Business Management — Part 1 MCQs with Explanations

The Practice of Management is written by Peter F Drucker. Peter Drucker (1909-2005) was one of the most widely-known and influential thinkers on management, whose work continues to be used by managers worldwide.

Management is what a manager does was wtitten by Louis Allan. Louis Alexander Allen (born Oct. 8, 1917) is an American management consultant and management author, known from his early work on management and organization.

The first man who advocated the view that the management should and can be taught is Hendry Fayol. Thanks to scientists like Henri Fayol (1841-1925) the first foundations were laid for modern scientific management. These first concepts, also called principles of management are the underlying factors for successful management.

The first worman authority in management is Lillian Gilberth. Lillian Gilbreth was one of the founders of modern industrial management. She brought psychology to the study of management in the early twentieth century and then brought them both to the forefront of the business world. She broke new ground with her book The Psychology of Management, which concerned the health of the industrial worker.

To manage is to forecast and plan, to organize, to compound, to co-ordinate and to control. This definition was given by Hendry Fay. To foresee and plan means examining the future and drawing up the plan of action. To organize means building up the dual structure, material and human, of the undertaking. To command means binding together, unifying and harmonizing all activity and effort. To control means seeing that everything occurs in conformity with established rule and expressed demand.

POSDCORB is an acronym which means Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting which was first coined in a paper on administrative management that was written for the Brownlow Committee by Luther Gulick and Lyndall Urwick.

Management is the art of getting things done through and with an informally organized Harold Koontz. Harold Koontz (1909 - Febr. 11, 1984) was an American organizational theorist, Professor of Business Management at the University of California, Los Angeles and a consultant for many of America's largest business organizations.

Management is the art and science of decision making and leadership Donald J Clough. The author views management as an art and science of decision-making. The quality of decisions determines the performance of a manager. He has also to provide leadership to subordinates for motivating them to undertake their work.

The most popular management think of modern times is Mary Parkett.

Father of principles of management is Henry Fayol. Henri Fayol is claimed to be the real father of modern management. He was a Frenchman born in 1841 and was working as an engineer with a mining company. He improved the condition of the company from virtual bankruptcy to high success.

Pioneer of Human Relations is Elton Mayo. Elton Mayo is considered the founder of the Human Relations Theory. Prior to this trend, Elton Mayo already started an experiment in the Hawthorne plants in 1924; the Hawthorne experiment.

Management and administration are partly same and partly different. Administration is concerned with the laying down of basic objectives and broad policies of an organisation, while management is concerned with performing various functions such as- planning, coordinating and controlling for attaining organisational objectives.

Espirit de corps means union is strength. This principle says that the management should create a team spirit within various employees or various groups in the organization. All the employees should work as a team towards achievement of the organizational goals.

Henry Fayol laid down 14 principles. They are Division of Work, Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest, Remuneration, The Degree of Centralization, Scalar Chain, Order, Equity, Stability of Tenure of Personnel, Initiative and Esprit de Corps.

F.W. Taylor is associated with Scientific Management. In this, he proposed that by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed to cooperate with one another. This was very different from the way work was typically done in businesses beforehand. A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible.

Co-ordination function is regarded as the essence of management. The meaning of this sentence implies, Co-ordination affects all the functions of management. In other words, Co-ordination affects Planning, Organising, Staffing, Directing, Communication, Leading, Motivating and Controlling.

Henry Fayol was a French Industrialist. Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed general theory of business administration that is often called Fayolism.

Principles of Management was contributed by Hendry Fayol. Henry Fayol's contribution to management theory is certainly remarkable. He gave overall concepts of general management and suggested the basic functions of management. He recommended the selection and training of workers and managers.

Control system of an organisation has no influence over the external environment. Organizational control systems are a vital aspect of executing strategy because they track performance and identify adjustments that need to be made. Output controls involve measurable results. Behavioural controls involve regulating activities rather than outcomes.

The chain of command from the highest authority to the lowest level in the organization is Scalar chain. Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.

General and Industrial Management was written by Hendry Fayol. Henri Fayol (1841 – 1925) was a French coal-mine engineer, director of mines and modern management theoretician. His scientific management theory forms the base for business administration and business management. In the academic world, this is also known as Fayolism. Henri Fayol provided one of the most influential modern management concepts of his time. He is founder of the 14 Principles of management and the five functions of management.

Study of the movements of both the workers and the machine to eliminate wasteful movement is motion study. Motion study is a systematic way of determining the best method of doing the work by scrutinizing the motions made by the worker or the machine.

Henry Fayol concentrated on top management. Centralization implies the concentration of decision making authority at the top management (executive board).

Contingent plan to meet environmental pressures is strategies. A contingency plan is a course of action designed to help an organization respond effectively to a significant future event or situation that may or may not happen. A contingency plan is sometimes referred to as "Plan B," because it can be also used as an alternative for action if expected results fail to materialize.

Every subordinate should receive orders from and be accountable to only one superior is unity of command. This principle states that each subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict.

A statement of expected results expressed in numerical terms for a definite period of time in the future is known as budgets. A budget is an internal tool used by management and is often not required for reporting by external parties.

The principle seeks to ensure unity of action is Unity of direction. The principle provides that there should be only one leader and one plan for a series of activities seeking the accomplishment of the same objective.

Coordination is the harmonising or synchronising of individual efforts with the purpose of achieving group goals. Coordination is the orderly arrangement of group efforts to provide unity of action in pursuit of common purpose. It involves unifying, integrating and harmonising the activities of different departments and individuals for the achievement of common goal.

Responsibility is an obligation to perform certain functions and achieve certain results. The management can confine it to the performance of a single function or can be a continuing obligation.

Steps to be taken for selecting sales persons is an example of procedures. Procedures explain how to accomplish a task. A procedure is sometimes called a work instruction.

Piece Rate System is contributed by Taylor, the father of scientific management. The underlying principle of this system is to penalise a slow worker by paying him a low piece rate for low production and to reward an efficient worker by giving him a higher piece rate for a higher production.

An identified group of people contributing their efforts towards the attainment of goals is called an organization. An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a particular purpose.

Allotment of work to each worker on the basis of the capacity of an average worker functioning in the normal working condition is scientific task planning. Scientific task setting Standard task is the quantity of work which an average worker can perform under ideal standardised conditions in one day, generally called 'a fair day's work', which for every worker should be fixed after a scientific study.

A system of co-operative activities of two or more persons is called organization. An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a particular purpose.

A study relating to the fixing of the working hours with rest periods to recoup the energy while performing in job is called fatigue study. Fatigue study is study to understand how fatigue affects productivity.

Formal authority flows from upwards to downwards in formal organization. Formal Organization is an organisation in which job of each member is clearly defined, whose authority, responsibility and accountability are fixed. Informal Organization is formed within the formal organisation as a network of interpersonal relationship when people interact with each other.

The first and foremost function of management is planning. Planning is the primary function of management. Its purpose is to ensure optimum utilisation of human and economic resources in the business processes. It precedes all other activities of the business undertaking.

Which organisational relationship gives a greater job satisfaction and results in maximum production? Option B: informal organization Explanation: An informal organization refers to the social structure that develops within a formal organization as employees interact with each other. This informal network often leads to greater job satisfaction and higher productivity because it fosters camaraderie, mutual support, and effective communication among employees. A formal organization (Option A) refers to the official structure of roles, responsibilities, and reporting relationships defined by the organization's hierarchy. While important for clarity and structure, formal organizations may not always maximize job satisfaction and production as effectively as informal relationships. Business or organisation (Option C) and strategic organization (Option D) are not recognized terms in organizational theory in the context provided. Therefore, the correct answer is informal organization .

Long term planning is 5 to 15 years. A long-term planning is about setting a process by which a particular strategic plan will be achieved. This process focuses on activities that start now and continue well into the future.

The selection of best alternative from many alternatives is known as decision-making. Decision making is a process of selecting the best among the different alternatives. It is the act of making a choice. There are so many alternatives found in the organization and departments.