNCE BACK.
Q22-The STATUS-QUO LEADER use this style to try to balance between company goals and
workers needs.
Q23-Grid theory makes behaviors as tangible and objective as any other CORPORATE
COMMODITY.

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