Management Concepts Multiple Choice Questions (MCQ)

Prepared by Dr D Santhanakrishnan, Associate Professor & Head, B.Com Professional
Accounting, Sri Ramakrishna College of Arts & Science, Nava India, Coimbatore 641006
Management Concepts
Course Objectives:
The Management Concepts course aims to provide students with a
comprehensive understanding of core management principles and practices.
Students will explore the evolution of management theories, functions such
as planning and controlling, organizational structures, leadership styles, and
ethical considerations. The course also emphasizes decision-making skills,
communication strategies, and effective performance management
techniques essential for successful managerial roles.
Course Outcomes:
1. CO1: Recall key management theories and principles at a remember level.
2. CO2: Understand the evolution and functions of management in
organizations.
3. CO3: Apply management concepts to real-world scenarios for problem-
solving.
4. CO4: Apply decision-making models and techniques in managerial
contexts.
5. CO5: Evaluate management strategies and their effectiveness in achieving
organizational goals.
Unit 1: Introduction to Management - Definition and nature of management
- Evolution of management theories - Functions of management (planning,
organizing, leading, controlling) - Managerial roles and skills - Henry Fayol’s
14 Principles of Management - Ethical and social responsibilities of managers
- Globalization and its impact on management - Challenges faced by modern
managers
Unit 2: Planning and Decision Making - Importance of planning - Types of
plans (strategic, tactical, operational) - Steps in the planning process -
Decision-making process - Tools and techniques for decision making (SWOT
analysis, PESTLE, Route Cause Analysis, Gap Analysis) - Risk management
and contingency planning - Innovation and creativity in planning
Unit 3: Organizational Structure and Design - Types of organizational
structures (functional, divisional, matrix) - Organizational design principles -
Authority, responsibility, and delegation - Span of control and hierarchy -
Organizational culture and change - Designing effective teams and work
groups - Communication and information flow in organizations

Unit 4: Leadership and Motivation - Theories of leadership (trait, behavioral,
contingency) - Leadership styles (autocratic, democratic, laissez-faire) -
Situational leadership and adaptive leadership - Emotional intelligence and
leadership effectiveness - Motivation theories - Employee engagement and
empowerment - Team building and group dynamics
Unit 5: Control and Performance Management - Control process (setting
standards, measuring performance, comparing results, taking corrective
action) - Types of control (financial, operational, strategic) - Performance
measurement and evaluation - Balanced scorecard approach - Quality
management and continuous improvement - Benchmarking and best
practices – Ethical considerations in control and performance management
Text Books:
1. "Principles of Management" by Harold Koontz and Heinz Weihrich Publisher:
McGraw-Hill Education Edition: 17th Edition

MCQ
Unit I
1. What is the primary function of management?
a) Planning
b) Organizing
c) Leading
d) Controlling
Answer: a) Planning
2. Who proposed the classical principles of management?
a) Frederick Taylor
b) Max Weber
c) Henri Fayol
d) Elton Mayo
Answer: c) Henri Fayol
3. Which of the following is not a managerial role according to Henry
Mintzberg?
a) Interpersonal roles
b) Informational roles
c) Decisional roles
d) Technical roles
Answer: d) Technical roles
4. Which principle of management emphasizes the need for unity of
command?
a) Scalar chain
b) Unity of direction
c) Division of work
d) Authority and responsibility
Answer: a) Scalar chain*
5. What is the process of setting goals and deciding how to achieve them
known as?
a) Organizing

b) Leading
c) Planning
d) Controlling
Answer: c) Planning
6. Which management theory focuses on improving efficiency and productivity
through scientific methods?
a) Classical management theory
b) Human relations theory
c) Systems theory
d) Contingency theory
Answer: a) Classical management theory
7. What is the term for the ability to understand and work well with others?
a) Technical skill
b) Human skill
c) Conceptual skill
d) Diagnostic skill
Answer: b) Human skill
8. What is the impact of globalization on management?
a) Increased competition
b) Reduced cultural diversity
c) Decreased market expansion
d) Limited technological advancements
Answer: a) Increased competition
9. Which ethical responsibility of managers involves treating employees fairly
and ensuring their well-being?
a) Economic responsibility
b) Legal responsibility
c) Ethical responsibility
d) Philanthropic responsibility
Answer: c) Ethical responsibility

10. Which principle of management emphasizes the need for order and
arrangement of activities?
a) Division of work
b) Initiative
c) Unity of command
d) Stability of tenure
Answer: a) Division of work
11. What is the term for the process of monitoring performance and taking
corrective action as needed?
a) Leading
b) Controlling
c) Organizing
d) Planning
Answer: b) Controlling
12. Which management skill involves the ability to think strategically and
make sound decisions?
a) Technical skill
b) Human skill
c) Conceptual skill
d) Diagnostic skill
Answer: c) Conceptual skill
13. Which theory of management emphasizes the importance of employee
motivation and satisfaction?
a) Classical management theory
b) Human relations theory
c) Systems theory
d) Contingency theory
Answer: b) Human relations theory
14. What is the term for the authority and duty to make decisions and take
action?
a) Responsibility
b) Accountability

c) Delegation
d) Authority
Answer: d) Authority
15. Which of the following is a challenge faced by modern managers in the
digital age?
a) Limited competition
b) Decreased globalization
c) Technological disruptions
d) Reduced market demand
Answer: c) Technological disruptions
16. Which principle of management focuses on encouraging employees to take
initiative?
a) Division of work
b) Unity of direction
c) Initiative
d) Equity
Answer: c) Initiative
17. What is the term for the ability to analyze complex situations and make
informed decisions?
a) Technical skill
b) Human skill
c) Conceptual skill
d) Diagnostic skill
Answer: c) Conceptual skill
18. Which management function involves coordinating resources and
activities to achieve goals?
a) Planning
b) Organizing
c) Leading
d) Controlling
Answer: b) Organizing

19. Which of the following is an example of a social responsibility of
managers?
a) Maximizing profits
b) Providing employee training
c) Protecting the environment
d) Achieving sales targets
Answer: c) Protecting the environment
20. What is the term for the process of guiding and motivating employees to
achieve organizational goals?
a) Leading
b) Controlling
c) Organizing
d) Planning
Answer: a) Leading
Unit II
1. Why is planning important in management?
a) It helps in achieving organizational goals
b) It reduces the need for decision making
c) It eliminates risks and uncertainties
d) It limits creativity in problem-solving
Answer: a) It helps in achieving organizational goals
2. Which of the following is an example of a strategic plan?
a) Weekly production schedule
b) Marketing campaign for a new product launch
c) Employee training program
d) Daily task list for a team
Answer: b) Marketing campaign for a new product launch
3. What is the first step in the planning process?
a) Setting objectives

b) Identifying alternatives
c) Implementing the plan
d) Evaluating outcomes
Answer: a) Setting objectives
4. What is SWOT analysis used for in decision making?
a) Analyzing internal strengths and weaknesses
b) Evaluating market opportunities and threats
c) Identifying root causes of problems
d) Assessing financial performance
Answer: b) Evaluating market opportunities and threats
5. Which technique helps in identifying external factors that may impact an
organization?
a) SWOT analysis
b) PESTLE analysis
c) Root Cause Analysis
d) Gap Analysis
Answer: b) PESTLE analysis
6. What is the purpose of conducting a Gap Analysis?
a) To assess organizational strengths
b) To identify areas of improvement
c) To evaluate market trends
d) To analyze financial performance
Answer: b) To identify areas of improvement
7. What is a key aspect of risk management in planning?
a) Avoiding all risks
b) Ignoring potential threats
c) Mitigating risks through strategies
d) Focusing only on short-term risks
Answer: c) Mitigating risks through strategies
8. Which type of plan focuses on dealing with unexpected events and
emergencies?

a) Strategic plan
b) Tactical plan
c) Operational plan
d) Contingency plan
Answer: d) Contingency plan
9. What is the primary goal of the decision-making process?
a) Minimizing creativity
b) Maximizing uncertainty
c) Achieving objectives
d) Avoiding risks
Answer: c) Achieving objectives
10. Which step comes after generating alternatives in the decision-making
process?
a) Evaluating alternatives
b) Implementing the decision
c) Identifying the problem
d) Setting objectives
Answer: a) Evaluating alternatives
11. How does innovation contribute to effective planning?
a) By limiting creativity
b) By reducing risks
c) By fostering new ideas and solutions
d) By avoiding change
Answer: c) By fostering new ideas and solutions
12. What does PESTLE analysis primarily focus on?
a) Internal strengths and weaknesses
b) Market opportunities and threats
c) Customer feedback
d) Financial performance
Answer: b) Market opportunities and threats

13. In risk management, what does mitigation involve?
a) Ignoring risks
b) Transferring risks to others
c) Reducing the impact of risks
d) Accepting all risks
Answer: c) Reducing the impact of risks
14. Which type of plan is typically short-term and focused on day-to-day
operations?
a) Strategic plan
b) Tactical plan
c) Operational plan
d) Contingency plan
Answer: c) Operational plan
15. What is the final step in the decision-making process?
a) Evaluating alternatives
b) Implementing the decision
c) Identifying the problem
d) Setting objectives
Answer: b) Implementing the decision
16. How does creativity contribute to effective decision making?
a) By limiting options
b) By reducing innovation
c) By generating diverse solutions
d) By avoiding risks
Answer: c) By generating diverse solutions
17. Which technique helps in identifying the underlying causes of problems?
a) SWOT analysis
b) PESTLE analysis
c) Root Cause Analysis
d) Gap Analysis

Answer: c) Root Cause Analysis
18. What is the purpose of a contingency plan?
a) To avoid risks completely
b) To respond to unexpected events
c) To eliminate decision making
d) To limit creativity
Answer: b) To respond to unexpected events
19. What type of plan focuses on long-term goals and overall direction?
a) Strategic plan
b) Tactical plan
c) Operational plan
d) Contingency plan
Answer: a) Strategic plan
20. How does risk management contribute to effective planning?
a) By avoiding all risks
b) By ignoring potential threats
c) By identifying and mitigating risks
d) By focusing only on short-term risks
Answer: c) By identifying and mitigating risks

Unit III
1. What is a characteristic of a functional organizational structure?
a) Emphasis on product divisions
b) Decentralized decision making
c) Departmentalization by functions
d) High level of flexibility
Answer: c) Departmentalization by functions
2. Which type of organizational structure groups employees based on their
expertise and functions?
a) Functional structure
b) Divisional structure
c) Matrix structure
d) Network structure
Answer: a) Functional structure
3. What is a key principle of organizational design?
a) Centralization of authority
b) Fragmentation of tasks
c) Alignment with strategic goals
d) Limiting employee autonomy
Answer: c) Alignment with strategic goals
4. What does delegation involve in organizational settings?
a) Centralizing decision making
b) Transferring authority and responsibility
c) Increasing span of control
d) Reducing employee accountability
Answer: b) Transferring authority and responsibility
5. What is the span of control?
a) The number of levels in an organization
b) The extent of centralization of authority
c) The number of subordinates a manager can effectively supervise

d) The degree of departmentalization
Answer: c) The number of subordinates a manager can effectively supervise
6. Which organizational structure combines functional and divisional
structures?
a) Functional structure
b) Divisional structure
c) Matrix structure
d) Network structure
Answer: c) Matrix structure
7. What is a characteristic of a divisional organizational structure?
a) Emphasis on specialized functions
b) Centralized decision making
c) Departmentalization by products or regions
d) Low level of coordination
Answer: c) Departmentalization by products or regions
8. What is organizational culture?
a) The formal structure of an organization
b) The degree of centralization in decision making
c) The shared values and beliefs within an organization
d) The number of hierarchical levels
Answer: c) The shared values and beliefs within an organization
9. How does organizational culture impact change?
a) It hinders adaptation to new environments
b) It promotes resistance to change
c) It supports innovation and adaptation
d) It discourages employee engagement
Answer: c) It supports innovation and adaptation
10. What is a key aspect of designing effective teams?
a) Limited communication channels
b) Homogeneous team composition

c) Clear goals and roles
d) Avoiding conflict
Answer: c) Clear goals and roles
11. In terms of communication flow, what is a characteristic of a centralized
organization?
a) Hierarchical decision making
b) Cross-functional communication
c) Decentralized authority
d) Open communication channels
Answer: a) Hierarchical decision making
12. What does hierarchy refer to in organizational design?
a) The number of departments
b) The degree of centralization
c) The chain of command
d) The level of employee autonomy
Answer: c) The chain of command
13. What is the primary focus of a divisional structure?
a) Functional expertise
b) Product or service lines
c) Employee empowerment
d) Cross-functional teams
Answer: b) Product or service lines
14. How does organizational structure influence decision making?
a) It increases flexibility in decision making
b) It limits the speed of decision making
c) It promotes centralized decision making
d) It reduces the need for delegation
Answer: c) It promotes centralized decision making
15. What is the purpose of designing effective teams and work groups?
a) To limit communication channels

b) To increase conflict
c) To enhance collaboration and productivity
d) To discourage innovation
Answer: c) To enhance collaboration and productivity
16. What does the matrix structure emphasize?
a) Centralized decision making
b) Cross-functional collaboration
c) Specialized functions
d) Limited communication
Answer: b) Cross-functional collaboration
17. How does organizational culture impact employee behavior?
a) It has no influence on employee behavior
b) It shapes values, attitudes, and actions
c) It reduces employee engagement
d) It eliminates conflicts
Answer: b) It shapes values, attitudes, and actions
18. What is the purpose of communication flow in organizations?
a) To limit information sharing
b) To increase hierarchy
c) To facilitate coordination and decision making
d) To discourage collaboration
Answer: c) To facilitate coordination and decision making
9. What is a characteristic of a decentralized organization?
a) Hierarchical decision making
b) Limited autonomy for employees
c) Centralized authority
d) Empowered employees
Answer: d) Empowered employees
20. How does organizational design influence organizational effectiveness?
a) It has no impact on effectiveness

b) It enhances efficiency but not effectiveness
c) It improves both efficiency and effectiveness
d) It decreases effectiveness
Answer: c) It improves both efficiency and effectiveness
Unit IV
1. Which theory of leadership focuses on identifying specific traits that make
a leader effective?
a) Behavioral theory
b) Contingency theory
c) Trait theory
d) Situational theory
Answer: c) Trait theory
2. What is a characteristic of autocratic leadership style?
a) Encouraging employee participation in decision making
b) Providing clear guidelines and expectations
c) Allowing employees full autonomy
d) Fostering open communication
Answer: b) Providing clear guidelines and expectations
3. What does the behavioral theory of leadership emphasize?
a) Personality traits of leaders
b) Situational factors influencing leadership
c) Leader's actions and behaviors
d) Effectiveness of different leadership styles
Answer: c) Leader's actions and behaviors
4. In which leadership style do leaders delegate authority and decision-
making power to employees?
a) Autocratic leadership
b) Democratic leadership
c) Laissez-faire leadership
d) Transformational leadership
Answer: b) Democratic leadership

5. What is the primary focus of contingency theory in leadership?
a) Identifying specific leadership traits
b) Adapting leadership styles to situational factors
c) Analyzing leaders' behaviors
d) Studying the impact of emotions on leadership
Answer: b) Adapting leadership styles to situational factors
6. What is a characteristic of laissez-faire leadership style?
a) High control over decision making
b) Employee empowerment and autonomy
c) Strict adherence to guidelines
d) Limited delegation of authority
Answer: b) Employee empowerment and autonomy
7. How does emotional intelligence contribute to leadership effectiveness?
a) By increasing autocratic tendencies
b) By reducing employee engagement
c) By improving communication and relationship skills
d) By limiting empathy
Answer: c) By improving communication and relationship skills
8. Which theory of motivation suggests that individuals are motivated by
fulfilling their basic needs first?
a) Expectancy theory
b) Maslow's hierarchy of needs
c) Equity theory
d) Reinforcement theory
Answer: b) Maslow's hierarchy of needs
9. What is employee engagement?
a) Employee disinterest in organizational goals
b) Employee satisfaction with compensation
c) Employee emotional commitment to the organization's goals
d) Employee resistance to change

Answer: c) Employee emotional commitment to the organization's goals
10. What is a key aspect of adaptive leadership?
a) Maintaining a rigid leadership style
b) Adapting leadership behaviors to changing situations
c) Ignoring employee feedback
d) Avoiding challenges and risks
Answer: b) Adapting leadership behaviors to changing situations
11. Which leadership style encourages participation and input from
employees in decision making?
a) Autocratic leadership
b) Democratic leadership
c) Laissez-faire leadership
d) Transformational leadership
Answer: b) Democratic leadership
12. What is the primary focus of situational leadership?
a) Adapting leadership styles to employee personalities
b) Using a consistent leadership approach regardless of situations
c) Focusing on leader traits
d) Matching leadership styles to the readiness of followers
Answer: d) Matching leadership styles to the readiness of followers
13. What is a characteristic of transformational leadership?
a) Focus on maintaining the status quo
b) Empowering employees through vision and inspiration
c) Strict control over decision making
d) Limited communication with employees
Answer: b) Empowering employees through vision and inspiration
14. How does employee empowerment contribute to motivation?
a) By limiting employee autonomy
b) By increasing job satisfaction and engagement
c) By reducing communication channels

d) By enforcing strict guidelines
Answer: b) By increasing job satisfaction and engagement
15. What is a key aspect of team building in organizations?
a) Encouraging individual competition
b) Fostering collaboration and trust among team members
c) Minimizing diversity within teams
d) Avoiding conflict resolution
Answer: b) Fostering collaboration and trust among team members
16. Which theory of leadership suggests that leadership effectiveness depends
on the match between leader style and follower readiness?
a) Trait theory
b) Behavioral theory
c) Contingency theory
d) Situational theory
Answer: d) Situational theory
17. What is the primary focus of transformational leadership?
a) Maintaining the status quo
b) Adapting to situational factors
c) Empowering and inspiring followers
d) Using transactional rewards
Answer: c) Empowering and inspiring followers
18. How does motivation impact employee performance?
a) It has no impact on performance
b) It increases employee engagement and productivity
c) It decreases employee satisfaction
d) It limits employee autonomy
Answer: b) It increases employee engagement and productivity
19. What is a characteristic of adaptive leadership?
a) Rigid adherence to a single leadership style
b) Openness to change and innovation

c) Limiting employee participation in decision making
d) Avoiding challenges and risks
Answer: b) Openness to change and innovation
20. What is a key aspect of group dynamics in teams?
a) Promoting individual goals over team goals
b) Fostering collaboration and synergy
c) Avoiding conflict resolution
d) Limiting communication within teams
Answer: b) Fostering collaboration and synergy
Unit V
1. What is the first step in the control process?
a) Measuring performance
b) Setting standards
c) Comparing results
d) Taking corrective action
Answer: b) Setting standards
2. Which type of control focuses on monitoring financial resources and
activities?
a) Financial control
b) Operational control
c) Strategic control
d) Ethical control
Answer: a) Financial control
3. What does performance measurement and evaluation involve?
a) Setting financial targets
b) Assessing employee morale
c) Monitoring and assessing organizational performance
d) Implementing corrective actions
Answer: c) Monitoring and assessing organizational performance

4. What is the balanced scorecard approach in performance management?
a) Focusing solely on financial metrics
b) Considering both financial and non-financial performance measures
c) Ignoring employee feedback
d) Using qualitative data only
Answer: b) Considering both financial and non-financial performance
measures
5. Which type of control focuses on day-to-day activities and processes?
d) Quality control
Answer: b) Operational control*
6. What is the purpose of benchmarking in performance management?
a) Setting unrealistic goals
b) Identifying best practices and performance standards
c) Ignoring industry trends
d) Limiting innovation
Answer: b) Identifying best practices and performance standards*
7. How does quality management contribute to performance improvement?
a) By ignoring customer feedback
b) By focusing only on cost reduction
c) By ensuring product and service excellence
d) By limiting employee empowerment
Answer: c) By ensuring product and service excellence
8. What is a key aspect of continuous improvement in performance
management?
a) Maintaining the status quo
b) Emphasizing short-term gains over long-term goals
c) Encouraging innovation and learning
d) Avoiding feedback from stakeholders

Answer: c) Encouraging innovation and learning
9. What is the final step in the control process?
a) Setting standards
b) Measuring performance
c) Comparing results
d) Taking corrective action
Answer: d) Taking corrective action
10. Which type of control focuses on long-term goals and strategic direction?
d) Ethical control
Answer: c) Strategic control
11. What does ethical control involve in performance management?
a) Ignoring ethical considerations
b) Ensuring compliance with ethical standards and values
c) Manipulating financial data
d) Focusing solely on profit maximization
Answer: b) Ensuring compliance with ethical standards and values
12. How does benchmarking contribute to performance improvement?
a) By limiting comparisons with industry peers
b) By identifying areas for improvement based on industry best practices
c) By ignoring industry trends
d) By avoiding performance measurement
Answer: b) By identifying areas for improvement based on industry best
practices
13. What is a characteristic of operational control?
a) Focus on long-term strategic goals
b) Monitoring day-to-day activities and processes
c) Ignoring financial performance

d) Limiting employee empowerment
Answer: b) Monitoring day-to-day activities and processes
14. What is the purpose of setting standards in the control process?
a) To ignore performance measurement
b) To provide guidelines for evaluating performance
c) To limit corrective actions
d) To discourage innovation
Answer: b) To provide guidelines for evaluating performance
15. How does the balanced scorecard approach improve performance
management?
a) By focusing solely on financial metrics
b) By ignoring customer satisfaction
c) By considering multiple dimensions of performance
d) By limiting employee feedback
Answer: c) By considering multiple dimensions of performance
16. What is a key aspect of quality management in performance improvement?
a) Ignoring customer feedback
b) Focusing only on cost reduction
c) Ensuring product and service excellence
d) Limiting innovation
Answer: c) Ensuring product and service excellence*
17. How does continuous improvement contribute to organizational success?
a) By maintaining the status quo
b) By limiting employee involvement in improvement initiatives
c) By fostering innovation and learning
d) By avoiding feedback from stakeholders
Answer: c) By fostering innovation and learning
18. What is the purpose of comparing results in the control process?
a) To set performance standards
b) To measure employee morale

c) To assess organizational performance against standards
d) To avoid corrective actions
Answer: c) To assess organizational performance against standards
19. What is a characteristic of financial control?
a) Focus on long-term strategic goals
b) Monitoring financial resources and activities
c) Ignoring performance measurement
d) Limiting employee empowerment
Answer: b) Monitoring financial resources and activities
20. Why are ethical considerations important in control and performance
management?
a) To encourage unethical behavior
b) To ensure compliance with legal and moral standards
c) To avoid setting performance standards
d) To limit employee engagement
Answer: b) To ensure compliance with legal and moral standards

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