Business Management — Part 2 MCQs with Explanations

Medium term planning is 2 to 5 years. A medium-term plan is a planned sequence of work for a subject (or for more than one subject) for a period of weeks, such as a half-term or term, or for a number of lessons.

Placing purchase order is an example of programmed decision. Programmed decisions are those you've encountered many times before and so know how to handle with ease.

Short term planning is 1 year. Short-term usually involves processes that show results within a year. Companies aim medium-term plans at results that take several years to achieve.

The decision deal with novel and non-repetitive problems is non-programmed decision. These decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems. The problems are non-recurring or exceptional in nature. Since they have not occurred before, they require extensive brainstorming.

Planning lays down the overall objective, strategies and polices for the total enterprise is corporate planning. Corporate planning is the act of creating a long-term plan to improve your business. A corporate plan examines a business's internal capabilities and lays out strategies for how to use those capabilities to improve the company and meet goals.

The decision which has long term impact on business is non-programmed decision. The Non-programmed decisions in management are concerned with unique or unusual problems. They are encountered in a very non-frequent manner. These decisions are unstructured, non-recurring and ill-defined in nature.

The planning focus specific functional areas of business is divisions planning. Managers plan by setting long-term goals for the business, as well short-term strategies needed to execute against those goals.

The decision which relates to day-to-day operation of an organization is known as operative decision. Operating decisions are decisions made to manage day to day business. Any firm which is into any kind of business is faced with 100 decisions they have to take in a day.

Planning focus on day-to-day actions of work units is unit planning. Unit planning is an organizational approach that helps teachers reflect upon what students need to accomplish in each unit, and how and when they will accomplish it.

The decision which does not incur any expenses is known as non-economic decision. Non-economic activity is an activity performed gladly, with the aim of providing services to others without any regard to monetary gain. Those human activities which are undertaken for personal satisfaction or to satisfy human sentiments are non economic activities.

Strategic planning is long term planning. Strategic planning is based on establishing a long-term plan to achieve a specified mission, through the attainment of broad-ranging objectives.

The decision which is implemented within the concerned department is known as departmental decision. Departmental Decision' is taken by the managers of the respective departments. And, the decisions that cover the activities of the enterprise as a whole and are taken by the top-level executives are known as 'Enterprise Decisions'.

Strategic planning is done at high levels of management. Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals.

Decision taken by committee formed by the top management for specific purpose is group decision. Group decision-making commonly known as collaborative decision-making is a situation faced when individuals collectively make a choice from the alternatives before them.

Operational planning is done at lower level of management. Operational planning (OP) is the process of planning strategic goals and objectives to tactical goals and objectives. They link the strategic plan with the activities the organization will deliver and the resources required to deliver them.

Crisis decision is also known as spot decision. Crisis decision-making (CDM) is challenging and prone to failure. Most CDM schemes are strong at certain aspects of the overall CDM process, but almost none are strong at all of them.

Operational planning is short-term planning which focuses on achieving the company's tactical objectives.

A decision taken to meet unexpected situations is known as crisis decision. In a crisis, decisions have the potential to impact the organisation involved.

The assumptions about future derived from forecasting and used in planning are known as planning premises. Planning premises are the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future and known conditions that will affect the course of plans such as prevailing policies and existing company plans that controls the basic nature of supporting plans.

The authority flows from top to bottom through the structure of an organization is the formal authority theory. Formal supervisory authority' is the right to command people, to tell them what they are to do and what they are not to do, and to guide their actions.

Goals, aims, purposes, missions and target is also known as objectives.

Contingent plan to meet environmental pressure is strategies. A contingency plan is a plan devised for an outcome other than in the usual (expected) plan.

If the subordinates do not accept the command of their superior, then the superior cannot be said to have any authority over them is given in the acceptance of authority theory. Acceptance theory of authority states that a manager's authority rests on workers' acceptance of his right to give orders and to expect compliance. Workers have to believe that the manager can legitimately give orders and there is a legitimate expectation that the orders will be carried out.

A chronological sequence of steps to be undertaken to enforce a policy and to attain an objective is known as procedures. Procedures explain how to accomplish a task. A procedure is sometimes called a work instruction.

The type of authority is invested with the persons by virtue of the office held by them is the competence theory. Competence motivation theory is a conceptual framework designed to explain individuals' motivation to participate, persist, and work hard in any particular achievement context.

The process of establishing a time sequence for the work is known as schedules. Schedule management is the process of developing, maintaining and communicating schedules for time and resource. A schedule is the timetable for a project, programme or portfolio.

The process whereby a manger shares his work and authority with his subordinates is Delegation. Delegation is one of the most important management skills. These logical rules and techniques will help you to delegate well (and will help you to help your manager when you are being delegated a task or new responsibility - delegation is a two-way process.

A rigid plan, no scope for discretion rule. Discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules.

The subordinate is granted authority to perform all the functions in his department or division is general delegation. Delegation of Authority means division of authority and powers downwards to the subordinate.

Specifying the manner of executing policy is known as procedures. Procedures explain how to accomplish a task. A procedure is sometimes called a work instruction.

The orders, instructions or direction are delegated to a particular person specifically is known as specific delegation. Specific delegation of authority is related with an assigned the task or a particular function.

Goal or target to be achieved is known as objective. A step of a program is called a target. A program is composed of targets. A target is an action which should be undertaken in order to achieve a desired objective. There are several values of targets.

When authority is delegated as per the organisaiton structure it is called formal delegation. Formal delegation of authority is the part of organizational structure. Whenever a task is assigned to a person then the required authority is also given to him. This type of delegation is part of the normal functioning of the organization.

Penalty is levied for violation of Rules. A penalty is a punishment or consequence for doing something wrong.

When an individual or a group agrees to work under the direction of an informal leader is called informal delegation. Informal delegation does not arise due to position but according to circumstances.

Delegation made by written orders and instruction is known as written delegation. Delegation is an administrative process of getting things done by others by giving them responsibility. All important decisions are taken at top level by Board of Directors.

Set of clear instruction in a clear and logical sequence to perform a particular task is known as programme. Programme management is the process of managing several related projects, often with the intention of improving an organization's performance.

Departmentation on the basis of activities grouped according to the type of customer is departmentation by customers. Customer departmentalization is where the organization’s activities are ready to respond to and interact with specific customers or customer groups.

Construction of fly over is an example of project. Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters

The process of dividing the large monolithic functional organization into small and flexible administrative units is called departmentation. Departmentation is a process of dividing the large monolithic functional organization into smaller and flexible administrative units.