Lecture 1
Which of the following best describes the definition of management?
a) The ability to control employees through strict policies
b) The organisation and coordination of activities to achieve defined aims and objectives
c) A focus on maximising profit at any cost
d) The study of human behavior in society
b) The organisation and coordination of activities to achieve defined aims and objectives ✅
Why is it important to study management theory?
a) It provides fixed rules that apply to all organisations
b) It helps understand the interrelationships between theory, behaviour, and management practice
c) It focuses only on historical aspects of management
d) It is mainly useful for academic purposes, not real-world applications
✅ Answer: b) It helps understand the interrelationships between theory, behaviour, and management practice
What is the main purpose of organisations?
a) To operate independently without external influences
b) To enable collaborative action and achieve objectives that individuals alone cannot attain
c) To function only within government regulations
d) To focus solely on profit maximization
✅ Answer: b) To enable collaborative action and achieve objectives that individuals alone cannot attain
Which of the following best defines an entrepreneur?
A) Someone who invests in stock markets
B) A person who assumes the risk of business ownership
C) An employee in a large corporation
D) A government official regulating businesses
Answer: B) A person who assumes the risk of business ownership
Which of the following is NOT a common organisational structure?
A) Functional structure
B) Divisional structure
C) Holding company structure
D) Freelance structure
Answer: D) Freelance structure
According to Peter Drucker’s Five-Point Guide to Management, which of the following is NOT included?
a) Making people’s strengths effective and their weaknesses irrelevant
b) Enhancing the ability of people to contribute
c) Prioritizing financial performance above all else
d) Ensuring everyone knows what needs to be accomplished
c) Prioritizing financial performance above all else ✅
What is a key characteristic of Scientific Management according to F.W. Taylor?
a) Emphasis on the social needs of workers
b) Focus on teamwork and group norms
c) Identification of the ‘one best way’ to perform a job
d) Belief in flexible and situational approaches to management
✅ Answer: c) Identification of the ‘one best way’ to perform a job
Which of the following is NOT a factor in the PESTEL analysis?
a) Political
b) Technological
c) Financial
d) Environmental
✅ Answer: c) Financial
What is the primary difference between a sole proprietorship and a general partnership?
A) A sole proprietorship has multiple owners, while a general partnership has only one
B) A general partnership is taxed at a higher rate than a sole proprietorship
C) A sole proprietorship is owned by one person, while a general partnership has multiple owners
D) A sole proprietorship is always more profitable than a general partnership
Answer: C) A sole proprietorship is owned by one person, while a general partnership has multiple owners
Which of the following is an advantage of a centralised organisational structure?
A) Faster decision-making at lower levels
B) Greater consistency and control across the organisation
C) Increased flexibility for employees
D) Improved adaptability to local market conditions
Answer: B) Greater consistency and control across the organisation
Henry Mintzberg is known for his contributions to management theory, including:
a) The Five Forces Model
b) The Five Organizational Configurations and Ten Roles of a Manager
c) The Six Sigma approach to quality management
d) The Balanced Scorecard Framework
b) The Five Organizational Configurations and Ten Roles of a Manager ✅
Which of the following is NOT a characteristic of bureaucracy?
a) Specialisation
b) Hierarchy of authority
c) Informal decision-making
d) System of rules
✅ Answer: c) Informal decision-making
Which of the following is NOT one of the classifications of organisations by major purpose?
a) Economic
b) Social enterprise
c) Military-industrial
d) Political
✅ Answer: c) Military-industrial
According to Michael Porter, which of the following is NOT a source of competitive advantage?
A) Differentiation
B) Cost leadership
C) High employee turnover
D) Focusing on a niche market
Answer: C) High employee turnover
A tall organisational structure typically has:
A) A broad span of control and a short chain of command
B) A narrow span of control and a long chain of command
C) A flat hierarchy with minimal levels of management
D) No formal reporting relationships
Answer: B) A narrow span of control and a long chain of command
Which of the following statements about management is TRUE?
a) Management is a rigid set of rules that must be followed strictly in all organisations
b) The effectiveness of management depends on integrating activities across the organisation
c) Management is only relevant in private-sector businesses
d) There is little variation in the roles and responsibilities of managers across different industries
b) The effectiveness of management depends on integrating activities across the organisation ✅
The Human Relations Approach, developed by Elton Mayo, emphasised:
a) The rational and economic concept of motivation
b) The role of social factors and group norms in the workplace
c) Strict managerial control over workers
d) Finding the most efficient way to perform a task
✅ Answer: b) The role of social factors and group norms in the workplace
Why is environmental analysis important for organisations?
a) It allows organisations to predict and adapt to external changes
b) It ensures organisations remain isolated from market influences
c) It reduces the need for managerial decision-making
d) It eliminates risks in the business environment
✅ Answer: a) It allows organisations to predict and adapt to external changes
Why is strategy implementation considered as important as strategy formulation?
A) Without proper implementation, even the best strategy may fail
B) Strategy implementation is only needed in large companies
C) Formulation is always more difficult than implementation
D) A strategy automatically succeeds once formulated
Answer: A) Without proper implementation, even the best strategy may fail
According to Burns and Stalker, which type of organisation is best suited for a stable business environment?
A) Organic
B) Mechanistic
C) Matrix
D) Divisional
Answer: B) Mechanistic
What are the four key influences on Organisational Behaviour?
a) The individual, the group, the organisation, and the environment
b) Leadership style, financial performance, marketing, and customer service
c) Company culture, economic conditions, competitor strategies, and government regulations
d) Motivation, technology, management style, and external stakeholders
a) The individual, the group, the organisation, and the environment ✅
What does the contingency approach to management suggest?
a) There is one best way to structure an organisation
b) Bureaucratic rules and hierarchy should always be followed
c) Management strategies should be adapted based on situational variables
d) Human relations are the only important factor in management
✅ Answer: c) Management strategies should be adapted based on situational variables
How can an organisation effectively respond to changes in its external environment using the PESTEL framework?
a) By focusing only on technological advancements to stay ahead of competitors
b) By ignoring political and legal factors since they are beyond the organisation’s control
c) By regularly analyzing external factors and adapting strategies to align with changes
d) By maintaining a fixed strategy regardless of external influences to ensure consistency
✅ Answer: c) By regularly analyzing external factors and adapting strategies to align with changes
A company wants to maintain a sustainable competitive advantage in a highly competitive industry. According to the Resource-Based View (RBV), which of the following strategies is MOST likely to ensure long-term success?
A) Continuously lowering prices to undercut competitors
B) Developing unique capabilities that are valuable, rare, costly to imitate, and non-substitutable
C) Expanding into multiple unrelated industries to diversify risk
D) Copying best practices from industry leaders to stay competitive
Answer: B) Developing unique capabilities that are valuable, rare, costly to imitate, and non-substitutable
According to Child, which of the following is NOT a consequence of a poorly designed organisational structure?
A) Low motivation and morale
B) Improved response to external changes
C) Conflict and lack of coordination
D) Rising costs
Answer: B) Improved response to external changes