1.

The Practice of Management written by

__________.
5. Management is the art of getting things done
A. Peter F. Drucker. through and with an informally
organized_____________.
B. Terry.
A. Harold Koontz.
C. Louis Allan.
B. Terry.
D. Henry Fayol.
C. Louis Allan.
ANSWER: A
D. Henry Fayol.
2. Management is an organ, organs can be
described and defined only through their ANSWER: A
functions. This definition
6. Management is the art and science of
was given by ____________. decision making and leadership _____.
A. Peter F. Drucker. A. Harold Koontz.
B. Terry. B. Donald J. Clough.
C. Louis Allan. C. Louis Allan.
D. Henry Fayol. D. Terry.
ANSWER: A ANSWER: B
3. Management is what a manger 7. Luther Gullik classifies the function of
does_____________. management as ___________.
A. Peter F. Drucker. A. POSDCORB.
B. Terry. B. POSTCARD.
C. Louis Allan. C. POSDCORB.
D. Henry Fayol. D. POSDORBC.
ANSWER: C ANSWER: C
4. To manage is to forecast and plan, to 8. Father of Administrative
organize, to compound, to co-ordinate and to management______________.
control. This definition
A. Mary Parkett.
was given by____________.
B. Lillian Gilbert.
A. Peter F. Drucker.
C. Henry Fayol.
B. Henry Fayol.
D. Elton Mayo.
C. Louis Allan.
ANSWER: C
D. Terry.
9. Pioneer of Human Relations is ___________.
ANSWER: B
A. Mary Parkett.
B. Lillian Gilbert. A. Industrialist.
C. Henry Fayol. B. Writer.
D. Elton Mayo. C. Manager.
ANSWER: D D. Actor.
10. Henry Fayol laid down_____________. ANSWER: A
A. 12 principles. 15. General and Industrial Management was
written by_________________.
B. 13 principles.
A. Harold Koontz.
C. 14 principles.
B. Terry.
D. 15 principles.
C. Louis Allan.
ANSWER: C
D. Hendry Fayol.
11. Espirit de corps means______________.
ANSWER: D
A. union is strength.
16. Every subordinate should receive orders
B. service is our motto. from and be accountable to only one superior is
C. buyer beware. __________.

D. product is our strength. A. Unity of direction.

ANSWER: A B. Unity of command.

12. F.W. Taylor is associated C. Centralization.

with________________. D. Scalar chain.
A. Scientific Management. ANSWER: B
B. Future management. 17. Control system of an organisation has no
C. Modern management. influence over the _____________.

D. Principles of management. A. internal environment.

ANSWER: A B. external environment.

13. Management is________________. C. customers.

A. an art. D. government.

B. a science. ANSWER: B

C. an art and a science. 18. The chain of command from the highest
authority to the lowest level in the organization
D. an art not science. is _________.
ANSWER: C A. Unity of direction.
14. Henry Fayol was a B. Unity of command.
French__________________.
C. Centralization. B. organizing.
D. Scalar chain. C. controlling.
ANSWER: D D. coordination.
19. Allotment of work to each worker on the ANSWER: A
basis of the capacity of an average worker
23. Planning lays down the overall objective,
functioning in the
strategies and polices for the total enterprise is
normal working condition is _____________. ___________.
A. social task planning. A. corporate planning.
B. scientific task planning. B. divisions planning.
C. not a planning. C. unit planning.
D. scientific organizing. D. department planning.
ANSWER: B ANSWER: A
20. Study of the movements of both the 24. Strategic planning is ___________.
workers and the machine to eliminate wasteful
movement is A. long term planning.
B. medium term planning.
_____________.
A. fatigue study. C. short term planning.
D. annual planning.
B. time study.
C. motion study. ANSWER: A
25. The assumptions about future derived from
D. work-study.
forecasting and used in planning are known as
ANSWER: C
_____________.
21. A study relating to the fixing of the working
hours with rest periods to recoup the energy A. planning premises.
while performing B. freehold premises.
in a job is called ____________. C. business premises.
A. fatigue study. D. corporate premises.
B. time study. ANSWER: A
C. motion study. 26. Goals, aims, purposes, missions and target is
D. work-study. also known as ____________.
A. objective.
ANSWER: A
22. The first and foremost function of B. strategies.
management is ___________. C. policies.
A. planning. D. rules.
ANSWER: A ANSWER: B
27. Contingent plan to meet environmental 31. A rigid plan, no scope for discretion
pressures is ______________. __________.
A. objective. A. rule.
B. strategies. B. schedules.
C. policies. C. procedures.
D. rules. D. budgets.
ANSWER: B ANSWER: A
28. A chronological sequence of steps to be 32. Specifying the manner of executing policy is
undertaken to enforce a policy and to attain an known as ________________.
objective is known
A. objective.
as ___________.
B. schedules.
A. objective.
C. procedures.
B. strategies.
D. budgets.
C. procedures.
ANSWER: C
D. rules.
33. ____________ is the harmonizing or
ANSWER: C synchronizing of individual efforts with the
purpose of achieving
29. A statement of expected results expressed
in numerical terms for a definite period of time group goals.
in the future is
A. coordination.
known as ____________.
B. control.
A. objective.
C. decision making.
B. strategies.
D. delegation.
C. procedures.
ANSWER: A
D. budgets.
34. __________ is an obligation to perform
ANSWER: D certain functions and achieve certain results.
30. The process of establishing a time sequence A. responsibility.
for the work is known as __________.
B. decentralisation.
A. objective.
C. centralisation.
B. schedules.
D. delegation.
C. procedures.
ANSWER: A
D. budgets.
35. Plan that establishes a required method of A. organization.
handling future activities is called _________.
B. business.
A. rules.
C. management.
B. procedures.
D. department.
C. policy.
ANSWER: A
D. methods.
40. A system of co-operative activities of two or
ANSWER: B more persons is called __________.
36. Set of clear instruction in a clear and logical A. department.
sequence to perform a particular task______.
B. co-ordination.
A. rules.
C. organization.
B. programme.
D. control.
C. policy.
ANSWER: C
D. methods.
41. Supply of human and material resources
ANSWER: B and helps to achieve the objective of business
is______________.
37. Employees will be promoted on the basis of
seniority is an example of __________. A. planning.
A. rules. B. organisaiton.
B. procedures. C. management.
C. policy. D. control.
D. methods. ANSWER: B
ANSWER: C 42. Formal authority flows from upwards to
downwards in___________.
38. Steps to be taken for selecting salespersons
is an example of ___________. A. formal organization.
A. rules. B. informal organization.
B. procedures. C. business or organisation.
C. policy. D. strategic organization.
D. methods. ANSWER: A
ANSWER: B 43. Informal authority flows upwards to
downwards or horizontally in _____________.
39. An identified group of people contributing
their efforts towards the attainment of goals is A. formal organization.
called an
B. informal organization.
_____________.
C. business or organisation.
D. strategic organization. A. formal organization.
ANSWER: B B. informal organization.
44. Rules, duties and responsibilities or workers C. business or organisation.
are given in writing in______________.
D. strategic organization.
A. formal organization.
ANSWER: A
B. informal organization.
49. Which type of organization gives
C. business or organisation. importance to people and their relationships?
D. strategic organization. A. formal organization.
ANSWER: A B. informal organization.
45. Which is created for technological purpose? C. business or organisation.
A. formal organization. D. strategic organization.
B. informal organization. ANSWER: B
C. business or organisation. 50. Which organisational relationship gives a
greater job satisfaction and results in maximum
D. strategic organization. production?
ANSWER: A A. formal organization.
46. Which arises from mans quest for social B. informal organization.
satisfaction?
C. business or organisation.
A. formal organization.
D. strategic organization
B. informal organization.
Which type of organization has no place in the
C. business or organisation. organization chart?
D. strategic organization. A. formal organization.
ANSWER: B B. informal organization.
47. Which type of organization is permanent C. business or organisation.
and stable?
D. strategic organization.
A. formal organization.
ANSWER: B
B. informal organization.
C. business or organisation.
D. strategic organization.
ANSWER: A
48. Which type of organization gives
importance to terms of authority and
functions?
52. Decision making is the selection based on A. programmed decision.
some criteria from two or more possible
alternatives is defined B. non-programmed decision.
C. major decision.
by___________.
A. Farland. D. minor decision.
ANSWER: A
B. Mac Donald.
C. Terry. 57. The decision taken by lower-level
management is a _____________.
D. M.C. Nites.
A. programmed decision.
ANSWER: C
B. non-programmed decision.
53. The selection of best alternative from many
alternatives is known as__________. C. major decision.
D. minor decision.
A. selection.
B. decision-making. ANSWER: A
58. The decision deal with novel and non-
C. organizing.
repetitive problems is___________.
D. budgeting.
A. programmed decision.
ANSWER: B
B. non-programmed decision.
54. Deal with routing and repetitive problems is
C. individual decision.
a __________.
A. programmed decision. D. non-economic decision.
ANSWER: A
B. non-programmed decision.
C. major decision. 59. Opening of new branch is an example of
___________.
D. minor decision.
A. programmed decision.
ANSWER: A
B. non-programmed decision.
55. Placing a purchase order is an example of
________. C. individual decision.
D. non-economic decision.
A. programmed decision.
B. non-programmed decision. ANSWER: B
60. The decision taken by high level of
C. major decision.
management is _______________.
D. decision.
A. programmed decision.
ANSWER: A
B. non-programmed decision.
56. The decision which is taken within the
C. individual decision.
purview of the policy of the organization
is_______. D. non-economic decision.
ANSWER: B B. crisis decision.
61. Non-programmed decision is also called C. non-economic decision.
_____________.
D. problem decision.
A. routine decisions.
ANSWER: C
B. structured decisions.
66. The decision which is implemented within
C. strategic decisions. the concerned department is known as ___.
D. operative decisions. A. economic decision.
ANSWER: C B. departmental decision.
62. Programmed decision is also known as C. non-economic decision.
_____________.
D. problem decision.
A. routine decisions.
ANSWER: B
B. structured decisions.
67. Decision taken by a committee formed by
C. strategic decisions. the top management for specific purpose is
____.
D. operative decisions.
A. group decision.
ANSWER: D
B. organisational decision.
63. The decision which has long term impact on
business is _____. C. personal decision.
A. programmed decision. D. operative decision.
B. non-programmed decision. ANSWER: A
C. individual decision. 68. Crisis decision is also known as ____.
D. non-economic decision. A. group decision.
ANSWER: B B. major decision.
64. The decision which relates to day-to-day C. minor decision.
operation of an organization is known as ____.
D. spot decision.
A. major decision.
ANSWER: D
B. organisational decision.
69. A decision taken to meet unexpected
C. personal decision. situations is known as ____.
D. operative decision. A. economic decision.
ANSWER: D B. crisis decision.
65. The decision which does not incur any C. non-economic decision.
expenses is known as ____.
D. problem decision.
A. economic decision.
ANSWER: B
 74. The process whereby a manager shares his
work and authority with his subordinates
70. The authority flows from top to bottom is________.
through the structure of an organization is
____. A. Decentralisation
A. The acceptance of authority theory. B. Responsibility.
B. The formal authority theory. C. Delegation.
C. The competence theory. D. decision making.
D. The organisation theory. ANSWER: C
ANSWER: B 75. The subordinate is granted authority to
perform all the functions in his department or
71. Which theory is also called traditional division is ____.
authority theory?
A. general delegation.
A. The acceptance of authority theory.
B. formal delegation.
B. The formal authority theory.
C. specific delegation.
C. The competence theory.
D. informal delegation.
D. The organisation theory.
ANSWER: A
ANSWER: B
76. The orders, instructions or direction are
72. If the subordinates do not accept the delegated to a particular person specifically is
command of their superior, then the superior known as ____.
cannot be said to have
A. general delegation.
any authority over them is given in.
B. formal delegation.
A. The acceptance of authority theory.
C. specific delegation.
B. The formal authority theory.
D. informal delegation.
C. The competence theory.
ANSWER: C
D. The organisation theory.
77. When authority is delegated as per the
ANSWER: A organisation structure it is called ____.
73. The type of authority is invested with the A. formal delegation.
persons by virtue of the office held by them is
____. B. informal delegation.
A. The acceptance of authority theory. C. general delegation.
B. The formal authority theory. D. specific delegation.
C. The competence theory. ANSWER: A
D. The organisation theory.
ANSWER: C
78. When an individual or a group agrees to B. control process.
work under the direction of an informal leader
is called _____. C. planning process.
D. staffing process.
A. formal delegation.
B. informal delegation. ANSWER: A
83. Banks, insurance companies and distribution
C. general delegation.
agencies are examples of ____.
D. specific delegation.
A. departmentation by function.
ANSWER: B
B. departmentation by products.
79. Delegation made by written orders and
C. departmentation by territory.
instruction is known as ____.
A. oral delegation. D. departmentation by customers.
ANSWER: C
B. written delegation.
C. downward delegation. 84. Departmentation on the basis of the
production process is called ____.
D. sideward delegation.
A. equipment department.
ANSWER: B
B. departmentation by products.
80. Departmentation on the basis of activities
grouped according to the type of customer is C. departmentation by territory.
_____. D. departmentation by customers.
A. departmentation by function. ANSWER: A
B. departmentation by products. 85. The term span of management is also
C. departmentation by territory. known as ____.
A. span of business.
D. departmentation by customers.
ANSWER: D B. span of control.
C. span of activity.
81. The process of dividing the large monolithic
functional organization into small and flexible D. span of planning.
administrative units is called ____.
ANSWER: B
A. staffing.
86. The number of subordinates that report
B. delegation. directly to a single supervisor is ___.
C. departmentation. A. span of control.
D. control. B. span of activity.
ANSWER: C C. span of business.
82. Departmentation is a part of the ___. D. span of organizing.
A. organisation process. ANSWER: A
 91. Wages, salaries, bonus, vacation pay,
insurance are examples of ____.
87. Few subordinates report directly to a
manager is ____. A. financial motivation.
A. wide span of management. B. non-financial motivation.
B. large span of management. C. extrinsic motivation.
C. small span of management. D. intrinsic motivation.
D. narrow span of management. ANSWER: A
ANSWER: D 92. Participation, recognition and power are
some of the examples of ___.
88. Large number of subordinates report to a
manager is ____. A. financial motivation.
A. wide span of management. B. non-financial motivation.
B. large span of management. C. extrinsic motivation.
C. small span of management. D. intrinsic motivation.
D. narrow span of management. ANSWER: B
ANSWER: A 93. ____ means that each section has its own
workers to perform activities within the
89. Making assignments, issuing orders and department.
instructions, providing guidance and inspiration
to subordinates A. centralisation.
for the achievement of organizational objective B. departmentation.
is called ___.
C. decentralisation.
A. Planning.
D. delegation.
B. Organizing.
ANSWER: C
C. Directing.
94. According to Maslow, self-actualization
D. controlling. needs is a ____.
ANSWER: C A. high level needs.
90. Motivation based on force of fear is called B. medium level needs.
____.
C. lower level needs.
A. negative motivation.
D. psychological needs.
B. positive motivation.
ANSWER: A
C. extrinsic motivation.
95. Expectancy motivation theory is given by
D. intrinsic motivation ____.
ANSWER: A A. Vroom.
B. Maslow. 100. The leader makes decisions in consultation
with his followers is ____.
C. Herzberg.
A. autocratic style.
D. Mc Gregor.
B. liberal leader.
ANSWER: A
C. democratic leader.
96. Management By Objectives was introduced
by _____. D. institutional leader.
A. Taylor. ANSWER: C
B. Elton Mayo. Complete freedom for group or individual
decision, with a minimum of leader
C. Peter Drucker. participation is under ____.
D. Maslow. A. autocratic style.
ANSWER: C B. democratic style.
97. Leadership behaviour is influenced by C. free-rein style.
certain qualities of a person is ____.
D. creative style.
A. Followers theory.
ANSWER: C
B. Trait theory.
102. A leader exercises his power over his
C. Situational theory. followers because of his position held in the.
D. Managerial grid. organizational

ANSWER: B hierarchy is ____.

98. The leadership theory study leaders A. autocratic leader.

behaviour is _____. B. intellectual leader.
A. Flowers theory. C. liberal leader.
B. Trait theory. D. institutional leader.
C. Behavioural theory. ANSWER: D
D. Managerial grid. 103. The leader who excels as a leader because
ANSWER: C of his superior knowledge is ___-.

99. All decision-making power is centralized in A. autocratic leader.

the leader is under ____. B. intellectual leader.
A. autocratic style. C. liberal leader.
B. liberal leader. D. institutional leader.
C. democratic leader. ANSWER: B
D. institutional leader.
ANSWER: A
104. A leader who serves as the head of the B. free-rein style.
family and treats his followers like his family
members is ____. C. autocratic style.
D. democratic style.
A. paternalistic leader.
B. intellectual leader. ANSWER: B
109. The last function of management is____.
C. liberal leader.
D. institutional leader. A. Planning.
B. Organizing.
ANSWER: A
105. A leader motivates his followers to work C. Controlling.
hard by offering them rewards is ____. D. Staffing.
A. positive style. ANSWER: C
B. negative style. 110. Fixation of standards, measurement of
C. autocratic style. performance, comparison, and correction of
deviation are the steps in________.
D. democratic style.
A. planning.
ANSWER: C
B. organizing.
106. A leader forces his followers to work had
and penalizes them is ____. C. Staffing.
D. control process.
A. positive style.
B. negative style. ANSWER: D
111. Planning is looking ahead and control
C. autocratic style.
is_________.
D. democratic style.
A. looking back.
ANSWER: B
B. looking front.
107. Leader acts more as bosses then
C. looking sideward.
leadership style is ____.
A. positive style. D. looking down.
ANSWER: A
B. negative style.
C. autocratic style. 112. Control exercised while the activity is in
progress is__________.
D. democratic style.
A. concurrent control.
ANSWER: B
B. feedforward control.
108. The leader acts as a liaison officer between
the employees and the outside world is ____. C. feedback control.
D. preserving control.
A. positive style.
ANSWER: A
 B. Receiver.
113. Exchange of ideas, opinions, information C. Encoding.
etc. between two or more persons is________.
D. decoding.
A. Planning.
ANSWER: C
B. organizing.
118. The person who receives the message is
C. Communication. called _________.
D. Staffing. A. sender.
ANSWER: C B. receiver.
114. Communication is a _______. C. encoding.
A. one-way process. D. decoding.
B. two-way process. ANSWER: B
C. three-way process. 119. Converting symbols, signs or pictures into
meaning is known as _______.
D. four-way process.
A. Sender.
ANSWER: B
B. receiver.
115. The person who sends a message is known
as________. C. encoding.
A. Sender. D. decoding.
B. Receiver. ANSWER: D
C. Messenger. 120. communication that flow from superior to
subordinates is________.
D. Communicator.
A. downward communication.
ANSWER: A
B. upward communication.
116. The act of making ones ideas and opinions
known to others is said by_______. C. horizontal communication.
A. Meyer. D. informal communication.
B. Brown. ANSWER: A
C. Newman.
D. Keith Davis. 121. Informal communication is commonly
known as ________.
ANSWER: A
A. downward communication.
117. The act of translating the message into
words, pictures, symbols, signs or some other B. upward communication.
form is known as _________.
C. horizontal communication.
A. Sender.
D. Grapevine.
ANSWER: D C. gestural communication.
122. Communication of policies, procedures and D. sideward communication.
programmes is example of_________.
ANSWER: A
A. downward communication.
127. Lectures, group discussions, interviews,
B. upward communication. social gathering are example of _____.
C. horizontal communication. A. oral communication.
D. informal communication. B. written communication.
ANSWER: A C. gestural communication.
123. Reports, suggestions, appeals, grievances, D. sideward communication.
etc is example of_________.
ANSWER: A
A. downward communication.
128. Letters, circulars, memos, bulletin,
B. upward communication. manuals, reports are example of________.
C. horizontal communication. A. oral communication.
D. informal communication. B. written communication.
ANSWER: B C. gestural communication.
124. Inter-departmental committee meeting is D. sideward communication.
an example of__________.
ANSWER: B
A. downward communication.
129. The problems in communication channels
B. upward communication. is known as______.
C. horizontal communication. A. organizational barriers.
D. informal communication. B. mechanical barriers.
ANSWER: C C. personal barriers.
125. Rumours and gossips are_________. D. semantic barriers.
A. downward communication. ANSWER: B
B. upward communication. 130. The integration of objectives and activities
of an organization is________.
C. horizontal communication.
A. control.
D. informal communication.
B. co-ordination.
ANSWER: D
C. Planning.
126. Exchange of messages through spoken
words is_________. D. organizing.
A. oral communication. ANSWER: B
B. written communication.
131. Co-ordination between the activities of C. overall plan.
various departments and individuals working
within the organization is known as _________. D. Budgets.
ANSWER: A
A. vertical co-ordination.
B. external co-ordination. 136. When the supervisor commands
subordinates and has close supervision is called
C. internal co-ordination. ______.
D. horizontal co-ordination. A. free-rein.
ANSWER: C B. autocratic.
132. Scalar chain means ________. C. consultative.
A. hierarchy levels. D. democratic.
B. chain of command. ANSWER: B
C. delegation of authority. 137. Praise, recognition and power are_______.
D. span of control. A. intrinsic motivation.
ANSWER: A B. extrinsic motivation.
133. The oldest type of C. positive motivation.
organization__________.
D. negative motivation.
A. functional organization.
ANSWER: A
B. line organization.
138. X and Y theory was introduced by_______.
C. matrix organization.
A. Mc gregor.
D. committee organization.
B. Peter drucker.
ANSWER: B
C. Henry fayol.
134. The organization which was devised by FW
Taylor was ________. D. FW taylor.
ANSWER: A
A. functional organization.
B. matrix organisation. 139. Time-event network is _________.
A. PERT.
C. committee organization.
D. line and staff organization. B. CPM.
C. MIS.
ANSWER: A
135. Devices which shows the organizational D. statistical reports.
relationships________. ANSWER: A
A. organizational charts. 140. Management is ____________.
B. scalar chain. A. art.
B. science. D. controlling.
C. art and science. ANSWER: A
D. humanities. 145. The decisions which are frequent and
repetitive in nature are called as________.
ANSWER: C
A. non programmed decisions.
141. Decision making helps in the smooth
function of the___________. B. programmed decisions.
A. business. C. major decisions.
B. staffing. D. operative decisions.
C. organization. ANSWER: B
D. planning. 146. A decision which is taken to meet
unexpected situation__________.
ANSWER: A
A. problem decision.
142. The transmission of thoughts from person
to another is_____________. B. certainty decisions.
A. communication. C. crisis decision.
B. controlling. D. organizational decision.
C. consultative. ANSWER: C
D. organizing. 147. The right of a person to give instructions to
his subordinates is known as_________.
ANSWER: A
A. responsibility.
143. The study relating to the movement of a
machine operator and his machine while B. authority.
performing the job is
C. accountability.
called__________.
D. line authority.
A. time study.
ANSWER: B
B. work study.
148. Elements of delegation_________.
C. motion study.
A. responsibility, authority, accountability.
D. fatigue study.
B. authority, delegation, accountability.
ANSWER: C
C. responsibility, decentralization,
144. Selecting a best course of action among centralization.
the alternatives is called as_________.
D. controlling, responsibility, authority.
A. decision making.
ANSWER: A
B. planning.
149. The extent to which power and authority
C. organizing. are retained at the top is called as________.
A. centralization.
B. decentralization.
C. responsibility.
D. accountability.
ANSWER: A
150. _____ deals with appointing people and
placing them at the appropriate jobs.
A. Human resources.
B. Recruitment.
C. Staffing.
D. Placement.
ANSWER: C