FOM 1000 MCQS PDF

Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) MULTIPLE CHOICE QUESTIONS 1. Who is a person who advanced early scientific management principles? (a) Weber (b) Taylor (c)...

Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) MULTIPLE CHOICE QUESTIONS 1. Who is a person who advanced early scientific management principles? (a) Weber (b) Taylor (c) Vest (d) Fayol 2. A reporting relationship in which an employee receives orders from, and reports to, only one supervisor is known as: (a) Line of authority. (b) Centralization. (c) Unity of direction. (d) Unity of command. 3. Which worked on administrative management theory: I. Fayol II. Parker III. Weber (a) I and III (b) II and III (c) none of these worked on administrative management theory (d) I, II, and III 4. ________ is the study of how to create an organizational structure that leads to high efficiency and effectiveness. (a) Scientific management (b) Job specialization (c) Administrative management (d) Allocation management 5. _______ is the singleness of purpose that makes possible the creation of one plan of action to guide managers in resource allocations. (a) Unity of direction (b) Unity of command (c) Unity of authority (d) Unity of resources 6. Which is an organizational - environmental theory? I. The open-systems view II. Contingency theory III. The Theory of Bureaucracy IV. Theory Z (a) I and II (b) I, III, and IV (c) II, III, and IV (d) I, II, and III 7. Theory __ is based on positive assumptions about workers. (a) Z (b) X (c) Y (d) C 8. The _______ theory states a manager's choice of organizational structures and control systems depends on characteristics of the external environment. (a) Mechanistic (b) Management science (c) Organic (d) Contingency The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 9. Which is not one of Fayol's principles: (a) Authority and responsibility (b) Line of authority (c) Globalization (d) Unity of command 10. Which is not a management science theory: (a) Operations Management (b) TQM (c) MIS (d) None of these 11. Theory __ states that the average employee is lazy and will try to do as little as possible. (a) X (b) Y (c) Z (d) None 12. In recent history, workers have felt that they should be empowered in the workplace. This is an example of (a) social influences (b) political influences (c) technological influences (d) global influences 13. Scientific management, administrative management, and bureaucratic management belong to the management viewpoint known as the (a) classical perspective (b) behavioral perspective (c) quantitative perspective (d) systems perspective 14. The theorist that advocated standard methodology for doing a task and suggested that workers were motivated by pay according to output (piecework) is (a) Elton Mayo (b) Max Weber (c) Frederick Taylor (d) Henri Fayol 15. As a Theory Y manager, you believe that your employees (a) dislike work and will avoid it if possible. (b) need a hierarchy of authority and lots of rules and regulations. (c) should be trained to standard methodology in all their tasks. (d) are self-motivated and self-directed toward achieving organizational goals. 16. What does the case, ‘Scientific management in action’ illustrate? (a) Scientific management theory is an outdated management theory. (b) Managers should apply classical management theory to their everyday work if they want to be more effective. (c) A traditional approach to management can be successfully applied to the problems of a modern organisation. (d) Quality usually suffers as productivity increases. 17. According to Frederick Taylor, who was to blame for the inefficiency in organisations? (a) The unions. (b) The managers. (c) The organisation as a whole. (d) The workers 18. Which of these was not an integral part of scientific management? (a) Differential pay rates. (b) Worker control of production. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 2  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) Systematic selection of workers. (d) Work specialisation 19. Which of the following is not a valid criticism of scientific management theory? (a) Increases in pay for workers were not proportional to increases in productivity. (b) Worker discretion over the execution of the task was reduced. (c) Jobs became too complex for workers to handle. (d) Fear of redundancy was increased. 20. Which of the following is not a fundamental characteristics of Bureaucratic Management? (a) Specialisation of labour (b) Well defined hierarchy (c) Striving to be a ‘first-class worker’ (d) Formal rules and regulations. 21. Which of these statements concerning Weber’s concept of Bureaucracy is not correct? (a) It is based on rules and procedures rather than personal preference and judgement. (b) It is still a relevant concept in today’s organisation. (c) It has acquired a negative reputation for inefficiency and rigidity. (d) It rejects rational approaches to managing organizations 22. Which of the following was an early key management idea, pre-dating the work of Frederick Taylor and Max Weber? (a) Differential pay rates. (b) Rule-by-the-office. (c) Work specialisation. (d) Classical management theory. 23. Which of the following was the key aim of scientific management? (a) To increase worker control of production. (b) To increase productivity. (c) To decrease absenteeism. (d) To develop time-and-motion studies. 24. Which of the following is NOT a key concept associated with scientific management? (a) One best way. (b) Formalisation. (c) Time-and-motion studies. (d) Systematic selection. 25. Contingency theory suggests which of the following as a limitation of classical management theory? (a) Management approaches need to take into account the informal social life of workers at work. (b) Management approaches need to take into account complexity and instability in the environment. (c) Everything is contingent upon the workers in an organisation. (d) Management practices need to recognise stability in the environment. 26. Which of the following is NOT true of scientific management? (a) It gave rise to the modern operations research. (b) It raises questions as to how rewards from increased productivity should be distributed. (c) It is outdated as a theory as it cannot be applied to today’s modern organisations. (d) Managers are chosen for their intellectual ability and rationality. 27. Which of the following does NOT describe a problem with scientific management? (a) Productivity increases may not be reflected in workers’ pay. (b) It is better suited to complex jobs. (c) Improvement is not necessarily maintainable. (d) It is better suited to simple jobs. 28. Scientific management gave rise to which of the following modern disciplines? (a) Theory Y. (b) Behavioural science. (c) Socio-technical systems. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 3  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) Operations research. 29. Which of the following men’s writings are associated with bureaucracy? (a) Max Weber. (b) Henri Fayol. (c) Frederick Taylor. (d) Douglas McGregor. 30. According to Fayol’s 14 principles of management, ‘esprit de corps’ refers to which of the following? (a) Being treated fairly and kindly. (b) Spirit of the corporation. (c) Team work and harmony. (d) Spirit of work. 31. Which of the following images best captures how classical management views the organisation? (a) As an organism. (b) As a human being. (c) As a machine. (d) As a wheel in an engine. 32. Which of the following is the ‘odd one out’? (a) Management science. (b) Management accounting. (c) Operations management. (d) Systems management. 33. In general, Theory Y and Theory X belong to which of the following perspectives? (a) Socio-political. (b) Bureaucratic. (c) Cultural. (d) None of these. 34. Which of the following is NOT part of the mix of behavioural sciences informing organisation behaviours? (a) Social psychology. (b) Organisational theory. (c) Systems theory. (d) Psychology. 35. The behavioural science approaches add which of the following emphases to management? (a) The study of people who satisfy social needs at work and how informal as well as formal organisation affects behaviour. (b) Management as a science and developing techniques to control behaviour. (c) The scientific study of human behaviour and developing behavioural techniques. (d) None of these. 36. ystems theory takes into account which of the following? (a) The whole system of anything. (b) Every system involving humans. (c) Socio-technical systems. (d) Open systems. 37. hich of the following phrases is closely connected to contingency theory? (a) No one best way. (b) Today’s ideas are tomorrow’s history. (c) One best way. (d) Universal ideas of good management. 38. Which of the following is not a way of overcoming resistance to change? (a) Incentives The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 4  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) Bullying and harassing people (c) Education and communication (d) Coercion 39. Which of the following is the reason for resistance to change? (a) Obsolecense of skills (b) Fear of economic loss (c) Fear of unknown (d) All of the above. 40. Changes which take place gradually without any resistance are (a) Evolutionary (b) Revolutionery (c) Planned (d) Unplanned. 41. Which of the following is true with people with a Type A personality? (a) They are generally content with their place in the world. (b) They generally fell little need to discuss their achievements (c) They are easy going and relaxed and that’s why take no tension of work. (d) They have an intense desire to achieve and are extremely competitive 42. The difference between a company’s mission statement and the concept of strategic vision is that (a) The mission statement lays out the desire to make a profit, whereas the strategic vision addresses what strategy the company will employ in trying to make a profit. (b) A mission statement deals with "where we are headed " whereas a strategic vision provides the critical answer to "how will we get there?" (c) A mission deals with what a company is trying to do and a vision concerns what a company ought to do. (d) A mission statement typically identifies what the company's products or services are (what we do) and the customers and markets it serves (why we are here), whereas the focus of a strategic vision is on "where we are going and why." 43. The management process functions consist of (a) Planning, organising, staffing and directing (b) Planning, organising, leading and directing (c) Planning, organising, leading and staffing (d) Planning, organizing, leading and controlling. 44. Which of the following is not Kurt Lewin’s famous 3 stage perspective model of change? (a) Unfreezing current attitudes (b) Refreezing attitudes at new level (c) Moving to a new level (d) Melting resistance. 45. Forcefield analysis suggests that before a manager embarks on a change strategy he should properly identify and evaluate ________ and ____________. (a) Positive forces, negative changes (b) Driving forces, restraining forces (c) External forces, internal forces (d) Strong forces, weak forces. 46. Which of the following is not an organ of company management? (a) Officer (b) Board of Directors (c) Managing Director (d) Secretary. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 5  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 47. Disqualifications from becoming a Director of a company is (a) Insolvency (b) Fraudulent, declared by court (c) Unsound mind (d) All of the above. 48. The Central Government may appoint some directors for a period of ___________ in case of mismanagement of company affairs (a) 3 and half yrs (b) Not more than 3 yrs (c) 5 yrs (d) Not more than 2 yrs. 49. A director has to hold a minimum qualifying amount of shares of ` ___________ within ______ months after his appointment as director. (a) 5000, 2 (b) 50,000, 2 (c) 5000, 5 (d) 5000, 3. 50. The maximum limit of holding Directorship in public companies is (a) 11 companies (b) 12 companies (c) 14 companies (d) 15 companies. 51. A person cannot be appointed as a Managing Director for more than ________ at a time. (a) 5 yrs (b) 6 yrs (c) 7 yrs (d) 4 yrs 52. Which of the following is a characteristic of a Public sector organization? (a) Private ownership (b) Primary profit making motive (c) Strict financial control by Government (d) None of the above. 53. Which of the following industries does not come within the purview of 1991 Industrial Policy for reservation for public sector? (a) Handicrafts (b) Atomic energy (c) Arms Ammunitions (d) Coal and lignite. 54. Planning is based on: (a) decision-making, (b) forecasting, (c) staffing, (d) organising [Hint: Planning is setting objectives and deciding how to accomplish them.] 55. Planning do not consider: (a) choice, (b) communication, (c) machine, (d) coordination. 56. Strategic plans are: (a) single use plans, (b) long range plans, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 6  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) for lower management levels. (d) standing plans 57. Short-term plans guides: (a) lower level management, (b) bridges gap between past and present (c) forecasting (d) environmental factors 58. Participating in the planning process makes: (a) effective planning, (b) cost reduction, (c) increase output. (d) perception of opportunities 59. Negative attitude and Commitment are not the basis for: (a) effective planning, (b) environment, (c) resistance. (d) technology 60. Planning is: (a) looking ahead, (b) guiding people, (c) delegation of authority, (d) fundamentals of staffing 61. Single use plans are: (a) applicable in non-recurring situation, (b) deals with recurring situations, (c) budgets, (d) strategic 62. Programs are a complex of: (a) budgets, (b) goals & policies, (c) rules, (d) None of the above. [Hint: Programs are complex of goals, policies, rules, procedures, tasks.] 63. The limitations of planning are: (a) proper environment, (b) planning premises, (c) wrong information, (d) feasibility. [Hint: Wrong information and time involved are the limitations of planning.] 64. What are the three levels of planning? (a) Operational, intermediate and strategic (b) Headquarters, divisional and local (c) Top, middle and bottom (d) None of the above 65. All of the following would be steps or concerns in the process of strategic planning except: (a) Designing a sound business portfolio. (b) Checking to see if an advertising spot had been run in its allotted time slot. (c) Setting supporting objectives. (d) Defining a clear company mission. 66. Identify the best definition of planning. (a) An integrated process in which plans are formulated, carried out and controlled. (b) The core activity of planners and planning departments. (c) Setting an organisation's objectives and the means of reaching them. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 7  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) Devising ways of achieving the objectives of an organisation. 67. Budget refers to (a) Planned target of performance (b) Steps of handling future activities (c) Systematic action and allocation of resources (d) Statement of expected results expressed in numerical terms 68. Which of the following indicates the importance of planning? (a) Makes way for orderly activities (b) Provides a basic for control in an organization (c) Reduces risk of uncertainty (d) All of the above. 69. Which of the following is not a technique of planning? (a) Budgeting (b) Balanced score card (c) PERT CPM (d) Management by Objectives. 70. ___________ plans have clearly defined objectives (a) Directional (b) Flexible (c) Specific (d) Standing. 71. Which one of the following does not fall under qualitative forecasting method? (a) Life cycle analogy (b) Moving average methods (c) Judgmental methods (d) Delphi method 72. For which of the following situation(s) is the market research method of forecasting suitable? (a) When a firm is planning moderate changes on product innovations (b) When a firm is market testing one of its new offerings (c) when a firm is working with stable technology, planning moderate changes on product innovations or market testing one of its new offerings. (d) when a firm is planning moderate changes on product innovations and market testing one of its new offerings. 73. Which of the following forecasting method is suitable for launching new products? (a) Moving average methods (b) Exponential smoothing (c) Causal models (d) Judgmental methods 74. Which of the following method(s) is(are) suitable for forecasting the demand of a product? (a) Delphi method (b) Market research (c) Delphi method and judgmental method (d) Market research and judgmental method 75. Qualitative forecasting methods include (a) delphi (b) Panel of experts (c) (a) and (c) (d) (a) and (b) 76. Forecasts (a) become more accurate with longer time horizons (b) are rarely perfect The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 8  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) are more accurate for individual items than for groups of items (d) all of the above 77. One purpose of short-range forecasts is to determine (a) production planning (b) inventory budgets (c) research and development plans (d) job assignments 78. Forecasts are usually classified by time horizon into three categories (a) short-range, medium-range, and long-range (b) finance/accounting, marketing, and operations (c) strategic, tactical, and operational (d) exponential smoothing, regression, and time series 79. A forecast with a time horizon of about 3 months to 3 years is typically called a (a) long-range forecast (b) medium-range forecast (c) short-range forecast (d) weather forecast 80. Organizing refers to: (a) planning, (b) delegation of authority, (c) training, (d) selection 81. Organizing aims to serve: (a) common purpose, (b) corruption, (c) authority structure, (d) All of the above. 82. Organizing destroys: (a) individual relationships, (b) plans, (c) simplicity in the organization, (d) environment. 83. The principle of objective states: (a) delegation of authority, (b) existence for a purpose, (c) formal organization, (d) none of the above. [Hint: An organization must exist for a purpose is the principle of objective.] 84. For effective organizing, an organization required: (a) principle of balance, (b) span of management, (c) organization process, (d) planning and forecasting. 85. The structure of organization includes: (a) identification and classification of required activities, (b) informal organization, (c) establishing enterprise objectives, (d) authority relationships. 86. The degree to which an organization relies on rules and procedures to direct the behaviour of employees is: (a) complexity, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 9  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) formalization, (c) centralization, (d) motivation. 87. In a formal organization, “power” is associated with: (a) an individual, (b) position, (c) relationship, (d) control 88. Delegation is: (a) a continuous process, (b) unfolding talents, (c) granting the right to command. [Hint: Delegation is the act of granting of conferring something and the term authority means right to command.] 89. Unity of command means: (a) parity of authority and responsibility, (b) flow of command from subordinate to superior, (c) flow of command from superior to subordinate, (d) parity in controlling. 90. Defective delegation: (a) hampers coordination (b) size of the organization, (c) establish proper controls, (d) establish sources of powers. 91. Indicate which of the following is NOT among the six main types of organization structure– (a) Line organization (b) Functional structure (c) Committees (d) Department 92. Organisattion structure is primarily concerned with _______ and _______ of tasks and authority. (a) Allocation and Delegation (b) Allocation and apportionment (c) Reporting and delegating (d) Setting standards and delegation 93. Line organization is also known as _____________ organization. (a) Scalar (b) Chain (c) Matrix (d) Project 94. An advantage of the matrix structure is said to be – (a) Because product lines can be identified as cost centres,it facilitates financial control (b) Top management has more time to devote to long term strategic issues (c) It is easily understood by the people involved (d) Improved lateral communications. 95. Organizational structure is made up of key elements. Which of the following is not one of these elements? (a) Centralisation (b) Coordination (c) Decentralisation (d) Span of control 96. The foundations of ‘behavioral theory of organization’ were laid down by _______________ conducted by ____________ (a) Structural experiments,Gullick The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 10  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) Bethlehem steel corporations, Mooney (c) Hawthrone experiments, Mayo (d) The longwell coal mining study,Weber 97. The systems approach _______________________? (a) Emphasises the technical requirements of the organization and its needs (b) Emphasises the psychological and social aspects (c) Encourages the managers to view the organization both as a whole and as a part of larger environment (d) All of the above. 98. The Contingency theory focuses on (a) Situational variables (b) Interrelationships (c) Groups and human behavior (d) Economic needs of workers 99. ___________ is attributed with developing the scientific management perspective. (a) Elton Mayo (b) Robert Owens (c) Frank Gilbirth (d) Frederick Taylor 100. ____________ provides a focus and direction for formulating strategy to achieve organizational objectives. (a) Management by objectives (b) Strategy by objectives (c) Management by strategy (d) Strategic planning model. 101. ___________ refers to changes implemented by an organization due to pressure by external forces. (a) Unplanned change (b) Reactive change (c) Proactive change (d) Revolutionery change. 102. Selection devices must: (a) be explained, (b) match the job in question, (c) to be cost-effective (d) none of the above. 103. The popular on-the-job training methods include: (a) job rotation, (b) classroom lectures, (c) films. (d) description and displays [Hint: On-the-job training methods allow the workers to work in a realistic work environment and gather experiences.] 104. Need refers to: (a) control information and performance review, (b) key result areas and statement of objectives, (c) agree what you expect from me, (d) All of the above. [Hint: Need states agree what you refer from me and give me an opportunity to perform.] 105. Staffing refers to: (a) measuring performance, (b) managing the positions, (c) management in action, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 11  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) making strategic plans. [Hint: Staffing refers to appointing the right person for the right job.] 106. Non-financial incentives have many things to do with: (a) Directing, (b) Motivation, (c) Planning, (d) organising. 107. Staffing needs: (a) man power planning, (b) authority, (c) communication, (d) coordination. [Hint: Staffing needs estimates of present and future needs of managerial man power and therefore it needs some pre-thinking.] 108. HRD refers to: (a) remuneration, (b) development, (c) controlling, (d) planning 109. Recruitment covers: (a) selection, (b) job analysis, (c) time, (d) none of the above. [Hint: Recruitment covers job analysis, job design and job descriptions.] 110. Training is the process of: (a) motivation (b) increasing knowledge and skill (c) testing. (d) employee recommendations. 111. Vestibule training provides the worker with: (a) on the job training, (b) off the job training, (c) real life presentations off the job (d) demonstration [Hint: The worker is provided with a real life presentation but not on the job directly.] 112. What is the meaning of the acronym HRM? (a) Humane Resource Management. (b) Humanistic Resource Management. (c) Human Resource Management. (d) Human Relations Management. 113. Which of the following is not a function normally performed by the HR department? (a) Recruitment and selection. (b) Accounting. (c) Training and development. (d) Pay and reward. 114. Recruitment and selection must be effective to ensure it: (a) Offsets high labour turnover (b) Delivers the highest calibre of individuals at optimum most (c) To have a surplus in case of sickness and absence (d) Encourages new blood into the organization. 115. Which of the following is not a selection technique? (a) Performance appraisal The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 12  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) Ability test (c) Psychometric testing (d) Interviews 116. The primary aim of recruitment and selection process is to (a) Meet the high labour turnover (b) Hire the best individuals at optimum cost (c) Ensure the availability of surplus in case of sickness and absence (d) None of the above. 117. Job evaluation is conducted to develop (a) Compensation package (b) Training modules (c) Organisational grapevine (d) Rules and policies. 118. Which of the following defines the process of recruitment? (a) Forecasting the demand of human resources (b) Forecasting the supply of human resources (c) Discovering potential job candidates for a particular position (d) Making a hire or no hire decision. 119. Which of the following is not a type of remuneration system under Time Rate System? (a) High wage plan (b) Measured day work (c) Taylor System (d) Differential time rate. 120. Which of the following functions or activities requires recruiting and placing qualified personnel needed for the organization so that it may achieve its objectives and goals? (a) Planning (b) Staffing (c) Organizing (d) Controlling. 121. Direction refers to: (a) planning, (b) organizing, (c) driving, (d) staffing 122. Marry Follett pointed that reform was possible provided the following consideration were taken into account: (a) building up new attitudes, (b) planning (c) negative attitudes, (d) None of the above. 123. The characteristics of direction include: (a) guiding, (b) motivating, (c) planning, (d) performance appraisal 124. Direction is a: (a) discrete process, (b) continuous process, (c) circular process, (d) supervisory process 125. The principles of direction do not include: (a) to have a thorough knowledge about the terms to bind the employees and the organization, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 13  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) to remove the inefficient employees, (c) labour turnover, (d) to have an effective communication superior and his subordinates. 126. The techniques of direction excludes: (a) an alternative device of communication, (b) supervisory techniques, (c) coordination, (d) standard practices and procedures. Hint: Coordination refers to the link between the different functions of management. 127. Communication is a: (a) two-way process, (b) one-way process, (c) discrete process, (d) circular process [Hint: Communication is a transfer of information from one person to another and getting the feedback to check the efficiency of the message communicated.] 128. The sketch shows the process of communication from A to B. What labels apply to the arrows that cross in the centre? (a) Stimulus; response (b) Transmission; feedback (c) Feedforward; feedback (d) Encoding; decoding 129. What comprises the decoding stage of the communication model? (a) Perception; retention. (b) Attention; perception; retention (c) Receiving; processing and storing information (d) Short term memory; decoding; long term memory. 130. What is the first step to take during communications planning? (a) Decide on means of communication (b) Identify communication constraints (c) Conduct a stakeholder analysis (d) Develop a communications management plan 131. Feedback is a listener's (a) verbal critique of your message. (b) verbal or nonverbal responses to a message. (c) acceptance of a message. (d) aversion to a message. 132. To decode a message is to (a) translate ideas into code. (b) reject a message. (c) evaluate a message. (d) interpret a message. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 14  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 133. In the communication process, to encode means to (a) translate ideas into a code. (b) block a pathway between the sender and receiver of a message. (c) speak to large groups of people. (d) interpret a code. 134. A message is a signal that serves as (a) noise reduction. (b) stimuli for a speaker. (c) stimuli for a mass audience. (d) stimuli for a receiver. 135. Feedback can come in the form of (a) nonverbal communication only. (b) verbal communication only. (c) environmental noise. (d) verbal and nonverbal listener responses. 136. In the communication process, a receiver is (a) message interference. (b) the person who decodes a message. (c) a message pathway. (d) the person who encodes an idea. 137. Noise does the following: (a) causes listeners to listen to messages more carefully. (b) focuses wandering thoughts. (c) distorts or interferes with a message. (d) enhances a message. 138. An example of a communication channel is (a) face-to-face conversation. (b) noise. (c) feedback. (d) context. 139. Which of the three components are part of the human communication process? (a) Message, noise, feedback (b) Feedback, message, critiquing (c) Noise, feedback, jargon (d) Message, recording, feedback 140. Which of the following is an example of a nonverbal message? (a) Eye contact (b) Yelling (c) Mumbling (d) Jargon 141. The ability to communicate effectively (a) depends on the education level of those around you. (b) can be learned. (c) is a natural talent that cannot be learned. (d) depends on not using technology to send messages. 142. A message can only be deemed effective when it is (a) communicated face-to-face. (b) understood by others and produces the intended results. (c) repeated back as proof of understanding. (d) delivered with confidence. 143. Learning to communicate with others is key to (a) establishing rewarding relationships. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 15  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) never being misunderstood. (c) eliminating all of your listeners' physiological noise. (d) winning the approval of everyone around you. 144. Encoding is important because it (a) guarantees that one's message will be decoded. (b) encourages listener feedback. (c) eliminates noise. (d) Produces messages. 145. When a subordinate or a lower level manager passes information or offers suggestions to the higher level management, they are using which level of communication? (a) Upward communication (b) Downward communication (c) Lateral communication (d) Diagonal communication. 146. Control is a function aimed at: (a) economic development, (b) staffing, (c) organizational development, (d) planning 147. Control is a: (a) static activity, (b) plan, (c) pervasive function, (d) All of the above 148. The objective of control is: (a) take corrective actions, (b) make plans, (c) prepare manpower planning, (d) influence and persuasiveness, 149. In the sketch of the planning and control cycle, what do the arrows X and Y indicate? (a) (X) Review plans, (Y) review implementation of plans. (b) (X) Alter plans; (Y) alter implementation of plans. (c) (X) Restart the planning process; (Y) confirm existing plans. (d) (X) Proceed with normal planning review; (Y) intervene urgently in current action. 150. Detecting irregularities is possible through: (a) controlling, (b) staffing, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 16  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) decision-making, (d) planning. 151. Strategic control is implemented with: (a) micro perspective, (b) department perspective, (c) macro perspective, (d) motivational perspective 152. Deviation is a term used in: (a) controlling (b) motivation (c) directing (d) staffing [Hint: Deviation is the term used when the actual performance is not equal to the standard performance.] 153. Controlling plays an important role in helping: (a) increase the costs, (b) fixing standards, (c) identify opportunities, (d) time management 154. Difficulty in controlling the external factors is a drawback for: (a) controlling (b) motivation (c) staffing (d) organising 155. Effective control requires: (a) flexibility (b) rigidity (c) high cost (d) high time 156. The standard performances need to be adjusted after measuring with: (a) actual performances (b) costs (c) time involved (d) external factors [Hint: The actual performances should be measured with standards and the standard performances need to be adjusted through controlling techniques and review procedures.] 157. The process of monitoring performance monitoring it with goals and correcting any significant deviations is known as (a) Planning (b) Organising (c) Leading (d) Controlling. 158. Which of the factors listed below is not a reason for decision making in organizations being a complex process? (a) People have to make decisions in a historical context (b) Several stakeholders will have an interest in the decision (c) Factors in the current context of the organization affect the decision (d) Modern information systems enable people to evaluate a range of possible outcomes. 159. The overall process of decision making in, for example, staff selection includes which of these stages? (a) Deciding which candidate to appoint (b) Identifying the need for a new member of staff (c) Agreeing the job specification The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 17  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) All of the above 160. A solution to a problem that is arrived at through an unstructured process of decision making is called a: (a) Bounded rationality (b) Programmed decision (c) Non-programmed decision (d) Uncertainty 161. As a manager moves to higher positions in an organisation the ability to make ______ becomes ______ important. (a) Programmed; less (b) Non-programmed; more (c) Non-programmed; less (d) Programmed; much more 162. Decision making situations can be categorized along a scale which ranges from: (a) Certainty to risk to uncertainty to ambiguity (b) Certainty to uncertainty to risk (c) Certainty to risk to uncertainty (d) Uncertainty to certainty to risk 163. Maslow in his hierarchy has not considered: (a) psychological needs, (b) security needs, (c) wealthy needs, (d) existence needs. 164. The features of leadership do not include: (a) representation, (b) initiation, (c) planning, (d) motivation 165. Leadership has a lot of characteristics and a leader must not maintain this trait in his behaviour: (a) coexistence, (b) taking responsibility, (c) avoiding responsibility, (d) All of the above. 166. Which of the following statements about leadership is false? (a) Leadership does not necessarily take place within a hierarchical structure of an organisation. (b) Not every leader is a manager. (c) When people operate as leaders their role is always clearly established and defined. (d) All the above. 167. Contingency theories of leadership are based on the belief that: (a) there is no single style of leadership appropriate to all situations. (b) there is a single style of leadership appropriate to all managers. (c) there is a single style of leadership appropriate to all situations. (d) none of the above. 168. Another contingency model of leadership is the path-goal theory. This suggests that subordinates will see leadership behaviour as a motivating influence if: (a) path-goal relationships are clarified. (b) their effective performance will satisfy their needs. (c) the necessary direction, guidance, training and support is provided. (d) all the above. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 18  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 169. When determining the most appropriate form of leadership, which of the following should be considered? (a)The manager. (b) The work environment. (c) The group. (d) All the above. 170. The following phrase is used to describe a leader: (a) relies on control strategies (b) challenges status quo (c) uses traditional influence (d) acts with established culture (e) maintains and allocates resources 171. The "means" of leadership involve (a) getting results through others. (b) the ability to build cohesive, goal-oriented teams. (c) the process of influencing an organized group toward accomplishing its goals. (d) an interpersonal relation in which others comply because they want to, not because they have to. 172. Which of the following is a leadership trait? (a) Dominance (b) Energy (c) Cognitive ability (d) All responses are leadership traits 173. Which of the following statements is false about the behavioral theories of leadership? (a) Consideration is a people-oriented dimension of leadership behavior (b) Production-centered leader behavior focuses on tasks and has little concern for people (c) Leaders high in initiating structure do not set deadlines or make individual task assignments (d) Employee-centered leader behavior focuses on people and the quality of the social system. 174. Maslow and Herzberg are two examples of ___________ theories of motivation. (a) process (b) content (c) expectancy (d) equity 175. Maslow suggests that human needs are arranged in a series of levels, a hierarchy of importance. Which of the following statements are relevant to Maslow's hierarchy of needs theory? (a) The hierarchy is not necessarily in a fixed order. (b) A satisfied need is no longer a motivator. (c) A need is not necessarily fully satisfied before a subsequent need arises. (d) All of the above. 176. According to Herzberg, which of the following may be regarded as hygiene/maintenance factors? (a) Sense of achievement. (b) Recognition. (c) Personal growth and advancement. (d) None of the above. 177. Which of the following statements is true about the goal theory of motivation? (a) People with easier goals will perform better than people with difficult goals. (b) A person's level of commitment to a goal will not regulate the level of effort expended. (c) People with difficult goals will perform better than people with easier goals. (d) Research has shown that there is little support for the goal theory and its effects on motivation with regard to the relationship between goal-setting and performance. 178. Douglas McGregor's view that suggests that employees will exercise self-direction and self-control when they are committed to the objectives of the work is called: (a) Theory B (b) Theory X (c) Theory Y The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 19  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) Theory A 179. Which step in Maslow's Hierarchy of Needs Theory deals with achieving one's potential? (a) Esteem (b) Physiological (c) Self-actualization (d) Social 180. Which of the following would be classified by Herzberg as a hygiene factor? (a) Achievement (b) Promotion (c) Responsibility (d) Company policy 181. Who proposed that achievement, affiliation and power are three important needs that help explain motivation in workplace situations? (a) McClelland (b) Herzberg (c) Alderfer (d) Maslow 182. Company policy, administration, supervision, interpersonal relations, working conditions, and salary are characterized as: (a) Achievement factors (b) Growth factors (c) Motivating factors (d) Hygiene factors 183. An employee's experiences in a situation or position outside his or her current organization is a referent comparison called: (a) Self-outside (b) Other-inside (c) Other-outside (d) Self-inside 184. Theory X suggests that employees: (a) Like their manager (b) Dislike work (c) Dislike their manager (d) Like work 185. What three words define motivation? (a) Intensity, direction, persistence (b) Fairness, equity, desire (c) Desire, persistence, fairness (d) Ambition, direction, intensity (e) Persistence, fairness, ambition 186. As a well-educated and highly esteemed businesswoman, Delores feels she has accomplished a great deal in her life. She decides that she would like to give back to the community, so she makes a sizable endowment to the local conservatory. She is also using her professional influence to draw the public's attention to the needs of children who have cancer. Abraham Maslow would probably say that Delores has reached the __________________ stage of his need hierarchy. (a) esteem (b) cognitive (c) aesthetic (d) self-actualization 187. Which of the following statements is false about the hierarchy of needs theory (Maslow)? (a) Chronic frustration of needs has no ill effects (b) The next higher-level need can become important, while a lower level is only partially satisfied (c) Needs are not the only basis of human behavior (d) A satisfied need is no longer a motivator The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 20  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 188. Each of the following statements about the hierarchy of needs theory (Maslow) is true except (a) A satisfied need does not motivate behavior (b) People progress through the hierarchy in the same order without exception (c) Behavior can focus on satisfying more than one need at a time (d) The environment can affect behavior 189. Which of the following is false about motivator — hygiene theory (Herzberg)? (a) Motivators include achievement and the work itself (b) Empirical research strongly supports the theory (c) Dissatisfiers and satisfiers fall on two different continua (d) Company policies are a hygiene factor 190. Contingency theory of leadership are based on the belief that (a) There is no single style of leadership appropriate to all situations (b) There is a single style of leadership appropriate to all situations (c) There is a single style of leadership appropriate to all managers (d) None of the above. 191. What does ERG stands for (a) Effective, readiness and growth (b) Expectancy, real and exist (c) Existence, relatedness and growth (d) Excellent relationship and growth. 192. Theory X suggests that employees (a) Dislike work (b) Dislike managers (c) Like work (d) None of the above. 193. Changes in behavior as a result of observation and manipulation of conditions in an environment are termed: (a) the Hawthorne effect (b) group dynamics (c) social influence (d) sociometry. 194. Members within a group that share similar experiences and feelings are known to have: (a) process (b) universality (c) content (d) conflict. 195. An important factor of the preplanning stage in group dynamics is determining what the group is to accomplish; this is known as ________________________. (a) goal setting (b) cohesion (c) clarity of purpose (d) group orientation 196. ____________ groups have members who have similar presenting problems or are similar in gender, ethnicity, or social background (a) Heterogeneous (b) Ideal (c) Dynamic (d) Homogeneous 197. Role _________________ is a conflict between the role an individual has outside the group and the role he or she is expected to have in the group. (a) collision (b) transition The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 21  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) confusion (d) incompatibility. 198. Which one of the following characteristics is not necessarily true about groups? (a) Group members are interdependent (b) Groups have two or more members (c) Groups have assigned goals (d) Groups interact. 199. What sort of groups is defined by the organization’s structure? (a) informal (b) task (c) friendship (d) formal 200. When do informal groups appear? (a) in response to the need for social contact (b) in reaction to formal groups (c) as a result of social needs (d) most frequently in bureaucracies 201. Which of the following statements is true? (a) All task groups are also command groups (b) All command groups are also task groups (c) All task groups are also friendship groups (d) All command groups are also informal groups 202. As per Cartwright which of the following characteristics of a group is a means for overcoming resistance to change (a) Incentives (b) Coercion (c) Education (d) Strong sense of belonging. 203. Each statement below is true about conflict and conflict management in organizations except (a) Conflict management includes both increasing and decreasing conflict (b) Conflict is necessary for organizational survival (c) Conflict management is not a basic management responsibility (d) Conflict includes interactions in which one party opposes another party. 204. Which of the following statements is false about functional and dysfunctional conflict in organizations? (a) Conflict is dysfunctional when it is lower than a group requires for reaching its goals (b) Conflict management does not involve maintaining conflict at functional levels (c) Conflict that is functional in one group can be dysfunctional in another group (d) Dysfunctionally high conflict can reduce trust. 205. All but one of the following statements accurately describe aspects of levels and types of conflict in organizations. Which statement does not? (a) Intraorganization conflict includes all types of conflict between organizations. (b) Interpersonal conflict is conflict between two or more people. (c) Intergroup conflict is conflict between two or more groups. (d) Intrapersonal conflict is conflict that occurs within a person. 206. Each statement below is true about conflict management except (a) Innovative products or services require a higher desired conflict level than more routine products or services (b) If conflict in a work unit is dysfunctionally low, the manager tries to increase conflict (c) A manager's tolerance for conflict can affect the manager's perception of desired conflict levels in a workgroup (d) Desired conflict levels do not vary from one group to another and for the same group over time. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 22  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 207. Which of the following is false about reducing conflict? (a) Compromise uses negotiation to reduce conflict. It splits the differences between the parties in conflict (b) Problem solving usually does not find a conflict episode's root causes (c) Avoidance prevents a person from facing a conflict episode (d) A superordinate goal is a goal desired by all parties to the conflict but not reachable by any party alone. 208. Which of the following does not increase conflict in organizations? (a) Superordinate goal (b) Devil's advocate (c) Heterogeneous groups (d) Organizational culture 209. Which of the following is false about ethical issues in conflict in organizations? (a) Variation in optimum conflict levels among countries (b) Subtle methods of increasing conflict (c) Intrapersonal conflict from requests for immoral acts (d) Conflict higher than a person's tolerance level 210. One of the advantages of conflict is that it forces you to examine problems and work towards a potential __________. (a) Solution (b) Outcome (c) Experience (d) Relationship 211. Conflict that refers to a disagreement among connected individuals is (a) Interpersonal (b) Intrapersonal (c) Friendly conflict (d) Negative conflict 212. The first stage of conflict resolution is to (a) Chose a solution (b) Define the problem (c) Think through possible solutions (d) Analyse the problem 213. Which of the following is conflict resolution skill? (a) Accomodating (b) Passive listening (c) Active listening (d) Avoiding 214. Who considered organization to be similar to the architectural plan of a building? (a) Fayol (b) Weber (c) Newman (d) Taylor 215. Functional foremanship is the concept underlying the following organization (a) Matrix (b) Functional (c) Product (d) Divisional 216. Which nature of organization structure is suitable for aircraft manufacture, aerospace/ construction, consultancy etc? (a) Project (b) Matrix (c) Functional (d) Line The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 23  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 217. Which management principle does matrix organization violate? (a) Unity of command (b) Unity of Direction (c) Espirit de corps (d) Centralization 218. A rapidly changing adaptive temporary system of a group of people with diverse professional skills are known as (a) Line organization (b) Staff organization (c) Matrix organization (d) Free form organization 219. Free form organization is more suitable in............................. environment (a) dynamic (b) stable (c) rigid (d) none of these 220. A concern having textile, chemicals, plastics fertilizers follow departmentation based on (a) process (b) product (c) functions (d) geographical areas 221. The act of entrusting subordinates with the same power that are of the superior is termed (a) Decentralization (b) Centralization (c) Delegation (d) Departmentation 222. _______ applies to the systematic delegation of authority in an organization-wide context (a) Delegation (b) Decentralization (c) Centralization (d) None of the above 223. Authority should be commensurate with responsibility is the best way to achieve (a) Decentralization (b) Communication (c) Control (d) Effective delegation 224. Organization structure deliberately created by the management for achieving the objectives of the enterprise is called (a) Product organization (b) Functional organization (c) Formal organization (d) Informal organization 225. Grapevine is another term used to describe (a) Formal organization (b) Informal organization (c) Product organization (d) Project organization 226. The unofficial and social pattern of human interactions is observed in (a) Formal organization (b) Informal organization (c) Product organization (d) None of these The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 24  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 227. When departmentation is done based on production, sales, financing and personnel, it is termed as (a) Functional departmentation (b) Product departmentation (c) Composite departmentation (d) Customer departmentation 228. A suitable basis of departmentation is decided considering (a) Specialization of work (b) Customers (c) Control (d) Top management 229. Organization theory is predominantly _________ and _________ in nature (a) descriptive and normative (b) normative and predictive (c) exploratory and descriptive (d) descriptive and predictive 230. Machine theory has been popularized as (a) Scientific Management (b) Administrative Management (c) Bureaucracy (d) None of these 231. The concept of span of control was propounded by (a) Graicunas (b) Fayol (c) Taylor (d) Mc Gregor 232. Blake and Mouton propounded the concept of (a) Tri dimensional theory (b) Bureaucracy (c) Contingency (d) Managerial grid 233. The Latin term “persona” is used to describe (a) perception (b) personality (c) attitude (d) learning 234. Being outgoing, talkative, sociable, assertive indicated which personality dimention (a) Agreeableness (b) Emotional stability (c) Extroversion (d) Openness to experience 235. An individual’s view of reality is (a) Selection (b) perception (c) interpretation (d) organisation 236. The tendency of judging people on the basis of the characteristics of the group to which they belong is termed (a) attribution (b) projection (c) stereotyping (d) inference The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 25  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 237. The law of exercise in learning is based on (a) classical conditioning (b) operant conditioning (c) Social learning (d) cognitive learning 238. Negative reinforcement involves the threat of (a) Extinction (b) Punishment (c) Criticism (d) None of these 239. According to MASLOW’S Hierarchy of needs theory, human needs are to be arranged in the following hierarchy of importance,________________________________________ (a) Physiological needs>social needs>safety needs>esteem needs > self actualisation needs (b) Physiological needs>safety needs>esteem needs>social needs > self actualisation needs (c) Safety needs>physiological needs>social needs>esteem needs > self actualisation needs (d) Physiological needs>safety needs>social needs>esteem needs > self actualisation 240. Douglas McGregor’s theory X and Theory Y of motivation, proposed two distinct views of human beings, ____________________ (a) Satisfied and dissatisfied (b) Optimistic and pessimistic (c) Positive and negative (d) Happy and sad 241. Which of the following is not an assumption according to theory X, (a) Employees inherently dislike work and, whenever possible will attempt to avoid it. (b) Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals. (c) Employees will avoid responsibilities and seek formal direction whenever possible. (d) Most workers place self actualisation above all other factors associated with work and are highly ambitious. 242. According to Herzberg’s motivation hygiene theory, the opposite of satisfaction is,____________________ (a) Dissatisfaction (b) No satisfaction (c) No dissatisfaction (d) All of the above 243. Victor vroom’s expectancy theory of motivation focuses on three relationships: effort – performance relationship, performance - reward relationship and_______________________ (a) Rewards- organisational goals relationship (b) Performance – organisational goals relationship (c) Rewards – personal goals relationship (d) Performance – personal goal relationship 244. Management by objectives is not a new concept of motivation, it was originally proposed more than 45 years ago by, (a) Peter Drucker (b) Abraham Maslow (c) David McClelland (d) Frederic Herzberg 245. Which of the following is the second stage of group formation, (a) Forming stage (b) Initial integration stage (c) Storming stage (d) None of the above The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 26  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 246. We all know that mainly two types of groups exist in an organisation namely formal and informal. But what are the two types of formal groups in an organisation? (a) Command groups and interest groups (b) Interest groups and task groups (c) Task groups and psychological groups (d) Command groups and task groups 247. A well integrated group is able to disband, if required, when its work is accomplished. This stage is known as, (a) Disbanding stage (b) Disintegration stage (c) Adjourning stage (d) None of the above 248. Organisational culture performs a number of functions within an organisation. Which of the following is not one such function: (a) It creates distinction between one organization and another. (b) It facilitates the generation of commitment to one’s individual self interest only (c) It conveys a sense of identity for organisation members (d) It enhances social system stability. 249. The _________ are perspectives of motivation that identify specific needs that energize behavior. (a) content theories of motivation (b) process theories of motivation (c) equity theory and OB mod theory (d) expectancy theories 250. _________ is attributed with the development of the Two-Factor Theory of motivation. (a) Abraham Maslow (b) David McClelland (c) Frederick Herzberg (d) Stacy Adams 251. Hygiene factors are similar to the _____________ needs identified by the Hierarchy of Needs. (a) higher order (b) three-tiered (c) lower order (d) none of the above 252. Which of the following is a strategic way in which employees strive to reduce inequity? (a) Focus specifically on the behavior in question and attempt to alter it. (b) Maintain the same comparison person as before. (c) Changing their inputs and/or outcomes (d) None of the above. 253. Which theory is considered to deal with consequences? (a) Reinforcement Theory (b) Two-Factor Theory (c) Equity Theory (d) Hierarchy of Needs Theory 254. Which of the following is/are a recommendation(s) to prevent the potential side effects of punishment? (a) Focus specifically on the behavior in question. (b) Always punish in private. (c) Specify alternative behaviors that will prevent mistakes from being repeated. (d) All of the above. 255. Which motivation theory focuses on establishing future performance targets? (a) Goal theory (b) Reinforcement theory (c) Equity theory The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 27  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) None of the above 256. Jackson is a line worker for the local clothing manufacturer. Even though he does not possess an official title or a private office, Jackson is more than willing to give his complete dedication to assisting the organization in achieving its mission of producing a quality product. This willingness to pursue an organizational goal is a demonstration of _____________. (a) motivation (b) positive reinforcement (c) goal commitment (d) goal setting 257. Which of the following is/are suggested for a successful management by objectives program? (a) Establish a time frame for achievement (b) Establish performance targets (c) Prioritize goals (d) All of the above 258. Which theory of motivation starts with an assumption that employees are rational? (a) Goal setting theory (b) Expectancy theory (c) Reinforcement theory (d) Herzberg's Two-Factor theory 259. The desired "performance” of skill acquisition is attributable to ___________. (a) expectancy theory (b) reinforcement theory (c) skill-based pay programs (d) none of the above 260. Wide range of abilities and attributes possessed by people are called as (a) Management (b) Human Resources (c) Entrepreneur (d) Intreprenuer 261. The focus of Human Resource Management revolves around (a) Machine (b) Motivation (c) Money (d) Men 262. Quality goals require alignment with (a) Production (b) Human Resources (c) Finance (d) Purchase 263. Demand for human resources and management is created by (a) Expansion of industry (b) Shortage of labour (c) Abundance of capital (d) Consumer preferences 264. Union function arises as a result of employees (a) Problem of communication (b) Longing for belonging (c) Dissatisfaction (d) Change in technology The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 28  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 265. Human Resource Management is primarily concerned with (a) Sales (b) Dimensions of people (c) External environment (d) Cost discipline 266. Human Resource Management aims to maximize employees as well as organizational (a) Effectiveness (b) Economy (c) Efficiency (d) Performativity 267. The difference between human resource management and personnel management is (a) Insignificant (b) Marginal (c) Narrow (d) Wide 268. Human Resource Management function does not involve (a) Recruitment (b) Selection (c) Cost control (d) Training 269. Which one is not the specific goal of human resource management? (a) Attracting applicants (b) Separating employees (c) Retaining employees (d) Motivating employees 270. Identify the top most goal of human resource management (a) Legal compliance (b) Competitive edge (c) Work force adaptability (d) Productivity 271. To achieve goals organizations require employees (a) Control (b) Direction (c) Commitment (d) Cooperation 272. Human resource management helps improve (a) Production (b) Productivity (c) Profits (d) Power 273. The amount of quality output for amount of input means (a) Productivity (b) Production (c) Sales increase (d) Increase in profits 274. Responding to employees and involving them in decision making is referred to as (a) Quality of work life (b) Autonomy (c) Empowerment (d) Preaction 275. Within an organisation, leadership influence will be dependent upon the type of ________ that the leader can exercise over the followers. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 29  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (a) Knowledge (b) Power (c) delegation (d) friendship 276. Legitimate power is based on the subordinate's perception that the leader has a right to exercise influence because of the leader's (a) role or position within the organisation. (b) expertise and knowledge. (c) personal characteristics and personality. (d) ability to punish or reward. 277. Needs such as training the group, setting standards and maintaining discipline, and appointing sub-leaders may be called (a) task functions. (b) individual functions. (c) work functions. (d) team functions. 278. Contingency theories of leadership are based on the belief that (a) there is a single style of leadership appropriate to all managers. (b) there is no single style of leadership appropriate to all situations. (c) there is a single style of leadership appropriate to all situations. (d) none of the above. 279. Another contingency model of leadership is the path-goal theory. This suggests that subordinates will see leadership behaviour as a motivating influence if (a) path-goal relationships are clarified. (b) the necessary direction, guidance, training and support is provided. (c) their effective performance will satisfy their needs. (d) all the above. 280. Culture refers to (a) gender equality. (b) race or nationality. (c) the specialized lifestyle of a group of people. (d) genetic similarities. 281. The transmission of culture from one generation to another is called (a) culture shock. (b) acculturation. (c) individualistic. (d) enculturation. 282. The process by which one learns the norms of a culture different from your native culture is (a) culturation. (b) acculturation. (c) interculturation. (d) multiculturalism. 283. Low power distance cultures include (a) Iceland, Australia, Sweden and the U.S. (b) Denmark, New Zealand, Sweden and the U.S. (c) India, Morocco, Brazil and the Philippines. (d) India, Brazil, China and the Philippines. 284. In a masculine culture, men are viewed as (a) weak, marginal and ineffective. (b) assertive, oriented to material success and strong. (c) incredible, strong and assertive. (d) strong, sensible and funny. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 30  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 285. In a feminine culture, both men and women are encouraged to be (a) tender, modest and forgiving. (b) assertive, oriented to material success and strong. (c) modest, oriented to maintaining the quality of life and tender. (d) tender, intelligent and forgiving. 286. An individualist culture promotes (a) benevolence. (b) tradition. (c) competition. (d) conformity. 287. Culture shock is (a) a physiological reaction that can occur when experiencing a culture for the first time. (b) the honeymoon period experienced when introduced to a different way of life. (c) a psychological reaction that can occur when overexposed to a culture different from your own. (d) a psychological reaction that can occur when experiencing a culture for the first time. 288. Intercultural communication occurs when (a) those with different cultural beliefs, values or ways of behaving communicate with one another. (b) different ethnic backgrounds meet. (c) different cultural beliefs cause conflict. (d) different races gather for conferences and seminars. 289. A low context culture is one where (a) most of the information is explicitly stated in the verbal message. (b) most of the information is nonexistent. (c) most of the information is unspoken. (d) most of the information is apparent. 290. A high context culture is one where (a) much of the information is spoken. (b) much of the information is in the context or in the person. (c) most people use sign language. (d) much of the information is unspoken. 291. In which type of culture is competition encouraged? (a) Ethnocentric culture (b) Selfish culture (c) Individualist culture (d) Collectivist culture 292. When people who study communication focus their attention on spoken symbolic interaction, their primary interest is in which of the following? (a) The unspoken body language that people use (b) The way people use words to create common meaning (c) All of the ways organisms (including non-human organisms) create meaning (d) The unintentional behaviors that accompany speaking 293. The essential components of communication are (a) source, message, interference, channel, receiver, feedback, environment, and context. (b) symbols, understanding, communication, and communicant. (c) symbols, understanding, purpose, ideas, opinions, nonverbals, and reaction. (d) source, destination, interaction, and correlation. 294. The primary channels that individuals use to communicate with others are (a) television and radio. (b) voice mail, conventional mail, and e-mail. (c) sight and sound. (d) touch and tone of voice. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 31  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 295. A component in the communication process that we often send without being aware of it is (a) verbal communication. (b) an encoded message. (c) feedback. (d) a message sent via touch. 296. The context of an interaction includes two major components (a) a business proposal and a personal friendship. (b) the physical setting and the encoding. (c) the supportive climate and the defensive climate. (d) the physical setting and the psychological climate. 297. Which aspect of a message focuses on new information or ideas? (a) channel (b) content (c) relationship (d) Context 298. Which of the following is the definition of a speech act? (a) People who share common attitudes toward speech (b) An identifiable sequence of speech activity (c) The purpose served by a given form of talk (d) A clearly marked occasion that calls for speech 299. The idea that "communication is a process of adjustment" means that (a) people have to learn each other's meanings for words, as well as their nonverbal behaviors during communication. (b) people will adapt to others' attitudes and speech while communicating. (c) both the content and relational dimensions of a message can change during communication. (d) people usually engage in complementary transactions during communication. 300. Which of the following approaches to Human Resource Management suggests that treating employees with respect would improve employee satisfaction and help in achieving higher productivity? (a) Technical Management Approach (b) Human Accounting Approach (c) Human Relations Approach (d) Scientific Management Approach 301. Which of the following tests measure an individual’s ability to learn a given job, when adequate training is given and do not test the knowledge or proficiency possessed by the individual? (a) Interest tests (b) Achievement tests (c) Situational tests (d) Aptitude tests 302. Which of the following concept refers to attributing an appropriate value to the worth of human resources in the organization? (a) Human resource planning (b) Human resource accounting (c) Human resource development (d) Human resource management 303. The employment agencies in which fresh graduates and technicians in search of suitable employment would first register themselves are known as (a) Global agencies.. (b) Private agencies. (c) Local agencies. (d) Public or state agencies The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 32  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 304. Which of the following cannot act as a force for change? (a) Technology (b) World politics (c) Decreasing skills set (d) Social 305. Activities related to change which are intentional and goal oriented are termed as? (a) Planned change (b) Second order change (c) First order change (d) Change agent 306. If an organization used an outside consultant as opposed to an insider as change agent, the result would probably be: (a) More cautious and thoughtful. (b) More reflective of the organization’s history and culture. (c) More objective. (d) Reflective of the fact that change agents must live with the consequences of their actions. 307. The most relevant disadvantage of using outside consultants as change agents is: (a) The cost. (b) Internal members do not accept external recommendations. (c) They do not have to live with the repercussions after the change. (d) They cannot offer an objective perspective 308. Resistance to change is positive since: (a) It provides a degree of stability to behavior and productivity. (b) Without some resistance, OB would take on characteristics of chaotic randomness. (c) Resistance can be a source of functional conflict. (d) All of the above 309. It is easiest for management to deal with resistance when it is: (a) Overt. (b) Subtle. (c) Passive. (d) Implicit. 310. Give an example for individual resistance to change? (a) Group inertia. (b) Structural inertia. (c) Habit. (d) Threat to expertise. 311. Which of the following is not a source of individual resistance to change? (a) Habit (b) Security (c) Fear of the unknown (d) Structural inertia 312. Which is not a source of organizational resistance to change? (a) Structural inertia. (b) Security. (c) Limited focus of change. (d) Threat to established power relationships 313. Which one of the following is not a tactic for dealing with resistance to change? (a) Cooperation (b) Manipulation (c) Participation (d) Negotiation The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 33  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 314. Using covert influence to overcome resistance to change is called: (a) Participation. (b) Cooptation. (c) Manipulation. (d) Coercion. 315. The application of direct threats or force upon resisters is called: (a) Power. (b) Cooptation. (c) Manipulation. (d) Coercion. 316. Politics suggest that the impetus for change is more likely to come from: (a) Outside change agents. (b) Employees who are new to the organization. (c) Managers slightly removed from the main power structure. (d) All of the above 317. Who developed a three-step model for change that included unfreezing, movement, and refreezing? (a) Mary Parker Follett (b) David McClelland (c) Kurt Lewin (d) Chester Barnard 318. _____ is a change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. (a) Organizational development (b) Action research (c) Sensitivity training (d) Process consultation 319. William Marsteller once said that, "Communication is not just words, paint on a canvas, math symbols, or the equations and models of scientists; it is the interrelations of human beings trying to escape ________, trying to share experience, trying to implant ideas." (a) Loneliness (b) Compartmentalization (c) Boredom (d) Their own cages 320. Communication is the __________ or accidental transfer of meaning. (a) Unintentional (b) Deliberate (c) Strategic (d) Conscientious 321. Intrapersonal communication is best defined as: (a) The relationship level of communication. (b) Interactions with a limited number of persons. (c) Communication designed to inform or persuade audience members. (d) Communication with the self. 322. Public communication can best be defined as: (a) Communication designed to inform or persuade audience members. (b) The relationship level of communication. (c) Interactions with a limited number of persons. (d) Communication with the self. 323. The communication process has several elements. Of these, what is the "content of a communicative act?" (a) Message (b) People (c) Channel (d) Noise The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 34  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 324. Feedback, one of the more important parts of the communication process, comes in many varieties. Of those listed below, which is "a behavior enhancing response?" (a) Positive feedback (b) Negative feedback (c) Internal feedback (d) External feedback 325. There are two (2) crucial characteristics of communication. First, communication is dynamic; the elements of the process are always affecting each another. Second, communication is unrepeatable and ___________. (a) Unrecognizable (b) Irreversible (c) Distinct (d) Reversible 326. To become more adept at communicating with persons who are culturally different from ourselves, we need to learn not only about their cultures, but about ___________. (a) Their various subcultures (b) Our own culture (c) Their religion (d) Their language 327. Cultural pluralists advocate adherence to the principle of …... (a) High-text communication (b) Low-text communication (c) Cultural relativity (d) Ethnocentrism 328. Demographers tell us that _________ will shape our country's future. (a) Ignorance (b) Diversity (c) Individualism (d) Conformity 329. To communicate interculturally, it is important to limit one's reliance on ___________. (a) Stereotypes (b) Technology (c) Friendship (d) Media 330. It is important to ____________ the communication rules of other cultures to communicate effectively. (a) Debate (b) Restructure (c) Challenge (d) None of the above 331. Which of the following is not a norm? (a) Participation (b) Hunger (c) Positive Attitude (d) Confidentiality 332. Which of the following is not an example of group influence on an individual? (a) minority influence. (b) deindividuation. (c) social facilitation. (d) social loafing. 333. Social facilitation is the term used to describe the tendency for the presence of others (a) to affect our likelihood to help. (b) to either enhance or impair performance. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 35  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) to make a person act more extroverted. (d) to make a person act more introverted. 334. What is the term used to describe when a person's identity and self-awareness are diffused by being in the presence of a group, and a person might act in an unrestrained manners? (a) deinstitutionalization. (b) deindividuation. (c) decineration. (d) declination. 335. Group polarization occurs when (a) members in a group interact, but, instead of changing their minds about a topic, they keep their original ideas and strengthen those ideas. (b) the group members do not interact, and the members reverse their decisions to the opposite point of view. (c) social loafing is strong and deindividuation is weak. (d) the members in a group interact, and based upon what they hear, they discard their original ideas in favor of the other group members' ideas. 336. Which researcher coined the term "groupthink"? (a) Leon Festinger (b) Norman Triplett (c) Irving Janis (d) Irwin Yalom 337. Groupthink is used to describe (a) the positive aspects that occur when a group works together. (b) group dynamics that can interfere with group decision-making processes and can produce disastrous results. (c) when group members have in-jokes and give each other knowing glances. (d) when group members are on the same wavelength and complete each other’s sentences. 338. Research on working in pairs, teams, or in groups has shown that (a) collaborations are never productive. (b) teamwork is never as good as working alone. (c) group problem solving tasks always dilute original ideas. (d) collaborations can be productive. 339. Minority influence can (a) never sway the majority of the group members to the other point of view. (b) steer other group members who hold the majority view over to the minority point of view. (c) decrease creativity. (d) increase superficiality. 340. It is through ______________ that group members can be inspired, motivated, and guided to be successful and productive. (a) fellowship (b) sportsmanship (c) Coercion (d) leadership 341. Which style of leadership focuses on goals, standards, and organization? (a) task leadership (b) social leadership (c) semantic leadership (d) transformational leadership 342. Which style of leadership focuses on team building, conflict resolution, and morale? (a) surrogate leadership (b) social leadership (c) transparent leadership (d) task leadership The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 36  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 343. The transformational leadership style (a) Encourages group members to transform themselves into better people. (b) Strives to change the group members' opinions by showing them a better way to think. (c) changes opinions and attitudes without changing behaviors. (d) Encourages and inspires group members to go above and beyond selfish interests and do what is best for the common good of the group as a whole. 344. Social comparison theory is offered as one explanation for ______________. (a) group polarization (b) pluralistic ignorance (c) summation polarity (d) group adhesion 345. Influencing others to work willingly toward achieving the firm’s objectives is: (a) Organizing (b) Motivation (c) Leadership (d) Management 346. Effective leadership reflects a balance of: (a) Traits and skills (b) Leadership styles or behaviors (c) Situations and influences (d) a and b 347. Traits or skills on which leaders differ from non-leaders include: (a) Honesty and integrity (b) Self-confidence (c) Drive and the desire to lead (d) All of the above 348. Sources from which leaders derive power include: (a) Position held (b) Authority to reward or punish (c) Expert knowledge (d) All of the above 349. A leader’s people oriented functions include: (a) Reducing tension and boosting morale (b) Making the job more pleasant (c) Defending the group’s values, attitudes and beliefs (d) All of the above 350. Leaders that focus on the individuality and personality needs of their employees and emphasize building good interpersonal relationships are: (a) Job centered (b) Laissez-faire (c) Employee oriented (d) Consideration oriented 351. Leaders that focus on production and the job’s technical aspects are: (a) Job centered (b) Laissez-faire (c) General (d) Autocratic 352. The extent to which a leader lets followers make decisions themselves rather than making the decisions for them is focused on by _______________ leadership styles. (a) Laissez-faire and general (b) Participative and autocratic (c) Employee-oriented and job-centered (d) Laissez-faire and close The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 37  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 353. ______________ leaders solve problems and make decisions alone. (a) Laissez-faire (b) Job-centered (c) Autocratic (d) Situational 354. Leaders who enlist the help of subordinates as a group to solve problems is: (a) Situational (b) Laissez-faire (c) Participative (d) Employee-oriented 355. A leader uses _____________ when giving the individual or group the authority and responsibility to make a decision. (a) Consultation (b) Laissez-faire (c) Joint decision (d) Delegation 356. Advantages of participative decision making include: (a) Employees set higher goals for themselves (b) More points of view are offered (c) Participants buy into the final decision (d) All of the above 357. Whether a leader is charismatic is determined by: (a) Follower perceptions (b) Context of the leadership situation (c) Individual and collective need of followers (d) All of the above 358. The “fix” style of leadership depends upon the: (a) Nature of the task (b) Capabilities of employees (c) a and b (d) All of the above 359. Identify the best definition of planning (a) An integrated process in which plans are formulated carried out and controlled. (b) Setting an organization’s objectives and the means of reaching them. (c) Devising ways of achieving the objectives of an organisation. (d) The core activity of planners and planning departments. 360. What is planning horizon? (a) The distance ahead for the forecasts on which plans are made. (b) The maximum time for which managers can make plans. (c) The time between making a plan and putting it into effect. (d) The time ahead for which there is no information. 361. What three problems commonly hindering successful planning did we identify? (a) Procedures unsuited to change; negative organisational culture; poor interpersonal relationships. (b) Lack of planning expertise; little top management support; misuse of planning specialists. (c) An oversized planning department; poor co-operation between managers and planners; managers with little time to gather information. (d) Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends. 362. What is the more formal term for what is known as 'Plan B'? (a) A contingency plan. (b) A convergence plan. (c) A circumstantial plan. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 38  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (d) A crisis plan. 363. What is the duty to act according to the authority that has been given? (a) Professionalism (b) Delegation (c) Responsibility (d) Probity 364. What are the three themes found in the choice of organisational divisions? (a) Growth, specialization and co-ordination (b) Products, customers and geography (c) Hierarchy, level and chain of command (d) Size, diversity and independence 365. In which organisational form are there dual or multiple lines of authority? (a) Multidivisional (b) Decentralised (c) Network (d) Matrix 366. Which concept does personality represent? (a) zero concept (b) whole concept (c) full concept (d) empty concept 367. Which determinant of personality determines the actual learning of a person? (a) biological (b) social (c) culture (d) situational 368. Who divided in two types -(tough minded and tender minded) to judge the personality? (a) william james (b) luthans (c) spranger (d) murray 369. What are the three kinds of personality according to Jung? (a) extrovert, talkative, ambivert (b) introvert lazy talkative (c) extrovert, introvert, ambivert (d) talkative,ambivert,lazy 370. Who classified people in terms of values? (a) jung (b) spranger (c) luthans (d) carl rogers 371. Alport makes a distinction between which two traits? (a) a.common and uncommon traits (b) uncommon and personal traits (c) common traits and personal disposition (d) d.tough traits and common traits 372. What are the two traits according to catell's trait theory? (a) surface and base trait (b) surface and source trait (c) base and source trait (d) source and end traits The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 39  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 373. What are more traditional concepts of explaining human behavior? (a) self theory (b) unself theory (c) trait and type theory (d) type and self theory 374. Which theory studys the person-situation ineraction? (a) a.self theory (b) social theory (c) c.trait theory (d) type theory 375. Which of the following is a characteristics of leadership? (a) a function of stimulation (b) a process of leaning (c) process of obeying commands (d) process of getting motivated by others 376. Leadership is the procces whoose important ingridient is the _____________ exercised by the leaders on the group members. (a) friendship (b) loyalty (c) ctrust (d) influence 377. According to louis A allen a leader is a person who____________ other people. (a) guides and directs (b) socializes with (c) participates with (d) tolerates 378. What style does an autocratic leader follow? (a) who consults with people in the group then give instructions (b) One who gives order which must be obeyed (c) who does not lead (d) who does not take any responsibility 379. Why is autocratic leadership considered negetive? (a) people are uninformed,insecued and afraid of the leader (b) leader is extra friendly (c) too much confusion arises (d) very participative 380. A________________ leader is one who gives instruction only after consulting the group. (a) democratic (b) socialist (c) autocratic (d) free rein/laissez faire 381. A ____________ leader avoids power and leaves the group entirely to itself. (a) socialistic (b) democratic (c) autocratic (d) free rein/laissez faire 382. A ___________ leader assumes his function to be fatherly. (a) socialistic (b) democratic (c) paternal (d) free rein/laissez faire 383. System 1 management ,managers make what kind of decisions? (a) employess personal life realted The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 40  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (b) work related (c) socialy related (d) related to society 384. Maslow suggests that needs are arranged in a series of levels, on the basis of importance.In this regard which of the following are relevant to the Maslows Hierarchy of needs theory? (a) A need once satisfied does not motivate an individual (b) Once a need is satisfied it is replaced by another need (c) Needs are same for all individuals (d) All of the above 385. Leaders who inspire their followers to surpass their self interests for the good of the good of the organization are called? (a) Democratic leaders (b) Autocratic leaders (c) Transformational (d) Transactional 386. The term used for defining the number of subordinates under a manager in an organization is called? (a) Span of management (b) Control of management (c) Division management (d) Departmentalization 387. Hygiene factors are similar to ______ needs as identified in the Hierarchy of needs. (a) Lower order (b) Higher order (c) 3Tiered (d) None of the above 388. Which of the following theories are similar to Maslows need hierarchy in terms of how human behavior and motivation are priorities in the workplace to maximize output? (a) Theory X and Thoery Y (b) Mc Clellands theory of human motivation (c) Clayton Alderfers ERG theory (d) Mmanagement by objectives theory 389. ______the ability to influence others that stems from the leaders characteristics (a) Referent power (b) Coersive power (c) Legitimate power (d) None of the above 390. Training is vital and necessary activity in all organisations. It plays a large part in determining the _______________ and ____________ of the establishment (a) Effectiveness and efficiency (b) Effectiveness and smooth running (c) Efficiency and smooth running (d) Efficiency and success 391. Learning by doing is a type of (a) Off the job training (b) On the job training (c) Internship taining (d) Classroom training 392. Planning involves deciding in _________ what is to be done, where , how and by whom it is to be done (a) Respect of (b) Context of (c) Advance (d) Regard to The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 41  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 393. Limitation of planning include : (a) Inaccuracy (b) Time consuming (c) Rigidity (d) All of the above 394. In the top-down approach _____________ takes the initiative in formulating major objectives, strategies policies and derivatives (a) Team (b) Top management (c) Supervisory management (d) None of the above 395. The term budget is usually regarded as a tool of ____________ planning and control (a) Operational (b) Functional (c) Systematic (d) None of the above 396. PERT AND CPM are ___________________ (a) Network techniques useful for planning (b) Tools of forecasting (c) Both a and b (d) None of the above 397. Organisational plans for handling non repetitive, novel and unique problems are known as ________ (a) Standing plans (b) Single use plans (c) Both of the above (d) None of the above 398. Setting goals and objective is the first step in the __________________ process (a) Planning (b) Strategic planning (c) Organising (d) Staffing 399. Felt conflict is : (a) When people perceive that conflictful conditions exist (b) When conflict promoting conditions appear (c) When people feel there is conflict (d) None of the above 400. Coalition is a combination of two or more organisations who without losing their respective identities work for a _______ (a) General purpose (b) Specific purpose (c) Common purpose (d) All of the above 401. Internal sources of recruitment are (a) Promotion (b) Transfer (c) Apprentices (d) All of the above 402. Fundamentals of principles of scientific management include (a) Rule of thumb (b) Harmony in group (c) A and b (d) None of the above The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 42  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) 403. Unity of command means that a person should get orders and instructions from (a) Multiple people (b) Only one superior (c) Any of his superior (d) Peers 404. Advantage of forecasting include (a) Important for planning (b) Coordination of activities (c) Achievement of objectives (d) All of the above 405. Employee walk-ins is a type of (a) Internal source of recruitment (b) External source of recruitment (c) Both of the above (d) None of the above 406. Lectures, conferences, role playing is a kind of (a) On the job training (b) Off the job training (c) Both of the above (d) None of the above 407. Functions of a supervisor is to (a) Communicate orders (b) Enforce safety (c) Handle grievances (d) All of the above 408. PODSCORB stands for (a) Planning organising staffing directing controlling reporting budgeting (b) Planning organising staffing directing controlling rectifying budgeting (c) Planning ordering staffing directing controlling reporting budgeting (d) Planning organising staffing directing controlling recruiting budgeting 409. Decentralisation is a disadvantage due to (a) Growth and diversification (b) Lack of uniformity (c) Executive development (d) All of the above 410. Directing the employees includes (a) Supervising employees (b) Leading employees (c) Both a and b (d) None of the above 411. Need for planned change arises due to (a) Market situation (b) Technology (c) Deficiency in existing system (d) All of the above 412. Resistance to change is due to (a) Status quo (b) Fear of unknown (c) Both a and b (d) None of the above 413. Changes in environment can be (a) Economic (b) Sociological The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 43  Paper 1 – Fundamentals of Organization and Management (Syllabus 2008) (c) Technological (d) All of the above 414. Select the CORRECT sequence of organization behavior modification process (a) Identify, Measure, Analyze, Intervene and Evaluate (b) Analyze, Measure, Identify , Intervene and Evaluate (c) Identify, Measure, Intervene, Analyze and Evaluate (d) Both (b) and (c) 415. Which of the following connectionist theories is used in associating an unconditioned stimulus with a conditioned one to get a response which is conditioned? (a) Classical conditioning (b) Negative conditioning (c) Instrumental conditioning (d) Cognitive conditioning 416. The process by which people try to manage or control the perceptions formed by other people about themselves is called : (a) perceptual management.. (b) impression management. (c) group management. (d) perceptual grouping 417. Which of the following perception sub processes involves, making note of the stimulus received from the environment by an individual? (a) Sensation (b) Interpretation (c) Registration (d) Confrontation 418. Creating a general impression about an individual based on a single characteristic, such as intelligence, appearance sociability etc. is known as (a) stereotyping (b) halo effect. (c) attribution. (d) parity effect. 419. Which of the following factors influence perception? (a) Power, Affiliation and Motivation (b) Needs, Drives and Incentives (c) The Perceiver, the Target and the Situation (d) The Perceiver, the Risk Taking and the Incen