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MBA I Semester I

Principles of Management - Sample Paper

Time: Total Marks: 70

[Note: The Question Paper has five Questions of 14 marks each. It is compulsory to attempt all the questions.]

Q.1. Answer all the following multiple choice questions: (14 marks)

1. Which of the following approaches to management draws together concepts, principles, techniques, and
knowledge from other fields and managerial approaches and develops classification system built around the
managerial functions of planning, organizing, staffing, leading, and controlling?
(a) Systems
(b) Management Science
(c) Empirical
(d) Contingency
(e) Operational.

2. Power is the ability of individuals or groups to induce or influence the beliefs or actions of other persons and
groups. Power can be derived from many sources. The managers source of power that comes directly from his
formal position within the organization is called
(a) Legitimate power
(b) Expert power
(c) Referent power
(d) Reward power
(e) Coercive power.

3. Every organization has certain goals and objectives, and one of the important factors affecting their
achievement is the structure of the organization. In which of the following organizational structures are
activities grouped by workflow?
(a) Functional departmentation
(b) Process departmentation
(c) Customer departmentation
(d) Geographic departmentation
(e) Product departmentation.

4. Which of the following is a limitation of the socio-technical systems approach to management?
(a) It ignores planning, organizing and controlling
(b) Emphasis only on blue-collar and lower level office work
(c) Too broad a field for study of management
(d) Studies experiences through cases
(e) There is no one best way to do things.

5. Which of the following is a course of action selected as a way to deal with a specific problem?
(a) Downsizing
(b) Leadership
(c) Organizing
(d) Decision-making
(e) Structuring.

6. Assessment of arguments 'for' and 'against' involvement in social welfare is necessary for organizations to
implement social initiatives. Which of the following arguments against' social responsibility of business points
out that, since the cost of social initiatives would be added to the price of products, multinational companies
selling in domestic markets would be at a disadvantage when competing with domestic companies not involved
in social activities?
(a) Opposing the profit maximization principle
(b) Excessive costs
(c) Weakened international balance of payments
(d) Increase in firm's power and influence
(e) Lack of accountability.

7. Complex interactions between the manager's stage of moral development and the various moderating
variables determine whether he will act in an ethical or unethical manner. Moderating variables include
individual characteristics, structural design of the organization, the organizational culture and the intensity of
the ethical issue. The strength of a person's convictions refers to which of the following individual
(a) Value
(b) Ego strength
(c) Attitude
(d) Perception
(e) Locus of control.

8. Strategies can be formulated at various levels in an organization. Which of the following strategies is a
rational and analytical approach and involves the evaluation of the various business units of an organization by
its top management?
(a) Values based approach
(b) BCG matrix
(c) Business level strategies
(d) Functional level strategies
(e) Corporate portfolio approach.

9. Which of the following is not true about the differences between authority and power?
(a) Authority is the right to do something; power is the ability to do something
(b) Authority is the legitimate power given by an organization to a member holding a
position; power requires no formal position
(c) Authority is derived only through position; power is derived through many sources
(d) Authority is a broader concept; power is a narrow concept
(e) Authority can be delegated; power cannot be delegated.

Q 2 a) Define ( Each question carries 1 mark ) 7 marks

1) Differential Rate System
2) Red Ocean Strategy
3) Standing Plans
4) Transactional Leadership
5) Assessment Centers
10. Which of the following is/are common forms of group decision-making?
I. Decision trees.
II. Preference theory.
III. Delphi technique.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above.

11. Strategy implementation involves (i) carrying out strategic plans and (ii) maintaining strategic control.
Which of the following is not a major internal element of the organization that may need to be synchronized
to convert a chosen strategy into action?
(a) Technology
(b) Human resources
(c) Rewards system
(d) Analyzing the affect of strategic actions on the organization
(e) Decision processes.

12. Which of the following is a method that can be used to overcome the tendency towards conformity in
group decision-making?
(a) Interactive Groups
(b) Nominal group technique
(c) Groupthink
(d) Electronic meetings
(e) Sensitivity training.

13. In a functional structure, as managers specialize in a certain area, their lack of knowledge of other
functions disables them to handle complex problems. Thus they rarely reach the top of the hierarchy and this
leads to shortage of managers with general management skills, a condition referred to as
(a) Managerial vacuum
(b) Managerial conflict
(c) Monotony
(d) Training lacuna
(e) Myopia.

14. The span of management has a direct effect on the number of hierarchical levels in an organization. A flat
structure has a wide span of control and fewer hierarchical levels. As the structure becomes flat and span of
control grows wider the disadvantage is that
(a) Superiors are forced to delegate
(b) There is excessive distance between lowest level and top level
(c) There is a danger of superiors loss of control
(d) There are many levels of management
(e) Overhead costs are high.

6) Polycentric Culture
7) Bounded Rationality
8) Quality Circle
9) Supply Chain Management
10) Span of control

Q 2
(b)Explain Theory X and Theory Y with examples ( 7 marks)
(b)Explain Blake and Moutons Managerial Grid ( 7 marks)

Q 3
a) Discuss the importance of planning and steps in planning (7 marks )

b) Icemore Ltd is an icecream manufacturing company. There is a problem in the
organizational structure of the organization. Kindly explain the different type of
organization structures to the management and suggest the best suited to them (7 marks)

Q 3
a ) Discuss the importance of communication in organization and an ideal communication
(7marks )
b ) Design a BCG Matrix from any one of the 3 organizations;
Parle ( 7 marks )

Q 4
a) Explain Budget as a controlling technique ( 7 marks )

b) Horizon Ltd is a retail outlet .The attrition rate has been increasing in the organization
at a consistent rate.The organization feels that there is something going wrong while
selecting the employees and the people selected are wrong fit to the organization. You
being hired as a consultant, study the drawbacks in the selection process and suggest and
ideal selection process with the top management of the company.
( 7 marks)

Q 4
a)Explain Delegation of Authority & barriers to effective delegation (7 marks )

b)Wellness Ltd is a pharmaceutical company. There is a problem in the productivity and
the motivational level of the workers. You playing the role of Frederick Taylor, please
suggest the necessary changes ( 7 marks )

Q -5 Case Study Analysis
Case Study

Bharat Products Ltd is a big factory with a turnover of Rs 10 crore with 400 workers.
You have been in the office of its factory manager, Mr Gautam, for nearly 40 minutes.
During this short period, you have found that your conversation with him has been
interrupted several times. First, it was his office manager, who rang him to get his
approval for samples of office stationery.Mr Gautam sends for the samples.Then comes a
ring from the supplier who tells Mr Gautam that a particular part of machinery, which is
otherwise not available in the market, can be held from him. Mr Gautam rings the store
keeper to purchase this part immediately from the supplier and instructs him to cancel the
order, if any, which the purchase manager would have placed.Then there is call from the
customer who requests Mr Gautam to give him more discount than committed by the
sales manager. Mr Gautam turns down the request and also expresses a surprise at the
high discount already offered by the sales manager. Finally a foreman enters and
complains that a certain part of one machine is broken and is not being available in the
stock, the production may suffer. Mr Gautam asks the foreman to tell the Purchase
Manager to order the part immediately.

Q -1. Is Mr Gautam performing the job of a manager? ( 7 marks )
Q 2. What are your suggestions to improve his managerial style ? ( 7 marks)


Case Study

John Tim , superintendent of the Green Roadways company is in charge of the operation
and maintenance of all company buses. The company has over 50 buses which operate on
8 long distance routes in the country. Because of recent complaints, John Tim is
concerned about controlling the quality of service provided to bus travelers. Schedules,
setting of fares and replacement of equipment are outside of Tims jurisdiction; instead
his attention focuses on bus drivers, garage crews, and the few people working on the
main terminal. Assume Tim has asked you for recommendations for a control system.

Q 1. What control Points do you suggest be used? ( 7 marks)
Q -2. How should actual performance be measured at these points? (7 marks )