All India Management Association (AIMA) 2007 M.B.A Marketing Management Introduction to Management – II - Question Paper
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instrumentality.
42. E Quality of work life is a broad approach to job enrichment.
43. B Path-goal theory suggests 4 kinds of leadership: instrumental, supportive,
participative, and achievement-oriented leadership.
44. C In Authority-obedience management style, there is high concern for production but
low concern for people. This management style is task-oriented and stresses the
quality of the decision over the wishes of subordinates. So, (c) is the accurate ans.
45. B According to Kurt Lewin, Laissez-faire leadership style is ineffective on every
performance criterion.
46. D Job-centered style might work best in the provided situation, where Saila can divide
work into routine tasks and as a leader can closely monitor workers to ensure
prescribed methods are followed and productivity standards met.
47. E Boss-centered and subordinate-centered are the approaches at the 2 ends of this
continuum.
48. B Fiedler's position power is referred to the degree of influence a leader has over power
variables such as hiring, firing, discipline, promotions, and salary increases.
49. A According to the University of Michigan studies, leaders who were employeeoriented
were associated with higher group productivity and higher job satisfaction.
50. E The subsequent aspects can be attributed to a transformational leader
• Charismatic leadership.
• Inspirational leadership.
• Intellectual stimulation.
• Divine grace.
51. D A major difference ranging from management and leadership is that leadership includes
the ability to inspire people.
Hence, choice (d) is accurate.
52. D A manager who constantly indicates concerns for the needs of his employees is a
supportive leader, according to House.
53. B Hersey and Blanchard describe “readiness” as the extent to which followers have the
ability and the willingness to accomplish a specific task.
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54. A Organization-man management is also referred to as Middle-of-the-road
management.
55. B Non-verbal communication includes body posture, eye contact, distance from the
receiver, voice inflection, rate of speech, gesture, silence etc.
Hence, choice (b) is accurate.
56. A Most decisions in an organization flow through the organization structure level by
level. i.e., Head Office to regional office, regional office to branches. The provided
example is that of downward communication. So, (a) is accurate ans.
57. B A message that is generated by the receiver in response to the sender’s original
message is known as feedback. So, (b) is accurate ans.
58. B Communication is best defined as the process of sharing info.
59. D The subsequent are the gateways to effective communication:
• Interpersonal trust
• Effective listening
• Proper feedback
• Understanding non-verbal cues
• Non-directive counseling.
60. E Oral downward communication may take place by means of instructions, meetings,
telephone, loudspeakers and even grapevine. Memorandum is the means for written
downward communication.
61. D There is no such management control as ‘exception control’.
62. D Cybernetic control system is a self-regulating control system that once put into
operation, can automatically monitor the situation. All other control systems may rely
on human discretion. So, (d) is the accurate ans.
63. E Management by walking around (MBWA) is based primarily on personal
observation.
Hence, choice (e) is accurate.
64. C Lower level managers concerned with schedules, budgets, rules and specific
individual output requirements makes use of operational control.
65. C Control systems should be rigid is not the characteristic of effective control systems.
In fact, control systems should be flexible enough to accommodate change.
66. A Multiple control systems use 2 or more control processes and involve several
strategic control points.
67. D The subsequent are financial statements used by managers, creditors, investment
analysts, shareholders, unions and other stakeholders to evaluate the performance of
the organization:
• Balance sheet.
Income statement.
Ratio analysis is a technique to exercise financial control and not a financial
statement.
68. A Liquidity refers to an organization’s ability to convert its assets into cash to meet
current financial needs.
69. B The budgetary control system helps a manager to match the true and the planned
revenues and costs of different organizational activities.
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70. B Leverage or debt management ratios indicate the company’s ability to pay long-term
debts.
71. D The subsequent statements about revenue centers are true:
• Sales and marketing departments are examples of revenue centers.
A revenue center cannot be responsible for modifications in profit levels.
Statement (II) is not actual because in revenue centers, outputs are measured in
monetary terms but are not directly compared with input costs. Hence, choice (d) is
the ans.
72. E Employee control system is not a major control system used in organizations.
73. B Ratio is an index that measures 1 variable relative to a different.
74. A Activity ratios or asset management ratios measure the effectiveness of an
organization in managing its assets.
75. C Emphasis on the logical physical presentation of a issue in the form of a model is
a characteristic of operations research and not a limitation
76. B PERT and Critical Path methods are examples of time-event networks.
77. D The cost of not having the inventory or stock of the product requested by the
customer is called stock-out cost.
78. B Simulation models used in constructing mathematical models.
79. B Production is the process or procedure developed to transform a set of input elements
like men, materials, money (capital), info and energy into a specified set of
output elements in the form of finished products or services.
80. B The labor productivity index is also referred to as output per work-hour ratio.
81. D The term ‘quality circle’ refers to a work group that meets regularly to discuss,
investigate and accurate quality issues.
Hence, choice (d) is accurate.
82. C The Program valuation and Review Technique (PERT) is especially useful in
scheduling Projects.
Hence, choice (c) is accurate.
83. A Warehousing lead-times is an input not an output in the distribution logistics model.
84. A In human resource planning, turnover rate is not an element in ‘resource demand
forecasting.
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85. D In non-directive counseling, a manager should
• Be attentive and friendly
Raise improper ques..
Be tactful and enable the employee to think through the issue clearly
Create an atmosphere of privacy to help the employee communicate freely
Be a patient listener to help the employee to express his emotions freely
Encourage the employee to examine his own ideas and do a few introspection.
86. A Strategic control is mainly the function of top-level managers.
87. B Budgeting is the process of formulating future plans for the organization for a provided
period of time (usually a year) and estimating the amount of resources needed to
carry out the planned activities.
88. D Just-in time inventory control approach stipulates that materials should arrive just as
they are needed in the production process.
89. E The info attribute which is prepared or presented to users often enough to be
up-to-date is known as info frequency.
90. A The level of management for which info about environmental patterns would
be most improper is top management.
Hence, choice (a) is accurate.
91. C An office automation system aims at facilitating communication and increasing the
efficiency and productivity of managers and office workers through document and
message processing.
92. C Descriptions of customer satisfaction with products and services are examples of
external info in an organization.
Hence, choice (c) is accurate.
choices (a), (b), (d) and (e) are all examples of internal info in an
organization.
93. A In an info system, hardware refers to the physical equipment that is used to
input, store and retrieve data.
94. A A transaction refers to any event or activity that involves the interaction of the
organization with external.
95. B Polycentric orientation is based on the notion that it is best to provide foreign
subsidiaries, staffed by local nationals, a great deal of managerial freedom.
Hence, choice (b) is accurate.
96. B Statements (I) and (III) are the characteristics of the American planning function.
Statement (II) and (IV) are the characteristics of the Japanese planning function.
97. D In most Japanese organizations, Emphasis on group work is a task is not assigned to
an individual, instead several tasks are assigned to a group, which consists of a small
number of people.
98. C In the geocentric orientation toward international business, a firm analyzes the needs
of customers worldwide and then adopts standardized practices for all the markets it
serves.
99. C Organizations that exhibit a style of management that combines traits of Japanese and
American companies are called theory Z organizations.
100. A In Japanese management, ringi refers to decision-making by consensus.
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