15.

True or False questions

Control:
1. Control functions are intended to ensure that nobody makes any mistakes in the organisational
processes.
False: Control is intended to ensure that planned performance is equal to actual performance. It
always helps a manager to focus attention on what is going on in the organisation and helps to
compare ongoing activities with pre-determined activities.
2. Control is an intellectual exercise whereas planning is an administrative function.
False: Planning is an intellectual exercise and control is action and result oriented one.
3. Planning and control are two sides of the same coin.
False: Planning and control are the two processes which enable the organisation to achieve its
objectives. Together, they create an order for the organisation.
4. Control by exception is not a healthy organisational principle.
False: Control by exception is widely practiced by many managers in the organisation. It means that
managers at each level should pay attention only to exceptional and signifcant deviations from
planned results. They need not consider deviations of unimportant matters and processes.
5. Top level managers alone need MIS.
False: Managers at all levels need MIS. Without correct information it is not possible for any manager,
at any level, to make any decision.
6. Controls should be fexible.
True: If controls are to remain efective, they must be fexible. For example, instead of establishing
budget for one level of activity, fexible budgets should be designed for diferent levels of production.
7. MIS is designed only to transmit information from one manager to another.
False: MIS is an organisation wide arrangement whereby relevant information needed by managers at
any level for decision making and other related purposes is generated, stored and made available to
them. Such information will be provided to external parties to also.
8. Zero based budgets are worked out as if a program was started from scratch.
True. Budget for each activity is not based on some increase/decrease of previous years budget but
based on, as if an activity is started afresh. It takes into account, the current constraints in resources
that are variable.
9. Marginal analysis is the comparison of additional revenues arising from additional costs.
True: If the objective is to get maximum profts, at least additional revenue should be equal to
additional costs.
10. Break-even analysis is possible even without the use of breakeven chart.
True: Break-even analysis is a tool of cost-volume-proft analysis of a company. Break-even point can
be calculated with the help of a formula i.e. without using graphical representation.
11. Budgets are highly infexible.
False: Budgets can be classifed as fexible and fxed. Fixed budgets are prepared on the assumption
of single level activity where as fexible budgets are prepared on the assumption of a range of
variations in the level of activity.
Organisation & Management__________________________________________15.1
Master Minds [From Jr.Inter to CA/CWA/CS Final]
12. The premises of Zero Base Budgeting and traditional budgeting are basically the same.
False: For the preparation of ZBB, we have to start from scratch. On the other hand the traditional
budget is always prepared on the basis of what has been done in the previous years.
13. Total Sales Revenue (TR) = Proft (P) (Total Fixed Cost + Total Varying Cost)
False: The correct equation is, P = TR (TFC + TVC)
14. Management audit makes critical review of the quality of management.
Partially true: This statement is partially true. Management audit generally aims at evaluating the
managerial processes. It involves auditing of decision making process and efective utilization of
scarce resources of the organisation.
15. PERT is an acronym for Performance Efectiveness Review Technique.
False: PERT stands for Programme Evaluation and Review Technique.
16. CPM stands for Critical Performance Management.
False: It stands for Critical Path Method.
17. Management Audit is nothing but appraisal of Financial Performance of the organisation.
False: Management audit helps us to know whether the organisation is achieving its objectives or not.
It also helps us to know the efective utilization of scarce resources. Management audit also includes
evaluation of managerial decision making and its efectiveness. Thus management audit is more than
fnancial appraisal.
Decision Making:
1. Maintenance of Machinery is a Programmed decision.
True: A Programmed decision is applied to routine problems. Maintenance team will have a schedule
of maintenance of machines and it is given to them well in advance. Thus it is a programmed decision.
2. Qualitative factors need not be considered in decision making because they cant be built into
Quantitative Analysis.
False: Qualitative factors cant be measured in numerical terms but in making a decision they should
be considered. For example, a well formulated marketing plan may become inoperative because of a
long transportation strike.
3. All management decisions require research and analysis.
False: Decisions of less importance do not require research and analysis and they can be safely
delegated also. For example, if an employee comes late to ofce, even after warnings, boss can straight
away treat it as half a day or one day leave accordingly.
4. When a decision is made, planning process comes to an end.
False: When a decision is made, planning is not complete because it is necessary to prepare derivative
plans, to support the basic plan.
5. Not much judgement and discretion are needed to implement a programmed decision.
True: These decisions are well structured in advance and are regularly tested for validity. For example,
there is a procedure for receipt of materials, payment of bills, release of budgeted funds etc., which do
not require much judgement.
6. Decision making could be programmed even to complex problems.
Tre Or False______________________________________________________15.!
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True: Programmed decisions are not only suitable for simple problems but also for complex problems.
For example, resource allocation decision can be programmed by means of sophisticated,
mathematical / statistical techniques.
7. Strategic decisions are in a way comparable to Non-programmed decisions.
True: Strategic decisions are those which always have severe implications (Generally made to beat a
competitor). Non-programmed decisions are those which are not made frequently and are taken to
react to a change in the external environment. Both these types of decisions are made under
conditions of uncertainty and partial knowledge or ignorance. In this way both are comparable.
8. In some cases creativity will not be of much help.
True: For example, if some decisions are to be made quickly, to get over some urgent crisis, creativity
may fail and may even be counter - productive. Here decision maker needs the presence of mind and
common sense at a snapshot. Creativity is a time taking process.
9. Before problems can be solved they must be found.
True: Organisations should determine which situations represent problems and which of these problems
should be solved & in which order. Decision making process starts with identifcation of the problem.
10. A manager should decide on every problem that arises in the daily course of business.
False: A manager should not concentrate on all problems. It is important to set priorities among
problems and to give responsibility to subordinates for solving minor problems. Managers must
practice delegation of authority for minor problems.
11. A variable budget includes only variable costs.
False: A variable budget gives details of Revenues and costs for diferent levels of activity. When
production decreases or increases below or above some level, some fxed costs (sometimes variable
cost per unit also) may decrease or increase which should be considered for proft planning.
12. Timeliness and quality of decisions are related.
True: Managers must always try to achieve an appropriate balance between timeliness and quality of
decision. To achieve best results, decisions should be made at the right time.
13. Decisions can be made only under conditions of uncertainty.
False: Decisions can be made under any situation, roughly three situations viz., under conditions of
certainty, under conditions of risk, and under conditions of uncertainty.
14. Decision making is more of an art than science.
False: Decision making is more of a science than an art. The innovations made in Management
Information Systems has made the decision making process more scientifc.
15. Creativity is a divine gift.
False: Creativity can be stimulated and developed through proper training. Knowing diferent ways of
thinking will help to make creative decisions. Thinking diferently is not an inborn quality. It can be
learned.
16. Many organizational problems are not amenable to rational approaches.
True: Decision making cant be completely rational. Just because of these reasons, managers are
expected to be more creative and adopt non-traditional ways of thinking, to achieve the desired
organisational objectives.
17. Brain storming means individual thinking towards a creative solution.
False: Brain storming is a method of generating creative ideas in group sessions, for solving problems.
Organisation & Management__________________________________________15.(
Master Minds [From Jr.Inter to CA/CWA/CS Final]
Group Dynamics:
1. When individuals come together groups come into existence.
False: Collection of individuals does not become a group. Groups come into existence only when the
collection of individuals is able to put a common objective, develop inter-dependence and interaction
among themselves.
2. In organisations, groups can be classifed as small and large groups.
True: There are several ways in which groups can be categorized. One among such classifcation is
small groups and large groups. On the other hand, they can also be categorized as primary &
secondary, formal and informal groups.
3. Informal groups and informal organisations are one and the same.
False: An informal group is a nucleus of informal organisation. An informal organization is a network
of several overlapping informal groups. In fact an informal organisation is a larger entity consisting of
all informal groups in an organisation.
4. There are two dimensions of group behaviour.
True: There are two dimensions of group behaviour i.e. intra-group behaviour and inter-group
behaviour.
5. People are concerned with their status in the organisation.
True: Status in the organisation satisfes the ego need of people. Hence, people look for more status in
the organisation.
Organising:
1.Span of control will be less for an industry like electronics.
True: As the technology improves, subordinates should be properly trained. Thus, a superior has to
spend relatively more time with each subordinate, leading to lesser span of control.
2.Each employee in an organisation should have only one boss.
True: This is nothing but concept of unity of command. In Authority, responsibility and accountability
in superior-subordinate relations, unity of command is to be followed. For example, if an employee
reports to two bosses, confusion may arise.
3.Smaller span of management is always advisable.
True: Span of management denotes the number of subordinates which a manager can directly
control. If there is only small number of subordinates then he can efectively supervise the
performance of the subordinates.
4.Span of Management and confict are related.
When the span of management is large, a manager has to supervise more number of subordinates.
When more number of subordinates are there, interpersonal relations may arise. Further, informal
relationships among subordinates will also arise. Because of these factors, conficts are bound to
arise. Hence in order to avoid conficts, it is always better to have narrow span of management.
5.Formal organisation must be fexible.
True: Formal organisation should not be rigid. It should promote optimal utilization of resources.
6.Lesser the span of control more should be the degree of delegation.
Tre Or False______________________________________________________15.*
"#$ %&'( ) !! *! (55 Cell$ +&*&! *'&',
True: There is a limit to the number of persons, a manager can efectively supervise and make
decisions. Once this limit is passed, authority should be delegated to subordinates, who will make
decisions with in the area of their assigned duties.
7.Number of subordinates a manager can efectively manage depends on subordinate training also.
True: Well trained subordinates not only require less managers time but also less contact with their
managers. Thus a manager will enjoy more span of control.
8.Unity of Command implies that managers issue same instructions to all subordinates.
False: Unity of command means subordinates should not get diferent kinds of commands from
diferent managers.
9.A Supervisor must be physically powerful to command obedience through fear.
False: Supervisor must be empowered with appropriate authority. His subordinates must respect him
for his authority. They must also respect him for his supervisory skills.
10.Organising is fundamental to the process of management.
Organising refers to the process of making orderly determination and arrangement of tasks, functions,
relations and roles necessary in achieving certain goals. Hence it is fundamental.
11.Organising process consists of two sub processes.
True: Organising process consists of diferentiation and integration. Diferentiation is a process of
dividing and sub-dividing a unit of activity or authority. Integration is the process of linking
diferentiated units together, for bringing co-ordination in the functioning of organisation.
12.People are to ft into the structure by adjusting and adopting themselves.
False: The present day researchers in the area of organisational behaviour have indicated that
peoples needs, aspirations, skills & attitudes are important factors to be considered in designing
organisational structure. Therefore, organisation structure should be designed in such a way that
peoples competencies can be utilised in the best possible way.
13.Strategy follows structure.
False: Structure always follows strategy. First, it is important to design the strategy that is suitable for
achieving desired objectives. Then we design the organisation structure in such a way that strategy
can be efectively implemented.
14.Formal authority always fows from top to bottom.
True: All authority rests with the individuals who create the organisation. Hence all authority fows
downward. Every position in the organisation comes into existence in this way only.
15.Authority is always tempered by responsibility.
True: Authority is not absolute. Every position in an organisation is created to perform certain tasks
and to produce results. To enable this positions are given enough authority. Authority and
responsibility always comes together.
16.Delegation of authority is at the core of the process of organisation.
True: All formal authority resides at the top of the organisation. Without delegation, authority will not
fow down. Without authority work cant be done. Hence delegation of authority is must.
17.Delegation is important for top managers to multiply their own efectiveness.
True: When top managers delegate their authority, they need not bother about routine, day to day
organisational matters. Hence they could spare their valuable time on other important aspects. Hence
their efectiveness will increase.
18.Delegation results in reduction of authority.
Organisation & Management__________________________________________15.5
Master Minds [From Jr.Inter to CA/CWA/CS Final]
False: Delegation is a process by which a manager can assign some of his tasks to his subordinates
so that subordinates can exercise authority on behalf of superiors. Through this, the authority of
superior is not reduced but shared with subordinates. Delegation of authority only decreases the
workload of superior.
19.Delegation is a means for management development.
True: Through delegation employees at lower level can improve their management skills. For example
a lower level employee can improve his decision making skills. Automatically management
development takes place.
20.Manager cannot delegate his entire authority.
True: A manager cant delegate his entire authority. He has to retain some authority, to do certain
things which can be done by him only. For e.g. authority to set goals, authority for allocation of tasks,
authority of coordinating individual eforts etc. must be retained by the senior managers.
21.Responsibility can never be delegated.
True: Authority alone can be delegated but not responsibility. If a junior level manager is not able to
produce results, the responsibility for the same should be borne by the senior level managers.
22.Authority can be delegated to anybody in the organisation.
False: Before delegating authority, the nature of job to be done, managerial and psychological
maturity of the person to whom the authority is delegated must be seriously considered.
23.Accountability and responsibility are one and the same.
True: Generally this statement is true. But some management experts are diferentiating these two
concepts. Accountability is defned as managers personal answerability to his position whereas
responsibility is the obligation of a person for the successful completion of his duties.
24.A non-delegating manager will be more efective.
False: A non-delegating manager not only reduces his efectiveness but also fails to develop and utilise
the competencies of his subordinates. Absence of delegation may demotivate the subordinates.
25.Authority vested in a manager should be equal to responsibility assigned to him.
True: If authority is not equal to responsibility, then a manager cant fulfll his responsibilities
efectively. At any cost authority should not be less than responsibility and vice versa. Authority and
responsibility should be co-extensive or commensurate with each other.
26.Authority is the base for all formal organisations.
True: Without authority even a single position cant be created in the organisation. Thus
organizational positions come into existence only is authority is injected into them.
27.Efective authority depends on the consent or acceptance of people.
True: A manager has authority to the extent, his subordinates accepts it or obeys it. For some reason or other,
if subordinates refuse to comply with their managers orders then he will not be able to use that authority.
28.Organizational chart is a two dimensional model of organization structure.
True: Organizational chart shows both horizontal activity structure and vertical authority structure.
The horizontal structure explains how various activities of the organization are diferentiated and
integrated. On the other hand vertical dimension explains how formal authority fows from top to
bottom and how managerial decisions are related to one another.
29.Organizational chart is always vertically diagrammed.
False: In fact charts can be diagrammed in three diferent ways. They are vertical, horizontal, and
circular.
30.Informal organization is also depicted in the organization chart.
Tre Or False______________________________________________________15.'
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False: Organisational chart can show formal organisational structure only. It cant show informal
structure.
31.Infuence is always backed by organisational authority.
False: Infuence is always backed up by individuals competency and his ability to use the resources.
Infuence is multilateral (=depends on many factors). Authority plays a very small role in enhancing
the infuence of managers.
32.Line and Staf dichotomy is obsolete.
True: It is meaningless to segregate organizational activities on the basis of their contribution to the
goals of the organization. Line and staf collectively contribute to the achievement of organizational
objectives and hence the role of line and staf managers is jointly needed for the achievement of
organisational objectives.
33.Staf experts are generally professionals.
True: Staf experts are trained to be scientifc, objective and analytical. They look at problems from a
diferent angle. Thus they are professional.
34.Functional Authority is a small slice of the authority of a line supervisor.
True: If an accounts clerk has applied for leave, it has to be sanctioned by the personnel department.
Generally accounts clerk reports to the accounts chief. But, a slice of this line authority is shared by
the personnel manager. This authority exercised by the personnel department is called functional
authority.
35.Functional authority is of permanent nature.
False: Functional authority is a partial line authority sliced from them and handed over to another
line or staf manager, belonging to diferent department, for carrying out specifc tasks. After which it
is taken back.
36.A staf manager never enjoys line authority.
False: Staf managers enjoy line authority over his subordinates. For example, an accounts manager
can give instructions to the accounts supervisor thus creating superior subordinate relationship.
37.Staf manager advice is merely academic and intellectual in nature.
False: Because this is only the argument of line managers who have confict with the staf.
38.Efectiveness of both line and staf depends upon the services and existence of each other.
True: Both line and staf functions should not clash. They should be complementary to each other.
They are interdependent. This condition is necessary for efective functioning.
39.The need for departmentalization arises once an organisation grows to size beyond the direct
managerial capability of a single individual.
True: In a small organisation, owner can directly supervise all the activities. But as the organisation
grows, he has to diferentiate activities, add new activities, arrange them in such a way that they are
complementary to each other and contribute to organisation goals. Moreover, the number of
subordinates which a boss can manage is limited. So, it is necessary to create more levels of
management and departmentalization of activities.
40.Departmentalisation is not a very important step in the design of an organisation.
False: For designing any structure, departmentalization is an important step. It is a process of
dividing and sub-dividing organisational activities into tasks and jobs.
41.Departmentalisation is done only on the basis of products.
Organisation & Management__________________________________________15.,
Master Minds [From Jr.Inter to CA/CWA/CS Final]
False: The major bases or forms of departmentalisation are: function, process or equipment, product,
customer and geographical locations. Product form is only one among them.
42.Every form of departmentalization has got its own disadvantages.
True: Every form of departmentalization has got its own advantages and disadvantages. That is why
business organisations generally follow mixed form of departmentation. Even three or four bases can
be combined, depending on the convenience.
43.One way of departmentation for educational institution is customer departmentation.
True: Educational institutions ofer regular and extention courses to serve diferent groups of
students. For example, IIMs ofer diferent specializations like fnance, marketing etc. in their
management courses to cater to the diferent needs of students.
44.Decentralisation and delegation are related to one other.
True: Decentralisation occurs when delegation is done to the lowest possible extent.
45.Decentralisation is always preferable than that of centralisation.
False: Universally this statement cant be accepted as true. It depends on the nature of business,
products being manufactured, geographical dispersal of organisational activities, availability of
competent managers in organisation etc.
46.In a project structure a project manager has absolute and total authority over the functions of
personnel drawn from the head ofce.
False: A project manager has little or no direct authority over his team members. He has to exercise
his personal infuence and expertise to get things done. The authority lies with functional heads at
the head ofce.
47.Project structure is a temporary structure.
True: The term project is defned as a unique, complex, cluster of activities designed around a
particular task which is to be completed within a time frame. As soon as the project is over, this
structure is dismantled. Hence project structure is a temporary structure.
48.The project manager has got direct authority over its team-mates.
False: In projects, coordination and cooperation is very much required. Hence a project manager
always acts as a facilitator and coordinator. He always tries to built a good team around himself. To
facilitate this, authority is equally and rationally shared.
49.Matrix structure is arrived by super-imposing functional structure over project structure.
False: In fact, Matrix organisation structure is a super imposition of project structure over functional
structure of the organisation.
50.Matrix form of structure is suitable for projects of one time nature.
False: Matrix form is also suitable for programmes of regular and permanent nature.
51.In organizations authority fows multi-directional.
False: Authority fows from top to bottom i.e. unidirectional.
52.Power and authority are one and the same.
False: Power is the ability of a person to infuence the activities of others. Whereas authority lies in
formal organisational positions. With this, manager can infuence the behaviour and compliance from
their subordinates.
53.In a free form structure there is a clear defnition of goals and tasks are predetermined.
Tre Or False______________________________________________________15.&
"#$ %&'( ) !! *! (55 Cell$ +&*&! *'&',
False: In this form the task and authority roles and relationships are not well defned. Members freely
move from one job to another job. There are few job descriptions. Even if they are present they are
broadly defned and designed.
Motivation:
1. Most of the jobs kill peoples motivation.
False: Jobs can be designed in such a manner to originate motivation among employees. Job
enrichment is also an attempt to make jobs more interesting to the employees.
2. Economic incentives alone will motivate people.
False: Recent studies have proved that economic incentives alone are not the motivating factors. At
maximum they can be considered as maintenance factors. The type of job, the chances for personal
growth are some factors that may motivate the people.
3. Need Hierarchy theory explains how incentives afect human behaviour.
False: Need Hierarchy theory explains how needs infuence human behaviour.
4. Abraham Maslow classifed human needs into three major types.
False: Abraham Maslow has identifed fve types of needs that might arise within an individual. The
fve types of needs identifed by him are, physical, security, social, esteem & self-actualization.
5. Maslow stated that people give more importance to higher needs.
False: He has stated that people give more importance to lower level needs frst and then proceed to
higher level needs in a consequential manner.
6. Satisfed needs cease to be a motivator.
True: Once a need is satisfed it cant motivate the behaviour of individuals.
7. Herzberg has profounded ERG theory of Motivation.
False: Clayton Alderfer is the person who has profounded the ERG theory. The ERG starts for
existence needs, relatedness needs and growth needs.
8. Maslows theory and Herzbergs theory centres around the human needs.
False: Whereas Maslows theory speaks about human needs, Herzbergs theory tries to identify two
diferent set of factors that could be present in any job which may show infuence on the job
performance.
9. Rewards can exist in many forms.
True: Rewards can exist in many forms such as monetary, fringe benefts, promotion, praise,
recognition etc.
10. Punishment has only deterrent (=correction) properties.
False: Punishment has both deterrent and corrective properties. The purpose of punishment is only
to arrest or decrease the unacceptable behaviour of job holders.
11. Employee participation must be made mandatory, then only it would be efective.
False: The idea of inculcating (=involving) employees in the decision making process must come
voluntary on the part of management. Then only participation of employee in the managerial process
would be efective.
12. Maslows theory of hierarchy of needs say that lower need is to be satisfed before satisfying a
higher need.
Organisation & Management__________________________________________15.+
Master Minds [From Jr.Inter to CA/CWA/CS Final]
True: Maslow arranged human needs in the form of a hierarchy, ascending from lowest to the highest.
According to him when one need is satisfed, it ceases to be a motivator. The implicit meaning is that
unless a lower level need is satisfed, a higher need will not arise.
13. Money is the motivating force to get better results from employees.
False: It is not the force, but it is one among many motivators. If it is the only motivating factors,
higher pay packs will automatically bring better results and managing involves just increasing pay
packs. The other motivators could be recognitions, free holiday trip etc. Each employee will get
motivated due to diferent factors in diferent circumstances. A good manager is one who recognises
and identifes this, to obtain best performance from his employees.
14. The stick in the carrot and stick theory is a strong motivator.
True: Stick is a form of fear. It may be fear of loss of job, demotion etc. Threat may be used to get
things done but it is not the best form of motivator. Thus, stick can also take the form of motivator
depending upon the place, time, person and circumstances.
15. Absence of hygiene factors increases dissatisfaction with the job.
True: In the two-factor motivation theory of Herzberg, the presence of hygiene factors like salary, job
security etc., contribute to prevention or reduction of dissatisfaction among employees. The absence of
hygiene factors causes or increases dissatisfaction among employees with their job.
16. Opportunity for growth is a fnancial incentive.
False: Opportunity for growth is a psychological incentive. It is a motivating factor rather than a
maintenance factor.
17. MBO is a technique.
True: In most of the organisations MBO is being treated as a management technique. However, the
originator of MBO, Peter Drucker calls it as a philosophy of management.
18. In MBO, management sets-forth the objectives unilaterally.
False: MBO focuses participative processes in setting work related goals of management at all levels.
19. Once MBO is introduced, the subordinate manager will not have much autonomy.
False: Once MBO is introduced, the subordinate manager will have sufcient autonomy to manage
his own work unit. In MBO system managers are held accountable for the results expected from them.
20. MBO meets the basic and security needs of managers.
False: MBO meets only the higher level needs of the managers. To be very specifc it meets the esteem
and self-actualisation needs of managers.
21. Once MBO is introduced, managers will not have any control over their performance.
False: The greatest advantage of MBO is that it makes possible for a manager to gain and retain
control over his organisational performance.
22. Once MBO is introduced there will be dichotomy between corporate goals & sub-system goals.
False: Once MBO is introduced there will be more compatibility between overall organisational goals
and the sub-system goals.
23.Letting subordinates themselves to set their goals is one of the key steps in MBO.
False: In MBO subordinates lay down their goals. It does not mean that subordinates can do whatever
they want to do. Superiors must listen to and work with their subordinates and at the end they must
take the responsibility of approving subordinates goals.
24. In a free form structure there is a clear defnition of goals and tasks are predetermined.
Tre Or False______________________________________________________15.1%
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False: In this form the task and authority roles and relationships are not well defned. Members freely
move from one job to another job. There are few job descriptions. Even if they are present they are
broadly defned and designed.
25. Theory X and theory Y explains all possible needs that might arise within an individual.
False: Theory X and theory Y explains two alternatives, contrasting sets of assumptions about nature
of people at work. It talks about negative and positive perceptions that managers are likely to have
regarding their subordinates.
26. Theory X implies hard management and Theory Y implies soft management.
True: An efective manager recognizes the dignity and capabilities as well as the limitations of people
and adjusts his behaviour according to situation. This is theory Y which is soft management. Theory
X says that workers do not have initiative and interest in work and managers should treat them as
machines. This is hard management.
27. Theory X and theory Y are in opposite extremes on a continuous scale.
False: They difer only in degree and they are not completely diferent views of people. Therefore,
people who follow theory X may also apply some aspects of theory Y.
28. Motivation and satisfaction are two diferent things.
True: Motivation refers to the drive and efort to satisfy a want or goal. Satisfaction refers to the
content experienced when a want is satisfed.
29. Morale is a phenomenon embedded in a group of people.
True: Morale is an indicator of groups emotional health & enthusiasm. It is the result of socio-
emotional associations and attitudes which members of any group develop towards each other.
30. Motivation and morale are two diferent words for the same phenomenon.
False: Motivation refects an individuals state of disposition whereas morale explains the state of
situation of a group. Morale explains the why of an individual behaviour whereas morale explains the
why of groups behaviour and performance.
31. Morale and job satisfactions are not related concepts.
False: Morale and job satisfaction are closely related to each other. Many factors which infuence
morale of the group and job satisfaction of an employee are common.
32. Motivation and job satisfaction have circular relationships.
True: Job satisfaction can create motivation for good performance and good performance in a job
always creates job satisfaction. Hence they have circular relationship.
Leaers!ip:
1.Leaders are born.
False: Leadership abilities could be taught and could be learnt. A recent research in management has
proved that leadership abilities can be improved in managers through proper training & efective
coaching.
2.Leadership is a motivational process.
False: Leadership is an infuence process. Acceptance of leadership depends on the extent to which
subordinates are infuenced by their leaders.
3.Leadership is a broader concept than management.
True: Leadership is broader than management because it is based on the leaders personal ability to
infuence the subordinates behaviour. The boundaries of leadership are much larger than that of
managership.
Organisation & Management__________________________________________15.11
Master Minds [From Jr.Inter to CA/CWA/CS Final]
4.Great man theory has no scientifc basis.
True: Greatman theory has no empirical validity. It is more speculative than analytic.
5.Trait theory of leadership states that leadership qualities can be acquired.
True: Trait theory is a modifcation of Great man theory. According to this theory, leaders are not
born and leadership qualities could be improve in any manager.
6.Possession of all leadership qualities will guarantee success in a business.
False: The possession of all leadership qualities can only increase the probability of success of any
manager. Success is always related to the appropriate handling of a situation. Leadership qualities
will only help the managers to cope with the situations more efectively.
7.Trait theory of leadership is a descriptive theory which explains how some people emerge as leaders.
True: This theory has very few explanatory and predictive properties. It does not have empirical
support.
8.Researchers in leadership has identifed that there are two types of orientations within leaders.
True: The two orientations that managers may have are task orientation and relationship
orientation. These two orientations alone determine the quality of leadership style that a manager
can practice.
9.Task oriented leader believes in close supervision.
True: Since task oriented leader will be more interested in getting things done, he will always prefer to
have close supervision over his subordinate. Such manager will rely more on his organisational
authority.
10.Relationship oriented leader is much concerned about harmony in work environment.
True: Relationship oriented managers will be more interested in maintaining warm, personal &
friendly relations with others.
11.Autocratic leader remains socially aloof from the group.
True: Autocratic leader assumes that he derives his authority solely from his position in the
organisation. Since he decides everything and does not allow any role for his subordinates in the
decision making process, he always remains socially aloof from the group.
12.Laissez Faire style of leadership bothers much about adherence to rules and regulations.
False: This style of leadership allows subordinates to do whatever they like. The leader who practices
this style neither inspires nor attracts his followers.
13.Bureaucratic style of leadership is highly personal.
False: This style is highly impersonal. The leader who practices this styles, functions in terms of
established rules, procedures and policies. In this style there is more emphasis on activity than on
achievement.
14.Neurocratic style is highly democratic.
False: Neurocratic manager adopts hard driving, high pressured tactics towards directing himself as
well as his group members. Such managers do not leave any thing to chance and he will closely
supervise his group members.
15.Participative style of management is more behavioural oriented.
True: Participative type of manager places lot of faith on the competence of his subordinates and he
allows them to take part in the decision making process, wherever possible. In this way we can state
that participative style is more behavioural oriented.
16.Managerial Grid depicts fve styles of management.
Tre Or False______________________________________________________15.1!
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True: Managerial Grid depicts the following fve styles of management.
1.Impoverished leadership 2. Country-club leadership 3.Task leadership
4.Middle-of-the-road leadership5. Team leadership
17.Four systems of management model was developed by Rensiz Likert.
True: Rensiz Likert is the author of four systems of management. The four systems are:
System (1) ..... Exploitative-authoritative
System (2) .. Benevolent-authoritative
System (3) .. Consultative
System (4) .. Participative-democratic
18.No leadership style can generally apply to all situations.
True: Depending on the requirements of the situation, the style has to be selected. No style will
universally apply to all situations.
19.A supervisor is always in a position of dilemma.
True: He is always pressed by his managers and also by his subordinates. He is answerable to the
management for getting jobs done through his subordinates and at the same time he has to meet the
demands of his subordinates.
Leaers!ip:
1.There are diferent types of Organisations.
True: Organizations could be categorized as economic, educational, administrative, cultural, social,
religious, political, professional and military organizations. Further they can also be classifed as
primary and secondary organizations.
2.Organisations could be distinguished in terms of primary and secondary organisations.
True: When members of the organisation are emotional and personally involved then it becomes a
primary organisation. E.g. Family. When the members are more rational and role-oriented then that
organization becomes secondary organisation.
3.Organizations are living organisms.
True: Organisations have strong resemblance (=similarities) with living things. They can be compared
with living things because they can be conceived and created. They also pass through various stages
such as launching, struggling for existence, stability, growth and decay, as human beings go through
the stages such as childhood, adolescence, youth, middle age etc.
4.Management and organisation are two sides of the same coin.
True: Organisations come into existence to achieve certain objectives. Organisation objectives can be
achieved only through efective management. Hence organisation and management are two sides of
the same coin.
5.The functions and processes of management are not interrelated.
False: Functions and processes of management are closely inter-related.
6.Survival of management depends on organisation.
True: Organisations are created to achieve certain objectives. Efective management helps the
organisation to achieve its objectives. Hence success of an organisation depends on efective
management.
7.Management is needed only at top levels of the organization.
Organisation & Management__________________________________________15.1(
Master Minds [From Jr.Inter to CA/CWA/CS Final]
False: Managerial functions, such as planning, organising, directing and controlling are needed at all
levels of organisation.
8.Managerial functions are same for all organisations.
False: According to the objectives, organisations difer in their nature and activities. Managerial
processes are carried out according to these objectives only. Managerial processes and approaches
naturally difer from organisation to organisation.
9.All organisations are diferent.
True: Even though organisations have several similarities they also have vital diferences. Depending
on the objectives to be achieved and the environment in which they have to survive, organizations
have to be designed. Hence all organizations will not be identical.
10.Management is not a process.
False: One common thing in all the defnitions of management is that they uniformly say that it is a
process. Management being a dynamic one is defnitely a process.
11.POSDCORB is a type of postcard used in ancient days.
False: Posdcorb is an acronym for the following words.
P - Planning O - Organising
S - Stafng D - Directing
Co- Coordinating R - Reporting
B - Budgeting
12.Peter Drucker is the theorist who was frst to provide a conceptual framework of management.
False: Henry Fayol was the frst theorist who provided a conceptual framework of management. He is
regarded as the father of Modern management theory.
13.Money is the most important asset of an organisation.
False: People are the most important assets of an organisation. Because of this realisation, now-a-
days, the movement for HRD has gained lot of popularity.
14.Management skills alone are sufcient to get things done.
False: Apart from management skills, managers must have conceptual skills, technical skills,
administrative skills and social skills. Then only they can play their managerial role efectively.
15.Managers when they do things by themselves they multiply their efectiveness.
False: Managers can multiply their efectiveness only when they are able to get things done by their
subordinates.
16.Management means getting things done.
This is the simplistic defnition of management. In fact management has to take care of external and
internal environment in such a way that organisational processes are directed towards desired ends.
17.Management is concerned with ideas, needs and people.
True: Management is a process of converting ideas into results by getting things done through people
in an organised manner.
18.Management is the oldest science and youngest art.
False: Management is the oldest art and youngest science. As a science it is still in the process of
evolution and refnement.
19.The elements of management are independent of each other.
Tre Or False______________________________________________________15.1*
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False: The elements of management are planning, organizing, directing and controlling. Managerial
process comes into existence only when all these elements are taken care of.
20.Management is an art.
False: It is an art as well as science. It has got the traits of an art and basic principles of science.
21.Management is a profession.
False: Formal management education and training are not compulsory to become a manger. The feld
of management is open for all to practice. Also membership of management association is not
necessary and the question of licenses does not arise in many cases. Moreover there is not ethical
code of conduct for manager.
22.Process of management is the same for every organisation.
True: The process of management involves planning, organising, directing and controlling. Any
objective could be achieved only through these elements. An organization may come into existence
with proft motive or with service motive. Whatever be the fnal objective, it can be achieved only when
there is a proper plan, organisation, direction and control. Hence process of management is the same
for any organisation.
23.Managerial functions are same as Managerial Techniques and Skills.
False: Managerial functions are planning, organising, directing and controlling whereas managerial
techniques and skills include communication, motivation, interpersonal relations, leadership etc.
24.Managers at higher levels do not have any supervisory role.
False: Managers at higher levels have the responsibility of guiding their immediate subordinates. But
they have to monitor the performance of subordinates and help them to increase their efciency.
Hence we can say that managers at higher levels also play supervisory role.
25.Management is not an infuence process.
False: Management is an infuence process. A manager infuences all the resources-men, money,
materials, machines and methods. The infuence is usually backed by authority.
26.Management is a continuous process.
True: Management is a cycle of steps. These steps include planning, organising, stafng, directing, co-
ordinating, reporting and budgeting. The cycle is never ending. It is repeated over and over again.
Management is not a one-time afair. It is a continuous process.
27.Process of Management is the same for every organisation.
True: The process of management involves planning, organising, directing and controlling. Any
objective could be achieved only through these elements. Organizations may come into existence with
proft motive or with service motive. Whatever be the fnal objective, it can be achieved only when
there is a proper plan, organisation, direction and control. Hence process of management is the same
for any organisation.
28.Professional Management and Family Management are one and the same.
False: In family management, owners are managers. But in professional management, managers are
diferent from owners.
29.Management and administration are one and the same.
False: Although there is a little diference between the two terms, Peter Drucker regards management
as the specifc and unique activity in business enterprises and associates administration to non-
business activities. Another diference is that management is concerned with policy formulation while
administration is concerned day to day operations in a company.
30.There are some limitations in calling management as a profession.
Organisation & Management__________________________________________15.15
Master Minds [From Jr.Inter to CA/CWA/CS Final]
True: A profession should provide for systematic study, training, exams and a professional body to
regulate the practice with code of conduct and ethics. But formal management education and training
are not compulsory for anyone to become a manager. Also membership in a management association
is not compulsory.
31.Management is universal.
True: Management is the basic requirement of all organisations, big or small, private or public,
business or non-business. It is applicable at all levels of an organisation or to any type of economy.
32.Professional management has ownership interest in an enterprise.
False: Professional Management need not have ownership interest in the enterprise. It means that
those who own the organisation and those who manage it are diferent.
"lanning:
1. Planning is a top management activity.
True: Planning is a basic managerial function. So it should be done at all levels of organisation.
2.Planning is diferent from decision making.
False: Planning involves decision making. Making choices out of certain alternative courses also
amounts to planning. Plans developed are nothing but set of decisions chosen for a course of action.
3.Planning is a pre-requisite for other functions of management.
True: Planning is a pre-requisite for other functions of management such as organising, stafng,
directing and control.
4.Planning in organisation is based on certain philosophies.
True: Russel Ackof in his book Concept of Corporate Planning has identifed three conceptual values
on which planning in organisations could be based. They are satisfying philosophy, optimizing
philosophy and adaptivising philosophy.
5.Planning has got only one approach and that is known as top down approach.
False: Generally there are four approaches to planning. They are top-down approach, bottom-up
approach, composite approach and team approach.
6.The primary objective of planning is to cope with the future.
True: Planning is primarily meant to cope with the future to comply and adapt with the changes that
may take place in the environment in which the organisation is functioning.
7.Organisational plans should be infexible.
False: One of the important characteristics of organisational planning is that it should be fexible. It
must be fexible enough to make the organisation adjust to the ever-changing environmental
conditions. Then only organisations can achieve its objectives.
8.Planning is a part of forecasting.
False: Forecasting alone is one of the steps in planning. Forecasting refers to the process of predicting,
projecting and estimating the changes in the environment. This helps the organisation to move
towards desired objectives.
9.Forecasting is likely to be accurate always.
False: Forecasting cant be always accurate. Always future will not be as we expect it to be.
10.Organisational purpose is derived from organizational objectives.
False: Objectives are derived from the purpose of the organization.
Tre Or False______________________________________________________15.1'
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11.Objectives and goals are one and the same.
False: In general the terms objectives and goals are being used interchangeably. However the two
terms can be distinguished. Objective is the one towards which organizational activities are directed
to. It is normally set by senior managers. Goals can be seen as a sub-set of objectives. If these goals
are achieved, it helps to achieve desired objectives.
12.Objectives are set based on the organizational structure.
False: Objectives are primary and are more important than structures. Hence structures must be
designed in such a way that organisational objectives are achieved.
13.Objectives serve as the bench marks of evaluating organisational performance.
True: Organisation structure and activities are designed around objectives, to facilitate their
achievement. They exercise considerable infuence in motivating the managerial and other personnel
towards consistent team efort.
14.A good organization can have only one objective.
False: All organizations can have many objectives such as proft, public service, diversifcation,
providing employment etc.
15.It is quite likely for an organization to view its multiple objectives as not equally important.
True: The objectives can vary in their importance. Organizations must arrange various objectives
according to their importance. For e.g. for a Govt. organisation service may be the most important
objective than making proft.
16.Structuring of objectives into an hierarchy coincides with the structuring of organizational activity
and authority relationships.
True: Objectives are the base on which organizational systems are designed. To achieve these
objectives organizational activities must be grouped and they must be empowered with proper
authority. Objectives, authority and organizational activities are the key inputs to any organizational
structure.
17.Multiplicity of objectives will lead to confict.
False: When multiple objectives are pursued, certain clashes are bound to occur, at diferent levels in
the organization, because of the diferences in the perceptions of individual managers. However, this
can be resolved.
18.Goal confict is to be viewed as a disease.
False: Goal confict need not be viewed as a disease. It is a natural phenomenon. In some
organisations, if goal confict exists, it will induce the organizational members to be innovative. The
goal confict will also bring fexibility in organizational functions.
19.Any organization is vulnerable to goal displacement.
True: When managers start reacting to the problem situation on intuitive basis then goal
displacement is likely to occur. When organizational members eforts and resources are diverted from
the desired goals then goal displacement occurs.
20.Ofcial goals and operative goals are one and the same.
False: Charles Perrow, a management writer makes a distinction between ofcial goals and operative
goals. According to him ofcial goals refect the general objectives that the organisation wants to
achieve. On the other hand operative goals have got short term perspective. They will be more
pragmatic than ofcial goals. Achievement of operative goals alone will enable the organization to
achieve its ofcial goals.
Organisation & Management__________________________________________15.1,
Master Minds [From Jr.Inter to CA/CWA/CS Final]
21.Primary objectives determine the organizational structure.
True: Structures are built around the objectives which organizations want to achieve.
22.Need for proft is diferent from greed for proft.
True: Need for proft is rational. The survival of the organisation depends on the proft earning
capability. However, if proft becomes the sole objective then some organisations may adopt unethical
processes to grab more proft. This situation is known as greed for proft. Greed for proft may damage
the organization irreparably.
23.A budget is expressed only in fnancial terms.
False: A budget is a statement of expected results expressed in numerical terms. It may be expressed
either in fnancial terms or in numerically measurable terms.
24.Flexible budgets means designing budgets according to an organisation.
False: If budget is set for only one level of activity (Production) it is not possible to compare with
actual performance because actual performance will be for a diferent level of activity. So it is set for
diferent levels of activity, for easy evaluation of performance.
25.Over budgeting is dangerous.
True: There is a limit to anything. If minor expenses are also stated in detail then a manager cant get
freedom to manage the departments.
26.A company having multiple objectives will not have any direction.
False: Organisations and Managers can have multiple objectives. Sometimes it may lead to conficts within
the organisation or within a group of individuals. But a manager has to set priorities and bring balance
between these objectives. If such balance is achieved, it is not a problem to have multiple objectives.
27.In setting the objectives, bottom up approach is better to Top-down approach.
False: Bottom up approach is the setting of objectives from the lower levels of an organisation. Top
down approach is the setting of objectives by the top management.Practically bottom up approach is
underutilized but any one approach is insufcient. Both are essential, but the emphasis depends on
the situation, size of the organisation, culture, urgency of the plan etc.
28.Strategies formulated at the top level need not be communicated down if it is highly secretive.
False: Even if strategies are very well formulated, if they are not communicated to the managers who
are going to implement, they are of little use because employees may not know what they should do.
29.Cash budget is one of the most important budgets for any enterprise.
True: The availability of cash, to meet obligations, is the frst requirement of survival. If cash is tied
up in inventory, machinery or other non-cash assets then the frm has to face cash crisis, even if huge
amount of profts are earned.
30.Over budgeting is the situation where revenues or expenses are provided in excess.
False: Over budgeting is a situation of spelling out minor expenses in detail. With this, managers will
not get the required freedom for managing their departments.
31.Flexible budgets are those budgets whose fgures can be changed due to changes in various factors,
both internal and external.
False: Flexible budgets are designed to vary the volume of sales or some other measure of activity. So,
they are generally limited to expenses budgets.
32.Bottom up approach to planning is more realistic.
Tre Or False______________________________________________________15.1&
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True: Managers at action level have the necessary information, awareness and realism to plan. It
makes full use of capabilities. But the plan has to travel up and down in order to unify all the plans
and to make it realistic. Thus it can be viewed as a participative approach to planning.
33.Forecasting is not planning.
True: Forecasting is limited to the task of predicting probable future conditions, while planning
means designing the desired future conditions and making the needed eforts to ensure that they will
materialise.
34.Single use plans are tailored to ft specifc situations.
True: These plans are for handling non-repetitive, novel and unique problems. Once their purpose is
achieved they will become obsolete. Objectives and strategies are 2 examples of this kind of plans.
35.Typically, a company pursues a single objective.
False: Usually a company pursues multiple objectives like, proft, growth, customer service, employee
welfare and so on.
36.The concept of multiplicity of objectives does not mean that an organisation should have as many
objectives as possible.
False: Too much of multiplicity leads to complexity and confusion. On the other hand organisational
eforts will be difused over wide number of objectives.
37.Policies provide readymade decisions.
False: Policies can only indicate the broad considerations and options to be kept in mind while
making decisions.
38.Policies should always be in written form.
False: Policies can be established in written or oral or implied form. Thus they need not be
established in written form.
39.Policies are to be revised frequently.
False: Policies should be formulated considering internal and external environment and much care
and judgement should be taken. They should remain valid & useful under varied conditions.
40.Objectives are ends and policies are means to achieve the ends.
False: They are related in the means ends chain. Policies focus on objectives. Policies set guidelines
for achieving objectives.
41.Some simple policies may take the form of rules.
False: For example, recruitment of clerical staf only through employment exchange is a policy. But it
is a rule followed by some other organisations.
42.Excessive rules will result in overly bureaucratic organisation.
True: Rules will infuence human behaviour and mechanise it. It also curtails creativity. Thus
excessive rules will result in bureaucracy.
43.Purpose of an organisation is defned by its employees.
False: Purpose is defned by the society in which an organisation operates. Therefore, purpose is a
broad aim that applies not only to a given organisation, but to all organisations of its type in the
society.
44.Planning process ends when a plan is agreed upon.
False: Plans must be implemented and for that purpose programs and procedures should be
designed. At any time during implementation, plans should be modifed so that they become useless
or even damaging.
Organisation & Management__________________________________________15.1+
Master Minds [From Jr.Inter to CA/CWA/CS Final]
45.Goals of an organisation determine its tasks & strategies.
True: Any structure or process can come into existence only when there is a set of goals to be
achieved. Without goals, planning & organising is not at all possible. On the basis of these goals,
strategies can be developed and according to strategies structures can be designed.
46.Rules are prescriptive.
True: Rules are just like commandments. Generally they specify, whether to do a job or not, whether
to behave in a particular way or not.
47.Planning is a Pre-Requisite for Managerial Functions.
True: The basic elements of management are Planning, Organising, Directing and Controlling.
Without planning, no organisation can come into existence. When there is no organisation, direction
and control have no meaning at all. Hence planning is a pre-requisite for managerial functions.
48.Procedures are helpful in performing Non-Routine Tasks.
False: Procedures are helpful for performing routine tasks only. For non routine tasks, application of
policies is compulsory. Hence procedures cant be applied to non routine tasks.
Leaers!ip:
1. There is a confict between goals of the organisation and goals of the employees.
False: It is possible to design organization goals in such a way that objectives of the employees and
the organisation can be tied together so that confict doesnt arise.
2. Rigid status diferentials between managerial & non-managerial personnel is always healthy.
False: For efective cooperation between managerial & non-managerial personnel, status diferences
must be minimised. Generally, status systems in organisation divide people and increase social
distance among them. It amounts to unhealthy organisation climate.
3. All conficts are unhealthy.
False: Confict can also be treated as means of development of individual and group performance
because it stimulates the attitude in favour of accepting challenge & change. A manager should always
promote constructional confict and avoid destructional confict.
4. There is one and only one way in which confict resolution is possible, that is known as
compromise.
False: Conficts can be resolved in any of the following 5 ways - avoiding, accommodating, competing,
compromise and collaboration. As we can see, confict is only one among them.
5. Power and infuence are one and the same.
False: Power can be defned as the ability of an individual to afect behaviour of others in the
organisation. Whereas infuence refers to the art of afecting attitudes and behaviour of others in the
organisation.
6. Positions in the organisations are the bases of power.
False: Positions are not the bases of power. Bases of power are Reward, coercion, expertise, charisma,
reference and legitimate formal position.
7. Positions in the organisations are the only source through which infuence could be exercised.
False: Just as power, Infuence is also having diferent bases such as emulation, suggestion,
persuasion and coercion.
8. Limited resources give rise to conficts.
Tre Or False______________________________________________________15.!%
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True: Scarce resources should be distributed among diferent groups in the organisation. Inevitably
some groups get less than they want or need. Thus conficts arise.
9. Organisational change is an end in itself.
False: Organisational change is only a means to the achievement of organisational goals. Every
organisational change is to be judged on the basis of its contribution to the achievement of
organisational objectives.
10. People resist change when they understand it.
False: Researchers have indicated that people resist change only when they do not understand the
change in the organisation.
#ocial $esponsi%ility:
1.A socially responsible business behaviour manifests itself in several ways.
True: When organizations concentrate on providing pollution-free atmosphere, creating more
employment and providing basic amenities for the people who are living near to the organization, then
such activities will refect the social responsibility of the organization.
2.The concept of social responsibility is very vague.
True: There is no consensus (=agreement) among managers and social leaders on the meaning of the
term social responsibility. For e.g. when a chemical industry is not polluting its environment then
management of the industry may think that they are fulflling social responsibility. At the same time if
the same organisation is unable to provide more employment opportunities then the social leaders
may think that organisation is not fulflling its social responsibility. Thus we can say that the concept
of social responsibility is very vague.
3.The concept of social responsibility is a subversive doctrine.
Milton Friedman has stated that social responsibility may be uneconomical to the organization. He
has also stated that it amounts to diluting economic goals. Hence he called the concept of social
responsibility as a subversive doctrine.
4.Social responsibility must be imposed on business.
False: Social responsibility should not be imposed, it should be assumed by the organisation on
voluntary basis, for the genuine beneft of society.
5.If business includes social responsibility as one of its objectives then their public image gets boosted
up.
True: If social responsibility is included in the articles of association of any business then it will
defnitely enhance the public image. In our country BHEL, TISCO have done it.
6.The only Social Responsibility of a Business is to maximise its proft for the beneft of its owners.
False: Social responsibility is an obligation that a business has to act for the beneft of society in it
exists. Removing unemployment in a society, not causing any pollution to the environment, raising the
living quality of the people are some examples for social responsibilities.
Co&orination:
1.All managerial functions are instruments to coordination.
True: All managerial functions such as planning, organising, stafng, directing and controlling are
only an exercise in co-ordination. In fact, all managerial functions are instrumental functions to
achieve the managerial task of coordination.
2.Primary reason for coordination is group inter-dependence.
Organisation & Management__________________________________________15.!1
Master Minds [From Jr.Inter to CA/CWA/CS Final]
False: This statement is correct. Greater the need for inter-dependence among the various units, more
coordination, the organization needs. Unless there is opportunities for group development and inter-
dependence among themselves, coordinate efort to achieve the organizational objectives will not
materialize.
3.Instruments of planning can bring froth efective coordination.
True: Rules, procedures, programmes and policies are referred as instruments of planning. They
could play a useful role in bringing forth efective coordination among various units.
Miscellaneous:
1.Formal and informal organizations exist separately.
False: Formal organisation and informal organisation are 2 dimensions of the same organisation. The
structure, process and behaviour these two organizations always get mixed up. It is difcult to
distinguish them.
2.Informal organizations are always useful to formal organizations.
True: In many cases informal organization blends with formal organization to make the formal
organization more efective. If the informal organization is developed in a positive environment it can
contribute more for the objectives of the formal organization.
3.A manager can get things done through informal organisation.
True & False: It is true because informal organisation provides natural setting for managers to get
things done through people by exercising their authority and other bases of power. It is false because
authority itself may not be efective. Further authority creates fear and not respect. People may obey
authority but defy (resist) it in action.
4.Informal organization is used to design the control system in an organisation.
False: Formal authority system alone is used for designing control system.
5.Communication facilities only managerial functions.
False: Communication also relates an enterprise to its external environment. Through this, managers
become can know the needs of customers, availability of suppliers, claims of stockholders etc.
6.F.W. Taylor is supposed to be the Father of Administrative Management Theory.
False: F.W. Taylor is more known as the Father of Scientifc Management. He is the frst person who
stated that there is always one best scientifc way of doing things which is applicable to all work
situations.
7.Henry Fayol is the person who has contributed 14 principles of Administration.
True: Henry Fayol, has developed a comprehensive (=complete, inclusive) theory of organization and
administration, applicable to all organizations at all levels. He is the person who has evolved
(=developed) 14 principles of administration. Important among them are Division of work, unity of
command, unity of direction, tenure of personnel, Espirit De Corps etc.
8.Hawthorne studies has caused a drastic change in the management theories.
True: Hawthorne studies alone has indicated the presence of informal groups and dynamics of
interpersonal relations that might arise within the members of any organization. This study alone has
given birth to human relations movement in management.
9.Happy workers are always productive workers.
False: During early 1940s, when human relations approach was gaining importance, people believed
that happy workers are always productive workers. However, the recent research in the area of
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management has proved that this is not true in organisations. Technical processes, administrative
processes and behavioural processes also play an important role in making the workers productive.
10.Organizational behaviour deals with human beings.
Yes. It is a sub-discipline in management. It deals with fnding how and why an individual behaves as
he behaves in the organization.
11.All organizations are closed systems.
False: Most of the organizations today are open systems because they are always subjected to the
forces of external environment such as social, political, economic and technological.
12.Scientifc approach to management has gained momentum (=importance) after World War II.
True: Scientifc approach or Quantitative Approach has gained importance only after World War II. It
took birth from the eforts made by the scientists, engaged by USA Governments, to make research
into the strategic military operations during World War II.
13.One of the important characteristics of a system is that it has a boundary.
True: In any system boundaries determine which parts are internal and which parts are external to a
system. For e.g. for a business enterprise its employees are within its boundaries while its customers
and suppliers are outside its boundary.
14.External environment normally do not afect the organization.
False: All organizations are always subjected to the infuence of external environment. External
environment consists of technical, social, political and economic forces.
15.Managerial methods are independent of situations.
False: Managerial methods depend on the situations. A managerial method suitable in one situation
may not be suitable in another situation.

Organisation & Management__________________________________________15.!(

Master Minds [From Jr.Inter to CA/CWA/CS Final]