Mock Test – 01 : Nature and Significance of Management

1. Pricey Medicines was a world level medicine manufacturing company. However, recently its fame had come down under the impact of resignations put forth by two of its departmental heads. These departmental heads were experts in their fields. One was leading the marketing department and the other was a scientist of repute who headed the manufacturing department. In the top level management meeting, it was found that such departmental heads who were specialists in their areas cannot be tackled by unity of command. They were egoistic as they were specialists. After the meeting, things started to change for the organisation as all the departments started to work with one single target of giving the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action. Thus, the overall functioning of the organisation was improved. In this case a concept of management was missing. Identify it.

2. Which of the following statements highlights that management is a multi-faceted concept?

3. After completing her studies in product designing, Rita wishes to start her own business of designed products to cater to the mobility and communication requirements of persons with special needs. She told her friend that she wanted to focus on supplying high quality and affordable products on “no profit – no loss basis”. The Unique Selling Proposition (USP) of the products will be sensitivity to challenges and needs of the differently-abled. She has to follow a series of steps to attain her pre-determined objectives.

4. Which of the following statements justifies that management is a continuous process?

5. Ravi joined a marketing firm as a Sales manager. On his first day in the company, during the orientation programme, the CEO of the company told Ravi that he will have to simultaneously perform the functions of management (planning, organising, staffing, directing, controlling) all the time. Which characteristic of management was the CEO referring to?

6. A chartered accountant Mr. Rakesh argues that management is a fully developed profession whereas Mr. Rishit, a management consultant, argues that management is not a fully developed profession like law, medicine etc. The correct option is:

7. Statement I: Efficiency is concerned with doing the right task, completing activities and achievement of goals.
Statement II: Effectiveness is concerned with doing the task correctly and with minimum cost.

8. Coordination is considered as the essence of management because:

9. Statement I: Knowledge of management can be acquired at different professional institutes and through various books.
Statement II: It is compulsory for managers to take membership of All India Management Association.

10. Which of the following function of management measures the progress of objectives and guides the organisation to keep it on the right track so that organisational goals might be achieved?

11. Match the various terms of Management in Column I with their respective statements in Column II and choose the correct alternative:

12. The picture given below illustrates the lack of an importance quality of management. Identify the quality of management lacking here which has resulted in chaos.

13. Match the various levels of Management in Column I with their respective statements in Column II and choose the correct alternative:

14. Management is considered to be an art because:

15. Which of the following statements is not true for operational level of management?

16. Identify the feature of management illustrated by the picture given below in which members of the organisation contribute towards fulfilling the organisational goal.

17. Which of the following features of a profession is fully satisfied by Management?

18. Anshul was working in ABC Ltd., a company manufacturing air purifiers. He found that the profits had started declining from the last six months. Profit has an implication for the survival of the firm, so he analysed the business environment to find out the reasons for this decline.
Identify the level of management at which Anshul was working.

19. The objective of management which consistently creates economic value for various constituents of society is:

20. Identify the characteristic of management illustrated by the picture given below in which the basic reason for existence of an organisation is highlighted.

21. “A manager in a conscious manner has to ensure that even where members of a department willingly cooperate, coordination gives direction to the willing spirit.” The characteristic of coordination being highlighted above is:

22. The Topper group is looking to make a foray into manufacturing of semiconductors and it has set up a business to seize the business opportunity and add to its prospects in the long run. The company has already pivoted into a number of new projects like electronics, 5G network equipment, as well as semiconductors. Which economic objective of management does the business seek to fulfill?

23. At times, a business may concentrate on producing goods with fewer resources but cannot achieve the targeted production. In such a case, the business is said to be:

24. Unlike professions such as medicine or law which require a practising doctor or lawyer to possess valid degrees, nowhere in the world is it mandatory for a manager to possess any such professional degree. Identify the characteristic of the profession being discussed above which is not being strictly met by management.

25. Identify the nature of management illustrated by the picture given below in which All India Management Association has laid down a code of conduct to regulate the activities of its members.

26. KTX Group is rolling out an initiative to help create wealth for its employees through the implementation of Employee Stock option. Through motivation and leadership, the management will help individuals to develop team spirit, cooperation and commitment to the success of the group.
Which of the following importance of management is highlighted above?

27. Identify the feature of management illustrated by the picture given below in which Dominos offered ‘Vrat Special Menu’ during Navratras to attract the Indian customers with vegetarian pizza made of water-chestnut flour (singhada atta), and white millet flour (Samak ke chawal ka atta).

28. Samarth has started business of manufacturing scissors in a factory. The factory is of large size and has employees and departments of different types. In this situation, he takes proper care to coordinate the efforts of these different employees and departments in a conscious manner.
Identify the characteristic of coordination indicated in the given case.

29. Match the various objectives of Management in Column I with their respective statements in Column II and choose the correct alternative:

30. ‘An organisation has multiple objectives to serve the purpose of different groups that constitute it.’ Which importance of management is mentioned here?