Question 1
Which of the following statements correctly explains "delegation"?
✅ Correct Answer: Transfer of authority and responsibility while accountability remains with manager
Explanation: Delegation involves assigning authority and responsibility to subordinates, but the manager remains accountable for final outcomes.
Question 2
Which function of management ensures that actual activities conform to planned activities?
✅ Correct Answer: Controlling
Explanation: Controlling compares actual performance with standards and takes corrective actions if deviations occur.
Question 3
"One head and one plan for a group of activities having the same objective." Which principle is referred to here?
✅ Correct Answer: Unity of Direction
Explanation: Unity of direction ensures all activities with similar objectives are guided by one plan and one manager.
Question 4
Which of the following is NOT a feature of planning?
✅ Correct Answer: It eliminates risk completely
Explanation: Planning reduces uncertainty but cannot eliminate all risks due to changing business conditions.
Question 5
Which level of management is mainly responsible for maintaining contact with workers?
✅ Correct Answer: Supervisory management
Explanation: Supervisory or operational management directly interacts with workers and oversees daily activities.
Question 6
A company faced repeated machine breakdowns because maintenance schedules were not followed properly. Which management function failed MOST likely?
✅ Correct Answer: Controlling
Explanation: Controlling ensures actual performance matches standards such as maintenance schedules and operational targets.
Question 7
The marketing manager of a company encouraged employees to share innovative advertising ideas without fear of criticism. Which principle of management is being promoted?
✅ Correct Answer: Initiative
Explanation: Fayol's principle of initiative encourages employees to think creatively and contribute ideas.
Question 8
A company decided to recruit employees internally before inviting external candidates. Which source of recruitment is being used?
✅ Correct Answer: Internal recruitment
Explanation: Internal recruitment fills vacancies using existing employees through promotions or transfers.
Question 9
"Workers should mentally transform their attitude from competition to cooperation." Which concept of Taylor is highlighted?
✅ Correct Answer: Mental revolution
Explanation: Mental revolution focuses on changing the mindset of both workers and management toward cooperation.
Question 10
A customer purchased a medicine without proper expiry date details. Which consumer right is MOST directly affected?
✅ Correct Answer: Right to be informed
Explanation: Consumers have the right to receive complete information regarding products before purchase.
Question 11
Assertion (A): Organising helps in avoiding duplication of work.
Reason (R): Organising clearly defines jobs and authority relationships.
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Organising assigns responsibilities clearly, reducing confusion and overlapping activities.
Question 12
Assertion (A): Informal communication follows official chain of command.
Reason (R): Informal communication develops through social interactions.
✅ Correct Answer: A is false, but R is true.
Explanation: Informal communication does not follow official channels; it develops naturally among employees.
Question 13
Read the following case carefully:
A company manufacturing packaged snacks observed declining sales due to poor packaging quality. The management introduced quality checks at every production stage and compared actual defects with standards regularly.
Which management function is highlighted MOST prominently?
✅ Correct Answer: Controlling
Explanation: The company is measuring performance, identifying deviations, and taking corrective actions through controlling.
Question 14
Read the passage carefully:
A garment company reduced plastic packaging, provided health insurance to employees, and sponsored skill-development programs for local youth.
Which objective of management is primarily reflected here?
✅ Correct Answer: Social objective
Explanation: Social objectives focus on employee welfare, community development, and environmental responsibility.
Question 15
Which of the following situations BEST reflects "centralisation"?
✅ Correct Answer: Top management retains major decision-making authority
Explanation: Centralisation refers to concentration of authority at higher levels of management.
Question 16
A company appointed four specialists to supervise workers related to quality, speed, maintenance, and discipline separately. Which concept is used here?
✅ Correct Answer: Functional foremanship
Explanation: Taylor's functional foremanship divides supervision among specialists for improved efficiency. (Tricky Question: Students often confuse it with unity of command.)
Question 17
A business enterprise achieved high sales but employees frequently resigned due to excessive workload and poor work-life balance. Which objective of management is being neglected?
✅ Correct Answer: Personal objective
Explanation: Personal objectives relate to employee satisfaction, growth, and welfare within the organisation.
Question 18
Which of the following is the BEST example of "planning premises"?
✅ Correct Answer: Assumptions regarding future market demand
Explanation: Planning premises are assumptions and forecasts about future conditions on which plans are based. (High-probability tricky concept.)
Question 19
A manager noticed that workers slowed down intentionally because efficient workers received no extra rewards. Which scientific management technique can solve this issue?
✅ Correct Answer: Differential piece wage system
Explanation: Taylor suggested rewarding efficient workers with higher wages to encourage productivity and remove "soldiering."
Question 20
Which statement BEST differentiates "delegation" from "decentralisation"?
✅ Correct Answer: Delegation refers to assigning authority to subordinates, whereas decentralisation refers to systematic distribution of authority at all levels.
Explanation: Delegation occurs between superior and subordinate, while decentralisation spreads authority throughout the organisation. (High-probability conceptual trap.)
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