MIDTERM EXAMINATION
Spring 2009
MGT503- Principles of Management (Session - 3)
Time: 60 min
Marks: 50
Question No: 1 ( Marks: 1 ) - Please choose one
Sulman thinks about his job while playing with his son on the weekend, and he continually volunteers to do extra assignments and project for his department. These suggest that Sulman has a strong need for :
► Esteem
► Security
► Achievement
► Power
Question No: 2 ( Marks: 1 ) - Please choose one
Asim assigned Khalid a project to be completed by the end of the month and then hold periodic meetings with him to review his progress. Which management function Asim is performing?
► Planning
► Leading
► Controlling
► Organizing
Question No: 3 ( Marks: 1 ) - Please choose one
The single European Union currency is called:
► Franc
► Franc-mark
► Pound
► Euro
Question No: 4 ( Marks: 1 ) - Please choose one
A large chemical company not only dispose off all toxic waste properly as outlined by law, but it also spends $1 million dollars each year on research to determine better processes for all businesses to use in disposing of toxic wastes. This company is exhibiting which of the following?
► Social responsibility
► Social obligation
► Moral obligation
► Social responsiveness
Question No: 5 ( Marks: 1 ) - Please choose one
Ali has decided to implement changes within the production process of his organization. This decision was based upon his review of how well the performance level of the organization is meeting the established goals for the company. He is practicing which of the following management functions.
► Planning
► Controlling
► Leading
► Organizing
Question No: 6 ( Marks: 1 ) - Please choose one
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
► Single-use plan
► Specific plan
► Reaction plan
► Directional plan
Question No: 7 ( Marks: 1 ) - Please choose one
The intent of which of the following is to reduce uncertainty by playing out potential situations under different specific conditions?
► Project management
► Scheduling
► Environmental analysis
► Scenario planning
Question No: 8 ( Marks: 1 ) - Please choose one
All of the following are disadvantages of group decision making EXCEPT:
► More time taken to reach a solution
► Minority domination
► More alternatives are generated
► Groupthink decreases effectiveness of decision
Question No: 9 ( Marks: 1 ) - Please choose one
The strap of Ali's bag tore off as he threw it over his shoulder. On the way to school, he stopped at the first store that carries bags, walked in and purchased one from the front rack. Ali has just made which of the following type of decision?
► Maximizing
► Satisficing
► Risky
► Optimal
Question No: 10 ( Marks: 1 ) - Please choose one
Asad spoke out in a meeting in favor of a potential cost savings that would result from a new employee benefits program offered by the company. He later received information that showed that his initial decision about the cost savings was incorrect, but he was too embarrassed to publicly admit that he was wrong, so he stuckby his original statement. Asad is practicing which of the following?
► Bounded rationality
► Satisficing
► Escalation of commitment
► Maximizing
Question No: 11 ( Marks: 1 ) - Please choose one
Aisha wants to sell her house. She makes a decision to sell house to the first person who comes along after getting the initial offer. which of the following she is practicing?
► Bounding rationality
► Satisficing
► Competitive
► Optimizing
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following aspect of decision making is based on facts such as costs, revenues and product design specifications?
► Decision quality
► Escalation of commitment
► Optimizing
► Satisficing
Question No: 13 ( Marks: 1 ) - Please choose one
In case of a simple problem the assumptions of rationality can be met because of which of the following?
► Goals are clear and alternatives are boundless
► Goals are unlimited and alternatives are limitless
► Goals are clear and alternatives limited
► Goals are boundless and alternatives are clear
Question No: 14 ( Marks: 1 ) - Please choose one
Most of the time lower level management of organizations have to deal with problems which are:
► Satisficing
► Well-structured
► Non-programmed
► Ill-structured
Question No: 15 ( Marks: 1 ) - Please choose one
Putting a decision into action and conveying the decision to the persons who will be affected by it, is known as:
► Decision implementation
► Rational decision making
► Irrational decision making
► Problem identification
Question No: 16 ( Marks: 1 ) - Please choose one
Once a manager has identified a problem, the next step would be the identification of:
► Discrepancies
► Decision criteria
► Scenarios
► Factor weights
Question No: 17 ( Marks: 1 ) - Please choose one
A plant manager of an organization, who is trying to reduce turnover of production workers, notices that turnover has decreased by 10 percent in four months after he introduced a new training program, the manager is at which step in the rational decision-making process?
► Identify the problem
► Evaluate the decision criteria
► Analyze the alternatives
► Evaluate the results
Question No: 18 ( Marks: 1 ) - Please choose one
A retail clothing store manager who estimates how much to order for the current spring season based on last spring's outcomes is operating under what kind of decision-making condition?
► Seasonal
► Risk
► Uncertainty
► Certainty
Question No: 19 ( Marks: 1 ) - Please choose one
The extent to which an alternative can be accomplished within related organizational constraints such as time, budgets, technology and policies is called:
► Reversibility
► Sustainability
► Feasibility
► Acceptability
Question No: 20 ( Marks: 1 ) - Please choose one
A choice made from two or more alternatives is called:
► Support
► System
► Network
► Decision
Question No: 21 ( Marks: 1 ) - Please choose one
An agreement among the Mexican, Canadian and U.S government in which barriers to free trade have been eliminated is called:
► NAFTA
► ASEAN
► EU
► WTO
Question No: 22 ( Marks: 1 ) - Please choose one
Few years ago, employees of a international company took wages cuts to help the firm offset large losses. Now firm is again earning profits and employees believe that their wages should be restored but company is not willing to restore their wages. Organization is showing which of the following behavior?
► Unethical
► Socially responsible
► Ethical
► Socioeconomic
Question No: 23 ( Marks: 1 ) - Please choose one
A large pulp and paper company meets all federal guidelines and obeys all laws rigorously as it cuts down timber. The primary concern of this company is compliance and profit maximization for its stockholders. This company is exhibiting which of the following?
► Social responsibility
► Social obligation
► Moral obligation
► Social responsiveness
Question No: 24 ( Marks: 1 ) - Please choose one
Mega environment, that includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are characteristics of a given geographic area, is called:
► The socio-cultural element
► The international element
► The economic element
► The legal-political element
Question No: 25 ( Marks: 1 ) - Please choose one
All of the following are the parts of organization's external environment, EXCEPT:
► Culture
► Customers
► Competitors
► Regulators
Question No: 26 ( Marks: 1 ) - Please choose one
All of the following are the part of organization's internal environment EXCEPT:
► Employees
► Owner
► Culture
► Regulators
Question No: 27 ( Marks: 1 ) - Please choose one
Task environment is also called:
► Specific environment
► Goal orientated environment
► Open environment
► Close environment
Question No: 28 ( Marks: 1 ) - Please choose one
Mega environment is also called:
► Open environment
► Close environment
► Flexible environment
► General environment
Question No: 29 ( Marks: 1 ) - Please choose one
The Walt Disney company's movies, theme parks and television programs all benefit one another. Children who enjoy a Disney movie like LION KING want to go to Disney world and see lion king show. They benefits greatly from:
► Negative Entropy
► Synergy
► Transformation
► Entropy
Question No: 30 ( Marks: 1 ) - Please choose one
The bank of New England uses models to figure out how many teller need to be on duty at each location at various times throughout the day. Bank is using which of the following approaches?
► Management science
► Operations management
► Total quality management
► Contingency perspective
Question No: 31 ( Marks: 1 ) - Please choose one
Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation is called:
► Contingency theory
► Behavioral theory
► Administrative theory
► Social theory
Question No: 32 ( Marks: 1 ) - Please choose one
Chester Barnard saw organizations as a ______system that required human assistance.
► Moral
► Ethical
► Social
► Technical
Question No: 33 ( Marks: 1 ) - Please choose one
Low level management has a complete authority to make decisions in case of:
► Centralization
► Decentralization
► Scalar Chain
► Order
Question No: 34 ( Marks: 1 ) - Please choose one
According to Adam Smith, the division of labor results in:
► Increased worker motivation
► Decreased worker specialization
► Increased worker productivity
► Decreased worker motivation
Question No: 35 ( Marks: 1 ) - Please choose one
According to Mintzberg monitor, disseminator and spokesperson are all:
► Interpersonal roles
► Informational roles
► Decisional roles
► Functional roles
Question No: 36 ( Marks: 1 ) - Please choose one
Hussain is the physician who heads the Critical Care Unit at Mercy Hospital, the most important role that he performs is:
► Informational
► Decisional
► Interpersonal
► Functional
Question No: 37 ( Marks: 1 ) - Please choose one
Controlling contingent situation comes under which of the following roles?
► Spokesperson
► Monitor
► Leader
► Disturbance handler
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following is most important characteristic of an entrepreneur?
► Planning
► Communication
► Rapid decision making
► Goal setting
Question No: 39 ( Marks: 1 ) - Please choose one
Adam Smith wrote his book “The Wealth of Nations” in:
► 15th century
► 17th century
► 20th century
► 18th century
Question No: 40 ( Marks: 1 ) - Please choose one
Which of the following courses helps managers gain a better understanding of motivation, leadership, trust, employee selection, performance appraisals and training techniques?
► Psychology
► Sociology
► Political science
► Anthropology
Question No: 41 ( Marks: 10 )
Ali is working as the head of tea unit of a multinational organization. Expenses of tea unit are increasing day by day. He is much worried. He decided to call a meeting and ask for some suggestions to reduce expenses from his subordinates. Different subordinates suggest for the downsizing of research department as it was not working efficiently. Ali still wants to think over this suggestion. What steps he should take to make a rational decision?